Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-05-29
Many Articles Levied Upon by
House Are Exempt Under
Provisions of Measure Now
Being Rewritten,
SECOND CLASS MAIL IS
CONSIDERED AGAIN
Hardwick Of Georgia Be-
Iieves Newspaper Advertis-
ing Space Should Be Heav-
lily PenaIized,

washington, May 2S.--Maklng ra'
pid progress in revising the houss
war tax bill. the senate finance com
mittee today decided to exempt from
taxation many articles levied upon by
the house, to substitute stamp taxes
for the manufacturers gross sale.
plan of the house and to consider
! new taxes upon second class mai
matter, The latter were advocated
! by Senator Hardwick and postoffice
F, department heads and would be
based upon the advertising space in
| publications
1t was agreed that there had been
no direct taxation on jewelry, motion
picture films, chewing gum and
pianos and self played musical in
struments.
For the house gross manufacture
sales tax of five per cent the COM
mittee determined to substitute
stamp taxes on the following:
The Substitute Tax.
Mechanical musical instruments,
inclding talking machine records,
athletic goods, perfumes, cosmetics
and patent medi ines.
For the house five per cent taxes
on yachts and other pleasure boats
o new tax based upon tonnage or
length was considered. A new tax
upon confectionery was proposed by
Senator Williams Of Mississippi and
IiavoIably received. Taxes on admis.
sions to amusement and other places
and club dues were considered but
no decision was reported. They
probably will be retained in amended
form.
Second Glass Mail Again.
Although the committee previously
decided to strike out the house in
cieases on second class mail matter
under zone system, it re-opened the
question of increased revenue from
newspapers and magazines today by
receiving the new proposal Of Sem
ator Hardwick backed by the post
office department. Senator Hard
wicks amendment provides that the
cent-a- pound second class rate shall
be retained on news matter of Sec
ond class publications. but proposes
a graduated tax upon the parts of
such publications as are devoted to
advertising. He told the committee
that by this method $20,000.000 Of
additional revenue this year could be
raised. For the first year he pro-
posed tax Of three per cent upon
advertising in second class publica-
tions, of six cents a pound beginning
July l, 1918, and of eight cents q
pound thereafter.
Method Complicated.
The tax would be computed upon
a space and weight basis. the adver-
tsing space being measured and the
tax levied upon the percentage OF the
publications. weight devoted to ad-
vertisements. 1t is expected that the
new proposal will be as vigorously
opposed by publishers as the house
zone system which the senate COM
mittee eliminated after hearing testi-
mony that it would ruin many pub
lications.
If adopted it would be in addition
to the direct advertising tax of two
per cent tentatively approved by the
committee.
The committee decision to strike
out the house gross sales tax on jew
elry motion picture films, and chew
ing gum was said to be based on the
general principle Of eliminating spe-
ciaI taxes on businesses and indus
tries. The motion picture business,
1t was argued, will be reached by the
excess profits, corporation and
amusement taxes.
To Distribute Burden.
The new stamp taxes proposed ON
perfumes. cosmetics and patent med
ioines, 1t was said, probably would
be distributed in actual operation be-
tween manufacturers, distributors
and the consumer. A floor or stock
space plan of levying the stamp tax
on distributors is being worked out
by treasury experts.
The general tariff increase Of 10
per cent of the house bill will be con-
sldered by the committee tomorrow.
Many members are insisting on it's
elimination. If not stricken out. sem
ators said tonight. 1t would be great
ly changed, especially the proposed
free list. As 1t affects supplies of
raw materials, manufacturers have
been active in urging that the whole
tariff section be stricken out.