New-York tribune., 1909-06-30

sHc Order OF Railway Trainu1en- the ROYAL Az
.ansnn and similar bodies regarding the scope
u the tex Nr Flint replied that in his opinion.
shese orders were safeguarded against taxation
.rnde~ the amendment II was intended To IN
rlude the big insurance companies. whether
mutual or stock companies, he said, and 10 draw
p line between corporation where insurance
was the principal business and & corporation
where insurance was merely incident Mr
Fsulkeley didn't like this definition, saying that
insurance companies were now taxed in every
state where they did business. To require Them
20 paw per cent on their net earnings he SAID,
would be double taxation. In this respect the
amendment was open 10 the objection which the
COMMITTEES made against inheritance tax.
Mr.. Foster wanted 20 know II building and
loan associations would have TO pay the tax
Mr. Flint said he doubted if many Of them
would be required 10 pay the tax. for he did not
.rink they were organized for profit Nr- Aldrich
snteriected that If building and loan assocta-
tions were organized for profit there was no
reason why they should be exempt from taxa
1fon Senators Nelson and Crawford said that
building and loan associations when organized
with view to making profits should be taxed
the same other corporations Some OF the
srossest frauds in the history of South Dakota
had been committed by building and loan asso-
riations against the poor people Of that state
Mr Crawford said.
N- Flint said IL was impossible 70 make an
accurate estimate Of how much revenue tax OF
z per cent would weld.
as TO TIE BASIS OF THE TAX
He vas satisfied, he said that the Presidents
estimate Of s25.oOoOoo year too low and
;shat from s4o.ooo.o0o 10 s5O.0o0000 year was
tad Ly7Ny
the basis of the tax
TT is based on the privilege Of doing bust
rness~ replied Mr.. Flint
Not for being a corporation" asked Mr.
lBorah
No on the privilege Of doing business" Mr.
sFiint reiterated
When Mr.. Flint closed Mr. Dixon made an
erhsustive argument in favor Of an inheritance
tax He was convinced he said, that sufficient
5~.verue would not Re raised under the new
scrrstonn duties. and he regarded tax on in
freyitsnces as ideal method Of increasing
s.he income OF the government. There was no
6ouht ~ its validity. he said. and it would be
--ore easily enforced than an income or cor
-orstion tax Mr.. Dixon said he would yield
~ Mr Taft's wishes however. and vote for the
.,.o-norstion tax. as its publicity feature com
-aended It 70 him.
Nr Owen said he was in favor Of both an IN
.rorns and an inheritance tax, and at the proper
time he would offer an amendment for a pro
-sressive inheritance tax ranging from l 70 100
,,sr cent He frankly admitted that one Of the
-u-noses Of his amendment 10 redistribute
1.alth
Tn. first speech against the corporation taT
vas made by Mr.. Curnins. co-author IF the
Cu-arains- Bailey income tax amendment. After
speaking for an hour and laying the foundation
for his critical analysis Of the pending meas
,-e +hs Iowa Senator yielded the floor until to
-norrow He said that the proposed amendment
was income tax legislation. but had many OBJ
sections that could not be raised against the
s-,ens-oent offered hv Mr. Bailey and himself.
II was with regret he said that he opposed the
-scouar,endations IF the President but he
s5oubted If Mr. Taft fully comprehended the
measure in it's entirety The proposed tax, Mr.
C11rnr1,ns said. was fundamentally wrong and
81 ccrtravention Of the most sacred traditions
r. the American people. II was not fair, equal
CT uniform and was subject TO all the constitu-
1ional objections which had been made against
an income tax II had one constitutional Oh
lection peculiar 20 itself he added
Before the corporation tax amendment was
taken up the Senate devoted four hours to a
running debate on the Tilmsn amendment for
tax Of 10 cents q pound tea The advocates
Of the amendment included Senators Tillnan.
Carter HeyhurT. Bailey. Bradley, Perkins and
Smith. Of Michigan, fits critics being Senators
HcIaurin. shively. Dixon and Jones. Several
Republican Senators tried to have Mr. TiIman
admit that he favored this tax as protection
TO q domestic industry in his state. Il want it
the Republican side protective measure
and 7 want It on the Democratic side as
revenue measure" said Nr Tillman amid
laughter.
hn oT-1er Sr,1c-,
IS Mr. Bailey being the only Democrat voting
with the South Carolinian. The following Re
pabncans voted for the amendment: Senators
Bradley, Bulkeley, Burnham. Carter Dick Du
Pont Elkins Frye. Gallinger, Hepburn. NIXON
Perkins Root, Scott. Smith. Of Michigan. and
Wet-nore. MI Smith. of Michigan gave noticA
that when the bill was reported 20 the Senate
Re would move an amendment providing for
/ bounty of 10 cents z pound on tea