davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1918-12-24
Senators Bitter
In Denouncing
Bt1rleson's Acts
Hitchcock, Democrat, Calls
Seizure of Cables Utterly
Unjustified Proceeding,
Smacking of Bad Faith
New York Tribune
WdshinQton Bureo1e


WASHINGTON, Dec. 23.-Postmaster
General Burleson was bitterly assailed
on the floor of the Senate to-day by
Senator'S Hitchcock (Democrat), of Ne
braska, and Smith (Republcan), of
Michigan, during the debate on the rev.
enue bill.
Seizure of the cables under war pow
ers after the war had ended was char
acteriZed by Senator Hitchcock as a
"high- handed outrage" He added that
Burleson's whole course in trying to
force government ownership on the
country at this time "smacks of bad
faith"
Senator Smith declared that efficiency
of the Postoffice Department has been
sacrificed by Burleson, who "voluntar-
lily has overburdened the department
with esponsiblities, political and
otherwise"
From the head down." Senator
Smith charged regarding the Postoffice
Department, at is incompetent and yet
we are talking about giving them new
and added responsibilities. | wish
there was some way to have a vote now
on the suggestion of the Postmaster
General that he wants to buy the tele-
graph and telephones I think Con-
gress would turn them over to private
control so quickly that he would real
ize that the administration of the
Postoffice Department has not been
successful"
Senator Hitchcock started the fire.
works by reading a letter from Burle-
son answering Hitchcock's charges OF
few days ago that the breakdown of
no /. l..
cXpeditionary forces was chargeablo
partlw to the Postoffice Department
The Postmaster General "passed the
buck" saying the whole matter was
turned over to the War Department
June 80, last
The Nebraska Senator reiterated his
charge that the Postoffice Department
had been at fault, but said this APP
piled to the period previous to June 80
Senator Smith interrupted to ask
who is responsible for delays in the
delivery of kilograms. He told Of
sending message from Harrisburg
Penn. at P. p. m., to his home here. II
was delivered after breakfast the fol-
lowing day, despite the fact that Sen
ator Smith had paid for immediate
service.
$50 far as am concerned Sen
ator Smith declared. "thcre is not a
branch Of the government to which
would not willingly trust the mails
in preference to that branch which
has had charge Of it for the last few
years"
Senator Hitchcock said q pretty fair
job Of delivering mails in this coun-
try had been done by Burleson.
But it is a serious mistake which
the Postmaster General has made, -
he continued, "in reaching out to con-
troll business activities at this time
with a power Congress did not intend
to put in his hands.
II think the seizure Of the cables was
an utterly unjustifiable proceeding.
1t smacks Of bad faith.
Congress deliberately put the power
in the Hands Of the administration for
certain purposes, but after the war is
over it has been used to gratify the
personal convictions, personal opinions
and personal wishes of the Postmaster
General"
New-York tribune., 1918-12-24
Seni-Lusury Tax
Taken Out, Put Back

The Senate bill as finally amended
carries the semi-uXury tax, though the
Finance Committee struck it out, but
the rate Of taxation is made 10 instead
of 20 per cent, as in the House bill.
This section imposes q tax of 10 per
cent on the following list of articles,
to the extent by which their price ex-
ceeds the price specified
Carpets and rugs, including fibre.
except imported and an American rug
made principally of wool, on the
amount in excess of s. square yard;
picture frames in excess of $40 each !;
trunks in excess of $50 each; vaises,
travelling bags, suitcases, hatboxes
used by travellers and fitted toilet
cases in excess of $25 each; purses,
pocketbooks, shopping and hand bags,
IN excess of $3.50 each; portable,
lighting, fixtures, including lamps of
all kinds and lamp shades, in excess
of $25 each.
UmbrellaG, parasols, sunshades in
excess of So, fans on the amount in
excess of 81; house or smoking coats
OF Jackets and bath or lounging robes
IN excess of $3.50 each; mems waist
coats, sold separately from suits, in
excess of $5
Mems and boys hats in excess Of SIS
mems and boys caps in excess of So;
mems women's, misses and boys boots,
shoes, pumps and slippers, not incud-
ing shoes or appliances made to order
for any person having crippled or
deformed foot or ankle, in excess of
$40 a pair; mems and boys neckties
and neckwear in excess of So each; :;
| mems and boys silk stockings or hose
IN excess of ST.; womcns and misses
silk stockings or hose in excess of 50
a pair; mems shirts in excess of SO
each; mems, women's, misses and
boys pajamas, nightgowns and under
wear in excess of $5 each kmonos,
pettlcoats and waists in excess of $15
each
Domestic corporations except life in
surance companies are required to pay
q special excise tax of 81 for each
$1,000 of the amount of their net as
sets in excess of $4,000; every foreign
corporation must pay 81 for each 81 600
Of capital employed in it's United States
business
New-York tribune., 1918-12-24
Must Pay il Member
OF Stock EXCHANGE

