New-York tribune., 1909-03-21
5IDRTCH ATTACKS PAYNE
BILL PROFESSIONS.
.Says Senate Would Not Pass In
herftance Tar-PreSident Wants
Income Tar Considered.
From The Tribune Rureau.l

20 say anything regarding its purport. except
that it had had TO do with the tariff and espe-
cjally with the Payne bill.
II is learned. however, that Mr. Aldrich ad-
vised the President that the inheritance tax pro-
vision Of the Payne bill would pass the Sen
ate that the maximum and minimum provision
was not only badly drawn. but that it must be
reversed so to speak and that revenue must be
provided by altering some other rates in the bill
The President expressed great interest in the
opinions submitted by Mr. Aldrich, but urged
the Senate leader to give the most careful con-
sideraIion TO the advisability Of Incorporating
al income tax in the bill. Mr. Taft said he had
been giving much thought to the subject of an
income tax. and that il had many things TO
recommend it. He had even gone so far he
said. 10 obtain the opinions OF some excep-
tonally able New York lawyers on the con-
stit1tionality Of such a tax. and had been ad-
vfsed that II would not be difficult to avoid the
constitutional pitfalls which invaldated the in
come tax provision in the Wilson bill
Secretary MacVeagh seemed TO share the
views Of the President on this subject, but Sec
retary Knox did not commit himself and Sen
ator Aldrich !ntirnated that he was not wholly
convinced Of its advisability. When asked how
he purposed 20 raise sufficient revenue without
either an Inheritance or an income tax Mr.. AID
rich said that If he could answer that question
his share Of the work Of tariff revision would be
largely completed
Mr.. Aldrich insisted that there would be in
tense. and he believed insuperable, opposition TO
the Inheritance tax in the Senate; that the opin-
ion very generally entertained that it was
proper source OF revenue for the states but that
the federal government ought not to resort to it
except in times Of extreme need. He predicted
that many Senators who are not already op-
posed 10 it would hear from their states in op-
position before the subject came up the floor
Of the Senate.
Mr. ALDRICH'S OBJECTIONS
Mr. AIdrich said that the maximum and mini
mum provision in the Payne bill was based on
wrong principle; that it implied retributive in
stead Of conciIiatory action; that II was so
loosely drawn that already there was dispute as
70 whether OF not II would apply to special trade
relations between nations and their colonial
possessions that il would certainly interfere with
trade arrangements which he understood TO exist
between certain OF the states republics or
South and Central America. and that, finally, he
Believed it was based the wrong principle
Mr. AIdrich maintained that the President
should be authorized 10 grant special concessions
where such concessions were granted to the
United States and not merely authorized to
impose penalty where nations failed to give
the United States terms equal TO those granted
10 any other nation. regardless Of propinquty
or other special reasons. He said he had long
been an advocate Of q maximum and minimum
tariff, but that the House leaders had sought to
combine this system with a sort Of stand
psttisrl" and the result was far from practi-
cable or desirable Secretary Knox expressed
great interest in the representations Of Mr
Aldrich on this point, and sid It was a matter
which should receive the most careful consider
alton. He promised to look into the subject
ard advise the President TO the results Of
his investigations
The President asked Mr.. Aldrich what he
thought Of imposing duty on coffee, and the
Senator replied that he could see no prospect
Of such q duty yielding any material revenue
for a considerable time, even If it were wise
TO impose II. He said there was a large sur
plas stock Of coffee at the present tinle' he
had been informed re said. that there were
four million bags Of coffee In this country.
snd he thought the only immediate result OF
imposing a tariff on coffee would be TO aug
mem the profits Of those who held this stock
Senator Aldrich also said that the Payne pro-
Tisian for taxing tea impracticable and
would have TO be materially altered He prom
ised 20 keep the President and the Secretary Of
the Treasury advised regarding the deliberations
Of the Finance Committee the tariff bill. and
the conference broke up without any definite
conclusions having been reached.
At the close of the conference the opinion was
expressed that il would not be necessary TO is
sue bonds to meet current expenditures before
next fall If at all The revenues Of the Treas
ury are increasing and the outlook is more
hopeful than some time ago, Il is stated Issues
Of Panama bonds are expected before long to
renav advances from the Treasury funds for the
construction Of the canal, and with the proceeds
Of the sale Of these bonds and the regular in
come from other sources. the Treasury may be
able TO avoid selling bonds Treasury certifi-
Gates for revenue purposes for many months
esCTH AMERICAN COMPLICATIONS.
There will be thorough investigation by the
Secretary Of State. acting in cooperation with
the Bureau Of South American Republics. Of the
cieir- that the maximum and minimum provision
If the Payne bin would conflict with certain
trade arrangements among South and Central
American republics. This is a complicated sub
r5ect because Of the custom of permitting certain
states in some countries. as for instance in
colombia, 10 impose duties. and it viii require
some study ascertain the facts In the case
Of Peru, however. it is known that a special
trade arrangement exists with Bolivia, whereby
there is mutual free trade in fresh fruits, fresh
fish milk, eggs. maize. barley. mutton, wool
hides. cocoa. chocolate and other commodities.
j is also known that on December I6 1907. the
duty cattle imported into Chill from the
Argentine Republic was suspended for a period
Of two years. Those who have some familiarity
With these subjects declare that careful in
vestigation viii reveal a considerable number
of like special agreements. which, because Of
their imEnaterial influence the trade of the
United States, have received little attention
from the government in Washington.
Whether or not Brazil can be held to impose
export duty coffee is still a moot ques-
tiOn he raa son that fhe national govern