The Washington herald., 1909-06-17

President Tafts expected message ad-
vocating the imposition Of a per cent
AK on the net incomes of corporations,
and recommending the adoption Of a
joint resolution submitting to the people
OF the States the question of amending
the Constitution to permit a tax 10 be
levied on the incomes Of individuals. was
sent to the Senate yesterday.
1t has apparently killed the last hope
of the Democrats and those Republican
Insurgents who had entered into a COM
5ination for the purpose Of enacting a
law directing an immediate levy OF an
Individual income tax.
The Presidents attitude is gratifying to
Senator Aldrich and his following in the
Senate, as it furnished the influence they
desired to enable them TO carry out the
programme they had arranged Of circum-
venting the Democratic-insurgent Repub-
liean plan of putting an income tax law
IN the statute books.
Advocates Amendment.
In his message. the President takes the
ground that in view Of the decision OF
the United States Supreme Court declar-
Ing that the income tax law Of 1894 was
contrary to constitutional stipulation, the
proper course to pursue is to submit 20
the States the matter of amending the
Constitutional inhibition. He suggests
that the enactment Of an income tax
law at this time would be in the nature
Of a reflection on the Supreme Court.
IN the course of his message. the
President says that while no one can
speak with certainty on the subject, II
have become convinced that a great ma
tority Of the people of this country are
IN favor Of vesting the national govern
ment with power to levy an income tax
and that they viii secure the adoption
OF the amendment in the States If pro-
posed 10 them"
Closer Supervision os Business.
As to the proposed ? per cent tax on
the net incomes Of corporations. 8Ir Taft
in advocating IL, makes the point that in
addition TO providing additional revenue
amounting to not less than SO 00.OOO IL
will furnish the means Of a closer super
vision Of the accounts and business trans
actions Of corporations He argues that
such a law would not be incompatible
with the provisions OF the Constitution,
which. in the case Of the tax on individ-
ual incomes, the Supreme Court found 10
apply adversely.
Goes TO Finance Committee.
The Senate suspended the consideration
Of the tariff bill 10 have the message
read, and the Senators, nearly all OF
whom were in their seats. gave the clos
est attention 70 what Mr.. Taft had to
say When the reading was finished
Senator Root. who was in the chair. an
nounced that It would be referred to the
Committee on Finance.
Immediately a parliamentary wrangle
arose over a motion Of Senator Gore. Of
Oklahoma, one Of the most radical Demo
Gratis. that the Finance Committee be in
structed 10 report provisions IN accord
ance with the Presidents recommenda-
tiOns
Senator Bailey, leader Of the Democrats
in the fight for an income tax. said he
would vote against Mr Cores motion
unless the direction 20 have the commit
Zee follow the Presidents recommenda-
tions was eliminated
Mr.. Gore consented and his motion as
put 20 the Senate provided that the mes
sage should be referred 70 the Finance
Committee with instructions 10 report It's
conclusions before Friday.
Instructions Eliminated.
Senator AIdrich moved 10 lay this mo-
tion on the table. he and the Republicans
taking the position that a simple ref
erence of the message 20 the Finance
Committee without Instructions Of any
sort was all that was necessary Mr.
Cores motion was laid on the table by a
vote Of 81 to 25, a strict party division.
Even such radical income takers among
the Republicans as Senators Borah. Cum
Minis, and La Toilette followed Mr.. Aid
richs lead.
All the Democrats present voted with
Mr. Gore. The message was then re-
ferred to the Finance Committee. in ac-
cordance with Mr.. Roots previous rul-
ing. and Immediately thereafter Mr..
Bailey served notice that when the COM
mittee reported back a joint resolution to
amend the Constitution so as to enable
Congress TO enact an income tax law
sion for a graduated income tax, to be
levied Immediately
Wins Fight for Regulars.
At the first opportunity after the read
ing OF the message the Democratic Sena-
tors began informal conferences among
themselves to determine what course they
should pursue toward the programme
which the Finance Committee will adopt
in accordance with Mr.. Tafrs recon-
mendations.
Some Of them made a canvass Of the
insurgent Republicans, who favored an
immediate income tax, and brought back
the pessimistic information that as far as
they could ascertain only seven insur-
gents were likely to remain true to the
Continued on Page 3, Column g.
CheaD Round Trip TO California