davidaulloa/AmericanStories huggingface dataset:
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Work of the xecond Congress- with Particular Reference to the r.
Campaign Pledges 1910 under the Leadership
Of Honorable Underwood of Alabama
MR. UNDERWOOD THE ACTUAL HEAD OF THE NATIONAL DEdocRAc

colleagues on the Ways and Means
Committee favored an income-tax law,
but did not report such measure for
the following reasons: CD The Supreme
Court has declared general income
tax law unconstitutional for lack of
power to apportion it and provision has
been made whereby the States are now
considering the acceptance or rejection
of a proposed sixteenth amendment to
the Constitution giving to Congress the
undisputed authority to impose such
general tax; and (2) following the de-
cision of the Supreme Court unfolding
the constitutionality of the existing cor
poration-taX law the committee has con-
ceived the idea of extending the provi-
sions of this law in the manner pro-
posed in the Underwood bill, seeking TO
secure in this way the practical results
of an income-tax law without violating
the ruling of the Supreme Court in re-
jecting the income-tax law of 1894.
The proposed income-tax amendment
has been favorably voted upon by %
States, leaving only the votes Of s States
yet required for its approval. The
enactment of the Underwood bill will
serve the valuable purpose of meeting
the immediate revenue requirements and
at the same time prepare the public mind
for a fuller appreciation OF the justice
and desirability of an income-tax law.
(Sec House Report, No. 4l6, Sixty
second Congress, lst Session.
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Underwood Leadership.

At the outset, the real wisdom of the
majority members of the House was
displayed in selecting its leader; in the
wake of this wise step has flown results
which have surpassed most sanguine eX-
pectations. Under the Cannon regime
the craftsmanship of the Ways and
Means Committee carried with it the
floor leadership of the majority but the
speaker appointed all committees, and
was the real head Of his party. The
readiustment of the speakers powers
beginning in the Sixty-frst Congress
eliminated at the Democratic caucus of
January 19, 1911, in the determination
to shift the appointment of commit
tees from the speaker to the Ways and
Means Committee. Tie result of this
caucus was to place on Oscar w. I'm
derwood, the chairman of the Ways and
Means Committee, greater RESPONSE
bility than had heretofore devolved upon
any other member of the House, not
excepting the speaker, for while the
committees were to be elected BY the
House, the election was but a conhrma--
ton of the work of the Ways and
Means Committee, acting in its capacity
of committee on committees.
This new and democratic change IN
the rules of the House has been opera
tive during the first and second sessions
of the Sixty-second Congress, and I'M
der the sagacious management OF oscar
w. Underwood the democratic majority
has worked with remarkable CELEBRITY,
absolute equanimity, and a direct Ell
fectiveness during both sessions. The
legislative results have been so marked
as to arouse universal interest, and
have pointed out Underwood as the
safest and ablest legislator that Con-
gress has developed in many years. SO
true is this, as measured by legislative
results, that all of the 1910 election
promises of the party, as above out
lined, have already been fulfilled; the
House rules have been liberalized the
bill compelling the publication Of CAM
psisn expenses has been approved; the
constitutional amendment providing for
the popular election of United States
senators has been passed by the House
marked progress has been made in the
economical handling of national eSpen-
ditures, and an uneXampled beginning
has been made in the revision of the
tariff downward to a revenue basis.
The Edinburgh Repie1U, of October
Z 1911, reviewing the work of the first ses-
sion of this Congress, says:
Oscar w. Underwood, Of Ala
baHa, in the Ways and Means Com
mittee and on the floor of the
House x had shown great
discretion in the revision of the
wooden and cotton schedules. =
The Democratic Party has increased
its strength in the Senate; and it
ended the session with no obvious
divisions within its ranks and with
out having done anything to forfeit
the confidence that the country be-
slowed on it at the elections of
1910"
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20

