The sun., 1909-06-18

cratic doctrine. This afternoon the
Democratic Senators held o conferences.
which IL another name TOR party oaucua.
and its effects On the income tax amend:
ment. which the Democratic put forward
as party measure at the beginning OF the
tariff struggle In the Senate. The CON.
ference, which lasted two hours, was held
behind closed doors and did not develop
any exciting features. Not more than q
They had begun to leave the conference
room half an hour after the meeting was
called to order.
In the course OF tho discussion the
fact was disclosed that several OF the
| Democratic Senators were doubtful about
the merits hts Of the proPosef tSaP haT6p
put forward the income tax amendment
as q party measure they should adhere
to IL as q matter OF party expediency 10
the extent OF insisting on direct vote
on 1t. II the corporation tax amendment
ls offered In the Senate as substitute
for the income tax amendment WHICH
Is already pending the adoption Of the
substitute will prevent direct vote on
the income tax amendment. II will be
rather embarrassing also to those Sena.
tors in favor Of an income tax who would
not care to 20 on record, however, as
voting against . corporation tax.
leagues in the Democratic caucus that ne
could and would take steps which would
insure q direct vote on the income tax
amendment. Even II the situation does
not admit OF 1t. when the question comes
up In the course OF consideration OF the
tariff bill In committee OF the whole there
would still be opportunity to oder the
income tax provision as an amendment
whom the tariff measure Is being debated
in the Senate proper, to which 1t will be
reported from the committee OF the
whole. In this understanding 1t was de-
cided by the caucus to leave the matter
In the hands Of Senator Bailey to work
out the parliamentary programme. me
net result OF the conference was to obtain
direct vote on the income tax amend
ment. and Senator Culberson, the chair,
man Of the conference. was authorized
to so announce.
The Republican insurgents were laying
great stress to-day on what they olaimed
to be a discrimina ton in the proposed
tax on corporations In favor OF Andrew
Carnegie. John D. Rockefeller and other
men OF great wealth. These men. they
asserted will find the corporation tax OF
little consequence as far as their incomes
are concerned for the reason, 1t was
said. that most Of their incomes was
have to pay Federal tax under the
contemplated legislation. Holders OF
stock in corporations. It was contended.
would find their incomes curtailed pro
portionately by the amount which the
corporations would be obliged to pay
to the Government as a tax. whereas
Carnegie. Rockefeller, ct al. would be
almost entirely immune from this cur
tailment because the tax would not be
levied on the bonds which they hold.
That the House will abandon the PRO-
vision in the Payne tariff bill for taxing
tax in lieu of it is being asserted con-
fidently by advocates Of the corporation
tax. 1t was told to-day that Speaker
Cannon has been in favor Of the corpora
ton tax from the first and had In fact
after consultatio with President Taft
proposed to the Ways and Means Com
mittee that it be incorporated In the
tariff bill. The committee. however, 1t
was said. had already practically com
pleted its preparation Of the tariff measure,
and decided that it would be unwise TO
incorporate a provision to place a tax on
the net incomes OF corporations.