New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-12

,.oovrsy IN ONE OF MR. VESTS CHANGES
., THE INCOME TAX scHEDuLE-LIvELY
PASSAGES IN YESTERDAYS DEBATE.
fnY TELEGRAPH TO THE TRIByNEl
..sh,ngton. May 1.-THE Democrats in the
nod n chance to-day to show their feeling
Ga the new German Tariff bill. for the
w" Wv. ,ou, of the 400-odd amendments dictated by
-" conservative" faction were reached and
' nv Mr.. Jones for Incorporation in the FL
o.o committees discarded bill. Mr. Mills was
n""' or,v one of the Free Trade wing OF the
~, hold enough TO oppose the changes openly.
Pos, cowed by Mr.. Germans authority. sat
i =, ,hoir seats and voted for the "modihca-
s" s,oonily. but submissively. The Republ'-
W. s,nnorted most of the amendments. because
,aoarded them as vast Improvements over
cause bill rates and on several rollcalls. Mr.
~. mas left practically alone in his opposition
49, higher duties Of the German revise"
W ~ the German amendments were adopted
- the course of the afternoon-changing the
w. IN boracic acid from 20 per cent ad val
w. ,o cents pound; on chronic acid. from
o.'". cont ad valorem to 4 cents a pound. and
.,.-,c acid from 20 per cent ad valorem to 20
o- cont ad valorem. The fourth change, in
pei ocd. from 35 cents to 10 cents pound,
s.D,aned Enacted upon.
-o,hing Of sensation has been made In
-, senate by the discovery that Mr.. Vests
w u.s IN the income tax schedule, reported last
.,-,sov have. whether Intentionally or uninten-
.,...rv subjected all corporations mentioned IN
-. ,ocs 10 tax of per cent. not only on their
- ,ro6ts but also on the vast sums PAID out
.''" .,a,, annually as fixed charges. Section SO
49, hill as amended by Mr.. Vest reads as fol-
lows
r... ,nere shall he levied and collected a tax OF
per een.u Urinary working or operating expenses
III hanks banking institutions, trust colnpanes
saving Institutions nre lanai turnpike canal
sui1net,on slack water telephone, telegraph en-
rress electric light gas water street or
lahsss e. doing business for profit In the United
s,e,ss no matter how created and organized
rA,s section Is as far-reaching as language
an mako if and will be the most hurtful pro-
v,.Ion Of the whole Tariff bill to corporations.
Tho onerous character Of the amendment Is
snovn in the fact that It obliges all corporations
having bonded debts to pay tax OF : per cent
an the annual interest on their bonds. In other
words. corporations are to be taxed on their
debts including what they pay out as interest
One-Afth Of the railroads in the United States
are now in the hands Of receivers II is be-
reyed by those well informed in railroad matters
that II this amendment becomes law another
fifth will apply for receiverships.
II Is estimated that the Pennsylvania Rail-
road if the amendment as now drawn. passes.
will have to pay an additional annual tax to the
Government Of about 81 100000. The New-York
Central will have TO pay annually about $780,
900; the Southern and Central Pacific about $780,
go: the Baltimore and Ohio about 100000. and
.he other railroads in the country in proportion.
1t is also believed that under the amendment
corporations will not only have to pay the per
cent taxes on their incomes. above operating ex-
penses. including interest on bonds but that
after the corporation pays the per cent tax the
individuals who receive the interest will also
have TO pay like tax Of per cent If this is
not so, the bondholder escapes taxation entirely
on the interest he receives on bonds
The Vest anne ldment would not. OF course. be
so Objectionable. IL it authorized tax to be
levied on net profits above operating expenses
and fixed charges
Inquiry has revealed the fact that very few
members Of the House and Senate understand
the full meaning OF the amendments and in
nearly all cases when approached on the subject
they have condemned them.
The session Of the Senate to-day was marked
by many lively interchanges Of sarcasm between
various Republican Senators and Mr.. Harris.
Continued complaint was made by those desiring
TO ask questions because OF the divided re-
sponsbility the Democratic side in the man
agement Of the bill Mr.. Harris remained to-day
In parliamentary charge" while Mr.. Jones
offered without comment the German amend
ments as they were reached and Mr.. Vest as
suned the task Of replying. whenever 1t was
thought necessary, 10 criticisms from the Re-
publican Senator's. Mr. Voorhees,, the chairman
Of the Finance Committee. sat abJectly in his
seat taking no part whatever in the proceed
ngs; while for general coach" on rates and
figures, both the real and nominal managers Of
the bill had to fall back upon Mr. Talbot. clerk
Of the Committee on Ways and Means. who has
teen imported from the other end Of the Capitol
10 fill an apparently painful want.
The Republican Senators could not resist the
temptation to twit the majority on this extraor-
enary exhibition Of responsibility and irregu-
.!aTlty Of leadership; but though Mr.. Harris and
AT. Vest grew an6rier and angrier under the
pcdoing, they suppressed their feelings mOder-
a'ey well, and showed temper only In a logged
persistence in moving 10 table every amendment
or suggestion which came from the other side.
NJ. Mills even suffered by this captOus treat
ment, for his colleagues would not let him have
vote on his amendment putting chronic acid
on Inc free list. although he asked * simply 10
'!nalcaie his own consistent record.
M Harris's threatened motion for sessions
Desmning al 10 a.. each day was Withdrawn
iLis afternoon The Tennessee Senator found that
MI Quay and other Republican Senators were
prepared to neutraze the advantage gained
hfough an earlier meeting by consuming the
.st TWO hours daily with morning business"
truce was thereupOn struck by which the