THE SUNDAY ' OltEGONIAN, PORTLAND, JULY 9, 1923
10
1
E TAX
BILLS ON BALLOT
State Taxpayers' League
' and ' Grange Authors.
WIDE DIFFERENCE NOTED
Farm Organization 'Wants Grad
uated Ivevy With Exemp
tions Up to $800.
8ALEM, Or., July 8. (Special)
Two income tax offerings, one a
proposed constitutional amendment
Initiated by the state taxpayers?
league, and the other an initiative
measure, sponsored by the state
grange, will confront the voters of
Oregon, when they igo to the polls
t the general election in November.
Tile proposed constitutional
amendment, which local attorneys
believe will have preference over
the Initiative measure in event both
offerings are approved by the voters,
jwovldes that all money required to
be. raised In "the year 1924 and each
year thereafter by direct levy to
meet the expenses of this state 6ba.ll
b raised In. equal amounts from two
sources.
One source is from a. direct tax
m real and personal property as
under the present taxation scheme
and the other from an Income tax
levied against all met income accru
ing to "natural persons and corpora-
i . J . M : .. 1 r.
UWUf 111, V V.llllg iuiivixj
in or doing business 'in this state.
Income accruing to stockholders
from dividends paid by corporations
subject to such tax shall be exempt,
under the provisions of he amend
ment. Rate fa Determined.
, The rate of euch income tax shall
do aeierminea eacn year Dy arvuamg
the amount required . to be raised
from the income tax by the total
net income subject to such tax. Fur
ther provision is made that the leg
islative assembly at its session oc
curring next after the general state
election of 1922 shall prescribe the
manner of levying and collecting
such income lax and to provide for
reasonable personal exemptions of
not less than $800 or more than
$1000 for unmarried persons and not
less than $1000 or more than $1500
for married persons and an addi
tional exemption of $200 on account
of each person dependent upon a
taxpayer; for exemption of the pro-
ceeds of life insurance, gifts, be
quests, devises and inheritances, and
for exemption of incomes of corpo
rations organized for educational,
religious or charitable purposes.
In the aid of uniformity and to
promote the public welfare, the leg
islative assembly also is instructed
under the amendment to exempt
from the tax required to be imposed
all income of those corporations, as
sociations and organizations ex
empted from the income tax of the
United States of America by the pro
visions of the federal income tax
law.
Limit Is Arranged.
The proposed amendment does not
permit the levying in the aggregate
in any year by the income tax pro
posed and by the existing system of
taxation any greater sum for state
purposes than is now authorized by
the constitution.
The initiative measure sponsored
by the state grange is more volumi
nous than the proposed amendment
offered by the state taxpayers'
league and provides for the levying
of graduated annual taxes on in
comes of all residents of the state
and all non-residents receiving in
come from sources within its juris
diction. Corporations and stock
companies also are affected by the
grange offering.
"There shall be assessed, levied,
collected and paid a tax," reads the
grange Income tax measure, "on all
Incomes received during the year
ending December 31, 1922, and upon
incomes received' annually there
after, by euch persons from such
sources, hereafter described, pro
vided, however, that firms, corpora
tions, co-partnerships, joint stock
companies and associations which
customarily close their annual ac
counts on. a date other than Decem
ber 31, or which customarily esti
mate their incomes or profits on a
basis other than . of? actual cash re-
cetipte .and disbursements, may, with
the consent and approval of the tax
commission, return for assessment
and- taxation the income of profits
earned during the business year for
which the accounts of such persons
are customarily made up.
Deductions Are Allowed.
Every corporation, joint stock
company or association, shall be al
lowed to make from its gross in-
e the following deductions:
Payments made wiithin the year
for personal services of officers or
employes actually employed in the
production of such income, if rea
sonable in amount; provided, that
there be reported. the name, address
and amount paid each such officer
or employe to whom a compensation
of $1000 or more shall havo been
paid during the assessment year.
