4,
TITE SUXDAY OKEGONIAN. TORTLAXD, BfAECIT C, 1021
. . A
would have th benefit of the court's
ruling In every other taxpayer's con-
test. The bureau would be relieved
of an immense amount of detail work.
Decision would be rendered more
promptly (at present 1918 returns
are being checked up) and. It is
thought, there would be a ble In-
crease in efficiency.
Another thing: There would be no
more compromises on tax problems.
Either a tax is due or it is not riii.
Radical Revision of Method .Yv.10- I?fi- c"!:
of Interpreting Laws Near, ii ZroTZs ?."yrb.
tax court would settle that.
FEDERAL TAX COURT
IS HARDING'S IDEA
GREAT PROBLEMS
AWAIT SOLUTION
President to Work at Once on
Legislation Programme.
PRESENT LOSS IS C.TED DEFENSE FUND IS SENT
Government Declared to Train Ex
perts Only to Have Big Cor.
poratlons Grab Them.
ATTORNEY FOR WOULD
CAPTORS PROVIDED.
BE
Stars and Stripes Circulates Peil
1 Hons Calling for Extradi
tion of Rich Evader.
i BY HARDEN' COLFAX.
! fCopyrtrht, by The Oreuonian.)
I WASHINGTON. D. C March 6.
(Special.) President Harding and
' ! his advisers have under considera-
' tion a radical revision of the method
j of interpreting the federal tax laws.
! The proposal involves divorcing the
' 1 entire subject from the bureau of in-
i ternal revenue and the creation of a
new tribunal to be designated the
Lnlted States court of internal rev-
enue. appeal.
. j To that tribunal would be delegated
j the task of deciding the numerous
J ' disputes between the taxpayers and
J the government. The internal rey
enue bureau thus would become, pri-
1 marily. a collecting and administra
J tive anency. It would be stripped, in
j m large measure, of the vast and com
plex duties of interpreting the pro
' visions of existing revenue laws and
j of the new tax laws when it Is en
1 acted.
! Tax Court la Possible.
J The new revenue law, soon to be
framed, probably will include pro
vision for the creation of the tax
1 court. As proposed, the court would
j consist of seven or nine judges. W.
W. Warwick, controller of the treas
ury, who suggested the idea to for
mer Secretary Houston some time
ago, proposed that the judges be paid
JtfOOO a year each;
Judge Warwick's proposal was sub
mitted in memorandum form to Sec-
j retary Houston several months ago,
j but was not acted upon. Recently
j the plan came to the attention of
j Chairman Fordney of the ways and
f means committee, the body which
, will frame the new revenue law. Mr.
Kordney obtained a copy of the mem
J orandum. He was so impressed with
j the soundness of the suggestion that
he had it sent to all members of the
committee, it is understood, and
placed it before Mr. Harding at St,
Augustine. K . .
Harding Favor Indicated.
While Mr. Harding's . attitude to
ward the proposal has not been de
clared, it was generally believed that
he favors it and that its adoption in
some form is a strong possibility.
The new court would accomplish
much the eame results in federal tax
ation that the present United States
court of customs appeals accom
plishes in tariff disputes. The tax
court, as proposed by Judge War
wick, would be modeled largely after
the court of customs appeals. In
deed. Judge Warwick has even sug
gested that the customs court be
enlarged from its present member
ship of five to seven to permit It to
handle both tariff and tax troubles.
That, however, is proposed as an
alternative to the creation of an In-
uepenaeni iax court, tne latter hav
ing the preference. With the crea
tion of the tax court there would be
lifted from the dockets of the federal
courts throughout the country ap
proximately 1(H)0 cases, it was esti
mated, which now help closing con
gested calendars and delay the other
items. These taxes would bv trans
ferred to the tax court. The tax
court would lay down general princi
ples on disputed points and its rul
ings would govern in similar cases
Involving parallel questions.
Unreal Now Decide Cases.
As it Is now, the bureau of Internal
revenue decides each case on its own
merits, publishing only general ad
ministrative regulations once a year
and supplementing them from time to
time by rulings called, for want of
' a better name, treasury decisions. It
thus happens that frequently a tax-
payer in a practically parallel situ
ation hears nothing o: the decided
case and has to go all over the same
t ground and may or may not obtain
-the same decision.
This method of deciding moot tax
problems is a necessary evil under
the present law which provides for
. secrecy in all tax matters. The men
jwho administer the law are called
upon io exercise the utmost patience
;and industry, often working long and
tedious hours to pass upon cases
' which, because of this secrecy, in
volve principles previously laid down
nd established.
Torn-Over Ia Enormous.
