Omaha daily bee., 1909-06-22
SENATOR ROOT IS CALLED IN
New York Statesman Will Help Draft
Earnings Tax Bill.
PUBLICITY TO BE ENFORCED
Much Opposition to that Feature, But
President Taft and Members of
Finance Committee Agree IT
is Essential.

y WASHINGTON, June. H.-President Taft
will personally supervise putting the finish
ing touches upon the proposed amendment
to the tariff bill providing for the imposing
Of a per cent tax upon the net earnings
of corporations. This will be done to-
morrow night at a conference at the White
House.
There will be present Attorney General
Wickersham and Senator Root, who are
drafting the amendments secretary of State
Nnox and Senators AIdrich Burrows, Pen
rose, Hale. Cullom, Lodge, McCumber
Smoot and Flint, constituting the repub-
lican membership Of the finance committee.
The draft prepared by Messrs. Wickersham
and Root will be discussed at the confer
ence Such changes are are agreed upon
will be made by the attorney general on
Wednesday and It is expected the per
fected amendments win be ready in the
senate on Thursday.
The attorney general and Mr.. Root had a
long session at the capital today, and
reached an agreement on practically every
feature of the corporation tax plan. The
portion which is giving them the greatest
trouble relates TO the government control
Of corporations necessary to carry the law
into successful operation. There has been
no little opposition TO subjecting the cor
porations to the amount of publicity that
will be required for the enforcement of the
law, and to prevent manipulations of stocks
and bonds for the purposes of evasion.
Publicity Regarded as Necessary.
Members of the finance committee, as
well as Mr.. Root and Mr.. Wickersham,
agree with President Taft that such pub
licity must be given and that without 1t
the corporation tax law would be failure.
This feature, 1t was said today, certainly
will be incorporated in the amendment.
The authors of the draft, however, are
experiencing difficulty in finding effec-
tive way of reaching the situation.
Among the details of the bill determined
today are that the tax to be levied will be
at the rate of per cent and that it will
be collected from all corporations. All
banks will come within the range of the
tax bill and deductions win be allowed
national banks to the amount OF taxes paid
upon their circulation. An important pro-
vision to be included in the bill is a deflnl-
tion OF the net earnings. This will follow
as nearly as possible the definition of earn
ings collected in the interstate commerce
act relating to railroad corporations.
President is Optomistic.
Mr. Taft was decidedly optimistic over the
outlook for the corporation tax, but mum.
Der of senator's who called at the White
House today declared that the proposition
would keep the senate in session until long
past August l.
President Taft does not believe that a 2
per cent tax on net earnings is heavy
enough to make any Of the larger corpora
tions resort to executive measures. As to
bonds, II is possible, the president feels, TO
provide a limit for the issuance Of such Sc
curities, based on the capital stock, that
will prevent corporations from transferring
all of their securities into bonds the inter-
lCnntinned ON Second Paeel