The North Platte semi-weekly tribune. (North Platte, Neb.) 1895-1922, October 12, 1917, Image 8
THE SEMI WEEKLY TRIRUNF NORTH PI ATTE NFBRASKA. LEW ST tn FOR Elf MN, HUM Hi CHILD III Excess Profits Revenue at Billioji, and Incomes at Nearly as Much Remain Practically Unchanged by Work of The Conferees. Corporations Will Pay Their Full Share Toward the Financing of the War New System of Graduating the Amount of Assessment Adopted Be lleved to Be the Best That Could Be Devised. Washington. The Joint conferees on tho war re von no hill completed their draft after two weeks of deliberation. As revised by the conferees the measure has been raised from the levy fixed by the senate of $2,-l 10,(170,000 to an aggregate of approximately $2,700, 000,000. Chairman Simmons of the senate finance committee estimated that the Incrense made by the con ferees would approach $270,000,000. Profits lax Modified. The excess war profits tax, as agreed to by the conferees, Is a modification of the semite bill, the principal changes being in the maximum and minimum rates of exemption upon which the tax Is to ba determined. The senate graduated scale of exemp tions ran from 0 to 10 per cent, while the house exemption rate was 8 per cent The conferees adopted the grad uated rate of from 7 to 0 per cent. The definition of capital, which was a point upon which the conferees ar gued for days, was modified so as to provide that the actuul value of tangi ble property paid Into a corporation or partnership or individual business bofore Junuury 1, 1014, shall be taken as of thut date. The proviso as to good will and other Intangible prop erty has been somewhat liberalized. As to "Invested Capital." In calculating war excess profits the terms "Invested capital" of corpora tions and partnerships was declared to include "actunl cash paid In, actual cash value and other tangible prop erty paid for stock or shares ut the tlrao of payment or January 1, 1914, but In no case to exceed the par value of fho original securities; paid In or aumed surplus and undivided profits used or employed in the business, ex clusive of undivided profits earned dur ing the taxable year." The allowance for intangible nssots Includes "actual cash value of patents and copyrights paid in for stock or bares at the time of payment good will trademarks, trade brands, franchises ... If for bone-fldo pay ments not to exceed the cash value." It stipulates that such Intangible assets exchanged for securities before March 8, 1017, not exceeding 20 per cent of the total, shall be Included ut a vulue not exceeding a fair cash value at tho time of purchase. Postal Increases. A flat increase on reading matter of cent per pound until July 1, 1010, and cent thereafter was provided. Advertising matter exceeding 5 per cent of the total space would be taxed from M. to '2 cents additional until July 1, 1010, and from to 4 cents" more until July 1, 1020; and from to 0ft cents to 1021 ami from 1 cent to 0 cents thereafter. An additional tux of cent per pound until July 1, 1010, and y. cent thereafter, on religious, agricultural, frutcrnal and similar publications wus adopted. Tho 1 cent tax on letters, excepting drop letters and postal curds, wus re stored by the conferees. A 1 cent ad ditional tax on postal and private mailing cards was added. The first class mall increases are estimated to raise $00,000,000, and ure effective 30 days ufetr the passage of the act. The senuto provision exempting from post age Icetters wrlttcu by soldiers and sailors abroad was retained. Railroad Tickets Hit The conferees levied 8 per cent In lieu of the semite rate of 5 and the house rate of 10 per cent on passenger transportation, estimated to raise from tho compromise levy abouot $00,000, 000 Instead of $(17,500,000 under tho senate plan. The 11 per cent tax on freight transportation wus retained and the tux on express transportation was Increased so that 1 cent would bo levied on each 20 cents paid Instead of each 20 cents. Tho house 10 per cent tax on Pullman accommdatlous, cut to 5 per cent by tho somite, was restored und Is estimated to raise $5,- 000.000. In lieu of the house 5 per cent tnx 011 stilus of automobiles by uuuiu facturers und tho senate federal license tnx on owners, the conferees adopted 11 3 par cent tax on all motor