Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1894-06-28
baltimore Sun special.

Baltimore Sun special.
WASHINGTON, June 26.-In continu-
ing the fight in the Senate against what
he considers the unjust provisions Of
the income tax Senator Hill to-day
started very interesting discussion Of
States rights, in which for a time the
usual attitude of the two parties were
reversed, and the Republicans appeared
as the advocates of State sovereignty.
The debate was over two amendments
offered by Mr.. Hill, the first exemptlng
from taxation, state, county, municipal
and town bonds, and the other exempt.
ing State bonds only. Discussing the
question Senator Hill made an almost
unauswerable argument, based upon the
constitutional rights reserved by the
States. If the income tax were made to
apply to incomes derived from State
securities, it would depreciate the value
Of such securities and interfere with the
right Of the State TO borrow money.
This proposition was accepted by the
Republicans, and Senators Allison,
Hoar and others followed Mr.. Hill in
advocacy of the rights OF the States TO
control absolutely the taxation of their
own bonds.
Senator Allison, commenting upon
the fact that the Federal government in
Sists that none of Its notes or securities
shall be subjected to State or municipal
taxation, declare that it thus affirms u
principle which II cannot deny in CON
nection with tho rights of the States.
In everything connected with its right
10 fix and regulate the value of its bonds
the State should be supreme, and the
Federal government has absolutely no
right TO interfere.
MIR. GoRMAN REFRATNEp FROM VOTING.
None of the Democrats came to Scna-
tor Hills assistance while his first
amendment was pending, but when the
vote was taken Senators Gray and pugh
voted for 1t. Senator German refrained
from voting. II WIS defeated, however.
Mr.. Hill, with the persistence that has
characterized his fight against tho pro-
posed tax, promptly offered his second
amendment, exempting State bonds.
Then for the first time since the debate
began a perceptible split in the Demo.
cratic majority occurred. Senator Gray
| announced that he had reached point
where further compromise against his
convictions were Impossible. This dec
larasion Of independence IL was found,
however, applied oply to the proposed
taxation of State securities. Mr.Gray had
nothing to say regarding the general
compromise on the tariff, against which
the country has been protesting. He was
unwilling, however. to surrender the
principle Of States rights involved in
the proposition under consideration and
defined very clearly his opposition to
the finance committees provision.
Senators Morgan and Pugh of Alabama
made similar stand. and in their
speeches they showed that il the power
to tax State securities were given the
Federal goyernpent. 1t could by exces.
slve taxation deprive the States Of the
right to borrow money. Notwithstand
ing these arguments, however, Mr..
Hills second amendment was also de-
feated.
Only Senators Pugh, Gray and Hill
on the Democratic side voted for IL.
Senator Morgan was paired, while
\ Senator Irby, who has voted with
Senator Hill on all matters relating to
the tariff, voted against it. Senator
German lodged again. He was paired
with Senator Frye, but entered the
chamber while the vote was being taken,
just as Senator Frye rose TO announce
the pair. Catching sight of Mr. German
the Senator from Maine said: II see
the senior Senator from Maryland in
the chamber, and will therefore"-. But
at this moment he looked at Senator
German, who shook his head and
quickly disappeared in cloakroom
MIR. Frye, continuing, said: "The senior
Senator from Maryland is not in the
chamber, and will, therefore, withhold
my vote"
SENATOR VESTS TAUNT.
During the discussion that preceded
this vote Senator Vest defended the tax.
ing of State securities, arguing that til.
exemption from taxation OF government
bonds has become obnoxious, and auy
proposition to extend the exemption
would be diDapproved by the people OF
the country. This led to heated col
loquy between Senators Hill and Yes!
in which the latter spoke of Mr.. Hill as
representing the slums of New York. II
was an ill-natured taunt. and Mr. Hill
earned the approval of his auditors BY
replying with dignity that he attempted
TO represent all classes of citizens in
New York, those of the lower classea a.
well as the wealthy.
After making an Intellectual effort Il
strike from the bill the tax on inheri
tances and to so amend it as to exemp
from taxation incomes derived from tic
rent of real estate, because both art
subject 10 State and municipal taxation
Senator Hill, abandoned his fight for the
remaindcrof the afternoon. As result
several sections Of the bill were passet
over with but little comment. The pro.
visions relating 10 the incomes of cor
porations caused some discussion, in thu
midst OF which an adjournment wa
taken.
TnE ALBIoy DISASTER.
Tho bodies of I52 Victims of the Elk
plosion Taken From the Mine.