Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-18


the Upper House at noon to-day
mediately was begun.
The report is largely devoted
to defense of the Senate Demo
Gratis action in reducing rates
under the original House measure
and to extensive tables showing
the percentage and effect of these
rates.
In a brief introduction, Senator Sim
mons declares that the Senate bill,
If enacted into law, will result in an
equitable distribution Of burdens and
incidental benefits Of the Payne
drich system of customs taxation that
will tend to disintegrate monopolies
built up under a protective tariff;
that will reduce the cost of living;
that will increase the opportunities Of
the individual citizen and relieve the
people from the burdens Of former
scheme of taxation"
Rich Trusts Only Hit.
The Senator points out that the in
terests hit by the reduction of duties
under the House bill are in almost
every instance trusts which have
grown rich under a high protective
tariff. Among these are the steel,
aluminium, cement, callera, asphalt,
Standard Oil, sugar, wool and paper
trusts.
To counteract the millions in I'm
port revenue lost to the Government
through the admission OF foreign
markets under a free list or reduced
rate Of tariff, taxes have been placed
upon bananas solely controlled by d
trust, upon gambling in cotton fu-
lures, upon the incomes of the rich,
upon brandies used in fortifying wines
and upon luxuries in general.
The total outcome of the Senate
tariff labors is a decrease of 27.64 per
cent under the Payne Aldrich tariff
rates and of 4.22 per cent under the
House tariff rates. Nevertheless, the
report predicts that the business Of
the Government will be run at a prof
1t.
Total Revenue s9e6,s1o,ooo.
The official figures based upon COM
pilations Of Treasury experts for the
fiscal year 1913, place the total reve-
nue., exclusive of the possible revenue
from the Panama Canal, the sinking
fund and the national bank note re-
demption fund, at 1896 $40, 900, against
an estimated disbursement of $994.-
100000 for the same period This
would leave surplus of S2,020,00
Concerning the steel schedule the
report says:
Judged by all available tests. the
American iron and steel industry Is
fully able to sustain itself without
Government aid. 1t has unrivaleI
supplies of raw material; 1t has the
use of abundant capital; it is able 10
export in connection with foreign
countries; and the industry has the
advantage of low costs. For all these
reasons it may be regarded as well
fitted as an industry capable Of
standing tariff rates figured on a
strict revenue producing basis"
Keynote of It's Defense.
This summarizes the keynote of the
Senate tariff reductions in almost
every case where they affect trust
controlled products.
A slight reduction has been made
in the cotton schedule where the COM
mOdities so treated are in common
use. The recla Justification of this
schedule does not affect the House
rates materially. The report says
that "inasmuch as silk is luxury. it
is liable to the highest possible du-
ties" This policy was maintained in
treating Injuries.
The income tax amendment is ex
planned at length, the report giving
specific quotations from the text of
the bill relating to the change from a
fiat income assessment based on
$4,000, to a sliding scale. which would
make the unenCUmbered single man
liable to assessment on an income In
excess of $4,000 while the married
man or woman with a dependent wife
or husband shall have his income ex-
empted up to $4,000 If he have minor
dependent children.
House Tax Called Unfair.
The report characterized the House
income tax as unfair to a large class
Of moderately wealthy people"
The many changes made in the ad-
ministration feature Of the bill were
clauses of the Underwood measure
were somewhat confusing" and that
It was thought best to leave the ad-
ministrative features substantially as
they were in the Payne Aldrich meas
ure until joint committee of the two
Houses could revise, codify and sim
plify" this section Of the bill. This
is to be done by January I, 1914.
The changes in the administration
section include the omission of the 8
DER cent reduction of goods imported
in American bottoms; the inspection
clause and the unit dumping clause.
Scores Gambling in Futures.
With regard to the revenue raising
tax on gambling in cotton futures the
report characterized this practice as
an evil" and said the tax was i'm
posed to deter. in some measure, the
activities of those who resort to cot
ton exchanges for the sole purpose of
speculation.
Inasmuch as the tax is refundable.
where an actual delivery of cotton is
made. it is not thought that it will
seriously affect legitimate trade.
The report predicls that the retail
iatory clause in the Senate bill will
effectually put in the hands of the
President a weapon with which to
bring about equable arrangements
with countries which do not afford
the United States fair treatment"
20 hu Nobo Watched