The Washington herald., 1909-06-18

While Senators generally are disposed
TO believe the recommendation made by
President Taft in his message will be
carried out by the Upper House. enough
developed yesterday to indicate that the
opposition TO Mr.. Taf.s suggestions VIII
not be merely perfunctory. and may re-.
suit in protracted debate.
The Republican insurgents are prepar-
ing for an assault on the proposition to
enable the States to amend the Federal
Constitution SO that a tax may be i'm
posed on private incomes, and they viii
be equally emphatic in attacking the
proposed addition 20 the tariff bill for
placing a per cent tax on the net IN
comes OF corporations.
Neither proposition. they contend. viii
satisfy those who want an immediate tax
on individual incomes or meet conditions
which the insurgents claim 70 exist
The Republican members Of the Finance
Committee held a meeting yesterday to
consider the character and scope OF the
legislation proposed by the President
May Meet Again.
The committeeman did not complete the
consideration OF the questions before
them. and will have at least one more
meeting prior TO the presentation Of the
joint resolution and the amendment 10
the Senate.
When the Senate on last Friday took up
the pending income tax amendments in
accordance with their previous agree
msnt. Senator Aldrich moved a postpone
ment Of action until to-day It was de-
cided yesterday by Mr.. Aldrich and his
heutenants that there should be q further
postpOnement. and when the time arrives
to-day to vote on the income tax question
Mr.. Aldrich viii move another postpone
ment until next Monday.
In taking this course Mr.. Aidrich will
save himself from tho charge OF incon-
s!stency- He has maintained all along
that the time 70 vote on any amendment
proposing 10 raise additional revenue by
the imposition OF a direct tax was after
all the regular methods Of the tariff bill
had been disposed OF by the Senate
AS this disposition has not been made,
and VIII not be made by this afternoon,
he and his advisers hold that another
postpone1nent Is desirable. Although the
regular Republican Senators, with Mr.
Aldrich in command, could begin the fray
to-day II they so desired. they are glad,
apparently, to obtain few days Of grace
az NAAN@ ~ 6sfN hAASAAA RAEAAAl Va llAl1E 4OI
the consideration Of the important meas
ures which viii be proposed as a result
Of President TaSt's recommendation.
II Is acknowledged on ell sides that the
task confronting the Republican members
OF the Finance Committee. IN drafting an
anlendment imposing a per cent tax on
the incomes OF corporations Is not easy
TO carry oct with satisfaction to them
selves and % those whose support they
hope 90 gain for the amendment.
Criticism has been begun already. not
only In the ranks OF the Republican IN
surgents and among the Democrats, but
also among the Republican regulars,
Some Senators received many kilograms
protesting against the proposed corpora
ton tax.
One Min Objection.
One Of the main objections TO the sug-
gested legislation Is that It does not
contemplate taxing partnerships or un-
Incorporated associations, and for thai
reason would be discriminatory IN its
effects. Other grounds Of opposition arS
that it will put an unnecessary burden
on corporations already heavily taxed
and viii curtan the incomes OF q great
many people OF small means who are de-
pendent for support on dividends paid or
a few shares OF corporation stock.
The Presidents recommendation that a
tax on the net income OF corporations
be imposed as a means OF raising revenue
has produced an anomalous condition iI
the Senate. This suggested legislation
although regarded by many Senators as
more drastic and far-rcaching than any.
thing attempted by the Roosevelt admin.
istration, IS being supported Loyalty by
those in the Senate who fought 70 the
extent Of their ability against the radL
cal features Of the railway rate Iegis-
lation OF three years ago, which Mr.
Roosevelt advocated
i, can be readily seen that the condi-
tions prevailing in the Senate are al
awry. The Democrats win furnish Their
quota OF anomaly. Some OF them Intend
TO oppose the per cent corporation
tax. while others win support It. main
tanning that TO do otherwise would be In.
consistent with Democratic doctrine
The Democratic Senators WEDNESDAY
held q conference" which is another
name for a party caucus, 10 discuss tn,
proposed corporation tax and its effect!
on the income tax amendment which
the Democrats put forward as a party
measure at the beginning OF the tariff
struggle in the Senate. The conference
which lasted two hours. was behint
closed doors and did not develop any ex
citing features. Not more than a dozel
Senators were there at the end.
In the course OF the discussion the fec
was disclosed that several Of the Demo
cratic Senators were doubtful about tn,
merits OF the proposed corporation tax
Thcy were all agreed that having pu
forward the income tax amendment al
party measure they should adhere I,
It as a matter Of party expediency {,
the extent OF insisting on a direct vot,
on t.
II the corporation tax amendment il
offered in the Senate as a substitute 70
the income tax amendment, which is al
ready pending. the adoption OF the sub