The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-06-15
It Is Regarded as Very Proba-
BILE That a Change in the
Constitution Will Be Auth
orized
so THAT A LEVY MAY
BE MADE ON INCOMES
The Substitute Put Forth by
Senator AIdrich Kills the
Plan Fostered by the Pro-
greSSiveS.

Washington, June 15-At the con-
clusion of close and careful can
vass of the senate conducted by Scna-
tor Crane Of Massachusetts, one of SEN
ator Aldrich's chief lieutenants, the an
nouncement was made yesterday after
noon that there were enough votes on
hand to prevent the passage of the
Bailey Cummins tax amendment.
The margin is narrow. but it is
margin, nevertheless, and mournfully
the income tax senators admit 1t. In
place OF the income tax the senate will
enact tax on the net earnings OF cor
porations, and also adopt joint reso-
luton providing for an amendment to
the United States constitution specifl-
cally authorizing congress TO impose
tax on incomes.
Aldrieh Concession.
This Is the concession which Senator
Aldrich was compelled to make in Or
der to prevent the passage Of the in
come tax amendment.
The committee on judiciary will
draw up a measure providing for the
amendment to the constitution. A two
thirds vote is necessary to its passage
in each branch OF congress. while the
ratification by the legislatures of three
fore the amendment becomes effective.
The Coming Issue.
Thus, should both the senate and
the house vote to submit the PROPOSE
10 <a$4 ho rryin
become an issue in 45 state capitals,
and the popularity of the idea can cas-
lily be demonstrated.
The reason for submitting this to
the states is that an income tax, in
view Of the decision of the United
States supreme court Is years ago
may now be of doubtful constitutional
ity.
Should three fourths of the states
tax on individual incomes will be as
sured, for then the obstacle now in
the way of such legislation will have
been removed.
That such a compromise as the one
described would have to be made by
Senator Aldrich in order to prevent
the passage of the income tax amend
ment has been foreshadowed in these
dispatches. The income takers actual
ly had a majority in the senate, and
only by agreeing to a levy upon the
earnings Of great corporations and also
submitting to the people the question
of changing the constitution in the
manner indicated, was it possible to
win over enough OF the senators who
favored the Bailey Cummins PROPOSE
ton and get control of the situation.
OF course the tax will also be levied
upon the net earnings Of small corpor-
atoms The fact that President Taft
was in favor of the corporation tax
was largely responsible for the alieua-
ton Of enough senators from the ranks
OF the income takers to bring about
the present division.
Amendment Far or.
The leaders among the income tax
contingent are down in the mouth and
talkink lugubriously of the fate Of
their pet project They are apprehen-
sive lest it will be many years. II ever
before three quarters of the states vote
in favor of amending the constitution
Some Of them believe that a SUFFICIENT
number of ratif1cations will not come
within their lifetime. It is such men
as these who are suggesting the neces-
sity of recognizing both OF the great
political parties on new lines so as to
wrest the control and influences which
now dominate them.
Senators from the west who have
been talking in whispers about max
ing Theodore Roosevelt the leader Of
this new movement came out with
more holiness In proposing that the
ex-president become identified with
their propaganda. and on platform
OF reform permit himself to be NOM
mated again for president
The tax on corporations that has
been considered chiefly is 2 per cent.
although this may possibly be reduced
by the time the amendment Is present
ed to the senate for passage. While
such levy upon the dividends Of cor
porations OF a certain size was esti-
mated recently by the treasury de-
partment TO be sufficient to produce
revenues to the amount of $4,000 600
4 year, the tax on the net earnings OF
all corporations OF IN interstate char
acter would bring in between $4,000
COO and $50. 100000. according to the
calculations OF Senator Aldrich. II
this sum is necessary in addition to
the collections from customs and In
ternal revenues, to meet the expenses
Of the government, then the levy VIII
be fixed at 2 per cent. Mr.. Aidrich IS
now having computations made to this
ascertainment- While the levy may be
reduced the chances are that the per-
centage mentioned will be adopted
Bullets Of paper or tall0w produce
1ar greater DAMAGE than metal ones