Evening star., 1909-06-26
MAY CLOSE THIS EVENING
Discussion of the Tax Amendment to
Begin Next Week.
RESULT FoREGoNE CONCLUSION
Fault Found by Radicals and Con-
servatives-Plan of Ways and
Means Committee.

| work on the schedules, with subsequent
| shifting Of interest to questions of other
| forms of revenue raising. A few more
than a dozen items of the bill remained
! unacted upon, and, barring the delay of
speech by Senator Davis of Arkansas,
| there was prospect of closing these up
| by evening
Next week will mark the opening of
| the discussion of the corporation tax and
| income tax propositions. No one at this
time ventures to predict how long the de-
bate will continue. The action at the
close of whatever debate ensues is fore
gone conclusion-adoption of the corpora
tion-tax amendment in essentially its
present form ard agreement by two
thirds vote to joint resolution submit
ting to the states for their ratification
an amendment to the Constitution of the
United States authorizing Congress to i'm
! pose a tax on incomes.
| That fault will be found with the cor
poration tax goes without saying. Radi-
cal senators think it does not go far
enough nor reach the class of wealth
which, in their opinion, should pay trib-
ute. In the end they will accept it on
the principle of half a loaf being prefer
able to no bread. Conservative senator's
| while they may not air their views, will
entertain secret objection to it as being
the entering wedge of governmental Su-
pervision of private business, but will
take ii as the alternative of the ther-
wise practically certain imposition of an
income tax, the Supreme Courts objec-
tion to the contrary notwithstanding.
Efforts by Income Takers.
Unremitting efforts will be made
throughout the proceedings by the in
come takers to upset the Administrations
nla of
straight income tax amendment. AL
though anything is possible in the United
States Senate, there is thought to be
only the remotest chance for such an out
come
The good faith of the President and of
the administration leaders is unques-
toned thus far, and as long as it re-
mains unimpeached by tangible evidence
there is no basis for the suppcsition that
the men who have expressed acquies-
cence in the pending plan of procedure
will desert. Senator Aldrich assured
himself of the existence of a majority
for the plan before it was broached in
the Presidents message
The publicity feature of the corporation
tax amendment will attract much atten-
ton. In the case of large corporations it
does not call for greater publicity than
most of them now are required to give or
voluntarily subject themselves. Railroads
make returns under the interstate com
of the large corporations. among them
the United States Steel Company, pub
lish quarterly reports just as full as re-
quired by this amendment. The Standard
Oil Company and some other great trusts
do not make such shoWinss. and 1t is
thought the public will indorse the re-
qurement for them to turn on the light.
The publicity clause will probably, 1t
is thought, be most Objectionable to prl-
Vate partnerships which are incorporated.
T-ndar ba NJ amandnanf they
must make annual returns and after they
have. been assessed for their tax the re-
turns shall be filed in the office of the
commissioner of internal revenue and
shall constitute public records and shall
be open to the public as such" This
will apply to all incorporated partner
ships whose business yield a net income
of more than 5000 year
May Cause Sale of Stocks.
AS the amendment stands, bondholders
in corporations are not liable to the tax,
and il is not apparent that any provision
can be made which will render them liza
bic however desirous senators may be to
put them under the ban. One result of
this will be. it is thought. to disturb busi-
ness by the increasing conversion of in
vestment holdings of stocks into bonds.
with consequent appreciation OF the
prices OF bonds and deprecia tion of stocks.
The greatest and most conservatively
held fortunes in the country are now in
vested in bonds. while the public trails
along with stocks.
While the Senate is talking on the new
tax the finance committee will get ready
the administrative features Of the bill
and have them ready to bring in when
the other moOted questions are cut of the
way. There is a great deal of work to be
done in this connection but it is not
thought that much discussion will be en-
tailed For one reason, the administra-
tive features are SO involved that the
average man cannot understand them.
and senators will be compelled to put
their trust in the customs officials who
recommend them. They offer no field for
plantation lawyers"
Plans of House Leaders.
Next week the republican members of
the House ways and means committee
will take the schedules as passed by the
Senate and begin the work of going over
them. In this way it is expected that
much of the work of the conferees can be
cleaned up in advance, at least to the ex-
tent of the House committee making up
its mind which changes 1t will acquiesce
in and which shall be fought.
There will be stubborn contest between
the House and Senate over a number of
the schedules but it is we'll understood
that some of the advances made by the
Senate were for trading purposes" and
tne best judgment at the Capitol is that
the conference committee will not delay
unduly upon the general schedules.
Man and Wife Held for Dual Crime