The Washington herald., 1912-07-27
SENATE PASSES
LOWER HOUSE
EXCISE BILL
Continued from Page One.

to have an amendment grated on the
bill providing for q tax on the produc-
ton Of the American Tobacco Company.
He declared that the object Of his amend
ment was to tax the Tobacco Trust out
Of existence. and he sought to accomplish
1t by imposing a prohibitive tax on pro-
duction whenever It reached the limit of
4odooo.ooo cigars annually and 100000
pounds OF tobacco and 400. 900 pounds Of
snun. The tax was To be laid In an as
cending scale until the burden became
SO heavy that the trust would have TO
limit its production.
Senator Bailey took occa sion to make
a vigorous speech in which he opposed
the use Of the taxing power Of the gov-
ernment thus to destroy and declared
that the Sherman antitrust law was
ample to correct all trust evils II its GRIM
inal provisions were enforced. He said
that there was but a single amendment
to that law necessary. and that was
one which would confer On the govern
ment the power to have a receiver ap-
pointed for any combination in restraint
Of trade in violation Of the Sherman
law.
But the Senator from Texas reiterated
the opposition he has often expressed
against the perversion Of the taxing
power to accomplish by indirection what
he believes should be accomplished by
direct methods. He said that he had op-
posed the oleomargarine tax. which was
imposed as q prohibitive tax to aid the
dairying interests. and for the same rea-
son he had opposed the imposition of
the destructive tax on the manufacture
Of phosphorus matches, which he be-
lieved to be an invasion Of the police
power OF the State
Are MANY Roll Gala
The consideration Of the excise bill was
punctuated by a series of roll calls that
aroused unusual interest The division
was not on party lines. For example.
the vote on the final passage Of tho ex-
else bill was as follows:
Yeas-Republicans Bourne. Bristow,
Clapp, Crawford. Cummins. Gronna,
Jones. Kenyon, La Toilette, Nelson,
Poindexter, Townsend, and Works-l3
Democrats: Ashurst, Bacon. Bankhead.
Bryan, Culberson. Fletcher. Hitchcock.
johnson. Johnston. Martin, MARITIME.
Newlands. O'Gorman. Overman, Pome-
rene. Shively. Simmons. Smith (Arizona),
Smith CGeorgia), Smith (South Carolina).
Swanson. Thornton. Watson, and Will
isms-4 Total, 81.
Noes-Bandegee. Briggs. Burton, Ca
tron, Crane. Dillingham;. Du Pont, Fall.
Gallinger. Hepburn. Lodge, Massey.
Page. Penrose, Perkins. Root. Smoot,
and Sutherland-is. The negative votes
were all cast by Republicans.
On the income tax amendment the vote
was more complicated from a partisan
viewpoint. For example, in Ohio, Sena-
tor Pomerene. Democrat, voted against
the income tax, and Burton, a regular
Republican. voted for II. The vote was
as follows:
Yeas-Republicans: Borah. Bourne,
Bristow. Burton. Catron. CIapp, Craw-
ford, Cummins. Fall, Gronna, Jones, Ken
yon, La Toilette. Massey. Page. Perkins.
Poindexter, Townsend, and Works-l9
Democrats: Ashurst. Culberson, Hitch
cock. and Martine-
Noes-Republicans Brandegee. Briggs,
Crane. Du Pont, Gallinger. Hepburn,
Lodge, Nelson, Penrose. Root, Smoot, |
Stephenson, and Sutherland-la Demo- |
Gratis: Bacon. Bankhead, Bryan, Fletcher, |
Johnson. Johnston, Martin, Newlands, |
o'Gorman, overman. Pomerene. Reed. |
Shively. Simmons, Smith OF Arizona, |
smith of Georgia, Smith Of South Caro- |
lima, Swanson, Thornton. Watson, and
Williams-9. Total, "a
Originated in House.
The excise bill, which originated in
the Ways and Means Committee Of the
House. and which now bids fair to be
agreed to in conference and go to the
President. imposes a tax on the business
Of every person. firm. or copartnership,"
with respect to the carrying on or do
ing business. equivalent TO ! per cent
on the entire net income over and above
5000 received by such persons from all
sources during each year
The effect OF the bill is to extend the
excise tax which was imposed by the cor
poration tax law in the Payne-Aldrich
tariff act TO individuals, firms. and part
nerships. whereas It now applies only
to corporations.
The bill is practically a duplicate Of the |
corporation tax law, except as to the IAN !
guage necessary TO limit its provisions |
Some Of the Republican leaders believe /
that the excise bill will be seriously ham
pered in conference by the addition Of the
Canadian reciprocity repeal amendment
and by the tariff commission amendment,
both OF which were antagonized by al
most the solid Democratic vote in the
Senate.
The Senate will take up the last of the
tariff bills to-day, when under A spe-
rial unanimous consent agreement the
day will be devoted TO considering a bill
the sugar schedule and various
substitutes proposed to IT. The Indica-
tons are that the Senate will pass a bill
originating with the Republicans that
will abolish the Dutch standard and the
and reduce the duty on re-
fined sugar from l s-10 cents a pound to