smaller. Included in the amount of the original loan was a sum sufficient to pay for essential repairs and taxes delinquent or due. Loans were made at an interest rate of 5%, later accepted at the rate of 42% and to run for a period not over 15 years, and were to be retired through monthly payments covering, principal and interest. The Home Owners' Loan Act has been amended to permit the Corporation to extend its loans to a maximum of twenty-five years where the borrower's circumstances and the condition of the security justify such extension. The HOLC was provided with $200,000,000 capital. It was ultimately authorized to issue U. S. guaranteed bonds in an amount not to exceed $4,750,000,000, of which $3,489,453,550 were issued. A total of $2,419,608,800 in bonds was outstanding as of June 30, 1941. The Corporation lent more than $3,093,000,000 to about 1,018,000 home owners. It operated in almost all of the counties in the United States. Its average loan was slightly more than $3,000. As of June 30, 1941, only 6.5% of HOLC's 842,288 active accounts were in default. In other words, 93.5% of the Corporation's total active loans and sales contracts were being paid in satisfactory fashion. While the remaining borrowers or purchasers were in varying delinquency, only a small percentage were in imminent danger of foreclosure. More than 108,000 loans amounting to $260,000,000 have been paid off in full and the mortgages cancelled. From the beginning of its operations through June 30, 1941, HOLC has acquired about 182,000 properties. This is 17.9% of the total number of loans granted. On that date the Corporation had sold more than 139,000 of its acquired properties. Of the unsold properties that were available for rental income, about 91% were rented. The progress of HOLC toward liquidation of its loans and properties is shown by the fact that principal payments on its mortgages and sales contracts on June 30, 1941, reached 33.5% of its original loans plus later advances and refunded interest on extended accounts. NATIONAL DEFENSE ACTIVITIES OF FHLBB AGENCIES DEFENSE HOUSING-The Federal Home Loan Bank System in cooperation with Government agencies and through its district FHL Bank Presidents, is securing support of member institutions in financing housing accommodations for defense workers both by new construction and by modernization. Emergency measures have been taken to augment the supply of loanable funds of these associations. The Federal Home Loan Bank Boardment of their properties. also encourages organization of committees to study local housing needs and to sponsor Homes Registration Offices. HOLC has been cooperating with the office of the Defense Housing Coordinator in a program to repair existing houses so that more dwelling units may be provided. HOLC architects and technicians are advising owners of these homes on the improvement or enlarge National Labor Relations (Wagner) Act NLRB-National Labor Relations Board-Dr. Harry A. Millis, chairman; William Morris Leiserson and Gerard Denis Reilly. Address, Washington, D. C. Regional offices are maintained in Boston, New York City, Buffalo, Philadelphia, Pittsburgh, Baltimore, Detroit, Cleveland, Cincinnati, Atlanta, Indianapolis, Milwaukee, Chicago, St. Louis, New Orleans, Fort Worth, Kansas City, Minneapolis, Seattle, San Francisco, Los Angeles and Denver. The primary purposes of the National Labor | Relations Board are to investigate issues, facts, practices, and activities of employers or employees in labor controversies; to see that employees have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities, for the purpose of collective bargaining or other mutual aid or protection; to prevent any person from engaging in any unfair labor practice affecting commerce. The NLRB was created as an independent agency by Act of Congress, approved July 5, 1935. The members of the Board were named by the President and confirmed by the Senate on Aug. 24, 1935. To it was transferred the personnel of the 21 field agencies each with a Regional Director, from the old Board which was created on June 19, 1934. The act affirms the right of employees to full freedom in self-organization and in the designation of representatives of their own choosing for the purpose of collective bargaining, and it authorizes the Board to conduct secret ballots for the determination of employee representatives, declaring unlawful those unfair labor practices which abridge or deny the right of collective bargaining. As set forth in the act, the principal powers of the National Labor Relations Board are: (a) By the issuance of cease and desist orders, to prevent any person from engaging in any of the following specified unfair labor practices when they affect commerce; Interference by employers with employees' rights of self-organization and collective bargaining: employer domination of a company