The Washington herald., 1909-07-16
TAFT MAY WIN OUT
ON DIVIDEND TAX
House COnferees' Opposition
UndergOes Change.
ALDRICH AND PAYNE CALLED IN
Senators and Representatives Who
Are Preparing TariR Bin for Final
ReEo=t Admit that Extraordinary
Progress Has Been Made in Con-
sideratiOn OF the Measure.

Il appears almost certain that President
Taft's Intervention will result in an agree
nent on the part Of the House tariff
eonferees 10 accept the Senate provision
for imposing a per cent tax on the net
incomes OF corporations.
The President talked the matter over at
length with Senator Aldrich and Repre-
sentative Payne yesterday.
1t was the understanding IN well-in-
formed quarters last evening that Mr..
Payne's opposition to the corporation tax
had undergone a change, and that there
was every indication that the House con-
ferees would recede from their opposition
to the corporation tax and agree 10 its
substitution for the inheritance tax pro-
vision Of the House bill.
May Get Experts.
The President has apparently also won
victory In his desire for the retention
in the tariff bill Of the Senate provision
authorizing the President 10 employ ex-
perts for the purpose OF assisting him in
the discharge OF the duties imposed upon
him by the maximum and minimum pro-
visions Of the proposed tariff Law.
The victory. however. will be partial
only. Opposition was made 10 this section
by the House conferees on the ground
that it provided in effect for the creation
OF tariff commission, 70 which the
House was vigorously opposed.
House leaders. including Speaker Can
non. contended that the appointment OF
such a commission would be IN the nature
OF q delegation OF legislative authority in
tariff matters 10 persons who were not
members.
Barley the Subject.
After two sessions. one in TIE morning
and one in the afternoon. the conferees on
.he tariff bill adjourned shortly before 6
O'Clock until this morning at 1870 o'clock
When the conference broke w the ques-
ton OF the duty on barley was under
consideration.
All Of the conferees were agreed that
extraordinary progress had been made
in the consideration OF the bill. The
chemical schedule and the earth and
earthenware schedule were practically
completed. Considerable progress was
made with Schedule c. relating 10. metal.
Some work was done on the agricultural
schedule.
II had been the intention OF the con
ferees 10 take up the cotton schedule and
dispose Of IT, but II was evident before
the subject had been considered at length
that there were wide differences
The conferees have agreed among them
selves not to discuss the conclusions
which they have reached actually fixing
rates. because they are aware that 10
disclose what they have done viii simply
be TO invite onslaught from the industries
affected.
The important subjects. such as coal.
petroleum. hides. lumber. zinc. and iron
ore. viii not be disposed of until the last
The President has made Il known that he
IS in favor Of lower duties on nearly all
Of the articles named. and IN some in
stances desires an actual transfer from
the dutlable 70 the free list
Seek Free Hides.
He IS in favor OF free hides. IN the
face Of the fact that certain powerful
Western Senator's from the cattle-raising
States have told him that they win not
permit the bill to pass IL It carries free
hides.
After the conference broke up yester-
day one OF the conferees expressed the
opinion that the rate finally decided upon
would be 10 per cent instead OF Is per
cent. as in the existing Jaw, and is as
given in the Senate bill. The House bin
put hides on the free list, and the senti-
ment Of the House IS overwhelmingly IN
favor OF II.
But the Senate Committee on Finance
restored the duty OF Is per cent
Mr.. Taft has evidently been impressed
by what the boot and shoe manufacturers
Of New England told him. They declared
that foreign manufacturers Of leather and
leather products were getting their raw
material from Americans Is per cent
cheaper than American manufacturers
could secure them
What Taft Wants,
The President has made known TO the
conferees that he would Ike to see the
duty on lumber reduced to the House
rates. This would mean a decrease in the
duty on rough lumber from S150 10 800
a thousand. The present disposition Of
the conferees is 70 agree on the Senate
rate Of $50 and 10 carry out the Senate
increases on the finished products OF
rough lumber.
The President IS said 70 be in favor OF
knocking out the countervailing duty put
on crude petroleum by the Senate bin.
and TO believe that iron ore should be
put on the free list. as it was in the
House bill
He is said 20 favor the arrangement
contemplated by the House bill for re-
ciprocal free trade in coal with Canada.
The President was advised by some Of
the conferees Of the probable existence
OF an understanding between the ad-
vOcates' of higher duties on hides. lum-
Der, coal oil, and iron ore, and was told
that If he could guarantee a sufficient
number Of votes 70 carry through the
legislative programme. there would be
no difficulty in securing an agreement
by the COnferees for S11hefa rffaT -.oa.,,