The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-01

a rule % eonsaruction just as controlling
IN defining the scope Of the proposed
Amendments - 70 IN In defining the scope
~ the existing provisions. Under 10
from the earliest times Of our Govern
m@nt the apparently unlimited taxing
Consultation has besa held not To apply
to the RESPONSIBILITIES Of thr State.
Under II acts Of Congress which by thair
express terms appeared tn include instru-
mentaltttes OF HtAte government have
uniformly been held not to include them.
This uniform. long established and indis-
putAble rule applied 90 the construction
Of our Constitution rule which has
been declared To be ESSENTIAL TO q con-
ttnuance % our dual system Of govern
nent--Iorhids that the words % that
instrument conferrtng the power II
TAXATION shall he deemed 20 apply TO
anything but the proper subjects Of
national TAXATION. Under Il We are for
hidden 20 apply the words from what
ever source derived in the proposed
amendment To any Of the instrumen-
talities Of state government.
This amendment will be no new grant
OF power. The Congress already has
power To impOee taxes on Incomes from
whatever source derived. subject 10 the
rule OF construction which excludes
state securities frum the operation of
the power; hut the taxes 90 imposed must
be aPpoTtiOned among the States. Under
the proposed amendment there will he
the same and no greater power TO tax
subject to the same rule Of construction.
but relieved from the requirement that
the tar shall be apportioned.
IL appears. therefore. that 40 danger
70 the powers or inStrnmentalitles ot the
STATES - 10 he apprehended from the
adoption OF the amendment
IL would he cause for regret IL the
amendment were rejected by the Legis-
latur~ % New YORK
Ii IL said that a very large part OF any
income tar under the amendment would
he paid by citizens of New York. That
10 undoubtedly true. but thers 10 all the
more reason why our Legislature should
take special care to exclude every narrow
and selfish motive from infiuence upon lie
action and should consider the proposal
in spirit Of broad national patriotism
and Ahould act upon 70 for tho best inter-
ests Of the whole country.
The main reason Why the citizens OF
New York will pay 30 large q part u the
taK 10 that New York city Ia the chief
financial and commercial centre OF . great
trial activity. Fer many ysars AIneri-
cans engaged in developing tie wealth
of all parts Of the country have been Rotn9
70 New York TO secure capital and market
thear securities and 20 buy thetr supplies.
Thousands Of men Who have aHlasSed
fortunes in all sorts Of enterprises in other
states have gone To New York to live
because they like the life Of the city or
because their distant enterprises require
representation At the financial centre.
The incomes Of New York are in a great
Measure derived from the country at large
4 continual stream Of wealth sets toward
the great city from the miDes and manu-
factories and railroads outside % New
York. The United States IL no longer a
mere group Of separate communities en-
braced In q political union: IL hiss become
product OF organic growth. a vast in
dustrial organization covering and in
Guiding the whole country. and the re
lation Of New York city To the whole
of which II 10 a pait 10 the
great source 81 her wealth and the chief
reason Why her citizens will pay 50 great
q part Of an income TAX. We have the
wealth because behind the city stands
the country We ought TO he wiling &c
share the burdsua 81 the national Gov
ernment in the sane proportion In which
Se share its benefits
The circumstances that originally JUS
tilted the establishment Of the rule Of APP
portionment in the Constitution have
long since passed away. IL 10 universally
conceded that its application to existing
conditions would b - unjust and In
equitable a. TO b. impossible The power
Of TAXATION which the rule makes IL i'm
possible for the nation 70 exercise may be
again. ~ u has once been. vital TO the
of national existence. q
would he most unfortunate W the several
States OF the Union we're 70 insiSt upon
the continuance Of this unjust and use
Ices limitation upon the necessary pOwers
and wisely granted to the
Government
With kind regards. am always. very !
sincerely yours. ELIHU RooT
The Hon. FEEDEHIcK " DAvESPoHT Sen !