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14
The Commoner.
VOLUME 13, NUMBER 20
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to bo taxod uridor tho bill? That is
my understanding.
Mr. Hull. That la substantially
as It is. Now, Mr. Chairman
Mr. Phelan. Is thoro any pro
vision in tho caso of life insuranco
companies whereby what is directly
an overcharge shall not bo taxed
whon it is returned to tho policy
holdor?
Mr. Hull. I will say to the gontle
man of courso it is utterly impos
sible to writo provisions in a general
law that would specifically apply and
govern every phase of the hundreds
,Jff of thousands of different kinds of
I business transactions in tho country.
I would say, howovor, that companies
havo boon paying dividends, accord
ing to their own admission, out of
actual profits, in sums far greater
than any kind of premium savings.
If tho companies persist in mixing
tho smaller amount of premium sav
ings in thoso undisputed profits, then
no distinction is mado.
Mr. Phelan. That is what I meant
Thoro is nothing which would pre
vent a life Insuranco company from
figuring what is strictly an over
charge whon thoy mado thoir
premium, and deducting that, and
not including that in their entiro not
earnings. Thero is nothing to pro
hibit that in this bill?
Mr. Hull. Well, to tho extent that
excess of premiums are collected and
blended with profits, tho same rule
would apply as to tax.
Mr. Rogers. May I ask tho
gentleman a question?
Mr. Hull. Yes.
Mr. Rogers. If I understand tho
provision of paragraph B, on page
134, correctly, it defines that income
as including gains, profits, and in
comes, among other things, from
sales and dealings in property. Now
supposo a man should buy 100
shares in ono company and 100
shares in another company, and at
tho end of tho fiscal year ho should
find ono of that block had gono up
20 points and tho other had gone
down 20 points, do I understand ho
would havo to pay on tho profit he
had mado without receiving any
benefit on tho loss ho had sustained?
Mr. Hull. Whore he is conducting
two separate businesses, or where
ho is conducting ono business con
sisting of different branches, ho
- i
TEXAS LAND
BIG BARGAIN in Choice. 30 Acre
Tract near thriving City of Houston
FOR SALE 30 acres of tho most desirable and best located land in
tho rich farming tract near Houston, Texas, known as Allison
Richoy Suburban Gardens. This land is within a few blocks of the
railway station, Almeda a suburb of Houston and will bo sold at
a reasouablo price, or will trade for good Nebraska farm land or
city property. Writo at once for further particulars to
Department B, Commoner Office, Lincoln, Nebraska
Handy Sewing Awl
A Perfect Device for Sewing Any Heavy Material
..iWiUi fi118!1.70? can mcnrt fcnrncss, allocs, tents, nwnlncs nn.l
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uitcnscM, or any heavy mntcrlul. -nit.iM, tmuaica,
HvnTn? SwK SyVf0111 l3,tno 12Lt0St Invention and tho most eftec-
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any and all kinds of repair work, oven In tho hands of tho most unskilled.
Tho SPEDOY ST1TCHR11 Is provided With a sot of diamond nnlntort
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fs an entirely now Invention. It also contains a largo bob&nSSm which
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way. This Awl has a tension which enables you to tighten your Btltch
and it can bo used with or without tho bobbin, which saves rVfllling the
bobbin when you havo a lot of work to do. Those valuable featured yoS
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earyC?n otrhSmakc03.b0bbin r t,Bhten th "o li ohu aWs nScSE
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A Limited Special Offer
tlon to Tho Commoner and Tho American Homestead VtlS ? nnnifinSs5rlp"
and household monthly) and wo will send L ?ou i ono of thoaS$nl Ani?
rontlo Sewln Awls without additional cost and prepaid Rnmntt
both papers ono full year and tho Awl for only 81 is Tim mSh''
Address, THE COMMONER, Lincoln, Nebraska
would deduct from his aggregate
profits the losses that were incident
to the business out of which the
profits grew.
Mr. Rogers. Here, for example,
wo havo a man investing in the
securities of two entirely distinct
companies, one of which goes up in
valuo and the other goes down. I
can not read in tho law anything that
takes care of the man and gives him
a set-off on the securities on which
ho has been at a disadvantage.
Mr. Hull. I sought to explain
that situation briefly a while ago.
Of courso it is impossible to take
up all tho different and countless
illustrations that any gentleman,
might suggest and dispose of them
in short order. But I undertook to
say that the losses and the expenses
that are ordinarily considered relate
to those growing out of the particu
lar business which secures to the
individual his income, or from which
his income is derived. Of course any
loss foreign to that, or any expense
entirely different from that, would
not be considered as a part of his
trading loss.
Mr. Rogers. Does the gentleman
think that in the case I have put
there would be an allowance for the
deficit which the individual had sus
tained in the less fortunate security?
Mr. Hull. The gentleman .means
in case of a broker who invests, or
Just an individual not regularly in
tho business?
Mr. Rogers. No. Suppose the
gentleman or myself or anybody
should invest in 100 shares of one
security and in 100 shares of another
security and one goes up and the
other goes down. Under the act, un
questionably, other things being suffi
ciently high, he has to pay an in
come tax on the fortunate security.
