The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-07-30
Internal Revenue.

The internal revenue tax on tobacco
is amended, making the rates on chew
ing and smoking tobacco eight cents a
pound. No change was made in the
tax on cigars, except those weighing
under three pounds per thousand,
which were increased from 81 to rs
cents a thousand. The rates on
cigarettes were increased to $1.25 per
thousand A prohibition against the
use of coupons or special gift pledges
is incorporated in the new law.
The provision granting farmers the
free sale of leaf tobacco places a re-
striction on the retail dealer, which
requires him to record every sale
amounting to two pounds or more to
one person in one day. A number of
other iron clad requirements are in
cIuded in the redraft of this section
adopted by the conference committee
by which it was intended to prevent
any frauds upon the internal revenues
and at the same time give as much of
a local market as possible to the
tobacco grower.
Foreign built yachts are subjected
to an excise tax of 81 per gross ton,
which is to be collected annually on
the first day of September In lieu of
excise tax the owner of a foreign
built yacht or pleasure boat may pay
a duty of 35 percent i'd valorem on
his yacht. This will entitle him to
American registry.
Every corporation. joint stock COM
pany. or association organized for
profit, and every insurance company
is required to pay annually an excise
tax of one per cent upon ITS entire net
income over and above $4,000. This
feature was put into the bill to raise
additional revenue to apply on the
treasury deficit. The section was pre-
pared by Attorney General Wicker
sham assisted by other able lawyers
in administrative circles and great
care was taken to guard against
double taxation. 1t provides a form
of publicity which will enable the
Government to exercise supervision
The form of returns which must
be made by corporations and other
features of the corporation tax law
were made public in detail during it's
consideration in the senate. It is esti-
mated that from s2O,OO0,000 to $780,
O0O. 900 a year will be contained under
this new form of federal taxation.
Panama Canal Bonds.
The secretary of the treasury IS
authorized to issue Panama canal
bonds to the amount of $290,569, 600,
which sum, together with that al
ready expended, equals the estimated
cost of the Panama canal It is not
intended that the bonds shall be is
sued except as needed to provide
money to carry on the work of canal
construction. The bonds are to be
payable fifty years from the date of
iss1le and will bear interest at a rate
not exceeding three per cent. When
the bonds are sold the secretary of
the treasury will restore to the work
ing balance the $5O,00O,0OO paid
originally for the canal property and
the canal zone.
The re-enactment of the provision
authorizing the issuance of treasury
certificates for money borrowed to
meet public expenditures, increases
the amount of the authorization from
S1OO.OO0,O00 to 5000, 100000. a large
number of other provisions that
under the existing tariff law included
in the conference bill with a few
changes in nhaseology in several
cases.
The drawback provision of the
Dingley law is incorporated in the