Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-06-22
1t is Further Debated in the Senate
Today.
Mr. TELLER COMES OUT IN ITS FAVOR
Messrs. Sherman. Patton and
Others Oppose It.
THE ANTI-OPTION BILL

quite number of bills were passed be-
lore the consideration of the tariff bill was
resumed by the Senate today. The House
bill to incorporate the Supreme Lodge Of
the Knights OF Pythias was reported ia
vorably by Senator Faulkner wv NaD and
was Immediately passed. The Senate bill
for the relief OF Charles College, Missouri
compensation for use by the army during
the war;. was taken from the calendar and
passed. Also the House bill to regulate water
main assessments in the District of Column
bia Also Senate bill appropriating $4,000
for the investigation and tests OF American
timber by the forestry division OF the Agri-
cultural Department. Also Senate bill maxi
Ing the first Monday IN September of each
year Qabor day) legal holiday. Also
House bill granting to citizens Of Saucelito.
Cal. certain rights over Lime Point mill
tary reservation and the Senate b.ll to re-
move the charge of desertion standing
against Joseph c. Utter.
| Mr.. Kyle FaSors the Income Tax.
At 1880 the tariff bill was laid before
the Senate and Mr.. Kyle Is. ID took the
floor.
He made a general argument in favor Of
the income tax, dwelling on the decline in
| farm values in the west and the gradual
concentration OF wealth in the hands Of
| the few He advanced statistics 10 show
! that In the United States under the eco
nomic system Of protection since le6o the
working classes CO per cent OF the popula-
| tion) who In that year owned 80 per cent
of the wealth. In 1890 owned less than Is
per cent of the wealth. Less than 400
| multi-millionaire families now held "a per
cent Of all the wealth OF the country. l.0v0,-
| 600 families of the middle class held $4,000
each, while 100000 families OF the work.
ing class had but so97 each.
| In England, before 1910. $1,000 families
| held an average OF $4,000 each. while
| 100000 working families held but $40
| each. After the Inauguration OF the sys-
| TEN Of freer trade 22.oo families In Eng
! land held xlUo.oo each, l.sS4.VO families
| 5000 and l.5oo.oJ0 families S4S0. In other
words. under the system Of free trade l.vco.-
| ouo families in the working class had sd-
vanced to the middle class. The rich had
| grown poorer and the poor richer. he
argued that the protective system had been
| responsible for the concentration Of wealth
| In the hands of the few and that II was
| just and equitable that they should bear
the share OF the burden of taxation which
! their wealth made them able to bear.
Mr.. Calls Blue Socks. n
While Mr.. Kyle was speaking Senator
| Call of Florida rather shocked the specta-
tors in the galleries by removing mis- shoes
and elevating a large pair Of sky blue stock
| inged feet TO a neighboring desk. He gently
| sSltated the superheated atmosphere with
1 a large palm leaf fan and seemed TO have
succeeded in making himself fairly COM
| Portable.
Mr. Vests Amendments.
| At the conclusion OF Mr.. kyle's speech.
Mr.. Vest offered four additional amend
ments to the income tax sections. The
most important was one to reduce the ex-
/ emption from S4.oov 10 S3.VVo. another ex-
| empted from the opera ton Of the tax build
| ing and loan associations making loans onIy
| TO its shar reholders; another provides that
IN reckoning the profits Of corporations for
taxation, actual operating expenses. losses
I Ans. "A IA. lr.a af,ln -
excluded. The other amendment was az
/ follows:
In section 80 strike out the following
amendment: Provided that mutual LIE
insurance companies shall not be required
to pay an income tax upon the sums re-
! paid 10 their policy holders dividends. or
! interest upon the surplus premiums held ~
such companies.
The folio wing is added to the exemption
| clause OF the same section. providing that
the charitable beneficial and other socie-
| ties shall not be subject to the operations
| OF the tax: Nor TO any insurance COM
pany or association which conducts all its
| business solely upon the mutual plan and
only for the benefit OF its policy holders or
members. and having no capital stock ana
no stock or shareholders, and holding au
| Its property in trust and in reserve for It's
] policy holders or members. nor TO that part
/ OF the business Of any insurance company
haVing capital stock and shareholders.
which Is conducted on the mutual plan sep
arate from its stock plan of Insurance conn
pany. and solely for the beneat OF the
policy holders and members insured on said
mutual plan and holding all the property
belonging TO and derived from said mutual
part OF its business in trust and reserved
Tor the benefit OF its policy holders and
members insured on said mutual plan
Teller supports the Income Tax.
Mr.. Teller CColD supported the income tax
proposition. He quoted from the utterances
of some Of the leaders OF the republican
party. past and present. who advocated the
income tax I'm the past. Oliver p. Morton
Of Indiana had characterized Il as the n
just and equitable OF all taxes"
Senator Sherman had culogized IL a I, haa
Senator Morrill, OF Vermont
lhat was during the war" interrupted
measure" ~
"oh. Mr.. President" replied MIR. Teller
Il don't think an unjust and ineauitable tay
tax
He went on to show that a majority OF
the republican Senators. by their voice ana
votes. had supported the tax during the war
III was repealed in 1871 by a vote OF -, 10 %
ana every vote against the repeal was a re-
publican vote. so that In time of peace when
there was plenty Of revenue without the in-
come tax. majority OF the republican SEN
! ators had resisted its repeal
Referring TO Mr.. Aldrich's statement yes
terday that the Income tax was advocate
as a means for the redistribution Of wealth
Mr.. Teller challenged the production OF a
scintilla Of truth that that statement was
true.
Mr.. Aldrich called attention 10 the aeha,.
on this proposition In the House MIR Tellcp
said he did not desire to comment on what
had occurred at the other end of the Can't
tol but he had examined the debate and did
not think Mr.. Ald-ich's statement was 1usti-
ned. The income tax. he said had been nd
vocated along the line that the rich had no,
been paying their just proportion of taxes
That was very differeat thing from advo-
3 ! a a of diStrf
No socialist could hope to gain personally
py taxing money from the pockets OF the
rich 10 place IL in the federal government
Tor the support Of the government To the
charge that this was a sectional tax Mr.
Teller replied that Il was sectional In the
sense that the east would pay more than
/ the south or west because the wealth war
eongested there. But IL was non-sec ctional
In that every person receiving an income
beyond the exemption point would have 10
pay IT,
With regard TO the charge that Il was in
quisitorial. he declared that IL was no more
inquisitorial than state or county tax. or.
indeed, than a tariff tax. Ii was no more
a tax on thrift and Industry than a tax On
a mans home levied by his state, county or
| city. Ii also charged that the revenue
! from this tax was not needed. II was neei-
ed much now II when the in
come tax was enacted during the war. on
| April I the deficiency In the revenues was
/ ss.s. Il. g.faF