The Monticellonian., 1906-12-06

was shown fin the investigation Of the Standard OH company and as has been shown since by the investigation Of the tobacco and sugar trHsts) as to the initt- ative of big railroads. Often railroads would like to combine for the purpose Of preventing a big shipper from maintain ing improper advantages at the expense of small shippers and of the general pub He Such a combination. instead of being forbidden by law. should be favored. In other words it should be permitted 10 railroads to make agreements, provided these agreements were sanctioned by the interstate commerce commission anu were published. With these two condi- tions complied with it is impossible to see what harm such combination could do to the public at large. It is a public evil to have on the statute books a law incapable of full enforcement because both judges and 1uries realize that it's full enforcement would destroy the busi- ness of the country; for the result is to make decent railroad men Xiolators Of the law against their will. and to put premium on the behavior of the wiiful wrongdoers. Such a result in turn tends to throw the decent man and the wilful wrongdoer into close association. and in the end to drag down the former to the latter's level. for the man who becomes q lawbreakeF in one way unhdnptly tends to lose all respect for law and to be willing to break it in many ways. No more scathing condemnation could be visited upon a law than is contained in the words of the interstate commerce commission when, in commenting upon the fact that the numerous joint traffic associations do technically violate the law, they say: The decision of the United States supreme court in the Transmississippi case and the Joint Traffic association case has produced no practical effect upon the railway opera tions of the country. Such associations, in fact, exist now as they did before these decisions and with the same gen erai effect. In justice 10 all parties. We ought probably To add that it is difficult to see how our interstate railways could be operated with due regard to the inter est of the shipper and the railway without concerted action of the kind af- forded thru these associations.
 This means that the law ds construed by the supreme court Is such that the business of the country cannot be con ducted without breaking if. l recommend that you give careful and early consider alton to this subject, and if you find the mission justified. that you amend the law so as 10 obviate the evil disclosed. ..
 inheritance and Income Tax.
 It was expected that the president would refer in some way to his belief in the necessity for the eurhng of enor nous fortunes, and he has done so by recommending legislation for both in come and an inheritance tax. He be- leves the government should impose graduated inheritance tax, and. if possi- ble, graduated income tax. He says:
 T am well aware that such subject as this needs long and careful study in order that the people may become famil- jar with what is proposed to be done,
 
 Ing with wisdom and self-restralnt, and may make Up their minds just how far they are willing to go in the matter while only trained legislators can work out the project in necessary detail But 1 feel that in the near future our nation al legislators should enact a law provid- ing for a graduated inheritance tax by which steadily increasing rate Of duty should be put upon all moneys or other valuabes coming by gift, bequest, or It may be well to make the tax heavy in proportion as the individual benefited is remote of kin. In any event. Tn my judgment the pro rata of the tax should of the amount left to any one individual after a certain point has been reached. It is most desirable to encourage thrift and ambition, and q potent source of thrift and ambition is the desire on the part of the breadWinner to leave his chil- dren well off This object can be attained by making the tax very small on moder- ate amounts of property left, because the prime object should be to put con stantly increasing burden on the inner t is certainly of no benefit to this coun- try to perpetuate.
 There can be no question of the eth ieal propriety of the government thus de termining the conditions upon which any gift or inheritance should be received. Exactly how far the inheritance tax would. as an incident have the effect of limiting the transmission by devise or gift of the enormous fortunes in qheSuon it is not necessary at present to discuss. should be gradual At first a permanent national inheritance tax. while 1t might be more substantial than any such tax has hitherto been, need not approNlmate. Increase by graduation, to What such ultimately