The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-27
HILL AND THE INCOME TAX.
The Senator Fights the Proposition to
the End.

but the Senate Votes Them Down.
He Gets Into Tilt With Vest-Mor-
gan Argues Against a Proposition
to Tax State Bonds-MoLaurin Gets
Into Tilt With Chairman Harris.
Washington, June 26.-In the Senate
to-day a resolution offered on May Is by
Mr. Allen of Nebraska calling for in
formation as to the total number of per-
sons engaged in protected industries
whose wages may be affected by tariff
legislation, was taken up. An effort was
made on the part of the republican sena-
tors TO have it referred to the finance
committee, and, after a motion to that
effect, was defeated Is, nays 81, all
the democratic senators voting with Mr.
Allen in the negative. The resolution
went over without further action, and at
10:3O O'Clock the tariff bill was laid be-
fore the Senate, the pending question be-
ing on the income tax provisions.
Mr.. Hill withdrew an amendment
which he had offered before the adjourn
ment on Saturday to strike out the eX-
emption from taxation of the income of
United States bonds, so exempted 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
issuance etc. That suggestion was ac-
cepted by Mr.. Vest on the part of the
finance committee, and the clause was so
modified.
HILL EXPLAINS HIS OBJECT.
Then MIR. Hill stated that the reason
why he had offered his amendment last
Saturday, which, he now admitted,
should not be agreed TO, was to call to the
attention of the people the fact that $685.
100000 of property was, by this clause
taken out Of the taxable property of the
country. He then offered an amendment
to include within the exemption the
bonds of a state, county, municipality or
town; and he made an argument in sup
port of that amendment.
Mr., Vest opposed the amendment and
a number of senators had something to
say upon the subject, Messrs. Sherman
Teller, Platt and other republicans favor
ing Mr., Hills amendment.
When it came to a vote it was rejected
yeas 25, nays 30. All the republicans
voted for it, as well as three democrats
Messrs. Gray, Hill and Pugh. Two of
the populist senators, Messrs. Allen and
PETER, voted against it.
Another populist senator, Mr.. Kyle,
and Mr.. Smith, dem, of New Jersey,
were paired with republicans.
Mr.. lrby dem, of South Carolina, voted
with his party.
Then Mir. Hill moved an amendment
restricting the exemption to state bonds,
not county or municipal In an argu-
ment which he made in support of 1t he
made disparaging allusion to the state
of Missouri in connection with tax on
whisky, and this was resented augrily by
Mr. Vest, who spoke of the "instrument-
alities of the slums of New York; and
offered, after tariff legislation was dis
posed of, to pay his share of the expenses
of hiring hall' to discuss the question
with the senator from New York if he
desired it.
MORGAN FOR STATES RIGHTS.
Some further sharp persona lities
passed between Messrs Hill and Vest
and then Mr.. Morgan took the floor He
said that as he had not been able to ex-
press his views on the question by his
VOTE he being paired, he felt bound TO op-
pose the exercise by the government of
the United States of the power of tax
alton on the part of any state. The ques-
tion, he said, involved the constitutional
authority of the government of the
United States before the states respec-
lively, and their proper balance in the
system of government. He protested
against the proposed invasion of the
rights of Alaoam He did it with as
much solemnity and feeling, and with as
deep-seated an interest as If a bill were
pending to tax the state house at Mont
gomery, or to tax the public bridges,
ferry, roads or any other property owned
by the state of Alabama, for federal pur-
poses. He could not subscribe to the
doctrine that the government of the
United States can tax the bonds of Ala
bama, directly or indirectly, when they
were issued as facilities and instru-
mentalities of the state government of
Alabama.
The argument in support of Mr.. Hills
amendment was continued by Messrs
Gray, Pugh, Caffery, Hoar, Hawley, and
against it by Messrs. Lindsay, dem, of
Kentucky, and George.
THE AMENDMENT REJECTED.
The vote was taken and the amendment
was reiected-yeas 27 nays 3d. Four
democratic sonators-Messrs Caffery
Gray, Hill and Pugh-voted for the
amendment. Mr. Morgan would have
voted for it but for his pair with Mr.
Quay, rep, of Pennsylvania, who would
also have voted for it, The populist
senator's, Messrs Allen and PETER. to-
gether with Mr.. Irby voted against it,
and the other populist senator, MIR. Kyle,
was paired with Mr.. Lodge, of Massa-
chusetts
Mr. Hill directed attention to the fact
that the bill put a tax upon the personal
property acquired by inheritance, while
1t did not put a tax upon the real estate
acquired by inheritance, and he called
upon Mr. Vest for an explanation Of that
inequality
Mr. Vests answer was that If the bill
exempted the rents of such real estate,
the argument of the senator from New
York would be pertinent and proper, but
that was not the case.
Mr. Hill then moved to strike out Of
section 50 the words money and the value
of personal property acquired by gift or
inheritance and made an argument in
support of that amendment.
Mr.. HIPS amendment was rejected
yeas 26, nays "a On this vote there were
no defections from the democratic ranks,
except in the case of Mr.. Hill himself
MOTION TO REJECT EXEMPTIONS.
Mr.. McLaUrin. dem, of Mississippi,
moved to reconsider the votes whereby,
some days ago, the salaries of the Presi-
dent of the United States and United
States Judges were exempted from the in
come tax.
MIR. Hill inquired whether MIR. Nc
Laurin had voted in the affirmative on
those amendments.
Mr.. McLaurin said that he had not, but
that as the vote had nos been taken by
yeas and nays, he understood that the
rule did not apply which limits motions
10 re consideration to those who had voted
fl1c a ftirr,a tive 10 odrlaI that ,,..,g.