The Washington herald., 1918-08-23


u would be the wiser part not to
Increase the tax on the war profits
and excess profits Of corporations
which are producing war minerals.
secretary Lane. in making this
statement. voices comment that has
been heard in this city. It does not
arise from any reluctance on the
part OF those who are developing
minerals such as coal and iron ore
TO pay fair taxes. but from rea-
sonable business doubt as to the
ability of these Industries to main
tain themselves II they are bur-
dened with a heavy excess profits
tax.
Lane Gives Example.
Secretary Lane does not speak in
general terms entirely, for he calls
the attention of Mr.. Kitchin to one
case Of which he had personal
knowledge. A corporation whose
product is Portland cement and
whose plant is in Pennsylvania
would have built an additional
plant at a cost Of not less than
100000 solely for the purpose of
utilizing the ashes, dust and smoke
which arises when cement Is man
ufactured SO that the potash con-
tained therein might be saved. The
managers Of this industry, Secretary
Lane says. have refrained from
erecting this additional plant, fear
ing that the present high price of
potash will not continue after the
war Is ended. It would cost about
100000 to make the extension to
the plant and this cost would have
70 be met out of present earnings.
But If the proposed excess profits
tax is enacted into law the result
viii be that almost all Of the profits
will go to, the tax gatherer and
there will be left an insufficient
fund with which to build this plant.
Capital f. HesItant.
1t is a fact that capital Is now
hesitating about making invest
ments which would be needed II ex-
tension Of present plants were made
or If new plants were erected be-
cause Of the fear that the excess
profits tax will be so heavy as to
leave very little margin of safety
for the future in view of the uncer-'
tatnty Of prices after the war Sec
retary Lane told the Ways and
Means Committee that: "A very
serious situation has developed in
connection with the effect of the
excess profits tax on the production
or certain minerals essential to
carrying on the war. A number
Of cases have come to my attention
in which development Is being pre-
vented because Of the fact that new
mining enterprises Of uncertain life
are not allowed to amortize the act
usl Investment before being subject
to the excess PROFITS tax. The men
who are otherwise willing to de-
velop such properties fear they will
not bsSable to get their investment
back" e.
warni1E From AdminIstration.
This statement is spoken of here
as perhaps the most significant and
important Of any that have come
from tha administration referring to
the proposed new tax law. except
ing OF course the able and carefully
thought out statement which was
made a few days ego by Secretary
McAdoo and which seems to have
convinced the Wsys and Means
Committee or its chairman that the
Secretary's view is correct.
Excess profits taxes may, IL Is
feared. be carried So far as not only
to impede the enlargement of indus
tries now occupied in providing ne
cessary minerals for war purposes
but also other important industrial
propositions
The Potash Question
The report made in this column a
few days ago which referred to the
development Of the potash industry
in the United States has brought forth
a number of communications from the
managers Of leading industries in this
country. all Of which refer to the i'm
portance Of calling the attention of
this country to the political as well
as Industrial necessity Of building up
the potash industry in the United
states. Doctor Charles Catlett, who
is one OF the foremost of American
chemists. in a communication states
that among the greatest potential
sources for potash production are the
blast furnaces and yet these furnaces
are now pushed to the limit by the
demand for iron, 80 that the man
ayers are unable to listen to any sug-
eestion that the by-products of the
furnaces be utilized for the recovery
Of potash.
John ]. Porter. who Is vice presi-
dent and also general manager of one
Of the largest cement Industries of the
United States, which has been for
some years in successful operation at
Hagerstown. Nd. states in his COM
rnunication that there is no question
but that II is the intention of Ger
many to use her supposed potash mo-
nopoIy as one Of the means Of enforc-
ing the best peace terms possible.
Mr. Porter Is OF the same opinion
which Is held in Washington business
circles. that not only will It be to
the Industrial advantage Of the United
States that we secure independence
so far as potash Is concerned. but also
will be a matter OF great political i'm
portance.
Byproduets Utilized.
The cement manufacturers have
done wonders In the way Of utilizing
by-products Of the industry for Sc
curing potash. Mr.. Porter while agree
ing with DR.. Catlett, that one OF the
chief potential sources of potash IN
the United States Is in the blast fur
mace, Is persuaded that the cement
INDUSTRY offers an even greater field.
The Cuban ores, which are used by
the Bethlehem Steel Company. and
the gray hematites of eastern Ala
barna are ores which contain suffi-
cient potash to make the recovery of
II an attractive commercial PROPOSE
tion. Today there are no blast fur
naess recovering potash except
experimentally. but there are fourteen
cement plants in the United States
which are actually recovering potash
or now installing the necessary ap-
paratus to do that.
Produce 100000 Tons.
Mr.. Porter estimates that the ce-
ment industry Of the United States