Waterbury evening Democrat. [volume] (Waterbury, Conn.) 1887-1895, 1894-06-27
Mr.. HILL AGAIN dashed
Senator Vest Accuses Him of
Drafting One Tax Bill.
HEATED DEBATE ON STATE RIGHTS.
Senator Hill Denied the Power of the Fed
eraE Government to Tax State Properties
and Was Sustained by the Republicans.
Several More Amendments Adopted.

1
eraE Government to Tax State Properties
and Was Sustained by the Republicans.
| Several More Amendments Adopted.
| WASHINGTON, Juno 27.-The senate
spent another day debating the income
tax provisions of the tariff bill without
making perceptiblo progress. Five hours
were devoted to the discussion of two
amendments offered by Senator Hill-the
| first to exempt the interest on state, coun-
| ty and municipal bonds and the second to
exempt the interest on state bonds from
the operation of tho tax. Tho debate
drifted into an exhaustive examination of
the power of congress and states rights,
three Democrats, Messrs. Gray, Pugh and
Caffrey, siding with the New York sena-
tor. Both amendments were defeated.
Mr.. Hill offered the amendment to ex
empt state, county and municipal bonds
Immediately after the senate convened. He
thought thu states had constitutional
right to issue bonds without federal in
terferonce. Mr. Vest answered that the
exemption proposed would not extend
state rights and would take mono away.
Mr.. Platt of Connecticut asked if the
states specifically exempted their bonds,
could the federal government tax them?
Mr.. Hill said that would be beyond the
constitutional powers of congress. Mr..
Chandler of New Hampshire, Mr.. Mitch
ell of Oregon and Mr. Allison agreed with
Mr.. Hill. Senator Vest held that if the
federal government could not tax proper
ty of the state it could not touch property
OF private individuals. \ vote was then
taken and the amendment loSt-27 to 30
Senators Vest and Hill had another tilt,
during which tho latter angrily rctorted
that he neither represented millionaireS
nor the slums, but all classes.
Hill Drafted Tax Bill.
At this point Mr.. Vest arose and asked
Mr.. Hill whether, whilo the tariff bill was
being prepared at tho other end of tho
capitol, he (Hill) had not drawn a bill on
collateral tax and given it to the chair
man of the ways and means committed
Mr.. Hill replied that he would answer
very frankly. While the tariff bill was
being prepared by the ways and means
committee an income tax was suggested.
Certain members of the house had talked
with him with regard to an income tax
and had suggested II tax similar to that
in vogue in New York. He was asked
whether he was familiar with the subject,
and when he informed them that he was
he prepared a bill to tax collateral inner
itances. He had not in any way Endorsed
it. He had not introduced it. He had
at bllc ICIuCSO VI luC
chairman Of tho ways and means COM
mitteo.
Mr.. Hill called attention to the fact that
he Offered the inheritance tax bill to the
ways and means committee believing that
it was to he Il substitute for the income
tax, but the ways and means committee
grabbed both. Mr.. Vest read sections of
the bill Mr.. Hill had prepared, showing
that it contained substantially the proVi-
Kan
to inhertances. Real estate was specifi-
cally exempted. Mr.. Hill said that if he
were asked by a client to draw II will he
could be held responsible only for its le-
gality, not its propriety. 1t would be
drawn in accordance with the wishes of
his client. He declined to be held rcspon-
sible for the provisions of the bill. The
reading of the measure caused a breeze.
Many More Amendments.
An amendment of Mr.. Allen to permit
evidence in rebuttal before collectors of in
ternal revenue AS to the amount of in
comes was agreed to, as was the Vest
amendment excluding in the calculation
tho actual operating and business eX-
penses, losses and interest on bonded and
other Indebtedness of banks, banking in
situations, trust companies, life, fire and
other insurance companies; railroad, ca
nal telephone, telegraph and other COM
panies.
\ committee amendment was adopted
providing that the tax shall not apply to
states, counties or municipalities, nor
companies or associations organized and
conducted solely for charitable, religious
or educational purposes, beneficiary socie-
ties operating upon the lodge system and
providing for the payment of life, sick
accident and other benefits to members of
70 = ha S1N.
funds or securities held by any tiduciary
trustee for charitable purposes, nor to the
loans made by building and loan aSsocia-
tions to their shareholders for the Purpose
of enabling them to provide for themselves
homes, nor to such savings banks as shall
have no stockholders or members except
depositors and no capital except deposits
These banks shall not receive deposits to
an aggregate amount in any one year of
moro than 81, 600 from the same depositor
Mr.. Allison moved to add to section 50
the words and nothing herein shall APP
ply to any corporation, company or asso-
citation having paid up capital of less
than 500, 600" Mr.. Hoar thought it
would be unfair to fix a minimum limita-
ton upon the capital stock of company
that should be subject to this tax. Some
corporations with enormous capital made
small profits, while others with small cap
ital stock made large profits. Withou5
acting on the amendment the senate went
into executive session and adjourned.
In the House.
The warm weather and the unin:ersst-
ing nature of the proceedings in the house
kept both members and sightseers away,
and the chamber Wore n somewhat desert
ed appearance. The deficiency bill occu-
pied the greater part of the day, tho main
fiDhtinp hpino the relative
to Indian depreciation claims. This, as
finally agreed to, carries an appropriation
of 800 000
a 4mber of bills and resolutions were
passed in the morning hour, the most i'm
nortant heinr a sonata hill to mnka Labor