The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1906-12-07

-, shown In the Investigation ~ the
Standard oil company and ~ mas .Sesw
toS"eeo and and sugar trusts as 70 the Init.
atiwa Of big railroads, OFTEN sratltNAeds
would like to combine for the rNrrnse W
RrsvSnt~s s sys sSssss s he sSpsS
OF small shippers and OF the sssessi gnS,
lie. such combination, instead ~ ee'Ns
forbidden by iaw .b sMSS'' ss ~ per"',tsa 10
railroads TO make agreements. prsNidsN
these agreements were sanctioned ny the
interstate ,,. sS%me With f sSssS sws eesl
tons Complied with II IL t,nryssie,e v
| see what harm such q combination cyvM
do to the public Z, ' s,ssS,e Sesks s" law
| Incapable OF full enforcement because
both Judges and juries realize that Ws
full enforcement would destroy ,Ns Sesu nS S ~ 10
| make decent railroad men vtolators OF
| the law against their will, and to nut =
premium on the behavior OF the wmtM
W. thSow the decent man and the wilfnl
wrongdoer into close association. and IN
| the and to drag down the former TO the
n iiawSreaker in one way unhappily tends
to lose all respect for law and to ee
willing to break II in many ways, NO
more seathing eond .h - aon tos IN
the words of the Interstate commerce
| commission when, in commenting upon
the fact that the y yHn. the
law they say: 1.-The decision OF the
United States supreme court In the
Transmississippi case and me JOINT mt
practical effect upon the railway opera
lions Of the country. Such ASSOCIATIONS,
| in fact, exist now. as they did before
these decisions and win a ane p sae we
ought probably to add that 4 is difficult
to see how our Interstate railways could
| be operated with due regard to the inter-
e %itho OF eoncerted action of the kind al
| forded thru these associations"
This means that the law as construed
business OF the country cannot be con-
| Quoted without breaking It. recommend
| that you give careful and early consider
alton to this subject. and II you ma tne
opinion of the interstate commerce COM
| mission justified. that you amend the
law SO as to obviate the evil disclosed
Inheritance and Income Tax.
It was expected that the president president
would refer In some way 10 nus Dsn nrl
| nous fortunes and he has done 80 py
recommending legislation for both m
come and an inheritance tax. He De,
lieves the government should impose a
| graduated Inheritance tax, and, II POSI-
| Bile, a graduated income tax. He says:
| II am we'll aware that such a sub1ect
| as this neeOS long anu CdIclui oeuuy "
order that the people may become famil-
| lar with what Is proposed TO pc oons'
may clearly see the necessity OF proceeu,,
| ing with wisdom and self-restraint, anu
| may make up their minds just how 1ar
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 nrowid-
| ing FOR a graduated Inheritance tax Dy
which steadily increasing rate or duty
should be put upon, all moneys OF other
valuables coming by gift. bequest, or
| devise to any individual or corporation:
1t may be well to make the tax he cav.
| in proportion as the individual benefited
Is remote OF KIN; "a IN any IN tb ese tas should
| Increase very heavily with the increase
OF the amount left to any one indlvldua,i
after a certain point has been rea thr;St
IT Is most desirable to encourage tnriIt
and ambition, and a potent source OF
| thrift and ambition Is the desire on tne
| part of the breadwinner to leave ms Gnu,
dren well Off. This object can be attai s
| 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 ,o on oes Which
| il is certainly of no beneht TO TINS couh-
| try to perpetuate. 49, .,,
There can be no question OF the eth tn
| ical propriety Of the government thus ue-
termining the conditions upon whlcn any
| gift or inheritance should be received
| Exactly how far the inheritance tax
would, as an incident, nave the ehee' or or
| gift of the enormous fortunes IN quesuo'
it is not necessary at present 10 , aiscu,ss,
1t is wise that progress IN TINS aircv nant
should be gradual. At first a permanent
| national inheritance tax, While II mlght
be more substantial than any such TAX
has hitherto been, need not approxlnattte,
| 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, ny
| the national government. 1t was first
imposed by the act of July s. 1881 when
the makers of the Constitution were
| alive and at the head Of AFFAIRS, II was
graduated tax: tho small mall IN n amount nmomni
left to any individual exceptions oeng
made in the case Of certain close KIN. "a
similar tax was again imposed by inc
act OF July /, 1862; minimum sum o,
| Il 600 in personal property being excepted
from taxation, the tax then becoming
progressive according to the remotenesSs
Of kin. The war-revenue ace o. ' tnT o dS,
| any sum exceeding the value OF slOOOo'
| the rate of tax increasing botn IN accord
ance with the amounts deit ana IN &C
| cordance with the legatees remoteness
| of kin The supreme court mas nelu tnat
| the succession tax imposed at the time
| of the civil war was not a direct tax put
| an impose of excise which was both con-
stitutional and valid. More recently me
court, in an opinion delivered by MT
| Justice White, which contained an ex-
ceedingly able and elaborate discussion
| Of the powers OF the congress to impose
| death duties, sustained the constitution
| aiity OF the Inheritance tax feature OF the
| war-revenue act or 1888.
10 Income Tax Constitutional?
I'm Its incidents, and apart from the
| main purpose of raising revenue an
| income tax stands on an entirely diner
emit footing from an inheritance tax, be-
cause IL Involves no question OF the per-
| netuation OF fortunes swollen to an I'M
healthy size. The question Is In It's
essence q question of the proper adjust
ment of burdens to benefits. AS the
law now stands II 10 undoubtedly diff
cult 10 devise a national income tar
which shall be constitutional. But
whether IL is absolutely impossible Is an
other question; and IL possible IL 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 or 1894
This the court held to be unconstitu'
tional.
tricate, delicate, and troublesome. The
decision of the court was only reached
by one majority. 1t Is the law OF thu
land, and. OF course, Is excepted as sucf