Other ordinary and necessary ex
penses paid within the year out of
income in the maintenance or opera
tion of its business and property, in
eluding a reasonable allowance for
depreciation of property from which
the income is derived. All bonds is
sued by a corporation shall be
deemed an interest in the property
and business of such corporation:
and so much of the interest payable
on such bonds as is represented by
the ratio between the property lo
cated and business transacted with
in this state to the total property
and business of euch corporation
shall be Bubject to taxation under
this act as income of such corpora
tion.
Losses actually sustained within
the year and not compensated for by
insurance or otherwise; provided,
that no loss resulting from the op
eration of business or the owner
ship of-property may be allowed as
a deduction, unless the income which
might be derived from such nroo
erty would be subject to taxation
luiuer this act.
Hums paid by such persons within
the year for taxes imposed by any
state ot this union or subdivision
thereof, or any territory or posses
sion of the United States, upon
sources from which the income taxed
is derived, but not including special
assessments ior improvements or
betterments.
Other Exemptions Included.
Dividends or income received
within the year from stock or in
terest in any firm, copartnership,
corporation, joint stock company or
association, the Income of which
shall have been assessed under the
provision of this aot; provided, that
when only . part of the Income of
the copartnership, corporation, joint
stock company or association from
which such dividend or income was
received shall have been assessed
under, this act. only a corresponding
part of such dividend or Income shall
ba deducted;. provided further, that
eomp
. kuwei
corne
such firm, copartnership, corpora
tion, joint stock company or asso
ciation report at the time of assess
ment the ,name and address of each
person owning stock or interest in
the same and the amount of divi
dends or income paid such person
during the assessment year.
Deductions from incomes of per
sons other than corporations, joint
stock companies or associations in
reporting incomes for tha purpose of
taxation shall be allowed as follows:
Expenses Are Tax Free.
The ordinary and necessary ex
penses actually paid within the year
in carrying on the profession, oc
cupation or business from which the
income is derived, including a rea
sonable allowance for depreciation
of the property from which the in
come is derived. But no deduction
shall be made for any amount paid
for personal services unless there
be reported the name, the address
and the amount paid each such em
ploye ' to whom a compensation of
$1000 or more shall have been paid
during the assessment year.
Losses actually sustained within
the year and not compensated for
by insurance or otherwise; pro
vided, that no loss resulting from
the operation of business or the
ownership of property may be al
lowed as a deduction unless the in
come, which might be derived from
such property would be subject to
taxation under this act.
Dividends or income received tiy
any person from stock or interest in
any firm, copartnership, - corpora?
tlon, joint stock company or asso
ciation, the ' income of which shall
have been assessed under the pro
visions of this act; provided, that
said firm, copartnership, corpora
tion. Joint stock company or asso
ciation report at the time of the as
sessment the name and address of
each such person owning stock or
interest in the same and the amount
of dividends or income paid such
person during the assessment year;
provided further, that when only
part of the income of any firm,, co
partnership, corporation, joint stock
company or association shall have
been assessed under this act only a
corresponding pact of the dividends
or income received therefrom shall
be deducted.
United States Pensions Exempt.
Interest paid during the income
year on Indebtedness incurred in
connection with tha trade or pusi
ness:' provided, that the debtor re
ports the amount so: paid, the form
of the indebtedness, togemer who
the nam and address of the cred
itor.
Interest received from bonds ano
other securities exempt from .taxa
tion under the laws of .the United
States.
Pensions received from the United
States.
Taxes paid by such person during
the year, other than inheritance
taxes, upon the property or business
from which the income hereby taxed
is derived.
All inheritances, devises and Be
quests received during the year
from which an inneritance tax snail
have been paid to this state.
Insurance to the total, amount or
$10,000, received by any person or
person legally dependent upon the
decedent, in payment of death claim
by any insurance company, fraternal
benefit society, or other insurer.
But endowment or other insurance
paid to the insured in his lifetime
shall be taxable upon the excess re
ceived over the amount paid for the
Insurance.
There shall be exempt from taxa
tion the act income as follows, to
wit: . -
To an individual an income up to and
including $1500.
To huftbana ana wile ?-duu.
For each child under the age of 18
years, $400.
