The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1913-06-05
WILL HAVE TO
REMEDY DEFECT
In INCOME TAX
AS AT PRESENT MADE UP THE
MEASURE WOULD BE
UNCONSTITUTIONAL.
Scores of Protests Being Received
From Mutual Insurance Com
panies on the Tax.

WASHINGTON. June 4-Before the
senate acts on the Underwood tariff
OIL the income tax section will be
amended TO remedy a defect which. 4
was discovered today. would make the
measure unconstitutional When the
framers of the income tax provision
nNed January J. 1913. as the date from
which TO compute incomes for taxa
ton. they overlooked the fact that
the constitutional amendment author
iZlng an income tax was not proclaim
ed as ratified until February -. 1913.
This fact was brought TO the at
tsnt!on of the senate finance sub-com-
mittee. which has the income tax un-
der con sideration. and an amendment
probably will be drafted at once.
Aside from the constitutional defect
arguments have been presented in fa
vor OF making the taxable income. &C.
crue for the first from July l. or later.
As far as the constitutional Limitation
Is concerned. IL would be legal 20 com
pute Incomes for 1913 from March
Scores Of Protests.
Senator Williams subcommittee
sun has under advisement the scores
OF protests flied by officials of mutual
PIE Insurance companies against their
inclusion under provisions of the in
come tax law. and the committee sfll
Is considering an amendment which
would give such mutual concerns ~
emption Y they are able 20 prove a.
ter the tax has been assessed that
;hey are not conducted for profit and
that all OF their surplus earnings are
Lar'icipated in by their policy holders.
Among the briefs on this subject
Med with the Uh.c0mmittee is one
b. B. Steiner. business man of B.rm.
'ngham, Ala which includes CORES.
pondcncs with Representative Under
wood, chairman OF he House Wavs
and Means committee In letter.
70 Mr.. Underwood. Nr Steiner cited
the objections 10 taNing incomes of
mutual III" insurance companics.
maintaining that This would result
IN 'aA on the policy holders. VITO
would really 10 taxed tvico. Reply
lhr 90 this. Nr Underwood wrote:
Taxed Same Amount.
Won seem ~ ovcrlpol; iho fact on
'rclv that these companies are b..
irE iaNr' under tho present corpora.
lion i"N law ~ oNac'ly the same
amount I= fhey viii be- taxed in c,ir
.t'' ..'i.f' ~ tl'.. |'FI We are lowing
~" t"N on 'h"m ita' they do nor pat
~ present. IN ordinary corporation
is organized for tho benefit of IFS
stnck. holders. mutual iif" insurance
'omnanN rs organized for tho benefit
~ l'- polio, holder In ono in.
.i'nr". Tho individual hold Tho stock.
IN the ofh"r instance tho policy. and
in both instances -h" cnrpo-sfior IS
operated fo earn dividends ~ net pro.
frs FOR his bcucf
Action by tho sub committee. ~ he
ratified h' The finance committee. m
putting I've sfo,h and arair. ON tho
fr"e list retaining on rho FREQ Ter
di-". meats. fo"r and oatmeal ~ is
expected VIII 'rou-e protests from
farmers and farm ORGAN llffcr.. hat
tre committee VIII hold '1 fri. .of..
ticr OF fhe problem presented i1 thr
Underwood bin of o0uali,.rr aericui.
iural raw materials and fhrir rro.
ducts. ono Ni1oruus protest oan.o
from 'ho corn bolt cf I,v1 before tNo
action was announced