Evening star., 1909-06-30
Corporation Tax Legislation
Loaded With Controversy.
SMALL DOUBT OF PASSAGE
Leaders Confident of Having Ma
jority in the Senate.
INCOME TAXES 0UTFLANKED
In Reply to Criticism Senator Gal
linger Defends Methods of Dis
trict Building Associations.


poration tax amendment in the Senate by
senator Flint Yesterday when it was dis
closed that the legislation is surely loaded
with trouble and vexations which will oc-
casion long talk and debate. Senator
Flint was Immediately bombarded with
questions, some Of them pregnant with
menace indicative of future protest.
on every side were senators in the MIS-
souri, frame Of mind Show me- was the
sentiment animating them. There were
questions as to what kind of insurance
companies are TO be taxed, whether the
beneficial and mutual associations come
under the ban. and there were differing
views thereon. Will building associations
be taxed Will not those insurance COM
panies without capital stock. which in
clude some of the most powerful organi-
cations in the country, escape taxation:
Yet. with all this IL is practically GER
tain that the corporation tax will be
passed by the Senate in substantially its
present form Moreover. IL Is known
that the House leaders are in favor of
Ii. Some Legislators cling to the hope
that 1T may be possible to tangle the
legislation so badly in conference that
II may be allowed to go over until next
session. but men OF this belief. or, rather
hope, are I'm the minority.
Leaders Feel Confident.
There seems to be no question that the
leaders are confident of the necessary
majority in the Senate. Leader Aldrich
has lashed the helm amidships and will
let the old ship drift for few days,
and n number of other senators have
taken to the small boats for trip
ashore. also. That is taken to betOken
confidence in the outcome and no fear
of the situation in general
Indeed. one report today was that
there may not be much discussion as
Was first anticipated. and the amendment
may be allowed to come to vote after a
half-dozen of the big guns have ex-
ploded on the question of income tax.
The admitted Ger ainty of its passage
is expected to deter in q measure Sena-
tors from unavailing opposition and
discussion.
Income Takers at Disadvantage.
Notwithstanding the fact that the
straightout income takers are placed at
a disadvantage in respect to vote on
the income tax, through the adroit par
liamentary moves of Senators Aldrich
and Lodge yesterday, Senator Bailey in
ssts that the Senate will at some stage
of the proceedings have TO face direct
vote on the straight income tax. But no
one believes it will be possible to carry
il. 1t is recognized that the pending
proceedings have been made an admins
tration program, and as such will COM
mand the support of sufficient republi-
cans to carry 1t through.
The present parliamentary condition of
the corporation tax amendment puts 1t
out of the power of senators to disfigure
1t with amendments. 1t will be out Of
order to offer general amendments to it.
II any change is to be made 1t will have
to be made by the author of the amend
ment in the way of modifying his own
h0n w
amendments will have to step up to the
captains desk and have them approved
The most important advantage accru-
ing to the conservatives In the parlia-
mentary situation is that before the test
vote comes on the income tax the cor
poration tax will have been adopted, and
the leaders will blandly ask Whats the
use?" The next move will be to follow
the Presidents suggestion and submit
the income tax constitutional amendment
to the states. Party loyalty will be ap-
pealed to and republican income takers
brought into line.
So Senator Aldrch and the conserva-
tives are feeling pretty good these days.
thank you. They have missed that In
come-tax reef, which has been fretting
the legislative waters for some time.
Whew. 1t was a close shave, but miss
is as good as mile.
Methods Of Building Associations.
During the debate in the Senate just
before adjournment last evening, when
the members were talking about build
ing associations. District of Columbia as
sociations came in for discussion Sena-
tor Nelson said there ought not to be any
scruple about including building associa-
tions for taxation, for he had found that
in the District some of them charged
higher rates of interest than other loan
associations. He referred TO one which
in the past had been exacting usurious in
terest under the Suise of being building
and loan association.
That charge brought to his feet Sen
ator Gailinger, chairman of the District
of Columbia committee, who said:
The senator from Minnesota has al
luded to a building and loan association
in this District which was not doing bust
ness on proper principles. That was true
of one association: but we have legislated
since then. so that l think there is going
to be no trouble of that kind in the fu-
ture.
Il simply want TO say that from my
knowledge, the building and loan asso-
Citations In my section of the country, as
well as those in the District of Columbia
are doing very great work for the la
boring people and the mechanics of the
country in enabling them to get homes
While ] am not going to offer an opinion
as TO whether or not such associations
ought to be exempt. l want simply to tes-
tify. SO far as my knowledge goes to
their integrity and to the fact that they
are conducting business without the pur-
pose of profit or gain to themselves. but
for the benefit of the men who take stock
IN their organizations.