The Monte Vista journal., 1909-08-14
soreisn.built Yacht, are subject to


boat may Pay . duty of IS per cent.
al valorem on his yacht. This will
entitle him to American registry. The
excise tax provision was adopted be-
cause OF the fact that some question
has been raised about the ability Of
the government TO enforce collection
OF import duties.
Corporation Tax.
Every corporation. joint stock COM
pany or association organized for
prof1t, and every insurance company
Is required to pay annually an excise
tax OF one per cent. upon its entire
net income over and above $1,000.
This feature put into the bill to
raise addition. tenues to apply on
the treasury The section was
prepared by attorney General Wicker
sham. assisted by other able lawyers
in the administrative circle, and great
care was taken to guard against
double taxation. 1t provides q form
OF publicity which will enable the gov
eminent to exercise supervision over
corporations. The form Of returnl
which must be made by corporations,
and other features Of the corporation
tax law were made public In detail
during Its consideration in the senate
II Is estimated that from $4,000, 900
to $50. 100000 year will be collected
under this form of federal taxation.
The secretary OF the treasury Is
authorized to issue Panama canal
bonds to the amount of $3.50. 500 900,
which sum. together with that already
expended, equals the estimated cost
OF the Panama canal. 1t is not intend
ed that the bonds shall be issued ex
cept as needed to provide money tc
carry on the work of canal construc.
ton. The bonds are to be payable SO
years from the date OF issue, and will
bear interest at rate not exceeding
three per cent. When the bonds are
sold the secretary of the treasury will
restore to the working balance the
$5O.OO0.OO0 paid originally for the
canal property and the canal zone.
The re-enactment of the provision
authorizing the issuance Of treasury
certificates for money borrowed to
meet public expenditures. increases
the amount Of the authorization from
500. 100000 to s200.0O0.OOO. A large
number OF other provisions that are
In force under the existing tariff law
are included In the conference bill
with few changes In phraseology In
several cases.
The drawback provision OF the Ding.
ley law II Incorporated In the confer.
ence bill In lieu OF the drawback OF
the house bill which intended to per.
NIT the substitution Of domestic ma.
teriai In the manufactured article for
export to the same quantity that the
imported material. upon which q
drawback was obtainable. was used in
the manufacture Of similar articles
for domestic consumption. An add.
tional provision was adopted emitting
users OF domestic alcohol In the man.
ufacture OF perfumery and cosmetics
to secure n drawback Of internal rev.
enue tax TO the amount OF alcohol
used In an exported article.
Senate Ideas Accepted.
Practically all the administrative
features of the bill which were adopt.
ed In the senate were accepted by the
ecnferees. They include a new maxi.
mum and minimum feature. q corpo.
ration tax law instead OF the inherI.
lance tax adopted by the house. au.
thorization for q bond issue to raise
money to build the Panama canal. a.
well as numerous other features.
The maximum and minimum provi.
sion prcscribes duties In accordance
with the rates named in the dutiable
list until March 81. 1910. when 81
per cent nd valorem IL to be added
automatically ~ the maximum duty
The president 10 authorized to apply
the minimum rates. however. to I'm
ports from country which gives it,
best rates TO the products Of the
United States and II made the Judge
as to whether = foreign country &C
cords TO the United States treatmcn,
which is reciprocal and equivalent
When he finds that this condition ex
lists he Is 10 Issue q proclamation put
ting In csrcc, the minimum rates and
until the time Of the proclamation the
maximum rates will apply.
The president IL empowered TO EN-
ploy such persons a. may be required
10 secure Information to assist the
president In the discharge Of the du
ties imposed upon him and insorma
ton which will be useful to the ON
GERS Of the government In the admin
istration ~ tho customs laws. The
reciprocity treaty with Cuba In not AZ
fcctcd by the maximum and minimum
provision.