The morning call., 1894-06-27

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 the protected indus
tries, whose wages might be affected by
tariff legislation. Gallagher objected.
Morrill, moved to refer it to the Finance
Committee. Allen gave notice that as long
: as the resolution is unacted upon be would
. object to all legislation by unanimous con-
sent. Morrill's motion was defeated, 16
to q.
The Senate resumed consideration of
the income tax provisions.
Hill withdrew his amendment offered
Saturday to strike out the provision ex-
emptiag interest on United States bonds
from the operation of the tax. His object
in Offering the amendment, Hill said. was
to call the attention of the country to the
fact that $685., 0O0 Of property in Gov
ernment bonds was necessarily exempt
from the operation OF the tax under the
law. Although the ostensible purpose of
the income tax was to reach the wealth
anu eGualiZe taxation, there was an enOr-
nous investment of capital which the in
come tax could not reach. Hill moved to
exempt Stale, county and municipal bonds.
He argued that the taxation of State bonds
by the Federal Government would be a
direct attack upon the administration of
the States. If the Federal Government had
the right to diminish the value of State
bonds and securities, it had the right to
destroy them.
-. Vest held that State or municipal bonds
: could not properly be exempted from taxa
Iion:
=: Chandler expressed the hope that upon
reflection the Democratic majority would
:: not place States and municipalities, when
they. were forced to borrow monev, In a
" worse position than the United States.
: The. United States could now borrow
money cheaper than any country, State,
" corporation or individual, because it occu-
- pied this advantage, and the Government
: should not bear the credit of States and
: critics by raising their securities.
Mitchell OF Oregon agreed with Hill that
: the taxatien of State and county bonds
: was of doubtful constitutionality. Sher-
!. man also agreed with HIPS position.
3: Discussion on the constitutionality of
= natlORaltax on State or municipal bonds
!. continued for some time, and then a vote
!: was taken on HIPS amendment. Lost
: .25 10 80
:. Hill then modified his amendment SO as
to confne the exemption to State bonds.
: A long constitutional discussion of the
: powers and limitations Of Federal taxation
J: followed in which Hoar. Morgan, Pugh,
!, Lindsay. Cafery and Gray participated.
!. HIPS amendment to exempt interest from
:: State bonds was lOst-27 to go
. Hill then moved to strike out the pro-
:; YisO for tax on personal property ac-
-auired By gift or inheritance. Lost-25
to So.
:. The proViso offered by Vest last week as
IAN amendment to section 55. THAT in
:. computing the income of any persons. cor
:poration, company or association, there
:: shallnot be included the amount received
from any corporation as interest or diyi-
= dends upon the bonds or stock of such cor
porations, ETC.. il the tax of per cent has
:: been paid upon its net profits by said cor
:. noration as required by this act" was
d" agreed to.
e. An amendment Of Allen to permit eyi-
:*deGce in rebuttal before collectors of in
:: ternal revenue as to the amount of in
:: comes was agreed to, as was the Vest
:, amendment, including in the calculation
:*of the Incomes Of banks. banking institu-
:. tlons, trust companies. life, fire aud other
:. assurances, railroad, telephone, tele-
: graph and other companies actual ope-at-
:: ing and business expenses, losses and In
= ,terest on bonded and other in debtedness
- A committee amendment was made pro-
F., Viding that the tax shall not apply $50
States, counties or municipalities, cor tn
:. corporations, companies or associations
organized and conducted solely for chari-
<-ta bic. religious or educational purposes.
Including fraternal. beneficiary societies
: or associations operating upon the lodge
system. and providing for the payment of
:llfe, sick, accident and other benefits 10
the members of which societies, orders
and associations and dependents of such
me n bers, nor to the stocks, shares, funds
" er securities held by any trustees or chari-
:: table, religious Or educational purposes:
: nor 10 the loans made by building and loan
associations 10 their shareholders for the
: purpose Of enabling them 20 provide homes
nor such saving banks, savings institutions
: or societies as, first shall have no members
'or stockholders except depositors and no
= capital except deposits; second, shall
: not receive deposits 10 an aggregate
-: amount Ia any one year of more than
e. S!VVo AAoh tuo same uepoSltor, or, third,
shall not allow an accumulation or total OF
deposits by any one depOsitor exceeding
$4,000: fourth, shall actually divide and
distribute TO It's deposltors, ratably to de-
posts, all the earnings over the necessary
expenses Of such bank, institution or So
ciety. except such as shall be applied to
surplus; fifth, shall not possess in any
form surplus fund exceeding 10 per cent
of lis aggregate deposits"
= Allison moved to add TO section SO the
words: And nothing herein shall apply
TO any corporation, company OF association
having paidup capital of less than
100000"
=, Without acting upon the amendment the
=: Senate at 6:10 P. NJ. went into executive
session and five minutes later adjourned.
. TAX ON ALIENS.