Omaha daily bee., 1906-12-14
BELMONT STATES POSITION
Head Of Civic Federation Says he Was
Misunderstood by Reporters,
IN ~ % CARNEGIE EXPRESS VIEWS
- FRvors Income Tax, but the
after t. Better Pleased with
- Proposed Tax on In
heritances.


annual meeting.
Mr. Belmont declared his remarks Of
yesterday had been mislnterpreted by the
newspa pers. What L said yesterday" said
Mr.. Belmont, was that wise and just
method Of taxation would be Of great good;
but that spoliation was quite another mat
ter. I do not believe that men as gem
eral proposition can accumulate large for
tunes dishonesty and improperly. These
fortunes mostly come through large cor
porations. The stockholders have rights,
and that these fortunes are accumulated in
an improper manner all over this country
and therefore must be reduced in a puni-
tive spirit, was what 1 meant yesterday to
deny. Not that tax on inheritance should
not be passed, but that it should be done
from the point Of view Of just and wise
taxation, and on some economic grounds"
President Belmont then introduced the
next speaker NJ f. Ingalls,, chairman OF
the Cleveland. Cincinnati, Chicago & st.
Louis railroad.
Mr. ingalls, spoke on the subject of in
come and inheritance tax to limit large
accumulations OF wealth In speaking OF
the causes which produce multi-millionaires
Mr.. Ingalls, mentioned the tariff, railroad
rebates and granting of franchises by com
munities to public service corporations as
the principal ones. He continued in part:
Income Tax Possible.
With reference to limiting these for
tunes by an income tax: After considering
the subject carefully, have in the last few
years come to the conclusion that 1t is the
best and fairest tax that can be levied,
but, as a tax, like other taxes, for the sup
! port or this government not for the pur-
/ pose of destroying property-that would
| be sOcialistiC-fOr the purpose of making
| wealth pay its share of the burdens Of the
z paOpIp They Wi fell IL & "A
/ difficult to collect, but no more than any
tax on hidden or unseen property.
| l don't believe In a graduated income
tax on thrifht and energy; each man should
| pay upon his income the same proportion,
pay 1t as a tax for the protection Of his
| property. l would tax all incomes OF N'OOO
/ or over on a fixed percentage. Under
/ $1,000, the income from the tax would not
be enough to pay for the cost Of collection
| l believe the proper law for doing this
| can be framed and be passed by congress
| to stand the test Of the courts. If it will
| not, then let us go to the people with a
| constitutional amendment that will make
The inheritance tax has already been
taken up by the different states-some OF
them with a graded tax and others with
/ a straight tax. 1 am in favor of the IN
heritanee tax as a tax for paying the eX-
| 1 would also enact legislation, either by
the national government or by the states,
that no man should have the right to dis
pose Of the bulk of his property by will,
but that when he dies II shall be divided
I equally among bis sheirsf as the law directs 3.
right to tie up his property in trust Tor
one life, or any time. 1t Is simply con-
tinuenoe Of the old lay. lay Of lent entail iI,6s under
fortunes together, when, II they were di,
vided equally among the heirs, they would
soon scatter and be harmless man
estate should be broken up at his death
and distributed, and II the heirs are in
competent to manage the property that Is
handed down to them, then 1t Is better tc
have the wealth distributed, and perhaps
after they have lost the inheritance they
will turn around and become useful citi-
zens and produce wealth of their own.
Danger of Hysteria,
There is danger IN the present condition
| Of public opinion that We Will drift into
a hysteria that will enact legislation thai
will seriously hurt our business and pro
/ duce disaster. Especially is this true ir
| reference to the railways, and we mus
the largest business force in the country
One-fifth OF all the population depend upor
them for their existence. either as en-
ployes or in the business of manufacturing
and producing supplies etc And while we
set our face like a stone wall against any
of the illegal conditions of the past beinl
continued, we should give them fair op
portunity to carry on their business In thu
future and thus prevent disaster to thu
The real menace, TO my mind, is tn,
Sherman antitrust law, sO-called. 1 hap
) pen TO know that the distinguished authoI
: OF this law, when 1t was passed, did no
, think II applied to the railways and II
, their conduct Of their business.
There is hardly an agreement betweei
= employers but what in the END, under th
law, win be called a restraint of trade
, Your stock exchanges that fix prices 70
commissions your assoSiatlons OF diiIeten
, how reasonable those prices may be-al
are violations Of the law. Business canno
long survive such restrictions.
D Take labor unions, for instance. Do yol
: suppose there is any sane man who read
the Sherman law, and then reads the agree
do hVF aF he TTVfO IN
I what viii say that they are agreement
d I'm restraint OF trade and every man VIII
r makes them Is subject to tine and imprison
n ment? And yet who will not concede tina
T labor unions are beneficial; that properl
G conducted they are Of great assistance I
the workingman to better his condition an
+ Are you willing TO take the risk Of a lay
like this? Nobody desires II; nobod
I ! wishes 1t.
William d. Guthrie. lawyer who led tn
T. hight in the local courts against the in
. come tax, on constitutional grounds, wa
the next speaker. He held that there mus
. under American institutions. be equallt
: Of taxation
= Carnegie for Inheritance Tax.
:, Andrew Carnegie, who followed Mr. Guth
, rie. said that he was In hearty accord wit
e Mr.. Guthrie.
n 'I think an income tax would penetrat
d business to the core" said Mr Carnegi,
Il think this country would never regre
l. anything so much MS to impose such a tal
l. l differ with the president strongly on III
J., subject OF the income tax. But l am (
a peculiar position on the inheritance tal
J., advocating that as something like gettln
.s a better distribution of wealth The sui
n ject of wealth distribution will not down.
d Mr. Carnegie said he believed that ina
% much as the wealth properly belonged
n the community, on the death of the Dol
SCISSOR the latter should acquire a gres
portion Of the wealth having had a lars
part TO do with its development.
l. "Our country fails IN its duty" said NJ
lr Carnegie. If IL does not exact a share.
Il tremndous share OF the estate Of the emo
is mously wealthy man upon his death. III
Is money belongs TO the community Do N,
,e mistake me. I do not advocate the maxim
Of a man a pauper or the pauperizipg
his children but II is not the millionail
who made the wealth. He did not make Il
&c ore, or the coal. or the gold that he du
rs out OF the ground. The Montana eopp,
r mine owner did not make his wealth.
Sc bel6ngs IN the abstract 70 the people vi
use Il and who produce the use viii,
makes Il valuable.
Il am with the president. then 20 "a
y heavily by graduated taxation every ma