The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-05-25
TAX CLAUSE DEBATED
Plat and Lindsay Stand Up
For the Corporations.
NOTHING BUT DISASTER
Predicted From the Operation
of Such a Measure.

Washington, May A.-That feature Of
ths war revenue measure placing q oax
OF ono quarter OF one per cent upon che
gross receipts of corporations was under
| discussion In the senate throughout che
days session. Incidentally the proposed
tax on bank deposits was adverted Co
! The principal speeches were delivered by
MIR. Plat (Rep.. Conn., and Mr.. Lindsay
( Oem- ,Ky.). both OF whom vigorously
attacked rfle corporation tax
! After the transaction of some routine
business. the war revenue measure was
laid before uhe senate. BY agreem emit
paragraphs rotating 20 corporation taxes
were under conSid eTatione, the pending
question being the ausendme1st by Mr.
McEnery (La-) exempt1ng from che cor
porauon tax OF 'hnrtred liability CONNER
cialls partnerships or corporations and
| companies, or corporate ns OF KNITTED fla-
bility conducting planting or farming
business. OF preparing for market prod
ucts of the soll.''
Mr. Allen (Neb.) thought if the amend
ment included the big sugar trust corpo-
ratfons II ought not to be adopted
Mr.. Daniel Va) expressed his oppo-
sit9on to the amendment, saying that he
Thought farming and planting interests
were sufficiently protected in the peHling
bill.
WOULD MAKE MEN IDLE.
Mr.. Frye Malne) declared that the pro-
posed tax on corporations was a good
scheme to encourage enlistment in the
United States army.
81 fully and firmly believe" said he,
that If this feature of the bin be enacted
into law one million men will be out of
work He maintained that the burden
OF the tax would fall upon the men and
women who work in the mills for it is
perfectly evident that, in the event the
tax Is levied that the mills must either
close entirely or reduce wages. In either
event strikes and misery would result
in industrial centers,'
Mr. Frye objected, too, to the tax on
bank deposits, because OF the burden
placed upon the deposits in savings banks.
He did not believe he said, that senators
from the south had any proper conception
of the savings bank as it was known in
New England. It was really a phiian-
thropic institution.
In conclusion. he again instanced the
dire consequences that would follow the
levydng Of the corporation tax.
Mr.. Platt Comm a member of the
finance committee declared that the cor
pOration tax was unnecessary, and he be-
lieved it unconstitutional. He argued that
the bill lraised enough revenue without
the corporation tax; that that tax was UNI
just and unequal in its burdens upon
business; that the measure would realize
more revenue than the people could afford
to pay in one year and that 1t surely
would make the government defenda Mt in
a series of lawsuits.
MIR. LINDSAY OPPOSES.
Mr.. Lindsay Qxy) in the course of an
! extended argument on the corporation tax
feature of the bin said it was impossible
for the government to levy taxes OF this
kind except on consumption and industry.
He maintained that it was the part of wis
dom for congress to enact only such leg
iSlation as would be beyond controversy
In this time of great emergency in the
country's history congress ought to give
to the government dollars, and not law
suits, with which TO conduct the war.
Mr.. Lindsay held that II the corpora
lion tax provision Of the pending bill
should become a law it would seriously
cripple the state of Kentucky as we'll as
other states of the country 1t would be
an unnecessary and officious interference
with state taxation by the federal gov
eminent.
In the course of a discussion of the
question of issuing bonds and legal tender
notes, Mr.. Lindsay noted the fact that
when the proposition 20 issue greenbacks
during the civil war was made to con-
gress by Secretary Chase, every Democrat
in the house voted against 1t, as well as
every Democrat in the senate. He intima-
ted that it was strange there should have
been such a great change in the opinion
of the Democrats of the house and senate
in view of the fact that Democrats are
now urging the issue of legal tender notes.
BETTER HAVE BONDS.
He argued in favor of the issue OF
bonds as provided for by the amendment
offered by the minority of the finance
committee.
Mr.. Lindsay maintained that the paper
money issued during the civil war was the
dearest kind of money. The largest part
OF ii bore interest at the rate OF or :
per cent. while the bonds proposed in the
pending bill called for only per cent
interest II this hin should become a
law as It stands, Mr.. Lindsay urged, the
Republican administration would redeem
the greenbacks issued under &c in gold
and would, II necessary, sell bonds under
the act of 1873 in order TO get gold. He
further maintained that by the proposed
issue Of legal tender notes the Demo-
Gratis IN favor OF such issue were simply
placing that power in the hands OF spec
ulators TO raid the gold reserve OF she
government.
This bin" said Mr.. Lindsay. "couter1-
plates thai we Will use all the money IN
the treasury except the one hundred
millions OF gold held as a redemption fund
and that we VII issue gTeenbacks. so
that Al the end Of the year all the money
IN the treasury viii be The hundred mill
ions Of gold"
THE ENDLESS CHAIN
Mr. Lindsay then presented the suppo-
sitious case Of a syndicate presenting
green backs a. the treasury - me fun
amount - the gold reserve and dTawing
II out and tylen THAI Of another syndicate
presenting another hundred million %
gresnbacks the next day.
..ys-i,a-. "a i--ui-eT lis the sold 70