Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1909-06-17

Railroads, for example, not only 10 Tut
east but in the west, count among
their stockholders thousands OF peo'
pie in very moderate circum'
stances, who are actually dependent
upon the dividends sccruiug from Their
stock holdings in these roads. IL IL
claimed that many widows and orphans
dependent upon stock legscies of cor
porations would find their incomes
materially reduced on account OF the
amount which the Federsl government
would take from the net earnings oil th'
corporations whose stocks are held 10
trust for such widows and orphans or iol
the benefit of charitable institutions,
large part of whose income is derived
from dividends upon corporation stock
According to figures obtained today
from the interstate commerce commits
sion the net earnings of the railroads o.
the country for the nine months
Of the present fiscal year, ended
March 81, aggregated more than
$3.50, 900, 600, which makes an aver
age of about 100000, 900 a month.
Should the same rate be maintained the
grand total would approximate 500,
600, 900, upon which two per cent tax
would yield $14, 500, 600, or more tbau
half of the amount which the president
estimates should be collected from sll Of
the corporations OF the country. Sena
tors Borah and BristOw, two of the most
ardent republican supporters Of a direct
income tax. joined in statement as to
the effect of the proposed tax on corpora
lions as follows: "a tax upon the mel
incomes of corporations alone will very
imperfectly reach the desired result. II
will tax tens Of thousands Of stockhOld-
era whose total incomes ere very small,
and will exempt 10 large measure the
immense personal incomes of the conn
rry. There is no reason for exempting
from taxation the vast incomes Of indi-
viduals like Carnegie, Rockefeller and
Others, a very large part of whose fortunes
do not consist of corporation stocks.
at is also well known that corpora
tions, especially the larger ones, can, in
most instances, shift the burden of the
tax to the public by imposing upon the
people increased charges aud prices. "
1t is certain that if the plan TO be
proposed by the Ruauce committee does
not contain exemptions to cover the
case of small corporations and joint stock
companies amendments will be offered
on the floor by senators who object to
the assessment of taxes upon the net
earnings of these small concerns. Ssns-
ator Oummins, who, with Mr. Bailey,
is the Joint author of the pending amend
ment for direct income TAX, does not
admit that the fight has been lost al.
though admitting that the support
given by President Taft has greatly
strengthened the hands of Senator AL
drich.
"There are few senators, l believe, "
said he, "who will accept the presidents
recommendation as a party declaration.
Although there are not very many who
will vote with Mr.. Aldrich on this
ground / am afraid we cannot spare
even few.
81 do not imagine that Mr.. Aldricb
wants a tax on the incomes OF corpora
tons any more than be does an income
tax. but | believe he did not wish to see
the Senate turn him down by vote,
and, therefore, adopted the corporation
tax. | believe by some mysterious
method he will do his best to defeat the
corporation tax in conference. | do not
think he is going to allow it ever to be-
come law if he can possibly prevent it.
al think the tax on corporations IS
much more unjust than the income lax
1t does not reach men with large incomes
like Carnegie and Rockefeller but falls
with equal weight upon the large sud
small stakeholder, which the income tax
does not do. think the proposed tax
will become very unpopular in a few
years.
HBnt if it should be enacted into Law
we will at least have won something by
our fight ! proposed the income tax
because | thought the bill would mol
yield enough revenue and Nj Aldrich
insisted that | was wrong in my conten'
ton. Now be proposes TO offer an
amendment that will produce more rev
enue than the income tax would pro-
duce.
Superintendent of Public instructor
Eggleslon made public yesterday letter
he wrote on May IL to Dr. j. l.. Jar
mao, of Fsrmvile, IA member of the State
Board of Education, in which he took
the high ground that "extraneOus in
huence and pressure" would not sway
the board from its determination, so fal
as he was concerned, to eliminate politics
in the selection OF division superintend
emit
When the House meets next Monday an 81
tempt will be made to pass the census appro
pyiation bill, which has hung fire since early
in the session. President Roosevelt vetoed
the census bill Of last session and another
measure was passed by both houses soon aftei
convening st the special session. The Senate
however. refused to agreed with the cOnferee'
on the bill Unless appropriation is made fol
the census work before the end Of the fisca
year, June 30 there will be no count Just
what Will be done Monday the leaders will
not disclose. Either the House viii agree 10
the changes made in the Senate or else pass
an appropriation bill only and direct that the
next census be taken under the old form au'
thorized for the 18th census
Pending the receipt from ttorney General
Wickersham Of the draft Of the proposed
amendment to the tariff bill to put two per
cent tax on the net incomes OF corporations,
the Senate finance committee has taken no
action upon the subject. For the same reason
il is expected that the progressive Iepubli-
cans who still adhere to the direct income
tax plan are not ready TO further discuss their
attitude towards the proposition Of the I'D
ministratiOn until after they see it in detail.