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Show AMIGA WILL VOTE FOR THE CORPORATION TAX TO DEFEAT INCOME TAX ' Senator Bailey of Texas Terms Rhode Island Senator's Position a Mere Subterfuge, and Asks Ji: He Suggested the Taft Plan Tillman's Amendment for Duty of Ten Cents a Pound On Tea Is Defeated come tax amendment, the President made the suggestion or the senator from Rhode Island suggested It to the President." "I suppose the senator scarcely expects ex-pects an answer to that question," responded Mr. Aldrlch, who said that - his conversation with the President was a private one Mr. Aldrlch refused re-fused to reply to a question by Mr. Gore as to whether the president, ag well as Mr. Aldrlch was "urging this corporation tax as a subterfuge for an income tax." "While you are talking about all these tilings," pleaded Mr. Tillman, In behalf of his tea proposition, "my poor little tea baby has been laid aside, and Is crying for pap." Mr. Clay then resumed. He said he believed the Rhode Island senator favored the corporation tax solely to defeat the income tax. "Not solely," replied Mr. Aldrlch. "The imposition of an income tax now would be an assault, or rebuke rather, to the supreme court of the United States. Tho income tax case was decided de-cided as mature deliberation, and now to again submit the question without, change, is simply flying In the face of that decision," to administer a rebuke re-buke to tho court" The debate closed with statements by Senators Bailey and McLaurln that the supreme court might change Us position if the case were agalu presented. pre-sented. The income tax was then" temporarily laid aside in obedience to Mr. Tillman's plea and was not returned, re-turned, to again until after tho disposal dis-posal of the tea amendment as a means of defeating the Income tax." He added: "I shall be perfectly frank In that respect. I shall vote for it for another reason. TheJncome of the government this year will show a deficit of 60,000,000. Next year there will be a deficit of $15,000,000. I am I willing that the deficit shall be tak-.n : care of by a corporation tax, but at I the end of two years, it should either .-o reduced to a nominal amount or repealed." re-pealed." Mr. Aldrich said he had not favored a. permanent the taxation "which Is suie to destroy the privilege system." At once catching up the words of the senator from Rhode Island. Mr. Bailey declared Mr. Aldrlch had announced an-nounced that his attitude, In favoring a corporation tax, was a mere subterfuge. sub-terfuge. "Under the statement made by the senator from Rhode Island," eald Mr. Bailey, "those who favor any income tax and do not join them in this subterfuge sub-terfuge to defeat, may sec clearly what they are doing. "We are now told that this corporation corpor-ation tax Is to be entirely repealed, or at least emasculated within the next two years, and see that, after all, it is .simply a contest between an Income tax as part of our fiscal system, sys-tem, or a corporation tax as a subterfuge sub-terfuge to be continued two years." "My support of the corporation tax." replied Mr. Aldrich, "Is not a subterfuge in any sense of the word. The .corporation tax Is a tax on corporations, cor-porations, which it Is clearly within the right of the Congress to Impose, and those senators who are honestly in favor of an income tax that Is constitutional, con-stitutional, and that can be operated, will support the income tax proposition proposi-tion of the administration, as against the proposition of the senator from Texas, which"" is certainly, In "tho minds of more thoughtful people, unconstitutional." un-constitutional." "The least thoughtful people," corrected cor-rected Mr. Bailey. Mr. Bailey said the President had once talked with hlrn respecting the matter of the Income tax, and he Intimated In-timated that either the senator from Rhode Island had persuaded the President, Pres-ident, or the President had persuaded the senator from Rhode Island along liucs, which formerly had not received receiv-ed the apprpoval of the President. "But," added Mr Bailey, replying to Mr. Aldrich's denial of the word "subterfuge." "my direct authority for saying this was a subterfuge Is the statement of tho senator from Rhode Island, that he will vote for a corporation lax for the purpose of defeating an income tax. If that does not design a subterfuge, we will need a new dictionary." Again replying, Mr. Aldrich said he favored an income tax only for times of emergency, and quoting the senator from Texas," declared tho latter wished wish-ed to use the tax as a means of destroying de-stroying the protective system. "This proposition for a corporation lax was made by the President before the house committee on ways and means, prior to the time we considered consid-ered it here." said Mr. Aldrlch in fur-thor fur-thor explanation of the suggestion that there had been a change of front which had brought forth the corporation corpora-tion tax as jC subterfuge. ? "I am here as a Republican, to support sup-port a Republican administration, a3 far as I can consistently with my duty. I shall vote for this proposition for the purpose I have named, and the fact that it is a Republican proposition, proposi-tion, and supported by the President of the United States, is not the least controlling." Mr. Bailey said he had a