THE SUNDAY OREGOXIAX, PORTLAXD, NOVEMBER 7.
1900.
PREPARE TO LEVY
CORPORATION TAX
Treasury Officials Draw Up
Rules for Reports of
Yearly Earnings.
LITTLE DANGER OF FRAUD
Wcavy Penalties for Attempts to De
ceive or Failure to Keport Test
Suit Expected, but Courts
Will Delay.
OI1EGOXIAX NEWS BUREAU. Wash
ington. Nov. 6. In the course of a
month or six weeks the Secretary of
the Treasurv will issue regulations
governing tiie imposition and collec
tion of the new corporation tax au
thorized by the Payne-Aldrlch tariff
bill. These regulations will fully ex
plain the purport of the new; make
plain all expenditures, etc.. which cor
porations may deduct from their gross
earnings In arriving at their net earn
ings, whlrh become taxable, and will
differentiate corporations which are
taxable from those which are not
When Issued the regulations will
clear up one question over which much
doubt appears to exist in the public
mind. The corporation tax is retro
active, in that the law provides that
the first levy shall be upon the net
earnings, in excess of $5000. during
the year ending December 31. 1909. It
is unusual for laws of this sort to
date Jiack prior to the time of their
passage, but Congress prescribed the
manner in which this tax should be
imposed in the following language:
"There shall be deducted from the
amoiyit of the net income of each of
such' corporations . . . the sum of
500o, and said tax shall be computed
upon the remainder of said net Income
of such corporation . . . for the year
ending December 31, 1909. and for each
calendar year thereafter."
Must Report Before March 1.
The law further stipulates that on
or before March 1. 1510. and March 1
of each succeeding year, a true and
accurate return, under oath, shall be
made by the president or other general
officer of every corporation subject to
the tax (that is to say. every corpora
tion whose net income exceeds J5000),
setting forth In detail the salient
figures in connection with the corpora
tion's business for the preceding cal
endar year, which statements shall be
presented to the local Collector of In
ternal Revenue In Washington.
As these returns are received in
Washington, they will be examined for
accuracy, and where they are found to
be correct or supposedly correct, with
no evidence to the contrary, the amount
of tax authorized by law will be as
sessed, and the corporations notified of
the assessment before June 1 following.
The payment of the tax must be made
before June 30.
May Yield $30,000,000.
The terms of the corporation tax law
are very explicit, but for all that they
liave received much consideration at the
rysvods of the Secretary of the Treas
oyy and the Commissioner of Internal
Revenue, and great care is being exer
cised in the preparation of regulations
to avoid errors which will give ill-disposed
corporations technical . grounds
upon which to avoid payments or to es
cape full payments in accordance with
the terms of the law. Investigation is
being made by the Treasury Depart
ment, in co-oper.it Ion with the Bureau
of Corporations, to ascertain the num
ber of corporations subject to this taxa
tion, and to ascertain, as near as possi
ble, the condition of their business.
This total has not been ascertained, nor
Is the Treasury Department yet ready
to make an official estimate of the
amount of revenue likely to be derived
from the corporation tax when the re
turns are made next June. During the
debates in Congress, while this tax pro
vision was being framed. , estimates
ranged all the way from J2S.000.000 to
tliM.flon.OOO. but the conservative cal
culators seemed to agree that J30.0U0,
ooo would ie a reasonable guess.
Heavy Penalties for Fraud.
So strict are the provisions of the
corporation tax law. and so drastic the
penalties for evasion of its provisions,
tlmt the Treasury Department contem
plates very little fraud In the making of
returns. For example, the law stipu
lates that In case of any return made
with false or fraudulent intent, the
Commissioner of Internal Revenue shall
add 100 per cent of the tax to his assess
ment on the corporation making such
fraudulent return, and In the case of
refusal or neglect to make a return, or
to verify the same as directed by law.
he shall add BO per cent of the tax to
the assessment. In the former instance
the corporation would be compelled to
pay a - per cent tax instead of 1 per
cent, and in the iVtter a tax of IVi per
cent. Failure to pay the assessed tax
on or before June 30 will entail a pen
alty of 6 per cent of the assessment,
with Interest. .
