New-York tribune., 1909-07-02

than 4 general income tax Mr. Root then took up
the history of income tax legislation in Great Brit
ain. pointing out that after the enactment of the
law seven hundred articles had been placed on the
free list. He had confidence he said. that It
the wish Of the people of this country to continue
the protective system. but the adoption Of an in
come tax. which would yield from s15o6o9.ooo to
$780, 100000 annually in revenue would be A direct
challenge that system
Continuing, Mr.. Root asserted that the corpora
tion tax saved all of the income tax that was con-
stttUtional and could be enforced, and avoided IN
volving the Supreme Court in the brambles and
rnires of political controversy. Speaking of the
Bailey-Cu1nmins income amendment he said;
II assert that It unwise. unjust and unconstitu-
tional. The corporation tax is constitutional just
and wise. 1t is adapted to the purpose for which it
is designed and is free from the objections which
gather round the broader measure
MR. ROOT REVIEWS DECISIONS.
Mr.. Roo. then reviewed the decisions which he
said gave Congress the power 10 make cassihca-
tto of corporations created by the states and i'm
pose tax on their business. The natural laws OF
trade had put the greater part Of the nations
wealth into corporations. and it was proper and
Just that this wealth should bear its share or the
burdens incident to government
At some length Mr. Root pointed out the sdvsn
taEes of having in the office Of the Collector of In
terna Revenue record of the corporate affairs OF
the nation. This provision had been carefully
drawn prevent impertinent inquistion and black
mail. he asserted. It most desirable that the
rized information regarding all corporations, So ar
ranged 10 contain essentials. and renewed from
year year This information would be of the
greatest Importance when Congress came 10 make
tha next tariff bill. Now. Congress was voting 10
keep alive the business Of thousands of corpora
tions by a protective tariff. II proceeding by
euesswork and conjecture, with gsrbled statements
OF both sides Of the question
Mr. Root insisted that the proposed tax was no
interference with the rights Of the state He said
that corporations We're estopped from demanding
that there should be publicity Of their affairs
Those who availed themselves Of the right % have
their business conducted a corporation acquired
exceedingly valuable and peculiar rights. among
them being exemption from personal liability. In
return these valua BILE rights. not possessed ny
individuals partnerships. their obligations 10
the people greater than those which did not
avail themselves OF the incorporation laws.
Replying 10 Mr.. Bacon who wanted 10 know II
the President and his advisers I'm the preparation
Of the amendment had considered the possibility or
corporations converting their stock into bonds and
thus escaping the tax Mr.. Root said this had been
carefully examined. II had been found that the
bonded debt Of the corporations Of the country
did not vary much from their capital stock To
prevent abuses the provision was inserted limiting
the bonded debt Of corporation. exempt from
taxation. the amount Of that corporatons capital