Morning Oregonian., October 13, 1920, Page 19, Image 19

19
nnrnnuT tav i aim
"CAVE-MAN STUFF" LANDS
JILTED SUITOR IN COURT
Clara Bakke Responds With Summons to Visit Judge When Former
Sweetheart Pleads.
jnLflLiiii i ha im
THE MORNING OREGONIAN, WEDNESDAY, OCTOBER 13, 1920
BREEDS HARM, VIEW
Ills of Revenue Measure Di
agnosed by Otto H. Kahn.
BURDENS HELD UNJUST
System Declared to Have Resulted
In Mounting Costs Without Aid
ing Intended Beneficiaries.
. This Is the first of a series of articles on
"Faulty Taxation" prepared by Otto H.
Kahn. noted financier and head of Kuhn
Ivoeb &. Co. The aolution of the problem of
taxation has a very large bearing on the
nation's prosperity and progress. Mr. Kahn
makes plain many evils now existing and
suggests ways ana means to eltect re-
lorxus.
ii
o
BT OTTO H. KAHN.
Article L
In criticising the faults and point'
Ing out the harmful effects of our
existing system of taxation I am only
too well aware that the task I have
chosen for myself Is not only a rather
ungrateful one, but that my motives
are likely to be misunderstood, as is
particularly apt to happen In the case
of suggestions which emanate from
those whose habitation is south of
Fulton street In the borough of Man
battan.
At the outset let me make plain
that I advocate no plan of taxation
calculated to spare wealth; for to do
so would be both wrong and fatuous;
but rather one which is based on
ctound economics, with due regard
for practical experience, public ad
vantasre and social Justice.
I have the melancholy satisfaction
of knowing that, in the main, the
warnings which I ventured to express
when the first war revenue measure
was under consideration of congress
in the spring and summer of 1917
have been all too fully borne out by
he facts.
The' right solution of th problem
of taxation has a very large bearing
upon the nation's prosperity and prog
ress. History shows that wrong eco
nomics, however well lntentioned,
have been more fruitful of harm to
the people than almost any other
eingle act of government.
I can only hope that those who will
read these articles will credit me with
the intention and purpose of speaking
to the best of my conscience and
judgment from the point of view of
the general welfare of the entire
country, and not of the particular
welfare of the well-to-do.
But, in any event, the question Is
not what are the motives from which
my arguments and conclusions spring,
but, whether those arguments are
sound and those conclusions Justi
tied.
Diplomatic Errors Manifest.
Most of the causes contributory to
the existing era of economic disturb
ance and high prices, such as the
effects of the devastation of war and
of diminished production during the
conflict, the workings of monetary In
flation, the natural psychic reaction
following the war, the errors of post
helium diplomacy, etc., are so mani
fest and have been so frequently and
exhaustively discussed, that they are
well understood by the people. But
the influences of faulty taxation are
more subtle, less easily discerned and
are generally avoided by the public
speaker as a topic of discussion, be
cause to elucidate them means to
make one's self the vehicle for pro
nounclrg some unpopular truths.
What I propose to say will not
strike a popular note. In certain re
epects. That is additional reason why
it should be said.
Those who differ from me are free
to express their opinions and con
trovert mine. It is through the meet
ing of conflicting views in the form
of public opinion that truth is sought
and ascertained in a democracy.
To those who take the view that
criticism of our existing surtax scbed
ule is necessarily the "squeal" of
rich man, I would point out that th
rich man, considered merely as such
has little to squeal about on the score
of the income tax; for all he needs
to do is to invest his available capital
in tax-exempt securities bonds of
states and their subdivisions, of which
vast amounts are offering for hi
choice, and then all income or exces
profit taxation ceases to trouble him
By so doing he may obtain a con
siderably greater yield than he could
hope for by investing his money In
taxable securities or in his .business
suDject to tne present scale ox sur
taxes.
No quarrel can be found with th
purpose of congress to draw srecon
derantly upon the well-to-do in plac
ing the weight of direct taxation in
cldent to and resulting from the war.
It Is right to seek to adjust that
burden as near as may be according
to capacity to bear it.
But even in doing thlnirs from en
tirely praiseworthy motives. It is well
to remember the old French saying
mat -virtue has been known, at times,
to be more dangerous than vice, be
cause it does not feel itself subject
to tempering restraints."
