INTERNAL REVENUE
TAX SETS RECORD
Secretary McAdoo's Report
Shows Increased Use of
Liquors and Tobacco.
TOTAL TO BE HALF BILLION
Great Boom in Business and Pros
perity of Country GJven as the
Cause of Remarkable In
crease in Receipts.
WASHINGTON. May 28. Half a bil
lion dollars will bo the Government's
Internal revenue, tax toll for the fiscal
year ending June 30 next, according to
a statement Issued today by Secretary
JIcAdoo. This sum, which Mr. McAdoo
Fays exceeds by many millions all pre
vious estimates, will be made up sub
stantially as follows:
Taxes on whisky, beer, cigars, cigar
ettes and tobaccos, $303,000,000: taxes
on the incomes of individuals and cor
porations, $115,000,000; emergency tax
collections. $83,000,000.
Money Keeps Pouring In.
The volume f money pouring into
the Treasury has steadily increased
month by month since last Fall until
it is- now greater than at any time since
lait Fall, until it is now greater than
at any time since the effects of the
war began to be felt. Mr. McAdoo ac
counts for the situation as follows:
"The great boom in business is
largely responsible for the Increase in
receipts in internal revenue. The pros
perity of the country with the attend
ant wider scope of employment and in
crease In wages, has, in itself, resulted
in a larger consumption of taxable ar
ticles, greatly augmenting the Govern
ment's revenue."
Consumption of whisky, cigars, cigar
ettes and tobacco has increased, accord
ing to revenues received, while con
sumption of beer has decreased. " For
the first ten months of the fiscal year
receipts of taxes on cigars, cigarettes
and tobacco increased $5,505,121 over
the corresponding period a year ago,
due in large part, the statement says,
to the great improvement of business
conditions.
Income from LJquor Gains.
The statement continues:
"Notwithstanding the spread of pro
hibition, collection on distilled spirits
for the 10 months of the current fiscal
year increased $10,013,140 over the cor
responding period of a year ago. This
is due in great measure to the effec
tive enforrcement of the internal
revenue taxes on dlBtilled Bplrlts. It
is estimated that through the cam
paigns of the treasury department
against under guaging, equalizing and
blockading in distilleries, the revenue
of the government has been increased
by probably $5,000,000 annually. .
"The only article of -taxation show
ing a decrease is beer, which is due
principally to the increase In the pro
hibition laws.
"It Is estimated that the expendi
tures from the internal reveue appro
priation for the current fiscal year will
amount to $7,200,000; and even if the
collections amount to only $495,000,000
the cost of collection will be 1.45 per
cent, the lowest in the history of the
internal revenue service. If the col
lections amount to $500,000,000 the cost
of collection will approximate 1.44 per
k:ent."
Mutter of Opinion.
From Harper's Bazar.
"Mary!"
Father's voice rolled down the stairs
and into the dim and silent parlor.
"Yes, papa, dear."
"Ask that young man if he has the
time."
A moment of silence.
"Yes; George has his watch with
him."
"Then ask him what is the time."
"He says it is 11:48, papa."
"Then ask him if he doesn't think it
about bedtime."
Another moment of silence.
"He says, papa," the silvery voice an
nounced, impersonally, "he says that he
rarely goes to bed before 1. but it
seems to him that it is a matter of
personal preference merely, and that If
he were In your place he would go now
If he felt sleepy."
In Naval Terms.
From the Kansas City Journal.
"This is the rhinoceros. See his ar
mored ilde?"
"Urn. And what's this?"
"The giraffe."
Gee! He's got a periscope!"
An Atlanta. Oa., pastor, who has run a
ehoestrlna; of $100 into such real money as
$20,000 by cotton speculations, and who will
row build a trade school for poor children,
liss admittedly manipulated his talent with
all the adroitness and effect one could pos
sibly wish.
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For sample, send 4c. stamps to Emer
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THE
UNITED ARTISANS
INSURE THE WHOLE FAMILY
Four up-to-date Plans Adequate
Rates
Assets Oyer $1,000,000
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EMPIRE BUILDER WHO LIES NEAR
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J.tMES
TRADE IS CAUTIOUS
Business and Finance Are Not
Greatly Worried This Year.
