The Bridgeport evening farmer., 1913-04-22
UNDER WOODS
 BILL IS READY
tcontinued from Page One,

In close conjunction with the high cost of living the report suggested the development of trusts and indus trial combinations during the same period, and gave a list of 226 such combinations organized since 1897, con trolling thousands of plants, and with an aggregate capital of mdny billions It also referred to the rapid exhaus- t1on of natural resources, and said
 that the protective system has been greatly Influential in maintaining a too rapid rate of depletion of natural resources in order to satisfy the con- stantly increasing demands of a ris- ing population is an unmistakable fact.''
 Discussing the democratic theory of tariff revision the report declared for the establishment of duties designed primarily to produce revenue without thought of protection, and for the at tainment of this end by legislation that would not injure or destroy legitimate industry In this connection the report said
 ITO protect profits, of necessity means to protect inefficiency. It does not stimulate industry because a manu- facturer, standing behind a tariff wall that is protecting his profits. is not driven to develop his business along the lines of greatest efficiency and greatest economy This is clearly H. frustrated in g. comparison of the wool and iron and steel industries. Wool has had specific duty that when worked out to an ad valorem basis mounts to a tax of nearly ninety per cent. of the average value of all wooden goods imported into the U s. and the duties imposed have remained practically unchanged for 40 years. During that time the wool industry has made comparatively little progress in cheapening the cost of it's product and improving it's business methods
 "On the other hand, in the iron and steel industry the tariff rate has been cut every time a tariff bill has been written. Yet the iron and steel indus try has not languished."
 In a series of tables the report show edthat the artciles, dutiable under the Payne law and placed on the free list by the Underwood bill, in the last year yielded revenue of SPA, ,69S226 on inn ports of $1O2, 402,579. The committee took from the present free list and levied duties against artciles which it is estimated will yield $4,647, 055 rev. enue on $42,5S5,510 during a twelve month period under, the Underwood bill.
 A computation by treasury experts presented in the report shows that the goYernment revenue, from all sources in 1912. was $S3s,522 ,4s1. and the gov ernment expenditures $9O1, ,297, ,979, 1eav- ing g. surplus of $37, PA, 502. The esti- mated revenIre from all sources for the first year under the Underwood bill is $926, GOO, 900. and the estimated expenditures $994, 79o, 900. With a treas ury surplus of $1, 335, 900 this would leave deficit to be raised by the in come tax amounting to $6S, 790, 900. The earning power of the income tax the first year of it's operation is fixed by the report at $7O, ,125, GOO.
 In it's estimate of the amount to be raised by the income tax the commit tee presents a table showing that: 126, ,900 incomes between, $4, ,o00 and $5,- 900 will pay $63o.o0O tax; 17s,O00 i'm comes between $5,O00 and SIG, 900 will pay $5, $40 GOO; 53,OO0 incomes between $10,00o and $15,000 will pay $4,240, 900; M, 800 incomes between $15, 900 and $2O,- 900 will pay $3. .185, 600; 10, 500 incomes between $2O.00O and $25, 900 will pay $2.- and $50,O0o will pay $9, 666, GOO; 80, 500 incomes between $5O,000 and $1Oo, GOO will pay $11, ,560, 900; 2,500 incomes be- tween $1o0,0 900 and $250, GOO will pay $11,-l $50 900; $50 incomes between $250, GOO and $500, 900 will pay $6,743,000; $50 in- will pay $9.1s1, ,o00; and 100 incomes over $1, GOO, GOO will pay $5.826O00, a total Of s425, 900 incomes to be taxed $70, 125 900.
 The report says that the income tax is included 'tin response to the general
 
 long standing need of an elastic and productive system of revenue"
 t'In connection with our legislative work of readjusting the old and adopting a new fiscal policy the re- port continues, Congress should elin- mate the inequalities and abuses of the existing system of tariff taxation, reduce the customs rates to a sound revenue basis, and levy an income tax to equaIize the tariff burdens and to give elasticity and productiveness to our revenue system
 The report characterizes the present tariff system as 'fluctuating, inflex- ible. unstable and oftentimes unpro- dalctive, thus exposing the government tof deficiencies or excesses with all heir attendant embarrasSments.'
 The report declared the maximum and minimum clause of the Payne law, giving the President the power to i'm pose additional duties on the goods of countries declining to include the United States as ia most favored na- tion'' in commercial adjustments, has been a failure. The new bill strikes that provision from the law and gives the President the power to negotiate | trade agreements containing mutual coneessione'' with foreign countries to | be approved by Congress.