Clans Discrimination IVoted.
our existing taxation measures In
various Important respects fly in th
face of economic science, of common
sense and of equity. They are cu
bersome, vexatious and almost In
credibly complex. They bear the im
print of class and sectional dlscriml
nation. They penalize thrift and in
austry, ana leave the wastrel and
etiirker untouched. They discourage
oisiw-D ana impede business, an
place the American business man a
a disadvantage as against his Eu
ropean competitor. At a time when
America is aiming to become a world
center they deter foreign capital from
coming here. They throw upon the
government an administrative
of such vastness and intricacy, that'
the departments concerned simply
cannot cope with it. They tend to
curtail production. They are a strong
contributing factor in bringing about
the prevailing high level of prices
a grave and serious evil which can
and must be mitigated, a grievous
burden particularly upon those men
and women who live on moderate
salaries, and who are all the more
entitled to sympathy and redress as
they have borne their troubles with
great patience and a noteworthy ab
sence of importunate agitation.
The four factors which, more than
any others, have brought about in
this country the era of economic dis
turbance and high prices are. In my
Judgment:
First: The urgency of the world's
demand for our raw materials and
manufactured articles during and
since the war.
Second. Inflation of credit and cur
rency.
Third. Governmental and private
extravagance.
Fourth. Faulty taxation.
All other contributory factors are
either of lesser effect than is fre
quently attributed to them, or spring
more or less directly from the causes
above mentioned.
The world's demand for oar male
rials and services Is bound to slacken
la due oourss. The curs for Inflation
((-AVE MAN" stuff may go well
enougn witn some aaugnters
of Eve, but Clara Bakke has
no time for the "treat "em rough"
tyle of wooing, and when Dan Hoag-
lan, former sweetheart, persisted in
following up this rough and ready
tyle of courtship, Clara called for
the police reserves.
It was about a week ago that the
romance palled upon Clara. There
was no mincing of words when she
told Dan that his attentions no longer
were welcome. She was through with
him. absolut-e-l-y, and positive-l-y.
But Dan refused to take his curt
dismissal seriously. He continued to
call upon the lady of his choice. He
would follow her from work, she tes
tified in police court yesterday, and
attempt to visit her despite her vig
orous protests.
"Under present-day conventions
there can be no courtship unless the
lady is agreeable," commented the
court. "The age has long since passed
when the man can carry away the
woman of his choice by brute force.
and this court cannot tolerate that
sort of practice."
And then Judge Rossman told
Hoaglan that he could go on paying
a fine of $50. Later he suspended pay
ment of the fine on condition that
he would leave Miss Bakke alone.
"You stay away from hex until she
writes you a letter telling you to
come to her," ordered the court.
"He's rot a lonor wait n hon rl nf
him," offered the girl.
Bartlow Tortilich was "lit up" like
a torch when he entered a north
end soft drink establishment with a
bottle of monshlne In his hip pocket.
The mellow grape wasn't strong
enough for Bartlow so he proceeded
to "spike" each drink with a goodly
portion of his "white mule." By the
time the police arrived he wasn't in
any condition to tell just what he
had been drinking.
"Anyway, It wasn't hair tonic,"
pleaded Tortilich, who Is an old of
fender, when he appeared in police
court yesterday.
And because he had changed his
brand of drinks from hair oil and
perfume Judge Rossman' let him down
with a $10 fine and one day in jail.
When Lloyd Evans slapped a small
boy during the progress of a thrilling
movie in a Sunnyside theater Monday
night he didn't know that the boy's
big brother was hovering around. One
word led to another, and the big
brother, in the person of Clement
Sites, proceeded to land on Evans'
face. Evans appeared in police court
yesterday to answer a charge ofd la
orderly conduct, as did Sites. When
Judge Rossman heard the story, he
decided that Evans had got juet what
was coming to him and dismissed the
charges against all participants.
Harry Winkler, one of several
druggists arrested several days ago
for selling tonics and other medicinal
llquide with alcoholic content as
liquor, was exonerated after Judge
Rossman had heard the testimony
against him in- police court yesterday
afternoon. The court held that Win
kler had made no effort to evade or
break the prohibition law.
is a slow and difficult process. The
epidemic of extravagance has gained
such headway that it cannot be ar
rested rapidly (though it could, I
think, and should be attacked more
effectually than is being done). But
the remedy for faulty taxation and
the resulting relief to the people can
be obtained at once whenever it
pleases congress and the administra
tion to seek that remedy and to ap
ply It.
Taxes Held Maladjusted.
