Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1894-06-28
BOND EXEMPTION.
The Income Tax Will Not Touch
Government Bonds.
HILLS AMENDMENTS VOTED DOWN.
The Senate Bill Making Labor Day n Legal
Holiday Passed In the Households
of Privates In Pension
Cases.

WARRINGTON, June Elm the senate
yesterday Mr.. Allen made another
Intellectual attempt to secure action on
his resolution directing the secre-
tary of the treasury TO inform the SEN
ate Of the total number Of persons en-
gagged in protected industries whose
wages might be affected by tariff legis-
lation. Mr.. Gallinger objected and MIR.
Morrill, moved to refer II TO the finance
committee. Mr.. Allen gave notice that
as long as the resolution remained un-
acted upon he would object TO all legis-
lation by unanimous consent. Mr..
Morrill's motion was defeated by u vote
of 10 to 81.
Then the senate resumed the con-
sideration of the income tax provis-
ions of the tariff bill and Mr.. Hill with
drew the amendment offered on Satur-
day to strike out the provision exempt
ing interest on United States bonds
from the operation of the tax.
His object In Offering the amend
ment, he said, was to call the atten-
ton of the country to the fact that the
$685., 200, 900 of property in government
bonds were necessarily exempt from
the action Of the income tax under the
law. Although the ostensiblc purpose
of the income tax was TO reach the
wealthy and equalizc taxation, there
was an enormous investment in capital
which the income tax could not reach.
Mr.. Hill then moved TO exempt state,
county and municipal bonds, arguing
that the taxation of state bonds by the
federal government would he n direct
attack upon the administration OF the
states. If the federal government had
the right TO diminish the value of state
/ bonds and securities IL had the right to
destroy them. This was defeated-s5
TO 20.
/ Mr. Hill then modified his amend
| ment so as to conhne the exemption to
/ state bonds A long constitutional
/ discussion of the powers and limita-
| tions of federal taxation followed, in
which Messrs. Hoar, Morgan, Pugh,
Lindsay, Caifery and Gray participated.
Mr.. Hills amendment to exempt inter
est from state bonds was also lest. 81
TO 30. MIR, llill then moved to strike
out the provision for n tax on personal
property acquired by gift or inner
itance. Lost, 25 to 30.
The proviso offered by MIR. Vest last
week rs an amendment TO section IS
THAT in computing the income of any
person, corporation, company or asso
citation. there shall not be included tn,
amount received from any corporation
etc, as interest dividends upon tn,
bonds of stock of such corporation, etc.
IL the tax of per cent. has been pal,
upon It's net profits by said corporation
as required by this act" was agreed to
An amendment of Mr., Allen, tn per
nit evidence in rcbuttal before collect
ors of internal revenue as 10 the amour
Of incomes, was agreed to, as was Tn,
Vest amendment including In tn
calculation Of the incomes of banks
banking institutions, trust companies
, life, fire and other assurances, railroad
canal, telephone, telegraph and othe
companies, actual operating and busi
ness expenses, losses and interest OF
bonded and other indebtedness,
A committee amendment was adopt
ed, providing the tax shall not apply
ito states, counties or municipalities
nor to corporations, companic, or as
fociations organized AMI cunductc,
solely for charitable, religion, or eiu
cntioual purposes, including frdtcrna
beneficiary societies, orders or as
l sociatuns, operating upon tn
{ lodge system and providing fo
, the payment of life, sick, uccilcn
and other benefits 10 the members q
such societies ordcra and association
: and associations aud dependents q
such members. nor 10 stocks, shnro-
funds ur securities held by any idicu
8 AIRY or trustee for charitable, religion
ur educational purposes nor to Thu
loans made 10y building ana loan asst
$ Citations 10 their shareholders for TIA.
purpose OF enabling them 10 provid
- for Themselves homes; nor to ccrtai
:. savings banks and saving, institution,
Mr.. Allison moved to add to soctiu
% the words: And nothing hcrci
i shall apply to any cooperation, con
Y pany or association having "a pa!d-u
rnpital of less than SlOl.OOO,' Withou
, acting upon the amendment the scnut
at G:lO went into executive session an
five minutes later adjourned.
Tim uoUnE.
WASHINGTON. June -. Another lcgi
holiday has been added 10 the list a
i on motion Of Mr. AIcGann, the scnat
Q bill making Labor day n national hol
day yesterday passed
The house bill 10 give the sam
weight and effect 81 the oaths Of pr
vate and non-commi'aiaaed officers
pension cases as Is given to the oatl
y Of commissioned officers passed
/, The house went into committee ,
q the whole ON the deficiency bill.
An amendment was adopted appropr
ating 81 900 10 pay Hon. w. d, Englis
l. for his successful contest for the set
|, in the present congress held by Samu
: @. IHlborn. from the Third Californ
Is district, his name having been ina
I. vertently Oini,tel from the list Of COZ
Ne testants and cpntestccs whose eXpcn-,
2. were paid.
~ Considerable discussion was prcaip
i tated by amen lments offered 10 q
n paragraph 30 pay Indian dcprclatic
L. claims. As the bill finally came out {
~ the committee Of the whole, this par
~ graph carried an appropriation Of sio'
~ 900 for the Payment Of certain lnlii
depreciation claims In lieu of the $50
for the examination Of these case
the Encouragement rs original
provided in the bill. Tho house +
tanned the amendment and the lll'
10 amended wa, passed.
" AZ $50 y. M. the house adjourned.
40.