Morning Oregonian., May 10, 1917, Image 1

J
VOL. LiVII NO. 17,618.
PORTLAND, OREGON, THURSDAY, MAY 10, 1917.
PRICE FIVE CENTS.
BILL PROVIDES
TAX ON ALL
WAR
HOMES
Levy on Light, Heat
and Phone Provided.
MEASURE REPORTED TO HOUSE
Big Incomes and Excess Prof
its Are Hit Hardest. .
U-BOAT IS FIRED ON
BY AMERICAN LINER
SUBMARINE DISAPPEARS AXD
FATE IS UNCERTAIN.
BOTH PARTIES BACK
BILLION FOR SHIPS
MOST LUXURIES INCLUDED
Fight Against Passage Expected at
Senate Hearing; Per Capita Will
Bo $33 Against $60 Paid
by British Citizens.
TTASHINGTON, May 3. The war
tax bill, extending its excises to the
fabric of every American, home, was
formally presented to the House today
by the Ways and Means Committee,
with plans for quick passage.
As a forecast of what may come
later, it proposes special taxes to
raise $1,800,000,000 in addition to the
present normal annual revenue of $1,
500.000,000. When its terms are ef
fective the American people will be
paying- direct taxes of $33 per capita,
The people of the British Isles half as
many now pay per capita taxes of
$60.
While the principal features of the
new war levy are the increases in in
come and profits taxes, increases in in
ternal revenue rates and Increases of
customs duties, many provisions reach
the innermost structure of every home
and make up a list of taxes, probably
the most formidable ever faced by the
American people.
Household Bills Affected.
The household light, heat and tele
- phone bills, admission tickets to
amusements, fire and life insurance
railway tickets, automobiles, automo
bile tires and tubes, soft drinks, post
age rates, golf clubs and baseball bats,
club dues and a host of other every
day necessities or luxuries, come under
the taxation.
Increased postage rates on newspa
pers, arranged in a zone system, are
such that publishers say they will
force many newspapers out of bust
ness. Already protests against many
features of the law are pouring in
and attacks upon it will center in the
public hearings before the Senate
finance committee.
Opposition la Expected.
One of the hardest fights on the bill,
It is predicted, will center about the
increases in the excess profits tax.
sew Income tax schedules also may
meet stubborn opposition. Committee
explanations of the involved language
ef the Income tax section show that
its practical operation would be as
follows:
it proposes a normal tax or 2 per
cent on individuals having incomes
between $1000 and $3000, if single, and
$2000 and $4000 if married or the head
of a family. An additional normal tax
of 2 per cent, would be added In the
case of larger incomes. At $5000 an
additional surtax, graduated until at
$500,000 and over it reaches 33 per
cent, would be imposed.
75O0 Incomes Pay S205.
A married man with a $7500 income,
for example, would pay a tax of $205.
It would.be assessed in this manner
An exemption of $2000; a tax of 2 per
cent, or $40, on the next $2000 up to
$4000; a tax of 4 per cent on the dif
peiwcen atuuv ana tibuo, or
$140; a surtax of 1 per cent on all
over $5000, or $25.
A single man with a $7500 incom
would pay $245. He would pay $40 at
2 per cent on income between $1000
and $3000; $180 at 4 per cent between
$.".000 and $7i00, and a sur tax of $2
at 1 per cent on the $2500 above $5000
Sur taxes under the present law do
not begin until $20,000 is reached, an
exemptions begin at $3000 and $4000
for single and married persons expec
tively.
uemocratlc leader Kitchln an
jiounced that he hoped to pass the bill
by Saturday.
nondj to Provide Half.
In introducing the bill the-war com
mittee made a report saying in part
"After carefully considering the ex
perlencc of the Kuropean countries
war the committee believes it is soun
economic policy for the present gen
eration to bear a fair portion of th
burden of financing the war, an
recommends that the remaining con
"-templated expenses of the Government
for the remainder of this and the whole
of the next fiscal year be raised by
taxation.
"The effect of this recommendation
Is that about ' one-half of this con
templated expenditure will be met by
taxation and the other half from the
proceeds from bonds.
S33 Per Capita Is Kstlmate.
