Newspaper Page Text
.
VOLUME. XII.
ATLANTA, GA., TUESDAY, APRIL 8, 3013.
NO. 57.
ERlf T1RIFF
31
III MKMHir
Omnibus Bill Sending Duty on
Food Stuffs and Necessities
of Life Downward, Sent to
Ways and Means
(By Associated Press.)
WASHINGTON, April 7.—The new
Democratic tariff bill introduced in the
house of representatives at the opening
of .the extraordinary session of the Six
ty-third congress today, provides:
FOOD ON FREE LIST
Removal of all tariff from many ar
ticles of food and clothing; bread re
ductions in the rates of duty on ali
necessaries of life; an increase of tar
iff on many luxuries; and a new income
tax that would touch the pocket of
every American citizen whose net in
come exceeds $4,000, are the striking
come exceeds $4,'000.
Sugar would be free of duty in 1916,
the bill proposing an immediate‘25 per'
cent, reduction and the removal, of the
remaining duty in 1916.
Raw wool would be made free at
once with a corresyondingly heavy re
duction in the tariff on all woolen
goods.
All these other articles are put on
the free list, namely:
Meats, flour, bread, boots and shoes,
lumber, coal, harness, saddlery, iron
ore, milk and cream. potatoes, salt,
swine, corn, cornmeal, cotton bagging,
agricultural implements, leather, wood
pulp, bibles, printing paper not worth
more than 2 1-2 cents per pound, type
writers, sewing machines, typesetting
machines, cash registers, steel rails,
fence wire, cotton ties, nails, hoop and
band iron, fish, sulphur, soda, tanning
materials, ascetic and sulphuric acids,
borax, lumber products including broom
handles, clapboards, hubs for wheels,
posts, laths, pickets, staves, shingles.
While wheat flour is put on the free
list, a duty of ten per cent, is imposed,
against countries ‘which levy a duty
on American flour. This will-exclude
flour from Canada and many other
countries.
These principal items are taken from
the list and taxed:
Rough and uncut diamonds and pre
cious stones, furs, coal tar products, 10
per cent.; volatile oils 20 per cent.;
spices from 1 cent to <2 cents per
pound.
Chairman Underwood, of the, ways
and means committee, in his statement
accompanying the new tariff bill, gave
the following comparative table. to
show reductions in tariff duties, made
upon necessaries. In each item, both
the present tariff and the proposed tar
iff hid been reduced to An ad valorepi
basis:
Present Proposed
Article
law.
law
Cream ortartar ... .
25.45
17.85
Medicinal preparations
59.05
31.11
Catsor oil
33.19
15.00
Wash; blue
23.59
15.00
Saltpeter
9.27
6.87
Common soap
20.00
6.00
Saleratus, or bicarbonate
of soda
21.54
8.50
Sal soda, washing soda
20.95
16.25
Borax, refined
21.22
1.31
Lime .....
9.IT
6.00
China and crockery not
decorate*!
55.00
35.00
Grindstones
. 9.21
8.33
Bicycles
45.00
26.00
Pocket knives
77.68
35.00-!
Razors . ..* 72.36 35.00-56.00
Scissors and shears ..
53.77
30.00
Knives and forks . ..
41.98
27.00
Furniture
35.00
15.00
Cattle
27.07-
10.00
Macaroni, etc
34.25
23.81
Rice, cleaned
54.05
33.33
Eggs
Stocks, etc., of fruit
36.38
14.29
trees
54.44
27.58
Mineral waters
43.66
30.00
Spool thread
22.95
ii.0'0
Cotton cloth
.42.74
26.69
Stockings, hose and half
hose, selveged . ...
75.38
50.00
Men’s and boys’ cotton
35.0ft
work gloves
Knit shirts, drawers,
89.17
etc., and underwear
60.27
25.00
Collars and cuffs ....
49.10
30.00
Blankets
72.69
25.00
Flannel
93.29
30.00
Clothing ready made
79.56
35.00
Women's and children’s
dress goods
99.70
35.00
Sewing silk
25.00
15.00
Wrapping paper
35.00
25.00
Books
25.00
15.00 4
Brooms
40.00
15.00
Matches
Harness and saddlery,
27.59
14.00
other than leather
India rubber inanufac-
35.00
20.00
tures of
35.00
10.00
Lead pencils
39.00
26.00
GERMANY TO STAND M
IF WAR IS Tl
Chancellor Makes a Strong
Speech Before Parliament,
But Qualifies Warning
(By Associated Press.)
