The Tupelo journal., 1906-12-07

h,nation. rood or bad. Is noxious where
II IL not ineffective. C0mplnaton OF
capital like comeinsti ION Of nres seDer ,n y z
trial system. 1t IL not possible completely
70 nrevent IL: n IL 1t were possible,
such complete prevention WOULD 90 dam.
- MT vainiy to- prevent ali combination.
hi,f 10 secure such rigorous and adequate
control and supervision OF the compina-
tons as to prevent s .nelr form ar al ,n eve
ftahlv tn threaten injury-for the mere
fact that d combination has secured
practically complete control OF a. neces-
sary Of life would under any circum-
stances show that such combination was
ia he presumed to be adverse to the pub
lie interest. It IL unfortunate that our
present laws SHOULD rorp'n di n Gomptha-
hat ween those combinations which do
evil. Rebates, for instance, are as OIten
due to the pressure OF pig snlppers sas
was shown in the investigation OF the
standard Oil company n as has been
shown since by the Investigation Of the
tobacco and sugar trusts as 10 the initi-
would like to combine for the purpose Of
preventing q big shipper from maintain
Ing Improper advantages at the expense
Of small shippers and OF the genera puD-
Forbidden by law, should be favored. In
other words, it should be permitted to
railroads to make agreements, provided
these agreements Were s san,miasio Wy s .nG
were published. With these two condi-
tons Compiled with 1t is impossible TO
see what harm such a compinatlon couid
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 9
premium on the behavlo OF the Waiial
to throw the decent man ana the wiiful
wrongdoer into close association, ana IN
the end to drag down the former to the
iatter's level; for the man who becomes
a iaWbreaker in one way unhappily tends
to lose all respect for law and to be
willing to break it in many ways. No
more scathing ndemna!t u non fou1a p pc
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 mas proauced no
lions of the country. Such ASSOCIATIONS,
in fact, Exist now as they did before
these decisions, and with the same gen
e eught sI probabIy to add that it is difficult
to see how our interstate railways could
be operated with due g to the inter-
eSt ou t eoncs srtepe action Of the kind al,
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. recommend
that you give careful and early consider
alton to this subject, and II you n the
opinion of the interstate con-.
law so as to obviate the evil disclosed.
Inheritance and Income Tax.
It was expected thai the president
would refer in some way to his beller
in the necessity for the curbing of eHor-
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, II posi-
Bile, a graduated income tax. He says:
II am we'll aware that such q subject
as this needs long and careful study IN
order that the people may become famil-
lar with what is proposed TO De zone.
ing with wisdom and self-restraint, and
may make up their minds Just how Ear
they are willing to go in the matter;
while only ain 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 py
Will a 6IGddll lhSL
should be put Upon all moneys or other
~valuables coming by gift, bequest,, or
devise to any individual or corporation
in proportion as the individual benefited
is remote Of kin. In m event, IN my
judgment the pro rata OF the tax shouio
increase very heavily with the increase
of the amount left to n one individuai
after a certain point has been cached:
1t is most desirable to encourage thrift
and ambition, and q potent source o.
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 ieft; because
stantly increasing burden on the inner
itance of those swollen fortunes which
it is certainly of no benefit to this coun-
try to perpetuate.
ical propriety Of the government thus de-
termining the conditions upon which n
gift or inheritance should be received.
Exactly how far the inne tha afysc, *
limiting the transmission by devise or
gift of the enormous fortunes IN quesuon
it Is not necessary at present TO dlscuss.
1t is wise that progress in this direction
should be gradual. At first a permanent
national inheritance tax, while it might
be more substantial than any such TAX
has hitherto been, need not appr9xlW pa tha
increase by graduation, to what sucn q
tax should ultimately be.
inheritance Tax Constitutional.
'eThis species of tax has again and again
been imposed, altho only temporarily, by
i ine nai'g by the eo act Of July s. 1877, when
the makers of the constitution Were
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
in the case OF certain close kin. "A
similar tax was again imposed oy the
act Of July l. 1862; a hniun es sum Of
from taxation, the tax then becoming
progressive according to the remoteness
Of kin. The w~ar-revenue act of June IL,
any sum exceeding the value of $4,000.
the rate of tax increasing both In accord
ance with the amounts LETT n IN &C
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 a direct tax but
an impose of excise which was both con-
stitutional and valid; M ds1ieer reSen bv M she
Justice White, which contained an ex-
ceedingly able and elaborate discussion
of the powers Of the congress 20 impose
death duties, sustained the constitution
ality of the inheritance tax feature of the
war-revenue act of 1873.
Is income Tax ConstitutionaIT
'.In its Incidents, and apart from the
main purpose raising revenue, an
income tax stands IN an entirely differ
ent footing from an inheritance tax, be-
cause it involves no question Of the per-
p~etuation of fortunes swollen to an I'M
healthy size. The question is in its
essence a question OF the proper adjust
law now stands it is undoubtedly din
cult to devise a national income tax
which shall be constitutional. But
whether it is absolutely impossible Is an
other question: and II possible 1t is most
certainly desirable. The first purely In
come tax law was past by the congress
in 1861. but the most important law deal
This the court held to be unconstitu-