The Birmingham age-herald., 1913-04-23
COMPLETED TARIFF
REVISION MEASURE
PRESENTED AGAIN
I BEFORE THE HOUSE

tContinued From Page Onc)
his business. to extend his trade in the
markets of the world.
In our Judgment the future growth of
our great industries lies beyond the seas"
Detailed Table
A detailed table was presented show
ing by schedules the ttotal revenue ac-
crued under the Payne law for 1912
and the estimated revenue under the
new bin for f2 months period.
The table shows that in 1912 $780,,
e09,915 worth of imports paid s304,59
035. in duties at an equivalent average
ad yalorem rate of 40.12 per cent.
1t estimated that under the new bill
$1,000, ,999, 900 worth of imports would
pay $266,701,O00 in duties at an aver
age ad yalorem rate of 29.6 per cent
Thus the new bill would raise S37,-
$4,000 less than the present law.
The saving thus made in revenue
collections" said the report, lis only
suggestive of the immensely greater
saving secured to the public by the
probable change in prices resulting
from the removal of the excessive rates
of the present law"
at is striking fact" the report
declared. that during the years sub
sequent to the renewal of the policy
CT high protection in 1897, there has
been radical transformation of Amer
lea neconomic life in many directions
and that in most cases connection
between the rates of protection and the
development of unfair or objectionable
conditions has been fully established.
THE increased cost of living was
mentioned as the most striking eco
nomic change needing adjustment
through the tariff and table was sub
nlitted showing the percentage of in
crease in wholesale prices of many ar
ticles in the period from 1897 to 1900.
The table gave the percentage of iu-
crease from 1897 to 1910 in farm pro-
ducts as 932 per cent; food, y266 per
cent; clothes, S5.s; metals and imple-
ments, 4s.2; drugs and chemicals, 1919;
house furnishing goods, 24.2; miscel-
laneous 445; an average increase in
such commodities of,46.7 per cent.
Development of Trusts
'1n close conjunction with the high
cost OF living, we suggest the devei-
opment of trusts and Industrial COM
binations during the same period and
list of 226 such combinations organ
ized since 1897 control thousands Of
plants"
The report saysthese with an aggre-
gate capital of many billions give en-
ployment 1t also refers to the rapid
exhaustion of natural resources and
said:
"That the protective system has been
greatly influential maintaining q too
rapid rate of depletion of natural re-
sources in order to satisfy the con-
stantly increasing demands OF a ris-
ing population, is an unmistakable
fact
Discussing the democratic theory OF
tariff revision, the report declared for
the establishment OF duties designed
primarily to produce revenue without
thought of protection and for the at
tainmept of this end by legislation that
would not injure or destroy legitimate
industry.
In this connection the report said:
ITO protect profits of necessity means
to protect inefficiency. 1t does not stimu-
late industry because a manufacturer,
standing behind a tariff wall that is
protecting his profits, is not driven to
develop his business along the lines of
greatest efficiency and greatest economy.
"This is clearly illustrated in a conf
parison of the wool and iron and steel
industries. Wool has had a specific duty
that when worked out to an ad valorem
basis amounts to a tax of nearly 80 per
cent of the average value of all wooden
goods imported into the United States,
and the duties imposed have remained
practically unchanged for 40 years.
Progress of Wood Industry
During that time the wool industry
has made comparatively little progress
in cheapening the cost of it's products,
and improving its business methods.
"On the other hand, however, In the
iron and steel industry the tariff rate
has been cut every time a tariff bill has
been written. Yet the iron and steel III
dustry mas not langushed."
In series of tables the report showed
that the articles dutiable under the Payne
law and placed on the free list by the
Underwood bill in the last year yielded
a revenue of $2469s,226 on imports of
$102. .402, $40.
The committee took from the present
free list and levied duties against articles
which it is estimated will yield $4647, ,055.
revenue on $42.595.510 during a Y month
period under the Underwood bill. COM
putation by treasury experts represented
in the report shows that the government
revenue from all sources in 1912 was $685.
$50 4s1 and the government expenditures
1901. 20, ,979, leaving a surplus of s37, PA SOP
The estimated revenue from all sources
for the first year under the Underwood
bill is S926, 100000 and the estimated ex-
pendtures 1884, 10000. With treasury
surplus of 81, 335.000 this, would leave a
deficit to be raised by the income tax
amounting to s6s. 10000
Earning Power of Income Tax
The earning power OF the income tax.
the first year or its operation II fixed