BERLIN, April 7.—"If outside forces
should threaten us, Germany must stand
ready with ,her last man!" declared Dr.
Von Bethmann-Hollweg, imperial chan
cellor, in parliament today while submit
ting the government’s bills fur increas
ing the army and for placing new forms
of taxation. His speech was a strong
one, although he qualified his warning
with the admission that "a European
conflagration in all probability will not
occur."
"The good intentions of the French
and Russian governments are beyond
question" declared the cnancellor, "but
we must reckon with the great force of
modern public opinion, which in the
form of French warlike patriotism and
Russian pan glavism, threatens the
world’s peace against the wishes of the
great masses of both peoples.”
It was noteworthy that in the chan
cellor’s speech Great Britain was referr
ed to only as a pacific factor. Dr. Von
Bethmann-Hollweg, although indicating
by his manner that he had little be
lief in the practicability, of the sug
gestion made by the British admiralty
for a year’s naval holiday, said Ger
many was willing to consider concrete
'proposals from the British government.
STRONGER ARMY NEEDED.
The imperial chancellor said the
strength of the army had not kept
pace with the growth of the German
nation and asked "Can Germany allow
itself the luxury of dispensing witn
tens of thousands of trained soldiers?"
He continued:
"Conditions of Europe have been radi
cally changed by the Balkan war, which
has substituted for the passive Euro
pean Turkey other states of feverish po
litical activity. In all this there are
factors of progress indeed, but should a
great European conflagration between
Germanism and Pan-Slavism come, this
change would alter the balance in Ger
many’s disfavor. This does not alter
the fact that I consider this conflict
probably will be avoided."
The chancellor declared he had made
special efforts to cultivate good rela
tions -with Russia and believed the Rus
sian ruler and the Russiai) ministers
reciprocated.
"But the events of the war," he add
ed, "have greatly strengthened the Pan-
Slavic -current in Russia and this is
dangerous for peace.
Germany, the chancellor said, has been
working to militant, the Austro-Russian
situation, "but should war break out, the
German empire would unhesitatingly
fight beside her ally.”
FRANCE WANTS PEACE.
The chancellor then reiterated Prince
Bismarck’s saying, "If the French wait
for us to attack them, they will wait
forever,” and concluded that there was
every reason to believe that the present
French government wished to live in
peace with Germany and that the Frepch
masses wished it, too. "But the war
like party in France is counting on the
superiority of the French army, in the
belief that German cannon and military
instructors have been tried and found
wanting by Turkey, on the Russian al
liance and perhaps on British assistance.
Germany cannot ignore the apsirations
of such French and Pan-Slavic circles.”
The new rates are estimated to re
duce the customs revenue approximate
ly $80,000,000 a year. This is expected
to be made up by the income tax.
Endorsed by President Wilson, the
measure represents the efforts of the
president and the house tariff makers
to carry into effect Democratic pledges
of downward revision and of concessions
to the American consumer.
Protection -tp the farmer would be
cut throughout by more than 50 per cent
in an effort to reduce the cost of food.
Protection to the steel and implement
manufacturers would in turn be cut by
fully as wide a margin.
Heaviest reductions fall upon food
stuffs, agricultural products, woolen and
cotton clothing.
The free wool proposal, backed by
President Wilson and accepted by the
house committee, is expected to provoke
a severe fight within the Democratic
ranks of both houses. Lt had not be
come clear today whether the Demo
cratic opponents of free wool and free
sugar in the house would be able to
force a compromise on one or both these
provisions.
The decision to make a gradual reduc
tion in the sugar tariff was reached by
ithc president and the house committee
after Louisiana cane growers declined
to accept a compromise that would 'nave
established a 1-cent per pound tariff for
three years with free sugar in 1916.
The income tax which will transfer
indirect taxes levied 'through the tariff
into a direct tax upon the incomes of
individual citizens and corporations, ex
empts all sums below $4,000. Incomes
in excess of this amount will pay 1 per
cent <tax up to $20,000, 2 per cent from
$20,000 to $50,000, 3 per cent from $50,-
000 to $100,000, and 4 per cent above
that figure.
The present corporation tax, levying
1 per cent on corporation incomes above
$5,000, would be retained as part of the
income tax.
To encourage trade with foreign coun-
HOUSE AGAIN ELECTS
CLARKJ^rrS SPEAKER
Jas. R, Mann Was Nominated
by Republicans and Mur
dock by Progressives
(By Associated Press.)
