Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1909-07-07
.ALBR|CH FAvORS
CORPORATION TAX
SAYS 'TWoULD BE A SOURCE OF
REVENUE AND DEFEAT AS
sESsMENT OF INCOMES.
6AlLEYs PROPOSAL FOR DUTY
ON TEA MEETS DECISIVE
DEFEAT.

Washing on, July 3.-W:ta the
tariff schedules disposed Of and the
door locked against The intrusion OF
amendD.ents upon them, the senate
yesterd,., finally entered upon eonsid-
GRAFTON OF the income and corporation
| tax questions as connected with the
tariff bill
! While the senate was more than
four hours in formally coming to the
question OF taxation of incomes the
subject received more or less individ.
uai attention while the tea provision
was under consideration, and it was
during that stage OF the proceeding
that the most interesting occurrence
Of the day took place. This vas the
announcement OF the real attitude of
| Chairman Aldrich of the finance com
mittee towards the corporation tax
| provision, which he had introduced at
the instance of the president.
! 1t had for some time been wills
pered around the senate corridors
that the Rhode Island senator had
become an advocate of tax on The
earnings of corporations as the most
effective means of defeating the gen
eral income tax amendment to the
pending bill. Mr. Aldrich yesterday
stated his OWL position, which was in
accordance with the rumors. He
spoke in response 10 a question from
Mr. Clay, and in Sc many words con-
fessed his advocacy of the corpora
tion tax as a means, of defeating the
! income tax. He Gdded another rea,
son, which was that he thought that
| for the next year or two there would
be deficit in the treasury receipts
which he was willing TO have made
good by an income that would result
from the proposed corporation tax.
With this service performed he
thought the law could and would be
materially modified II not entirely re-
pealed
This frank declaration was seized
upon by the democrats as confes-
sion that the corporation tax is
mere subterfuge to destroy the in
come tax and they were not slow in
playing up the development" Mr..
Aldrch, denied, however. that he had
intended to characterize the corpora
i ton tax as subterfuge and defended
! II as a legitimate means of raising
revenue.
With only one amendment pending
when the senate met 1t was supposed
/ II would he put out of the way soon.
and that In accordance with the unan
imous agreement the senate would
immediately take up the internal tax
question But that amendment was
/ The proposition for a duty OF ten
cents per pound on .ea. and Mr. TIL
man was behind it, The South Car
DINA senator pressed so hard and so
long for his provision that It was
after two O'Clock before vote was
| taken and the schedules thus disposed
Iof. There was another effort on the
part Of MI Owen to revert to the
! question of duties, but in accordance
with a previously announced deter
mination Mr. Aldrich moved to lay
on the table the Oklahoma senator's
motion which looked to a gradual re-
dHction Of all duties imposed under
The terms Of the bill. and It prevailed.
/ Notwithstanding MT. Tillman's
strenuous effort, his tea amendment
vas lost b. a decisive vote of IS to
1S. The provision had the support
OF only two democrats, Bailey ana
Tillman
| When the income tax question was
/ formally taken up Mr.. Lodge moved
as q substitute for the Bailey straight
income tax proposition measure
providing for countervailing duties
against countries imposing duties on
articles exported to the United
States
Senator Flint, who will have charge
iof the corporation tax provision.
spoke at some length in explanation
of the provision and was followed by
Mr. Dixon, who advocated the reten-
ton OF the inheritance tax provision
in preference to any Of the income
tax measures. Mr.. Flint expressed
the opinion tina at the rate Of two
per cent on the net earnings of the
corporations Of the country the reye.
nues would be augmented TO the ex-
tent Of fortn or fifty million dollars.
Mr. Kean placed he figure at 500.
600 900.
Mr. Cummins began a speech in
support of the income tax but had not
concluded when the senate adjourned.
Getting at the Facts.