The Washington herald., 1913-06-30
COTTON FUTURES
SUBJECT TO TAX
Senate Committee Recon-
mends 0ne-tenth Of Cent a
Pound on Sale Agreements.
STAMPS ARE PROPOSED
Senator Cumnins Would Extend Pro.
vision to Include All Trades
in Options.

A stamp tax of one-tenth of one cent
q pound on agreements for sales of cot
ton for future delivery has been recon-
mended TO the Senate Democratic caucus
by the majority of the Finance Com
mittee
The committee members yesterday
agreed to adopt an amendment embody-
ing the idea that had been offered by
Senator Clarke of Arkansas with modifi-
cations. The rate proposed by Senator
Clarke was not changed, but the commit
tee inserted the requirement that the ex-
else take the form of stamp tax As
II will be reported to the Senate TODAY.
the provision will require that all agree
ments for the purchase or sale of cotton
Tor future delivery must be in writing
with revenue stamp attached, but al
lows refund of the tax upon proof
that the cotton contracted for actually
has been delivered within a given
time.
Encouraged by the action of the FL
nance Committee Democrats in taxing
cotton options, Senator Cummins of Iowa
and his supporters on the Republican
Side VIII make a determined effort to ex-
tend the cotton futures" amendment to
tax all sales of securities or commodities
for future sales and trades in options
on stock exchanges. cotton and produce
exchanges and Boards OF Trade. The
majority OF the Finance Committee re-
tected Senator Cummins' amendment. He
intends to offer II on the floor of the Sem
ate and put Democratic Senators on rec
ord. The Cummins amendment, IL
adopted, would be hard blow to short
sales.
Important Action Taken.
hxy h.
Finance Committee on the cotton fu-
lures amendment was not the only i'm
portant action taken at a Sunday ses-
sion Of the majority, that lasted all
day and far into The night.
The committee agreed to postpone
the date when the reduced sugar duties
shall go into effect until March 1, 1914
This will not delay ultimate free sugar
beyond the date fixed for 1t in the
Underwood bill. May, 1916. The action
taken today simply continues the rates
on sugar in the Payne-Aldrich law
until next March.
The majority of the committee
agreed TO report in favor of a modif-
cation of the income tax. so that it
will apply to incomes accruing since
March l. 1874 date subsequent to
the proclamation of the amendment to
the Federal Constitution making the
Income tax valid. This action of the
committee has been foreshadowed for
some time. The Senate leaders agreed
soon after they received the tariff bill
from the House to fix a date subse-
quent to the proclamation, to remove
any possibility of attack upon the law
in the courts on constitutional grounds.
Chairman Simmons and his col
leagues also made a concession to the
California sweet wine producers by
postponing until January l, 1914. the
date on which the increased tax on
brandy used in the fertilization of
wines shall become effective.
Several Changes Made.
The Senate Finance Committee Demo-
Gratis made a number of changes in
schedules. Anthony ores go upon the
free list. Screws used in woodwork will
be taxed generally 25 per cent ad va
loren. as provided in the Underwood
bill The Senate Finance Committee had
created classifications and lowered duties
somewhat on certain classes. but thel
caucus objected and the committee rel
stored the House paragraph. Machine
made files were reduced from 25 to 20l
per cent.
Jute bagging used in the manufacture
of grain bags used by farmers, which 4
carried Is per cent in the House bill and
was cut to Is per cent by the Senate
committee, was again reduced by the
committee to 10 per cent under the spur
of the Senate caucus.
Senator Simmons, chairman Of the FIJI
nance Committee believes he will bel
able to report the tariff bill into the
Senate before the end of the week. Thel
Senate will meet again Wednesday. Hell
will try. by holding night sessions, to
get the measure ready to lay before thel
full Committee on Finance Wednesday,
morning, and follow this action by re-
porting the bill to the Senate that after |
noon. Failing in this. he feels certain
be can get the bill before the full COM
mittee not later than Thursday morning. |
The Senate probably will adjourn for |
q day If the bill is not ready Wednesday. |
On Thursday it is expected that an ad- |
tournament will be taken until Monday |
following the Fourth of July. 1t is not |
the intention to take up the bill in the |
Senate for consideration at once. 1t will |
lay over for few days to enable the