Because of that situation and the
present law the turn-over among
competent administrative employes of
the bureau during the last four years
., has been enormous. Men who earn
from J3000 to $5000 a year pass upon
Claims involving hundreds of thou-
, eanas or millions of dollars in single
. "C8' xney pecome expert in the
noirage or tne administrative reg
T iwUua anu meir very expertness
. me fumrnmeni or their services.
,. A corporation submitting a case
,: involving, say $100,000, to a bureau
feirmpiuye earning $4000 a year, is
i. pretty likely to be tempted to em
; ploy that man after the decision is
rendered in order to submit correct
returns next year and avoid losses
and penalties. And 60 the employe
; leaves the bureau to accept a salary
; double or three times what he had
received from the government; a new
-man takes his place and the whole
.-. principle has to be studied and as
. similated by a new man before he
: is competent to make a decision in
other cases. It takes from six months
...to a year for the new man to become
- an expert, even if he has special apti-
tude. Thus a decision is held up, the j
"".' ouiiers ana in the end the
; new man is likely to go the way of
; the old to a better-paying position.
One Incident Ia Cited.
The writer knows of one cas
-where an administrative emplove
Jleft a $t00 job to take a $25 000
one after a service of little more than
t a year.
4 All that, it is thought, would be
X corrected by the creation of the tax
court. Every taxpayer, in addition.
THE OREGONIAN NEWS BUREAU,
Washington, D. C, March 5. Three
hundred dollars were forwarded to
day to Paris post No. 1, the American
Legion, Paris, France, as a first in
stallment of he sergeants' defense
fund being raised by the Stars and
Stripes, veterans' newspapers, among
ex-ervice men for the defense of
Sergeants Frank Zimmer and Carl
Naef, veterans of the American expe
ditionary forces, who are held in jail
ar Baden, Germany, for the attempted
kidnaping of Grover C. Bergdoll, no
torious millionaire draft-dodger
Commander Francis E. Drake of the
American Legion In Paris, cabled the
Stars and Stripes, accepting its offer
to raise a defense fund and pledging
the legion post to administer the
money. "The cable said that a lawyer
nas Deen engagea to aeiena ine ser
geants. Drake asked for 4000 francs
at once, which is more than covered
by today's remittance. The fund ia
being raised by donations of $1 each
from ex-service men through the sol
dier' paper.
The Stars and Stripes also started
on March 4 at Washington to circu
late petitions to President Harding,
asking that the full force of this
government be placed back of a de-
niand that Germany turn the ser
geants over to the American army on
the Rhine and return Bergdoll to the
custody of this country to serve out
his sentence. The American Legion
recently adorned resolutions to this
end, which were laid before Mr. Hard
ing In person by Thomas W; Miller
of Delaware, member of the legion
executive committee, at St. Augustine
ten days a.
Th trial of Zimmer and Naef was
originally set for this week, and no
report of trje success of an attempt
to postpone it has been received.
Frank Zimmer was born is Denver
27 years ago, his parents having come
from the Grand Duchy of Luxem
bourg. He enlisted in the national
guard at Seattle when the Mexican
border trouble started, served on the
border and again enlisted - in the
regular army at Camp Lewis, Wash.
When war was declared with Ger
many, he served in France fepm. July,
1918. until the close ot the war as
supply sergeant with the 361st in
fantry on the Belgian front. He re
enlisted to serve with the American
army on the Rhine, in the military
intelligence.
Charles Naef was born in Switzer
land and his record is incomplete be
cause his service record s with the
Rhine forces. He served during the
war with the 76th field artillery of
3d (Marne) division, and later re
enlisted to remain with the army of
occupation. He was discharged last
July in Coblenz and remained as
civilian connected with the American
army intelligence system. Both men
speak French and German.
WILL CONSULT LEADERS
Conciliation at All Times Will Be
Watchword at White House; Con
gressional Harmony Sought.
MONEY TEST IS RAISED
Immigrants Into Canada Must
Show $2 50 to Pass Border.
MONTREAL, The money test of
immigrants of the mrtisan. or laborer
class into Canada has now been raised
to -ou, and this amount the applicant
for entry must be possessed of in ad
dition to full fare to his destination
within the country.
When an adult emigrant is ac
companied by his family he must have
in addition $125 for each member
under 18 years of age, a.id $50 for
each child between the ages of 6 and
18. The new regulations are now in
effect along the international boundary.
S. & H. green stamps for
Ilolman Fuel Co., coal and wood.
353. 560-21 Adv.
Read The Oregonian classified
BY ROBERT T. SMALL.
(Copyright, 1021, by The Oresonian.)
WASHINGTON, D. C, March 5.
