The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1909-09-22
CHIEF EXECUTIVE RECEIVES EN-
THusiAsTlc WELCOME IN
BIG AUDITORIUM.
DELIVERS NOTABLE LESPtECH
President Changes Plans and. Instead
Of Discussing Conservation OF Nat
urai Resources, Talks About the Cor
poration Tax Measure of the Tariff
Bills Joined by Mr.. sallinser.

Denver, Sept 21-Making his way
stitl farther to the west President
Taft arrived in Denver this afternoon,
and tonight In the Denver auditorium,
where a year ago Mr.. Bryan was
nominated as his opponent in the
presidential race. faced a crowd of
thousands that in its noisy welcome
and continuing enthusiasm recalled
some of the scenes OF convention
week.
President Taft, switching from his
purpose to discuss the question of
the conservation of natural resources
in his Denver speech. elected tonight
to take up the corporation tax passed
as a part OF the Payne tariff bill and
to defend IL as against the PROPOSE
ton to impose a direct income tax,
which he acknowledged seemed likely
to pass the senate when the corpora
ton tax was devised as compro-
mise. The president strongly urged
that all the states should adopt the
proposed amendment to tho constitu-
ton. however. to make an income tax
possible in time OF need.
Mr.. Taft was joined here today by
the secretary OF the interior. Mr.. Bal
linger who viii accompany him on a
part Of the trip through the far north
west. II Is likely that the president
desired further conference with Mr..
Ballinger, whose conduct OF the in
terror department he recently upheld
i'm a long letter called out by the Bal
hnger-Pinchot controversy. before
making n final exposition of tine aims
and objects of this administration as
to the conservation of the resources.
Mr.. Taft probably will not take up
the subject now until he reaches Salt
Lake City. where he spends Friday
and Saturday. or he may wait until he
arrives at Spokane. where at the Irri-
CATION congress the Ballinger- Pinchot
controversy really had It's first public
airing.
The Best Form.
The president tonight declared that
the corporation tax was in itself the
best form of income tax that could be
devised, and pointed out that IL con-
tained many of the best features of
the income tax law of England. In
urging that the states vote for the
amendment to the constitution permit
ting the levy of direct income tax.
without apportioning proceeds among
the states. according to their popuia-
ton, the president declared that it
would be possible so to amend the
corporation tax as to include within
its scope every desired feature of an
income tax except the levy upon in
comes derived from actual salary and
professional services.
The president said he opposed a di-
rect income tax except i'm cases of
emergency. and he believed II To be
prime fault in the federal constitu-
tion that no provision is made for a
direct levy to meet wartime or other
extraordinary expenses.
Court Responsible.
Mr.. Taft declared that II was the
supreme court declaring unconstitu-
tiolal the income-tax law passed by
democratic congress some years ago
that prevented the leaders in congress
during the session recently closed
from including in tho corporation-ta
measure provision for law upon
D
would result in the reduction of the
rate of interest. and hence this re-
suited in direct tax upon the indi-
vidual holders of the bonds and came
in conflict with the decision OF the
court that no direct tax could be lev
led by, the national government with
out the resulting apportlonment Of
the proceeds among the states.
The president based his argument in
favor of the corporation tax, as COM
pared to the direct income tax. almost
entirely upon the results of the in
come tax in England. He pointed out
that the tax there is not a direct levy,
such as was recently defeated in tho
senate only through a compromise,
but that IL laid the tax upon the in
come before il came into the hands
of the Individual The English tax
is levied first on the declared diyi-
dends of corporations. secondly. On
rents before leaving the hands of the
tenants: and, third, upon the indlvia-
ual directly. II was found in Eng
land that q direct income tax at 10
per cent did not produce as much
revenue as the present method Of tax
alton at per cent. This, he declared.
Illustrated the premium that the di-
rect tax places upon perjury and con-
cealment.
The Question.
II is a question, the president de-
ciared. whether incomes earned in SAL
aries and from professional work
should be taxed as heavily as incomes
derived from investments or not taxed
at all. The latter. he said. was the