The evening world. [volume] (New York, N.Y.) 1887-1931, 1894-06-26
Hills new ATTACK.
Would Exempt State, County and
City Bonds from Income Tax
Republicans loin Him in His Effort
to That End.
Proposed Amendment Defeated, 20
to 80, In the Senate.
nv tssneiatel Press)


WASHINGTON, June 26.-With the
thermometer standing at So degrees in
the Senate Chamber at 10 O'Clock to-day
the Senate entered upon the thirteenth
week of the tariff debate. At the open
ing of the session, Mr.. Allen pop.
Neb) made another Intellectual at
tempt to secure consideration for his
resolution directing the Secretary of
the Treasury 10 inform the Senate Of
the total number of persons engaged
in protected industries. whose wages
might be affected By tariff legislation.
Mr.. Gallinger Rep., n. H) objected.
and Mr. Morrill, Uep., VII moved to re-
fer 1t to the Finance Committee. Mr.
Allen gave notice that, as long as the
resolution remained Enacted upon. he
would object to all legislation by unani-
nous consent, Mr. Morrill's motion was
defeated by vote of l6 to q.
At 1880 the Senate resumed the con-
sideration Of the income tax provisions
of the Tariff bill.
Mr. Hll Withdrew the amendment he
offered on Saturday to strike out the
provision eNcmptng the interest on
the taxa t'sS Mr. poi s soid his Object in
Offering the amendment was to call the
attention of the country to the fact that
$6S5,0oo00 of property in Government
bonds was necessarily exempt from the
operation Of the income tax under the
law. Although the ostensible purpose
of the income tax was to reach wealth
nous Investment of capital which the
income tax could not reach.
Mr.. Hill then moved to exempt State;
Federal Government would he direct
attack 1ron the administration OF the
States. II the Federal Government had
the right to diminish the value OF State
bonds and securities 1t had the right to
destroy them.
Aside from the question Of the exercise
States which Senators Represented on
that floor and upon which this tex bore
harshiy Mr. Hun thought ,s the state honss
without being subject to Federal taxa
MIR, Vest thought the exemption pro-
posed presented very different ques-
tlcr from that with reference to United
States bonds. 1t was no benefit to the
States or municipalities to exempt their
bonds. The bonds were sold in the open
markets. They went into thu. hands
OF private holders and should be sub
Jet to taxation TAX snn.ordo, ,n,. Mr. v.s,
begged the question. The exemption
proposed would add nothing to the con;
stitutional rights of the States. and
and right to exempt Government bends
1t was equally fair and right to exempt
State and municipal bonds. 1t would II
bonds were to be subjected to Fedora
taxation. they would bring less in tn,
market and proba bly, have to bear highe
unless the States were placed on al
s.requalIty with the Federal Governmen
with regard to the taxation OF thei
Il tecmtties. great injustice would
III the States by law specifically es
empted their bonds. could the Unite
States tax them?" asked Mr.. Platt tRep
ENTHUSIASTICALLY not" replied Mr.. Hi
"That would be beyond the Constitr
tienal p SWeGT, Of t Gonsress"H y, said t,s
in making this bad bill any better, h
hoped, upon reflection. that the Demo Dem,
and municipalities, when they wer
forced to borrow money. in a worse pt
sition than the United States.
Mr.. Hill that the taxation of Stat
and county bonds was of doubtful col
stitutionality.
answer to the argument in favor. {
exempting State. county and municip'
securities. He expressed the hope this
| the Finance Committee would accept h
SMr. Sherman also took this view {
. the proposition.
1 Mr.. HIS amendment was nnally los
rs yeas to 30 nays.
Mr.. Hill then modified his amendmer
so as to confine the exemption to Sta
bonds. .e,..
Of New York" in connection with II
New York Senator. brought Mr.. Hin
his feet with the statement that =
senting the millionajres. To-day he "
charged with representing the slums.
represented all classes.
taunt him. They should not question h
motives, He should be ,j Judged du ny 4
associates should not move to the Graz
OF Senator Vests whip. His amendme
should be honestly answered by eve
Democrat when he cast his vote w
It sound? Did 1t make the bill better
worse?
MIR. Hills amendment eNcmptii
State bonds from the operations OF &
income tax was lost-T to 80.