Albuquerque morning journal., 1913-06-18
Kentucky Senator Yields for
CounteNaiIing Duties on
Wheat and Flour But Con-
cedeS Nothing Further,
BANANAS TO BECOME
REVENUE PRODUCERS
Chairman Simmons Denies
Purpose TO Foster Industry
Which Now Has no Foot
hold on United States Soil,

fur MOANING JOURNAL SPECIAL LassED wiHsi
Washington. June it.-An addi-
tional exemption of $500 for each
child Of a family in the income tax
section Of the tariff revision bill was
determined upon tonight by the sem
ate finance subcommittee of which
Senator williams Is chairman. and
the change viii be recommended 60
the majority members Of the COM
mlttee tomorrow.
Having determined upon this Inn
portant amendment to the income tax,
the subcommittee also Is seriously
considering recommending changing
the $4,000 exemption in the Under
wood bin to $4,000. This. it Is argued,
would greatly increase the revenue
and with the additional exemptions
proposed for children would not Inn
pose hardships upon the heads OF
families. Senator Simmons. chairman
Of the finance committee, said to-
night that the democratic caucus OF
the senate would be called for Thurs
day whether the finance committee
majority had concluded with the
schedules or not and that the caucus
could go over the schedules already
approved with the committee Nhiie
the committee is finishing its work
Tomorrow the full committee vii
take up the income tax and admins
tratlve features of the bill. having
concluded the sundries schedule late
toi light. 4 recommendation y sna
subcommittee to decrease the 20 per
cent duty on cut diamonds was not
accepted by the majority
senator Ollie james, of Kentucky
who made the sugar tariff speech IN
the senate defending President VII
son. has taken a vigorous position IN
imposition Of u eOuntervailing duty
ON meat and cattle and announced
today that he would carry the fight
to the democratic senatorial caucus If
he failed to swing the committee into
line.
When the majority members OF the
finance committee resumed consider
alton Of the proposed countervailing
duties on agricultural products, SEN
ator James emphatieally declared that
The public was entitled to unrestrict-
ed free cattle and meat He did not
oppose the action of the democrats
in ffee-listing wheat and flour with
the countcrpaiing duty added, but he
opposed such duty on cattle ana
meat so strenuously that final acton
ON the matter was deferred. Senator
Simmons announced that the matter
was settled for presentation TO the
caucus insofar as wheat and llouf
We're concerned.
Il am for free cattle and meat aud 4
shall go the limit to get it, said SEN
ator James, when his attitude before /
the committee became known. Be F
cause some countries levy tax on
the imports of the American beef {
trust, why should we in retaliation /
staryc the people Of the United +
States2"
The majority members of the com I
mittee were in session until late to- I
night to hasten the tariff bill ana
completed the sundries
schedule. Remaining for considera- /
tion are the income tax and admins /
trative features of the bill. which the (
committee will try to conclude by I
Thursday night 1t is probable that |
the caucus viii be called to meet Fri 7
day, but problems in the administra- I
tive section of the bill may delay the T
caucus until Monday. Chairman +
Simmons is planning to get the bill
at Itt- from Mon !
day. if possible.
Senator Hitchcock, Of Nebraska
whose amendment to the tariff bill
levying a graduated tax on tobacco
output was rejected by his colleagues
on the finance committee. gave no
tice In the senate that he would car I
ry that amendment to the caucus
and make determined fight for its
incorporation in the bill. He also in
trodueed an amendment providing LOT
u graduated income tax upon all cor
porations having capital stock o.
more than 100000 and controlling
more than one-fourth of the produe-
uon of any commodity.
The action of the finance majority
- putting tdA on DhiihhaS He'S
was explained by Chairman Simmons
today as a revenue proposition.
We have placed tariff Of five
cents bunch on bananas, said the
senator, for the purpose of raising
revenue and also for the reason that
the banana trade is absolutely con-
trolled by trust. The idea was not
to protect or encourage any banana
industry in this country because there
is none. We estimate that the an
hual revenue to be derived from ba-
nanas at five cents bunch will ag-
gregate two million dollars and the
small duty of five cents a bunch can
not be shifted very well to the con-
sumer7 u