PEACE TALK HAS BEARING
Present Unbounded Prosperity Is
Itegarded as Likely to Continue
for Year at Least, Despite
Campaign Year Traditions.
'BY HAL M. LYTLE.'
CHICAGO. May 28. (Special.) "A
cautious attitude" best describes the
position of business and finance at this
timej' This influence, the near approach
of the Republican National convention
the increasing cost of doing business
and the consequent cutting into profits
and- the-- labor disturbances are ' the
features.
It also must be admitted that the
constant reiteration of "peace talk" is
having some Influence, although - few
business men and bankers can bring
themselves to believe there will be a
stoppage of hostilities in less than an
other year.
Taken as a whole, business and this
is particularly true of the bankers Is
putting its house in order to be abje to
meet any unexpected contingency. A
more opportune time for readjustment,
with prosperity seemingly unbonnded.
could not be found.
Setback Not Expected.
It is agreed there will be no material
decline in general prosperity during
1916. The general opinion is firmly
fixed that American industry has got
too great a swing at this time to fear
a material setback for at least a year,
or perhaps two or three years. There
are two things to be considered in this
connection:
First, how far will the great pros-.
peritv that has come to American pro
ducers since the outbreak of the war
carry them forward. Independently or
future foreign orders for thier goods?
Second, how well are American re
tailers stocked to meet a good-sized
business -during the next year or two 7
War Saves Financial Situation.
Neither of these questiones Is an
swered easily. Of one thing, how
ever, there ls.uttie oouoi. m indus
trial and financial circles. It is the
view that the war rectified a bad do
mestic financial situation, and that it
is owing to it that our wealth nas
been so increased as to create a heavy
domestic demand for all sorts of com
modities. The question remains as to
whether this impetus will be sufficient
to carry us over a protracted period
of greatly reduced foreign demand.
It was not many years ago that busi
ness men invariably would begin to
talk, on the eve of presidential nomi
nations, about the depressing influ
ence which the political conflict was
certain to exert. In such years as
1876, 1884, 1896. and 1900 the cam
paign was accompanied with busi
ness hesitation and severe financial
and Industrial reactions. The tradi
tion that such a situation was to be
looked, forward to was repeated, some
what, in spite of the fact that the
presidential year of 1908 was a year
of revival from the 1907 panic, and
that 1912 was a year of real prosperity
In which It was difficult to discover
the slightest direct influence of home
politics on business.
Big XTpset Not Looked For.
It is recognized that as a general
principle a change in the presidency
may mean a change in legislative
condition, and the financial mind dis
likes a change from the known to the
unknown.
There never has been a presidential
year in which the platform declara
tions of the opposing parties were so
completely in doubt, within a few
weeks of the National convention, as
they are today. Many persons believe
thai the same thing is true of candi
dates for the Republican nomination.
Whatever happens, there seems to be
a general feeling of satisfaction that
neither the "upsetting of the curren
cy." the ripping off of the tariff,"
or 'the prosecution of "big business'
is in the least likely to be a conse
quence of the success of any Presi
dential candidate now actually in
sight.
MISS SILLIMAN IS SILENT
Teacher Only Says "Tilings Are in
Bad Shape in Germany."
ROTTERIUM, via The Hague to Lon
don. May 28. Mis Mary Silliman, the
teacher In the American school for
girls at Constantinople, who was re
leased after being held In Germany on
the charge of espionage, wa a pas-
TITE MOTCNTNG
DEATH'S DOOR AT HIS HOME.
J. HILL.
senger on the steamer Ryndam. which
sailed for New York, yesterday.
Miss Silliman declared she never bad
anything to do with espionage. She
had no complaint against her treat
ment at the ha-nds of the Germans but
refused to narrate her experiences,
"for thft sake of others involved."
Beyond asserting that "things are
getting in bad shape in Germany.