vehicles, Including trucks, payable by manufacturers, producers and Import rs, Tuxes of 3 per cent of manufactur ers' ales of musical instruments und Jewelry also were written In, with a tax of cent a foot on motion pic ture film. New Inheritance Tax, A new system of gruduutcd lulierl tance taxes was written Into the hill in Ucu of the house plan nnd despite tho Semite's rejection of such taxes. The new rates on Inheritances, with those of Americans In military service exempted, range from one-half of 1 per cent on $50,000 estates to 10 per cent on estates of $10,000,000 and more. The bulk of the Increases of between f 250,000,000. and .Sf.Qll.WO.OOO made, byr TIE UNITED STATES the conferees In the senate bill wns secured from the postage, public utili ties and manufacturing sales section and the new Inheritance taxes. With but few exceptions, the new taxes are effective with the passage of the act. Senate Version Stands. The Income tax section was adopted virtually us 'written by the senate. The new 2 per cent normal tax on Incomes of more than $2,000 for married per sons and $1,000 for single persons Is In addition to the present law exempt ing incomes of less than $.'),000 for sin gle persons and $4,000 for married per sons. Thus those between the new low exemption buses and the present ex emptions will pay only the 2 per cent tax, but single persons having an In come of $:i,000 or mdre and married persons whose Income Is $4,000 or more would pay the full 4 per cent normal tax. Tho senate Income provision allow ing an additional exemption of $200 for each dependent child to heads of families subject to the present law was retained. The exemption for children, however, does not apply to those sub ject to the new reduced taxes with the $2,000 und $1,000 exemptions, respec tively, for married and single per sons. Surtax Is Agreed Upon. Surtaxes were agreed upon as fol lows: Ono per cent on Income over $5,000 nnd less than $7,500; 2 per cent be tween $7,500 and $10,000; 3 per cent between $10,000 and $12,500 ; 4 percent between $12,500 and $15,000; 5 per cont between $15,000 and $20,000; 7 per cent between $20,000 and $40,000; 10 per 18 tier cent between $80,000 nnd $100, pcr cent between $00,000 and $80,000; 18 per cent betweno $SO,000 and $100, 000 ; 22 per cent between $100,000 and $150,000 ; 25 per cent between $150,000 and $200,000; 30 per cent between $200,000 and $200,000; 34 per cent be tween $250,000 and $300,000 ; 37 per cent between $300,000 and $500,000; 40 per cent between $500,000 and $750, 000 ; 45 per cent between $750,000 and $1,000,000, and 50 per cent on Incomes oxceedlng $1,000,000. Increased Tax on Whisky. Increased sennte rates on whisky ..... ocer were vinun .y reui.nci , urn. ... .1 ...ul uu somewmu reuueeu. x..o tnx on distilled spirits was made $2.10 purgation when for beverage use and $1 less for Industrial purposes, esti mated to raise $135,000,000. Tho amendment prohibiting Importation of distilled spirits for beverago use was retained. Floor taxes to reach with drawn liquors wore approved. Beer was taxed $1.50 per barrel additional, to raise $10,000,000, an Increase of 25 cents per barrel over tho house rate. Present wine taxes were doubled. Taxes on n nonalcoholic beverages promised. On prepared were com i., i .. ,.. .......... ...... uvi mi,- uvn h..i....- ated from 5 to 20 cents Instead of from 3 to 12 cents a gallon were adopted. Grape Juice and other soft drinks are taxed 1 cent per gallon, ns provided by the senate In reducing the original 2-cent rate of the house. Scnute rates on cigars and cigarettes were retained, but those on snuff were Increased from -1 cents to 5 cents a pound. Stamp Taxes Fixed. Stamp taxes agreed upon aro: Bonds of Indebtedness, 5 cents on eoch $100. Indemnity und surety bonds, 50 cents. Parcel post packages, 1 cent for euch 25 cents of the cost of transpor tation. Capltnl stock, original issuus, 5 cents per $100. Hales and transfers, 2 cents per $100. Sales of produce on oxchungo. 