union; discharge of an employee; or discrimination against him, because of his union activity or because he has filed charges or has given testimony under the act; and refusal by the employer to bargain collectively with the proper representatives of the employees. (b) To decide whether the unit appropriate for the purposes of collective bargaining shall be the employer unit, craft unit, plant unit, or subdivision thereof. (c) To certify the name of employee representatives designated; or to ascertain the names by secret ballot. (d) To order and conduct hearings and, if it finds a violation of the act, to issue an order to cease and desist from such unfair labor practice. (e) To issue subpoenas, administer oaths, conduct Investigations, and issue complaints. (f) To petition any circuit court of appeals for the enforcement of a cease and desist order. (g) To prescribe such rules and regulations as may be necessary to carry out the provisions of the act. Regional directors, in charge of the 22 field offices of the Board, are designated as the Board's agents, with power to prosecute necessary inquiries; to investigate employee representation (including the taking of secret ballots); to have access to and the right to copy evidence, and to administer oaths and affirmation. Hearings are ordinarily conducted before trial examiners in the regions where the unfair labor practices occur. In its discretion the Board may issue a complaint from Washington and proceed with a hearing on a violation of an unfair labor practice and may follow the same procedure on a petition for an election. Hearings on complaints and on petitions for elections will be public unless otherwise ordered. Full inquiry will be made into the facts. nothing in the act shall interfere in any way with The National Labor Relations Act provides that the right to strike. A charge that any person has engaged in, or is engaging in any unfair labor practice affecting commerce may be made by any person or labor organization. No formal complaint will be made until the Board has examined the facts and concluded that some ground for action exists; nor will the Board make public any charges against employers unless the facts show that a formal complaint is justified. Twenty-nine Board cases have been decided by the Supreme Court of the United States as of Sept. 30, 1941. The Board was upheld in 27 cases. In the remaining two cases the Board's order was set aside in full. In the Circuit Courts of Appeals there have been 241 decisions dealing with the enforcement of Board orders. Of these the Board's order has been wholly or substantially sustained in 199 cases and set aside in 42. During its first five years the Board has handled 28,000 cases. About 40 percent of these cases encompassed issues either dismissed by the Board or withdrawn by originators of the case. Another 50 percent was settled with the agreement of all parties concerned. The remaining 10 percent of cases ran the whole course of formal procedures. The Board conducted 5,972 elections in its first six-year period, and nearly 2,000,000 valid votes were cast. During the same time there were two periods in which the Board received more than 1,000 new cases a month. This first occurred in May, 1937, immediately after the Act had been upheld by the Supreme Court; two-thirds of the issues presented to the Board in May of that year concerned unfair labor practices. The second period began four years later, in May, 1941, when 1,075 cases were filed with the Board; this time, the workers filed more election petitions than they did unfair labor practice charges. Federal Housing Administration FHA-Federal Housing Administration-Abner H. Ferguson, Administrator. State and District offices are maintained in the various states. D. C. The Federal Housing Administration was created | by the National Housing Act, approved June 27, 1934, and amended in later years, "to encourage improvement in housing standards and conditions, to provide a system of mutual mortgage insurance, and for other purposes." It authorizes the Administrator (1) to insure lending institutions (under Title I) against losses up to 10 percent of their total insured loans for repair, alteration, or improvement of homes and other properties; (2) to insure (under Title II) mortgage loans made by lending institutions on individual homes and on housing projects; and (3) to insure (under Title VI) mortgage loans made by lending institutions on defense housing projects in areas designated by the President. Total business transacted by the FHA from its inception until the close of business June 30, 1941, aggregated $7,148,594,146. This includes Title I loans amounting to $1,370,375,879 reported for insurance; Title II small-home mortgages selected for appraisal amounting to $5.562.539.151; Title II large-scale housing mortgages accepted for insurance amounting to $141,157,016; and Title VI defense housing mortgages selected for appraisal amounting to $74,522,100. All of this money was private capital. The FHA itself lends no money, but insures funds advanced by private lending institutions. From the beginning of the National Emergency in July, 1940, the FHA has been one of the leading factors in providing homes for defense workers and at least 85 percent of the new homes financed under its program since that date have been in areas of important defense industry activity. It is officially designated as a Defense agency. To make FHA participation in the Defense Program even more effective, Congress created a new Title VI to the National Housing Act in March. 