Miss Silliman refused to discuss the
conditions there. She left Constan
tinople about the end of February
after having worked several months
for the American Red Cross. Althougn
she said some of the worst stories of
Armenian massacres are exaggerated,
she declared fearful things happened.
Shei saw crowds of Armenians driven
from the suburbs of Constntlnople
toward the Interior and places the
number of victims at 300.000.
SUNKEN HULL BRINGS $3
ILL-FATED SCHOOLER TO BE RE
BUILT AT COST OF S 35,000.
Vessel Has Record as "Hoodoo" Ship
and Ended Last Voyage at Bot
tom of Porto Rico Bay.
SAN JUAN, Porto Rico, May 15.
(Correspondence of the Associated
Press.) The hull of the ill-fated Amer
ican schooner Forest City, known
among shipping ' men along the At-
I lantlc Coast as a "hoodoo" ship, is to
be raised from the bottom of the bay
here and rebuilt. The Forest City was
burned on New Tear's day, the blaze
being finally extinguished, after burn
ing for 24 hours, by the sinking of the
hull.
Now the hull has been purchased at
public auction for S3, and after a pre
liminary survey the purchaser has an
nounced that the hull will be rebuilt a
cost of approximately 135,000 and
when completed it is believed that the
schooner will earn back her cost in
a very short time.
The Forest City, disabled by storms
ano'wlth more than half of her crew
of 11 ill of berl beri, was brought Into
port on December 13 last, after having
been out 71 days from Calabar, on the
West Coast of Africa. The schooner
was in distress when towed into port,
she was leaking badly, some of her
spars were gone and it was thought
she would have to unload all her cargo
here and go Into drydock before she
could carry cargo again. Her cargo
or paim oil, valued at S125.000. was be
ing unloaded here when she took fire
on New Year's day, and was thought
to have been completely destroyed
when the remains of her hull were
sunk In the bay by the Coast cutter
Itasca.
The fire was not her first bit of ill-
luck. The ship was built at Millbrldge,
Me.. !n 1904 and was first named the
Myrtle TunnelL Before she had sailed
many years, the Myrtle Tunnell had
gone fast on Frying Pan Shoals, off
North Carolina. ano It was several
months before she was pulled off, bot
tom up, and towed Into Savannah to be
rebuilt and renamed the Forest City.
The schooner was twice waterlogged,
and during the Winter of 1912 she was
caught in a gale off the New England
Coast and battered so badly that she
put into Nantucket Sound leaking bad-
y. ner sans mown away and spars
broken off. Her captain was sick and
confined to his cabin at the time, and
ceiore neip couia come the schooner
was frozen tight In the Sound.
Shipping men said the schooner never
made a voyage of any great length
without having something happen to
her.
At the time of the fire. Captain H. B.
Allen was her master, and he was mak
ing his first trip in that capacity. It
Is said that the Forest City was the
third ehip he had lost. She was owned
by Frank el & Co.. and was registered
at Savannah, Ga. The schooner cost
S40.000 to build, and had a cargo ca
pacity of 1500 tons.
J. J. HILL AT DEATH'S DOOR
(Continued From First Pare.)
doctors and surgeons and their assist
ants, v
Last night when a special sedative
was wanted by the surgeons and it was
found that none could be obtained
nearer than Chicago, Louis Hill ordered
a special train on the Chicago, Burling
ton and Quincy to bring the medicine.
The run from Chicago, 431 miles, was
made In 8 hours and 3 minutes, which
is said to have shattered all speed rec
ords between the two cities. After
its arrival at the. Hill residence, the
doctors decided not to use the sedative.
Different From Other Talks.
Chico Tribune.
' Her talk stood out above many oth
ers that have ben given there within
the year, primarily bec"e she said
that which would be of valuo 1 the
students, and then the thing that
marked her. talk far beyond many
others was the fact that she said what
she wanted to say and stopped.
Spain has been practicing; Irrigation for
moM than a century. Its first, canal havlos;
been begun in 1814.
