The new era., 1909-08-19
the provision granting farmers ~

Tne PROVISION granting IhrueEs -
free sale OF leaf tobacco places Q
restriction on the retail dealer which
requires him to record every sale
amounting to two pounds or more to
one person in one day. A number OF
other ironclad requirements are In
cluded in the redraft Of this section
adopted by the conference committee.
by which 1t was intended to prevent
any frauds upon the internal rev
enues. and at the same time give as
much of local market as possible -
the tobacco grower. The grower ha-
contended for unrestricted sale OF
amounts up to ten pounds.
Foreign-built yachts are subject to
an excise tax of seven dollars per
gross ton, which 10 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 valorem 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 IS 900.
This feature was put into the bill to
raise additional revenues to apply on
the treasury deficit. 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 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 $4,000, 900
to $30.000,000 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 $290,569, 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-
ton. 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.O0O,00O 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
$10O,OOO,O0O to s2OO,0OO,OOO. 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
drawback was obtainable, was used in
the manufacture of similar articles
for domestic consumption. An add.
tional provision was adopted emitting
users of domestic alcohol in the man
ufacture of Derfumery and cosmetics
to secure drawback of internal rev.
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 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
we'll as numerous other features.
The maximum and minimum provi-
sion prescribes duties in accordance
with the rates named in the dutable
list until March 81, 1910, when %
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 country which gives its
best rates to the products of the
United States and is made the Judge
as 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.
Tho nresident is empOwered tn em-