The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1909-09-22
President Taft Talks of Cor
poration Tax Before Great
Crowd and Touches Upon
New Tariff Measure.
EXPLAINS HIS OBJECTION
TO DIRECT INCOME TAX
Interior Secretary BaIIinger
Joins the Presidents Party
and viii Discuss Salt Lake
Speech With His Chief,
WARM GREETING IN DENVER
n ENVER, Sept. 21.-Making his
IL way still further to the west.

n ENVER, Sept. 21.-Making his
II way still further to the west,
President Taft arrived in Denver this
afternoon and tonight in the Denver
auditorium, where a year ago Nj.
Bryan was nominated as his Oppo-
nent in the presidential race, faced a
crowd of thousands that in its noisy
welcome and continuing enthusiasm
recalled some of the scenes of conven-
ton week.
President Taft, switching from his
purpose to discuss the question Of the
conservation Of natural resources in his
Denver speech, elected tonight to take
up the corporation tax passed as part
of the Payne tariff bill and to defend it
as against the proposition to impose a
direct income tax, which he aCknOWl-
edged seemed likely to pass the senate
when the corporation tax was devised as
a compromise. The President strongly
urged that all the states should adopt
the proposed amendment to the consti-
tuition however, to make an income tax
possible in time of need.
Ballnger Joins Party.
Mr.. Taft was joined here today by the
secretary of the interior. Mr.. Ballinger
who will accompany him on a part of
the trip through the far northwest. It is
likely that the President desired a fur
Their conference with Mr.. Ballinger
whose conduct OF the interior depart
ment he recently upheld in long letter
called out by the Ballinger- Pinchot con-
trOVersy, before making d final expOsi-
tiOn of the aims and objects of this ad-
ministratiOn as to the conservation OF
the resources.
Mr. Taft probably will not take up the
subject now until he reaches Salt Lake
where he spends Friday, Saturday and
a part of Sunday; or he may wait until
ne arrives at Spokane, Wash, where, at
the Irrigation congress, the BalGngeT-
Pinchot controversy really had its first
airing.
The President tonight declared that the
corporation tax was in itself the best
form of income tax that could be levied,
and pointed out that il contained many
of the best features of the income tax
law of England. Ia urging that the
states should vote for the amendment to
the constitution permitting the Ivy of a
direct income tax, without appOTtiOning
proceeds among the states, according to
their population. the President declared
that 1t would be possible so to amend the
corporation tax as to include within its
scope every desired feature of an income
tax except the levy upon incomes derived
from actual salary and professional
services.
Opposes Direct Income Tax.
The President said he opposed a direct
income tax except in cases of emery
ency, and he believed it TO be a prime
fault I'm the federal constitution that no
provision is made for a direct levy to
meet wartime or other extraordinary eX-
penSeS.
Mr. Taft declared that it was the su-
preme court declaring unconstitutional
the income tax law passed by a Demo-
cratic congress some years ago that pre-
vented the leaders in congress during the
session recently closed from including in
the corporation tax measure a provision
for a levy upon bonds and bondhOlders.
To tax bonds would result in the reduc-
ton Of the rate of interest, and hence
this resulted i'm a direct tax upon the
individual holders of the bonds and came
I'm contact with the decision of the court
that no direct tax could be levied by the
national government without the result
ing appOTtOnment of the proceeds among
the states
The President based his argument in
favor of the corporation tax, as com
pared to the direct income tax almost
Continued on Page 2.