Brokers must pay $40, and, if mem
bers of exchanges, shall pay in addi-
ton If the membership is worth from
$4,000 to $4,000, $l00; but if the mem
bershlp is worth more than 5000 they
shall pay additionally $3.50.
Pawnbrokers are taxed 500 ilat and
$100 more if their gross receipts are
from $1,000 to $4,000 and $3.50 more if
in excess of $4,000
Ship brokers must pay $40 and Gus
tom house brokers the same.
Theatres having seating capacity
Of not more than $50 will pay $50;
from $50 to 500, S100; 500 to 800. $3.50;
more than 500, $780, but in communi-
ties of 5000 population or less the tax
shall be one-half the foregoing Cir
cuses are assessed 500, other shows
S15. These taxes do not apply to
chautauquas, lecture lyceums, fairs,
etc, and exhibitions held under the
auspices of religious or charitable as
rooms are to pay $40 for each alley
or table; shooting galleries $40; rid
ing academies, $100.
Passenger automobiles operated for
hire will pay $40 for each car having
seating capacity of two to ten and
$40 for cars having larger capacity.
Manufacturers of tobacco whose
sales do not exceed $4,000 pounds an
nually shall pay Sc; from so, 900 to
100000 pounds, S12; 100000 to 200, 900
pounds, S24; more than 100000 pounds,
$24, and 16 cents per thousand pounds
thereafter
Cigar manufacturers are taxed as
follows: If the annual sales do not
exceed 81, 900 cigars. 81; 10000 to 100,-
600, So; 100000 to 100000, S12; 200, 900
to 100000, $24. If the sales exceed
100000 the manufacturer shall pay $24
and 10 cents per thousand for each
thousand thereafter.
The use of yachts. pleasure boats,
power boats and sailing boats of over
FIVE gross tens and motor boats having
fixed engines and not used Exclusively
for trade, fishing or national defence
or not built according to navy depart
ment plans, shall be taxed 81 for each
foot Of length up to so feet, 50 for
each foot between so and 100. and 81
a foot over 100 feet. Motor boats of
five gross tons or less, having fixed
engines, are taxed $40.
Section 1c0G provides for the taxa
tion of dealers in opium or coca leaves
or any derivatives thereof. Besides
the revenue purpose this section is de
signed to check the spread OF the drug
habit
The documentary stamp taxes are
practically the same as in the present
law. This is true also of stamp taxes
on passage tickets to foreign ports out
side of Canada or Mexico and parcel
post packages when the postage is
more than 25 cents. Playing cards
pay s centa instead of pack.
New-York tribune., 1918-12-24
Normal Tndiriduai
Income Tax

