The Tribune from Scranton, Pennsylvania • Page 7

THE SCRANTON REPUBLICAN, SATURDAY, FEBRUARY 22; 1930 7' SIDE GLANCES By George Clark CLELAND SIMPSON CO Taxation of Anthracite Reviewed by Stevenson Taylor Sunday Services In Local Churches some unknown manner on Thursday evening. It was first reported that St. John Slovak church In that vicinity was on Are. Both Taylor No. 1 end Century No.

2 Hose and Engine companies responded and soon succeeded in extinguishing the blaze. Miss Edith Jones, Church street, a teacher of the borough school, is ill at her home. LEADERSHIP At Riviera Special Sale At Taylor Gown Shoppe, Saturday, Monday and Tuesday. New Spring Dresses, Very special values at $8.80. Adv.

Reveals That First Law Placing an Impost on Hard Coal Was Enacted By State Legislature May 1, 1868 TAYLOR, Feb. 21. Services in local churches on Sunday will be as follows: Congergational church: Services at 10:30 a. m. and 6 p.

school, 11:45 a. the pastor, the Rev. W. J. Hill, will preach at the morning services on "Are There Any Unanswered Prayers?" In the evening, due regard will be paid to the birthday of Washington and the pastor announces that his theme will be "The Greatest of All Con guests." Methodist Episcopal, the Rev.

H. M. Kelly will preach at 10:30 o'clock and 7 o'clock. Sunday school, 11:45 a. m.

St. Pauls Evangelical, the Rev. P. W. Meisenheimer will officiate at both services, German at 9:30 a.

English at 6:30 p. m. Sunday school, 10:45 a. m. Welsh Baptist, Rev.

Eleaner Davies will preach at 10:30 and 6 p. m. Sunday school, 11:30 a. m. The Rev.

H. F. Fuller, pastor, will preach in the Calvary Baptist church This Is the ninth installment of "The History of Anthracite in Pennsylvania" written especially for The Scranton Republican by George E. Stevenson, well known mining engi nesr Editor's Note. Ford Car Makes Long Run With Spokes Cut A Ford wire wheel, almost destroyed by fire and further mutilated by the cutting of half its spokes, recently triumphed in a drastic two hour test run of fifty four miles, half of which was over rough country.

The welded wheel was about all that remained intact of a Ford car and garage after a fifty gallon gasoline drum exploded. The terrific heat ruined the temper of the wheel and warped the rim. Lance Walsh, who conducted the test, further mutilated and weakened it by filing through half of its spokes. What was left of it was fitted to the rear driving side of a new Ford and in tlfat condition was driven from Durban to Maritzburg, South Africa, a distance of fifty four miles, in two hours and five minutes. GEORGE E.

STEVENSON Taxation of coal land by the foot acre method is bad enough, but it is made very much worse in the anthracite recion of Penn Novelty jewelry sylvania by the efforts of the enthusiasts for Bene Daniels and Lloyd Hughes in "Love Comes Along," coming to the at llKJU a. m. ana p. ut.t school, 11:45 a. m.

Church of Immaculate Conception, the Rev. James A. Boland will celebrate masses at 8 and 10 a. m. Primitive Methodist, the Rev.

S. R. Nichols will preach at 10:30 a. m. and' 6:30 p.

m. Sunday schol, 11:45 Riviera theater next week. 1 00 tion owned upwards of two dozen sep' arate collieries twenty or more years Martin Kennedy Buried The funeral of Martin Kennedy, No. 11 Piatt place, was held yesterday morning with a requiem mass in St. Peter's cathedral.

The Rev. Father Rafferty was in charge. Burial was in the Cathedral cemetery. The pallbearers were: John, Daniel and Tim ago with an annual production ca Dacitv. if worked full time, of more surface protection to secure legislation taxing the owner of the anthracite again at the pit mouth after it is mined out.

The first efforts of the surface protection advocates were to have all or a portion of than tsn million tons. This tonnage Church of God, the Rev. T. W. Ramsey will officiate at 11 a.

m. and 7:30 p. m. Sunday school10 a. m.

