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the gentieman from Illinois [Mr. IXGERSOLL] Mr. WINDOM. I would inquire of the Chair Mr. INGERSOLL. Mr. Speaker, is that a question in regard to this bill before I vote if this is a private bill. We have had three or in order? upon.it.
four general bills considered this morning, and The SPEAKER. The Chair thinks the Mr. RANDALL, of Pennsylvania. I can- I think it is hardly fair to other coinmittees gentleman from Maryland is now arguing the not yield the thoor for any such purpose. I call that the time set apart for private business merits of the bill. the previous question on the motion to refer. should be taken up by general business.
Mr. F. THOMAS. No, sir; I am about to The previous question was seconded and the The SPEAKER. The Chair is of opinion explain its character, main question ordered; and under the opera- that this is a private bill within the rule.
The SPEAKER. The gentleman from Marytion thereof the motion to refer was agreed to. Mr. F. THOMAS. As the morning hour has land raises the point of order that this is not a
Mr. RANDALL, of Pennsylvania, moved to nearly expired, I hope the gentleman from private bill. The Chair decides that it is a prireconsider the vote by which the bill and the || Mlinois (Mr. INGERSOLL] will consent to with
vate bill. pending annendment were referred to the Com- || draw this bill at this time and report it on Mr. F. THOMAS. I believe that the Speaker mittee on Banking and Currency; and also some future day. Does the Chair decide this has not read the bill, or he would not so decide. moved that the motion to reconsiver be laid to be a private bill?
I say this with great respect. on the table.
The SPEAKER. In the opinion of the The SPEAKER. Private bills relate genThe latter motion was agreed to.
Chair, this is a private bill, being for a cor- erally to individuals or corporations. May's ENROLLED BILLS SIGNED.
poration. The Chair made a decision at some Parliamentary Practice states that private bills
length some days ago in regard to what should "are for the interest of an individual, a public Mr. COBB, from the Committee on Enrolled
be considered public and what private bills, company or corporation, a parish, a city, a Biils, reported that they had examined and quoting precedents from the parliamentary county, or other locality.” It must not be a found truly enrolled joint resolution and a bill || practice of Great Britain.
general bill in its enactinents, but a bill for of the following titles; when the Speaker signed Mr. F. THOMAS. Will the gentleman from the particular interest or benefit of a person or the same:
Illinois (Mr. IxGERSOLL) consent to the sug- persons.' Under this principle, which is laid A joint resolution (S. R. No. 61) to extend | gestion I made a moment ago?
down with a number of illustrations in the vol. the time for the construction of the first section Mr. INGERSOLL. I cannot consent to it. ume referred to, the Chair has no doubt that of the Western Pacific railroad; and
Mr. F. THOMAS. The bill can hardly be this bill is a private bill and can be reported An act (5. No. 186) amendatory of the act read through during the remainder of the on private bill day. Whether the bill should to provide for reports of the decisions of the morning hour. I think the gentleman better pass or not is a question for the House to Supreme Court.
withdraw the bill now and report it on some determine.
The morning hour bas expired, and the bill Mr. INGERSOLL, from the Committee for
Mr. INGERSOLL. I cannot consent to goes over till next Friday. the District of Columbia, reported a bill prowithdraw it, but I am willing that it shall go
CONTESTED ELECTION. viding for grading East Capitol street and estab- over for consideration until next Friday. I lishing Lincoln square; which was read a first want it to be considered as unfinished busi
Mr. DAWES. I rise to call up the resolu
tion reported by the Committee of Elections in and second time.
ness, to come up at that time. The bill was read in full. It authorizes the
Mr. F. THOMAS. I must ask the Speaker's
the case of Follett vs. Delano. I stated to the
House yesterday that if members would take Commissioner of Public Buildings to grade East | permission to state the peculiar characteristics
the trouble to read the report I would not Capitol street from Third street east to Elev
of this bill. enth street east, and to cause the square at the
Mr. INGERSOLL. I must object to that,
occupy any time in the discussion of the case. intersection of said street with Massachusetts, as I have already consented to the arrange
I have no doubt that gentlemen have read the North Carolina, Tennessee, and Kentucky ment that this bill should go over to next
report; and I shall not therefore detain the
House by any remarks in explanation of it. avenues, between Eleventh and Thirteenth || Friday. streets east, to be inclosed with a wooden fence,
Mr. F. THOMAS. Then I rise to a point
The case involves a question which is of conand the same shall be known as “Lincoln of order.
siderable importance as a question of practice. square;" and the sum of $15,000 is appropri
Mr. INGERSOLL. I desire to report
The committee, I may also mention, found some ated for that purpose. another bill in regard to a hospital.
difficulty in settling questions of law arising in The bill was ordered to be engrossed and
Mr. F. THOMAS. Will the gentleman con
the case, but no difficulty as to matters of fact. read a third time; and being engrossed, it was sent to withdraw the sewerage bill?
If the members of the House are satisfied with accordingly read the third time.
Mr. INGERSOLL. I must decline to do
the positions as to law and practice embraced The question was upon the passage of the that.
in the report, they will find no difficulty, I apbill.
Mr. F. THOMAS. I do not desire the bill || prehend, in voting for the resolution of the
committee. Mr. INGERSOLL. I call the previous to be before the House at all, if I can prevent question on the passage of the bill. it, until the parties interested can be heard
The resolution reported by the committee
was read, as follows: Mr. SLOAN. Does not this bill go to the before the committee. Committee of the Whole, as containing an
Mr. INGERSOLL. I make the point of
Resolved, That Hon. Columbus Delano is entitled
to the seat occupied by him in this House as the Repappropriation?
order that what the gentleman from Maryland resentative from the thirteenth district of Ohio in The SPEAKER. This bill does contain an [Mr. F. Thomas] is saying is not upon a point
the Thirty-Ninth Congress. appropriation. But it is too late to raise that of order.