OREGONIATf, MONDAY,
TURKS FEEL THEIR
PART IN WAR IS BIG
Ottomans Become 'Cocky and
Take High Tone, Even
With Germans.
BRITISH FAILURE MARKED
People Who Had no Hope at Start
of Saving: Constantinople Now
. Supremely Confident Russian
Advance Causes No Concern.
BT ARNO DOSCH FLEtTROT.
When Erierura and Treblsond fell
tho British in the Levant expected to
see a panto run through Turkey. I was
trtavelllng along the blockaded Turkish
coast at the time, and I took the word
of the British for it that Turkey would
crush like an eggshell. But Erxerum
and Treblzond fell. and Bagdad
seemed doomed, and yet Turkish com
plscency was not disturbed.
The Russians are following up their
successes now and are advancing
steadily westward, but the Turks seem
to be more cocksure every day. They
are defying all their enemies to com
on, and what is much more signifi
cant, they have given the Germans dis
tinctly to understand that they are
not to interfere in the Turkish show.
The Turks have surprised the L
vant At the beginning they were a
Jelly-like mass and did not know their
own mind. They were so apathetlo
that they let themselves be drawn into
the war by the stupidest of tricks. But
they have met with so much apparent
success since, due to British failures,
that even the Germans hardly find it
possible to liva with them any more.
Fall of Capital Expected.
When the British fleet first began
bombarding the forts at Gallipoli the
Turks were so sure Constantinople
would fall immediately that Govern
ment' officials placed their households
In special trains ready to go. They
had no troops with which to defend
the forts from the land side, and they
tcok It for granted that the British
would disembark troops and capture
the forts from behind.
They were so certain that Constan
tinople would fall that they prepared
to burn the famous mosque known to
th Christian world as St. Sofia. As
they had used it as a Mohammedan
place of worship since the fifteenth
century, they did not mean to have it
fall Into Christian hands again and
once more be used as a church. So
they brought many cases of petroleum
and loads of wood to convenient points
close to tne mosque, ready to be light
ed as the invaders neared the city.
Faith Not Unbonnded.
Nothing now seems less probable to
the Turks than that Constantinople
will fall. Even the steady advance of
tho Grand Duke s Russian army can
not disturb their faith In themselves.
They have prepared positions a hun
dred miles or so to the westward, with
Sivas. In Armenia, as the central point.
and t.lere tney are waiting. The Ger
mat military engineers advised them
months ago not to attempt to hold
Erzerum, but to retire to Sivas, where
the lay of the land" gives the Turk
an almost Impregnable line. They are
doing it now, fighting as they go, and
the Russians will have to crush tha
line before the Turkish Empire begin
to break up. It is a long way from
breaking up right now.
Last Winter there were perslsten
rumors that the German General
Mackensen was headed into Asia Mino
witn an army corps. As a matter o
fact he went down through the Bal
kans with the intention of taking an
army corps into Asia Minor, but the
Turks flatly refused to let him go,
and he had to swallow their refusal.
Germans Lose Hold On Turks.
ine Germans have- not nearly so
strong a hold over the Turks as
commonly believed. In fact, the Turk
are very "cocky" with the Germans,
and the Germans find it advisable to
step gently about Constantinople.
The Turks have acquired their cocki
ness during the war. The British, by
their series of absurd blunders at Gal
lipoli and In Mesopotamia, have . done
most to give them their assurance, and,
as there were also French troops at
Gallipoli, they feel that they have
whipped the French, too.
It is apparent now that the Turks
had no intention of attacking the Sues
Canal last Winter, but they bluffed
the English Into thinking so and keep
ing half a million men in Egypt all
Winter, and they are vastly pleased
with the success of their ruse.
If the Russians are advancing stead
ily into Turkey it is taking a large
army to do It, and there again troops
are removed from Europe. The Turks
feel sure that the Russians will never
get west of Sivas, and meanwhile they
can point out to the Germans how they
are keeping Russians engaged. Alto
gether the Turks by being in the war
are keeping over a million of allied
troops and a large proportion of the
allied fleets busy, and they are in a
position to "talk. Turkey" with the
Germans.