2 cents for ouch $100 value In merchan dise. Drafts, checks pnynblu other than n sight or demand, promissory notes. except Dank notes for circulation, ami renewals, 2 cents for all sums below $100 and 2 cents for each additional $100 or fraction thereof. Conveyance patters, 50 cents be tween $100 and $500 and 50 cents for each additional $500. Customs house ontrles, from 25 cents to $1; entry for withdrawal from bonded warehouses, 50 cents. Passenger vessel tickets for ports other thnn those in tho United States, Canada und Mexico, between $10 and $30. $1 ; between $30 and $00, $3, und above $00, $5. Voting proxies, 10 cents. Power of attorney, 25 cents. Playing cards, decks of not more than 54 cards, an uddltlonal 5 cents on the present rates. Taxes on life Insurance, eliminated from the house bill In the senate, were amended and reinserted, raising nbout $5,000,000. Effective November 1 the new taxes on new Insurance pol- uies issued are 8 cents ner S10O or jlraoilon (hereof on life Insurauce and New War Tax Levies as Made by Senate and House Washington. Tho war revenue bill, ns finally agreed on by tho house and senate conferees provides for the rais ing of approximately $2,000,320,000, as follows: Income tax $ 842,000,000 Excess profits tax 1,110,000,000 Distilled spirits 135,000.000 Rectified spirits 5,000.000 Fermented liquors 40.000,000 Wines, etc 10,000.000 Soft drinks, sirups, etc... 14,000,000 Cigars 10,000,000 Cigarettes 20,000,000 Tobacco .... 25,000.000 Snuff 1,500,000 Cigarette papers 200.000 Freight transportation... 77,500.000 Express and parcel post. 16.000.000 Passenger transportation 56,000,000 Pipe lines 4,500,000 Seats and berth 2,250,000 Telegraph and telephone messages 7,000,000 Insurance policies (new) 5,000,000 Automobiles (snle of).. 40,000,000 Musical Instruments (sale of) 4,300.000 Motion picture films 3,000,000 Jewelry (sale by manu facturer) 4,500,000 Sporting goods 1,200,000 Pleasure boats 500,000 Perfumes and cosmetics 1,900,000 Proprietary medicines .. 3,000,000 Cameras 750,000 Admissions 50,000,000 Club dues 1,200,000 Schedule A, Including playing cards 30,000,000 War estate tax 5,000,000 Virgin Island products.. 20,000 First class mall matter.. 60,000,000 Second class mall matter 14,000,000 Total , .$2,606,320,000 1 cent per $1 on the premium chnrged on marine, casualty, lire and Inland Insurances. Amusement taxes agreed upon pro vide that all persons entering places of amusement free, except employees nnd ofllclals on duty and children tin der twelve, would pay n tax rate of 1 cent on each 10 cents or fraction thereof of the ndn.sslon charge. This tax nlso would apply to cabarets and similar performances where the cost of entertainment Is Included In other costs, such as service. Holders of an nual box seats would pay 10 per cent of the annual rcntnl. Nickel theaters and shows, rides and other outdoor park amusements with a maximum ad- mission of 10 cents and benefit enter- talnments nnd agricultural fairs were exempted. After November 1. 1017, members of nll clubs, except fraternal orders, pay Ing more than $12 annual dues would be subject to n 10 per cent tux. Exemptions Are Allowed. On excess profits the conferees agreed upon a minimum deduction of 7 per cent and n maximum of 10 per cent. Instead of the 0 to 10 per cent fixed by the senate. Other exemp- tlons are $3,000 for corporations and Sfl.OOO for lndlvidauls. Corporations. ' - ' partnerships and Individuals having no cnpltiil stock would pay a Hat rata of 8 per cent on net prollts in excess of $3,000 for corporations nnu $u.uuu for Individuals and partnerships. Miscellaneous Income tax amend- ments Inserted by the senate were generally adopted, Including the so- called Jones amendment tor a tax oi 10 per cent on corporations' hulls trlbuted surplus, without allowance for Income taxes paid. Tho 10 per cent tax would not apply to undls trlbuted Income actually Invested or cmplovlM, ln ll8lncss or lnvest)!tl ,n fJ'y ,, llftor Sontomhur 1 . J 7 ' : iKjT. una o tier cent nemuty tor sur plus retained but not employed Is pro vided. In making provision for admlnlstnv tlon and collection of tho new and existing taxes tno conrerees proviueu that the lie speclnl tax of 12 per cent on war munitions manufactures shull bo reduced to 10 per cent, but re tained to January 1, 1018. It now yields about $29,000,000 annually irnd the senate had proposed Us repeal. GARFIELD FIXES COAL PRICES Fuel Administrator Announces Final Declslon, Which Will Be Bind- , Ing on All Dealers. Washington. 