It is quite true that, even with strict
economy in goernment expenditures,
the burden of taxation must neces
sarily be considerable for years to
come. But every one who has ever
bad to carry a heavy load knows
that the secret of carrying it with
relative ease, lies in the way in which
it Is adjusted. Our tax burden Is
grossly maladjusted. By rearranging
it we can vastly lighten the pressure
of the load upon the backs of the
people and particularly of the so
called middle classes, on which it now
rests with especial and most regret
able heaviness because they are not
in a position, generally speaking, to
make their compensation keep pace
with the mounting costs of living.
And among the principal causes for
those mounting costs is our faulty
taxation.
A good deal may be said for the
contention that the system of taxation
Inaugurated in 1917 was In accord
with the prevailing sentiment of the
time and had to be given a trial. The
theory which underlies It has rightly
a strong appeal.
Well, that system has now had al
three years" trial. We have seen the
theory applied in practice for a suf
ficient length of time to test it out.
The result is written large in high
costs of living and other effects ham
pering and troubling to the nation
and burdensome to all, but particular
ly to those who were Intended to be
the beneficiaries of that system and
that theory. 1. e.. the plain people.
The revenue measure of 1917, re-enacted
essentially unchanged for 1918
and 1919, stands disclosed as a breeder
of grave harm by the inexerable
test of actual experience.
(To Be Continued.)
(These articles will appear several
times weekly, until the series Is completed.)
TAILORS' STRIKE ENDED
NEW CONDITIONS OFFERED BY
3IEKCHAXTS ACCEPTED.
SHERMAN FAIR STARTED
County Exhibition Opens at 3Ioro
With Stalls and Pens Filled.
MORO, Or.. Oct. 12. (Special.) The
Sherman county 'fair opened today to
run the rest of the week. The stalls
and pens have already been engaged
in all the livestock barns, and the pa
vilion is filled. Hubbard & Sons,
prominent sheep breeders from near
Corvallis, as well as a large number
of prominent Union county shorthorn
breeders, including G. W. DeLay, W.
J. Townley, Green & Sons and Hutch
inson & Sherman, have creditable ex
hibits. A consignment sale of 25 head of
purebred shorthorns will be held Fri
day. The racetrack is in good shape and
horsemen are present in large num
bers. All the races are more than
filled. Saturday auto racing will be
the programme of the day.
INSTITUTE " IS SUCCESS
Interesting Talks Heard by Gilliam
and: Wheeler Teachers.
FOSSIL, Or., Oct. 12. (Special.)
The joint institute for the teachers of
Gilliam and Wheeler counties, Just
closed, was one of the most successful
ever held. The lectures by Miss Bovee
and Professor Reed of Oregon Agri
cultural college, Mrs. Geiss and Pro
fessor Butler of Monmouth normal,
and Professor Almack of University
of Oregon, were all interesting.
Professor Tucker of Fossil and Pro
fessor Shirk of Condon were elected
as delegates from the two counties to
the State Teachers' convention .to be
held in Portland. ,
American Plan Is Adopted in Port
land Shops as Result of
Arrangement.
Final and permanent settlement of
the strike of Journeyman tailors was
effected yesterday when members of
the union announced, through their
officials, that they would discontinue
the strike and go Dack to work under
the conditions offered by the mer
chant tailors. Local shops, under this
arrangement, will be on the American
plan.
According to D. E. Nickerson, presi
dent of the central labor council, the
merchant tailors are now paying as
much or more in wages than the Jour
neyman tailors asked when they went
out on strike more than a year ago.
"We believe that the cause for
which the men went out on strike
has been removed so far as working
conditions and wages are concerned,
and with the co-operation of the mer
chant tailors, this industry should go
back to normal conditions," he said.
K. S. Ervln of the Merchant Tailors'
association, said that the merchant
tailors had been officially notified
that the strike had been stopped. He
said there would be no discrimination
against the tailors who joined in the
strike, and he expressed confidence
that the trade would be materially
benefited by the action of the Jour
neyman tailors.
When they went on strike more
than a year 'ago the ' journeyman
tailors asked for J40 a week. This
is now being paid and there will be
no cut In wages, said Mr. Ervln. Con
ditions relative to union supervision
of the foremen and other working
conditions in which the union de
manded . control will not be con
sidered.
FATHER KILLS DAUGHTERS
Two Girls, Aged 2 and S, Chloro
formed and Burled.
LANSING, Mich., Oct 12. Earl
Roop, a farmer living near here, to
day confessed, according to Sheriff
Silsbee, that late yesterday he chloro
formed his two daughters, aged 2 and
3 years, and buried their bodies in the
bed of the Red Cedar river, a short
distance from his home.
After Roop had told his story, sher
iffs officers went to the river, led
by Roop. and found the bodies.
