The Birmingham age-herald., 1913-05-30
Whether Raw Material Is to
Be Free or on Duty a
Big Problem
HEADERS CONFER
WITH PRESIDENT
Agreed to Make Raw Material and
Products Equal, Either Both on
Free List or Of Equal Duty.
Wilson's Position Uncertain

Washington. May 2e.--whether to
put cattle, wheat ard oats on the free
lfst or to put duty on their products
is one of the absorbing problems of the
Senate finance committee Just now in
revising the Underwood tariff bill for
Senate consideration. Senator Simmons,
chairman of the committee; John Sharp
Williams. chairman of the subcommit-
tee handling the agricultural schedule,
and Representative Underwood. chair
man of the House ways and means COM
mittee, discussed the matter with Pres
tdent Wilson today.
The President is reported to have
agreed with Senator Williams and Sem
ator Simmons that raw material and
their products in the agricultural sched-
ule should be equalized in the bill in
stead of placing raw products on the
dutlable list and making meats and
-four free in the bin at present. To
equalize them was determined upon
several weeks ago and the Senate sub
committee today is reported to have
decided also to put cattle, sheep and
hogs and wheat and oats on the free
list.
Wilson's Position Not Disclosed
whether the President agreed TO free
listing of the raw material or urged
that the agricultural products be made
dutiable In conformity with the Tn
derwood rates ON raw materials was
not disclosed after today's conference,
but democratic senators were resigned
to the generally accepted report that
all these articles would be placed on
the free list. They were also gener-
ally In accord with the definite an
nouncement by Senator Simmons after
his conference with the President that
the per cent tariff discount on i'm
ports on American ships would be
stricken from the bill.
Representative Underwood and other
House leaders, however. are not salts
fled that the discount conflicts with
treaty provilsons and they are expect
ed to make fight to have the clause
reinserted when the bill reaches con-
ference.
Free wool and free sugar as pro-
vided for in the Underwood bill tonight
are regarded to be in a stronger po-
sition than ever and tightening of the
strings on these administration meas
ures is reported to be due largely to
President Wilson's recent attack on
efforts of lobbyists to change the SEN
timent as to these schedules One dem
ocratic senator who heretofore has been
of the mind that small duty should
have been placed on wool and that free
sugar in three years should not have
been imposed, changed his mind TODAY
He now says he is convinced that both
industries can get along without pro-
xection.
Cotton Schedule
The cotton schedule is reported now
80 be very unsatisfactory in MANY in
stances to the finance subcommittee ana
~ is to be generally rearranged and
many Items to be changed the duties
3n most cases to be increased from tho
Underwood rates
Again today the Williams subcommit-
tee was at work on the income tax Soc
ton of the bill and comprehensive
brief, supplementing his oral testimony
was filed by Darwin p. Kingsley, presi-
cent of the New York Life Insurance
company, opposing the taxing of mutual
life insurance companies
Mr.. Kingsley revealed q point hitherto
not discussed, that "the bill entirely ,g-
nores the fundamental provision. which
says that incomes under $4,000 shall not
be taxed"
Not 10 per cent of the policy holders
In cooperative or mutual companies have
incomes over $1,000" Mr. Kingsley as
serted. yet this bill proceeds to tax a
man. however small his income, merely
because he insures his life"
Declaring that there are no profits In
mutual life insurance companies and that
they should be exempted from the in
come tax Just as mutual fire insurance
and other organizations will be. Mr..
Kingsley pointed out that by state and
federal governments life insiIrapca no,,,
panies and their members already were
taxed $2S,500,000 annually, $1.50O.0o0 being
the corporation tax which is to be re-
enacted in this bill
Tax on Government
LAS it lies before the Senate" he add
ed 'the bill taxes what are mistakenly
called dividends paid to members of
mutual companies. 1t levies the tax al
though our own federal government ha IS
declared that such returns under the cor
roration tax used in the abatement of
future premiums are not dividends To
tax them Is to levy a tax on a tax. 70
punish individuals for effectualIv doing
the very thing the state is preparing to
do when it levies a tax"
Representative Hull of Tennessee. au-
thor of the income tax, has urged the
cerate finance committee to be careful in
revising the section lest they leave any
panies might evade the tax.