The times., 1898-05-24
RAISING MONEY TO FIGHT
Discussion ofthelWar Revenue
Bill in the Senate.
VERY LITTLE EPRGGRESS MADE
Senator Chiffon Argues That the
Future Should Not be Durdened
with This Expense-Greenbacs
Versus Bonds as IL Wnr Measure
Tax on Corporations.

Immediately after the conclusion of the
morning business in the Senate yesterday
Mr.. Allison called up the war revenue bill,
and Mr.. Chiffon took the floor, addressing
ing himself to the bill as a whole.
There should be no 'go-lucky, 60
easy course" said he, ''in raising the
necessary money for the war in which we
are now involved, and it would be child
ish for us to burden the future with this
expense"
Mr.. Chiffon thought the estimates of
both the Army and Navy Departments
were too high. but he was willing to ac-
cept them without contradiction. The
only question remaining was the way this
money should be raised. He declared
that a public confession had been made
by the senator in charge of the bill (Mr
Allison) that the so-called Dingley tariff
bill had proved a failure.
Mr.. Spooner here wanted to know what
the Dingley bill had to do with this
measure.
Mr.. Chiffon said that open confession
was good for the soul, and that it was
very important to have these things be-
fore US. as 1t would be necessary to pro-
vide for that deficiency.
In his opinion the revenue which would
be derived from the tax features of the
bill would amount TO 20 per cent more in
the case OF an issue of the proposed $780,
O0OO 600 in greenbacks than 1t would in ths
issuance of the $500, 900 600 in bonds, bear
ing interest. as the latter transaction
would result in calling in the circulating
medium and necessarily curtaIl the vol
ume of business.
At the conclusion Of Mr. Chilton's
speech an amendment was offered to the
section taxing corporations. exempting
corporations engaged in farming or pre-
pairing for market productions of the soil
The amendment was temporarily passed
over.
Mr. Lodge then addressed the Senate on
the corporation tax section opposing It.
He maintained thatif corporations should
be taxed by the national government 1t
would result in making it necessary for
the State governments to reduce tha
amount of their tax, or crush out the cor
pOration. Another objection TO the sec
lAJ4A- AA4 MI I-DuSES opinion. was tlat IL
taxed corporations but not partnerships.
Mr.. Turley urged that the benefits pos
sessed by corporations in not being he'd
personally liable for their credit and on
account Of their perpetual life were such
as to make it fair that they should bear q
small special tax
He cited the railroad corporations of
the country as a class Of this kind and
stated that according to the best statistics
he was able to procure, the railroad prop
erty of this country constituted from
II TO 16 per cent OF the entire wealth of
the country. while they paid only to
per cent of the taxes.
Mr. Turley went into very exhaustive
argument as to the legal right of the
Federal Government TO tax the receipts
Of corporations. He stated that the Su-
preme Court, in its decision on the in
come tax had sustained a federal tax on
| railroads of a certain per cent on their
net receipts. The court held that such
| tax was not a tax on incomes but an ex-
| else tax pure and simple on this de-
! cision he held that II was just as legal
! TO tax the gross receipts as the net re-
| ceipts, and declared that if the proposed
! corporation tax were adopted il would be
sustained by the courts.
Mr. Turley then turned his attention
| briefly to the issuance of greenbacks pro-
! posed in the bin and said that no one
| would deny that it was the most economi-
| cal way to raise the means to carry on
! the war. Its advantages had been dem
onstrated during the last war. The
| amount proposed to be issued, he de-
clared, would increase the amount of cir
! culating medium about S2.G0 per capita
| or make il a total of from S23 to S24 per
capita. This. he thought, need not fright
| en- anyone as in 1892 Il was s2f.44 per cap
! ita and no one then seemed TO think we
| had too much money, except those who
wanted to corner it.
The amendments agreed to by the com
mittee on Saturday We're explained briefly
| by Senator Allison, but no action was
| taken on them by the Senate.
The first amendment proposed by the
/ committee said he, is to make a uniform
! tax on insurance agents of $l2 per an
mum. Then there are several relating to
| tobacco. but only two of these are of any
on tobacco shall be u cents per pound in
! stead of Is IA cents, as at first reported;
the tax on cigars is also changed from
| $3.50 to $3.50. There are also a series of
| amendments providing that pounds may
| be used instead of dollars in collecting the
| tobacco tax. This is done TO facilitate
| the work of the collector, as the reports
are all made in pounds.
Schedule B is amended so as to let
all mineral water go free from taxation
| except such as are medicinal. All food
! products are also excluded from this list.
These amendments were ordered print
| ed and will doubtless be acted on today.