The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-09-06
LAST STUMBLING
BLOCK REMOVED
Democrats Get Together on
Surtax Rates in Income
Tax Section.
END FINALLY IN SIGHT
Vote on Administration Tariff
Bill Likely to Be Reached
Tonight.
Especial to The Times-Dispatch.l

Especial to The Times Dispatch.J
Washington. September 5.-When
the Democratic caucus this morning
agreed to n compromise on the surtax
rates In the income tax section OF the
tariff bill and provided for the taxing
OF cotton futures. 1t removed all the
stumbling blocks In the road and pre-
pared the way for the final vote with
united party back OF the bill
Under the surtax compromise this
additional tax Will begin with incomes
of $4,000 and increase upward TO in
comes in excess OF half n million. In
dividuals enjoying an income OF. say
S55o.oo0, would be required to pay n
total tax OF s2S,520 according to calcu-
lationS made by the committee
In the caucus, Chairman Simmons
made a strong plea for harmony and
prompt settlement OF the questions in
dispute. Hoke Smith offered the sur
tax amendment, which was adopted.
This amendment as written into the
bill is as follows:
in addition TO the income provided
under this section (hereln referred to
as the normal income taxi. there shall
be levied, assessed and collected upon
the net income OF every individual
an additional income tax (hcrein re-
ferred TO as the additional taxi. of :
percentum per annum upon the amount
which the total net income exceeds
$4,000 and does not exceed $4,000,
and . percentum upon the amount by
which the total net income exceeds
$4,000 and does not exceed $4,000.
and percentum per annum upon the
amount by which the total net in
come exceeds $4,000 and.does not ex-
ceed 100000; and percentum per
annum upon the amount by which the
total net income exceeds 100000,
and does not exceed s250,oo0,
and percentum per annum upon
thu amount h. which the total net in
come exceeds s250.000. and does not
exceed 100000: and percentum per
annum upon the amount by which the
net Income exceeds s500.000
Tax Cotton Futures.
The only remaining big proposition
was that OF Senator Clarke to tax
cotton futures. His amendment pro-
vides for a tax of onc-tcnth OF cent
pound. or 80 cents bale on all cot
ton futures with a proviso that the
tax IA to be refunded whore 1t is
shown that actual deliveries have been
made. Senator Smith. Of South Caro-
lima. urged that the provision be
amended to make 1t clear that the tax
should be levied only upon "ilegiti-
mate transactions.
The caucus refused this on the
ground that the refund under the con-
ditions stipulated made the purpose or
the law TO tax the gambling sales clear
and specific. The Louisiana Senators
voiced vigorous protest against the
amendment. They said the party had
not only killed their sugar industry.
but now intended to make 1t impossi-
BILE for their cotton exchange to con-
tinue in business This, they declared,
was rubbing II In entirely too hard
upon the people of their state. The
amendment. however. was adopted.
: Chairman simmons explained all the
changes made by the Finance Commit
tee on minor items referred 20 1t. and
that action was approved. This gave
the committee clean bill, and when
the Senate convened Chairman SIM
mons was prepared to tell the Repub-
llcans he was ready to put the bill on
its final passage. Yesterday, Republi.
cans pressed Mr.. Simmons for n vote.
This afternoon. however. much to
his surprise, after Democratic differ
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