The labor world. [volume] (Duluth, Minn.) 1896-current, 1906-04-28
j. s. SENATOR T|LLMAN
FAVORS INCOME TAX
Thinks Levy on Inheritance Is
Hardly Adequate Only Hap
pens Once In Life.
Some Criticisms on President
Roosevelt's Speech on the
"Muck Rake" Man.

WASHINGTON. D. C. April &C.
There Is ~ great deal In President
Roosevelts speech on the Muck
Rake man that is very apropos to
the situation" said Senator Tillman III
begnng a criticism of the President
the other day.
1T would come with q good deal
more force" he continued, If there
was not the specter of the whitewash
brush hanging around the corner some
where The President doesn't realize
that he INDUCES In whitewashing.
1T is very difficult" continued the
Senator, with quizzical smile, for
us to measure our own feelings accu-
rately when dealing with our friends.
THE inheritance tax is hardly an
adequate method Of getting at stupen-
dous fortunes because it only comes
once In life time.
Il have always been a strong believ-
er and advocate of an income tax, and
a graduated one at that. OF course,
the Supreme Court has In one opinion
upheld the principles Of an income tax,
and in another it has declared such a
form of taxation to be unconstitution-
al. The last time the question was
passed on, one Of the justices changed
his mind I would be willing to vote
tomorrow to put an income tax law up
to the Supreme Court again, and see
If it hasn't got new light.
Il would also support an inheritance
tax bill. If a graduated inheritance
tax was provided, limiting the amount
that could be devised to any individu-
>al, then the question would arise as to
whether such law did not amount
absolutely to confiscation. Let for
tunes pay, and not grow too big, ra-
ther than seize the whole fortune when
the man dies.
Il believe that great fortunes are
menace to this republic, and something
will have to be done towards breaking
them up.
II don't imagine that the issue re-
garding an inheritance or income tax
will presented to the present Congress-
There is a general feeling that these
fortunes are menace and that some
thing ought to be done to divide them
up. But it will take a campaign of
education to arouse the people to such
questions before the matter will be
likely to assume any legislative shape
llq7S Some ultra radical men, like myself.
would be ready to- favor such leg1sla-
ton, because we believe it to be fun
damentally right.
II would much prefer to set to work
actively to change conditions when
make such fortunes possible. There's
where the real remedy lies. 1t Is no
use continuing the conditions that crc-
ate such fortunes and then work to
destroy the results. Let's destroy the
cause and we will accomplish good
deal more because until we do that these
excrescences or cancers will continue
to grow as long as the conditions which
produce them are permitted to remain.
"You might destroy all the great for
tunes Of America tomorrow. and, II
YOU leave conditions the same, In tWen-
ty years you will be confronted again
with the same trouble.
There are probably some legitimate
fortunes, like that Of Marshall Field
and others that ] know of, that have
been accumulated because Of the rapid
growth of the country and the oppor-
tunities for shrewd investment that
cannot be changed by law and ought
not to be changed by law. The only
thing to be done In a case like that is
to legislate so the fortune would be
divided up. If you put $10O,0OO,O00 on
interest at or per cent 1t Will grow
faster than it can be spent by man
or his family. Now, you have got to
destroy that by some legislation that
provides for the imposition of lnheri-
tance taxes after the mans death, or
you could primarily keep it from in
creasing by an income tax. In the
first place, an income tax would pre-
vent this great accretion of wealth.,
while an inheritance tax would tend to
distribute it at the end Of a lifetime.
But I would much prefer to go to
the root Of the matter and change con-
ditions that make the accumulation OF
such great fortunes possible.
Referring to the suggestion OF the
President that 'the national govern
ment must in some form exercise super
vision over corporations engaged in In
terstate business, whether by license or
otherwise so as to permit us to deal
with the far-reaching evils of overca-
pitalization, Senator Tillman express
ed the opinion that an adequate law
covering the Presidents suggestions
would be good thing.
'The only way that Congress could
handle such corporations" said the sem
ator, would be by taxation or some
form of licensing that would be con-
stitutional. The fact that Congress
taxes state banks out of existance
make it possible to tax insurance
companies out Of existence, but wheth-
er the government could regulate or
control by taxation is a problem.
don't see how it could be done. You
could destroy them, but I don't see how
they could be controlled"
'Reverting to the Inheritance tax the
Senator suggested that it would be wise
for the President to push his plan to
an early conclusion, as John D. Rookie
Teller was getting along in years. and
the beauties of an inheritance tax could
not be brought out to better advantage
than by levying on his mammoth estate
when it passes to others.