New-York tribune., 1909-06-23
TERMS OF AMENDMENT.
Penalty Discussed, but amount Not
Decided.
e. In. Assncia.sd Prsss.1

Washington June a2-The terms of the corpora
Sion tax amendment finally agreed or provide
that all corporations having capital stock and or
Esnized for profit shall pay tax Of per cent on
their net earnings Corporations coming within
that designation VIII he compelled 10 make re-
Turns 10 specially named agents Of the bureau
Of internal revenue Of the Treasury Department
giving the amount their gross receipts, capital
stock bonded indebtedness and s1 other visible
debts Separated from these returns the corpora
1ions viii be compelled 10 report the amount OF
their ret receipts after deducting their general
and ordinary running expenses, interest on bonds
NJ - the amount Of TIE capital stock Of the cor
1oorstfon interest on notes and other forms ~
tangible Indebtedness. and any actual loss that
-nsv have been incurred in business. which loss
was not made ,lp by insurance salvage or other
form Il return
The amendment will define in the hroadest pos
ehle way the character Of losses which may be
deducted from the net earnings which the tax
* te b. collected These losses will include bad
accounts of = mercantile corporation. losses on
recurities held by hanks, unconectible notes and
81 other forms % had debts which are usually
charged 70 profit and loss accounts
As has been stated before. the per cent tax
viii anplv 10 al corporations organized for proht
faIr 2 s5a exemption will he allowed each cor
Eoration which means that the tax viii not be col
lecred except on earnings in excess Of S5.con
Any corporation which makes a false report 10 an
agent Of internal re-enUe who has been designated
~ collect information regarding earnings Or has
-nzde = fraudulent return on any of the subjects
covered by the Law viii re subjected to q penalty
Ire Of this penalty is the only feature OF
sbe fiU z-ilioh was not decided tonight. Most Of
1he participants n the conference expressed tne
opinion that this penalty should range from S,"o
70 80 on the amount TO he fixed by United States
court on presentation Of all the facts connected
-z-th such fraudulent terms.
The tax will be collected on the entire amount
uf preferred and common stock Of every corpora
ho- of n0-1
syoeed the total amount Of capital.
II IS intended that the tax shall become op-
erative Immediately the passage Of the law
The life Of the measure was made indeterminate
instead of two years Or some other fixed ETnita-
ton such had been suggested originally The
present years tax viii be oollecrshe July /. 1910
the baginnng o. the next fiscal year.
Leaders in the Senate and House have beer
1ooSed with teiegrarns from corporations express
ing fear that the Law would he drawn in such
form that interruptions agents Of the internal
revenue bureau might use information obtained
IN some way 50 injure the business Of
corporation. This danger Was discussed tonight
ana il was decided that orlv especially designated
agents of The bureau should he permitted 70 in
+e-rogste corporations concerning their business.
The corporations ma Ike their returns directly 70 the
bureau of internal revenue in washington
Il vas decided st the conference tonight that all
incorporated insurance companies organized for
pradt shall brought within the terms Of the pro
posed corporation tax law This will not exempt
so-csUed mutual Insurance companies which
admittedly which ~ proved - have been or
Esnised as profit taking institutions Neither VIII
II exempt fraternal Insurance concerns which come
within that Interpretation Of the law.
The carefully prepared copies q the amendment
given 70 the conferreas by the Attorney General
were returned 70 him Al rha end of the conference
president Tste himself suggested that the copies
should not Re taken ny the members Of the party
sntl the amendment had been perfected All
ssreed make the form of amendment public
Until i is ready 70 hs introduced in the Senate
& Finance Committee amendment 10 the tariff bill