The herald., 1898-05-17
BROUGHT UP FOR DEBATE IN
THE SENATE
bONDCLAUSf DEFENDED
xAxATIoN OF CORPORATIONS
OBJECTED 70
MADE UNFINISHED BUSINESS
And WIN Ds Promptly Pressed to
Passage First Veto
Sustained by the House

3assage-NcKinley' First Veto
Sustained by the House
Associated Press Special Wire
WASHINGTON, May 1s.-The debate
upon the war revenue measure was beguy
m the senate today. The opening state
ment for the committee ON finance was
made by Allison Of iowa, the ranking mem
Der In the absence Of Morrill, Of Vermont
r was estimated that the bill as 1t came
nom the house Of representatives woult
raise about 500, 100000 a year. AS report
"a from the senate committee Allison esti
mates that It will raise $151, 497. 066
( At the conclusion of Allison's statement
The bill was made the unfinished business
and 1t will be pressed to passage as soor
~ possible.
: Morgan introduced resolution calling
upon the Secretary of the Interior for in
formation in his possession concerning the
: progress Of the work on the Nicaragua
Canal and concerning the financial affairs
Of the Maritime Canal Company The res
olution was agreed to.
) The Senate. IS to II. voted down an amend.
ment by Mr.. Pettigrew to local railroad
hill providing that the government might
purchase the road at it's cash value at any
time after ten years.
Mr.. Allison Iowa) then called UP the
war revenue bill and made statement of
~ features to the Senate.
Mr.. Allison estimated that the war reve-
uue bill reported to the Senate by the Sem
ate Committee. independent Of the Demo-
cratic amendments. would produce $780,
100000 IN annual revenue, and that the
Democratic amendment would, II incor-
porated in the act, increase the amount to
the extent Of $75.000000.
Allison said that as the bill came from
the house Of representatives 1t was an in
terpRl revenue measure and as reported to
the senate 1t was still an internal revenue
measure. Comparatively. said he, there
are no provisions In 1t for increase of Gus
toms duties.
He said that the finance committee had
carefully examined all of the schedules Of
the house bill and had been led to believe
that schedules A STAMP taxes) and B
proprietary articles) were too general in
their scope. Consequently they had been
amended. On beer and tobacco taxes on
schedules A and B and on the tonnage tax
matter the committee was substantially
unit.
Allison said that the committee had OBJ
tanned the best possible estimates from
the secretary Of war and the secretary of
the navy. Secretary Alger estimated that
his department would need $50, 925527. To
this sum must be added at least ST., 000, 900
to pay expenses authorized by congress
after the estimate was made.
-
navy OF the expenses of his department for
the same period was $75, SGT. $50, but in addi-
ton to this sum the amount carried by the
naval appropriation bill must be consid-
cred as part Of the expenses Of the navy
In addition to the $50, 900, 900 already appro-
priated as a war fund, which Allison an
nounced. parenthetically. had been prac-
tically expended, the forthcoming general
deficiency bill would carry a deficiency ap-
preparation for the current year of about
81, 900, and there Is q naval deficiency
bill Of about $22275.0 900.
The senate finance committee therefore
figure that It would require total Of at
least $S7s. 900 to pay the expenses Of the
war from the present time until the LIST
Of July, 1899, not taking into account any
emergency expenses that might arise at
any moment.
Allison then carefully analysed the or
binary receipts and expenditures of the
government. In the course of this state
ment he expressed the opinion that the
estimate of the secretary Of the treasury
that the present tariff bill would this year
raise $2o0, 900 was too high. In present
circumstances and conditions he doubted
whether the bill would produce more than
$180. 10000.
: The important question. he said, was
how much money should be provided by
taxation and how much by loan. In COM
mittee he had been willing to increase the
fevenue feature so as to insure $125, 900, OOO
On this point the committee on finano had
been divided some members desiring TO
raise as much or more than $50, 900, 900, and
he thought that the bill would produce this
amount irrespective of the Democratic
amendments. Indeed, he thought that the
bill as agreed to by all the members would
produce even to exceed $50, 900, O0O while
he thought the house bill would not pro-
duce s1Q5, 100000.
Taking up the amendments, inserted
without the cooperation of the Republican
members Of the finance committee, and
known as the Democratic amendments,
Mr.. Allison expressed the opinion that in
addition to the greenback and seigniorage
provisions, this would yield SIS 900 900 in
the aggregate, in addition to the estimate
of Q50. 900 already given. His estimate
Included from Ave to six million dollars on
transportation companies, $750.0OO on tele-
graph companies, two or three millions on
insurance companies, $15. 900 on bank
and rs 100000 on corporations.
Mr.. Allison criticised with considerable
severity the provision for taxing corpora
lions, saying that II would be especially
severe upon stockholders in small corpo-
rations, and that It was also liable to cause
double taxation. In conclusion, Mr.. ALI
son said It was one duty Of the senate to
authorize the secretary Of the treasury to
borrow from time to time $500 900. 900, or SO
much thereof as might be needed for war
purposes exclusively. and to issue per
cent bonds therefor. 1t was also the pur-
p0se to authorize the secretary of the treas
ury to issue certificates on the indebted
mes for 1900 900 to meet any deficit in the
running expenses Of the government.
NJ. White Of California said he wanted
t6 call the senate's attention to the fact
mat the pfopriety Of placing an equitable
tax upon the oil refining interests. the
6n1ir trust and other great monopolies
wouId be forced upon the senate. The
49, NJ 70 Mace some Of the burdens OF