The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-06-23
TAX
LAW DISCUSSED
IN DETAIL
MOST IMPORTANT CONFERENCE
HELD AT WHITE HOUSE.
Measure Is Viewed From Every Angle
lin Form OF an Amendment, II Will
Be Produced In the Senate.

Washington, June 22.-Details OF the
proposed measure for the taxation oi
| net earnings OF corporations were ar
ranged tonight at the most important
conference that has been held at the
| White House since Mr. Taft assumed
the presidency.
There were present as the Npresi-
dents guests at dinner Attorney Gen
eral Wickersham and Senator Root.
who are charged with the work of
drafting the measure; Secretary Knox,
Senators Aldrich, Burrows, Penrosc.
Hale. Cullom, Flint, Smoot McCumber
and Lodge Speaker Cannon, Repre-
sentative Payne and Representative
John Dwight of New York were also
present
For two hours the corporation tax
measure, which had been prepared in
the form of an amendment to the tar
in bill. was viewed from every angle.
Many changes In form were suggested.
the carefully prepared copies given to
each member of the party by Attorney
General WickerSham were returned to
him at the end of the conference.
President Taft himself suggested
that the copies should not be taken
by the members of the party until the
amendement had been perfected. All
agreed not to make the form of the
amendment public until it is ready to
be produced in the senate
The terms of the amendment
provide that all corporations hay-
ing capital stock and organized
for profit shall pay a tax of
2 per cent on their net earnings. Cor
porations coming within that .destgna-
ton willIbe compel IIef1to make fetfirns
TO specially named zagel 1.-THE bu1
reau Of internal revenue of the treas
ury department., giving the amount of
their gross receipts, L9 eapitaf ~ stock
bonded indebtedness and all otherJvis-
ible debts.
broadest possible way the character
of losses which may be deducted from
the net earnings upon which the tax
Is to be collected.
The 2 per cent tax will apply to all
organized for profit, but
each corporation will be allowed a
ve-thousand-dollar exemption
Any corporation which makes false |
report Will be subjected to a penalty, |
he amount Of which was not decided |
might. Most Of the participants in the
conference expressed. the opinion that |
I should range from 81 900 to $4,000
The tax Will be collected upon the
entire amount OF preferred and COM
non stock OF every corporation and
lpon the bonds of corporation where
hey exceed the total amount of cap
tai.
1t is intended that the bill shall be-
'ome operative Immediately on its
'assaSe. The life Of the measure was
pade indeterminate. The present
ears tax will be collectible July /,
80
Leaders In the senate and house
ave been flooded with kilograms from
operations expressing fear that the
aw would be drawn in such form that
nscrupulous agents Of the internal
evenue bureau might use information
o as to inJure the business of a cor
Grafton. This was discussed tonight
nd 1T was decided that only especi-
lily designated agents OF the bureau
hould be permitted to interrogate cor
regarding their business.
1t was decided that all Incorporated
companies organized for
roht shall be brought within the
7rns oil the proposed corporation tax
lw. This Will not exempt so-called {
MUTUAL insurance companies Neither {
III 1t exempt cfrateranF blinSurhnc6