The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1909-06-24
WASHINGTON
From our Regular Correspondent.


Washington, D. c., June al, 1909.
Interest in the rates of duty i'm
posed by the Payne-Aldrich tariff
bill has given place, during the
past week, to consideration of the
special form of taxation which is
to be imposed by the bill, in addi-
ton to the customs, to raise rev.
enue. Indications at this time all
point to the defeat of lhe income
tax proposition advocated by Sena-
tors Bailey and Cummins and fol-
lowing composed OF practically all
the Democrats and a considerable
number of Republicans. This has
been accomplished through the in
fuence of the President. Mr.. Taft,
when informed by the Senate lead
ers OF their inability to array ma
1ority of the Senate against the in
come tax, determined that the
psychological moment had arrived
for the accomplishment of a reform
first proposed by President Roose-
welt and heartily espoused by Mr..
Taft when he was a member of the
Roosevelt cabinet This is the in
spection by the federal authorities
of the books and transactions of cor
porations, with a view to eliminat-
ing those corporate abuses which
have been the bane Of the manage
ment of the great corporations in
this country and the exposure of
which has so shaken public conf
dence in their securities. Mr.. Taft
conceived the idea that by impos-
ing tax on the net earnings of
corporations the government could
compel them to submit their books
to the inspection of federal officials;
that such corporations, owing, as
they do, their being to the state,
could thus be required to contrib
ute their shars to the expenses of
the state; that the deficit in the
federal revenues could be wiped
out; and that the nation could be
relieved from almost sole depend
ence on the customs duties as
source of revenue.
***
The President did not undertake
20 force his ideas on Congress until
tbe Senate leaders appealed to him
'or assistance to head off the income
tax, but when they asked his help
ne gave it in such form that they
now find themselves cor PEELED to
provide system of excise which to
The majority of them is only in de-
gree less repugnant than the income
TAX. This situation constitutes a
material victory for the President
and serious blow to that autocracy
which Senator Aldrich and a few
.hosen colleagues have long exer-
Used in the Senate. In the estina-
ZION of all thoughtful observers the
enouement of the situation in the
senate augurs we'll for the future
# all those progressive policies for
which Judge Taft stands and to
which III the natural order of things
he extremely conservative element
n the Senate must have proven an
nsurmountable obstacle.
N4*
Of course the defeat of the in
ONE tax proposition is serious
disappointment to its Democratic
advocates. Nevertheless even they
,btain some measure of victory in
he triumph of President Taft, for
thas been agreed that both houses of
congress will pass, by the necessary
wo-thirds vote, joint resolution
,roviding for an amendment to the
onstitution specifically authorizing
congress to impose tax on in
ONES. That such an amendment
necessary is doubted by some of
he ablest lawyers in the Senate,
including Mr.. Bailey of Texas.
IN the other hand President Taft
nd other jurists of a standing
yhich entities their opinions to re-
pect believe that it would be de-
idedly unsafe for the federal gov
rnment to enact an income tax
md depend upon it for revenues
,ecause of the possibility that the