Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1906-12-07

was shown In the Investigation Of the
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 combination. instead Of being
forbidden by law. should be favored. In
other words, II should be permitted TO
railroads TO make agreements. provided
these agreements were sanctioned by the
interstate commerce commission and
were published. With these two condi-
tons complied with II Is impossible 10
see what harm such combination could
do to the public at large II is a public
evil to have on the statute books law
incapable Of full enforcement because
both judges and turies realize that its
full enforcement would destroy the busl-
ness Of the country: for the result Is to
make decent railroad men violators Of
the law against their will and to put a
premium on the behavior Of the wilful
wrongdoers. Such q result IN turn tends
to throw the decent man and the wIlful
wrongdoer into close association. and In
the end to drag down the former TO the
latter's level: for the man who becomes
Q lawbreaksr In one way unhappIly tends
To lose all respect for law and to be
willing to break 1t In many wayk No
more scathing condemnation could Be-
the words Of the interstate eommercs
commission when, In commenting upon
the fact that the numerous Joint franc
associations do technically violate the
law, they say: The decision Of TIE
United States supreme court IN ths
Transnississlppi case and the Joint
Trafnc association case has produced no
practical effect upon the railway opera
tions Of the country. Such associations.
10 fact, exist now a. they did before
these decisions, and with the same gen.
ought probably To add that II is difticult
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 10 such that the
business Of the country cannot be con-
Quoted without breaking It. recommend
that you give careful and early consider
alton to this subject, and II you find the
opinion OF the Interstate commerce conf
mission justified, that you amend the
Inheritance and Income Tax
1t was expected that the president
would refer in some way TO his belief
In the necessity for the curbing 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
graduated inheritance tax. and. II posi-
Bile. graduated income tax. He says:
Il am well aware that such Q 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 sef-restraint, and
may make up their minds just how far
while only trained legislators can work
out the project in necessary detail. But
feel that In the gear future our nation
al legislators should enact q law provid-
ing for a graduated inheritance tax BY
which . steadily increasing rate Of duty
should be put upon all moneys or other
valuables 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 tar should
increase very heavily with the increase
OF the amount left 10 any one Individual
after certain point has been reached.
1t is moSt desirable to encourage thrift
and ambition, and potent source Of
thrift and ambition Is the desire on the
part Of the breadwinner 10 leave his chill
dren well on. This object can be attained
by making the tar very small on moder-
ate amounts Of property left: because
the prime object should be to put con-
stantly increasing burden on the inher-
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 propriety 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
II Is not necessary at present to discuss.
II Is wise that progress in this direction
should be gradual. At first a permanent
national inheritance tax, while It 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
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, 1871, when
the makers of the Constitution were
alive and at the head Of affairs. II was
q graduated tax; tho small In amount,
the rate was increased with the amount
left TO any individual, exceptions being
made in the Case OF certain close kin A
similar tax was again imposed by the
act Of July |. lSG2; a minimum sum OF
81 900 in personal property being excepted
from taxation, the tax then becoming
progressive according to the remoteness
Of kin. The war-revenue act OF June IS,
1898, provided for an inheritance tax on
any sum exceeding the value Of SO 100,
the rate Of tax increasing both In accord
ance with the amounts left and in &C
cordance 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 direct tar but
an impose Of excise which was both con-
stitutionsl and valid. More recently the
court, in an opinion delivered by Mr..
Justice White, which contained an ex-
ceedingly able and elaborate discussion
Va AlS PSWCte Va Nhu NohhiCoo " luBOSu
death duties, sustained the constitution
atty of the inheritance tax feature OF the
war-revenue act Of 1855.
10 Income Tax constitutionalf
an its incidents, and apart from the
main purpose Of raising revenue, an
income tax stands on an entirely differ
ent footing from an inheritance tai, be-
cause II involves no question OF the par
petuation Of fortunes swollen to an un-
healthy nxe. The question IL In its
essence Q question OF the proper adjust
msnt of burdens to benefits. AS the
law now stands Il IL undoubtedly diffi-
cult 10 devise q national income tar
which shall b constitutional. But
whether II II absolutely impossible "a an
other question; and II possible Il 10 most
certainly desirable. The first purely in
come tax law was past By the CONGRESS
In 1851. but the most important law DEAL
Ing with the subject was that Of lssl
This tbs court held to b unconstitu-
tonai.
"The question 70 undoubtedly very In
tricate, delicate, and Troublesome. The
decision Of the court was only reached
BY one majority. II Is the law Of the
land, and, Of course, 20 excepted as such
and loyalty ooeysd By all good citirens.
Nevertheless. the hesitation evidently
felt by the court az q whole In cominr
% q rAnNlunfA1 shan