New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-07-02
INSURANCE COMPANIES
GAIN TAX EXEMPTION
Tariff Caucus Holds They Need
Not Pay on Premiums Re-
turned to Policy Holders.
COTTON IMPOSITION STANDS
Mill a Pound Expected to Check
Speculation-Likely to Drop
Move Against Importation
of Child Labor Products.
From The Tribune Burcaul

Washington. July AFTER rejecting last
night the amendment of the Finance Com
mittes exempting the dividends Of mutual
insurance companies from the payment
OF the income tax, the Democratic caucus
Of the Senate to-day reconsidered its &C
ton and allowed the amendment 10 stand.
The amendment was rejected last night
by narrow majority. with less than half
OF the caucus voting. To-day, with
fuller attendance. the action was reversed
by a large majority.
AS the bill will be reported 10 the SEN
ate. the mutual insurance companies will
not be obliged 10 return as a part Of
their income any portion OF premium de-
posts actually returned 10 their policy
holders within the year for which the IN
come tax return is made. nor any portion
accredited to policyholders in the form
OF deductions from tire amount of pre-
miums due
Only two votes. those Of the Louisiana
Senators. were cast in opposition 10 the
committees amendment providing for the
imposition OF a stamp tax Of one-tenth OF
one cent a pound on cotton contracts for
AuluIt htllHfINs " " lFA 'AlldfA III NoSN
delivery is actually made. designed as
check upon speculation in cotton. BY this
action the caucus opens the way for the
extensions OF the scheme 10 regulate
speculative gambling through taxation.
Senator Cummins has offered an amend
ment to the tariff bill providing for a tax
upon all contracts for the future delivery
OF meats and meat products. agricultural
products and securities. when delivery is
not actually made. BY the adoption Of
the cotton tax the Democrats have put
themselves on record as in favor Of this
method OF regulation. and. with slight
support from the Republican side. the
Cummins scheme could be adopted II the
Democrats maintain a consistent attitude.
Overman Asked Tax Reduction.
Senator Overman pleaded for a reduc-
ton OF the cotton tax from one-tenth to
one-twentieth OF a cent pound and the
Louisiana Senator'S asserted that the re-
striction would play havoc with the New
Orleans Cotton Exchange, but the caucus
remained mistaken in its purpose.
The caucus struck a snag in the Borah
amendment prohibiting the importation
OF any article or commodity manufactured
bv child labor either in whole or in part
The amendment placed the age restriction
al fourteen years. Discussion brought
out the fact that in India, whence the
United States imports the bulk OF it's sup
ply of jute bags and bagging, the age
limit is nine years. AS child labor enters
largely into the manufacture OF bagging
the supply would practically be cut of.
the caucus decided, and the American
market would be turned over 10 the al
legged bagging trust.
An alternative proposition to make the
prohibition apply 10 the products OF coun-
tries where there is no law restricting
the employment OF child labor was reject
ed for fear that it would be construed as
discrimination against Japan. that
being practically the only country Of i'm
portance in which there is no legislation
OF this character. After the California