The Washington herald., 1909-05-04

The Senate jumped promptly from the
consideration Of the lumber duties yester-
,asay to a discussion Of the proposed in
come tax
After Senator Plies. OF Washington, had
talked for more than three hours in favor
OF maintaining the Dingley rate on lumber
to. protect that industry in the Pacific
Coass States. Senator Borah. Of Idaho. one
of the ablest Of the progressive" Republi-
cans. devoted two hours 70 discussing the
income tax he defended mat form Of
taxation. and raised question not only
as 70 the souudness OF the decision Of
the Supreme Court in the Pollock case.
holding the income tax law Of 1894 IN
constitutional, bat characterized the case
as moot and questioned the jurisdic-
ton Of the Supreme Court 10 hear it
In the course Of his speech Senator
Borah was questioned by Senator Root.
Of New York; Senator Lodge. Of Massa-
chusetts. and Senator Beveridge. Of Indi-
ana
Lodge Raises Objection.
Senator Lodge did not agree with Mr..
Borah's contention that the property OF
the country did not pay its just share Of
taxes. The Senator from Massachusetts
insisted that as a rule the property Of the
country bore the burden Of taxation. espe-
cially Of State and municipal taxes. He
cited as an illustration the city Of Bog
ton which had approximately 10000 legal
voters and only 1890 taxpayers.
Senator Borah retorted that the cor
porate wealth Of Boston was about s.. co.
aoe9oo, but that only S5n00o0 OF it was
taxed Senator Lodge expressed much
surprise at this statement. and later Sen
ator Borah corrected himself. saying that
he meant to say that s5oo.0o0.oO0 worth OF
corporate property in Boston. instead or
S5ee,oe0, was returned for taxation.
This satisfied Senator Lodge. apparent
y. after Senator Borah had stated that
Az NrA AAAo AA-AAN1 AAtAn LlaE ArNtlA VI d
Massachusetts State tax commissioner.
Senator Root interrupted TO offer an
explanation of the apparent disparity be-
tween the estimated corporate wealth Of
the States and the amount actually re-
turned for taxation. He said that cor
poratons paid taxes on all their property
as corporations. and that Il would hardly
be fair TO subject the shareholders in
such corporations 10 taxation again upon
the shares held in the aforesaid CORPORA
tions. To do so would be 10 impose
double taxation, Senator Root explained
Defends Corporations.
I think that. as a rule. the property Of
corporations does not escape taxation, -
observed Mr. Root
Senator Lodge confirmed Senator. Roots
suggestions in regard to double taxa
ton. and expressed the opinion that in
Massachusetts the corporations paid their
full share Of the taxes.
Under the laws Of that State. he ex-
planned. they could not well escape max
ing returns OF all kinds Of proDertv Of
which they were possessed. and he added
that Massachusetts, also had an Inherit
ance tax and an income tax. Senator
Borah said the argument against an in
come tax based on the suggestion Of
double taxation upon a COTpOration-s
wealth was ancient
1t is the same argument which Massa-
chusetts and New York have always en-
pioyed against an income tax said Rr.
Borah. and he quoted from Sumner and
Conkling-
Replying 10 the suggestion that the
wealth OF the country represented BY