New-York tribune., 1909-07-02
MIR. TAFT STANDS By TAX
Continued from 1rst page

the corporation tax Suddenly it occurred -
him that were this tax imposed the net earn
ings of corporations it would constitute long
stride toward that publicity OF the affairs of cor
porations which he deemed SO important He
sent for Senator Aldrich and urged IT'S adoption
on him. but Mr.. Aldrich emphatCany rejected
the proposition. He admitted that the inheri-
tance tax would be rejected by the Senate, but
declared that tho tariff bill framed by the
Senate would afford ample revenue The Presi-
dent was skeptical. but Mr.. Ald-ich declared
that in due time he would be prepared - de
monstrate the accuracy of his contention, and
the President contentedy bided his time When
the tariff bill was reported to the Senate many
Senators and sone Of the House leaders were
impressed with the fact that the estimates ot
the Senator from Rhode Island were too opti-
mistic. Mir Aldrich himself admitted that for
two years there would be a steadily diminishing
deficit and many Of the party leaders believed
# would be most unvise 10 enact tariff bill
which would not at once meet the federal ex-
penses. Mr.. Aldrich and others suggested that
the interim could be tded over With Treasury
certificates Other leaders thought their issue
would be harmful to the party. especially as IL
was already obvious that the party would be
criticised because II had not revised the tariff
as far downward as many deemed proper. The
President listened but said nothing.
y
About this time the most prominent Repub-
can advocates Of income tax went TO the
White House and urged the President TO sup
port them in their effort to secure the enactment
Of an income tax as a part Of the tariff bill.
The President asked them II they meant grad
uated income tax. They said they favored a
graduated tax. but it would be impossible 70
secure sufficient votes 10 put that through the
Senate. Mr. Taft expressed the view that any
other kind Of income tax would be inequitabie'
and added that he had come gravely to doubt
the wisdom or propriety Of enacting a tax 50
similar TO that already pronounced unconstitu-
tioua! by the Supreme Court to insure its
rejection by the court, or else compel the court
to reverse itself. Moreover. he told them, he
strongly advocated tax on net incomes OF cor
porations. not primarily a revenue measure
but because Of the publicity IT would insure, etc
Finally Senators Aldrich. Lodge and Crane
called at the White House. They told the Presi-
dent that they had made every effort TO fore
stall the income tax. that the advocates Of that
tax had at least seventeen votes and that they
rhe leaders) were compelled to confess their in
ability to prevent an income tax being added to
the bill They had tried 10 secure its reference
TO the judiciary Committee; they had even
sought 10 have it's consideration postponed until
next session, with a definite agreement that on
A fixed date IT should come TO vote. but all TO
!
70 the President. without his influence they
we're nogerIess The President had been wait
ing for lust such an opportunity. He told them
he had scrupulously refrained from interfering
with the tariff legislation. but, Of course If they
wished ii he would take 4 hand. Then he pro
posed again the tax on the net earnings OF
corporations together with the now pending
icint resolution providing for amendment 10
the Constitution authorizing Congress to i'm
| fsy Mr.
accent the resolution and the tax. but with the
provision that It be enacted for two years. at
the end Of which time il would expire by lin
ita+ion Mr. Lodge expressed himself as heartily
in favor Of the tax without any limitation
NO DECISION AT CONFERENCE.
The conference broke up without any decision
| The following day Mr. Crane returned bringing
word that the leaders including Mr. Aldrich.
were prepared to accept the Presidents terms.
That June IA. as told in these dispatches
Of the following day. There we're, however, so
many conflicting reports that the history of the
| events connected with the corporation tax
amendment has become sadly confused
When it became known that the leaders had
yielded to the Presidents recommendation some
Of the advocates of income tax went TO the
President and assured him they were prepared
70 follow him their leader. but because of the
confusion and the widespread reports that Mr..
Aldrich and his associates were preparing to use
the corporation tax solely to head off the in
come tax. and that It without intrinsic
merit their course In advocating the corpora
ton tax in lieu Of income tax would be made
easier II the President sent to Congress special
message outlining. for the benefit of all mem
bers Of Congress and for the public his views
as expressed to them The President consulted
the Senate leaders. satisfied himself that they
| were absolutely in earnest in their purpose TO
enact the corporation tax amendment and then