The Washington herald., 1913-09-23
TARIFF TROUBLES
ARE NEARINGEND
Conferees Reconcile Many
Differences Between the
Senate and House.
STATUS OF INCOME TAX
Limit of Exemption Still in Dispute.
Final Agreement Probable
Thursday.

the Underwood-Si tariff bill ad-
journed last night they practically had
reached an agreement on the rates of
the income tax, as fixed by the SEN
ate amendment TO the bill.
The question Of limit OF exemption
still is open, which involves also as
an incident ,he additional exemptions
allowed by the Senate bill ON account
of a dependent wife and dependent
children. This additional exemption is
s.. 900 on account OF the wife and $500
each on account OF dependent children
up to limit of $1,000.
The House fixed the limit of the eX-
emption at $1,000 and the Senate low
cred it to $4,000. with the additional
exemptions on account of dependent
wives and dependent children. which
makes possible total exemption Of
$4,000. TIE question of exemptions Of
insurance companies is still open, and
number OF other amendments. The
amendment made by the Senate pre-
sCribing the manner of computing the
net income for the purpose of the
normal tax was tentatively accepted.
according to report that prevailed
among Senators and Representative
Rapid Progress Made.
The conferees say that they made more
rapid progress with the income tax than
they had expected. and they expect to
conclude promptly. 1t is likely that the
conferees will pass over the income tax
amendments that remain and devote to-
day to a consideration of the admins
trative features
AT agreement was reached on the
amendment put into the bill in the Sen
ate by Senator O'Gorman, which was
suggested by the city comptroller of
New York and the United States attor-
ney. and which Is intended TO relieve the
city from any obligation to pay an in
come tax on account OF its ownership
and participation in the construction of
the new subway extensions. II is under
stood that this amendment was accepted
by the conference. The entire day in
the conference was given up to the in
come tax. The full conference did not
meet until noon. a subcommittee of the
conference committee being engaged all
morning on the income tax.
II is likely that the conference will be
busy with the bill until Thursday and
POSSIBLY until Saturday. President Viii
son expressed the hope 10 callers yes
terday that he would be able TO sign
the bill not later than Thursday. He
made this statement following a confer
ence with Senator Simmons and Senator
Hoke Smith. When the President signs
the hill he probably will make public
statement analyzins the measure and
pointing out the benefits to the public
that he believes will flow from IL.
While the Democratic members OF the
Conference Committee, who have been
at work on the bill up to this time. may
conclude their work by Thursday or Fris
day. they will have TO invite in the Re
publican members before submitting their
report to the two Houses, and il is gen
orally conceded that two or three days
debate on the report will occur in the
Senate and House when it is submitted.
Senator Simmons asked that absent
Democratic Senators be called back TO
Washington for the session Thursday. on
report to the two Houses at that time.
Members Visit President.
A development of the tariff situation at
the White House yesterday that proved
interesting was the visit Of several Rep
resentatives from the House, who urged
the conferees retain the House paragraph
for ) per cent discriminatory rebate on
all imports coming into the United States
in American vessels.
The delegation suggested to the Presi-
dent that the paragraph be changed 10
read: "American-built vessels instead of
"American-owned vessels" The deIega-
ton included Representative Alexander
of Missouri. chairman Of the House Com
mittee on Merchant Marine and Fish
cries; Representative Small of North Car
olina. Representative Guersney of Maine
and Representative Hughes of West Vir-
ginia.
They told the President that If the
changes they suggested were made in the
bill it would not violate any existing
treaty relations with foreign countries.
The President appeared to be favorably
impressed by the arguments made to him
by the House members.
II is understood that the last matter
that will be settled by the conference
committee will be the cotton futures tax
amendment. While that appeared to be
practically settled Sunday, il was re-
opened yesterday, and the matter again
is in doubt.
1t is not -egarded as probable that
the bill will be before the President for
his signature this week, and the outlook
is that it will reach him about October l.
The most serious issue that still re-
mains between the Senate and the House
conferees over rates involves the para
graphs relating to cotton cloths and cot
ton yarns. These paragraphs may be the
subject of a disagreement reported back
to the two Houses for further instruc-
tions. The Senate rewrote these para
graphs and increased the rates somewhat
over those provided in the House bill
The question Of a duty on burlaps
and bags. in the jute schedule is still
sharply contested, and lead and zinc
duties have not yet been agreed on.
although they are in fair way for
settlement, according to the best in
formation to be had.
The date on which the wool schedule
shall become effective has not yet been
agreed. The bill. as amended by the
Senate, puts wool on the free list on
December l and provides that the de-
creased duties on the manufactures of
wool shall go into effect January 1.
The House bill provided that the wool
schedule should become effective as
soon as the bill is signed by the Presi-
dent. The conference committee has
not-been able to reconcile the con-
ficting views up to this time.
In the administrative features that
will be considered today in conference
the question of retaining the anti
dumping clause, put in by the House,
tested.
Trndc Agreement Troubles.
An eIeventh-hour discovery of interna
ticnal complications in connection with
the tariff bill upset those charged with
for the legislation They
found that the enactment of this law re-
peals all existing trade agreements made
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