Evening star., 1909-06-29
AIdrich Tells Why He Supports
Tax on Corporations.
LOOKS FOR EARLY REPEAL
Favors It in Order to Defeat the
Income Tax.
s QUESTIONED BY BAILEY
Texas Senator Wants to Know
Whether the President Sug-
gested the Plan.

Senator Aldrich. chairman of the
finance committee. astonished the Senate
this afternoon by admitting that ne
would vote for per cent tax on the
net incomes of corporations in order to
defeat the income tax amendment upon
which the democrats and insurgent re-
publicans have combined, and not be-
cause he favored the corporation tax as
an original proposition.
Going even farther, Mr. Aidrich declar-
ed that he expected to see the corpora
ton tax repealed at the end Of two years.
or at least to see the rate greatly re.
duced. while some of the best features Of
the law are retained.
Of course. he said. the corporation tax
was good thing to bring in money 10
meet the present deficit. and he was in
favor of II in some measure for that
reason. but he maintained that the bill
as originaiiy reported by the committee
revenue.
Questioned by Bailey.
When he announced also that he would
vote for the corporation tax because IL
was recommended by the President and
had become an administration measure.
Senator Bailey Of Texas saw an opening
and demanded that Mr. Aidrich tell
whether he had suggested the corporation
tax to the President or the President had
suggested it to Mr.. Aldrich.
Mr.. Aldrich replied that the President
had advocated the tax in a communica-
tlon 10 the republican members OF the
ways and means committee of the House
before the measure was ever before the
Senate.
That is the whole story" declared Mr..
Aldrich. when he had made this explana-
ton.
1T is not the whole story" insisted Mr..
Bailey. for the suggestion was not act
ed upon and lay quiet until II became
necessary for the senator from Rhode
Island to devise a plan for defeating the
income tax Now I ask him to state
whether the President reopened the ques-
tion, or whether the senator reopened
it?''
Mr.. Aldrich responded that his. conver-
sation with the President had been pri-
vate and he felt bound to keep 1t in con-
fidence.
Mr.. Bailey declared that he didn't know
private conversations were ever held by
Mr.. Aldrich said he had often had such
private conversations. even with the SEN
ator from Texas This brought from Mr..
Bailey the assertion that he would be
willing to allow Mr.. Aldrich to repeat
any conversation they had ever had on
any public question.
Gore Seeks Presidents Motive.
Senator Gore of Oklahoma took ad.
vantage of the situation to ask Mr.. Al
drich whether the President had advocat-
ed the corporation tax for the same pur-
pose that 1t was being advocated by Mr..
Aidrich. namely, to defeat the income tax.
The senator has the same means OF
finding out the Presidents motives as I
have" replied Mr.. Aldrich.
.'Oh. no. said Mr.. Bailey with smile,
for he sends US public communications
and he sends the republicans private
communications
Mr.. Bailey further stated that he was
glad that the atmosphere had been ciari-
rich, for now the advocates of the in
come tax would have no excuse for not
knowing that the corporation tax was
merely a subterfuge to defeat the per-
manent income tax by temporary meas
ure.
Subterfuge, Declares Bailey.
Mr.. Aldrich denied that 1t was q SUBJ
terfuge. but Mr.. Bailey insisted that IL
it wasn't he didn't understand the Eng
lish language.
Senator Clay of Georgia recalled that
Mr.. Aldrich had said earlier in the de-
bate on the tariff bill that the adoption
of an income tax would be q vicious as
sault on the protective system. and he
wanted to know II he regarded the cor
poration tax In the same light, as II also
would raise considerable revenne and
would make it necessary to reduce tarin
duties.
Mr.. Aldrich's reply was that he did not
expect the corporation tax to remain In
force more than two years, SO there
would be no necessity to cut down the