"It is estimated that the receipts of
the Federal Government, including
postal receipts for the next fiscal year
tinder existing law, will amount to
$1,500,000,000. The proposed bill is esti
mated to yield during a 12 months'
period $1,800,000,000 additional. This
will make the total receipts of the
Government for the next fiscal year
$3,300,000,000, or about $33 per capita,
as compared to Great Britain, with a
population less than half that of the
United States, whose receipts. Includ
ing postal receipts, for the year ending
S.'x Shots Sent After Enemy En
countered Off Coast of Ire
land May 2.'
NEW YORK, May 9. An armed
American, line steamship which ar
rived here tonight from an European
port reported that her gun crew fired
six shots at a German submarine off
the coast of Ireland May 2.
The undersea boat immediately sub
merged and it was not possible to de
termine whether any of the shots took
effect.
The periscope of the submarine was
sighted about 6 P. M. and the Ameri
can vessel immediately swung around,
to afford the gunners an opportunity
for accurate aim. The under-sea craft
disappeared simultaneously with the
firing of the first shot, it was said.
nd did not reappear. The American
hip then proceeded on her course.
NEW YORK, May 9. An officer on
British passenger steamship arriving
ere today from Europe said a subma
rine was sighted "far west oi tne
submarine zone." He refused to state
which way the under-water boat was
moving, and his fellow officers and
the passengers declined to discuss the
Bubject except to assert that the pas
senger vessel was not molested.
It was learned, however, that the
British passenger ship was five days
out from England when the submarine
was encountered. She was observed to
emerge from the ocean about three
miles distant. The British commander
immediately ordered a zigzag course
and trained his guns to shoot, but the
submarine at once submerged.
Administration Bill to
Be Offered at Once.
GREAT FLEET CONTEMPLATED
Design Used Successfully on
Pacific Coast Favored.
YARDS TO BE RUSHED
WAR CHICKS HATCHED FREJ
Medford Postoffice Incubator
Service of Public.
at
MEDFORD. Or., May 9. (Special.)
Five thousand little "war chicks" will
soon be chirping, in the basement of
Medford's new Federal building, as a
testimonial of the Government's will
ingness to aid the local movement for
increasing the food supply during the
war.
Assistant Postmaster Warner is the
originator of the idea.
Captain A. J. Vance recently Invented
the electric incubator, which is said
to be one of the best incubators on the
market. Every citizen of Medford is
allowed to have from 30 to DO eggs in
the Federal hatchery, there being no
expense to them other than the orig
inal price of the eggs.
UNCLE SAM IS YE EDITOR
News'
to Be Mailed to Press With
Request to Reprint.
WASHINGTON, May 9. Beginning
tomorrow the Government will Issue
daily newspaper giving news and an
nouncements of all departments relat
ing to war preparations. The publlca
tion, known as the Official Bulletin,
will be issued under the direction of
the committee on public information
and will be mailed to all newspapers,
commercial organizations or others re
questing it. Postmasters have been
directed to post it daily in their of
fices.
A weekly bulletin also is planned
especially for issuance to weekly news
papers, which will be asked to copy
as many items as possible.
BROCCOLI MAY BRING $1.20
Reports From Chicago Indicate Drop
of Cent a Crate From Last Year
ROSEBUKG, Or.. May 9. (Special.)
Returns thus far received from th
Chicago wholesale merchants lndicat
that the Douglas County broccol
growers will net approximately $1.2
for this year's product. This is one
cent a crate less than received by the
growers here last season.
Because of the backward Spring, the
quality of the broccoli this year was
not as good as in previous seasons.
Seventy-five cars of the product were
shipped from Douglas County, prac
tically all consigned to Chicago.
HIGH PRICES FORCE HARVEST
ING OF POOR YIELD,
Government Would Have Power to
Tako Over Any Plants and to
Divert Others to Turning
Out Needed Materials.
WASHINGTON. May 9. Leaders of
both parties in Congress at a confer
ence with President Wilson . today
promised to support the Administra
tion's billion-dollar shipbuilding pro
gramme. Bills will be Introduced im
mediately to give the Shipping Board
$500,000,000 for construction of a great
steel and wooden cargo fleet to run
the German undersea blockade and the
remainder of the money will be appro
priated whenever needed.
