The sun., 1906-12-05


and 10 put a premium on the behavior Of
the wilful wrongdoers. Such a result in
turn tends to throw the decent man and
the wiiful wrongdoer into close association,
AND In the end to drag down the former to
the latter's level; for the man who becomes a
lagbrealxer in one way unhappiy tends to
lo&e all respect for law and to be willing TO
<-eak II in many ways. No more scathing
condemnation could be visited upon a law
III an Is contained in the words of the Inter
state Commerce Commission when, in
commenting upon the fact that the nu-
rnerous Joint traffic associations do tech
t,iscision of the United States Supreme
kourt in the Trans Missouri case and the
mt Traffic Association case has produced
practical effect upon the railway opera
nus of the country. Such associations, in
lot. exist now as they did before these
cisions. and with the same general effect.
IA Justice Co all parties we ought probably
, add that it is difficult to see how our
akerstate railways could be operated with
hne regard TO the interest Of the shipper
ard the railway without concerted action
of the kind afforded through these asso-
cations"
the Supreme Court is such that the busi-
Dess OF the country cannot be conducted
without breaking it, recommend that you
give careful and early consideration 20
this subject and IL you find the opinion OF the
Iuterstate Commerce Commission justified,
that you amend the law so as to obviste
the evil disclosed.
INHERITANCE AND INCOME TAX.
The question Of taxation is difficult in any
country, but it is especially difficult in ours
With its Federal system OF government.
Some taxes should on every ground be
levied in a small district for use in that
district. Thus the ia axation OF real estate
r. peculiarly one for the immediate locality
in which the real estate is found. Again,
there ia no more legitimate tax for any
state than a tax on the franchises con-
ferred by that State upon street railroads
and similar corporations which operate
wholly within the State boundaries, some
times In one and sometimes in several
municipalities or other minor divisions OF
the State. But there are many kinds OF
taxes which can only be levied by the gen.
era} Government so as to produce the best
results, because, among other reasons.
the attempt to impose them in one par
tioular State too often results merely in
driving the corporation or individual
State. The national Government
has long derived its chief reve-
nue. from a tariff on imports and from
an internal or excise tax. In addition to
CUR system Of taxation is revised, the ma
tonal Government should impose a gradu-
sted dinheritancetax and il possible, grad
Hated income tax. The man Of great
wealth owes a peculiar obligation to the
State, because he derives special advan-
tages from the mere existence Of govern
ment. Not only should he recognize this
obligation in the way he leads his daily
This money, but it should also be recog-
nized by the way in which he pays for
\ the protection the State gives him. On the
one hand it is desirable that he should
assume his full and proper share OF the
burden Of taxation; on the other hand. it
Is quite as necessary that in this kind of
taxation where the men who vote the tax
pay but little Of it,, there should ~ clear
recognition Of the danger of inaugurating
any such system save in spirit Of entire
Justice and moderation. Whenever we as
people, undertake to remodel our taxa
ton system along the lines suggested we
must make it clear beyond peradyenture
that our aim is to distribute the burden
Of supporting the Government more equita-
bly, than at present; that we intend to treat
rich man and poor man on a basis OF alb
solute equality, and that we regard 1t as
equally fatal to true democracy to do or
permit injustice to the one as to do or per- |
init injustice TO the other.
am well aware that such subject as
this needs long and careful study in order |
that the people may become familiar with |
what IL proposed to be done, may clearly
see the necessity OF proceeding with wisdom |
and self-restraint. and may make up their |
Yqinds just how far they are willing TO go |
II the matter; while only trained legislators |
an work out the project in necessary de- |
Ill. But feel that in the near future our |
ational legislators should enact law |
roviding for a graduated inheritance tax |
y which steadily increasing rate of duty |
hould be put upon all moneys or other |
aluables coming by gift, bequest, or devise |
any individual or corporation. IL may |
le well 10 make the tax heavy in proportion |
the individual benefited is remote OF kin. |
, a any event, in my judgment the pro rata |
the tax should increase very heavily with |
he increase of the amount left TO any one |
Individual after a certain point has been
aached. II Ia most desirable to encourage
RI n n
lrift and ambition il the desire on the part
the breadwinner TO leave his children well
n. This object can be attained by making
he tax very small on moderate amounts OF
foperty left, because the prime object
hould be TO put a const antly increasing
urden on the inheritance of those swollen
ortunes which it is certainly of no benefit
this country TO perpetuate.
There can be no question OF the ethical
ropriety of the Government thus de-
\ armining the conditions upon which any
ift or Inheritance should be received. Ex-
city how far the inheritance tax would,
an incident, have the effect of limiting
ne Transmission by devise or gift Of the
norrnous fortunes an question it is not
lecessary at present TO discuss. IL is wise
hat progress in this direction should be
Tadual AT first a permanent national in
leritance tax, while it might be more sub
fantial than any such tax has hitherto
zen, need not approximate, either in
mount or In the extent Of the increase by
ultimately be.
This species OF tax has again and again
been imposed, although only temporarily, by
J the national Government. 1t was first inn
posed by the act of July o, 1897, when the
makers OF the Constitution were alive and at
+. the head Of affairs. 1t was q graduated tax;
though small in amount, the rate was in
creased with the amount left TO any in
dividual. exceptions being made in the
ease of certa IN close kin. A similar tax was
/. again imposed by the act of July 1, 1852,
minimum sum Of 81 900 in personal property
being excepted from taxation the tax
then becoming progressive according to the
femoteness Of kin. The war revenue act OF
June 13, 1898, provided for an inheritance
iax on any sum exceeding the value OF
4 no 600 the rate Of the tax increasing both in
Hccordance with the amounts left and in
accordance 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 direct tax, but an
impost or excise which was both consti-
tutional and valid. More recently the
3Ourt, in an opinion delivered by Mr. JUS
4 ffoa White which contained an exceed-