The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-02-13
Hoosier Senator in Maiden Speech
Upholds Tax Exempt Securities
-Favors Property,Draft
Senate Listens Attentively to Clear
Discourse and Attack on
Mellon Plan
By JOHN CARSON
Times STAFF Correspondent

WASHINGTON Feb Ex-senator Samuel NJ Ralston of In
today speech United States Senate
attacking the Mellon proposals.
Because of his possible Democratic presidential candidacy
Rason first effort close attention The speech
showed study of the problems his discussion exempt
bonds probably being the thorough yet the Senate floor
In opposing Melons proposals Raston
suggestions. They follows:
l. That incomes of S. 900 and less should exempted
national income taxes.
2. That the and will not until the debt
paid and that wealth should be compelled
paying this debt
That Congress should adopt constitutional amendment
which would give the in time of war the power TO
draft the property of the Nation well the persons
Travesty on Original Purpose
The taxation of small incomes incomes of widows and
orphans the aged and nrm, less than ghasty ravesty
the benefcent purposes of the original the income
tax system, Ralston declared
The intention of the law was to equal
ze the tax burden by making the wealthy pay
share Persons with incomes Of $4,000 less always paid
than their share of taxes he said and exempted
from all national income would continue pay than
their share The tariff and the railroad tax they are COM
PEELED to pay
By wipng out all taxes on incomes of s. 900 and less Raj
son showed the Government would lose only $92 1890
Secretary Mellon proposes reduction $30aO00 00
Raon said there would $20OO000OO remaining to
provide adjusted compensation for the returned soldiers
Six Million Would Benefit
In addition he said million persons of the six
and Onehaf million who made 1921 would be relieved
The average income each of under
Melons proposals. would So Raston showed
Mellon has based his argument the taxes on
the wealthy class the they had become unproducve
RalstOn showed Mellon illustrated his argument COM
PARSONS of income tax for 1920 showed
then that incomes fell off in 1921 because depres
sion This he attributed to the system of taking
for the benefit of the favored few
Raston attack Melons that exempt
tiles be prohibited showed tax exempt securities hurting
the productivity of the income that farmers taxpayers
in Indiana and other would suffer and that be-
hind the amendment effort of New York
vestors to draw to New York all such securities.
What the world needs the example of great law
abiding nation sobery adopting this principle Ito conscrpt prop
ery time of war; of conscaon of just taxation of the
profits OF accumulated wealth the war; Raston said
IN discussing his peace proposals.
If we give that example might again vindcate our claim
to our celebrated monument of liberty enlghenng world"
Favors Property Conscripton in War
Rason then explained he agreed plan advocated
by the Christian Science Monitor constitutional amend
men which would provide for the conscrpn of property in
time of
With this plan the oationsts could agree he said
We adopt regardless of what do but he in
sisted If we set the example, other nations would follow
Raston said while many business gave patriotic service
to the country there could be denying proterng was wide
spread and exceedingly vicious.
Take the profit out of will have no war he
conended