duties on food products, the necessarle
of life.
In his speech defending this agree
ment made in the House of Represen
tatives, April n, 1911, Mr.. underwood
said:
"This bill marks the end of an
era in the economic life of the Ma
ton. Why? Not that the imme-
date results will be far-reaching,
but because it takes one step in the
right direction, step away from
the exclusive protective policy, a
step toward an honest competitive
policy. The advocates of the Re-
publican policy of protection have
always heretofore insisted that
reciprocal trade agreements should
only be made to affect non-com-
peting products.
This bill embraces in its terms
competitive products of both nations
and recognizes the Democratic posi-
ton that no tariff law is either war
ranted or just that protects the prof
its of the producer and destroys
honest competition"
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Conclusion.

The fact that every tariff measure ex-
cent one which has thus lar been pre-
sented to the Sixty-sccond Congress mas
passed the House by more than lHe
Democratic majority in the House OF
REPRESENTATIVES, prompts and ]ustlles
the following differences:
I That the revision OF the tariff
downward to a revenue basis IN the IN
terest of the consumer is permanently
the issue before the people.
RI That the Democratic majority IN
.ho House have, during the Slxty-second
Gonarcss met the responsibilities of
t,-;F revision entrusted to them by the
election OF 1910.
(3) That by wise, courageous, and
Efficient work the Democratic majority
~ the House have held their own forces
intact and won to their assistance Re-
publican Representatives, who appreci-
ate the necessities and demands of the
people to Tighten the. present excessive
tax burdens and to reduce the high cost
of living
az That the real secret of these eff
fective results is found in the efficient
and effective work Of the Ways and
Means Committee under its popular
chairman and to the splendid House
floor leadership of the Honorable Oscar
w. Underwood.
(5) That the political situation points
Enthusiastically to tariff revision as the
1912 issue between the two great politi-
cal parties and to Underwood as the
logical standard bearer for the Demo
Gratis.
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Excise Bill.

This bill provides for the extension OF
the corporation-tax law so as TO in
Guide individuals. firms, and co-part-
nerships. 1t is estimated that it will pro-
ducc more revenue than was sacrificed
by placing sugar on the free list, and
will accomplish further the very dcsira-
BILE purpose of transferring tax burdens
from those less able to carry them to the
shoulders of the wealthy, who have here
tofore escaped from proper share OF
taxation for the support Of the Gov
eminent.
Under system of national taxation
based wholly on consumption, wealth
necessarily escapes its fair share Of the
burden of supporting the Government,
which gives wealth the necessary protec-
ton under which it increases its gains.
On the other hand, when he purchases
for himself and family the necessities
of life, the man of meager earnings con-
tributes out of his daily wage to the
support of the Government. When a
citizen pays taxes according to his earn
ings, from whatever source, he gives
support to his Government, and receives
protection from it in more equitable
manner than under any other plan OF
taxation yet devised. If his earnings
increase his taxes increase. and justly,
so, for he is better able to pay increased
taxes. If his gains decrease, so do his
taxes. and fortunately for him, because
he is less able to pay them. A tax on
earnings is also preferable to taxes c. on
bought and sold commodities in that inc
rate can be raised or lowered to rles.
the exigencies of revenue requirements
without consequent disturbance o! piliees.
The burden of the present :aaire e:
taxation falls upon peoopPoIe e Thn i,r n
o oe 40 of Of the customs taxes is paid
By bv'r people whose III incomes do not exceed
that pI AMOUNT mt This excise bill aims to
d;str; i,, more Justly the tax burden
BY t shifting It to the shoulders of those
Mr., Underwood and his Democratic
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
There are 230 Democrats in the House

There are 230 Democrats in the House
of Representatives, l6l Republicans, and
one Socialist. The Democratic majority,
therefore, is 6S. AS shown by the rec
ord of the passage votes, every Under
wood bill except that revising the Chem
ical Schedule received not only the solid
support of the Democrats in the House
but enlisted many Republicans. While,
as stated, the Democratic ma ority. IS
only Is, the free list bill passed with a
majority of ~; the wool bill by lZO
majority of last session and by 9S ma
jority this session; the cotton bill by
liz majority; metal bill by lOl majority;
and the excise bill by j majority OF ~
votes.
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Review Of Work of Sixty-Second
Congress.

