New-York tribune., 1909-06-21
TO EXCLUDE BOND FUNDS
DECIDED At WHITE
HOUSE CONFERENCE.
To Tar Interest Money Would
amount to Double TaratiOn IN
Some Instances, 1t Is Said.
EFron III. rrih1ns Rurean-i

FFron The Tribune Bureauf
Washington, June Cot practically de
cided at a conference at the White House to-
night among the President, the Republican
members of the Finance Committee and Senator
Root that the funds necessary TO pay the inter
est on bonds cannot be included net earnings
Of corporations subject to the tax proposed by
the President, in some instances, at least,
this would amount to double taxation.
The President was assured by the Senators
that the tax of per cent, as he proposed would
WELD a revenue Of not less than $4,000, 900. and
the sentiment of the conference seemed to be IN
favor of lowering the rate Of taxation, provided
final estimates sustain these assurances 1t will
be necessary In this connection also TO ascertain
the views of those Republicans who have been
won over to the corporate tax from the income
amendment of Senators Cummns and Bailey.
All definite decisions deferred until d fur
ther conference, when the Attorney General can
be present It Is expected that the Attorney
General and Secretary Knox will have confer
ence with the President on the subject to-mor-
row before Mr.. Wlcfersham goes before the SUD
committee Of the Finance Committee
While no details of the amendment were ar
ranged definitely tonight, Il can be stated that
the amendment will apply TO all corporations
without regard to their capital stock II Is like
". however that the tax will apply only to earn
Inpa in excess Of $4,000 a year This will
move the burden from small corporations with
out subjecting the measure to constitutional OBJ
jections by reason Of the exemptions This pro
vision worked out by members OF the
Finance Committee to-day, and explained
to President Taft The latter recognized the
wisdom OF the suggestion and said that If 1t
strikes the Attorney General and the Secretary
Of State as favorably It does himself the
amendment viii be drawn accordingly.
ATTORNEY GENERAL ABSENT.
When the draft of the amendment prepared
bv Attorney General Wickersham was consid-
cred bv the Finance Committee yesterday 50
many divergent views were presented as To the
scope OF the proposed enactment and as to the
meaning of some OF its important parts that It
was deemed advisable 10 have a fun and frank
talk with Mr. Taft before attempting to perfect
the Wickersham draft. The Attorney General
IS absent from the city. but Is expected here to-
morrow when he VIII be called into consuIta-
ton by the Finance Committee.
1t is apparent that the Senate leaders feel
that the question Of special taxation In the
tarir blu is peculiarly one In whose settlement
the Presidents views are entitled TO the great
est weight The Wickersham draft was not suf-
hciently explicit to clear up the differences
which had developed, and the leaders we're anX-
ious that Mr. Taft should sit down with them
al the council able and elaborate the practical
workings OF the substitute which he purposes
for the income tax. The leaders are fully aware
that in perfecting the Wickersham draft II Is
necessary for them always 70 keep in mind MT
Tafus interest in this question and his anxiety
that no amendment which is reported Tor the
income tax shall be subject to the criticism OF
being evasive and of no practical use
/ TRYING TO CARRY OUT PRESIDENTS
WISHES.
Mr. Taft wants an amendment which he can
/ defend before the country as reasonable and et-
/ fective and which will not array against It's
/ enactment the legitimate corporate interests.
/ The vote on the question of the adoption of the
! Bailey Cummins income tax amendment is so
! close that If the Finance Committee in perfect
! ing the Wickersham draft should make II a
/ milk and water measure and lose the personal
support of Mr.. Taft there is no doubt the sub
! stitute would fail and the income tax would he
/ adopted. There is reason tc doubt that the
! leaders trying in good faith TO carry out MT
/ Tafts wishes. They express confidence that
/ they will be able to whip into shape an amend
! ment which will be acceptable TO all friends Of
! the administration in the Senate. II they meet
! Mr. Tafts wishes-and there is every indication
/ that they will-the passage of the amendment in
/ the Senate is believed by the leaders to be as
sured. and it's acceptance by the conference
/ committee and the House TO be equally GER
/ tain.
one member OF the Finance Committee who
has been disposed to be somewhat hostile to
the corporation tax declared after the confer
ence that he had not the slightest doubt that a
satisfactory solution of all the problems con-
nected with the Presidents proposition would
speedily be solved. He said all definite conclu-
sons had been deferred until the return of the
J He q all
| taxes were burdensome, but he had been con-
vinced that this would be no more so than the
! average tax.
The members of the committee were enter
tanned at dinner by the President and Mrs Taft
this being the first time Mrs. Taft has been able
| to appear as hostess to any considerable COM
| pany. Mr.. More, the Presidents brother law,
was also present at the dinner. as was Senator
| Root