Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-06-23
Details of Proposed Law PIac-
ing Two Per Cent Tax on Net
Earnings Of Corporations
Practically Complete,
WILL BRING REVENUE
OF S30,000,000 A YEAR
President Taft Meets Members
of Cabinet and Leaders of
Congress in History Making
Conference at White House,
lny Morning Journal special Leased wirsI

fBy Morning journal Special Leased wirel
Washington, Jane 22.-Detalls If
the proposed measure Tor the taNa-
ton of net earnings of corporations
were arranged tonight AT the most
important conference that has been
held al the White House since Mr.
TAFT assumed the presidency
There were present as the presi-
dents guests AT dinner Attorney
General Wickcrsham and senator
Root who are charged with the work
of drafting the measure, Secretary
Knox. Senators Aldrich, Burrows,
Penrosc, Hale, Cullom, Flint. Smoot.
MeCumber and Lodge, Speaker Can
non Representative RYAN, ana Repre-
sentative John Dwight of New York
For two hours the corporation taN
measure which had been prepared
In the form of an amendment to the
tariff bin was viewed from every
angle. MANY changes in form were
suggested. The carefully prepared
copies given to each member Of the
party hy Attorney General Wicker
sham were returned 60 him ~ tue
end Of the conference.
President Tart himself suggested
that the copies should not be taken
by the members Of the party unti'
the amendment had been perfected
All agreed nm 60 make the Form n
the amendment pubic until It IA
ready to be introduced IN the scu-
ate.
The terms or the measure provide
that all corporations having capitai
stock and organized for profit. shnli
pay taN Of two per cent on their net
earnings. Corporations coming with
in that designation win be compelled
to make returns to specially named
agents of the bureau or internal row.
enuc for tho treasury departments Civ
ing the amount of their gross re-
ceipts. capital stock bonded indebted
moss ana all other Visible debts
The amendment viii define IN the
broadest possible way the character
of tho losses which may be deducted
from the net earnings upon which
the tax Il 10 be collected
The two per cent tax VIII apply -
an corporations organized for profit.
but each corporation viii be allowed
$1,000 exemption
ANY corporation which makes
false report viii hc subjected to
penalty the amount of which was not
decided tonight Most of the par'ici-
pants In the conference Expressed The
opinion that it should range from ST.
600 to $lo00o.
Thc tax win be collected upon the
entire amount Of preferred and COM
mon stock uf every corporation ana
the bonds of corporation where
they exceed the total amount of tho
capital
II is intended that thc bill shnIl be-
come opcratVc Immediately on its
passage The life Of the measure
was made ndcterminate. The pres
ent years tax VIII be collectahlc.
Leaders In the senate and HOUSE
have been flooded With tclegrams
from corporations Expressing the fear
that the amendment would be drawn
I'm such form that unscrupulous
agents Of the internal revenue bu-
reau might use information gained
by them so as 10 iniure the business
of corporation. This was discusse
tonight aud it WAS decided that only
especially designated agents OF tho
bureau should be permitted l" lhtV'-
rogatc corporations concerning their
business.
It was decided that all Incorporate
ed insurance companies organized Tor
profit shall be brought within the
terms of the proposed corporation
tax law This viii not exempt So
called mutual Insurance companies.
Neither viii Il exempt fraternal in
surance concerns which come within
that Interpretation of the law.
Estimates given tonight place the
probable amount that would ne
raised by the proposed two per cent
tax ON net earnings OF corporations dt
from S25.0o0,000 to $50. 100000.
Neither the senate nor house Lead
crs undertook Co forecast the length
OF time which viii he required TO pass
this measure, through congress