The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-06-15
SEE AMENDMENT
TO CONSTITUTION
Such May BE Result of
Present Income Tax
Fight in Senate.
PRESIDENT TAFT
OFFERS SCHEME
Finance Committee Will Have
Substitute for Bailey-Cum-
minis Proposition.
By JOHN sNURE.

An amendment 10 the Constitution
giving Congress authority to levy and
collect income taxes may be an out
come Of the present controversy
The Senate Finance COMMITTEES leaders
have been casting about for way TO
beat the amendment to the tariff bill.
They have found hard shedding. The
first plan was to refer the question to
the Judiciary Committee 10 report next
session. but it developed such weak
ness that Senator Aldrich had TO aban-
don 1t.
Up TO the last .twenty-four hours
Aldrieh and his aides were discouraged
over the proba bility of their inability
TO defeat the Bailey-Cummins income
tax amendment but President Taft
has proposed a scheme which he talked
over with Senator Aldrich at luncheon
yesterday. which at this time has good
prospects of being adopted. II is:
First-For a Constitutional amend
ment authorizing the levy and collec-
ton OF income taxes.
Second-For a tax on the net earn
ings Of corporations.
To Have Substitute.
The Finance Committee will offer a
substitute for the Bailey-Cummins
measure next Friday, which will COM
bine the two propositions here men
toned.
AS the situation stands today it is
uncertain whether the compromise plan
or the other viii win. The commit
tee leaders say they have gained
strength and that they will win out.
on the other hand the supporters of
the Baliey-Cummins proposition do not
admit their defeat, and say they still
have enough votes 10 control the Situ-
alton 1t is admitted on all hands thai
the situation is close and doubtful.
This IS the first time the President
has openly interfered in the legislative
situation since the tariff bill went TO
the Senate The fact that ne has
aligned himself with Aldrich and the
committee leaders in an effort TO side
track the income tax measure is not
relished by many Of the insurgents. They
ask why, il the President saw TT 10 take
a hand in this he did not intervene in
behalf Of lower schedules on the other
hand, If they were assured that an in
come tax amendment would finally be
addict TO the Constitution. its supporters
would be pleased. What they fear is
that the upshot 81 the whole matter will
be a failure to accomplish anything,
that they viii be defeated and that the
proposal OF an amendment to the Con-
stitution VIII at some stage OF the pro-
ceedings be sidetracked-
Payne Is Hostile.
They are aware that Chairman Payne.
Of the Ways and Means Committee. is
hostile TO the income tax IN any fern
and they fear that it may be difficult
or impossible TO get three-fourths of
the States 10 ratify an amendment.
At the same time the high tariff SEN
ators also do not relish the idea They
would be glad to ind some other way
out of the hole they are in. But they
can see no other than the one the Pres
ident is willing TO support and so they
have coneluded 10 swallow the dose
and look pleasant
The President has called in several OF
the Republican Senators who favor such
a tax and has urged them TO accept the
compromise Among those called in
we're Senator's Brown, Jones. and
Bourne Others will be asked in be
tween now and Friday Senators Crane
and Bourne we're visitors today.
Bourne IS one of the Senators VINO is
much impressed with the Importance Of
the corporation earnings tax for the
reason he thinks il Will lead TO publicity
and TO a large measure OF Government
control President Taft is understood to
favor II on the same theory It is not
unlikely that trouble over this phase OF
the question will arise before the pro-
posed corporation tax is imposed, since
Senator Aldrich and his followers are
not likely to consent 10 any legislation
that contenlplstes giving the Govern
ment a handle over the great interstate
combines.