The Washington herald., 1909-06-10

IN an EFFORT 70 bring together the var
ring elements among Republican sena-
tors and present a solid party front in
the passage OF the pending bin. Senator
Aldrich. the chairman Of the EIaancs
COMMITTEES, began yesterday canvass ot
the Senate 70 ascertain whether a com
mon ground OF agreement could bs
reached In the imposition Of tax on tas
earnings or the dividends OF corporations.
The proposal Tor this agreement coz
templates an abandonment OF the income
tax proposition What progress has beea
made has not been disclosed. but d.
eouraging predictions OF the result OF the
canvass are discounted by inside informs-
ton that has seemed 10 encourage thoss
Who have the matter IN hand
The suggestion of this plan to bring ths
Senate Republicans into harmony wzs
the direct outcome OF q conference he'd
between President Taft and Senator Ald-
rieh. The conference was held It IS un-
oerstooo- 81 the instance OF Mr.. Aldrich-
who explained 20 the President that ths
tine had arrived when It was necessary
for the Republicans in Congress. which
included those OF the House. 20 reach sn
understanding for the nnaI disposition q
the tari6 controversy
Taft IN Sympathy.
SIr- Aldrich. II is asserted. found NJ.
TAFT IN entire sympathy with his desire
that the pending tariff measure should be
enacted IN al Its parts by a solid sign-
nent OF Republican legislators. and not
certain provisions Tor which the Demo
Gratis could claim equal credit rirl. rhs
--epublicans. or, worse SIN. point 10 the
fact that il was the Democratic Sena-
tors and Representatives. fn co-operario,
with an handful OF tnsCrgelt Republicans
who had obtained important changes
ag1.-1st ---- votes Of the great majority
OF Republicans.
By agreement the Senate VIII to-day
take a vore On the pending income tax
amendment, and Z was particularly with
view 10 preventing Affirmative action
IN this regard that 1Ir. Aldrich sought
President TafJs advice and counsel Tbe
Senate leaders invitation 10 the Presl-
dent 70 make suggestions resulted in an
expression by the President IN favor u
the imposition of a tax on the dividends
OF corporations as a substitute for the
Income tax provision
Il Is understood tne President found
0Ir. Aldrich was unwilling 10 father an
amendment having that purpose in view
unless the tine for which the proposed
tax would be imposed was limited 10 two
years. Other plans for obtaining revenue
without resOrting 70 the imposition OF a
tax on incomes were discussed. and AIr.
A rah e
how the insurgent Republicans. nearly
all OF whom are committed virtually 10
an income tax. view suggestions for tax
/ ing corporate wealth
As matters stood last night. the radical
I Republicans OF the Senate are confront-
Ing the alternative OF two propositions
for obtaining revenue. either. II adopted.
70 be contingent on The abandonment OF
the attempt 10 write an income tax
amendment 81 the tariff bill One of
( these propositions Is Tor a tax OF per
( cent on the dividends Of corporations.
The other is To- a tax OF Der cent On
I TIE net earnings OF corporations over
+ Sloo--s Both seem, from surface fndica-
tons, % have met with disfsvor. but as
"a matter OF fact each has a certain
/ amount OF attractiveness TO some IL
I surgents. and there is a growing belief
y that one or the otner OF some new. propo-
siJiOn fer taxing corporations wiz bs
agreed on as Republican measure 10 b
substituted for the income tax
No Doubt Felt.
No doubt Is felt among adherents OF
/ the income tax that the supporters OF
( this proposition in the Senate have con-
/ siderable strength. In addition 10 the
out and out tnsurgent Republican Sera-
/ tors. who are for the income tax. two
+ or three Republican Senator's may vots
FOR it II the issue is placed before them
( squareIy.
4 These Senators and some OF the fasur-
gents would prefer. however. 20 join with
I the rest Of their party associates IN
adopting an amendment for the fmposi-
tion Of some form OF special taxation and
they see the chance for harmony IN the
4 proposals 70 tax the dividends OF corpora
tons or the net earnings Of corporations.
The main objection TO the latter propo-
si,ion IS that ways and means would
be found by corporations 10 eTade the law
and L might require a long tine and
much expensive machinery 10 ascertain
just what amount comprised the net earn
I ings OF every corporation taxable.
Some or The Democratic leaders who
have heard OF this proposal have taken
| 20 Il kindly. although they are not sat.
/ isfed 20 have the proposed tax on net
earnings limited 10 > per cent They
suggest a tax OF 8 per cent which. they
say. would yield about SSooeo.ooo. an
amount equal 10 the revenue expected
70 be derived from the income tax pro-
+ posed by Senator BSiley-
I But Senator CuIberson, the chosen
leader OF the Democrats. come out last
night IN A statement IN which he threw
/ cold water or the suggestion that the
/ income tax be abandoned for some other
/ form OF special taxation. This is what
/ he said
CulbersOn's Statement.
AT the beginning OF this discussion OF
I the tariff al this session the Democrats
met twice IN conference and the tariff.
as well as the income tax was fully dis
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