New-York tribune., 1909-07-13
PRESIDENT WORKING
ON TARIFF BILL
USING INFLUENCE FOR
LOWEST POSSIBLE RATES.
Decision to Make Corporation Tar
Rate Per Cent Practically
Reached.
rFron rse rrtsun. Rprsap.1

council with members Of the conference con-
rittee. who seem 10 welcome the opportunity 70
consult him From his utterances on the sub
ject II is manifest that the influence OF the
Executive is being exerted in favor Of the low
est possible rates OF duty. But he is saying alb
soutely nothing as to his views or the character
or results OF his talks with the conferrees He
takes the ground that the tariff bill is stiu in
formative stage. that his conferences with the
managers on the part Of the two houses are Of
an esentiany confidential nature. that we're he
10 take the public into his confidence it would
unquestionsby minimize his influence and that
therefore he can attain more and serve the pub
lie better by preserving his own counsel
He admits that he is no longer dealing n
generaIities. but is considering and discussing
specific rates with the conferrees. Being firm
believer in the benign influence Of a good meal.
he is asking them 10 breakfast luncheon or din
ner at the White House. Convinced that
hearty laugh will accomplish more than threats
or anatheTnas. his conversation on the schedules
Is always punctuated with frequent laughter.
But the most carefully devised hypothetical
question put 10 the President for the purpose OF
eIiciting information as the nature Of his rec
concentrations to the conferrees or their repre-
sentations 10 him fails OF its purpose 1t IS
either lost in the heartiness OF the laughter with
which he greets il or else leads only to his tell
ing an amusing anecdote regarding some cross
examiner who appeared before him when he was
on the bench
Of course the utmost interest attaches 70 the
Presidents attitude toward the schedules uls
amount OF pressure ne is attempting TO exert
and the success which is attending his efforts
His influence constitutes the one uncertain
factor in the tariff equation Were he stlI pur-
suing the hands of policy he followed before
the tariff bill reached the conference stage II
would not prove a difficult task for any Wen
posted observer Of events in Washington "a
nniIiar with the character and personal Preoiiec-
tfons Of the several conferrees. the eV1dence
submitted in committee and the arguments pre-
sented IN debate TO forecast the outcome o. tne
conference with reasonable accuracy But that
* not the situation The equation has been
complicated by a new and unknown factor. and
few who value their regulations as prophets
will attempt to gauge the effect OF the influence
which the President viii be able TO exert IN his
efforts TO obtain a modification Of the tar1rr
schedules.
VIEWS ON CORPORATION TAX
! When Il comes to dealing with portions OF ths
| tariff bill which do not involve schedules the
President IS less retioent- possibly because he
realizes that all these his views are wen
known and have been accurately reported He
| does not hesitate TO reafFrn his preferences for
| the tax on the net earnings OF the corporations
as compared with an inheritance tax and his
| conviction that before IL is enacted the ClapP
amendment striking out the exemption Of those
earnings derived from dividends on the stock or
other corporations should be eliminated He
SAYS frankly that the Clapp amendment seeks
70 remedy an eviI-holding companies which
constitute a nonopoly-by subjecting not alons
their profits but those OF many innocent cor
porations 20 a double tax. and that he has no
patience with such unjust legislation He also
SAYS he is perfectly agreeable to the reduction
Of the rate 10 I per cent il that viii produce
sufficient revenue. as it doubtless will
Neither does the President make any secret
Of the fact that the corporation tax amendment
will be rewritten minus its Objectionable amend
rents BY the Attorney General and will recsivs
the approval OF Secretary Knox and senator
Root and his own Endorsement before II is re-
ported to their respective houses by the con-
ferrecs So too. in the case OF the maximum
and minimum provision and the customs court
the President is frank 10 indicate that he pre-
fers the Senate provision and NJ approves the
proposed court
But there the willingness OF the Executive to
make known his views ends From his manner
and tone it may be inferred that he is pleased
with the evident anxiety OF the con1errces 70
consult him and with the disposition with which
they receive his advice Beyond these few
points however. the President is saying moth
ing. and all reports as 10 his views regarding
Iation or more or less clever deductions from his
public utterances in the past.
The President and the conferrees have prsS-
ticaIIy determined that the tax on the net earn
fngs OF corporations shall be reduced to per
cent. as was predicted in The Tribune on June
% although they say final decision VIII not
be reached until consideration OF the schedules
by the cOnferrees has been completed
The extent to which the conferrees work
ing with the President may be judged from ths
meetings which have already been held. No
sooner had the tariff bill passed the Senate.
last Friday. than Senator Aldrtch went 10 ths
White House and conferred with the President
for about an hour That night the President
called for Speaker Cannon and took him OUT
for long ride in OF the White House tour
ing cars. Saturday evening he took Representa-
tive Payne chairman OF the House conferrees.
for long ride. at which Mr.. Taft SAYS the tarifr
was somewhat freely discussed This morning
Representative Fordney. OF Michigan. one OF ths
House conferrees. was the guest OF the Presi-
dent AT breakfast Senator AIdrich his
guest at luncheon Immediately after luncheon
Senator Burrows a guest Of the President
for more than hour. and there Is a broad
intination at the White House that similar
meetings will continue till the tariff bill 5 re-
ported from the conference committee
From all this II will be seen that the Taft
laugh" is now on trial as a successor to the big
stick" Those who know President Taft best
know that his aims and ideals are closely akin
to those OF President Roosevelt. but his methods
are radically different. He is a frrn believer IN
the doctrine that each man must achieve his
ends in his way. He has entire cOnddencs
plomacy and he Is putting II 70 the test Hs
realizes as keenly as any one how much depends
on his success. and under the genial smile and
the hearty laughter there IS deterrninaron
which the conferrees probably understand al