Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-07-28

are made on the great volume OF bust
ness, not on inflated prices. the ad-
| vance in price being hardly in keeping
| with the advance in raw materials.
| The company claims that the bill be-
fore the House provides that the pow
| der manufacturers shall pay TO the
| Government a tax which may amount
| in maximum to so per cent or more OF
the profits, leaving to the manufacture
er, who has invested large capital and
taken the unusual risks peculiar to the
| industry, 40 per cent or less Of the
profits. For instance, the bill lays a
tax Of per cent on the gross receipts
| for one year in excess Of 100000, and
per cent Of the amount by which such
| receipts exceed 100000. On sales
| (eross receipts) amounting to $4,000, 900
| annually, yielding a profit of 121s per
cent or $2,50 900, there would be tax
| of per cent on 100000, or $4,000.
plus per cent of $1s,Ooo,ooo, or $780,
900, total $1,57o.ooo. They complain,
| further. that the allowance of profit
| of 10 per cent on the investment before
the tax is levied, as provided in the
BILL is too small, considering the risks
involved in manufacturing. And, again.
the bill is made retroactive, to include
the calendar year 1916.
Manufacturers of copper and copper
alloys protest vigorously because their
industries have been singled out to
bear a part Of this excise tax, While
other industries whose activities have
been enormously increased by the
| European war have escaped taxation.
| They declare it is significant that the
copper industries are located princip-
ally in the North and West, indicating
| the desire Of the Southern Democrats
| to throw the burden of taxation as
much as possible on those sections Of
the country. The smelling Of copper is
taxed, the industry being located prin-
| cipally in Michigan, Arizona, Montana.
| California, Utah and Colorado, while
no tax is placed on zinc, the center of
this industry being in Speaker Champ
| Clarke's State, Missouri. yet zinc is
| very necessary commodity in modern
warfare, as the vast increase in ex-
ports during the war period indicates.
Neither is there a tax on automobile
manufacture, although the expectation
Of autos, trucks and parts jumped from
| $34 oo0, 900 in value in 1914 to Sill 900, 900
in 1915. Leather and manufactures
thereof increased in value from $6S, 000,-
900 in 1914 to s156, 100000 in 1915. but no
tax is levied on this group, although
the increase is due chiefly to the de-
| mands of the warning powers for boots,
| harness and saddlery. Why is not
barbed wire a proper subject for taxa
tom" they ask. 1T is being used ex-
tensively by the belligerents for pur-
poses of defense" The value Of our
exports of this commodity in 1914 was
81, GOO ,ooo and $14,ooo,ooO in 1915.
| The fact Of the matter is that the
Ways and Means Committee in bring
ing in it's bill to tax war munitions
ran up against the definition laid down
by the Department Of Commerce, which
eliminated everything from the cate
CORY Of war munitions but explosives.
This was done to strengthen Secretary
! Redfield's claim that ours is not a war
order prosperity but due to Democratic
legislation. 1t is generally believed
that Mr.. Redfeld drew up this provi-
| sion of the bill