Evening star., 1921-11-17
PRESIDENT AGREES
TO SURTAX RATE
OF 40 PER CENT

(Continued from First PaSe.)
new will be presented to the House
,ater in the day when the, Senate
amendment is taken up und a rule
,alline for a straight-out vote on the
80 per cent maximum.
Opponents Of the Senate amend
ment said they expected the Presi-
dents letter to turn the tide. They
admittedly had been worried and are
understood to have laid the situation
hefore the executive very frankly
Win the recommendation that he in
,tervene. - Y,-.
,eader of the "insureent" repuo icans,
said he did not thin the Presidents
views expressed lat this late hour"
would have appreciable effect upon the
outcome of the surtax fight.
"I rather expected something or TINS
sort" said Mr. Dickinson. "Of course.
the Presidents views should be given
consideration. but I don't think the
hombshell, coming at this late hour,
,fter the matter has been left to drag
along, will have the expected result.
Other High Spots in View.
After the House expresses itself on
the surtax amendment, the conferees
will proceed to dispose of the other
"hieh spots" in the bill, which in
clude the corporation income tax,
the increased estate tax, the tax on
gifts Of property. the medicinal
beer. wine and whisky tax. The
repeal OF the $4,000 normal exemption
to corporations except where the
capital stock is $25,000 or less. the
treatment of insurance companies
other than life and the amendments
defining capital gain and loss.
The conferees agreed yesterday on
Senate amendments striking out orig
inal House :, provisions for the ex-
.rption from the income tax Of In
come received by foreign traders and
foreign trade corporations from
sources outside the United States. 1t
would accept the Senate provisions
designed to place Americans doing
business in the Philippines and Porto
Rico on par with foreigners in
those insular possessions SO far as
',xation is concerned.
The managers also agreed on the
Senate amendments repeating the tax
on parcel post packages and on bonds
of indemnity and surety. Another
Senate amendment accepted provides
that if corporations issue capital
stock at a value Of less than. $1OO
a share the tax shall be / cent on
each $40 of the actual value or frac-
ton thereof. The present law i'm
poses a tax Of cents on each 500
of stock, irrespective of the par value
Of shares issued.
Accept Senate Amendments.
Other Senate amendments accepted
included those re-enacting provisions
of the existing law imposing taxes at
the present rates on capital stock Of
corporations, brokers. proprietors of
theaters, circuses, bowling alleys, bill
Hard rooms, shooting galleries, riding
academies, persons operating or rent
ing passenger automobiles for hire,
brewers, disti11ers and wholesale and
retail liquor dealers, manufacturers
of tobacco, cigars and cigarettes,
dealers in narcotics, employment of
child labor and license levies on
owners Of yachts and other pleasure
craft.
The House managers also accepted
the Senate amendment striking out
an original House provision which
would have required single return
from families in the eight western
and southern states having laws rec
ognizing the marital community and
dividing the community property
equally between husband and wife.
Agreement also was reached on the
general administrative provisions of
the bill.