Mr. DAWES. Ifoo gentleman desires to point of order, the bill having already been
Mr. F. THOMAS. The gentleman will hear oppose this resolution, I call the previous read the third time without objection.
me through. I therefore raise the point of question. Mr. FARNSWORTH. Is this a private order, because I want the bill recommended The previous question was seconded and the biil?
by the committee to take the course I have main question ordered ; and under the operaThe SPEAKER. It is too late to raise that || indicated. Now, in regard to the character tion thereof the resolution was agreed to. point of order now. of this bill
Mr. DAWES moved to reconsider the vote Mr. FARNSWORTH. Will it be in order Mr. INGERSOLL. I raise the point of by which the resolution was agreed to; and to move to refer this bill to the Committee of. | order that this is no point of order.
also moved that the motion to reconsider be the Whole?
The SPEAKER. The gentleman from laid on the table. The SPEAKER. If the previous question Maryland [Mr. F. Thomas] is stating his point The latter motion was agreed to. is not seconded that motion will be in order.
of order. The question was taken; and upon a divis. Mr. INGERSOLL. I would have no objec. || tions, reported the following resolution ; which
Mr. DAWES, from the Committee of Elecion there were-ayes 28, noes 31; no quorum
tion to the gentleman going on if I did not voting. wish to pass this hospital bill.
was read, considered, and agreed to: Tellers were ordered ; and Messrs. IxcerMr. F. THOMAS. I was about to say this
Resolved, That there be paid to Charles Follett, Esq..
out of the contingent fund of the House, the sum of Soll and EldriDGE were appointed.
is no ordinary bill; and when I have stated its $1,500 in full for time spent and expenses incurred in The House again divided; and the tellers I character I think the Chair will rule that this contesting the right of Hon. Columbus Delano to a reported—ayes fifty-nine, noes not counted. is a public corporation.
seat in this House as a Representative from the thir
teenth district in Ohio. So the previous question was seconded.
Mr. INGERSOLL. I rise to a point of
order. The main question was then ordered ; and
Mr. DAWES moved to reconsider the vote under the operation thereof the bill was passed.
The SPEAKER. The gentleman from by which the resolution was agreed to ; and Mr. INGERSOLL moved to reconsider the Maryland is occupying the floor upon a point also moved that the motion to reconsider be laid vote by which the bill was passed ; and also of order, and is now stating it.
on the table. moved that the motion to reconsider be laid
Mr. F. THOMAS. This bill, Mr. Speaker,
The latter motion was agreed to. on the table. proposes to seize $400,000 worth of property
LEAVE OF ABSENCE. The latter motion was agreed to.
of the Chesapeake and Ohio Canal Company. Mr. HUBBARD, of West Virginia, asked It therefore affects parties outside of the Dis- || leave of absence for Mr. Latham for one week.
trict of Columbia. The Chesapeake and Ohio Leave was granted. Mr. INGERSOLL, from the Committee for || Canal Company, under a charter granted by the District of Columbia, reported back, with Congress, and by the States of Maryland, Vir.
EQUALIZING BOUNTIES. an amendment, Senate bill No. 190, to incor. | ginia, and Pennsylvania, has made a very Mr. SCHENCK, from the Committee on porate the District of Columbia Canal and expensive structure at the mouth of this little Military Affairs, reported a bill to equalize the Sewerage Company. stream
bounties of soldiers, sailors, and marines who
CANAL AND SEWERAGE COMPANY.
served in the late war for the Union ; which part thereof, and employed by another party to man- extend the same advantage to him in any other was read a first and second time, referred to ufacture, make, or tinish the goods, wares, and mer
part of the United States; but in the West our the Committee of the Whole on the state of
chandise, or articles paying or promising to pay there-
manufacturing interests are in their infancy, the Union, and ordered to be printed.
and finished, shall be assessed, and the tax paid and therefore it is that I say the tariff laws Mr. SCHENCK. I give notice that on some thereon by the producer or manufacturer: Provided,
protect and foster eastern manufacturers. In That whenever a producer or manufacturer shall use early day, when members shall have had an
or consume, or shall reinove for consumption or use, the course of time I hope the West, by the opportunity to examine the bill, I will ask that any articles, goods, wares, or merchandise which, if development of manufacturing establishments, the Committee of the Whole on the state of the
removed for sale, would be liable to taxation, heshall
will share equally with all other sections of the Union be discharged from the consideration
goods, wares, or merchandise so used or so reinoved country in the advantages springing from the of the bill, and that it be put on its passage. for consumption or use.
tarifflaws of the Government; and as one means TELEGRAPII LINES.
Mr. Chairman, I offer this amendment in the looking to this end, I desire the adoption of Mr. ALLEY, from the Committee on the interest of the small manufacturers and the me
this amendment as a protection to those who Post Office and Post Roads, by unanimous conchanics of the country. I offer it as a protec
are to constitute our western manufacturers in sent, reported back House bill No. 575, to aid tion to that class of labor which fights its own
the future. in the construction of telegraph lines, and to battle with little aid from machinery. It affects
The West must resort to manufacturing, secure to the Government the use of the same mainly the hand-workers of the nation who de
Everything used and consumed in the West for postal, military, and other purposes; which pend more on their toil than they do upon capi- || ought to be there manufactured. While it is was read a second time, ordered to be printed, tal for the profits which a year's business may
the greatest food-producing region in the world, and recommitted to the Committee on the Post secure to them. Its effects will be exhausted
it should be one of the greatest manufacturing Office and Post Roads. principally in shielding such as earn their bread
sections also. Cheap food and the comparaby the sweat of their brows from unnecessary
tively low price of raw material are advantages PRIZE MONEY. taxation; and this is the sole object of the
which will some day tell in favor of the West. The SPEAKER laid before the House a com- amendment.
