Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-04-16
CAUCUS FIGHT ON
FOR TAX ON WOOL
Democrats Making Determined
Effort to Secure Is Per
Cent Ad VaIorem.
FIFTY VOTES CLAIMED
AGAINST WILSON PLAN
Chairman Underwood Sees President
and Reports Progress With
the Tariff Bill.

FIfteen per cent ad valorem duty on
raw WOOL was the slogan of the organ.
lied opposition to the administration free
WOOL schedule when the democratic eau.
| Gus today resumed consideration of the
new tariff bill
With southern and New England demo-
Gratis still fighting the cotton rates pro-
| posed in the new measure. the anti-free
| Wool members were planning their attack
on schedule X. which the caucus expected
to reach before the close of the day.
At an early morning conference of DEM
| ocrats from Ohio, Indiana, West Virginia
and many of the western states, it was
determined to stand by their decision
TO fight for 10 per cent duty. which
they clai i'm was the original judgment of
the ways and means committee before
consultation with President Wilson.
Representative Ashbrook of Ohio.
who has presided over the anti-free
WOOL conferences. prepared to lead the
nght on the caucus foor Though the
opposition claims to have the SYM
pathies OF more than fifty democratic
members. the administration leaders
insist that they cannot muster that
many votes on an amendment to
change the bill as presented to the
| caucus.
Works on Cotton Schedule.
When the caucus resumed considera-
ton of the bill Representative Under
wood. whose physical condition was
evidently much improved, took charge
OF the measure. Work was begun on
the cotton schedule, and within five
minutes after the caucus convened a
aengthy debate was precIpitated by an
amendment offered by Representative
Ten Eyck of New York
Ills amendment proposed to raise the
rates on cotton shirt collars and cuffs
from % per cent, as proposed in the bill,
TO 40 per cent. Under the Payne law
the rate is 40 cents a dozen pieces and
10 per cent ad valorem and Mr.. Ten
Eyck in a vigorous argument declared
that the reduction of the duty would ruin
the collar and cum industry in the cities
OF eastern New York. Representative
Peters of Massachusetts, defended the
rates proposed by the committee, and for
an hour and a half the caucus wrangled
over the Ten Eyck amendment Speaker
oIark look occasion to comment on the
activities of the modern steam laundry
Il wish there were some way of get
ting at these laundries through the tariff
BILL. he said. ''They can ruin n perfectly
good collar with the greatest ease There
may be some combination between them
and the collar manufacturers"
: Mr.. Ten Eyck's amendment was finally
voted down and several other amend
ments to alter the collar and cuff rates in
the bill were defeated.
Underwood Consults Wilson.
Chairman Underwood, after an early
conference with President Wilson, ex-
pressed confidence that the tariff bill
would be approved by the House caucus
without important amendment within
the next three or four days.
Mr.. Underwood declared that while
the democratic majority was sufficiently
House within short time, the demo-
Gratis would permit the minority to be
fully heard.
of course, there will be many amend
mentS from our republican friends he
said, but the bill will pass the House
just as it is approved by the caucus
and with only few minor changes.
You can't write a tariff bill of 1000
items without forgetting to cross a T.
and dot an Il here and there. In
have to be adjusted.
Mr.. Underwood said he had merely ex-
planned some details to the President
today. and informed him of the progress
Of the democratic caucus.
Says Protest Is Baseless.
Representative Cordell Hull of Tennes-
see author of the income tax. declared
today that complaints of life insurance
companies against the provisions of the
law as affecting them were groundless.
One contention of the companies is that
dividends. which could be taxed under
the law, declared by mutual and partici-
pating companies are not dividends in
,I1 80 ~. l~,,x
arc simply refunds OF a portion of an
overcharge collected with the annual
premium, and at stated periods returned
to the policyholder.
The ways and means committee con-
tends an exhaustive investigation of
books of insurance companies shows that
in many cases the earnings OF companies
from previous investment and holdings
are nearly as large the amounts which
are annually distributed as dividends, and
that II does not appear that a separation
of sources of income is made for the
purpose of ascertaining the funds avail
able for dividends.
The committee holds that policyholder
is not promised a refund. but partici-
patton in the surplus of profits, and the
plea that the dividend is refund of a
| portion of the premium, 'ather than a
distribution of the actual surplus of the
| company derived from all sources. is not
consistent. Upon that basis, 1t is held.
/
| ton to declare dividends which will con-
form to the commercial definition OF
| dividends.
No Foreign Protests Filed.
| Chairman Underwood declared today
that no protests against provisions Of the
tariff bill from foreign governments had
yet been forwarded to the committee.
| The entire market basket" schedule
covering agricultural products at a
greatly reduced rate of import duty
was adopted by the caucus yesterday
| afternoon. The biggest fight occurred
| on wheat. -four and certain fruits in
Guiding lemons. Stubborn opposition
| came from southern members when
| the cotton rates were up for discus
| sion. Representative Webb of North
| Carolina endeavored to increase the
rates on certain manufactured prod
ucts His suggestion lost by a vote
| of .S4 to 10. Representative Broussard
of Louisiana assailed the proposed
duties on chicory and cocoa and coffee
substitutes.