Show k TAFT WILL DISCUSS NATURAL RESOURCE A IN SAt T LAKE ADDRESS N President resident Taft Talks of Cor Corporation Corporation Corporation Tax Before Great Crowd and Touches Upon New Tariff Measure EXPLAINS HIS OBJECTION TO DIRECT INCOME TAX Interior Secretary Ballinger Joins the Presidents Party and Will Discuss Salt Lake LakeS Speech With His Chief S I WARM GREETING IN DENVER DENVER D ENVER Sept 21 Making his way still further to the west President Taft arrived in Denver this afternoon and tonight in the Denver auditorium where a year ago Mr Hr Bryan was nominated as his opponent opponent opponent nent in the presidential race faced a crowd of thousands that in its noisy welcome and continuing enthusiasm recalled some of the scenes of conven convention convention convention tion week President Taft switching from his purpose to discuss the question of the conservation of natural resources in his Denver Denier speech elected tonight to take up UI the corporation tax passed as a part 01 cr f the Payne tariff bill and to defend it Itis 4 ss is against the proposition to impose a direct income tax which he C ug d ed d seemed likely to pass the senate when the corporation tax tac was devised as asa asa asa a compromise The President strongly urged that all aU the states should adopt tIlE thi proposed amendment to the constitution constitution however to make an income tax p s ible in time of need neld Ballinger Joins Party Mr Ir Taft was joined here today by b the Bei of the interior Mr r Ballinger er v 1 h o will accompany him on oi a part of ti th the t trip through the far northwest t It is lu lii 1 U that the UK President a fur far furt i tIlt tut t i r conference with Mr r n I o e conduct of the interior depart he recently upheld in a long letter tilled aIled out by the con cen before making makin a final exposi exposition expo l tion of or the alms aime and objects of this ad j illustration ae as to the conservation of oft oft oft t resources Mr Taft Tart probably will not take up the thee F e j jeet ot now until he reaches Salt Lake LakeY Y ire le re he spends Friday a Saturday and andt t 1 part palt of Sunday or he may wait until ro t c ai arrives rives at Spokane Wash where at att t I Irrigation congress con the Ballinger lInger Pinchot controversy really had its first au ailing ng Tile The President tonight toni ht declared that the th corporation tax was in Itself the best form of income tax that could be levied and pointed out that it contained many of 1 f the best features of the income tax taxI I 1 of England In urging that the plates Hates should vote for or the amendment to tot tot toV t V constitution permitting the J ivy vy of a ot income tax without apportioning pr among the states according to tot t i Ir population the President declared ili that it it would be possible so to amend the corporation tax as a to include within its Ib It i ip every desired feature of an income tax tx pt the levy y upon incomes derived from actual salary and professional es Opposes Direct Income Tax The President said Bald he opposed a direct ln ome tax except in cases of emergent fly ent and he be believed it to be a prime J fault alt In the federal constitution that no provision Is made for a direct levy to tor toi r i t tt tt t wartime artime or other extraordinary ex exI I Mr Taft Tart declared that it was the su court cort declaring unconstitutional t it income tax law pa passed ed by a Demo Democratic cratic congress con some years ago that pre J the leaders in congress during the session recently closed from Including in tl i corporation tax measure a provision f fr jr a levy upon bonds and bondholders To tax tarn bonds bunds would result in the t tin tn n of the rate of interest and hence thil resulted in a direct tax upon the holders holden of the bonds and came it fr with the decision of the court Hi it lt no nt direct tax could be levied by the i 2 government without the result ji Iii I rj apportionment of the proceeds among mong t tates T j I President based his hiB argument in f r I of the corporation tax as com corn r r 1 j to tu tho tl direct Income tax almost Continued on Page 2 x r c cc c tic ticH H f I I r I i f 3 i I I t 1 5 S t I It S S S q t I 5 p S S SS I t 4 I S S SS Si I C S S i w 5 I S S I 1 S 4 S 4 S 5 e eA A S I This Photograph Was Taken at Beverly the Summer Capital Just Prior to the Departure of the President on onI His Western Tour To r Just Behind Mr Hr Taft Is His Ris Son Sn Charlie CharJie and at His Sear Is Secret sec ret Service Operative I Sloan the Presidents Bodyguard Who Will Arrive Here With the President on Friday TAFT WILL DISCUSS NATURAL RESOURCES Continued 1 entirely upon the results of the Income tax in England The President pointed out that the tax there is not a direct levy 1 en such as was recently defeated In the senate only through a compromise but that it laid the tax upon the income before it came into the hands of the individual The English tax is levied first on the de declared declared dared dividends of corporations sec see secondly on rents before leaving the hands of the tenants and thirdly upon up n the in individual individual Individual directly It was found in Eng land that a direct income tax at 10 per percent percent percent cent did not produce as 8 much revenue as the present method of ot taxation at 5 per percent percent percent cent This he declared illustrated the premium that the direct tax places upon perjury and concealment Corporation Tax Ta Effect It is a question the President declared whether incomes earned in salaries and ancl from professional work should be taxed as 8 heavily aa as 8 incomes derived from in investments InVestments investments vestments or not taxed at all The lat mt latter latter ter he hh h said was the effect of the cor corporation t tax V The President Pre received a most mosi l lastIc welcome to Denver Signs were hung at Intervals all over oer the city read i log Ing Welcome to Denver the Summer Cap CapItal ital While here the President is la the house houseguest hou houseguest e guest of ot United States State Senator Hughes a Democrat He held a public reception of two hours this afternoon at the state C capitol At the Auditorium tonight after atter a few preliminary remarks about the extent and purpose of his trip through the west Mr Taft touched briefly on the tariff saying that while a revision had seemed essential there was also al o a deficit in the treasury to be met This Partly will be met bya by a cut of to In Inthe inthe the appropriations to be made by con congress geese gress and partly by the ln Income me from r m the new corporation tax law Mr Taft said he h had bad d favored at first an inheritance tax but the objection that the states had preempted that field had sufficient weight to defeat the proposition The Presidents Speech The President then continued A part of ot the Republicans