The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-04-26

miscellaneous, 44.5 an average In.
crease In such commodities of i6.7 pei
cent.
In close conjunction with the higl
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
controlling thousands of plants and
one having an aggregate capital OF
many billions. 1t also referred to
the rapid exhaustion Of natural re-
sources and said that the protective
system has been greatly influential in
maintaining a too rapid rate Of de-
plctidn ~ natural resources in order
To satisfy thc constantly increasing
demands Of u rising population i un
unmiStakable fact.
Discussing the Democratic theory
of tarir revision, tho report declared
for tho establishment, OF duties de-
signed primarily 10 produce revenue
without Thought OF protection. ano
for the attainment uf this end by leg
iSiation that would not injure OF de
stroy legitimate Industry Ia this
connection the report said:
TO protect profits, Of necessity
means 20 protect inchicicncy. It does
not stimulate industry because d
manufactures, standing behind 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 clear
~ illustrated in comparison of the
wool and iron and steel industries
Wool has had specific duty that
when worked shows an ad valoreIn
basis amounting to tax of 80 per
cent on average value Of all woolen
goods imported into the United States,
and the duties imposed have remained
practically unchanged for 40 years.
'ho thee sihiS thc WOOL INDUSTRY
has made comparatively little prog
ress in cheapening the cost Of its pro-
duction and improving its bust
ness methods.
ON the other hand. in the iron and
steel industry the tariff rate has been
cut every time q tariff bin has been
written. Yet the iron and steel in
dustry has not languished."
In a series OF tables the report
showed that the articles dutiable un.
der the Payne law and placed on the
free list by tn Underwood bill in
the last year yielded a revenue Of
s2+,6ss.226 on imports Of slO2,4O2,-
57s. The committee took from the
present free list and levied duties
against articles which, It IL estimated,
will yield $4,647,055 revenue on $42,-
5s5,5l0 during IL months period
under the Underwood bill. A COM
putation by treasury experts present
ed in the report shows that the gov
ernment revenue. from all sources
in 1912 was $93s,522,4S1 and the gov
ernment expenditures 1901, l,297,959,
leaving a surplus of s37.224,5O2. The
estimated revenue from all sources
for the first year under the Under
wood bill Is 1926, 900. 900 and the esti-
mated expenditures $994.790. 900,
With a treasury surplus OF s1.335, 900
this would leave a deficit TO be raised
by the income tax amounting. to $685.
100000. The earning power Of the
income tax the first year Of it's op-
erations is fixed by the report at s7O.-
t25.00O.
In its estimate Of the amount to be
raised by the income tax the com
mittee presents n table showing that
126,00 incomes between $4,000 and
5000 will pay se9o. 600 tax: 170. 600
incomes between 5000 and $1,000"
WIFI pay $5,3i0,ooo; 5000 incomes
he'Ncc $4,000 and $1,000 VIII pay
$L-i0.oUo; $500 incomes bctwcen
$4,000 and ss".ooo viii pa, $3lY5.
a0o. l",50o incomes between $210oo
and $4,000 viii rpy }2,Ioo,"o1, a.
q" incomes between S25,o"" and
>3",oQo VIII pay ;',oeG. 900; >5,5oo in
comes between $5o."o" and &IDo, 90"