But to reach that day we must take present munication from the Secretary of the Treasury, The only change which this amendment makes
care of our workmen and mechanics. in reply to a resolution of the House of April in the present law is to exempt from the manu
The amendment which I have offered does 9, 1866, on the subject of prize money; which facturer's tax $1,000 worth of the products of
not go as far and accomplish as much as I was laid on the table and ordered to be printed. all manufacturers whose annual productions do
should like, but it seems to be the best that CONTESTED ELECTION. not exceed $3,000 in value. So just a proposi.
can be done at this time, and will afford some tion as this ought not to require much discus
measure of relief. When I cannot get all I The SPEAKER laid before the House adsion to win for it the approval of every member
want it would not be wise to refuse a part. ditional testimony in the contested-election case of the committee.
Mr. MORRILL. I hope this amendment of Koontz vs. Coffroth ; which was referred to It will be remembered that the law defines a
will not be adopted. There were in 1864 above the Committee of Elections. manufacturer to be
sixty-three thousand manufacturers in the coun.
try who were taxed for licenses. I suppose TAX BILL.
"Any person, firm, or corporation who shall manMr. MORRILL moved that the rules be susfacture by hand or machinery any goods, wares, or
that at least one half of that number manufacmerchandise, excecding annually the sum of $1,000, tured less than $3,000. Therefore, if the amendpended, and that the House resolve itself into or shall be engaged in the manufacture or preparathe Committee of the Whole on the state of tion for sale of any articles or compounds, or shall
ment proposed by the gentleman should be put up for sale in packages with his own name or
carried, it would create a large deficiency in the the Union on the special order.
trade-mark thereon any articles or compound, shall revenue.' It is giving an absolute bonus of fifty The motion was agreed to. be regarded as a manufacturer.'
dollars to every manufacturer whose annual So the rules were suspended ; and the House This definition embraces almost every me- products exceed $3,000. They all sell in the accordingly resolved itself into the Committee | chanic in the whole country, for there are very same market, and if not subjected to the same of the Whole on the state of the Union, (Mr. few whose productions do not annually exceed tax those who are excepted liave the advantage Dawes in the chair,) and resumed the consid- $1,000 in value, when both labor and materials in the market. I might be very well content, eration of the special order, being a bill of the are included in the computation. The profit | living in New England as I do, where of course House (No. 513) to amend an act entitled to the mechanic, including the value of his own we shall receive the benefits of the amendment “An act to provide internal revenue to sup- labor, often proves to be an insignificant part proposed by the gentleman from Iowa in a port the Government, to pay interest on the of the $1,000 of aggregate valuation placed much larger degree than those who reside in public debt, and for other purposes," approved upon his productions; and to him a tax of five his own region. But I think it is more than June 30, 1864, and acts amendatory thereof.
per cent. upon the total result is grievously we ought to concede at the present time. It The pending question was on the amendment burdensome. All such taxation is opposed would be making too large a reduction of the offered by Mr. Stevexs to add to the paragraph | by every consideration of sound public policy. revenue. The law as it is, exempting $600 in relation to cigar-makers the following: Productive industry should be fostered until it from taxation, gives the small manufacturers
Provided. That journeymen cigar-makers and ap- becomes strong enough to stand alone. The $30 advantage. I do not see why we should prentices who work for others shall not be considered as included within this proviso.
tax-gatherer should not be sent into the work- allow any more, for it is nothing less than payThe question being put on the above amend || shop until the workman has secured for him- | ing them a bonus of twenty dollars out of the
self and his family a reasonable support from ment, no quorum voted.
Treasury. I therefore hope the amendment will the toil of his hands.
be rejected. Tellers were ordered; and the Chairman
It is hard for hand labor to compete with The CHAIRMAN. Debate is exhausted on appointed Messrs. Ashley, of Ohio, and
machine labor, and to the former some advanJENCKES.
the amendment. The committee divided; and the tellers re
tage should be given. Without this great es- Mr. WILSON, of Iowa. I move to amend
tablishments crush out and destroy the lesser ported--ayes 51, noes 43.
the amendment by striking out the last word. So the amendment was agreed to.
ones, as great fish are said to swallow up small The argument of the chairman of the commit
ones. A combination of capital and machinery, || tee, that this is going to greatly reduce the rev. Mr. STEVENS. I move to strike out the
if put on an equality in the tax laws with mus- enue of the Government, is an entire fallacy. word “five," in line seventeen hundred and
cle, soon wear it out and drive its owner from If you allow the exemption of $1,000 to every ninety-seven, and to insert in lieu thereof "fif
the market. There is not a village in all the manufacturer in the United States it only teen; so that the clause shall read, “shall pay land whose mechanics do not feel how inexor- amounts to about three million dollars. But the duties on such cigars within fifteen days | ably true this rule is. The great manufactories this proposition is to allow it only to manufacafter purchasing them.” Also, the same amend
in the East play havoc with the mechanic shops turers whose products do not exceed in value ment in line eighteen hundred and two, so that of the West. And when this is done our work- the sum of $3,000 per annum. Therefore it the clause shall read, “and any such purchaser men have not the advantage of resorting to the will not exceed $1,000,000. But that, the genwho shall neglect for more than fifteen days to great workshops and manufactories for em- tleman says, is a bonus to the small manufacpack and have such cigars duly inspected, and ployment, as the mechanic of the East may. turers. Sir, that objection was not thought of pay the duties thereon, &c.