WASHINGTON, April 7.—The houae
of representatives of the sixty-third con
gress this afternoon re-elected Speaker
Clark. He received 271 votes; James R.
Mann, of Illinois, Republican, received
111 votes and Victor, Murdock, of Kan
sas, Progressive, received 18 votes.
.Four progressive Republicans voted
for Cooper, of Wisconsin. Mr; Cooper
voted for Representaive Nelson, of
Minnesota. *
BABY KILLED; 3 HURT;
. BUGGY OVERTURNED
BOWMAN, Ga., April 7..-The infant
child of Mrs. Onnie Dickerson was killed
and Mrs. Dickerson, another of her chil
dren and James Denny were badly in
jured at 7:30 o’clock last night, when a
buggy "in which they were riding over
turned on Main street.
Mrs. Dickerson has several broken
ribs, and Mr. Denny, her brother, has a
broken leg. The child who was not
killed is badly bruised, and may be in
jured internally.
The horse which Denny was driving
became frightened at a bicycle and
dashed up the street. Finally the buggy
struck an obstruction and overturned,
throwing all the occupants heavily to
the street.
HARDWICK AND SPRECKLES
URGE SUGAR PROGRAM
BY RALPH SMITH.
WASHINGTON, D. C.. April ^Con
gressman Hardwick was at the White
House this morning, with Claus Spreck-
els and Frank Lowry, of New York, who
conferred with President Wilson about
the sugar schedule. Spreckels, who 1b
the second largest sugar refiner in the
United States, was outspoken In his ad
vocacy of free sugar.
tries, the bill would reverse the maxi
mum and minimum provision of the
present tariff law. The new tariff rates
would be the maximum tariff and the
president would be given authority to
negotiate reciprocity treaties and make
concessions to countries that grant fa
vors to American exports.
In a statement accompanying the bill,
Chairman Underwood said the measure
would, in the opinion of its makers, re
vise the tariff “to a basis of legitimate
competition, such as will afford a whole
some Influence on our commerce, bring
relief to the people in ithe matter of the
high cost of living and at the same time
work no detriment to properly conduct
ed manufacturing industries."
“In its tariff revision work the com
mittee has kept in mind,” he said, "the
distinction between the necessities and
the luxuries of life, reducing the tariff
burdens on the necessities to the lowest
points commensurate with revenue re
quirements and making the luxuries of
life bear their ' proper portion of the
tariff responsibilities. Many Items of
ma.-ufaoture controlled by monopolies
have been placed on «ther free list."
RECIPROCITY PROVIDED
IN NEW TARIFF BILL
g£NDING FOR
IT -
Clause Empowers President to
Grant Favors to Any Nation |
sions to the United States
That Gives Mutual Conces-
(By Associated Press.)
WASHINGTON, April 7.-An attempt
to widen the foreign market for Ameri
can goods and to encourage reciprocity
to all foreign nations is embodied in the
new tariff bill introduced today, in a
clause empowering the president to grant
favors to any nation that gives mutual
concessions to the United States.
The reciprocity clause takes the place
of the penalty clause of the present
tariff law, by which it was sought to
Secure special concessions to the United
States. The new tariff bill proposes that
the normal tariff rates shall be the max
imum, and that special rates shall be
granted to countries that will enter into
reciprocity treaties with the United
States. In the present law the normal
rates are the minimum.
The clause designed to open wider the
markets for American exports through
out the world is as follows:
"That for the purpose of readjusting
the present duties on imports into the
United States and at the same time to
encourage the export trade of this coun
try, the president of the United States
is authorized and empowered to nego
tiate trade agreements with foreign na
tions wherein mutual concessions are
made looking toward freer trade rela
tions and further reciprocal expansion of
trade and commerce."
Such reciprocity agreements, under the
new-law, would have to be approved by
congress before becoming effective. In
a statement accompanying the bill,
Chairman Underwood declared that
under the Payne law the United States
had attempted to "expand * our com
merce by force.’’
"We went to the nations of the world
with the demand that they stand and de
liver, or we would punish them," he
said. "Many years ago this system cf
expahding trade and commerce was at
tempted by the enlightened nations. The
only true course that can be pursued to
expand our foreign trade along rational
lines is through mutual concessions that
may prove beneficial Ao both of, the con
tracting parties free from coercion.”
