Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1912-03-29
SPECIAL CORRESPONDENCE.
BY CLYDE H. TAvENNER.
Washington. D. c.. March rs, 1912,

Should q fiscal system which permit
those who own 80 per cent. of the wealtl
of the United States to shoulder but 10 pc
cent. OF the burden of taxation be remedled
The Democratic House believes that il
should. and hence the passage of the ex
cise-income tax bill which levies a tax Of
l per cent. on incomes in excess of $4,000
a year.
This does not mean that all persons hav.
ing more than $4,000 must pay tax on
the excess of that sum. 1t means that
those who have an annual income" or
profit" of more than $4,000 must pay the
per cent. tax on all income or profit ex-
ceeding $4,000 1t will be necessary in
most cases for person to have a capital
lied sum of about 100000 before he is
called upon to pay per cent. tax on that
portion In excess of $4,000.
The standpatters, however, say this plan
is class legislation. They were never heard
to complain Of the present system of raising
revenue to run the government as being
class legislation, although it Is even more
class legislation than that proposed under
the excise-income tax bill. Under the
present system the burden falls entirely
upon the masses, wealth alone being the
one thing untaxed for federal revenue.
The masses of the people produce wealth
and by legislative advantage a few get
possession of it, and now these few object to
the transfer of the tax from but one article
of general consumption-sugar- wealth.
They would prefer that the government
continue to tax sugar instead of wealth
because they eat no more sugar than the
section hand or the mill worker, and there
fore under the present system are compelled
to pay no greater tax to the government
than does the poorest man.
The United States is practically the only
one of the great nations that raises prac-
tically all its revenue by taxing the people
according to their needs and practically ac-
cOrding to their poverty, and allows wealth
to 60 untaxed.
The government now raises 1914, 000.-
900 annually by placing an import duty
or tariff on the things the people eat wear
or use Banks. railroads and steamship
lines pay nothing because they do not come
in through the customs houses. Mr.. Rookie
Teller pays no more taxes than the average
citizen. because he uses no more of the
things the people must have in order to
live than does the average man.
II system which requires millionaire
to pay no more tax to the federal govern
ment than the section hand or the mill
worker is fair and just, there Is no need Of
reform but if such system is unjust, the
excise-income tax bill is move in the
right direction to remedy il.
RUINED AGAIN.
The sugar industry in the United States,
according to the wall going up from pro-
tectionists, will be ruined" by the bill re-
moving the tax from sugar, reducing the
price to the consumer approximately two
cents pound. This then will be the fourth
time the industry will have been ruined
according to protectiOnists always accord
ing to prOtectiOnists.
The standpatters said the industry would
be ruined when Porto Rico sugar was ad-
mitted free. But il wasn't. Then they
said it would surely perish when Philip
pine sugar was admitted free, and again
when Cuban sugar was admitted at re-
duced import tax.
But during the time Of ruin" cane sugar
production in this country increased mate
rally, and beet sugar production more than
doubled
WHERE UNDERWOOD STANDS.
Chairman Underwood, of the Ways and
Means Committee. was interrupted in his
speech against the sugar tax by Louisiana
member. who inquired of Mr.. Underwood
what he anticipated would happen to the
sugar industry in Louisiana If the tax was
removed from sugar2 Mr. Underwood replied
he did not know what would happen to
the sugar industry in that State. but hoped
II would survive, as II had done on previous
occasions. He added there was one thing
he did know, however, and that was that
the total production Of sugar in louisiana
was less than one-tenth Of the entire sugar
consumption in the United States, and
that he did not believe in the principle of
taxing 100000 American citizens in
order that comparative few sugar pro-
ducers might make an extra profit.
The PRICE Or SUGAR.
The wholesale price Of standard granu
lated sugar in New York on the day this
item Is written is SIS .85 per hundred pounds
One week ago today the price was $5.75,
one monoh ago today $5.45, and one year
ago $500. These figures are taken from
the Weekly Statistical Sugar Trade Journal,
the official publication Of the sugar indus
try of the United States.
Whether the sugar trust finds 1t neces-
sary to increase prices to reimburse itself
for the stolen millions it was forced to dis
gorge TO the government, following the ex-
posture Of the underweighing frauds, or
whether the increases are really Ju5tl1ed
by a shortage VI sugar production abroad,
Is considered a debatable question by many.
But the fact that the wholesale price of
sugar in London averages cents a pound
less than In New York the year around
shows beyond question the advantage In
favor Of the consumers in the country where
there is neither sugar tariff nor a sugar
trust.
Two SUGAR TRUST CHECKS.
When the bill to repeal the tax on sugar
was up for discussion in the House, Asher
G.. Kinds, Of Maine. arose and loudly pro-
claimed that a certain ledger in the office
of the sugar trust in New York would show
that the trust had sent checks TO the cam
paign MANAGERS Of both the Democratic
and Republican parties. Mr.. Hardwick, Of
Georgia, replied He said that what Mr..
Kinds had stated was true, but that the
same book also showed that the check
which had been sent to the Democratic
campaign headquarters had been returned
uncashed, whereas the one sent to the Re-
publicans had been cashed and spent.