Our western mechanics when crushed out by when the committee voted in favor of retaining The amendments were agreed to.
the competition resulting from a combination in the bill the section which allows a drawback Mr. WILSON, of Iowa. I move the follow- of capital and machinery must change their of five cents a pound on all exported cotton ing amendment:
pursuits and seek in some field new to them a goods, which is a bonus to the great manufacThat section nincty-three be amended by striking support for themselves and their families. turers of the country, those who are receiving out all after the enacting clause, and inserting, in We extend to the eastern manufacturer pro- protection under the tariff laws in addition to lieu thereof, the following: that all goods, wares, and merchandise, or articles manufactured or made,
tection against the manufactures of the Old that of the drawback of five cents a pound on except efined petroleum, refined coal oil, gold and World through our tariff laws. Of this I do cotton goods exported, taking out of the Treassilver, spirituous and malt liquors, manufactured not complain; but at the same time, I must ury, as was shown at the time by my colleague, tobacco, snuff, and cigars, by any person or firm where the product shall not exceed the rate of $1,000 per
insist that our internal revenue laws shall be [Mr. Allison,] who is a member of the Comannum, and shall be made or produced by tho labor so framed as to protect, in some degree, the mittee of Ways and Means, more than three of said person or firm, or by his or their family, shall mechanics and small manufacturers of this times the amount of money which this amendbe, and are hereby, exempt from tax, Where the product shall exceed such rate, and not exceed the country against the encroachments of those ment would do in the way of reducing the rate of $3,000, the tax shall be levied, assessed, and great establishments which have grown up aggregate amount of tax to be derived from collected only upon the excess above the rate of $1,000 under the fostering care of our tariff laws. It the bill as reported by the committee. per annum; and in all other cases the whole annual product, including any business or transaction where
is true that the protection which the eastern Now, sir, I think it is time for us to establish one party has been furnished with materials or any manufacturer enjoys under our tariff laws would the principle that our laboring men, our small
manufacturers, shall be relieved from this un- ple employment or not. This is a question of in addition on the ax, the hoe, the shovel, or necessary taxation until they reach a point how much we shall give to this smaller class the machine by which he works and delves to beyond that which is required for the support of workinen. I am as sensible to their wants get that income. It is an inequality which is of themselves and their families. After you and requirements as any man can be. My i wrong. It is a tax upon the means by which have passed the limit of $3,000 provided for by people would receive as much benefit from wealth is produced. iny amendment, then let your manufacturers be this as any other. But I do think that when Now, there are exceptions to this rule. We
But send not the tax-gatherer we have gone as far as the existing law goes, should tax the improvident investments of into all your workshops where no machines are we have gone, perhaps, as far as we can well men and articles of luxury and extravagance. found, where only hand labor is performed. do in strict justice to all parties. If the gen. Put your tax upon such things, but by no Let them have this protection. It is nothing || tleman will consent to modify his amendment means put it on the means by which incomes but equal, fair, and just, and I hope the com- so as to exempt only $1,000, and strike out the are produced. I am in' favor of exempting mittee will indorse it.
remaining portion of it, I will not object to it. all plows, threshing-machines, and those other I withdraw the amendment to the amend- Mir. WILSON, of Iowa. Does the gentle- machines which help to augment the resources ment.
man mean by that remark that he desires $1,000 of the country. Mr. SLOAN. I move to amend the amend- to be exempted to all the manufacturers of the [Here the hammer fell.] ment by striking out "$3,000" and inserting country?
The question was taken on Mr. MORRILL'S $4,000," and I hope the amendment which I Mr. MORRILL. To all manufacturers who | amendment to the amendment, and it was dishave proposed will prevail. There is no doubt do not manufacture over the amount of $1,000 || agreed to. in my mind that the system of taxation inau- a year.
The question was taken on the amendment gurated in this country has borne more heavily Mr. WILSON, of Iowa. That is the present offered by Mr. Wilsox, of Iowa, and it was upon the small manufacturers than upon any law, and such an amendment would make no agreed to. other class; and all will agree that they are change in the law.
The Clerk read as follows: among the most deserving of all classes in our Mr. MORRILL. Well, I move to strike out That section ninety-four be amended by striking community. While the manufacturing men that portion of the gentleman's amendment.
out all after the enacting clause and inserting in lieu
thereof the following: that upon the articles, goods, with large capital have been fostered and have The CHAIRMAN. There is an amendment wares, and merchandise hereinafter mentioned, exbeen growing richer, the business of the small to the amendment already pending.
cept whero otherwise provided, which shall be promanufacturers in every branch has been de- Mr. SLOAN. I withdraw my amendment
duced and sold, or be manufactured or made and sold,
or be consumed or used by the manufacturer or propressed throughout the country. to the amendment.
ducer thereof, or removed for consumption, or for Now, in regard to licenses, the man who man- Mr. ALLISON. I renew it for the purpose delivery to others than agents of the manufacturer or ufactures but one or two thousand dollars a of saying a word or two. The proposition in
producer within the United States or Territories
thereof, there shall be assessed, collected, and paid year pays the same license as he who manufac- the ninety-third section of the existing law only the following taxes, to be paid by the producer or tures half a million or a million dollars, and I applies to that class of manufacturers who, manufacturer thereof, that is to say: it is of vital importance in the newer States, themselves or by their families, produce to the
On candles, of whatever material made, a tax of five
per cent, ad valorem. where we have none of these very large man- amount of $1,000 by the existing law, or to On gas, illuminating, made of coal wholly or in ufacturing establishments wielding a capital of the amount of $3,000 as provided in the amend- part, or any other material, when the product shall millions of dollars, that we should foster the ment of my colleague, [Dr. Wilsox.) There.
not be above two hundred thousand cubic feet per
month, a tax of ten cents per one thousand cubic interest of the smaller manufacturers. They | fore, this applies only to that class of persons feet: when the product shall be above two and not are the germ from which, if properly fostered, who are engaged themselves in the various exceeding five hundred thousand cubic feet per will grow up these large establishments which classes of manufactures. It does not apply to
month, a tax of fifteen cents per one thousand cubic
feet; when the product shall be above five hunwill in time pervade the West.
It is, in my
the men who employ hands, or a large amount dred thousand and not exceeding five million cubic judgment, one of the most meritorious prop- of machinery. I think that it is a just amend- feet per month, a tax of twenty eents per one thonositions that can be addressed to the commit- ment, and that the Committee of Ways and
sand cubic fect; when the product shall be above
five millions, a tax of twenty-five cents perone thoutee.
