The Globe-republican., 1906-12-06

: was shown IN the investigation Of On
: Standard OIL company and az has bee
shown since by the investigation Of tn
" alive Of Big railroads. 1Cftsn railroad
would like to combine for the purpose o
. preventing big shipper from maintain
Ing improper advantages at the expens
Of small shippers and Of the general, pub
| forbidden by law, should be favored. II
other words, It should be permitted L
4 railroads to make agreements. provided
"A these agreements were sanctioned by tn.
were published. with these two condi
tons compiled With II Is Impossible e
N see what harm such combination could
ldo to the public at large. II lisa public
evil to have on the statute books Law
incapable Of full enforcement because
A both Judges and Jurics realize that 'ite
Il full enforcement would destroy the bust
| ness of the country; for the result Is to
a make decent railroad men violators OF
II the law against their yill. and to put
wrongdoers. Such a result In turn tends
to throw the decent man and the wilful
wrongdoer into close association, and ip
1.-THE end to drag down the former to the
latters level: for the man who becomes
a lawbreaker in one way unhappi!y tends
Ito lose all respect for law and to be
willing to break II In many ways. No
more scathing condemnation could be
| visited upon law than 10 contained In
the words OF the Interstate commerce
associations do technically Violate the
law, they say: THE decision of the
! United States supreme court In the
| Traffic association case has produced no
| practical effect upon the railway opera
| lions of the country Such associations,
in fact, exist now. as they did before
| these decisions. and with the same gen
ought probably to add that it 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 be con-
Quoted without breaking It. ] recommend ri
that you give careful and early consider. =
alton to this subject, and II you find the
opinion Of the interstate commerce COM
mission justified, that you amend the
law so as to obviate the evil disclosed.
"a Inheritance and Income Tax. w Z"
4 It was expected that the president
would refer In some way to his belief /
lin the necessity for the curbing Of enor-
nous fortunes, and he has done so by
come and an inheritance tax. He be-
lieves the government should Impose
graduated inheritance tax, and, II posi-
Bile, a graduated income tax. He says:
u am we'll aware that such subject
as this needs long and careful study In
order that the people may become famil-
lar with what Is proposed to be done.
may clearly see the necessity OF proceed
ing with wisdom and self-restraint. and
may make up their minds just how far
hAU ttna to M In m ~ a
while only 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 graduated Inheritance tax by |
which a steadily increasing rate OF duty |
should be put upon all moneys or other
valuabes coming by gift, bequest, or
devise to any Individual or corporation.
1t may be well to make the tax heavy
in proportion as the individual benefited
Is remote of kin. In any event. In my
judgment the pro rata of the tax should
increase very heavily with the increase
of the amount left to any one individual
after 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 well OFF. This object can be attained
by making the tax very small on moder-
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
II is certainly OF no benefit to this coun-
try to perpetuate.
There can be no question Of the eth
ical proprlety Of the government thus de-
termining the conditions upon which any
gift or inheritance should be received.
Exactly how far the inheritance tax
would, as an Incident, have the effect OF
limiting the transmission by devise or
gift Of the enormous fortunes In question
L is not necessary at present to discuss.
II is wise that progress In this direction
should be gradual. At first permanent
national inheritance tax, while II 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. ..t .-t |
Inheritance Tax Constitutional.
This species OF tax has again and again
)een imposed, altho only temporarily by
he national government. 1t was first
imposed by the act Of July 6, 1897, when
he makers of the Constitution were
live and at the head OF affairs. 1t was
| graduated tax; tho small in amount. | 4
he rate was increased with the amount
eft to any Individual, exceptions being
made In the case Of certain close kin. A
similar tax was again imposed by the
IL a |
y 900 In personal property being excepted
rom taxation, the tax then becoming |
progressive according to the remoteness
" kin. The war-revenue act OF June IL.
1893, provided for an Inheritance tax on
my sum exceeding the value Of $4,000.
he rate OF tax increasing both in accord
ince with the amounts left and in ac-
,ordance with the legatee's remOteness |
If Kin. The supreme court has held that
he succession tax imposed at the time L,
II the civil war was not a direct tax but
IN impose OF excise which was both con-
;titutional and valid More recently the
court, In an opinion delivered by Mr.. I
Justice White, which contained an ex-
'eedingly able and elaborate discussion
the powers q tie congress T. impose
llity of the inheritance tax feature of the
act Of 1888 .....rf 4
~ 10 income Tax CONSTITUTIONAL la'
SIN Its Incidents, and apart from the
main purpose OF raising reyenue,l an q
ncome tax stands on an entirely differ
mt footing from an inheritance tax, be-
.ause 1t involves no question of the per-
,etuation Of fortunes swollen to an I'M
essence question OF the proper adjust
nent OF burdens to- benefltsstS AB the a
aw now stands 1t Is undoubtedly diff |
.uit to devise a national income tax
which shall beg constitutional D But IS
whether 1t Is absolutely impossible is an
,ther question; and II posslblet 1t Is most |
certainly desirable The first purely in (,
ome tax law was past by the congress
n 1861, but the most Important law deal4 q,
ng with the subject was, that Of 1894.
This the court held to be unconstitu-7
'aThe question Is undoubtedly very IN
ricate, delicate, and Troublesome The
lecision of the court was only reached
~ one majority, II Is the, law OF the
and, and, of course. ID excepted as such I
md loyalty obeyed by all good citizens
the hesitation evidently
cit by the, court asa whole in coming b.
o conclusion, when considered to-