Another concession that would be
made by the new bill is designed to en
courage American shipping. A conces
sion of 5 per cent would be made in all
tariff rates on goods brought to this
country in American-built ships, owned
wholly by American citizens.
Restriction upon Philippine imports
practically are removed by the new bill,
and important changes in the method
of enforcing customs law are provided,
following out the recommendations made
after recent investigations of the custom
service.
PROGRESSIVES NAME
MURDOCK FOR SPEAKER
Dissensions, However, Are Re
ported in Ranks of the
Third Party
■nr ao,tv Associated Press.)
/WASHINGTON, April 7.—Progres
sives fci the house, when that branen
of^ congress met today, declared their
solidarity as a third party by putting
in nomination for the speakership Rep-
representative Murdock of Kansas.
Some of the old wheelhorses of the
^Progressive organization had announced
that they would not support Murdock
or the Progressives’ plan of campaign.
Chief among them was Representative
^Lenroot, of Wisconsin, who had put on
record his belief that he could do more
effective work along progressive lines
by supporting President Wilson’s poli
cies. One or two others similarly had
withdrawn.
DENY OBSTRUCTION.
The nominating speech by Represent
ative Walter M. Chandler of New York
was understbod to be an outline of
the new organization’s intentions and
aipbrtions. Part of his declaration fol
lows:
"I wish to announce that we Progres
sives are not organized in this, house
for mere purposes of antagonism and
obstruction. We have a definite pro
gram of our own and we shall use
every means to accomplish its pur
poses. We shall at times be compelled
to assume an attitude of opposition
and resistance, for we will oppose with
faces of flint and hearts of steel ev
ery non-progressive, reactionary bill in
troduced."
In an early conference the Progres
sives adopted a report from the com
mittee on committees nominating -Rep
resentative Murdock for the place on
ways and means committee to be assign
ed to the Progressives, and Rpresent-
ative Chandler of New York for the
Progressive place on rules.
' U| "
LEVY 01 PER CENT
IMIS W
Income Tax Will Also Carry
Surtax of One Per Cent
on Earnings in Excess of
$20,000 j
OING AFTER IT YOURSELF
TWO WAYS OF GETl INC WHAT YOU WANT
t ,
HOKE SMITH INTRODUCES
MANY NEW SENATE BILLS
RPESIDENT WILSON TO DELIVER HIS
MESSAGE TO CONGRESS IN PERSON
Georgia Senator Hopes to Put
Through Legislation Which
Aid Farmers
last
the
and
Tho
BY RALPH SMITH.
WASHINGTON, D. C„ April 7.—Sen
ator Hoke Smith introduced in the sen
ate today several important bills, all
of whicji he hopes to have passed dur
ing the life, of the Sixty-third congress.
The senator’s first measure relates
to the market division in th e depart
ment of agriculture, which he suc
ceeded in having created at the
session of congress.
This measure definitely defines
permanent work of the division,
broadens the scope of its work,
market division is a matter in which
the farmers are vitally interested.
The agricultural extension bill was
reintroduced. This measure, as drafted
by Senator Smith, passed the house at
the^last session, but failed finally be
cause of the inability of the senate
and house conferees' to agree on amend
ments adopted by the senate. Senator
Smith is confident that he will succeed
in getting this legislation, as both the
house and senate are now democratic.
The bill amending the national bank
ing laws so'as to authorize national
banks to lend money on real estate was
re-introduced.
New legislation of interest to the
farmers is embraced in a bill of Sen
ator Smith's making an appropriation
of one million dollars, to be appor
tioned among the states on the basis
of population, to establish special
courses in normal schools, universities,
etc., for the instruction of teachers
along vocational lines.
Senator Smith offered a joint resolu
tion authorizing the president to ap
point a joint congressional commission
of nine members to investigate and
report next December a bill to provide
national aid for vocational education
in the several states.
The senator introduced also a bill to
protect many trials in federal courts.
It provides that federal judges shall
submit cases .without expressing an
opinion as to the facts.
DR. LEN G. BROUGHTON SCORES
SUFFRAGETTES FROM PULPIT
Former Atlanta Pastor De
nounces Some Militant Suf
fragettes as Anarchists Who
Ought to Be in Prison
(By Associated Press.)
LONDON, April 7.—Disaster probably
would have overtaken the suffragettes
at their weekly meeting in the music
hall at Paccadilly Circus this after
noon but for the protective action of the
police. Hostile crowds had gathered
with the intention of invading the meet
ing when a big force or police officers
marched on to the scene, broke up the
mob and established a rigid cordon.
