New-York tribune., 1909-05-26
TALK OF CORPORATION
TAX AMENDMENT.
Many Republican and Democratic
Senators BelieJed to Prefer
This to Income Tar.
rFrom NE Trfhune Rursar- :

the Cummins and Bailey income tax amend
ments to the Committee on Judiciary an
amendment embodying the Presidents PROPOSE
ton for per cent tax on the dividends Oe
corporations will be offered as a substitute. It
is believed that many Republicans who are Ia
vorably disposed to the income tax proposition
would prefer to vote for the tax on corporations.
which would be generally popular throughout
the country, and that the same is true OF a
number OF Democrats. Moreover, the tax on
corporation dividends would yield an annual
revenue Of probably not to exceed SzOOOOOOO,
whereas the income tax would WELD apprOxi-
mately $IOOOOOOO. and its adoption would re-
quire a review Of practically the entire tariff
bill and a scaling down Of the duties all along
the line in order to prevent the federal gov
ernmeut's taking too large a out Of cir
culation and accumulating a surplus too rap
idly.
The most interesting situation in connection
with the tariff bill is I at which attends the in
come tax proposition According TO information
which Senators AIdrich. Lodge and Crane sub
mitted to the President last night, the organ
izatiOn is still a few votes short Of the number
necessary to send the income tax amendments
to the Judiciary Committee Every effort Is
being made to remedy this situation. but it IS
still impossible to foresee the outcome There
IS no sign OF an agreement between Senator's
Bailey and Cummins over their divergent views
regarding income tax, but unless a majority
can be lined up for the reference Of both. or for
the corporation tax, il is more than probable
that one or the other will be added 70 the tariff
bill There will be no vote on either the Cum
Minis Bailey amendment until the schedules
Of the tariff bin have. been considered and dis
posed Of and not then until a day has been
agreed on for the final vote on the entire bill
There was a rumor to-day that Senator Adj
rich would agree 10 a vote on the income tax
areendment on June 10 This grew out Of the
fact that Mr.. Adrtch purposed. in the event that
Mr. Bailey carried out his threat u yesterday
to move the adoption of his amendment today.
10 move that June 10 be fixed as the day for the
vote. This he would have done. because under
the rules he would have been compelled 70 move
TO postpone indefinitely or 10 lay the amend
ment on the table" either Of wn'-h would nave
been equivalent 10 a motion % kill. or to post
pone 70 a date certain" He would have chosen
the last. but. had the time been still inopportuns
when June 10 arrived. he would have again
moved TO postpone the vote TO a later date. 4
motion to table the Bailey amendment would
not carry. but one to postpone voting on IL
would
CUMMINS AGAINST FORCING VOTE
Senator Cummins does not believe il advisable
To attempt TO force a vote on the income tax
proposition out Of order. and he realizes that it
will not be in order until the schedules are dis
posed of. He entertains no fear that any -,e-
pubCans who now favor the income tax viI
get away He maintains that there are seven
teen Republicans for the proposition. and they
Will remain steadfast TO the end On the other
hand. he admits that unless all except two
Democrats vote for the amendment it will be
lost or referred To the judiciary Committee.
which amounts TO the same thing
Senator Bailey did not carry out is threat Ue
moving the adoption Of his amendment to-day.
and this is understood 10 be due 10 the fact
that there is a growing suspicion that Mr..
Bailey is not entirely frank with his Demo-
cratic colleagues. and not wholly sincere in hts
advocacy of an income tax amendment Thers
are some features OF the situation. as well as
Of his course in the past. which prompt soma
Of Mr. Baiey's party colleagues 70 believe hat
he has an understanding with Mr. Aldrich-
Those who take this view point 70 the fact
that il is not for the best interests OF the IL
come tax proposition to press it at this time
They maintain that singleness Of purpose would
prompt the Texan rather 10 bide his time arI
press for a vote at a more suitable opportunity.
precisely as Senator Cummins is doing Sena-
tor Cummius. by the way. is winning the re-
spect Of the Senate leaders both sides OF he
chamber. despite the fact that some Of his
,iev,s are unaIterabIy and radically opposed TO
theirs.
-rbosa of the leaders who called on the Pres
,4e,+ last night told him that if the income tax
we're added to the tariff bill Con-
ras would he in session at least al through
the month of August attempting % adjust the
schedules 10 the added revenue producing power
~ the bill They said that an individual amend
r,ent which would add s70.00O000 to the revenus
Drodr1cing feature of the bill would render i'm
neratfve reductions of the duties all alcng tbS
line Such items as the duty on iron ore. lead.
ZINC and other articles which produce c0nsid-
srable revenue would have % be stricken out
and a genera reduction even more radical than
: urged by the most progressive would have
10 be made.
NANS. OPPOSE INHERITANCE TAX
Some consideration has been given to the sd-
disability of offering the inheritance tax rropo-
.tion as a substitute for the income tax amend
nents II they cannot be sent to the Judiciary
committee but there is a serious disadyantage
bout that proposition. in that many Democrats
md some Republicans are seriously opposed to
he inheritance tax on the ground that il would
Interfere with source of revenue which prop
.rlv belongs to the states. except in times Of
The tax on the dividends of cor
,orations. however is bound to be popular
throughout the country and with both parties
I will be difficult for any Senator or Repre-
entative 70 go back to his state district aaf
xpIain why he chose to tax the incomes of prf-
-ate individuals in preference to the dividends
# the hated corporations For that reason il =
,eIieved that many Democrats would think long
,efore they would vote against the corporation
AK while number of Republicans whose Iegis-
atures have inGorsed the income tax or Who
eel strong pressure from home to vote for it.
Ould easily respond to those demands by a vote