The free lance. (Fredericksburg, Va.) 1885-1926, 1909-07-13
FIGHT AGAINST
CORPORATION TAX
House COnfeTees Plan a Wg-
OTOus Opposition
NOT LIKELY TO DROP IT.

To Defeat u Would BE 70 Violate
Agreement Made Win President
Tsft-Dinerenees over the Tariff
Bill Are Not So Great
Washington. July -. - Before the
tarin bill went into conference mem
b0rs Of the finance committee who eN-
pected 10 serve as cOnferees were very
confident that less than a week would
sufice for an agreement TO be reach
ed. One session OF the conference
committee seems 70 have changed that
opinion. and IL Is now pre- iicted by all
the coaferees that the bill will not be
reported short % ten d. from the
time Il went into eonft = ice That
would mean next Saturday at the
earliest
There has already developed a
strenuous opposition TO the admins
tration policy OF a tax on net earnings
OF corporations One Of the house con
ferees announced that there would be
a long and bitter fight before he and
his colleagues would yield TO this
proposition. With the knowledge that
Senator Ndrich does not believe IN
this tar and only accepted ii 70 pre-
vent the adoptioG Of an income tax
provision in the senate bill there are
strong suspicious that an effort viii
be made 70 drop this feature OF the
bill In conference.
Il Is not believed such an effort will
be successful Il Is not believed that
the Republican leaders represented on
the conference committee can AFFORD
10 break the agreement made with
President Taft when be had this tax
provision framed and sent 70 congress
with his Recommendation FOR its
adoption.
Aside from the uncertainty as 20 the
exact effect % the wooden. cotton and
silk schedules. the schedules In which
the purchasing public is most inter
ested. do not show any great increas-
IS. There are very few increases in
the senate bill over the Dingiey law
but the house bill keeps below IL
These senate increases are not as a
rule on what might be termed neces-
stiles. unless wheat. potatoes. lemons.
ales and beer be so considered. The
senate put wheat al 30 cents a hushel
1t is now - cents. Flour made from
wheat Is not changed in either house
OF senate bill from what IL Is IN the
present Law. The senate put a duty OF
- cents a bushel on potatoes. against
g cents il the house ana in the pres
ent law. No one expects for a mo
ment that this big increase will re-
main. Lemons have been Increased
one-half a cent pound over the pres
eut law Ale and beer have been In
creased cents a gallon over the house
bill and the present Law
The buyers OF boots and shoes
should get cheaper footwear II the
tariff has anything % do with prices
The house has reduced existing rates
on boots and shoes from 25 per cent
al vaiorem 10 x per cent The senate
raised /; 10 20 per cent. which IS still
3 per cent below the existing rates. On
leather the reduction BY the house was
from 20 per cent 70 8 per cent The
senate raised this 10 IS per cent. still
5 per cent below the existing law.
Lumber was reduced by the house
70 one-haf the existing rate. OF 20 81
per thousand The senate Increased
that rate 10 $50 thousand. still 50
cents below the present rates. Print
paper was reduced by the house TO
81 a ton. and the senate increased Il
10 81 a ton OF 81 below the present
rates.
The features OF the bill that promise
the greatest contention IN conference
are the corporation tax. the maximum
and minimum rates the customs court
and one or two other sections OF the
administrative features The senate
has reversed the policy Of the house
by making regular rates OF duty the
maximum 10 be levied against foreign
products and the minimum 10 be the
| concession given countries which show
discrimination in favor OF American
goods. Its provision IS a concession
instead OF a retaliation.