New-York tribune., 1909-04-27
ALDRICH TRAPS BAILEY
Republican Leaders Opposition 10
Plan Made Plain.
From The Tribune Bureau. !

washington. April 26.-The attitude OF
publican leaders toward the income tax was made
clear to-day in a coloquy between Senators AIdrich
and Bailey For nearly four hours the latter ad-
dressed The senate in support OF his income tax
amendment i was a typical Bailey speech. smooth
IN dicuon. adrot in phraseoloEv and delivered in
that pleasing and effective style for urhtcb the
Texas Senator is noted. Mr. Bailey had laid the
fouhoalon Tor his criticism Of the Supreme Courts
oeclsi2n In declaring unconstitutional the income
TAX Ia" OF 1898 when he surrendered the floor and
announced he would finish his remarks +o-r,or-or,
The Texas Senator had several tits with Mr.
Adr1ch hut 1t was not until the last colooJy Of
the day that the Rhode Island Senator made II
clear that In his opinion the adoption Of an income
tax would be direct challenge 10 the protective
system.
MI Bailey was arguing that a tax on incomes in
excess o1 10000 year. provided in his amend
nent. would be on the prosnerous and an
emancipation Of those who toll Il +, ro,s.5 80
than enough revenue he would cut down the tariff
MI AidT1ch wanted TO know how the Texas
senator mad arrived at $4,000 as the figure above
"ilch incomes were 10 he taxed. and the latter
replied that he had taken this amount so as 70 ,,ro
oAe as hItle opposition possible and at the same
"fle 10 affeet as few persons as possible
INCOME TAN AND LABOR
This was exactly the admission +ba F,,,o5. 1s,a,z
senator desired After declaring that this was
clasS legislation. Mr.. Aldrich said that the avar
age wage Garner in this country receives less than
s1c@ year He competing with men whose
incomes ranged from $50 To $500 a wear An in
come Of S50aF year from ten 10 twenty times
greater than that received by the competitor Of
the American working man. and Yet this income
was 10 he exempted from taxation and the account
squared with the American working by
ducing duties that would put him in competition
with the poorly paid labor Of Europe,
Mr. Bailey replied that he would protect the
American working by stopping immigration.
Mr. AldricI replied that the Democrats seemed
only willing that the products OF cheap foreign
labor should free.
The Texas Senator was unable how the
American working man would have any right to
complain because no income tax was levied on
Americans " hose incomes ranged from Slcgo TO
$500
Il was az this point that the Rhode Island Sen
stor stated the position Of the Republican leaders
and stamped the income tax proposition funda-
mentally inimical the protective policy. He de-
clared that the American workngman would have
z right complain against the income tax when
its author and its advocates were repeating over
and over again that its ayowed purpose was to
raise revenue so as to enable reduction in the
protection enjoyed by the wage Garner
Mr.. Bailey declared that the rates on the pending
bill could be reduced SO Is per cent without greatly
increasing the bulk Of importations
Does the Senator think that the American manu-
facturer makes profit Of 80 Ia per Inquired
Nj Aldrich-
STEEL CORPORATIONS PROFITS.
Mr Bailey suggested that the United States Steel
Corporation. with q capital OF &Sn,uoet, had IN
creased fits capitalization to sooooooooo and makes
about per cent the larger sum.
Obviously. he said, the steel corporation could
reduce profi 80 1-3 per cent and still make moro
than legitimate profit upon fair valuation OF its
property"
Does the Senator think the average Industries
make q profit Of than 33 1-3 per cent annually
and regularly inquired Mr- Aldrich.
Bailey explained that q 80 1-3 per cent
ducton the Of duty would not be equiva-
lent O a 8 is reduction in profit
Again taking up the subject Of an income tax.
Nj Bailey said that system Of taxation ever
as income tax
How did the Senator arrive at the income Of
5000 proper to tax" asked Nr- Aldrtch.
instead of $500 5000 or s2,r0o?'
Mr.. Bailey replied that he had fixed that figure
because he had assumed that incomes Of $500 arc
spent on living expenses, that the recipient would
be compelled to pay another than the income tax
al the custom house on everything he purchased
and as the had already been paid exenlp-
ton from the income tax seemed justified But
more that. he said he wished to levy the tax
UPON those best able 10 pay IT.
Being further pressed with questions by MI
Aldrich the Texas Senator replied:
4 know what you want me TO say, and l am
going 10 say It I fixed upon 5000 year as the
income to be taxed for the further reason that
wanted il TO affect few people as possible so
that il might not provoke hostility. Is the Sen
ator satisfied inquired Mr. Bailey. smilnB al
NJ Aldrich, who nodded and smiled
in other words" retorted Mr Aldrich the
Senator wants TO enact legislation with q Class
distraction in order O get it through
Referring 70 an ''expaUriated citizen VINO ne
sajd owned s1eooo6ye of real estate IN New YORK
civ he said that the workingmen OF this country
we're taxed 10 protect his property while he went
,,ntlxed in the with Spain. The "orkIhsHlai',
be lid who paid tax on a plug OF tobacco paid
more for the support of the federal government
than did that "expatriated citizen
Practically no progress on the bill was mace 10
5.,- y,-be, Nr Bailey finishes his speech to-fnor-
row Senator Scott Will speak in defence OF tie
protective policy with special reference 10 ue
d,,,ies on coal glass and lumber. Senator Ra!her
- -,,o,,,,cad his purpose 10 speak this week,
snd Senator Borah slated for an income TAX
,neecb The Republican leaders have made a care
ftl canvass of the income tax situation on helI
L. - .ra confident that they will have enough
,,o+es 70 defeat both the Bailey and CuTnmihs
.r,endnoents This is disputed by the Democrats
and Republican insurgents who lhsis' 'ha1 u'.!
I'll ba[e from three TO six majority, but VIII not
name their members.