The Barre daily times. (Barre, Vt.) 1897-1959, 1913-04-22

and gave list of 226 such combinations
organized since 1897, controlling thous'
ands of plants and with an aggregate
capital Of many billions. II also re-
ferred to the rapid exhaustion OF nat
ural resources, and said: THAT the
protective system has been greatly in
fiuential in maintaining too rapid rate
Of depletion of natural resources IN Or
der to satisfy the constantly increas'
ing demands of rising population Is
an unmistakabe fact"
Discussing the Democratic theory OF
tariff revision, the report declared Tor
the establishment of duties designed pri-
marly toproduce revenue without thought
of protection. and for the attainment OF
this and by legislation that would not
injure or destroy legitimate industry.
Wool Taken As Illustration.
| In this connection the report said;
"To protect profits, OF necessity
means to protect in efficiency. 1t does
not stimulate industry became Il manu-
facturer, standing behind tariff wall
that is protecting his profits, is not driv-
en- to develop his business along the
lines OF greatest efficiency and greatest
economy. This is clearly illustrated in
comparison of the wool and iron and
steel Industries. Wool has had speci-
fc duty that when worked out to an
adj valorem basis amounts TO tax OF
nearly 90 per cent. of the average value
Of all wooden goods imported into the
United States and the duties imposed
have remained practically unchanged for
forty years. During that time the wool
industry has made comparatively little
progress in cheapening the cost of its
products and improving its business
methods.
"On the other hand in the iron and
steel industry, the tariff rate has been
cut every time tariff bill has been !
written Yet the iron and steel in
dustry has not languished."
In series of tables, the report showed |
that the articles dutiabe under the
Payne law, and placed on the free list
by the Underwood bill in the last year
yielded revenue of S24.de3,22e on i'm
ports of Sl02,4 so The committee
took from the present free list and ley
led duties against articles which It Is
estimated will yield S4,647 ,055 revenue
on $42,595,5l0 during a twelve month
period under the Underwood bill,
A computation by treasury experts
presented in the report shows that the
government revenue. from all sources in
1912 was Sg3s, 1922 ,4sl, and the govern
ment expenditures S00l,297 .079, leaving
/ surplus OF s37 .2245O2. The estIinat
ID revenue from all sources for the first
year under the Underwood bill is 1920
100000, and the estimated expenditures
1904 100000. With treasury surplus
If 81 $4,000 this would leave deficit
% be raised by the income tax amount
ng to s6s,7S0,0O0.
Earning Power of Income Tax.
The earning power OF the income tax
he first year of its operation is fixed by
he report at S70,l25,000.
In its estimates of the amount to be
alsed by the income tax the commit
ee presents a table showing that 1885,
100 incomes between $4,000 and $1,000 :
viii pay S630000 tax l7s000 incomes /.
etween $4,000 and $1,000 will pay S. !,
10000; $4,000 income. between $4,000
nd $4,000 will pay "a 100000; 24,500 !
leones between 600 and $4,000 will !.
ay paw So $4,000; l0.500 incomes be-
ween S20.g00 ard $4,000 viii pay e.
10000; Il ,000 incomes between 5000
nd $4,000 will pay S9,666,00 $500 /,
,eomes between $4,000 and 100000 /,
ill pay 81 100000; $500 incomes be- 4
ween 100000 and S250,0o0 viii pay (
II 650n00: $50 incomes between $3.50, j,
DO and S500,000 will pay S6,T43,000j u
30 incomes between S500,000 and ST., n
10000 will pay SD,lol 600 and 100 in
q 4
28,000; total o. $4,000 incomes to be r
,xed $70,125,00o.
The report says that the income tax
included in response to the general
amand for justice in taxation and the
ng standing need of an elastic and %
system of revenue."
in connection with our legislative
ork of read justing the old and adopt
q new fiscal policy" the report con
nues, Congress should eliminate the
eeualities and abuses of the exist :.
2 system of tariff taxation, reduce the ~ ~
l,toms rates 20 sound revenue basis,
I'd levy an income tax to eeuali-e the -
riff burdens and to give elasticity and y.
to our revenue system"
The report characterizes the present :,
riff system as "fIuctuating, infiexible, y.
lstable and ofteHtimes unpreductive, e,
us exposing the government to de- a. =.
lencies or ekcesses with all their at -
ndant embarrassments." -
The report declared the maximum and
inimum clause of the Payne Jaw, Civ N
z the president the power to impose "
dtienal duties on the goods of coun
les declining to include the United
ates as most favored nation i'm
adjustments has been a fail M
e. The new bill strikes that provision
Dm the law and gives the president
e power to negotiate trade agreements
ntaining mutual concessions" with
reign countries, to be approved by
ngress. 1e
ca