The Birmingham age-herald., 1913-04-11

was ever contemplated in the Payne
Aldrich BILL although at the time Il
was being drawn they were tearing
their hair oyer the threatened ruin
hanging over their heads.
There is probably sounder argu-
ment in favor of retaining duty on
sugar than any other single article
in the bill which is finally destined
for the free list. 1t is estimated that
the requirements of the United States
for sugar for 1918 will be close to 81
100000 tons of 2240 pounds. OF this re-
quirement Louisiana cane amounts TO
100000 tons; domestic beet, 60O,0uV
TONS total produced in the United
States proper of 100000 tons, leaving
approximately 100000 tons to come
from elsewhere. OF this remainder we
get from Hawaii 100000 tons; from
Porto Rico 100000 tons; from the Phil
ippines 100000 tons, and from Cuba
100000 tons.
Reciprocity With Cuba
We have a reciprocity treaty with
Cuba by which the products of the soil
and industry of the island are given
preferential entrance into the markets
of the United States in exchange for
like entrance into Cuba for the pro-
ducts of this country. On the part OF
the United States there was granted
reduction of 20 per cent in its tariff
rates and on the part of Cuba a reduc-
tion of 25, 80 and 40 per cent on
specified articles, and of 20 per cent on
articles not specified.
Since 1903, when this treaty became ef-
fectfve the trade between the United
States and Cuba has been growing rap
idly. whether because of the treaty or
not-in the eyes of the commercial world
hA se- fr;r. l, EXnOrtG
to Cuba have increased from s21 76l ,63S
In 1903 to s62, 3051 in 1912. We buy far
more from the island. however, than we
sell, the imports for the same years re-
spectively being $629i2. 100, and $12O. .1oi, 326.
1t is proposed in the tariff bill to re-
duce the duty on sugar to but IL per
100 pounds, the present duty being $135
and on Cuban sugar alone inasmuch as
the sugar imported from Hawaii, Porto
Rico and the Philippines all comes in
free. If the bill passes as it now is,
the duty of 81 will expire in three years
and sugar will be on the free list. The
three years of grace are given for the
sugar interests in this country to prepare
themselves for the final change from pro-
lection to free sugar.
Costs of Production
staten ent submitted to the Hardwick
committee by a beet sugar expert shows
{, reduction in producing cost from 4.256
cents in 1899 to 3.6787 cents in 1909. He
stated that had it not been for an in
crease paid the farmers for beets, the
1909 figure would have been 2.ss26 cents,
In the same time the average extraction
per ton of beets increased from 1896 to
252S pounds. The question then is, ac-
ceIting their own figures. If the three
years time have before them the sugar
industries cannot to a large extent pro-
tect their loss by reason OF the tariff
being taken off their product, by scien.
tific application of improved methoda
reducing their costs, and increasing the
sugar extraction from their beets.
Income Tax Provisions
The income tax feature of the bill is
also attracting widespread attention. Up
to this time there is no organized objec-
tion offered to the income tax. The in
come tax provision Is little complicated
when first read, but in reality is very
simple. To begin there is what the COM
mittee designates as a normal tax of
per cent on all incomes above $1,000.
Added to this are certain surtaxes on a
graduated scale. All incomes between
$4,000 and $4,000 are to be taxed 1 per
cent in addition to the first normal
tax of ! per cent In other words a
person with exactly $4,000 income will
pay l per cent on $4,000, $1,000 being ex-
empt which will be the normal tax
and will equal 500. Then in addition
thereto he pays per cent on $4,000, rep
resenting the difference between $4,000
and $50,O00 which will be $500. The man
then. with an income of $4,000, pays to
the government a tax of S769 per annum.
Incomes from $4,000 to 100000 are sub
ject to a surtax of 2 psr cent. The man
then, with an income of 100000 pays his
normal tax of per cent on $4,000 or $3.50:
Il. l.. IL.
s20,000 and $4,000 or $500 then he Gays
an additional per cent between S50,0N
and 100000 same being $1,000, making 2
total of $2260 or $500 more than hrs less
fortunate neighbor who only has an in
come of $4,000. All incomes above 100000
will pay a surtax of per cent. The
man with an income of $4,000 pays exa ct
ly 500 more per annum than the man
with just an even 100000 income or s2660.
No reasonable objection can be advanced
to this, and If there is an objection it
will quite likely be from the minority"