The herald., 1898-05-25
WORK ON WAR MEASURE
REACHES CONFEDERATION OF
CORPORATION TAX
OPPOSITION WAS EXPECTED
And It Matsrialixed With Very Great
Promptitude and Energy-Work
in the House
Associated Press Special Wire

Associated Press Special Wire
WASHINGTON, May A-Ths senate
chaplain's invocation at the opening Of the
session was hymn Of Thanksgiving for the
18th birthday Of 1.-THE beloved Victoria.
queen Of Great Britain" The prayer was
- follows: "Oh, thou Prince Of All Kings,
we come into thy presence with hymn Of
thanksgiving as we celebrate the 18th
birthday of her gracious majesty, the
queen Of Great Britain and Ireland and
empress Of India, whose conduct and char
acter as daughter. wife. mother. friend. as
well as gracious sovereign. has won and
kept for her the loyal devotion of her own
people and the reverent regard of all true
people of whatsoever name and race
around the globe. We pray thee to spare
her life. Grant her health. maintain the
eminence OF her sovereignty. And when
the departure hence shall come may she 60
IN peace. comfort and joy. Knit the hearts
of the people who speak the English tongue
more strongly together that we may work
out the mighty problem of the highest civ
NiSation Of the whole earth"
A War Measure
After the transaction OF some routine
business the war revenue measure was laid
before the senate. BY agreement para
graphs relating to corporation taxes were
under consideration, the pending question
being the amendment Of McEnery Of
Louisiana, exempting from the corporation
tax of Limited liabilities" commercial
partnerships or corporations and compa-
MES or corporations of limited liability con-
Quoting planting or farming business or
preparing for market products of the SOIL"
Allen of Nebraska thought If the amend
ment included the big sugar corporations 1t
ought not to be adopted.
Daniel Of Virginia expressed his opposi-
fion to the amendment, saying that he
thought farming and planting interests
were sufficiently protected in the pending
bill.
Frye Of Maine declared that the DO
posed tax on corporations was good
scheme to encourage enlistment in the
United States army. II fully and firmly
believe" said he, that If this feature of
the bill be enacted into law. 10000 will be
out Of work.
He maintained that the burden Of the
law would fall upon the men and women
who worked In the mills, for 1t is perfectly
evident that in the event the tax is levied
the mills must either close entirely or re-
duce wages. In either event strikes and
misery would result in industrial centers.
Frye objected to the tax on bank deposits
because of the burden placed upon the de-
posts in savings banks.
In conclusion he again instanced the a.
rect consequences that would follow the
levying of the corporation tax. Platt of
Connecticut, member Of the finance
committee, declared that the corporation
tax was unnecessary as he believed It un-
constitutional.
Lindsay of Kentucky In the course of an
extended legal argument upon the corpora
ton tax feature Of the bill said it was i'm
possible for the government to levy taxes
of this kind except on consumption and on
industry.
Lindsay held that II the corporation tax
provision Of the pending bill should become
q law 1t would seriously cripple the stae
Of Kentucky. as well as other states of the
country.
In the course Of discussion on the ques-
ton Of issuing bonds and legal tender notes,
Mr.. Lindsay noted the fact that when the
proposition to issue greenbacks during the
civil'war was made to congress by Secretary
Chase every Democrat in the house had
voted against it as we'll as every Democrat
In the senate. He said it was strange there
should have been such a great change in
the opinions of the Democrats in the house
and senate In view of the fact that Demo-
Gratis are now urging the issue of legal
tender notes.
This BILL" said Mr.. Lindsay, "contem-
Mi tac Hot mo v.,ily,
treasury except the 500 900 900 of gold held
as redemption fund, and that we will issue
greenbacks. so that at the end of the year
all the money In the treasury will be the
hundred million Of gold"
Mr.. Lindsay then presented the SUPPOSE
titious case Of syndicate presenting green
backs at the treasury to the full amount of
gold reserve, and drawing 1t out, and then
that OF another syndicate presenting
another hundred millions of greenbacks the
next days.
Where" he inquired. sis the gold to
come from to meet the second demand?"
This question precipitated coloquy upon
the whole financial question, which was
participated In by Mr.. Lindsay, Mr.. Cock
rell Of Missouri, Mr.. Teller Of Colorado and
Mr.. Stewart Of Nevada.
Mr.. Lindsay maintained that the syndi-
cate would raid the gold reserve OF the gov
eminent. and that II the legal tender totes
were issued they would certainly be re-
deemabIe in gold. and II re-issued would
again be redeemed In gold.
I'VE shall have an opportunity" said Mr..
.Cockrell. ITO test the patriotism of holders
Of greenbacks and see whether they will
raid the treasury to obtain its gold. ia
like to know whether they are such un-
adultetated patriots"
1.-THE difference between me and the sem
,ator from Missouri" replied Mr. Lindsay.
"is that he still believes the gold raiding
syndicates are patriots and do not. They
will take every advantage offered them,
even in time Of war;
In conclusion, and partly In answer to
questions put to him by Mr.. Tillman of
South Carolina, Mr.. Lindsay said: "The
war will not 60 for two or three years unless
we break down our credit at the outset. The
issue Of legal tender notes proposed here
would have that effect"
''Well," interrupted Mr.. Tlllman, Gin
what kind Of money viii the bonds you pro-
pose to issue be paid for?"
1.-THE bonds issued" replied Mr.. Lindsay.
twill be sold for money as good as gold
and the funds SO raised will be used to nav
the boys who are to be sent to Cuba to face
Spanish bullets and yellow fever, Our