OLEOMARGARINE. 449 



In 1886 Congress passed a law imposing a tax of 10 per cent on all currency 

 issued by State banks. This was intended clearly not as a measure of taxation, but 

 as a measure of prohibition. The Supreme Court of the United States held this law 

 to be constitutional, und said: 



"The tax can not be held invalid for being so excessive as to indicate a purpose to 

 destroy the franchise of the State banks." 



Chief Justice Marshall, in the case of McCulloch r. Maryland, also said: 

 "That the power to tax involves the power to destroy 'is a proposition not to be 

 denied." 



Justice Story, in his work on the Constitution, book 1, pages 677-678, says: 

 "Nothing is more clear from the history of nations than the fact that the taxing 

 power is often, very often, applied for other purposes than revenue. It is often 

 applied as a virtual prohibition; sometimes to banish a noxious article of consump- 

 tion; sometimes as a suppression of particular employments." 

 Alexander Hamilton says : 



"Under the taxing power there is no limit as to the amount which maybe charged. 

 It often happens in certain avocations that the power to tax is used in aid of the 

 police power, either by devoting the fund to the payment of the police power or by 

 making the tax so high as to be in its nature prohibitory." 

 Justice Woodbury, in the case of Pierce et al. v. N. H., 5 Wheat., 608, said: 

 "But I go further on this point than some of the court, and wish to meet the case 

 in front and in its worst bearings. If, as in the view of some, these license laws are 

 in the nature of partial or entire prohibitions to sell certain articles, as being dan- 

 gerous to public health and morals, it does not seem to me that their conflict with 

 the Constitution would by any means be clear. Taking for granted that the real 

 design in passing them is the avowed one (prohibition), they would appear entirely 

 defensible as a matter of right, though prohibiting sales." 

 In Walker's Science of Wealth this rule of taxation is also general : 

 "The heaviest taxes should be imposed upon those commodities the consumption 

 of which is especially prejudicial to the interests of the people." 



Mr. HEWES. I would like to add one case to the references given by 

 Commissioner Adams. That is the case of Fox, 89 Maryland, page 

 389. That is where Judge Fowler says it is impossible to restrict the 

 sale of original packages when the article is not deleterious to health, 

 if it is not proven by the State that it is deleterious to health. That 

 is a very important case, showing the absolute necessity for this 

 legislation, so far as the first section is concerned. 



STATEMENT OF S. C. BASSETT, PRESIDENT OF THE NEBRASKA 

 STATE BOARD OF AGRICULTURE. 



Senator ALLEN. Give your name, place of residence, and occupation. 



Mr. BASSETT. S. 0. Bassett, Gibbon, Nebr. Mr. Chairman and gen- 

 tlemen of the committee: As president of the Nebraska State Board 

 of Agriculture, I appear before you to-day in behalf of the farmers and 

 dairymen of Nebraska who desire that the so called "Grout" bill shall 

 become a law. 



If you will pardon a personal allusion, I might say that thirty years 

 ago I made settlement on a homestead in that State, upon which I have 

 since resided; that much of that time I have been engaged in the dairy 

 and live stock business, and that in this matter I represent the views 

 and wishes of the thousands of farmers of my own State. 



It was stated by a gentleman who appeared before you that the 

 farmers were not asking the passage of this law; in fact, that the 

 farmers were not particularly interested in the matter. 



In view of the great interest which this measure has created in 

 Congress; in view of its widespread discussion in the public press; 

 in view of the fact that every agricultural newspaper in our land 

 advocates its passage; that every State dairy and food commissioner 

 who has appeared before you is in favor of the bill; that State boards of 

 agriculture, State dairymen's associations, national and State granges 

 have all adopted resolutions in favor of this measure and urging that 



S. Rep. 2043 29 



