The Irish standard., 1909-07-03
DECLARES THAT CORPORATION
TAX is AN INCOME TAX UN.
DER ANOTHER NAME.
CORPORATIONS "C0MF0RTABL e"
Says Senator CIapp, of Minnesota, az
Regards the Tax-Hot Weather
Makes Poor Attendance of -,
Senate. IS

N'oohIA6IoAAp July uCbuCF,' OWs
Ing to the absence Of Senator -Aldrieh.
the lack of interest. or the continued
heat the senate today was much slow.
er than usual in assembling. When
the vice presidents gavel fell there
were not more than eight or ten sena-
tors. present and the point of no duor.
UNI was made. Much time elapsed be.
fore majority of senators could be
brought into the chamber. ..
Mr.. Cummins stood ready to proceed
with his income tax speech. but the
supporters of the income tax PROPOSE
ton. however, did not purpose tie
Iowa senator should speak to empty
seats. g.. ...-,
The proceedings were begun by Sen.
ator kean, presenting. protest from
the Building and Loan Association
league of New Jersey against includ-
ing in the corporation tax the business
OF building and loan associations. The
protest had been telegraphed to the
New Jersey senator and was very en-
phatic in tone. ,.... &,
He Scores Aldrich. -:
Before proceeding with his speech,
Mr.. Cummins remarked upon the alb
sence Of Mr.. Aldrich. MIR. Cummips
said he had seen in the morning pa
pers the announcement that the chair
man of the finance committee was
going on a sea voyage .+
After the acknowledgment he
made to the senate yesterday with re.
spect to his vote in bringing forward
the amendment that we are now con-
siderng." added Mr.. Cummins, .evi.
IDENTIFY referring to the admission that
Mr.. Aldrich favored the corporation
tax to defeat the income tax amend
ment, "he needs the restoration and
the recuperation of salt air. l would
want to take trip lasting about a
thousand years If | had been. COM
PEELED to make confession of that
sort with respect to n measure brought
forward by myself"
"The issue respecting an Income tax
has suddenly changed" Senator Cum
minis declared. Until within a few
days the issue was whether any in
come tax should be authorized by con-
gress. 1t now seems to be what kind
of an income tax shall be adopted.
Referring to the Taft plan objec-
lions. he said -
"First-It is a tax upon incomes.
and the fact that 1t brings within fits
provisions the incomes of corporations
only. does not and cannot. change its
character. The Spreckels case gives
no more support to the validity of this
amendment than to ours. ...,..
"Second-It does not change the
nature Of tax to bestow upon It
a different name; and If a mere name
was important or influential. the tax
proposed by our amendment could be
called an excise tax Just as easily
and Just as correctly as can that term
be applied to the tax proposed by the
committee ....,.
"Third-The stroke Of pen will
make tho tax authorized by our
amendment tax upon the right to
receive and enjoy certain income.
and It will be as wen described as
the tax which the committee insists
upon, when 1t is said that 1t is laid
upon tho net incomes Of corporations
with respect to the carrying on Of
their business"
CIapp Also Has Observation.
Mr.. Clapp interrupted with an OBJ
servation. Referring to the corpora.
ton tax amendment he said:
II notice by the newspapers that
the large corporations are not. uncom-
Portable. They are reported as being
we'll satisfied with this provision"
Mr.. Cummins replied that there was
nothing in the corporation tax amend
ment to make the corporations uncom-
Portable. He then proceeded to dis
cuss the receipts and expenditures Of
the government to sustain his conten-
ton that the pending bill did not sup
ply enough money for usual expenses.
Senator Clapp. scored a victory. over
the Aldrich forces late yesterday
afternoon by forcing an adjournment
in the face of their objections. With
Senator Aldrich away, his assistants
Oil the finance committee, including
Senators Smoot and Lodge, fought the
motion of Senator .Clapp with frantic
endeavors, but were finally beaten on
q roll call. ...,.s.@
The difficulty arose when efforts
were made to force Senator Borah to
continue his speech, when he was
manifestly exhausted. He had taken
the floor at the conclusion of Senator
Cummings long speech and talked
until nearly o'clock. At that time
he was worn out, and to relieve him
and enable him to continue this morn
Ing, Senator Clapp made the motion
that the senate adjourn at that TIME,
instead of continuing until 7 O'clock.
;. The. Aldrich forces were caught
mapping and endeavored to do what
they thought the. chairman himself
would do If he were present, prevent
the adjournment They reckoned
without their host, however, for when
Senator Clapp finally forced a toll call
he won "a to =: 800 81