The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-06-16

There is. of course. the statement
among the progressives in the Senate
TO-DAY that the President has sided with
the Alcrich organization against them
In recommending the corporation tax
and postponing action on the income
measure This, however, Is Offset bv
the statement repeated today that. IN
taking this course. Mr. Taft has re-
ceived promises from the Senate organ
ization of great reductions in the tariff
schedules when the bill goes into con-
ference.
II this turns out to be true-ana there
seems to be no doubt of the authentfeitSr
OF the claim-Mr. Taft has won great
victory for himself and for ali those uho
want the tariff bill in its final form to
embody the principle of genuine down
ward revision.
Another great advantage which will
accrue TO the Government If the coz
poration tax measure goes through. is
JndI II viii give the Administration its
hrst toothold in its fight for better con-
tTol or interstate corporations by the
Government. This is because of The
tact that ability TO scrutinize the earn
ings and other operations of the cornor-
atlons, so as TO tax their net earnings.
VIII give the Government the oppor-
tunity to detect without trouble any
irregularities that may exist in the con
Guct of these combinations Particu-
iarIy, II viii put the Department of JUS
tice IN position to be able to prevent
iniquitous capitalization measures.
VIII Muster Votes.
No doubt is entertained that the SEN
ate will pass the legislation recommend
ed by the President. Senator AldrEch
has assured the President that the votes
can be mustered for ft. and there are
men among the income tax supporters
who have been brought TO see the rea-
ableness of the proposition to raise
immediate revenue by the corporation
tax and to save the income tax until
its stability viii be assured By amend-
ing the Constitution
In this connection, il is of great in
terest to note that the discussions in tha.
Cabinet and that the the Presidents
other Investigations OF the subject have
led Mr.. Taft TO the belief that an
amendment 10 the Constitution is neces-
sary In order TO make an income tax
possible. In his speech accepting the
nomination in Cincinnati he expressed
his belief that an amendment OF the
Constitution was not necessary for tbe
successful levy Of such a tax Now
however, he has become convinced that
the amendment is the proper method.
Slap at Supreme Court.
For this. two reason are given by
those familiar with the situation. one
is that the re-enactment of such a tax
would be virtually a slap at the Supreme
Court, which has declared II uneonsti-
tutionaL The other is that the amend
ment of the Constitution would be A
sure thing. while the mere passage OF. a
bill without the amendment would prob
ably meet with disaster and result in
the raising of no revenue.
il is OF even greater significance that
friends of Mr.. Taft believe that he has
at last solved the problem OF how TO
get a satisfactory tarin bill. It is widely
asserted that there Is at least an under
standing between the White House and
the Senate organization whereby the
tariff win be trimmed into such shape
as the President viii be willing TO
sign it.
Revision Downward.
As a matter OF fact and the rules, the
rates on which the House and Senate
have agreed cannot be changed, but
those on which there have been dis
agreements will be put down and put
down hard, according to the reports cur
rent today.
1t is pointed ont that the Pre4idsnt,
ia relieving the Senate organization Of
a certain amount of Embarrassment
over the income tax. has put himself
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