The principal promises on which the
Democrats won this election were:
e1) To revise and liberalize the rules
Of the House.
(2) 10 pass bill providing for the
stblieation Of campaign expenses pre-
SedinE elections.
ca To admit New Mexico and Ar
7o1a to statehood
ca To pass a resolution submitting
= constitutional amendment for the pop
ular election of United States senator's.
60 To economic in national expen-
dRures.
f6) To revise the tariff downward %
Q rsvaue basis. =,
The thorough and business-like way
IA which all these promises have been
kspt mark real epoch in the legisla-
FIVE history Of this Country. The rules
Of the House vsre liberalized by the
Democrats by radical change in the
u1amar of appointing committees. The
yNays and Means Committee was des-
ip1nated the committee on committees,
t6us vesting in it a right which had
been lodged in every Speaker OF the
Mouse from the first to the siSty-hrst
Congress.
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Wool.

The overwhelming manner in which
the Democratic Party was given the
control of the House of Representatives
in the election of 1910 clearly repu-
dated the Republican failures at tariff
reform in the Payne-Aldrich Act OF
1909 and plainly instructed the Demo-
Gratis to proceed at the earliest rrac-
ticablc moment with downward revi-
sion. Hence it was that upon the con-
vening of the Sixty-second Congress in
the special session of April q, 1911, the
Ways and Means Committee, under the
guidance of Underwood as Chairman,
in an effort to make Immediately eftec-
tive the mandates of the people with
regard to tariff revision, at once applied
itself to the work of revising Schedule
K, which the President of the United
States had so repeatedly detained ut
terly indefensible.
The Underwood bill was the result OF
elaborate and painstaking Investigations,
during which all the information avail
able with regard to the production and
manufacture of wool was assembled and
examined. The rates of duty worked
out and embodied in this bill were fixed
without any reference whatever to pro-
lection, but with an intent to reduce
the "indefensible" rates which have been
so long a burden to the consumer and
with the only other view of producing
the necessary revenue from this sched-
ule. This bill reduced the average rate
of duty on wool manufactures (im-
ports of 191O) from 90.l0 per cent to
Ass per cent. The analysis of the
Report of the Tariff Board failed to
reveal anything that required single
change in the rates fixed therein, and
Mr.. Underwood and his committee
again presented without any change
the results of the committees lnvestlga-
ton of last summer, and embodied in
the bill presented to the House at that
time Therefore, the only real effect
of the 12-months' delay in the revision
of Schedule K, based upon the ne
cessity as stated by the President, OF
awaiting the report of the Tariff Board,
was to allow manufacturers another
year of excessive rates and to compel
the people to pay for their wooden cloth
ing during the year over S50,0OO,OOO
HiOIS lIldlI lISy "Oulu HeNS paw aiIuSt
the rates OF the Underwood Bill.
blouse Report No. As, cd Congress, lst
SESSION. In his speech, delivered in
the House of Representatives March
g, 1912, Mr.. Underwood showed that
the practice of the Republicans in adj
herring to specific duties in the Wool
Schedule was to conceal from the pub
lie the real effect OF the rates. Under
the Republican Wool Bill of this ses-
sion. which was framed through the
assistance OF the Tariff Board the higl,
rates of duty were placed upon the
cheaper goods used by the poor people
and lower rates on the more expensive
articles used by the rich. Furthermore,
when carpet woods are used in the man.
ufacturing of the cheap clothing for
the poor-and such is the case to some
cxtcnt-thc duty would be increased by
the Payne proposed bill from the rate
of the present act of 4 cents per pound
to 7 cents in the Republican proposed
bill, an increase of Is per cent. This is
a serious "joker" on the poor people Of
the country.
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Canadian Reciprocity.

