The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-07-14
THE WAR REVENUE ACT.
Receipts from the Tax Have Been Less
Than Anticipated.
SCOPE OF TAXATION WILL Be INCREASED
Business Concerns Heretofore Ex.
empt Must Help TO Pay the
War Expenses.

Washington, July 13.--1t Is probable the
annual report OF the internal revenue bu-
reau will recommend number of changes
In the war revenue act. In the main the
law has worked satisfactorily, but has
produced something less than the esti
mates generally accepted by we'll informed
members OF congress. The internal rev.
enue officials are of the opinion that the
law might properly be extended in certain
directions without becoming at all irksome
to the public. One of the propositions now
under consideration 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 COM
panies in this connection, and at the same
time said there were many inventions pro-
ducing an enormous profit which would
well stand revenue tax. 1t probably will
be suggested to congress that express and
telegraph companies doing a money ex-
change business be required TO pay an an
nual tax for the privilege Although they
now pay tax on receipts and kilograms,
respectively, it is pointed out that there
are bankers required TO pay yearly tax
of 500, which is regarded as discrimina-
tion against them. 1t is probable that
each express Office and telegraph office in
towns having over a certain population, II
the views of the treasury officials are APP
proved by congress, will be required to pay
certain yearly tax for the privilege of
doing an express business: 1t is also like
ly that modification OF the law with re-
spect TO insurance companies may be COM
mended. In the present act there is con-
siderable 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 in the country
are operated upon the mutual plan. Some
are paying taxes without protest but there
is doubt as to their liability in this re-
spect. 1t is believed, however that con-
| gress clearly intended to make the expla-
nation apply to local companies doing a
| strictly local business without surplus or
undivided profits or money at their COM
mand with which to pay large salaries to
their officers.
Section 90 of the war revenue act. de-
timing what shall be taxed under schedule
b. has been a source of much trouble to
internal revenue officers. For instance,
the whole group of coal tar extracts have
been decided by the courts to be not subject
to tax.
| A pound of phenaticine costs in Canada
! 1t is said, from - to Is cents, and yet in
the United States the price is uniformly
81 pound. This drug, it is thought, could
we'll stand a heavy tax.
There are several items in the old in
ternal revenue laws which. it is believed,
should be eliminated or modified. and it
is not improbable that congress will he
asked to appoint an expert commission 10
thoroughly go over the ground and rec
ommend such changes in details as ex-
perience has shown to be necessary. I'm
der the present law spirits can be sold
only in the packages of certain capacity,
The Canadian government. it is said,
takes advantage OF this restriction and
/ prohibits the importation into that coun
try of spirits except in packages of an
unusual size. The result is that American
distillers are compelled to ask authority
to shin their goods in packages to comply
with the Canadian requirement, thus de
stroying all marks and other evidence OF
age that is of value 10 them.