The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-02-03
INCOME TAX IS RATIFIED
BY 1HREE.FOURTHS STATES
CONTINUED from page ~

R&oS
tariff debate in 1909. Amendments to
the Payne-Aldrich tariff bill, incorpo-
rating an income tax and inheritance
tax measures were then pressed. Fin.
ally. President Taft sen a message to
congress, urging the passage of a tax
upon the doing of business by Cor
po%rations. measured by their income"
and the submission to the states OF an
income tax amendment to the consti-
tuition.
Senator Brown Of Nebraska. faith
cred the amendment finally adopted.
AS introduced IL sent to the finance
committee. congress was given power
to lay direct" taxes on incomes
without apportionment. When the
amendment was reported out of com
mittcc by Senator .Aldricll. the word
direct had beer eliminated. The
words from whatever source de-
rived We're incorporated. These words
caused sharp criticism before several
state legislatures.
Recommends Peace Measure.
In the house the amendment was
referred TO the Ways and means conf
l%1littec. one afternoon was given to
debate. Representative Payne. re-
publican floor leader. spoke in favor
of giving the government the power
as Il war measure. but denounced it
as a peace measure by saying that
he believed with Gladstone that it
tends to make a nation of liars" Rep
resentatiN" Champ Clark cllampioned
tho amendment as making accumu-
lated wealth pay its just burden of
taxation. 1t was eventually agreed
to by the house by a cry large ma
jority in which both parties were rep
resented.
The states were slow in ratifying
the amendment. Alabama had the
honor of being the first and only state
to approve the change during 1909.
Within less than a mon.l from the
date of action by congress. the Ala
hama legislature had voted unani-
mously in favor of the amendment.
In 1910 Georgia. Illinois, Kentucky.
Maryland. Mississippi. oklahoma.
South Carolina and Texas voted to
kansas. California. Colorado. Idaho.
Indiana, Iowa. Kansas. Maine. Michi-
gan. Missouri, Montana. Nebraska.
Nevada. New York. North Carolina,
North Dakota. Ohio. oregon. Tennes-
see. South Dakota. Washington and
Wisconsin gave their approval: In
1912 Arizona, Louisiana and Mime
sota voted for ratification. Thus
thirty-four states had acted af-
TENTATIVELY on the proposal. Connec-
ticut, Kew Hampshire. Rhode Island
and Utah by this time had rejected
tho amendment.
One Governor Vetoed 1t.
4 notable incident occurred in Ar
kansas during the consideration of
the amendment Roth houses OF the
legislature passed a resolution OF ap-
prevail. but Governor Donaghey e
tord'' ii. This veto" at once raised
a nice constitutional question. Rep.
Robinson OF Arkansas. made a speech
he CHALLENGED the right OF a governor
tn pass upon tho measure. 1t vas
said to he this first time a governor
had attempted To veto ratification.
although i, had heen customary for
governors 10 add .heir approval. The
state department has included Ar
kansas in the list Of states ratifyins
tho amendment.
One of the most bitter contests
York state. Governor Hughes. now
a. member of the supreme court .ot
tie United States. sent a message to
the legislature in opposition to the
measure. He expressed himself in
favor of giving congress power to
enact an income tax. but. declared the
amendment submitted gave the fed
efll government the power 10 StrlkA
a fatal blow al state credit and state
independence by taXins the income
from state and municipal bonds. Sir
prominent lawyers of New York led
by Joseph ii. Choate. former ambas-
sador to ENGLAND. supported the at
tack by Il ringing memorial. de-
nnuncing the amendment as having
been rushed through the and
house almost without debate" and
us giving congress power to hinder.
IF not prevent. the proper perform
ancc of the various functions of the
states" by u tax on state ana mus
nicipal bonds. They pointed to the
$50 600. 900 New York state bonds
and the $500. 600, 900 New York City
bonds. as being within the power of
congress to tax. If the amendment
were adopted. Senator Root took an
active part in favor of the amendment.
which WAS finally approved in Il reso-
luton in tho form OF IL hill. hut only
after "A similar bill vas defeated in
the first attempt to approve the
amendment. .