Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-03-06
Lower TARIFF SURE
Actual Downward Revision
Confidently Expected. 4
UNDERWOOD FACES FIGHT
Must Battle in Caucus With Free
Raw Material Advocates.
CHANGE IN ECONOMIC POLICY
Gradual Substitution Of Direct Taxa.
ton Possible-Income Levy
to Provide Millions.

nue., dooitsn unuue protection without de-
stroying American industries. and q tarin
that cuts and slashes the schedules just
to get them low.
Loud Cutlery Is Expected.
There are democrats In Congress. in
both houses. who look upon a tariff duty
OF any kind az a device Of the evil one.
born or the republican reactionaries and
to be abhorred by all who call them
selves democrats. These gentlemen will
make loud outcry. but 1t IL prophesied
that when 1t comes to writing the actual
tarin law II viii be found that they have
only Numbered In the index.
Chairman Underwood, while gratihed
at yesterdays action OF the caucus, is
not yet out of the woods with his tariff
more battle before him in caucus. When
the committee finally drafts the bill--or
bills, since II Is not yet determined
whether the legislation shall be In one
complete measure or In separate bills for
each schedule-he will have contest
with the free raw material advocates and
with the opponents of radically low
tariff.
Bryan's Attitude Interests.
Will Mr.. Bryan, democrats are asking.
inspire his followers in the House to i'm
sist on free raw wool. as he did when
the tariff bills were framed In the last
Congress. only to 90 up against presi-
Dental votes and senatorial pigeonhol-
Ing.
The free wool men lost In that fight,
the claim that the revenues demanded
that duty be placed on wool. That
argument il no longer cogent. since the
income tax 10 expected to supply any def |
cit in revenue which may arise from
tariff reduction.
So, it viii be q straightout fight for
and against a duty on wool. Democrats
from the manufacturing east are expect
cd to demand free raw material for their
mills. on the score Of cheapening the cost
Of clothing TO the poor, and to be sup
ported therein by the democrats from the
great cities.
Western Growers to Protest.
The wool growers Of the west and from
Texas, Committeeman Gamers own state,
will In behalf Of their farming constitu-
ency protest against exposing American
grown wool to the competition Of Canada.
Australia and South America. Ohio.
Indiana and Illinois will be interested In
from those states win &c watched with
interest.
In the Senate there is a sharp division
between the radicals and conservatives.
For the present 1t Is clear that the radi-
cals-they are called progressives over
there-hold the leadership of the Senste.
Senator Kern. who Is a Bryan man heart
and soul, one time q candidate for Vice
President on the ticket with him. Ia charg-
ed with the appointment OF q committee
Of nine which in turn is to recommend the
democratic membership of all Senate COM
mittees. The supposition is that he will
put the progressives In the majority on
that committee, since it ID known to be
the expressed desire Of President Wilson
that the progressives shall dominate.
Progressives Sure to Rule.
The Senate, 1t IL true, will have the
final say in the committee assignments.
as the recommendations Of the COMMITTEES
are expressly subject to ratification by
the Senate. But, after all is said and
done, and after considering the evident
disposition of President Wilson. the be-
lief is that the finance committee will be
although Senator Simmons,
who will be it's chairman, is classed as
on the tariff. and that the
committee membership generally VIII De
OF q Wflson-Bryan type I'm its controlling
The great and most important feature
Of the forthcoming tariff legislation IL
the possibility OF a pronounced drift to-
ward a complete revolution In the eco
nomic policy Of this nation-the gradual
Of direct taxation. through
the income tax and excise laws, for the
old system Of indirect taxation by Gus
toms duties.
Bill Now Being Prepared.
Tho income tax bill is now in course of
and will come into Congress
- part OF the tariff legislation As SO
often stated. IL il expected to yield about
. hundred millions OF revenue annually
md Give leeway for further reduction OF
taTiff duties.
In point Of fact no man living can ss-
Innate the amount OF revenue wnich
AK on incomes will supply; 1t can only
be- guessed at by the estimaters. The
irst years operation Of the law might
TAIL below expectations or far exceed
hem.
The main point at issue for the moment
o the minimum income to be subjected
% taxation. 1t is known that the House
eaders would tax incomes as low
9. 900. while the Senate has preference
one objection urged to taxing the low
Ialaried man is the claim that the burden
mt the man Of known fixed salary will
. sure to be caught by the tax gAtherer,
While the man with great income. part
i which Ia unknown publicly. can evade
IL dASRoSS0
sOneot
To Affect ALI Incomes.
The new law will affect incomes from
yhatever Eource derived. The farmer
viii nay on his plethora OF crops and the
Increase Of his fiocks and herds. the mid
Iie-class citizen on his rents and salary,
he capitalist on his dividends. the pro-
essional man on his fees. the merchant
nd manufacturers on their profits.
The income tax will go into effect
simultaneously with the new tarin
aw. and that will depend upon the ex-
edition of the coming session. whether
uiy i. the beginning of the next fiscal
ear or later.
The Mckinley bill went into effect
and was used with fatal
esulfs to the republicans In the elec-
ions occurring month later. The
emocrats will have plenty of time Tor
he new law to be tried out, as they do
ct face another election until the
elections OF November,
ola.