The record-union., 1894-06-27

Might Be Affected by Tariff Legis-
lation.
epeciaI to the REcoRD-UNIoN.
WASHINGTON, June 26.-The Senate
entered upon the thirteenth week OF the
tariff debate to-day.
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 en-
gagged in the protected industries whose
wages might be affected by tariff legisla-
ton.
Gallagher objected.
Morrill, moved to refer it to the Finance
Committee.
Allen gave notice that as long as the
resolution is unacted he would object to
all legislation by unanimous consent.
Morrills 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-
enpting interest on United States bonds
from the operation Of the tax. His object
to call the attention of the country to the
fact that S635, 200, 900 OF property in Gov
ernment bonds were necessarily exempt
from the operation of the tax under the
law. Although the ostensible purpose of
the income tax was TO reach the wealth
and equalize taxation, there was an
enormous investment of capital which
the income tax could not reach. Hill
moved TO exempt State, county and
municipal bonds. He 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 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
taxation.
Chandler expressed the hope that upon
reflection the Democratic majority would
not place States and 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, corporation or individual, because
it occupied this advantage, and the Gov
ernment should not bear the credit of
States and cities by raising their securities.
Mitchell of Oregon agreed with Hill
bonds was OF doubtful conStitutlonallty.
Sherman also agreed with Hilps posi-
ton.
Discussion on the constitutionality of
national tax on State and municipal bonds
continued tor some time, and then vote
was taken on Hill's amendment. Lost
% to 30.
Hill then modified his amendment so
as to contine 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 and Gray participated.
HIPS amendment to exempt interest
from State bonds was also lost-21 to 80.
Hill then moved to strike out the pro-
viso for tax on personal property ac-
Quired by gift or inheritance. Lost-25
TO 80.
The proviso offered by Vest last week
as an amendment to Section 50, that in
computing the income of any person or
persons, corporation, company or associ-
alton there shall not be included the
amount received from any corporation,
etc., as interest or dividends upon the
stock of such corporations, etc., ii the tax
of per cent. has been paid upon its net
profits by said corporation, as required
by this Act.n was agreed to.
An amendment OF Allen, to permit evil
dence in rebuttal before Collectors of In
ternal Revenue as to the amount Of in
come, was agreed to, as was the Vest
amendment including in the calculation
of the income Of banks, banking institu-
tions, trust companies life, fire and other
assurances, railroad, telegraph. telephone
and other companies, actual operating
and business expenses, losses and inter-
est on bonded or other Indebtedness.
A committee amendment was adopted
t,o+ t~.1l
ply ito States. counties or municipalities
nor to corporations, companies or asso-
Citations organized and conducted solely
for charitable, religious or educational
purposes, including fraIernal and bene-
ticiary societies or associations operated
upon the lodge system, and providing for
the payment OF life, accident or other
benefits to the members of such societies,
orders or associations ana dependents of
such members, nor to the stocks, shares,
funds or securities held by any trustees
for charitable, religious or educational
purposes, nor to the loans made by build
ing ana loan associations to their share
holders for the purpose of enabling them
to provide homes, nor such savings
banks, savings institutions or societies as
shall have no members nor stockholders
except depositors and no capital stock:
second, shall not receive deposits to an
aggregate amount in any one year of
more than 81 900 from the safe deposit: or
third, shall not allow an accumulation or
total of deposits by any one depositor to
exceed $4,000; fourth. shall actually di-
vide and distribute to its depositors, rata
bly, to deposits, all the earnings over the
necessary expenses of such bank, insti-
tuition or society, except such as shall be
applied to surplus. and. fifth, shall not
possess in any form a surplus fund ex-
ceeding 10 per cent. OF its aggregate de-
posits."
Allison moved to add to Section 50 the
words: And nothing herein shall apply
to any corporation, company or associa-
ton having paid-up capital of less than
SlOO,000.'
Without acting upon the amendment,
the Senate went into executive session,
and at 6:i5 P. NJ. adjourned.
IN THE HOUSE.
WASHINGTON, June 26.- The Senate
bill making Labor Day a national holi-
day passed the House to-day.
The House bill to give the same weight
and effect to the oatns OF privates and
non-commissioned officers in pension
cases as to the oaths of commissioned
officers passed.
The House went into Committee of the
Whole on the deficiency bill.
An amendment was adopted appropri-
ating 5000 to pay Hon. w. d. English
for his successful contest for the seat in
the present Congress held by Samuel G.
Hilborn, from the Third California Dis
trict, his name having been inadvert-
emily omitted from the list OF contestants
whose expenses were paid.
Considerable time was devoted to the
paragraph relating to Indian depreda-
fions claims.
The bill was passed, and at 5:l0 P. NJ.
the House adjourned.
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