Omaha daily bee., 1909-07-08
Income Tax is Forced TO Direct Vote
and Defeated.
CORPORATION TAX AMENDED
Senator Clapp Wins Fight to Include
Holding" Companies.
CUSTOMS COURT IS ADOPTED
Many Senators AssaiI Various Por-
tiOns of Bill, bat AIdrich and
His Committee Control
the Situation.

WASHINGTON, July with a general
understanding that the final vote in the
enate on the tariff bill shall be taken
" 4 o'clock tomorrow, the senate ad-
journed at o'clock this evening In pleas
ant anticipation of the early conclusion
Of the labors OF the special session of con-
gress.
The arrangement for a vote tomorrow
was reached after much consultation, and
was only arrived at as an alternative for a
night session tonight. Because of the pos
slbie effect on the tobacco schedule there
was no effort to obtain formal assent in
open senate to the proposition to fix a
time for a vote, but so far as the can
vassers OF the senate could ascertain to-
night there was no indication of objection
to final adjournment tomorrow.
The day was a busy one with the pros
pect that tomorrow will be as fully occu-
pied as was the long session today. It is
expected that the bill as perfected will
receive practically all, though not all, of
the republican votes, while It is Snder-
stood that all the democratic votes with
the exception of the vote Of Senator Nc
Emery of Louisiana, will be cast against it.
When passed the measure will be hurried
over to the house as expeditiously as pos
sible, and 1t is expected that the house
will be in session Friday morning in the
hope Of receiving It. No plan has been
arranged by the house leaders, but It is
probable that they will agree tomorrow to
recess until Friday to receive the bill.
Income Tax Finally Beaten.
The income tax question, including the
corporation tax provision and inheritance
taxes, received much attention in the senate
! today, and the straight income takers were
afforded the opportunity. upon which they
have so long insisted. to get vote in favor
OF the income tax as opposed to the cor
poration tax.
Senator Bailey moved his income tax as
substitute for the finance committees pro-
vision and, without debate, a vote was
taken upon it. and IT was rejected by q
majority OF 10, the ballot standing IS to AZ.
The republicans voting for the income tar
were Borah, Bristow, CIapp, Cummins and
La Toilette. All the negative votes were
cast by republicans.
Fight on Corporation Tax.
With the corporation tax provision thus
| securely established as part OF the tariff
! bill. there was considerable effort to amend
1t, and in one notable case this effort wa,
successful. Senator Clspp Of Minnesota hai
been a severe critic of the provision evei
since its introduction because It excluded
holding companies. He renewed his criti
cism today and was supported In his view
| oy other senators.
Mr.. Dolliver declared that It would b
| difficult to levy any tax that would not be
come a burden upon the people. Referring
to the inheritance tax propositions, he con
tinued:
I'VE say to our people by this form o
] tax work on with the consciousness tina
the government will be represented at you
funeral but not as mourners TO turn bacl
| to the treasury the accumulations Of you
lifetime"
He declared that the pending corporation
tax was SO drawn 'as to produce iniquitie
and Injustice"
1t was not wise and would not be palat
able to the American people, he said, tC
enact a law to tax business corporations
over the entire country and to exempt th'
great holding companies from any tax. ."
cannot believe" said Mr.. Dolliver, "tha
it was in the mind or the heart of oul
great and popular president to exemp
from the burdens of this system of taxa
ton the class of holding corporations"
The ultipate result was the acceptance
by Senator Aldrich of an amendment b!
Mr.. Clapp striking out The exemption o
such companies. Assurance was also giveI
that every effort would be made to retain
the amendment In conference
Customs Court Adopted.
Next to the income tax the discussion
Of the customs court was the big featur,
Of the days work. The court was at
tackled as in the interests of the cities II
which it would sit, and Of the government
and as opposed to the interests OF the i'm
CONTINUED on second Page.)