The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-07-12
TAFT WILL. FORCE
CONGRESS ACCEPT
CORPORATION TAX
Levy win Be Reduced to One
Per Cent and Holding Com
panies Made Exempt From
The Provisions.
MORE CONTROL THE
PLAN OF PRESIDENT

Executive Is to Ignore Pro-
tests in Order to Give the
Government Greater Power
To Stop Abuses.
Chicago, July 12.-John Callan
O'LAughlin in the Tribune says to.
day:
The corporation tax amendment
will remain in the tariff act as it will
be signed by President Taft.
The tax will be reduced from to l
per cent.
Holding companies will not be sub
ject to tax.
Thus, in spite of the protests which
are flooding Washington from all sec
tions OF the country. the president is
standing firm for the principle which
he enunciated in his message to con-
gress. The reduction in the rate the
president does not consider important.
What he is concerned about is the ex-
tension of the government control ov-
er the corporations doing an inter-
state business. This is the first step
in the plan of economic reform for
which he proposes to make his admin
istration notable.
Mr.. Taft believes that with the pub
licity feature of the provision he
drafted in consultation with the mem
bers Of his cabinet and Senator Root
he will be in q position to obtain facts
IN regard to the way in which the cor
porations conduct their business that
will be valuable in enabling govern
ment elimination Of abuses Injurious
to the people.
Decision Made After Inquiry.
The president has considered with
great care the views expressed in the
senate and in kilograms and letters
he has received in favor Of and
against the corporation tax. In his
Judgment, however. the advantages
outweigh the disadvantages. and he
believes it would be good policy to
enact his recommendation.
Nor should the fact be lost sight OF
that II the president were to abandon
the corporation tax at this juncture
the charge would be leveled against
him that he made the recommends
ton only for the purpose of killing
the income tax and drawing from the
etandpatters in the senate the fire of
criticism which their general increase
Of the house rates provoked.
Il would be easy, consequently, for
Mr.. TAFT to place himself in an equi-
vocal position. He does not propose
70 permit himself to be so embarrass-
ed. He IL unchanged in his stand in
spite Of the fact that he was told by
Representative Payne at q conference
last night that he and other members
Of the house conference committee
we're being deluged with protests
against the corporation tax. These
protests come for the most part from
corporations which have been organ
lxod for . more convenient conduct of
comparatively small business opera
tions. AZ has been stated, the objec-
tion Of Mr.. Taft to the Clapp amend
ment, applying the tax to the holding
companies, is that 1t involves the
principle OF double taxation, and in
his view such provision would i'm
peril the constitutionality OF the en-
tire amendment.
Holding Companies Face Fire.
It probably win give some slight
satisfaction to the small corporation
TO know that under the Taft plan OF
reform the holding companies will not
escape The president is understood
to Be giving consideration to this as
pect Of corporate existence, and In his
forthcoming annual message will pre-
sent some well considered ideas re-
specting their regulation and control.
For the sake Of clearness In exam
lining into the character Of the evils
and abuses which need restraint and
punishment the president long ago
divided the corporations guilty OF
them into industrial corporations, or
gani1ed for the purpose OF manufac-
ture and sale Of merchandise, and In
to railroad and other corporations or.
EanfSed for the transportation OF pas
sengers and goods.
Mr.. Taft does not believe that the
antitrust law is sufficiently full of
useful details In the description OF the
offenses which were denounced In
that act. He does not lose sight Of
The fact that all corporations doing a
commercial business are engaged In
interstate commerce. and II they all
were required to take out a federal
license. or federal charter. the bur.
den upon the interstate business OF
the country would become intolerable.
Taft Urges Double Prosecution.
During the campaign. he stated he
believed Il 70 b necessary, there
Dore. TO devise some means for classi-
tying and insuring the federal super.
vision Of such corporations q have
hA power and temptation to effect
(cootinusd o Pase Nsat3