Omaha daily bee., 1899-07-14
1t Has Produced Almost Exactly the Amount
Estimated by the Commissioners.
MAY Be EXTENDED IN SOME DIRECTIONS
Telegraph and Express Companies in Money
Business May Be Taxed for That
MAY MODIFY THE INSURANCE SECTIONS
Several Items in the Old Internal
Revenue Tax That Could BE
Removed Entirely or
Modified.

WASHINGTON, July 13.-It is altogether
probable that the next annual report on the
internal revenue bill. will recommend
number of changes in the war revenue act,
In the main the law has worked satisfac-
torily and has produced almost exactly the
amount estimated by the commissioner.
This. however, was something less than the
estimates generally accepted by well-in-
formed members of congress. The internal
revenue officers are Of the opinion that the
law might be extended in some directions
without becoming burdensome to the public
One of the propositions now under considera-
tion is to assess tax on the sale or rental
OF all patent protected articles.
In speaking OF the matter today one of the
officials spoke OF the telephone companies in
this connection and at the same time said
there were many inventions producing an
enormous profit which could well stand a
revenue tax. 1t will probably be suggested
to congress that express and telegraph COM
panies doing money exchange business be
required to pay an annual tax for the privi-
lege. Although they now pay tax on re-
ceipts and kilograms, respectively, 1t is
pointed out that the bankers are required to
pay yearly tax of $50, which is regarded as
discrimination against them.
1t is probable that each express office and
telegraph Office in towns having over GER
tain population, IL the views of the treas
ury officials are approved by congress, will
be required to pay certain yearly tax for
the privilege of doing an exchange business.
A Modification Proposed.
1t is likely that modification of the law
with respect to mutual insurance COM
panes may be recommended In the pres
ent act there is considerable obscurity with
respect to the provisions as to these COM
panies, both fire and life. 1t Is pointed out
that number of the leading companies in
the country operated upon the mutual
plan. Some of these are paying the tax
without protest, but there is doubt as to
their liability in this respect. 1t is believed,
however, that congress clearly intended to
make the exemption apply to local com
panies doing strictly local business with
out surplus or undivided capital or without
money at their command to pay large SAL
aries to their officers.
Section 20 OF the war revenue act de-
fining what shall be taxed under schedule
has been source of much trouble to the
internal revenue officers. For instance, the
whole group of coai tar extracts have been
decided by the courts to be not subject to
the tax. A pound OF phenacetine costs in
Canada It is said, from IL to Is cents, and
yet in the United States the price is uni
formy a dollar pound. This drug. 1t Is
thought, could well stand a heavy tax.
Will Appoint Expert Commission.
There are several items in the old inter-
nal revenue tax 1t is thought could be
removed or modified, although it is believed
congress will be asked to appoint an ex-
pert commission to go over the ground and
recommend changes in detail experience
has found to be necessary. Under the pres
ent law spirits can only be sold in packages
OF certified capacity. The Canadian govern
ment, 1t Is said, takes advantage of thi:
restriction and prohibits the importation
into that country of spirits except in pack
ages of an unusual size. The result is tina
American distillers are compelled to ash
authority to ship their goods in packages
to comply with the Canadian requirement
thus destroying all marks and other evi
dences of age that is Of value to them.