Bisbee daily review., 1909-07-08
BREACH W|DENs
 IN SENATE
Corporation Tax Causes Still Greater Divergence Between
 Republican Factions
TAFT DID NOT CONSULT
 WITH PR0GRESSlvES
lsnecial to Review by Tay. l

Special to Review by Tay.)
 WASHINGTON. July 1.-The breach between the Taft-Aldrich-Cannon and La Toilette -Cummins-B Bristow and of the Republican party has widenei materially since President Taft sent in his corporation tax message to de. feat the income tax.
 Evidence of the increased bitter ness between the hostile factions is presented almost daily on the floor of the senate. Tnis open cross fire IS a new condition.
 It develops President Taft did no. take any of the progressives into confidence before sending in his mes sage. That is the chief reason for their increased hostility toward the President.
 The president. in considering the advisability of tax on the net earn ings of corporations, entirely ignored Senators La Toilette, Cummins. Blis. tow. Deliver. Borah and Clapp. He confined his consultations to Aldrich. Root. Cannon and the members of his cabinet. all of whom are stand patters.
 The positions of the progressives Is that since they were working so hard for an income tax. they were entitled to hearing by the president before he took action. They do not seek to hide the fact that they were offend ed by the presidents action in ignoi- ing them entirely and placing his en. tire dependence on such senators as A,s- leaders of the fight for upward tariff revision.
 Although the progressives do not believe the corporation tax is worthy of comparison with an income tax. they may support it after it becomes certain that an income tax can not be passed. A corporation tax. they believe, is far better than nothing, al though it will exclude from taxation the great incomes of men like Carne- gie and Rockefeller, which wouli come ih for taxation under an income tax. The progressives also say they are convinced that to a great extent, the corporations will shift the tax on the consumer by simply boosting prices.
 A feature of the corporation tax bill that is coming in for bombardment ls that which prevents publicity of the corporations affairs. The public was promised when the corporation tax plan was first mentioned that one oi its best features was that it would. as Mir Taft said, possess the govern. ment and the stockholders and the public of the real business transac. tions and gains and profits Of eye-s corporation.
 But will the corporation tax bill submitted to congress accomplish that end? What does this clause mean? Tt shall be unlawful for any col lector. deputy collector. agent. clerk or ether officer or employe of the United States to divulge or make known in any manner whatever not provided by law, to any person, any information obtained by him in the discharge of his official duty or ro divulge or make known in any man ner not provided by law any document received, evidence taken, or report made under this section. except upon the special direction of the president | This clause makes the president aI | executive above the law. It is re | Cdtltu tnt dCl Ol EtDfud 70, lSoo creating the bureau of corporations provided that the information obtain ed through its investigations. "or G:
 much as the president may direct shall be made public. The result has been a defeat on the intent O. the law. it is asserted. Corporations
 have been investigated when it suit ed the fancy of the president to hayt them investigated. Information ha: been made public when the presiden
 wanted 1t public. By putting the dis cretionary power in the hands of tn
 president, the cat has failed signalis
 1t is claimed. to give adeuuate pub licity to the business methods of tn
 corporations.
 | Critics of the quoted clause of tn
 corporation tax bill say that to giv
 the president power to say wlicl corporations report shall be mad public makes the clause a politics,
 device. Corporations frequently .do nate large sums to the campaign es
 Ienses of one or the other great pa: lties. and use their influence in op'
 way or another to secure hold on tn party in power.
 Better no corporation tax at all.
 ys the New York World. editorialIy "than a system of discretionary puf licity which gives to any goyernmen official. high or low, the power ! publish or suppress the truth as may suit his own purposes