Kxpect Attack In Court.
That the constitutionality of the cor
poration tax is to be brought Into
question Is anticipated by the Treas
ury Department. But ttie opinion pre
vails that court proceedings will not be
Instituted until after the first assess
ment has been levied and psud. Then
It is anticipated that suit will be
brough to recover the amount" of the
tsx. and into that suit will he injected
ail points bearing upon, the constitu
tionality of section 38 of the Payne
Aldrich law. If suits are delayed until
after the first payment has been made,
the question can hardly get into the
Federal Courts before the Fall of 1910.
and mr-y not reach the United States
Supreme Court until the close of the
term of 1910-11. and possibly not be
fore the October term of 1911. In any
event, should the law eventually be held
unconstitutional, the Government will
have had the use of the many millions
collected under the law for upwards of
a year, and if the law is sustained, that
Increment to the Federal strong box
will have gone far towards wiping out
the deficit which the law was Intended
to obliterate.
Anticli-ating attack? upon the consti
tutionality of the law. the Treasury De
partment officials, are fortifying them
selves In every way. so that their course
In admln':erinfi the law cannot be as
sailed. STATE GETS ITS SHARE
Power Company Settles Vp Oregon
City I.x-ks Controversy.
SAI.EM. Or.. Nov. .-aSpeclal.)
Attorney - General Crawford has re
turned from Portland, where be ef
fected a settlement uf the long-standing-
controversy between the state and the
Poitland Railway, Light & Power Com
pany regarding the income from the
Oregon City locks. Under the terms
of the agreement the company pays to
the state the sum of T260.93. the
amount due the state from May SI.
1897. to December 31. 190S. This
amount represents 10 per cent of the
net Income of the locks during that
time.
Hereafter on or before January 13
of each year the company will certify
to the state the gross receipts for
Jhe year ending December 31. Just
preceding. with the sources from
which the money was received, with
the actual operating expenses and or
dinary repairs, this statement to be
aVcompanied by a check for 10 per
cent of the net receipts as shown by
the statement of the company.
This, it is hoped. Is the final settle
ment of a question that has been in
the courts for several years and has
been the source of endless discussion
and controversy. Some years ago the
state made a demand upon the Port
land company for 10 per cent of the
net profits of the company, based upon
the fact that In 1870 the state ap
propriated J200.000 to aid In the con
struction of the locks.
The company had paid the state's
share for one year and then refused
to comply with the law. The matter
was carried to the Oregon Supreme
Court, which ruled that the state was
not entitled to recover but could not
go back of 1897. the statute of" limita
tions having run against the claim
previous to that year. The present
settlement is the final act in the con
troversy. JAP GIRL LEFT AT DOCK
PKOXY BRIDE WAITING IN" VAIX
FOR TACOMA FIANCE.
Almond-Eyed Maiden Comes From
Far East First-Class Groom-to-
Be Fails to Claim Prize.
TACOMA. Wash., Nov. 6. (Special.)
The course of true love, as exempli
fied by the case of Miss Mitsu, a pretty
Japanese maiden, who arrived on the
Tacoma Maru. is far from being
smooth. She has been waiting for a
week for her fiance, a Mr. Ota, said to
be a wealthy Japanese merchant at
Sebastopol, Cal., but so far In vain.
All efforts of the Japanese association
to locate him have been of no avail.
Miss Mitsu came to this country first
cabin, in keeping with her fiance's sta
tion in the business world. She has
seen a dozen of the other Japanese
proxy brides, who came steerage, called
from the steamer to the immigration
offices, where they, were married.
Should her fiance not appear by next
Tuesday, the day when the Tacoma
Maru sails for the Orient, It will be
necessary for the Immigration officials
to transfer her to the detention sta
tion and she will be kept there pos
sibly until the sailing of the next
steamer of the Osaka Shosen Kaisha
line, when. If her husband does not
claim her. she will probably be sent
back to Japan at the expense of the
steamship line. '
OFFICIALS TRADE PLACES
Councilman Becomes Marshal and
Peace Officer Joins Council.