These small manufacturers have been Means onght to consent to it as proposed by sand cubic feet. And the general arerage of the oppressed by being required to pay double and my colleague.
monthly product for the year preceding the return triple taxes on articles which they were com- We all know that the manufacturers all over
required by this act shall regulate the rate of tax
herein imposed. And where any gas-works have pelled to purchase from the larger manufac- the country are protesting against this tax upon not been in operation for the next year preceding turers; and it is a step in the right direction to the industry of the country. I doubt not that the return as aforesaid, then the rate shall be rezurelieve from these accumulated taxes those who it is the most obnoxious and burdensome tax
lated upon the estimated average of the monthly
product: Prorided, That the product required to be manufacture a less amount than $1,000 mainly we impose upon people; and I think we should
returned by law by any gas company shall be underwith their own hands.
relieve them of it as rapidly as we can. This stood to be, in addition to the gas consumed by said I regret exceedingly that the chairman of the is a step in the right direction; by first attempt
company or other party, the product charged in the committee has felt called upon to oppose the
bills actually rendered by the gas company during ing to relieve the small manufacturers who are the month preceding the return; and all gas comproposition which the gentleman from Iowa struggling to build up a business in the West panies are hereby authorized to add the tax imposed has made, calculated, as it is, to foster and as well as in the East. I hope next year we
by law to the price per thousand cubic feet on ras build up our home industry. Three or four | shall be able to reach a larger class, and relieve
sold: Provided further, That all gas furnished for
lighting street lamps or for other purposes, and not thousand dollars is a small sum in itself, and them, and levy the taxes on the luxuries of the measured, and all gas made for and used by any I think that in manufactories where but that country, upon which I believe we can raise a
hotel, inn, tavern, and puivato dwelling-house, shall
be subject to tax whatever the amount of product, sum is produced, at least the amount of $1,000 sufficient revenue. I trust, therefore, that the
and may be estimated; and if the returns in any ought to be exempted entirely from taxation. amendment of my colleague will prevail, and case shall be understated or underestimated, it shall I trust that upon reflection the able chairman I withdraw my amendment to it.
be the duty of the assistant assessor of the district to
increase the same as he shall deem just and proper: of the Committee of Ways and Means will con- The question recurred on the amendment And provided further, That gas companies located sent to this proposition. If he desires to make offered by Mr. Wilson, of Iowa.
within the corporate limits of any city or town, this revenue system, burdensome and oppress- Mr. MORRILL. I move to strike out from
whether in the district or otherwise, or so located as ive as it is, popular with the people, here is the amendment the words “whose product imposed by law upon the company having the largest
to compete with each other, shall pay the rate of tax an opportunity for him to do it.
shall exceed such rate, and not exceed the rate production. [Here the hammer fell.]
of $3,000, the tax shall be levied, assessed, and Mr. HOTCHIKISS. I more to strike out in Mr. MORRILL. Mr. Chairman, I have collected only above the rate of $1,000 per line eighteen hundred and forty-four, all after sometimes indulged a hope that in the course annum.
the words "cubic feet' down to and including of a year or two we might be able to dispense with Mr. HARDING, of Illinois. I am opposed the words "cubic feet'' in line eighteen hunthat taxation which now presses so heavily upon to striking out the second clause of the pro- dred and fifty-one. I hope the chairman of the our home manufactures. But, sir, observing || posed amendment of the gentleman from Iowa. Committee of Ways and Means will agree to the tendency of the action of this committee, I I desire simply to say, without detaining the that. am almost discouraged, and fear that we may House, that I am in favor of his amendments. Mr. MORRILL. I cannot agree to it. not reach that happy time for some considerable I hold, Mr. Chairman, that it is only legiti- Mr. HOTCHKISS. Then I desire to call period longer. I perceive that the tendency mate to tax the wealth and luxury of the coun- the attention of the committee to the pecuall over the House is to take such action for try. I hold it to be utterly opposed to correct | liarity of this provision in the law. Ostensibly the benefit of individual interests as largely principle to tax the means by which incomes it seems to be a tax upon gas companies, and to reduce the amount of revenue to be derived
are produced and also to tax the incomes. I a tax upon them in proportion to the amount under this bill.
hold such a system to be unequal in its effects. they manufacture; but when you come to read I think the proposition of the gentleman You tax a small manufacturing establishment | the section through, you find that it is a tax from Iowa will not hold when he comes to con- which produces only $3,000 a year, and you upon the consumer, and the consumer is not trast it with the action of this committee in also tax its income. What will you do with taxed in proportion to the amount of the article relation to exported manufactures of cotton. the gentleman who sits in his office and by that he consumes, but in proportion to the If anything is a fallacy, it seems to me that that skill and ingenuity produces an income of amount produced by the company ; that is to portion of the gentleman's arguinent might || $3,000 a year? What does he pay under the say, if you consume gas that is produced by a justly be so called. It has no sort of relation income tax? It is the production of his wealth. small company, you pay ten cents per thou. to a measure of this kind. That was merely a Wealth is able to pay taxes; poverty is not. sand cubic feet; but if the company that supquestion whether our manufacturers should work Now, the man who produces his income from | plies you is a large company, that manufactures or should not work, whether such articles should his farm or from his factory should be taxed upward of two hundred thousand cubic feet, be made here or in Great Britain. It was simply in the same way, on the product which he re- then you must pay fifteen cents per thousand a question whether we should give our own peo- turns as income, and he should not be taxed ll cubic feet for all the gas you consume.
It is a very singular provision of law, and I do not know upon what principle it is based. It is for this reason that I asked the chairman of the Committee of Ways and Means [Mr. MorRILL] to accept the amendment I have offered. I asked him to accept it because I did not wish to expose to this committee the absurdity of this provision.
It is no answer to my objection to say that a large company can produce gas cheaper than a small company can produce it. That is not so, and they charge the same prices that the small companies do ; and any increase of expense or price is visited upon the consumer. I think that under any circumstances a tax of ten cents per thousand cubic feet is large enough.