1 uel Administrator Garfield announced regulations, effec tlve at'once, for tho limitation of the retail prices of bituminous and an- tliraclte coal throughout the country Tho fuel administration has fixed, In tho conclusions arrived at, not tho speclllc price which the I'etnll dealer will he allowed to charge the con sumer, out uie grot ..uirjt... wiim the retail detuor will no anoweo 10 am. to tne average wnmesaie cost oc ... COlll In llUlklng retail prices. Tho retail dealer will be allowed to son com 10 me consumer ui .1 pr.wu representing an advance 01 ..m m'u thnn 30 per cent over the retail gross margin of 1015. In no case, howuver. Is the gross margin from now on to exceed the gross margin of July, 1017. If, tor example, a rei n. ton. ueu.ui llOUgllt 11 pariicuiar kiwi 01 cum .. l.l-.l I I.. 1015 ut an averugo of $2 a ton and sold It to the consumer nt $3 a ton, his gross margin was $1. Dr. Garllold now allows I1I111 to udd 30 per cent to this amount, making his gross margin for 1017 $1.30, provided that Is not in excess of his gross margin In July last If tho retail dealer now pays an av eruge of $3 for tho Biune kind of coal ho will be allowed to sell It to tho con- tho speech of Count Czernln, Austro sinner for not more than $1.30 a ton. Hungarian minister of foreign affairs. Doctor Garfield selected 1015 as normal coal production year. I -Olllclal photograph from the west front showing Uerman shells bursting near one of the British forward bat teries. 2 Society women of Now York advertising the Liberty lonn In the lower part of the city, one of their listen ers being tho Italian woman who has three sons at the front. The women are Mrs. James F. Curtis and Mrs. William A Burton. 3 Viscount Ishll nnd other members of the Japanese mission reviewing the West Point endets. NEWS REVIEW OF THE PAST WEEK British Again Smash Germans East of Ypres and Capture Important Positions. ENEMY'S MORALE IS BREAKING Austria's Warning to the Allies Re peated Air Raids on London Final ly Determine England on Re prisals America's War Tax Bill Now Law. By EDWARD W. PICKARD. Field Marshal Halg began his week fnrwnrd movement as usual on rjhursduy, tj,e miVanco being again In tJl0 strld east of Ypres on a lino .,mt serIougiy threatens Prince Bup- fccllt.8 communications with Ostend ind zeobrugge. This salient of the BrlUsh front ,ms bccn glvlng thc Ger- nnns m,lch nnx(oty, m,d all tho lirst part of Ul0 week they dlrectec nt it furious though futile attacks that proved very costly. By gllturduv tno British offensive ,md developed into one of the most nretentlous vet undertaken nnd nrom- god to resuit iu a victory unequnllcd slnce tlc unttu of the Mariie. On a nlno-mlle front Hale's troons rushed , i , ,ii n,i n imlf IIJIWULU 1UI UI'UUl ik .....v. lVA . and lncd pnHSessIon 0f many Ger- , Hfrnn.,nl.ls. including the ridge notwocn Pnsschendaele and Zonne- ,.,. rjro,,t numbers of Germans urrondcred ,rim , ,i011,tiess hone to cut In xlUvccu tne submarine bases anil the mnln aenniin annyi i,ut according to ,..f w,ii.ifnrmed nrmv men. It Is not their Intention to force tho Germans back over any very wide sreu. because the territory they would be forced to abandon would first bo de- ........ Itather do the allies plan to ; , .y th 0 con In 3e,U0"lIlZ Ul?nZ ' . " ?,.n " n uous nouiimruuieiii uy Kun uu vim y guns bers to which they have been sub- lectlnir them of late, and most of Halg's advances are made for the pur pose of gaining possession of com manding positions, from which this ,nrHfl(. mmnr nmv ho directed. That ,,., ()f tho ( the morale of tho German soldiers al ready Is beginning to break down Is evidenced by tneir readiness to surren der nnd the complaints of some divi sions when ordered hnck to the front after 11 rest. Germans Short of Shells. Iteports from the front during tho artillery duel that preceded the Thurs- day advance wore that the British llred twenty or more shells for every ono that en m n from the Germnns. The nl- , , . immlt(ms ia Il0w unllm- ,t0, 1 't, , , rtllS0U to bc. n ' thnt' tho f;oriimns nro running sllflH (lf Hh1Is Bllll mvInir t)art. short of shells and guns, owing part ly to reduced productivity caused by tho poor food of the workmen, and partly to a shortage of certain metals. Tho denial of General Schuech, tho kaiser's new minister of munitions, Umt tlun, ,s uny 8Uch 9ilortKe. Is not convlnclB. Copenhagen dispatches londers