New-York tribune., 1906-12-14
URGES GRADUATED TAX
MR.. CARNEGIE ON WEALTH
Calls an Income Tar "Imp possible"
and "PerniciOus.

In a speech that freely expressed his views An
drew Carnegie discussed yesterday. before the
National Civic Federation. the subject OF the ac-
cumulaton and the disposition At death Of large
fortunes. Following il did. upon President
Roosevelts treatment of the income and inheri-
in his message. Mr.. Carnegie's speech
created considerable interest and discussion. While
he was not in favor Of an income lax. he strongly
supported a heavy inheritance tax. which would
restore the community shFre Of the large
fortunes which growth Of the country enabled
energetic, enterprisng and competent individuals
Regarding the income tax. Mr.. Carnegie said lie
agreed with Mr.. Gladstone that 1t made nation
OF liars Continuing. he said:
There is no tax pernicious not only from an
economic but from moral point of view. as tex
that compes the struggling young business man an
note for 5000 tomorrow 10 explain All ms pI Ilna 49,
business 10 some man i'm the community; VINO may
hanks. IT penetrates business 10 the core The
ation viii never regr,t ANYTHING ned SO dnG in = busI
ness bees making honey for the nationai& & hlXe i y
s " she to saTe ns% and bank
and all other classes made "ognzant OF their posi-
fore differ M With the President strongly upon
the inerianse crit s 1aR m and ss sradusted taxation
He stood now for the same view when he wrote
his Gospel of Wealth seventeen years ago, OF
which he had sent copy 10 the President AFTER the
latter had issued his message III this he explained
his views in regard to graduated taxation and in
heritanoe tax
The term equality, equality in everything in the
general sense. he continued. not equality. Ii
a workman had $1,000 a year, another man $l"ovo
& year and another 81 .oD0op1. II would be a wrong
use OF the word equality say they should be
taxed the same. Adam Smith gave the right solu-
ton 1t should be the object of the lawmakers to
derive from every citizen taxation for the support
OF government in proportion 10 his ability TO pay
That was the true equality.
The subject OF wealth distribution. he said, would
not down. To show how wealth arises, he gave an
imaginary case of farmer with TWO sons lie
gave each a farm, in Manhattan and one in
Harlem. The younger obtained the Manhattan
farm. and both men were honest and of irreproach-
able character. Through the expansion of the city
the children OF the younger became mlonaires
The other farmer prospered fairly we'll but his
children had an advantage over the others They
had 10 do something TO justify the world in sup
porting them Mr.. Carnegie continued:
Who made the wealth of the one family? Not
Hblity. foresight industry. labor. Nothing of the
the best thing that the ever did 10 forget
he had H.; he might have sold it If he had been
Now tell me. my fellows Of the Civic Federation
thing to giorify the one family or to reward the
one family against the other? Who made that
wealth? The community the population, the people.
Then YOU tell me that wealth is sacred 7 say that
that wealth. it was hundreds Of people seJtiins up
@ mere In ,aoqsands 2I people settling around there
nelther have they spun, they come and they die.
] am not in favor OF touching the bee when # is
making the honey. Let the bee work. But when
he passes away. then say the silent partner the
should receive IT'S dividend-a large proportion. 49,
We will suppose there IS another son He settles
sees that railroads essential to the future or
This metropolis. and he embarks in the work and
gets savings: ne IS a bright young man. and at
tracts the sttention Of others lie is taken in
solidates these railroads These men become great
@ slDzenS, re IS a useful man. He does the state
to make pressing extensions, The population
ing So the trafhc so increasing. he could pay div-
gets large interest in it. and he becomes one ~
that class Of multimiIIionaires which no other
nation has !ie is indieenous to America. Now
made that wealth? If New York had remained
village, II the Western States had not developed.
creased in population and ny their labors become
did nor ist anu ~ IiI h n9' WISH 10 visit New York.
back and forth. he would have been mill
n'y: fstae t3in h sy as 6sI9Fe soiey makes huge
man in his lifetime
THE BROTHER N PITTsBURG.
Another brother lie said might settle in Pitts
burg, as his partner. John Walker did early i'm life
He described In feicitous terms which made the
audience laugh. how this young man. il, like his
partner enterprisinG. could fail 10 grow
wealthy by going into the steel industry Con-
'inuns. lie said the country had plenty OF coke ana
ore. which Great Britain had not: the demand for
steer increased enormously. and the man grew
rich 1t was the growth of the American public
which made that wealth. 1t the people OF the
United States
And say" he continued that when the tir,a
comes that such men die the community fails in its
duty and our Legislators fail fin their duty if the,
DO not exact tremendous progressive share
no IDEA OF making his children paupers or inter
1efing with his right leave them a con,uetence
Dur II is an enormous sum, those millions wbirb
fhould nave different lame from propertv When
Z" man was man OF property in the old davs il
meant that he had enough for himself and his
Ts1rr frr