Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1909-07-15
RrOm Washington.
, Correspondence Of the Alexandria Gazette.
Washington, July 10.

Correspondence OF the Ale1sndI1a daIettesl
Washington, July 10.
President TAFT has already found it
necessary to assume bis role VI arbi-
traitor and referee of disputes ia the
tariff conference committee. Finding
themselves unable TO agree upon the
corporation tax amendment Senator
Aldrich and Chairman Payne, the
leaders of the Senate and House con-
ierees respectively, went to the White
House last night and talked the matter
over with tho president. As a result it
Is expected that the remodelsd draft
of this amendment. which has been pre-
pared by Attorney G sneral Wickersham,
will be forwarded 70 the committee.
Despite the pronounced opposition 10
this tax by the House representatives,
who prefer their own inheritance
tax provisions, there is little doubt
that eventually the presidents plan
will be accepted. In its new
form the tax on the earnings of cor
porations will be one per cent. on
all over s., 900 aud will specify just
what deductions may be made by mu.
tual benefit and insurance companies
and will exempt all fraternal and build
ing and loan associations which are
really mutual concerns aud are not Or
ganized for the benefit of the promoters.
The presidents preference for the cOrpO-
ration tax, however small in amount,
over that on inheritances, is due to his
belief that it will enable the federal gov
eminent to exercise greater degree of
supervisory control over corporations
and prevent stock-wstering and the Jug
Cling of their business statements by
few "insiders" for their own benefit.
Another matter which was appealed
to the president was that part of the bill
which authorizes the president to employ
experts to secure tariff facts to guide
him in enforcing the maximum and
minimum provisions. The House con-
lerees think they sec in this the entering
wedge for the creation of taliff COM
mission which may eventually take away
from the House part of its prerogatives
of originating revenue raising legisls-
ton. They have received assur.
snces, however, on this point aud
will interpose no further obJec-
tions to the Senate amendment.
On both of these propositions, however,
and especially on the corporation tax, it
will require continued pressure from the
president If they are TO be in the bill
when it finally becomes Law. The
conference committee met again at ten
o. clock today to continue their consid-
Grafton of the remaining administrative
sections, which include she new internal
revenue rates on tobacco, snuff, ciga-
rettes. etc. The cotton, wool and silk
schedules, which we're passed over in
the FIRST reading, will also be taken up.
Both Senator Aldrich and Chairman
Payne reported to their fellow coufeIees
as result of their lest nights visit to
the White House that President TAFT
has not weakened 10 his desire for The
adoption Of the corporation tsx 1t IL
expected tina. after some further shOE II
resistance the House cOnferees will &C
cept this amendment. The conference
committee then took up the cotton sche-
dule, but after some discussion Of it,
they found that the representatives, of
the House were not disposed TO accept