The midland journal., 1917-10-12
ARRANGE FOR
MEASURES TO
RAISE MONEY
Joint Conferees on War Revenue
Complete Their Bill and Turn
in Their Report.
TAX LEvIEs WILL BE HEAVY

Under Legislation Provided, Powerful
Corporations Will Pay Their Proper
Share for the Finances That Must
Be Provided for the Successful Con-
tinuance of the War-Best Efforts OF
Statesmen at Washington Have
Been Put Forward to the Accom-
pIishment Of the country's Ends.
Washington.-Thej joint conferees on
the war revenue bill completed their
draft after two weeks of deliberation.
AS revised by the conferees the
measure has been raised from the levy
fixed by the senate of $2,416,670,O00 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 $275,000,O00.
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-
tions ran from to 10 per cent, while
the house exemption rate was 8 per
cent. The conferees adopted the grad
uated rate of from Z to per cent.
The definition of capital, which was
a point upon which the conferees ar
gued for days, was modified so as to
provide that the actual value of tangi-
BILE property paid into a corporation
or partnership or individual business
before January 1, 1914, shall be taken
as of that date. The proviso as to
good viii and other intangible prop
erty has been somewhat liberalized.
AS to "Invested Capital"
In calculating war excess profits the
terms invested capital of corpora
tionS and partnerships was declared
to include "actual cash paid in, 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."
The allowance for intangible assets
includes actual cash value of patents
and copyrights paid in for stock or
ch OF hn nf
good will trademarks, trade brands,
franchises -. if for bone-fide pay
ments not to exceed the cash value"
1t stipulates that such intangible
assets exchanged for securities before
March 3, 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 fiat increase on reading matter of
"A cent per pound until July l, 1919,
and 1a cent thereafter was provided.
Advertising matter exceeding per
cent of the total space would be taxed
from a to PA cents additional until
July 1, 1919, and from u to 41a cents
more until July ], 1920; and from II
to 6A cents to 1921 and from 1 cent
to 8 cents thereafter.
An additional tax of Is cent per
pound until July 1, 1919, and "A cent
thereafter, on religious, agricultural,
fraternal and similar publications was
adopted.
The l cent tax on letters, excepting
drop letters and postal cards, was re-
stored by the conferees. A 1 cent ad-
ditional tax on postal and private
mailing cards was added. The first
class mail increases are estimated to
raise $90,000,000, and are effective 30
days afetr the passage of the act. The
senate provision exempting from post
age Letters written by soldiers and
sailors abroad was retained.
Railroad Tickets Hit.
The conferees levied per cent In
lieu of the senate rate of 8 and the
house rate of 10 per cent on passenger
transportation, estimated to raise from
the compromise levy abouOt $60,000,-
600 instead of $37 100000 under the
senate plan. The per cent tax on
freight transportation was retained
and the tax 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 $5,-
100000.
In lieu of the house 8 per cent
tax on sales of automobiles by manu-