Despondency, according to the al
leged confession, was the motive for
the crime. Roop is being held on a
charge of murder.
Alliance Conference Dated..
HOOD RIVER. Or.. Oct. 12. (Spe
cial.) The North Pacific cdast con
ference of the Christian and Mission.
&ry Alliance will be held at the
church here from October 26 to 29, in
elusive. Morning and afternoon ses
sions will be for business, but in the
evenings sermons will be open to the
public. Rev. E. J. Richards of New
York city, the home secretary of the
alliance, will give addresses each
evening. Other noted alliance minis
ters will be present. .
HOSPITAL SURVEY MADE
Commissioner Hoyt Makes Recom
mendations for County Building
A survey of the hospitals visited
on an eastern tour was given yester
day by County Commissioner Hoyt
before a conference of commission'
ers and architects called to consider
the proposed county hospital here.
Mr. Hoyt went through a large num
ber of buildings In almost every por
tlon of the United States, taking notes
to be offered in the,. form of recommendations.
"The building," he said, "which
most nearly meets our needs Is the
Mount Sinai hospital in Cleveland. It
has 200 beds. The entrance to the
building is not uninviting, but re
sembles the lobby of a hoteL The
place is run by a business man and
not by a doctor."
SALVAGE CENTER, PLAN
Rotary Club Considers Co-Opera-
tion for Charity Benefit.
Plans for the establishment of a
co-operative salvage industry to act
as a clearing hquse for old clothing
and waste materials for the benefit
of the charitable organizations of the
city were taken up for consideration
at the regular meeting-and luncheon
of the Rotary club at the Benson ho
tel yesterday noon. Definite action
will be taken at the next regular
meeting.
The plans as outlined by A. J. Bales,
vice-president of the club, and George
C. Mason, chairman of the investiga
tion committee, provide for taking
over and operating the local Red
Cross shop in addition to handling
old clothing and similar waste materials.
Hare's. iVlotors Price Policy
i
A loss today for the sake of better
business tomorrow
LOCOMOBILE
Revised Price
Effective Oct. 1st
7'Passenger 'Touring $7,550
iifefe ; ill' I
ii I
Mi ; 1
mm 1
mi
MERCER
4-Passenger Touring
7-Passenger Limousine
7'Passenger Laudaulet
These Prices F. O. B. Factories)
7,650
9,150
.9,150.
Old Revised Price 'Old
Price Effective Oct. 1st Price
$8,900 Raceabout $3,675 $4,675
9,000 Touring 3,950 4,950
10,500 Sport Model 3,950 4,950
10,50.0, - Runabout 3,950 4,950
Coupe 5,150 6,150
Touring Limousine 5,650 6,650
32
5 Y. ft frh M
lb
11
. Eft'S (it
mum
1 It
1 1 -.11 i5 rl
SI
wm
PRICES are coming down because
they must not because costs have
lowered, but because business in this
country' cannot resume its normal
volume and confidence until the ade
quate buying power, of the dollar has
been restored.
This is not palatable doctrine to manufac
turers who,- like ourselves, are actually facing
higher costs today than six months. ago; but
it is the irresistible logic of the situation, and
only as it is generally faced and courageously
met will the restoration of . the .economic
equilibrium be hastened.
When Hares Motors undertook the opera-'
tion of the Companies under its control it
was fully expected as we took much pains
at the time to make the public aware that
theipncreased production under the direction
Cfour able engineering staff would eventually
reduce costs regardless of the general price
trend, but it was not expected that our opera
tions 'would by this time have reached that
stage and, as a matter of fact, they have not.
Both output and sales have been greater
during the last four months than at any other.'
equivalent period in the history of the Loco
mobile and Mercer Companies, but improve
ments in both products plus increasing costs
of labor and materials have more than kept
pace with ' increased production, and except
for the obvious duty of collaboration among
manufacturers to restore the morale of busi
ness, even at considerable temporary sacrifice,
there would be no justification whatever for
, a price reduction at this time.
Nevertheless we. are convinced that such
procedure is today both sound and construc
tive that the greatest ultimate profit is to
be earned by taking a present loss and it is
our earnest hope that before the period ex
pires within which, under existing conditions,
we can. afford to maintain the revised price
list, our business will have expanded enough
and our costs will have dropped enough to
warrant our making the new prices permanent.
If not we shall have no recourse but ' to
revise again and this time upwards.