For each additional person, who
is actually supported by and en
tirely dependent upon the taxpayer
for his support, $400. . ,
Head of Family Taxed.
In computing said exemption and
the amount of taxes payable by
persona residing together as mem
bers of a family, tne income oi ma
wife and the income of each child
under 18 years of age shall be added
to that of the husband or iatner,
or if he be not living, to that of
the head of the family, but if not
paid by him or her may be enforced
against any person wnose income
is Included in the assessment.
Income of anv mutual savings or
loan and building association or of
any religious, scientific, educa
tional, benevolent or other associa
tion of individuals not organized
for pecuniary profit.
Amounts distributed to patrons in
any year, in proportion to their
patronage of the same year, by any
corporation, joint stock company or
association doing business on a co
operative basis, shall be returned as
income or receipts by said patrons
but may be deducted by such com
pany as cost, purchase price or re-,
funds; provided, that no sucn aeauc
tlon shall be made for amounts dis
trlbuted to stockholders or owners
of such company in proportion to
their stock or ownership, nor for
amounts retained by such company
and subject to distribution in pro
portion to stock or ownership as
distinguished Irom patronage.
Income received by the United
States, the state and all counties,
cities, villages, school districts or
other political units or tne state.
Rate Is Graduated.
The tax is to be assessed, levied
and collected upon the incomes of
all persons, firms, copartnerships,
corporations, joint stock companies
or associations, except as otherwise
provided by law, after making such
deductions and exemptions as here
inbefore allowed, shall toe computed
at the following rates, to-wit:
(a) on the first $1000 of taxable income
or any part thereof, at the rat of 1 per
cent;
b) On the second $1000 or any pari
thereof, at the rate of 2 per cent;
(c) On the third $1000 dollar or any
Dart thereof, at the rate of 3 per cent:
(d) On the fourth $1000 or any part
thereof, at the rate of 4 per cent.
(e) On the fifth $1000 or any part
thereof, at the Tate of o per cent:
(f ) On the sixth $1000 or any" part
thereof, at the rate of 6 per cent;
(g) On the seventh $1000 or any part
thereof, at the rate of 7 per cent;
(h) On the eighth $1000 or any part
thereof, at the rate of 8 per cent;
(i) On the ninth $1000. or any part
thereof, at the rate of 9 per cent;
(J) On the tenth $1000 or any part
thereof, at the rate of 10 per cent;
(k) On all taxable income in excess of
$10,000 up to and Including 15,000,
the rate of 11 per cent.
(1) On all taxable Income in excess of
$15,000 up to and including $20,000. at
the rate of 12 per cent;
(m) On all taxable income in excess ot
$20,000 up to and including $30,000, at
the rate of 13 per cent:
(n) On all taxable income in excess of
$30,000 up to and including $50,000, at
the rate of 14 per cent;
(o) On all taxable income in excess
of $50,000, at the rate of 15 per cent
X
EX-GOVERNDR
STUDIO LEAGUE
Quest Believed .Cause of
Trip to Europe.
INTEREST STILL KEEN
Defeat In Presidential Campaign
Declared to Have Deepened
Candidate's Feeling.
BT MARK SULLIVAN.
(Copyright, 1922, by New York Evening
Pot, lac. Published by arrangement.)
WASHINGTON. D. C, July 8. Ex
Govexnor Cox of Ohio arrived this
weete in Europe. It is open to every
body to, guess to what extent his
trip is .that of a (mere sightseer; and
to what extent it is inspired by in
terest In the league of nations, and
by an expectation, on his part that
sooner or later th league of na
tions issue will have, a "come-back."
Anyone who has followed Gov
ernor Cox movements with any
closeness xhirtng the 20 months since
his campaign, for the presidency, is
WHAT CONGRESS DID AS
ITS BAY'S WORK.
Senate.
