Middletown transcript., 1909-06-26
WASHINGTON LETTR

WAeHINGToN, D. O., June 18th, 1909.
THE President and the Attorney.G General
have completed the draft of. tie pro-
posed amendment to the tariff bill. inn
posing tax Of two per cent. on the net
earnings Of corporations, and have SUBJ
mitted il to Senator Aldrich, chairman Of
the Finance COMMITTEES. Some time was
spent by the Committee in considering
the draft, and the advisability Of placing
minimum Limitation in the bill, was
discussed, SO that corporations whose net
earnings we're less than the stipulated
amount would not be required to pay any
tax. No decision, however, was reached
and no such change will be made unless
il commends itself to the President and
his legal advisers. There is every indica-
ton that the tax on corporations will be
added to the tariff bill without difficulty
and without prolonged debate and that it
will receive the almost unanimous sup
port Of both parties. Mr.. Taft is greatly
in earnest in his advocacy of this tax and
is urging all Senators to get into line With
tile organization and vote for it, and the
concensus Of opinion is that the Presi-
dents recommendation will actually has
ten the enactment of the tariff law
80
The Democrats are endeavoriig to de-
wise some scheme by which direct vote
on the income tax proposition can be OBJ
tanned, and also, method by which they
can gel some credit for the tax on the net
earnings of corporations. In the recent
discussions on this subject, Senator Daniel
recalled the fact that early in the debate
he offered an amendment providing for q
tax on the gross earnings of corporations,
and he hopes to show that the Presidents
proposition is merely q modification OF
his method Of raising revenue. MIR.
Bailey has declared his determination to
obtain a direct vote on his income tax
amendment, either in committee Of tile
whole or in the Senate, but some of the
Democrats are urging him to withdraw
his amendment so that he can offer II
later as a substitute for the Taft corpora
ton tax proposition. The prediction is
made, however, that even itthey do sue,
ceed in getting direct vote Oh the in
come amendment it will command less,
by eleven votes, than the majority.
#.*
The policy to be pursued by the pres
ent administration through the State De.
partment in the conduct Of the foreign af-
fairs of the United States has been most
explicitly defined by Secretary Knox,
this week. This policy is to promote the
commercial and trade interests of this
country with the foreign nations OF the
world as extensively as possible, and 10
dealing with these nations the adminis-
tration will adopt such measures as seem
certain. most effectively to promote the
growth OF foreign trade and under Gondi.
tions most satisfactory TO American BUSH
ness interests. The Secretary Of State has
announced that the aid which the depart.
ment has been giving to American BUSH
ness interests in securing portion Of the
Chinese loan for the Hankow 4 Sze.
Chuen Railway has been successful. The
department is informed that The agents Of
the foreign banking interests in China
have recommended to their principals
that United States bankers receive share
/ in the loan, and that the Chinese govern
ment has expressed it's pleasure at having
the United States assist in capitalizing its
enterprises, Secretary Knox takes it for
granted that American bankers will be
asked TO subscribe one.fourth of the loan
of $27, 500, 900, which is being fOated by
the Chinese government, and the State
Department will assist the Americans iB
securing a fair share of engineers to work
on the railroad, and will endeayor, also,
to effect the purchase in this country Of
at least one-fourth of the machinery re-
quired. According to Huntingdon VIII.
son, the Assistant Secretary of State, it is
well known that the appointment OF
American engineers in China is extremely
important from a commercial point Of
view. particularly because they are in
position to recommend the purchase of
American material for construction work,