The Idaho Springs siftings-news., 1906-12-08

Standard OIL company and has been
shown since by the Investigation of the
tobacco and sugar trusts as to the init
ative OF big railroads. often railroads
would like to combine for the purpose OF
preventing a hls shipper from maintain
ing improper advantages at the expense
of small shippers and of the general pub
lie Such combination. instead of being
forbidden by law. should Toe favored In
other words II should be permitted To
railroads 10 make agreements, provided
these agreements were sanctioned by TN.
We're published With these two condi-
tions complied with II is Impossible 10
see what harm such combination could
do to the public at large. 1t is public
evil 70 have on the statute books a law
inca hIc OF fGll enforcement because
both Judges and turtes realize that It's
full enforcement would destroy the bEsi-
ness OF the country, for the result is 10
make decent railroad men violators OF
the law against their Will. and to put a
premium on the behavior OF the wilfll
wronsdoers Such a result in turn tends
to throw the decent man ana the wllful
wrongdoer into close association, and IN
the end to drag down the former To the
latter's level; Tor the man who becomes
a lawhrcaker in one way unhappiy tends
willing to break it in many ways. No
more srathing condemnation could be
visited upon law than is contained in
the words Of the Interstate commerce
commission when. in commenting upon
the tuGt th1t the numerous JOINT tIatlt
associations do technically violate the
law. they say. The decision of the
United states supreme court in the
TransuiSsssippi case and the Joint
Traffic association case has produced no
practical effect upon the railway opera
tons OF the country Such associRuons,
in fact exist now they did before
these decisions. and with the same gen
eral eject In Justice TO all parties. We
ought probably To add that ii is difficult
to see how our interstate railways could
be operated with due regard to the inter-
est OF the shipper and the railway
without concerted action OF the kind af-
forded thru these associations"
THIS means that the law as construed
by the supreme court is such that the
business Of the country cannot bc con
dueted without breaking it. | recommend
that you give careful and early consider
opinion OF the Interstate commerce com
mission justified. that you amend the
law so as TO obviate the evil disclosed.
Inheritance and Income Tax.
It was expected that the president
would refer in some way to his belief
in tho necessity for the curbiuS of enor-
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
sraduated inheritance tax. and, II 20 81
BILE, graduated income tax. He says;
I am well aware that such subject
as this needs long and careful study In
order that the people may become iamil-
lar with what is proposed to be done,
may clearly see the necessity of proceed
ing with wisdom and self-restraiut, and
may make up their minds just how far
they ar" willing to 20 in the matter;
while oul" trained legislators can work
out the project in necessary detail But
feel that in the near future our nation
al legislators should enact law provid-
ing for a graduated inheritanee taX .,,y ey
should be put upon all moneys or other
valuabies coming by gift, bequeSt, or
devise to any Individual or corporation.
II - q heavy
in proportion as the individual benefited
is remote of kin. In any event, in my
increase very heavily with the Increase
of the amount left to any one individual
after certain point has been reached.
and ambition. and a potent source OF
thrift and ambition Is the desire on the
part of the brcadwinner to leave his chil-
dren well OFF. This object can be attained
by making the tax very small on noder-
ate amounts of property left because
the prime object should be to put CON
stantly increasing burden on the inner
itance of those swollen fortunes which
1t is certainly of no benefit to THIS coun-
try to perpetuate.
There can be no question of the eth
ical prnpriety Of the government thus de
termining the conditions upon which any
gift or Inheritance should be received.
Exactly how far the inheritance tax
would, incident, have the effect of
limiting the transmission by devise or
gift of the enormous fortunes In question
it IS not necessary at present to discuss
1t i3 wise that progress IN tflls uFeCtlpu
Should be gradual. At first a permanent
national inheritance tax, while 1t mSht
be more substantial than ANY such tax
has hitherto been, need not approximate,
either in amount or in the extent of the
Increase by graduation, to what such
tax should ultimately be.
Inheritance Tax Constitutional.
This species Of tax has again and again
been imposed, altho only temporarily. by
the national government; II was first
imposed by the 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 tho amount
made in the case of certain close kin. A
similar tax was again imposed by the
act of July l. 1862; a minimum sum OF
81 600 in personal property being excepted
from taxation. the tax theh becoming
trogressive according to the remoteuess
IF kin The war-revenue act of June 49,
ls9s, provided for an inheritanc tax on
my sum exceeding the value Of 10000
the rate of tax increasing both IN accord
anCe with the amounts LEFT ana IN ac-
rordance 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 Il direct tax put
m impose Of excise which was both con-
stitutional and valid. More recently the
aourt in an opinion delivered by Mr.
Justice White, which contained an ex-
.eedingly able and elaborate discussion
of the powers of the congress to impose
leath duties, sustained the constitution
atty of the Inheritance tax feature of the
Xar-revenue act of 1888.
Is Income Tax Constitutional?
In its incidents. and apart from the