Omaha daily bee., 1909-06-16
Substitute May Pass As Result Of
Long Conference.
IEsSAGE ON TOPIC IS EXPECTED
Senator Norris Brown Gives His Own
Views on Point.
BURKETT AND ALDRICH CLASH
Philippine Schedule Gives Rise 10
Another Acrimonious Clash Be
tween NcbrasIan and the
senate Leader.


WASHINGTON, June lh.-lSpeclal iele
gram )-withln the last twenty-four hours
a new and what may prove to be very
decided change in the tariff situation has
occurred President Taft, realizing. he
would have to take position on the tariff
debate and possibly outline n way to unite
the growing differences in republican
ranks has held conferences with larger
number Of senators than he has met on
any particular occasion. even at society
functions In the last twenty-four hours
President Taft has seen every one Of the
socalled insurgents, and starting with
o'clocl last night and until o'clock this
moring he was in close communication with
Senators Beveridge Of Indiana, Cummns
of Iowa, Crawford Of South Dakota. Cur
It's Of Kansas Dixon of Montana, EJurne
of Oregon and Brown of Nebraska.
It was long after midnight when Brown
of Nebraska, left tho White House
These conferences grew out of the ef-
fort being made on the part of the demo
Gratis to pass an income tax amendment
for which a known number of republicans
stand. To meet this condition, President
Taft has decided to take a hand and it
wouldn't he surprising that within the
next day or two a message from the White
House to congress would be sent outlining
the presidents views regarding tax on
dividends declared by corporations. and
with 1t a recommendation for the passage
Of constitutional amendment providing
for a tax on incomes.
what Taft Wants.
| President Taft, realizing that his party
| Is pledged to tariff revision, not upward,
but downward has begun an inquiry
among senators and representatives., which
! is bound to play important part in
the making of tariff now under considera-
ton and has started out by suggesting a
! tax on corporation and associatioL divi-
dends and to that end has called to the
White house leaders OF both branches of
congress as we'll as insurgents Of the sem
ate, hoping thereby to reach some neutral
ground where the party can meet and ac-
complish legislation that at present looks
almost impossible of achievement
Senator Brown who left the White House
early this morning and being the last of
the so called progressive wing of the re-
publican party, to see the president re-
| fused to say anything as to what trans
pired at the conference. He admitted that
other senators were in conference with
the president and that the subject OF tax
on dividends had been discussed. He said
he thought it but proper tat the presi-
dent should give out what occurred, not
himself.
Senator BacOn's Attitude.
| personally" he said speaking about the
new phase that has presented itself regard
ing income tax; In face of the supreme
courts promo ement that the income tax
law Is unconstitutional, 1t is folly to
enact the very law which the court has
struck down. But the court has sustained
the tax on dividends of corporations, al
though in effect they are earnings of cor
poration, so that the safe thing to do is
TO pass the several states a resolution to
amend the constitution, giving congress
power to levy a direct tax on incomes.
In addition to the tax on corporation
net earnings there should be coupled with
it proposition providing for complete
publicity, that every stockholders will
know " here every dollar comes from that
is earned and where every dollar goes that
is expended. ! take 1t that this feature of
the law will be the greatest step toward
protection OF public against watered stock
and Wall street manipulations and specula-
| ton.
Senator Brown has stood for an amend
ment to the constitution empowering con-
gress to tax incomes. and he has with him
a number Of earnest republicans, who have
stood with him on that proposition and
who were ready to vote for an income tax,
including Cummins of Iowa and Borah Of
IdahO who have made this subject very
profound study Realizing, however, that
the Aldrich forces in the senate were prab-
able able with democratic votes, to de-
feat any income tax proposition whatso-
ever, this new feature has been injected
into this tariff discussion and it will be
interesting to watch the result should the
| pa t,
gress on the subject defining his position,
for which he has stood for years, years
before he came into the iimelight a
presidential factor.
Burkett and Aldrich Clash.
Senator Burkett during the morning
hours of today's session had a run in with
Senator Aldrich over the reduction OF the
number of cigars which may be admitted
free Of duty annually from the Philippine
Islands Senator Burkett said that in his
belief the finance committee was playing
the game Of petty politics on this schedule
as well many others which had pre-
ceded 1t. The finance committee originally
brought in a proposition, said to have come
from the senate, being the result OF
full consideration on the part OF Mr.. Taft,
to permit 900 cigars annually to come
into the United States from the Philippine
islands free Of duty. Senator La Toilette
OF Wisconsin introduced an amendment
providing that only 75,OOO,OOO Philippine
cigars should come in free each year. That
amendment was under discussion when the
senate adjourned AT midnight last night.
During the night the finance committee
had inspiration and was ready this
morning with an amendment which pro-
vided that only 10000 900 cigars from the
Philippine Islands should be on the free
list. They thus cut under La Follette's
resolution by 100000 cigars and left the
senator's amendment up in the air so TO
speak This method Of procedure did not