The Washington herald., 1909-07-11
CONFEREES AGREE
UPON MINOR POINTS
Continued from Page one.

900 yielded from the income tax would
be amply SUFFICIENT fer all purposes.
and Il is probable that for this rea-
son the rate OF taxation viii be re-
duced TO I per cent
Then there IS much dissatisfaction
over the Senate amendment proposed
by Mr.. Clapp. OF Minnesota. one OF the
Republican insurgents. 20 tax the IN
comes OF holding companies derived
I from interest Oh stocks and bonds
which they hold
Senator Aldrich. chairman OF the FL
nance Committee. accepted Mr.. Clapp's
amendment for the committee. but made
Il plain thar he did so in order 20 faciii-
tate the consideration OF the bin. which
he was anxious 10 have the Senate pass
and refer 70 conference Even President
Taft. as strong an advocate as he IS of
the corporation tax. does not ike Mr.
Clapp's amendment. his main ground for
objection being that IL appears 10 pro-
vide for a second taxation OF stocks and
bonds previously subjected 20 assessment
under the corporation tax provision
May Rewrite Amendment.
Mr.. Taft and many Senator's and Rep
resentatives are understood 10 be inclined
20 the belief that this double taxation
may render the corporation tax unoon-
stitutiOnsl. and AIr- Taft, az least, is IN
willing 10 take any chances OF having
his plan declared null and void BY the
Federal courts. Objection IS being urged
also. and urged emphaticaIly, 10 the pro
vision Of the Senate corporation tax
amendment for subjecting 70 the tax the
income derived from bonds OF al amount
over and above the capital stock of the
corporation issuing them There were
hints yesterday that this part OF the
amendment would be rewritten IN such a
way as 10 be more satisfactory 10 the
Senate and the House.
New Workers 90 Fight II.
Unless the amendment in the tariff bul
imposing tax on the earnings OF cor
porations is materially modified n con
ference, Il win be stoutly opposed in
the House by New York Republicans
and Republicans from the West. who
viii propose the inheritance tax as q
substitute
4 canvass of the New York Repub-
hcsns discloses that nearly all OF them
If not all. IN fact. are opposed 20 the
corporation tax IN the form IN which
IL was adopted IN the Senate. They
may consent 10 support It II the rate
OF taxation is reduced from . 10 1
per cent AID IL the conference restores
that provision which was Incorporated
in the amendment as II was introduced
into the Senate exempting holding com
panies from the payment OF tax
The plan Of the New York Repub-
licens 20 hold a caucus and adopt a
formal resolution IN criticism OF the cor
pOratiOn tax Will probably be abandoned
II the caucus is not held. II viii be out
OF regard 10 the wishes OF Representative
Payne. the senior member Of the dele
CATION. who. as chairman OF the Com
nittee on Ways and Means. is one OF
ths conferees on the part OF the House
Abandon Caucus.
The House managers went into the con-
ference without any specific instructions
on particular features o. the Aldrich BIZ.
merely being directed, in accordance with
custom, 10 disagree 10 all or the senate
amendments. resolution adopted al a
caucus OF the New York Republicans
would. in a measure. be binding upon Mr..
Payne. Al least he would be indlspOsed
10 take any action IN conference contrary
10 the expressed wishes OF the Gelega-
tiOn from his State. To relieve Mr.. Payne
OF any embarrassment, therefore, the
New York Republicans win 90 no farther
for the present than 70 make Il clear 10
Mr.. PAYNE and the other members OF the
conference committee that they are Op-
posed and viii contest in the House the
corporation tax amendment IL Il IS re-
ported by the conference committee as IL
passed the Senate
Nearly every Republican member from
New York has received protests from the
State against the corporation tax.
IN some instances complaint Is made OF
the rate OF taxation. but criticism IS d.
rected largely against the provision re-
curing payment OF tax by holding COM
panies and corporations deriving income
from investments IN the securities Of
other corporations. The point is made
that unless holding companies are eX-
empted from taxation the amendment viii
prove highly Objectionable 20 many con-
Germs throughout the State OF New York