The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-07-04
Former Senator Says Bill Is
Unconstitutional and En-
tirGIy Unnecessary
CORPORATIONS WILL HAVE
TO REVISE BOOKKEEPING
Operation of the Proposed Law Ac-
cordinq to the Ohioan Would Put
Corporations Fully Under
Government Control.

Cincinnati, July 3-(Special THE cor
poration income tax bill passed by the
United States Senate Friday to levy a
tax on the net income of all corporations
is. in the opinion OF former Senator Jo-
seph r. Foraker, the most far-reaching in
its effect of any legislation proposed in
many years. Foraker believes the bill is
unconstitutional. while taking cognizanze
of the fact that its trainers. Elihu Root,
Philander Knox. Attorney General Wick
ersham and President Taft are among
the foremost expontats of law in this
country.
The Ohioan makes mention of Tafts
declaration in re omnending the bill
that such legislation would place .ne
great corporations under the control OF
the federal government" Foraker as
serts that this fact is brought f, chilly to
rhc foregrouna He believes that tho eo-
GRAFTON of the proposed law would require
corporations of all kinds to keep books
according to prescribed regulations of the
government, thus to determine an equit-
able assessment.
Besides, the former senator in review
ing the bill, believes that such tax is
unnecessary. He calls attention to the
recent reports of the treasury department
showing that receipts are now greater
than expenditures. This healthy condi-
tion shows, he says 49, =
panic has passed
rapidly receding.
of this deficit of tn
be wiped out sooi 0s
completed its work ca
when, in his opinion.
will increase. Tht ##t.a H4 Hs
among legislators eaes5
thinks Foraker, is - .......1 reg
islation." Says the former senator:
Nothing SO far reaching has ever be-
fore been proposed. unless by those who
believe in the public ownership of all
kinds of public utilities and their ex-
treme propositions have no application
to private business.
Under this proposed statute every
corporation in the land will not only
have to keep books and make reports
as prescribed by the federal govern
ment. but those books will have to be
at all times open to inspection by gov
ernment inspectors and special agents
II know there are many people who
think that no business concern that Is
honest in the conduct of its business
should have any, objection to opening
up its books to supervising officials
and having its reports of its business
showing how much money it is making,
or how much money 1t may be losing,
on file as a public document, to inspec-
tion by government officials, and by
competitors in business, but such men
Will be found a rule to have had no
practical personal experience In the
conduct of business. They will, as q
rule, be found to be men who have
never felt the effects on a business or
ganization of a panic or of a period of
depression; who have never known
what 1t is to meet a pay roll in hard
times. when business Is dull and col
lections slow. They are generally men
who have had more to do with theo-
ries than with practices, and whose
conception of making living Is prac-
ticing law for fees. or holding office
for salaries, or writing muck rake ar
ticles for stipends.
This country was not made great by
that kind of man."