Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-03-21
BILL DEFEATED
DESPITE MESSAGE
FROM GOVERNOR
Senate Refuses TO IndOrse In
come Tax Amendment to
Federal Constitution.
iron a stan Correspondent

9AdA correspondent
TRENTON, March 21.-The Nichols
bill, ~indorsing the income tax, was de-
feated in the Senate last night. Gov
ernor Wilson had forwarded a special
message urging that the proposition be
favored by New Jersey. Senator
Nichols, in a long speech. urged that
the Senate indorse the proposed six
tenth amendment to the Federal Con-
stitution, but II was defeated by the
following vote:
The Vote.
Yeas-Cornish, Gebhardt. johnson,
Low, Nichols, Osborne. Price. Silzer-s.
Nays = Alderman. Bradley, Brown,
Edge. Fielder. Frelinghuysen. Gsunt,
Hand, Leavitt. Plummer. Prince-12.
Absent-Fitzherbert.
The proposed amendment was popu-
lar from one end of the country to the
other, Mr.. Nichols contended, and New
| Jersey should join her sister States in
enacting legislation indorsing it. IT
might be contended that some
senator's would set up opposition
10 TIC Jill OA Iii 6IOuAQ lldb
lit is inquisitoria1. Senator Mich
OILS said there We're cases where that
would not be an objection, since SO
many Americans were willing to marry
their daughters inc their millions Ito
rotten dukes and marquises." Such an
argument against the bill would be
flimsy, and no argument could be made
which would convince the American
---~ 49, - 4vaa-,.A +o~
amendment to the Federal Constitu-
ton would not be just and righteous.
Senator Prince discussed the bill at
great length. He said In part:
IF the proposed amendment 10 our
Federal Constitution which now lies
before US merely provided that Con-
gress should be able to levy an income
tax in time of war, / should be in
clined to vote for II. But it is much
more general than this. This proposed
amendment provides that Congress
may levy a tax on all incomes from
whatever source derived which I'M
doubtedly would include incomes de-
rived not merely from ordinary stocks
end bonds but also from State and
municipal securities. Nc one can argue
otherwise unless 1t can be shown chat
an income from State and municipal
securities is not derived from any
source-a manifest absurdity."
Senator Osborne advocated the pas
sage of the bill In order that the Fed
eral government might derive a part
OF the income for its support from a
tax upon those who were able to
pay il.
Frelinghuysen Opposes Bill.
Senator Frelinghuysen opposed the
bill on the grounds principally h a the
adoption of the proposed sixteenth
amendment would rob New Jersey of
a part of its necessary income from
the ak on municipal and other cor
porations and the Federal government
would receive it.
Senator Gebhardt urged the pas
sage of the bill. giving a historical
review of income tax legislation from
the beginning to the present time. If
the proposed Federal amendment
should be incorporated into the consti-
tuition, it was not obligatory upon the
=, government TO enforce it except in case
OF absolute necessity.
Governors Message.
The following is the full text Of the
Governors message on the income tax
bill:
'gTo the Legislature:
Il take the liberty of calling your
/ attention to a very important matter
awaiting your d~ecision-the question OF
the ratification of the proposed amend
ment TO the Constitution of the United
states which gives to the Federal Con-
gress the right to impose an income
tax. Liberal opinion throughout the
ountry clearly expects and demands
the ratification Of this amendment.
'It VIII undoubtedly be an act OF
great liberality on b part OF the
States to concede 1t. They will thereby
be sharing with the federal government
one of the few powers of taxation
which. under the latest decision OF the
| Supreme Court of the United States In
that matter, they nay now regard
themselves as entitled to exercise to a
| certain extent, exclusively. but 1t Is
Clearly in the interest of the national
life that the power should be conceded.
It will free the government or Ine
United States to put its fiscal poncy
upon a much more enlightened, a much
more modern, a much more elastic
basis than it now rests upon, or appar-
entity can rest upon so long as this
power Is withheld. IF his power be
granted, the general government may
adapt its whole system of taxation to
the actual economic life of the country
much more favorably than it is now
adapted. 1t may make it more just
and may adjust it more nicely to the
interests of the people at large.
/ MAY I not urge upon you as ear
nestly as respectful, the prompt adop-
ton of this exceedingly important
amendment. that New Jersey may be
put among the number of those States
which do not prefer their own interests
to those OF the nation as a whole?"