HARR1SBURG. Or., Nov. 6. (Special.)
A. M. Pryor and Mahlon Hawk, two
well-known local men, traded their city
offices this week. Pryor has given Hawk
his position as City Marshal, while Hawk
has given Pryor his seat In the City
Council.
At the last meeting of the City Council
Pryor handed in his resignation as
Marshal and street superintendent. The
resignation from both positions was ac
cepted. Councilman Manlon Hawk then
arose and tendered his resignation as a
City Councilman. His resignation was
accepted and Mayor Robert K. Burton
then appointed him City Marshal. The
Council then elected him Street Superin
tendent also. Hawk then had both of
Pryor's former offices and to make the
trade complete the Council proceeded to
elect Pryor a City Councilman in Hawk's
place. .
FLOWER SALE IS SUCCESS
Borosls Club, of The Dalles, Raises
Entertainment Fund.
THE DALLES. Or.. Nov. . (Special.)
The women of the Sorosis Club held
their annual chrysanthemum show and
sale in the parlors of the Commercial
Club this afternoon. Chrysanthemums of
all varieties were on display and some
of them brought fancy prices at auction.
The show was a feature of a 2ocent
afternoon. A tidy sum was realized and
will be added to a fund which is being
raised to entertain the State Federation
of Women's Clubs, which meets in The
Dalles in 1910.
High School Work Grows.
ALBANY. Or., Nov. 6. (Special.)
The village of Crawfordsville. in the
Calapooia Valley, in the eastern part of
Linn County, will sonn have a high
school. County School Superintendent
Jackson arrived home last night from
Crawfordsville where he attended a
meeting of the taxpayers of the school
district and arrangements were made
for the establishment of a high school
(is soon as possible.
Bigbee Is Truant Officer.
ALBANY. Or.. Xov. . (Special.)
Professor C. F. Bigbee. of Albany, was
today appointed county truant officer
of Linn County by the County Court.
Professor Bigbee has taught In a num
ber of schools in different parts of Linn
County and has had wide experience in
school matters.
Albany Reports Heavy Frost.
ALBANY. Or.. Nov. 6. iSpecial.)
The Central Willamette Valley expe
rienced the first freezing weather of
this Fall last night. Thin crusts of ice
were formd this morning in various
places, and there was a heavy frost.
The light freeze was succeeded, how
ever, by the best day for more than a
week.
I.lnn County Gets Xew Town.
ALBANY. Or.. Nov. . (Special.)
The Llnnhaven Orchard Company,
which plans to set out a 3000-acre or
chard in the northern pafc of Linn
County, will establish a new townsite.
It will be called Linnhaven. The site
of this new town has not been definitely
chosen, but It will be near the center of
the colossal orchard.
BACK TO XATl'HE.
Nature supplies a remedy for most
diseases, and when such a remedy Is
found it should be used. Oregon Herbs
a tea) is a combination of herbs pre
scribed by nature for kidney and blad
der diseases, and should be used as
nature intended her medicines to be
used, namelv as a tea. No alcohol to
Irritate, no pills to dissolve and punish
the svsteni. Just a good old-fashioned
tea, easily prepared and easily taken.
All dealers should have it. Price 50c
Tfa
Ffee
of Ladies' Fine Tailored Suits Latest Styles and Fine
Quality Beginning Monday Morning '
ALL SUITS IN THE FOLLOWING RANGES WILL BE -ON SALE:
$30.00 Suits at Special Price . ....... . . $21.SO
$35.00 Suits at Special Price .... . . . . . . $27.50
$40.00 Suits at Special Price . . ... . $31.50
$45.00 Suits at Special Price ... ... . . . ... $3S.OO
$50.00 Suits at Special Price $39.SO
$60.00 Suits at Special Price . . .... . ::. , $48.SO
A Splendid Opportunity Take Advantage of It
2 73-2 75 Morrison
at Fourth
S
Lumbermen of Northwest Are
Entertained.
