Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1909-06-30
HE FRANKLY TELLS SENATE so
Makes Explicit Answer to Questions
PrOpounded BY Bailey,
BIG FIGHT is ON IN EARNEST
Schedules Sidetraoked and Internal
Revenue Comes Up.
TEA DUTY IS BADLY DEFEATED
TiIIman Pleads in Vain for "Infant
Industry of south CArOlina"-
Senate Has interesting ses-
sion on Revenue. E.

sion on Revenue.
WASHINGTON, June 2s.-with the tariff
schedules disposed Of and the door locked
against the present intrusion OF amend
ments upon them, the senate today finally
entered upon the consideration Of the in
come and corporation tax questions as con-
nected with the tariff bill. While the SEN
ate was more than four hours in formally
coming to the question of taxation Of in
comes. the subject received more or less
individual attention while the tea provision
was under consideration, and 1t was dur
ing that stage OF the proceeding that the
most interesting occurrence Of the day took
place.
This was the announcement of the real
attitude of Chairman Aldrich of the finance
committee towards the corporation tax pro-
vision, which he had introduced at the in
stance of the president. 1t had for some
time been whispered around the senate
corridors that the Rhode Island senator
had become an advocate of a tax on the
earnings Of corporations the most ef-
feotive means Of defeating a general in
come tax amendment to the pending bill.
Chairman AIdrich Frank.
| Mr. Aldrich today stated his own posi-
tion, which was in accordance with the
rumors. He spoke in response to a ques-
ton from Senator Clay. He said;
! II shall vote for the corporation tax as a
means of defeating the income tax"
! He added: Il shall be perfectly frank in
that respect. l shall vote for it for an
other reason. The income of the govern
ment this year will show a deficit OF $780,
OOO Next year there will be a deficit
| of $l5, 200, ,0O0 1 am willing that the deficit
shall be taken care of by corporation
tax, but at the end of two years it should
either be reduced to a nominal amount
repealed"
Mr.. Aldrich said he did not favor as a
permanent form of taxation "a tax which
is sure in the end to destroy the proteo-
tive system"
- Bailey Makes Reply.
At once Mr.. Bailey declared Mr.. Aldrich
had announced that his attitude in favor"
ing corporation tax was mere subter-
fuge.
Under the statement made by the sem
ator from Rhode Island" said Mr Bailey,
those who have said they favor an in
come tax and now join him in this subter-
fuge to defeat it, may see clearly what
they are doing. We now are told that this
corporation tax is TO be entirely repealed
or at least emasculated, within the next
two years, and see that after all 1t is simply
a contest between an income tax as a part
of our fiscal system, or a corporation tax
as subterfuge to be continued two
years"
why AIdrich FaVOrs Tax.
MY support OF the corporation tax" re-
Ill.
terfuge in any sense OF the word. The cor
poration tax is tax corporations,
which it is clearly within the right of con-
gress to impose. and those senators who
are honestly in favor of an income tax
that is constitutional and that can be
operated will support the income tax prop
osltion of the administration as against
the proposition OF the senator from Texas
which is certainly, i'm the minds OF more
thoughtful people, unconstitutional"
The least thoughtful people," corrected
Mr.. Bailey
My direct authority" continued Mr..
Bailey. "for saying this was a subterfuge,
is the statement of the senator from
Rhode Island that he will vote for a cor
poration tax for the purpose of defeating
an income tax. II that does not define
subterfuge we will need a new dictionary"
Mr.. Aldrich said he favored an income
tax only for times OF emergency and DE-
clared Senator Bailey wished to use the
tax a means for destroying the protec-
tive system.
supports the President.
This proposition for a corporation tax
was made by the president OF the United
States before the house committee on ways
and means prior to the time we considered
It here" said Mr.. Aldrich. II am here as
a republican to support a republican ad-
ministration as far as can consistently
with my duty 1 shall vote for this PROPOSE
tion for the purposes / have named. and
the fact that It is a republican proposition
and supported by the president OF the
United States is not the least controlling"
Mr. Bailey said he had a curiosity to
know whether when they had set their
heads at work to defeat the income tax
amendment the president made the suE
gestion or the senator from Rhode Island
suggested 1t To the PRESIDENT"
II suppose the senator scarcely expects an
A., answer to that question" responded Mr.
AIdrich, who added his recent conversation
with the president was a private one.
! while you are talking about all these
things" pleaded Mr.. Tillman. my poor
little tea baby has been laid aside and is
4 crying for pap"
Another Rap at AIdrich.
Mr.. Clay said he believed the Rhode Is
land senator favored the corporation tax
r solely to defeat the income tax.
o mot solely" replied Mr.. Aldrich. The
r imposition OF an income tax now would be
= an assault, or rebuke rather, TO the su-
s preme court OF the United States"
4 Mr.. Clay declared II had become evident
4 that the administration program was
e brought forward to end all chance for the
, enactment OF income tax law. He
pointed out that under the administration
4 plan twelve states could defeat the amend
1 ment and such defeat would defeat the
L question for all time.
8 Tea Amendment Beaten.
n With only one amendment pending when
L the senate met at 10 o'clock Il was sup
i posed II would be put out Of the Way soon
and that by unanimous agresmsnt the
SSnAts would take up the internal tAE