New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-06-27


United States that where State had contracted
to pay a certain sum OF money to a person for the
performance OF public function that money
could not be taxed
Mr. Vest said that he had made n brief state
ment In reply 10 Mr. H while Mr. Hoar not
In the chamber: and he did not 10 repeat II.
But Il seemed TO him that the decision OF the Su-
preme Court in the case referred 10 did not touch
the question at all II the Finance Committee
were to do what IL was now asked 10 do. all capt.
talists would invest In State. county and munich
pal bonds. which would become more valuable
than any other investment. and the general Gov
eminent would become crippled
Mr. Sherman advocated Mr.. IIilrs Amendment.
He held that Congress had not the power to tax
the securities of States; and that, even IL IL had IL
should not exercise II.
Mr. Teller Rep.. Col) thought that az an net
OF courtesy the States their securities should
be exempt: and for that reason. and also because
there was absolute necessity for the revenue
that would be derived from the tax Of State Sc
curities. he should vote for Mr.. Hilrs amendment.
Finally the discussion closed. and the vote was
taken on Mr. Hills amendment.
1t was rejccted-yeas. 81 nays. 30. All the Re
publicans voted for IT, as well three Democrats
Gray Hi and Pugh. Two Of the Populist Sen
ators-Anen and Peffer-voted against IT. Another
Populist Senator-Kyle-and Mr. Smith CDem.. ~
J) were paired with Republicans. Mr. Irby dem,
S ca voted with his party.
SECOND AMENDMENT OFFERED.
Then Mr.. Hi moved an amendment restricting
the exemption Of State bonds mot county or mu-
nicipaD. In argument which he made In sup
port of IT, re made disparaging alluson TO the
State Board Of Missouri. IN connection with the
TAX on vhiskey: and this resented angrily by
Mr. Vest who spoke OF the '1nstrumentalities OF
the slums of New York." and offered. after tariff
LEGISLATION was disposed Of. to pay his share OF
the expenses OF hiring a hail. 70 discuss the
question with the Senator from Ne~-Nork. II he
desired IT, AS to Mr.. Hills appeal TO him to agree
n his amendment 50 as make the bill more
popular Mr. Vest remarked that he would not
question the sincerity OF the appeal but tha il ne
wanted to murder the bill with the people Of
the United States he would put that amendment
unon II There was not a feature Of FEDERAL leBls-
lotion to-day more odious to the people than that
which exempted United States bonds from taxation.
and IL he had been In Congress at the time he
never would have supported II, even under inc
plea that IT was 70 maintain National credit Inc
idea that men could go into the market. as they
aid at that time and buy United States BONDS al "
or 70 cents on the dollar and then exempt 'hcih
,ror, State and Federal taxation, was a monStrous
idea The people had long since repndlated y;
and II he wanted to damn the Dill he "o"I' eA-
tend TO IL that principle
w nm replied TO Mr. Vest That Senator, he
said seemed to think that the only way he conid
a,suer his arguments was by some personal hlng
ot himself 1t made difference whether the
amendment was offered by gentleman VINO rep
resented the slums OF New-York or by one VINO rep
resented the State Of Missouri ne snpnlr no
initiate that Senator by descending 10 any PeiH'""'
reflections on him or on ms St8tc' .l a., an
You commenced It," Mr. Vest remarked III an
undertone
MIR. Hill. WAKES INDIGNANT
&c, d,d M, begin IT," Mr.. Hnl continued '"The
can,tor had chosen 70 Illustrate the point OF his
aroument by referring TO a double taxation on
wbskey. and naturally retorted that whi'key was
ro, one OF the instrumentahtes Of my state. ana
added good humoredly. that | supposed 1t was not
one Of the insrumentalties Of the state OF Missouri
And the goes out OF ms way 70 nie "tr IN
at that represent the s.uins o. ~ NJ rem
other day the charge against ne wa NJ ~ 80, =,
resented the millionaires OF New ork, anu now
President. represent al classes OF my Pop,e' an
those VINO reside in the lower districts OF N+"-l0Ih
city have Just as many rshss as If ssourI All
arc Interested In this leglsauon-t!Va, why nav
property and those who have not. ana no illhS Oh
the Senator unjust or uhhecee,aiN Sttuch ui1h
me on mis- part will lead me to Initiate his eXaILlpe
He says that other time We can 'hire a ha nal
and discuss this subject Ou. INA" p ~ no NJ en
10 discuss !. here and now NJ. president the sen
Nh he called upon over ana over %sa e;en4
this provision Of 1t. but ne VIII nave 70 defend ne
exemption OF all incomes under 5000 whereby CIT
izens worth from so O0O 10 $4,000 are eNenp nom
an income tax. The senator siurs state rights we
have already recognized the fact thht unier the
Constitution. under the law All LnIteu stats
bonds are exempt from taxation. ASK now 10 give
that same privilege. that same exception that same
Mr. Morgan Dem. Ala said that as he had not
been able 10 express his view on the question by his
Ss se by Seh the Of the rnei Of
the powsr OF m sad %" me constitutional au
thoriv OF the Government or the United states ana
OF the states respectively ana ihe proper
the proposed invasion OF the rights OF Alabama lie
did Il with as much soemnty and feeling ana with