New-York tribune., 1909-06-14
THE TARIFF TO DATE
|. TWO SCHEDULES REM4IN
TO BE CONSIDERED.
administrative Features and Certain
Items H7M FoIIo1c - May
Reach TOte Nert Week
from The Tribune Bureau !


the massage Of all the schedules except that
covering wood pulp and paper and that dealing
with luraber although there are a number ol
items which have been passed over ana WHICH
must now be disposed Of The free list Is COM
Melted Most Of the speeches on LUMBER nave
been delivered. and one amendment 1or Alee
ru-nber has been voted down All the admin
tstrative features remain TO he dealt "l'h' III
addition to the paragraphs passed over
The most interesting and important phase "
the weeks progress has been the presentation
e ,ronoei+ion favored by the President, to
impose tax Of . per cent on the net earnings
Of cornora+ions and the decision Of the leaders
+o bring in an amendment erbodying the Presi-
dents idea 10 be offered substitute Tor 'ie
income tax proposition Only second IN lnlpo'
-ance 70 this has been the agreement reacIleu
by Senators Bailey and Curnmins on 'he iii0O'i.0
tax proposition, q result OF whlch 'Iie'V -
now before the Senate only single income ,aA
amendment which. in brief imposes a lax VI
77er cent on all incomes over S7,ob a year "
,,,,si-e those of corporations. Provision Is
made for reimbursement to stockholders of cor
,ora+ions taxed under the law, whose tolal to '",
,.o-,ss from, all sources are less than SooVo' oI
-be amount which. as stockholders, they con-
+.b,,+e5 IN the tax paid by the corporation
r-srl,- in the week Senator aldrich calleo o.
the White House and reported tnat 'ile VI SCI
zation was stiu three votes short OF 'iIe -l
her necessary 10 refer the income 'aA Pi'f
tion 70 the Judiciary Committee Inc FteSius'i'
,,An advised that a substitute imposing
of > rer cent on the dividends Of oorpora'io'S
r,reserted bv the organization Win "
rnus averting any possible dencleIiO'
,,..aing off the income tax movement MS
zo..o,, found favor with the leaders
The. submitted II at q secret meeuhs !"
,-,,,,-Ls~ of Republican advocates Of the income
- Indicated their willingness 10 acCeP0
the substitute
o,ppoRT or MR. TAFT'S PLAN
,-..,n-bi,e however. the President had oeeI
,;,-irg the subject serious consideralloit' ar.
had come 10 the conclusion that II Ile ti'f
+ax we're assessed on the profits or net ear
of corporations it would not only ProVloe amp
revenue and head off the income TAX Ou'
,oY1actior7 would insure federal superNisioh "-
4he transactions Of corporations WHICH, III ''i0
t,,5,roan+ would go far to check corporate
ab,,ses. afford proper protection TO the Inhoil''
stockholders and materially enhance pupnc 'ol'
g.. in American securities. Mr TAFT mace
known his view 70 the party leaders IN 'ile
Senate and from among them obtained some
ardent supporters and others less aTueh'' "i'o
will however. support the proposition because
they feel that without NJ Tafts hluehCe
and the presentation Of a satisfactory supsu-
tu4e they Will be powerless to check the income
-ar movement The proposition TO Impose tax
on the dividends OF corporations has therefore,
1,een abandoned and the indications point 10 the
,,resentatjon by the Finance Committee Of the
plan to tax net earnings in the form OF an
amendment which viii be offered as a substitute
for the Cummins- Bailey income tax amendment
A realization Of the extent Of the federal
supervision Of the transactions OF corporations
which the tax on the net earnings Of corpora
hoe sod
the antagonisun Of several Senators, and, headed
by Senator Penrose, they are working assidu-
ousIy against the proposition. Whether or not
their opposition viii prove effective il is too
early to determine. hut there are few who be-
lieve that il Will if, probable, the lead
ers decided TO ask the President send for in
dividusl Senators and exert his influence TO
bring them into line for his proposition He is
said to be willing to pursue this course If re-
quested TO DO by the party leaders in the
Senate.
THE BATTLE on WOOL SCHEDULE
The fight on Schedule K-wool and woollens-
occupied the attention Of the Senate for four
GAYS. The cotton schedule was finished on
Monday night. and the following day Mr. /
Dolliver began his exhaustive attack against /
the wool schedule. which MI Aldrich had
termed the citadel OF protection" The Finance /
Committee recommended the adoption Of the
Dlngiey rates throughout this schedule Mr.
Dolliver sought TO demonstrate that the sched- |
ule antiquated and unscientific and that II /
was grossly unjust TO the carded wool manu-
fscturers and in the interest Of the worsted
manufacturers. All the insurgents" with the
exception OF Senators Gamble and Crawford /
Of South Dakota. stood BY the Iowan in his /
fight for a readjustment Of the duties a spe-
cial effort was made by Mr Dolliyer TO force
through amendment requiring the customs
officials TO assess duties the ba sis Of the wool
contents Of cloth. instead Of on the weight Of !
TIE cloth Long speeches We're made by Sen
ators La Toilette and Cummins both of whom /
offered amendments along the lines Of those
proposed by Mr.. Dolliver. New England Sen /
ators took little part in the discussion. the prin-
cipal speeches in defence Of the schedule being /
made by Senators from the wool growing states I
OF tse West
Senators Warren. Snoot and Carter sneak
ing in support of the schedule took the position
that the prosperity Of the wool grove was
dependent upon the prosperity Of the woollen |
down the compensatory duties Of the manufact- /
urers would cripple the farmers and other wool |
growers. All amendments TO the schedule were /
voted down. the majority for the Finance Com
mittee ranging from eight 10 twelve votes.
4 feature Of the debate on the wool schedule
was Mr. La Follettes personal criticism of Nv /
Aldrich on Friday. The Wisconsin Senator pre- /
sented a block Of twenty-four amendments 4
changing duties and spoke for several hours in I.
support Of their adoption. After the Senate
TECHN. CALITIES