The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-06-28
FIFTY-THIRD CONGRESS.
THERMOMETER STANDING AT
EIGHTY.THREE IN THE SENATE.
And the Tariff Debate Drags its Weary
Length Along-Hil's Amendment
to Exempt State, County and
Municipal Bonds From the
Income Tax.
THE SENATE.

outoIou upUu Tue the l0El week OF the
tariff debate. AT the opening of the
session Mr.. Allen made another inef.
iectual attempt to secure considera-
ton for his resolution, directing the
secretary of treasury to inform the
senate OF the total number of persons
engaged in protected industries whose
wages will be affected by tariff legis-
lation. Mr.. Gallinger objected and
Mr.. Morrill, moved to refer it to the
finance committee. Mr.. Allen gave
notice that as long as the resolution
remained Enacted upon he would OBJ
ject to all legislation by unanimous
consent. Mr.. Morrill's motion was
defeated by vote of 16 to 81.
Then the senate resumed the con-
sideration of the income tax provis.
ions of the tariff bill. Mr.. Hill with
drew the amendment he offered on
Saturday to strike the provision ex-
cepting the interest on United States
bonds from the operation of the tax.
His object In offering the amendment,
Mr.. Hill said, was to call the atten-
ton OF the country to the fact that
$3.50 600, 900 of property in government
bonds were necessarily exempt from
the operation of the income tax under
the law, although the ostensible pur-
pose OF the income tax was to reach
wealth and equalize taxation. There
was an enormous investment of CAPT.
tai which the income tax could not
reach.
Mi. Hill then moved to exempt
state, county and municipal bonds.
He argued that taxation of state
bonds by the federal government
would be direct attack upon the ad-
ministration of the states. If the fed
eral government had the right to
diminish the value Of state Londs and
securities, it had the right to destroy
them. Aside from the question of the
exercise of doubtful power in justice
to the states which senator's repre-.
sented on this floor and upon which
this tax bore harshly, Mr.. Hill
thought the states should have the
right the bonds without being sub
jected to federal taxation. Mr.. HIPS
amendment to the income tax to ex-
empt state, county and municipal
bonds from the operations of the in
come tax was Lost, 25 to 80,
Mr.. Vest held that state or munich.
pal bonds could not properly be ex-
empted from taxation.
Mr.. Chandler expressed the hope
that upon reflection the Democratic
majority would not place states and
municipalities when they were forced
to borrow money in a worse position
than the United States. The United
States could now borrow money
quicker than state corporation or an
individual, but because it occupied
this coin of vantage the government
should not bare the states and cities
by raiding their securities.
Mr.. Mitchell of Oregon agreed with
Mr.. Hill that the taxation of state and
county bonds was of doubtful consti-
tutionality. Mr.. Sherman also agreed
with Mr.. Hill's position, The more he
thought of it, he said, the more salts
fed he became that the United states
should not interfere by this species of
taxation
Discussion on the constitutionality
of national tax on state or munici-
pal bonds continued for sometime, and
then a vote was taken on Mr.. Hill'a
amendment and it was lost 25 to 80.
Mess Gray, Hill and Pugh, Demo-
Gratis, voted for the amendment, and
Mr.. Pettigrew, Republican, and the
Populists against it. Otherwise, i.
was strictly a party vote, the Repub-
licans for and The Democrats against.
Mr.. Hill then modified his amend
ment 80 as to cOnfine the exemption to
state bonds. A long constitutional
discussion followed in which Messrs.
Hoar. Morgan, Pugh, Lindsay, CAT
ferry and Gray participated.
The proviso offered by Mr.. Vest
t last week as an amendment 10 sec. 30,
"that in computing the income of any
person, corporation, company or as
ISOLATION there shall not be Included
the amount received from any corpo-
ration, etc, if as interest or dividends
upon the bonds or stock of such cor
poration, the tax of 2 per cent has
been paid upon its profits by said cor
poratiOn as required, vas agreed to.
An amendment OF Mr. Allen 10 per-
NIT evidence in rebuttal before col
lectors of internal revenue, as ID the
amount of incomes was agreed TO, as
was the Vest amendment excluding
in the calculation in the
incomes of banks, banking in
stitutions, trust companies, life, fire
and other insurance Companies, rail-
road, canal, telephone, telegraph and
other companies actual operating and
business expenses, losses and Interest
ON bonds aud indebtedness. A COM
mittee amendment was adopted pro-
viding that the tax shall not apply to
states, counties, or municipalities BOZ
to corporations, companies, or associa'
tons or2anization solely for charlo
able. religious or educatl0naI
purposes, including fraternai
beneficiary societies, orders OF
associations operating upon the lodge
system and providing for the pay
plent Of life, sick, accident and othel
benefits to the members OF such soci
cites. orders aud associations and de
nendents Of such members, nor to the
stocks. shares, funds or securities hello
Inv any judiciary or trustees for char
liable, religious or educationa! pur'
noses, nor TO the loans made by build
mo and loan associations to thei
|.boreholdars for the purpose OF en-