The Birmingham age-herald., 1909-06-30
Senate Discussion Is Lively Upon Amendments to
 the Tariff Bill
.ALDRICH SLIPS OUT OF
 HIy OWN TRAP NEATLY
Senator Bailey Accuses Rhode islander of Subterfuge, But a Ready Ex- planation Is Forthcoming
 By Senator Aldrich.

Washington. June 29-with the tariff schedules disposed of and the door locked against the present intrusion of amendments upon them. the Senate today finally entered upon the consideration of the income and the corporation tax ques- ton, as connected with the tariff bill.
 While the Senate was more than four hours in formally coming to the ques- tioa of taxation of incomes, the sub ject received more or less individual at- tention while the tea provision was un- der consideration and 1t was during that stage of the proceeding that the most interesting occurrence of the day took place. This was che announcement of the real attitude of Chairman Aldrich of the finance committee toward the corporation tax provision which he had introduced at the instance of the President. It had for some time been whispered that the Rhode Island senator had become an ad- vocate of a tax on the earnings of cor porations as the most effective means of defeating a general income tax amend ment to the pending bill. Mir. Aldrich's statement today accorded with these ru- mors He spoke in response to a question from Senator Clay and in so many words confessed his advocacy of the corporation tax as a means of defeating the income tax. He added another reason which was that he thought tor the next year or two there would he a deficit in the treas- ury receipts which he was willing to have made good by the income that would result from the proposed corpora tion tax. With this service performed he thought the law could and would be materially modified if not entirely re- pealed
 Mere Subterfuee.
 This declaration was seized upon by the democrats as a confession that. the corporation tax is a mere subterfuge to destroy the income tax. and they were not slow in playing up" the develop ments.
 Mir. ,Aldrlch denied. however. that he had intended to characterize the corpora tion tax a subterfuge and defended 1t legitimate means of raising reve- hue.
 With only one amendment pending when the Senate met at 10 o'clock 1t was sup posed that it would be put out of the way soon But that amendment was a
 
 tea, and MT. Tillman was behind it. The South Carolina senator pressed so hard and so long for his provision that it was after 2 clock before a vote was taken and the schedules thus disposed of. There was another effort on the part of MT. Owen to revert to the question of duties, but in accordance with a pre- viously announced determination, MT. Aldrich moved to lay on the table the Oklahoma senator's motion, which looked to the gradual reduction of all duties imposed under tho terms of the bill and it prevailed
 Notwithstanding Mir. Tillman's stren- uous effort, his tea amendment was lost by the decisive vote of 65 to IS.
 The provision had the support of only two democrats, MT. Bailey and MT. Till- man.
 Lodges Motion.
 When the income tax question was taken up Senator Lodge moved as sub stitute for Senator Bailey's straight in- come tax proposition measure provid- ing for oountervailing duties against countries imposing duties on articles ex- ported to the United States. MT Aldrich immediately moved the corporation tax provision as an amendment to the Lodge measure thus giving the corporation tax the position of a third degree amend ment, beyond which further amend ment can be offered in the Senate.
 Senator Flint, who will have charge of the corporation tax provision, explained the provision and was followed by Sena- tor Dixon, who advocated the retention of the inheritance tax. Senator Flint expressed the opinion that at the rate of 2 per cent on the net earnings of corpo- rations the revenues would be augmented to the extent of $40, ,0o0,0o0 or $50 900. Senator Kean placed the figures at s10o.- 100000.
 i,, support of an Income tax, but had not concluded when the Senate adjourned.
 Senator Flint will be in charge of the tariff bill tomorrow, as Senator Aldrich plans to leave the city for few days recreation.
 Senator Root is expected to answer any criticisms of the corporation tax amend ment, so far as the legal phases are con- leerned.
 At e:17 the Senate adjourned.
 Statement By Aldrich.
 While the question of tea remained technically before the Senate for a long time it was impossible to keep the n- come tax and the corporation tax ques- tions entirely in tho background. They were referred to more than once, and at one time so pointedly by Senator Clay as to bring out most interesting statement from Senator Aldrich, who, as chairman of the finance committee presented the corporation tax amendment.
 Senators Bailey and Clay were prod ding the chairman of the finance commit tee and appeared especially anxious to show whether he would revise the tariff schedules downward if the income tax amendment should be adopted In order to lower the revenue from customs to an extent equal to that which would be raised by the income tax. It was In re- sponse to a direct question from MT. Clay that Mir. Aldrlch said bluntly:
 'I shall vote for the corporation tax as a means of defeating the income tax" He added; q shall be perfectly frank in that respect. I shall vote for it for an- other reason The income of the govern ment this year will show a deficit of sso.- 100000 Next year there will be a deficit of s45. 600 GOO. I am willing that the deficit shall be taken care of by a corporation tax, but at the end of two years it should