The midland journal. (Rising Sun, Md.) 1885-1947, 1909-07-02
WASHINGTON LETTER.

The tariff debate drags slowly on and
the flow, of oratory, like Tennyson's
brook. seems destined to go on forever.
On. Friday Senator Aldrich, for the Com
mittee on Finance introduced the cor
poration tax amendment. Despite lurid
predictions of failure to reach an agree
ment, extravagant and exaggerated re-
ports of "insurmountable obstacles - and
emphatic declarations that the entire
subject of special taxation will be post
poned until next winter, the Taft amend
ment has pursued perfectly normal
course, without hitch and without OBJ
stacle, and is now before the Senate as a
substitute for the Bailey-Cummins income
tax amendment. The original draft was
prepared by the Attorney General and
Senator Root under the supervision of the
President himself. It was then submit.
ted to a conference at the White House
which was attended by the lawyers of
the Cabinet and the Republican members
of the Finance Committee. Certain
changes having been suggested, Messrs.
Wickersham and Root prepared second
draft embodying them and this was SUBJ
mitted to second White House con-
ference at which Speaker CANNOT and
Representatives Payne and Dwight were
present in addition to those who had at
tended the first conference. The ameud-
nient met with the unanimous approval
.of all present. and the leaders of the
House as well as those of the Senate pre-
dicted its speedy enactment.
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Briefly stated, the amendment provides
for tax of two per cent on the net profits
of all> corporations and insurance COM
panies. except that mutual savings banks
are not taxed. Corporations having a
bonded Indebtedness are permitted to
deduct from the profits on which they
will be taxed sufficient sum to pay the
interest on their bonds not in excess of
their capital stock. In word, it pro-
vides for an income tax for corporations
but does not extend it to the incomes of
individuals as would the Bailey. Cummins
amendment.
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The Metropolitan press is filled with
denunciation of the Taft tax which, it
insists, will prove unjust and inexpress-
IDLY unpopular. When it is recalled that
most OF the great newspapers of the
country are owned by corporations and
will, therefore, be subject to the tax.
their opposition is not perhaps surprising.
A glance ahead at the results of the Taft
tax also reveals something of the reason
back of the frantic efforts of the big cor
porations to misrepresent and render I'M
popular the Presidents proposition. For
instance, it is estimated that the Standard
Oil Company will under this amendment
be, compelled to contribute between
$500, 900 and 5000, 900 annually to the
support of the government The Steel
Trust VIII have to pay tax between
these figures. The American Telegraph
and Telephone Company will probably
have to pay about 500, 900 and the tax
of the Tobacco Trust will exceed $500, 900.
The General Electric Company will pay
between $23o, 900 and $500, 900; and the
Copper Trust, including the Aulalgamat.
ed Copper Company, will contribute over
$500, 900. Even the sugar trust will
have the pleasure of paying about
$I65, 900 towards Uncle Sans expenses.
and like sum will be contributed, no
doubt with little cheerfulness. by the
International Harvester Company. Most
of the big railroads of the country will
pay over $500, 900 piece into the federal
treasury.
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