The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-14
OBSERVATION-DISCLOSURES
NUMBER OF CHANGES IN THE WAR
TAX MEASURE MAY BE MADE
BY CONGRESS
ITEMS THAT ARE SUGGESTED

Express, Telegraph and Telephone
Companies Among Those who
May BE Called Upon to Pay Adj
ditiOnRI Taxes to the Govern
ment-Insurance Companies Are
Also Suggested.
WASHINGTON, July 1S.-It is alto
gether probable that the next annual re-
port Of the internal revenue bureau Will
recommend a number of changes in the
war revenue act. In the main the law
has proved satisfactory, and has pro-
duced almost exactly the amount esti-
mated by the committee. This, however,
was something less than the estimates
generally accepted by well-informed
members of congress. The internal reve-
nue. officers are of the opinion that the
law might properly be extended in GER
tain directions without becoming burden
some to the public and in a way to pro-
duce considerable revenue One of the
provisions 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 companies in this
connection, and at the same time said
that there were many inventions produc-
ing an enormous profit which could we'll
stand a revenue tax.
1t probably will be suggested to con-
gress that express and telegraph COM
pan1es doing money exchange business
be required to pay an annual tax for the
privilege. Although they now pay a
tax on receipts and kilograms respective
ly, it is pointed out that bankers are re-
qulred to pay yearly tax of $50, which
is regarded as a discrimination against
them. 1t is probable that each express
office and telegraph Office in towns hav-
ing over certain population, if the views
OF the treasury officials are approved by
congress, will be required to pay a GER
tainxryearly tax for the privilege of do
ing an exchange business.
1t is also likely that a modification of
the law, with respect to mutual insur-
ance companies may be recommended
In the present act there is considerable
uncertainty with respect to the provi-
sions affecting insurance companies, both
fire and life. 1t Is pointed out that a
number of the leading companies in the
country are operating 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
intended to make the exemption apply
to local companies doing a strictly local
business, without a surplus or undivided
profits of money at their command with
which to pay large salaries to their of
ficers.
Section of the war revenue act, defin-
ing what shall be taxed under schedule
B, has been a source of much trouble
to the internal revenue officers. For in
stance, the whole group of coal tar ex-
tracts have been decided by the courts
to be not subject to the tax A pound of
phenacetine costs in Canada, 1t Is said.
from II cents to Is cents, and yet in the
United States the price Is uniformly 81
pound. This drug; it is thought, could
well stand a heavy tax. There are sew
eral items in the old internal revenue
laws which, 1t is believed should be
eliminated or modified, and 1t is not i'm
probable that congress will be asked to
appoint an expert commission to thor
oughly go over the ground and recon-
mend such changes in detail as expert
ence has shown to be necessary.
Under the present law spirits can be
sold only in packages of certain speci-
fed capacity. The Canadian government,
it is said, takes advantage of this restric-
ton and prohibits the Importation 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 pack
ages, to comply with the Canadian re-
quirement, thus destroying all marks or
other evidence of age that is of value to
them.