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THE MUSIC TRADE REVIEW
11
INTERNAL REVENUE DEPARTMENT RULES ON WAR TAX
Commissioner General of Internal Revenue Hands Down Several Decisions Defining Conditions
Under Which War Taxes Must Be Paid—Floor Tax Decisions of Interest to the Piano Trade
WASHINGTON, D. C , October 29.—Important However, goods which are delivered to the
rulings on the application of the new war tax buyer subject to his approval or to other con-
law were announced Saturday by the Commis- ditions, and the property right to them is re-
sioner General of Internal Revenue.
These served to the seller, are not to be reported until
included several decisions construing floor the completion of the sale.
"5. A manufacturing company disposes of a
taxes about which great confusion exists, the
portion of its output through a selling corpora-
text of which follows:
"2. Where a corporation operates one or more tion of which it owns all the capital stock. Is
retail stores and under the same name, but sep- the transfer by the parent company to the sub-
arately as far as bookkeeping and stock taking sidiary a sale within the meaning of the act sub-
are concerned, the corporation's inventory re- jecting the parent company to the tax?
"The transfer from the manufacturing cor-
turn of stock on hand should include only that
in the wholesale department. Where the book- poration to the selling corporation is a sale
keeping and stock keeping of the wholesale provided the price at which the article is sold
and retail departments of establishments are or charged to the distributing corporation is no
kept separate, they will be regarded as if they less than is charged to the independent outside
were separate and distinct departments, and the distributors under similar conditions. The sell-
ing corporation is liable to the floor tax on all
retail stock will not be subject to the floor tax.
"3. Goods shipped and invoiced prior to Oc- articles subject to tax which have been charged
tober 4 are the property of the consignee, and and delivered to it prior to October 4, 1917, and
if shipped to a wholesaler are subject to the thereafter the manufacturing company should
floor tax. If, however, title is reserved in the pay tax upon delivery of all articles to the sell-
manufacturer he is subject to the manufacturer's ing corporation as upon sales, the price fixed
tax, and the wholesaler is relieved from the in no case to be less than the price at which
floor tax. The time when title passes depends the taxable article is sold to independent dis-
upon the intention of the parties. In the ab- tributors under similar conditions.
"Sections 400, 401 and 404 take effect on the
sence of an intention to the contrary, title is
assumed to pass from the seller to the buyer thirteenth day after October 3, viz., November
2, 1917."
upon the delivery of the goods to the carrier.
"4. Where a manufacturer consigns his entire
product to a retailer, retaining ownership in
PLAN FOR M0RE_PIAN0 PUBLICITY
the same until disposed of by the retailer, the
C. M. Tremaine Calls Piano Advertising Men
manufacturer is required to make return, under
Together to Discuss Plans for Co-operating
oath, of all goods sold to the retailer from and
so as to Benefit the Trade in General
after October 4, and to enable him to do so he
must secure monthly returns from the retailer
The latest development in the various plans
of the goods sold."
Other rulings on Sections 600, 601 and 602, for the closer co-operation of local retail piano
interests for the improvement of the trade as
which are of general interest, follow:
"1. Are goods manufactured in the United a whole was a luncheon and meeting at Keen's
States and sold to persons in foreign countries Chop House on Monday, which was attended
by a dozen or more advertising men represent-
subject to the tax?
ing local piano houses and at which was dis-
"There is no exemption in favor of goods
cussed ways and means for greater co-operation
which are to be exported. The United States
in the matter of retail piano publicity.
Supreme Court in numerous cases has held that
The meeting was called by C. M. Tremaine,
such a tax does not constitute a tax on exports,
director
of the National Bureau for the Advance-
or on articles exported, within the meaning of
the Constitution. 'A general tax, laid on all ment of Music, who sent out a letter to a num-
property alike and not levied on goods in course ber of prominent piano houses in the local trade,
of exportation, nor because of their intended ex- asking that the advertising men get together
portation, is not within the constitutional pro- and see to what extent they could work with
one another in regard to the creative part, of
hibition.'
advertising, with a view to bringing about a
"2. In computing the price at which goods more general demand for pianos and player-
are sold may the usual trade discounts be de- pianos. It was the belief of Mr. Tremaine that
ducted from the price thereof for the purpose the advertising men, by agreement, could alto-
of ascertaining the tax?
gether emphasize certain points in their copy,
"The amount of tax is determined by the which points, appearing in some form or other
price at which the goods are actually sold by in all advertising, would prove most impres-
the manufacturer, producer, or importer. Hence sive to the public.
discounts would be deducted from the list price.
At the meeting there was an analytical discus-
"3. Are net or gross sales to be reported? sion as to the problems, difficulties and benefits
That is, may there be deducted from the sales arising from such suggested co-operation along
of each month merchandise which has been sold advertising lines.
in a previous month and which is returned dur-
The problem of the advertising man is that
ing the month in which the report is made?
of being able to maintain a standard of origi-
"The merchandise becomes taxable when the nality while co-operating to some extent with
manufacturer parts with his title in it, and all his competitor, and above all to show an actual
taxable goods actually sold should be reported. increase in business as a result of such co-
operation. In other words, it was felt that the
result should be practical rather than theoretical.
The upshot of the matter was that Mr. Tre-
maine, who presided as chairman, was em-
powered to appoint a committee of three or
more, at his discretion, to go into the matter
and formulate some definite and practical plans
for presentation at a future meeting.
Those who attended the meeting included:
Albert J. Ford, American Piano Co.; Thos. H.
Fletcher, Aeolian Co.; Wm. Hedler, Hardman,
Awarded first prize in many world compe-
titions during the past sixty years, the
Peck & Co.; W. N. Fitz, Hallet & Davis Piano
Schomacker Piano is now daily receiving
Co.; A. R. Spoerl, Rudolph Wurlitzer Co.; Geo.
first prizes of preference won by its superb
A.
Scofield, Behning Piano Co.; Chas. A. Stein,
tone, wonderful breadth of expression and
Kohler & Campbell, A. V. W. Setley, Estey
structural beauty.
Piano Co.; J. A. Coffin, E. Gabler & Bro., Inc.;
SCHOMACKER PIANO CO.
Ben H. Janssen, and O. C. Stone and Nils Flor-
23d and Chestnut St».,
Philadelphia, Pa.
man, of O. C. Stone & Co.
Few Make
Grands
Many make uprights who never attempt
to manufacture a grand. Manufacturers
who have won national and international
fame have done so on the merits of their
grand pianos, for the entire science of
piano manufacturing is encompassed in
the grand.
The manufacturer who produces an ar-
tistic grand may be safely intrusted to the
making of an artistic upright. For 61
years we have been making grands and
uprights.
DECKER
PIANOS
and
PLAYER
PIANOS
You will find them in homes throughout
the nation, beloved by every family that
owns one.
W e invite you to investigate the merits of
one of the world's oldest makers of pianos.
BUSINESS FOUNDED IN
EIGHTEEN FIFTY-IIX
t<
Always made by a
Decker"
DECKER & SON, Inc.
697-701 East 135th Street
NEW YORK CITY
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