Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-06-30
lie Advoaatcs Tax on Corporations rs
Most Effective Mcats OF De
fcating Income Tax.

Washington, June 90. food Of tele-
grams. nearly eguifilng that which
swamped the Wircs during the anti
railroad pass fight, is pouring in upon
senators in opposition to the corpora
lion tax
Most of the kilograms come from
5 persons Interested in building and loan
h .sssociationsi. but practically every
character Of corporation is represented.
Most Of tho senators received from Il
10 kilograms today, and some at
! least ic9,
In S;icW OF tile vehement tone OF tic
protests. and the fact that the tele-s
4 RfaniS are from business encnshishly 5tc-
4 specred III their communities. some sen
;itofs pledged to vote for the admins
tration program sud today that they
are feeling some concern as$to the wis
dom of their course.
& Unless there IS change of senti-
snent throughout the country, would
not surprise many members OF Con-
I;ress If the corporation tux should be
abandoned in conference and the IN
u heritailce tax feature, which Was2uuopt-5
cd blythe house, should be restored. In
the event of such action, the indic-l-
lions are that the senate would vote j is
acceptance. I'll
9TH With the tariff schedules disposed of
& and the door locked against the present
intrusion OF the amendments, the SEN
ate today began the consideration Of
the income tax and corporation tax
questions AS connected with the tariff
4 bill.
The question OF taxing incomes re-
Il ce!Hed attention while the tea provision
was under consideration, and it was
then that the most interesting occur
rences of tho day took place. This was
Z the announcement of tlic3ieal attitude
of Chairman Aldrich q the finance
committee toward the ,,,poretion tax
provision which he hal introauced ut
the instance OF the president.
4SsIDRlcHts POSITION.
ii had been for some time reported.
that Mr.. Aldlich had become an adyo-5
cate of tax on the earnings of cor
sporations as the most effective means
of defeating u general income tax MI:
+ Aldrich$ stated his own position, which
si,wnss in accordance with the runors.s
HI confessed his advocacy Of the cor
IA poration3 tax as "a means OF defeating
the income tax. He also said he
thought for the next year or two there
would be q deficit in the treasury re-
u ,ceipts. which he was willing to have.
made good BY the income from the pro-45
posed corporation tax. With this serS-!
ice performed, he thought the Law could
and would be materially modified II not
q entirely repealed.
THIS declaration was seized upon by
the Democrats as Il confession that the
tax is Il mere sulbterfuga to
destroy the income tax. Mr., Aldrlck
denied, however, that he had Intended
TO characterize the corporation tax as a
4 subterfuge.
With only one amendment providing
for a duty of 105cents a pound on tea
I pending, 1t was supposed that the tariff
schedules would soon be disposed OIL
4 Senator rillman pressed so hard and SO
q, long for his provision that$i was after
22ao'ciock before a vote was taken. 4
s While the question#of tea remained.
y technically before the senate for a. long
time It was impoas!bla to keep the in
come taS and thescorporation tax ques-
Fl tions entirely in the background. They
s were referred to moro than once, and
at one time so Pointedly by senator
X Clay as to bring oilta most interesting
statement from Senator Aldrich. who.
as chairman OF the finance committee,
II presented the corporation tax amend.
mart,
PROBING; CHAIRMAN.
Senators Bailey and Clay were prod
l'tsi
tnittee andSaHpeared specially anxious
to know whether he would revise the
tar;ff schedules downward II the income
tax amendment should be adopted. to
lower the revenue from customs TO
an extent equal 10 that which would
he raised by the income tax. 1t was
4 in response to direct question from
Mr.. Clay that Mr., Aldrich responded.
Stating his position With reference
II to the corporation tax, he said, blunt
ii: Il Shall Note for the corporation
tax as 4 means OF aafeatinS the in
come tax
He added: i shall be perfectly frank
another reason The income of tie
government this wear viii show. a de-
tieit of $50, 100000. Next year there will
be II deficit Of sa5.ocp,1oo. am willing
that the deficit shall be taken care of
by q corporation tax, but at the end Of
two years it afoald either be REDUCED
4 to u no;niual amount or repealed
M L. Aillr;ch said he had not favored
as n permanent form. of taxation "a
tax which is sure TO destroy the pro-
tectiS,e system"
At once catching up the words of
the senator from Rhode Island. Nh,
Galley declared Mr. Aldrich had am
/ nourGed that his attitude in fayorinG
: q .'rs4-.ssp-s.tion tax WAS a mere subter-
ser the statement made by the
.xr-S 10. from Rhode Island, said MI
Bailey. those who favor an income
tax and do not join them in this subter-