New-York tribune., 1912-03-02
From The Tribune Bureau. ]

Washington. March 1.-The Democrats
Of the House, In caucus tonight, ap-
proved a bill placing sugar on the free
list. thus eliminating $53,OO0O00 In an
nual customs revenue The adoption o.
this radical plan of tariff revision was
accompanied by the approval Of COM
panion measure which extends the pres
ent excise law, or corporation tax, to per-
sons. firms and copartnerships.
The excise tax. so called by the Ways,
and Means Committee, is In effect an in
come tax The bill is so drawn that It
is expected to comply with the Supreme
Courts decision against the constitu-
tionality of an income tax. Its effect
would be to tax every person who earns
more than $1,000 a year on the excess
of 5000 at the rate OF per cent.
I'VE simply took the corporation fax
law and rewrote ii to include individ-
uaIs and copartnerships." said Chairmal
Underwood tonight The bill. to mus
trate. simply means that /, whose busi-
ness is that Of a member of Congress.
will pay 10 the government l per cent
Of my salary income over 5000. The
salary OF a Congressman is SI,oOo.
would therefore pay an excise tax OF 80
year."
The President Of the United states
should the proposed bill become a law.
would pay ! per cent on $4,000, or 5000
his salary being $4,000.
The estimate of Chairman Underwood
and members Of the Ways and Means
Committee is that the proposed excise
tax would bring in a revenue OF between
$50. 600 900 and sSoO0o,ooo year
Placing sugar on the free list. the
Democratic leaders estimate, VIII reduce
the price Of sugar to the consumer about
a cent and half pound.
Predicts Republican Colorado
stormy debate marked the four hours
deliberations of the Democrats, and the
caucus vote was not taken until Repre-
sentative Rucker, Of Colorado, one OF
the largest sugar producing states. nad
warned the Democrats that their action
tonight would send his state into the
Republican column by nifty thousand
majority
Representative Taylor. of Colorado.
was still more angry. and Indignantly
refused L. take advantage OF the rule
that absolves a member from supporting
caucus action In the event that he has
made pledges to his constituents Mr..
Tavlor refused to say that he had made
any such pledges. but announced, never
tbelass. that he would not vote for the
bill agreed on by the caucus.
Representative Rucker, who Joihed
with Louisiana members in opposing free
supar predicted that II the Democratic
bill became a law it would practicaiiy
wine out the sugar industry In the
United States. He bade his Democratic
colleagues an angry and yet sorrowrui
farewell Mr.. Rucker declared that he
never expected to serve in the House
again. as his state would repudiate any
party which struck such blow at one OK
its principal industries
Colorado will send two Republican
Senators and three Republican Repre-
sentatives 10 the next Congress- said
Mr.. Rucker, because of this action to-
night The state will go Republican ny
fifty thousand, and I have no hope that
any Democrat can be returned
The caucus was practically unanimous
in approving free sugar, which the Dem
ocratic leaders declared would be one Of
the most effective and adroit campaign
arguments ever invented by that party.
There was no rollcall vote. and 1t was
said that only Democrats from Louisi-
ana and Colorado voted against the bill
Not a dissenting vote was cast against
the plan to broaden the excise law In or.
der to compensate for the loss OF $H,,-
600, 900 in revenue which will result from
free sugar.
New Tax Plan q Big Surprise.
The substitute revenue producing plan
of the Ways and Means Committees
which had been held secret even from
members Of the House. caused surprise
when 1t was suddenly thrust on the cau-
Gus late to-day, although the idea found E
instant favor with those well traine
Democrats who have long ago learned
10 shout "Bravo.' when the Underwooi
committee suggests anything in the Way
of tariff revision.
1t is admitted tonight that the COM
panion bills approved by the Democrats
in caucus are novelties In the way o