Evening star., 1898-05-28
THE SENATE DISCUSSION.
Mr.. German FavOrs a Corpora ton
Tax-Mr. COckrelFs Argument.

Mr.. German spoke in the Senate yester-
day sfternoon in support Of a tax on cor
porationS and denounced as Infamous"
the decision Of the Supreme Court deciar.
ing the income tax law of 1894 unconstitu
tional. The warning sounded by some sem
ators that IL tax were placed upon cor
rorations it would be pronounced uncon-
stitutional by the Supreme Court had, he
said, no effect upon him. A decision against
stch an enactment would rot destroy our
financial structure, but it would destroy the
court which should hand it down. Mr.
German took issue with the majority of his
fellow democrats upon their propositions
to coin the silver seigniorage. and to issue
legal tender notes. and made an argument
in favor of the issuance of bonds to raise
funds with which to prosecute the war.
Mr.. Nelson (Minn.) presented a carefully
prepared argument against the issue of le-
gal tender notes.
In speech of two hours, Mr.. Cockrell
(Mo.) discussed the financial questions in
contention between the democratic and re-
publican parties. He urged that the bill
as reported by the majority of the finance
committee ought to be enacted into law.
Mr.. Allison, in charge of the bill, pro-
posed that time be agreed upon to vote
upon the series of amendments relating to
corporation taxes.
Mr.. Jones (Ark) objected on account of
the numerous important amendments Of
fered to the bill which had materially al
tered the situation.
These measures were passed: Donating 4
condemned cannon to the thirty-second ma
tional encampment. G. A. R.. providing for
a survey of the harbor at Sheboygan, Wis. :;
and extending the time for the completion
of the Fort Smith and Western railroad.
At $40 pm. the Senate went into execu-
tive session, and soon afterward adjourned
until IL o'clock today.
Mr.. Cockrell made a long argument in
favor of the free coinage Of silver and of
the issue of legal tender notes. He main
tanned that an issue of greenbacks was
infinitely preferable to interest bearing un-
taxable obligations which afforded hid
through bonds always could be assured of
gain without chance of loss.
Sacrifices must be made in this war"
declared Mr.. Cockrell. Two hundred
thousand men have been taken from the
Industrial pursuits of the country and are
engaged in waste and destruction. War is
waste. War creates loss and destruction.
All people should bear the burdens alike.
Sacrifices must be made, but We cannot
tighten the burdens or prevent the losses
of the war by an issue of bonds.'' He said
that the idea of sending the proposed bonds
to the post offices in order that they might
appear to be popular loan was fraud
and fake on the very face of it, The
bonds. he maintained would be paid for
In gold. and the necessary amount of gold
was not in the hands of the people, but in
those of capitalists, and capitalists would
control the issue.
Mr.. German (Md) said he approved of
some provisions of the House bill, and one
of the amendments made by the Senate
committee. His effort would, however. be
directed toward making the bill more near
~ just and equitable than it now is The
bill ought to be framed, he said, upon lines
of simplicity and fairness
The burdens ought to be placed upon the
large interests to pay the taxes, instead Of
upon the people regardless of their condi-
don- The people. he maintained should
be exempted from the offensive and bur-
densome stamp tax. the levying and col
lection Of which would result in most Sc
rious difficulties. He said that it had been
declared during the debate that the cor
poration tax. II enacted into law. might
be decided by the Supreme Court to be un-
constitutional. thus reiterating a decision
as Infamous as that on the income tax
law.
Now is the time.'' he declared, while
We are engaged In war. to test the Supreme
Court upon the corporation tax question.
A decision against 1t will not destroy our
financial structure, but II would destroy
the court" Mr.. German then formallv
presented his amendment to the bill pro-
viding for q tax upon corporations
In the course OF a discussion Of the pro-
posed coinage of the silver seignforage. Mr..
German held that it involved a political
contention OF eight years standing ..In
my Judgment" said he. ut would be un-
wise-it would be fruitless, to attempt to
force that question 70 the front while the