The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-06-23
STEAM ROLLER IS
| AGAIN MANNED BY
PRESIDENT TAFT
Meighty Vehicle viii Be Used
To Ram Corporation Tax
Plan Down the Threats Of
The Solons.
IA CONFERENCE HELD
At THE WHITE HOUSE
And the Leaders Of the Senate
And the House Are Told by
Chief Executive What He
Expects.

se~s SSss~ ss' ~
Expects.
Washington, June 23.-Further con-
sideration of details Of the TAFT plan
to levy q tax on the net earnings OF
corporations took place at the white
house yesterday.
A on Sunday. the president invit-
ed the republican members Of the
senate committee on finance to dinner
and there were also present Secretary
Of State Knox and Attorney-General
Wickersham. also Senator Elihu Root.
of New York and Speaker Cannon.
Chairman Payne, OF the ways and
means committee and Representative
John Dwight. Of New York. the repub-
lican whip" Of the house.
Fully Representative.
1t was . gathering fully represents
tive Of the republicans who are now
in control Of the executive and legisla-
tive branches Of the government. and
emphasizes moro than ever before the
fact that the corporation tar has be.
come party measure.
AS already explained the plan is to
levy q tax Of per cent on the net
earnings Of corporations available for
dividends and to exempt from the levy
concerns whose profits are below 35,-
900 year. The present purpose is
to exclude interest on bonds from the
category Of net earnings. provided the
bonds issued by corporation do not
exceed its capital stock.
Black Look For Them.
The administration and also lead
ers OF the senate look with decided
disfavor upon the argument advanced
by some. Influential republicans that
the dividends on cumulative preferred
stock should also be deducted before
the net earnings are arrived at for
taxation.
Therefore this exemption will not
be carried In the amendment which
Senator Aldrich. in his capacity as
Chairman of the Finance committee.
will report. When he left the white
house Sunday night Aldrich predicted
that he would have his measure ready
for presentation to the senate today.
Although some protectionist republi-
cans are looking askance at the cor
poration tax because they fear 1t will
reveal some of the unequal benefits
that are derived from certain tariff
schedules. the administration is stang
ing firm in its advocacy of its plan to
raise additional revenue. While Sem
ator Aldrich, up to a week or two ago,
was insisting that the tariff bill as his
committee had drawn it. would pro-
duce all the income necessary for the
governments needs. he is not raising
this objection to the corporation tax.
although It is estimated that it will
produce In the neighborhood Of $780,
100000 year.
This change in the senator's atti-
tude has caused great deal OF COM
ment, and senators who have been
urging an income tax intend to ask
him to explain 1t after the corporation
tax amendment Is reported to the sen
ate. As previously stated, Aldrich
has embraced the administration plan
In order to prevent the passage of an
income tax amendment, choosing
what he regards as the less OF two
evils. for he does not like either an
income or corporation tar.
| Just Put Them Next.
Speaker Cannon. Chairman PAYNE
l n S~aA
the white house conference last night
not only that their views on the cor.
poration tax could be obtained and to
enable them to understand everything
that has been done by the admins
tration and the senate leaders thus
far, but also to advise the president
how the amendment would be receiv-
ed In the house.
The speaker has been in favor OF q
tax on corporations as general pro
position. although he has not approx.
ed certain features Of the plan as or.
ligtnally drawn. He has objected to
including the interest on bonds in the
net earnings to be taxed. and was ev.
en- doubtful II the propriety or justice
OF including the dividends on cumula.
tive preferred stock But the senti.
ment among the leaders Of the admin.
fstration and Of the senate In favor
OF not exemDting the dividends on pre-.
ferred stock has been 80 strong that
the speaker doubtless will yield TO II
The president looks with decided
disapprobation upon the suggestion
that the passage Of the corporation
tax amendment might have to be put
OF until the regular session Of CON,
gress next winter. He il determined
to do everything in his power to nut
Il through before the extra session
ends. and this II one axplanatioa ol
hix summarizing leaders or both
branches Of congress to confer with
him last night.
| Tomorrow Thursday ID
ladies' Wool Skirt Day al
knollenberg's Store.
II