The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-05-25
United Opposition of Republicans
and Gold Democrats.
ATTACKED BY LINDSAY
SHOULD BORROW MONEY RATH-
Err THAN TAX CORPORATIONS.
opposed to Greenbacks, But Could
Not Say What Kind of Money
Would Be Given In Exchange For
Bonds-Frye and Plat Also Speak
For the Corporations.


the war revenue measure placing a tax
of one-quarter Of l per cent. upon the
gross receipts of corporations was I'M
der discussion in the senate throughout
today's session. Incidentally the pro-
posed tax on bank deposits was advert
ed to. The principal speeches were de-
Hvered by Mr.. Plat (Rep., Comm and
MI Lindsay (Dem., Ky.), both of whom
strongly attacked the corporation tax.
After the transaction of some rOu-
tine business the war revenue measure
was laid before the senate. By agree.
ment the paragraphs relating to cor
poration taxes were under considera-
ton, the pending question being the
amendment of McHenry (La.) exemp pit
ing from the corporation tax limited
liability, commercial partnership or cor
porations and companies, or corpora
tons of limited liability conducting,
planting or farming business or pre-
pairing for market products of the soil. -
Mr.. Allen of Nebraska thought if the
amendment included the bis sugar cor
porations it ought not to be adopted.
MI. Daniel (Va.) expressed his OPP
position to the amendment saying that
he thought farming and planting in
terests were sufficiently protected in the
pending bill.
Mr.. Frye of Maine declared that the
proposed tax on corporations was
good scheme to encourage enlistment
in the United States army. Il firmly
believe" said he, that if this feature
of the bill be enacted into law, 1000, 900
men will be out of work"
De maintained that the burden OF the
law would fall upon the men and wom-
en- who worked in the mills, for it is
perfectly evident that in the event the
tax is levied 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 de-
posits because of the burden placed
upon the deposits in savings banks.
He did not believe, he said, that sena-
tors from the south had any proper
conception of the savings bank as it
was known in New England. 1t was
really philanthropic institution. In
conclusion he again instanced the di-
rect consequences that would follow the
levying of the corporation tax
Mr.. Platt of Connecticut, member Of
the finance committee, declared that
the corporation tax was unnecessary
and he believed it unconstitutional. He
argued that the bill raised enough rev.
enue without the corporation tax; that
Shat tax was unjust and unequal in its
burdens upon business that the meas
-
the people could afford to pay in one
year, and it surely would make the
defendant in a series of
lawsuits.
LINDSAY OPPOSES THE TAX.
Mr.. Lindsay Of Kentucky, in the
course Of an extended legal address
upon the corporation tax feature of
the bill, said it was impossible for the
government to levy taxes of this kind /
except on consumption and on industry. /
He maintained that it was the part of
wisdom for congress to enact only such (
legislation as would be beyond contro- /
Versy in the courts. In this time of (
great emergency in the countTy's his I
tory congress ought tc give TO the gov /
dollars and not lawsuits with /
which to conduct the war.
Mr.. Lindsay held that if the corpor- 7
alton tax provision of the pending bill =
should become law it would seriously (
cripple the state of Kentucky as well /
as other states of the country. 1t (
would be an unnecessary and officious I
with state taxation by the :
federal government.
In the course of a discussion of the !
question of issuing bonds and the legal
tender notes, Mr.. Lindsay noted lie
fact that when the proposition to issue
sreenbacks during the civil war was
made to congress by Secretary Chase,
every Democrat in the house had voted
against it. as well as every Democrat
IN the senate. He said il was strange
there had been such a great change III
the opinions in the senators of the
house and senate, in view of the fact
hat the Democrats are now favoring
he issue Of legal tender notes. He
argued in favor of the issue of bonds,
as provided for by the amendment Of
al nv the TglinOrIrE pf the finance f
committee.
rHE GREENBACK PROPOSITION.
Mr.. Lindsay maintained that the pa
Der money issued during the civil war
vas the dearest kind of money. The
argest part Of it bore interest at the
ate Of 8 or per cent while the bonds
proposed IN the pending bill called for
My per cent interest. If this bill
hould become a law as il stands, Mr..
urged. the Republican admin
stration would redeem the greenbacks
ssued under it in gold. ard would, il
necessary, sell bonds under the act of
S75, in order to get gold. He further
that by the proposed issue
f legal tender notes the Democrats in
avor OF such issue were simply plac-
ne the power in the hands OF specu-
atOrs to raid the gold reserve of the {
government. 7
that we win use all the {
money in the treasury except the one !
hundred million of gold held as a re- s
fund, and that we viii issue I
reenbacks, so that at the end of the &
ear all the money in the treasury viii /
e the hundred millions Of gold &
Mr.. Lindsay then presented the sup 5
ositious case Of a syndicate presenting I
reenbacks at the treasury to the full q
mount of the sold reserve, and draw S
1g it out and then that Of another {
indicate presenting another hundred
billions of greenbacks the net day S
Where" he inquired, lis the gold to /
ONE from to meet these demands?" v
This question precipitated a collOquy
pom the whole financial question,
hitch was participated in by Mr.. Lind
7y, Mr.. Cockrell Of Missouri, Mr.. Tel
II Of Colorado and Mr.. Stewart of Ne
ada.
Mt Lindsay maintained that the
indicates would raid the gold reserve
f the government, and that if the legal
ender notes were issued, they would
be redeemed in gold, and if f
would again be redeemed in c
ola. b
I'VE shall have an opportunity then" S
aid Mr.. Cockrell, Ito test the patriot il
m of holders of greenbacks and see
they would raid the treasury TO OBJ S
lin its gold. Ia like to know whether n
icy are such unadulterated patriots" p
The difference between me and the a
.nator from Missouri" replied Mr. b
lindsay, lis tlat he still believes the
,Id-raid.ng syndicates are patriots and q
do not They viii take every advan- S
ge offered them, even in time of war" s.
conclusion, and partly in answer TO f
lestions put to him by Mr.. Tillman p
South Carolina, Mr.. Lindsay said: s
The war win not go for two or three g
,ars unless we break down our credit
the outset The issue Of legal tender