Charlevoix county herald., 1907-06-22

torclDly 10 the use OF our waterways
for transportation. But IL Is obvious
that this is only one OF their many
uses. and that a planned and orderly
development Is impossible except by
taking into account all the services
they are capable of rendering. 1t was
upon this ground that the inland wa
terways commission was recently APP
pointed. Their duty Is to propose q
comprehensive plan for the Improve
ment and utilization OF those great
waterways which are the great poten-
tial highways OF the country. Their
duty Is also to bring together the
points OF view OF all users OF streams.
and to submit a general plan for the
development and conservation OF the
vast natural resources Of the water
ways OF the United States. Clearly II
Is impossible for the waterways COM
mission to accomplish it's great task
without considering the relation of
streams to the conservation and use OF
all other natural resources. and have
asked that it do so. Here. then. for the
first time. the orderly development and
planned conservative use OF all our
natural resources Is presented as
single problem. One by one the indi-
vfdual tasks In this great problemt have
already been undertaken One by one
In practical fashion the methods OF
dealing with them were worked out.
a success by its actual working. Again,
actual experience has shown that the
national forests will fulfill the larger
purpose for which they were created
All who have thoughtfully studied the
subject have come to see that the solu-
ton Of the public lands question lies
with the home maker. with the settler
who lives on his land and that gov
eminent control OF the mineral fuels
and the public grazing lands Is neces-
sary and inevitable. Each OF these
conclusions represented a movement
OF vast Importance which would confer
large benefits upon the nation, but
which stood by itself. They are con-
nected together. into one great funda-
mental problem-that Of the con-
servation Of all our natural resources
Upon the wise solution of this, much
of our future obviously depends. Even
such questions as the regulation OF
railway rates and the control OF cor
porations are in reality subsidiary to
the primal problem Of the preservation
in the interests OF the whole people or
the resources that nature has given u.s.
II we fail to solve this problem. no
skill in solving the others will in the
end avail us very greatly
Now as to the matter OF taxation.
Most great civilized countries have an
income tax and an inheritance tax.
In my Judgment both should be part
of our system OF federal taxation.
speak diffidently about the income tax
because one scheme for an income tax
was declared unconstitutional by the
supreme court by a five to four vote;
and In addition it is a difficult tax to
administer in It's practical workings.
and great care would have to be exer-
cised to see that it was not evaded
by the very man whom 1t is most de-
sirable to have taxed. for IL so evaded
IL would of course be worse than no
tax at ALL as the least desirable OF all
taxes is the tax which bears heavily
upon the honest compared with the
dishonest man. Nevertheless. a gradu-
ated income tax OF the proper type
would be desirable permanent fea-
ture of federal taxation. and 1 still
hope that one may be devised which the
supreme court will declare constitu-
tionaL
Inheritance Tax.
In my Judgment. however. the in
heritance tax Is both far better meth
cd of taxation. and far more important
for the purpose l have in view-the
purpose Of having the swollen fortunes
of the country bear in proportion to
their size a constantly increasing bur-
den of taxation. These fortunes exist
solely because OF the protection given
the owners by the public. They are
constant source of care and anxiety
to the public and IL is eminently JUS.
that they should be forced to pay heav-
lily for the protection given them. 1t
is. Of course. elementary that the ma
ton has the absolute right to decide as
to the terms upon which any man
shall receive a bequest or devise from
another. We have repeatedly placed
such laws on our own statute books,
and they have repeatedly been declared
constitutional by the courts. l believe
gressive principle. Whatever any in
dividual receives, whether by gift, be-
quest. or devise in life or In death.
should after certain amount is
reached be increasingly burdened; and
the rate OF taxation should be in
creased in proportion to the remote>
ness OF blood Of the man receiving
from the man giving or devising. The
principle OF this progressive taxation
OF inheritance has not only been au-
thoriativeiy recognized by the legisla-
ton OF congress, but 1t Is now I'M
equivocally adopted in the leading CIV
ilized nations Of the world-in, for in
stance. Great Britain, France and Ger
many. Switzerland led Off with the
imposition OF high progressive rates.
Great Britain was the first of the great
nations to follow suit. and within the
last few years both France and Ger
army have adopted the principle. In
Great Britain all estates worth IS. 900
or less are practically exempt from
death duties. while the increase is
such that when AN estate exceeds
s5,000,0 900 in value and passes TO a dis
tant knsman or stranger in blood the
government receives nearly 18 per
cent. In France. under the progressive
system. so much of an inheritance as
exceeds sl0.000.0o0 pays over 20 per
cent. to the state IL IL passes to dis
tant relative. and five per cent. if il
passes TO a direct heir. In Germany
very small INHERITANCE are exempt, but
the tax is so sharply progressive that
an inheritance not In agricultural or
forest lands which exceeds S250,00
IL 1t goes to distant relatives, Is
taxed at the rate of about 20 per cent.
The German law Is Of special interest.
because IL makes the inheritance tax
an imperial measure. while allotting
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