The Barre daily times. (Barre, Vt.) 1897-1959, 1920-09-22
GRANITE LUXURY TAX
WOULD HURT BARRE
New Interpretation of Law Passed By
Congress in January, 1919, Woulu
Add 10 Per Cent to Burden
on Granite Statuary.

Add 10 Per Cent to Burden
on Granite Statuary.
A clause in the luxury tax law
| passed in Congress January, 1919, has
recently been interpreted by internal
revenue officers to require luxury tax
upon all granite and all other monu-
mental work, and it is easy to be,
| lieve that granite manufacturers in
Barre are deeply interested in the mat
| ter. Not since the law came into effect
has any tax of 10 per cent been paid by
the manufacturers and should such in
depreciation meet with approval of the
internal revenue department in Wash
ngt6n, D. C., it would mean that 10
per cent OF all the granite value
Shipped from here in 2l months would
be due the government from the man
ufacturers.
The clause in question, section 902,
of internal revenue laws, reads: THAT
there shall be levied, assessed, collect
ed and paid upon sculpture, paintings,
statuary, art porcelains and bronzes,
sold by any person, other than the ar
tist, tax equivalent to 10 per centum
OF the price for which so sold. This sec
tion shall not apply TO the sale OF any
such article TO an educational inststu-
tion or public art museum
Not until this recent Interpretation
came was attention paid to such a
clause, it being assumed that by stat
uary was meant busts or miniature
statues. used for decorative purposes
in churches, homes, etc.
Attorney 5. Hollster Jackson, presi-
dent of the international Monumental
Granite Producers association, left last
night for Washington, d. c., as
a representative of that association
with hopes Of having the order
revoked Sec, Athol r. Bell of the
Granite Manufacturers association ac-
companied Mr. Jackson as a repre-
sentative Of the manufacturers of the
Barre district.
Should the department insist that
the clause applies to granite statuary,
IL viii have very bad effect on the
Barre industry as well as the financial
houses of the city. To some firms it
will mean something more serious as
the past year has been crowded for the
quarters and manufacturers with un
foreseen events. The orders which the
manufacturers took early last winter
and spring were not figured at the in
crease in y freight rates which was
added within the past three weeks and
certainly did not include 10 per cent
margin for governmental assessments.
Wartime shipment conditions pre-
vailed in the granite belt here until two
weeks ago. and then not until freight
rates had been increased. Since the
reopening of the Barre branch of the
Montpelier & Wells River railroad two
weeks ago 250 of the 500 cars needed,
have been supplied here for shipment
of work completed early last fall and
winter During these two weeks the
two railroads running out of Barre
have put in transit tonnage that new
er before has been equalled in the his
forty of Barre in such short time.
The influx of cars continues at a good
rate. yet there are approximately $50
more @eeded to clean the Barre stock
yards.
Thus, one can readily understand the |
of the new Interpretation |
of the luxury tax law to the granite |
Added to this unde-
sirable factor is temporary depres
sion in the granite industry felt |
throughout the country. Retail dealers
in the monumental business have the
same reluctance to place orders as re-
.ailprs of all other merchandise seem
10 have at the present time; they
lear 10 invest in goods when there
seems at hand a sudden drop in prices.
Thi. Is general condition existing
among various industries. more espe-
,iallv the woolen. cotton, leather and
.othinc branches Somr sscribe It to
1olitical y6urces while still others are
ion a noticeable improvement
n business during the next month.
Whatever may be the change. It IS
.crtain that article number 902, is 60.
Nc to plav havoc with the granite bis
ness For instance, if the clause is
anctioned II will mean that the manu-
acturer will suddenly find himself bur
ened with a war tax that viii rise well
nto thousands Of dollars. Boston banks
re not anxious to loan money At six
,er cent in Vermont when seven per
ent is collected in Massachusetts.
then. 90. that added freight rate car
les with il thousands of dollars that
i've no returns. The financial burden
f Barre banks is going to be eNces
i've unless Attorney jackson and Sec.
lell can persuade the department that
ranite manufacturing Is an industry
nd not a source of luxury.
II j. understood that the American
,egion is in favor of revoking the or
or since so many soldiers memorials
yill be affected throughout the country
Where a monument is sold through a
.holesale dealer tax of so per cent.
lstead of 10 per cent, Is collected by
he government. 10 per cent from the
~ per cent from the re
ailer and 10 per cent from the Gus
1mer !
CHARLES MACHiA