Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1906-12-13

TODaNCD SWEdT TTUbtEJ
ative of big railroads. Often railroads
would like to combine for the purpose of
preventing big shipper from maintain
ing improper advantages at the expense
of small shippers and of the general pub
lie Such a combinat tion instead of being
forbidden by law, should be favored. In
other words, IL should be permitted TO
railroads to make agreements. provided
these agreements were sanctioned by the
interstate commerce commission and
were published. With these two condi-
tons complied with it is impossible to
see what harm such a combination could
do to the public at large. 1t is a public
evil to have on the statute books a law
incapable of full enforcement because
both judges and juries realize that it's
full enforcement would destroy the bust
ness of the country; for the result is to
make decent railroad men Violators of
the law against their will. and to put a
premium on the behavior of the wilful
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
iatters level: for the man who becomes
a lawbreaker in one way unhappily tends
to lose all respect for law and to be
willing to break 1t In many ways. No
more scathing condemnation could be
visited upon n 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
Traffic association case has produced no
practical effect upon the railway opera
tons of the country. Such ASSOCIATIONS.
in fact, exist now. as they did before
these decisions. and with the same gen.
eral effect. In Justice to 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 as construed
by the supreme court is such that the
business of the country cannot be con-
Quoted without breaking It, l recommend
that you give careful and early consider
alton to this subject and if you find the
opinion of the interstate commerce com
mission justified, that you amend the
law so as to obviate the evil disclosed.
inheritance and Income Tax.
1t was expected that the president
would refer in some way to his belief
In the necessity for the curbing of enor-
nous fortunes, and he has done so by
recommending legislation for both in
come and an inheritance tax. He be-
lieves the government should impose a
graduated inheritance tax, and. If possi-
BILE. graduated income tax. He says
Il am well aware that such subject
as this needs long and careful study in
order that the people may become famil-
lar with what is proposed to be done,
may clearly see the necessity of proceed
ing with wisdom and self-restraint, 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
| feel that in the near future our nation
al Legislators should enact a law provid-
ing for graduated inheritance tax by
which n steadily increasing rate of duty
should be put upon all moneys or other
valuables coming by gift, bequest, or
devise to any individual or corporation.
1t may be well to make the tax heavy
in proportion the individual benefited
Is remote of kin. In any event, in my
Judgment the pro rata OF the tax should
of the amount left to any one individual
after a certain point has been reached.
1t Is most desirable to encourage thrift
thrift and ambition Is the desire on the
part of the breadwinner to leave his chill
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
itance of those swollen fortunes which
1T is certainly of no benefit to this coun-
try to perpetuate.
There can be no question OF the eth
ical propriety of the government thus de-
termining the conditions upon which any
gift or irheritance should be received.
Exactly n, far the inheritance tax
would, as an incident, have the effect OF
limiting the transmission by devise or
gift of the enormous fortunes In question
It is not necessary at present to discuss
1t is wise that progress in this direction
should be gradual AT first permanent
national inheritance tax, while it might
be more substantial than any such tax
has hitherto been, need not approximate.
either in amount or in the extent of the
increase by graduation, to what such
tax should ultimately be.
Inheritance Tax Constitutional.
This species of tax has again and again
been imposed, altho only temporarily, by
the national government. 1t was first
imposed by the act of July 8, 1871, when
lyapg of IN ct or q
alive and at the head of affairs. 1t was
a graduated tax; tho small in amount,
the rate was increased with the amount
left to any individual, exceptions being
made in the case of certain close kin. A
similar tax was again imposed by the
act of July l, 1852; minimum sum of
81 900 in personal property being excepted
from taxation, the tax then becoming
progressive according to the remoteness
of kim The war-revenue act of June lS,
1888, provided for an Inheritance tax on
any sum exceeding the value of $4,000,
the rate of tax increasing both in accord
ance with the amounts left and In ac-
cordance with the legatee's remoteness
of kin. The supreme court has held that
the succession tax imposed at the time
of the civil war was not direct tax but
an impose of excise which was both con-
stitutional and valid. More recently the
court, in an opinion delivered by Mr..
Justice White. which contained an eX-
of the powers of the congress to impose
death duties. sustained the constitution
ality of the inheritance TAX feature Oh the
war-revenue act of 1898.
10 Income Tax Constitutional?
"In its incidents, and apart from the
main purpose of raising revenue, an
income tax stands on an entirely differ
ent footing from an inheritance tax, be-
cause it involves no question of the per-
petuation of fortunes swollen to an un-
healthy size. The question is in it's
essence a question of the proper adjust
ment of burdens to benefits. AS the
law now stands 1t is undoubtedly DIM
cult to devise a national income tax
which shall be constitutional But
whether it is absolutely impossible is an
other question; and if possible it is most
certainly desirable. The first purely in
come tax law was past by the congress
in 1861, but the most important law deal
ing with the subject was that of 1894
This the court held to be unconstitu-
tional.
''The question is undoubtedly very in
tricate delicate, and troublesome. The
decision OF the court was only reached
by one Majority. 1t is the law OF the
land, and, of course, is excepted as such
and loyalty obeyed by all good citizens
Nevertheless, the hesitation evidently
felt by the court as a whole in coming
to a conclusion, when considered to-