The herald-advance. (Milbank, S.D.) 1890-1922, 1917-10-12
ARRANGE. FOR
l.. MEASURES, TO-.
:. ..,, :.,,,.:,,BAsE'MNtt.
Joint Conferees on War Revenue
Complete Their Bill and Turn
IN Their Report.
TAX LEvlES WILL BE HEAVY,
40 Y
TAX LEvlES WILL BE HEAVY

IN .evse0 Vl6e IL u
- sG.i{f
Under Legislation Provided, Powerful
Corporations Will Pay Their Proper
Share for the Finances That Must
BE Provided for the Successful Con-
tinuance Of the War-Best Efforts of
Statesmen at Washington Have
Been Put Forward to the Accom-
pIishment Of the country's Ends.
Washington.-The joint conferees on
the "a revenue bill completed their
draft after two weeks OF deliberation.
AS revised by the ~cOnferees the
measure has been raised from the levy
fixed by the senate Of $2,416, 67O,OOO to
an aggregate of approximately 81 ,7OO,-
100000. Chairman Simmons Of the
senate finance committee estimated
that the increase made by the con
ferees would approach $275,OOO,OO
Profits Tax Modified.
The excess war profits tax, as agreed
to by the co~nferees, Is u modification
OF the senate bill, the principal
changes being In the maximum and
minimum rates Of exemption upon
which the tax. Isl ito be determined.
The, senate graduated scale 1T iexeInp-
lions ran from s to 10 per cent. while
the house, exemption rate per
cent. The conferees, adopted the gf4df,
uated rate Of from Z to 8 per cent.
The definition Of capital, which was
nlpoint upon which the ,conferees ar
gued for days, was modified so as to
provide that the actual value of tangi-,
bic property paid into d CORPORATION
or partnership or individual business
before January 1, 1914. shall be taken
- ofathatsshItas Thegpr6sis0a s te
good Will apd 0th@ ~in&anGiblsE prop
exty has been somsys1at libaF4lfke].
- 10 Tnveae1 'capha!"
In calculating war excess profits e,e
terms invested capital nf corpora,
tons and partnerships. was declared
to'inclhdd actual cash paid Ia, actual
cash. value and other tangible prop
erty paid for stock or shares at the
time OF payment or January 1, 1914,
but iR-R0 eaae~to exceed~tffe-par~ vafuc
of the original securities; paid in or
earned surplus and undivided profits
used or employed in the business, ex-
elusive Of undivided profits earned dur
ing the taxable year."
The allowances for Intangible assets
includes actual cash value Of patents
and copyrights paid in for stock or
shares ut the time Of payment -.
good will trademarks, trade brands,
franchises -. II for bOne-1de pay
ments not to exceed the cash value"
It stipulates that such intangible
assets exchanged for securities before
March 3. 1917, not exceeding 20 per
cent Of the total, shall be included at
a value not exceeding a fair cash
value at the time Of purchase.
Postal Increases.
A flat increase on reading matter Of
Il cent per pound until July I, 1919,
and "a cent thereafter was provided.
Advertising matter, exceeding 5 per
cent of the total space would be taxed
from Il to 2A cents additional until
July /, 1919, and from X to AZ cents
more until July l., 1920; and from Y
to 6N cents to 1921 and from 1 cen
to 8 cents thereafter.
An additional tag of " cent per
pound until Juiy~l, 1919, and II cent
thereafter, on religious, agricultural,
fraternal and similar publications was
adopted.
The / cent tax on letters, excepting
drop letters and postal cards, was re-
stored by the conferees. A l cent adj
ditional tax on postal and private
mailing cards was added. The first
class matt increases nre estimated to
raise S9O,OOO,OOO, and are effective 80
days afetr the passage of the act. The
senate provision exempting from post
age Letters written by soldiers and
sailors abroad asaratained
Railroad vseK1Ss Hlk
The c~onferees ,lsyJsd B per, centM
lieu Of the senate sute Of J and NJ
house rate of 10 par cent on p1nseneDr
transportation, estirn6ted to raise from
the compromise levy abouot $6O,0OO.-
600 instead Of $37, 5OO,O 900 under the
senate plan. The 3 per cent tax on
freight transportation was retained
and the tax % express transportation
was increased SO that l cent would be
levied on each 20 cents paid instead
Of each Is cents. The house 10 per
cent tax on Pullman Accommodations;
cut to s per cent by the senate, was
restored and 10 estimated to raise 3d.
100000.
In lieu Of the house 5 per cent
tax on sales of automobiles by manu-
GARFIELD FIXES COAL PRICES