Show TAfT fAVORS lOWER RATE RAH TAXATION Of Under the New Scheme Cor Corporations Corporations Corporations Will Pay Only One Per Cent ANOTHER CONFERENCE AT THE WHITE HOUSE HAVE lAVE THE EAR OF PRESIDENT SCHEDULES IN CONTROVERSY Washington July 12 At a conference at the White house today It was decided that the rate to be levied under the new corporation tax shall shan be from 2 per r c cent nt to 1 per cent and that In re redrafting redrafting redrafting drafting the measure me now in conference along with the tariff bill to meet vari vail various various vailous ous objections that have been raised consideration shall be given iven the de demands demands demands mands of the mutual life Insurance com corn companies companie panics panie President Taft was wae the central figure in a number of conferences today He told several of his callers today that he heis heis heis is finding the conferees conciliatory and that he is hopeful that a satisfactory measure will wili be presented to him for his signature The conference report should be available Ie according to the prEt preBI presidents dents information by the end of next week Insurance Companies Protected As to the mutual insurance companies it Itis is stated that the redrafted bill will provide what portion of the income may mayb b deducted before the tax on moneys available for dividends is assessed a essed It will be so 80 arranged that the tax shall fall faU upon stockholders profits Allow Allowances Allowances ances auces will be made for annuities and other long term contracts which the companies have outstanding The president is said to feel that the withdrawal of the corporation tax in fa favor favor favor vor of the inheritance tax adopted by the house would be unfair to a number of senators who supported the corporation tax teC in preference to the Income measure It was the president who first suggested a graduated inheritance tax Such strong opposition to this measure devel developed developed developed in the states where an inheritance tax already is 18 levied that he brought for forward forward forward ward the corporation tax as the next best means mean of wiping out the treasury deficit Favored by Taft It is authoritatively declared that as asto asto asto to the maximum and minimum the pres pros president ident is 18 in favor of the administrative tuNS of at t Uw th s oat nate bill billU billIt U It n Is considered consider d to be less l SS drastic than the house hou e provision which has been characterized in the senate as retaliatory tory in its nature whereas the senate s nate provision Is 18 an attempt toward reciprocal reciprocal reciprocal trade agreements Senator Aldrich Attorney General Wickersham Senator Burrows Senator Smoot Representative Fordney and Speaker Cannon were among those who discussed sed the tariff and the corporation tax t t with the president today Metal Schedule Held Up Determined opposition was shown by bythe bythe bythe the house conferees today to the in increase Increase crease from rom 1 i cents to 2 cents a pound which the senate made on lead bullion As a result this schedule was held up and consequently there has been no settlement of the amendments to the item in the chemical schedule such as paints the basis of which Is lead This furnished a good example of ot the man manner manner manner ner in which the conferees have pro proceeded proceeded proceeded The more important of the tho subjects passed over in the metal schedule are iron ore lead bullion and zinc ore and bullion There are a large number of amendments relating to finished prod products products products of these ores that cannot be dis die disposed disposed posed of until the main subjects are settled c Senate May Weaken Iron ore was placed on the free list by the house and made dutiable at 25 26 5 cents a ton by the senate The Dingley rate is ts 40 cents a ton The general Im Impression is that the senate will make a concession to the house and that as a compromise the rate may be fixed at 10 or 15 cents a ton The house provision for free Tildes struck out by the senate and the exist existing existIng ing lag rate of 15 per cent ad valorem sub substituted substituted and for 1 on lumber which rate was materially Increased In the senate will be the subjects of contests It is not likely however that they will wUl willbe willbe be reached this week Tax on Cotton Bagging That cotton bagging which was put on the free list by the senate Is not to remain is one first pre pvc predictions predictions dictions made In regard to the proposed action of the conference committee on the bill The house conferees contend that a number of manufacturers of cot cotton cotton cotton ton bagging would be compelled to shut shutdown shutdown shutdown down if that article should remain on the free list and it is said the senate conferees will m not need much urging to agree gree to return bagging to the dutiable list Another prediction made with regard to t l the action of the conferees is that the Continued on Page 2 I I TAFT FAVORS LOWER RATE OF TAXATION Continued from frem Page 1 duty on coal which Is 60 00 cents in the senate enate bill but as compared with Ith 67 87 T cents centa In the existing law will be finally Stonily agreed on at 40 cents In conference The house placed bituminous coal on the free tree list lat but when the bill was about to be passed there was serious opposition opposition tion Uon on oo account of the free provision for coal which depended on a reciprocal pro provision vision to become effective eK tte In lit order to satisfy the desires of or those who did not want reciprocal free rree coal eo l the house leaders told them to have this request reque t Incorporated in the senate bill 1411 and It ItIs Ita itis Is a now believed 46 40 cents a ton will be agreed on as II a compromise Contested Schedules The house DoWIe and senate conferees met again today at 10 16 and proceeded with Ith the consideration of amendments in hi numerical nul t order The low how tariff men menon menon menon on the house conference committee ob objected jested to an Increase of oC 35 J cents per square foot oot made by the senate enate on the house boule rate on card clothing when made with face cloth containing wool This Is IB an increase over the DIngley rate and was wa evidently made to cover the wool u used ed Similar objection are expected with reference to the countervailing duty on petroleum the placing of hides on the free list It and the return of cocoa to the tile list liet These Th ee are to be among the most strongly contested conte ted schedules |