The Washington herald., 1910-04-10


pated deficiency in the revenues, he
recommended the adoption of an amend
ment to the tariff bill imposing an an
nual special excise tax upon all corpora
tions and joint stock companies organized
for profit and having capital stock rep
resented by shares, and insurance COM
panies, except national banks otherwise
taxed, savings banks. and building and
loan associations, 10 be measured by =
per cent of their net incomes. pointing
out that by this perfectly legitimate and
effective system Of taxation Federal
supervision over the annual accounts ane
business transactions Of corporations
could be established and a knowledge OBJ
tained OF the real business transactions
and the gains and profits Of every cor
poration in the country which would be
a long step toward that supervisory
control OF corporations which might pre-
vent further abuses of power. This was
a practical application OF the provision
in the Republican platform in 1908
Before the corporation tax amendment
was finally enacted it was found that /
per cent would in all probability be a
sufficient tax upon the net earnings 70
meet the estimated deficiency in the
revenues Of the government The enact
ment Of a measure which required every
corporation in the country to file with
the Commissioner of Internal Revenue
at Washington returns showing in gem
eral terms the amount of their income
and expenditures was certain TO provoke
much opposition until those subject TO
the law should have become accustomed
to compliance with its provisions. The
value 10 the country Of securing such
a body Of information was entirely lost
sight Of in the indignation OF being in
cluded in the requirements. It is. how
ever, TO be observed that big and little
alike had been clamoring in Washington
during the entire special session OF Con-
gress for protection 10 their own particu-
lar industries upon the ground that with
out such duty as they wished they would
not enjoy that reasonable profit Of Ameri-
can industry to which they claimed to
be entitled, OF that. If the duty were not
reduced upon articles used by them or
some other concession made 60 them
affecting their trade or manufacture.
they could not make a fair return for
their labor and capital 1t is also true
that there was no reliable body Of in
formation available by which such de-
mands could be tested. and that this new
act, for the first time in the history of
the country. called for a comprehensive
statement In similar form from sub
stantially all Incorporated enterprises or
the amounts Of their annual receipts and
expenditures, thus making available a
mass Of information furnished under oath
which must be of geat value in determin-
ing in the future the extent of protection
needed 20 any given industry Il was
certainly not the intention of the franz
ers OF the act that the information re-
quired 10y it should be used for any I'M
fair or unlawful purpose.
In a series Of special messages dealing
with particular subjects the President has
recommended TO the congress the enact
ment Of amendments 10 the interstate
commerce law; Of a law providing for
the organization under Federal charters
OF corporations 20 engage in interstate
commerce; the establishment OF a postal
savings bank system: the enactment OF
laws giving the Interstate Commerce
Commission the power TO determine upon
the uniform construction Of appliances
used by railroad trainmen in the opera
ton of trains; of amendments making
the employers liability act more easy
TO enforce: of laws carrying out with in
teliigent discrimination the principle of
conserving the national resources; the
establishment Of national health
bureau; laws requiring publicity of cam
paign contributions: regulating the pro-
cedure in Federal courts concerning the
issuance of injuncuons; readjusting the
regulations concerning postage on second
class mail matter so as TO require maya
zines and miscellaneous periodicals to
bear their fair share of the cost Of car
riage in the mails
In word, the President has placed be-
fore Congress for enactment into law all
Of those measures which the Republican
party, in convention assembled in June,
1905 pledged itself to adopt. and If the
second session of the sixty-second Con-
gress should adjourn without having
made good those party pledges. upon the
Republican majority in Congress, and
not upon the President. would the re-
sponsibihty rest for that breach of faith.
But / am firmly persuaded that those
measures will not fail: and that despite
the efforts Of individuals 10 magnify
their own particular importance at the
expense Of party loyalty and party honor,
the Republican majority in Congress viii
make good the party pledges and give
the country the benefit of that legislation
which the party has promised. and which
the President has so clearly and so
forcefully outlined.
Tariff Bill Results.
While after dinner orators have dis
eoursed eloquentIy ABOUT economy in
governmental expenditures. the present
administration has set to work with the
aid of Congress to turn an estimated an
nual deficit of SlO0.OO00O0 into an estimated
surplus of SS5,OOO,OOo, and 10 reduce the
actual annual expenses Of government by
s42, goo, 000-and it has but commenced the
work of retrenchment and reduction.
For the fiscal year ending June 80. 1910.
the total estimates for the expenses of
government exclusive OF postal service
payable from postal revenue) were $685.
2Ss. 56S and the ac@al appropriations were
ST26. 951. loo
For the fiscal year ending June 30, 1911,
the total estimates on the same basis
were Ss7l, .O75 which is $4,000, 493 less
than the estimates for the fiscal year
ending June 80, 1919, and $55, ,O91 less