The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-06-23

F0RTY-FRST CONGRESS-
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SECOND ssssIss.
SENATE
WARRINGTON. June %, 1870.
sHB INCOME TAX.
Mr. CoNgLINa, rep.l OF N. Y, presented resolu-
tons Of the Union League Club, Of New York city,
income tax, &C., which were read ana laid on the
table.
BILLS REPORTED.
Mr. SUMNER, trep.) Of Mass, from the Committee
on Foreign Relations, reported favoraby on th6olll
10 facilitate teegraphic communication between the
United States and the Bermuda Islands.
He also reported q bill to authorize direct sub
marine cable from the United States 10 Belgium.
Mr.. WILLIAMS, lrep.l OF Oregon. reported. with an
cation OF checks by officers OF national banks.
THB ATLANTIC AND PACIFIC KAILRoAD.
,rS sn sYc Of Ssv called s me OH
Of railroad and telegraph Line rom the States Of
Missouri and Arkansas to the Pacific coast by way Of
Tue bill is known as the Atlantic and Pacific Rail-
road bill, and extends the time Tor the construction
ri Of saat fe may tho
The bi'l was discussed until half.past one O'Clock
and laid aside.
Mr.. SHERMAN. (rep) OF Ohio, called up tue bill TO
reduce internal taxes, and for other purposes.
The amendments OF the Senate Committee on FL
nance were read The proposition Of the committee
to strike out the first sections OF the bill
as It came from the House, imposing special taxes,
= Mr.. SHERMAN explained that tho House had pro.
vtded for keeping up portion OF tie special taxes
while the Senate committee proposed to repeal all
OF them except on spirits, tobacco ana beer.
The next three sections OF the bill inserted by the
committee In lieu OF the part stricken out were
read. They provide Tor the repeal after May l. 1871,
OF all special taxes except the special taxes upon
brewers distilled spirits and tobacc0 also that the
several taxes on sales be repealed, except such as
are now by law paid by stamps; also repeating the
taxes on sales OF leaf and manufactured tobacco,
snuff cigars, foreign and domestic distilled SPIRITS
also repeating the tax articles IN schedule A, and
the special tax boats, barges and nats on lega-
ces and SUGGESTIONS on passports and ON gross re-
ceipts.
CONKLISG, that the amendments just reported ind-
recty involved the re-enactment OF the income tax
Mr.. SUMNER, (rep.) OF Mass, said the income tax
must go in any event. 1t had hved too long for the
good OF the country
not strike OUT the tax In such contingency the
special taxes would have to be restored According
TO an estimate at the Treasury Department the In.
come tax, as regulated by the House, would yield
seventeen millions seven hundred thousand dollars.
Mr.. CONKLING said II WAS the theory Of many we'll
informed persons that all taxes might be dispensed
with except the stamp tax, liquor tax and tobacco
tax and that the odious income tax ought not to be
revived.
The substitutes OF three sections being agreed TO-
the stamp tex, was read
Mr.. COsKLING asked that the next section, which
presented the plain question OF income, be taken up
end disposed OF be ore the stamp taxes were abol.
khed. He criticised the parliamentary skill with
which the chairman OF tue Finance Committee INF.
Sherman) proposed TO have these other taxes re-
peaed IN advance OF the income tax as strengthen
C IN tSe h acmea that The 1overnment on nor
afrOrd TO dispense with II.
Mr.. SIBERIAN said the general custom upon such
bills would enttle him TO ask thai q vote upon the
income tax section might be deferred until the bill
was gone through with; but he was willing 10 meet
the question fairly.
