The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-01-25
To REDUCE REVENUE
SENATE COMMITTEES SUBSTITUTE
FOR HOUSE BILL.
MAKES A COMPLETE CHANGE.
REDUCTION IN WAR TAXES ESTI-
MATED AT $40,OOO,OO0.

The Report Recommends the RenOv-
al of Many Troublesome Taxes. In
Guiding Most of Those ON legal
Papers, kilograms, Railroad Tick
cts and Express Receipts-Cigar,
Beer and Tobacco Taxes Reduced.
Taxes on Insurance Policies he
duced-NRedicaI Preparations Not
Iieved of Tax.
Washington. Jan. Ex-senator Aldrich,
chairman of the Senate Committee on
Finance to-day reported the war revenue
reduction bill back to the Senate. The
committee reports a complete substitute
for the bill as it passed the House.
Senator Aldrich made a statement ex-
planning the changes which are as fol-
lows:
Stamp Taxes Repealed: Promissory
notes, mortgages, bills of lading for ex-
port, powers of attorney, protest, charter
party, certificates of all kinds, leases,
warehouse receipts, telegraphic dis
patches, telephone messages, passage
tickets costing less than $50, express re-
ceipts, afreight receipts, bonds, except
bonds OF indemnity, legacies to religious,
charitable, literary or educational insti-
tutions
Special Taxes Repealed; Commercial
brokers.
Taxes Reduced: Conveyances, insur-
ance, bankers capital, proprietary medi'
cines, cigars, tobacco, beer.
The statement says that having always
in view the revenue requirements of the
government, the purpose of the commit
tee has been to repeal such of the taxes
imposed by the war revenue act OF lS9S
as are most annoying and burdensome to
taxpayers, to retain such as should be
kept as a permanent part of our revenue
system or at least retained until all war
taxes can be repealed, and to reduce all
others as fairly and equitably as possible
by some general plans of reduction. Iur-
suing this general plan, it has been posi-
bic to reduce the taxes affected approx
| imately about one-half.
Taking the estimates of the treasury
department as basis the reduction of
revenue effected by the bill viii be nearly
! $i0,000000, a reduction somewhat less than
House of Representatives
! Reductions: ThN committees substitute
/ provtsiofis in regard to cigars, tobacco,
beer, etc, are as follows: That on and
after July Ia 1901, the internal revenue
tax on cigars weighing more than three
pounds per thousand shall be $3.50 per
| thousand.
THAT on and after July 1, 1901. there
shall be allowed discount of % per-
! centum on all sales of collectors to brew
! ers and manufacturers of tobacco and
! snuff upon the stamps provided for the
payment OF internal revenue taxes upon
! beer and manufactured tobacco and snuff,
| provided that the discount allowed to
brewers upon beer stamps shall be In
! lieu of the discount of seven and one
| half per centum allowed by the act of
June 13, 1898. The effect is to reduce the
beer tax TO $1.5O per barrel and on snuff
and tobacco to cents a pound"
There is a general reduction of the tax
| on insurance policies and renewals, and
| in lieu of the present taxes special taxes
| shall be imposed to be paid by the insur-
ance companies as follows
Life insurance companies, four cents
on the amount insured for each 500 or
| fraction of every policyN This provision is
modified by the following proviso:
'In all policies for life insurance only,
issued on the industrial or other weekly
or monthly payment plan of insurance,
| the tax shall be 20 per centum. of the
| nrst weekly premium or per centum.
| of the first monthly premium. The provis-
| ions of this section snail not apply to any
| fraternal beneficial society or order, or
| farmers purely local cooperative com
| pany or association, or employees relief
association, operated on a lodge system.
| or local cooperative plan, organized and
conducted solely by the members there
! Of for the exclusive benefit of its mem
bers and not for profit"
Marine. inland, fire, casualty. fidelity
| and guaranty insurance companies-one-
| quarter of one per cent. of the gross
premium receipts, purely cooperative or
mutual fire insurance companies" to be
exempted.
All insurance companies are to make
annual returns to the commissioner of in
| ternal revenue, to aid in the levy and col
| lection. Non-payment will make the de-
inquent company liable for the paymen,
of double the amount of the special tax,
and It is to be deemed guilty of misde-
meanor, punishable by a fine not exceed
ing five hundred dollars. The commis-
sioner of internal revenue is authorized to
examine books of companies suspected of
false returns.
The rate on conYeyances, including
deeds to land Is materially reduced. In
the existing law all deeds covering values
exceeding $100 are taxed at the rate Of
50 cents. The Senate committee removes
the tax on al deeds where valuations
are below 50 800 and makes the tax rate
% instead OF 50 cents. For each additional
$500 above SO 600, the tax is to be % cents
The tax on bankers is fixed at the rate
of 81 on each 81 600 of capital and sur
plus used by them.
Section 20 OF the existing law pertaining
to proprietary articles, including drugs,
perfumeries, etc, is practically rewritten
The first portion of the section Is allowed
TO stand, except that perfumeries and
cosmetics are eliminated. The proviso as
reported provides:
THAT no stamp tax shall be imposed
upon any uncompounded drug or cheml-
cal wherein the person making. uttering
or vending the same does not have or
claim to have an exclusive right TO the
making. or preparing Of the same. or
proprietary right in the exclusive or spe-
cial use of the name or title thereof, or
upon any uncompounded drug or chemical
not made. uttered or vended under any
letters patent issued in this or any for
elgn country. And provided further that
no stamp tax shall be imposed upon any
medicine or medical preparation COM
pounded according 20 a formula IN the
United States Pharmacopoeia or the Ma
tional Formulary of an edition not ear
lier than the year 1890, when such msdl-
cine or preparation Is designated on the
Z rr iHofoaffra thereof bv its tfua