The Birmingham age-herald., 1909-07-03
Corporation Tax Amendment Is Added to the Tariff Bill
 By Very Decisive Vote
MANY VOTED FOR TAX BUT
 REALLY DIDN'T WANT ID
Democrats Were In the Middle of a Bad Fix, as They Did Not Favor the Tax But Took 1t in Pref
 erence to Income Tax.
BY WATTERsoN sTEALEY.

BY WATTERSON STEALEY.
 Washington, July 2-(Special.)- .)-The Aldrich corporation tax amendment was adopted by the Senate late this afternoon by vote of 59 to Il after a series of roll calls and wrangling over the pre- liminary situation lasting from shortly before o'clock until o'clock.
 First, there was attempt to fix o'clock tomorrow for taking the vote. Aldrich tried to force this agreement, but failed when Cummins interposed ol - jection. Then MT. Aldrich, who carne back from his brief little holiday trip, determined upon either fixing a vote for tomorrow or of obtaining that vote by sheer force today, insisted upon the reg ular order.
 No one was ready to talk and the reg ular order was the pending amendment Senator Frazier of Tennessee was at his hotel i'll and in order to stave off the vote until Mr. Frazier could arrive Sem ator Bailey took the floor. When the Tennessee senator was led into the cham Der the first, or test vote, was taken This was on adopting the corporation tax amendment, as an amendment of the Lodge substitute was withdrawn, and a. ltSl NOle tdhcIl Ou tlS QucSllOI ol SuD- . stituting the corporation tax in place of the proposed Bailey Cummins income tax. As between these two propositions the corporation tax was adopted by vote of 45 to 31
 Amendments Tabled.
 Senator Bacon offered several amend ments. Mr. Aldrich held that they were not in order and after little verbal tiff with MT. Bacon the Rhode Island sen- ator moved that the Bacon amendments be tabled. This was done by votes of AZ to 32 and 4 to 34. Then after other amendments were read for the informa- tion of the Senate the final vote the corporation tax was taken and 1t overwhelmingly adopted. Before Aldrich made his effort to force vote the law yers of the Senate engaged in a spirited debate over the question of the constitu- tionality of the proposed corporation tax; also as to whether 1t constitutes ex- else tax or a tax on incomes. Senator Rayner started the discussion early in the day and occupied the floor for two hours. Senator Bailey of Texas closed the legal argument, taking the floor after Aldrch made his attemp. to have the vote fixed for o'clock tomorrow.
 Democratic Dilemma.
 The democrats of the senate have been in a dilemma The entire democratis side has been in favor of the income tax. They felt certain that the income tax proposed would be defeated, and that, this being so they would be confronted with the proposition whether to vote for the corporation tax brought in by Aldrich or leave the treasury with deficit of something like $1OO, 100000. For this reason every democrat with two exceptions, has beer willing to vote on the final vote for the corporation tax, not because they wanted it, but because being unable to get the income tax and realiz- ing that supplemental revenue would have to be raised, they came to the conclusion that the corporation tax would have to be supported as final resort. They realized that they had no choice in the matter on the final show down. and if they would vote against the tax on corporations, there would have to be bond issue by the federal government unless supplemental revenue Is obtained in some other way.
 Raynor's Speech.
 Senator Raynor took this ground in his speech this morning. In doing so, he voiced the sentiment of nearly all his party associates. Bailey took the same position in his closing speech late in the afternoon. Both Rayner and Bailey de. clared the corporation tax unfair and uneoual but both declared their firm be- lief in its constitutionality, and they are justifying their vote in favor of the cor poration tax as a final resort for revenue on the ground that the tax will beyond I all question pass muster in the supreme court.
 Senator Johnston, of Alabama. made the remark that he could find no senator
 for the corporation tax yet practically all of them would vote for it. In other words the remarkable spectacle is bein> presented of congress, through its repub- lican majority putting upon the statute books a tax that does not appeal to the Judgment of any one with the possible exception of one senator. Jeff Davis, of Arkansas. is for the tax solely for the reason that it may hit a corporation, even though 1t be little one.
 Tax 10 Harassing. It Is admitted that the tax Is harassing and vexatious to many lines of business enterprise that it will work discrimi- nation between different forms of the same business; that 1t will produce rev. enue in volume far beyond the necessi- ties of the government, and to an extent which hardly any one can now approxi- mate; that 1t will be cursed up hill and down dale in many quarters Why, then was it adopted? Hobsons choice; take that or the income tax amendment straight The corporation tax can be repeaieu' anu senator Aldrlcn prophecies it will be repealed within two years The income tax once on the | statute books would be harder to get | of, and indeed might become a perma- nent feature of the revenue system of the government. Senators who have talked with Presi- | dent Taft since his return to the city. | are convinced that he Is in earnest in | his demand for the tax. and that he will l hold the house and senate leaders to '