DINNER IS ON PROGRAMME
Object of Meeting Is to Weld Tlm
bermen of Northwest More Close
ly Together Many Guests
Are Present. ,
ABERDEEN', Wash., Nov. 6. (Special.)
Lumber manufacturers representing
mills in Portland and Puget Sound and
other points of the Northwest were guests
of Grajs Harbor millmen today. The
morning was spent in -Hoquiam. This
afternoon the visitors and their hosts
came to Aberdeen in automobiles, and a
meeting was held In the Pythian Temple.
Matters of interest were discussed, and
the entertainment closed with a dinner
at the Hotel Washington tonight, ten
dered by the Grays Harbor lumbermen.
Among those from out of town were:
Portland G. K. Wentworth. Jr.. Portland
Lumber Company: C. G. Briggs and E.
B Hazen. Bridal Veil Lumber Company;
GRAY
HARBOR HOST
I NEW EVANGELICAL CHURCH AT ALBANY, PARSONAGE,
7 : m. . fJ."- ;
:..- V . . ..WBCWjyi--'fJ"'v-''''' . ;.
5..-:.-:..V. ; ' . r-i ': ':.!: - ' ' . -
" . , " '- 4 . . .. t iiifiinrinr mm-Tnii ml "Tr 'if r r
4.LBXNV Or, Nov. 6. (Specia 1.) The new Evangelical Church in this uy was tompleti-a tite w eei
in ?. H.rtit.H t Sunday November 7. It will be named th a- EmmamieU Church of ih Evan
gef.cal'AssocliuomTirchrc.tands0 at the corner of First and Pi ne atreets adj. t i, U
parsonage. Both buildings were erected this Summer and are splendid s triictm-es
The photo at the upper left hand of the picture is that of Rev H. E. HorBsrh rarttoa, pre
irtin.r eider of the Evangelical A ssociation of this district. The photo at the right Is tnat of Rev. H, R.
Geil !.he pL.OP the church. This is Rev. Cell's second year as pastor of the local chnr.h. He cam
to , Owon from Virginia and catne to Albany after a pastorate of one year at Butxzc
Te Fvange ical Chnrch was established here in 1878 by Rev. Josia h Bowersox. The old church stood
for many v" : a?lte corner of Fourth and Lyon streets, but the growth of the city resulted in the
aof t pr e r o bsle,, purposes. The old church .was sold to the Mennonile druUlon
and Amoved to the western part of the city while the Evangelical den omtearJon utfLteBd tAemtrnr re
eved from the sale of this prop erty in the erection of this neat ch urch and parsonage In a new loca
tion in the eastern part of the c Ity.
Days
L. W. Wentworth, Portland Lumber Com
pany; Peter Autzen, Portland Manufac
turing Company; C. O. Shumway, Sheri
dan Lumber Company; B. A. Kingsley,
West Oregon - Lumber Company; F. C.
Toung, West Side Lumber c Shingle
Company; W. W. Clark, Clark-Wilson
Lumber Company; N. E. Ayer, St. John
Lumber Company; Vi B. Mackley, North
Pacific Lumber ' Company; George M.
Cornwall, The Tlmberman. Tacoma-J.
W. Dempsey, Dempsey Lumber Company;
Charles H. Foster, St .Paul & Tacoma
Lumber Company. Prescott, Or. R. F.
Barker, Beaver Lumber Company. Knapp
ton. Wash. H. B. Sutton. South Bend
T. E. Pearson, South Bend Mills & Tim
ber Company; W. L. Adams, Keystone
Lumber Company; F. C. Knapp, Penin
sula Lumber Company.
The meeting was undertaken in pursu
ance of a policy the lumbermen have
lately inaugurated, and grows out of a
desire to weld the interests of the North
west. Many of the Portland visitors had
never been on Grays Harbor. Much good
to the trade Is expected to result from
the meeting.
ONE TICKET PUT IN FIELD
Salem Nominates Councllmen for
City Election.