Mr. Hull. Yes; if he is simply
making a casual investment of that
kind now and then, or here and
there, I think he would report his
gains for taxable purposes, and prob
ably would not be allowed for his
loss, for it would not be a trade loss.
Mr. Rogers. That might, of course,
bo a very Important matter for a
man who was dninc n rmn,i i
buying and selling in the stock mar
ket in a perfectly proper way, not as
an operator or speculator, but as a
man who buys when an opportunity
presents and sells when he sees an
other opportunity.
Mr. Hull. The question would
arise whether he is making that a
business. There are ample adjudi
cat ons as to all these kinds of trans
actions, which will make it easy I
think, for the secretary of the treas-
U,ryi J m? th0 -taxpayers ac
quainted with their exact applica
tion and relation to the tax.
Mr. Mann. Annfboi. ,,,. .
curs to me right there, if the gentle
man will permit. Perhap! the
gentleman can answer. I do not criti
cise Mm if he can not. Suppose a
man. bought a piece of property some
ftGadruX f?Ma Sma11 price and se"s
It during this year after this bill
this bill takes effect. Does he have
to account for the entire profits as
income based upon the original cost
although the property last year may
ua?orbteheiS " niM
Mr. Hull. Of course that raises a
Th7iaid flGld f C0idera8tel0n
?. la73 l;avo been construed here
tofore to the effect that the taxn-iW
Is expected to rahim , '" l-xpa.yer
accrued to him dur ms ti in i tnat
year or the taxablear Sfitsn
the sales of property which was dw
chased in connection with the E
ness which a man is carrying on from
year to year would be reported ?
taxation for the year of thX awrnS
such as any regular trade or bS'
year. As t&J 0a!
cases, such n tim o-n
gests, apart from that class that t
have described, sometimes each ono
might depend upon its own state of
facts. But at any rate the entire
profits that accrue during the yeir
in connection with trade or com
merco or business regularly carried
on from year to year, no matter when
the property was purchased, would
be reported.
Mr. Mann. The gentleman can
readily see that that question is cer
tain to arise in many cases.
Mr. Hull. Yes. I may say to tho
gentleman that at present, as the
corporation-tax laws are enforced, if
PSV ?A1D " Rlvcs quick
relief nnd Knnn rnmnvna nit o,iii:
niltl FllOrtlirpnlh. TrlnHwintm.n iij."5
Dr. H. H. Greens Sons, Box N, Atlanta, Ga.
The Best in
White Runners
havo for tho past threo years been pro
duced by us. Tho Winners at most all
tho leading shows for tho past threo
years havo como direct or Indirectly
from our yards. Our ducks linvc won
the lending prizes nt New York,
HngerHlown, Knoxvlllc, Grcnt Appaln
chln Exposition, Indianapolis, Etc. If
you want the BEST in White Runners,
write us please.
EGGS $8 per 12?
$15 per 30; $40 per 100
Mrs. U. R. Fishel
. BOX H. HOPE, IND.
COfllPULSORY INVESTMENTS
A bill was introduced at the last
session of the Nebraska legislature to
require outside life insurance com
panies to invest in Nebraska securi
ties 75 per cent of the reserve on
policies held by Nebraska people.
While it did not pass, it had many
supporters.
In reality there is a simpler and
easier method of reaching the samo
result, viz: For Nebraskans to buy
their life insurance in Nebraska com
panies. If interested, call or write
TEie Midwest Lifa
N. Z. SHELL, President
A NEBRASKA COMPANY
First National Bank Building' Lincoln, Neb
Subscribers' ffliwrtisiitfl Depr.
This department Is for tho benefit of
Commoner subscribers, and a special
rate of six cents a word per Insertion
tho lowest rate has been made for
them. Address all communications to
Tho Commoner, Lincoln, Nebraska.
TEXAS SCHOOL LANDS $1.50 to
$5.00 an aero; one-fortieth down,
balance forty years. Information and
Texas map free. Journal Pub. Co,
Houston, Texas.
1VTEN AND WOMEN make big money
1V1 soiling our household specialties;
write today. Household Specialty Co.,
Grafton, Pa.
FINEST Irrigable fruit, alfalfa, grain
lands, Pecoo Valley; first premium
World's Pair; low rate excursion from
Kansas City via PL Worth, June 3 and
17. Writo P. H. Goodloo, Pt. Worth,
Texas.
DEE OWNERS Kill tho moths In
? your bee hives in ten hours; healthy
for bees and kills all moths; formula
n.nrl -full iinn.i . ir 1 flO.
J. R. Roevoa, Storrott, Ellis Co., Texas.
ALFALFA, $6; sweet clovor, 1U
frcano, millet, timothy, $1.50; plff.
?11; cholera serum, 2 cents. Farms for
salo and rent on crop payments. John
'".uiimn, DiUUA lliy( 111,
yANTED To know tho whoreabouts
VJ of Hugh Blanoy, last heard of
about ten years ago. Ho was then
guard in the fctato prison in Nebraska.
Information will bo thankfully received
by his brother, William Blanoy,
Killynough, Bollymena, County Antrim,
Ireland.
n.
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