Martinsburg W Va evening journal. [volume] (Martinsburg, W. Va.) 1913-1920, 1918-07-13
SHOULD GO SLOW
ON ORCHARD TAX
Stewart Says Industry Should
Receive Consideration.

West Virginia orchardists should
not be made to pay an excess pro.
fits tax until the original invest
ment in each instance aihe years OF
waiting for trees 60 mature and
bear fruit, the large sums of money
often borrowed to develop orchards
tc the point of bearing and the debt
contracted during the long develop
a,ent period which covers in many
cases space Of time as great as
IL years. are considered and set off
against the profits which accrue in
the end.
This argumen ~as presented to
the ways ant leans ommittee OF
the house of representatives at
Washington a week ago by James
II. Stewart, state commissioner of
agriculture and Harry W. Miller. of
Paw Paw, appearing for the Eastern
Fruit Growers Association. The
committee had under consideration
the new revenue bill pending in
congress
These points Were brought out:
1t takes an average of II years TO
bring an apple ochards to profit
able bearing period
No Evasion Sought
West aNirginia fruit growers do
not seek to evade the payment of
any just taxes that may be levied
upon them by the federal govern.
metn, but are among those who have
contributed heavily to the prosecu.
ltion OF the war by the purchase of
Liberty bonds and by contributions
to : the several war funds for which
solicitations have been made.
Many orchardists, however, have
contracted heavy Indebtedness with
the agreement to pay when their
Orchards reach the hearing stage.
If the tax to ibe levied is placed on
valuation. the low capitalization
which was fxed by the amount Or
iginally put in. and MOI by the
amount actually Invested then no
part of the excess profits can be
devoted to the payment of debts,
and the orchardist In many cases.
will be driven into bankruptcy.
For these and other reasons stat.
ed to the committee the fruit grew
er should not be made subject to
an extreme excess profits tax. and
a clause should be inserted in the
proposed measure permitting agri.
cultural and horticultural corpora
tons to li1uidate their obligations
incurred within the last FIVE years
before hey become liable to the tax.
Miller Makes stalsement
Mr. Miller introduced to the com
mittee by Mr. Stewart supplemented
the statements OF the commissioner
Of agriculture with ofgures show
ing the status Of the fruit industry
in Yves Virginia and tneighboring
states. In conclusion he said.
Apples require from 10 to "A
years to come UP to profitable bear
ing age. the grower putting the
money and more money into the
plant each year. This. with a rea-
conable sum for interest on the or
iginal investment when the trees
come up to bearing
SHOULD the grower be taxed on
this business, which is an essential
one during the war, to the limit that
Is proposed. he could not liquidate
his long standing Indebtedness, the
banks would lose confidence, and
the grower II not strong financially,
would be forced to abandon a prop
osition which he had spent much
money in developing, and to which
he had devoted some OF the best
and most active years OF his life,
without receiving even his invest
ment in return.
1--WE urge that You allow interests
of this nature an opportunity to
pay off their obligations, or GER
tain percentage of their indebted
ness, before making them liable for
war tax purposes"