The Washington herald., 1909-06-27

Congressional.
Regarding It as the thin wedge open
ing the way 10 complete ultimate Federal
control and supervision Of all corpora
items, many conservative business inter
ests have set up a great howl against the
Taft suggestion of A corporation tax. for
II the nature Of the thing the execution
OF such a law must carry power TO ex-
anime the workings Of corporations thus
taxed, and this was plainly indicated in
the Presidents message on this subject.
SIN, there appeared 10 be no alternative
open 10 the Senate save the income tax
plan and so as the least of what some OF
the conservatives see 10 be two evils they
have chosen this plan. And so. with
Mother Nature running a hot-air trust
full blast right over the dome Of the Cap
itol and the sharp horns of a political
dilemma remorselessly approaching, the
Senators have shown a disposition TO
hasten the consideration OF the tariff bill
and bring the various issues 10 a vote at
an early date.
President Taft, as the leader OF his
party, has followed up his corporation
tax lead OF the preceding week by sum
Fnoning the leaders Of all factions in Con-
Eress TO a conference at the White House
!n an effort TO agree on the precise terms
of the proposed amendment. The SINH
official announcement was made Monday,
after Attorney General Wickersham had
spent several hours at the Capitol with
members OF the Finance Committee, that
the tax would be levied on only those cor
pcrations whose net earnings were 5000
o. more, and net earnings TO be under
stood as all moneys left above operating
expenses. Then another conference was
held al the White House Tuesday night.
1n which Speaker Cannon, Leader Payne,
and several others were present. besides
Aldrich, Root. and Finance Committee
men. Secretary Knox. and Attorney Cen
eral Wic}ersham. The chief objection
that he'd been raised against the proposed
tax by corporation critics was thought 10
have been eliminated by dropping the
publicity feature of the plan. Instead OF
the sweeping inquisitoriai powers con-
templated IN the bill as described in the
Taft message information Of the finan-
ciai status OF the corporations was 20 be
confined to the official statements. such
as are published In the manuals. Pro
ceedlngs only 20 be started when there Is
presumptive evidence OF fraud.
Capitol helped to bring a number Of tar
IF disputes 70 a head. On Tuesday the
paragraph on hides was disposed of. the
committees recommendation Of a i per
cent duty being adopted by a vote Of 46
20 80. and all substitute amendments be-
ing easily defeated. Ten Democrats voted
for the duty on hides. while sixteen Re-
publicans were recorded against IL The
tariff Democrats were CulberSOn. Bailey,
Fletcher. Foster. Hughes McEnery, New
lands. Smith, Stone, and TaliaferO. Cum
Minis had tried 10 reduce the duty 70 10
per cent. but 10 no effect. A number OF
the Republican regulars broke over the
traces to oppose the hides tariff. includ-
ing Lodge, Root. Burton, Cullom. Smith
OF Michigan. Burrows. Briggs. Burnham.
Crane, Frye, and Dupont, besides four
insurgent Republicans.
On Wednesday the Senate acted on sew
erai other important items. the commit
tee being sustained as 10 lumber and coal.
but defeated on the question Of pineap-
pies On motion of TaliaferrO the duty
on this tropical fruit was raised from s.
a thousand. as proposed by Aldrich. to s.
q thousand by the vote Of 81 70 90. nine
Democrats voting for the increase and
fourteen not being counted. The duty OF
50 cents a ton on bitUminOus coal and Is
reciprocity with Canada was struck out
The lumber rates as adopted on motion
OF Aldrich ranged from % cents a thou
sand feet TO $50 a thousand. according
to the degree Of planning and finishing.
Twelve Democrats voted with the Re-
publicans for this lumber schedule OF
duties.
Aldrich next gave notice Of a new pulp
amendment. designed TO give the Presi-
dent discretionary power tOestrike back
az Canada's export duty by doubling the
rate on all print paper valued at cents
a pound or less.
Beveridge held the boards with four
hours speech Thursday in advocacy Of
his proposals TO raise S21, ,000,O0O by In
creasing the tax on smoking tobacco and
cigarettes and re-enacting the coupon
feature OF the Dingley law, but a vote on
this matter was deferred
Bailey defended the position Of those
Democrats who. like himself. had voted
against free raw materials, urging that
his. party had abandoned that policy
years ago IN favor Of tariff for revenue.
Considerable opposition was voiced
against the Aldrich proposal 10 advance
the rates OF the Payne bill in the leather
schedule, but without effect, for the duty
on sole leather was increased from 3 per
cent ad valorem to 10 per cent. and that
on boots and shoes from Is per cent ad
valOrem TO 20 per cent
On motion OF Lodge, the duty on col
lodion and other compounds entering into
the manufacture Of celluloid articles was
raised from 25 per cent ad valorem to 35
per cent
On Friday the corporation tax amend
ment as revised and Tephrased by the
Presidents advisers, Root and Wicker
sham. was presented TO the Senate by
.Aldrich. II contained provision for a
prison sentence 10 be imposed on officers
OF corporations shown TO have made
false returns as 10 earnings. The penalty
clause authorizes a fine 20 the amount OF
80 per cent Of the corporation tax on any
corporation failing to make returns at
the proper time about its earnings and
obligations. expenses, &c. On conviction
Of making false return officers will be
subject to a fine Of from $1,000 to $1,000
and Imprisonment for one year. while the
company will have TO pay the amount Of
the tax.
Political.
In a Chicago interview, William ].
Bryan denied the report circulated wide