The fourth section was then agreed to repeating
after October l, 1870, the stamp tax imposed in
schedule on pr0mssory notes Tor "A less sum than
$780, on receipts for any sum OF money or In pay
mcnt OF any debt, and also the stamp tax imposed IN
schedule on canned and preserved fish; further.
thlt no stamp shall be required upon the transfer or
assignment Of mortgage except when made upon
. sale thereof, or when transferred as collateral
security; also That commissions snail be allowed IN
purchase Of proprietary stamps II also allows the
removal Of lucifer or friction matches, cigar lights
and wax tapers from the place Of manufacture for
foreign expectation without payment Of tax or the
a,xing OF stamps, subject TO the regulations OF the
Commissioner OF Internal Revenue.
Mr.. SHERMAN offered new section, which, as
amended by Mr.. Sawyer, was adopted, extending
the time within which stamps may be afixed 10
Instruments OF writing requiring stamps and exc
making the penalty double the amount or the tax,
and In no case less than five dollars.
The income tax sections were then taken mp.
Mr.. SHERMAN delivered argument In favor OF
the retention OF the tax, claiming that Its repeal
would necessltat0 the restoration OF other taxes now
proposed to be repealed that the repeal OF the tax
personal incomes would carry with IL the taxes
on salaries and corporations and that upon incomes
derived from bonds. IL would be unconstitutional
TO levy discriminating income tax. After review
ing inc question at length he remarked that the
weld from this tax last year was twenty-eight mil
Ion three hundred and twenty-five Thousand three
hundred and four dollars, and that under the ex.
ernpton o. one thousand dollars only two hundred
and seventy-one thousand persons In population OF
forty millions had pad any income tax at all.
Mr.. CORBETT, (rep.1 or oregon, opposed the reten-
ton OF the tax. as having expired by Imitation as
unnecessary, demoralizng ald obnoxious TO the
constitutional prohibition relative TO direct taxes
The bill was land over AS the unfinished business
for thursday.
Mr. PoMERoY, rcpl OF Kansas, offered resolrl-
ton requesting the President to transmit any COM
muneaIion and proposals nc may have received for
man service, &c, which was adopted.
AT halfpast four O'Clock the Senate took recess
Evening Session.
The Senate met at half-past seven O'Clock and took
up the Texas Pacific Railroad bill, which had been
signed as the special business OF the evening.
An amendment for land grant to tine Decatur,
Aberdeen and vcksburg Railroad was rejected,
alter discussion, by yeas 20 TO nays Is.
Mr. BUCKINGHAM. (rep.) or Conn.,, moved an
amendment striking out the provision for tho speedy
extnguishnlent by government Of the Indian land
several senators remarking that there were no In.
dian reservations along the proposed hne.
Various amendments were submitted and subse-
Drake, authorizing branch OF the Kansas and Pac-
nc road, sou,hwardy some six hundred miles in
length, from near Fort Ellsworth TO Mexico; and
one BY Mr. Morrill,, Of Vermont, authorizing rail-
roads TO be built anywhere In any State, by any
body, and granting for that purpose all lands not
already taken by railroads. u4aughter.)
Mr.. CAssERLY, (dem OF Cal, SAID the land grant
fever In the Senate amounted to delirum, ana ex-
pressed hope that the awakening would not be fol-
lowed by serious consequences.
On motion OF Mr.. HARLAN, trep.) Of Iowa, the
twenty nth section Of the bill was stricken out
20 10 10.
On motion OF Mr.. HOWARD, (rcp.) OF Mich, the
names OF four additional incorpOrators were In
serted.
Mi. NYE, rep.) Of New, moved to substitute. In
lieu OF the 1ncorp0rators on the bill, the names OF
John g. Fremont and large number OF Others. He
advocated the amendment as recOnclIing certain
differences connected with the work. He spoke at
length Of General Frem0nts services o. an explorer.
Mr. HOWARD thought that as President OF the
Memphis and Ell Paso Railroad General Fremont
had as much to do he could attend TO. lie
opposed any revision Of the incorporators
aud spoke OF the alleged false and extravagant
representations made by the agents Of the
Memphis and FL Paso Railroad TO the French
people to advance the sale OF that COM
10 rfadt hat has toi ahno n