The first tariff work of this Congress
was the Canadian Reciprocity Agree
ment, which prompted the President to
assemble Congress in the extraordinary
session of April 4, 1911. So marked
was the dispatch and effectiveness with
which Mr.. Underwood handled the Ca
madam Reciprocity Agreement in the
WAYS and Means Committee and on
the floor of the House that the meas
ure was passed within three weeks after
the oenvening of Congress. This bill
was fully in accord with Democratic
principles, reducing, as it did, the tariff
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Cotton.

The Underwood bill passed the House
at the first session of this Congress,
proposed to reduce the ad valorem rate
on cotton manufactures from 4S.l2 per
cent to 27.06 per cent, reduction Of
the tariff burdens under this one sched-
ulc from not less than two hundred
millions to about one hundred and
twelve millions of dollars for year or
a saving of about SSS,0OO,OO0 for r.
month period. The estimated loss in
revenue, because of this very material
and much-needed relief to the people,
would have cost the Treasury only about
three millions of dollars, which means
that for every dollar lost to the Treas
ury by the enactment of this bill, the
tax burdens of the people would have
been lessened by about 5000.
In the report of the Ways and Means
Committee on the cotton bill blouse
Report No. IS, Sixty-second Congress,
1st Sess.), submitted by Mr. Under
wood to the House of Representatives,
is this statement:
eff it is assumed that only about
one-half of the rate of duty is &C
tually effective, that is, increases do
nestle prices, and, of course, the
duty is only protective in proportion
as it really does raise domestic
prices, then it may be estimated that
the domestic consumption is ia
lcreased in price to the people,
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20

The figures of this table are based
upon official statistics of the Govern
ment. The consumption statistics are
obtained by combining the production
and import figures and deducting the
exports. The production figures used are
those of the u. S. Census Bureau, the
imports and exports which enter into the
compilation are as published by the
Bureau of Statistics of the Department
of Commerce and Labor. Except in
the cost Of sugar, where according to
the testimony, the full amount of the
duty went into the price paid by the
consumers, it has been the plan to
reckon that the duty has been 50 per
cent effective in increasing prices.
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Metals.

A very thorough revision was made
of the metal schedule by the Underwood
bill of this session; it reduced the ad
valorem rate of duty from 1885 per
cent on imports of 1910 to 22.42 per
cent. This indicates saving to !Amcri-
can consumers in the course of a year
of more than eighty millions of dollars,
causing at the same time loss to the
Treasury of only about four and three
quarter millions Of dollars.
A survey of the iron and steel indus
try shows convincingly that 1t has
reached a position of such strength and
independence that the industry does not
need the helping hand of the govern
mcnt in order to stand in competition
with foreign countries. This desirable
state of affairs has been reached as a
result of progressive Improvements IN
industrial methods coincident with steady
reductions of the tariff, which have i'm
pressed upon steel producers the neces-
sity of shaping their methods IN accord
ance with the recent inventions and proc
csses and with the principles Of cftec-
tive business organization. Under these
conditions the Ways and Means COM
mittee feels warranted in recommending
that the duties on metals and nanutac-
lures thereof be placed upon distinct
ly revenue basis, while definitely ad-
herring to the object of securing from
the Treasury as large an income as can
be obtained from this schedule consis-
tent with conserving the general inter
ests of the consumers. (See House
Report. No. 26O, Seixty-second Con-
gress, 1st Session.
Tn his speech delivered on the Metal
Bill in the House of Representatives on
January 26, 1912, Mr.. Underwood said:
"I do not believe to-day that as
manufacturer OF pig iron and you
as a producer of steel rails have
any more right to have the Gov
eminent protect your profits than
has the banker, the broker, or the
baker to have the Government pro-
tect his profits. If you are going to
protect profits, why do you not pro-
tect the wages of labor as we'll as
the profits of the manufactures?
believe that the only function of
levying taxes at the customs house
is to levy them for the necessary
revenue for the Government and I
believe that in this bill the Demo-
cratic Com1nittee ON Ways and
Means have cut ont the protection =
fef profits and presented to the
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
ed Daniel Roper and Means House Representatives

