Arizona republican., 1917-09-30
C0NFEREES AGREE ON GREAT WAR TAX BILL AND HOUSE
 T0RECEIVE REPORT MONDAY
Republican A.P. Leased Wire1

WASHINGTON, Sept. 29.- Final agreement on the $2,7O0,OOO, 900 war tax Dill was reported late today by the senate and house conferees and the re- port will be presented to the house Monday. Levies of approximately $1,- ooo,ooo,O00 on war excess profits and so4z,o0O,O0O on incomes were left un- changed, but g. new system of calculat Ing excess profits was adopted.
 The conference report provides that the graduate tax of from twenty to sixty per cent on excess profits of cor porations, partnerships and individuals shall be levied on a basis of invested capital compared with invested capital or the three pre-war years of 1911, 1912, and 1915. This is a substitute for the senate taxes of from twelve to sixty per cent based upon a similar compar- lSon Of pre-War and present profits.
 The income tax section virtually was unchanged, except for encouragement Of surtaxes on incomes between $l5,- 900 and $40,000 The graduated sur taxes of from one to fifty per cent on incomes from $5,000 to those of a mil lion dollars and over were approved.
 The senate increase of from two to four per cent of the income tax on cor porations, joint stock companies and insurance companies was approved to- gether with the new normal individual tax of two per cent on incomes of un- married persons in excess of 5000 and of marred persons of more than $2000.
 The isncome tax section virtually H>ss unchanged, except for rearrange- ment of surtaxes on incomes between S15,OOO and S4O,000. Thegraduated sur taxes of from one to fifty per cent on incomes from s5,000 to those of q mil lion dollars and over were approved
 The senate increase of from two to four per cent of the income tax on cor porations, joint stock companies and insurance companies was approved, with the new normal individual tax of two per cent on incomes of unmarried persons in excess of $1 900 and of mar ried persons of more than S2,000.
 The graduated excess profits rates are twenty per cent of the excess prof its not in excess of fifteen per cent of the invested capital for the taxable years; 25 per cent on profits in excess of fifteen per cent and not over 20 per cent of such capital; 35 per cent on excess over 20 and under 25 per cent of capital; 45 per cent on excess over 25 per cent and under B per cent of cap ital and maximum of sixty per cent  such capital.
 In calculating war excess profits, the term invested capital of corporations and partnerships was declared to in clude actual cash paid in, actual cash value of other tangible property paid for stock or shares, at the time Of pay ment on 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 exclusive of undivided profits used or employed in the busi ness exclusive of undivided profits earned during the taxable year.
 The allowances for intangible assets include actual cash value of patents and copyrights paid in for stocks or cshares at the time of payment Good will, trade marks, trade brands, franchises if for bona fide payments not to exceed the cash value.''
 It stipulates that such intangible as sets exchanges for securities before March 3, 1917, not exceeding twenty per cent of the total shall be included al value not exceeding a fair cash value at the time of purchase.
 In lieu of the house zone tax on sec ond class publications the conferees in- cluded a new zone system, effective July l, 1918, with difference rates for reading matter and advertising matter with special, but increased rates for religious, agricultural and other pup lications.
 1 A flat increase on reading matter of quarter of a cent per pound until July 1, 1919, and one-half cent there after was provided. Advertising ex- ceeding 5 per cent of the total space would be taxed from + to 2A cents additional until July 1, 1919, and from l E cent to Az cents more until July l, i 1920; and from A cent to GA cents to 1921, and from 1 cent to g cents there | after An additional tax of 1s ce mt per pound until July l, 1919 and A cent fraternal and similar publications was 1 adopted.
 The 1-cent tax on letters, except drop letters, was restored by the con- ferees. A 1-cent additional tax on i postal and private mailing cards was added The first-class mail increases are estimated to raise $90,000.0O0 and are effective thirty days after the i passage of the act. The senate pro- l visions exempting from postage letters written by soldiers and sailors abroad | was retained.
 The conferees levied per cent in lieu of the senate rate of and the house rate of 10 per cent on passenger transportation estimated to raise from the compromise levy about $60 900, 000
 instead of s37.000,00O under the senate
 plan. The per cent tax on freight
 Continued on Page Two)