St. Johns Slovak, the Rev. Edward A. Ballas will celebrate masses at 8 and 10 a. m.

St. Marys Greek, the Rev. Nicholas Burik will celebrate masses at 8 and 10 a. m. othy, Moran, John Hennigan.

Luke Jewelry is an important fashion accessory that requires careful consideration. We have the loveliest pieces of jewelry that can be matched in to attractive sets earrings, brooches, pendants, beads and rings. In new pastel shaded stones sunbeams rose, neptune blue, chrysoprase, onyx and jade. Globe Main Floor O'Maliey, and Harold Bradigan. RELEASED UNDER BAIL Judge Will Leach yesterday held Edward Novak.

Maple street, Old Forge, under $1,000 bail on charges of robbery. Novak was committed to the county Jail recently by Justice of the Peace Tony Tedesco. 1930 N6 SEiCf INC Rec? 0.PAT OfF, Missionary Units Meet in Taylor "Gosh, I was a sap to hock my overcoat so soon." dress, Miss Stella Ragon, returned missionary from Burma; hymn. was never producd in any year because a market could not be found for it. The substitution of the wet for the dry method of preparation to meet the demands of the consumer for cleaner and better prepared anthracite, compelled this corporation to make a similar change.

In doing so, it decided to concentrate its colliery operations into larger plants, about one half the number originally operated, and to abandon the original collieries as replaced. The construction of these new collieries did not add to the potential capacity for production, for, both before and after their construction, the corporation never mined more than two thirds of its original potential capacity. The construction of these new collieries extended through a period of about a dozen years during which the income tax act of 1913 became effective. The corporation, in order to avoid expenses of long continued litigation, acquiesced in the demands of the revenue department and changed its method of accounting. The result was a constantly increasing capital CARD OF THANKS this tax returned to the anthracite region and used in restoring properties on the surface that were damaged by mine caves.

These efforts made by residents of the anthracite region in their irrational attack upon our basic industry, and its continuous operation, upon which we all rely for our prosperity, gave the politicians of the state an opportunity to secure additional funds to further their favorite game patronage and led to the tonnage tax acts hereafter discussed, Acts Taxing Anthracite The first law taxing anthracite pro duction was the act of May 1, 1868, imposing a tax of 5c a ton. This was prior to the adoption of the present constitution of Pennsylvania which became effective on Jan. 1, 1874. The court, in passing on this act, de Mrs. George Moyes and family of Storrs street, Taylor wish to express their thanks to all those who assisted them in their recent bereavement.

Adv. Vivian Teague; report of crusaders," Mrs. Weldon Siptroth; report of civics, Mrs. H. W.

Howe; solo, Mrs. W. H. Peterson; report from circles; report of white cross, Mrs. Robert Frew; report of temperance, Mrs.

E. E. hymn. Afternoon Session Devotions, Mrs. Mark Sanborn; report of secretary director, Mrs.

O. G. Langford; report of educational director, Mrs. L. J.

Hall; playlet, "A Clinic of a Missionary Specialist," Taylor Missionary circle; offering, Mrs, Lucy Carroll, Mrs. W. H. Peterson; ad TAYLOR, Feb. 21.

A largely attended and interesting mid winter meeting of the Womans Missionary society, Abington Baptist association, was held yesterday afternoon in the Calvary Baptist church. Delegates from various churches embracing the district were in attendance. The following progrom was given: Morning Session Devotions, business, Mrs. H. F.

Fuller; report of literature, Miss Anna Morgan; report of W. W. guild, Miss Around the Borough TAYLOR, Feb. 21. Several large billboards along the Keyser creek.

