The evening world. [volume] (New York, N.Y.) 1887-1931, 1894-06-26
HILLS new ATTACK.
Would Exempt State, County and
City Bonds from Income Tax
Republicans Ioip Him In His Effort
to That End.
Proposed Amendment Defeated, 20
to 80, in the Senate.
By Associated Press.)


WASHINGTON, June 26.-With the
thermometer standing at SO degrees In
the Senate Chamber at 10 o'clock to-day
the Senate entered upon the thirteenth
week Of the tariff debate. At the open
Ing of the session, Mr.. Allen pop.
Neb) made another Intellectual at
tempt to secure consideration for his
resolution directing the Secretary OF
the Treasury to inform the Senate of
the total number of persons engaged
in protected industries. whose wages
might be affected by tariff legislation.
Mr.. Gallinger (Rep., N. H. objected
and Mr.. Morrill, CRep., VIZ moved to re-
fer it to the Finance Committee. Mr.
Allen gave notice that, as long as the
resolution remained Enacted upon, he
would object to all legislation by unani-
nous consent. Mr.. Morrills motion was
defeated by a vote of 16 to a.
At 1890 the Senate resumed the con-
sideration of the income tax provisions
Mr.. Hill withdrew the amendment he
offered on Saturday to strike out the
provision exempting the interest on
United States bonds from the operation
offering the amendment was to call the
attention of the country to the fact that
$685., 100000 of property In Government
bonds was necessarily exempt from the
operation of the income tax under the
law Although the ostensible purpose
Of the income tax was to reach wealth
and equaliZe taxation, there was an enor-
nous investment of capital which the
income tax could not reach.
MIR. Hill then moved to exempt state:
county and municipal bonds. He argued
Federal Government would be direct
attack upon the administration OF the
States. If the Federal Government had
bonds and securities. 1t had the right to
Aside from the question of the exercise
States Which Senators represented on
that floor and upon which this tax bore
harshly,. Mr.. Hin thought the States
should have the right to issue bonds
without being subject to Federal taxa
Mr.. Vest thought the exemption pro-
ton from that with reference to United
States bonds. 1t was no benefit to the
States or municipalities to exempt their
bonds. The bonds were sold in the, open
markets. They went into the hands
of private holders and should be sub
ject to taxation.
begged M the t re- MF
proposed would add nothing to the con.
stitutional rights of the States, and
Mnd rsht to exempt
i was equally fair and right to exempt
State and municipal bonds. 1t would In
op wise Wers to ba the su hSdsrs to eers
= taxation, they would bring less in the
market and probably have to bear higher
rates of interest. He maintained thai
Equality with the Federal Government
with regard to the taxation of thei
securities. a great injustice would b.
III the States by law specifically ex
empted their bonds, could the Unite'
States tax them?" asked Mr.. Plat Rep.
Enthusiastically not" replied Mr.. Hin
tional power of Congress-"
Mr.. Chandler Rep.' M H. MD said 18th. tia
in making this bad bill any better, b
cratic majority. wiuld not place State
and municipalities, when they wer
forced to borrow money, in worse pc
sition than the United States.
I Mr.. Mitchell Rep., Ore1 agreed e W.T.
and county bonds was of doubtful con
Mr., Hill said that there could be n
answer to the argument N Iav9r o
! securities. He expressed the hope tina
the Finance Committee would accept nj
amendment.
Mr.. Sherman also look this vie"
Mr. Hills amendment was finally lost
Is yeas to 80 nays.
Mr., Hill then modified his amendmen
30 as to confne the exemption to stat
A reference of Mr.. Vest to the Stun
of New York" in connection with IN
New York Senator, brought Mr. Hill I
his feet with the statement that tn
other day he was charged with repre-
senting the millionaires. To-day he wa
CHARGED with representing the slums.
ropreSented all classes.
His Democratic antagonists should should h h
motives He should be judged by IN
PROPOSITIONS he made His Democrat
associates should not move to the c q, &C
81 Senator Vests whip. His amendmer
ohom,d he honestly answered by ever
Democrat when he cast his vote. Wa
It sound? Did 1t make the bill better
worse? o,,,,
state bonds from the operations or II
income tax was lost-27 to 80.