The times., 1898-07-02
THE WAR TAX IS IN FORCE
General Provisions Went Into
Effect Thursday Night.
GREAT DEMAND FOR STAMPS
All Day the Rush mt the Internal
Revenue Office Has Been Heavy.
List of Articles Taxed-Some In
terPretations of the Schedules.
Local Beer Consumers Happy.

Today the war tax In its entirety is in
/ effect, and there doubtless will be consid-
cradle embarrassment throughout thG
| country during the first few days of its
general operation, owing TO the several
! interpretations which have been placed
upon many of the schedules. Those reIat.
ing to beer and tobacco became operative
on June IA.
The scarcity of stamps has been a fac
tor of no mean Importance in putting the
measure into force, and the Government
with all the facilities at its command, ha.
been unable to furnish more than mere
fraction of the supply needed AS a re.
suit, many manufacturers of proprietary
articles will have to reduce their output
until such a time as the supply of stamps
is adequate.
In Washington the stamp famine is not
so acute as at cities farther away from
the supply. Neither is there so much ig-
norance here as to the requirements of the
law. The banks and different institutions
which use stamps have been fairly well
supplied.
The local internal revenue office on
G Street northwest, between Seventh
and Eighth Streets. is doing the big
gest business OF its existence. A long
line of waiting people with big rolls of
bills in their hands. is in front Of the
delivery window, waiting TO exchange
their money for stamps The clerks say
that the supply is short, and that they
have not been able to fill all orders.
Late this afternoon. however. a large
new consignment of Stamps came in.
The local banks are making the situa-
tion dGubiy hard on the local office by
buying stamps for their correspondents
in other cities. Millions of stamps are
leaving Washington in this way today.
The great demand is for 2-cent stamps.
partly because people are used 10 this de-
nomination and partly because a great
many of the taxes are imposed at that
rate. The expedient of utilizing the post
age stamps with the letters II. r.
printed on them has been resorted to-.
The use OF postage stamps is only tenn
pOrary. however.
At the Washington banks yesterday
checks and notes began TO come in, prop
erly stamped. Two mistakes are COM
monty made. A great many people are
under the impression that all checks pre-
sented today, whether they were made
yesterday or not, must be stamped
/ Checks have come in at all the banks
dated yesterday and the day before, with
stamps on them. Thus the customer
losses and the Government gains. as the
banks have not the time to have the
stamps soaked off and returned.
Many persons also send their checks in
with stamps uncancelled. The Washing
ton banks have entered into an agree
ment that the customers must do the
cancelling required by law
Books of stamped checks will soon be
ready and six printing agencies have
been esta blished at cities in various parts
of the country to meet the demand.
The belief obtains that there will be
many violations Of the law at first. be-
cause OF misunderstanding. out after the
law is understood thoroughly. the patri-
Otism of the American people is relied
upon to insure the strict enforcement of
the tax
Patrons of telegraph and express COM
panies viii be made 10 pay the TAX of
cent each on kilograms and bills of lad
ing by compelling them to buy the
stamps and cancel them. Notices to this
effect have been posted in the telegraph
offices. and supplies will be kept on hand
for several days. after which the public
will be expected to furnish its own
stamps. The same rule will be In force at
the office Of the express companies.
An effort is being made by merchants
to compel the express companies in many
OF the large cities Of the country 10 give
a receipt. with the stamp tax duly paid.
when a package is ordered for shipment.
The companies say that they have been
advised that they are not compelled 10
pay the tax. The railroad companies
have practically agreed to pay a part Of
this impost. In statement issued yes
terday the express companies recte that
the tax would amount in the case of the
five leading companies to 8 per cent on
their erNire capital.
Beer consumers in Washington will not
pay a higher price for the beverage be-
cause Of the war TAX. Neither will the
size OF the iriRk be diminished
This is the understanding between brew
ers in the District of Columbia The tax
had to be paid by the brewer. Ordinarily
he would cover it by raising the price to
the retail dealer and the latter would give
short measure or charge cents a glass
IL is known that soon after the enact
ment of the war revenue bill increasing
the tax to 81 per barrel number of
Washington brewers called a meeting to
make arrangements for raising the price
of beer to the trade. The meeting was a
failure, however, because of the absence
of Chr. Heurich, who declined to enter
into the agreement. He declared it his
intention TO stand the tax himself. The
Liquor Dealers Association viewed this
move with appreciation, but it is said
that there was a business reason for the
declination. 1t was believed that some
of the brewers could not sustain the loss
entailed by standing the full tax. 1t was
learned today. though. that the other
brewers have decided to follow Heurich' 5
action and they, too, will pay the tax.
1t is expected that the war tax on tel
ephOne messages will net the Govern
ment a considerable sum. Last year 900,-
100000 telephone messages were trans
mtted in this country. The new tax of
l cent per message applies only to toll
calls costing 15 cents or more each. The
telephone company estimates that they
will average about 1 per cent of the
whole, or 100000 messages, which, ac-
cording TO the revenue tax. will net the
Government $4,000 The telegraph COM
panies propose to charge their patrons /
cent per message, but the Chesapeake
and Ohio Telephone Company has an
nounced its intention TO pay the war tax
itself.
This information was given to The
Times by Mr.. Bryan, of the telephone
company, this morning. The perplexing
question of deciding doubtful points in
many of the schedules has been met by
collectors in various parts of the United
States as best they could. Collector
Treat. of the Second district. New York,
7---,g Il