The Birmingham age-herald., 1918-08-25
AIDING MAKERS
 OF WAR MATERIALS
Nv HOLLAND


 New York, August 24.-(Special) Franklin K. Lane. Secretary of the In- terior, must have regarded it as mat ter of great importance or he would not have ventured to suggest to MT. Kftchin, chairman of the ways and means committee, that in preparing the new tax bill it would be the wiser part not to increase the tax on war profits and excess profits of corporations which are producing war minerals. Secretary Lane in making this state- ment 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, iron ore and also cement to pay fair taxes, but from a reason able business doubt as to the ability of these industries to maintain them selves if they are burdened with a heavy excess profit tax.
 Secretary Lane does not speak in general terms entirely, for he calls the attention of MT. Kitchin to one case of which he had personal knowledge A corporation whose product is Portland cement and whose plant Is in Pennsyl- vania, would have built an additional plant at a cost of not less than s100,0 ashes or dust or smoke which arises when cement is manufactured so that the potash, that is contained in these bi-products might be saved. The man. agers of this industry, Secretary Lane says, have refrained from erecting this additional plant fearing that the pres ent high price of potash will not con- tinue after the war Is ended It would cost about s10o,00o to make the exten- have to be met out of present earn ings. But if the proposed excess prof. it's tax is enacted into law the result wifi 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.
 It issa fact that capital is now hesi- tating about making investments which would be needed if extension of present plants were made or if new , plants were erected because of the fear llidS tilc cACcSS pTOItlSs LaX Will pc so heavy as to leave very little margin of safety for the future in view of the | uncertainty of prices after the war. In a few words, Secretary Lane sets forth this matter to the ways and means committee, saying that: "A very seri- ous situation has developed in connec- I tion with the effect of the excess profits tax on the production of certain minerals essential to carrying on the war. A number of cases have come tc my attention in which development is l being prevented because of the fact | that new mining enterprises of uncer- | tain life are not allowed to amortize I'the actual investment before being | subject to the excess profits tax. The men who are otherwise willing to de- velop such properties fear they will no 1 be able to get their investment back. 2
 ADMINISTRATIONS WARNING
 This statement is spoken of here as l perhaps the most significant and i'm 1 portant of any that have come from the
 administration referring to the pro- | posed new tax law, excepting of course l the able and carefully thought-oui | statement which was made few days
 ago by Secvretary McAdoo and which l seems to have convinced the ways ant
 means committee or it's chairman thai | the Secretary's view is correct.
 | Excess profits taxes may, it i. l feared, be carried so far as not only t. 1 impede the enlargement of industrie. now occupied in providing necessar,