Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-07-13
COTTON BAGGING TO
LEAVE FREE LIST?
Tariff Conference Between House
and Senate Will Result in Duty
Being Placed on Jute and Jute
Butts.


vide for tax of / per cent instead Of
per cent on the net earnings of corpora
tions This wasdecided today at an in
formal conference at the white house. At
torney General Wickersham will prepare
the amendment. t.
WASHINGTON, July 12.-That cotton
bagging. which was put on the free list
by the senate is not to remain undutiable
is one of the first predictions made In
regard to the proposed action of the con-
ference committee on tariff bill. The
house conferences contend that num-
Der OF American manufacturers of cot
ton bagging would be compelled to shut
down II that article should remain on
the free list, and 1t is said that the SEN
ate conferences will not need much urg-
ing to agree to return bagging to the
dutiable list.
Juts and jute butts, from which cotton
bagging Is made, have been transferred
to the dutiable list by the senate, but
as jute was on the free list in the Ding
ley bill, as well as the Payne bill, the
duty probably will be taken off in con-
ference. Another prediction made with
regard to the action OF the conferees is
that the duty on coal, which Is sixty
cents IN the senate bill as compared with
81 cents In the existing law, will be fin
ally agreed upon at 10 cents in confer
ence.
The house and senate conferees met
again today at 10 o'clock to consider
amendments in numerical order. The low
tariff men on the house conference COM
mittee objected to an increase of So cents
per square foot made by the senate in
the house rate on card clothing when
made with face CLOTH containing wool.
This is an increase over the Dingley
rate and was evidently made to cover
the wool used. Similar objections are
expected with reference to the counter
duty on petroleum, the placing of hides
on the free list and the return of cocoa
to the non-dutiable list. These are to be
among the most strongly contested sched-
Xes.
TAFT AT WORK ON TAX.
President Taft and the lawyers of his
cabinet have undertaken to save the tar
III conferees from haggling over the cor
poration tax amendment.
1t Is conceded that the measure as
passed by the senate must be redrafted
in order to remove constitutional objec-
tons and to meet the views of the ad-
ministration. The president has told the
leaders of the senate and house that as
the administration would be charged with
the responsibility of collecting the tax
and defending the act If assailed in the
courts. the administration should be per-
United to perfect the measure.
Senator Aldrich and Representative
Payne have made no objection to the sug-
gestion made by the president, and as a re-
suit Attorney General WlcKersham Is
working out the legal problems 1t in
wolves. In frequent consultation with
the attorney general are Secretary Of
State Knox. Senator Root and the pres
ident himself When they have perfect
al he A.
conferees. who will incorporate it in the
bill as agreed TO in conference. II the
corporation tax feature is changed at
all after being redrafted in cabinet and
close administration circles, the altera-
tions probably will be confined to the
rate OF tax imposed upon net earnings.
There is a strong sentiment in congress
that the tax should be not more than
one per cent, and II may be cut in half
accordingly, but the rate has not come up
for discussion among the conferees.
INHERITANCE TAX.
Some reluctance is being exhibited by
members of the house to the suggestion
! that the inheritance tax feature adopt
ed by that body shall be left out of the
bill.
President Taft has been impressed by
the arguments
1t is stated upon the highest authority
however, that he does not think that fed
eral and state governments should Both
resort to this method of raising revenues.
CUSTOMS COURT FAVORED.
The, amendment adopted by the senate,
providing for the establishment of a Gus
toms court, is likely TO be accepted by
! the house conferees. An effort will be
made to fix the salaries Of the judges
{ at 10000 as provided originally by the
amendment reported from the finance
, committee.
The terms Of the senate maximum pro-
vision are meeting with some favor from
the house members of the conference
committee, and the indications are that
ii will be accepted after some minor
changes have been made. This feature
provides that the maximum rates, which
are fixed at 90 per cent, above the i'm
port duties prescribed by the bill, shall
go into effect on March 81, next, unless
the president by proclamation in the
meantime shall have released countries
from the higher rate. ..-...
II the senate gains it's way in relation
to the corporation tax, inheritance tax
and the customs court, there is a feeling
that II will be at the sacrifice of many
OF it's amendments to the dutiable list.
The conferees plunged into their labors
today with vigor and enthusiasm.
The metal and wood schedules were ia
ken up IN the morning hours.
After agreeing TO take vote today
at 4 o'clock on the joint resolution pro-
posing an amendment to the constitution
authorizing the levy OF an income tax,
regardless Of apportionment among the
several states. the house proceeded to
discuss the proposition.
/ Ali the senate amendments to the Phil
ippine bill were rejected by the house to-
/ day and the conference requested by the
senate was granted.
NATION OF LIARS"
IT believe II tends to make a nation OF
lars declared Chairman Payne, in con-
nection with a statement that he was
utterly opposed to such tax in times OF
peace. He believed IL was the most diff
cult Of enforcement and the hardest to
collect.
1T Is. in a word" he said, "a tax upon
the incomes OF honest men and an ex-
emption to some extent, to the rascals."
He hoped IL would never be invoked.
To pass such a resolution at the pres
ent time without having been duly con-
sdered by committee was characteriz-
ed by Mr.. Mccall CMass) as a pro
ceeding OF extraordinary levity." He was
especially antagonistic to the idea of do
ing away with the rule OF apportion-
ment as showing no fealty to Democratic
principles. II was his view that in i'm
posing the tax the power OF the central
government. already so great that it is