The large companies are located in the large towns where labor costs more and materials are more expensive; and you are breaking down these gas companies, while you are relieving every other light from taxation. You take off the tax from petroleum and coal oil, and all we now ask is that you shall not make the tax upon gas so burdensome upon consumers that they cannot use it at all.
Mr. MORRILL. I am extremely obliged to the gentleman from New York [Mr. HotchKISS] for his exceeding great reluctance to expose the absurdity of the existing law, and therefore the absurdity of this bill. And I am as reluctant as he can be to do anything of the kind, to expose the absurdity of his argument.
Mr. HOTCHKISS. That is all fair.
Mr. MORRILL. If the gentleman had studied the subject so as to understand it, he probably would not have made this motion. This subject underwent a thorough examination two years ago by the Committee of Ways and Means. We had before us the representatives of gas companies from all parts of the country, from Cincinnati, Chicago, Philadelphia, New York, and from many other towns and cities. The bill prepared at that time was based upon the information we derived from those men who knew something about the manufacture of gas. We ascertained then that the smaller companies could not manufacture gas so cheaply as the larger ones in'any of those places, and that there must be a difference in the amount of taxation we imposed upon them, or it would not bear equally upon the different companies. And not only all the smaller companies but the larger companies agreed that the different rates proposed by the existing law were correct and proper in themselves. I trust, therefore, that the amendment of the gentleman from New York (Mr. HOTCHKISS] will not prevail.
The amendment of Mr. HOTCHKISS was not agreed to.
Mr. STEVENS. I do not know as I fully understand this paragraph ; at all events I will move to amend it by striking out the following:
And all gas companies are hereby authorized to add tho tax imposed by law to tho price per thousand cubit feet on gas sold.
I was a member of the Committee of Ways and Means when the bill now a law was under consideration. I supposed then, as I presume we all did, that we were taxing gas companies to some extent. And we proposed a tax higher in proportion to the number of cubic feet they made upon the ground that the small companies found it cost more in proportion to produce a few thousand cubic feet than it did the large companies to produce hundreds of thousands of cubic feet. After the production has reached a certain amount all the increased cost is for material, the cost for labor being the
We therefore proposed to tax the larger companies a higher rate, because we supposed they could better afford to pay it than the smaller companies.
But how has it resulted practically? Just in proportion as the companies could make the gas more cheaply, just in that proportion has the consumer been taxed. If the companies made their large quantities of gas so cheaply that they could afford to pay the higher tax, that tax has been charged upon the consumer and
the companies have paid no tax. Now, unless been referred to; and I also concur in the you will adopt theamendment I have proposed, remarks of my distinguished friend from Penninstead of taxing the companies in proportion | sylvania. I think that the Committee of Ways to the facilities with which they make their and Means have certainly been in error in gas, and the profits they derive from its manu- reporting this bill in this shape. I think that facture, we will be taxing the consumer in pro- the gas companies in all the cities of the Uniportion to the facilities with which the compa- ted States have been making money enough to nies make the gas. Now, I cannot understand enable them to pay this tax themselves. I will why we should do that.
say to the chairman of the committee, that so Now, I take some humiliation to myself for far as the cities of the West are concerned, in having agreed to this when this subject was almost all cases, so far as my knowledge before the Committee of Ways and Means two | extends, the payment of this tax is imposed years ago. I confess that I then fell into the by the companies upon the consumers, private absurdity that my friend from New York (Mr. || and public. In many cities the gas companies Hotchkiss} did not want to expose here. And have contracts for ten, fifteen, or twenty years, now I suppose I have fallen into the other and their stock is selling at two or three hunabsurdity that my friend from Vermont (Mr. | dred per cent. above par; yet they collect this MORRILL) referred to a few moments ago. But tax from the consumers, whether individuals upon looking over this paragraph I cannot see or municipal corporations. This is certainly how it is that we charge these companies one wrong. cent.
Let me put a case. Suppose that a gas comMr. MOORHEAD. Cannot the companies pany makes a contract with the city of Clevewhich produce gas in large quantities produce || land to furnish gas to that city for fifteen years it so much cheaper than the small companies at a certain price. Under the provision of this that the consumer can afford to pay the addi- bill the company will add the tax to the price tional tax?
of the gas, and they will collect it by law. This Mr. STEVENS. The consumer pays all is decidedly wrong. We make no such prothe tax.
vision in reference to other taxation. Other Mr. MOORHEAD. Hegets his gas cheaper. | manufacturers are not thus provided for. We
Mr. STEVENS. He does not get it any must remember that gas companies are mocheaper in the end, if you add a tax to it, be- | nopolies. When they get a contract to light a cause it can be made more cheaply.
city they get an exclusive contract. They will Mr. MORRILL. I shall be compelled to not take a contract unless they get it for the refresh the memory of my friend from Penn- entire city. I believe that these companies sylvania, Mr. STEVENS,] who has been so busy should have no greater privileges than individupon the Committee on Appropriations that he uals engaged in any branch of manufacturing. hardly recollects the reasons for this provision. Mr. LE BLOND. I withdraw the amendOf course it will be seen at once that it is not ment to the amendment. necessary to put this provision in the law in Mr. GRISWOLD. I renew it. I desire, regard to any manufacturer that is not in some Mr. Chairman, to correct a statement made by way limited by local law as to price. Of course the gentleman from Ohio, (Mr. EGGLESTON,] the manufacturer of any article, whether it be who has just taken his seat. I cannot say gas or anything else, can charge the private | what may be the financial condition of gas citizen whatever he pleases.
companies in the State which he so well repreMr. STEVENS. "Then why not strike this sents here, but so far as regards those in my out?
