New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-24
WOOL AND SUGAR MEN
SEE A RAY OF HOPE
Think a Way Has Been Found
to Force House to Accept
Duties on Commodities.
WILL ASK SEPARATE VOTES
Manufacturers Fighting Hard
Before Sub Committees for
Changes-Income Tax
Problems Unsettled.
lFrom rhe Trlhnne Bureau

From Ine Tribune bureau
Washington. May 23.-Prospective VIC
tins Of the Democratic tariff bill. many
OF whom laid their complaints before the
subcommittee Of the Finance Commit
tee, found crumb Of comfort to-day in
the hope that way had been found TO
change the free sugar and wool schedules
in the Senate and force the House TO ac-
cept a duty on these commodities
The Democratic leaders have been con-
sderng d plan to permit the Senators
from the Western states TO vote with the
Republicans to place duty on wool and
sugar. to save themselves from political
disaster. with the understanding that
these amendments would be abandoned in
conference and that the recalcitrants
would come back into the fold and vote
with the majority in adopting the con
ference report. If this is carried out the
Western Democratic Senators will be in
the position in the final analysis of vot-
ing against tariff revision or accepting
the free sugar and wool schedule.
Republicans have devised a scheme TO
check this move by pressing considera-
ton of Senator Cummings's resolution
providing that vote may be taken on
separate questions involved in a confer
ence report, which, according to the pres
ent rules, must be adopted or rejected in
its entirety. If the Cummins resolution
is adopted the Western Democratic Sen
ators will be able to single out the wool
and sugar schedule without defeating the
entire tariff bill and TO stand with the
Republicans for duty on these two
commodities 10 the last
There was also some hope among the
advocates of a sugar and wool duty that
a compromise would be reached. The de-
fiance of Senators Newlands and Walsh
has gone so far that il is regarded as
probable that they will take their stand
with the two Senators from Louisiana.
If they make good their threats the
Democratic leaders will be forced to place
4 duty on wool and sugar or TO suffer
the defeat of tariff revision.
Democrats in a Predicament.
In their present predicament. with the
President demanding their support of the
hill on the one side and their constituents
threatening their destruction on the other,
il is difficult TO see how the Democrats
can avoid at least giving their support 70
the Cummins resolution TO amend the rule
relating to conference reports.
Pressed hard by the critics of the bill,
the Democratic leaders are taking steps
10 rush through the measure with the
least possible delay. The Finance Com
nittee is being flooded with requests from
manufacturers that the time for hearings
on the bill be extended. so that they may
make their complaints in person. The
Democrats. however. have decided 10 end
the hearings next Tuesday. The SUBJ
committees will then take up the task OF
revising the bill. This work probably will
not be completed until the following week.
Senator Simmons admitted to-day that
the measure probably would not be ready
for consideration by the caucus until after
June 3. the date fixed several days ago.
When the bill is presented 10 the Sen
ate stringent measures will be taken 10
exhaust the opposition. The Senate will
convene early and hold night sessions. and
the debate will not be allowed to lag for
a moment.
Little consideration has been given 10
the income tax section Of the bill as yet.
The most important questions 10 be con-
sidered by the Finance Committee. as pre-
scented IN tire hearings. are:
Whether the tax shall he levied on the
net incomes Of mutual life insurance com
panies.
Whether dividends paid 10 policyholders
in the form OF decreases IN premium
rates shall he exempted.
Whether interest paid by corporations
on bonded Indebtedness I'm excess Of theiI
capitalization shall be exempt.
Whether the tax should be levied OF
the income of leasing corporations paid
as rental.
Transit Companies Object.
Representatives Of the Brooklyn RAPID
Transit and the Interborough companies
have appeared before the Subcommittee
10 protest against the taxing of income
devoted TO the payment Of interest OF
bonds in excess OF capitalization. The In
terborough company contends that tht
TAX should not be levied on income paid
as rental for the property OF lessor cor
porations. In the case Of the INTERIOR
ough the rental IS fixed at per cent and
unless the proposed modification is MADE
the leasing corporation will pay all thu
tax and the Gould properties will escape
taxation altogether
Much stress has been laid on the fact
that the income tax section present,
many instances Of double taxation, but
the members Of the committee take the
view that this cannot be entirely avoided.
B. A. Levette. representing the New
York Merchants Exchange. and S. Chris
" Mead. secretary Of the Merchants A.
ISOLATION Of New York. appeared before
the Subcommittee to-day TO suggest GER
tain changes in the administrative feat
ures Of the tariff bill which would give
the Secretary Of the Treasury power 10
proclaim general import values
An important change in the bill as IL
passed the House. 1t was reported, has
been made by Senator Stones committee
in the metal schedule. II is declared to
have decided 10 put pig iron and ferro-
manganese on the free list The Under
wood bill levies a 10 per cent duty on pig
iron and Is per cent on ferro-manganesc
used in the manufacture OF steel.
e