The Birmingham age-herald., 1913-04-19
Bill Progresses Rapidly
i'm the Democratic
Caucus
IMPORTANT CHANGE
IN THE INCOME TAX
Provision in Measure Exempting Life
Insurance Policies Strengthened.
Several Minor Changes
Agreed Upon

Washington, April 1s.--The tariff re-
vision bill progressed rapidly in the
democratic caucus of the House today,
was considered simultaneously by a
conference of republican representa-
tives who agreed to propose amend
laents, and Democratic Leader Under
wood tonight predicted that the bill
would be brought up in the House next
"Wednesday.
In the democratic caucus the ways
and means committee majority was
sustained at every point during a Sc
res of fights over proposed amend
ments to the income tax, the only inn
portant change being a decision to
strengthen the provision exempting life
insurance policies. The $4,000 exemp-
tion and graduated scheme of income
taxation running up to 4 per cent on
100000 or more was retained intact.
Tariff Commission ~
The House republicans in an open
conference indorsed the proposed
amendment to the bill that would pro-
vide for a tariff commission, changed
so as to require the commission to
itpoIl dHHudiiy anu ueIcTre0 until Mon
Gay action on a proposition to intro
duce as a republican amendment to the
Payne-Hill wool bill that was offered
Two years ago.
Meantime the democrats of the ways
and means committee met and agreed
upon number of minor changes in
their bill which will be offered proba-
bly, late tomorrow to correct defecfs
disclosed In the caucus proceedings, in
tplaQram1 mi
tee and in renewed study of the bill.
The democrats have been bomparded
with inquiries regarding a clause of
the income tax provision intended co
exempt life insurance policies.
To avoid complications the caucus
changed the language so as TO read
provided the proceeds of life Insurance.
policies paid upon the death of the
person insured shall not be included
as incomes"
Representative Shirley of Kentucky
proposed to reduce the income exemptions
from $4,000 to. $200o aud to make incomes
of more than 100000 pay ) per cent tax
ON the ground that the bill made too
small a minority for the people subject
TO the tax. Representative Hobson of
Alabama wanted to make the minimum
$1,000 with rate of one-half of per cent
between 5000 and $4,000 and a per cent
surtax in incomes between 100000 and b
per cent surtax above S250000. Repre-
sentative Thatcher of Massachusetts fig
ured the minimum at $1,000. All these
amendments were voted down.
May Finish Bill Today
IT was expected tonight that the caucus
would finish with the bill by tomorrow
night or Monday, and that the House
would take UP the bill the middle of the
week. with passage there before May l.
The republican caucus opened with live
ly fight over the joint tariff policy in
prospect. Representatives Moore of Penn
sylvania and Fordney of Michigan of the
republican representation of the ways
and means committee. were on hand with
resolution which would prevent the re-
publicans taking any constructive steps
In the making of the tariff.
Republican Leader Mann and his lieu
tenants presented vote on the resolu-
tions, although Representatives. Moore
and Fordney endeavored to force action.
Il do not wish to find myself two years
from now, il the democrats have made
their Mistakes said Mr.. Moore, bound
by some fool action taken here today.
Representative Payne discussed his pro-
posed substitute wool bill at length, de-
claring it was the most equitable ar
rangement of duties on wool that could
be devised. He said the bill had the in
dorsement of the tariff board.
Representative fOruney dttAcktQ tne
rates as too low and objected to the con-
ference indorsing any bill. II am OPP
posed he said, Ito the republicans pre-
senting any substitute for the rates in
the democratic tariff bill. If we put in
bill now and we are returned to power
two years hence that bill will meet us
on the trail like a scarcecrow."
Action was postponed until Monday.
The caucus adopted an amendment to
tht income tax provision offered by Rem
resentative Hull. which in effect would
require insurance companies to pay the
proposed "one per cent only on their net
il comes out of which they declare divi-
dend to polcyholders."