"The billion dollars asked for ship
building is a mere trifle compared with
what the allies are spending In con
duct of the war," said Chairman Den
man, of the Shipping Board, after the
conference. "It may be far below the
amount we shall have to spend for
ships before the war Is over. The
Board aims to produce all the shipping
American yards can turn out at forced
speed and ask for more money when
the billion is exhausted."
Power to Commandeer Asked.
The shipping measures will be com
pleted within a few days. They would
empower the Government to take over
shipyards and the output of steel mills,
if necessary, but the Administration
believes such a power will not have
to be exercised.
The Shipping Board plans to clear
shipyards of construction actually un
der ,way, then to let contracts for
standardized steel cargo vessels, all
built alike and of a design permitting
minimum time for completion. It
probably will adopt one of four de
signs already submitted. One of these,
for a ship of 8800 gross tonnage, is
especially favored. It has been built
successfully already on the Pacific
Coast.
Building operations will be under the
direction of Major-General George W.
Goethals, manager of the Board's
emergency ship corporation, who also
has charge of the wooden shipbuilding
programme. The present corporation
will let contracts for the steel ships
also.
Railway Man Is Director.
The Board is empowered to operate
ships itself or to charter or lease them,
and although no programme has been
decided on definitely, it probably will
Mrs. H. M. Olden, lone. Reports
Farmers Are Planting All of
Idle Land to Food.
The high price of wheat has been
nstrumental In prompting threshing
activity on an Eastern Oregon ranch
where the crop-was left standing last
Fall because it was not considered
profitable. Thla Interesting report was
made in Portland yesterday by Mrs.
H. M. Olden, wife of one of the large
wheatgrowers in the wheat, belt about
lone.
The scene of the threshing at this
unusual season of the year ia the place
of Edgar Bell, at Eight-Mile, which, is
about 14 miles southeast of lone. .
'The harvesting in our country was
unusually late last Fall, some of the
threshing being as late as Christmas,"
said Mrs. Olden yesterday. "On ac
count of the lateness of the season and
the fact that the crop did not promise
a large yield, Mr. Ball did not consider
it worth while to cut his wheat.
"With wheat now selling for $3.68 In
our locality, Mr. Ball considers that
he can well afford to have his fields
harvested. They are yielding a return
of six or seven bushels to the acre.
"The farmers in the lone country
are putting in all available land to
crops. There is now plenty of moist
ure and conditions of weather and the
prices alike are favorable to large pro
duction."
(Concluded on Page 8. Column 2.
FALL WHEAT CROPS
THRESHED IN MAY
62 BRITONS SUNK IN WEEK
Falling Off in Loss of Tonnage by
Submarine Attacks Shown.
LONDON, May 9. Twenty-four Brit
ish merchant vessels of more than 1600
tons each were sunk during the last
week, it was announced officially
Twenty-two vessels of less than 1600
tons and 16 fishing vessels also were
sunk.
A falling off in the loss of British
shipping is shown in this report- Last
week's statement gave the number of
lost ships of more than 1600 tons as
38, under 1600 tons as 13, and fishing
vessels as eight.
LIBERIA BREAKS RELATIONS
Negro Republic Removes Cable Fa
cilities From German Control.
BALTIMORE. May 9. Announc ement
that Liberia hA severed diplomatic re
latlons with Germany was received
here today by Ernest Lyon, Consul-
General of the negro republic.
He said the break carries a practical
advantage to the entente allies because
it will remove from German control
the wireless telegraph and. cable facill
ties of Liberia.
PROHIBITION BILL OFFERED
Redistillation Allowed for Manufac
ture of Explosives.
WASHINGTON. May 9. A bill pro
hibitlng the manufacture, sale, trans
portation or exportation of beverage
alcohol In war time was introduced In
the Senate today Jy Senator Kenyan.
It would permit redistillation for
the manufacture of explosives.
MILLION
GOTHAM
WELCOME FRENCH
BUCHTEL OPPOSES
RISE IN FREIGHTS
CAR, SHORTAGE SHOULD CAUSE
REDUCTION, HE DECLARES.