The normal individual income tax is
fixed at 12 per cent of the net income
in excess Of certain credits on such
portion of the net income as is above
81 600 and 6 per cent of such portion
up to $4,000 This corresponds to 4
and 2 per cent under the present law.
The "certain credits" include a specific
exemption of $1,000 of net income in
the case of single persons and $4,000
in the case of married persons, the
same as in the present law, but the
dividing line between the higher and
lower tax is the same, viz, $4,000 for
both classes, whereas the present law
splits at 1000 for single persons ana
S4 600 for married. A husband and
wife living together are entitled to a
combined exemption Of only $1,000. a
further exemption of 5000 is allowed
for each dependent person under eighc
teen or any dependent incapable OF
New-York tribune., 1918-12-24
n0'abte y Departure
rom Present Lu,c

bin &c most notable departure OF the
dt; from the present law is in the ad-
yis;oa y%On OF the war profits taxation pro-
" oh' s' the present law providing more
0, aor the taxation of profits in excess
certain arbitrary deductions. In the
csssSe torn of the bill these two
is ,Ies n OF taxes were alternativc-tha hat
ed we nc application in each case depend-
tsvsa,. vn which would yield the greater
snssisue' snsiisue' 1t was considered chat this
BE- lS'Nc Sa'c, provision for alteration might
The "slo to be unconstitutional, and so
prost"e senate bill simply adds the wa
Of of'1.s ,t clause of taxation at 80 per cent
nroste excess of profits over pre-war
tsrs.;s, TO TWO grades Of excess profits
enca ea'.on ION IN such way that the differ
ths so oee"een the excess profits tax and
to tbbo tbo per cent war profits tax is added
The 'Ie ~ amount the taxpayer pays under
tesnl. l.Vrmer. 1t has the same effect in
The .i ~, as as the House bill, but avoids
elsa "liLernatiye arrangement. The pre-
deter: r,n~a:g.uage OF the bin in regard to
is ei,nlnine eivna rhe va excess profits TAX
fS.Nen further on.
lows senate bill in its final form fol
we House bill in excluding indi-
New-York tribune., 1918-12-24
Pirate Amendments
Don't Al Go Through

Although this was q field day for
wyate amendments a number of them
we're rejected, such as Senator VOL
cott's one for the extension Of the
nunition plant amortization provision
70 plants built before April 6, 1917
nus including those that were put up
10 make munitions for the Allies be-
fore the United States entered the war;
snd Senator Jones' On. NJ amendment
70 provide that land development COM
lanies, such as irrigation concerns,
hould not be taxable on their receipts
until they were sufficient to pay off the
cost of the land to the company, if pur-
chased before March /. 1918. Senator
lmes also failed in his effort to re-
store the taxation of the income from
state and local securities, adopted by
the House but opposed by the Finance
Committee.
Senator Jones. of Washington, hav-
ing made the point that the passenger
transportation tax Of per cent re-
suited in q discrimination against
American and in favor of the Canadian
steamships IN the Alaska trade, rough
amendment was adopted to meet his
contention. in order to give the con-
ference committees an opportunity to
investigate the merits of his position.
Senator Hale, of Maine, got through
IN amendment making it indisputably
PAIN that only pleasure canoes costing
more than S15 shall be taxed. The
senator was afraid that without his
amendment some of his constituents
who use canoes for business purposes
nay be taxed on them
New-York tribune., 1918-12-24
Nasked Men Hold Up
BROOKLYN ShopkeeDer

Three men, wearing handkerchicfs
over their faces, and one of them car
rying revolver, entered the store of
J. c. Bohack, at 1914 Third Avenue.
Brooklyn, last night, backed the man
ager, John Seusman, who was alone in
the place. into corner and rifed the
cash register of ssh
The men rode up to the store in an
automobile. The engine was kept run
nlng while they were inside After
gettlng the money, they backed out Of
nc store, jumped into the machine and
dashed down Third Avenue TO Ninety
fourth Street. turned toward Fifth Ave
nue. and were lost to view.
New-York tribune., 1918-12-24

self support because physically or
mentally detective. In the case of part
ncrsh,ps the individual members shall
oc SUBJECT to the normal tax in their
individual capacity. Other credits nj
lowed under the normal tax arc divi-
dends from corporations paving u net
income tax and interest received from
obliEat'ons of the United States and
inc war Finance Corporation, subject
70 70 restrictions imposed in the acts au-
ttInorizing them in the case of United
Der /, 1917. Nv 'e'"
New-York tribune., 1918-12-24
Special Chapter on
Mutual Insurance

