New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-21
INCOME TAX FAILS ]
TO PASS ASSEMBLY
Resolution Lost by Two Votes
After Four Hours of Sharp
Debate.
BALLOTING NCN-PARTISAN
Advocates of Measure Say II
May Have Passed-A
Motion to Re- .
consider.
rBr Telegraph TO The Tribune. ]

consider.
IBy Telegraph to The Tribune
Albany. April 2O-By just two votes
the concurrent resolution Of Assembly
man Murray. Of New York. providing
for the ratification of the federal income
tax amendment. failed Of passage in the
Assembly to-day.
The vote on il, which came after more
than four hours Of earnest. and at times
bitter. debate. stood 14 in favor. 6S
against, two short of the seventy-six
votes necessary for passage This vote
was nOn-partisan. several Repuoicans
voting for the proposition and two DEM
ocrats-Chanler. of Dutchess. and Shortt.
of RichmOnd-voting against IT,
AssembIyman Murray followed tho an
nouncement Of the result by a motion to
reconsider the vote and to lay that mo-
tion on the table. This was passed. %
to Is.
'I intend to call this resolution up
again and IL will pass said the intro
ducer afterward. 1T would have been
successful to-day had IL not been for the
absence of three members who were
pledged 10 support it, They are Grau-
bard. Aaron j. Levy. of New York, and
wende. Of Buffalo. Democrats"
Late tonight. however. advocates ot
the federal income tax. after a close
scrutiny of rules Of procedure and prece-
dence for several years. declared that th-
Murray resolution had been passed
While a bill requires seventy-si votes
or a majority Of the Assembly. for tts
these legislators declare that
there is nothing in the rules 70 sh9w
that resolution requires more than a
majority of the Assemblymen voting A
resolution for the ratification OF the pro-
posed federal constitutional amendment
would have no different treatment from
that accorded to any other resolution.
they say.
Wadsworth's View
Speaker Wadsworth. who voted against
the resolution made short speech. IN
which he said he saw grave danger 10
the state if the income tax were adopt
ed. He believed il would mean the TAX
ing of wealth from this state and the
spending of it two thousand miles away.
where 1t would be of no use to the state
New Workers. ought to protest against
this filching Of the states wealth.
A close call of the House preceded con-
sideration of the income tax resolution.
which was the first thing on the calendar
to-day. The argument was begun by
the deliverance OF a set speech by Mr.
Murray. objection had been made that
the government should only have the
right to levy an income tax in time or
war. but Mr. Murray argued that IN the
tax were imposed in time of peace IL
would only be upon large incomes
He believed that the tax would reduces
the high cost of living. thereby making a
high tariff unnecessary He laid the
high cost of living to extortton, which,
he said. combinations were able TO prac-
tice upon the people because OF the tar
if. He declared that the fact that tho
Standard OH Company was vigorously
opposing the income tax was the best .
argument he could advance for its adop-
ton by the Legislature
Objects to Broad Scoops.
The minority leader. Mr.. Frisbie. also
made a long speech favoring the resolu-
ton. The principal argument on the
measure was over that provision in tho
proposed amendment allowing the taxa
tion ON incomes from whatsoever source
derived
II was the broad scope allowed under
this clause to which Governor Hughes.
who some time ago sent a message 10
the Legislature urging unfavorable ac-
tion on the proposed amendment. OBJ
iected. lie declared that IL would allow
a tax 10 be placed on incomes derived
from state and municipal bonds. and
thereby make il more difficult than IL IL
at present to sell them.
AssembIyman Charles A. Dana. OF
New York. made a vigorous argument
against this clause of the amendment.
Congress now comes forward. hs
said. and asks us to relinquish tho
right Of self-preservstiOn in maintaining
Cur financial system unhampered from
outside control or limitation. with tho
of a tax TO be levied by the
federal government. The value OF tho
credits issued by our state will De
greatly diminished. and the possibility
of prosperity and success of the state
will be defeated. The State OF New
York has more real wealth than the
wealth of the other Eastern states COM
bined. and a larger debt than the total
debt of one-haIf Of the United states.
Now. shall we permit Congress to tax
,be incomes derived from the securities
NJ the state given for our debt that viii
result in our credit becoming 50 weak
ened as TO be destrOyed?''
Assemblyman Dana later offered
substitute TO- the Murray resolution.
providing that the Legislature urSs
Congress TO amend the proposed amend
ment by striking out the words from
whatsoever source derived" The
Speaker. however. ruled the substitutes
out of order.
Democrats Explain Votes.
Both ShOrtt. and Chanler. the Demo-
Gratis who voted against the resolution.
made speeches opposing its adoption
They said they were not against the
taxing of the incomes OF the rich for
the benefit Of the poor. but they OBJ
iected 10 the broad powers allowed 20
-. Su1o-,Y ...o,,arDp,apt hV the words in