New-York tribune., 1909-07-20
TAX PLAN REDRAETED
HOLDING COMPANIES NOV
EXCLUDED.
Rate Made 1 Per Cent -COWeTecs
Consider Miscellaneous Para
graphs of Tariff Bill.
From The Tribune Bureau.

Washington July 19-The corporation tax was
the principal topic of discussion at to-days meeting
OF the conference Committee the tariff bill. Az
torney General Wic1ersham was present at the
forenoon session when he submitted and explained
his redraft OF the tax. The ConfeTrees were IN an
solute accord on this subject. and while formal ac-
tion not taken the substitution of the cor
poraton for the inheritance tax. this will proba-
blv be done tomorrow. The new draft makes the
rate the tax 1 per cent instead OF per cent as
was provided in the original amendment prepared
by Mr. Wickersham and Senator Root The Clapp
amendment including holding companies In the
coropratIons subject 10 the tax, has been stricken
out and the amendment has been drawn as
clearly exempt from taxation all corporations not
engaged in business for profit.
President Taft has won q complete victory for
the corporation tax. the amended draft OF the At
torney General being acceptable TO him In every
detail Aside from the New York City Representa-
tives opposition TO the tax IN the House appears
be the wane. It has been lost sight of in the
intensity OF the fight the schedules. and while
the House conferrees are not It's enthusiastic ad-
vocates. they express confidence that Republican
will registered against the tariff bill be
cause of their acceptance of this amendment
The afternoon session of the conferrees was de-
voted discussion of miscellaneous paragraphs
which passed at the first and second
readings of the bill The cotton schedule was
sidered some length. but a final agreement it
was not reached The gloves and hosiery para
graphs still in dispute
II Is expected that the pulp and paper. question
will be settled Tomorrow. The Senate conferrees
are holding out for the duty of 81 a ton on print
paper. Mr.. Payne has served notice that he will
not consent 70 this rate. but is understood to be
willing split fhe difference and agree 80
duty OF 81. The Dngley rate print paper is Sc
a ton and the House rate 81 Representative
Manns who was chairman Of the select committee
which Investigated the pulp and paper question Is
holding ont for the 81 rate. which he recommended
but II is believed he will not raise serious obiec
tfon TO the adoption Of SO rate, provided the
taliatory provisions Of the pulp and paper para
graphs broedened. generally understood
that the representatives Of the paper industry are
willing TO accept a modification Of the retalatory
sections which will offer greater inducements to
Canada TO diminish abolish all restrictions upon
the expectation of pulp wood.
The Bradley amendment exempting
stemmed leaf tobacco sold by farmers and original
growers from the tax of 6 cents pound was
adopted to-day. pToviso added which is in
tended 10 prevent fraud against the revenue laws
No record will be kept ef sales by growers. but in
all sales in of ten pounds by others than the
original growers the tax and all the other re-
strictons of the internal machinery will be
applicable
HOW Mr., CULLOM WILL VOTE.
Nj Culom, of the Senate conferrees left
Washington for Atlantic City to-day Mrs Cullom
is i'll al that resort. and it is not expected that
the Illinois Senator will take part In any of the
his vote for free hides, for free coal or for n
reciprocity arrangement for the Senate rates on
hosiery and gloves and for the Senate amendment
for countervailing duty crude petroleum.
Representatives of the tanning Industries wkO
Were at the Capitol To-day told members Of the
conference committee that they would gladly accept
the House reductions soles and upper leather
and shoes If hides placed the free list
Some of them would agree a further reduction
shoes probably TO 10 per cent. If in return they
received free hides. The tanners assert that the
Western Senators who insisting that leather
and shoes shall be free II hides are TO he taken
from the dut:able list making proposition
which, though fair its face would work in
justice them. They say that tanbark Is s2 a
cord higher in the United States than in Canada
and that with free leather Canadian tanners would
have great advantage them, the Dominion
government permits the free importation Of que
bracho, biehromate Of soda and other important
and necessary tannic acids which heavily taxed
by the United States.
The iron paragraph taken up to-day, but
was not considered al length Mr. Burrows insist
ed that the Senate duty OF p cents ton abso-
miners of the upper peninsula OF Michigan. while
Mr.. Payne just positive that no American
interest would be injured by placing iron ore on
the free list. a telegram from Charles NJ. Schwab,
president of the Bethlehem Steel Company, was
laid before the conferrees to-day. Mr.. Schwab said
that unless iron placed on the free list
great harm would result TO the steel industry in
the East.