The Ordway new era., 1906-12-07


sss sSsses q 81 So '1sis y - az s
wSSS s s.. sSps e' 10. es e
of small shippers and 81 the ssnsrsi pub
forbidden by law. should be favored. In
other words. II should be permitted to
these agreements were sanctioned by the
bssn 4wn con and
sce what harm such a combination could
do to the public at large II To- public
intS able OF full enforcement because
both Judges and juries realize that Its
full enforcement would destroy the bust
make decent railroad men violators OF
the law against their will. and to put a
wrongdoers. Such u result in turn tends
to throw the decent man and the wilful
the end to drag down the former to the
latter's level: for the man who becomes
a iawbreaker In one way nnhappiiy tends
willing to break it in many ways. No
more scathing condemnation could be
Sses ths Words nen Of hs N
commission when. in commenting upon
the fact that. the numerous Joint traffic
law. they say: The decision of the
United States supreme court In the
frame es. s mt
practical effect upon the railway opera
lions OF the country. Such associations.
these decisions. and with the same gem
erai effect. In Justice to aii parties. we
to see how our Interstate railways could
be operated with due regard to the inter-
est OF tho shipper and the railway
forded thru these associations
This means that the law as construed
by the supreme court is such that the
business of the country he n
Quoted 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.
II was expected that the president
would refer In some way to his belief
in tho necessity for the eurbing OF enor-
nous fortunes. and he has done by
recommending legislation for both In
come and an Inheritance tax. He be-
iicves tho government should impose n
graduated Inheritance tax. and. II po- Isl
BILE: graduated Income tax. He says:
II am well aware that such n subject
as this needs long and careful study In
order that the people may become famil-
lar with what Is proposed to be done
ing with wisdom and sclf-rcstraint. and
may may make na , IH their minds Just how lar
while only trained legislators can work
out tho project in necessary detail. But
feel that In tho near future our nation
ing for a graduated inheritance tax by
which n steadily increasing rate OF duty
should be put upon nll moneys or other
devise to any individual or corporation
II may be well to make the tax heavy
is rsmose gp OF Kin. XII '"f In y" amy event. % In my
Judgment the pro rata OF the tax should
increase very heavily with the Increase
after n certain point has been reached.
IL ts most desirable to encourage thrift
sst, lnd nna nna os
part OF the breadwinncr to leave his chill
drcn well on. This object can be attained
nie amounts of property left; because
the prime object should be To put con-
stnntly Increasing @ burden ,,I on the inhel, s,n,
Il Is certainly OF no benefit to this coun-
try to parpetuntc.
There can bc no question of the eth
icnl propricty OF the government thus de-
tcrmlning tho conditions upon which any
Eifs or inhsrit1nee & should be rsseivsa ,sx
would. ns m Incident. have the effect OF
limiting the transmission by devise or
gift OF tho enormous fortunes In question
Il In NOT necessary at present to discuss.
II is wise that progrcss In this direction
should be gradual AT frst permanent
national inheritance tax. while " might
bo more substantial than any such tax
has hitherto been. need not approximate.
either In amount or In the extent OF the
tax should ultimately bc.
Inheritance Tax Constitutional.
This species of tax has again and again
Imposed by tho act OF July 8. 1877. when
alive shS de and al the he head @ Of aflairs. 1t was
graduated tax: tho small In amount.
the ratio wa: = Increased l. with the amount Mount
made in tho case of certain close kin. a
similar tax was again imposed by the
81. COO in personal property being excepted
from taxation. the tax thcn becoming
progressive according to the rcmotencss
1888. provided for an inheritance tax on
any sum exceeding tho value of $4,000.
the rate q tx tx sSth ana m
cordancc with the legatec's remotencss
OF kin. Tho supreme court has held that
| the succession tax Imposed ut tho time
OF the civil war was not a direct tax but
| an impose OF excise which was both con-
and yna, VALID MSTs SsIs.rss rsseny S ME-
Justice White, which contained an ex-
ceedingiy able and elaborate discussion
death tn duties. sustained the. constitution
war-revenue act OF 1888.
10 Income Tax constitutionai7
I'm its incidents. and apart from the
main purpose of raising revenue, an
income tax stands on an entirely differ
ent footing from an Inheritance tax. be-
cause Il involves no question of the per-
pctuntion OF fortunes swollen to an un-
healthy size. The question Ia in its
essence q question Of the proper ADJUST
law now stands II is undoubtedly DIM
cult to devise q national income tax
which shall be constitutional. But
whether il Is absolutely impossible is an
| other question: and II possible 1t is most
certainly desirable. Tho first purely in
| ,n,v,o tnY law waa mast by the congress-
| in 1861, but the most important law deal
ing with the subject was that of 1894.
| This the court held to be unconstitu-
tionn1.
| tricnte, delicate. and troublesome. The
by one majority. 1t Is the law OF the
land, and, OF course. is excepted as such
and loyalty obeyed by NIL good citizens.
| felt BY the court as a whole in coming
to a conclusion. when considered to-