New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-29
Substitute for Assessment
on Manufacturers Sales
Adopted
Films, Jewelry
And Gum Exempted
Postal Department Urges
Increase of Revenue
from Publications

Washington. May %. Making rapid
progress in revising the House war
tax bill, the Senate Finance Commit
tee to-day decided TO exempt from tax
alton many articles levied upon by
the House, to substitute stamp taxes
for the manufacturers gross sales
plan of the House and to consider new
taxes upon second class mail matter.
The latter were advocated by Senator
Hardwick and Postoffice Department
heads, and would be based upon the
advertising space in publications.
II was agreed that there should be
no direct taxation on jewelry, motion
picture films. chewing gum and pianos
and self-played musical instruments.
For the House gross manufactures
sales tax Of per cent the committee
determined to substitute stamp taxes
on the following: Mechanical musical
Instruments. including talking machine
records: athletic goods. perfumes, cos
metics and patent medicines.
For the House per cent tax on
yachts and other pleasure boats q new
tax based upon tonnage or length was
tionery was proposed by Senator Will
Jams. Of Mississippi, and favorably re-
ceived.
Taxes on admissions to amusements
and other places and club dues were
considered, but no decision was
reached. They will probably be re-
tanned. it was officially stated, In
amended form.
Although the committee previously
decided to strike out the House in
creases on second class mail matter
under a zone system. it reopened the
question Of increased revenue from
/ newspapers and magazines to-day by
/ receiving the new proposal of Sena-
tor Hardwck, backed by the Postoffice
/ Department. First Assistant Postmas-
/ ter General Coomhs and Second Assist
ant Stewart, in addition to Mr.. Hard
wick. were heard by the committee this
afternoon.
Senator Hardwick's amendment pro
vides that the cent-a-pound second class
| rate shall be retained on news matter
Of second class publications, but pro-
poses graduated tax upon the parts
/ Of such publications devoted to adver'
Using. He told the committee that by
this method s20,000,000 of additional
revenue this year could be raised. Fol
the first wear he proposed tax of
per cent upon advertising in second
class publications; of six cents pound
beginning July l., 1918, and of cents
pound thereafter.
The tax would be computed upon q
space and weight basis. the advertising
space being measured and the tax levied
upon the percentage of the publica-
tions' weight devoted to advertisements
1t is expected that the new proposal
will be as vigorously opposed by pub
/ fishers as the House zone system, which
the Senate committee eliminated after
hearing testimony that it would ruin
many publications.
If adopted il probably would be an
addition 10 the direct advertising tax
/ of per cent tentatively approved
/ by the committee.
! The committee decision to strike on.
House gross sales taxes on jewelry
motion picture films and chewing gum
was said to be based on the general
| principle Of eliminating special taxes
/ on businesses and industries. The
motion picture business, it was argued
will be reached by the excess profits
corporation and amusement admission
/ taxes.
The new stamp taxes proposed on
perfumes, cosmetics and patent medi-
cines. it was said, probably would be
distributed in actual operations be-
tween manufacturers, distributors and
the consumer.
The general tariff increase Of 10
per cent of the House bill will be con-
sidered by the committee tomorrow
New York members are insisting
upon its elimination. If not stricken
out Senators tonight said it would BE-
greatly changed.