Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-03-25
SPEAKS ONLY FOR HIMSELF
Disclaims ANY Authority to Com
nit President Taft.
CoRRECTs WRONG IMPRESSION
Says If Levy Were Upheld, Cues
tion of Internal Improvement
Fund Would Be Settled.


for his efforts in behalf of an income tax.
Representative Stevens of Minnesota today
made a personal explanation to the House
OF his connection with those efforts.
The newspapers of the country have
made many statements in the last TWO
days that / was concerned in the prepara-
tion of a bill for an income tax TO carry
out the policy of the administration OF
President Taft" said Mr. Stevens. THAT
Is incorrect. and IL allowed to go without
correction IT. might lead 10 some embar-
rassment to the administration. So that,
under the circumstances, | desire to place
on record exactly what has occurred and
the purpose Of it, and for that reason
VIII ask about nve minutes OF the time
or this committee.
When the National River and Iiarbor
congress met IN Washington last Decem-
ber and resolved in favor of a large bond
issue for internal improvements. it seemed
Ia me. as to many other members of this
House. that its resolution In favor OF
bond issue was extremely unwise and
dangerous. At the same time I realized
The necessity. as l think We all do. that
these great internal improvements must
he made and provided for in some way
and some adequate way also.
Must Raise Revenue.
Il think most of us also realize that the
time Is rapidly approaching when this gov
ernment can no longer derive it's full in
come 10 pay the vast epenses of carrying
on its operations entirely from the con-
sumption of the people. There must be some
other method of raising revenue for carry
ing on the great purposes of the federal
government. That seems TO be recog-
nzed.
THE decision OF Pollock against the
trust company or the income tax of 1894
has never been thoroughly satisfactory
10 the country. There We're five points
In controversy / shall not attempt to
Ella borate but Just to state what has actu-
ally occurred. There were two points actu-
ally decided. One was that the tax on
incomes from real estate was a direct
tax; second, that under the Constitution
congress has no right to levy on the SOW
lies Of states and their creatures, the
municipalities. There were three points
expressly left undecided by the Supreme
Court: Fitst. whether or not these were
separate from the other clauses of that
law, second, whether or not the tax on
personality was a direct tax; third. the
question of uniformity. These were ex-
pressly left undecided.
Plan for Settling Question.
Now, assuming tina. we need a largely
Increased revenue for the purpose of in
ternal Improvements: assuming. second,
that the federal government ought to
nave the power TO levy on the income of
me aggregate wealth of this nation, and
third, that this ought to be provided so
that the government could use it in case
or any emergency. it seemed to me that
these could all be combined at this time
not interfering with any legislation at all
or with improvements at all. because
fhe river and harbor bill then pending
and since passed provided only for sur
Teys and not for purposes of actual i'm
provemeni. and before those surveys
could eventuate into projects and require
appropriations by Congress this matter
might be thoroughly and completely set
tied.
For that purpose it seemed to me it
might he good policy to have drafted the
best kind OF a bill. providing for a tax
on incomes-an ideal bill, not having any
connection with the current revenues of
The government at all or current ex-
penses. and place the proceeds of this
tax. small tax designed practically or
principally for the purpose of testing
.Hese questions. INTO special fund for
internal improvements. Now. If the tax
De decided TO he unconstitutional and
congress has no power to lay IT, athen M
harm is done. The improvements would
go along just the same.
Inc matter would he thoroughly tested
ana argued. ard then the question would
he squsrely presented to the American
people. II they Thought that the Congress
saouid have power TO levy that tax and
~ must oe done by means of a constitu-
t!ohai amendment Now IL the tax could
% Upheld In whole or in part then the
question OF obtaining fund for internal
improvements would be settled
Bond Issue Not Necessary.
No bond Issue would be necessary. and
the power OF the government 10 levy on
the aggregate wealth Of this country in
case or emergency would be completely
disposed Of For that reason In seemed
10 me TO he wise TO draft a bill with
separate clauses. putting a tax upon in
comes OF real estate In one clause and
declaring that the invalidity of that
clause should not affect the balance of
the provisions of the act.
Upon arriving at that conclusion /
laid the matter before President Roose-
Welt. He was delighted with the sug-
gestfon, and inquired in what way he
could be OF assistance He referred me
TO the Secretary of the Trea sury, who
also gladly promised cooperation The
Secretary directed his subordinate Of
HcerS To prepare a bill along those lines,
fceTs neglected 10 do 50. We were all
rushed In the last days Of the session,
SO concluded 10 wait until the new
administration came in.
Il laid this matter before President
Taft as am explaining 1t TO the
House, and he also was pleased at the
suggestion. and promised cooperation Ia
see that bill was prepared as a basis
for my own suggestion. The admins
tration assumed no responsibility. and
the administration lad no views in con
nectioD win the matter
All 1t did was 10 tender The s rv!ces Of
the executive departments to do the work
l"~ tt.s measure. eAac-iy as II does for
nearly every measure of importance pre-
sented II the House And taat IS what
desire TO have made clear. ths, whatever
do !s on my own reSpons ,bility. | am
only seeking advice ami assistance from
the various bureaus in the department o,
Ice administration and from whatever
source | can get 1t | Will now Yield to
the gentleman from Tennes see. Mr.. Hull.
President Not Committed.
IL was stated at the White House To-
day that President Taft has not commit
ted himself I'm any way 10 an income tax,
either an immed ate aid to the Treas
Nv - prospective measure TO be
considered by Congress at its next ses-
Attorney General WickerSham who
aiked with President Taft today. stated
that he had not prepared any bill for the
President concerning tax incomes.
lie : understood 10 have prepared an
Inheritance tax bill. and between now and
next Ninier may s.ve attention 10 in
III