(Special.) Free at last from the
formalities of the Inauguration Presi
dent Harding purposes during the
coming week to arrange the con
structive legislative programme by
which the early months of his admin
istration will be judged. The new
president hesitated to express his own
wisnts in his inaugural address. In
his own language he thought It more
becoming that he should postpone any
announcements in this respect until
he had opportunity to consult with
the leaders of congress and could
work out with them the Droblem
what should and what should not
be done.
Mr. Harding does not intend at any
ime during his administration to
coerce congress or to snrine anv sud
den recommendation upon the legls-
atlve branch with the idea of ar
raying pubLic opinion on his side.
Conciliation will at all times be th
watchword at the White House, and
when Mr. Harding desires anvthine
of congress he will send for the con
gressmen most concerned in the mat
ter and reach a working agreement
with them before taking the public
into his confidence. The new chief
executive expects this policy to bring
aoout a Detter feeling between the
capitol and the White House than has
existed for many fears past. In other
words. Mr. Harding is passionately
desirous of working in complete har
mony with congress, and, if there Is
any failure in this respect if there
can be any failure in the circum
stances the fault will rest entirely
at the capitol.
Appropriation Bills First Winn.
A considerable part of Mr. Hard
ing's immediate legislative pro
gramme was dependent upon the condition-
in which the congress Friday
ieii me puonc Dusiness. Naturally
He ni pe concerned in clearing up,
first or all, the two appropriation
bills which failed the . navy bill
through lack of agreement and the
army bill through the veto of Wood
row Wilson. The new session of con
gress, according to indications, will
be called April 4. During the inter
vening four weeks the president be
lieves he can adjust matters so that
these two bills will be disposed of
easily when congress resumes.
It is not the .present purpose of Mr.
Harding to burden the extra session
of congress with a heavy programme.
If all goes well, it is the general as
sumption that the extra session will
have adjourned by the loth of July.
With machinery working smoothly, it
is expected that three months and a
half of the extra session should
suffice.
Legislative Programme Outlined.
This is the legislative programme
the president will suggest to the
congressional directors:
First The passage of the amplified
Knox resolution declaring peace with
Germany and Austria, carrying with
it the resumption of friendly and dip
lomatic relations with the peoples, of
th former central empire.
Second The passage of an emer
gency tariff mil, oasea largely upon
the . Fordney bill, which congress
failed to pass over Mr. Wilson's veto.
The emergency bill may be the only
tariff measure passed at the special
session, the general tanrf revision
waiting for the regular session be
ginning next December.
Third A general tax revision, look-
ng to the lightening of the present
tax burdens. Mr. Harding has given
much thought to the subject of tax
ation during the last three months,
but has reached no conclusions in
his own mind as to just what should
be done. He expects to formulate a
policy within three or four weeks,
fter his own cabinet shall have be
ads, gun to function and after the needs
of the government have been can
vassed.
T. .
" " apparent now that the new
tariff law will do but little to lighten
me tax burden of the people at large.
Mr. Harding' has promised that gov.
eminent expenditures will be cut to
tne Done, nut the best efforts of con
gress in this direction thus far, have
not brought about the possibility of
.n....8 me ouraen or taxation to the
exieni tne people have expected.
i-ourtn it will rest largely with
the congressional direction as to
wnetner or not there shall be a re
enactment of the immigration bill,
which Mr. Wilson allowed to die
without approval. This measure, de
signed to restrict the entry of aliens
into the country for a period of vears.
was passed by an overwhelming vote
in congress, but Mr. Wilson did not
approve of jt and was enabled to give
it a death blow in the last moments
oi tne session. Mr. Harding would
approve the measure if enacted dur
ing his administration.
President Harding is committed to
many more undertakings, but he does
not intend to burden the extra session
with all of the policies promised by
his adminstration.
His plans for an association of na
tions, for Instance, will not be ready
for the extra session. The president
is waiting to learn what the reaction
has been throughout Europe, includ
ing Germany, before a definite cast
mg aside of the existing league of
nations. It will be his purpose dur
Ing the next few months to discover
through diplomatic channels whether
o. not the nations of Europe desire to
abandon the "alliances" of the exist
ing league In favor of an association
'for conference and counsel " in
which the United States would be a
member. The nations of the world
would be invited further to a confer
ence initiated by the United States,
looking to an approximate disarma
ment of the avorld and to the estab
lishment of an international court
vhich might be permitted to decide
disputes of a justiciable character,
but which have nothing to do with
matter of national honor or vital im
port. '
Mr. Harding will endeavor, as time
and conditions permit, to carry out
the other definite promises of his ad
ministration, which Include:
The repeal of the pan-American
canal tolls bill and the granting of
free use of the isthmian waterway to
American vessels, despite the claim
that such action would violate a
treaty with Great Britain.
The upbuilding of the American
merchant marine so as to enhance
the foreign trade of the United
States.
1 The reorganization of the govern
ment departments, Including the
amalgamation of the naval, military
and air services under a single head
to be known as the secretary of na
tional defense.
The establishment of Liberty and
Victory bonds on a new basis which
would make them worth "all that pa
triotic citizens paid in purchasing
them."
The stamping out of lynching by
the federal government so as "to re
move this stain from the fair name
of America."
The enforcement of the 18th. or
prohibition, amendment to the full
xtent of the law.
The clearing out of the federal de
partments in Washington "so that
they may be made more businesslike
and may send back to productive
effort thousands of federal employes
who arc either duplicating work or
are not essential at all."
The enactment of legislation which
will guarantee to the negro citizen
of America the enjoyment of all their
rights. "I believe." said Mr. Harding
In this connection, "that they have
earned the full measure of citizen
ship bestowed; that their sacrifices
in blood on the battlefields of the
republic have entitled them to all of
freedom and opportunity, all of sym
pathy and aid that the American
spirit of fairness and Justice de
mands."
Mexico nnd Japan Are Worries.'
Mr. Harding faces also the task of
recognizing or repudiating the pres
ent government of Mexico. He Is
surrounded by several public officials
who believe In a strong policy toward
Mexico, and his decisions in Mexican
matters are awaited with unusual Interest.
Mr. Harding must deal sooner or
later with the vexatious Japanese
question. He believes it far more
pressing than any entrance of Amer
ica into an association of nat'on.i,
and undoubtedly will ask Secretary
of State Hughes to give his moat
earnest consideration to the matter.
Mr. Harding, it may be stated in
conclusion, w'll not rush to any hasty
decisions. He believes in making
haste, slowly and establishing his po
sition firmly as he goes along. As
he goes further and further into the
pres'dency he will find the tasks
which confront him almost over,
whelming.
Lodge Honors Harding.
WATERBURV. Conn., March 5.
President Harding was elected to
membership in the Tall Cedars of
Lebanon, an order to which Masons
alone are eligible, last nignt.
Colony Cables Greetings.
CONSTANTINOPLE. March 4. Sev
eral hundred members of the Ameri
can colony today cabled a message of
felicitation to President Harding.
There are few, if any, who do
not regard this photoplay as the
best they have seen since the com
mencement of motion pictures,
therefore' it is hut natural that
cash.
Main
1
ANNOUNCEMENT.
we taKe pleasure in an- j
nouncing a beautiful display I
of Grand pianos this month. !
We have every 6ize from j
the miniature to the Concert I
Grand. Prices range from
?S45 and up. I
Convenient payments ar- f
ranged.
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The Diamond You Buy
at ARONSON'S
. Is Worth What You Pay
,We sell diamonds for less simply because
we have the facilities and the resources for
buying them for less.
When you own a diamond bought here, you
own a safe and sensible investment.
CALL IN AND LET US SHOW
YOU SOME OF THE FINE
STONES IN OUR COLLECTION
ARONSON'S
Washington at Broadway
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t,T-,,.-,,-;-r,,i . r: i. i i... -i r - 1 t ---i
P PUhl C KnW' H G0d ShWS
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H First National SlvPf
II Attraction WMC V
i n il inKAJrL.
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71
I MFTHTf TT TT7S! TT7T7
I I . 1 ml
I I O 1
J i 1
and his big six-act comedy that
reaches the heart Avdth its
appeal
TH99
mil have to he held over a few
more days! Come in early,
as the stay is limited !
liji 1 1 im 1 1 1 in i im ii ; ii i ii 1 1 iimii 1 1 1 im in m lim nl ii ni III 1 1 1 ! tli III illti t inTTTTrrrrr-
Overstuffed Living Room Pieces
FROM OUR OWN WORKROOMS
Handsome Single Pieces
in Brown Mahogany
A
All at Moderate Prices '
J. G. Mack & Co.
150 Park St., Bet. Alder and Morrison
n
MATES' CONCERT
On Our Mighty Voiced Wurlitzer
March, "Washington Post"
Sousa
, "Cavatina" Raff
"Serenata" Moskowski
Selected Songs
-"The Princess Pat," Selec
tion . . : Victor Herbert
TODAY AT 12:30
ALSO
SCE1VTC
"THE ISLE OF DESIRE"
COJTEDV
"THE SKBPPER'S
SCHEME
It's a Teonervllle
LIBERTY NEWS
EVENTS TOLD
IN MOTION
MONTE AUSTIN
Popular Sons.
v;. C J1rchiWi sf PTsril Oby
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