Baxter Springs news., 1918-09-06

and he has greatly helped Mr.. InOmps
presents the matter in itself, follows:
August 81, 1918.
The Baxter Daily Citizen,
Baxter Springs, Kansas.
Gentlemen:
The Revenue Bill as drafted by the
Ways and Means Committee will have
been presented to the House of Repre-
sentatives by the time you receive this
communication.
l do not know the exact provisions
of the measure but at present l am
assured that the bill will provide for
the War Profits Tax in the event a
larger tax would be returned to the
Government than that figured under
the excess profits tax. The excess
profits tax is to be retained with much
higher graduated rates in the tax but
with the alternative of assessing un-
der the War Profits plan if by so do
ing larger tax can be collected. The
War Profit tax will be 80 per cent nat
of all net profits received during the
taxable year above average annual
earnings of 1911-12 and 1913 plus 10
per cent on new capital invested since
prewar period. If no pre-war record
is had the tax will be 80 per cent nat
of all net earnings above 10 per cent
on invested capital.
Representing the Joplin Miami field
I have contended before the Commit
tee in open hearings and with individ-
ual members personally that mining
should not be classed with the conser-
vative and safe business OF banking;
that the risks or hazards Of business
should be recognized in fixing deduc-
tions on capital. There can be no
sound argument against this conten-
ton.
The Committee as a whole finally
agreed upon classifying business al
lowing mining so per cent larger de-
ductions than to stable business like
banking. This allowed mines II per
cent deduction on capital. This oil
course is a very reasonable allowance
for mines where large uniform depos-
its are known, such as iron or copper
porphyries, but is inadequate for our
field where the risk is greater, where
the deposit is less uniform and the LIE
short. 1t was an improvement, how
ever. Treasury experts conceded the
necessity for such classification.
urged the necessity of larger deduc'
tions in individual cases within the
class of mines and recommended 0
provision for mines, providing a de-
duction of IL per cent as minimum
and 20 per cent as a maximum, VIII
the power in the Treasury Department
IN fix the deduction in each case. Th'
plan would have enabled the Depart
ment to give much larger deduction
To zinc mines in our district over cop
per or zinc mines of the West, wher'
their assured life is much longer.
Within the last few days Mr.. Nc
Adoo has declared against the classl
feation and has insisted that all bus
mess shall be treated alike and tina
the deduction shall be 10 per cent
Ilaeing mining with banking as bus
ness of equal risk. Mr.. McAdoo'
qAaahest will likely be adopted by tn
House II is unfortunate that Their
are no mining men on the House Com
mittee.
We are more fortunate in the make
nm of the Senate Finance COmmitte
with such men as Senators Smoo'
Nupent, Thomas, Jones and Corr
active on the Committee and fror
states with large mining interests an
witb active knowledge Of the industry
Members of the; Senate Committe
have expressed an intention to Sc
that mining is more equitably treat
Al than has heretofore been the cas-.
and we have hopes Of q radical depar'
uTp IN the Senate from the action o
the House. 80
me war profits plan, advocated b
NJ MeAdoo. win catch 90 per cent q
m corporations. am e0n'snoin