The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-07-07

Tear That He VIII Force Reduced
Rates Alarms High PrOtectionists.

Washington, July 1.-President
Taft's warning gesture at New Haven
toward the interests which have
raised so high the rates OF the senate
tariff bill stirred Washington today.
Those who used to predict a White
House veto and later charged the
Administration with surrender to Sem
ator Aldrich took heart and pictured
the president as retaliating on Sena-
tor Aldrich's candid admission that he
favored the corporation tax merely to
to kill of the great evil Of an income
tax.
| But the friends Of Aldrich claim
that President Taft and the Rhode Is
land senator still maintain the har-
monious and workable relations
which have existed since the begin
ming Of the session. The presidents
declaration that the Republican party
would be relegated to a minority If it
broke promises and disappointed the
people is regarded as a part of his
campaign to influence the conference
to restore to the bill the lower rates
which it carried when passed by the
house.
| President Taft, it is known, wants
the free raw materials carried by the
house bill, and he believes that in the
Instances, like the cotton schedule.
where the senate increased specific
duties they Should be reduced in con-
ference in Difference to the tariff re-
vision sentiment of the West.
| There is no present prospect, how
ever, Of disruption in the closing days
of the session such as marked the
| Wilson bill going into effect without
the approval of President Cleveland.
High protectionists are closely watch
ing legislation, fearing that the rates
| increased by the senate will be seri-
ously cut in conference. The ease
with which certain rates have been ad-
vanced lately indicates to them that
the senate is making ready for reduc-
tions when the bill is sent back to the
house.
| Washington has been excited over
Senator Aldrich's frank statement
that he supports the Taft corporation
tax only in order to prevent enact
ment OF an income tax. Senator Aid
rich was met with a fusillade Of
| questions on Tuesday as to whether
he or Mr.. Taft first suggested the cor
poration tax expedient. 1t is now pos
sible to disclose some of the history
leading up to its launching.
When the income tax adherents
perfected their campaign President
Taft received call from Senators
Aldrich, Lodge and Crane, of the Re-
publican organization, who told him
that the Republican insurgents" led
by Senator Cummins, had 19 Repub-
lican votes, which would permit a
I com mDination with the Democrats
which would insure success for the
| income tax. They asked the presi-
dents assistance. They were willing
to go half way and support constitu-
| tional amendment legalizing an in
come tax, If the president would favor
tax on incomes Of corporations to
run only two years. The president
| declined to favor any limit as to time.
The conference proved futile. The
next morning Senators Curtis, of
Kansas; Bourne, of Oregon, and
| Brown of Nebraska, told the presi.
dent that if he would send in a rles-
sage favoring corporation tax they
would be willing to drop the income
| tax and support the corporation tax
The president received the suggestion
with favor, but before ne had time TO
follow it up Senator Crane brought
Senator Aldrich's agreement to a cor
roration tax without time limit. Then
the message went in.
Senator Aldrich told President Taft
that he favored it simply to prevent
enactment of the income tax amend
ment.
The reports that the corporation
tax might be made to kill the income
tax in the senate and then fail be-
, tween the senate and the house are
given no encouragement at the White
House.