Life insurance and mutual insurance
companies come under a special income
tax chapter. They pay the same rates
on their net incomes as other corpora
tions, but their net income is defined in
manner corresponding to the peculiar
requirements of their business
Payment of taxes is to be made with
certain exceptions, in four instalments;
the first at the time of the return,
March Is. and the others at intervals
of three months.
The "war excess profits combina-
ton tax is made up of three parts for
1918, technically called "brackets," and
two parts or brackets for following
years, as follows, in section 3O1:
(a) FIRST BRACKET
Thirty per centum of the amount of the
net income in of the excess profits
credit determined under Section 312) and
not in excess of 90 per centum of the in
vested capital.
SECOND BRACKET
Sixty per centum of the amount of the
net income in excess of 20 per centum of
the invested capital.
THIRD BRACKET.
The sum. if any. by which 80 per cent
UNI of the amount Of the net income in
excess Of the war profits credit deter
mined under, Section SD exceeds the
O
first and second brackets.
(b) For the taxable year 1919 and each
taxable year thereafter there shall be
levied, collected and paid upon the net in
come of every corporation a tax equal to
the sum of the folowng
FIRST BRACKET.
Twenty per centum Of the amount Of the
net income in excess of the excess profits
credit determined under Section 312) and
not in excess of 20 per centum of the
invested capital.
SECOND BRACKET
Forty per centum of the amount of the
net income in of 20 per centum OF
the invested capital.
(c) In any case where the full amount
of the excess protts credit is not allowed
under the first bracket of subdivision by
reason Of the fact that such credit is in
excess OF % per centum OF the invested
capital, the part not so allowed shall be
deducted from the amount in the second
bracket.
limitation on the war excess prof
its tax is imposed as follows:
"The tax shall in no case be more
than so per centum of the amount of the
net income III excess of So 900 and not in
excess of $4,000, plus 80 per centum of
the amount of the net income i'll excess
OF $50, 900 and the tax imposed by sub
division (b of Section sol shall in no case
be more than 20 per centum of the amount
of the net income in eNcess Of S3 900 and
not in excess of $4,000, plus 40 per
centum Of the amount OF the net income
in excess of $50 600"
Other limitations are as follows:
Any corporation whose net income for
the taxable year is less than SS 900 shall
be exempt from taxation under this title
I'm the case of any corporation engaged
in the mining. OF gold. the portion of the
net income derived from the mining of
gold shall be exempt from the tax inn
posed by this title. and the tax on the
remaining portion of the net income shall.
be computed upon the basis OF IN invested
capital which bears the same ratio to the
full invested .capital auch remaining
New-York tribune., 1918-12-24
Details OF Tar on
Insurance Policies

The tax on insurance policies is a.
follows:
Section 5O3. That there shall be levied,
collected and paid in respect of all poli-
cles (not exempt under subdivision (b)
OF section oOo) tpaternal associa tions)
ISSUE" ny any mutual insurance company,
laX equivalent TO / per csntum Of the
excess OF the gross amount of premiums
cnaf%c' ilncludng reinsurance premiums
charA ,n' under such policies. over the
amount OF premiums paid for reinsurance
return premiums, and premiums on poll
cles not taken, such tax to be paid by the
company issuing the policy.
Section 604. That from and after Janu-
ary !, i9ls. there shall be levied. collected
and paid, in respect of all policies mot
exempt under subdivision (b) of section
oOo) issued by any insurance company
olnsr than mutual insurance company.
the following taxes rson the excess Of the
gross amount of premiums charged lin
cluding reinsurance. premiums charQed)
unaer such policies. over the amount of
premiums paid fox reinsurance return
premiums, prem and Premiums on policies not
taken such tax to be paid by the COM
"a, IN case of policies of casualty in
surance, tax equivalent 20 1la per
centum of such excess
lo) IN the case Of policies of marine
ana inland insurance Except policies cf
insurance upon exports, a tax equivalent
to "a per centum of such excess: Pro-
Vded, That under rules prescribed by the
Commissioner. with the approval of the
Secretary. any marine insurance company
or fire and marine insurance company
may elect to be taxed in respect of all Dol-
cies dncluding policies of insurance upon
eNports) Issued by such company, in which
case the rate shall be 81 per certun
but such election made shall be ad-
hered 10 in subsequent years unless per-
mission to change is given by the Com
missioner,
tc) In the case of all other policies. ,
tax equivalent to q per centum of such
excess.
The title devoted to the tax on adj
missions and dues fixes the theatrical
admission tax ticket tax at cent
in each 10 cents or fraction thereof
the same as at present. such tickets
New-York tribune., 1918-12-24
Sit Billion Rerenuc Bill Passes
Senate With Izth-Hour Amendvo,fs
Continued from page l

