New-York tribune., 1909-06-20
Con stant Reader Tells Him
What He Missed in
Last Weeks Papers.

You gave ne 10 understand when last We met"
said Busy Man. as he handed Constant Reader his
cigar case al their club last night that Congress
would soon finish debating the tariff bill. Have the
Senators been acting in such way as TO sustain
your reputation for veracity my friend?"
I fear not. replied Constant Reader. sadly. I
had bright hopes Of them in the early part of the
week. when they passed the amendments TO ad-
nit duty free paintings and sculptures more than
twenty years old and collections illustrating the
progress Of the arts more than hundred years
old. also when they adopted the amendment for
tie annual free admission from the Philippines of
7e6oo.ooo cigars and 100000 OF sugar. also
when they agreed a tariff Of 81 ton on print
paper: hut then President Taft sent MESA ge
70 Congress recommending legislation looking to
The placing OF 4 per cent tax on the net income
Of corporations. which he calls an excise tax and
also recommending the adoption Of an amendment
10 the Constitution providing for The imposition Of
IN income TAX. without an appOrtiOnmeut among
The several states. and / fear the prospects
are that the debate VIII he prolonged by speeches
upon the merits Of both these taxes although the
tariff schedules may he completed before the taxes
are discussed at all"
I'm no lawyer commented Busy Man ..blJt
% bet q hat that many corporation could escape
that FAX OF the ground that lis earnings in whole
oT iH part come from the land. thus making the
tax direct tax instead OF an excise tax There is
also 'hls objection on the ground Of public policy
that since corporations are alread. having state
and local taxes putting this additional burden on
them may result in poorer service to the public or
higher rates Consider. also. the nuisance and
perhaps worse. as well The great expense Of
putting d swarm of federal inspectors and book
Keepers uosine into the books OF corporations all
over the land 10 see that the government is not de-
frauded and il seems if you must agree with me
maj a stamp tax on bank checks and commercial
paper. which almost collects itself would be far
better than either Of the proposed levies More
over. Goes net income mean net earnings or net
Yrodts2 WHO shall say What has been going on
IN the business world outside of Washington"
ne OF the most talked OF features OF the week 90.
responded Constant Reader. was the report OF
Governor Hughes's so-caIled Stock Exchange COM
snd investigation hftysix sessions OF the full com
nittee and probably many more OF the stb-con,-
ruitteey. arrived al n unanimous conclusion or
rather. several OF tienI. .ertail abuses more or
less vel known for xsars recognized in the
cSew York Stock Exchange. and more Of them in
fhe smalle: exchanges. and some legislation was
recomHiended- though of q moderate character
Speculation. the commission found performs a
practically Indispensable service business OF
7lte country Trading on margin and selling
sAc~t' TIC commission justifes hut concerning
such things corners wash sales and matched
cr2egs. 5he exchanges arc warn"d that If they
fie,Hseives do '"t limit abolish these harmful
features public .iil iuss- upon legislation % a
ss.stic Kind"
80 the exchanges nc relied upon 20 do
fs1elr own Eousocloaning are they?7 commented
l.asy Man. These abuses have becn known and
iles ~ for wears. haven't they? DO YOU know Of
scT way - iudE of the fltlro except by renlcn1-
= rtilz t.c past
XIV. Ion't e. pessirlistlc.r retorted constant
Esaatr. Alrcaay there is serious talk OF reform