The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-06-27
Offering Amendments to the
0dieus Income Tax.
THEY ARE PROMPTLY DEFEATED.
Fraternal and Building and Loan
Societies TO Be Spared.
The House Passes the Biil Making
Labor Day Holiday and the Den-
cheney Appropriatien--Carn su-
perIatendent Convscsing Himself

entered upon the thirteenth week of the
tariff debate today. Alien made another
attempt 10 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 the tariff
legislation. Galiiager objected. Morrill,
moved TO refer il To the finance commit
tee. Allen gave notice that as long as the
resolution i. not acted upon he would OBJ
iect TO all legislation by unanimous con-
sent. Morrill's motion was defeated, rs
to %.
PETER. gave notice of an amendment TO
the tariff bill levying duty of $50 per
head on aliens arriving in the United
States.
The senate then resumed consideration
OF the income tax provision. Hill with
drew the amendment he offered Saturday.
10 strike out the provision exempting
interest on United States bonds from the
operation of the tax. His object in off.r-
ing the amendment, Hui said. was to call
the attention OF the country to the fact
that s6S5. .oo0, 900 OF property In government
bonds was necessarily exempt from the
operation of the tax under the law, al
though the osiensible purpose of the in
come tax was to reach wealth and equaiize
taxation. Here was an enormous invest
ment of capital which the income tax
could not reach.
Hill moved to exempt state, county and
municipal bonds. lie argued that the
taxation of state bonds by the Federal
government would be direct attack upon
the administration of the states. If the
Federal government had the right 10 di-
minish the value of state bonds and securi-
ties il had the right to destroy them.
Vest held that state or municipal bonds
could not properly be exempted from tax
alton. Chandler expressed the hope that
upon reflection the Democratic majority
would not place states aud municipalities,
when they were forced to borrow money,
in worse position than the United States.
The United States could now borrow
money cheaper than any other country,
state. corporatioGpr individual. because il
occupied this advantage and the govern
ment should bear the credit of states and
cities by raising their securities. Mitchell,
of Oregon. agreed with Hill that the taxa
ton of state and county bonds was of
doubtful constitutionality. Sherman also
AkFCCA WIN AihA N1&tktOhe
Discussion on the conststutionality of a
national tax on state or municipal bonds
continued for some time, and then a vote
was taken on Hills amendment. Lost
IS to 80
Hill then modified his amendment so as
to confine the exemption to state bonds.
A long constitutional discussion of the
powers and limitations of Federal taxa
tion followed, in which Hoar. Morgan,
Pugh, Lindsay, Gallery and Gray particle
pated. Hills amendment To exempt in
ierest on state bonds was also iost-27
to 30.
Hill then moved 10 strike out the pro-
viso for tax on personal property ac-
quired by gift or inheritance; lost, 25 10 IS.
The proviso offered BY Vest last week as
an amendment to section So. 'sthat in COM
putting the income of any persons, cor
poration, company or association, there
shall not be included any amount re-
ceiyed from any corporation, etc, as In
terest or dividends upon the bonds or
stock OF such corporations, etc.. If the tax
of per cent. had been paid on its net
profits by said corporations as required by
this act" was agreed to.
dence In rebuttal before collectors of in
ternal revenue as to the amount of in
comes, was agreed 10. as was the Vest
amendment including in the calculation Of
the incomes of banks. banking institu-
tions. trust companies, lie. fire and other
insuranees, railroad, telephone, telegraph
and other companies actual operating and
business expenses. losses and interest on
bonded indebtedness.
A committee amendment was made pro-
viding that the tar shall not apply ito
states. counties or municipalities; nor to
corporations, companies or associations
organized and conducted solely for char
liable. religious or educational purposes,
including fraternal or beneficial societies
or associations operated upon the lodge
system and providing for the payment or
life, sick, accident or other benefits 10 the
members of such societies, orders or asso-
Citations and dependents OF such menu
bers. nor TO the stocks, shares. funds
or securities held by any trus-
tees for charitable. religious or
educational purposes; nor to the loans
made by building and loan associations to
their shareholders for the purpose OF en-
abIing them TO provide homes. nor such
savings banks, savings institutions or so
cieties as shall have no members or stock
holders except deposstors and no capital
except deposits. or shall rot receive de-
posits 10 an aggregate amount in any one
year Of more than 81. 600 from the same de-
poster, or shall not allow an cumula-
tion or total of deposits by any one de-
positor 10 exceed $1,000, or shall
actually divide and distribute TO its
depositors ratably 10 deposits all the earn
ings over the necessary expenses Of such
bank, institution or society, except such as
shall be applied 20 Surplus, or shall not
possess in any form a surplus fund exceed
ing 10 per cent. OF its aggregate deposits"
Allison moved TO add TO section 50 the
words, "and nothing herein shall apply to
any corporation, company or association
having paid-up capital OF less than $780,
Geo" Adjourned.
Nominations: Charles DE kay. Of New
York. cousul-generaI 81 Berlin, William
Meyer Little, Of North Carolina, consul al
TegaelgalpA, Honduras