Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1894-07-05
WILM1Nerox nANks nxrmpr.

No Tax on Savings Institutions Whore
Interest is Given TO Depositors-Mr.
Gray Opposes an Inquisitorial Feature
of the Income Tax,
During the Tariff bill debate in the
Senate, Wednesday, on the feature of the
income tax applying to savings banks,
Mr.. Vest said that the attention of the
finance committee had been called to
peculiar sort of savings bank in Della
ware, run by Quakers, in which the in
corporators received no profit, or salary,
and in which the interest was ali paid to
the depositors. The Senators from that
State were AFRAID that the exceptions did
not cover that case, and so he offered an
amendment exempting "such savings
banks, saving institutions or associa-
tions composed of members who do not
participate in the profits and where
interest or dividends are paid only to
depositors.n Agreed to.
Mr.. Gray spoke in opposition to sec
ton 66 of the bill, relating to the inspec.
ton of the books of corporations subject
to tax. He was opposed to the income
tax, he said, which, under pressure and
without excuse, was to be forced on
those who wanted to enact tariff.
reform measure. But it was his inten-
ton to vote for the bill even with the
income tax incorporated in it, But this
section he would never vote for. Gov
| ernments, he said, We're instituted to
secure toindividuals the greatest amount
of liberty consistent with public safety.
| let here was q tax attached to this bill
accompanied by an administrative feat
ure that would harass, annoy, irritate
at, -,
agis of American institutions, which
| guarantee protection to the corporation
in the East rs well as the farmer on the
Western plains. Equality before the
law was necessary 10 the preservation
of American nstitutions--equality to
the rich as well as the poor,
equality for enterprise, industry and
thrift as well as those who have none.
MIR. Gray recalled that the trainers of
the constitution had adopted an amend
ment to secure to the citizen of the
United States liberty in his house and
| papers from unreasonable search and
| seizure. Brave men had given up their
blood and their lives to secure this
liberty, and he would not surrender it
upon any proteXt, however plausible it
might be. This section seemed TO have
been incorporated in the bill III the gen
eral scheme of Illuminating blow to d
class. How did corporations differ from
| individuals? We're not the officers
| American citizens? Did they not exist
for their shareholders, the widows and
the orphans? Why should we attach to
them provision we would not dare to
apply to individuals? lie concluded by
expressing the hope that this provision,
which was out of joint, which was in
tended for another subject and did not
fit, would be stricken from the bill.
Mr. Vest, III reply, said he could not
account for this sudden patriotic erup.
ton of Mr.. Aldrich and Mr.. Gray except
by the near approach of the Fourth Of
July He did not see any reason why
every corporation doing business
honestly should object to having its
books examined to allow government
| officials TO see how much they honestly
owed the government. He asserted
that all these phantoms of unreasonable
| search and seizure were being coniured
up to defeat this income-tax provision.
After some further debate, without
acting on the amendment of Mr.. Hill,
the Senate, at G.20, adjourned.