Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-04-19
Underwood in Caucus Says
Language Will be Cor
rected to Exempt Policies
as Was First Intended.
HULL OF TENNESSEE
EXPLAINS THE BILL
Congressman Who Framed
Measure Tells Caucus OF
Clauses; Favors $4,000
Exemption Feature.

SAONOSO, Owls Y13o0~
Exemption Feature.
Washington, D. c., April 1s.-With
democratic members of the house in
the realm of students today, Repre-
sentative Hull of Tennessee converted
the tariff caucus into class In income
taxation after the caucus had dis
posed Of amendments to few items
on the free list passed over from yes
terday. Several members sought To
have small duty levied on raw rub.
ber raw silk and tungsten ore.
Representative Hull wrote the in.
come tax section of the democratic bill
in which widespread interest has been
aroused, members of congress particu-
larly evincing a desire for informa-
ton as to the effect of the proposed
tax before trying to criticise its pro-
visions. The Tennessee member, Who
has made study of the income tax
problem for many years, elucidated
his plan In lengthy address to his
colleagues, and on nearly every pro.
vision he was asked dozen questions.
How the ways and means committee
had arrived at $4,000 as the exemption
limit for the income tax was the first
subject of inquiry, some members ask
ing IL 5000 would not be better and
Others demonstrates an Idea that the
exemption should be lower.
Avoid Special Exemption.
A lower exemption, Mr.. Hull ex-
planned, would necessitate bill with
SO many special exemptions that it
would be difficult Of enforcement and
also would entail SO much administra-
tive work as to make it unprofitable.
BY fixing the exemption at $4,000, spe-
cial exemptions are not necessary and
1t was stated the operation Of the act
and collection Of the tax were made
comparatively simple.
Considerable opposition to some OF
the features of the acts are developing
though the leaders declared many
members were under apprehension as
to the exact working of the act. To
clear up misunderstanding was the
desire of the committee at the outset
and this task was undertaken by Mr.
Hull.
Before the caucus met, the ways and
means committee considered some
amendments, one of which is vital, but
which would change rates on minor
commodities. They were to be offered
to the caucus. The committee then
framed an amendment to the income
tax section changing the phraseology
regarding insurance policies.
Exempt Insurance Policies.
~ f 4
In the original the language was
meant to exempt insurance policies in
computing net increasement, but it
was regarded as confusing.
1--WE will change the language" said
Chairman Underwood, ito make clear
that insurance policies are exempt.
The change does not alter the original
intention of the committee"
The constitutionality Of the income
tax it became apparent today was to
be the principal subject of debate
when it's discussion began in earnest.
Several members were planning to at
tack it on the ground that it was un-
constitutional. The committee is ready
to contend that there is no ground for
apprehension on that claim
While democrats were In session the
settle whether they should offer a
the plan of Representatives Moore and
Fordney to merely point out the peril
In the demo cratic bill" Republican
members of the ways and means CON-
mittee had voted four to two to direct
the republican caucus to prepare
amendments to the democratic bill.
The first vote of the day in the dem.
ucratic caucus before the income tax
was taken up was a motion Of Repre-
sentative Phelan Of Massachusetts, to
take boots and shoes from the free list
and make them dutiable at ten per
cent ad valorem. This defeated, he
offered an amendment for five per cent
duty which also was lost by an over
Whelming vote. rs
Wants Currency Reform.
Senator Owen Is arranging a meet
Ing Monday of the entire senate bank
Ing and currency committee, of which
be is chairman, as the first step toward
actual construction Of currency re-
form bill, to be presented in the senate
with the backing of the committee.
Antitrust Legislation will not bel
brought to the senate at the special
session of congress, in the orinion OF
members Of the senate Interstate COM
merce committee which had its first
meeting today. The cotemittee pro-
poses to prepare legislation to be
pressed at the REGULAR session in De-
.ember.