The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1909-06-25
OUR WASHINGTON LETTER
Washington, u. G., June 10Th, 1909


debate during the past week was the
special message of the President ad-
vocating the imposition of a tax Of 9
per cent on the net earnings of cor
porations and the passage of a joint
resolution submitting to the several
states the question of authorizing Con-
gress to impose tax on individual in
comes. The President argues that an
income tax was unconstitutional, it
would be far wiser to seek a constitu-
tional amendment than to reenact such
tax without it, with the chane that
that the Court would again decide.
against it. He expresses the convic
ton, however, that majority of the
people favor vesting Congress with the
authority to impose au income tax and
believe that such authority might be-
come highly important in case of an
emergency. With regard to the corpor-
ations he declares that inasmuch as
the state confers on individuals the
right to do business as a corporation,
tax on their net earnings would be
a tax on that privilege and not direct
tax on property, such as the Supreme
Court referred to when it pronounced
the income tax direct tax and there
fore unconstitutional. The President
says he believes the tax on the net earn
ings of the corporations will yield not
lesa that $25,O0O,0 30 year toward the
revenues of the government.
In the estimation of the Republican
leaders the Presidents message means
the defeat of the Bailey Cummins in
come tax amendment and the<enact-
ment of the tax on corporations. The
situation is decidedly interesting. II
opin ion of the organization Repuoli-
can s, such as Aldrch. Hale, ,Galliger
and others, the tax on CONGREGATIONS is
extremely radical and they would have
none of it if they could help themselves
but they find themselves face to face
with situation which they cannot con-
troll and they must either accept the
tax on the dividends of corporations
or have the income tax forced upon
them and of the two they prefer the
former, especially as by presenting the
Taft proposition themselves they can
save the appearance of defeat. They
purpose to bring in the corporation tax
amendment on Monday and offer it as
substitute for the income tax propo-
sition, and they are confident of it's
adoption. Speaker Cannon has express
ed himself as. heartily in favor of the
tax on corporations, although only a
short time ago he was opposed to such
tax, and it is predicted that there will
be no difficulty in getting it through
the House.
Democrats have held caucus at
which they determined to fight for the
income tax as long as possible and they
will do everything they can to secure
direct vote CO Ga tne Bailey Cummins
proposition. Failing in securing the
adoption of that they will, many of
them at least, vote for the corporation
tax, because it is part of what they
are striving for in the income tax and
secondly because it accomplishes just
what Mr.. Aldrich has been trying to
prevent 1t will teach the people to
lean on source of revenue other
than that derived from the protective
tariff. They also appreciate the force
of the Presidents argumef.esthet the
imposition of tax on the net earnings
of corporations will necessitate fed
eral inspection of the transactions of
corporations which he and they believe
will prove most beneficial. Some Demo
Gratis maintain that once the people
learn, the enormous profits made by
the protected interests, especially GER
tain of the trusts whose products are
protected by prohibitive tariff, they
will rise enmasse and insist that the tariff
be greatly lowered, SO that the corpor-
alton tax will serve an excellent pur-
pose.
The debate in the Senate is going on
steadily with continuous victories for
the organization which has from five
to ten majority in favor of all the high
rates of duty which it recommends.
The Democrats have striven valiantly
raInofinnc I'm fhayy n
bered at every turn and can do moth
ing toward securing decreased duties,
while some of their own number de-
sert on schedules which affect the pro-
ducts of their own states.
There is a good deal of gingss about
the present administration. Secretary
Nagel, of the Deparsment of Com
merce and Labor, is causing thorough
investigation is be made of his entire
department with a view to wedding out
the incompetents and the lazy employ
ees. He has announced that his de-
partment is no place for young men
who shirk their work and who watch
the clock for 430 to arrive and that
their place will be filled by men who
are interested in their work and do it
seriously and energetically. His at
tention was called to the fact that one
of the most notorious incompetents
was brother-in law to a member of
the appropriations committee of one
the houses of Congress. "Dismiss him
first" was the Secretary's reply. "He
will make an excellent illustration of
the fact that | mean business.
my three year old boy was badly
constipated, had high fever and was
in an awful condition. I gave him two