The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1909-07-12

Washington, July 12-President
TAFT and the lawyers Of his cabinet
have undertaken TO save the tariff
conierees from hagglinG over the cor,
pOration tax amendment II Is con-
cedcd that the measure as passed by
the senate, must be resdrafted in or
der to remove constitutional objec-
tions, and TO meet the Views of the ad-
ministTadon. The President has told
the leaders OF the senate and house
that, as the house administration
would be charged with the RESPONSE
Tending the act, ii assailed in tho
courts. the administration should be
permitted to perfect the measure.
Senator Aldrich and Representative
Payne have made no objection to tle
suggestion made by the President, and
as a result, Attorney General Wick
erSham is working out the legal prob
lens it involves. II the corporation
tax feature is changed at all. after
being redrafted, the alterations prob
ably will be confined to the rate OF
tax imposed on net earnings, There
is a strong sentiment in congress that
the tax should be not more than one
per cent and it may be cut in half,
accordingly.
Reluctance is being exhibited by
some members of the house to the
suggestion that the Inheritance tax
feature. adopted by that body, shall be
left out of the bill.
President Taft has been Impressed
by the arguments of the states that
thev should not be disturbed in their
use of the Inheritance tax as a means
of raising OF revenues, although mis-
belief in the principle has not abated.
1t is stated upon the highest author
itv. however, that he does not think
that federal and state governments
should both resort TO this method OF
raising revenues.
The amendment adopted by the
senate providing for the establish
ment of a customs court,ls likely to be
accepted by the house conferees. An
effort will be made to fix salaries of
the Judges at $4,000, as provided
originally by the amendment as report
ed from the finance committee TO the
senate.
The terms Of the senate maximum
and minimum provision are meeting
with some favor from the house mem
bers of the conference committee and
the indications are that 1t will be ac-
cepted after some minor changes have
been made
If the senate has It's way In relation
10 the corporation tax, inheritance tax
and the customs court, there is a
feeling that it Will be at the sacrifice
of many OF its amendments to the
dutiable list
The conferees plunged into their la
bors today with vigor and enthus-
iasm that portcndS haste in getting
the bill back to the senate and the
house
Taking up the metal schedule. they
proceeded through this and into the
wood schedule during tae morning
hours This does not mean that the
metal schedule was completed, as 1t
contains many important amendments,
such as changing the rates on steel
products which are the subject of
sharp differences of opinion. These
were passed over TO be taken up after
minor amendments in all schedules
have been settled
The new draft of the corporation tax
amendment VIII provide for a tax If
one ner cent, instead Of two per cent.
on the net earnings of corporations.
This was decided today at an informal
conference at the White House. At
torney General Wickersham viii pre-
pare the amendment accordingly
The President in his talks with
the conferees. has begun the discus
sion of specific rates The time for
talk as to the application of a general
principle. mas passed. in his opinion.
The President is said TO feel that
the withdrawal of the corporation tax,
In favor of the inheritance tax, adopt
ed by the house, would be unfair TO
a number of senators who supported
the corporation tax in preference TO
the income measure. IL was tine Pres
ident VINO first suggested graduated
inheritance tax Such strong opposi-
ton TO this measure developed in the
states. where an inheritance tax al
ready is levied, that he brought for
ward the cooperation tax as the next
hest means of wiping out the treasury
deficit.
It IS authoritatively declared that