North Main street, caught fire in CLELANB SIMPSON CO "TEE (GL0IBE clared it constitutional as, at the time of its passage, there was no restraint on the power of the legislature. The next law of similar character was enacted April 24, 1874, taxing anthracite under the new constitution. This act was declared unconstitutional. The court, in its decision, quoted the first and second sections of the ninth article of the constitution of Pennsylvania; viz: "Section 1. All taxes shall be uniform, upon the same class of subjects, within the territorial limits of the authority levying the tax, and shall be levied and collected under general laws; but the general assembly may, by general laws, exempt from taxation public property used for public purposes, actual investment wuth constantly ciiminisn ing assets; i.

the coal is being exhausted while the investment increases. A much better plan, one which would return the correct income earned by the corporation through a period of years for taxation, would be the one followed by the farmer. The court in deciding an appeal under the excise act of 1909, in a case which involves an expsnditure by a railroad company of more than a million and a half dollars in each of two consecutive years, and which sums are not carried in defendant's accounting as additions and betterments, but were paid for from operating revenue and charged as current expenses. The court in charging the jury said: "It was not intended to have a system of bookkeeping with reference to each LEADERSHIP NVITING you to visit particular cross tie and each particular rail, but you should look to the value of the roadway as a whole, comparing its value at the beginning of the year, with its value at the end of the year." The court explained that our new department of Phoenix Silk Hosiery For women and children To meet the preference of discerning women for hosiery of style distinction and color charm, we are presenting a comprehensive collection of Phoenix Hosiery. Here at all times you will find what is new, what is smart, what is distinctive in fine silken hosiery.

The evenness of texture, the shapeliness, the fashion right colortones of Phoenix are but a few reasons for its outstanding popularity cXewVepsiow of the cAlllmpoptarvtBloiiie Blouses are a "high fashion" for spring They are made on the more feminine and flattering lines. The little dressmaker touches, pleated jabots, ruffling and new collar effects are softening and flattering to the iwearer. It is no wonder then why they are being accepted so Sheer chiffon hosiery Service chiffon hosiery A wearing everyday hose that is full fashioned, has lisle back, garter top and lisle foot. New color tones that are smart for spring. The new ultra modish heels will please you I A beautiful sheer chiffon hose that is of a lovely soft pure silk texture.

All silk from top to toe and silk reinforced picot garter tops. In smart new spring shades. .95 .95 places of religious worship, places of burial not used or sold for private or corporate profits, and institutions of purely public charity." "Section 2. All laws exempting property from taxation other than the property above enumerated, shall be void," and stated the act does not impose a tax upon all coal, but only on a certain kind, anthracite; therefore, the tax is not uniform as required by the first section of the ninth article of the Pennsylvania, constitution. Next in order among the tax burdens of anthracite came the revenue corporation Excise Tax Act enacted by the federal government on Aug.

5, 1909. Under this act, which became effective Jan. 1, 1909, the royalties received by the corporation owner of fee owned coal lands for minrals removed under a long term agreement are declared to be income in spite of the fact that each ton removed reduces capital value of the land from royalties and are in part, at least, return of invested capital. The courts have held in cases brought under this act that the exhausting of the mineral body, in process of mining is not an element to be considered in determining a reasonable depreciation under said act. Net income under the act was defined by the courts in part, as follows; "The value of what is extracted after deducting the cost thereof and the cost of treatment and cost of adminstering the corporation with a reasonable reservation for contingencies." This means that coal land costing an organization a large sum of money and Included in the capitalization value of the stock and subject to the state capital stock value tax is under the United States excise tax of 1909, if sold in small subdivisions, all considered income upon which a federal tax must be paid.

The excise act of 1909 was followed by the Revenue Act of March 1, 1913, commonly called income and excess profilts tax. These two acts introduced several new elements in anthracite accounting, among them the theory of capital additions, depreciation, and depletion. Prior to this time most of the older anthracite mining corporations followed the bookkeeping methods commonly used by farmers, by treating all expenditures made annually as a part of the operating cost for that year and deducting such costs from the operating revenue to obtain the net income. But this revenue act of 1913 required a change based on the theory that certain additions, betterments and replacements, having a life of several years when purchased, must have the cost added to the capital investment, and only a certain portion of it changed each year to the current cost of operation. For Instance, the purchase of a new mule, taking the place of one injured or killed, must be apportioned through the operating cost of not less than five years.

