New-York tribune., 1908-03-15
HEPBURN ON WALL ST.
DEFENDS HIS TAX BILL.
Says Most Stock Transactions 4re
"Gambling, Pure and Sim pie.
rFrom The Tribune Bureau J

rFron he Tribune Bureau
Washinston March 14.-Representauve Hepourn'
of Iowa. declared to-day that it was for the pur-
pose of saving business of the country from an
ever increasing evil, and not for the moral upit-
ing of the community. that he introduced MS oli'
to tax stock Transactions Since introducing tile
bill he has received a tremendous number OF let
ters the subject and has been the target OF ali
of criticisms. Some of his correspondents
have hinted that he will suffer personal dsas-
ter.
One OF my solicitous friends over in New YORK
who wrote me-" said Colonel Hepburn. ended. his
letter by saying IF you think you going TO get
any credit of this you ass; II you thifh
you going to get any money you are a fool.
Now, = a matter of fact. do not care one iota
whether | get any credit not. / don't see how
money could enter into the proposition, anyway
What I do want accomplish is to relieve the
business of the country of the terrible drain that
stock gambling exacts. All the raCetrack gambling
in the world; all the games Of cards in the Tenor-
loins and the red light districts OF the cities; all
the games of chance at Monte Carlo and the other
famous gambling resorts of the world drops
In the bucket compared with the enormous trans
actions of the stock exchanges OF the United
States During the year 1906 the banks in New
York made four billion separate loans on account
of stocks.
I will venture to say that not per cent of the
transactions on the New York Stock Exchange are
legitimate transfers of stock; not anywhere
near > per cent One of the excellent gentlemen
over there. in arguing the well he
could for the exchange, inadvertently said that one
share of stock might change hands three four
times in single day. Now. isn't that a Confes-
sion? Doesn't that show that the brand bust
ness they do there is gambling pure and simple?
is il at all probable that business would pay
S1J,QFsl or 100000 for the New York Stock
Exchange If there a prospect of great re
turns? Would dozens of brokers, who own these
priceless seats, maintain thousands of miles OF
private wires at d cost of thousands of dollars d
month if there was not the sure thing gamblers
profit in sight? Would they buy these seats of gold
and wires of unknown cost if they were only buy
ing and selling stocks i'll q legitimate manner? :?
And would they be raising this howl about
my bill if they not afraid that their gam
bling operations stand d chance of being npped in
the bud, and that they may be compelled TO go
ba ok oIdtime decent trading?
Mr.. Ctews figures that if my bill taxing stock
transactions becomes n law il Will bring in
revenue of about S150,oo0oO year, based on the
transactions Of last year. But, of course If my
bill does become a tap7. there would not be one
fifth one-tenth Of the number of transfers that
made. The pure and lofty gentlemen con-
nected with the New York Stock Exchange are al
ways inveghing against the bucket shops and
doing their utmost to drive them out OF business
Yet, when the truth is told there isn't anything
that the bucket shop do that is not dup-
Gated by the New York Stock Exchange on an
immeasurabiy larger scale
The only sure way that I could attack the
stock gambling was by means of tax-through
the revenue Revenue is power in this country, as
everywhere else, the taxing plan is the quick
well the fairest scheme to try. My bill
referred to the Ways and Means Committee
and members of that committee have assured lie
they are willing to begin hearings on the matter
very soon. 1 have idea that perhaps could
have reached the gamblers through the interstate
commerce law, by so amending that statute that
1t would apply 70 all transactions in shares Of
stock OF corporations doing an interstate busl-
ness. But if I had attempted to reach it through
that channel there might have been questions
raised 10 the constitutionalty OF the proceed
ing There can be none raised as 10 the power or
Congress TO tax stock sales. We have done it be-
fore-for instance. during the Spanish war-and
can do it again just legally If we do 1t &C
cording TO the process outlined in my bill. taxing
each transaction one-half OF I per cent take my
wCrd for it, the country would be better OFF.