The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-06-30

and the Inheritance tax feature.
which was adopted by the house, s
8 should be restored.
|~>~~~~~~~~~~~-~---~~~~~--
WASHINGTON. June 2s.-With the
tariff schedules disposed Of and the
door locked against the present intru-
sion OF amendments. the senate today
began consideration OF the income and
corporation tax questions as connected
with the tariff bill.
The question of taxing incomes re-
-oeived attention while the tea provision
was under consideration. and it was
then that the most interesting Occur
Fences OF the day took place. This
vas the announcement of AldMch's
real attitude toward the corporation tax
provision which he had introduced at
B. the instance OF President Taft
II had been reported that Aldrich
lad become an advocate of a tax on
the earnings Of corporations as the
most effective means OF defeating
general income tax. AIdrich stated
his own position. which was in accord
enoe with the rumors He confessed
his advocacy of the corporation tax as
q means Of defeating the income tax.
PROPOSAL NOT A SUBTERFUGE
Aldrich also said he thought for
the next year or two there would be a
de6cit in the treasury receipts. which
ne was willing TO have made good by
the income from the proposed corpora
ton tax With this duty performed
he thought the law could and would be
materially modified, If not entirely re-
pesled.
This declaration was seized upon by
the democrats as a confession that the
corporation tax was a mere subterfuge
70 destroy the income tax. Aldrich
denied however, that he had intended
10 characterize the corporation tax as
= subterfuge.
With only one amendment providing
for a duty Of 10 cents pound on tea
pending. it was supposed that the tariff
schedules would soon be disposed of.
Tillman pressed so hard and so long
Tor his provision that it was after
. O'Clock before vote was taken. His
tea amendment was lost, 50 to is.
LODGE AGAINST INCOME TAG
When the income tax question was
formally taken up Lodge moved as
substitute for Bailey's straight income
tax proposition measure providing
for countervailing duties against coun-
tries imposing duties on articles ex-
ported to the United States Aldrich
Immediately moved the corporation tax
provision as an amendment TO the
Lodge measure, thus giving the corpo-
ration tax the position of third de-
rreev amendment, beyond which no
further amendment can be offered In
the senate.
Flint. who will hsve charge OF the
corporation tax provision, spoke at
some length in explanation of the pro-
vision and was followed by Dixon, who
advocated the retention of the inherit
ance tax provision in preference to any
Of the income tax measures.
g-Iint expressed the opinion that at
,be rate of :. per cent on the net earn
fngs Of the corporations of the country
.be revenues would be augmented to
Tbe extent Of s4o,000,000 or $5O,oO0,OOo-
Kean placed the figure at $leeeoo,ooe-
Cummins began a speech in support
Of an income tax. but had not concluded
zhen the senate adjourned.
AIDRICH CHANGES ESTIMATES
orrinp Cummins' comment on the re-
c.irse and expenditures of the govern
mont s1drich declared that with addi-
4ional revenue to be provided by the
c.orporation- tax he would be greatly
surprised IL there is a deficit next year.
His estimates OF expenditures Tor Inc
r,.eseut year when the tariff bill was
reported TO the senate. he said, were
about $4,000 900 too high, and he had.
he said. congratulated himself that he
had estimated within 100000 of the
annual receipts. The deficit for the
present year, he added. would be about
$50 .0O0.0 600.
Again he declared that if the tariff
bill becomes a law in its present form
that il would next year produce an in
come of $3.50 .o0O. 600.
FLINT SPEAKS FOR COMMITTEE
Flint said the finance committee had
not been united on the question as to
whether il would be necessary to have
revenues in addition to those produced
by the pending bill. The committee had
considered not only q corporation. but
also an income tax law as supplement
airy TO the tariff, and had decided il
would be unwise 10 pass such in
come tax bill as either of those intro
duced by Bailey and Cummins. The
committee had. he said. abandoned the
IDEA Of an inheritance tax, because such
tax was so largely imposed by states.
and they did not wish by making a
double tax to have it become burden
some
= Aidrich and Flint agreed that where
fdnding and loan associations are
properly corporations for profit" they
would be subject TO the tax.
Flint will be in charge of the tariff
bin tomorrow. as Aldrich plans TO leave