Evening journal., 1916-08-19
UNDERWOOD LAW
CREATES Deficit
Democratic Law Fails By Up
wards Of $2OO,OOO,O 900 to
Meet Expenditures
NEW TAXATION
BILL ASSUMED


y Special to THE EVENING JOURNAL.
NEW YORK. Aug. l9.-DemocraticI
testimony that the Underwood tariff
bill fails by upwards OF s2OO.OO0,OO0
to raise It's share OF The revenue
needed to carry on the Government is
furnished by the Senate Finance CONF
mittee which has. after strenuous la
bors. reported q supplemental rev
enue bill imposing special taxes. de-
signed to raise S205.000,000 revenue.
Probably many Democrats would be
reluctant TO ldnit that this means
taking out Of tho pockets Of Ameri-
cans over 20.000.C00 which, under a
different tariff, could Just as we'll be
taken out a the profits OF foreigners;
although there Is much evidence TO
support that contention. clearly es-
tablished instances where the whole
sale price Of the foreign manufac-
mref has been advanced exactly the
amount Of the reduction in the tarih
so that the American consumer gain
cd nothing from the reduction OF the
duty. But no Democrat can deny that
these special taxes are made neoes-
sary by the failure of the Underwood
bill to provide sufficient revenue. The
special taxes arc bound to be Onefous
in many cases For instance. every
theatre or place of amusement. which
seats $50. must pay tax Of $50
which seats 500 tax Of $50; and
40 on up. All bowling alleys and bill
Hard parlors must pay special tax
OF So for each alley and each table
Every mortgage and certificate OF
Indebtedness must pay a stamp tax
Of so cents for every $500 Of amount.
A form OF duty is imposed by special
taxes on an goods entering and COM
Ing out Of custom-houses and bonded
warehouses. steamship and Pullman
tickets bear special taxes. and many
other things. all in addition 20 doub-
ling the income tax, and imposing
heavy taxes on inheritances. The
House tax on war munitions was re-
jectcd When it was found II would hit
cotton and there was substituted an
additional tax on the profits OF cor
porations which. II is expected, will
be collected almost entirely In the
Northern States.
Tariff Still Charms.
Reports from the Nest indicate that
whenever Governor Hughes touches
upon tho tariff and states the Repub-
lican position his remarks are most
enthusiastically received. This con
firms the view OF the Republican
managers that a majority OF JUS
about 100000 Of the voters In thil
country believe IN a protective tariif
In 1912. IL Is recalled, the combined
Republican and Progressive vote eN.
ceeded that received by President
Wilson by upwards Of 100000. In
that election there were some Demo
Gratis who voted the Progressive
ticket. and many Republicans who
being opposed TO Roosevelt, and feel
ing Taft could not win. voted for VII
son But taking il all In all. the cs-
innate of million and 3 half major
ity OF protectionists Is doubtless cor
rect. Assuming this 70 be true. and
knowing the uneQuivocal and UNI
rwervine advocacy Of protection for
American wOrkingmen by the Repub-
lican PARTY the Republican managers
figure that every Democratic or uni
denuhed voter who is won by an OK
nosure 81 Democratic incompetence
Mn wilson's weak, vacillating for.
eign policy his needless invasion 81
Mexico and so on, means an addition
10 those who will naturally vote foi
Hughes on the sQuare-toed issue d
protection Furthermore. they fine
considerable measure OF confirmation
OF their view in the spectacular Of
fcrts OF the Democrats 10 present
small corner on the protection band
wagon. Mr. Wilson's eleventh-hou
conversion TO the creation OF a tarii
board. etc In due time, the Repuh
lican orator will make drive on IN
tariff. accompanying their argument
with analyses of the Underwood tarii
bill and its effects which. they assert
will pretty nearly blow their Demo
cratic adversa<ies out Of the water.
Face Saving Legislation.
II is generally an occasion of sur
prise that the party in power shoul
devote so much time and energy Z
what is merely face saving legisla
ton Such measure is the Philip
pine bill just passed. This measur
had for its real purpose the pledgin
OF the United States 10 retire com
pletely from the Philippines With
FIVE years Even the potent influenc
OF President Wilson was insutticier
10 save this provision. and without
the bill is almost meaningless.
snakes certain changes in the Philir
pine government. but they are unim
portant. The preamble is bad, be