The Washington herald., 1909-06-20
TAX ON DIVIDENDS
WILL Be DELAYED
Finance Committeeman Diff
fer on Taft'S Project.
MUST CONFER AGAIN TODAY
After Session in Which Republicans m
Senators Strike n Snag IN C0nsid-
ering the Presidents Recommends
tiOns, Ia Appears the Amendment
VIII Not Be Reported Tomorrow.

At q meeting Of the Republican mem
bers Of the Senate Committee on Finanoa
I held yesterday 20 consider President
/ Iafts recommendation that a per
/ cent tax be imposed on the net incomes
o. corporations. there was wide diver
gence Of opinion shown over the pro
posed amendment 20 the tariff bill.
I After session lasting two and a balf
hours, the committeeman had NOT con-
I cluded their deliberations. ana II NOW
appears The Finance Committee viii nor
be abs 20 report The corporation tax
amendment 10 the Senate tomorrow AZ
Senator Aldrich predicted on Friday.
Another meeting Of the ReDublios,
members OF the committee VIII be held
This afternoon. when It is expected At
torney General Wickersham. 70 WHOM,
The task o. drafting the proposed amend
ment was intructed. win be present NJ
Wickersham was 10 attend yesterdays
meeting. but did not return from, N-av,
York in time
Basis of Confederation.
A tentative draft Of the amendment
prepared by Mr.. WIckershar1. was re
basis OF consideration senator Roof wss
present for while and gave hts PENN
lican colleagues the benefit OF his 49,
He is not member OF the Finance Con-
raittee.
The conference was not without ras,,l.
however Il was determined with rrso-
teal unanimity there should be 10 e.
erapt-ons from the imposition OF The cor
poTation tax The smaller eorrorations
II was agreed, must be treated the 80
as greater and more PROSPEROUS con-
oinauons- Should the proposed Law he
enacted. as the Republican members -
the Finance Committee decided. every
corporation IN the country viii be taxed
proporuonateiy on its net income
From Indiana and other Nrias1a w.
ern States have come = fOo5 NJ 49,
graphic protests against the proposed IA.
These protests were addressed TO Senator'S
and Representative. and IN most of then,
TIE demand Is made that no tax be levied
on net incomes below a certain amaun.
so that corporations of compsrarive1v
small earning capacity may De exempted
The COMMITTEES. however, after discuss
ing the matter. decided that the tax couis
De applied 20 every corporation which
was operated at profs-
1t came out az the meeting that the nro-
posed tax would yield much greater reve-
nue. than had been estimated. President
Iaft said IL would yield more than ss5-
ooaoo0- The inquiries made BY the Ren4,5-
hcan members Of the committee developed
that the amount OF revenue probable
which would come from the imposition Of
such tax would be nearer go an s.a 4
This is more than the Finance CouR,{f.sa
believes VII be Necessary 10 meet anv
possible deficit in revenue from the new
tariff law IN the first year OF two OF its 4
operation
The estimates Of probable revenue sup-
sest a reduction Of the proposed rate 10 /
per cent, but nothing has developed 10 4
show that the Republican members OF the I
Finance Committee contemplate making
the tax less than 2 per cent or limiting ft-
as was nrst suggested. 20 two years.
The Republican comuitteemen. struck a
snag when they came 70 consider the
matter or exempting from the tax the
funds Of corporations put aside for the
Continued on Page :, Column ?.