Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-07-18
ON TARIFF
GIVEN TO SENATE
Salient Point in Revised Meas
ure Is Large Free
List.
ESTIMATED RECEIPTS
PLACED AT $996,81O,1O0
House Amendments of Administra-
tive Features Considered
Too Drastic.


Aldrich tariff law is proposed by the
democratic Underwood Simmons tariff bill.
the report on which from the democratic
Of the finance committee was
laid before the Senate today.
Owing to the death of a grandchild, the
second death in his family within a few
weeks, Senator Simmons did not make
his opening speech for the majority as
he had planned to do. He will speak to-
however. When the majority
report was submitted Senator Stone of
Missouri announced that Senator Sim
mons had deferred his address.
Republicans Of the Senate held con-
ference before the Senate met and dis
cussed procedure during the tariff dis
cussion. 1t was the sense of the con-
ference that whenever a republican SEN
ator desired record vote on an amend
ment the minority should stand by his
requese.
The report also shows that the bill as
reported to the Senate provides rates
4.22 per cent lower than the Underwood
it, together with other government re-
ceipts for the fiscal year ending June 30,
1914. there will be an estimated surplus
in the government treasury of s2,O2O,OOO.
Large Free List.
A salient feature Of this bill, it Is point
ed out, is the large increase Of imports to
be admitted free of duty. Under the
House bill the value of free listed i'm
ports, on the basis Of 1912. was 100000
900, whereas the democrats Of the Senate
in caucus, by sweeping changes. propose
to free list imports valued at $147. 900.
an increase in undutiable imports over
the House bill of 81, ,367 600.
Upon the basis Of ten months for the
coming fiscal year. the report estimates
that the total customs receipts under the
new bill will be s266. 10000. from income
tax for ten months, $5S.33OOOO: corpora
ton tax, $37.OOOOO0; internal revenue, in
cluding tax of $5.OOO.OOO on cotton futures,
s297 OOO, 900, and that the revenue from all
other sources will bring the total for the
fiscal year to $ss,b. o1O. 100. With disburse-
ments, estimated for the committee by
treasury experts at $994, 79O OO0, balance
is shown in favor of the government of
$2,O2OO00.
In analyzng its changes in the House
administrative features OF the bill, the
committee deemed the amendments OF
the House entirely too drastic particu-
larly those authorizing examination of
books of foreign manufacturers. per-
cent tariff discount on imports in Ameri-
can ships and other like features which
were stricken out. Particular attention
Is called to the Senate provision .'desig-
mated to furnish the President with pow
er to impose tariff duties of a retaliatOry
character upon all articles comprised in
a specified list which includes many
agricultural products.
Retaliatory Provision.
"For some years." says the report in
referring to this retaliatory provision,
there has been a development of maxi
mum and minimum tariffs abroad, and
in not a few instances the government of
the United States has been compelled to
see it's citizens subjected to harsh and
discriminating tariff treatment abroad
without being able under the law to af-
ford relief. The tariff act of 1909 recOg-
nized this situation and established a
general maximum schedule of duties %
per cent higher than the general or mini
mum rates of the law. This maximum
schedule has proved embarrassing. clumsy
and inadequate, and the situation under
1t has been less satisfactory than that
which previously existed. No material
advantages have been derived from ii.
but, on the contrary, it has stood In the
way of successful commerce with other
countries.
The provision now recommended will,
it is believed. place in the hands of the
President powers which, though extern
sive in their sphere. are sufficiently cir
cumscribed to permit Of their being eX-
erted within the limits assigned them
without disturbing the general fiscal sys-
tenn of the United States. Wise use of
the retaliatory power will. 1t is rea-
sonably to be expected. bring about
equitable arrangements with those coun-
tries which do now afford us fair treat
ment and it is probable that the weapon
thus provided will be so available and ef-
fective as to render its actual use entire
ly unnecessary under any ordinary con-
ditionS.''
Tax on Cotton Futures.
OF another important feature added
by the Senate committee. a tax Of one-
tenth of 1 per cent pound on cotton
sold through stock exchanges for future
delivery, the report says:
THE committee believes the subject
matter to be one fit for the imposition
of a proper tax, not only because of its
indirect influence in eliminating a para
site. which has afflicted the business of
dealing I'm purchases of cotton for future
delivery but because it will result i'm the
collection OF a considerable sum Of rev.
enue from a source which in its usual
operation produced abnormal profits from
q business that is not susceptible Of Just
taxation in any other way.
THE committee is advised that since
1907 no official record of the extent of the
dealings on the cotton exchanges i'm con-
tracts for future delivery is accessible to
the public. but reliable estimates fix these
dealings at about 130,O00O0O bales annu-
ally in recent years. 1t seems to be the
consensus of opinion that about 10 per
cent of the contracts of sale and pur-
chase Of cotton for future delivery is en-
braced 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 delivery of
the product is ever really intended to be
made.
Revenue About $1,000, 900.
IF the effect OF the proposed tax is to
eliminate all of the latter class of busi-
ness and to leave intact that part of the
dealings resorted to for hedging pur-
poses, the revenue derived from this tax
should amount to about 81 .00O, 600 a year.
md If it's imposition does not have the ef-
'ect Of eliminating the gambling or specu-
ative end of the business the revenue de-
lived therefrom will be enormously in ex-
less of this amount
Reduction of the basic exemption from
income tax from 81, ZOO. as in the House
,ill to $1,000 for unmarried persons. and
he consequent rearrangement of this the
.eport comments upon as follows:
Our committee reduces the amount of
exemption of net income to $4,000 and