Miss Kennedy, presiding at the meet
ing, said Mrs. Emmeline Pankhurst
would be among them "in a few days,
if not within a few hours."
Militancy is beginning to receive at
tention from the pulpits of the Brit
ish Isles. Dr. Len G. Broughton, pastor
of Christ church, Westminster Bridge
Road, formerly of Atlanta, Ga., un
sparingly castigated the women yes
terday for their actions. He said.
"A small bunch of rampant anarch
ists, who ought to be in prison or in
the lunatic asylum, are bringing dis
grace on their sex and nindering their
noble cause—a cause which soon would
be victorious were it not for the meth
ods of anarchy used by these women
with the idea of forcing it."
Pesident is Almost
Arrested for Breach
In Rules of Traffic
BY RALPH SMITH
WASHINGTON, April 7.—They have
new traffic rules for pedestrians, as well
as atuoists in Washington. They are
nearly as hard to master as the tariff,
and no less a personage than President
Wilson, ran afoul *of them yesterday.
Secretary Tumulty was with him at the
time. They were not arrested, they were
only nearl yarrested.
The president took a notion to relax
during, the afternoon, so he quit the
White Hpuse and went to the home of
Tumulty, where he found diversion by
talking with his secretary and watch
ing the antics of the little Tumultys.
After a while, he and his secretary
went walking and became wrapped up
In a discussion of the snarl over the
sugar schedule of the tariff. They
were oblivious of their surroundings
and of the traffic rules.
Nof one of the most vexing rules
is that a pedestrial must not cross a
street diagonally, or cut catty-corners.
Wilson and Tumulty cut across one
street diagonally in the middle of the
block. An officer who apparently did
not recognize either the president or
the secretary, approached them and was
about to do or say something when
Tumulty gave him the "high sign" and
he withdrew.
President Will Break Prece
dent Established by Thom
as Jefferson and Act as
Washington and Adams Did
(Bv -associated Press.)
WASHINGTON, April 7.-—President
Wilson’s determination to read his own
message to congress tomorrow has com
pletely displaced the tariff and the in
come tax as subjects of chief popular
interest. No president since John
Adams lias availed himself of the right.
Congress was amazed when it heard of
the president’s plan. Some of the old
line leaders refuse to believe it until
Secretary. Tumulty personally confirmed
the news.
Arrangements for the extraordinary
event got underway today. It was
planned that the president first should
go to his room on the senate side of
the capitol and later go to the hall of
the house of representatives where both
branches of congress will be assembled.
Legislative preliminaries to get. the
house and senate together were being
laid out today. Under ordinary circum
stances the two bodies met in joint ses
sion only once every four years and
then for the perfunctory ceremony of
canvassing the electoral vote.
WILL READ ALL MESSAGES.
President Wilson intends to slip quiet
ly away from the White House with the
message in his pocket and attended by
probably one secret service man, ride to
his office almost immediately.! Some of
the persident’s friends say he may be
expected to deliver all his principal mes
sages to congress in the same way as his
term goes on, though he would not do
so with every communication he sends.
The president regards that method is
one dignified way to keep in touch with
congress. He already has let it be
known that he intends to make frequent
use of the president’s room during ses
sions of congres to keep in close touch
with the legislative situation. Most other
presidents fiave used the room for an
hour or two during the 'dosing hours of
each session of congress.
President Wilson made his plans
known to Majority Leader Underwood,
of the house: Representative A. Mitch-'
ell Palmer, of Pennsylvania: and the
other house Democratic leaders that
they might prepare for the event.
The president believes that he can
get in closer touch with the members
of both houses of congress by person
ally expressing his views to them. In
addition to his official visits to the
house, which will become a matter of
White House policy, the president will
take advantage of these visits to hold
conferences with the party leaders in
congress.
TO ACT AS COUNSELLOR.
The president has been told by his
friends that such a procedure is fraught
with embarrasments unless he tactfully
keeps to his purpose merely of giving
advice as the leader of his party and
offerings suggestions, to those with
whom he confers. Those who have dis
cussed this with him say he is con
vinced that congress will not misunder
stand his intentions, that he will go to
the capitol in a spirit of friendly co
operation, so that there may be at all
times a unanimity of purpose between
the executive and the legislative depart
ment of the government.
