The Washington herald., 1909-07-15

strenuous opposition 20 Ihe corpotatLuH
tax In the tariff conference committee
has caused President Taft to take hand
in the controversy. with the idea OF
bringing about harmonious action be-
tween the conferees which will result in
the enactment Of the corporation tax
amendment as part Of the forthcoming
tariff law.
At the Presidents invitation. Senator
AIdrich, chairman Of the Finance Com
nittee and leader Of the Senate conferees,
and Representative Payne. chairman Of
the Ways and Means Committee and
leader Of the House conferees. went TO
the White House last night for the pur-
pose Of discussing the corporation tax
feature with Mr.. Taft.
When the invitation 10 them to visit the
White House was extended. the Senate
conferees and the House conferees were
virtually at a deadlock in regard 20 the
proposition 10 tax the incomes of corpO-
rations. and there appeared to be a Sc
rious prospect that this proposed legisla-
ticn 10 which the administration was
committed would fan by the wayside-
They reached the White House az 9
o'clock and did not leave until midnight.
Payne Is Opposed.
Chairman Payne and the House con-
ferees have no use whatever for the cor
poration tax The tariff bill which MI
De- ,Dz 1,fe co1foo o-,,ao Of tho vy~o,-e
and Means Committee reported to the
House contained q provision for the i'm
position Of graduated inheritance taxes.
something that had been advocated By
President Taft and apparently accepted
By the Republican leadership OF the
House as 2 party measure When the
tariff bill went to the Senate the inheri-
tance tax feature was Included IN It.
Il was the original purpose OF the Re
publican members Of the Finance Com
n7iftee OF the Senate to eliminate the in
heritance tax from the bill. and not TO
include any provision for the assessment
Of direct taxes OF any kind. Subsequently
the Senate leaders were confronted with
the knowledge that unless some radical
change in the situation occurred the Sen
ate would adopt an amendment imposing
a tax on individual incomes.
Il was az this juncture that an appeal
was made TO President Taft, and in con-
sequence Of his efforts the corporation tax
amendment was proposed in the Senate
as a substitute for the pending income
tax amendment. 1t is understood that
through this course the Senate leaders
adoption would have been a severe blow
10 their organization.
Senator Aldrich and his Republican coll
leagues OF the Finance Committee never
liked the corporation tax Mr. Aldrich
was frank enough to say so on the floor
Of the Senate during the tariff debate.
but they realized that this legislative
will-o'-the-wisp, with no friends even
among its most ardent supporters. had
knocked out the income takers, composed
Of the most radical element Of the Senate
Republicans In coalition with the Demo-
Gratis. and for that reason was deserving
Of consideration. Furthermore. the as
sistance which President Taft had given
them appeared to place them under a
moral obligation TO support the corpora
ton tax proposition which the President
had espOused and had gone even TO the
extent OF backing up in a special message
to Congress intended To help tho Finance
Committee out or the slough OF despOnd
n which It found Itself.
The House cOnferees. and particularly
Chairman Payne. rejected the measure
utterly and declined TO yield their adher-
ence TO the graduated Inheritance tax.
Senator AldFich and his colleagues, bury
Ing their dislike for the proposition, came
valiantly 70 It's support. but Mr.. Payne
md his associates would not bulge an
inch. 1t was evident that the House
conferees, knowing that their Senatorial
associates had no love for the corpora
ton tax, intended 10 bring all the force
possible in the way Of argument to con-
vince the Senators that the inheritance
tax was the better method of raising
revenue from material as well as from
a political standpoint.
May Save Inheritance Tax.
One OF the Senate conferees admitted
that If the House conferees kept a stifr
backbone they might. after all. be able
to save the inheritance tax at the ex-
pense OF the corporation tax. IN spite Of
the fact that President Tart had aban-
doned the inheritance tax in favor OF The
corporation tax.
II was at this point that the President
realizing the danger which threatened. his
own plan for obtaining supervision over
the business methods OF corporate bodies
decided 10 take a hand in the game Tie
President has felt that The corporation
tax provision OF the Sena.e Iii. Should
be accepted by the House conferees as
a party measure. IL was understood az
the time the Senate leaders agreed 10
propose the corporation tax as an amcn5-
lnent 70 The tariff bill, tha; The House
leaders. lnclud.ng Speaker Cannon ana
Representative payne, would accept tho
Senate amendment as substitute for the
Inheritance tax.
Apparently. however, Mr.. Payne did not
share in that understanding in spite OF
Continued on Page 3, Column G.
Popular Excursion sunday, July Is
Baltimore & Ohio II. u.