The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-06-27
Every Amendment He Offers is
Promptly Turned Down.
DEBATE ON STATE AND
MUNICIPAL BONDS.
TAX ON THEM WOULD BE OF
DOUBTFUL CONSTRUCTION.
Building Societies, Associations For
Religious or Charitable Purposes,
Associations Acting Upon the
Lodge System, Providing Benefits
to Members of Such Societies
VIII Be Exempt From the Opera
lions of the Income Tax.

Washington, June 26.-The Senate
entered upon the thirteenth week Of
the tariff debate today.
Allen made another attempt to secure
action on 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 legis-
lation.
Mr.. GalIinger objected.
Mr.. Morrill, moved to refer it to the
Finance committee.
Mr.. Allen gave notice that as long
as the resolution was Enacted upon he
would object to all legislation by unani-
nous consent.
Mr.. Morrill's motion was defeated, is
to 81.
The Income Tax.
The Senate resumed consideration of
the income lax provisions.
Mr.. Hill withdrew his amendment Ct
fered Saturday, to strike out the pro-
vision eXempting interest on United
States bonds from the operation of the
tax His object in offering the amend
-ment Hill said. was to call the attention
of the country to the fact that $780,, 000,
900 property in government bonds We're
necessarily exempt from the operation
of the tax under the law. Although the
ostensible purpose Of the tax was 10
reach wealth and equalize taxation,
there was an enormous Investment of
capital which the ircome tax could not
reach. Hill moved to exempt state,
county and municipal bonds. He argued
that the taxation of state bonds by the
federal government would ne Il direct
n ftoclr J1r1cn the admin Str1 fiOY7 of the
states. If the federal government had a
to diminish the value nf state bonds
and securities. it had d night 20 destroy
them.
Mr.. Vest held that state or NUM-
cipal bonds could not properly be eX-
empted from taxation.
Mr.. Chandler expressed the hope
that upon reflection the Democratic
majority would not place states and
municipalities when they were forced
to borrow money in a worse position
than the United States. The United
states could now borrow money cheaper
err than any country, state corporation
or individual, because it occupied this
advantage, and the government should
not bear the credit of states and cities
by raising their securities.
Mr.. Mitchell, of Oregon, agreed with
Mr.. Hill that the taxation of state and
county bonds was of doubtful consti-
tutionality.
Mr.. Sherman also agreed with Mr..
Hills proposition.
Discussion on the constitutionality of
national tax on state or municipal
bonds continued for some time, and
then a vote was taken on Mr.. Hills
amendment. Lost-25 to 80.
Mr.. Hill then modified his amend
ment so as to confine the exemption to
state bonds.
limo constitutional J;eo,,o-;ox
the powers and limitations of federal
taxation followed, in which Messrs
Hoar, Morgan, Pugh, Lindsay, CAT
fiery and Gray participated.
Mr.. Hills amendment to exempt in
terest from state bonds was also lost
q to 80.
Mr.. Hill then moved ia strike out
the proviso for tax on personal prop
erty acquired by gift or inheritance
Lost-25 to 80.
The proviso offered by Mr.. Vest last
week as an amendment to section So
that in computing the income of any
person, corporation, company or asso-
citation, there shall not be included the
amount received from any corporation,
ETC.. as interest or dividends upon the
bonds or stock of such corporations.
etc, if the tax of 2 per cent, has been
paid upon its net profits by said COR
pora,tion as required by this act,'' was
agreed to.
An amendment of Mr. Aliens to per-
INIT evidence in rebuttal before collec-
tors of internal revenue Is to the
amount OF incomes, was agreed to, as
was the Vest amendment, including
| in the calculation of the incomes of
banks, banking institutions, life. fire
and other insurance, railroad. tele-
phone, canal, telegraph and other COM
panfes, actual operating and business
expenses, losses and interest or bonded
and other Indebtedness.
Societies Exempted.
An amendment was made pro-
viding THAT the tax shall not apply 'sto
states, counties or municipalities; nor
| to corporations, companies or associa-
tions organized and conducted solely
for charitable, religious or educational
purposes, including fraternal benefi-
ciary societies, or associations operat-
ing upon the lodge system, and provid-
ing for the payment of life, SICK acct
dent and other benefits to the members
of which societies, orders and associa-
tions and dependents of such members,
NOR to the stocks, shares funds or Sc
curitfes held by any trustee for char
| liable, religious or educational purpos-
es; nor ITO the loans made by building
and loan associations to their share
Eaiolders Tor the purpose of enabling
them to provide homes, nor such saw
ings banks, savings institutions or So
cieties as shall have no mem bers or
Istockholdlers except depositors, and no
capital except deposits; second, shall
! not receive deposits to am aggre-
! gate amount in amy 2ne year of more
: than $1,000 from the safe deposition
third, shall not allow an accumulation
or total of deposits by any one depos-
itor exceeding $4,000; fourth, shall ac-
tually divide and distribute to its de-
posfltors ratably to deposits all the
earnings over fhe necessary expense of
such bank, institution or society, ex-
cept such as shall be applied to sur
plus; and fifth, shall not posses in any
form a surplus fund exceeding 10 per
cent. of its aggregate deposits
| MIR. Allison moved to add to section
50 the words, "And nothing herein shall
apply to any corporation, company or
association having a paid up capital
of less than 100000
/ Without acting upon the amendment
the Senate, at &c. went into executive
session, and five minutes later adj
journed.
REPUBLICAN MASS MEETING.