The Fargo forum and daily republican., 1910-02-04
CONGRESS IS not
EXPECTED TO ACT
COMMERCIAL COMMITTEE HOPES
FOR EXECUTIVE ORDER ON
CORPORATION TAX LAW.

Washington. Feb. Representatives
of commercial organizations who have
been here since last Friday trying to
secure modification of the corporation
tax law, have become impressed with
the idea that congress will not do any
thing in that direction during the pres
ent session. Minnesota business men
who are interested in this question are
represented ON committee of eleven by
j. Fl. Beck, secretary of the ST. Paul
Jobbers' association. George NJ. Gil
lette of Minneapolis was also appoint
ed a member of the committee at the
Chicago conference, but he was unable
to come to Washington at this :ime.
During his stay here Mr. Beck has
interviewed all the members OF the
Minnesota delegation and several from
nearby states in the northwest. He
said today that it would be difficult
to size up the situation exactly, but
that, he hoped and believed that the
president would modify the law by an
executive order.
Little Hope of Legislation.
So far as congress is concerned, there
appears to be little hope of legislation
cumstances under which the corpora
tion tax was put into the tariff bill
He recalled the fact that in the ma
neuvering to prevent the enactment Of
an income tax law, the corporation tax
was put forward as a measure that
would bring corporations partly under
the control of the federal government,
in that all their financial affairs would
be made public. The anti-income tax
amendment in the senate is strong
enough just at present to keep the cor
poration tax law on the statute books,
and action by congress is, therefore,
hardly possible.
The members Of the committee have
bee;, interviewing members of he
house and senate. and pointing out tI1e
inequalities of the law, among them the
publicity provision. There are several
objections being urged against his
provision. One is that it is discrimi-
natory in requiring Incorporated per-
sons to make public their financial az
fairs but that it does not reach the
unincOrporaJed firms, which may be do
ing business larger than their incJr-
p1rated competitors.
5enfits Biz Concerns.
Another objection to the publicity
clause is that it gives the great manu-
featuring and mercantile corporations,
commonly known as the trusts, infor-
nation about the business of their
smaller competitors. and thus places
the smaller concerns at a disadvant-
age.
Mr.. Beck today called attention TO
the fact that none of the big corpora
tions. such as the steel trust, is asking
for any modification of the law and
just for this reason.
The committee has not seen Presi-
dent Taft but expects to arrange for
an interview later this week. when an
appeal will be made to him to issue
an executive order suspending several
parts Of the law by Interpretation,
particularly in the publicity feature.
They hope he will tissue such an order
Should he fail to do this, however, the
opponents of the law are looking to
the supreme court to declare the law
There are several grounds on which |
the law is attacked, and on which argu- |
ments are to be heard by the court IN
March IA. One ground of attack is
that the tax is a direct one and is not |
equally am ng the several
states. Another is that it is discrim- !
inatory in that it denies the equal pro- |
lection of the laws to all persons. The !
therefore, hopes for some !;
relief either by the executive order of |
the president or by a decision of the /,
supreme court that the law is uncon- !
|