The Glenwood post., 1909-08-14

Foreign-built yachts are subject to
an excise tax of seven dollars per
gross ton, which is to be collected an
nually on the first day of September.
In lieu of the excise tax the owner
OF foreign built yacht or pleasure
boat may pay duty of 35 per cent.
ad yalorem on his yacht. This will
entitle him to American registry. The
excise tax provision was adopted be-
cause of the fact that some question
has been raised about the ability of
the government to enforce collection
of import duties.
Corporation Tax.
Every corporation. joint stock COM
pany or association organized for
profit, and every insurance company
is required to pay annually an excise
tax of one per cent. upon its entire
net income over and above $4,000
This feature was put into the bill to
raise addition enues to apply on
the treasury deI-it. The section was
prepared by Attorney General Wicker
sham, assisted by other able lawyers
in the administrative circle, and great
care was taken to guard against
double taxation. 1t provides a form
of publicity which will enable the gov
ernment to exercise supervision over
corporations. The form of returns
which must be made by corporations,
and other features of the corporation
tax law were made public in detail
during its consideration in the senate.
1t is estimated that from $20,000,000
to $30,0O0,OO0 a year will be collected
under this form of federal taxation.
The secretary of the treasury is
authorized to issue Panama canal
bonds to the amount of $29O.569 900,
which sum, together with that already
expended, equals the estimated cost
OF the Panama canal. 1t is not intend
ed that the bonds shall be issued ex-
cept as needed to provide money to
carry on the work of canal construc-
tion. The bonds are to be payable SO
years from the date Of issue, and will
bear interest at rate not exceeding
three per cent. When the bonds are
sold the secretary of the treasury will
restore to the working balance the
$5O,OO0,OOO paid originally for the
canal property and the canal zone.
The re-enactment of the provision
authorizing the issuance of treasury
certificates for money borrowed to
meet public expenditures, increases
the amount of the authorization from
s10O,000,0O0 to s20OOOO,0OO A large
number of other provisions that are
in force under the existing tariff law
are included in the conference bill,
with few changes In phraseology in
several cases.
The drawback provision Of the Ding
ley law is incorporated in the confer
ence bill in lieu of the drawback of
the house bill which intended to per-
NIT the substitution of domestic ma
terial In the manufactured article for
export to the same quantity that the
imported material, upon which a
drawback was obtainable, was used in
the manufacture OF similar articles
for domestic consumption An addi.
tional provision was adopted emitting
users of domestic alcohol in the man
ufacture OF perfumery and cosmetics
to secure a drawback of Internal rev.
enue tax to the amount of alcohol
used in an exported article.
Senate Ideas Accepted.
Practically all the administrative
features of the bill which were adopt
ed In the senate were accepted by the
conferees. They include a new maxi
mum and minimum feature, a corpo-
ration tax law instead of the inheri-
tance tax adopted by the house, au-
thorization for a bond issue to raise
money to build the Panama canal, as
well as numerous other features.
The maximum and minimum provi-
sion prescribes duties in accordance
with the rates named in the dutiable
list until March 81, 1910. when 25
per cent. ad valorem Is to be added
automatically as the maximum duty.
The president is authorized to apply
the minimum rates, however. to i'm
ports from a country which gives its
best rates to the products Of the
United States and is made the Judge
IS to whether a foreign country ac-
cords to the United States treatment
which is reciprocal and equivalent
When he finds that this condition ex-
lists he is to issue a proclamation put
ting in effect the minimum rates and
until the time of the proclamation the
maximum rates will apply.
The president is empowered to en-
ploy such persons as may be required
to secure information to assist the
president in the discharge Of the du-
ties imposed upon him and informa-
ton which will be useful to the Off
GERS of the government in the admin
istration of the customs laws. The
reciprocity treaty with Cuba is not af-
fected by the maximum and minimum
provision.
The president is empowered also to
abrogate those reciprocity treaties
which can be terminated by diplomat
ic action. 1t Is made his duty to give
10 days notice after the bill becomes
a law of his intention to bring those