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Show I REDUCTION OF DUTIES J Finance Committee " Reports Tariff Bill Back to the Senate Ready for the Many -Debates Proposes i Numerous Charges jj Washington. July 18 An average eduction of 27.64 per cent under the I rates of the existing Payne-Aldrich L ion to . .i v.. . r mini jo" in in.iiuscu uv i up ueraO' cratic Underwood-Simmons tariff bill, fc upon which the senate began general w debate today, according to the report I of the finance committee majority . ji submitted by the chairman, Senator 1 1 F. M Simmons. The report also shows that the bill d pas reported to the senate provides rates 4.22 per cent lower than the Un derwood bill as It passed the houso i-k with the revenue from It, together other government receipts for thn 11 fl6ca! year ending June 30, 1914, there "f will be on estimated surplus In the government treasury of ?2, 020.000 A salient feature of this bill, it is tev pointed out. is the large increase of UK Imports to be admitted free of duty Under the house bill, the value of irn free listed imports, on the basis of f 1912 importations, was $103, 000.000. I whereas the Democrats of the senate r. In caucus by sweeping changes, pro- pose to fre-list imports valued a Wl $147,367,000, an increase In unduiti-I unduiti-I able imports over the house bill of $43,367,000 Upon the basi6 of ten months for f the coming fiscal year, the commit tee eipects that receipts from customs cus-toms alon under the new bill will be $266,730,000. from income tax for ten I months, $58,330,000; corporation tav, I $37,000,000; internal revenue, Includ-i Includ-i log tax on cotton futures, of 15,000,- 000; $207,000,000. and that the reenue ifrom all other sources will bring tho total for the fiscal eur to $C96.810, 000. With disbursements, estimate! i for the committee by treasury exports ' at $994,790,000, a balance Is "shown in ! favor of the government of $2,020,000. Amendments Too Drastic. ' In analyzing Its changes in the house administrative features of the I bill, the committee "deemed the , amendments of the house entirely too ' drastic ' particularly those authoriz I Ing examination of books of foreign manufactures, a 5 per cent tariff dis-KS dis-KS Count on imports in American ships it and other like features which were m stricken out. Particular attention is called to the senate provision 'do-fc. 'do-fc. signed to furnish the president with power to impose tariff duties of a K retaliatory character upon all articles ! comprised in a specified list." which jl Includes many agricultural products ' ', "For some years." says the report ' In referring to this retaliatory provi j sion, "there has been a development n of maximum and minimum tariffs abroad, and in not a few Instances the government of the United States I has been compelled to see its citizens subjected to harsh and discriminat igl ing tariff treatment abroad without 3 being able under the law to afford 1 relief i n "The provision now recommended, jril it is believed, will place in the hands S of the president, which, though w tensive in their sphere, are sufficient? 4 ly circumscribed to permit of their I being executed within the limits as-I as-I signed them without disturbing iho I general fiscal system of the United I States Wise use of the retallator-. J power, it 16 reasonably to be expect-C expect-C ed, will bring about equitable arranfr f J I ments with those countries which do not now afford us fair treatment and $d It is probable that the weapon thus Jm provided will be so effective and avail-able avail-able a6 to render its actual use en )M tlrely unnecessary under any ordinary Jm conditions." 4g Tax Cotton Sold on Exchanges. M Of another important feature adder! by the senate committee, a tax of aJ one tenth of one cent a pound on JL cotton sold through stock exchanges j for future delivery, 'he report says "The committee believes the subject matter to be an imposition of a prop er tax. not only because of its indl rcct Influence in eliminating a para site which has afflicted the business I of dealing in purchases of cotton for ' future delivery, but because it will result In the collection of a considerable consider-able sum of revenue from a business that is not susceptible of Just taxation taxa-tion in any other way "If the effect of the proposed tax is to eliminate all of the speculative of gambling classes of business and to leave intact that part of the dlil ings resorted to for hedging purposes, the revenue derived from this tat should amount to about $7,000,000 a year and if its imposition does not have the effect of eliminating the gambling or speculative end of tho business, the revenue derived therefrom there-from will be enormously In excess of this amount " The Income Tax. Reduction of the basic exemption from income taxes from $4,000 as H the house bill to $3,000 for unmarried persons and the consequent rearrangement rearrange-ment of this the report comments upon as follows: "Your committee reduces the amount of exemption of net income to $3,000 and allows on account of the marriage an additional exemption of $l,00i) to either the husband or wife, where they are Ihng together, but not to both. In the case of a minor child or children living with and dependent upon the parent, BUCfa parent is allowed an additional exemption ex-emption of 500 for one minor build, and up to $1,000 on account of minor children, except where both parents are taxable, In which case no exemption ex-emption Is allowable on account of the children. By the amendment the lowest possible exemption to any onu person would he $H 000 and the pos sible exemption to an one person would he $5,000. While the amend-meut amend-meut makes no wide difference in the volume of revenue derivable from the tax, it is deemed equitable as including the added obligations on account of marriage and children and nslntnrv ns em nlia si I ncr the fam ily as the unit in our social structure struc-ture ' Of agricultural products, many of which were transferred to the rre list in addition to those put there b) the house, the committee has this to say: "The house bill and amendments made by the committee on finance fully recognized the paramount in terests of our agricultural population by placing agricultural Implements o every kind and description, fence and baling wire, cotton bagging and tied low priced blankets, boots and shoes, cement, nails, lumber, coal. hflrnss. saddles, cotton gins, wagons, carts, bagging for grain, wool and other bags, sewing machines and many other oth-er products of daily utility on the free list. In common with the rest of our people, our agricultural Dopulnt'on will share in the benefit brought about by the reduction of the duties on sugar and its eventual elimination. The substantial reductions made all along the line on cotton and woolen goods, wearing apparel of every description, de-scription, on crockery, household lur-nlshlngS lur-nlshlngS and utensils hardware and similar products of our factories will remove a considerable part of the burden of tariff taxation now borne by the farmer as well as the dweller In the city and the laborer in the factory, fields and mines." Sugar and Wool. The sugar and wool schedules are left unchanged as to free sugar and free raw wool, but reductions by the senate committee In wool tops and yarns are explained, and sweeping reductions re-ductions in the metal schedule are treated in the report with considei able comment. Pig iron, ferro-man ganese and other products were placed on the free list by the committee, and the report says. "The house bill places iron ore upon the freo list, mainly because it was found that the domestic supply of Iron ore was largely controlled by the United States Steel corporation and for the purpose of aiding the Independent Inde-pendent iron and steel manufacturers in their competition with this inon opoly. For similar reasons the committee on finance thought all ferro-ranganese should also he placed upon the tree list. The United States Steel corpora lion largely controls the domestic ore out of which ferro-manganese, which is a necessary material In the manu fauture of steel, is produced This corporation is the only producer of ferro manganese In this country, but produces It only for Its own use and consumption It was thought under these conditions just that the more Independent competitors of this mon opoly should be permitted to import this high-priced alloy free of duty, and that with iron ore and ferro-manganese on the free list domestic competition com-petition would be etrengthenod and the price of the finished products of iron and steel eventually would be lowered." Concerning the general revision the senate committee sas that following the lead of the house, it "has sought in the amendments proposed to tho house bill further to carry out and perfect the theory of establishing a revenue producing tariff upon the basis of competitive rates, as a just and fair interpretation in the light of existing conditions of the latest an thorative utterances of the party In power upon that subject, and now sub confident belief that the enactment Into law of the house bill as amended amend-ed will result In general Improvement and benefit In our sjstem of taxation, taxa-tion, that it will tend to disintegrate the monopolies built up under tho present system, that it will enlarge opportunity individual effort, reduce the cost of llvng and relieve the people from the burdens of the protective pro-tective system strikingly exemplified by the so-called Payne-Aldrich bill, which this measure Is intended to supercede " Owing to a death In his family, the second within s few weeks, Senator Simmons did not make his opening speech for the majority as he had planned but will speak tomorrow. Republicans at a conference agreed that whenever a Republican senator desired a recdrd vote on an amendment, amend-ment, the minority should stand by his request. |