own State I venture the assertion that, instead of Mr. MORRILL. I know many gas com: being highly remunerative to the stockholders, panies that have not raised their price at all five out of six of those companies, during the since this tax was imposed, but they have paid | last five years, have not made dividends equal the tax notwithstanding the increased price of to the legal interest on the capital invested. coal,
Let me suggest, also, to my venerable friend But this provision meets only such cases as from Pennsylvania, (Mr. STEVENS,] that the these: many cities and villages have chartered price of the gas made by these different comcompanies with the express limitation that they || panies is in proportion to the amount of gas shall furnish the gas for street lamps at a rate they make and the cost of manufacture, just as named in the charter, and the price of coal much as in regard to any other article of manhaving more than doubled within the last three ufacture. I desire to say to him, further, that or four years they have been compelled to in most cases the gas companies in the State manufacture gas not only at a loss but to pay of New York are restricted as to price by their the tax upon the amount consumed for muni- charters; and I know of my own knowledge cipal purposes, and this provision is intended that within the last five years not only have only to remove the difficulty these companies those companies been unable to declare divwill labor under if this provision is not inserted || idends, but if they had not had the option of in the law. It is a proper and necessary pro- | adding this tax to the price charged for gas vision, and should not be stricken out.
they would have been obliged to discontinue Mr. LE BLOND. I move, pro formâ, to business. It is literally true that gas comamend the amendment by striking out the last panies, instead of being highly remunerative word.
associations, have, within the last five or six I. trust that the motion to strike out this
years, been among the least remunerative corclause will prevail, for two reasons.
porations in the country. I withdraw the think it is of but little consequence whether amendment to the amendment. this provision is retained or stricken out, so Mr. DODGE. I move to amend by insert. far as the action of these companies is con- ing after the word “companies” in line eightcerned, for it is very apparent that the com- een hundred and sixty-three the words whose panies will charge the tax upon the consumer rate of charge is restricted by charter;" so in the end. The consumer will have to pay that the clause will read: it. It will not come out of the company.
And all gas companies whose rate of charge is reAnother reason why this clause should be stricted by charter are hereby authorized to add the stricken out is, that I do not conceive this Con tax imposed by law to tho price per thousand cubio
.feet on gas sold. gress has authority to say to these companies in the respective States, “You may charge this Mr. GRISWOLD. The amendment of my tax upon the consumers." This is a matter colleague may be very well, so far as it goes ; that should be left to the States alone. All but most of the companies in the State of New that this Congress can ask is, that the States York are to a certain extent, if not entirely, pay the amount with which they are assessed restrained by their charters in reference to the in this particular, leaving the States to regulate price they may charge for gas. In inany cases, the rest.
for instance, where a charter is granted by a Mr. EGGLESTON. I agree fully with my city, the company is bound during the contincolleague in his remarks in reference to the uance of the charter to furnish the city with propriety of striking out the clause which has gas at a stipulated price, that price in most
cases merely covering the cost, and being some- I know what I am talking about. I know that sumer and thus increase the rate that he is times less than the cost of manufacture. the stock of gas companies in Ohio is worth required to pay by the amount of the tax that
Mr. LE BLOND. I would like to ask the two hundred per cent., and yet in every instance the Government levies, when the States themgentleman from New York [Mr. GRISWOLD] they put the tax on their bills. I want it taken selves may have limited the price that those one question. In cases where the authorities off.
contracters shall furnish gas. You simply do of the respective States in which these gas [Here the hammer fell.]
away with the law of the States in that matter, companies are located have fixed the price to Mr. CONKLING. The theory on which this and it does not reach the question of the right be paid, does the gentleman propose by such
section is based po doubt is this: that the great of Congress to tax at all. a law as this to override the action of the gas companies, the very extensive manufactu
Mr. DAVIS. The gentleman then puts it States ?
rers of gas, can make that article cheaper than on the ground that there is no authority under Mr. GRISWOLD. I propose that we shall the smaller companies; that because they can the Constitution to impair the validity of a do in regard to gas companies just as we do in make it cheaper they will do so; that the price contract. That proposition I deny. reference to any other manufacturing compa- of gas in the large cities will therefore be less
[Here the hammer fell.] nies. When our internal revenue law was en- than in the smaller cities; and further, that
Mr. DAVIS. I withdraw the amendment to acted it provided specially that where con- for the same reason the consumer can afford to
the amendment. tracts as to price had been made the party have the great companies pay a larger tax and
The question recurred on the amendment making the contract should have a right to yet the net cost to him not be as great as it
offered by Mr. DODGE, as modified at the sugadd the tax.
would be if the smaller companies supplied it, gestion of Mr. Coxkling, to insert the words Mr. LE BLOND. I would like the gentle- paying a less tax and incurring a greater cost
** whose rate of charge is restricted by law' so man to state whence, in his view, Congress in the manufacture of gas. That, I think, is a
that the clause will read, and all gas compaderives the power to override the action of fair statement of the theory upon which this
nies whose rate of charge is restricted by lay States in matters of this kind.
section is based. Mr. GRISWOLD. Let me say to the gen- Now, what is the fact in practice? Surely | by law to the price per thousand cubic feet on
are hereby authorized to add the tax imposed tleman that I do not conceive that the ques- we all know-certainly my colleague knows tion of State rights has anything to do with that in the city of New York the gas consumer
gas sold;' and it was not agreed to.