s.,,th Dakota, and after lively dc
.V.. sV II prevailed. 33 to 2S. Senator
S,s.rsend. ys of Michigan. then sought
:, ...e the 5 per cent tax OF, automo-
,a.s and motorcycles, but failed. as
-, in his attempt to lift the same
80 an tires. tubes and accessories. In
y. debate Senator McCumber made
.he point that automobiles were more
.,od bv farmers than the vehicles that
rsre eliminated.
New-York tribune., 1918-12-24

sold by ticket brokers shall paw an
additional tax of 10 per cent Of the
whole excess if the additional charge
IS more than so cents a ticket. The
30 per cent tax is also imposed on
theaters or their employees if they shall
sell tickets Mt an advance on regular
prices. Cabarets and the like will pay
the same admission tax as theatres.
70 per cent of the total bill being
taken as the amount of the admission
Club dues arc taxed 10 per cent if they
are moro than $40
New-York tribune., 1918-12-24
Senator Thomas u inS
nm His Pet pleasure

Senator Thomas. 4 member Of the
e;rsncc Committee, who had reserved
!. RIGHT to leave the reservation or
Sc net measure for taxing political
.,n.ributions, succeeded, much 70 the
.,rnrise Of the committee, in winning
=, the floor. His amendment taxes by
40 ner cent all political contributions
:, excess Of $500 and carries rigid
administrative features. which are ex-
,.cted to make evasion almost impos-
,ble The vote on the Thomas amend
rent was as follows:
Affirmative, "a
DEMOCRATS: Ashurst. Beckham
Chamberlain, Henderson. Hitchcock
lohnson. South Dakota Jones, New
Mexico; Kendrick Kirby. Lewis
ycKellar, Myers. Nugent, Overman
phclan, Pollock, Pomerene. Salisbury
sbafroth, Sheppard, Thomas, Tram
nell vardaman, Williams-24.
REPuBLICANS; Borah. Cummns
Gronna, Johnson, California; Kenyon
laFollette Lenroot, McNarv, Nelson
yorris-10.
Negative, %
DEMOCRATS: Bankhead, Gerry
Gore, King, Martin, Kentucky; Martin
Virginia; Simmons, Smith, Georgia;
Smith. Maryland; Swanson-10.
REPUBLICANS: Brandegee, Dilling-
ram, Fernald, France, Hale. Harding
Kellogg, Knox, Lodge, McCumber
Noses, New. Pcnrose, Poindexter
SmoOt Spencer. Sutherland, Warren
New-York tribune., 1918-12-24
Committee accepts
Thomas Amendment

The committee accepted an amend
ment offered by Senator Thomas ex-
empting all life insurance benefits
resulting from policies on the life of
decedent from the scope of the in
heritance tax. The bill had previously
taxed such benefits in excess of S25 900
New-York tribune., 1918-12-24
Persons Quits Red Cross;
Returns TO G.. o. Societ,

WASHINGTON, Dec. 23.-The resig-
nation of ". Frank Persons, of New
York, director general of civilian relief
of the American Red Cross, was an
nounced to-day at headquarters. No
successor has been named.
New-York tribune., 1918-12-24
Senator La Toilette
Oters a Substitute