Debates tariff bill. La Toi
lette concluding his analysis
of the cotton schedule. -
Bill introduced, by Ladd re
publican, North Dakota, for
transferring Muscle Shoals to
Henry Ford
Answer -received from fed
eral reserve board concerning
circular on the Glass speech,
of which HetUn, democrat,
Alabama, has daily com
plained. Bansdell, democrat. Loui
siana spoke at length regard
ing, development in this coun
try of the rice industry.
pretty sure to conclude that his in
terest in the league of nations has
Increased rather than diminished
with time. Instead of being made
faint by the personal political ad
versity that attended his associa
tion With it, it has, on the contrary,
been deepened. This is character
istic of the element of quiet but
steady tenacity that is among the
most obvious of Cox personal qualities.
Defeat Deepens Feeling.
Cox, in his campaign for the
presidency, went through, as regards
the league of nations, an intellectual
and emotional experience familiarly
known as "getting religion." De
feat, instead of making that insti
tution distasteful to him, has had
rather the effect of creating In him
a kind of apostolic evangelism.
Cox today is as devoted to the
league of nations as ex-President
Wilson ever was. And Cox. being
in some ways as tenacious of his
own purposes and ideas as Presi
dent Wilson ever was at his strong
est; and. being, on the whole, a
rather steadier-gaited man than
Wilson, a more patient and plug
ging, stick-to-it type of man, it is
quite possible that when, and if any
thing comes of the league of na
tions and Americas relation to It,
Cox may in the end be judged to
have had quite as potent a part in
the outcome as Wilson.
' League at Low Ebb.
That all depends, of course, on
whether the league of nations issue
is ever to revive and come to a
larger place in the world than it
now seems to have. At this moment
the league of nations seems to be
at its lowest ebb, both as regards its
vitality as a going concern in Eu
rope and also as regards American
public interest in it. But to Cox, as
to many others who are earnest
about the league of nations, this
phase is negligible, a mere incident
of a sort which occurs frequently
and almost inevitably in the course
of the evolution of any institutions
of the kind.
When Cox was takng a winter va
cation in North Carolina a few
months ago It was observed that
during the entire week he had with
him as his guest one of the American
secretaries of the league of na
tions. It was easy to infer thai
the course of that week of conversa
tion was directed by Cox to the ac
quisition of the greatest possible
quantity of information about the
league as an actual working institu
tion. Information la Minute. '
The three public addresses that
Cox has made during the past six
months have reflected a greater
completeness of minute information
about the league than is possessed
by any other American, and . have
reflected also a greater preoccupa
tion on his part with this institu
tion than with any other subject.
It is not unreasonable to infer that
Governor Cox's European trip Is in
spired by the desire to make himself
still more familiar with the league
as an Institution In being, and to
know exactly , what it Is doing and
why it does not fill a larger place
than It now does in the public eye,
and in that direction of European
affairs which would seem to be its
particular function.
Why it was not the league of na
tions that conducted the Genoa con
ference and other affairs within the
field the league was designed to
cover has been a . disturbing mys
tery to all American friends of the
league.
Europe's Attitude Studied.
If any of those statesmen whose
countries are in the league, and
who are supposed to be the natural
advocates and guardians of its
growth, are neglecting it for motives
not superficially apparent, . nor in
herently Justifiable in short, if
there is any sinister "sabotaging" of
the : league, Cox, on his present
European trip, may be expected to
find it out and to learn who is re
sponsible and why.
Cox, as the candidate of the Amer
ican political party which was ded
icated to the league, and as, for the
time being, the titular head of the i
party In a sense; as -one of the
small number of men whose success
In impressing their own belief In
the league on their own peoples
would make the difference between
a great future for the league and a
negligible one Oox, in that role,
has an obvious responsibility - to
which his temperament and his con
viction makes it easy for him" to
live up.
Persons who-have talked with. Cox
have got the idea that in a quiet
hut formidably steady way; he ha
dedicated himself to this thing, has
come to look upon the purely per
sonal aspect of ' the question of
whether he will ever again- be a can
didate for the presidency, as some
thing minor, but looks upon! his
duty to forward the fortunes of the
league of nations as a primary and
compelling purpose.
Viewpoint Is Impressive.
