The Dermott news., 1917-10-11

Under Legislation Provided, Powe rfui
Corporations Will Pay Their Proper
Share for the Finances That Must
Be Provided for the Successful Con-
unuance of the War-Best Efforts of
Statesmen at Washington Have
Been Put Forward to the Accom-
piishsnent of the country's Ends.
WaShinEtea.-The joint conferees on
the war evenne bill completed their
dra<t After TIVE weeks of deliberation.
As revised by the conferees the
measure has been raised from the levy
Axed BY the senate of $2,416 $4,000 10
an aggregate of approximately s., 100
O0O,o 0o Chairman Simmons of the
seAAte 6aance committee estimated
that Me increase made by the con
ferees would approach $275, oo0, 900.
Profits Lax Modified
The excess war profits tax, as agreed
to BY NE confeIees. is modification
Of Ne senate bill, the principal
changes being In the maximum ana
nAnlm~ rates OF exemption upon
which the tAx Is to be determined.
1Ae sea24e graduated scale of exemp-
tions rnA from q to 10 per cent. while
the house exemption rate was per
cent The cOnferees adopted the grad
uAte1 rate Il from TO 8 per cent.
The definition OF capital, which was
. point uI,on which the conferees ar
gued Tor days, was modified so as to
provide ti,at the actual value of tangi-
bic property paid into corporation
~ iSfrtEership or individual business
before January 1, 1914, shall be taken
rs 81 that date The proviso rs TO
good will nnd other intangible prop
erty has beea somewhat liberaiiZed.
AZ to Invested Capital"
In calculating war excess profits the
terms ''hvested capital" OF corpora
Hons and partnerships WIS declared
to lAc4s de -aetuul cash paid in. actual
cash value and other tangible prop
erty paid for stock or shares nj the
tune Of payment or January l. 1914.
but in no ease to exceed the par value
Of the original securities; paid in or
earned surp,us and undivided profits
used o. employed in the business. eX
elusive Of undivided profits earned dur
ing the taxable year
The allowance for intangible assets
inc ndes actual cash value of patents
aad copyrights paid in for stock or
shares Mt the time OF payment -.
s0ed viii trademarks, trade brands,
franchises II for bone-tide pay
mentS not to exceed the cash value"
n siipulntes that such intangible
assets exchanged for securities before
March 3, 1917. not exceeding 70 per
cent Of the total. shall be included ut
. vafHe nSt exceeding fair cash
vsiue nj the time of purchase.
Postal Increases.
A 1ak increase on reading matter of
Z Cunt per pound until July /, 1919,
aad = cent thereafter was provided
Advertising matter exceeding 5 per
cent q the total space would be taxed
fs0n Y to ~ cents additional until
mere sndi July /, 1920; aud from y
to Ga cents TO 1921 and from l cent
to 0 cents thereafter.
An additional tax Of II cent per
pe01a untN July l. 1919. and 4 cent
thereafter. Oh religious, agricultural.
frater,ai and similar publications was
adopted.
The ee0t tax on letters. excepting
drop Letters and postal cards, was re-
stored b. the cOnferees. A cent ad-
didonal tax on postal and private
mailing enrds was added The first
on1 mail increases are estimated to
rukse Sc. OOO. 900. and are effective 80
days Afetr the passage OF the act. The
senate provision exempting from post
age keetters written by soldiers and
0ailOrs abroad was retained.
Railroad Tickets Hit.
The conferees levied = per cent In
Aea - the senate rate of 5 and the
house rate of 10 per cent on passenger
transportation. estimated TO raise from
the compromise levy abouot $50 600
90 Instead of $37 100000 under the
senate plan. The 3 per cent tax on
freight transportation was retained
and the tax on express transportation
was Increased SO that / cent would be
levied on each 20 cents paid instead
At each - cents The house 10 per
cent tax on Pullman Accommodations,
cut - per cent by the senate. was
restored and is estimated to raise So
OOO,Co
n hea Of the house per cent
tex - saies of automobiles by manu-