The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-07-12
TAFT NOT SUITED.
Corporation Tax Amendment
Adopted by Senate
Is Not What the President
Thinks 1t Should Be.
HE WILL FIX 1T UP
With the Aid Of Wickersham.
Knox and Root.
Aldrich and Payne AcQuiesce in
the Arrangement.

Washington, July 12-Presldent Taft
ana the lawyers of his cabinet have un-
dertaken to save the tariff conferees
from haggling over the corporation tax
amendment. 1t is conceded that that
measure as passed by the senate. must
be redrafted in order to remove con-
stitutional objections and to meet tho
views Of the administration. The pres
ident has told the leaders of the senate
and house that as the administration
would be charged with the responsible
ity of collecting the tax and defending
the act If assailed in the courts. the ad-
minfstration should be permitted to
perfect, the measure.
Senator Aldrich and Representative
Rayne have made no objection to the
suggestion made by the president and
as a result, Attorney General Wicker
sham is working out the legal problems
1t involves. In frequent consultation
with the attorney general are Secre-
tary of State Knox. Senator Root and
the president himself When they
nave perfected the amendment II viii
be sent to the conferees, who viii in
corporate it in the bill as agreed to in
conference.
IF the corporation tax feature is
changed at all after being redrafted ia
cabinet and close administration cir
cles. the alterations probably will be
confined to the rate of tax imposed on
net earnings. There is a strong senti-
ment in congress that the tax should
be not more than one per cent and Ii
may be cut in half accordingly: but
the rate has come up for discussion
among the cOnferees.
Some reluctance is being exhibited by
some members OF the house to the sug-
gestion that the Inheritance tax feature
adopted by that body shall be left out
of the bill.
Would Give states a show.
President Taft has been impressed by
the arguments of the states that they
should not be disturbed in their use or
the Inheritance tax as a means OF rails
ing revenues, although his belief in the
principle has not abated. 1t is stated
upon the highest authority, however
that he does not think that federal and
state governments should both resort
to this method of raising revenues.
The amendment adopted by the
senate providing for the establishments
of a customs court is likely to be ac-
cepted by the house conferees. An
effort will be made to fix the salaries
of the judges at $4,000 as. provided
by the amendment as re-
ported from the finance committee TO
the senate.
The terms of the senate maximum
and minimum provision are meeting
with some favor from the house mem
berS of the conference committee and
the indications are that it will he ac-
cepted after some minor changes have
been made. This feature provides
that the maximum rates. which are
fixed at 25 per cent above the import
duties prescribed by the bill. shall go
into effect on March 81 next. unless
the president by proclamation in the
meantime shall have released coun-
.ries from the higher rate. These
proclamations are to be issued only
upon receipt of evidence that the
United States is receiving the best
rates given by such foreign country.
Metal Schedule Taken Up.
If the senate gains its way I'm rela-
ion to the corporation tax. inheritance
ak and the customs there IS a feeling
hat it will be at the sacrifice Of many
IF its amendments to the dutiable list.
rhe conferees plunged into their la
oors today with vigor and enthusi-
lsm that portends haste IN getting the
pill back to the senate and the house.
Taking up the metal schedule they
proceeded through this and into the
wood schedule during the morning
hours. This does not mean that the
metal schedule was completed as &c
contains many important amendments
iuch as changing the rates on steel
which are the subject OF
harp differences of opinion. These
we're passed over to be taken up after
minor amendments in all schedules
lave been settled.