The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1906-12-13

h.pstion. good or bad, Is nohlous WEI
II H.. " h' IKE combination OF labor Z
neSessary element Of our present ih aun
rial systsm II Is not possible cohplstpey
% prevent Iniet is p ana would 10 dam
80 10 ~. body polite. what We heso
- not yalnly 10 prevent an eoiiipi stn,s
but 70 secure suen ilfon ~ the eombIna-
,tSns "a 10 prevent their ibJurlns the
nnblic. or existing In sueh FORM a. me-
itably TO threaten inl 'ir Sas INC secnred
nrseticalIy complete control OF a nsces-
sary Of fife would under any crcuin
stances show mat 81 sacn dv c1s 10 The pub
ue interest IL 10 unfortunste tnat our
present laws should forbid an conDina
lions, instead OF sharply diserii iiisa as
between those combinations whlch 90
evil Rebates, for Instance. are as oiteh
due 10 the pressure OF pig shPpSls s
was shown In the Investigation u VI
standard on company and as mas been
shozn since by the investigation OF tle
tobacco and sugar trusts as To ths lhlu-
alive Of big railroads ottsn , raliroao y,
preventing a big shipper from maintain
Ing improper advantages al Tue ekpense
OF small shippers and OF the general pun
he such combination, instead OF peins
forbldden by law, should be- favored. IN
other words IL should De permitted "
railroads To make agreements, pIoF'assu
these agreements were sanctioned by thS
interstate commerce commission and
were pnblished. With these TWO condi-
tionu Complied with IL Is Impossible 70
what harm such a cohip,h1 - , oI1
evil 10 have on the statute books law
incapable OF fun enforcement because
both Judges and Jurlss te an<e el" h,,sfs
ness OF the country. for s.le result Is TO
make decent railroad men vioiators OF
the law against their VIII, ana 10 pl ,,, q
premium on the behavior OF the wilful
wronsdoers. Such result Ia turn tends
10 throw the decent man and the wilfui
wrongdoer into close association, ana 10
the end 10 drag down the former 10 the
Iatter's level. for the man VINO becomes
iswbreaksr n eaf Tfoaf 9sasR XXI TO ts" e
more scathing condemnation could be
visited upon law than Is contained In
the words OF the Interstate commerce
the fact that the numerous Joint franc
associations do technically violate the
law. they say: The decision Of the
United States supreme court in the
Transmississippi case and the Joint
TTaffic association case has produced no
practical effect upon the railway opera
in fact. exist now as they did before
these decisions, and win me same gen
sral effect. In justice to all parties. we
ought probably to add that i is difficult
be operated with due regard to the inter
est OF the shipper and the railway
without concerted action OF the khu al
forded thru these associations
This means that the law as construed
by the supreme court In such that the
business OF the country cannot be con-
Quoted without breaking II. recommend
that you give careful and early consider
alton to this subject. and II You lind the
opinion OF the Interstate commerce com
mission justified. that you amend the
law so as to obvlate the evil disclosed.
inheritance and income Tax.
1t was expected that the president
would refer In some way TO his peiisf
In the necessity for the eurbing OF en9r-
nous fortunes. and he has done so by
recommending Legislation for both In
come and an Inheritance tax. lie be
leves the government should impose a
graduated Inheritance tax. and, II posi-
bic, a graduated income tax. He says:
Il ann well aware that such "a subject
as this needs long and careful study IN
order that the people may become famii-
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 70 20 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 law provtd-
ing for a graduated Inheritance tax by
which a steadily Increasing rate OF duty
should he put upon all moneys or other
vaiuables coming by gift bequest. or
devise to any Individual OF corporation.
1t may be well to make the tax heavy
In proportion as the individual benefited
Is remots OF kin. In any event In my
judgment the pro rata OF the tax should
Increase very heavily with the Increase
after a certain point has been reached
1t Is most desirable to encourage thrift
and ambition, ana potent source OF
thrift and ambition liz the desire on the
part of the breadwinner to leave his chill
dren we'll Off. This object can be attained
by making the tax very small on moder-
ate amounts ot property left: because
atantly tncren sing burden on the inner
ttance OF those swollen fortunes which
u Is certainly OF no benefit to this eoun-
There can be no question OF the eth
ical propriety OF the government thus de-
termlning the conditions upon which any
gift or Inheritance should he 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 question
IL Is not necessary at present To discuss,
II L. Wise that progress In this direction
should be gradual Al hrst permanent
national Inheritance tax while II 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, 10 what such a
tax should ultimately be
inheritance Tax Constitutional.
This species OF tax has again and again
been imposed altho only temporarily, by
the national government, Il was first
imposed by the act OF July 9. 1877. when
the makers of the Constitution were
alive and at the head OF AFFAIRS. II 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 |. 1859, minimum sum OF
81 90 In personal property being excepted
from taxation, the tax then becoming
progressive according to the remoteness
OF kin. The war-rsVenue act OF juno IL.
| iSss, provided for an Inheritance tax on
any sum exceeding the value OF $4,000.
| the rate of tax increasing both In accord
| anee with the amounts lett and In ac-
| eordance with the lcxatee'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
stitotionsl and valid. More recently The
/ Justice White. which contained an ex-
| eeedingiy able and elaborate discussion
/ OF the powers OF the congress to impose
/ death duties. sustained the constitution
/ ality OF the inheritance tax feature OF the
/ war-reNenue act Of tsss
10 Income Tax CONSTITUTIONAL
| Tn us incidents. and apart from tn.
main purpose OF raising revenue, al
| income tau stands on AN entirely differ,
ent foet'ns from an inheritance tau. be
! petuaticn OF fortunes swollen to an un
| healthy siE~ The question is in II.
eassncc a question OF the proper adjust
! law now stands Il is undoubtedly dim
| cult Go devise national income Ia,
/ watch shall be constitutional Ru
/ whether Ia 10 absolutely Impossible Is an
! eeftatnlS desirable The first purely IN
/ eone tsN law was past by the ceagreS'