of German labor rrnuno won. 11im1 in mnln nrmv bond. ,H ,.., . ..... . roip. iXimta Von iiU(icnburg's birthday, as vvas Intimated, hut to discuss plans for speeding up tho production of muni tions. Probnbly It was necessary, also, to take steps to appease the workmen of Essen and their wives, who held a Pintnii mntln,r riwntlv ilnnmnillni? , , tt f .....v...r. r. In Frankfort, too, an Immense peace meeting wns held on Sunday, but that was engineered by political groups, and thercforo may not havo been so Indlcntlvo of the sentiment of the peo pie. Czernln Warns the Allies, In the way of peace movements, tho most Important event of the week was n n which he threatened thnt unless the illles speedily consented to a peace without annexations or Indemnities, Austria-Hungary would revise Its pro jram and demand compensation for further costs of war. He said his country hnd proved that It was per fectly sound and could not be over thrown by force of arms, nnd conse quently was In position simultaneously with its nines to lay aside arms and trla-IIungary certainly seems Just now to be more united against the Idea of a separate peace, despite the feeling of the Croats nnd other of Its peoples, and foreign correspondents wnrn the United States that neither Bulgaria nor Turkey Is likely to separate Itself from Germany; they must be whipped together or not at all. Count Czernln's bold words are scarcely supported by the develop ments on the Austro-Itallan front, for though tho Austrlnns have been hang ing on desperately to tho edge of the Bnlnslzzl plntenu nnd mnklng repeated attacks to recover lost ground, .the Italians hnve not yielded an Inch. rhcro were Indications that Cadornn was nbcut ready for n renewal of his offensive, and that the enemy expect this wns shown by the rushing west ward of large numbers of Austrian nnd OOrman troops from Bukowlna and Roumnnln. Kerensky Plan Voted Down. If only ltussia were in condition to take advantnge of this troop move ment, It might accomplish much. But Itussln Is still struggling with Its in ternal affairs, and only In the Itiga sector are Its soldiers showing any disposition to fight. Up there they pushed the Germans back in several nlneps. Meanwhile. PremlorKorenskv . . Is having desperate trouble In estab lishing u firm government. He ap peared before tho democratic congress and used very plain, even defiant lan guage, which at first had Its effect ln a vote approving a coalition cabinet. But next dny the Bolsheviklsts and other extremists gained control of the gathering and voted down the plan To add to tho perplexities of the pro visional government, a serious revolt broke out In Turkestan. Tho allies are following the lead of America ln cutting off supplies from Sweden, Norwny, Denmark and IIol land, tho action determined on being not Joint but uniform. Last week Great Britain extended the principle heretofore followed by prohibiting the unlicensed exportation to those coun tries of nil articles except printed mat tor and personal effects. Air Raids to Bring Reprisals? Repeatedly Inst week the German air lleets raided London and tho towns and countryside of Kent and Essex, Flock nfter flock f grcnt airplanes flew across and dropped their loads of bombs, killing n few civilians and do ing some dnmifge to property. Not many of the dendly missiles fell on London, for tho nntl-nlrcraft guns put up a barrage fire that ringed the city. These raids roused the people and press of England to renewed demnnds for reprisals, and the government to l jendy at last to yield to the demand, for Premier Lloyd-Georgo said to a crowd of poor people In the southwest district of London who clamored for revengo: "We will give It all back to them, and we will give It to them soon. We shall bomb Germany with compound Interest." The Ger mans themselves are expecting re prisals and aro removing to places of safety the nrt treasures of cities that are believed to bo within reach of the British airmen. Tho French, less squenmlsh thnn the British have been, made reprisal raids on it number of towns Inst week, In eluding Stuttgart, Baden. Frankfort nnd Coblenz. This wns In return for the bombing of Dunkirk nnd Bnr-le Due. Though some of the places at tacked by the French aviators are open towns, thc Immediate objectives of the raids