Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-06-16
He Recommends One in
Special Message to
Congress.
CABINET SUPPORTS 1T
Senate, Led by AIdrich, Immed-
lately Votes Dow. Motion
to Accede.

NdohihStOH, w JuhC lO-RCSomulCuu-
ing legislation looking to placing a 2
per cent tax on the net income of cor
porations and also the adoption of an
amendment to the constitution provid-
ing for the imposition of an income tax
without apportionment among the sew
eral states, President Taft today sent
to congress- a message embodying his
views on the subject. The action fol-
lowed a protracted special cabinet
meeting.
Unable to Agree.
In his message the president speaks
of the apparent inability of congress
to agree on an inheritance tax and as
regards to the income tax, he refers
to the decision of the supreme court
| in the case of Pollock VS. the Farmers
Loan & Trust company, in which the
court held the tax to be unconstitu-
tional unless apportioned according to
population.
Might Save Government.
at is,' says the president, "undoubt-
edly a power which the government
ought to have. 1t might be indispeusi
BILE to the nations life in great crises.
The amendment, therefore, he de-
clared was the only proper course.
Such an amendment to the constitu-
4 ton. he eontended was preferable to
the one proposed of reviving law ju-
Ideally declared to be unconstitutional.
Few Are Excluded.
The amendment which he proposes
should be made to the tariff bill pro-
videS for the imposition upon all cor
operations and joint stock companies
for profit, except national banks 10th
erwise taxed, savings banks, building
and loan associations, of an excise tax
of per cent on the net income of
said corporations. This, it is estimated
by him, will bring in an annual reve-
nue. of s25,O0O,OO0.
This is a tax on privilege and not
on properly" he says, "and is within
the federal power without apportion-
ment according to population
Give Chance to Control.
The president points out that an
, other merit to the tax on corpora
tions is federal supervision which
will give to the government, stock
holders and public. a knowledge of
the real business transactions and
gains and profits of every corpora
tion in the country. The adoption
of the amendment, he says, will
make a long step toward that sup
Eervisory control of corporations which
may prevent further abuse of power"
II Motion to Accede Lost.
= Washington, June 16.-Upon the
I completion of the presidents message
: in the senate Gore moved to refer it
to the committee on finance with in.
i, structions to report by next Friday a
resolution for an income tax in ac.
cordance with the presidents recon-
v mendation. The motion of Aldrich to
lay Cores motion on the table was
carried by strictly party vote.
III Foster Opposes Free Trade.
II Washington, June 16.-Opposing the
II provision of the tariff bill by which a
c restrictive amount of sugar and to
), bacco are to be admitted free of duty
h from the Philippines, Foster of Lou
isiana addressed the senate as soon a:
the session began today. He express
ii ed the opinion the establishment O.
;. free trade relations between the Unit
y ed States and the islands would de
Il stroy all hope of their independence.
III Root with Democrats.
t After Dick had made an effort {,
II prevent the free entry of tobacco frou
le the Philippines, the Philippine fire
IS trade section with amendments wa
IF adopted by vote of AZ to 2S. Six re
20 publicans. Root. Borah, Bristow, ClapI
,e Crawford and LaFollete voted vii
Id the democrats against the finance CON
a. mittee's proposition. =
e.