Joffrp V-- wnelmed
b; uemonstration.
GREAT BUILDINGS ENTRANCE
Ex-Ambassadors to France
and Britain Meet Farty.
LIBERTY STATUE SALUTED
Broadway Is Choked by Thousands
That Crane Necks to Get Brief
Glimpse of Hero or Marne
and ex-Premlcr Viviani.
NEW YORK. May 9. New Tork sur
rendered unconditionally late today to
Joseph Jacques Joffre. Marshal of
France, and the French war commis
sion. Not only did the world's largest
city capitulate to the hero of the Marne
and to Ilene Viviani. ex-premler of
France, who headed the war mission
to the United States, but It accorded
them a triumphal entry.
Never have visitors to New Tork re
ceived so tremendous a welcome. At
loast a million of its citizens turned
out to pay homage to the great soldier
and the great statesman of a sister re
public.
Mission Overcome by Demonstration.
Accustomed as they have become to
demonstrations of estc?m since they
set foot on American soil, the French
men were overwhelmed at the demon
stration accorded them by New Tork,
They did not try to hide the- emotion
they felt.
From the moment they alighted in
Jersey City from the closely guarded
special train which brought them from
Philadelphia, until they retired tonight
in the. Fifth-avenue mansion of Henry
C. Frick, they were not permitted to
forget that New York was proud to
have within Its gates the representa
tives of the best-loved ally of the
United Statr-e.
- Her Impressed by' err Tork.
When the- distinguished Frenchmen
caught their first glimpse of the sky
line of New York from a ferry in the
harbor. Marshal "Joffre sce-med en
tranced as he gazed at the mountains
of steel and masonry which rose be
fore him. He answered questions in
monosyllables and did not look at those
who spoke' to him, but kept his gaze
riveted on the shore of Manhattan.
When he had landed and entered an
automobile the Marshal raised his head
and seemed to be- counting the number
of stories in the towering Whitehall
building.
The members of the mission caught
their first glimpse of liartholdi's fa
mous Statue of Liberty as they crossed
the Hudson River. Viviani and Joffre
stood at the rail, the former In silence
with his hat at his tide, the soldier
at salute.
Frenchmen were arreeted by a reeep-
Public Service Commissioner Says
Railways Arc Offering Nothing
to Aid Suffering Shippers.
SALEM. Or.. May 9. Special.)
There will be no increase of rates on
intrastate traffic, as desired by the
railroads, until the car-shortage con
ditions in Oregon are alleviated, if
Public Service Commissioner Fred G.
Buchtel, of Multnomah County, can help
it. according to an Interview which he
gave out today. In fact, he declares,
the Commission would be justified In
reducing rates to correspond, with the
Inefficient car service which has been
furnished by the carriers for the past
two years.
"During the past few years reason
able freight rates have been enjoyed
by the carriers and their earnings have
been huge. Nevertheless, shippers have
not received a return in service.
Shippers have sufferid from the worst
car shortage in history, as nearly as I
know, and enormous business losses
have been suffered.
"Enjoying almost unexampled pros
perlty, the railroads are asking for a
gigantic rise In rates and offering
nothing In return to alleviate the suf
ferings of the shippers.
'I certainly am oppesed to giving
them any consideration in the line of
freight rate Increases until they meet
the car-shortage situation and over
come it." Mr. Buchtel concluded.
DEADLOCK ON ARMY
BILL IS INDICATED
Senators Ready to End
Joint Conference.
T. R.'S ARMY IS CHIEF ISSUE
Section Providing for Prohibi
tion at Camps Obstacle, Too.
HOUSE IS OPPOSING BOTH
NEW RADIO PLANTS STRONG
Messages May Be Sent Around Earth
by Federal Wireless.
SAN FRANCISCO. Cal.. May 9. (Spe
cial.) The United States Government
has now under construction the most
powerful wireless stations In the world,
and will soon be able to send wireless
messages around the earth, according
to W. W. Hanacomb. president of the
Radio Society, who addressed the Jo
vian League at the Palace Hotel today.
"These stations are of 350 kilowatt
capacity," he said, "and will connect
all the United States colonial pos
sessions. They will be of great help
In the present emergency, and in the
future."
