Evening star., 1909-07-12
TAFT To PERFECT
CORPORATION TAX
Because Administration Is Re-
sponsibIe, That's Why!
ALDRICH AND PAYNE AGREE
Attorney General Is Now Working
Out Legal Problem.
BIG STICK IS LAID AWAY
President Using Soft Words and
No Force-Session Will
Be Over Soon.
ALDRICH AND PAYNE AGREE
BIG STICK IS LAID AWAY

Be Over Soon.
President Taft and the lawyers In his
cabinet have undertaken to save the
tariff conferees from haGgling over the
corporation tex amendment. 1t Is con-
ceded that the measure passed by
the Senate must be redrafted in order
to remove constitutional objections md
to meet the views Of the administra-
tion. The President has told leaders of
the Senate and the House that as the
administration would be charged with
the responsibility of collecting the tax,
and defending the act If nssailed In the
courts, the administration should be
permitted to perfect the measure.
Senator Aldrich and Representative
Payne have made no objections to the
suggestion made by the President, and
as a result Attorney General W1ckersham
has the measure in his possession and is
working out the legal problems it in
wolves In frequent consultation with the
Attorney General are Secretary of State
Knox. Senator Root and the President
amendment it will be sent to the con-
ferees, who will incorporate it in the bill
as agreed to in conference.
If the corporation tax feature Is chang
ed at all after being redrafted in cabinet
and close administration circles. the al
terations will be confined probably to the
rate of tax imposed upon net earnings.
There is strong sentiment in Congress
that the tax should be not more than 1
per cent, and it may be cut in half ac-
cordingly; but the rate has not come up
for discussion among the conferees.
Taft Talking With Conferees.
The President will get in touch with all
the Senate and House conferees on the
hill. At breakfast this morning he en-
tertained Representative Fordney of
Mich, apostle of high protection. and at
luncheon Senator Aldrich was his guest.
At / o'clock this afternoon he conferred
with Senator Burrows of the Senate con-
ferees. He has already conferred with
Speaker Cannon, who saw him again this
morning, and Saturday night he went over
the situation with Chairman Payne of the
House ways and means committee. All
ciliation, and that Is what makes the
President hope that everything will turn
out all right.
There will be no campaign of news
paper pressure upon the conferees. That
has been settled by the President. What
ever he has to say in the way of opinion
as to this or that schedule or provision
of either House or Senate bill he will
make known direct to the conferees, and
not depend upon newspapers to carry his
views TO them. At this juncture. at
least. soft words and not the big stick,
not even the new one, will be used by
sent by j. f.. Forbes of Ottawa, Kan
1t is big hickory club, knotted at one
end. and Mr.. Forbes has attached this
memorandum: The Almighty probably
grew this big stick for some good pur-
POSE, and | suspect that it was to allow
YOU to swat the tariff bill and other
schemes of criminal eXtortion."
Won't Be in Conference Long.
Senator Aldrich and Representative
Payne have told the President that they
believe the conferees will conclude their
work within two weeks and that the
President believes this is shown by the
fact that today he told Senators Martin
and Daniel and Representative Hay of
Virginia that he would attend the big
Confederate reunion at Fishers Hill. Va.
within ten days if they could pick a
date in that time. Senator Daniel has
wired those in charge of the reunion 10
ascertain If the date can be arranged
within ten days.
While the President will not make nubIjc
his wishes as to the various schedules of
the respective bills before Congress he IS
willing that it should be known that he
believes the Senate provision for mini
mum and maximum tariff is less drastic
than the provision OF the House and
more acceptable to him. AS to the cor
poFation tax he will make no objection If
me rate OF the tax Is reduced. 1t is the
principle OF the tax that he wishes to see
become law. The tobacco tax imposed
pN the Senate, which IL is believed will
become law through acceptance by the
ttnuse, will furnish S9.OOO,UOO more reve.
nue. year than the House bill.
Some reluctance is being exhibited by
members of the House to the suggestion
tIlat the inheritance tax feature adopted
~ that body shall be left out of the
plli- II u were not for the fact that
many states have inheritance tax laws
on their statute books now and feel
that the federal government should no,
invade this field Of taxation. the reten-
iion OF the House feature would be in
sisted upon.
States Rights" Impress Taft.
President Taft has been impressed b.
the arguments Of the states that they
should not lie disturbed in their use ot
ing revenue although his belief in the
principle has not abated. IL is stated
upon the highest authority. however,
that he does not think that federal and
state governments should both resort to
TINS msthod of raising revenues.
The amendment adopted by the SEN
ate providing for the establishment OF
customs court Is likely to be accepted
oy the House conferees. II was said %
uay thdt the more the House conferees
study the plan the more they favor it
although they have not gone so far as
20 Withdraw their opposition entirely. L,
Is generally believed that they will dc
SO: however. when the amendment is
taken up formally During the consid-
Grafton OF the customs court amendment
In the Senate the salaries OF the Judges
were reduced to $1,000. An effort will
be made 10 fix them at 10000 az nro.
Nided originally by the amendment as
reported from the finance COMMITTEES tf
the Senate.
The terms of the Senate maximum apf
minimum provision are meeting Will
some favor from the House members ~