were military establish Thi. nrltlsh merchant vessels sunk bv submarines were fewer than In any inn. 1 ii nnpnlne of iinrpstricted fT.imnt wnrfm-A. Imt ninonir tho vie tlms of the submersibles wus the nriilsh cruiser Drake, which was tor- pedoed oft the Irish coast and sunk In shnllow water. One otllcer nnd 18 men were killed by the explosion. Another romantic story of sea war fnre comes from Samoa in thc ex ploits of the crew of the Gormnn com merce raider Seemlier, after their vessel stranded on a South Pacific island. The master and six others put to sea ln a motor sloop armed nniL provisioned, and the others seized u French schooner, equipped It with gun nnd bombs and started out again. Since thnt time they have been prey ing on merchant vessels. Curbing the German Press. The trading with the enemy act: went into effect Tuesday and almost Immediately Postmaster Burleson burred from the mulls thc Mllwnukeo- Leader, former Congressman Bergcr's paper, for seditious and treasonubloat utterances. Many other publication have been cited by the post ofllce de partment to show cause 'why they should not be suppressed, among these being the Illinois Staats-Zcltung. On Thursday federal agents raided the ofllce of the New Jersey Ficlo Zeltung In Newark and arrested Its two proprietors and three editors on charges of publishing seditious and treasonable articles. In connection with tho trial ln Paris. of Bolo Pashu, alleged spy, It is re vealed that Bolo, who was ln the- Unlted States for a few weeks early last year, arranged the transfer of at least $1,G00,000 of German money through New York bunking houses to Paris to further the peace propaganda ln France. It Is ofllclally stated that there Is no doubt of Count von Bern storff's complicity ln the Intrigue. More than one-half of tho 1G0 I. V. W. leaders who were Indicted have been arrested and tho government la ready to put them on trlnl. War Tax Bill Signed. President Wilson signed the war tax;- blll Wednesdny, and most of Its sec tions became operative at once auto matically. Itlevles for this year moro than $2,500,000,000 new taxes for war purposes and ln one way or another calls for money from everybody In the country. The two largest sources of revenue will be excess profits, $1, 000,000,000, and Individual and corpor ate Incomes, $851,000,000. rite soldiers' and sailors' Insurance bill, which was passed by the senate,, carries un amendment promoting Ma-. Jor General Pershing and Major Gen eral Bliss to the rank of general and making all commanders of army corps lieutenant generals. The bill to re patriate nil Americans who havo joined tho allied military forces also was sent to tho president for his slg. nature. The shipping hoard gave out a state ment last week showing that a large. number of vessels ure being built and within a few weeks the concrete re sults of the board's energetic worlc will begin to slide down thc wuys in. many shipyards. The aircraft build ing program also Is well under way, Secretary Baker stating that 20,000. airplanes and their motors are now under construction. Liberty Loan Going Well. "nut bocrcw r the 'competent leadership of Secretary of the Treasury McAdoo,. tho campaign for the sale of the sec ond Liberty loan, of $3,000,000,000,, started off with a rush, and the cn. thuslnsiu and determination of the peo plo made the success of the lonn un. doubted. There was Just one black spot In all the country the action o( Mrs. II. O. Ilnvemeyer of New York and other ofllclals of the National Woman's party In ndvlslng women not to assist the loan because they hava not been given nntlonal suffrage. Tha Maryland suffragists camo back al them with a scathing denunciation, de claring thnt they hud descended to political bribery, had disgraced tho name of woman and were "mnd sister of La Follette." The sennto has been flooded wltlt petitions from all parts of tin land, from organizations and Individuals, asking thnt Senator La Follette be ex Pelled for his dlsloynlty and mnny oi the petitioners suggest much severei punishment than mere expulsion, ai - Urst the sennte committee on prlvi lieges and elections was dlsclncllne to take any action at this session, bul tho universal demnnd evidently hail Its effect for on Wednesday the com. mlttee began consideration of the peth - tlons. V