The Birmingham age-herald., 1909-07-02
SENATE DRAWING
 VERY NEAR 4 VOTE
Suggestion of Voting on Tariff
 Creates a Furry
OBJECTION IS RAISED
Opposition to Corporation Tax Appears To Be the Principal Factor Op- eratlng Against Settlement
 of Tariff Affairs.

within one" today of agreeing to vote next Tuesday on the entire income tax amendment to the tariff bill, including the corporation tax substitute. The com pact was prevented by the objection of Senator Bulkey and his opposition aroused no little feeling.
 The proposition took the form of a re- i quest from Senator Flint in the absence l of Senator Aldrich, in charge of the tariff bill for unanimous consent vote on the Bailey-Cummins income tax amendment and all of the amendments to the amend- ment at 12 o'clock next Tuesday with 1 the understanding that the Senate should l remain in session until all these questions l should be disposed of. The suggestion cre- ] ated a general furry in the Senate. There was the usual animated gathering In the center aisle.
 1 A number of senators asked to be heard and the proceeding for brief time took on the appearance of a general conversa- i ton at a sewing bee. One senator after another expressed his consent to the l proposition until for a few minutes 1t ] looked as if all objections would be brushed away and all factions satisfied. l Just as the Vice President was stating l the agreement for about the third time, l MT. Bulkely loomed up and proceeded l to say that he could not agree that the l vote should be taken at the time speci- 1 fled. He did not then give his reason and he was immediately beset by dozen or more senators in the hope of prevailing 1 upon him to desst from his opposition. It 1 turned out that while he was opposed to l the corporation tax amendment, this was l not his real reason, but that he expected l to be absent from the city next Tuesday and did not want the vote recorded while 1 he was away It seems that some of MT. l Bulkelys constituents are very strongly l opposed to the corporation provision and 1 sharing in their feeling he desires to make as strong a fight as possible against it. ] Therefore, he desires to be on hand up 1 to the last moment, and in view of the l fact that he expects to be in Connecticut 1 with the President next Tuesday, he l found it quite impossible to give his at tention to the amendment on that day. He did not, therefore, change his mind. 1 but when the Senate adjourned many of l the Connecticut senator's colleagues were l hopeful that he might be found more yielding tomorrow. It was evident when Senator Flint made his proposition that the discussion of the income tax ques- ton has been almost, if not quite exhaust | ed. There were today several speeches | for and against the measure, MT. Borah | leading off in favor of the income tax, l but opposed to the corporation tax, and | MT Root following on the other side and advocating the corporation tax bur l opposing the income tax. Other speakers l of the day were Senator Clay and Senator 1 owen, favoring income tax, with incidep- tai remarks by Senator Flint and others. l It was evident throughout the day that the corporation tax question had failed | to arouse as much interest in the Senate l as had been expected and some sugges- tions were heard in support of a proposi- ton looking to the postponement of the | entire income tax question, including cor poration tax and inheritance tax until next session. The fact, however, that the
 President is strongly urging the tax on | corporations stood in the way of the ac- ceptance of any suggestion of this kind and it was not seriously urged.
 Senator Roots Views.
 Advocating the pending provision for | a corporation tax as opposed to the | Bailey -Cummins income tax amendment, MT. Root said:
 "The corporation tax saves all of the
 provisions of the income tax that are
 constitutional, and can be enforced The income tax is, to my mind, unwise, un- | just and unconstitutional, while the cor | poration tax is wise, just and constitu-
 tional."
 He viewed the income tax as a means
 for dislodging the protective tariff and
 declared that In his judgment the pro-
 posed income tax would raise from s15o.-
 GOO 900 to $200 ,00O000 annually.
 q think" said the New York senator.
 'the United States ought to have the
 power to lay and collect an income tax
 because I want my country to have. <ne
 power to summon every dollar possible
 to it's relief in times of stress'
 He said he would advocate the approval
 by the legislature of New York of the
 proposed constitutional amendment for
 that purpose.
 Replying to MT. Bacon, MT. Root said | those who had considered and framed the
 pending corporation tax had agreed that
 they could not reach the bonds of corpor-
 ations in the hands of bondholders con-
 sistent with the decisions of the supreme | court.
 l MT Bacon suggested that 1t would be l within the power of these corporations
 to convert their stock into bonds and
 thus defeat the payment of the tax He { wished to know whether that could be 1 prevented.
 It was to avoid that Mir Root said
 that the provision was placed in the
 amendment preventing the payment of
 interest upon indebtedness in excess of the | amount of it's capital stock
 l MT RacOn though this was not atlff7-
 cfent as the amount of stock of the cor
 porations could often be increased by 6 mere resolution of board of directors.
 Severely criticising the corporation tas
 amendment, Senator C1app called atten-
 ton to the Presidents message in which
 loan associations should be excepted from
 the provisions of such measure. And yet" he said, this amendment
 which we are told he approved includet
 savings banks and building and loan as
 sociatons."
 The publicity feature of the corpor T. ation tax measure, he said. provided onl. z for honest returns for the purpose of tax ation. It was not formed, he said, t bring out any secret agreements tha might exist between corporations. am was fin fact a mere myth. Denouncing tn r corporation tax as plan to shift tn f 1 burden of taxation upon consumers, MT | Clapp predicted it's early repeal when tn I | people come to understand its real mean : ing.
 f Interpreting the language of the con . stitution relating to the laying of direct a | taxes as referring to the states and no , 1 to individuals Senator Owen declared tha