1941, setting up a special FHA home mortgage insurance authorization of $100,000,000 (later raised to $300,000,000) and providing machinery enabling private enterprise to supply upward of 90,000 units in meeting housing demands caused by national defense activities. Special characteristics of Defense Housing Insurance under Title VI are: It is restricted to areas "in which the President shall find that an acute shortage of housing exists or impends which would impede national defense activities" and is limited to commitments to insure made before July 1, 1942, unless the President should declare the emergency terminated before that date. It authorizes insurance of mortgages of up to 90 percent of FHA valuation on new one- to fourfamily homes in cases where the builder is the mortgagor, in contrast to Title II provisions limiting 90 percent mortgages to single-family owneroccupied new homes. The builder may thereafter rent or sell, subject to the insured mortgage. Mortgages insured under Title VI have a maximum term of 20 years, in contrast to 25 years under certain conditions under Title II, and are limited to a maximum of $4,000 on a house for one family, $6,000 for two families. $8,000 for three families, and $10,500 for four families. Furthermore, the mortgage must be accepted for defensehousing insurance prior to construction of the home. The mortgage insurance rate is 34 of one percent on outstanding balances while the builder is the owner, and 11⁄2 of one percent when the occupant becomes owner. The maximum interest rate is 412 percent, as for Title II small-home mortgages. Insurance of loans under Title I, which was to have ended July 1, 1941, was extended to July 1. 1943, and the maximum outstanding insurance liability was raised from $100,000,000 to $165,000,000. Class 1 loans to repair, alter, or improve existing homes and other properties may now be for a maximum of $5,000 when for improvement of dwellings for two or more families and may run for five years; when for improvement of singlefamily dwellings and all other types of structures, the maximum amount remains at $2,500 and the maximum term three years. Class 2 loans to erect new commercial or industrial structures may be for a maximum of $3,000 and may run for fifteen years. Class 3 loans for construction of new small homes may be for a maximum of $3,000 and may run for 15 years, the minimum down payment being 5 percent of the valuation of the completed property. Maximum charges, including interest, may not Address, Washington, exceed the equivalent of $5 discount per $100 face amount of a one-year monthly-installment note on Class 1 and 2 loans. On Class 3 loans the interest may be 41⁄2 percent, or the discount may be $3.50 per $100. The FHA premium charge is 34 of one percent on Class 1 and 2 loans and 1⁄2 of one percent on Class 3 loans. Total claims, less recoveries, paid by the FHA on Title I loans as of June 30, 1941, amounted to $22,330,067, or 1.63 percent of the grand total of Title I loans reported. Title II provides for a long-term mortgage insurance program to be carried out by means of two mortgage insurance funds, one under Section 203 for mortgages on individual one- to four-family houses and the other under Section 207 (and the repealed Section 210) for mortgages on housing projects of 16 or more residential units. The maximum outstanding insurance authorization under this title is $5,000,000,000. Under Section 203, the Administrator is authorized to insure first-mortgage loans made by approved lending institutions on new construction without any time limit and on existing construction up to July 1, 1944. On new single-family owner-occupied homes mortgages not exceeding $5.400 may be for as much as 90 percent of the FHA valuation of the completed property and may run for as long as 25 years. Mortgages not exceeding $8,600 may be for as much as 90 percent of the first $6,000 and 80 percent of the next $4,000 of FHA valuation and may run for 20 years. Mortgages on all other houses (existing structures and new homes not occupied by the owners or valued in excess of $10,000) cannot exceed 80 percent of the FHA valuation (the maximum allowable loan being $16,000) and cannot run for more than 20 years. Under present regulations the maximum interest rate which may be charged by lending institutions on FHA-insured mortgages is 412 percent, plus the mortgage insurance premium of 2 of one percent, both on declining balances. The prevailing rate in some sections of the country is 4 percent. As of June 30, 1941, the Mutual Mortgage Insurance Fund (applying to small-home mortgages insured under Section 203) totaled $43,910,554, against which were liabilities outstanding totaling $9,560,005, leaving a net of $34,350,549.. As of the same date, 2.895 of the 726,329 premiumpaving home mortgages which had been placed on FHA books had been foreclosed by the lending institutions and the properties turned over to the Administrator. The Administrator had resold 2,283 of these properties at prices which left a net charge against the fund of $1,418,104; the remaining 612 properties were held awaiting sale. Construction of apartments or groups of individual homes is encouraged under Section 207 of the act. Insurance is provided in this section for mortgages on apartment or group housing projects amounting to as much as $5,000,000, with maximum interest at 4 percent and amortization periods averaging around 28 years; the mortgage amount per room is limited to $1,350. Assets of the Housing Insurance Fund (which applies to mortgages on housing projects insured under Section 207 and the repealed Section 210 of the act) totaled $12,285.793 as of June 30, 1941. Against these assets there were outstanding liabilities totaling $10.797,877, leaving a net of $1,487,916. Of the 335 projects with mortgages insured under these sections. 10 have been acquired and one mortgage note assigned to the Administrator. One project has been sold with a net charge against the fund of $4,914, and the other 9 are being operated under FHA supervision. The Defense Housing Insurance Fund of $10,000,000 was set up in April, 1941, with funds to be advanced by the Reconstruction Finance Corporation and as of June 30 had no outstanding liabilities. Gross income of the FHA through appraisal fees, premium payments, and reinvestment of funds was averaging over $2,177,000 a month. Of this amount, over $1,811,000 was derived from operations under Title II, around $292,000 under Title I, and around $74,000 under Title VI. Under Title III of the National Housing Act, the Federal National Mortgage Association purchases FHA-insured small-home mortgages from originating lenders and in some instances makes insured loans on large-scale housing projects. It derives its lending funds from the public through sale of bonds secured by the purchased mortgages. In many States the jury can recommend life imprisonment. In Rhode Island a person who commits murder while under sentence of imprisonment for life "shall be hanged by the neck until dead." (1) The jury decides upon the penalty. (2) If State within which sentence is imposed does not have death penalty the Court shall designate some other State in which sentence shall be executed by manner prescribed in that State. PENALTIES FOR KIDNAPING or The Act of Congress of June 22, 1932, forbids the transportation of any person in interstate foreign commerce unlawfully detained and held for ransom or reward. The penalty is imprisonment for such term as the court shall determine. Section 338(a) Title 18 U. S. C., deals with the mailing of threatening communications and contains a provision for the punishment of any person who attempts to extort money or other thing of value in connection with a threat to kidnap any person. The penalty in this Act is not more than $5,000 fine or imprisonment of not more than twenty years, or both. In Jan., 1936, the President signed an amendment to the "Lindbergh Law" providing a penalty of ten years in prison or a fine of $10,000 for any one convicted of receiving, passing or handling money paid as ransom. Under the federal law. the penalty for kidnaping is not less than 10 years, or death if the jury so directs. Every State has penalties, which now vary according to whether the person stolen is young or old, or is abducted for extortion or revenge: or is harmed, or is taken for family reasons. Maine in 1935 increased the penalty to life imprisonment instead of 20 years; Oklahoma stepped it up to ten years or more in prison or death, according to circumstances. In California kidnapers who harm the victim are liable to execution. CAPITAL PUNISHMENT In North Dakota, Rhode Island, and some other states where life imprisonment is the only penalty for murder, death by hanging is inflicted if a person kills somebody else while serving a life term. In some of the capital-punishment states the jury has the right to fix the penalty at life imprisonment, by urging mercy. In Kentucky, the death penalty in case of rape is inflicted by hanging. Felonies, such as manslaughter, arson, burglary robbery, and larceny, are in some States subdivided into degrees, first, second, third and even fourth; while in others there is a single general classification. In New York and in several other States laws are in effect which provide longer and longer terms of imprisonment for second, third, or fourth or more convictions of felonies. CRIMES AGAINST THE UNITED STATES. Whoever, owing allegiance to the United States, levies war against them, or adheres to their enemies, giving them aid or comfort, is guilty of treason. The penalty upon conviction is imprisonment for not less than 5 years, fine of not less than $10,000, or death. Misprision of treason consists in general of having knowledge of, concealing and not disclosing the treason of others. The penalty is imprisonment for not more than 7 years, and fine of not more than $1,000; or both fine and imprisonment. Rebellion or insurrection is the inciting, setting on foot, assisting or engaging in armed resistance to the execution of the laws by two or more. The penalty on conviction is imprisonment for not more than ten years, fine of not more than $10,000, or both. When two or more persons co-operate in com mitting any offense against the laws of the United States it is the crime of conspiracy, punishable by $10,000 fine or three years imprisonment, or both. The Supreme Court has decided that to co-operate in violating any law of the United States, or encouraging or inciting or doing anything to cause the violation of such law, is an offense against the United States" and, therefore, is the crime of conspiracy. Offenses against the mails fall into two general classes: one, the misuse of the mails for immoral or fraudulent purposes, the other, robbing the mails; penalties vary with the nature of the particular offense. CRIMES UNDER STATE PENAL CODES Murder in the First Degree may be generally defined to be the unlawful, intentional and premeditated killing of a human being, or such a killing resulting from the commission or attempt to commit one of the graver crimes, such as arson, burglary, rape or robbery. In the State of New York lookouts and others not actually the killers in a murder committed during a holdup may escape the death penalty upon recommendation of the jury. A judge in a felony murder case may impose life sentence upon those engaged in the crime, but not the actual killers, if the jury recommends clemency for them. Heretofore all persons convicted in felony murder cases had received the mandatory death sentence which the new law now modifies. Murder in the Second Degree is such a killing without premeditation, or resulting from the attempt to commit some lesser crime. Murder in the second degree is punished in the Federal Code by imprisonment for not less than 10 years to life. In the states which have no death penalty, murder in the second degree is usually also punished by life imprisonment. Manslaughter may be defined as a killing either unintentionally resulting from the careless or unlawful doing of some otherwise lawful act or from the commission of some unlawful act of comparatively trivial character or in the heat of passion and without premeditation. What is said above as to punishment of murder in the second degree applies also to manslaughter. The penalty may range from 1 to 20 years. Assault with Intent to Kill-Under Federal Statutes, assault with intent to kill or to commit a rape is punishable by imprisonment for not more than 20 years, while assault with intent to commit a felony other than murder or rape is punishable by not more than 5 years' imprisonment and a fine of not over $3,000. Rape-In Federal Courts, rape is punishable with death by hanging. Rape is liable in the South and South-west to punishment by death, but in practically all of these states a recommendation by the jury can change the sentence to life imprisonment. Arson-where classified in degrees-though the number and exact definitions of degrees vary greatly-is in general classified with reference to two conditions: first, the character of the building burned, whether a dwelling house or structure likely to contain a human being; and, second, whether the crime is committed by day or night. Thus the most serious offense is the burning of an inhabited dwelling by night, and the least serious, the burning of an uninhabited structure by day. The Federal Statutes for arson in the first degree impose a penalty of not more than 20 years, and for the second degree, not more than 20 years and a fine of not more than $5,000. Arson may bring the death penalty in Alabama, Delaware, Illinois, North Carolina, South Carolina, and Virginia. Life imprisonment or its 20-year equivalent, may result in Idaho, Illinois, Maine, Maryland, New Hampshire, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, West Virginia, and Wyoming. Where death