New-York tribune., 1909-07-03
MR. 4LDRICH RETURNS.
ConStitatiOnaIity Of Corporation TAG
Discussed.
IBy The Associated Press ]

Washington July 2-Mr- Aldrich. chairman Of
the Finance Committee. in his seat when the
Senate met to-day and there full quorum
10 proceed with business from the time the Vice
Presidents gaveI fell. at 10 O'Clock. While Mr
Aldrich did not say where he had been in his two
days absence from the Senate. his complexion
was so much ruddier than usual that Il evi-
dent he had spa',t most OF his time in the open
air
Business began with the presentation OF peti-
tions relating to the corporation tax many Of
which came from the Northwest. From Spokane
Jos merchants appealed TO the Senate for support
Of the as proposed by the President. because,
they said, 1T safeguarded The private informa-
ton OF business institutions" The Inman- PoJlsen
Lumber Company. Of East Portland wanted the
''pernieious corporation tax killed. while ". B.
Aver. Of Portland. considered the tax 5 extremely
unfair. 'as il places the burden only the great
industrial life Of the country" There was also q
protest from the mutual insurance companies of
New Jersey. which insisted that such corporations
were not the proper subjects Of taxation.
Nr. Heyburn's objection was that the amendment
too indefinite make it operative. The first
provision Of the bill fixes tax Of per cent on
the net income OF corporations, with a respect TO
the carrying doing business by such corpora
tions." The Idaho Senator contended that under
this language il would be Impossible 10 determine
the object OF the bill enforce its provisions
- because Of its vagueness. He also said that the
being levied on all corporations organized for
profit included corporations that do business
except to collect rents which. he said would bring
it nearly within the scope of the Pollock case in
which the Income tax was declared to be invalid.
These objections provoked comment by Senators
Alorich. Root. Brandegee, Nelson and others Mr.
Aldrich suggested that the language called in
question had been passed on by many distinguished
lawyers Mr.. Nelson said that the case of a real
estate company within the exceptions the
rule cited by the Supreme Court. Senator Root
gave assurance that these objections would receive
careful consideration by the Finance Commigee.
although he believed the amendment framed
was such insure constitutionaIity.
Senators Carter. Borah. Cummns McCumber,
Sutherland, Eayner and others Joined in the
cussion of the consttuionality of the language OBJ
3ected tosSenators Root and Rayner declaring that
10 strike the words under discussion would
greatly weaken the measure.
Senator Cur.mins reviewed the speech made by
Mr.. Root yesterday in support Of the corporation
He secuted the idea that there any like
lihood that people would attempt conduct a
campaign for the purpose of forcing approval by
the Supreme Court of income tax law IL en-
acted. Referring 10 Mr.. Roots suggestion that an
income tax would bear most heavily on the East
M-. Cummins declared that there was no preju-
dice against wealth in his state but wealth was
be taxed at all. he said. IL should be taxed
wherever found.
Senator Newlands spoke In opposition TO the cor
poration tax, taking the position that Il would not
meet the requirements Of the Supreme Court