'CITIZENS' NUT DEFINED
DISCHARGE OF FIVE NATURALIZED
AMERICANS CAUSES STIR.
Refusal of Secretary Baker to Permit
Forelarn-Born Persons on Mine
Layers Aired In Congress.
OREGONIAN NEWS BUREAU, Wash
ington, May 25. Representative John
son, of Washington, sought ineffectu
ally to inject into the Administration's
shipping bill an amendment which
would have the effect of declaring, so
far as that bill is concerned, that tio
word "citizen" should mean either
naturalized or native born citizens. The
amendment was voted down and the
bill stands "citizens." leaving It to Ad
ministrative officers of the Government
to say what an American citizen
shall be.
The Johnson amendment was prompt
ed by the recent order of the Secre
tary of War ordering the discharge of
five naturalized American citizens em
ployed on a mine layer, and direct
ing that on that ship or ships of that
t pe only natural born Americans here
after be employed. In the discussion
of Mr. Johnson's amendment, attention
was called to the fact that the Presi
dent has In his own Cabinet two nat
uralized Americans, both of them full
fledged American citizens, notwith
standing their foreign birth, one tne
tiftcretary of the Interior, who was born
in Canada, and the other the Secretary
or - born in Scotland.
Attentfon RrC; a-. called to the fact
that there are quite a naturalized
Americans in the American Cor. . -and
all through the Government serv-
ice, and as Representative Greene, cf
Vermont, pointed out, during the Civil
J War tho United States jladly accepted
MAT 29, 1916.
it tfUtUi? Eft 5553 fiimti H
gggj res-tied on 1he ocean m a spot so for a v-And". ffi fy
HI McCrmack j p
Victrola
The instrument of the world's greatest artists IpMi
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- played only with Victor "vV'W to- , i
r Fimdlmm or Tangm-tonm P ii VVf V rZ-ZTi
5 7 - Stylum on Victors or llV5rVJ TLtT
Victrolas. Victor Rec- jL.Ji TnP pZ
IF ords cannot b safely WfRREHRATM rTuftpHY Es
fT;-1 -: played on machines 1 9y , , ,', -1
B - with jeweled or other N, e-i . : -
reproduclns; points. s"sj' J'-.Jsa.:l; ;,t, ' -
littllf (fyli To fasur. Vlrtor quanta I : i 11
; ,- I feS-! Vvi . Ill look for tha famous trademark. S-Slilfl') i'V- '''. r '
. I lygf&--grgS! J W "His Masters Voice." Every liiJlM,' ' ; :
l' SI l iS3 S f f Victor. Victrola and Victor I?llS! ll'Mli I i' r i i
' NvOfL? rSi Ktxo'd b'r jt- You instantly J2 1 ( L Ul ! S
identify the ceoulaa. s f
the services of such eminent foreign
born Americans as General Slegel and
Carl Schnrz. Voicing his protest
against the order of the Secretary cf
Wtr, Representative Johnson said:
"Inasmuch as the distinguished Sec
retary of War, the Honorable Newton
D. Raker, has issued an order, under
date of April 24. calling for the dis
charge of all members of certain crews
who are not citizens of the United
States, and inasmuch as the Secretary
of War has stated positively in that
order that by citizens he means native-born
citizens. It seems to be nec
essary to offer this amendment. Tha
word 'citizen' appears all through this
ship purchase bill, and the word means
in the United States what It has al
ways meant until the present Secre
tary of War Issued an order making a
distinction between native-born and
naturalized citizens. I have shown the
Secretary's remarkaiblo order to a num
ber of members of the House of Rep
resentatives, all of whom at first said
it was impossible that any such order
could have been issued; that there had
been some mistake. But there is no
mistake. I have seen the orier. It
has resulted, to my knowledge. In the
dismissal of five citizens, naturalized,
if you please, but citizens of the United
States nevertheless, employed as sailors
on a vessel of th United States in
Puget Sound doing Government work
for the War Department. The first
man who signs the protest to me is
John W. Carlson, born in Finland. The
second is Alfred Christianson, born In
Denmark.- The third is I Hermansen,
born in Norway. Tho fourth man is
Carl Thomasson, born in Norway, and
the fifth is William Matheon, born In
Finland. All are naturalized citizens.
Some have been citizens for . man
years.
"Mr. Chairman, fifteen and one-half
millions of people of the United States
are foreign born. Most of them are
naturalized. This order seems to dis
credit the loyalty of every one of them.
It seems to say that their oaths of al
legiance mean nothing. Twenty-seven
per cent' of the population of the dis
trict I -have the honor to represent
here Is foreign born. Nearly all of
them have been naturalized and have
taken the oath of allegiance to the
United States, and I firmly believe that
every last one of them meant that oath.
Other members of Congress will make
similar affirmations corce-rning the
naturalized citizens in their districts."
Panama Cana Slides.
Roch
. liJ- v.4 Democrat and Chron-
. Ici.
Major-General George W. Goctnr
"A Little Bit of Heaven"
The most beautiful Irish ballad in years sung
by the greatest Irish tenor.
Let John McCormack bring it to you on the
Victrola.
When you hear it on the Victrola you really
hear him sing- it. For McCormack makes Victor
Records only. And they are to be played on the
Victor and Victrola only. And with Victor Needles
or Tungs-tone Stylus only.
With this complete combination you hear
McCormack at his best.
In the Victor Record catalog there are listed one hundred and
eight McCormack records. Any Victor dealer will gladly play
for you any of these records, or Victor Records by any other of
the world's greatest artists.
There are Victors and Victrolas in great variety of styles
from $10 to $400.
Victor Talking; Machine Co., Camden, N. J.
New Victor Records demonstrated at all sealers on the 28th of oach moats
Governor of the Panama Canal Zone,
recently gave the Christian Science
Monitor an explicit account of the
causae of the great slides which have
given so much trouble to him and his
engineers. To illustrate the natural
law which the unstable banks follow
In their movements. General Goethals
cites the fact that In building up an
unconflned pilo of sand on level ground,
as new material is added to the top
there Is a movement in the sides which
continues until the slopes reach what
Is called "the angle of repose."
If. Instead of making a pile, a trench
Is cut through a natural pile, the sides
will move until the angle of repose is
attained. If the cut is made through
material which rests on an inclined
surface, the mass will elide down even
with the trench, and if the mass Is on
soft ground the soft material will be
squeezed out in a hump or mound at
the top of the slope.
It is this unsqueezing of mud In the
canal prism which has made all the
trouble. It is stated that steps will be
taken which will prevent the recur
rence of the upheaving of the canal
bottom. Precisely what will be done
Is not disclosed. But It is known that
practically the only effective remedy is
to reduce the load on the banks.
War in a Nutshell.
Chicago Journal.
Here Is a Chinese student's summary
of the war's causes, as published In a
Shanghai paper: "Now there is a great
battle In Europe. This began because
the Prince of Austria went to Serbia
with his wife. One man of Serbia killed
him. Austria was angry, and so write
Serbia. Germany write a letter to Aus
tria, 'I will help you." Russia write a
letter to Serbia, 'I will help you.' France
did not want to fight, but they got
ready their soldiers. Germany write a
COLUMBIAN NATIONAL LIFE
of Boston, Mass.
INSURANCE IN FORCE 67 MILLION DOLLARS
Old-Fashioned Contracts for Producing Agents
D. C. HERRIN, General Agent, 503 Spalding Building
letter to France, 'Ton don't get ready,
or I will fight you in nine hours." Ger
many, to fight them, pass Belgium. Bel
gium say. 'I am a country: I am not a
road.' And Belgium write a letter to
England about Germany, to help him.
So England help Belgium." Who can
do better In the same space?
Man led for Money. ,
Philadelphia Ledger.
He Tou used to say there . was
something about me you liked.
She Tes, but you've spent it all
now.
E
I
PERFECT"
COLLARS
PALACE
LAUNDRY