The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-05-30
With Number of Perplexinp
Problems Before Them,
Senator's Keep at Work
LEADERS CONSULT
WILSON FREQUENTLY
Has Approved Number of Change
Republican Opponents of Bill Have
Been Quite Active During Past Few
Days-Asny Amendments Prepared

Washington, May 30.-Despite the
fact that this sis Memorial day, men,
bers Of the. senate finance subcom-
mittee were at work this morning OH
several Of the foreign protests dis
posed OF, the work has been lessenec
considerably, but the committee still
has q number Of perplexing problems
to solve. ef
President Wilson is being consulted
frequently regarding different phases
OF the measure. and. at his sugges.
ton or with HE approval. several
changes already have been made.
While apparently inactive during
the past few days. the republicans and
the few democratic opponents have
been preparing for the fight against
the measure when 1t is reported to
the senate. The republicans have 4
number Of amendments ready to sub
NIT. and otherB are in the course OF
preparation. The members Of the
certain schedules and clauses, which
affect the industries in their districts
are following the work Of the sub
committee carefully, and they may
succeed in getting one or two changes
The cotton scherule is reported now
to be very unsatisfactory, in many in
stances, to the, finance subcommittee
and 1t is to be generally rearranged
and many items to be changed. the
duties in most cases to be Increased
from the Underwood rates.
Kingsley Files Briefs.
The Williams subcommittee labor
ed with the income tax section Of the
bill again. and Darwin P. Kingsley,
president of the New York Life In
surance company, filed a comprehen-
sive brief. opposing the taxing Of mu-
tual life insurance companies He
maintained that the companies are a
great benefit to the country, and
pointed out what he said were ineon-
sistencies in the bill. One point, not
hitherto discussed, which he brought
out was that ''the bill entirely iR-
nores the Fundamental provision
shas; TnlGn nss says :. thscstomes .st under $4,000
MOT ten per cent Of the policy
holders in cooperative or mutual
000." Mr.. Kingsley asserted. .'Yet
this bill proceeds to tax a man. how
ever small his income. merely be-
cause he insures his life"
Already Have Big Taxes.
Declaring that there are no profits
in mutual life insurance companies.
and that they should be exempted
from the income tax just as mutual
fire insurance and other organizations
will be. Mr. Kingsley pointed out that
by state and federal governments life
insurance companies and their MEM
bers already were taxed $2S, ,5GS, 900
annually, $1,500,000 being the corpor-
alton tax which is to be re-enacted in
this bill.
"As 1t lies before the senate" he
added. 1.-The bill taxes what are mis-
takenly called 'dividends.' paid to
members of mutual companies. It
levies the tax although our own fed
eral government has declared that
such returns under the corporations
tax used in the abatement of future
premiums. are not 'dididends.' To tax
them is to lazy tax on a tax; to
punish individuals for effectually do
ing the very thing the state is prepar..
ing to do when it levies tax"
Representative Cordell Hull Of
Tennessee. author of the income tax,
has urged the senate finance commit I.
tee to be careful in revising the Sec
ton lest they leave any loophole
through which holding companies
might evade the tax.