The Washington herald., 1909-06-30

ton tax.
He reminded the chairman OF the FL Il
nance Committee that when he first
brought IN the tariff bill he estimated II
that it would produce enough revenue 70 n
meet the expenses OF the government, and II
he repelled the suggestion OF the income
tax with the statement that the revenues N
would not be needed. and that the income
tax had been brought forward for the I
purpose OF affording an excuse for re-
ducing duties in the bill Mr.. Clay asked 4
Mr.. Aldrich why. II view OF his estimate /
that the corporation tax would yield i
about S50.oOO000 a year in revenue. he did !
not oppose IL as an attack on the pro- /
tective system
Accepted Temporarily.
The Senator from Rhode Island remain
ed silent for a tine. but under the goad- /
/ ing finally made the statement which 1
stirred up the Senate He said that he /
still maintained that the tariff BIN would /
raise enough revenue when il got into
full operation, but that he was willing
to accept the corporation tax as a means /
OF meeting the temporary deficit that
would probably last for a year or two
after the law went into effect. When
Senator Clay suggested that the corpora
tion tax had been brought forward SIM
ply 70 Kill on the income tax. Mr..
Aldrich admitted that he was supporting
Il as the best means for defeating the
income tax: but he declared that Presi-
dent Taft had communicated with the
Ways and Means Committee his desire
thar a corporation tax feature be moor
porated in the tariff bin long before the
u Finance Committee OF the Senate took
charge OF the measure.
This aroused the interest OF Senator
Bailey, who inquired how the President
had communicated HIS desire 70 the com
mittee remarking that he had not seen
any message that had been sent 20 the
House on the subject Senator Aldrich
/ replied that the President had sent
letter 10 the members Of the Ways and
Means Committee. Then Mr.. Bailey
made some comments on this unusual
method OF communicating the Presidents
views 20 Congress.
Mr. Aidrich replied .hat Il was not un-
usual. but a very common way OF doing
f. Then Mr. Bailey remarked that the
Ways and Means Committee did not see
Al 20 adopt the Presidents recOmmenda-
, lions. but the matter lay dormant until
, q was discovered that the Senate was
ready 10 pass an income tax amendment
b and then the corporation tax amendment
. was brought In as a "subterfuge" 70 win
J away those Republican Senator's who were
disposed 10 vote for an income tax. Sen
ator Bailey said he hoped the income tax
Z Republicans would take notice OF the con-
fession which the Senator from Rhode IS
, land had made.
% saSubterfuGe.@ SAYS Bailey.
1T Is not a subterfuge" replied Mr..
Aldrich.
1t is a su6terfuge.- replied 8Ir. Bal
ley. "or have studied the dictionary 20
/. no purpose"
r Mr Bailey asked Mr.. Aldrseh 81 that
was all he had 70 tell the Senator'S
That Is The whole story replied
a Chairman Aldrich.
1T is not the whole story" retorted
= Mr. Bailey. who urged the Senator from
L Rhode Island 10 tell the Senate whether
Z ne had brought the President TO his own
e way OF thinking or whether the President
: had converted Mr.. Aldrich TO the Taft
{ view.
o Afr. Aldrich admitted that he had
= talked with the President. but that the
{ conversation was private, and that he
had no intention Of disclosing Il
8Ir. Bailey expressed some surprise that
the President should talk with a Sen
n ator on matters OF public interest. and
e the conversation be regarded as private
y between them
/. Senator Aldrich SAID that he had fire.
. qUently held private conversations with
: the President and with Senator's, even
I, including Senator Bailey. on public Ques-
tions. but that he would not think ot
making public the substance OF their
- conversation.
Senator Bailey offered 10 lift the en-
barge and permit M Aldrich 10 dis
ciose anything that mad ever passed be
tween them relating 70 the public busi-
ness. but the Senator intimated thai
Mr.. Bailey was not the keeper OF the
! Aldrich conscience
Finally Senator Tilman became fri
tated because the discussion was al
being addressed 20 his pending amend
uent relating 70 the tea tax. and at hi:
urgent solicitation the cOllOQuy wa
q brought 20 a close.
, Before the amendment was taken u
Senator Aldrlch announced that on behal
OF the Finance Committee he would NOV
10 lay upon the table any other amend
ments ogered 70 the schedules while II
tarin bin is in the Committee OF III
Whole.
Protest Against Rule.
n To this statement OF policy, Senate
Owen. Of Oklahoma. entered a viEorou
protest He said It was arbitrary and un
fair. Other Senators pleaded with Nj
Aldrich 20 give the same opportunity 70
consideration OF amendments IN Commit
tee Of the Whole as had been given here
E tofore TO other Senators.
Senators Jones, OF Washington: HEY
burn. OF Idaho; Owen, Of Oklahoma, an
Dick and Burton. OF Ohio, had prepare
amendments and were ready 10 one
them. but Senator Aldrich refused
yield 70 them the usual consideration ID
claring that he would move 10 tab
them.
Senator Flint who took charge Of Ii
tariff bin, to-day explained the propose
corporation tax briefly. For fifteen mir
utes he was the object Of a running II
Of questioning
Senator Bulzley criticised the measm
which. he said, the Finance Committs
had not prepared, but had merely a.
cepted when IL was handed 10 them.
He inquired whether mutual insuranc
companies were excepted from the IA,
Mr.. Flint replied that al corporation
organized for profit" were subject 70 Il
tax
= Then Mr. Bulkley inquired II the b.
did not class insurance companies gel
o. orally as corporations organized 4
ED profit Mr.. Flint replied II did. az
an when further questioned admitted tn
ar fraternal insurance organizations we
in not excepted.
= Senator Foster oF Louisiana ask.