The question recurred on the motion of Mr. this matter. pays a larger price than we pay in the city of
Steveys, to strike out the paragraph. Mr. LE BLOND. Well, I think it has Utica. I find it to be the fact in practice that Mr. LAWRENCE, of Ohio. I move, pro everything to do with it.
the great gas companies charge a higher price, | formâ, to strike out the last word. Mr. MORRILL. I desire to say merely a and then they take the tax which they have to
This proposition, it seems to me, is very
obword or two lest the House should be led pay, without even disguising it in name, and
jectionable as it stands in the bill. In name astray by the statements as to the immense put it in so many words upon the bill, so much profits of these companies. I am somewhat in addition for taxes, and the consumer pays it.
it proposes to tax the gas companies when in
fact it exempts them from all taxation. It is acquainted with the history of quite a number Now, unquestionably this is a great evil, and
a delusion and a fraud upon its face, and it is of these corporations in the United States, and I think the amendment of the gentleman from I am satisfied that but few of them have made Pennsylvania [Mr: STEVENS] looks in the right
a kind of legislation which we ought not to large profits. One company in New York, the direction; and I think the amendment of my
encourage. I do not quite agree with my friend
from Ohio, that we have not the power to proManhattan Company, another in Boston, and colleague [Mr. Dodge] would be better if in I believe one or more out West, have made large place of saying " where the rate is fixed by the price of gas. I suppose that the high power
vide by law that this tax may not be added to profits; but, taking them generally, throughout charter” he would modify it by saying "where almost the whole country, you can buy their it is restricted by law."
which Congress exercises in enacting a tax law
is sufficient to enable us to frame any provisstock at less than par.
Mr. DODGE. I accept that modification. Mr. Chairman, in relation to the provisions Mr. EGGLESTON. I withdraw my amend effectual, and if it he necessary to provide
ion which may be necessary to make the tax in this respect of the bill now before us, I think ment to the amendment. that we had better leave them as they are.
law that the tax may be added to the consumer It Mr. DAVIS. I renew it. I desire to say that
we have power to do so. And while we have is not contended that the amendment proposed I believe under the present law no great injus. will affect the price of gas to the ordinary con- tice is done to anybody. And I believe I know
power to do that we have power also, it seems With regard to ordinary consumers something about the manufacture of
to me, to say it shall not be added.
What I want to propose-and I will suggest the companies, whether this clause be in or think my colleague [Mr. Conkling] is mis
it to the chairman of the committee-is that out of the bill, will have the same right to add | taken when he says that he pays less for gas
instead of striking out this clause we strike out the tax or not, as they deem proper. The in the city of Utica than he would bave to pay
these words, and all gas companies are hereby effect of the provision in the bill is simply in the city of New York. My impression is this : that where in cities these companies are
authorized," and to insert " and no gas comthat gas costs a dollar a thousand more in the bound by their charters, or by requirement of city of Utica than in New York. It certainly
pany shall;" so that it will read : law, to furnish gas at a certain rate, they are costs more in Syracuse, and I presume it must
And no gas company shall add the tax imposed by allowed to add to that rate the amount of the in Utica. In New York the price is limited
law to the price per thousand cubic fect on gas sold. tax. .by the charters of the respective companies,
Then if it is found that gas companies do Mr. EGGLESTON. I move pro formâ to and they have been appealing in vain for the not make dividends, let the Legislatures auamend the amendment of the gentleman from last two or three years to the Legislature for thorize them to increase the price. But let us New York (Mr. DoDGE] by striking out the authority to increase the price to the consumer,
not by law profess to levy a tax on gas comlast word.
because they were unable to pay a dividend on panies when in fact we are doing no such I desire to correct a misapprehension into their stock.
thing, but exempting them. which members may have been led by some of The Manhattan Company, in New York city, [Here the hammer fell.] the statements which have been made. It has it is true, as was said by the chairman of the Mr. MORRILL. That would be a very sinbeen said that the price charged by these com- committee, has been prosperous. But why? | gular proposition, and one for which I do not panies has in many cases been so low that they Because in 1861, anticipating the great trouble suppose anybody intends to vote. The propocould not realize any profit. My friend on my which we were to have in this country, they sition to strike out this part of the law authorleft (Mr. GriswolD) says that the price in his bought three or four hundred thousand tonsizing a company to add the tax will not benefit city is four dollars per thousand feet. Now, of coal in England, and imported it at a low the consumers, for whatever amount of loss I undertake to say that gas can be furnished in price. Consequently they have had this large from corporations they will be subject to on his city for three dollars per thousand feet, and amount on hand, and have been able to man. that account they will be likely to add to the still give an immense profit to the company man. ufacture at the old price, while companies not price charged to consumers of their gas. ufacturing it.
thus restricted have raised the price one or two I move that the committee rise to terminate The distinguished chairman of the commit- hundred per cent.
debate on this paragraph, tee states, as I have understood him, that in I wish to say a word in reply to a suggestion The motion was agreed to. the eastern cities the gas companies are so be. made by the gentleman from Ohio, (Mr. LE So the committee rose; and the Speaker nevolent toward the consumers that they actu- Blond,) who asks whether we have power to having resumed the chair, Mr. Dawes reported ally refuse to add this tax to their bills. Then, make this provision, as it now exists in the that the Committee of the Whole on the state again, he tells us that the stock of these com- law. I believe that in regard to every contract of the Union had had under consideration the panies is not remunerative-that the companies of this nature, and every tax of this nature, are poor. If this be the fact, all I can say is the national Government is supreme.
Union generally, and particularly the special The
order, being bill of the House No. 513, to that they are model corporations. I believe Government has the power of taxation, and no amend an act entitled “ An act to provide that we should now place a firm hand upon State has any authority to say to the national internal revenue to support the Government, these monopolies, and say to them that they Government that a tax levied for national pur- to pay interest on the public debt, and for shall pay their proportionate share of taxes as poses may not be repaid in some way to the
other purposes," approved June 30, 1864, and well as individuals who do business as manu- company or to the party who pays it.
acts aiendatory thereof, and had come to no facturers. When you say to the plow-maker Mr. LE BLOND.. If the gentleman will resolution thereon. and to the maker of reaping machines that they allow me a moment, I do not question the right shall not add the tax to the cost of manufac
CLOSE OF DEBATE. of Congress to tax, but I do question the right ture you ought not to give to the gas compa- of Congress to say that this tax that we have Mr. MORRILL. I move that when the nies the power to add it to their manufacture. levied shall be charged over against the con- House resolve itself again into Committee of