SALEM, Or.. Nov. 6. (Special.) The
following were nominated as members
ot the City Council at today's primaries:
First Ward One-year term, F. H.
Berger; two-year term, A. T. Moffitt.
Second Ward S. A. Manning.
Third Ward W. H. Eldredge.
Fourth Ward Walter Lowe.
Fifth Ward August Huckestein.
Sixth Ward H. W. Hatch.
Seventh Ward N. D. Elliott.
BI II.niT, WILL, BE DEDICATED TODAY.
M. GRAY
ESCAPE 1! OPEN
John Riplinger, Alleged Embez
zler, May Go Free.
MISSING MONEY NOT CITY'S
Washington Supreme Court Decides
Controller Merely Go-between and
Not Responsible for Funds
Given Into His Charge.
OLYMPIA, Wash.. Nov. 6. (Special.)
"Honest" John Riplinger, ex-City
Controller of Seattle, who was defeated
for Mayor and fled to Honduras, from
where he recently returned, may escape
prosecution for alleged embezzlement
as a result of a Supreme Court decision
rendered here today.
After Riplinger fled Jt was generally
asserted that he .had embezzled many
thousands of dollars of special deposits
made with him by city contractors. Be
ing In Honduras, Riplinger was safe
from extradition, but returned recently
and is now on bonds to await trial at
Seattle.
On all city contracts at Seattle it has
PRESIDING ELDER AND
pecial
long been the custom that successful
contractors should deposit a certain
percentage of their contract price with
the City Controller. It was such mon
eys Riplinger is accused of having
stolen. The city 'authorities recently
decided to sue the contractors for these
missing sums.
In a test case against Contractors
Stirratt and Goetz the Supreme Court
held today that these moneys were not
city funds; that the city simply han
dled them as a go-between for the con
tractors and property-owners, and that
so long as the city had directed the
money to be paid by the contractor to
the Controller, the city, not the con
tractor, is uaoie wuku low uulivii .
f.iiMi trt fliwnunt for the funds. Attor- I
neys here say this decision that the
money was . not city funds relieves
Rlpllnger's bondsmen from liability, as
they only guaranteed safe handling of
city money, apd also means dismissal of
all charges which were based upon the
contentiorf that the money belonged to
the city.
"Honest John" was the popular nick
name for Riplinger when, after his term
as Controller, he made an unsuccessful
race for Mayor, prior to the discovery
of his shortage.
FALLS, FORGETS HIS PAST
Stranger Is Picked XJp at Klamath
Falls In Precarious Condition.
KLAMATH FALLS. Or.. Nov. 6. (Spe
cial.) J. R. Douthal, who says he Is
from Fresno, Cal.. was seen to fall off
the sidewalk on Main street in this city
Thursday, apparently in an epileptic
paroxysm. He was taken up by citizens
and a physician sent for. When he re
turned to: consciousness he could- barely
give his name and address. A number of
receipts he carried in a memorandum
book showed that he has lately been a
member of the Switchmen's Union in
California. He wore a badge of the So
ciety of Eagles, but could not show any
evidence of his standing in that organiza
tion. He could not remembeY the time of his
arrival in this city, had' no remembrance
of falling on the street, could not recog
nize any place in the town, and believed
he was yet in the City of Oakland. Cal.
He was placed in the hands of the County
Physician, who sent him to the county
hospital for treatment.
EUGENE'S NEAR-BEER SAFE
Judge Holds Close-Intoxicant May
Be Sold With Impunity.
EUOENE. Or.. Nov. . (Special. ) In
the Circuit Court today in the case of W.
E. Boddy vs. the City of Eugene, Judge
Coke, sitting in place of Judge L. T.
Harris, decided that near-beer could be
sold in Eugene.
The basis for the decision was that the
city charter does not provide for an ordi
nance prohibiting the sale of non-intoxicating
liquors.
Several months ago. W. E. Boddy was
arrested charged with violating the city
ordinance which prohibits the sale of
near-beer. He pleaded guilty and was
sentenced to pay a fine. The case was
taken from the Justice Court to the
Circuit Court on a writ of review.