Concluded on Page 4. Column 2.
iConcluded on Fare 2. Column L
BEAN WAREHOUSE ASSURED
Granges Form Company to Finance
Storage Plant at Eugene.
MM
EUGENE. Or., May 9. Steps for the
erection of a co-operative warehouse
In Eugene to be supported by the
various granges tributary to the city
have progressed far enough to warrant
the incorporation of a company with a
capital stock of $5000 to finance the
project.
Equipment, especially designed for
the moat efficient handling of the bean
crop, which this year will be largest
in the history of Lane County, will be
provided.
CHURCH OFFERS REGIMENT
Dr. Matthews Would Enlist in Home
Guard to Be Formed.
SEATTLE, Wash.. May 9. The First
Presbyterian Church of Seattle, which
has a membership of 6300 and is said
to be the largest congregation of this
denomination in the world, is taking
steps to organize a home guard regi
ment of its men who are exempt from
conscription.
The pastor. Dr. Mark A. Matthews,
formerly moderator of the general as
sembly of the Presbyterian Church in
the United States, offers to be enrolled
in the regiment.
i
THE NEW AUTOCRAT OF THE FAT MAN'S BREAKFAST TABLE
... ............
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J 1 !
WOMEN MAYRUN CARS
Seattle Officers Predict Change
"Long Before War Is Over."
SK ATTLK. Wash.. May S. Officers
of the Puget Sound Traction. Light &
Power Company, operating the princi
pal streetcar system of Seattle, say
they expect women will be operating
streetcars here long before the war
period is over, and possibly before the
present year ends.
There is a shortage of men already.
Brigadier-General R. Lodor Dead.
NEW YORK. May 9. News was re
ceived here today of the death of
Brigadier-General Richard Lodor, U. S.
A., retired, in the naval hospital at
Norfolk, Va. General 1-odor was an
artillery officer in the Civil War.
INDEX OF TODAY'S NEWS
The Weather.
TESTER. HAT'S Maximum temperature.
3S
degrees: minimum. 4!t degrees
TODAY'S Fair; westerly winds.
War.
Kaiser prepared to critics nis allies. If
necessary. Pass 4.
Canadians pouring shells Into vlllsge wnssted
from them. Page 8.
Hopeless deadlock on Army bill Indicated.
Page 1.
Herbert C. Hoover advocates central food
department. Fag-e
British Admiral confident XJ-boata will be
defeated. Pane 4.
Liberty loan bonds range from $30 to $100,-
000. Pass 7.
Creation of war cabinet la possible. Page 5.
American liner fires on U-boat. Pace 1.
National.
Both parties support Administration's bil
lion-dollar bill tor cargo 1 1 ret. rm I.
Bill provides war tax on every home.
Page 1.
Western railways take up plea for rate in
crease. Pane a.
Increaaed postage on newspapers criticised.
Page 4.
Million in New Tork welcome French mis
sion. Peso 1.
Tomet 1c
Virginia professor acquitted of charge of
murdering student. Page
Sports.
Pacific Coast League results? Portland a. Los
Angeles 4: !-alt Lake R. Pan Francisco O;
Oakland 4. Vernon 3. Page 10.
Catchers often mske best baseball mansgera.
Page 10.
Salt ltke Bees aet faat pace." Page 10.
Commercial and Marine.
Three-dollar wheat is reached In North Coast
markets. Page
Crop report responsible for further advance
In wheat at i nicago. t-age I
North jetty ia officially reported completed.
Pago 14.
Recruiting of engineers starts here Satur
day. Page 16.
Wsr tax proposals cause heavy selling of
stocks. Psge 19.
Pacific North wee.
Author of bill to tax grant lands says in
Junction suit reveals desperation of Pinch
otttes. Page 6.
Smith mill worVere and company officials
confer over strike, but rearh no agree
ment. Pago 6.
Counties rapidly perfect agricultural defenae
councils. Page 7.
Commissioner Buchtel opposea tntraat
freight rise. Page 1.
Newberg and McMtnnvllle. hear food lec-
turera. Page 6.
Portland and Vicinity.