House a purely revenue measure.
You could not destroy the
iron and steel business of this
country if you put every item
in it on the free list. This great in
dustry is able to sustain itself, and,
more than that, it has protection
in large part of this country, not
due to legislative enactments, but
due to the law of gravity"
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20

These figures indicate that the value
of the articles included in the Free
List Bill consumed in this country, dur
ing a year, amount to S2,76O,OOO,OO
and assuming that the tariff is effective
in increasing prices to the extent of
one-half the rate of duty, the burden
carried by the people because of the
tariff on these articles amounts to
S3e0O15,OO0, which is IA per cent of the
estimated total consumption value.
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20

Had the tariff revision bills of the
Sixty-second Congress passed by the
House been enacted, it is believed that
the sum measuring the saving resulting
to the consumer shown in Table 2
would have proved to have been con-
servative. AS indicated by the table,
the total saving OF l2-month period is
estimated at S743OOO0O0, or an average
saving of over So for every person in
the United States. In other words, the
Treasury would have sustained a loss
of only about 100000, and Tor each
dollar that the Treasury was asked to
forego, the people would have received
relief in prices to the amount OF Sl25.
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Sugar.

In Difference to very general and
persistent demand on the part of con-
sumers, the committe placed sugar on
the free list in the Underwood bill,
which passed the House March IS, 1912,
whereby the consumers would save dur
ing year not less than one hundred
and fifteen millions OF dollars from su-
gar prices and, if enacted, will sub
stantially reduce the cost Of living. The
tariff tax on sugar amounts to about
" cents per pound. AS this entire
tax enters into the price of sugar to the
consumer it is easy to estimate the con-
sumer's burden because of tariff duties
on sugar. The consumption of sugar in
continental United States amounted in
1911 to about 7, 663, OOO, 600 pounds, and the
application of ~ cents per pound to
this consumption affords an estimated
saving to the American consumers from
placing sugar on the free list of not less
than S1l5OOOO00 during the first year
under this bill. (Sec House Report, No.
39l, Sixty-second Congress, lst Ses-
sion.)
In the speech of Honorable Oscar w.
Underwood on the Sugar Bill, delivered
in the House of Representatives, March
IA, 1912, he said:
"I do not believe any bill has been
presented to this House or will be
presented that more clearly marks
the dividing line between the two
great political parties OF this coun-
try than does the bill presented for
consideration. The minority men,
bers of the Ways and Means COM
mittee contend that we are about to
destroy great industry; that this
industry has a vested right in the
taxes levied at the customs house.
The position the Republican party
has always taken is that such taxes
arc for the benefit of industries and
going one step further, it is but
natural for them to recognize vest
cd interest in the power to tax the
American people for special privl-
leges. On the other hand, the party
that l represent on this floor have
never contcnded that it is legitimate
to levy taxation for any other pur-
pose than to raise revenue for sup
porting the Government of the United
States. We have never recognized
any man or any industry as
owning the vested right in their
power to tax the American peo-
pie. Your party, the descendant
of the Federalists and Wings,
have attempted to engraft, and have
engrafted, OH the Legislative his
tory of this country those princl-
pies brought here from the English
Crou.r" Il "Thc American
people were taxed S52.OOO,OOO at the
customs houses in 1911 and over
S6O.OOO,OOO by the refners and pro-
ducers OF sugar to maintain this in
dustry."
The resulting loss of revenue amount
ing to about ffty-thrce millions of dol
lars for 1911, was cared for by the I'm
der wood excise bill.
Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1912-04-20
Effective Leadership.

The strongest possible evidence of the
splendid work of Hon. O. w. Under
wood in framing these important bills
and in securing their speedy passage
through the House of Representatives is
afforded by the following record: