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WASHINGTON
HIGH LIGHTS
Excess Profits Tax of 1950
Became a Law on January 3rd
President Truman signed the Excess
Profits Tax Act of 1950 on January 3rd
and notified the country anew that the
defense program would require still
"more and much heavier" levies.
The bill that became law by the Pres-
ident's action increases corporation
taxes $3,300,000,000 a year, as com-
pared with his original request for
$4,000,000,000. It combines a $2,700,-
000,000 levy on profits defined as ex-
cessive with a $600,000,000 advance in
regular rates.
The bill is retroactive to July 1 with
respect to the excess-profits impost. For
most affected corporations, the increase
in regular rates takes effect as of Jan-
uary 1st. Corporations earning less than
$25,000 a year are exempt from both
provisions.
Excess profits, under the new law,
will be subject to a levy of 77 per cent.
They are defined by the act's primary
formula as earnings in excess of a cor-
poration's average annual earnings dur-
ing its most profitable three years of the
four-year period, 1946-49.
Optional formulas are keyed to speci-
fied returns on the corporation's capital
investment. Relief provisions and spe-
cial formulas are designed to prevent
undue hardship in unusual circum-
stances.
By the act's provisions relating to
"normal" profits, the 45 per cent rate
on profits above $25,000 is increased-
to 47 per cent.
Copper Conservation Order
Doesn't Name Pianos
To conserve copper vitally needed for
defense, the National
Production
Authority on December 30th issued an
order governing the use of copper in
the manufacture of a wide range of
products, starting March 1.
20
"This action was taken to provide
copper for defense and defense-support-
ing needs," William H. Harrison, NPA
Administrator, said. "Although every-
thing possible is being done to increase
production, there is not enough copper
to meet our expanding defense needs
and to supply all civilian demands.
"The order permits the use of copper
where it serves a functional purpose and
where no practical substitute is avail-
able. It will not be used where it is non-
functional—in the manufacture of orna-
ments or for use in decorative parts, for
instance—or where a satisfactory sub-
stitute can be used.
"The order provides copper cannot
be used in certain less essential items,
but it does not forbid the manufacture
of the article itself. In many cases manu-
facturers will be able to use substitute
materials."
Mr. Harrison pointed out manufac-
turers are permitted to complete and sell
affected items if they were in the process
of manufacture on or before March 1
and are completed not later than April
30. He also emphasized the order pro-
vides, thru appeals procedures, for ad-
justments and exceptions where undue
hardship occurs.
"Recognizing that this order may
bring about hardship cases, particularly
involving employment, every effort will
be made in the administration of the
order to relieve hardship cases," Mr.
Harrison said.
Contained in the order is a list (List
A) of articles in which no form of
copper may be used beginning March 1.
The list includes items in the following
categories: Builders' hardware, building
materials, burial equipment, clothing
and dress accessories, furniture and fix-
tures, hardware, home furnishings and
equipment, household appliances, jew-
elry, gifts and novelties, miscellaneous
articles, motor vehicles, and passenger
transportation equipment. Pianos and
musical instruments are not listed.
Previous NPA actions designed to
effect savings in the use of cepper prior
to March 1, remain in force. Manufac-
turers are permitted, during January
and February, to use 85 per cent of the
average monthly amount of brass mill
and wire mill products they used during
the first six months of 1950, but they
are permitted to use copper in foundry
products at the same quarterly rate as
they did during the first six months of
1950.
Regulation W and Wire Recorders
The Federal Reserve Board has ruled
that tape and wire recorders come under
the terms of Regulation W when pur-
chased for home use. The 25 percent
minimum down payment and 15 months
maximum maturity provision does not
apply when recorders are purchased for
use in radio or television stations or
other commercial establishments.
NPMA Executive Committee
Met in New York in December
The Executive Committee of the Na-
tional Piano Manufacturers Association
held a Meeting at the Hotel New Yorker,
New York City, on Tuesday, December
5th.
Those present were: Webster E. Jans-
sen, Association President, Janssen
"Piano Co., Inc., Vice President J. F.
Feddersen, Jesse French & Sons Division
of H. & A. Selmer, Inc.; Henry Z. Stein-
way, NPMA Treasurer and head of the
Class Piano Instruction Committee,
Steinway & Sons; Robert A. Hill, Presi-
dent of Aeolian American Corp.;
Eugene Wulsin, The Baldwin Piano Co.;
Harry J. Sohmer, President, Sohmer &
Co., Inc.; George H. Stapely, President,
Everett Piano Co.; James V. Sill, Vice
President, W. W. Kimball Co.; Henry
G. Wickham, Vice President of Wick-
ham Piano Plate Co.; and H. R. Rine-
hart, Executive Secretary of the Asso-
ciation.
THE MUSIC TRADE REVIEW, JANUARY, 1951