curiosity to know whether "When they had set their heads at work to defeat the In- Washington. June 29. Many peoplo defied the torrid weather and went to the capltol today to see started the first senatorial battle for an Income tax. The heat, If possible, was even more intolerable than that of yesterday,- yet a larger number of senators , entered the chamber, and all were clad in the coolest garments obtainable. Buckets of lemonade in cloak rooms received frequent visits. For the first time, the pages were attired In childish child-ish shirtwa'; ts and they presented j each senator with a palm leaf fan as he entered. Senator Brown endeavored to obtain unanimous consent to take up the income in-come tax resolution. Demurring to this suggestion, Senator Railcy pointed out that such a course would be in con-travc-ntlcn of a unanimous amendment previouslv recorded, for the consldera-ticn consldera-ticn of his Income tax amendment. Remarking Re-marking that he thought It would be well at once to get out of the way tho i question of the constitutionality of the ' income tax, Ser.ator$Brown did not press his req 'est, and.no action was taken to Interfere with the course agreed upon for disposing of the Bailey amendment. To map out more clearly the cam-pal-rn entered upon, Senator Aldrlch sn!d the finance committee had determined deter-mined that the offering of amendments to the schedule of the bill, while in the committee of the whole, should not continue further at this time, as they could be brought for by senators alter tbe bill reached the senate in a parliamentary par-liamentary s?nse. To give foice to that purpose, he said he would move to lay on the table any other amendments amend-ments that might be offered at this . time- .. - ... . All this had beeftiiere parliamentary parliamen-tary detail, and when the tariff bill was taken uo. the lucerne tax question was put aside to enable Senator Tillman Till-man to present his amendment for a duty on tea with the purpose of completing com-pleting the schedules before laklng up the tax question Senator Tlllniau lost no time In renewing re-newing his effort to have a duty of 10 cents a pound placed on tea, In the interest of the tea grown in South Carolina. Tho South Carolina senator told of the superior quality of the American grown tea and of the enormous enor-mous profits made in the imported article. ar-ticle. In reply to a question, he ssid he believed that with the dutv he asked for, the South would not only be able to supply the, entire American market, but would eventually export a large quantity. Mr. Dixon suggested a bounty as a means of furthering tho Infant tea industry, in-dustry, and he was strongly supported In making that suggestion bv Senator Smith cf Michigan. Mr. Tillman responded re-sponded that he did not propose to be c'aiiteht in advocating a bounty. He would not accept a bounty, he said, If a dollar a pound were offered. He was not seeking. any selfish dvantage for South Carolina, but wanted to benefit the entire country. With two mild speeches in support by Senators Heyburn and Caiter. that were much diluted by protection ingredients, in-gredients, tho de-bale for a time was not especially animated, hut there was a slight warming up when the alignment align-ment against the proposition of their South Carolina colleague began. Senator McLaurin, the uncompromising uncompromis-ing Democrat, was the first to appose, as ho did vigorously. Mr. Owen added his voice in opposition, declaring that tea was now protected by the tea Importing Im-porting monopoly, which keeps the price fifty cents a pound higher than it would be without that monopoly. Senator Shiveley Insisted that It was a fallacy to claim that the development 1 of the tea growing Industry In this I country would bo served by such a dutv, and was opposed to it. ' j A' Republican voice, by Senator j Bradley of Kentucky, was heard denouncing de-nouncing as unwananted the taxing of 1 any man to make another man's busl-' busl-' ness profitable. Senator Stone offered an amendment amend-ment to prevent the duty as applying to "tea sweepings." This suggestion was accepted as a part of the amendment amend-ment by Mr. Tillman. When 'the vote was. taken Senator Tillman's amendment to the tariff bill, providlug a duty of 10 cents a pound on tea, was defeated by a vote of IS ir f.'i ' Whllo the question of tea .remained technically before the senate for a long time It was impossible to keep tbe income tax and the corporation tax questions, entirely iu the background. They were referred to more than once, at one time ho pointedly by Senator Clay, as to brbg out a most interesting interest-ing statement from Senator Aldrich, who. as chairman of the finance committee, com-mittee, pa-tented the corporation tax amendment. Senator Bailey and Clay were prodding prod-ding the chairman of the finance committee, com-mittee, and appeared especially anxious anx-ious to know whether he would revise the tariff schedules downward, if the Inronie rex amendment should be adopted, to lowei' the revenue Trom customs to an extent equal to that which would be raised by the Income tax. It was In response to a direct qneMn from Mr. Clay that Mr. Al-'r'rh r'Pnde I. Stating his position posi-tion with refTfii'-e tr thft corporation t"j v. b" "'""-l .b'mitly: "I shall vote for the corporation tax i |
