Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-07-16

WdSllHS loII, July Id lldl Tie res
| ident Taft stands right where he has
stood right along and will insist upon
the adoption of the corporation tax
amendment, is the substance of a re-
port made to the tariff conference to-
day by Senator Aldrich and Represen-
tative Payne. The leaders of the Sen
ate and House were at the White
House late last night. having been
summoned by the President to explain
persistent rumor that the corpora
ton tax proposition was in danger of
being dropped in conference.
Discouraging reports about the recep-
ton planned for the proposition when
it should be returned to the cOnferees
determined the President to get at the
bottom Of the situation and to learn if
he could. whether the sentiment against
the amendment reducing the tax from
2 per cent. to / per cent. was strong
enough to encompass its defeat.
In calling for explanations from Sem
ator Aldrich and Rep. Payne, the Pres
ident went to the very fountain heads
of information concerning matters
happening or likely to happen behind
the closed doors leading to the confer
ence chamber.
1t is known that neither Mr.. Aldrich
nor Mr.. Payne wants the corporation
tax amendment. although both are
pledged to the President to support it..
This pledge was given at a conference
at the White House nearly month
ago when the amendment first was
submitted to the Republican members
of the finance committee. They had
seen a preliminary draft but the fin
ished product then had just been turned
out by Attorney General Wickersham,
Secretary of state Knox and Senator
Root. The President had at the White
House that night the three distinguish
ed authors of the corporation tax
amendment, all of the Republican
members of the finance commission
Speaker Cannon, Representatives
Payne and Dwight of New York, the
Republican whip" of the House. The
President indicated that he wanted the
net earnings of corporations taxed and
all of those present. it is asserted
agreed to assist him in procuring the
enactment of such measure.
1t developed during the discussion
of the proposition on the floor that
some members of the finance commit
tee, including Mr.. Aldrich, had been
charged with taking up the corpora
ton tax as a weapon to be used in
fighting the income tax amendment.
The weapon, if such it was, was eff
fective. but it now appears that the
supporters of the Presidents plan
committed themselves so thoroughly
that they cannot now find way to
withdraw their support of the amend
ment
According to the semi official dis
closures of what has transpired in the
conference room. the foregoing repre-
Sents the situation in which the con-
ferees find themselves. Mr. Aldrich
and Mr.. Payne. according to informal
ton believed to be authentic told their
conferees today that the corporation
tax amendment must be Incorporated
in the tariff bill.
1t was intimated that if the PROPOSE
ton is abandoned now by the con-
ferees a breach in the relations be-
tween the White House and Capitol
Hill might be the result. Members of
Congress in positions qualifying them
to speak on the subject declared today
that Mr.. Aldrich and Mr.. Payne would
see that the corporation tax feature.
commonly called the Presidents plan
of raising revenue to wipe out the
treasury deficit, is accepted.