The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1898-05-25
TAX ON CORPORATIONS.
Feature Of War Revenue Bill Dis.
crSsed in Senate.
TAX ON DEPOSITS INCIDENTALLY
ADVERTED TO.

ADV Eh1ED lVs
Platt of Connecticut and Lindsay of Ken
| lucky Attack the Corporation Tax
Mr.. Lindsay Also Attacked tho Pro-
posed Issue of Legal Tender Notes.
| Washington, May 24-That feature of
the war revenue measure placing a tax
of one quarter Of one per cent upon the
| gross receipts Of corporations was under
discussion in the Senate throughout to-
days session. Incidentally. the proposed
tax on bank deposits was adverted to.
: The principal speeches were delivered
by Mr.. Platt of Connecticut and Mr..
Lindsay of Kentucky, both of whom Wig
orously attacked the corporation tax.
The weight of the formers argument was
tarown against the tax on the ground
lthat it was unconstitutional because the
| tax was not levied alike upon all persons
Engaged in a particular line business. He
maintained that an occupation tax could
Ibe levied, provided that the conditions
were fair and equitable, but that the bust.
ness of corporation could not be taxed
simply because it was conducted by a cor
poratlon. To be equitable the tax must
be laid on the business whether it was
conducted by corporation, partnership,
firm or an individual.
MIR. Lindsay vigorously antagonized
the proposed issue of legal tender notes
and declared that it accumulated the ex-
listing menace to the gold reserve of the
treasury and WAS besides the dearest
| money ever devised. He held that such
an issue would be blow to the nations
financial credit. He also presented an
argument against the proposed corpora
ton tax, maintaining that If enacted
into law, it would breed batch of law
suits instead Of providing the govern.
| ment with ready money with which to
conduct the war operations
| Tomorrow the Senate will resume the
1 discussion of the pending measure an
hour earlier than usual the session be-
| ginning at II O'Clock. q
| Washington, May 24.-The Senate
chaplain's invocation at the ope ming of
the session today was hymn of thanks
giving for the 10Th birthday of 'tsthe
beloved Victoria, Queen of Great Britain"
The closing sentence Of the prayer was
as follows: "Knit the hearts of two peo-
pies who speak the English tongue even
more strongly together. that we may work
out the miehty problem Of the5highest
civilization for the whole earth. -
After the transaction of some routine
business, the war revenue measure was
laid before the Senate. By agreement
paragraphs relating to corporation taxes
question being the amendment of Mr..
McEnery of Louisiana, exempting from
| the corporation tax of "limited liability
commercial partnerships or corporations
and companies or corporations of limited
liability conducting planting or farming
! ducts of the soil Z"
MIR. Allen OF Nebraska thought if the
amendment included the big sugar corpo-
rations it ought not to be adopted.
| Mr.. Daniel Of Virginia expressed his
opposition to the amendment saying that
planting interests were sufficiently pro-
tected in the pending bill.
Mr.. Frye Of Maine declared that the
proposed tax ON corporations was q good
scheme to encourage the enlistment In
the United States army. II fully and
urlniy ue1leve, SAID ne, That II this
feature Of the bill be enacted into law one
million of men will be out Of work.
| Mr.. Frye maintained that the burden
of the tax would fall upon the men and
women who work in the mills for it was
perfectly evident that. in the event the
tax is levied, the mills mu either close
OF reduce md wages In either
industrial centres. Mr.. Frye objected,
too, to the tax on bank deposits because
of the burden placed upon deposits in
savings banks. He did not believe he
said, that senators from the South had
any proper conception Of the savings
1t was really philanthropic institu.
tion.
| He instanced the Androscogign savings
bank in his home city. The salaries Of
| the bank officers were less than $4,000
year and the institution was boon to
the working people Of the town. In con-
| olusion, he again instanced the direct
consequence that would follow the lew.
| ing of the corporation tax.
MIR. Platt of Connecticut, q member of
the finance committee, declared that the
corporation tax was unnecessary and he
believed it unconstitutional A fair esti-
| mate of the amount of revenue that would
House was, he thought, $1l5,00O 900.
That, with proper issue of bonds, would
supply ample funds for the conduct of
the war Mr. Platt thought the bond
feature proposed by the minority of the
finance committee was eminently fair.
The tax on corporations was unjust for
many reasons and he was satisfied it was
illegal and unconstitutional.
The pending feature Of the bill was a
special excise tax on corporations, pure
" as such, and 1t is the first time it has
ever been tried in this country.
In conclusion, Mr.. Platt said that the
bill raised enough revenue without the
corpol alton tax, that thnt tax was unjust
and unequal in its burdens upon busi-
ness; that the measure realizes more reye
nue. than the people can afford to pay in
one year; and that it surely would make
the government defendant in series of
law suits.
Mr.. Lindsay of Kentucky, in the course
| of an extended legal argument upon the