Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-01-05
FLAW IN INCOME TAX
Gov. Hughes Opposes Levy on
State Securities.
OTHERWISE FAV0RS PLAN
Urges People to Vote Against Con-
stitutional Amendment.
WOULDPENALIZE BOOKMAKING
Public Service Commission Control
of Telegraph and Telephone
Proposed.

y
Hughes. in his annual message to the
legislature today. makes various recon-
mendations on questions OF widespread
interest.
In supplementary message ne dwells
at length upon the proposed constitutional
amendment comforting upon the federal
government the power to lay and collect
an income tax, from whatever source
the states, according TO population. In
conclusion he recommends that this
amendment be not ratified.
In this connection the governor says:
4 am in favor of comforting upon the
federal government the power to lay and
collect such tax. l believe that this
power should be held by the federal gov
eminent so as properly to equip it with
the means of meeting national exfgencies
But the power to tax incomes should
not be granted in such terms as to sub
ject TO federal taxation the income de-
rived from bonds issued by the-state IT
self or those issued by municipal gov
ernments organized under the states au-
thority.
Impairment of State Rights.
ITO place the borrowing capacity Of the
state and Of its governmental agencies at
the mercy OF the federal taxing power
would be an impairment Of the essential
rights of the state. which. as its officers,
we are bound to defend"
After reviewing the legal aspects of
this question the governor declares. in
conclusion:
we cannot suppose that Congress will
not seek to tax incomes derived from
securities issued by the state and ito
municipalities. 1t has repeatedly en-
deavored to lay such taxes It's efforts
have been defeated only by implied con-
stitutional restriction, which this amend
ment threatened to destroy.
While we may desire that the federal
government may be equipped with all
necessary national powers in order that
1t may perform its national function. we
must be equally solicitous to secure the
essential basis of state government
Would Penalize Bookmakine.
In view of the efforts which the gov
ernor In his regular message says have
been made to evade the law prohibiting
bookmaking at race tracks, he recon-
mends an amendment penalizine the prae
t1ce Of bookmaking, even though no bets
are recorded
Revelations as to the white slave traf
nc are referred to. The governor recon-
mends the enactment of whatever addi
tional or more stringent provisions of law
are necessary to make the statutes more
efficacious.
The governor renews his former recon- !
nendations FOR direct nominations and a |
snort ballot. Reference Ia made to the |
report of the committee appointed to in |
vestigate the stock exchange OF New
York. whose recommendations the gov
ernor approved.
Public Service Control.
He again recommends that the public
service commissions law be extended 50
as to bring telegraph and telephone com
panies under the Jurisdiction Of the COM
mission.
The governor refers also to the offer
made by Mrs Mary W. Hartman. u,idov
OF T.. H. Hartman, to convey to
the state tract Of about 1OOD acres
OF land In Orange and Rockland counties
10 De neid IN perpetuity as a state park
In furtherance of the plan Mrs. Iiarri-
man offers 10 give the state s1.O0OOOO in
trust TO be used for purchase of land w
ing between the tract mentioped and the
Hudson river SO that the park may have
The advantage of river frontage
Other gifts for similar PURPOSES
amounting to 81 60. 900, were announced
oy the governor as result of the actiy- |
ity OF the Palisades park commission.
from residents OF New York New Jersey
and Philadelphia. These subscriptions
were secured upon conditions STIMULATING
Win other things, that New York state |
snail appropriate S2OO.OOO for acquiring
land and building roads and for general |
park purposes. that the state of New York |
shall contribute fair share and that |
the state discontinue work on the new
state prison at Great Bear mountain in
Rockland county.