The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-03
TAX ON SPECULATION
AN IMPORTANT AMENDMENT TO THE
TARIFF BILL PROPOSED.
Section Prepared by Senator Lodge
Providing for "a Tax on All Issues
and Transfers of Bonds and stocks.
WILL BE STRONGLY OPPOSED
BOTH IN THE SENATE AND BY LOB
By OF NEW WORKERS.
The Tax Expected TO YieIa About s15,-
100000, and to Make Up for the.
The Tax Expected to Yield About S15,-
100000, and to Make Up for the.
Loss on Tea and Beer.
NO TIME FIXED FOR Fl VOTE
DEMOCRATS AND OTHERS DELAYING
PASSAGE OF THE TARIFF BILL.
Retaliation and Reciprocity Sections
Agreed to Yesterday-SenatOr
ThurstOn's ANTITRUST Bill.
Special to the Indianapolis Journal.

Special to the Indianapolis Journal
WASHINGTON, July 2.-The Senate
seems to have struck a snag in tariff bin
progress. Three or four things have
cropped out which may prolong debate for
week or more. The Democrats are de-
termined to force another antitrust fight,
and are loaded with big talk on that propo-
sition. Senator Lindsay's amendment to
reduce the whisky tax will provoke a long
debate it is believed, Lindsay, Teller and
others being primed for extended speeches.
But more important than either of these
is the proposed Lodge amendment to i'm
pose a tax on speculation by compelling
the use of revenue stamps on bonds and
shares of stocks on every transfer The
proposed tax will be cents per share, or
50 on every hundred-share block of stock.
On a basis of last years aggregate sales
the business of the New York Stock EX
change alone would yield an annual reve-
nue. of about $S,000,000 and a total revenue
from all exchanges and cities of possibly
$15, coo coo. New York will send down big
lobby to fight the proposition. The amend
ment hedges against lodging the tax by
provision inValdating sales unless stamps
are affixed. Senator Lodge says the tax
will be self-collecting, and that it will also
be a deadly blow at bucket shopping" and
blackboard transactions Mr.. Lodges
amendment also provides for a tax of
cents on each share of $100 or fraction OF
the face value of capital stock or of bonds
on their issuance. United States and State
bonds are exempted, are Individual
bonds to secure mortgages and also the
stock and bonds of mutual benefit building
associations. The amendment has been
submitted to the Republican members of
the judiciary committee and approved by
them as to form
An Associated Press dispatch says: THE
provision for a tax on stock and bond
transactions in connection with the tariff
bill, which was agreed on at the caucus of
Republican senators last night, was sug-
gested by Senator Lodge, and grew out OF
a statement that, with the tea and beer
provisions withdrawn, the tariff bill was
likely to fall short to the extent OF $lo,-
100000 in providing sufficient revenue 10
meet the demands of the government. The
suggestion as made by MG Lodge was that
a tax of 2 cents per share should be levied
on every share of stock sold az :. stock eX-
change or at any other place, and that
similar tax of cents should be collected
on all bonds sold on the stock exchange or
to impose the extra tax on beer, but it also,
at the suggestion of Senator Pritchard, re-
ceded from the proposed changes on man
ufactured tobacco, including snuff and
smoking tobacco, leaving only the provi-
sions in regard to cigars and cigarettes Of
the internal revenue features of the bill A
decision was reached to make the rate on
cigarettes double that provided by the
finance committee, sor 81 per thousand on
those weighing less than three pounds per
thousand and increasing the rate for those
of larger size.
A dispatch from New York says: THE
news that a tax on all stock and bond
transactions was contemplated by the gov
ernment was discussed in Wall street to-
day. The more conservative houses, es-
pecially those dealing in investment securi-
ties, look with d.sfavor on the scheme
President Eames of the Stock Exchange,
said the proposition was i'll advised. He
had no knowledge except in a general way,
he said of the action of the republican
Senate caucus, and until he had more def
mite information on the subject he would
say nothing except TO express the hope that
the proposed movement would fail. John
T. Terry, a director of the Western Union
Telegraph and Manhattan Railway Com
panies, said that he doubted the consttu-
tionality of the measure, and thought it
unfair and uni lst in every way. Mr.. Terry,
who has been steadfast Republican since
the formation of the party said that it
seemed to him that the party was rushing
headlong to ruin when 1t advocated such
legislation as this. The governors of the
Stock Exchange have sent protest to
Washington"
dew i,,tro5,cad
bin the provision prepared as an amend
ment to the tariff bill by the judiciary
committee to prohibit trusts. The amend
ment was based upon a suggestion made
by Senator Nelson, but was perfected by
a subcommittee consisting of Senators
Thurston, Davis and Spooner. 1t was ex-
pected up to Wednesday night that it
would be introduced as an amendment to
the tariff BILL but when presented to the
finance committee Wednesday evening that
committee suggested the inadvisab biiity of
saddling the trust question on the tariff,
saying it would be preferable to have the
two questions treated Independently of each
other There were fur.her conferences
among senators yesterday, and as d conse-
quence of these and of the recommends
ton of the finance committee the judiciary
committee decided not TO present the bill
to the caucus as an amendment to the
tariff Senator Thurston the only
member standing for the coupling of the
two questions.
Senator Lindsay has proposed an amend
ment to the tariff bill by which an inquiry
win be made by the President into the ex-
clusion of American tobaccos from France
and Spain under the Regie contracts.
renort apgarently wei founded. Is
afoat tonight that as soon as the tariff
bill is sent to aeconference committee the
Senate and House conferees will take