The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1906-12-06

Standard OIL company and as has been
shown since by the investigation of the
tobacco and sugar trusts as to the initi-
alive of big railroads. Often railroads
would like to combine for the purpose of
preventing a big shipper from maintain
ing improper advantages at the expense
of small shippers and of the general pub
lie. Such a combination, instead of being
forbidden by law. should be favored. In
railroads to make agreements, provided
these agreements were sanctioned by the
interstate Msee nds,,sSea. With f ibesa tMo con and
lions compiled with it is Impossible to
see what harm such a combination could
do to the public at large. 1t is a public
incapable 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
premium on the behavior Of the wilful
to throw the decent man and the wilful
~wrongdoer into close association, and in
the end to drag down the former to the
q lawbreaker in one way unhappily tends.
to lose all respect for law and to be
willing to break it in many ways. No
the words Of the Interstate eommerce
commission when. in commenting upon
law; they say: The decision Of tie
Traffic ASSOCIATION case has produced no
practical effect upo the railway opera
ions OF the country. Such associations,
these decisions. and with the same gen
eral effect. In justice to all parties. we
ought probably to add that it is difficult
be operated with due regard to the inter-
est Of the. shipper and the railway
WITHOUT concerted action Of the kind af-
This means that the law as construed
by the supreme court is such that the
business Of the country cannot be con-
that you give careful and early consider
alton to this subject, and if you find the
opinion Of the Interstate com
inheritance and Income Tax.
would refer in some way to his belief
nous fortunes, and he has done so by
recommending legislation for both in
come and an Inheritance tax. He be-
graduated inheritance tax, and, if posi-
BILE, a graduated income tax. He says:
Il am we'll aware that such a subject
order that the people may become famil-
lar with what is proposed to be done,
may clearly see the necessity Of proceed
ing In with VIII y wisdom ld mar and l,; self-r fatT Int, and > d
while only trained legislators can work
out the project in necessary detail. But
l feel that in the near future our nation
al legislators should enact a law provid-
ing. for a graduated inheritance tax by
which a steadily increasing rate of duty
d dsda'' to any So1'i indiv ia 1'l or Evaporation:
It may be well to make the tax heavy
is remote Of kin. In any event, in my
judgment the pro rata of the tax should
Increase very heavily with the increase
after a certain point has been reached.
1t is most desirable to encourage thrift
and ambition, and a potent source of
part of the ~breadwinner to leave his chill
dren we'll off. This object can be attained
by making the tax very small on moder-
the the p am9en OBJECT ct sRh rSRsfi Se to tefI put 0s q eons
stantly increasing burden on the inner
itance of those swollen fortunes which
it is certainly of no benefit to this coun-
try to perpetuate.
There can be no question Of the eth
ical propriety of the government thus de-
tsrmining the conditions uPor which any
Exactly how far the INHERITANCE tax
would, as an incident, have the effect OF
limiting the transmission by devise or
S1h VI III AN AioN' SeAiSS - NN'SAS
1t is not necessary at, present to discuss.
1t is. wise that progress in this direction
should be gradual. AT first a permanent
national inheritance tax, while 1T might
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 a
tax should ultimately be.
inheritance Tax Constitutional.
'"This species Of tax has again and again
been imposed, altho only temporarily, by
i the DatiG py tl, g0 seE of gaiy t. l. 49, 49, w fss5
the makers Of tho Constitution were
alive and at the head of affairs. 1t was
z graduated xa1u tee tax; tho snail 1riah t IN a a1n .
made in the case Of certain close kin. x
similar tax was again Imposed iHro the ne
$1,000 in personal property being excepted
from taxation, the tax then becoming
progressive according to the remoteness
1893, provided for an inheritance tax on
any sum exceeding the value of $4,000,
the rate Of tax increasing both IN accord
cordance with the legatee's remoteness
Of kin. The supreme court has held that
the succession tax imposed at the time
an impose of excise which was both con-
stitutional and valid. More recently the
court. In an opinion delivered by MT.
ceedingly able n elaborate discussion
OF the powers of the congress to impose
death duties. sustained the constitution
elity Of the inheritance tax feature OF the
war-revenue act of 1895.
IL Income Tax Constitutional
In it's 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 it Involves no question OF the per-
petuation Of fortunes swollen to an I'M
healthy size. The question is in its
essence a question of the proper adjust
rSent of burdens to benefits. AS the
law now stands 1t is Undoubtedly diff
cult to devise a national income tax
which shall be constitutional. But
whether it is absolutely impossible is an
other question; and II, possible 1t t* most
certainly desirable. The first purely in
come tax law was past 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 nnconstitu-
tional.
9TH question IL undoubtedly very in
~tricate, delicate, and troublesome. The
decision of the court was only reached
by one majority. 1t is the law Of the
land, and, of course. is excepted as such
and loyalty obeyed by all good citizens.
Nevertheless, the hesitation evidently
felt by the court as a whole In coming
to a conclusion, when considered to-
gether with the previous decisions on
the subject, nay perhaps indicate the
possibility of deYiSing a constitutional