Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-07-31
'PENROSE ASSAHS
REVENUE MEASURE
Prepared Without Skill or Sys-
tenn; Democratic Tariff
a Failure
Special to the Telegraph


long absence. In the last fortnight the
senior senator of Pennsylvania. who
has helped frame Republican revenue
measures in the last fifteen years, has
made an exhaustive study of the Demo
cratic revenue bill still in the finance
committee.
When the measure is reported to the
Senate, after many changes to be made
by the majority, Senator Penrose is
prepared to attack it in many essential
particulars. He was found to-day in
his office and consented to give his
views as to the effect the bill would
nave on the country. He declared the
necessity to raise such enormous reve-
nues was due primarily to the failure
OF the Democratic tariff.
1T is no eXaggeration to say that the
revenue bill which has passed the
House of Representatives and is now
pending in the Senate is one of the
most unskillfully drawn pieces of leg
islaton which has ever appeared in Con-
gress with the backing of a standing
committee of the House or Senate" he
said, in reply to a question as to its
effect on business.
1T may be that bills have been offer
ed by individual responsibility and ini-
tiative which have shown similar lack
of knowledge and proficiency, but in
worse than the present bill, which
comes with the full authority of the
committee on ways and means with
Its Democratic majority. 1t is argued
that the necessity for this legislation
grows out of the extraordinary increase
in the appropriations for the army and
navy and the fortications of the coun-
try. Such contention is only calculated
to deceive the people and has no foun-
n anf TN,1 he larr
islation passed by the present adminis-
tration there has been a constantly
growing deficit in~the public treasury.
The revenue receipts have failed to
balance the expenditures.
Points to Democratic Extravaganza
If there had been no preparedness
program, and If the appropriations for
the army and navy had only been such
as heretofore, there would still be a
deficit and the necessity for additional
taxation. This is due to the eXtraor-
dinary extravaganza of the present
Congress. 1t is estimated that from
$4,000 to 10000 additional places have
been created under this administration
during the last three years at an an
nual expenditure of some $40.000,000
The promises of economy made when
the administration came into office
nave been, like many other campaign
pledges made at the same time, COM
pletely overlooked or violated.
Then Congress has made appro-
priations in an improVident and lavish
way, and apparently without any re-
gard to the financial condition of the
revenues, which alone would be suf-
hcient cause for bankrupt treasury.
The last Congress appropriated $780,
100000 more than any of its predeces-
sors in the face of the Democratic
promises Of economy and before any
preparedness program had been start
ed by the administration. Projects in
NolVlng government ownership and
Verging on socialism have been au-
thorized to the amount of millions of
dollars, and apparently without any
thought that the richest public treas
ury is capable of exhaustion. Many of
these projects we're in no way urgent,
and could, in view of the other ex-
penses connected with preparedness
of an urgent character, have been we'll
postponed until later, day, when the
revenues of the government would
nave been in better shape to meet
them.
Thus 2O,O0O,OOO has been author
lied for nitrate plant; the rivers and
harbors bill exceeded the appropriation
of the last Congress by S22 900, 900,
despite the efforts of the Republicans
TO save the entire amount of SAP, 900, 900
this year; the bill to help
the States build public roads commits
the government to an expenditure of
$S5, 0,000;. a bill providing for flood
control calls for S50.000,O00 more of
public money for a project of doubtful
utility; the rural credits bill appro-
PIRATES S15, 100000 and provides many
fat offices for deserving Democrats
specifically in the bill kept out of the
civil service; all salaries are much
~ h1f
lation under the Republican regime;
the shipping bill will require another
S5O,OOO,000 to build ships to meet an
alleged present emergency; then the
armor plant provision, invading, as it
does, the field of private enterprise,
will eXpend 100000 for which the
government will realize little if any
benefit; public building bill author
ICES some $30,00O,0 900.
S1IO,OOO,0O0 Could Have Been Saved
In addition to these schemes, call
ing for money to be raised by taxing
the American people, are other propo-
sitions carried in the various appro-
priation bills for which an aggregate
of 100000 is appropriated over
and above the amounts carried in last
years bills. This vast sum could have
been pruned down and probably a
large part of it saved with the exercise
OF care and scrutiny.
ITO sum up, these various items.
including only the actual appro-
priations, amount to the enormous sum
of $170,000,000, which might have
been to large extent saved, but to
which should be added obligations Tor
flood control, river and harbor projects
and public buildings, another $780,
900, 5000.
This is all exclusive of prepared.
ness requirements.
Tax on Munitions Called Sectional
The tax on munitions of war looks
all right in theory, but practically, as
provided for in the bill, it is most OBJ
Jectionable. In the first place, it pro-
vides for a tax on gross receipts, which
is evidently Unfair and improper, be-
cause gross receipts are no indication
OF the amount OF profits received by a.
manufacturer. Again, the tax is sec
tional, in that it is imposed on manu-
facturers of shellss and ordnance and
certain materials entering into the
manufacture of munitions, as copper
and gunpowder, and fails entirely to
observe the principle of uniformity
which should prevail in every tax bill,
in that 1t does net impose any tax bur
den upon cotton, produced in the
South, which enters to the amount of
many millions of dollars into the
of gunpowder and mu-
or of zinc, produced in Mis-
souri,, which also enters into the manu-
facture of munitions as much as cop
per does. And so we might go down
the hst long way, showing the sec
tional, ununiform and inconsistent
character of the tax on munitions.
''Pretense is more to extend a pro-
tective duty on dyestuffs. This is a
confession on the part of the Demo-