CONGRESS. (TAX REDUCTION.) 



<-ary for a proper maintenance of the Government, 

 its protection, its \velfare, and its safety should 

 be collected. For none of these is needed such an 

 abundance of taxes as piles up a useless surplus." 



The bill passed the House of Representatives 

 Dec. 15, 1900, and it was reported in the Senate 

 with an amendment by way of substitute which 

 passed Feb. 6, 1901. The House disagreed with 

 the Senate amendments, and a conference com- 

 mittee was appointed. A report was made Feb. 

 28, and adopted. It retained the form of the 

 original House bill, but accepted some of the 

 changes of rates made in the Senate amendments. 

 The measure was approved by the President, 

 March 2, 1901, in the following form: 



"Be it enacted by tJie Senate and House of 

 Representatives of the United States of America 

 in Congress assembled, That section 1 of the act 

 entitled ' An Act to provide ways and means to 

 meet war expenditures, and for other purposes,' 

 approved June 13, 1898, is hereby amended so as 

 to read as follows: 



" ' That there shall be paid, in lieu of the tax of 

 $1 now imposed by law, a tax of $1.60 on all 

 beer, lager beer, ale, porter, and other similar fer- 

 mented liquors, brewed or manufactured and sold, 

 or stored in warehouse, or removed for consump- 

 tion or sale, within the United States, by what- 

 ever name such liquors may be called, for every 

 barrel containing not more than 31 gallons; and 

 at a like rate for any other quantity or for the 

 fractional parts of a barrel authorized and defined 

 by law. And section 3339 of the Revised Statutes 

 is hereby amended accordingly: Provided, That in 

 lieu of or in addition to the present requirements 

 of law in that respect, all stamps used for denot- 

 ing the tax upon fermented liquors or other taxes 

 may, in the discretion of the Commissioner of 

 Internal Revenue, be canceled by perforations to 

 be made in such manner and form as the com- 

 missioner may by regulations prescribe.' 



" SEC. 2. That section 2 of said act is hereby 

 amended so as to read as follows: 



" ' SEC. 2. That special taxes shall be. and 

 hereby are, imposed annually as follows that is 

 to say: 



" ' 1. Bankers using or employing a capital not 

 exceeding the sum of $25,000 shall pay $50 ; when 

 using or employing a capital exceeding $25,000, 

 for every additional $1,000 in excess of $25,000, 

 $2, and in estimating capital surplus shall be in- 

 cluded. The amount of such annual tax shall in 

 all cases be computed on the basis of the capital 

 and surplus for the preceding fiscal year. In the 

 case of bankers who were not in business in the 

 preceding fiscal year the tax shall be computed on 

 the capital at the time of commencing business. 

 Every person, firm, or company, and every incor- 

 porated or other bank, having a place of business 

 where credits are opened by the deposit or col- 

 lection of money or currency, subject to be paid or 

 remitted upon draft, check, or order, or where 

 money is advanced or loaned on stocks, bonds, 

 bullion, bills of exchange, or promissory notes, or 

 where stocks, bonds, bullion, bills of exchange, or 

 promissory notes are received for discount or sale, 

 shall be a banker under this act: Provided, That 

 any savings-bank having no capital stock, and 

 whose business is confined to receiving deposits 

 and loaning or investing the same for the benefit 

 of its depositors, and which does no other busi- 

 ness of banking, shall not be subject to this tax. 



' * 2. Brokers shall pay $50. Every person, firm, 

 or company, whose business it is to negotiate 

 purchases or sales of stocks, bonds, exchange, 

 bullion, coined money, bank-notes, promissory 

 notes, or other securities for themselves or others, 



shall be regarded as a broker: Provided, That any 

 person having paid the special tax as a banker 

 shall not be required to pay the special tax as a 

 broker. 



" ' 3. Pawnbrokers shall pay $20. Every per- 

 son, firm, or company whose business or occupa- 

 tion it is to take or receive, by way of pledge, 

 pawn, or exchange, any goods, wares, or merchan- 

 dise, or any kind of personal property whatever, 

 as security for the repayment of money loaned 

 thereon, shall be deemed a pawnbroker. 



" ' 4. Custom-house brokers shall pay $10. 

 Every person, firm, or company whose occupa- 

 tion it is, as the agent of others, to arrange en- 

 tries and other custom-house papers, or transact 

 business at any port of entry relating to the im- 

 portation or exportation of goods, wares, or mer- 

 chandise, shall be regarded as a custom-house 

 broker. 



" ' 5. Proprietors of theaters, museums, and 

 concert halls in cities having more than 25,000 

 population as shown by the last preceding United 

 States census, shall pay $100. Every edifice used 

 for the purpose of dramatic or operatic or other 

 representations, plays, or performances, for ad- 

 mission to which entrance money is received, not 

 including halls rented or used occasionally for 

 concerts or theatrical representations, shall be 

 regarded as a theater: Provided, That whenever 

 any such edifice is under lease at the passage of 

 this act, the tax shall be paid by the lessee, unless 

 otherwise stipulated between the parties to said 

 lease. 



" ' 6. The proprietor or proprietors of circuses 

 shall pay $100. Every building, space, tent, or 

 area where feats of horsemanship or acrobatic 

 sports or theatrical performances are exhibited 

 shall be regarded as a circus: Provided, That no 

 special tax paid in one State, Territory, or the 

 District of Columbia shall exempt exhibitions 

 from the tax in another State, Territory, or the 

 District of Columbia, and but one special tax shall 

 be imposed for exhibitions within any one State, 

 Territory, or District. 



" ' 7. Proprietors or agents of all other public 

 exhibitions or shows for money not enumerated in 

 this section shall pay $10: Provided, That a spe- 

 cial tax paid in one State, Territory, or the Dis- 

 trict of Columbia shall not exempt exhibitions 

 from the tax in another State, Territory, or the 

 District of Columbia, and but one special tax shall 

 be required for exhibitions within any one State, 

 Territory, or the District of Columbia. 



" ' 8. Proprietors of bowling-alleys and billiard 

 rooms shall pay five dollars for each alley or table. 

 Every building or place where bowls are thrown 

 or where games of billiards or pool are played, and 

 that are open to the public with or without price, 

 shall be regarded as a bowling-alley or a billiard 

 room, respectively.' 



" SEC. 3. That the internal-revenue tax on 

 cigars weighing more than 3 pounds per 1,000 

 shall be $3 per 1,000; and the tax on cigars weigh- 

 ing not more than 3 pounds per 1,000 shall be 

 18 cents per pound, and on cigarettes weighing not 

 more than 3 pounds per 1,000 and of a whole- 

 sale value or price of not more than $2 per 1,000 

 shall be 18 cents per pound; and the tax on 

 cigarettes weighing not more than 3 pounds per 

 1,000 and of a wholesale value or price of more 

 than $2 per 1,000 shall be 36 cents per pound; 

 and all such cigars and cigarettes weighing not 

 more than 3 pounds per 1,000 shsUl for purposes 

 of taxation be held and considered as weighing 

 3 pounds. 



" SEC. 4. That there shall be allowed a discount 

 of 20 per centum on all sales by collectors to 