Because of the element of uncer
tainty which obscures this point we
are for the present accepting orders
for delivery at the new, scale until
January 1st only.
fill
mm
mm
IS". I'-
1. 1
mm
mm
fill
mm
mm
'M.0.
mm
SHi'i Hit
v nr. o iw'i
mm
-JIPII
-"'v". cT?: "
91
i lllSi HARKS MOTORS, inc. Mi
lSMfeiSfeSS WILLAMETTE MOTORS CO., Inc., Distributors zS
aWM 100 N Broadway Portland, Oregon reJs.,, . - ,r-3
The raft on which the men had been
floating around the bay all night,
broke up as soon as they were taken
from It.
The men were taken to a hosplal
here, where their condition was pro
nounced not serious.
to the yellow pine of the south, the
local mill of the Palmer Lumber com
pany has been closed for several
weeks. A meeting of the directors
will be held this week to determine
the future policy. The Pajmer com
pany has nearly a million dollars'
worth of lumber in its yards.
COTTON NOTICES GIVEN
Outlawry and Threats Cause Gov
ernor to Make Proclamation.
ATLANTA. Ga., Oct. 12. The shoot
ins to death yesterday of a negro
gruard at a cotton gin In Arkansas,
numerous fires of undertermined ori
gin in which cotton has been de
stroyed and widespread threats of
night riders to burn gins, whose
owners Ignore warning to discontinue
operations until the staple reaches
a price of 40 cents a pound, have re
sulted in the Issuance of proclama
tions by Governors Brough of Arkan
sas, and Kilby of Alabama.
Statements of their position have
been made by Governors Dorsey of
Georgia, and Cooper of South Carolina.
FUGITIVES ARE RESCUED
Trio Escaped From Military Picked
Tp by Ferry in Bay.
SAN FRANCISCO, Oct. 12. C. H.
Roberts, J, J, Howlngton and R. E.
Hanna. prisoners at the Alcatraz
Island, military disciplinary barracks.
who escaped on an improvised log
rart early last night, were picked up
at 6 A. M., today off Yerba Buena
Read the Oregronian classified ads. j Island by the ferry steamer Oakland
ADVERTISING 1S FAVORED
Laundrjmen Ieclare for Newspaper
Publicity at San Francisco.
SAN FRANCISCO. Oct. 12. Inten
sive advertising and the installation
of special machinery has made the
"wet wash" a national institution, F.
C. Smail, South Boston, told the 37th
annual convention of the Laundry
Owners' National association today.
xThe convention made known today
a policy it adopted last night of
favoring advertising and publicity in
newspapers.. The policy calls for
"community advertising," or the pro
jecting of laundry service as a whole
rather than the merits of any particu
lar laundry.
NEW AIRSHIPJN FLIGHT
Zodiac, Purchased From French,
Flies From Virginia to Capital.
"WASHINGTON, Oct. 12. The army
dirigible Zodiac, purchased from the
French government, flew from Lang
lev field. Va., to Washington and
back Monday, the war department
announced today, taking moving pic
tures during the flight and traveling
163 miles.
Captain Dale Mabry of the air serv
ice and a full crew manned the ship
during the trip.
Lumber .Industry Hard Hit.
LA GRANDE. Or., Oct. 12. Spe
cial.) "With freight rates hitting the
lumber manufacturers hard and the
middle states market closed to the
northwest pine mills end opened wide
NOTICE TO THE STOCKHOLDERS
of
Arthur L. Smith Motors, Inc.
The annual election was held on October 7 and the old
board of directors- was elected unanimously. The finan
cial report was remarkable in this respect, that before
we are ready for business orders have reached us with
out solicitation, and before the first machine was fin
ished, to the amount of $5,212,600, and these orders have
a profit for the company amounting; to $90 for every
dollar expended to date. The latest invention, our Gas
maker for Autos, was shown running;, and all present
were amazed at the power and efficiency. This Gas
maker more than doubles the mileage on Kerosene with
out using; any gasoline, not even for starting, and on
gasoline the increase in power and mileage is 70 per cent.
It uses either of five fuels equally well.
Arthur L. Smith Motors. Inc.
447 Sherlock Building, Portland, Oregon
jj LUM! iERMENS TR1JSTQ W
ji-i hmJ
Checking
and
Savings
Accounts
Bonds '
Trusts
Co.
The
Bank of
Convenience
We Invite checking and sav
ings accounts. In exchange
we extend banking service,
complete and of highest
character.
Aside from the conveniences
of an established banking
connection, our depositors
are entitled to, and receive,
the full services of our four
departments.
Lumbermens
Trust Co.
Broadway and Oak