Omaha daily bee., 1909-06-22
Impost On Corporation Incomes
Certain Solution.
BAILEY IDEA MEANS A LAW SUIT
Courts Decision Referred to in Let
ter By Senator.
HOPE FOR DEFINITE AUTHORITY
states VIII Very Likely Endorse the
Proposed Amendment 10 the Con-
stitution and Doubt viii
He Ended.
CFrom a staff Correspondent)

WASHINGTON, D. c., June H.-(Special
Telegram )-Senator Brown today made
public letter written to Hon. w. H. Pit
ger Of Nebraska City, regarding the in
come tax situation, which clearly and sue
cinctly defines the position Of the senator
and status Of those senators favorable to
President Tafts recommendation for tax
on earnings of corporations. In his letter
to Mr. Pitzer Senator Brown says:
Il am depending upon men of your sense
to understand my position with respect to
the income tax. No candid man acquainted
with conditions in the senate will con-
tend that there is any hope to pass gen
eral income tax provision In the face OF
the decision of the supreme court in the
Pollock case which held such a law to
be unconstitutional. By special message
the president proposes tax on the IN
comes of corporations which the supreme
court sustained in the preckels case.
For many weeks, I have had joint
resolution pending in the senate, proposing
an amendment to the constitution which
will give congress express and undoubted
power to pass a general income tax law
covering the incomes of both corporations
firmly convinced It is our duty to pass
the corporation income tax law, such a
measure having been sustained by the
courts rather than to pass an Individual
income tax law, such a law having been
condemned by the courts.
Compares His Plan and Bailey's.
THE Joint resolution will be adopted by
the senate and congress, l think, referred
to the several states for ratification.
When so referred, 1t will become pohti-
cal issue in every state. each political
party Fastening to be the first to support
the proposition, and thereby making It's
adoption, to my mind, as certain as the
coming of day.
For these and other reasons, l am in
favor of the presidents policy, and I be-
| lieve II will receive, as it deserves to re-
ceive, the support of all reasonable men.
THE Bailey income tax law means a
lawsuit, not an income tax The presi-
dents plan. if adopted, means an income
tax from corporations, but not from in
dividuals. We will get the general Income
tax law, which l favor, as soon as the
states ratify my resolution. The presi-
dents policy also includes real publicity
| Of corporate affairs, and will put the gov
| ernment and stockholders as well in fun
possession OF all facts. This can be made
the basis Of corporate control, which will
mean much for the welfare Of the people
interested and the great American public
! Publicity will also tend to stop culpable
| manipulation of stocks and bonds. A pur-
| chaser of stock will then know what he
pays his money for and will get it. From
my standpoint the Taft policy on this
proposition commends itself very strongly
/ to me- and l believe it will to you and
others in the state who really want an
income tax law placed on the statute
/ books"
War Department Wants Land.
That the War department has use fol
the Fort Niobrara military reservation
was the advice given Senator Brown wher
he applied in the interest of the Univer-
sity of Nebraska for that reservation. II
is the desire of the university to estab-
lish a model farm in that part of the
state, one similar TO that at North Platte
which has been of great value to people
4 of the western part of the state. Believ-
ing that the government had no further
use for the reservation. the regents asked
Senator Brown to ascertain whether il
could be secured for this purpose for the
university. but the secretary of war de-
clared the government had other plans for
this reservation.
f. II. Abbott, editor of the Aurora Re-
publican, is the second Nebraskan to land
under the new administration. Mr. Abbott
was rendered the position of assistant COM
missioner OF Indian affairs on Saturday
by the secretary of the interior and has
accepted. 1t is expected his nomination
will be made tomorrow.
Cora e. Smell, postmaster at Memphis
Saunders county, Neb., has resigned. There
are two candidates for the place and more
are expected. The office pays $500 per
year.