Willmar tribune., 1909-06-30
TAFT NOT TO
INTERFERE
ls LATEST REPORT FROM WASH.
INcToN ON CORPORATION
TAX PROPOSITION.
CANNON ALSO FAv0RS THE TAX
Friends Deny II Prizes Into Private
Affairs Of Business Concerns.
Publicity Feature 10 The
Cause Of Confusion.

Washington, June 25.-The corpora
ton tax amendment to the tariff bill
will be ready for submission to the
senate today.
It Is SO drawn as to include "all
Joint stock companies organized for
profit" and all insurance companies.
It was deemed wise to include insur.
ance companies, as otherwise the ''mu-
tuals'' would have escaped.
Mutual savings banks cannot be in
cluded in the law.
Considerable confusion appears to
exist regarding the publicity feature Of
the amendment.
Some reports alleging that the pres
tdent has abandoned his demand for
publicity have gained credence, as
have others that the statements of
corporations showing their receipts,
operating expenses, Indebtedness, loss.
es, and net profits, will be regarded a.
confidential.
Publicity Feature Retained.
Both of these reports are erroneous.
The provision for publicity, so termed,
was agreed to at the White House con-
ference and has not since been modi-
fed.
The attorney general and Senator
Root drew the provision according to
the plan then agreed on, which wholly
conforms to the views of the presi.
dent.
No change was even suggested at
the White House conference.
In the opinion of President Taft
many abuses have resulted from the
ability of those ION the inside" Of
large corporations, to conceal profits,
increased value of assets, etc., which
secrecy the c0terie in control took ad-
vantage of, often deliberately depress.
ing the stock in the open market in
order that they might increase their
holdings, to the detriment of minor
ity stockholders. The president be-
lieves that with secrecy regarding the
profits of corporations rendered impos-
sible this sort of abuse can be effec.
lively checked.
Another abuse which the president
desires to check is the payment of div
idends from assets for the purpose of
"bulling' the stock when no profits
have been made, which he also be-
lieves will be checked by the proposed
publicity.
Won't Reveal Private Business.
That the president ever purposed to
expose all the transaction of corpora
tions to the public view, to reveal pri-
vate business for the benefit of COM
petitors, etc., has never been stated by
any one who enjoyed his confidence,
but some 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 jump.
ed to the conclusion that Mr.. Taft
must have receded materially from his
original purpose.
In the estimation of some, the mea.
sure is far less drastic than they had
been led to expect. In the estimation
of others it is more so. Whatever
may be their individual views of its
several provisions, however, more
IAaA MY 1cpuO1ACdu Sc1laIOFS REGARD
the corporation tax as less objection.
able than an income tax, and stand
pledged to vote for the amendment.
Won't Be Dropped Out.
The fear that the corporation tax
might be dropped from the bill in con.
ference has been widely published. 1t
is stated today that this fear has no
substantial basis. The statement is
made that the senate conferees have
pledged themselves to the president
to preserve the tax in conference.
It is also said that Speaker Cannon
and Chairman Payne, of the ways and
means committee of the house, are al.
so Of the opinion that the tax should
not be dropped from the bill. II these
statements are true, the tax will be.
come part of the finished tariff bill.
MccUMBER APPEALS TO TAFT.