Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1909-06-24
TAX AMENDMENT
READY THURSDAY
TAFT WILL SUPERVISE FINISH.
ING TOUCHES ON PER CENT
LEVY PLAN.
CONFERENCE AT WHITE HOUSE
WIckersham-Root Draft to Be Scrutin.
lied by observation-disclosures at
White House Will Dispose Of
Pending Question.

Washington, June %. Presiden
Taft will personally supervise putting
the finishing touches upon the pro
posed amendment to the tariff bill
providing for the imposition of a two
per cent tax upon the net earnings O.
corporations.
This will be done at conference al
the White House today.
There will be present Attorney
General Wickersham and Senator
Root, who are drafting the amend
Senators Aldrich, Burrows, Penrose
Hale, Cullom, Lodge, McCumber
Smoot and Flint; constituting the Re-
publican membership of the finance
committee. The draft prepared by
Messrs. Wickersham and Root will be
discussed at the conference.
To Be Ready Thursday.
Such changes as are agreed upon
will be made by the attorney general
on Wednesday and it is expected the
perfected amendments will be ready
for Introduction in the senate on
Thursday.
The attorney general and Mr.. Root
had long session at the capitol yes.
terday and reached an agreement on
practically every feature of the cor
poration tax plan.
The portion which is giving them
the greatest trouble relates to the
government control of corporations
necessary to carry the law into sue
cessful operation.
There has been no little opposition
to subjecting the corporations to the
amount OF publicity that will be re-
CURED for the enforcement of the law
and to prevent manipulations of
stocks and bonds for the purposes of
evasion.
Members of the finance committee
as we'll as Mr.. Root and Mr. Wicker.
sham agree with President Taft that
such publicity must be given and that
without it the corporation tax law
would be failure.
This feature, it was said yesterday.
certainly will be incorporated in tho
amendment. The authors of the draft
however, are experiencing difficulty
in finding an effective way Of reach.
ing the situation.
Among the details of the bill de.
termined are that the tax to De levied
will be collected from all corpora
tons. All banks will come within tho
range of the tax bill reductions which
will be allowed national banks to the
amount OF taxes paid upon their circu-
lation.
An important provision to be in.
cluded in the bill is definition of net
earnings.
This will follow as nearly as posi-.
BILE the definition of the earnings col.
1ected in the interstate commerce act
relating to railroad corporations.
Taft Is Optimistic.
President Taft is decidedly optimis.
tic over the outlook for his corpora.
ton tax, but a number of senators
who called at the White House yes:
terday declared that the proposition
would keep the senate in session until
long past August /.
Senator Elkfns was one of the pres
ldent's callers and he declared that
he and number of other senators
would nave some remarks to make in
the senate when the new scheme of
taxation is under consideration.
The West Virginia senator believes
that all corporations would attempt
in some manner to avoid payment of
the tax. Additional salaries and all
manner OF expenditures would be re.
sorted to-, he thinks.
President Taft, on the other hand,
does not believe that two per cent
tax on net earnings is heavy enough
TO make any of the larger corporations
resort to evasive measures. AS to
bonds it is possible, the president
feels, to provide limit for the issu.
ance of such securities, based upon
the capital stock, that will prevent
corporations from transferring all OF
their securities into bonds, the inter. |
est on which always is paid from
gross earnings. There seems to be
no way in which the bond-holder can
be reached under the new tax excent
by double taxation on the corporation
itself, which is not contemplated
Some provision may be made as tn
the issuance of bonds in the future
to provide that the interest shall bs
paid only from net earnings.
Governor Hadey's Father Dead.
Desoto, Kan, June 22.-James M,
Hadley, father of Governor Herbert