The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1917-08-06
TEXAS GOVERNORS
CALLED AS WITNESS
IN HIS OWN BEHALF
He Refuses, However, Claiming
His Constitutional Right TO
First Hear the Evidence Against
Him; Plans Disarranged.

rHst near the bViuence Against
Him; Plans Disarranged.
By Associated Psass
Nua'in. Tex Aug q Nj NJ Crane
counsel Tor the house investigation ia
the impeachmrnt chnrges brought
against Gov Ferguson by Speaker J..
-. Fuller sprung a surprise at the
opening of the hearing today. when
he called for the governor 20 take the
stand.
This The governor refused 90 do.
claiming his constitutional right to
Hrst hear lhc evidence against him.
ON plea Of Mr.. crane that this dis
ranged his plans. the hearing then
went over unih Q o'clock this after
noon
Mr. Crane succeeded In Introducing
the entire testimony taken before the
house Investigating committee which
considered charges brought before
the governor last March by Represen-
tative Davis
Mr. Crane also offered the records
of the meetings OF the board of re-
gents Of the State University. but on
objection of Mr. Hanger limited the
evidence iu the records Ia such state
ments as were mads bv the governor.
The basis Of the system proposed
hy your committee Is the income au.
war profits taxes Internal revenue
taxes upon whiskey and tobacco, and
certain Ia form much the same as
that In the House but IL has. IL is BE.
l'cNed. been systematized. co-ordinated
and made more consistent.
AS the result Of these changes Il
IL estimated that about two-thir6s %
the additional revenue expected will
come from tho income and war profits
taxes. Ia fixing the rates upon in
comes and excess profits your commit
tee kept constantly in mind the fact
that the amount OF revenue derived
from these sources would depend
upon the prosperity and activity nf
business aud thai to impose taxes
which would tend 10 discourage enter
prise and dampen these activities
/ would t"nd tn defeat the Legislative
purpose. Moreover. II thought that
.f the rates upon incomes and excess
profits were fixed al the highest level
there might be but little margin left
Tor further increases in rates"
No SurtNacs on Incomes.
The report defends the elimination
of the so-called Lenroot sur,aNes on
! incomes of over $4,000 added In the
] House, designed 10 raise t66. 900 600
ias follows:
In Wow Of the fac, that in addi-
ton tu the large increase in the nor
NAL tax ami surtlXrs upon incomes
the bin provides for a large Increase
in the war profits tax or corporations
ana partnerships and includes individ-
uals In the scope Of that tax. and in
view of the probability that It will
Zee necessary hereafter to further
Increase these rates IN order to pro-
Nidc Tor increased war expenditures
your committee believes that for tn,
~ sent 10 is inadvisa bic 10 increase IA,
sursaX rates beyond thnse proposed IN
"a" origin1l bill'
REGARDING the elimination OF th'
House retroactive income taxes og
1915 incomes. which would hav,
produced $loS,0o0.O 900, the repor
stated.
This tax seemed In principle boti
morally and economically unsaund
Incomes Of the last year have pal,
their taxes aud the balance has either
been spent OF saved and added Ia can
itu. iu which form II viii yield re
turns in the cnstsinE years To Ia
this taX-paid income again Is not onl,
double taxation OF peculiarly Oh
uoXiuus kind hut would possibly com
lp'l a t1X payer To- impair his capita
ma thus diminish government source
uf taxation II would hc one ot thos'
disturbing taxes which would ALARM
business aud check industrial pro
lduvuyir II is very poor econom
and would hold out a threat of uncer
iuirt,
War Profits TaN.
lu recommending the gradual
war profits tax upon individuals q
we'll us .prpor1tious he lieu of "a
present oigh, per cent excess profit
IHv. 'he committee slid its plan
similar tp tn, of European countrie'
whore 10 has had marked success.
We must face the possibility, eve
the probability" the report stated "n
even higher taxes than are now pro
posed u this country and We mus
satisfactorily oven under increase
rates. Your committee has not hee
luh'c io find 1H. satisfactory teasu
lwhy individuals engaged in tgadc an
business should not be- subject to tn
tax ,wur profitsb as well as cni
puraunus 4nd partnerships Und'
the present law, the report stated. ir
.ntcd values to patents and trn'
marks and watering ot corporation
stocks makes evasion OF the rcyenu
law possible. while me committe"
new basis D. believed to meet u
situation senator simmons ais
pointed out than the new plan b.
war profits lbN rather than an exec
profits leyS.
The new tax of one cent Tor each
l,cnts paid un parcels post packagl
was said iu the report 90 remove Al
elimination lu favor of the ra!lroa'
aud the parcels post
"ln addition to this the repo
said 'fuur committee can see mo- b
Uusir reason why. iu this preso
IiUptN.utN fue u0tgruntnt snUil