The Nevada County picayune., 1917-10-11

oraft 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, 6,670 900 to an aggregate of approximately $2, 700,- 100000. Chairman Simmons of the senate finance committee estimated that the increase made by the con ferees would approach $275, ,0OO,OO0
 Profits ak Modified.
 The excess war profits tax, as agreed to by the conferees. Is a modification of the senate bill, the principal changes being In the maximum and minimum rates of exemption upon which the tax Is to be determined. The senate graduated scale of exemp- uons ran from to 10 per cent, while the house exemption rate was per cent. The eonferees adopted the grad uated rate of from to per cent.
 The definition of capital, which was point upon which the conferees ar gued for days. was modified so as to provide that the actual value of tangi- ble property paid into a corporation or partnership or individual business before January 1, 1914. shall be taken as of that date. The proviso us to good will and other intangible prop srty has been somewhat lLberalized.
 As to Invested Capital"
 In calculating war excess profits the terms invested capital" of corpora. tons and partnerships was declared to include actual cash paid ln, actual cash value and other tangible prop erty paid for stock or shares at the time of payment or January 1, 1914. but In no case to exceed the par value 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"
 i The allowance for intangible assets includes actual cash value of patents and copyrights paid In for stock or shares at the time of payment good will trademarks, trade brands, franchises . If for bone-fide pay ments not to exceed the cash value"
 It supulates that such intangible assets exchanged for securities before March 8. 1917, not exceeding 20 per cent of the total. shall be included at value not exceeding fair cash value at the time of purchase.
 Postal Increases.
 A flat increase an reading matter of k cent per pound until JHty 1, 1919, and 12 cent thereafter was provided. Advertising matter exceeding , per cent of the total space would be taxed from 1A to 2i4 cents additional until July l, 1919. and from F to 412 cents more until July l, 1920, and from & to 62. cents to 1921 and from 1 cent to 9 cents thereafter.
 An additional tax of 1s cent per pound until July l, 1919, and ls cent thereafter. on religious, agricultural, frnternal and similar publications was adopted.
 The l cent tax on letters, excepting drop letters and postal cards, was re- stored by the conferees. A l cent ad- ditional tax on postal and private mailing cards was added The first class mail increases are estimated to raise S90.000 ,O00 and are effective 30 days afetr the passage of the act. The senate provision exempting from post age leetters written by soldiers and sailors abroad was retained.
 Railroad Tickets Hit.
 The conferees levied s per cent in lieu of the senate rate of 5 and the house rate of 10 per cent on passenger transportation. estimated to raise from the compromise levy abouot S60Oo0,- 900 instead of $37, 100000 under the senate plan. The 8 per cent tax on freight transportation was retained and the tnx on express transportation was increased so that l cent would be levied on each 20 cents paid instead of each 25 cents. The house 10 per cent tax on Pullman accommodations, cut to 5 per cent by the senate, was restored and Is estimated to raise S5.- 100000
 In lieu of the house per cent tax on sales of automobiles by manu- lecturers and the senate federal license tax on owners. the conferees adopted per cent tax on all motor vehicles, including trucks, payable by manufacturers. producers and import CTS
 Taxes of per cent of manufactur- CTS ales of musical instruments and jewelry also were written in, with a tax of i4 cent q foot on motion pie ture film.
 New inheritance lax.
 A new system of graduated lnheri- tance taxes was written into the bll in lieu of the house plan and despite the senate's rejection of such taxes. The new rates on inheritances, with those of Americans in military service exempted. range from one-half of l per cent on $50000 estates 10 10 per cent on estates of s10000,00O and more.
 The bulk of the increases of between s250 00o. 900 and $500, ,o0o, 900 made by