The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-07-14
MAY TAX PATENTED ARTICLES.
INTERNAL REVENUE ACT WILL BE
SOMEWHAT EXTENDED.

A"iH OF Taxing Telephone. TeIe-
graph and Express Companies.
Ihey Way BE Charged for Doing
an Exchange DuSinesS-Noditicn-
tton of the LAW with Regard to
insurance Companies, Suggested.
some PuzzIin& Features.
Washington, July lS.-It is altogether
probable that the next annual report
of the internal revenue bureau will recon-
mend a number of changes in the war rev
enue act.
In the main. the law has worked salts
factoriy ana has produced almost exact
~ the amount estimated by the commls-
sioner. This, however was something
less than the estimates generally accepted
by well informed members of CONGRESS.
The internal revenue officials are of the
opinion that the law might properly be ex-
tended in certain directions without he
coming at all burdensome TO the public.
and in way to produce a considerable
revenue. One of The propositions now un-
der consideration is 10 assess a tax on the
sale of rental of all patent protected ar
tlcles.
Tax on Telephones.
In speaking of the matter to-day. 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 could
well stand revenue tax 1t probably wi
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 taxes
are now paid on receipts and telegrams
respectively, it is pointed out that bank
ers are required TO pay a yearly tax of
500 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, IL the views of the
treasury officials are approved by Con-
sress, viii be required to pay a certain
yearly tax for the privilege of doing an ex-
change business.
May lie Notifications.
1t is also likely that a modification of the
law with respect to mutual insurance COM
panjes may be recommended. In the pres
ent act there Is considerable obscurity
with respect to the provisions as to these
companies, both fire and life Ii is point
panies in the country are operated upon
the mutual plan. Some of them 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 10 make the exemption
apply to local companies doing a strictly
local business without surplus or und-
vided profits OF money at their command
with which to pay large salaries to their
officers.
A PuzzIIng Section.
Section 20 of the war revenue act defin-
ing what shall be taxed under schedule 3
has been source of much trouble 10 the
internal revenue officers. For instance
the whole group of coal tar extracts has
been decided by the courts TO be not sub
iect TO the tax.
A pound of phenacetin costs in Canada
1t is said, from 12 to 10 cents, and yet in
the United States the price is uniformly
81 a pound. This drug, it is thought, could
well stand a heavy tax.
There are several items in the old inter-
nal revenue laws which, il is believed,
should be eliminated or modified and 1t
is not improba bic that Congress will be
asked to appoint an expert commission
to thoroughly go over the ground and
recommend such changes in detail as ex-
perience has shown to be necessary.