The citizen. [volume] (Berea, Ky.) 1899-1958, 1909-06-24
IN WASHINGTON
Corporation Tax Likely - Opposi-
ton to Aidrich Falling Away Paper
Trust Wins Sen. Bradley Sick.
Washington, d. c.
June 10, 1909.

June 10, 1909.
1t is still open to question whether
the victory of the corporation tax
over the income tax this week is
a triumph for Mr.. Taft or for Mr..
Aldrich. On the face of it the
President has succeeded in getting
the Senate organization to support
warmly a proposal which involves
strict Governmental supervision of
big business corporations. This is
what Roosevelt so ardently desired;
and it is said to be the greatest de-
sire of Mr.. Taft to secure the pass
age of legislation which will enable
the Government to control and regu-
late the gigantic Industrial combina-
tons which seem to be almost en-
tirely in charge of the commerce of
the country. OF course If Uncle Sam
is going to tax the corporations 2
cepts on the dollar of what they make
vestigate their affairs thoroughly, and
can tell whether they are acting
honestly or in defiance of the anti
trust and other laws. The reason
that President Taft had up to this
time shown so little attention to the
tariff making is that he considers it
mere minor matter which must be
gotten out of the way as quickly as
possible so as to leave clear field
for corporation legislation next win
ter. This week, however, he saw
chance to drive in an entering
wedge for corporation legislation by
using a tax on the net earnings of
corporations to draw the vote of the
Republican Senators who we're going
to help the Democrats in putting
through prematurely an income tax.
Senator Aldrich, leader of the regular
Republicans, was glad to find any
way to prevent the passage of the
income tax just now, even though he
does not like the thought of corpora
I ton regulation. Therefore when Mr.
Taft sent a message to Congress this
week urging the adoption of the
corporation tax, Aldrich accepted the
recommendation, and has been able
to secure a number of votes amply
sufficient to ensure its passage.
The only consideration which makes
the friends of the President uneasy
is the fact that after the income tax
has been disposed of the shifty Rhode
Islander may draw the fangs" of
the corporation tax by inserting in it
some provision which will prevent the
Government from really profiting by
/ it in so far as control of monopolies is
concerned. 1t seems probable that
the Administration party and the
Democrats and "sore-head" Republic
cans will be so anxious to circumyent
this that they will prolong the presen
session far into the summer, and pos
sibly precipitate at once the entire
fight for corporation legislations
The President stated in his mes
sage that he favored the insertion in
the tariff bill of a clause authorizing
, the amendment of the Constitution to
admit OF an income tax, since the in
come tax provided in the tariff law
of 1894 was declared unconstitutional
by the Supreme Court. This decision
of the Supreme Court has been
challenged by the best law
yers in America, and it has generally
been thought that if law were pass
ed again the Supreme Court would
change its opinion. In his speech of
acceptance this spring Taft said that
he did not think that constitutional
amendment would be needed. The
Democrats accuse him of being in
consistent in his present advocacy OF
the authorization of such an amend
ment. The law affixed to the Wilson
Bill expired by lapse of time in 1900,
while President Taft in his message
stated carelessly that it was still
upon the statute book. The Democrats
are seeking to take advantage Of this
slip also.
The Democrats, however, are grow
ing jealous among themselves, and
they will not be able to seriously
hinder the plans of Aldrich. Wheth-
er or not Bailey of Texas is traitor
ously in league with the Republican
leaders, he certainly could not be act
ing in a manner more calculated to
advance the interests of the Repub-
licans He has declared this week
that he did not consider himself
bound by the pledges of the Demo-
cratic platform of last fall; and Sc
veral of his colleagues have joined
him in this attitude.
The nominal fight of the week has
been on paper and wood pulp for pa
per making. There is paper trust in
America, although it tries to conceal
it's existence. II keeps the prices