The evening times., 1900-07-17

Frank II. Mason, the United states Con
! sui General at Berlin. has made a report
| to the State Department on the subject
| OF Special Taxation Of Department Stores
in Germany" The fact that this same
subject is being agitated in some Of the
large cities in this country gives addi-
| tional interest to the report Mr.. Ma
son says:
in a previous report Of this series an
account was given of the efforts which
had been made during a period Of several
years to secure the enactment Of a law
| levying a special and progressive tax upon
bazaars or department stores. All these
| efforts. the latest Of which had terminated
in a debate which took place in the Prus-
/ sian Diet during April Of last year. lad
| failed, for the reason. mainly. that The pro-
| posed statute was opposed by the class Of
| supply stores which serve exclusively
| military officers and Government officials.
! and exercise therefore a definite infiu-
| ence in legislative affairs. But, noJwith-
| standing all opposition and hesitation On
| part of the Government. the measure had
been brought up at the recent session OF
/ the PrUssian Parliament, and after a long
! and interesting debate was adopted by
both houses on the 18th Of June and pro-
| claimed by royal edict TO take effect from
| January /, 1901
In view Of the practical interest which
/ this class Of legislation may have in Ger
tain States OF the Union an official copy Of
the statute is enclosed as an exhibit with
this report The provisions Of the law are
I substantially as follows. il being promised
| that it applies 10 the Kingdom Of Prussia,
| except the HohenzoIlern Crown lands and
/ ihs Island Of HelgOland and that all taxes
| collected under il revert to the treasury OF
! the commune or municipality in which the
I store is located.
Paragraph Of the statute divides the
merchandise 10 be sold into four groups. as
/ follows.
i. Groceries and colonial produce. food
products and drinks. tobacco and manufac-
lures thereof. smokers articles. apotheca-
ries' supplies. colors, drugs, and perfdm-
cry.
-. Yarn and twine, upholstery goods.
mercery. dTapery. woven knit, and embrOi-
dered goods. underclOthing Of all kinds,
bedding and furniture of all kinds GER
tains carpets and all material used in in
terror household decoration
''3. Household, kitchen. and garden uten-
sils and implements, stoves, glassware.
porcelain. earthen and stone ware, uphol-
stored furniture and materials thereto per
tanning.
II Gold. silver and other jewelry:
objects of art or luxury, bric-a-5 5-ac. ar
ticles of paper or papieT-mache. books and
music. weapons, bicycles; articles Of spOrj,
/ riding. driving. ani hunting, sewIug ms-
chimes, toys, optical medical. scientific,
or musical Instruments and apparatus.
Every store, bazaar, or warehouse
which shall sell articles belonging 20 more
/ thaD one OF the above groups. and OF viii b
store the aggregate sales amount 10 more
than J,GG0 per auLum. shall pay a spe-
cial tax graduated according 10 the total
amount of its annua! sales.
This law has been enacted for the pur-
pose of equaIiziEg the advantages which
large bazaars, department stores. and CO.
| operative retail establishments enjoy over
the minor and middle-c.azs merchants
whose business is restricted to a few arti-
c!es and does not exceed a yearly turnover
OF $4,000. At one time during the deba e.
il was proposed by the House of Lords
the upper chamber OF the Prussian Par
liaaent-to exempt the stores which be-
long 20 and serve army and navy officers
and civL officials, but this was denOuucei
by the House Of Deputies as an odlous act
Of class legislation, in favor Of a sp ciafIy
privileged caste. so that the lords were
forced TO yield and the law was euacied
in its presen form. Finance Minister
Miguel. the ablCst and most ad-Oit master
of taxation IN Germany, who has stood as
. sponsor for the new act during its pas
lowing declaration explaining its purpose
and pOrtraying its results when accep ed
ing good faith and impartialy enforced:
" 'It VIII depend upon the mercantile
and Industrial classes themselves whether
this law shall fulfill for them the benevo-
lent purpose Of the lawmakers. It Will be
their task TO promptly create and organize
with self-heIpfuI rIotives such associations
and installations as are calculated TO best
increase their power Of competition with
the department stores. They Will have tc
provide. especially through the organization
OF purchasing and selling societies for
cheap purchases and sales and neither ac-
cept goods nor sell them on credit
" In this respect also VIII the system
! OF organized self-proyection offer a wide
field OF usefulness. The state has already
through the creation OF q central bank fol
the finances OF organized guilds done what
ii could properly do to promote the inter
ests Of the smaller merchants and indus
trial classes. It will be the task Of the
middle-class dealers. who have suffered
from the competition Of the great depart
ment stores. to improve the opportunity
created by this new tax to strengthen
themselves by improved equipment and
management for competition with the large
establishments. The State has done its
part; It now rests with the mercantile and
industrial middle classes. through intelli-
selves against the competition Of large cap
itaI'
These are brave words. and every friend
Of the German people will hope that the
aspirations of the Finance Minister con-
cerning the practical effects of the new
law may be fulfilled by the event But
there are not wanting many intelligent
Observers who are extremely skeptical as
to the result. The department stores and
other large retail houses have six months
in which 10 prepare for the new regulation
II is believed that many of them will con-
fine their future trade 10 articles included
in one Of the foregoing categories and thus
evade the new tax. Should they do this
their stocks on hand OF goods belonging Il
other groups will be sold out at bargain
7 counters before January ! at whatever they
will bring. and this. il is predicted will
/ supply the demand for certain articles and
| deDress the market for some time TO come
/ Moreover, large number Of the small
er merchants fail 20 see how the new law
which simply taxes the large concerns Ia
per cent additional on their sales and
turns the proceeds OF such taxation over
to the communal and city treasures. is "a
help the middle-class merchants and their
customers 10 unite and pay cash for their
goods. which they have heretofore bough,
and sold on credit. The big stores. saw
these critics will either add the amount OF
their tax TO the prices OF their goods OF
strive by increased sales to make I'D the
amount The line between the taxed and
untaxed stores viii be drawn more sharply
than before. and the ala struggle will re-
main between organized capital, which car