New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-05-24
PROCEEDINGS OF CONGRESS-.
THE REGULAR REPORT.
SENATE. >.,,r
OF THE WAR REVENUE
BILL RESUMED.

session OF the Senate communication was
ce,ved from Secretary Alger. together WIFI ~" Nv
draft OF a bill providing for A gradual inc'e"'e =.
the number Of officers Of the Corps OF Ehs'
The hill provides that this corps shall hereai'e.
consist of chief Of engineers. with the ra"N u
brIgadier- general colonies. II leu'eha"'
% majors IS captains. 30 first lieutenahts' l.
ueutenants and the battalion OF engineers 81"
promotions shall be made by seniority Inc eo'
munication and the bill were referred 10 '"e N
mittee on Military Affairs.
After the transaction OF some routine DusinesS
Mr. ALLISON (Rep. Iowa. called up the wal
Reyenle bill. He announced that wheh the 0e"a'
adjourned on Friday the pending question was o'
the amendment offered by Mr.. McEnery remo'N'e
the proposed corporation tax from certain classes
OF corporations which were such IN name only
lie added that the reading OF the bill had been
con,leted and that an agreement had peeh
reached for the convenience of the senate 10 con"
slider first the amendment providing lot eNo's
taxes on persons, firms companies ana CORP
tons That amendment. Mr. Allison 'housn|
ought be disposed of before the re"''''''''e f
Of the bill taken up.
MD cJtrrTON OPPOSES A BOND ISSUE.
Mr.. chiffon Dem Tex delivered an extend.
ed and carefully prepared speech on the se !,
features OF the War Revenue bill. He expTesseu
the opinion that the vast amount or money pio
posed to be raised would not be needed ior III.
raval and military operations before congress INV"
again in December. He did not believe thereio'o'
,bat u was necessary 10 provide so large an
amount for the conduct OF the war. lie expresseu
his willingness however, to Join with o.hei' ~
furnishing ample resources for the conduct OF 'ne
wor until July l. 1899 He thought 1t woud De ="
rnistake TO appropriate n greater a"o"'t '
s25 900 900 a north for war purposes.
Discussing the alleged failure Of the D'nsiey
lay IA nroyde sufficient revenue to meet the or"'-
nary expenses OF the Government, MT Chii'on was
INTERRUPTED by Mr.. WILSON CRep., WASN'T VINO
said he had Just received letter from coiecto'
NJ customs at an important point. In wnicn 'ne
statement made that the war ma" nav
serious inroad on customs receipts lmpor'a''o
had fallen off materially since the war began.
Mr. Chiffon thought all such statements pureiy
con,ectural It was notorious. he said tnat the
Dineev law had failed OF expectations as reVe-
nue-producer. ,
well" inquired Mr. SPOONER Rep.. WIS.,
what has the Dingley law to do with the passas7
by the Senate OF this War Revenue measure
Mr. Chiffon replied that the DIngey law ana the
handling hill had a near relationship. He desired
70 show that the receipts from the Dinghy Ia"
were not sufficient 10 meet the Governments eN-
penses. ,,.,
Then YOU are making n speech purely for politi-
cal effect" suggested Mr Spooner
IT canno. foretell what Its effect may he re-
nl,ed Mr. Chiffon He then reviewed that part OF
Mr. Allsons opening statement which dealt with
tho amounts likely 70 be raised by the measure as
reported TO the Senate He believed that MT All
sons estimates were generally 100 high ana pre-
sented estimates OF his own on the various So'eu
,lcs Of the bill the total OF the probable receipts
being according 10 Mr.. Chiffon. SIl,rD.o5o lie
thought this sum was not too large. ior ne ocneVeo
every generation ought to pay its own way.
In the course OF Mr. Chilton's discussion or the
proposed corporation tax. Mr.. Spooner inquired II
he proposed to tax tho business OF the corporation
Itself -
Tho tax We propose" replied Mr.. Chiffon. rs
An occupation tax on tho business Of the corpora
ton n however. the Senator desires 10 call II
franchise tax III defend Il such"
In other words" said Mr.. Spooner you 40 not
tax the business but you tax the corporation doing
tho business simply because II Is a corporation
or course admit the right OF Congress 20 leVyya
business or occupation tax" Mr.. Spooner said IT
was unfortunate that IN response 10 the Govern
rnens request for funds 20 conduct the war opera
lions. propositions were being made by Congress TO
tender not ready money. but a baton OF LAWSUITS.
Mr. chiffon expressed the opinion that next 10 a
tax on incomes and corporations. the succession
tax contained more elements Of justice than any
other feature OF the pending bill He defended the
nropos,t,on of the majority OF the Finance Com
rnI.,ee 10 issue certificates against the silver
seignorage.
THAT issue would amount" inquired Mr.. AL
you say?
Yes that Ia true" replied Mr. Chiffon.
WHY NOT BE HONEST7
ut 4. evident" said Mr. Aldrich. ~ the present
pr,ce OF silver be accepted. the profit on this
called srlgniorage would be far greater than si2,-
oDo 90 II you going to issue fiat money. why
do YOU proceed 10 do Il without the pretence or
issuing money against a supposed seigniorage?'
Taking a silver certificate from his pocket, Mr..
Adrch read from It's face the statement, that there
were on deposit IN the Treasury blank silver dol
IN hes demand
certificates are issued against the so-called seign-
forage he continued. there will not be one single
silver dollar deposited in the Treasury. There
have been none deposited. and there can be none
In tho very nature of things. Why should we not
issue nat money and call IT such?'
Mr. Aldrch said that in accordance with the
express terms OF the law the Government stood
pledged to hold this so-called segniorage In the
Gates and It could not properly he touched until
those certificates had been taken care OF.
Tho senator must know. there is nothing Of the
sort he suggests In the law; We know precisely
how much silver II VIII require 10 com n specified
In dollars"
MR. LODGE on CORPORATION TAXES
Mr.. Chiffon was followed by Mr. LODGE Rep..
Nass) who addressed himself particularly TO the
proposed tax corporations. He held that the
fact that many States now levied tax or cor
porations an argument against the proposed
tax TO be levied by the National Government rather
than In favor OF H. The taxation OF corporations
by States eminently proper the corpora
tons received from the States the franchises they
held. II the corporations were taxed by both the
State and the National Government II would result
In shutting many OF them out OF business. Ulti-
matey tho States would bo forced to place aidi-
tional burdens real estate thus further opprcss-
ing the very people whom 1t was the professed de-
slra OF the cOrporation-tax advocates relieve.
For tho United States to tax corporations would
result in the destruction OF great Of reve-
nue. 10 the States. Mr.. Lodge objected the cor
poratlon tax because II was unfair and inequitable
All partnerships were exempted while all corpora
lions were taxed The idea OF the tax as Mr.
Chiffon had explained. Mr. Lodge said was TO
place a burden on privilege the United States
Government did not confer.
Mr. ALLEN pop. Neb) inquired whether the
tax would not eventually come out OF tho con-
slimers OF the products OF the corporations
Mr. Lodge replied that II the corporatIons ADDED