New-York tribune., 1909-06-13
THETAXON NETPROFITS
PRESIDENT FAVORING IT'S
ADOPTION.
Thinks II WouJd Mean Federal ST.
perDlsion of CorporationS-Strong
ODpoSition IN the Senate.
from The Tribune Bureau,l


washington June 12-That the President is
A.e-tirv IN favor Of the proposed tax on the net
n-ohts Ct corporations was the assurance given
- callers at the White House to-day who
sought TO ascertain the views Of the President
m the new proposition. Many Of them had first
heard ot II through these dispatches 10 The
Tribune Of this morning The fact that this IS
the Presidents own proposition gives it added
interest in the minds OF many members of both
houses Of Congress. while those members who
were loy-aI adherents of the policies Of the last
administration are enthusiastic over the Tart
.nsndnlent'
So strongly do the merits Of the proposition
,ppesI TO the President that he believes all ad-
vocates Of honest methods in corporations must
oouae to -ealize them if they only give the prop
osi-ioa due consideration It is said by its ad-
vocates that such law would compel the fling
hv sn corrorations Of q statement showing pre-
-iseIv what their net profits had been during the
vear: that falsihcation Of such statements would
bs attended by heavy penalties, that corpora
tions being creatures OF the state. their exist
.noe could not be concealed. and the necessity
o< verifying the accuracy Of the statements so
sled would carry with It the privilege OF eX-
s-,suine the books Of corporations by federal
oHcials
TIE President believes that no better oppor-
unity could be afforded 70 Congress 10 enact
MEASURE which Is essential 10 the proper round
ing out Of The policies OF the last adninlstra-
tion and rlu rebound 70 the greater credit Of
the Republican party than that now presented
Es has all along expressed the view that tax
on the incomes Of individuals should be only
last resort. and yet there are MANY advocates
of .uch : tax in the Senate. But by the SUBJ
stttution of : tax On the net profits Of corpora
tiors, he believes ample revenue will be raised
% avoid any deficiencies, and many who might
otherwise feel called upon 70 vote for an n
come tax viii be in 2 position to accoInP-lsh
far greater good by insuring federal lnspeclon
% tee books Of corporations
The situation in the Senate Is still someUh hat
chaotic Some Of the leaders, including Senator
aldrtch would sid=track al amendments for
special legislation Il they could Being unable
70 10 that they are for the Presidents plan
A number Of others have been converted 10 1he
p-esi6ents p-ouosition and are doing all in their
rover tc obtain is adoption The advocates OF
., income tax insist that they have the votes
"a eject its adoption and that their men cannot
n. niclzed off By the leaders. The leaders, now
ever. are confident that this is mistaken view.
They have not the slightest doubt that they can
convert mos. Of the advocates OF an income
tax especially i the President viii help then1'
Is hA VII i he lz asked 70 do so
But q rev difficulty has presented itself This
,s the oppossticn % some Of the wheel horses
of TIE Republican organization. such as Sena-
tors Penrese- Elk.ns and others. whose objec-
tons 70 the Presidents proposition are intensi-
red bv realization Of what it viii accomplish
IN the way OF federal supervision Of the trans
actions Of corporations. Senator Oliver is
understood 20 stand with his colleague in op-
position 70 the tax on net profits Of corporations.
snd do number Of others who are quietly
working against il. although they are not ready
openly 70 oppose II. Some Of these men say
they would sooner see an income tax enacted
because of the chance Of il being declared un-
constitutional by the Supreme Court, and be
cause. IN their opinion. il Is better 70 probe the
affairs of individuals than O. corporations
Those Who take this view are especially diff
cuit 70 deal with. and are the occasion Of much
anxiety 10 the leaders
i now seems probable that the Finance Com
naittee VIII report an amendment embodying the
Presidents proposition. and that the plan to
tax the dividends or corporations viii be aban-
doned- i is possible that such amendment
nav cause considerable debate. The leaders
Will contest the imposition Of income tax 10
the last ditch and if. seems probable, they
ask the President 10 exert his influence with in
dividual Senators obtain votes for his plan, 1t
seems probable that IT will be adopted