New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-15
Democrats Accept Meas
ure as Amended by the
Finance Committee.
.DYESTUFFS TARIFF
WAITS FOR PEACE
The Levy on component
Parts" of Munitions Re-
mains Unchanged.
From The Tribune Bureau

ministration revenue bill, as the SEN
ate Finance Committee amended 1t, late
tonight. The measure, which, 1t IS
estimated, will yield $205,00O,0OO an
nually, will be reported in the Senate
By Wednesday. 1t provides $7,5OO,OOO
more revenue than the measure passed
by the House.
Several party leaders waged losing
fight against the dyestufs tariff. In
approving the proposal, the caucus in
cluded an amendment under which the
duties will not become effective until
the close of the European war, or until
conditions of importation have been
substantially restored. 1t also is pro-
, vided that all existing duties on dye
stufs shall be suspended during the
period Of the war.
Features of the Bill.
As il will be reported the measure
differs in several important respects
from the House bill. It's princiapl pro-
visions include a surtax on incomes, an
inheritance tax, 10 per cent net proht
tax on the manufacture of war NUM-
tons, a per cent tax on materials en-
tering into munitions, license tax OF
fifty cents thousand on the capita
stock of corporations, liquor taxes and
miscellaneous stamp taxes.
The bill provides for the creation OF
non-partisan Tariff Commission.
Early tonight the caucus approved
committee amendment increasing the
salaries of the proposed commissioners
from $500 to $4,000, but just before
adjournment that action was reconsld-
cred and the $500 salary restored.
The fight to repeal the tax on com
ponent parts" If munitions, which in
clude copper, lead, zinc and every
other commodity utilized in munitions.
has not been abandoned by the West
ern or some OF the Southern Senators.
Although defeated by a vote of 20 to
Is in the caucus yesterday, opponents
of this tax were confident to-day that
they had won over enough Senator'S
to reverse this verdict.
Cooper Senator's" Divided.
Incidentally, the copper Senators"
have revolt on their hands. Senator'S
Walsh, of Montana; Shaifroth and
Thomas, of Colorado, and Mark Smith,
of Arizona, representing big copper
producing states, voted with the Sim.
mons or committee organization, and
against wipng out entirely the tax on
component parts" There is much in
dignation among the other copper Sem
ators" at this lack of support, espe-
cially as if three Of the four had voted
the other way the tax would have been
eliminated.
The Southern Senator'S are angry at
Senator Simmons, of North Carolina,
chairman of the Finance Committee,
because he did not vote to cut out this
tax. Led by Senator Underwood. who
is equally concerned about the iron
and steel schedules, as his home IS IN
the Birmingham coal and iron district.
they fought TO kill the component
parts" amendment because they
thought it would levy tax on cotton
used in munitions manufacture.
Beaten on the attempt to eliminate
the whole section, motion was MADE
by Senator Ellison Smith, of South
Carolina, TO exempt agricultural prod
ucts from the tax levy. Despite the
warm support of most of the Southern
ers, this was voted down.
Gives Foreigners Advantage.
curious feature of the component
parts" tax is that it gives foreign NUM-
lions manufacturers a big advantage
over the American manufacturers.
Copper, for instance, that is sold to the
manufacturer of arms or munitions al
Bridgeport, Conn, will be taxed under
tho present language at the rate OF .
per cent on the profits of its sale 70
the munitions manufacturers. Then,
under the straight munitions tax pro-
vision, the same copper would be taxed
again at the rate of 10 per cent OF the
profits on the manufacture of NUM-
IL Oh adn -
copper were shipped TO Liverpool and
was there manufactured into shells or
other munitions it would escape any
taxation whatever on this side of the
water.
As one Republican Senator expressed
it, this is putting the reverse English"
on the protective tariff. A leading Re-
publican member of the Senate Finance
Committee, which will consider the bill
after the caucus finishes it. declared to-
day that there was no doubt in his mind
that this provision would be beaten in
the Senate or most certainly in confer
ence between the two houses.
The key 10 the whole situation has
been held so far by the four Western
Senator'S who voted against eliminat-
ing the tax on component parts. Their
votes were won to the organization
when Senator Simmons compromised by
reducing the tax on component parts
profits. AS drafted by the Finance
Committee, this tax was 10 per cent,
the same as the tax on the profits from
the manufacture of munitions. Mr..
Simmons reduced it TO per cent and
brought in enough copper Senators to
defeat the combination Of radical cop
per and cotton men.
Tax All Along the Line.
Copper Senators contended to-day
that the tax on component parts as at
present worded would impose sepa-
rate tax of per cent on the profits OF
every individual or corporation who
handled copper or any other component
part Of munitions all the way from the
mine or cotton farm TO the final mu-
ntions factory. The miner, the man
who bought his ore, the smelter, the re-
finer, the jobber and the dealer who
finally sold the ore would all be sub
jected to a tax on their profits, Sen
ator Pittman, of Nevada, declared.
Committee Senator'S declared that
this was untrue. that the only person
or corporation which would be taxed
was the one which sold the copper or
other products TO the munitions manu-
facturers and that the amount OF cop !
per or other products to be taxed would
be determined from the books OF the
purchasing agents Of the munitions