The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1911-06-07

should be taxed. as failure so to do
would result in creating a privileged
Glass. Taxation of such incomes
would not injuriously affect the rela-
tive value of these bonds. since all
other securities would be equally
taxed.
Nevertheless the Hughes special
message had the effect of defeating
the amendment in New York state
and doubtless Influenced the result
elsewhere. rhe New York senate of
1910 passed the amendment by one
vote. but the assembly defeated 1t by
two votes. This year II has passed
the senate by about two to one and
has every prospect of go'-y through
the assembly by like CSisive ma
jority.
Governor Dix For It.
Governor Dix has taken as pro.
nounced stand In favor of the pro-
posed amendment as did his predeces-
sor against it. In letters to Speaker
Frisbie Of the assembly and Mayor
Gaynor of New York city he said in
effect that failure to pass the measure
would be a Reputation of Democratic
promises and would spell party dis
honor; that the contention that the
Democratic state platform Endorsed
ian" amendment and not "the''
amendment pending was a miserable
bubble. since everybody understood
the Endorsement to apply to the
amendment now before the states for
ratification: that the clause from
whatever source derived" was entire
ly just, since 1t would be only equita-
BILE to tax all incomes alike. and that
the argument that the amendment
would interfere with the rights of the
states to impose an income tax was
not made in good faith. since few
states had imposed such tax or would
do so. thus creating n situation that
was inequitable and impractical.
Governor Harmon of Ohio also sup
ports the amendment vigorously. as
does Governor Woodrow Wilson of
New Jersey. Wilson succeeded in hav-
ing the assembly in his state pass it,
The advocacy of the measure is by no
means partisan. however. When it
passed congress President Taft gave il
his warm Endorsement, as had Theo-
dore Roosevelt before him. One of the
strongest arguments in favor of the
tax was made by Senator Elihu Root
of New York Root argued that. what.
fhn n N orracr af hn
state and municipal bonds would not
be taxed
Some of the Arguments.
Some of the most vigorous argu
ments In favor of the measure were
made in the recent hearing given by
committee of the New York assembly
Among those who appeared in behalf
of the amendment were ". r. Hearst
and Professor Edwin r. A. Se!igman
of Columbia university. Professor Sc
ligman did not mince words. He said
that If any of his students should urge
the chief argument of the opponents
of the measure viz. that the proposed
tax would depreciate state and munici
pal bonds-he would funk" him The
press interpreted this as an attack on
former Governor Hughes. who is now
a justice of the United States supreme
court Professor Seligman in a signed
letter said he meant no reflection on
Justice Hughes, who had never made
this ridiculous argument. but that his
criticism was directed at those who
shielded themselves under Hughes
great reputation. When asked what
John d, Rockefeller now pays toward
the support of the national govern.
ment Professor Seligman said. refer
ring to the internal revenue tax: well.
he doesn't smoke. If he drinks at all it
is only glass of beer He pays very
little toward the national funds" With
an income tax Rockefeller would have
to give his share to the support of the
government under which he has made
his millions.
Adoption Likely Next Year.
1t is probable that the income tax
amendment will be adopted not later
than 1912 In letter just received
from the office of Senator Brown, the
author of the measure. and written at
his direction, he confirms the list of
thirty states that have already ratified
and adds. New Hampshire. Vermont.
Rhode Island. Delaware. West Virginia
and Utah on account of biennial cleo
tons or other reasons are unlikely to
ratify before the 1918 legislative SEES
sions." This leaves ten states that
may ratify in 1911 or 1912. or twice the
number necessary.
s-s-ff-s-ss-tss-s-i-i-t-i-s-i-t-s-s-i-s-s-i-s-f