The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-05-24
TAX ON CORPORATIONS
OPPOSED BY LODGE AND ADVO-
GATED BY TURLEY.
Senator Chiffon Denounced the Prop
osition to Issue Bonds-Organiza-
ton of the Engineer Corps-Pro-
test Against the Registry of a
Foreign-built Ship.

time was occupied by Mr.. Chiltor
(Dem-, Tex.), Mr.. Lodge (Rep., Mass,
and Mr.. Turley (Dem., Tenn.) While
Mr.. Lodge confined himself to a discus
sion OF the proposed tax on corporations
and bank deposits. strongly urging thai
such taxes be not imposed, Mr.. Chill
ton and Mr.. Turley covered pretty fully
the general features of the bill TheiI
| speeches dealt comprehensively with
| the theories of taxation and We're
therefore, in the very nature of things
legal and technical dissertations upon
the subject No action of any kind
was taken upon the bill.
At the opening of the session a COM
munication was received from Secretary
of War Alger, together with the draft
of a bill providing for a gradual in
crease in the number of officers of the
corps Of engineers. The bill provides
that the-corps of engineers Of the army
shall consist hereafter of one chief of
L engineers. with the rank of brigadier
general, seven colonies, IA lieutenant
colonies, % majors, 80 captains, 80 first
lieutenants, IL second lieutenants and
the battalion of engineers. All promo
tons shall be made by seniority. The
communication and the bill were re-
ferred to the military affairs COM
mittee.
After the transaction of some routine
business, Mr.. Allison called up the war
revenue measure.
He announced that when the senate
adjourned Friday the pending question
I was upon the amendment offered by
Mr.. McEnery of Louisiana, removing
the proposed corporation tax from GER
tain classes of corporations. which
were such in name only. He added
that the reading OF the bill had been
completed and that an agreement had
been reached for the convenience of the
senate first to consider the amendment
providing for excise taxes on persons,
firms, companies and corporations.
That amendment, Mr.. Allison thought,
ought to be disposed of before the re
naming parts of the bill were taken
UP.
CHILTON'S ARGUMENT.
Mr. Chiffon of Texas delivered a care
fully written speech upon the general
features of the war bill. He expressed
the opinion that the vast amount of
money proposed to be raised by the
pending bill would not be needed for
the naval and military operations be-
fore congress should convene next De-
cember. He expressed his willingness
however, to join with others in furnish
ing ample resources for the conduct of
the war until July 1, 1899. He thought
it would be a mistake to appropriate
an amount greater than $25.000,0 900 a
month for war purposes.
Mr.. Chiffon said that the Dingley law
and the pending bill had a very near
relationship He endeavored to show
that the receipts from the Dingley law
were not sufficient to meet the govern
ment'S ordinary demands.
In the course of his remarks upon
the inheritance tax, Mr.. Chiffon eX-
pressed the opinion that next TO a tax
on incomes and upon corporations, the
tax contained more elements
of Justice than any other feature of the
pending bill Mr.. Chiffon defended the
of the majority of the
finance committee to issue certificates
against the silver seigniorage.
Mr.. Chiffon said the people, the plain
people, would rebel against bonds I'M
less the issue was absolutely necessary.
The necessity for bonds did not now
exist, in Mr.. Chilton's opinion, and he
did not think it would exist at any
time during the present war. He spoke
for two hours and a half
LODGE DEFINES CORPORATIONS. |
He was followed by Mr. Lodge of |
Massachusetts,, who addressed himself |
to the proposed tax on /
He held that the fact /
that many states now levied a tax !
upon corporations was an argument /
against the proposed tax to be levied /
Oy the national government.
For the United States to tax the cor /
Dorations would result in the destruc- |
ion of great source of revenue to the /
states.
Mr.. Lodge objected to the corporation /
AK because it was unfair and inequit- |
lble. All partnerships were exempted,
While all corporations were taxed.
TURLEY FAVORS THE TAX.
Mr.. Turley of Tennessee presented an
in support of the corporation
ak. He introduced tabulated state
nent concerning the levying of the tax
lpon banks, railroads and other corpo-
ations. He said the tax would fall
hiefiy upon railroads engaged in inter
tate commerce and he maintained that
he railroads and banks and either cor
'orations ought to be compelled to pay
heir share of the war burdens.
Mr.. Turley concluded with an argu-
nent in favor of the issue of legal ten
Ter notes as provided for in the bill re-
'orted by the majority of the finance
Committee. 1t was then agreed that
he bill would not be pressed further
oday and it was laid aside.
ROW OVER A SHIP.
Mr.. Frye of Maine, who was in the
hair, called Mr.. Carter - Montana to
he chair in order that he might report
bill from the committee on commerce.
lie said that he regretted exceedingly
o admit to American register a foreign
uilt ship, but in the case in hand it
eemed necessary, although it did an
ear to be sort of blackmail that the
var department was levying upon con-
resS in making the request. The bill
rovided for the admission to American
egistry of the steamer Zealandia Mr..
rye said he had just received~a tele-
ram from the war department, urging
hat the bill be passed, as the ship had
cen chartered to convey troops to
Ianila.
Mr.. Pettigrew inquired where the ship
Tas built Mr.. Perkins replied that the
-eamer belonged to the Oceanic Steam
hip company and was under the
hawaiian flag. although she was Brit
IN built.
Mr.. Pettigrew objected to the consid-
ration of the bill. A chorus of pro-
ests rose from all parts of the cham
er.
Mr. Teller went to Mr.. Pettigrew and
ppealed TO him personally to withdraw
is objection.
Mr.. Frye expressed the hope that the
bjection would be withdrawn, as Mr..
ettigrew could have no greater objec-
on to comforting an American regis
II upon a foreign ship than he had:
ut in this instance it seemed abso-
tely necessary. as the war department
ad completed the charter of the yes
Il and its services were seriously !
eeded.
Finally Mr.. Pettigrew said that at
lie earnest solicitation of friends on
9TH sides of the chamber he would :
ithdraw his objection, particularly as {
lie war departments desire for the :
essel was the only manifestation of )
a 81 hn hnd 4