The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-14
INCOME TAX, PRO AND con.
CARNEGIE AGAINST IT. MEL
VILE INGALLS, FAyORS 1T.

Their Belmont, Reelected Presi-
dent, Promises 10 Give More Time 10 II.
Actor the National Civic Federation had
hoard Andrew Carnegie, w. ID. Guthrie,
wolyiIe +. ingalls, and others discuss the
.,o,,e and Inheritance taxes yesterday
:, ,he Park Avenue Hotel it reelected
Iugust Belmont president and adjourned.
NJ carnegie sharply attacked the in
.or,e tan. declaring his agreement with MIR.
Gladstone when he said tSat it tended to
n,ojuce a nation Of liars. He was especially
Zero upon the income tax for its inquisi-
,ionaI features, asserting that it could only
he enforced bv a system of inquiry into and
n,hHcitv regarding the private affairs Of
pri,izens that could scarcely be anything
but undesirable.
When it came TO the Inheritance tax.
however. Mr.. Carnegie took the opposite
view. declaring that he was strongly In favor
~ a graduated inheritance tax. Most
large fortunes, he declared, were not the
resIlt Of individual work or brain, but OF
the countrv's growth and development.
The country produced them and should
share in them.
-The modern Shylock should be treated
a. The old Shylock was" he said. You
remember the law of V~enice-that II an
alien sought to injure a Venetian one-half
~ his wealth went to the Golfers Of the State.
This is what | hold to-day To the income
tax MIR. Carnegie thus objected:
There il no tax SO pernicious as a tax
that requires the struggling young business
man. fearful whether the bank directors
viii pass his note for 81 900 tomorrow, to
,xplain all his private business in the COM
mlnitv TO some man in the community who
NAV he himself a bank director or who IL
connected with the banks. The nation will
never regret anything so much as attempt
ing 20 collect a tax upon men engaged in
business, bees making honey for the
national hive, trying to penetrate into all
the minutie Of their business, liable TO have
competitors made cognizant Of their posi-
ton next morning. l differ strongly with
the President upon that.
but the graduated inheritance tax offers
a better chance Of properly re~distributing
wealth than any other means. The subject
OF wealth distribution will not down. II
is obviously, strangely unequal
Mr.. Carnegie then rel on to Illustrate
how two sons OF the same father might
live on, one to wealth and the other to
novertv, not by any merit or emerit OF
their own, but because pure chance de-
veloped the inheritance of one n degen'
Grated that Of the other. What made the
wealth of the one2" he demanded. Ability
foresight, industry, labor1 Nothing OF
the kind. It grew while the man slept.
say that the community ia the leading
nartner that made the wealth. l am no
in favor of touching the bee while it is max
ing honey. Let the bee work But whei
he passes away, then I say the silent p TT
ner. the community that made that wealth
should receive its dividend.
The man who has made money may
usually be trusted with it. But his children
are usually not so constituted. They hav'
never known what it was to figure means
20 an end, to live frugal or do any usefu
work.
The American public is the partner il
almost every enterprise where great for
tunes are made honorably. And OF thes
men. when the time comes for them L
la down and rest with their fathers, l "a.
hat the community fails in its duty an'
our legislators fail in their duty II the!
do not exact a tremendous share, a progress
sive share. There is no idea or mtkinl
their children paupers or II interfering
with their right to leave a competence
hS r, tbese enormous sums, these multi-mil
lions, should really have a different nam
from property.
bv a direct dividend tax, so nobody III
oIires as to the individuals from whom
comes The great bulk Of her income ia
is Maid by corporations, so that you nav
not to reveal your business secrets
England: mi.
the President regarding a graduated IN
heritance tax. But there is another reason
and that il that excessive wealth lett 10
child is an injury to that enid. we 90 nc
want a class to grow up in this communlt
who are not compelled 70 renueI sol thl
service to the community to justify tha
community in giving TO him his privilege
and luxuries. My experience Is tnat
would as soon leave a curse TO my boy 9
the almighty dollar. There are exception
but we must legislate for the generaL,
you know | am greatly misrepresente'
He who lies rich, dies disgraced; 70
have heard that before. never said tina
pictured a man of wealth h kept IA
wealth to himself, who did nothing, Tor u
community from which MS Wealth na
largely arisen, who was noted Tor the al
sence of his name from all good and gen
rous purposes, and | said that the time wa
coming when a man leaving millions tins
were free for him to distribute should d
disgraced.
NOW / Inlnk tDeIS u hONhbt P
on earth az a man who spends his last yea
still grabbing for dollars, which he hoard
and who has not contributed TO good u.s.
and generous purposes: and hat is anoth'
reason why | think that the mlser millol
ARE class should give up TO the state a Vel
large proportion of the wealth that tht
have accumulated, and for which the col
munity has been responsible and ior whl'
they are indebted 10 the community.
N We are not contented with present co,
ditions. There IL not a true American VI
is content with things as they are. y
people see that what I tell you is true, tn
the community made most OF the wealt
And | hope they will persist and tax heayl
by graduated taxation every man VINO OIL
leaving his millions which It was ms ou
10 administer for the public good IN !
life, and that they will cease TO nonor a,
man who does not regard his surplus weal
as a sacred trust to be administered for :
good of the community from which II D
arisen"
Melville f. ingalls,, formerly PRESIDE
OF the Big Four railroad and now charm
Of its executive committee, said there n
been three prolific sources OF large tortut
the tariff, illegal vor granted TO Z
shippers by the railroads, and the securi
by questionable means Of public franchis
OF different sorts. Til rebate evil ne !
leved TO rave been largely done aw.
with. The tariff ought to be dealt WI
30 that il would protect only intersTs VI