Middletown transcript., 1909-06-19
WASHINGTON LETTER


/, THE Finance Committee has practically
determined upon the presentation of
an amendment to the tariff bill providing
for tax on dividends of corporations as
a substitute for the income tax amend
ments. President Taft is heartily in favor
of this form of special tax and it will be
known, probably, as the "Tsft amendi
ment." There are many Republicans
who feel it necessary to vote for an income
tax or some substitute for the same pur.
pose, and when the, President learned
that the organization was still short few
votes necessary to refer the income tax
amendments to the Committee on Judici-
! ary, he gave new impetus 70 Tie eeFPeEa- :.
tion tax proposition and advised its pres
entation as a substitute. The details of
the proposed amendment are yet to be
worked out. A tax OF two per cent. on
the dividends of corporations is the sug.
gestion of the President, but whether
that percentage will be adopted by the
committee remains to be determined and
will depend largely, no doubt, on the es-
Inmates OF the probable revenue. which
are now to be compiled with greater ac-
curacy than heretofore. One thing seems
to be settled, and that is that such an
amendment will provide for the imposi-
ton of this special tax for specified
period, two or perhaps three years. Some
Senators are heartily in favor OF the Presi-
dents plan. while others would prefer to
postpone the enactment Of special taxes
until next year, on the ground that it
will then be possible to determine the
precise revenue producing power OF the
new tariff law Those who favor it SUBJ
nit that tax of two per cent on the
dividends OF corporations would be insult.
fcent to amount to a hardship to any
stockholders;s ;sthat such a tax would prove
immensely popular with the great major
iIy Of the voters, etc, and they believe,
too, that were proposition SO favored by
the Chief Executive to be incorporated in
the bill it would insure for it heartiness
OF support by him and possibly leniency
in dealing with the schedules which
would facilitate the work Of the joint
committee on conference. And last, but
not least, the claim is put forth by those
who favor such an amendment that the |
Republican party would be in a better
tactical position could it go into the cam
paign of 1910 with record of having en-
acted legislation which is aceumulating
surplus in the Treasury instead of enact
ing measure which barely meets or per-
haps falls just short of meeting, the fed. |
eral expenses.
~
The announcement of the probable sub |
stitution of this amendment for the in
come tax amendments of Senators Bailey |
and Cummins brought those two Senators
together Immediately in determination
to bury their differences and unite on
common measure. They have agreed on
measure which includes the fundamen.
tai provisions of the Cnmmins amend
ment and the non-essentials of the Bailey
amendment, and they now insist that
they purpose to press its adoption with all
their power. This is interpreted to mean
lineup OF President Taft and Senator
Aldrich, backed by the Republican Or
ganization on one side and Senators Cum.
Minis and Bailey, backed by the ''insur-
gent" Republicans and the Democrats on
the other side The income tax amend
ment agreed upon by Senators Cummins
and Bailey provides for tax of two per
cent. on all incomes exceeding SIS 900 a
year. with provision for the reimburse
ment OF those stockholders in corpora
tions whose total incomes do not exceed
81, 900.
-
Whatever probability there may be of
prosecution of the Sugar Trust. pursuant
to- the compromise of the suit brought
against the trust by the Pennsylvania Re- |
fning Company, the officials of the De.
partment of Justice decline absolutely to
discuss the subject. The Attorney Gen. |
eraI is opposed, naturally, to announcing
in advance the purpose of his department |
to institute prosecution and nothing will |
he made public, at least by him until |
after the investigation is completed. |
There are broad intimations at the White |
House, however, that the Attorney Cen |
eral has been instructed to conduct such |
an investigation.
*x*
While no great enthusiasm is displayed |
at the Department Of State over the in
formation that certain American banking
institutions have arranged to take up a
portion OF the tri-partite loan of $27, ,5OO,-
UO0 to China, recently announced, it ap- |
pears that the administration was in a |
measure responsible for it. Every step |
in the advancement OF China will be well |
coined by this administration, AS it was by |
the last, and under proper conditions it |
will be glad to see American capital flow |
into this empire. This loan, however, is |
to be secured by special tax, despite the |
fact that informal promises We're made to
the last administration that such tax
would be abolished aud Chinese finances
placed on modern aud practical basis.
The United States cannot held China to
that promise, of course, but it cannot but
feel some apprehension at any extension
e 4 a
must serve to perpetuate that tax thus
actually retarding Ghina's grogress.
THE TIME TO SPEAK
A young fellow in Bloomington, ILL.,,
who has been devoting himself for some
years to young woman of that town, re-
Gently found himself in most embarass-
ing situation just as he had taken his cour-