LINE BEGUN IN SALEM
Local Streetcar System May Later
Become Interurban.
SALEM, Or., Nov. 6. (Special.) The
Portland, Eugene & Eastern Railway
Company, if. WelcB president and gen
eral manager, has a crew of men at
work In this city today building the
first of the two miles of a city system
for which it has a franchise, and also
the first of an extensive Interurban
system which is planned to include
Salem, Albany, Stayon. Eugene and
various other towns and cities in the
Willamette Valley.
Preliminary work is now under way
on Ferry street and on Center street
near Commercial, and according to A.
Welch, local manager of the Welch in
terests, there will be no letup In the
Sale
Ladies' Entrance
14S Fourth
construction work until the two miles
within the city limits are constructed.
The corporation controls the street rail
way system at Albany and Eugene and
Is now building a big power house on
the McKenzie River.
STORE AT -SANDY BURNS
Loss, Believed to Be Due to Incen
diary, Is Placed at $6000.
SANDT. Or.. Nov. 6. (Special.) The
merchandise store of J. B. Awney burned
to the ground at an early hour this morn
ing. The blaze was well under way be
fore any one noticed It and nothing was
saved.
Tha cause of the fire has not been
ascertained, but It is thought to be of
Incendiary origin. The loss, about JtiOOO,
was fully covered by insurance. A resi
dence belonging to Arthur Bell, close to
the store, barely escaped burning, and
it was only the prompt action of several
neighbors that saved it.
Will Io Some More Boosting.
ROSEBTJRG, Or., Nov. 6. (Special.)
The Roseburg Commercial Club which is
already one of the largest organizations
of its kind in the state outside of Port
land, is adding new members at every
meeting. This week arrangements were
made for another booster meeting the
last of this month, and the matter of
still further advertising this section will
be taken up. A new booster, will, in all '
probability, be employed to taRe tha
place of C. E. Colt, resigned.
Sealers Prepare Claim.
VICTORIA, B. C Nov. 6. The seal
ing schooner Thomas F. Bayard ar
rived today from Bering Sea with 921
sealskins and six otter pelts. Captain
Blakstad. of the Bayard, will meet the
commanders of the schooners Jessie and
Pescawha on Monday to prepare a
claim against the United States for the
interference of the revenue cutter Bear,
which sealed up the firearms of the
three, schooners, IS miles off Chclikoff
Island, October 22.
OPAL CTTV FITIRE METROPOLIS
Of Central Oregon See Page 9, Section 4.
Trunks, suitcases ana bags. Largest
variety at Harris Trunk Co.
Beauty
Secrets
How to Have a Beautiful Rich Brown
Head of Hair.
Send for a Trial racltage Today.
Mv Dar Woman, If Yon Would Only Vm
Mr Fotter' Vt'alnm-Tint Hair Stain, an
I IJo, No One Would Ever Know You
Stained Your Hair.
It only takes you a few minutes oni'
month to apply Mrs. Potters Walnut-Tint
Hair Stain with your comb and have a
nice rich brown head of hair, such aa all
admire. Stains only the hair, doesn't rub
off. contains no poisonous dyes, sulphur,
lead or copper. Has no odor, no sediment,
no grease. One bottle of Mrs. Potter's Walnut-Tint
Hair Stain should lant you a year.
Sells for $1 a bottle at first-class druggists.
We guarantee satisfaction. Send your name
and address on a slip of paper, with this
advertisement, and enclose 'IT, cents (stamps
or coin) and we will mail you, charges pre
paid, a trial package. In plain, scaled
wrapper, with valuable book on hair. Mrs.
Potter's Hygienic .Supply Co., Oil Groton
bldg.. Cincinnati, O.
Mrs. Potter's Walnut-Tint Hair Ktaln Is
recommended and for sale in Portland by
Woodard A Clarke Drug Co., wholesalers and
retailers; EVsseJl's pharmacy. 2AU Morrison
B. G. SklUmore & Co., 151 Third St.
.A