and all of the Democrats of the senate united in pressing for consideration a general in Income income come omo tax on individuals throughout the United States The law was as near as u could be made to that income tax law mw which had once b been lYen en considered by the supreme court some ten years ago and which was held to be unconstitutional by bya a vote of ot five to four It was conceded concerted that the tax would probably raise n 50 0 to which was far tar in ex excess excess cess of the needs of the government if It the tariff bill was to retain its general form 8 proposed and so sn to produce revenues i which should be reasonably rea expected Our ju friends the Democrats favored the in income Income income come tax with a review to substituting I it for G the tM tariff as BB an measure thus the effect or ot orthe the tariff in protecting the industries of the country In other words the passage of the In Income Income income come tax bill would have lent support probably to the proposition to have a tariff for tor revenue only and would have inter interfered Interfered interfered with the protective policy polley to which the Republican party Is pledged Declared Unconstitutional One further objection to the income tax amendment was that It had been de dc declared declared dared unconstitutional by the supreme court and to involve a second decision upon that issue was wall to question the uni uniformity of the decisions of the supreme court and to drag the court Into a political political cal discussion which whatever Its Us decision would not make for its standing as an impartial tribunal before the people It indicated a diversity of ot view between con eon congress gress grees and the courts two coordinate ranches with reference to the of the law which it seemed un unwise unwise Unwise wise to perpetuate in a formal statute But the income tax ta amendment seemed quite likely to pass by vote of all the t Democrats and a sufficient number of ot Republicans Therefore those who were opposed to the income tax amendment looked A w about fn to Bee ese if a n e could not be proposed less leg objectionable e ethan than the income tax amendment which would satisfy satiety enough Republicans who were inclined to favor tavor the income tax to prevent the passage of ot that amendment Corporation Tax T x Law Such a compromise was found in a proposal to pass the present corporation tax ax and also the Joint j nt resolution already referred to proposing an amendment of the federal constitution to the states authorizing authorising the general government to im impose Impose Impose pose an income tax without apportioning app It t as 8 a direct tax according to the pop p p of the states The provisions for the corporation tax In the bill exempt all nil corporations whose who e net Income does not exceed It is therefore in effect an Income tax that is it taxes earnings actually made It is a tax upon Up n success and not failure The rhe most moat objectionable feature of at a di dl income tax is 18 the premium upon Up n per jury which it offers otters to tn those are Ar willing to conceal their income a matter i ait r not at all difficult to do doand and who thus subject to a much heavier proportionate burden those tho e who are conscientious In making their returns and who pay their tax ax as the law intended So great was this his evil In the levy of ot an income tax in England that when that tax was imposed directly upon individuals as was wag pro posed here in the income tax amendment bill it was found that the proceeds of ot a tax at 16 10 per cent were less les ess than the proceeds of an income tax of five per cent imposed as our corpora lion Ion law not upon the individuals direct ly y but upon the Income before it comes Into nto their hands This la if I a practical argument In favor tavor of the corporation income tax as against an Individual Income tax that is alto gether unanswerable Tax Easily Collected It is III a corporation tax easily collected one ODe that no corporation can escape one In n which perjury cannot play any Import ant part at all in an effort to escape it Another feature of it is that incident ally it will give the federal government an lut to secure most moat valuable tu t It u in respect to the conduct of c f V their actual financial con iiri I W i h they are required to show in general terms In a public return In addition the law provides that means under proper limit of ot investigating end D nd 11 i d ti uil 1411 the their r course courso of ot bust busi I LV VV ChIS Is to be done only after the com corn missioner ml loner of ot internal revenue shall have ascertained from evidence that their re turns required by law are not correct Then rhen the evidence which he secures by his investigations of at books and papers and examination of witnesses ees Is not to be made public but to be held in the secret archives of the government until the Pres ident shall deem It of ot public interest and according to Justice to make the facts known Up to this time we have no adequate statistics concerning our corporations Even the stockholders whatever their right may be to know the course of bus iness incas of corporations are generally in a state of complete ignorance and any instrumentality by which corporations shall be to disclose with acy a general statement of ot their condi coed certainly makes for the public good Indirectly it would help hell very much in another revision whenever that shall come because corporations engaged in business said to be affected by the tariff will have upon record in Washington their exact financial condition from year to year In the matter of their Income their expenditures and their debts Division of Great Fortunes I have Ilave already considered In a speech which I made in Columbus In 1807 1901 how our great fortunes fortune could b be divided without drastic confiscator methods It seems to ntA me now OK as 8 if it It did u IM then fhe thAt h th i nM authority to reduce the size of fortunes I is the state rather than the central gov goy I Let the state pass laws of In which shall require the division of 0 great fortunes between the children of the descendants and shall not permit a multimillionaire to leave his fortune In trust so O as to keep It In a mass mag make much more drastic the rule against per which obtain at common law and then Impose a heavy beavy and graduated inheritance tax which shall enable the state to share largely in the proceeds of ot s such uch large accumulations of wealth which could hardly have been brought about save through its protection and its aid ald In this way gradually but effectively the concentration of wealth in one hand or a few hands will be neutralized neutralised and the danger to the republic c which has been anticipated by a continuation through gen ot or such wm win be ob obviated aSted accumulating fortunes |