The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-04-16
LIFE INSURANCE MEN
FIGHT TAX MEASURE
STIR Up PoTLCX-
HOLDERS TO PROTEST THE
PROPOSED LAW.
RULING AGAINST THEM
COMMISSIONER OF INTERNAL
REVENUE DECIDES THAT con-
TESTIoNS. RAISED WILL
SoT HuLD.

WASHINGTON April 1s-Pro-
tests made by life insurance com
panIes against the application Of the
proposed income tax law 10 dividends
declared by mutual and participa -
concerns and to policies paid or the
death Of a person insured. threaten
10 stir up trouble and may result
in amendments tn this section az the
pending revenue law
Millions of poliCyholdeTs and pros
pecuve heirs Of such 'poiCyho}ders as
we'll as the Insurance companies, are
involved, AS result memh beers Of
congress ar ebelne dciAged with pro-
tests from all quarters and 1t is al
ready apparent that the provisions of
the hill hearing ON dividends paid on
policies ard the proceeds af policies
paid upon death VIII not have as
smooth sailing aS was first supposed.
So far as the leaders are concerned
they are determined II possible 20
push the income tax provision through
the caucus just as it was reported
hy the ways and means committee.
They declare that the provision in
coutrpversy was worked out with
great care ard that 1t might just
as we'll he recognized now as later,
that with great many people the
income tax viii he unpopular for
while. They are opposed 10 any
exemptions except those already pro-
Vlded in the bill. and intend to stand
pat on the provisions taking the dtvi-
dends OF mutual insurance companies,
as we'll az oplicies that are paid upon
death.
Tax on Corporations.
The proposed law directs that a
tax II one per cent shall he paid on
the incomes Of all corporations. The
bill provides that the mel income Of
such corporations shall he ascertained
by dedueting from gross incomes re-
ceived within the year all necessary
expenses which are defined. and in the
case of Insurance companies the sums
other than dividends paid on policy
and annuity contracts. In the adj
ministration of the corporation tax
law, which is practically the same
in language 3s the income tax pro-
vision of the pending bill. the ques-
ton arose as to the meaning of the
word dividend and the status of
dividends declared by Insurance com
panies The commissioner of inter
nal revenue decided against the con-
tentions advanced in this reSard by
insurance companies The Under
wood Hun income tax provision is
written SO as To conform to the de-
cision Of the commissioner on this
point.
panies briefly was that their divi-
dends are not dividends in the com
mefciai sense, but are simply refunds
tn the polieyholder of portion of
the overcharge collected from such
policyholder at the time the annual
premium of the policy contract is coll
lected. The commissioner held this
contention to be untenable.
Agricultural Schedule.
When the Democratic caucus met
today consideration ofpthe agricultural
schedule was resumed. Every effort
made to amend ii was defeated.
Representative Levy wanted wheat
transferred to the free list but hastily
took his seat in the face of the chorus
of noes The bill levies a duty of 10
cents a bushel on wheat.
Representative Bathrick, of Ohio.
insisted that the rates on practically
all farm, products were too low. point
Ing out that the products of the
farm, when produced as manufac-
tContinued on Third Paaal