The record-union., 1898-05-29
Such Was the Decision Reached in
the Senate Yesterday,
The Amendment Offered by Democrats Be-
Ing Laid on the Table.
Was the First Decisive Test on
Amy Feature of the Pending
War Revenue Measure, and Re-
suited in It's Defeat by a Vote


discussion which has lasted almost two
weeks, the Senate this afternon reached
the first decisive vote on any feature
of the pending war revenue measure
The bill had been under consideration
four hours and a half to-day, when
Aldrich of Rhode Island, one of the Re-
publican members of the Finance Com
mite, entered a motion to lay the cor
poration tax amendment proposed by
the Democratic majority of the commit
tee on the table. 1t was realized that
this was the first test of strength of
the elements in the Senate, and the roll
call was followed with deep interest
The result was decisive. The amend
ment was laid on the table-41 to -.
German then proposed his substitute
providing for tax on corporations, but
a vote on that was not reached.
Early in the session to-day the Sen
ate discussed in a desultory way the
corporation tax proposition, with a view
10 getting a vote upon it. Subsequent
ly Daniel Dem) of Virginia delivered
an extended speech in which he took
strong issue with those who had con-
tended that the tax on corporations was
unconstitutional WOlcott (R.) of Col
orado, followed in a notable speech sup
porting the propositions of the Repub-
lican minority of the Finance Com
mittee.
By vote of 33 to 81, the Senate de-
cided to adjourn until next Tuesday.
After the transaction this morning
of some routine business the Senate
resumed consideration of the war rev.
enue measure. The Sergeant-at-Arms
had to request the attendance of alb
sent Senators, and it required twenty
five minutes to secure a quorum.
Allison said he hoped a vote could
now be secured on the corporation tax
proposition.
The question was on the amendment
offered by German of Maryland, which
provides for a special excise tax upon
all corporations whose gross receipts
are more than $2J0,000 per annum of
One-half of one per cent.
Faulkner of West Virginia suggested
to German that he accept an amend
ment making the tax one-quarter of
one per cent.
Turpie Of Indiana, while not specially
objecting to the proposed amendment of
Faulkner, said Germans amendment
ought to provide for a proper penalty.
He maintained that mere fine would
be of no avail in the circumstances, as
the corporations would simply pay the
fine in cases where it was less than the
tax. He strongly urged that the pen
atty ought to include not only fine.
but Imprisonment for not less than six
months.
Faulkner urged the acceptance of his
amendment. as the Finance Committee
had carefully considered the question,
and had decided that one-quarter of
one per cent. was a reasonable and
proper tax. He pointed out that the
tax of one quarter of one per cent. upon
the gross receipts was quite as high as
that of two per cent. upon net receipts,
as provided for in the law of 1894.
Jones of Arkansas, a member of the
Finance Committee, said he would be
willing to accept Gorman's amendment.
if it were made to apply as a substi
tute only for that paragraph of the bill
taxing railroads, street railroads and
other transportation companies. He
objected. however, to its substitution
for the paragraph levying a tax upon
all corporations.
German presented an argument in
favor of his amendment.
Lindsay of Kentucky suggested that
for German entirely to exempt from
taxation $250,000 of the receipts of
railway corporations. If the receipts did
not reach $2j0,O00 they would not be
taxed.
German had no particular objection
to the suggestion offered by Lindsay.
In reply to the suggestion that the
rate of tax proposed should be reduced
German declared that the corporations
and their friends were making a great
mistake, in his judgment, in endeavor-
ing to escape from the proposed tax
and to evade their just and equitable
share of the burdens of war
Daniel of Vorgina said that while
he had no desire unduly to delay the
passage of the pending bill, he
thought a full discussion of its i'm
portant provisions ought to be had.
He made an elaborate presentation of
his views upon the respective State and
Federal powers of taxation as put in
question by the pending BILL contend
ing that taxation upon corporations
was warranted fully by the law as eX-
listing and interpreted by the courts.
In the course of Daniels speech the
Vice. President laid before the Senate
a communication from the Ohio Legis-
lature announcing the report of the
committee of the Senate in the inves-
tigation of the charges of bribery
against the junior Ohio Senator,
Hanna.
The communication was referred to
the Committee on Privileges.
Daniel presented an argument in IA
vor of an income tax.
WOIcott of Colorado member of the
Finance Committee, spoke in advocacy
of the position taken by the Republican
minority of the committee He said it
was a source of great qualification to
him that no political turn had been
given either to the bill itself or to the
debate thus far Until the Hawaiian
annexation amendment had been Of
fered to the bill not one feature had
been suggested that was not perfectly
relevant TO it. He rejoiced that the
amendment had not been offered by a
Western Senator. who certainly would
have been charged in doing so with an
effort to obstruct the bonding measure.
Whatever might be the individual
opinions of Senators upon the Ha
waiian question. it was to him perfect
" clear that it ought not to have been
taken on as a rider to the revenue bill.
Wolcott referring to the desirability
of placing the Government in excel
lent financial condition at this time,
said that he was satisfied that, with
the exception Of Great Britain. no Eu-
ropean country could conduct war with
the United States which wound be so