The Washington herald., 1913-09-09
SENATORS talk
THROUGH NIGHT
CONTINUED FROM PAGE ONE.

and RansdeII of Louisiana-voting
against their party. All the Republic
ans were soIidly against the paragraph.
This was the first direct test on the
closely contested features Of the bill, but
votes on substitutes offered by Senator
la Toilette for the wool schedule also in
dIcated clearly the Presidents control OF
the situa tion.
There is no longer any doubt that the
President and the Democratic leaders IN
the Senate have the situation entirely in
hand that the bill will go through sub
stantially in its present FORM
senate Rejects Amendment.
The first vote Of the day was on an
amendment by Senator Dillingham; o.
Vermont. providing that the receipts from
the income tax be turned over to the
States from which collected, to be applied
with an equal appropriation from the
States for the Improvement OF highways.
This was rejected. Then the Finance
Committee came forward with an amend
ment by which books printed in foreign
language should come in free. This was
4 House provision which the Senate al
first rejected, but later decided to adopt
Senator La Toilette made the Demo-
Gratis very uncomfortable by charging
while discussing the wool schedule. that
they had left the manufacturers higher
protective duty. relatively, under free
wool than these interests enjoyed under
the Payne AldriCh bill.
He told the Democrats that they had
been more considerate for the manu-
facturers than for the wool growers on
the farm, for they had reduced wooden
manufactures gradually, but had drawn
/ the props from under the farmer all at
once. You have plunged him from the
cupola into the gutter" exclaimed Mr..
La Toilette. Several Democrats got
rather nervous while Senator La Toilette
was pleading for a duty of Is per cent
on wool and consulted Senator Stone.
who was sponsor for free wool in the
Senate bill.
After expressing his admiration for MI.
La Toilette. Senator Stone declared that
the argument was AN old one" He
said that Senator La Toilette was too
great a man and too good man TO he a
Republican. but hardly good enough or
great enough to be a Democrat"
Senator Williams brought in an amend
ment to make IL certain that Senators
would be compelled to pay their income
tax. He explained that there was a
question in the minds of some people
whether Senators and Representatives
were State or Federal officers. and
to relieve the situation OF any doubt he
would provide i'm the bill that any State
officer who received a compensation from
the Federal treasury should pay tax upon
the income. Salaries of State officers
are not taxable under the income tax
law.
to lower the duty on diamonds and
precious stones. stroIled out into the
center aisle Of the Senate cha lber and
amazed everybody by holding out in his
hand a collection of pearls worth $4,000.
Senator Smoot did this to show how
easily The articles could be smuggled and
he warned the Democrats that by in
creasing the duties they had encouraged
smuggling.
Senators seemed much more interested
in the handful Of pearls than in the arsu-
ment.
SmOot shows Pearls.
81 want to give to the Senate this
afternoon" said Senator Smoot, 'an Ocu-
lar demonstration Of the ease with which
pearls can be smuggled into the country.
l hold in my hand an invoice for ten
pearls. purchased ny Mr.. Ludwig Nilsson.
Of New York. These ten pearls cost
S7S.57S ~"
Mr.. Reed suggest tnat the Senator
pass them around for examination.
Mr.. Overman-HOw much did they cost?
Mr.. SmoOt-$7S.57S.S2. Mr.. President,
can conceal every one Of these pearls In
the center OF one cigar.
NJ RObinson-HOw did the Senator say
he ,btained these pearls?
Mr.. SmOOt-I am not going to confess
to the Senator from Arkansas, but I will
assure the Senator they are genuine
pearls. purchased OF late, and I will as
sure the Senator that this is the invoice
Of them.
Mr. Gallinger-Probably the Senator
gave bond for their safe return. laugh
terO -
Mr. Smoot-I am compelled to re-
turn them. I will say to the Senator.
Mr. President. the duty of 30 per cent
on those pearls would amount to SIS
7l5.76. II any one desired to smuggIe
similar ones into the country they
could be concealed in one cigar. Take
box of 100 such cigars and use them
for smuggling filled pearls, the loss OF
duty upon such would amount to
S1.57l,576. A rather strange anomaly
about this whole matter is that the
honest dealers in precious stones are
all opposed to the increase. notwith-
standing they would be an immediate
gamer. l knew OF one firm in New
York that has over 100000 worth of
pearls on hand. The increase of duty
from 10 TO 20 per cent will Immediately
give that firm a profit OF 100000. yet
they are opposed to the increase. Why?
Because they know in the future they
will buy their pearls and precious
stones from smugglers instead of for
eign dealers in the regular export
business. The history of the past has
proven that the government of the
United States does not collect a rate
higher than 10 per cent on diamonds.
But Senator Smoot's attempt to low
er the duty from 90 to 10 per cent
foi