The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-09-22
DENVER WELCOMES
PRESIDENT TAFT
Executive of Nation Delivers
Speech in Auditorium Where
Bryan Was Nominated
Urges States to Adopt the Cor
poration Tax Amendment to
the Federal Constitution

! DENVER, Sept. 21-Making his way
still farther to the west President Taft
arrived in Denver this afternoon. and
tonight in the Denver Auditorium,
where a year ago Bryan was nomi-
mated as his opponent in the presiden-
tial race, faced a crowd of thousands
that in it's noisy welcome and con-
tinuing enthusiasm recalled some of
the scenes of convention week.
President Taft, switching from his
purpose to discuss the question OF the
conservation of natural resources in
his Denver speech, elected tonight to
take up the corporation tax. passed as
| a part of the Payne tariff law, and to
defend it against the proposition to
| impose direct income tax, which he
acknowledged seemed likely to pass the
senate when the corporation tax was
devised as compromise. The presi-
dent strongly urged that all the states
should adopt the proposed amendment
to the constitution. however, to make
an income tax possible in time of need.
Taft was Joined here today by Secre-
tary of the Interior Bailinger, who will
accompany him on a part of the trip
through the far northwest. 1t is likely
that the president desired further
conference with Ballinger, whose con-
duct of the interior department he re-
Gently upheld in a long letter called
out by the Ballinger- Pinchot contro-
versy, before making a final exposition
of the aims and object of this admins
tration a s to the conservation of re-
sources Taft probably will not take
UP the subject now until he reaches
Salt Lake City, where he will spend
Friday and Saturday. or he may wait
until he arrives at Spokane, where. at
the irrigation congress, the Ballinger-
Pinchot controversy really had Its first
public airing.
THE CORPORATION TAX
The president tonight declared that
the corporation tax was in itself the
best form of income tax that could
be levied. and pointed out that it con-
tanned many of the best features or
the income tax law of England. In
urging that the states should vote for
the amendment to the constitution per-
hitting the levy of direct income
tax without apportioning the proceeds
among the states according to their
population, the president declared that
1t would be possible so to amend the
corporation tax as to include within its
scope every desired feature of an in
come tax except the levy upon incomes
derived from actual salary and pro-
fessional services.
The president said he opposed the
direct income tax except in cases of
emergency and he believed 1t to be a
prime fault in the federal constitu-
ton that provision is made for a
direct levy to meet wartime or other
extraordinary expenses.
President Taft declared that it was
the supreme court decision declaring
| unconstitutional the income tax law
passed by democratic congress some
years ago that prevented the leaders
in congress during the session re-
Gently closed from including in the
corporation tax measure a provision
for a levy upon bonds and bond hold
ers. To tax bonds would result in
the reduction OF the rate of interest,
and hence this resulted in a direct
tax upon the individual holders of the
bonds and came in contact with the
decision of the court that no direct
tax could be levied by the national
government without the resulting ap-
portionment of the proceeds among the
states.
COMPARISON WITH ENGLAND
The president based his argument
in favor of the corporation tax, as
compared with the direct income tax,
almost entirely upon the results of
the income tax in England.
He pointed out that the tax there is
not direct levy, such as was re-
Gently defeated in the senate only |
through compromise, but that it laid |
the tax upon the income before 1t came |
into the hands of the individual The |
English tax is levied first on the de-
clared dividends of corporations sec |
ondly on rents before leaving the |
hands of tenants, and thirdly on the
individual directly. 1t was found in |
England that a direct income tax at /
10 per cent did not produce as much
~ q hn r,f-n
ton at per cent. This, he declared. |
illustrated the premium that the d.
rect tax places upon perjury and con-
cealment.
1t is question, the president de-
clared, whether incomes earned in |
salaries and from professional work |
should be taxed as heavily as incomes
derived from investments or not taxed
at all. The latter, he said, was thesi
effect of the corporation tax
The president received a most en-
thusiastic welcome in Denver. Signs
were hung at intervals all over the
city reading, Welcome to Denver, the |
summer capital. i
While here the president is the
house guest of United States Senator
Hughes, a democrat. He held a pub
lie reception of two hours this after.
noon at the state capitol
Wants Simple Dinner
SACRAMENTO, Sept 21.-Presi5ent |
Taft does not expect to be af1icted with
a large appetite by the time he reaches
Sacramento, and being banqueted all |
along the line, he has notified the com |
mittee in charge OF his reception that
a simple dinner would be more appre-
ciated Taft's secretary. Fred w. Car |
penter, has expressed the executives
desires in telegram to Congressman |
McKinlay. \
Fountain of Perfume
LOS ANGELES, Sept 2i.-When
President Taft sits down to the ban
quet here October IL he will be placed |
before a fountain OF perfume for which
nearly fourth of the SIP. 900 appropri- |
ated for the feast will have been ex-
pended.
1t will be the centerpiece Of the |
presidents table and the delicate odor
exhaled by it's purling streams will |
mingle with the perfume OF a thousand /
varieties of flowers which will be used |
in creating a gorgeous tropic scene.
The blossoms will cost half as much
a. IL