Portland's wood supply CO per cent short.
Page 6.
Commissioner Blgelow Issues statement of
comparative cost ot operating elty.
Page S.
Commissioner raly wants to submit unknown
plan to voters. Page 8.
Fall wheat crop near lone Is being threshed
now. Page 1.
War census machinery to aet up all over
states. Page so.
J. T. Farrell says amateur farmers yet have
time to plant food crops. Page 11.
Farmers to hold maae meetings to lay plans
to increaae iooa production. .Page 11.
Masonic midnight rltea for General Ander
son will bs held tonight. Page 16.
Weather report, data and forecast. Psgs 10.
Agreement on Age Limit Might Bo
Reached if Other Obstacles Are
Removed Committee May
Request Instructions.
WASHINGTON. May 9. Another day
of conference on the war Army bill
ended with Senate and House con
ferees still far apart on several dif- '
ferences in the bill as It passed the)
two houses. Another effort to get
ogether, probably the last, will be
made tomorrow.
There was evidence tonight that the)
Senate conferees were about ready to
report a deadlock and ask for fur
ther Instructions. They are insisting;
on the Senate provisions to enforce
prohibition at Army posts and to per
mit Colonel Roosevelt to raise a divi
Age Limit May Be Agreed.
The differences in the age limits of
hose subject to the selective draft.
21 to 27 In the Senate and 21 to 40
In the House bill also arc still dis
puted, but they probably could be ad-
usted If the other two Issues were
out of the way.
Senators on the committee feel that
unless the Administration exerts strong
pressure the Senate will insist on re
taining the Roosevelt amendment and
the House members are of the decided
opinion that the House will not ac
cept It.
There have been all sorts of sugges
tions of trades and compromises, but
none has been accepted in a case where
both committees feel that a question of
principle is involved.
Senate Is Only Hope.
The only hope held out for a com
promise was said to be based on the
chance that the Senate might recede
from its position on the question of
Colonel Roosevelt's division. In that
rase, it was said, the House conferees
might accept the Senate amendment
fixing the age limit of those subject to
selective draft at 21 to 27, In lieu of
the House provision fixing it at from
21 to 40.
Failure to reach an agreen.ent prob
ably will necessitate the sending of the)
bill back to the two houset for further
instructions.
The conferees today agreed upon a,
provision to Increase the pay of en
listed men to $2a per month and In
crease the pay of other grades below
commissioned officers, but not propor
tionately.
RICH SEATTLE MAN SUICIDE
Max Freed Telephones Friend
Intention to Kill Himself.
of
SEATTLE. Wash.. May 9. Ma
Freed, a wealthy business man of Se
attle, shot and killed himself today in
his office after telephoning to a friend
that he was about to commit suicide.
The friend Immediately telephoned tq
the police station and a motorcycle po
liceman found Freed dead.
Freed owned a valuable ranch near
Seattle and much property In Frlnce
Rupert and elsewhere In British Co
lumbia. He was formerly a furniture
dealer in Vancouver.
L0C0M0TIVEJS BLOWN UP.
Kngineer Instantly Killed, and Two
Firemen Hurt.
TACOMA, Wash.. May 9. Through,
some cause as yet unknown, the engine
on a Northern Faciflc train blew up thla
evening at the station of Kennedy and
Instantly killed Frank Thompson, of
Tacoma. engineer.
Two firemen, badly injured, are In
the Northern Pacific Hospital here and
others are believed to have been hurt.
CADETS TO BE GRADUATED
First Class at West Point to Get Di
plomas August 3 0.
NEWBURGH. N. T.. May 9. Colonel
Guy V. Henry, commandant of cadets
at West Toint. announced the receipt
today of an order from the War De
partment directing the graduation of
the first class of cadets on August SO.
There are 154 men In the class.
MARINE CORPS ABOVE LIMIT
Enlistments Total 18,951, With
Authorization but 17,400.
WASHINGTON. May 9. Official an
nouncement was mu.de today that the
Marine corps now contains 1S.951 men.
Its authorized strength of 17,400 was
passed May 1.
A bill to authorise a strength of 30,
000 is pending in Congress.
JT1 1Q9.2