Baxter Springs news., 1918-09-06

that to take 80 per cent of war prof
its when the Government is needing
it to carry on this war Of all wars sue
cessfully in order that German militar-
ism may for all time be crushed, is
right and no one should object but
this extreme tax should be taken only
from War Profits and in mining the
only fair way should be to find the
War Profits per unit or ton and not
make aggregate earnings the test
The following explains the point:
August 1S, 1918.
Hon. Claude Kitchin, Chairman,
Ways and Means Committee,
House Office Building,
Washington, d. c.
Dear Mr.. Kitchin:
IN RE: WAR PROFITS
Press reports indicate a likelihood
of the Revenue Bill containing a plan
for taxing War Profits, that is, taking
practically 80 per cent of all earnings
over pre-war earnings-the English
system.
The Press leaves the impression
that this tax is to be in addition to
excess profits tax or in lieu thereof at
the discretion of the Treasury Depart
ment.
Representing the zinc producers OF
Missouri, Oklahoma and Kansas de-
sire to call your attention to this con-
dition:
Mining, like the oil industry, is diff
ferent from most businesses. 1t is q
search for deposits of ore or deposits
of oil and when found placing the pro-
duct on the market. 1t is a gamble
TO find deposits, requiring oftentimes
cou, age to lose many times before To-
eating a paying prospect.
Added or Excess Profits as rule
are the results of discovery and mar
ket of war demands play no part ir
causing such added earnings.
The zinc mine operators in the Ok
lahoma field are producing severa
times as much ore now than prior tt
the war but this heavy production is
not the result of war demands.
The finding and development o.
larger and richer deposits, are the di
rect causes of the increased produc
ton and increased earnings.
If the Congress should adopt tht
War Profits plan either as an add
tional tax or one in lieu of the Excess
profits tax, then surely some methoC
should be adopted in order that Wa
Profits in mining may be found ant
equitably assessed.
This could only be done by taxing
the added profit of the taxable yea
over the pre-war period on the uni
or ton of production. This could b.
easily done. By determining the Wa
Profit on each unit the War Profit
will be reached and no injustice vii
be done the mining industry and vii
surely result in aggregate earning
from the basis Of the tax.
very respectfully,
A. SCOTT THOMPSON.
The purpose of this letter is to &c
to your attention the present situa
ton. Unfortunately for mines Sena
tor Stone is not here to help US on tn
Finance Committee but Senator Nu
gent from Idaho has taken his plac
and is sympathic. Senator Gore is
member Of this Committee and he ha
personally assured me that he will d
everything that is possible within hi
power to see that the zinc mines o
his state are not Disseminated agains
/ in this tax bill. He has very kind
asked me to keep him posted on tn
situation peculiarly effecting our min
and is showing the greatest interes
in the matter because it is effectin
one Of the greatest industries Of hi
state.
am quite sure it would be advii
able for every man interested in tn
zinc mines Of Oklahoma or Missouri I
drop a line to Senator Gore thankin
him for his efforts made and TO B
made along this line, and sxpresSin