The Cairo bulletin., 1909-06-16
TAX EARNINGS
OF CORPORATIONS
TAFT TO SEND MESSAGE TO CON.
GRESS URGING PASSAGE OF
AMENDMENT. /
BIG SENATORS APPROVE
tiru to States Constitutional
Amendment to Tax
Incomes.

Washington. June 5--President
Taft tomorrow viii send to congress
a message urgiug thr passage Of tie
amendment to the ;ar.Tf Eill imp0s-
ng tax Of two per cent upon the IL
distributed net earnings of corpor5-
liors, and the adoption Of resolu-
tion submitting to the several stat $
ian amendment to tie constitution
giving congress the power to Impose
Ia tax on incomes This understands
ing was racehed at a session OF he
cabinet today ard was approved by
the republican leaders of the senate
who conferred with the president dur
ing til afternoon and evening.
IN order thai hero shall be no
Question fla The two propositions 70
be recommended haye the support of
he administration. Attorney General
Niciersham. according to the present
plans, will draft both The amendment
and the resolution It - expected
that the corporation tax amendment
when introduced win be referred 10
the committee on finance and the res
olution submitting the question of
the constitution will so 10
the committee on Judiciary
Doubtless both t'iase committees
will report promptly so that all ques-
tions involved may be disposed AT on
Friday when the pending income tax
viii be taken up for consideration.
In view of tho emphatic stand taken
by President Taft against a direct
tax upon incomes IN the face OF tie
decision Of the supreme court Of the
United states on that subject. and his
preference for the proposed tax up
1n The uaruincs q, corporations, a
number Of progressive republicans
have sguifed heir intention of fol-
lowing his recommendation Az the
same time not all progressive Rnpua-
leans are satisfied with this admins
' atlye program and Il is probab'4
that some Of them will voice vigorous
protests
Nv ff'iil''f tA'l' 81 AAtlttrl = dlHR - =
expected to indulge in strong cril!-
cisms deuunciatoy of the tax on cor.
porations as substitute for the d-
rect tax on incomes Not only Is the
president favorable to the amendment
providing for tax upon the net earn.
ings Of corporations because OF the al.
dcd revenue IL would produce. ,hur
much more so on account OF the fact
that he believes II would brioe about
a helpful and healthy degree OF public
ity relative 10 the affairs Of the cor
porntions OF the country
This, ne. as wen as many others It
his advisors. believe viii b. a reform
which otherwise 1t viii be- impossible
for them to attain. This herent to
corporations. 10 is argued. would arise
from the fact that il would IN a way
stamp upon them the approval of the
national government and scntimel tai
ly if not legally supply the federal en-
dorsement which &c is believed would
not only increase their credit with dG-
mostic investors but the owners Il
foreign capital.
The president Is said 10 be cor
WINGED that if the suggested amend.
mcut is properly drawn II would give
the government officials access 10 tho
books of all corporations and thus pub
liJity would De assured Such legisll-
ton would mean the supervision which
80 Is contcnded will be helpful to the
corporations and satisfying tn the
general public II is believed that
this publicity would prevent what is
considered TO hc one of The evils Of
the day i'm that 10 would eliminate the
possibility of concealed equities anil,
in the language Of one ~ the presi-
dents advisers. do away with the
corporation melon cutting. and in