New-York tribune., 1909-06-24
CORPORATION TAX
PLAN COMPLETED
4LDRTCH GETS DRAFT OF
AMENDMENT.
President Taft Has Not abandoned
Demand for Publicity-Insur-
dHCe Com panies Included.
from The Tribune Bureau. J


Attorney General completed to-day those
changes in phraseology in the corporation tax
amendment suggested at last nights confer
ence at the White House and the draft OF the
amendment was handed 10 Mr.. Aldrich as
chairman of the Finance Committee The Lead
ers expect that it will be reported to the Sem
ate tomorrow Friday. It is possible that
some further changes in phraseology may be
deemed advisable, which might delay the sub
mission Of the amendment TO the Senate.
The amendment is so drawn as to include all
joint stock companies organized for profit and
all insurance companies It deemed wise
expressly 10 name insurance companies. az
otherwise the 'mutuals' would not have been
included Mutual savings banks. not being
named. Will not be subject TO the tax
Considerable confusion appears to exist re-
garding the publicity feature Of the amendment
Some reports alleging that the President has
abandoned his demand for publicity have gained
. credence. as have others that the statements OF
corporations showing their gross receipts. oper-
ating expenses. Indebtedness. losses and net
profits. etc. will be regarded confidential
Both of these reports are erroneous The pro-
vision for publicity. so termed, agreed TO
at the White House conference on last Sunday
evening. and has not since been modified.
The Attorney General and Senator Root drew
the provision according to the plan then agreed
on which wholly conforms to the views of the
President No change was even suggested a.
last nights White House conference
CONTENTS MAY BE PUBLISHED
The statements Of the corporations will be-
come "of public records" subject 10 inspection
by all who may desire 70 do so Their contents
may also be published if desired. Many OF the
I
| tic laws concerning corporations obtain IN many
states. and that this is true notably OF New
York and Massachusetts,
In statement of the Presidents views IN
these dispatches TO The Tribune Of June II it
was explained that in his estimation many OF the
corporate abuses which had brought discredit on
the business methods Of this country resulted
from the ability OF those on the inside OF largs
corporations to conceal profits increased value
/ Of assets etc Uhich secrecy the coterfe in con-
/ troll took advantage of. often deliberately de-
pressing the stock in the open market IN srder
| that they might increase their holdings TO the
detrirneut OF the minority stockholders II was
/ further explained that the President believed
that With secrecy regarding the profits Of cor
porations rendered impossible, this sort Of abuse
would be efectuay checked Another abuse
which the President desired 70 check as told
then. was the payment of dividends from assets
for the purpose Of pulling" the stock when NJ
profits had been made which he also believed
would be checked by the proposed publicity
That the President ever purposed To expJss
all the transactions of corporations to the public
view. 10 reveal private business for the beneht
of competitors. etc. has never been stated by
any one VINO enjoyed his confidence. but. sons
who have been misled in this regard were so
SURPRISED when they learned the limited extent
Of publicity provided for in the bill that they
Jumped to the conclusion that Nr Taft must
have receded materially from his original pur-
pose.
VOTES OF MANY PLEDGED
All the material provisions Of the bill have
been told in these dispatches as fast as they
have been decided on. and it is not nov neces-
sary 70 reteH them In the estimation Of some.
including members OF the Senate. the nnea sure
is far less drastic than they had been led 70
| expect In the estimation OF others IT is more
so. Whatever may be their individual views OF
its several provisions however. more than fifty
Republican Senator's regard the corporation tax
as less Objectionable than an income tax. and
stand pledged TO vote for the amendment
Another wholly erroneous impression which
appears TO have gained some Credence is that
there is danger of the corporation tax PROPOSE
ton being killed or emasculated in conference.
or possibly Of seing rejected by the House. IN
I
they are pledged 70 the President TO preserve
the measure in confidence So. too. are Speaker
/ Cannon and Representative Payne. who will be
chairman OF the House Conferrees- It is the
purpose of the House leaders. all Of whom ars
committed 10 the Presidents proposition. to
bring in a rule which will send the tariff bin.
including as it will the corpOration tax. TO con-
ference with extremely little debate Represen-
tative Dwight the Republican whip. assured
the President last night that the leaders con-
trolIed abundant votes 70 adopt such rule and
carry out the proposed programme.
There is no reason to assume that any report
will be brought into either house from the con-
ference until a final agreement has been
reached. so there will be comparatively Httls
opportunity for rejecting the corporation tar
amendment except through the deliberate act
of the conferres. and IT is safe prediction that
they will commit no such breach Of faith More
over the Speaker has assured the President that
the corporation tax will be extremely popular
with the Republican members OF the House and
that in his estimation il will go 10 insure the
election Of a large Republican majority in the
fall OF 1910.
Most Senators are receiving many Iettezs
| though some protests were received from mutual
insurance companies against the imposition Of
the proposed tax on their earnings Senator
Cullen received a long protest BY telegram
from the Illinois Life Insurance Company, OF
Chicago
TAX ON EARNINGS OPPOSED.
Boston. June 25--The representatives Of SIXTY