The Mena weekly star., 1917-10-04
FINAL AGREEMENT
 ON WAR TAX BILL BILL
$2,700. .000,OO0 Measure Reported to the House T0day--S0me Changes Are Made-New System of Call
 culating Excess Profits.

Washington, Sept. 30. Final agreement on the S2,7oO,00000o war tax bill was reached late yesterday by the Senate and House confcrees and tue report viii he presented to tho House Monday.
 Levies of approximately Sl,000,- O0p000 on excess war profits and $sls.o00, ,0o0 on incomes were left un- changed, but new system of cal culating excess profits was adopted
 The conference report provides that the graduate tax of from 20 to co per cent on excess profits of cor porations. partnerships and indi- viduals shall be levied on basis of invested capital of the three pre- war years of i9ii, 1912 and 1913 This is substitute for the Senate taxes Of from i2 to 60 per cent based upon a similar comparison of pre- war and present profits
 The income tax section practically was unchanged, except for rear rangement of surfaces on incomes between $i5,000 and St0,000. The graduated surtaxes of from 1 to 90 per cent on incomes from 5000 tc those of a million dollars and over were approved
 Income Taxes.
 The Senate increase of from 2 to per cent of the income tax on cor porations, joint stock companies and insurance companies was approved together with the new normal in- diyiduaI tax of per cent on incomes of unmarried persons in excess oi Si.000 and of married persons oi more than 5000.
 The graduated excess of profits rates are 20 per cent of exces: profits in excess of i5 per cent anC not over 20 per cent of such capital 35 per cent on excess over 20 pel cent and under 9 per cent of cap ital; i5 per cent on excess over 2 per cent and under B per cent o1 capital and maximum of 60 pel cent on profits in excess of B pei cent of such capital.
 War Excess Profits.
 In calculating war excess profit. the term invested capital of cor porations and partnerships" was de clared to include actual cash paid actual cash value or other tangibl, property paid for stock or shares, al the time of payment on January i 1914, but in no case to exceed tho par value of the original security paid in or earned surplus and undi- vided profits used or employed 1T the business exclusive of undivided profits earned during the taxable year.
 It stipuIates that such intangible assets exchanged for securities, be- fore March 3. iai7, net exceeding 2 per cent of the total shall be in- cluded at a value not exceeding 1 fair casii value at the time of pur- chase.
 Taxes on Publications.
 In lieu of the House zone tax or second class publications the con ferees included new zone system effective January |, 1918. with diff ferent rates for reading matter and advertising. with special, but in- creased rates for religious, agricul- tilral and other publications.
 A flat increase on reading mat ter of quarter of cent per pound until July |, 1919. and half cent thereafter was provided. Advertis- ing matter exceeding per cent oi the totai space would be taxed from quarter to 2i4 per cent additional until July |, 1919, and from one- half to iih more until July f, 1920 and from three-quarters to 6aa cents to i92i and from ie to 9c thereafter
 An additional tax of one-eigllth cent per pound until Juls 1919 and one-quarter cent thereafter or religious. agricultural, fraternal ano similar publications was adopted The ic tax on letters except dror letters was restored by the con ferees. A ic addition tax on postaI and private mailing cards was added The first class mail rates are estl- mated Co raise S90000,000 and art effective 30 days after passage oi the act. The Senate provision ex- empting from postage letters writ ten by soldiers and sailors abroad was retained
 Passenger Transportation.
 The conferees levied eight per ceni in lieu of the Senate rate of five anc the House rate of 10 per cent, on passenger transportation, estimated to raise from the compromise levy about S60000,000, instead of S37,000,- 000 under the Senate plan.
 The three per cent tax on freight transportation was retained and the tax on express transportation was increased so that one cent would be levied oa each a0 cents paid, instead Of each 2 cents. The House 10 per cent tax on Pullman acconmoda- tions, cut to five per cent by the