Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-05-12
BIG WAR TAXES
CALLED UNFAIR
BY INDUSTRIES
National Manufacture
ers' Association Vig-
orously Complains
URGES AGAINST LEVY
ON EXCESS PROFITS
Proposes, as Substitute, Gen.
eral Corporation Assess
ment Advance
COTTON MAKERS OPPOSE
Distillers Say Huge Increase
Will Cut Revenue by Causing
Lawless Operations
URGES AGAINST LEVY
ON EXCESS PROFITS
COTTON MAKERS OPPOSE
WASHINGTON. NAV IL

WASHINGTON, May L..
The excess profits ta1 of the House war
revenue bill was declared unfair and in
equitable before the Senate Finance Com
mittee ty James A. Emory. counsel for the
National Association of Manufacturers and
other organizations which he said comprise
$500 corporations employing 2750.0O0
vorkmen, or 50 per cent of those in indus
tries being called upon by the Government
in the manufacture of articles for the war
He proposed instead increase of the normal
corporation taxes.
general attack u, on the whole bill was
made by Cameron Morrison. of Charlotte.
N. c., representing the American Cotton
Manufacturers Association. He advocate ed
extending the taxes over many years and
reducing the amount payable annually
The excess profit tax Mr. Morrison charac-
terized a discriminatory class tax i'm
posed upon corporations while individuals
are exempted. Corporations. he said, would
. prefer a straight income tax upon net profits
or gross sales.
STEEL COMPANIES PROTEST
Objections to the income taxes on stock
dividends were made by Paul ID. Cravath.
representing Bethlehem Steel Company
stockhoders J. A. Kratz of the Lacka- :
wanna Steel Company. and Edward w
wakey of the New Jersey Public Service
Corporation
Exemption from income taxation of stock
dividends of subsidiary corporations
already taxed. was urged by the Lacka-
wanna company.
Extra time was given by the committee
for discussion of excess profits taxes.
Inclusion of good will in calculating cap
ital for assessing the excess profits tax was
proposed by Joseph S. Aucrbach. represent
Ing the Woolworth Comapny. of New York,
Chairman Simmons said good will might
be used toward artificial estimates Of cap
ital and thus defeat taxation and for that
reason. he said, Cor has so far re-
fused to estimate er"d will as a part of cor
porate capital Artificial estimates also
could be made, he said, of the value of
trade marks.
Limitation Of excess profits tax to C, pi.
tai and assets of foreign fire and ma, lie
insurance companies actually used in this
country was urged by A. B. Thatcher Of
New York, representing various foreign cor
porations. He urged that the income from
securities held by such companies abroad
and not used in their American business
Should be exempt from the tax.
FOR LIQUOR INTERESTS
Opposing the doubling of taxes on dis.
titled spirits Levi Cooke attorney for the
National Wholesale Liquor Dealers Asso-
clation, predicted 1t would greatly increase
Illicit production, decreasing instead of in
creasing Federal revenues.
1T Is impossible to collect such a heavy
tax" he said. which represents a tax Of
about 1000 per cent upon the cost of manu-
facture"
Some increase in liquor taxes is not on
posed by distillers and rectifiers, he said
ana suggested ten per cent differential
increase or twenty cents gallon on
liquors manufactured before the bill is
passed. He argued that would conserve
sran supplies for food purposes, stimulate
revenues
The liquor trade is not opposing any in
crease he said. lin fact. they advocate an
increase, but not such an enormous one as
Is proposed" "
Equal and increased taxes on alcobo,
Ior beverage purposes, whether made from
sugar. molasses or grain, were urged nv
James p. McGovern. of the United States
industrial Alcohol Company. He said in
oustrial distillers believe alcohol products
.na "ms pe ana should be more heavily taxed
aau that the House bill removes discrimina-
son now existing between those distiIling
'Tin sugar beets and cane and from grain
inereased taxes proposed on beer from
sioV 10 s2.75 barrel. Robert Grain, of
sn .ne United States Brewers Association told
o'. eon,inittee. will put many small brewers
out Of business.
snls tax," he said. Whatever tax Congress
may put on the brewers, after careful con-
ueration, will be willingly and gladly
th,, To- We are hopeful. however, that
s onerous tax will be reduced. A tax
,OV y neavy will destroy large investments
A., oreweries' He praised the recent bone
ss usy law passed by Congress to prohibit
enlpment of liquor to prohibition States
.. Inomas White. Of Philadelphia manu-
..ae'ur,ng concern, argued that the soft drink
uiscriminates against that business
,h" >Dousias w. Hutchinson, in behalf of
Ee s,e National Manufacturers Of Soda Water
.avors, said 1t was unfair, for instance, to
>'1 ns soit drinks and not ice cream dealers
.an nat three-fourths Of the soda dispensers
ssan ane their own syrups and probably will
sn,a ,ape the tax on that commodity was the
ssp'Hion given by Fl. T. Cumming. a Roches-
a.. ~ Y" manufacturer He predicted
s," na. many manufacturers would have to
~'ose their establishments.
me proposed levy of eight cents a pound
~ oaroonic gas was declared arbitrary and
y sross,y excessive by'A r. Drunker, vice
pp,ssioent OF manufacturers association
tso.t t.e,t Z. Morris, of New York, also pro-
Ss, s.ea the tax. saying existing contracts
"ou'o prevent passing 1t along.