The Washington times., 1909-05-18
lnSurgent Republicans and
Democratic Minority Get
Together at Conference.
AEDRICH is BEATEN
BY NEW MANEUVER
Cummins and Bailey Each Make
Important Concession at
the Conference.
By ]. C. wELLIvER.

The leaders OF the Democratic minor
ity and the Republican insurgents held
a conference at which a substitute in
come tax bill. agreeable to both sides.
was outlined. and will be presented with
the guarantee Of practically the solid
Democratic and insurgent support.
tt is not yet determined whose name
the measure shall bear. and both Dem
ocrats and Republicans insist that this
is not material The new measure will
in the main be based on the Bailey bill
In substance it will provide:
For the raising OF about $S5.Oe0,oO0 an
nual revenue from the income tax.
For the imposition Of the uniform tax
OF ? per cent on the excess above 5000
in all incomes.
For the imposition Of this tax on indi-
v.duals and corporations alike; the bur
den to fall upon net incomes only, and
only on the excess above 5000 per an
nun.
For the collection of the tax from cor
porations direct. with provision for re-
mitting to stockholders, in their indi-
vidual capacity, such share of their in
come tax as comes from corporations
mat have already paid the tax
Concessions To Democrats.
urgent in tbs demand that the principle
of graduated tax be preserved. this
being an important part in tine draft
of the Cummins bill Some Of the
Democratic Senators. however. have in
sisted that they would not vote at this
time for graduated tax, and in that
situation II became necessary, in order
TO get their support and increase the
chance of passing any bill, 10 make this
concession to them.
Accordingly I'm the compromise a ? per
cent uniform tax was agreed on II is
stated that Senator Cummins, who was
among those in the conference. agreed
TO this adjustment. on the ground that
IL was shown TO be the only plan which
would enable the advocates of the tax
TO hold their forces together and avoid
being defeated in detail
The Aldrich strategy has been 10 let
me income tax people vote first on the
turnmins substitute for the Bailey bill
and 70 defeat this by reason of the re-
iusai OF the Democrats TO support the
measure. The Democrats are ortDosed
10 the Cummins measure for two rea-
sons. Some object to the graduated
Tax; others to the provision that the
tax shall fall on individuals only and
not on corporations Senator Cunmins'
defense Of this is that the stockholders
oI corporations are individuals. and as
individuals must pay on all they get in
dividends from corporations To this
many OF the Democrats objected on the
ground that 1t would be hard to ex-
plain to the people. Therefore IL was
agreed 70 treat corporations and indi-
viduals alike
Aldrich 0utmanegvered.
Having defeated the Cummins bill, the
Aldrich maneuver was TO give vote
next on the Bailey plan. and It was
counted that The Cummins group of Re-
publicsns would in turn decline TO sup
port this. Thus. being divided, the ad-
vocates of the tax would be defeated
even though they should constitute
small majority Of the entire Senate.
We viii hold majority to the COM
promise bill, / am confident" said a
Republican who was among the Sen
ators in the conference. ''They tell OF
having two or three pried away from
US: but we have seen these very people
today, and they say they will go with
us on the vote. / believe we will pass
the measure. Personally. / have been
SsrOngly for the graduated tax: but the
big thing now is 10 put the principle
Into law and let the Supreme Court
pass on IL. with just as little change as
possible from the propositions on which
the court, In the Pollock case, rejected
the same law I think We win win"