The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-05-29
FIRST DECISIVE VOIE
On the War Revenue Bill
Comes in the Senate
ON THE CORPORATION TAX
Democratic Amendment Ia
bIed BY Al to 81.

| ing war revenue measure. The bill had
been under consideration four hours and
| a half today when Mr.. Aldrich of Rhode
Island. one of the Republican members OF
the finance committee, entered a motion
TO lay the corporation tax amendment
| proposed by tht Democratic majority of
the committee Oh the table. 1t was real
ICED that this was the first test of strength
OF the opposing elements in the senate
and the roll call was followed with deep
interest The result was decisive. The
amendment was laid on the table, IL to q.
Mr.. German Dem. Md then proposed
his substitute providing for tax on cor
poratons. but vote on that was not
reached Early in the session today the
senate discussed. in a desuItory way, the
corporation tax proposition with view
of getting a vote upon it. Subsequently,
Mr.. Daniel, Dem, Va,) delivered an ex-
tended speech in which he took strong
issue with those who had cOntended that
the tax on corporations was unconstitu-
tional Mr.. Wolcott (Rep., Col) followed
in notable speech supporting the propo-
sitions of the Republican minority of the
finance committee. BY vote Of SO to 81
the senate dtcided to adjourn until next
Tuesday.
BILL TAKEN UP PROMPTLY.
After the transaction this morning of
some routine business, the senate resumed
consideration Of the war revenue bill.
The sergeant-at-arms had to request the
attendance of absent senators, and 1t re-
qured twenty-five minutes to secure a
quorum.
Mr.. Allison said he hoped a vote could
be secured on the corporation tax propo-
siton.
The question was on the amendment Of
fered by Mr.. German CMd), which pro-
vided for a special excise tax upon all
corporations whose gross receipts are
more than $685. 900 per annum of one-half
of one per cent.
Mr.. Faulkner CIV. Va.) suggested to Mr..
German that he accept an amendment
making the tax one-quarter of one per
cent.
A PROPER PENALTY.
Mr.. Turpie Qnd), while not especially
objecting to the proposed amendment by
Mr.. Faulkner, said Mr.. Germans amend
ment ought to provide for a proper pen
atty. He maintained that a 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 penalty
ought TO include not only a fine, but i'm
prisonmtnt for not less than six months.
Mr.. Faulkner urged the acceptance of
his amendment, as the finance committee
had carefully considered the question and
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 per cent
upon net receipts as provided for in the
law of "a.
Mr. Jones (Ark), a. member Of the fl
nance committee. said ne would be will
ing to accept Mr.. Germans amendment
if it were made to apply only as substi-
tute for that paragraph of the bill taxing
railroads. street railways ana other trans
portation companies He objected, how
ever. to its substitution for the paragraph
levying a tsv upon all corporations.
Mr.. German presented an argument in
favor of his amendment.
A QUARTER-MILLION LIMIT.
Mr.. Lindsay Of Kentucky suggested
that, as a proposition of law, 1t might be
well for Mr.. German to exempt entirely
from taxation S25O,0O0 of the RECEIPTS Of
every corporation. II the receipts did not
reach s25O,O0O they would not be taxed.
Mr.. German had no particular objection
to this suggestion offered by Mr. Lind
say. In reply to the suggestion that the
rate Of taxation proposed be reduced. Mr..
German declared that the corporations
and their friends were making a great
mistake. in his judgment, in endeavoring
TO escape from the proposed tax and to
evade their just and equitable share Of
the burdens OF war.
CONSTITUTIONALITY.
Mr.. Daniel (Va.) said that while ne had
no desire unduly 10 delay the puassage
OF The pending bill. he thought a full dis
cussion Of its important provisions ought
to be had. He favored the tax upon the
gross earnings of corporation and ex-
pressed his regret that objection to It on
the ground OF its suspected unconstitu-
tionahty had been made. These objections
ne desired TO answer by citations OF au-
thoritles.
He made an elaborate presentation of
his vitws upon the respective state and
federal powers OF taxation as put il quss-
ton by the pending bill, conterdiug that
the taxation upon corporations was war
ranted fully by the Jaw as existing and
interpreted by the courts.
THE HANNA DOODLE CASE.
In the course of Mr.. Daniels speech the
vice president laid before The senate a
communication from the Ohio Legislature
announcing rhe report Of the Ohio senate
committee on the investigation Of charges
OF bribery against the junior Ohio sena-
tor. M Hanna The communication was
referred % the committee on privileges.
Mr.. Daniel presented an argumtnt in ia
vor Of the income tax.
WODCOTT on HAWAII
Mr.. wolcott OF Colorado. member OF the I.
finance committet. followed II advocacy (
OF the position taken by the Republican .
minority II the committee He said it
was source OF great qualification 10 him +
that no political turn had been gwen !
either 10 the bill Itself OF to the debate /
thus far.
Until the Hawaiian annexation amend /
ment had been offered 20 the bill not one 4
feature had been suggested ,ha, was not .
perfectly relevant 10 x. He -s5oiced that !
the amendment had not been offered by a
western senator, who certainly would
have been chargtt. IN doing So with an
effort 20 o5stulct the pending measure .
Whatever might be the individual op.n- i
ions o. senators upon me Hawaiian quss- +
ton. II was 20 him perfectly clear that .
Il ought not 70 havt been tackled on as q
rider 70 the revenue biz
EUROPEAN. COMPLICATIONS.
Mr. wolcott. referring 20 the desirz h.E;y /
Of placing the government II excellent 4