Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1909-07-02
Sixty-first Congress.
Washington, July 2.
aRNATR-

amendment to the tariff bill was re-
sumed in the Senate today. The sena.
tor was much improved in health snd
spirits az a result OF his two-dsy trip.
Where he spent the time continues to
be a mystery. Mr.. Smoot reported the
events OF the last two days and then
Mr. Aldrich had a conference with
Senator Bailey of Texas with view to
getting vote on the corporation and in-
come tax provisions "a soon as possible.
A cool breeze swept through the
chamber and the attendance of senators
was larger than usual. They all we're
eager, however, for an early vote on the
tax amendments and the bill itseli.
Senator Hepburn opened the debate
by calling attention to what be declared
was fatal defect 10 the corporation tax
amendment The language 10 which he
took ex reception sayS that special ex-
else tax shall be levied with respect to
the carrying on or doing business" by
corporation. Mr.. Heyb said that "~ith
respect to- was not legislative language
we're never used In statute, and made
the corporation tax open to exactly The
objection that caused the Supreme Court
10 kill the last income tax law.
Mr.. Brsndegee said the words we're
"vague and nebulous."
"Is that not the objecl2" asked Mr.
B)rah.
Mr.. Hepburn said be did not believe
that the committee would deliberately
use language that would make the bill
defective.
Mr.. Aldrich stated that the language
had been passed upon by large num-
Der of distinguished lawyers aud the
finance committee thought 1t to be bomb
proof.
Mr.. Hepburn answered that the Sem
ate must decide for itself, and not accept
outside opinions.
SENATOR Rlyner, expressed the opinion
that the corporation tax was an
absolutely constitutional measure. 1t
was not tax laid on net earnings, he
said, aud II that were so the law would
not stand a court test. 1t was not tax
Oh the right tOFdo business, be added,
but on the business privilege of cor
poration and the profits we're the meas
ure of the value OF that privilege. In an
aver to a question by Mr. Cnmmins, MIR.
Rsyuer said he believed The government
could levy q tax on the facility of an
individual for doing business. He de.
clared that real estate corporations
would be legally subject to the tax and
that the measure was not an attack on
the reserved powers of the State.
Mr.. McOumber ssked whether the
government could tax the privilege Of
farming and Mr.. Rqyner answered in
the affirmative.
After a technical legal discussion
Senator Elkins inquired OF Senator Root
whether be had any definite idea of the
amount OF revenues TO be produced from
the proposed two per cent tax and
whether enough could not be raised if
the rate WAS made one per cent.
Mr.. Boot replied that there was woe
ful lack Of information here at the CAPT.
tai 81 10 the corporations of the county
aud that is wss for that reason impossible
to answer the question. The estimate
OF 1926. 900, 600 made By the president
seemed reasonable bat it vas not more
than guess.
Senator Aldrich, enter ng the chamber
at this moment, Mr.. + kins addressed
the same question to him. He, too, said
that it was very difficult TO make an
accurate estimate but his own opinion
WAS that the tax would realizs at least
$50, 900, 900 and perhaps more. After
the deficit of this year and next had
been provided for Mr.. Aldrich expressed
the positive conviction that tariff bill
would take care of all other needs of the
government unless a new Ella of extrsvs-
gsnce was to be entered upon.
Senator BistOw, of Kansas, read
letters from two constituents, one in the
hardware and one in the dry goods bust
meas. These correspondents protested
against what they declared WAS an in-
Justice in making them pay tax on
their net earnings while their competi-
tors we're exempt Mr.. BristoW aunOun-
ced that he read these letters to explain
why he shonld vote against the corpora
ton tax believing 1t to be up Just and uu-
equal taxation. Mr.. Davis, replied thst
Mr.. Bristow's correspondence overlooked
the advantage that they possessed from
incorporation. He said that be would
prefer the income tax, but II he could
not get that would vote for the corpora.
ton tax.
Senator Cummibs made a vigorous
attack on the corporations tax amend
ment for the reason that it would apply
to mutual insurance, elevator, creamery
aud other companies maintained by
farmers in the west. he also protested
against taking the earnings of insurance
companies. The money paid by policy
holders, he said, was already more
heavily taxed than any other property
in the country.
THE JEFFERSON DAVIS CASE.
The question of the trial Of Mr.. JEFF
fersou Davis on the charge Of high
treason having recently been discussed
in some of the northern papers, Col.
John s. Mosby, to settle the controversy
and to maintain the position he had
taken in the matter that Mr.. Davis could
never have been Convicted, wrote to the
clerk Of the U. s.Supreme Court and
received the following reply:
OFFICE OF THE CLERK,
SUPREME COURT, UNITED STATES.
Washington. d. o., June 80, 1909.
John 8. MnsbY. En-, Washington,