The citizen. (Honesdale, Pa.) 1908-1914, 1909-06-11
ALDR|CH FAILS.
Senate PrOgreSsiveS Reject
Compromise Plan.
WON'T DROP INCOME TAX FIGHT
Tax on Corporations to Which
President Taft Gave His As
sent Not Accepted as a
Satisfactory Substitute.

Washington. June 10.-After a con-
ference at the White House between
President Taft and Senator Aldrich 1t
was stated that the senate finance
committee would consent to placing a
y per cent tax upon the net earnings
of corporations if the supporters of
the income tax amendments would ac-
cept it and withdraw their PROPOSE
ton.
This suggestion, 1t is declared, came
from President Taft and was designed
to prevent split in the Republican
party over the income tax feature.
Mr.. Aldrich communicated the plan
to Senators Cummins and Borah, who
are the leaders of the progressive Re-
publicans, who favored the Cummins
income tax amendment.
These senators consulted with their
colleagues, and as a result the plan
was repudiated by them. Mr.. Aldrich
consulted also with Republican lead
ers who are opposed to the income tax
idea. and he had no better success
with that faction than with the pro-
gressives.
BY an order of the senate the income
tax proposition will come up late to-
day for vote, but In view Of the un-
settled condition motion will be
made to postpone action, and practi-
cally all of the Republicans will sup
port the postponement. Senator Bailey
will protest vigorously against this de-
lay, and some general debate on the
income tax amendment will result.
1t is not expected that Senator Aid.
rich will move to refer the income tax
amendment to the judiciary commit
tee. but that he win leave it before the
senate so that further conference may
be had between the two factions of the
Republican members of the senate.
The canvass of the senate in relation
to the corporation tax r!an developed
also that there is decided opposition to
the inheritance tax feature which was
adopted by the house at the behest of
President Taft and was stricken out
Of the bill by the senate committee on
finance.
The income tax advocates are en-
oouraged by this showing. and it was
said today that if President Taft de-
SircS to gain their support he must
lend his influence to aid them in OBJ
tanning some agreement by which the
income tax feature shall be brought to
I vote.
In view of the short time that re-
mains before the date popularity fixed
in the public mind for adjournment of
the present session, some Of the in
come tax advocates are not inclined to
insist upon Il vote at the present ses-
sion il there can be coupled with the
motion to refer the proposition to the
judiciary committee Instructions that
the committee shall report to the sen
ate early in the next regular session
They will make an effort to incorpe
rate instructions of that character in
any motion that is made to refer the
H.nendments to committee.
| In the next few days a number OF
conferences will be held between the
( two Republican factions in the senate
between senate and house leaders and
between supporters and opponents OF
the income tax amendment and PreSi
dent Taft The position taken by the
! Democrats in the senate on the sub
! ject of the income tax has convinced
policy must be worked out of the con
glomeratiOn of ideas on the question.
So far GA' the pending tariff bill i.
concerned the Republican leaders feal
that any plan to tax the net earn
ings of corporations might be hailed al
a Democrat idea for the reason tha
Senator Daniel has pending an amend
ment to do that very thing. His
amendment was introduced soon aftel
the bill was reported from committee
During the day some doubt wal
expressed in informal discussion O.
the corporation tax proposition a,
to whether President Taft favored
tax on dividends or a tax on the ne
earnings of corporations over $780, ,OOO
Both plans were discussed.
Whichever idea is favored at tn,
White House it is said no suppor
could be found among the senator
who advocate the adoption of al
amendment providing for tax on in
comes.
Mr.. Culberson, the minority leader
in formal statement called attention
to the Democratic attitude in relation
to an income tax. He said:.
"At the beginning Of the discussion
of the tariff at this session the Demo
Gratis met twice in conference and tn
tariff generally as well as an incom
t"~ was fully discussed. There wa