New-York tribune., 1909-06-19
TAX MAY BE LIMITED.
TO EXEMPT SMALL cor
PORTIONS.
Presidents Plan Chief Topic at Cap
HOi-TOte on Income Tdr
POSTPONED.
IErnm The Tribune RlIreatI !

Washington June 1S.-The proposed tax on
| corporations continues to be the chief topic of
! discussion at both ends of the Capitol and at
the White House. The President is receiving
thousands of letters prasing his message and
| recommendations and the House leaders appear
| to be enthusiastic for the scheme which, they
assert will avert all danger of losing the House
next year. Mr.. Adrich hopes to report the cor
poration tax amendment from the Finance Com
mittee on Monday
Members of the Finance Committee are now
seriously considering the advisability of putting
into the draft handed them by the Attorney
General a limitation which will exclude corpora
tions whose net earnings fan below a given sum,
$1,000 a year being the figure most discussed.
although some would raise it to 10000.
The Senate leaders are somewhat concerned
the criticism of certain of the large news
papers whose opinions they respect, but they
admit that they are confronted by "Hobson's
choice" They must accept the income tax with
all the features of the corporation tax to which
objection is made. and their extension to the in
comes Of individuals, or else they must adopt
the tax the net earnings OF corporations
alone which is what the President recommends
Under these circumstances even those who dis
ike the corporation tax regard il the lesser
evil.
The leaders assert their entire confidence in
They are hearing from what they term their
incorporated constituents" protesting against
the proposition. but they also receiving
many letters from their unincorporated sup
porters praising it. and they believe that those
who oppose il would prefer II to the income tax
if they realized how preaching and inquisi-
toriaI that would be The fact is, although the
leaders are unwilling to admit il. that a major
ity of the Senate has escaped the control of the
organization and that it is only by the adop-
tion Of the Presidents proposition and through
his aid that they can prevent the enactment Of
an income tax which might be framed in a
most drastic manner once it became evident
that the leaders no longer controlled the situa-
ton.
The Bailey-Cummins income tax amendment
was a special order for to-day. but not
called up by the Texas Senator until shortly ne
fore the hour for adjournment Mr.. Cummins re-
newed his request for unanimous consent that
a direct vote be taken on the income tax amend
ment after the schedules finished Mr.. Al
drich would consent to this. He said that
under the rules of the Senate it would not be
proper to preclude the motion to refer Mr..
Lodge supported this position. Mr.. Aldrich said
he was perfectly willing that an agreement
should be made TO take up the income tax at
the close of work on the schedules and keep II
business. until disposed of. Mr.. McIaurin
wanted a vote taken to-day on the income tax
question.
I'VE have half an hour before adjournment;
why not devote it TO voting the income tax
question:" he asked.
My friend from Mississippi Is not inno-
cent as he looks" replied Mr.. AldriCh. The
Rhode Island Senator then explained that 1t
was his purpose TO offer the corporation tax
amendment recommended by the President as
substitute for the income amendment
This amendment being perfected by the
Finance Committee. and he hoped to have II
ready submit TO the Senate on Monday.
Mr.. Cummins intimated that he WAS opposed
10 the corporation tax, which he said was a
recognition Of the principle Of the income tax.
bat did not carry into effect the real purpose Of
such q tax Mr.. Aldrich Was trying to get
unanimous consent to have the Bailcy-Cummins
amendment made the order of business when
the schedules and free list are finished. without
committing himself to direct vote on the in
come tax. when the hour Of 4 o'clock was
reached and the Vice President declared the
Senate adjourned.