The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1912-07-27
Permanent Tariff Board
Provided for and Reel
procity Repealed
HOUSE BILL ONLY
SLIGHTLY CHANGED
Debate on Measure Lacks Interest as
Passage Became Certain Early in
the Day-The Democrats
Defend Reciprocity

Washington. July 26.-Democrats ts
and progressives united again in the
Senate tonight and by vote of So
to is passed the democratic excise tax
bill extending the present tax on cor
porations to the business of indiyid-
uals. private firms and partnerships.
Attached TO the measure, also by the
aid of republican votes. were amend
ments for the repeal of the Canadian
reciprocity law ard the fixing of a
$50 per ton tariff on print paper. and
for the establishment of permanent
non-partisan tariff commission.
The second days victory for the
democratic progressive commission came
after debate lacking in interest.
Passage of the excise bill became
early in the day and republican lead
ers offered little opposition to 1t. Sem
: ator Borah in fight to have his in
come tax bill substituted for the tax
on business lost by vote >of 20 to
/ 3S, although he mustered to his sup
] port many of the regular republicans
and four crats--Ashurst Culber-
son, Hitchcock and MARITIME.
Will Not Permit Change
l
solidly against any change in the
f. House bill that would threaten It's de-
feat They declared the tax on bus
juess" was clearly constitutional, while
an income tax law had once been held
Unconstitutional by the supreme court
and might again suffer that fate un-
til the states ratify the amendment to
the federal constitution.
on the passage of the excise bill
the democrats were supported by the
following progressives and insurgent
republicans:
Bourne, Bristow, Clapp, Crawford. Cum
minis, Gronna, JONES' Kenyon, LaFol-
lette, Nelson, Polndexter, Townsend and
Works.
The measure was changed from the
original House bill only in minor partie-
ulars, except for the addition of the can
adar reciprocity repeal and the perma-
Eent tariff commission p.aVision, 1t VIII
go back to the House for the approval
of that body, and IL is believed an agree
ment will soon be reached,
The excise measure would levy upon
8 all persons, firms or co-partnefshlps an
annual tax equal to per cent of net IN
come in excess of 5000.
Senator Cummins' permanent tariff
once Yesterday on the wool fight anu
then lost in the final upheaval when the
LaFollette bill passed. was attached 10
the excise bill by vote of 3S to 29
All the democrats except Pomrene OF
Ohio voted against the tariff board, while
all of the republicans except Heyburn
of Idaho supported it,
Chief Fight on Reciprocity
The chief tight, aside from that center
ing about Senator Borah's income tax
measure, came upon the Canadian reel
procity amendment offered by Senator
xsronna Of North Dakota The amend
pnent adopted by the Senate, 81 to 26, pro-
yides for the complete repeal of the reci-
1,rocjtv law and for the establishment of
rate OF 81 per ton on print paper I'M
ported from Canada. in place of the pres
ent duty of s3.75. The text of the pro-
vision fixing new tariff on paper is as
follows:
THAT from and after the passage of
this act the duty on chemical wood
pulp shall be LIP of l cent per
pound dry weight, If unbleached, and
j. of / cent per pound If bleached'
and the duty on printing paper as de-
scribed in paragraph 40s of the act ap-
proved August 5, 1909 tthe Payne-Al-
drich tariff law shall be 1-10 of
cent per pound If valued at not above 3
cents per pound; 2-10 of 1 cent per
round If valued above 3 cents and not
above cents per pound; and z " per
cent ad yalorem il valued above cents
per pound"
The portion of the reciprocity law
now in effect which admits paper free
from Canadian provinces winch do not
discriminate against tie United states
was defended by Setzstors Williams.
Bacon, Smith of Georgia and other DEM
ocrats They declared the free paper
-, x..it 1u.nr <.la ri
be allowed TO remain in effect and said
under such an arrangement they would
be glad to support repeal of the bal
ance of the law. Senator Bacon finally
offered an amendment TO repal all of
the reciprocity law except the free
paper section 1t was defeated n to
81, Bristow, Clapp, Poindexter and
Works being the only progressives
who voted for 1t. The Gronna amend
ment was then adopted
The Senate made change in the
excise bill SO that the tax would not
apply to labor organizations, agricul-
tural associations or fraternal organ
izations of an insurance character This
amendment was offered oy Senator
Fletcher
Hitchcock Plan Defeated
A plan to check the tobacco monop-
oily by a special excise tax on prod
uction above certain mount, offered
by Senator Hitchcock, was defeated.
The Hitchcock proposal was a special
tax on the production of more than 20.-
100000 pounds of tobacco, 300. co., coo cigars,
the same number of cigarettes and 4.0C0,-
600 pounds of SNUFF by any one company.
For an annual production above this
quantity the tax would rise rapidly SO
that II would soon become prohibtive
Senator Hitchcock declared such a taxing
system would curb a tobacco monopoly,
which the government had failed to do
through mistake" lack Of Judgment,
connivance, or in some other way
The third of the democratic tariff meas
ures, the sugar bill. will come up tomor-
row under the agreement in the Senate.
1t is believed tonight thar the combs
nation Of democrats and progressives
would be continued throughout the third
day OF the tariff programme so that a
sweeping reduction in the sugar tariff will
have been approved by the Senate before
fhe end of toniorrow's session
Democrats have determined to support
Senator Williams bill. introduced today,
rrovidIng one-third cut III all sugar
tariffs and a cut of 30 per cent in the
molasses tariff The House bill provides
= basis of free sugar. bu. this will not
he indorsed py the democrats. 1t is ex-
pected compromise measure will be Of