results, arson becomes murder and is tried as such. Burglary-Robbery, and grand larceny, are to some extent interchangeable names and crimes, and carry penalties which range, in many grades, from 1 year to life imprisonment. As in the case of assault with intent to kill, the severity of the punishment as fixed by statute depends on whether the offender is armed, and how armed; and whether the crime is done by day or night; in a building, occupied or unoccupied; or on the street; with or without threat or force. Burglary may fetch a sentence of death in North Carolina, or life imprisonment, or its 20-year equivalent, in Alabama, Delaware, Georgia, Illinois, Indiana, Maine, Minnesota, New Hampshire, Ohio, Rhode Island, South Carolina, and Utah. Life imprisonment, under the Baumes and like laws may result in New York and several other states, in case of prior felony convictions. Robbery may be punished by death in Alabama, and Virginia; and by a life term in Arkansas, Georgia, Idaho, Illinois, Indiana, Maine, Minnesota, New Hampshire, Ohio, Oregon, Rhode Island, South Dakota, and West Virginia. In New York State 15 years is the ordinary maximum; the same in case of burglary. Robbery may be generally defined as the theft of property from the person or immediate presence of the victim, accomplished by force or fear. Where degrees of robbery are recognized, the distinction is generally determined by whether the thief Be armed or unarmed, though some States also distinguish the second from the first degree. where the theft is accomplished by means of threats of future rather than immediate injury. Federal Statutes fix the penalty for robbery at not more than 15 years. Grand Larceny is simply theft of property above a fixed value, generally $25 to $50 more States also classify as grand larceny theft of property from the person of the victim, irrespective of value, though, of course, accomplished without the force, or fear which constitutes the crime of robbery. In the Federal Courts, grand larceny is punishable by not more than 10 years' imprisonment and a fine of not more than $10,000. Grand larceny carries penalties of 1 to 15 years, taking no account of Baumes laws, the maximum being in the State of Washington. In general, the maximum penalty is 7 to 10 years. Forgery in general means the false making, imitating or counterfeiting or alteration of a genuine signature or written instrument. There are numerous Federal Statutes defining and imposing penalties for alteration of public records and documents. Counterfeiting is punished by imprisonment of not more than 15 years and a fine of not more than $5,000. In forgery, as in perjury, it is the intent that counts. Bigamy-A person who, having a husband or wife living, marries another, is guilty of bigamy. Under Federal Statutes, polygamy (or bigamy) in the Territories is punished by imprisonment for not more than 5 years and a fine of not more than $500. Five years imprisonment is the most general maximum penalty in the States for bigamy. and fines are quite commonly imposed. Perjury under the various State codes usually means false testimony on a material point given in an action or proceeding at law. Perjury may bring a life or 20-year sentence in Alabama, Maine, Rhode Island, and South Dakota, if committed in testifying in a case where the defendant at the trial is liable to a life sentence. In New York State, in 1935, the maximum 20-year penalties were reduced by law to 5 years, and the 10-year penalties were cut to 2 years, to induce juries to convict more frequently. Libel or Slander-Libel is injuring by means of publication: slander is injury by word of mouth. Under the terms of a 1930 Act of the N. Y. Legislature, signed by Gov. Roosevelt on April 22, and effective on Sept. 1, an action for civil or criminal libel cannot be maintained against a reporter, editor, publisher or proprietor of a newspaper for the publication therein of a "fair and true" report of any judicial, legislative or other public and official proceedings, or for any heading of the report, provided this fairly reflects the contents of the articles published. The Act also provides that in an action for libel or slander a defendant may prove mitigating circumstances, including the sources of his information and the grounds for his belief, even though he shall have pleaded or attempted to prove justification for the published matter on which the action is based. Major Kidnaping Cases Since 1932 Source: Official Records The major kidnaping cases that have occupied Federal agents since passage of the Lindbergh kidnap law in 1932 follow: 1933 Feb. 12-Charles Boettcher, Denver. March 1. 