The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1894-06-27
AGaINsr THE INCOME TAX.
Senator Hiii In the Thick of tho Fight
Amendments Rejected.

Washington. June ga resolution
offered on the 18th of May by Mr.. Allen.
pop, of Nebraska. calling for informa-
ton as to the total number OF persons
engaged in protected industries whose
wages may be affected by tariff legis-
latlon was taken up In the senate to-
day.
An effort was made on the part OF the
| republican senator's to have It referred
TO the finance committee and, after a
motion TO that effect. was defeated
yeas 10, nays 27-all the democratic SEN
ators voting with Mr.. Allen in the mega
tive.
The resolution went over without fur
ther action, and at 1890 o'clock the tar
IN bill was laid before the senate, the
pending question being on the income
tax provisions.
Mr.. Hill, dem., of New York, with
drew an amendment which he had Of
fcred, before the adjournment on Sat
urday, to strike out the exemption from
taxation OF United States bonds so ex-
empted by the law of their issuance,
and he suggested to make the clause
read, "The principal and interest of
which are by the law of their issu-
ance," &c. That suggestion was accept
ed by Mr.. Vest, dem, of Missouri, on
the part Of the finance committee, and
the clause was so modified.
He then offered an amendment to in
clude within the exemption the bonds
town; and he made an argument in
of a state, county, municipality or
support of that amendment.
Mr.. Vest, DEM, of Missouri, argued
against it. Why, he asked, should the
holder of state or city bonds be exempt
ed from taxation? Was itnot an in
vestment-as much so as any other In
vestment could be made? A millionaire
might invest his immense fortune in
state or municipal bonds and thus have
S50,000,0O0 or $4,000 900 exempt from
taxation. The result Of such legislation
on those securities, to the disadvantage
of other securities of the country.
Mr.. Hill argued that with this new
income tax on state and municipal
bonds the people who buy them would
insist on higher rate of interest.
"And thereby" Mr.. Higgins. rep, of
Delaware, suggested, increase the state
taxation to meet that higher interest"
Mr.. Hill conceded in that suggestion
and said that states and municipalities
should not be put on an equality in that
respect with the federal government, so
that they should not be compelled to
negotiate their bonds at a higher rate
Of interest.
Mr.. Platt, rep, of Connecticut, in
quired whether states could not provide
for the issue Of bonds to be free from
taxation.
-- Mr.. Hill had no doubt,that they could,
In the city Of Brooklyn bonds to the
amount Of hundreds Of thousands of
dollars had been issued for the erection
of armortes, which bonds were declared
to be exempt from all taxation. He ad-
mitted that federal taxation was not
in view, but he submitted that under
the terms OF their issue they should be
exempt from federal taxation.
After an hour and half's discussion
MI Fiilrs amendment to exempt from
tax the income derived from securities
OF states, counties and municipalities
was reJected-yeas 20, nays 30. Two
democratic senators CGray and PugN
voted with Mr. Hill Mr.. Irby voted
against the amendment, and SO did the
ators Kyle, pop, or South Dakota, and
Smith, dem., OF New Jersey, were paired
with republicans.
Mr.. Hill directed attention to the fact
that the Dill put tax upon personal
property acquired by inheritance, while
IL .dld not put a tax upon real estate ac-
qulred py inheritance. He moved to
strike out OF section 55 the words
money ana the value OF all personal
property acquired by gift or Inherit
ance.'
After some discussion Mr.. Hills
amendment was rejected-yeas rs, nays
"a. On this vote there We're no demo-
cratic DIRECTIONS except In the case of
Mr.. Hill.
Section 56 was taken up and all the
were agreed to. So also
as to sections 81 and 50. Sections 60
and 81 were on motion Of the finance
committee struck out and substitutes
agreed to. They relate to the income
tax insuSnce, banks and other institu-
tions and provide that the tax shall be
levied on the net profits or income
above the actual operating and bust
ness expenses, losses and interest on
bonded and other Indebtedness of those
The amendment as to mutual insur-
ance companies conducted solely on the
mutual, plan for the benefit of their own
members was offered by Mr. Vest on the
part Of the finance committee. 1t pro-
vides that the tax shall not apply to
"any insurance company which con-