The Washington herald., 1909-06-23

With the object OF reaching a hnal
agreement on the terms Of the amend
ment TO be proposed TO the pending tar
if bill for placing a per cent tax on
the net incomes Of corporations, Presi-
dent Taft had a conference last night
with the Republican members Of the Sen
ate Finance Committee, and others whose
advice and assistance he regarded as
10 the success OF the PROPOSE
ton
Those who participated in the con-
ference came early and stayed late. The
discussion OF the points involved was be-
gan at dinner, and was continued over
the coffee and cigars.
In addition 10 the President. those
present at the dinner-conference were At
torney General Wickersham and Senator
Root. 10 whom was entrusted the import
ant task Of framing the terms OF the pro-
posed amendment; Speaker Cannon, Rep
resentative Payne. chairman OF the House
Committee on Ways and Means; Repre-
sentative Dwight, OF New York. the Re
publican whip Of the House. and the fol-
lowing members OF the Senate Committee
on Finance: Senator's Aldrich. Burrows.
Penrose. Hale. Cunom. Lodge. MoCumber.
SmOot. and Flint
Regard Tax as Necessity.
Prior 10 the conference, there was a
general agreement among those con-
cerned that the insertion OF the corpo-
ration tax amendment In the tarin bin
was necessary TO prevent the adoption OF
the so-caned Bailey-Cummins amend
ment. which provided not only for a tax
on the incomes Of corporations. but for
a tax on individual incomes
The Bailey-Cummins amendment had
the support Of al or nearly au the
Democratic Senators. and in addition. the
backing Of a large proportion Of the Re
publican fnsurgent Senator's and some
other Republican Senators who I'D TO
this time have voted consistently with
the Finance Committee in the delibera-
tions over the tariff.
A majority of the Republican insur-
gents, and practically all the other Re
publican Senators who had shown an in
clination to support the Bailey -Cumnins
amendment. have been willing. however.
10 throw their votes for a substitute that
would be less drastic in its provisions.
II has been apparent that the PROPOSE
ton 20 impose an income tax has had
q remarkably strong following IN the
Senate for the reason that nearly a score
OF Republican Senators were unwilling,
for fear OF offending their constituencies,
20 vote against the income tax proposition
/ IL It were presented to them fairly and
squarely. But a majority OF these Sen
ators have shown a decided inclination
to accept some plan Of compromise II
| # were OF such a character that they
might be able TO explain to the people
Of their States that they had good and
sufficient reasons for supporting IL
WOuIdn't Oppose Own Party.
In the first place, Senators IN this posi-
tion were unwilling 10 join a combina.
ton whose primary object was 70 carry
out a Democratic platform pledge. and tc
that extent go contrary 10 the policy OF
| the Republican organization IN the Sen
ate.
Furthermore. they regarded the Bailey.
! Cummins amendment as extremely dras-
tic. both with reference TO the tax or
/ individual incomes and the tax on cor
pOration incomes. and found particularly
obnoxious the radical provisions which
gave 20 the government unprecedented in
| quisitorial powers.
Realizing this condition Of affairs. tht
President and the leaders Of the regular
Republican organization Of the Senat'
beset themselves to provide ways anC
! means by which legislation would b,
enacted that would be satisfactory I,
nearly all the Republican Senators. anC
at the same time enable the most radl
| cal among them to prove TO the salts
| faction Of their constituencies that tn,
course which they adopted had not mark
ed a retrograde movement in the lint
Of present-day political doctrine.
The President and the Republican lead
ers Of the Senate have been unwilling {,
advocate the imposition Of a tax on in
dividual incomes for the reason, anon,
others, that, without regard TO what at
titude the United States Supreme Cour
might assume toward the re-enactmen
OF the income tax law, such re-enact
I
I reflection on the Supreme Court, in viey
Of its decision that the income tax iay
Of 1894 was unconstitutional
Would Uphold Attacks.
Leaving aside the fact that most Of tn
Presidents advisers were opposed TO a.
income tax statute per Sc. they believe
that its enactment at this time. followin
the suggestive attacks made last year o.
the integrity Of the Federal judiciary
would have a tendency to uphold an
further these attacks
|. To that extent the Republican party. q
represented by the officers Of the presen
Federal administration and it's leadin
representatives on the floor Of the Sen
ate and in the House, was unwilling TO gs
Some OF these representatives and lead
ers assumed the position. like Presider
J Taft. that, while they were not certai
In their own minds that the Suprem
Court would again declare an income ia
law to be null and void, prudence, prc
lpriety. and a decent regard for the dis
nifty and integrity Of the judiciary de
manded that provision should first /
made for amending the Constitution so 9
TO enable the Congress 10 put an incom
tax statute into effect.
y But It was realized by tht leading RI