The president, it was learned today,
WILSON AND LEADERS
CONFERRING ON TARIFF
Effort Made to Adjust Differ
ences on Tariff Between
House and Senate
(By Associated PreBi.)
WASHINGTON, April 7.—President
Wilson early today met Senators Sim
mons, Shirley, Hughes, James, Stone,
Williams and Gore, all Democratic mem
bers of the senate finance committee,- in
an effort to reach a final agreement up
on disputed points about the new tariff
revision bill.
While the president had agreed that
Chairman Underwood, of the ways and
means committee, should introduce the
bill 'today, he was anxious to reach a
general understanding with the senate
leaders, if possible, upon support for
free wool and reduced sugar tariff pro
visions.
The method of revision, whether in a
sigle bill or in a series of schedule bills,
was also in doubt when the White
House conference was begun. The house
committee had prepared the bill as a
single measure, bust the president had
agreed to thresh out with the senate
leaders the merits of the two plans and
to base his final opinion upon the cir
cumstances prevailing in the senate.
Senator Simmons and his Democratic
associates had made a canvass of the
senate since Saturday to determine to
what extent senators from sugar and
wool producing states .might combine to
defeat the free wool provision and the
sugar schedule.
The final break between tht "sugar
senators" and the president Saturday
had resulted in the incorporation of a
rate of practically one cent per pound
in the new tariff bill, with a provision
for free sugar in three’years.
Representative A. Mitchell Palmer, of
Pennsylvania, a member of the house
ways and means committee, joined the
senators at the White House for the
conference.
dignified way for the president to ad
dress the houses at the opening of the
session, instead of sending the address
up by messenger and letting the clerk
read it perfunctionary, in his familiar
tone of voice. It is a precedent wHich,
it is true, has been discontinued a long
time, but which is a very respectable
precedent."
JOINT SESSION.
The president explained that he in
tended to make his visit as simple aa
possible. He said that he had asked
Senator Kern and Leader Underwood, of
the house, if it would be agreeable for
him to come and they both had said
that it would, and that in this .they rep
resented the feeling of their colleagues.
A concurrent resolution was intro
duced in the house today by Mr. Under
wood and later called up in the senate
to provide for the joint session i nthe
house chamber tomorrow.
The president will arrive at the capi
tol at 1 o’clock tomorrow afternoon. He
will be escorted to Speaker Clark’s of
fice and there will be receievd by the
has read with considerable surprise re-! vice president, speaker and other offi-
ports that he had actually written parts
of the tariff bill, or that he had forced
agreements with committees of con
gress. He declared he simply had been
asked to make suggestions, and had
carefully done so; that the bill is the
work of congress, and that his part in
it has been that of counsellor and ad
viser. It Is known, too, that the presi
dent is anxious to give equal considera
tion to the leaders in both houses of
congress in seeing that party pledges
are carried out.
President Wilson was asked today
what motive Impelled him to renew the
custom of a century ago.
'"The reasons are very simple," he
said. "I think that that Is the only
cers of both houses. An escort of two
members will be appointed from the
senate and house to escort the president
to the speaker’s rostrum in the house.
‘Speaker Clark probably will introduce
the president to the joint session. Vice
President Marshall will sit on the ros
trum.
The president was asked if he would
take his cabinet with him tomorrow as
President John Adams did. Mr. Wilson
laughingly remarked that there were
then only three cabinet members and
that he would not renew that precedent.
He said he could not decide what mes
sages hereafter he would read to con
gress. He would be guided, he said, by
tliftlr importance.
(By Associated Press.) ^
WASHINGTON, April 7.—Included in
the Democratic tariff revision bill in
troduced in congress today is an income
tax section which would require every
resident of the United States who earns
more than $4,000 a year to pay a tax of
1 per cent on his earnings in excess of
the exemption.
This would not require the man who
earns $4,000 to pay a tax. but it would
demand that the individual who earned
$4,100, for example, pay into the gov
ernment treasury an annual tax of 1
per cent on $100 or $1.
The bill also would provide higher
rates of taxation for persons with larger
incomes, adding a sur-tax of 1 per cent
addition on earnings in exoess of $20,-
000; 2 per cent additional on earnings in
excess of $60,000, and 3 per cent addi
tional on earnings in excess of $100,000.'