The substitute bill offered by Sena-
'or La Toilette IN three hour speech
New-York tribune., 1918-12-24
income Taxes COMPARED

ne following table gives a compari
t 80" OF income taxes (ifcluding sur
."N upon specified net taxable incomes
uun9er the existing law and the Senate
New-York tribune., 1918-12-24
Personal Income and
Surf01es Compared

The following table compares the
normal personal income and surtaxes
of the present law, the House bill and
the Senate bill:
Present House Senate
New-York tribune., 1918-12-24
Example of the Workings
OF W. our Excess Profits Tax

The workings of the war excess
profits provisions are shown by the fol-
lowing table prepared by Senator Reed
Smoot, as applied to a corporation hav-
ing capital of 81 100000, net income
Of S1,800,O00 and three shareholders:
Invested capital. 81. 800 10000
Income .-::......: l,soo,OO0.oO
Excess profits specific
Eight per cent credit
of 81 800 900. -. 144 10000
STAT, 100000
First bracket. 20 per
cent .,.,...... $3.50 100000
Less credit ........ 100000
$213,0OO0Oo
At so per cent. ....'...... s63 10000
Second bracket. 81 800 100000
Less 20 per cent. $50 100000
S1,44O00
At 60 per cent. .,........ S64 900 90
1927 800 90
Third bracket 80. $3,o00.0o
War profits credit. 100000
$1S3 100000
$780, 100000
1888 100000
Sl.617, 100000
At 80 per cent 81 ,293 10000
Credit sum Of 1st
and Cd brackets. 927 90
--- S65. 90
Total war excess profits tax 81 1893 600 90
Income Observation-Disclosures S1,S0o 90
Deduct war excess profits tax. ,203 10000
Balance TO company ...... S506, 400 90
Normal corporation tax at 12T.. 60.76S.00
Net to corporation. ........ s445 5000
One-third to each stockholder. $l4S,544.00
Surtax to each stockholder. 49,412.88
500. s.1311o
Leaving s297,393.36, or slightly over
New-York tribune., 1918-12-24
Feso Changes Made
In Stamp Taxes

The present law regarding secone
class matter is so changed as to abol
New-York tribune., 1918-12-24

Il, Is assumed that the recipient of tho
pendents. See text
New-York tribune., 1918-12-24

Leaving s2o7 1886, or slightly over
l6 per cent, in the possession of the
three shareholders out of 81 100000 of
net income.
New-York tribune., 1918-12-24
Table ShoaUng Estimated Reuenue Yields
ind Reductions of Senate Bill

The following table estimated yields for the
bill from the
New-York tribune., 1918-12-24

Mr.. Persons obtained leave Of ab-
sence as director OF the Charity Or
ganizaton Society Of this city, in Feb
ruary, 1917, to assist in the civilian re-
lief work of the American Red Cross.
In April of that year he became di-
rector Of the Red Cross supply service,
and later was made director general of
civilian relief. In that capacity he
visited France last spring to study
The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1918-01-10

as dollars and cents are at the basis
Of every war.
In some quarters here there was
an inclination to believe the first out
bursts Of the German press against
Lloyd Georges speech were govern
ment inspired and that later Germany
will vancouver into some sort of
peace negotiations.
Meantime, Germany's utter dishon-
esty, even with her own people, was
proved clearly today by secret cen
sorship regulations published by the
State Department, showing complete
press control.
Liberal speeches were suppressed;
news of Suspicious fires or disasters
withheld; comment on foreign news
of extreme political significance was
colored to suit German government
purposes; efforts were made to cheer
the tagging spirits of the wearied
Austrians.
One secret circular to the press
held there was a certain amount of
bluff about American war prepara-
tions," but added, "the fact must not
be overlooked that the United States
with the support of its capacity for
material and industrial management
is arming itself for war with great
energy and tenacity."
Germany's food shortage was re-
f1ected in one memorandum saying
Advertisements in which dogflesh
is offered for sale are not allowed
Their acceptance is forbidden"