The San Francisco call., 1899-07-14
MAY RECOMMEND
A NEW WAR TAX
Report of the Internal
Revenue Bureau.
TARIFF ON THE TELEPHONE
NEW RATE FOR ALL PATENT
PROTECTED ARTICLES.
Laws as They Now Stand Said to
Work in the Interests of Cana
dians and Against
Americans.
TARIFF ON THE TELEPHONE
NEW RATE FOR ALL PATENT
PROTECTED ARTICLES.
Special dispatch to The Call.

CALL HEADQUARTERS, WE'LL
INGTON HOTEL WASHINGTON,
July 13.-It is altogether probable that
the next annual report of the Internal
Revenue Bureau will recommend
number of changes in the war revenue
act. The internal revenue officials are
of the opinion that the law might prop
erly be extended in certain directions
without becoming at all burdensone to
the public, and in a way to produce
considerable revenue. One of the propo-
sitions now under consideration is 20
assess a tax on the sale or rental of all
patent protected articles. In speaking
of the matter to-day one of the officials
spoke of the telephone companies in
this connection, and at the same time
said that there were many inventions
producing an enormous profit which
could well stand a revenue tax.
1t probably will be suggested to Con-
gress that express and telegraph COM
panies doing a money exchange busi
ness be required to pay an annual tax
for the privileges. Although taxes are
now paid on receipts and kilograms re-
spectively, 1t is pointed out that bank
ers are required to pay yearly tax
of $50, which is regarded as discrimi-
that each express and telegraph office
in towns having over a certain popula-
ton, if the views of the treasury Off
cials are approved by Congress, will be
required to pay a certain yearly tax
for the privilege of doing an exchange
business, 1t is also likely that a modi-
fication of the law with respect to mu-
tual insurance companies may be
raised. 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 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 clear
| ly intended to make the exemption ap
! ply to local companies doing a strictly
| local business, without surplus or un-
! divided profits or money at their COM
mand with which TO pay large salaries
to their officers.
Section 90 of the war revenue act.
| defining what should be taxed under
| Schedule B, has been source of much
| trouble to the Internal Revenue 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 Can
| ada it is said, from IL to 10 cents and
| yet in the United States the price is
uniformly a dollar a pound. This drug,
it is thought, could well stand heavy
tax.
There are several items in the old
! internal revenue laws which it is be-
| lieved should be eliminated or modified.
| and it is not improbable that Congress
will be asked to appoint an expert COM
mission to thoroughly go over the
| ground and recommend such changes in
! detail as experience has shown to be
| necessary. Under the present law spir-
its can only be sold in packages of GER
! tain specific capacity. The Canadian
Government, it is said, takes advantage
| of this restriction and prohibits the i'm
! portation into that country of spirits
| except in packages of an unusual size.
| The result is that American distillers
are compelled to ask authority to ship
! their goods in packages to comply with
the Canadian requirements. thus de-
! stroying all marks and other evidences
of age that are of value to them.