The Republican journal. [volume] (Belfast, Me.) 1829-current, 1909-07-01
Washington Letter.

WASHINGTON, D. c., June 18th. 1t is now
confidently expected that another week
will see the tariff bill in conference, and
there are whispers to the effect that the
conferees who will settle the matter I'M
derstand each other and that they will.
get together very quickly on many sched-
ules. 1t is not expected, however, that
the bill will reach the President before
July 18th.
1t Can be very confidently predicted
that the so-called Bailey-C ummins in
come tax amendment will not be incor-
porated in the Senate bill, although there
| NAV be an amendment on resolution
introduced looking to an amendment to
the Constitution, which shall in the future
admit of an income tax. There is no
doubt that the sentiment in favor OF an
income tax has increased very substan-
TALLY during the last few years, although
it does not seem probable that such tax
will be found on our statutes for Some
time. 1t now looks as if tax on the
net receipts or dividends of corporations
may be found in the new tariff bill, which
will be sort of compromise between an
income tax and national tax on inherit
ance. Such a tax on the dividends of
corporations should produce revenue
upward of $50, 900, 900, which, with the
duty on imports and internal revenue,
| SHOULD be sufficient to meet the expenses
of the Government.
Should the question of an income tax
through resolution, looking to an amend
ment of the Constitution be submitted to
the States, it is doubtful if two-thirds
would favor it. But it seems the best
way to get the sentiment of the whole
people of the country.
1t is believed that the tariff law as it is
being shaped will produce sufficient rev.
enue, particularly as the Department
Chiefs are continuing to cut down the
estimates. 1t seems likely now that the
next appropriation bills may show re-
duction of as much as 500, 900, 900, and
should this prove true a very substantial
surplus should be gained and continued
for several years to come.
With the tariff bill out of the way an
ticipation will be keen concerning the
legislation of next winter. 1t is under
stood that the President is giving very
serious attention to the matter of So
called corporation legislation, and his
recommendations at the opening of the
next session of Congress will be looked
| forward to with much interest, but Presl-
dent Taft will not be governed by senti-
naent, he will be governed by the Consti-
tuition, and whatever legislation he may
call for will not be such as to injure any
railroad or industrial corporation pursu-
| ing honest methods.
The condition of the stock markets for
several weeks and the plans of the differ
ent railroads of the country show that
thew have no fear of President Taft
recommending any legislation which will
work an injury and a hardship to their
stockholders.
1t is possible that in the near future
some method of government control or
supervision will be worked out, particu-
larly affecting DISQUALIFICATION and the
uniform conduct of business. Undoubt-
eddy many evils have grown out of our
recent consolidation methods, and these
evils if possible, will be eradicated, or at
least modified to considerable extent,
but the subject is vast one and the peo-
pie OF the country feel confident that
both the President and Congress will act
very slowly in bringing about any radical
changes.
Already there are rumors of coming
changes in the Cabinet, but these cannot
be verified and it is not thought that any
change will occur at least until after the
opening of the next session of Congress.
1t is known, however, that there are
many conflicting views in the Cabinet,
and it may be hard to harmonic and
reconcile them all to each other and to
those of the President, but for the time
being there has been no open manifesto
ed for in the near future. Mr.. Taft is
} now pursuing the even tenor of his way
and continues to be President, and moth
ing more or less, acting always in his
. most calm and judicious manner, and in
spite of all newspaper claims to the con-
trary, he is Interfering in no manner
with the other Departments of the Gov
= eminent,
The Government receipts for the month
continue to exceed the expenditures, and
> will undoubtedly show a good surplus.
: And it can still be predicted that the
! deficit for the year will not exceed $780,
t 900, 900, and perhaps not 800, 900, OOO
AS regards general business conditions
t throughout the country they continue to
improve in all lines of industry, and it is
: felt more and more every day that we
are on the eve of a new era of prosperi-
ty, which, il the crops are up to their
usual output, will be perhaps the best in
our history.