Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-07-18


rich tariff law is proposed by
the Democratic Underwood Simmons
tariff bill upon which the Senate be-
gan general debate today. accord
ing to the report of the finance com
mittee majority submitted by the
chairman, Senator r. M. Simmons.
The report also shows that the bill
as reported to the Senate provides
a rate 422 per cent, lower than the
Underwood bill as it passed the
House and that from 1t, together
with other government receipts for
the fiscal year ending June 80, 1914,
there will be an estimated surplus
in the government treasury of
81, 02o, 900.
More Undutiabls Imports.
A salient feature of this bill, it
is pointed out, is the large increase
of imports to be admitted free OF
duty. Under the House bill the
value of free listed imports, on the
basis of 1912 importations, was S103,-
100000, whereas the Democrats of
the Senate in caucus, by sweeping
changes, propose to free list imports
valued at $147, 1857. 900, an increase In
undutiable imports over the House
bill of s43,367,oo0.
Upon the basis of ten months for
the coming fiscal year. the report
estimates that the receipts from Gus
toms alone under the new bill will be
1886, 100, 900; from income tax for ten
months, $780, 900; corporation tax,
$37. 100000; internal revenue, includ-
ing tax on cotton futures, of $5,000,-
900, 1927, 100000, and that the revenue
from all other sources will bring
the total for the fiscal year to $685.
$4,000. With disbursements, esti-
mated for the committee by treas
ury experts at 1894, 100, 900, a balance
is shown in favor of the government
of $4,000, 900.
President May Impose Duties.
In analyzing its changes in the
House administrative features of the
bill, the committee deemed the
amendments of the House entirely
too drastic" particularly those au-
thorizing examination of books of
foreign manufacture a 5 per cent.
tariff discount on imports in Amer
lean ships and other like features
which were stricken out. Particular
attention is called to the Senate pro-
vision designated to furnish the
President with power to IMPOSE tariff
duties of retaliatory character upon
all articles comprised in a specified
list" which includes many agricul-
tural products.
For some years" says the report,
in referring to this retaliatory pro-
vision. there has been a develop
ment of maximum and minimum
tariffs abroad. and in not few in
stances the government of thesUnited
States has been compelled to see its
citizens subjected to harsh and dis
eliminating tariff treatment abroad
without being able under the law to
afford relief. The tariff act of 1909
recognized this situation and estab-
lished general maximum schedule
of duties 20 per cent. higher than the
general or minimum rates of the
law. This maximum schedule has
proved embarrassing, clumsy and in
adequate, and the situation under it
has been less satisfactory than that
which previously existed No ma
terial advantages have been derived
from it. but on the contrary it has
stood in the way of successful COM
merce with other countries.
VIII Not Disturb Fiscal System.
"The provision now recommended
will, 1t is believed, place in the hands
of the President powers which,
though extensive in their sphere, are
sufficiently cireumscribed to permit of
their being exerted within the limits
assigned them without disturbing
the general fiscal system of the
United States. Wise use of the re-
taliatory power will, it is reasonably
to be expected, bring about equitable
arrangements with those. countries
which do not now afford US fair
treatment, and it is probable that
the weapon thus provided will be SO
available and effective as to render
its actual use entirely unnecessary
under any ordinary conditions"
ed by the Senate committee, a tax of
one-tenth of one cent a pound on
cotton sold through stock exchanges
for future delivery. the reports says:
THE committee believes the SUBJ
ject matter to be one fit for the i'm
position of proper tax, not only
because of its indirect influence in
eliminating a parasite which has af-
fiicted the business of dealing in pur-
chases of cotton for future delivery,
but because it will result in the coll
lection of considerable sum of
revenue from a source which in its
usual operation produced abnormal
profits from a business that is not
susceptible of just taxation In any
other way.
180,0o0,000 Bales Year.
1.-THE committee is advised that
since 1907 no official record of the
extent of the dealings on the cotton
exchanges in contracts for future de-
livery is accessible to the public.
but reliable estimates fix these deal
ings at about 130,ooo,00O bales an
nually in recent years. 1t seems to
be the consensus of opinion that
about 10 per cent. of the contracts
of sale and purchase of cotton for
future delivery Is embraced in that
branch of the business known as
hedging, and that the other 80 per
cent. thereof is of a speculative or
gambling character. where no deliv-
cry OF the product is ever really in
tended to be made.
IF the effect of the proposed tax
is to eliminate all of the latter class
OF business and to leave intact that
part of the dealings resorted to for
hedging purposes. the revenue de-