The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-07-03
TAFTS TWO PER CENT TAX.
All Estimate Of What Some of the Rio
Trusts Will Have to Pay Under
PRESIDENT Taft's Corporation Tax
Amehdment-The Heather Chinese
Sets an Example to Civilized Na.
tiOnS.

flow Of oratory, like Tennyson,s brook
seems destined to go on forever On
Friday Senator Aldrich, for the Com.
mittee on Finance introduced the cor.
poratisn tax amendment. Despite
iurld predictions Of failure to reach
an agreement, extravagant and exae-
gerated reports Of ''insurmountable
Obstacles" and emphatic declarations
that the entire subject of special tax
alton will be postponed until next
winter, the Taft amendment has mr.
sued perfectly normal course with.
out hitch and without obstacle, and is
now before the senate as a substitute
for the Bailey-Cummins income tax
amendment. The original draft was
prepared by the attorney general and
Senator Root under the supervision of
the president himself. 1t was then
submitted to conference at the
White House which was attended by
the lawyers of the cabinet and the
Republican members of the Finance
Committee. Certain changes having
been suggested, Messrs. Wickersham
and Root prepared second draft en-
bodying them and this was submitted
to second White House conference
at which Speaker Cannon and Repre-
sentatives Payne and Dwight were
present In addition to those who had
attended the first conference. The
amendment met with the unanimous
approval Of all present, and the lead
ers of the house as we'll as those of
the senate predicted its speedy enact
ment.
Briefly stated, the amendment pro-
vides for a tax Of two per cent. on
the net profits of all corporations and
insurance companies, except that mu-
tual savings banks are not taxed. Cor
porations having a bonded indebted
ness are permitted to deduct from the
profits on which they will be taxed a
sufficient sum to pay the interest on
their bonds not in excess Of their cap
ital stock. In q word, 1t provides for
an income tax for corporations but
does not extend 1t to the incomes of
individuals as would the Bailey-Cum-
minis amendment
The Metropolitan press is filled with
denunciation of the Taft tax which, It
insists. will prove unjust and mex
pressibly unpopular. When it is re-
called that most OF the great news
papers Of the country are owned by
corporations and will, therefore, be
subject to the tax, their opposition is
not perhaps surprising. A glance
ahead at the results Of the Taft tax
also reveals something Of the, reason
back Of the frantic efforts of the big
corporations to mfsrepresent and rem
Ger unpopular the Presidents propos-
ition. For instance, 1t is estimated
that the Standard Oil Company will
under this amendment be compelled
To contribute between 100000 and
100000 annually to the support of
the government. The steel trust will
have to pay a tax between these fig
uies. The American Telegraph and
Telephone Company will probably
have to pay about 100000 and the
tax Of the Tobacco Trust will exceed
$5O0,000. The General Electric Com
pany will pay between $230,OOO and
$3OO,OO0; and the Copper Trust, in
Guiding the Amalgamated Copper
Company, will contribute over $780,
600. Even the Sugar Trust will have
the pleasure Of paying about $165,OOO
toward Uncle Sans expenses. and a
like sum will be contributed, no doubt
with little cheerfulness, by the Inter-
national Harvester Co. Most of the big
railroads of the country will pay over
$6O0,000 piece into the federal treas
ury.
In the light of these figures and in
view Of the fact that the great trusts
and corporations are being held up by
the throat, metaphorically speaking,
by the creature of their own generos-
ity, the Republican party, it is hard
ly surprising that their cries and Ia
mentations should rend the stiffness
OF the midnight hour and almost
cause the solid capitol to tremble OH
Its foundations. Jeremiah's lamenta-
tions over Jerusalem were as but
whispers compared with the weeping
ana wailing and gnashing Of teeth of
on that party'Which has been to them
their father and their mother and
all their relations
Every now and again the benight-
y FOL cot.