The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-07-13
TAFT FAvORS
LOWER RATE
OF TAXATION
Under the New Scheme Cor
pOTatiOnS Will Pay Only
One Per Cent.
ANOTHER CONFERENCE
AT THE WHITE HOUSE
sTAND-PATTERs HAVE THE EAR
OF OBSERVATION-DISCLOSURES
IN CONTROVERSY

Washington, July 12.-At a conference
at the White house today it was decided
that the rate to be levied under the new
corporation tax shall be reduced from
per cent to 1 per cent and that in re-
drafting the measure now in conference
along with the tariff bill to meet vari-
Gus objections that have been raised,
consideration shall be given the de-
mands OF the mutual life insurance COM
panies.
President Taft was the central figure
IN a number of conferences today. He
told several of his callers today that he
is finding the conferees conciliatOry and
that ne is hopeful that a satisfactory
measure viii be presented to him for his
signature. The conference report should
be available, according to the presi-
dents information, by the end of next
week.
insurance Companies Protected.
As to the mutual insurance companies,
it is stated that the redrafted bill will
provide what portion of the income may
Be deducted before the tax on moneys
available for dividends is assessed 1t
viii be SO arranged that the tax shall
fall upon stockholders profits. Allow
ances viii be made for annuities and
other long term contracts which the
companies have outstanding.
The president is said to feel that the
withdrawal of the corporation tax in IA
vOT of the inheritance tax adopted by the
house would be unfair to a number of
senator's who supported the corporation
tax in preference to the income measure.
1t was the president who first suggested
a graduated inheritance tax. Such
strong opposition to this measure devel-
oped in the states where an inheritance
tax already is levied that he brought for
ward the corporation tax as the next
best means of Wiping out the treasury
deficit
Favored by Taft.
It is authoritatively declared that as
to the maximum and minimum the pres
ident is in favor Of the administrative
features of the senate bill.
It is considered to be less drastic than
the house provision, which has been
characterized in the senate as retalia-
tory in its nature, whereas the senate
provision is an attempt toward Tecip-
rocaI trade agreements
Senator Aldrich Attorney General
Wickersham. Senator Burrows, Senator
SmOOt, Representative FOrdney and
Speaker Cannon were among those who
discussed the tariff and the corporation
tax with the president today.
Metal Schedule Held UP.
Determined opposition was shown by
the house conferees today to the in
crease sfrom IL cents to rs cents a
pound which the senate made on lead
bullion. AS result this schedule was
held up and consequently there has been
no settlement of the amendments to the
item in the chemical schedule, such as
paints. the basis of which is lead. This
furnished a good example Of the man
ner in which the cCnferees have pro-
ceeded.
The more important of the subjects
passed over in the metal schedule are
iron ore, lead bullion and zinc ore and
bullion. There are a large number of
amendments relating to finished prod
ucts of these ores that cannot be dis
posed of until the main subjects are
settled.
Senate May Weaken.
Iron ore was placed on the free list
BY the house, and made dutiable at rs
cents a ton by the senate. The Dingley
rate is 40 cents a ton, The general i'm
preston is that the senate will make a
concession to the house, and that as
compromise the rate may be fixed at 10
or Is cents a ton.
The house provision for free hides,
struck out by the senate and the exist
ing rate of Is per cent ad valorem sub
stituted, and for 81 on lumber, which
rate was materially increased in the
senate, will be the subjects Of contests.
It is not likely, however, that they will
be reached this week.
Tax on Cotton 5agsing.
That cotton bagging, which was put
on the free list by the senate, is not to
remain undutiable is one Of the first pre-
dictiOns made in regard to the proposed
action Of the conference committee on
the bill The house conferees contend
that a number of manufacturers of cot
ton bagging would be compelled to shut
down if that article should remain on
the free list and it is said the senate
conferees viii not need much urging to
agree to return bagging to the dutiable
list.
Another prediction made with regard
to the action of the conferees is that the
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