The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1913-09-23
HAVE RUN AGAINST
A SNAG ALREADY
Tariff Bill Likely to Disrupt
Trade With Other Countries.
TO REQUIRE A NEW ACT.
Situation Seems to he Serious, But IL
is Hoped Amicable settlement
May be Reached.

is Hoped Amicable settlement
May be Reached.
Washington, Sept. 22.-Apprehen- |
sion lest the Democratic tariff bill |
lead foreign nations to impose tariff |
penalties against the United States |
as soon as the law goes into effect, |
today caused administration and SEN
ate leaders to plan the introduction
OF joint resolution in Congress max |
ing specific provision for the con-
tinuation of existing relations with
all countries until President Wilson
has time to negotiate new trade
agreements. The seriousness of the
situation that will confront the ad-
ministration was today impressed on
Chairman Simmons of the senate
finance committee by state depart
ment officials. 1t was pointed out
that the trade relations established
by President Taft's proclamation
under the Payne-Aldrich law of 1909
would terminate as soon as the new
law becomes effective and the United
States would then face the possibility
of having higher tariff rates applied
by many countries against it's ex-
ports.
SPECIAL PENALTY RATES.
"Hlle IHe JdTlH law WOulO give
the President authority to negotiate
trade and reciprocity treaties it also
would require him to apply special
penalty rates against countries dis
eliminating against the United
States. To prevent the possibility of
trade wars the state department now
is defining a Joint resolution which
will provide that existing relations
shall continue for four months This
will not keep in effect the tariff
rates of the Payne-Aldrich law but
will assure to foreign countries that
the new penalty provision of the I'm
derwood-SimmOns bill will not be ap-
piled to them until a reasonable time
has been allowed the President and
the state department to negotiate
| new trade treaties.
WILL REQUIRE SEPARATE ACT
At the White House and later at
the state department Senator Sim
mons today pointed out that it would
be impossible to insert the provisions
desired as an amendment to the tar
| iff bill, because the introduction of
any new matter is precluded while
the bill is in conference. The pro-
vision win be put through Congress
as a separte act, supplementary to
the tariff law.
Senate amendments to the triff
bill would authorize the President
to assess extra duties on coffee, tea,
fish, Chinaware, silks, laces, jewelry,
sugar and many other items coming
from countries not treating the
United States as a favored nation.
While the Joint resolution could not
prevent other countries from i'm
posing higher tariffs against the
United States it is expected that it
will induce them to withhold such
action temporarily at least.
TAX ON INCOMES.
The senate conferees on the tariff
bill late today won their fight for a
heavier tax on big incomes, when the
house members of the conference
committee agreed to accept the SEN
ate amendments, increasing the tax
rate to a maximum of seven per cent
on incomes of more than 100000.
The committee tonight had so
nearly completed the income tax sec
ton that concluding details will be
worked out by a subcommittee. The
amount of income that is to be free
from tax is fixed at $4,000 by the
house and SO 900 by the senate; the
exemptions to be allowed on account
of families and the provisions to be
panies still are at issue.
The deductions that are to be al
lowed from ordinary incomes in ar
irving at the met income" that is to
bear tax, were accepted practically
as determined upon in the senate.
These deductions varied in several
particulars from the provisions
originally made by the house.
No decisions will be made by the
conference committee upon the sug-
gested compromise on the cotton flu
ture tax until other sections have
been disposed of. While portion of
the conferences continue work upon
the income tax provisions tomorrow
others will take up the administrative
sections of the bill which include the
provision for retaliatory tariff rates
against foreign countries and for the
negotiation by the President of recip-
rocal trade agreements.