New-York tribune., 1909-07-01
PROGRESS IN SENATE
VOTE ON TAX THIS WEEK.
cumrnins and Borah Discuss Corpo-
ration Plan Screen Hours.
rrrom The tribune Bureau ]


- e -alla5 Taft plau' for special taxes. MT
Cur1rnins finished his long speech. and MI 6ora'
rss well into his argument when an)ourilIiiei'
,el-en Il IS expected he will finish by noon to
morrow and that most Of the set speeches On 'tiS
--;,,, nil ra ont Of the way by tomorrow night
The only Senators on the Democratic SIDE VINO
have given notice Of their purpose to speak on he
amendment are Nessrs. Bailey and Ne"lailos- an
# is doubtful if either Of them VIII make an
+o-5.5 a-e-,roent Mr. Root will speak for s'pLI
an haur IN defence Of the Constitutionalty / '"7
amendment, and Mr. Bourne will talk for les INA"
an hour in its favor. This will he the h0'Nei
speech Of the Oregon Senator.
The progress made today was graufyf6 " ~
leaders and tonight they expressed conaence tra'
a vote on the amendment will be take, oeIore 'he
close of the week. The continued hot weather has
diminished the oratorical enthusiast Of several
Senator's who delight TO unravel klotty consttu-
tional problems.
Senator Bailey is urging his colleagues on the
Democratic side 10 vote against ne corporation
tax. o the ground that TO fr II might pre-
clude their voting for income tx II IS probable
that Mr.. Bailey viii succeed, in ming up all the
Democrats except Mr.. McEnery.
LEADERS VERIFY 'CLL-
A great many letters and telegaus. both for and
against the tax are being receivd by Senators and
Representatives The leaders ave verified their
poll of the Senate. and are holang 10 Their state
ment that ffty-two Republican votes for the
amendment be counted.
Although NIr Flint is in clarge of the amend
ment for the Finance ComDttee- a" cst of the in
terruptions in favor Of ths tax against the
arguments Of Senators C1mmins nd Borah were
initiated by Mr.. Sutherland Nj Root was in the
Senate throughout the sebate, hut did not engage
in any OF the numerous colloquies. MI Alorlch
left Washington this norning for rest Of few
days
Some excitement w4s stirred up late IN the after
noon when Mr. yorah yielded the hoer to Mr.
CIapp, who rno-ed adjournment Mr. Burrows
was the only member of the Finance Committee on
ne moi made
posed an objection the ground that Il was only
$50 O'Clock, whereas the Senate had agreed 10 re-
main IN session until O'Clock Mr.. Bailey became
excited thinking he saw in the Burrows objection
81 attempt TO make Mr Borah. who tired, hold
the floor against his will The Texas Senator
crossed TO the Republican side and declared
that the Republicans would not facilitate consid-
Grafton Of the amendment by forcing long sessions
A roll call on the Clapp motion was demanded, and
adjournment ordered. "a to Il
Not TO exceed dozen Senators were present
when the Senate met. and twenty-five minutes
We're spent in waiting for the necessary forty
seven to answer TO thei1 names Mr Gore offered
= resolution for division Of the tariff bill into
schedules in order to give President Taft an op-
portunity 10 disapprove of one without respect 10
the others. At the request Of Mr.. GalInger
the resolution went over until tomorrow. Mr.
Gore said he might ask that the resolution be
referred TO the Committee the judiciary for a
report on the constitutional riEnt Of the Senate
to divide the tariff bill he proposed. The Okla
the bill which he said did not fulfil the promise
made bv the Republican party last fall He said
the Republicans were making th- same sort OF a
mistake that the Democrats made when the Cor
rnan-WIlson bill was enacted. The Democratic
party deserved defeat for that act. and the Re
pubicans deserved defeat for their present course
SAYS ALDRICH NEEDS REST.
Resurninz his speech against the corporation
amendment Mr. CumHins said he had learned
from the newspapers that Mr.. Aldrich had left
Tn
that any man who made a statement like that
made yesterday by M Aldrich, that the corpora
lion tax was a means tc defeat The income tax
was entitled to rest. He needed recuperaton
and inspiration for about one thousand years
Tie Iowa Senator said he thought Mr.. Taft was
inconsistent in first saying that Il was possible to
pass constitutional income tax law. then switch
ing 20 the inheritance tax, and finally dropping
both in favor Of the corporation wax He chaTged
that the movement for economy IN the government
Departments was part Of 4 general scheme 10
dscredit I'll efforts 70 raise additional revenue ny
making il appear that II would not bN neened-
He held that nothing could explain away the
national deficit and the imperative need Of rais-
ing money BY special taxes
shortly AFTER O'Clock Nj. Cummns suggested TO
Nr Flint that recess be taken and the California
Senator moved recess Of half an hour The mo-
ton vas agreed 10 without Debate. Continuing
his speecb after the recess. Mr. CUmrnins pointed
nut various constitutional objections 10 the cor
poraton tax He insisted that IL was a tax on
property as well an income tax. and asserted
that was "a mere harTicade OF words TO that
1t is not subject 10 the same constitutional objec
uons as the income tax" He took up Mr. Flints
statement that the proposed legislation is tax on
the privilege Of doing business and asserted that IT
would be fIst competent for Congress TO say
that man should ne taxed for having white hair
blue eyes or doing business the north in
Of the south side Of the street But II it was
admitted that the bin was not tax the priv
uege OF doing business then It must be a tax on
the right to do business a corporation. Such a
tax was clearly beyond the constitutional power Of
Congress
SEES PRACTICAL OBJECTIONS TO PLAN
Tho Il wa Senator said that the legal objections
70 n were equalled only by the practical oh
3ectsns = II he wanted to know why the amend
me r- -npted bonds from taxation He said the
steam -ailroads had outstanding bonds the
IS s0Ho G00 90 and stock the amount Of
$500. N, % The bonds OF the various railroads.
pubC uUlitv and industrial corporations amounted
70 sli9gp 60 or one ninth Of all the wealth Of
the United States These bonds would be exempt
from taxation under the amendment. while the
stockholders. great and small would have con
tribute their pro share the expenses OF the
government The absolute unfarness and injustice
OF the proposed tax Was staggering to ordinary
uan. More than one half tho wealth Of the United
states IN active business represented by ind-
vlduals and co-partneTships and yet il was uro-
posed 10 let this wealth untaxed and place a
burden The shareholders of corporations
The Iowa Senator said ne agreed with Mr. Aldrich
that the would he repealed within .z,o ,,a.rs
In his opinion it would he repealed soon as mem
eers Of Congress could return Wasbipg-.,n f-ax,
their angry constituents
Declaring that S47s00Gse must he raised fo,,
customs duties and an inheritance. oornoration ~
Income tax properly to meet the eYnandi,,,ree f
the government and 10 keep up the sinking fund
Mr.. Cummins presented letter from, sec-atar,
MacVeagh OF the Treasury Department stating that