The Birmingham age-herald., 1913-06-30
Change of Date for Opera
ton of Income Tax Also
Agreed Upon
STAMP TAX FOR
FUTURE COTTON
Senate Finance Committee Spends a
Busy Day-Schedule for Free
Sugar in 1916 Has Not
Been Amended

Washington. June 29.-Postponement
of the date on which the new. sugar
tariff shall go into effect until March
]. 1914, and a change of date when
the income tax shall be operative from
January l. 1913, to March I. 1913. were
I agreed upon by majority members Of
the Senate finance committee today.
In advancing the date whom the pro-
posed rate of cent a pound on sugar
will be applied the committee did not
amend the schedule to affect the pro-
vision that sugar shall go on the free
list May ], 1916. That provision re-
mains as ii was originally in the bill
which passed the House and which The
Senate democratic caucus approved last
week
The committee also adopted an
amendment which would put "a stamp
tax ON all cotton sold for future de-
livery; declined to reconsider its ac-
tion in repeating the act of 1890, which
released sweet Wine manufacturers
from payment of the full Internal rev
enue duty on brandies used in foftify-
ing wines and adjusted several rates
on articles referred back by the demo-
| cratic caucus.
Extension of time on the sugar
| schedule, Chairman Simmons am
nounced, was agreed to in order that
| sugars purchased under the Payne- Al-
drich rates can be disposed of with
out the handicap OF the effect of re-
duced tariff rates. The date upon which
the income tax can be computed for
the first year was changed to March
|, for the reason that the date In the
bill, January /, 1913, would make the
section UNCONSTITUTIONAL, inasmuch as
the income tax amendment TO the con-
| stitution was not ratified by two-thifds
of the states and proclaimed by the
Secretary of state until February IS,
1913.
The amendment to tax cotton fuI
lures was introduced by Senator C1arkd
| of Arkansas but the paaxis1an "A
asreed to bs- the eomnittee modified
the provisions OF the original amendI
ment somewhat. 1t provides that sales
| or agreements to sell cotton for fu-
ture delivery in conformity to the rules
of cotton exchanges, boards of trade
or similar assertions. shall be sub
| Ject to tax on one-tenth of one
cent per pound. the tax to be refunded
in all cases If the cotton actually is
| delivered The amendment is de-
signed to prevent gambling in cotton
futures. The tax would be paid by ar
| fixing stamps to the written contract
| and the amendment provides the neces-
sary machinery for its enforcement.
Protests from California
Protests from California wine pro-
| ducers against the committee amend
nent to liquor schedule calculated to
| bring in $7000.000 in annual revenue
| did not move the committee except
| TO grant an amendment making the
| provision effective January 1, 1914, in
| stead OF Immediately after the pass
age of the act. Under this provision
| the full revenue tax of $1.10 per gal
| lon VIII be demanded in all brandies
used in fortifying sweet wines Since
| 1890 tax of only 3 cents a gallon
on such brandies has been required
In revising rates referred. to ii by
| the caucus. the committee voted to put
| antimony ores on the free list Jute
bags. used largely for wheat, were re-
duced from Is to 10 per cent; machine
| files from 20 to 90 per cent.
| AT a night session of the committee
| the question of fixing a time when the
| free raw wool and wooden manufac-
| lures schedule should be effective was
| taken up.
Minor tariff revision more radical in
|
posed by the Underwood bill will be
| urged upon the Senate late this week
| when Chairman Simmons reports the
| new draft of what will hereafter be
| known as the Underwood Simmons bill
| Heavy reductions from the Underwood
rates upon many articles of household
and commercial necessities: and a gem
/ eral average almost s per cent below
| that of the Underwood revision will be
recommended for the approval of the
senate backed by the almost unani-
nous iAlorsement of the democratic
| caucus.
Grinding Caucus Work
Grinding work by the caucus has
! When the inal stamp of caucus APP
| proval Is placed on the measure it will
| contain practically all of the severe
| cuts made by the committee and will
| represent the greatest reduction in
| tariff rates ever proposed in Congress-
| Democratic leaders claim the party
ranks Will be almost solid behind the
bill when it is taken up in the Sem
| ate and that its passage is assured
that of the radical democratic element
| has protected all OF the severely dis
| puted items, like free sugar and free
| wool
Success for the tariff bill is con-
| sidered so certain in the Senate that
plans already are being considered for
the opening up of the currency reform
fight.
Late tonight the majority members
grant hearing early this week to
| Secretary of the Treasury McAdoo on
O~~~~~~~~~~~~~~~
| (Cauffuued Ou Pare ThraaA