This plan required a method of bookkeeping involving a ledger account covering the purchase of every article, including a railroad rail or tic, the cost of which must be apportioned to the estimated life of the article. Talks on Expenditure In an accounting system for anthracite mines, all cvpenditures for additions, alteniions. repairs, renewals, or necesary to mc changing market should, in my opinion, be trer ted as extraordinary reparirs. These reparirs should be charged to current operating costs necessarv to keep the plant, equipment and facilities up to a maximum state of efficiency and to completely overcome the lessening of the value of the property due to ordinary use, wear, tear, thereby keeping it in the same measure of value for use at the end of each year as it was at the beginning, provided, however, that such expenditures did not add to the potential capacity for production of the corporation, nor to its market value as a whole, at the end of each year over and above its market value at the end of the preceding year. As an illustration, I have in mind an anthracite mining corporation which ha operated continuously for the past half century.

This corpora Chiffon and service hosiery Chiffon and semi service hose by "value" it meant its value for use. The decision in another case under a former revenue act, that of June 30, 1864, contains the following: "That cannot be regarded as net income or profits, which is required and expended to keep the property up in its usual condition proper for operation. Such expenditure is properly classed with repairs which are a part of the current expense. If the company should build a double track where they had but a single one before, this would be a betterment or permanent improvement, and if paid out of the earnings would be fairly characterized as profits used in construction. The works of the company would have an additional value to what they had before with an increased capacity of producing future profits." In another case, under the revenue act of 1918, the court held: "It is, of course, true that depreciation, as used in the statute, is not to be confused with ordinary repairs.

It is intended to cover the estimated lessening in value of the original property, if any, due to wear, tear, decay, gradual decline from natural causes, in spite of current repairs: But, if, Instead of ordinary repairs, the buildings are kept up in such a high state of efficiency as to completely overcome the lessening in the value of the property due to the ordinary use, wear and tear, then a wholly different situation is presented, the history of many famous buildings in the country and elsewhere in the world have demonstrated that it is quite possible to preserve a building practically indefinitely by proper attention and repairs. The showing of the plaintiff'3 books, supported by the testimony of credible witness, and the condition of the buildings as they appear on examination, have satisfied me that the arbitrary rule which the government seeks to apply with reference to the alleged depreciation through prior years use erroneous and cannot prevail. The plaintiff is, therefore, entitled to judgment for the amount herein before set forth." In spite of these court decisions, the United States board of tax appeals has held that each article purchased must have its purchase price added to the capital investment and be reduced only at the rate of from two to twenty per cent per annum, depending on its length of life. The treasury department instructions covering the revenue act of 1926 are published in a book of 408 closely printed pages, entitled "Regulations," the index of which is 1400 sections covering more than 1600 separate articles. (To Be Continued) Letters Are Granted In Five Local Estates Letters of administration were allowed in five estates yesterday at tne register of wills office.

The administrators named and value of estates follow: Julia Kowtko, widow, in estate of Onlfer Kowtko, late of Olyphant, value S4.700. Daminick Kuchlnsky, brother, in cstnw of Joseph A. Kuchinsky, late of Dukson City, value $6,500. Prlscilla Shaw, widow, in $12,000 estate of Floyd T. Shaw, late of Clarks Summit.

Marion Slocum, son, in $7,000 estate of H. Jerome Slocum, late of Scranton. Richard Parry, son, in $400 estate of Sarah Parry, late of Spring Brook township. Car Operator Dies WILKES BARRE, Feb. 21.

Robert Lawson, veteran employe of the Wllkes Barre Traction company, was stricken suddenly ill while operating a car on the Suger Notch line this morning and died a few minutes later in the office of Dr. C. J. Becker, 679 Hazle street, before medical aid could be administered. Dr.

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Globe Third Floor LEADERSHIP.