New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-28
Serene Payne in Debate
Says 1t Won't Yield
$l0O,OOO,OOO,
"EXCEEDS OUR HOPES"
UNDERWOOD REJOINS
Majority Leader Declares Total
Treasury Receipts viii Be
S7SS,OO0.OO0.
IErem - rrLhane Rareaar

y
the tariff debate was heard in the
House to-day. when Oscar Underwood.
the majority leader, and Serene Payne,
veteran Republican, engaged in furi-
Gus verbal duel over the failures and
success Of the new taria law and the
income tsN.
The House 6nally accepted a Senate
amendment Increasing from Sl,000,000
10 81 100000 the appropriation for the
internal revenue Office for collection Of
the income tax. The additional
amount is desired to detect and punish
the "tax dodgers" which Mr.. Payne
construed TO mean an admission that
the tax as a revenue producer is a
failure.
AR. Moudell. Of Wyoming, referred
incidentally to the Clafin failure,
propheSying that 1t is but the fore
runner OF other dismal business fall
ures under this administration
Urging the additional appropriation
FOR the Commissioner of Internal
Revenue. Mr Underwood said that at
will be used almost entirely 20 en-
force the collection Of the income tax
against persons and corporations that
now are trying to evsde the law.
"The Commissioner OF Internal Reve
nue." said Mr. Underwood. "has stated
20 me that he believes this additional
appropriation will enable him to collect
from Sl5 TO S25 for every dollar eN-
pended; that the indications are that
q great many persons have not made
their returns and some who have made
returns have not made them as the
law requires some through ignorance,
81 1rgFa gh
others through elaboration.
Although the return this year I'M
der the income tax will not reach the
maximum, and will fall somewhat less
than slO0,0OO,000. / believe the ordi-
nsry return from the income and cor
roration tax in another year viii ex-
coed S100, 100000
Refuting constant criticism Of the
tariff law and income tax. Mr.. Under
wood declared that "as a matter OF
fact. the law has exceeded the eXpects-
tions OF those who wrote it."
Mr.. Underwood read from a state
ment he said had been prepared by
Treasury Department experts. He
scofed al the suggestion of Treasury
Ociicit.
S35,OOO.OOO for the Canal.
u 10 NnCLull OF EON LDeIe VIII Dc
q deficit in the Treasury" he said, "the
total receipts will amount TO SI33, 000.-
geo and the total ordinary disburse-
wcuts for this year viii amount to
sos. 600. 600. leaving q balance in favor
OF the Treasury of S30,0O0,000, with
only s. half year on which to operate
the income tax. But gentlemen will
say that does not include the expendi-
turs for the Panama Canal. 1t does
not Tnc Treasury advises me that
they viii expend on the canal this
wear $4,000, 900. With S30,000,000 Of
surplus over ordinary receipts and dis
bursemcntS and S35000,000 to be OK
pended on the Panama Canal. il leaves
S5.O00O0J that has got to be raised for
Panama Canal expenditures. l want TO
say that Sj.000,O00 and vastly more is
i0 the Treasury to-day in the way of
surplus. and the government OF the
United States does not have to borrow
from anybody 20 pay it.
"But there is nothing in having a
deficit in the Treasury continued Mr..
Underwood. 81 call attention TO the
fact that at the end Of the fiscal year
OF 1909, under the Payne bill, there
v as a total deficit Of S1l8,000,0 00."
Mr.. Payne shouted across the aisle
3
operation until the end of the fiscal
year 1909.
II will correct my statement" said
Mr.. Underwood "The deficit Of Sll8,-
100000 was under the Dingley law"
Referring to Democratic claims for
the income tax, Mr.. Payne said:
What mortal man knew the returns
from this law? You had figures that
were derived from statements on the
Chautauqua platform and from muck
-aking magazines, claiming that
hundred of the people had incomes Of
S10,000000 and some of Sl0O,OOO,OOO.
Nobody knew anything about it.
"Now they want more money for a
little inauisition to inquire about the
incomes Of people Of the United States.
Why? Because the income tax does
not come up to the expectation Of these
gentlemen. founded on the merest
rumor and on the remarks that were
made in the Chstauqua lecture course
and undertaking magazines"
Underwood in RebuttaI.
Mr. Payne continued with a state
ment that there was a very general
falling of on all receipts under the
expectations for the new bill This
brought Mr.. Underwood to his feet
again.
"The gentleman should be fair" he
said. "When he contends that this
law is not raising revenue and when it
is stated here or the authority Of the
Treasury Departmental it is with
iu few days of the end Of the fiscal
year-that it will raise $3.50, 100000 as
against S724,000.000 raised in the
Payne bill, say the gentleman's