The Washington herald., 1909-07-20
TAFT TAX REDUCED
COnfereeS Let Corporations
Down with / Per Cent.
WESTERNERS DISAPPOINTED
Attorney General WtckershRm and
Root Explain the New Amendment.
Senator Bradley Delighted over
Lifting Tax on Leaf Tobacco.
Eyes on Senator Beveridge.

The corporation tax was adopted yes
terday by the conferees on the tarin bill.
II was sent to the committee from the
Attorney Generals Office. and taken I'D
for consideration and adopted at the
morning session Of the conference com
mlttee
It provides a tax OF per cent on the
net incomes Of corporations, instead OF
the 2 per cent tax imposed in the first
amendment as It passed the Senate.
The matter OF exempting certain mutual
benefit corporations was worked out
more in detail by the Attorney General
after much consideration OF the subject.
In the new draft of the amendment It
is understood that holding corporations
are exempted on the ground that the i'm
position OF tex on these corporations
amounts to double taxation.
DisapprOvaI shown.
When It became noised about the Cap
itol yesterday that the committee had
finally adopted the amendment in the
form which exempted the holding COM
panies. there were manifestations OF dis
approval Senator Clapp. OF Minnesota,
who presented the amendment in the Sen
ate including holding corporations. was
much disappointed, and at least two
other Western Senators expressed strong
disapproval OF the proposed exemption.
Attorney General Wickersham and
Senator Root appeared before the con-
ference committee by invitation and eX-
planned the new amendment in detail.
F,r~
given up TO the consideration Of the cor
poration tax amendment At the after
noon session it had been expected that
the cotton schedule would be taken Up
and considered, but the conferees are
still waiting for certain Information, and
Chairman Payne. Of the Ways and Means
Committee. has IN course OF preparation
certain material to lay before the con
ference.
some Progress Made.
A number OF miscellaneous matters
were considered. It was the impression
OF those who talked with some OF the
conferees after the close Of the afternoon
session that the progress made had not
been as satisfactory as Il had been for
! several days previous. The conference
committee has settled the matter OF Leaf
tobacco. which was the subject OF q con-
ference az the White House Saturday
night in which Senator Aldrich, Repre-
sentative Payne. Senator Bradley. OF Ken
lucky, and James c. Wheeler. Deputy
Commissioner OF Internal Revenue, par
tcipated.
There will be no tax on leaf tobacco
and the grower, under the terms OF the
new amendment, will have unlimited right
20 vend his product In the leaf un-
sJemmed. and practically without any
limitation or any requirement that ht
shall keep q record OF his sales. But the
law will require that the growers vendee
shall keep a record OF all sales above ter
pounds.
Bradley Much Pleased.
Senator Bradley IS well satisfied with
the result OF his earnest efforts 70 serve
the growers Of leaf tobacco IN Kentucky
and elsewhere. 1t is a great victory for
the new Republican Senator from Ken
tucky.
The amendment as It was finally adopt
ed is practically IN the form which Mr..
Bradley submitted It. the only change
being made at the suggestion Of the In
ternal Revenue Bureau. with Senator
Bradley's approval, to guard the interests
OF the government against fraud.
For years the Kentucky delegation in
Congress and other Southern men have
been struggling to get this legislation
through Congress. II has passed the
House several times, but always failed in
the Senate.
Eyes on BeveridEe.
There is some curiosity to know Jus,
what has happened to Senator Beveridge's
amendments increasing the taxes on Gig
arettes and manufactured tobacco. It is
the general impression that they VIII be
ultimately agreed to in the conference
committee.
The amendments were really reported
by Senator Smoot, Of Utah, but they en-
body suggestions made in an amendment
Of the SenaJOr from Indiana after he had
led an onslaught on tho tobacco schedule
in the bill. Hearings were held and the
schedules rewritten, and while all Of Mr..
Beveridge's recommendations were not
followed. the committee adopted a very
substantial part OF the amendments orig
inally submitted by the Indiana Senator
President Taft Is understood TO have
come out strongly In favor Of the tobacco
schedule as 1t was written into the Senate
bill finally.
When the conference adjourned Il was
under an agreement to meet this morning
at 1870 o'clock. It was said that the
cOnferees would not hold any night ses-
sion or indulge In any Of the conferences
at the White House or elsewhere. but
would enjoy a season Of rest from their