The Marion daily mirror. (Marion, Ohio) 1892-1912, 1909-09-22

urges All States 10 Adopt Proposed
Amendment to the Constitution.
Changes Program at Last Minute
and Defers Discussion Of conserva.
tlon of Natural Resources Until
Later Date--.ls Joined by Ballinger
For Conference on Subject.
Denver, Colo Sept. %. Making
his way still farther to the west
President Taft arrived in Denver and
in the auditorium where year ago
Mr. Bryan was nominated as his OPP
ponent in the presidential race, faced
crowd of thousands. that i'm its
noisy welcome and continuing enthu.
siasm recalled some of the scenes of
convention week.
President Taft, switching from his
purpose to discuss the question of the
conservation of natural resources I'm
his Denver speech. elected to take up
the corporation tax passed as part
of the Payne tariff bill, and to defend
it as against the opposition to i'm
pose a direct income tax, which he
acknowledged seemed likely to pass
the senate when the corporation tax
was devised as compromise. The
president strongly urged that all the
states should adopt the proposed
amendment to the constitution, how
ever, to make an income tax possible
In time Of need.
MIR Taft was Joined here by the
secretary of the interior, Mr.. Ballin
ger, who will accompany him on
part of the trip through the far north.
west. 1t is likely that the president
desired a further conference with Mr.
Ballinger, whose conduct of the in
terror department he recently upheld
IN long letter called out by the Bal
linger- -Pinchot controversy, before
making a final exposition of the aims
and objects Of this administration as
TO the conservation Of the resources.
Mr.. Taft probably will not take up
the subject now until he reaches Salt
Lake City, where he spends Friday
and Saturday; or he may wait until
he arrives at Spokane, where, at the
irrigation congress, the BallingerPin'
: chot controversy really had its first
public airing
The president declared that the
corporation tax was in itself the best
form OF income tax that could be lev
led, and pointed out that It contained
many OF the best features of the In.
come tax law of England. In urging
that the states should vote for tho
amendment to the constitution per
hitting the levy OF a direct income
tax, without apportioning the pro-
ceeds among the states according to
their population, the president de-
clared that il would be possible to
amend the corporation tax as TO in
Clude within its scope every desired
feature of an income tax except the
levy upon incomes derived from act
ual salary and professional services.
The president said he opposed a di-
rect income tax except in cases OF
emergency, and he believed II to be
n prime fault I'm the federal constitu-
tion that no provision is made for
n direct levy 10 meet wartime or
other extraordinary expenses.
Mr.. Taft declared that 1t was the
supreme court decision declaring un-
constitutional the income tax law
passed by Democratic congress
some years ago that prevented the
leaders In congress during the ses.
sion recently closed from including in
the corporation tax measure a pro
vision for a levy upon bonds and
bondholders. To tax bonds would re.
, suit in the reduction of the rate OF
interest. and hence this resulted In a
5 direct tax upon the individual bond
holders of the bonds and came In
contact with the decision of the court
that no direct tax could be levied by
the national government without the
resulting apportionment of the pro
ceeds among the states,
The president based his argument
IN favor of the corporation tax, as
compared to the direct income tax,
almost entirely upon the results of
the income tax in England.
He pointed out that the tax there
is not direct levy, such as was re.
Gently defeated in the senate only
tUIOuEH a Nuhpiphlo't hht hhh' ~
laid the tax upon the income before
Il came into the hands of the indi-
vidual Tho English tax Is levied
first on the declared dividends of a
corporation. secondly on rents before
leaving the hands of the tenants, and
thirdly on the individual directly, It
was found In England that a direct
income tax at 10 per cent did not
/, produce as much revenue as the
present method Of taxation an 8 per
cent. This, be declared illustrated
the premium that the direct tax
places upon perjury and conceaIment.
III 10 a question, the president de-
aIared, whether incomes from earned