Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1909-06-10
New Plan Result of Conference with
President Taft.
ATTITUDE IS IN DOUBT
PrOgressives Are sohcitous for His
Powerful Aid.
OPPOSITION MAY ASK DELAY
Effort on Foot 60 Unite All Repub-
hcSn Factions In senate In Oppo-
sition TO various Democratic
Schemes.


WASHINGTON. June s.--The senate was
canvassed today TO determine what would
be the fate of a proposition to place a tax
upon dividends Of corporations as a sub
stitute for an income tax, end Il was de.
veloped that there was an overwhelmine
sentiment In opposition to suoh a plan.
Practically all of those who opposed the
income tax idea are against the corporation
tax and the supporters OF the income tax
refuse absolutely to he sidetracked from
the principle FOR which they are contend
ing.
After conference at the White House
yesterday between President Taft and SEN
ator Aldrioh. It was stated that the finance
committee would consent to placing a z
per cent tax upon the net earnings OF cor
porstons II the supporters of the income
tax amendments would accept 1t and with
draw their proposition. This suggestion,
1t is declared came from President Taft
and was designed TO prevent a split in the
republican party over the income tax
feature.
Mr.. Aldrich communicated the plan to
Senators Cummins and Borah, who are the
leaders Of the progressive republicans. who
have favored the. Cummlns income tax
amendment. These senator's consulted with
their colleagues and as a result the plan
was repudiated by them. Mr.. Aldrich 7on-
suited also with republican leaders, VINO
are opposed to the income tax idea and
he had no better success with that faction
than with the progressives
Income Tax Vote Today.
BY an order of the senate the income tax
proposition will come up tomorrow for a
vote, but in view Of the unsettled condi-
action. and the Indications are that prac-
tically all of the republicans will support
the postponement. 1t is expected that
Senator Bailey will protes' vigorously
against this delay and that some general
debate on the income tax amendment will
result. f.l
1t Is not expected that Senator Aldrleh
will move to refer the income tax amend-
ment to the Judiciary COMMITTEES, but that
he will leave IL before the senate so that
further conference may be had between
} the two factions OF the republican MEM
; bers of the senate.
The canvass of the senate in relation TO
: the corporation tax plan developed also
that there is decided opposition to the in
herltance tax feature, which was adopted
by the house at the behest OF President
Taft and was stricken out OF the bill by the
senate committee on finance. The income
tax advocates are encouraged by this show
ing and II was said today that II President
Taft desires to gain their support he must
lend his influence to aid them In obtain
ing some agreement by which the income
tax feature shall be brought 10 a vote.
In view OF the short time that remains
/, before the date popularity fixed in the pub
lie mind for adjournment OF the present
session, some of the income tax advocates
, are not Inclined to insist upon vote at
, the present session II there can be coupled
, with the motion to refer the proposition
, to the judiciary committee instructions
! that the committee shall report to the
/ senate early in the next regular session.
They will make an effort to incorporate
/ instructions OF that character II any mo-
} ton is made to reHer the amendments
to committee.
Trying to Get Together.
In the next few days a number Of oOn-
ferences win be held between the two re-
publican factions In the senate, between
senate and house leaders, and between
supporters and opponents Of the income
tax amendment and President Taft, The
position taken by the democrats In the
senate on the subject OF the income tax
has convinced republican leaders that some
party policy must be worked out Of the
congIomeration OF ideas on this question.
So far as the pending tariff bill is con-
cerned some republican leaders fear that
any plan TO tax the net earnings Of cor
porations might be hailed as q democratic
! idea. for the reason that Senator Daniel
has pending an amendment TO do that very
thing. His amendment was adopted soon
after the bill was reported from committee.
, During the afternoon some doubt was ex-
pressed in formal discussion OF the cor
- poration taxation proposition as TO whether
President Taft favored a tax on dividends
OF a tax on the net earnings OF corpora
tions over 100000 Both plans were dis
cussed.
Whichever idea is offered al the White
r House It is added that no support could
be found among the senators who advo-
cate the adoption of an amendment pro-
viding for a tax on incomes.
% Attitude of Democrats.
y Mr.. Culberson, the minority leader, In q
~ statement issued tonight called attention
TO the democratic attitude in relation to an
= income tax. He said:
y AT the beginning Of the discussion OF
the tariff al this session the democrats
le met twice in conference and the tariff gen
orally, as well an income tax, was fully
81 discussed. There was comparatively a full
sr attendance, and the decision was unani-
IN nous upon the subject. While no formal
resolution was adopted or agreement en-
al tered into, IL was formally agreed to sup
ct port the income amendment which had
TX been prepared by Senator Bailey ana wai
IS to be introduced by him. So far
e know or believe there has been no change
IN sentiment and ! have no doubt there
'n fore. that all democrats will support th'
ar amendment and viii insist upon a promp
ht disposition Of 4 tomorrow"
T. At the night session republican leader
es we're engaged IN trying 10 harmoniEe th'
differences concerning an income tax o
al corporation tax law. II vas saggestes
by some OF the leaders who are Oppased Z,