The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1899-07-21
WAR TAX TO BE EXTENDED,
It Is Proposed to Tax Sales OF Pat
ented ArticleRu

WASHINGTON, July 15.-It is alto
gether probable that the next annual
report of the internal evenue bureau
will recommend q number of changes
in the war revenue act. One of the
propositions now under consideration
is to assess n tax on the sale or rem
tai of all patent protected articles.
In speaking OF the matter one of the
officials spoke of the telephone COM
panies in this connection aud at the
same time said that there were many
Inventions producing an enormous
profit which could well stand a reve-
nue. tax.
1t probably will be suggested to
Congress hat express and telegraph
companies doing a money exchange
business be required to pay an annual
tax for the privileges. Although they
now pay a tax on receipts and tele-
grams, respectively, it is pointed out
hat bankers are required to pay a
yearly tax of $50, which is regarded
as a discrimination against them. 1t
is probable that each express office
and telegraph Office in towns having
over a certain population, if the views
of the treasury officials are approved
by Congress, will be required to pay a
certain yearly tax for the privileges
of doing an exchange business.
1t is also likely that a modification
of the law with respect to mutual in
surance companies may be raised.
In the present act there is consider
able ~obscurity with respect to the
provisions as to these companies, both
fire and life. 1t is pointed out that a
number of the leading companies OF
the country are operared upon the
mutual plan. Some of these are pay
ing 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
exception apply to local companies
doing a strictly local business, with
out surplus or undivided profits or
money at their command with which
to pay large salaries to their officers.
Section 20 of the war revenue act,
defining what should be taxed under
schedule B, has been a source of much
trouble to the internal revcnu Off
GERS For instance, the whole group
of coal 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 twelve to ff-
teen cents, and yet in the United
States the price is uniformly 81 a
pound. This drug, it is thought, could
we'll stand a heavy tax.
There are several items in the old
internal revenue laws which, it is be.
lieved, should be eliminated or mod
flied, and it is not improbable that
Congress will be asked to appoint an
expert commission to thoroughly 20
over the ground and recommend such
changes in detail as experience has
shown to be necessary. Under the
present law spirits can be sold only
in packages of certain specified
capacity. The Canadian govern
ment, it is said, takes advantage OF
this restriction and prohibits the i'm
p%ortation into that country Of spirits
except in packages of an unusual size,
The result is that American distillers
are compelled to ask authority to shit
their goods in packages to comply
with the Canadian requirement., thu:
destroying all marks and other evil
dence of age that is of value to them