Governor Cox has not been very
active during the past 20 months,
but in occasional contacts with him
one sometimes comes to think of
him of having, as regards big
things and future things, a rather
more impressive vantage point -than
other public men who have been
more active and more in. the public
eye, merely because they have had
to do with current events from time
to time. Cox, matured andi a. little
sobered by his contact with larger
things in 1920, and made to seem
more reflective, sits in his news
paper office in Dayton and scruti
nizes the world as- it .goes by with
a more detached point of view than
is possible to men close to the
busier, smaller 1 things of today.
Anyone who has ever sat in the
audience and watched a prizefight
with any technical interest has seen
how many times It happens that
there are chances for a knockout
blow which the contestants permit
to go by.
Cox as a candidate for the presi
dency was in the ring. But since
November of that year he has had a
seat by the ringside of politics and
publio affairs, and has devoted him
self quietly but Intently to learn
ing every lesson that can be picked
up by a most earnest watcher.
World Events Studied.
. In that mood, and from that
vantage point. Cox has watched the
Washington conference, the four
power treaty, the Genoa conference
and all the rest of It go by. Ho has
watched it all with a calmer and
surer eye than those who have
taken an actual part in these rela
tively incomplete efforts to get the
world back on the tracks. At each
turn of the wheel Cox has watched
the thing that was done and has
measured it by the standard of what
would have been done if the league
of nations had been in operation.
His conclusion, reinforced' by each
installment of the day's, news, is
that the league, of nations would
have cleaned up all the mess, that
nothing else can clean It up with
equal completeness, and that sooner
or later a distracted) world will coma
around to that remedy.
Cox, to anyone who has had
knowledge of him, sitting off there
quietly in his Dayton office, is
rather an impressive figure. He
gives the impression of having suc
ceeded, as only a fairly big man .can
succeed, in getting the distractions
which would attend pre-occupation
with-any personal ambition behind
him.
Mind Is Focused.
He has focused his mind on the
cause, and has succeeded in making
whatever personal relation he may
have with it a minor matter. Cox
let no one doubt it Is a very able,
man; and the country will hear
more of him than might be sup
posed from the subsidence of activ
ity that followed defeat In his first
aspiration for great power.
In short, there need not be much
doubt that Cox's trip abroad is pri
marily to look into the league of
nations, and the European condi
tions which affect that institution:
that lie entertains a confident belief
in the eventual - recovery of the
league from its recent eclipse, and
in the necessity of America's some
time considering its relations to the
league in a new light; and that he
regards himself as having the duty
of being a spokesman and leader of
all that considerable body of
Americans who believe in the league
with a steady and earnest faith.
American Interest Ebbs.
It is undoubtedly true that at the
moment Cox goes abroad to com
plete his knowledge of the league
of nations and of the state of the
world, which he thinks the league
of nations alone can cure that very
moment is the period of lowest
vitality, so far as American interest
in the league of nations and In
Europe is concerned. Whether
America will ever again pass on the
same issue that dominated the
.nrftSid ATlt in 1 rgmna!B t lann 1 n
' ,,eni 4a n
question which, except for the
NEWS of Relief
from Summer's
hottest
jiiiiiiiitiiiiiiiiiiiiiuiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiimiiuiiiim
Tear it up!
$ Watery
f
SUMMER SUITS
$15 to
$40
Men know
weather like
how depressing
this is. It fairly
takes the "gep" out of any man.
My suits of summer fabrics are
as welcome as a cold day in July.
They're an absolute assurance of
comfort until Fall. Well tailored
models in this season's latest
styles in a variety of shades-and
and patterns.
BEN SELLING
Morrison
at Fourth
Portland's Leading Clothier for Over Half a Century
lea-inie enthusiasts, would be an
swered in the negative, based on thaJ
state of things as they now are.
Both in the minds of the public and
in the apparent disposition of the
present administration, America
seems at the moment a .'little more
distant from Europe, and more
definitely unwilling to join the
league of nations or any other in
stitution looking toward co-operation
with Europe in any formal
sense, than at any time since that
institution emerged upon the world.
It can, indeed, be stated definitely
more definitely than at any pre
vious tiine that there is at this
moment no appearance whatever of
expectation on the part of the pres
ent administration - to change the
policy of detachment from European
political affairs. In fact, this policy
on the part of the administration
seems to be held more firmly and
definitely today than ever before.
