Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-07-02


therefore, fully expects to see him put
the corporation tax amendment thru
the senate and adhere to 1t in confer
ence.
Mr.. Aldrich's lack of enthusiasm for
the corporation, or any other form of
direct tax, is based on fear that such
taxes will inevitably injure, and posi-
bly, in the end, break down the high
protective system in this country. And
there is good ground for that fear, as
the case is looked at here.
Taft Finds Empty Golfers.
During the closing years of the
Roosevelt administration there was
gross extravaganza in public appro-
priations. The panic of 1907, which
further reduced the federal receipts,
came on while these appropriations
were at their height, and the result
was that Mr.. Roosevelt went out of
office and Mr.. Taft came into office
with a treasury that was practically
empty.
Then came the special session of
congress for tariff revision. The theory
of the senate finance committee in put
ting numerous duties higher than they
have been in the Dingley law, or the
house bill of this session, is that the
increases are necessary in order to
provide revenues sufficient for govern
| mental purposes.
| While this theory was being elabo-
rated in the finance committee rooms
the new president was giving an order
which resulted in strict economies in
the great departments, and in a radical
reduction of estimates of appropria-
tions by these departments for the ex-
penses of the coming fiscal years
Forthcoming dismissals from the class
flied service in this city Of clerks
young men and women, who are able
to work, but who have been proceed.
ing on the theory that the government
owed them a living, and that it was not
necessary for them to give day:
work for a days pay, are a feature O.
the presidents campaign in the inter.
est Of economy.
Why Aldrieh Got Busy.
Senator Aldrfch, after carefully fig
uring out the revenue the new tariff
bill will produce, and what sums will
be saved thru careful administration
announces that there will be ample
revenues from customs for all neces-
sary purposes after the new tariff Law
becomes operative. He has repeated
this announcement many times, the
last time on Monday of this week,
While he was thus getting ready tc
put his tariff bill thru the senate, {
company of central west senators
complaining because of the upward re.
vision tendencies of the senate bill, pu
their heads together with some demo.
amendment to the Aldrich bill, under
which it was figured that s5O,OO0,O0O o.
revenue a year could be collected ant
the customs duties CORRESPONDENCE
lowered. And a poll Of the senate
showed that there were enough vote!
to pass that amendment
Here is where Mr.. Aldrich got busy
He didn't want an income tax amend
ment, nor any other kind of an amend
ment levying a direct tax. He wanted
all the revenues of the government t,
come from customs and interna
revenues. He saw the president. Will,
the president was in favor of the prin
ciple of the income tax, he was fearful
that it would be bad policy to go t,
the supreme court with an income ia.
proposition substantially Identical witt
that which the court threw down il
the Pollock decision in 1894. In orde
to be absolutely sure about the matter
he was rather in favor Of subqnittin,
an income amendment to the fedora
constitution to the several states.
i. President Gave His o. X.
The president and Mr.. Aldrich wen
over the situation very carefully. The
saw 1t was necessary to do somethin
If the Bailey -Cummins income Ia
amendment was to be kept off the taril
bill. The outcome was the greemen
of the president and Mr.. Aldrich t
stand together for the submission t
the states Of an income tax. amendmen
to the constitution, and for the adop
ton of corporation tax amendmer
to the tariff bill, the latter being 50
to the Bailey Cummins forces.
Mr.. Aldrich never has claimed tina
ne favored the corporation: to-. s$ on r-!n
ciple, but that it was necessary in OF
der to kill the income tax propositio
Of the central west. But he will wor
for the corporation tax, and undoubt
eddy be able to put it thru the ser
ate, if the poll which he took coupl
of weeks ago is not broken thru dc
sertions
If Mr.. Aldrich is right and dire.
taxes will not be needed to supply ade
quate revenue for governmental pun
poses. the result will be that the me
} ment the new tariff law begins to wor
. normally, a surplus will begin to phi
up in the treasury.
Danger to Protection. '7s''
Should the new corporation tax prov
to be popular, as it may, because
: the claim that 1t will open up ne
sources Of revenue, mainly among Il
rich and the well-to-do. Mr.. Aldrie
sees how 1t may be that the counts
will insist on retaining It permanent
+ and eventually increasing it, or suppl,
D menting 1T with other taxes similar
j. general character, all designed to "soa
1.-The rich" Such a fiscal policy Won
fill the treasury to overlooking. al
the, question would at once arise Of n
: 5as.c!nss the revenues And at that poin
Mr.. Aldrich believes there is possib
, danger to the high protactiye system.