The sun., 1910-06-15
SUSPEND CORPORATION TAX
SENATE NOTION CAUSES STIR
AT THE WHITE HOUSE.
RcsSlutlSn by senator CuilOm 70 Defer
Cslieetlons UniIl Jan. . ~ mat sn-
preme Court May Pass On Measure
~ Passed Might Mean Bend Issue.

NolerAlnna I uAN jan - AhAA Hat'
preme COnrt STAY Pass On Measure
If Passed Might Mean Bend Issue
WARRINGTON. June n Senator Cullon
OF Illinois to-day introduced a resolution
in tho senate directing the suspension Of
the collection Of the corporation isA
until January /. 1871. pending a decision
by the supreme Court a. 20 its consti'
tutionality. The resolution was intro
duced. it was said. at the request Of 'hs
Chicago ClearinE House IL was referred
10 the Committee on Finance.
Many senators are impressed with the
opinions that have been rendered by
eminent constitutional lawyers that the
! law will not be upheld BY the supreme
Court. but Il il doubtful II senator Cullom
will get any action on his resolution a,
/ this lats day
/ The resolution caused some dismay in
Administration circles. and predictions
were made In high quarters that II Il we're
| passed the Gov ernment would be obliged
TO issue bonds. probably 10 the amount
Of t2S.OOO.OOO. The Treasury has been
| figuring on receiving about t21 600 900
from the corporation tax Under the
present law the money is to he paid in by
july /. The Treasury Department when
the Supreme Court decided 70 restore
the corporation tax cases Co tho docket
for rearglment next fall announced that
Il would go ahead and collect the tax
and then refund tho money 20 the cor
poratOns Il the Law eventually was held
20 be unconstitutional
The tan is being collected now At the
rate of about t5O. 900 a day. Only 81 200 ! %
has been taken In. and In the opinion
Ot Treasury officials the hackWardness
of corporations IN paying up IL giving the
/ Administration some concern and an
attempt % suspend the operation OF ths
/ Law now would only add 20 complications
already existing.
The Treasury's working balance to-day
was about si5 con ON. comparatively
low figure Beginning July there will be
a heavy drain upon the balance, which
will reduce Il perhaps below the SO. 600 coo
mark 10 the corporation tav is suspended
with only this small Working balanc =
an issue Of bonds or treasury certificates
Wilt IN believed he absolutely necessary
/ President Taft il opposed tO the CullOm
resolution. and the Administration will
try 20 defeat Il II II ever emerges from
the committee The President and SeCre-
tary MacNeagh have counted upon the
income from this tar 10 tide the treasury
over the unusually heavy spending month
of July Administration officials are still
confident that the corporation tar law
will be upheld by the supreme Court.
and Il Il " no bond issue NAV he necessary
II Is certain that everything possible
will he done 90 prevent a bond issue az
least until after the fall elections.
Financial experts Of the Government
are desiro,s 81 ha wing Congress act upon
the proposed equalization measuTe a. q
relief o. the present situation The
Panama Canal Commission owes the
lGovenmeut more than SiOO oOO.OO Under
the aw the Secretary II the Treasury
has made payments on the canal work
out ~ Treasury haance Tie ls au-
thOriged. however. 70 issue , per cent
bonds % reimburse the Treasury This
Secretary MaCVaagh has refused 10 do
because of the effect upon the per cents
lalready outstanding
A. the law now stands the circulation
tax On all bonds n One. haH ~ p=T cent.
This leaves net income from the , per
cruts. " a. Uer cent and from the pro-
posed Panama bonds 2 per cent This
DISCRIMINATION against the Old D. the
S~rrrtarv holds. would b. Unfair 20 na -
ltional ranks which nov hold them and
would mean a l0ns "a them and 20 other
Investor, at least on papeT. n many
millions ~ dolars
Cnngrp~s IN the opinion ~ many ~ tho
Administration leaders, could curreCt
tins situation ry PASSING a hill which
Secretary MacNeagh has alroady pro-
rs-ed a. an epualizlng measure n the
trlllom resolution should pass tho Tr~as-
urv probably would issue certificates to
the amount - SIS uOO.u .uuo These Certih-
yates would hear ? per ceni interest. but
would run only for une year
President Taft IN absolutely set against
tho proposition to suspend he collection
Of the corporation taX. Iha White House
was greatly surprised thrS afternoon when
the news came from the Capitol that
SENATOR Cullom had introduced the reso-
luton
Attorney General WiCkersham. who
happened 70 ~ at the White House when
the news came. was indignant al the
proposal he said that il was disCoung-
ing 10 think that any attempt would be
made to suspend the collection u this
. tax. which undoubtedly would have put
the Treasury in such shap' that there
would M no necea-ity Tor bond issue.