Under the sur-tax prpvisions the man
who earns only $20,000 would pay to
the government each year at the rate of
1 per cent on $16,000 ($4,000 exempt) or
$160. If he earns $30,000 he would pay
l per cent on $16,000 still, and 2 per cent
on $10,000, thus making his annual tax
$360. The person with a $50,000 income
would pay 1 per cent on $16,000 and 2
per cent on $30,000—a total tax of $760.
The man with an income of $100,000
would be required to pay 1 per cent on
$16,000, 2 per cent on $30,000 and 3 per
cent on $50,000, which would be $1,500,
bringing his total income tax to $2,260.
The individual with a net income of &
million would pay $2,260 on his first
$100,000 and in addition he would pay
4 per cent on $900,000, which would
bring his total tax to $38,260.
The bill also would re-enact the pres
ent corporation tax law Imposing a 1
per cent tax on the earnings of corpora
tions, stock companies, insurance com
panies and the like, but it would exempt
partnerships. This is a flat tax, ther#
being no graduated scale as the earn
ings increase. The few changes from
the present corporation tax act concern
chiefly the time of making returns and
the time for collection. The bill also
includes under its provisions the prop
erty and earnings in this country of per
sons who live abroad.
$100,000,000 REVENUE.
It is estimated by members of the
ways and means committee that approxi
mately $100,000,000 in revenue may be
derived from this new tax, including the)'
corporation tax, that amount making up
for the deficit in revenues to be derived
from imports by virtue of the greatly
reduced tariff ra.tes and the transfer to
the free list of articles that are classed
as necessities of living.
Incomes of taxable persons shall In
clude gains, profits and incomes derived
from salaries, wages or compensation
for personal services of w-hatever kind, 1
and in whatever form paid, or from pro
fessions, vocations, businesses, trade^
commerce, or sales or dealings in prop?*
erty, also from -interest, rent, dividends,
securities, including income from prop
erty, income from but not the value of
property acquired by bequest, devise or
descent and also proceeds of life insur
ance policies paid upon death of persons
insured. *
The bill allows as deductions in com
puting net income all necessary ex
penses actually incurred in carrying on
any business, not including personal liv
ing or family expenses, interest secured
and payable within the year by a taxable
person on indebtedness; all national,'
state, county, school and municipal
taxes, not including local benefit taxes;
losses incurred in trades or from fires,
storms or shipwreck not compensated by-
insurance or otherwise; debts, actually
ascertained as worthless and charged off;
also reasonable allowance for wear and
teW on property, but no deduction will
be allowed ft)r expenses of restoration
or improvements made to increase prop
erty value.
It excepts also, in computing income,
amounts received as dividends upon tha
stock of any corporation, joint stock
company, association or insurance com
pany which is taxable upon its net in
come under the corporation tax provision
of the bill.
The bill excludes the compensation of
the president of the United States dur
ing his term, judges of the supreme and
inferior courts of the United States and
compensation of all officers and em
ployes of a state or any political sub
division thereof.
It establishes a system of collection
of the tax at its source, requiring all
person^ firms, co-partnerships, compa
nies, corporations, joint stock companies,
associations or insurance companies, and
all trustees, executors, administrators,
receivers, etc., and officers and em
ployes of th-3 United States having the
control or disposal of salaries, wages, in
terest and ocher profits and income of
another person to withhold and pay to
the collector of Internal revenue the
amount of income tax due from such
person. All such persons or firms are
made personally liable for such tax.
Persons or corporations liable to make
returns on incomes who fail to do so
at a specified time, are made liable to a
fine not exceeding $50 and the penalty
for false or fraudulent returns is fixed
at $1,000 or imprisonment not exceeding
one year, or both.
•"In formulating this additional im
post," said Chairman Underwood 4n his
report, "the attempt has been made to
provide not only a source of revenue,
but also a means of redressing-in some
measure the unequal tax burdens which
result from the practice of placing the
federal income entirely upon customs
and internal revenue duties. This is a
system of taxation which inevitably
throws the burden of supporting the
government upon the * shoulders of the
consumers. It correspondingly exempts
the anen of larger income, whose con
sumption of the ordinary necessaries of
life is subject to tariff taxation in a far
less aggregate degree than is that of
smaller income earners who expend the
greater proportion of their resources for
the ordinary necessities of life."
Roddenbery Returns
fSpcclal Dispatch to The Journal.)
THOMASVILLE, Ga., April 7—After
enjoying two weeks of rest and recuper
ation in south Georgia, Congressman 3.
A. Roddenbery left Sunday morning for
Washington to attend the meeting of
the extra session of congress.
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