Cox's Words Impressive.
But when Cox tells you, as he has
in his few recent public speeches,
and aB his friends report his private
conversations, that -all this Is tem
porary, and that the league of na
tions will come into the foreground
again when Cox says that, you
feel like being impressed by it.
$5000 Damage" Suit Filed.,
For injuries received when the
auto stage in which he was riding
skidded over an embankment on a
Terwilliger boulevard curve and up
set, July 12, 1920, damages of $5000
are sought by H. E. Boss In a suit
ALL FURNITURE 0
REDXJCE Do
J. G. MACK & CO,
148-150 Park Street, Between Alder and Morrison
Brunswick Style 200
'100
fiere is the leader
of all phonographs
of its price. It will
gladden any house
hold, bring cheer
and happiness to
any family and that
at a cost very small
indeed in compari
son with the com
fort and joy that it
brings.
All Brunswick pho
nographs are re
markable for the
splendid character
of their tone. Richness, fullness and volume are par
ticularly characteristics that have contributed largely
to the fame that has come to the Brunswick. Buy
this one at $100 on payments. - -
- MASON &HAMUN PIANOS
148 Fifth Street, Near Morrison
Other Stores, Oakland, Fresno, San Diego, Sacramente,
San Jose, Los Angeles, San Francisco.
filed in the circuit court yesterday
againBt the Auto Trinsit company.
He was en route to Forest Grove,
and asserts that the driver of the
automobile was reckless.
DOCTOR DIES SUDDENLY
Christian E. Staffrin, 37, "victim
of Heart Disease.
Stricken with heart disease while
preparing a bath at his home, 428
East Porty-ninth street North, Fri
day night. Dr. Christian E. Staffrin,
37, died instantly. His body was
found yesterday afternoon by a
sister-in-law, ,Mrs. I. E. Bellinger,
443 East Forty-ninth street North,
who, alarmed by his absence, called
to investigate.
Dr. Staffrin's wife and six-year-old
son Robert are at Trout Lake,
Wash., on a vacation. Dr. Staffrin
was a resident of Portland for the
past three years and maintained
offices in the Medical building.
Automatic, I
Electrically Operated, I
Mechanical Refrigerator
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Now in Operation at 328 Pine St, Near
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UNION PACIFIC SYSTEM
SHOPMEN
WANTED
FOR RAILROAD SERVICE ANDAT WAGES AS FOLLOWS:
Machinists . ..
Boilermakers
Blacksmiths .
Electricians. .
Sheet metal and other workers
line
Freight car repairers....
Car inspectors
Painters, freight cars. .,.....
Helpers, all crafts. . . . . .
.70 cents per hour
...7l cents per hour
70 cents per hour
....70 cents per hour
in this
....70 cents per hour
....63 cents per hour
,....63 cents per hour
63 cents per hour
.47 cents per hour
These men are wanted to take the place of men who are striking
against the decision of the- United States Railroad Labor Board, and
their status, and the FULL PROTECTION GUARANTEED, are
explained by Mr. Ben W. Hooper, Chairman, in his statement of July 1:
"In this case the conflict is not between- the employer and the oppressed employes.
The people of this country, through an act of congress, signed by President Wilson,
established a tribunal to decide such disputes over wages and working conditions, which
are submitted to it in a proper manner." It is the decision of this tribunal against which
the shop crafts are striking. '
t
, "Regardless of any question of the right of the men to strike, the men who take
the strikers' places are merely accepting the wages and working conditions prescribed
by a government tribunal and are performing a public service. They are not accept
ing the wages and working conditions which an employer is trying to impose. FOR
THIS REASON PUBLIC SENTIMENT AND FULL GOVERNMENT POWER WILL
PROTECT THE MEN WHO REMAIN IN THEIR POSITIONS AND THE NEW
MEN WHO MAY COME IN."
Apply to .
W. J. HANLON,
410 Wells-Farga Building, Portland, Oregon
Cc fcteriutcueent' Office, Room 2 Union Staff.