The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-05-29
WAS THE FIRST TEST
Cooperation Tax Amendment
Defeated In the Senate.
BY A VOTE OF Al TO q
The First Decisive Vote on b Pending
War Revenue Measure-Senator
Daniel Speaks for the
Amendment.

i washington. May 2s.-After a discus
sion which lasted almost two weeks. the
senate this afternoon reached the first
decisive vote on any feature of the
pending war revenue measure. The
bin had been under consideration four
hours and a half to-day when MI. Al
drch Of Rhode Island. n of the re-
publican members If the finance COM
mittee, entered a notion to lay the
corporation tax amendment proposed by
the democratic majority of the commit
tee on the table. II was realized that
this was the first test of strength Of the
opposing elements in the senate, and
the roll cali was followed with deep in
terest. The result was decisive. The
amendment was laid or the table. Il to
q. Mr.. German then proposed his sub
stitute, providing for a tax on corpora
lions. but q vote on that was not
reached.
Early in the session to-day the senate
discussed In a desultory way the cor
poration tax proposition with a view to
getting a vote upon 1t. 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 I'M
constitutional. Mr.. wolcott, rep. Colo.
followed in a notable speech supporting
the proposition of the republican minor
ETY. OF the finance committee. BY a vote
Of 81 to 81 the senate decided to adjourn
until next Tuesday.
After the transaction this morning of
some routine business the senate re-
- ahA m ANfA
niue measure. The sergeant at arms
had to request the attendance of absent
members, and IL required rs minutes TO
secure q quorum. Mr.. Allison said he
hoped vote could now be secured on
the corporation tax proposition. The
question was on the amendment offered
by Mr.. German Of Maryland. which
provided for a special excise tax upon
all corporations who's gross receipts
are more than $250.0oO per annum of
one-half OF one per cent.
Mr.. Faulkner OF West Virginia sug-
gested to Mr.. German that he accept an
Amendment making the tax one-Quar-
ter Of one per cent. Mr.. Turpie OF In
diana, while not specially objecting to
the proposed amendment. said Mr.. Cor
mans amendment ought to provide for
Q proper penalty. He maintained that
q mere nm would be of no avail in
the circumstances. as the corporations
would simply a the hne IN
cases where II was less than the tax. lie
strongly urged that the penalty ought
TO include not only a fine. but impris-
onment for not less than six months
Mr.. Faulkner urged the acceptance OF
mis- amendment. and the nance com
mittee had carefully considered the
question. and had decided that one
quarter of one per cent was a reason
able and proper tax. He pointed out
that the tax OF one-quarter OF one per
rent on the gross receipts was quite as
high as that of two per cent upon net
receipts. as provided for in the law OF
1894.
Mr.. Jones OF Arkansas. a member of
the finance committee. said he would
be willing to accept Mr.. Germans
amendment II Il were made to apply
as a substitute only for that paragraph
of the bill taxing railroads. street
railways and other transportation com
panies. He objected. however, to Its
substitution for h paragraph levy
ing a tax upon all corporations.
Mr.. German presented an argument
in favor of his amendment. Mr.. Lind
SAY OF Kentucky suggested that as a
proposition of law II might be well for
Mr.. German entirely to exempt from
taxation $3.50, 900 of III receipts of
every corporation. II the receipts did
not reach $3.50. 900 they would not be
taxed. Mr.. German had no particular
objection &c the suggestion offered by
Mr.. Lindsay. In reply to the sugges-
ton that the rate of tax proposed
should be reduced. Mr.. German de-
ciared that the corporations and their
friends were making a great mistake
IN his Judgment in e~ndeavoring to es-
cape from the proposed tax and to
evade their just n equitable share OF
the burdens of war.
Mr.. Daniel OF Virginia said that while
ne had no desire unduly to delay the
passage OF the pending bill he thought
Q full discussion OF it's important pro-
visions ought to be had. He favored
the tax upon the gross earnings OF
corporations and expressed his regret
that objections 10 IL on the ground
of its suspected unconstitutionality had
been made. These objections he de-
sired to answer by citing authorities
He made an elaborate presentation o!
his views upon the respective stat,
and federal powers OF taxation as pu'
In question by the pending bill. con
tending hat the taxation upon corpor
atoms was warranted fully by the Law
as existing and interpreted by tn
courts.
In the course OF Mr.. Daniels speed
the vice president laid before the sen
ate q communication from the Obi
legislature reporting the findings Of tn
committee of the senate which investi
gated the charges Of bribery agains