Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1909-07-01

show that Senators Plat, OF Connect
cut, and Spooner, Of Wisconsin, tw
great constitutional lawyers, contendet
that the then proposed tax on th
gross receipts of corporations was uncon
stitutional. Mr.. Borah said that Mr.
Lodge, of Massachusetts,, then opposes
the corporation tax and is now In fsvO
of it.
Senator Carter suggested that ther'
had been a similar change in the pOsi
ton of the minority.
"They favored an Income tax then al
now" said Mr. Bailey, of Texas.
Senator Crawford. expressed thu
opinion that the corporation tax might
be defended as a good thing on the
ground that 1t woutd take back from
corporations part OF the benefits they ge
from tariff rates.
"That is one of it's good features
responded Mr.. Bailey. "As this bill
gives the big protective interests {
license to exsct a tribute of two billion
from the people. should like to sst
the government recover $50, 600, 90"
that amount"
In answer to qHestinn by
Boot, Mr.. Bailey said he did
ton the constitntiOnsIity Of the
ton tax.
Mr.. BOrah said that the civil
come tax law was repealed b.
jOrity of Only ONE vote and in OF
to the desires of such party le
Messrs. Sherman, Morton and (
He quoted Morton "a having sai
wealth was in the hands of the
the taxes should come from
they had the money to pay.
Mr.. Borah sad that the sug
Was the most impndent crimina
industrial world OF this count
quoted President Taft a. saying
corporation tax was long step
government supervision of cOrpC
He quoted Mr.. Aldrich as saYi
the tax probably would not rema
for more than two years and Il
Aldrich could terminate it whe
ready. Then Mr.. Bmsh aekeG
there could be sufficient cor
supervision in two years to rem
the evils that exist. He sUgges - .~~
publicity and supervision provision
bearing on corporations be inserted in
the income tax amendment.
Mr.. Barah warned senators that they
could not go home to their constituents
and explain their failure to vote for an
income tax because Mr.. Aldrich had
plainly said that such law was mol to
go on the statue books. He said II
would be politically impossible to vote
for constitutional amendment authoriz
ing an income tax. Those senators who
favored referring the question to the
states, would, with one exception, &c
home and fight against Its adoption by
the legislature.
Senator Bourne, of Oregon, made q
lengthy speech in support of the corpo-
ration tax amendment.
Senator Bourne said that the corpora
ton tax idea was not new one with
President Taft because he had talked it
over with him as far as last fall pre-
ceding his election ss chief executive.
He gave his testimony to the effect that
the president had convinced Senator
Aldribh rather thad Mr.. Aldrich con-
Vincing the president on this subject.
He predicted that once the tax was on
the ststute books it would remain for all
time although it's account might ne re-
duced and would prove the beginning OF
legislation for the regulation and control
OF corporations.
Mr.. BOrah declared the facts ragsrd-
ing the great and shocking crime of the
sugar trust which branded many govern
ment employees "a criminal or incomn ne
tent lay ia the attorney generals office
for months and no action was taken Inn
ill private individuals uncovered the
crime and moved rhe public.
In support of the corporation tax
amendment, Senator Root gave the gen
esis of that proposition. Referring tn
President Taft's speech Of acceptance st
Cincinnati, in which he declared that
constitutional amendment for an income
tax WAS not necessary and that he favor
ed such a form of taxation when Il Q
government needed the revenues, Sens-
tor Root said that at the beginning OF
the present administration the president
had directed the attorney general to
make study of the income tax decisions
and TO draft law which would serve as
an equivalent of an income tax In con.
formity with the constitution and to the
decision of the Supreme Court.
Senator Root contrssted the two lava,
pointing out that nnder the proposed
law, drastic and unlimited power WA
given to collectors of internal revenue to
investigate the books and papers not
only of corporations but of individuals,
where as the proposed corporation tex
law changes that inquisitorial power and
vested 1t In the commissioner OF intern al
revenue who only when convinced that
fraud was being attempted, would in
ves,igate by means of special agent.
Senator Root surprised the Senate by
announcing that he wss in sympathy
With those who had argued that the de-
,ision OF The Supreme Court In the Pol
ock case declaring the income tax 1n-
was wrong. he said that
le believed that the weight Of the ar.