1936 Released Dec. 26-Charles Mattson, 10, Tacoma. Found dead. Kidnaper escaped. May 27-Mary McElroy, Kansas City. Released May 28. Walter McGee sentenced to life imprisonment. June 15-William A. Hamm, Jr., St. Paul, banker. Released after one week. Alvin Karpis sentenced to life imprisonment. July 10-August Luer, Alton, Ill. Released. Three men and a woman sentenced to life imprisonment. July 22-Charles F. Urschel, Oklahoma City. Released after nine days. George (Macnine Gun) Kelly and five others sentenced to life imprison ment. Nov. 9-Brooke Hart, San Jose, Cal. Killed. Harold T. Thurmond and John M. Holmes, his accused kidnapers, lynched by a mob. Sept. 20-Marc de Tristan, 3, Hillsborough, Calif. Boy recovered Sept. 22, alive and well. Wilhelm J. Muhlenbroich, 39. German immigrant of 1935, arrested, charged with the crime. He was convicted and was sentenced to life imprisonment. On Dec. 26, 1940, in San Quentin Prison, he attempted suicide. There have been in the last year a number of so-called kidnapings, but they were followed by the murder of the victims for revenge and not for money. The victims also were criminals. In sev eral of these cases the bodies were buried secretly at night in places which were not discovered by the authorities until an accomplice confessed. The 1941 Federal Income Tax Source: Official Congress Records normal 4 per cent tax on that amount of income actually earned, but the credit is not allowed in computing surtaxes. It had been estimated in Congress, at the time of the passage of the 1941 law, that it would increase the yearly tax revenue by $3,553,400,000, as follows-corporation, $1,382,100,000; individual, $1,144,600,000; capital stock and gift. $179,900,000; excise, $449,100,000; miscellaneous, $347,700,000. The table shows the increased surtaxes under the bill (surtaxes are in addition to normal tax of 4 per cent on all income brackets): $0 to $2,000. $120 $50,000 to $60,000 $16,180 $25,080 2,000 to 4,000 300 60,000 to 70,000. 47 59 20,880 30,980 4,000 to 6,000 4 13 $80 560 70,000 to 80,000 50 61 25,880 37,080 49,780 The new tax law increases estate taxes as of Sept. 20, 1941, while new excise taxes begin Oct. 1, 1941. The new income taxes fall due March 15, 1942, for income covering the calendar year ending Dec. 31, 1941. In addition, the law increases miscellaneous taxes on a wide variety of items from liquor to telephone calls. Corporations with net incomes above $25,000 a year will go on paying a 24 per cent tax. Those with smaller incomes will pay 15 per cent on the first $5,000, 17 per cent on the next $15,000, and 19 per cent on the remainder. Corporations will pay a surtax of 6 per cent on income up to $25,000 and 7 per cent on all above that amount. On estate taxes, a $40,000 exemption is allowed. Over this, taxes begin at 3 per cent, for the first $5,000 and mount propressively to 70 per cent on estates of more than $10,000,000. The new gift taxes, in effect in January, will be 75 per cent of the estate taxes, as they are at present. On automobiles, the manufacturers' excise tax is increased from 3 to 7 per cent, and, in addition, there is a new $5 yearly "use" tax. The following so-called "nuisance" taxes effective Oct. 1, 1941: Six per cent on local telephone bills, 10 per cent on long-distance calls costing more than 24 cents, and 10 per cent on telegraph, radio and cable messages. Increases from 212 to 5 cents a pound on tires and from 4% to 9 cents a pound on inner tubes. Increase from $3 to $4 in the whisky gallonage tax and increases on other distilled spirits and wine. Ten per cent on photographic apparatus, optical equipment, luggage, sporting goods, toilet preparations, rubber articles, commercial washing machines, electric, gas and oil appliances, jewelry, furs, electric signs, business machines, musical instruments, phonographs and phonograph records. refrigerators, theatre and other admissions costing 10 cents and more and club dues over $10 annually. Five per cent on electric light bulbs. Five per cent on night club bills. Increase from 11 to 13 cents per pack on playing cards. Increase from 11 to 20 per cent on rental of safety deposit boxes. Ten dollars a year on operation on non-gambling coin-operated amusement machines and $50 annually on coin-operated gambling machines. Ten dollars a year on bowling alleys, billiard tables and pool tables. The cumulative surtax on incomes of more than $5,000,000 is $3.723.780 plus 77 per cent of the excess over $5,000,000. FEDERAL GIFT TAXES New rates become effective January 1, 1942. Taxes shown below are computed at rates applicable to gifts made both before and after that date. Regardless of the number of persons to whom gifts may be made in any calendar year, $4,000 of the amount given outright to each person is exempt. In addition, there is a specific exemption of $40,000 which may be taken in one calendar year, or spread over a period of years until the total is exhausted Taxes shown are computed on the assumption that no part of the specific exemption has been taken in previous years and that the gift is to one person. |
