Evening star., 1909-07-01
Borah Says President Former
Iy Opposed Corporation Tax.
RECORD OF LEADERS READ
Points to Senators Who Voted
Against Proposition in 1895.
REGRETS INCOME TAX REPEAL
Bourne Favors the Amendment and
Root Tells of It's Origin
and Preparation.

President Taft was quoted in the Sen
ate this morning by Senator Borah OF
Idaho in opposition to tax on corpora
tions. which the President recommended
to Congress in a special message several
weeks ago. Mr.. Borah read from speech
which Mr.. Taft delivered at Boise City,
Idaho, before his election, in which he
said that such tax would be an un-
necessary injury to business. and advo-
Gated instead an income tax.
Il hesitate to read this said Mr.. Bo-
rah, because l know it will be said
that l am trying to criticise the President.
That is farthest from my mind. l did all
I could to put him where he is, and l
believe In his large heart and honest
brain. ] would not be afraid TO put all
he has said before the American people.
But | am deeply in earnest about this
matter believe an income tax is abso-
lutely essential to preserve that balance
between consumption and wealth that is
the golden thread underlying our repub-
lican form of government.
Il also believe that this corporation tax
was brought in here, whether Intentional
ly or not, as plain SubterfuSe to defeat
this great measure.
Senator Bacon of Georgia interrupted
Mr.. Borah to ask him why he qualified
his last statement in view of the fact that
Senator Aldrich. chairman of the finance
committee, had stated to the Senate that
he favored the corporation tax merely
to defeat the income tax.
Il was speaking of the President of the
United States,'f responded Mr.. Borah.
"Of course, l did not understand that"
said Mr.. Bacon.
During his speech against the corpora
tion tax amendment to the tariff bill Mr..
Borah repeatedly referred to the fact
that Mr.. Aldfich had admitted that he
would vote for it in order to defeat the
income tax.
Defends Finance Committee.
This led Senator McCumber of North
Dakota, who is member of the finance
committee. to protest that the commit
tee had no such purpose.
THAT is not the reason so far as l am
concerned declared Mr.. McCumber. Il
do not understand that the colloquy here
the other day between the chairman of
the finance committee and another sena-
tor was intended to give the reasons that
actuated the committee
He asserted that Mr.. Aldrch was CIV
Ing his own personal reason fer support
ing the corporation tax.
II do not KNOW, continued Mr. Nc
Cumber, that a single other member of
the committee takes the stand he does
l shall vote for the corporation tax, but
/ believe. if 1t could be legally had. an
income tax measure would be prefer
able"
Mr.. Borah said he was glad to have
the views of the senator from North
Dakota, and he hoped his confession
would extend to other members of the
committee. Replying to Senator Clapp
of Minnesota, Mr.. McCumber said he was
not speaking for any members of the
committee except himself.
al
adventure of doubt asserted Mr.. Borah
that this measure had its origin in a
desire TO beat the income tax. The great,
big, overwhelming proposition is the fact
that it is here as measure to defeat the
income tax. And when it has served it's
purpose it will die, as the chairman OF
the finance committee says, an ignomn-
ious death"
Republican Leaders Quoted.
He then quoted republican speeches
against the corporation tax on gross
earnings in 1898. Senators Aldrich and
Lodge were quoted as opposing it,.
Everybody smiled when he read from a
speech by Senator Lodge. attacking the
gross earnings tax in strong terms.
calling X extremely unjust and uncon-
stitutional.
rs il possible that the senator is
sachusetts?" spoke up Senator La Fol-
lette. with a twinkle in his eve.
Il am quoting from a speech in the
Senate by Senator Lodge responded
M. Borah
Senator Carter of Montana wanted to
know whether the attitude of the demo-
Gratis had not also changed since then.
MIR. Bailey replied that he did not
think ii had. The democrats believed
aid the Texan. that an income tax
was preferable to corporation tax
but he said lie for one did not question
the constitutionality of the corporation
tax. Considerable significance was at
tached to this admission, as Mr.. Bailey
Is leading the minority fight for the
income tax.
that. speaking for himself, he would vote
for the corporation tax if he could not
get the income tax, or something pref
erable to the corporation tax, and he
regarded the corporation tax, notwith-
standing its bad features. as better than
a tax on consumption.
4 smile went around when Mr.. Bailey
added in illustration of his view of the
broad taxing power of Congress:
Il believe Congress could tax all the red
haired men in a given line of business if
il saw fit
He added that there might he a ques-
tion as 10 whether a tax on red-headed
men was not per capita tax.
Against the Tax in 1898.
Mr.. Borah called the roll of republican
senators who voted against a tax on
corporations in 1895 Among the num-
ber were the following who are now
members of the Senate: Aldrch, Carter,
Cullom, Elkins. Frye. Gallinger, Hale.
Nelson, Penrose. Perkins, Warren and
Wetmore.
Referring TO the income tax law of the
civil war times. Senator Borah said II
was repealed against the protests of
some of the wisest men in the republican
party, repealed by bare ma jority of
one, and its repeal was, Morton said,
an injustice to the mass of the Ameri-
can people. Its repeal was due to the
influence OF that power which has ever
stood in solid phalanX against it, He
quoted Garfield, Sherman, Morton OF
Indiana and others in opposition to its
repeal.
He said that the senior senator from
Illinois .(Cuilom) was in Congress and
voted against its repeal. Senator Cullom
who sat nearby. an attentive listener
nodded his head in approval.
Flint Resents Charge.
Senator Borah charged that the men
who were now advocating the plan of
submitting the income tax question 10 the
states for the amendment of the Constitu-