The news-democrat. (Providence, R.I.) 1906-1909, 1906-12-14

New YORK, Dec. H--AndreW Carnegie
terday's session OF the National Civic
Federation, and said he agreed with Mr..
Gladstone, who believed such tax tend
ed 10 produce a nation of liars. Mr. Car
negie declared himself TO be in favor OF
an inheritance tax, which should be grad
uated saying that most large fortunes
were not the result OF individual work,
but OF the countrys growth and develop
ment The country produced the great
them.
w ID. Guthrie. Melville e. ingalls, and
Prof Seligman OF Columbia university
were among those who spoke on theNsame
topic.
MIR. Carnegie was especially severe in
ms Criticism or the income tax from the
point of view of it's inqulsitorial features,
asserting that IL could only be enforced
by system OF inquiry into 2ny publicity
regarding the private affairs Of citizens
that could scarcely be anything but unde-
sirable He continued:
There is no tax so pernicious as tax
that requires the struggling young bust
ness man. fearful whether the bank d.
rectors will pass his note for $1,000 tomor-
row, TO explain all his private business In
the community, 70 some man IN the com
munity who may be himself bank direc-
tor or who is connected with the bank.
The nation will never regret anything SO
much as attempting TO collect tax
upon men engaged in business bees
making honey for the national hive, try
Ing TO penetrate into all the minutiae or
their business, liable TO have competitors
mado cognizant OF HIS position next morn
ing. ! differ strongly with the president
upon that
but the graduated inheritance tax Of
fers a better chance Of property redistri-
buting wealth than any other means. The
subject of wealth distribution will not
down. IL is obviously, strangely unequal.
Mr.. Carnegie then went on 10 illustrate
how two sons of the same rather might
live on, one TO wealth and the other TO
poverty, not by any merit or demerit OF
their own, but because pure chance de-
veloped the inheritance OF one and degen-
Grated that OF the other.
What made the wealth OF the one?'
he demanded. Ability, foresight, indus
try, labor? Nothing OF the kind. II grew
while the man slept. 1 say that the COM
munity is the leading partner that made
the wealth. / am not In favor OF touch
ing the bee while II is making honey Let
the bee work. But when he passes away,
then l say the silent partner the com
munty that made that wealth, should
receive it's dividend
THE man who had made money may
usually be trusted with 1t. But his chill
dren are usually not 80 constituted
Mr.. lDgalls, formerly president or the
Big Four railroad and now chairman Of
its executive committee. said there had
been in the last few years three prolific
sources OF multimillionaires, which are
open TO criticism-the tariff. Illegal ia
vors and contracts given TO shippers by
which were questionable of contracts at
nominal prices fer the use OF the streets
of various cities for the purpose of trans
portation and lighting. With reference TO
limiting these fortunes by an income tax.
he said:
After considering the subject care
fully, / have in the last few years come
To the conclusion that it is the best and
forest tax that can be levied. l don't
L., dtaa aA "a
think that would be putting a tax on
thrift and energy; each man should pay
upOn his income the same proportion
ray il as a tax for the protection OF his
property. | would tax all incomes Of
$1,000 or over on a fixed percentage. Under
$1,000 tho income from the tax would not
te enough to pay for the cost of collec-
tiCn.
Il believe the proper law for doing this
con- he framed and be passed by congress
10 stand the test OF the courts. II il will
not .hen let us go TO the people with
n constitutional amendment that will
make 1t legal.
Il am in favor of the inheritance tax
as a tax for paying the expenses Of the
state like other taxes.
Il would also enact legislation, either
by the national government or by the
states, that no man should have the right
to dispose OF the bulk OF his property by
will, hut that when he dies II shall be
divided equally among his heirs as the
law directs. l would take away from
any citizen the right TO tie UP his prop
erty in trust for one life or any time.
II realize that this will be criticised
and people will say that IL a man has
children and some are weak and incom-
petent 10 handle the fortune coming tc
him or her, that the parent should have
the right TO put their share In trust; but
that is the very thing that perpetuates
these large fortunes. Let them be dis
tributed! II some OF the heirs waste
their inheritance, the public will gain
tho property is not lost by distribution,
and nothing. in my judgment, will so pro-
tect our future against large accumula- =
tions OF wealth as this.
There is danger In the present condition
Of public opinion that we will lrft into
a hysteria that will enact legislation that
will seriously hurt our business and pro-
duce disaster Especially Is this true in
reference to the railways, and we must
keep in~nrtud that the railways constitute
the largest business force In the country.
The real menace, 10 my mind Is the