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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (July 16, 1922)
THE SUNDAY OREGONIAN, PORTLAND, JULY 16, 1923 15 nil IS HELD SUICIDAL Grange Measure Would Keep Out Capital, View. DEFECTS POINTED OUT Bankers and Business Men Are TJnlted In Belief Graduated Ijervy Would Handicap State. Several million dollars of capital ready for Investment in Oregon will not be placed here until after the state's electors have disposed of the graduated income tax measure placed on the November election ballot by the Oregon State Grange. Bankers and business men who nava studied the grange measure are unanimous in the belief that adoption of the proposed tax would keep out and drive out a tremen dous volume of capital. '1 was told only yesterday," com mented a Portland banker, "of a 15,000.000 investment capitalists were preparing to make in Oregon in the very near future. On ac count of the proposed graduated Income tax plans for the investment re held in abeyance, and of course the money will not come nere ai an if the voters approve such a tax system. It is entirely too confis catory." Destruction Is Possible. Tha oblection that the proposed tax is "confiscatory" In taking as much as 15 per cent of the larger incomes was but one or many aa vaneed yesterday by business men and financiers of Portland who have studied the proposal. Several pointed out that It must keep away many prospective industries and settlers. In so doing it is held cer tain to weaken and destroy instead of building up market outlets for Oregon products. Other tax students said they see in the measure illogical and unjust features. Others pointed out dan gers of extravagance and an In crease instead of a decrease in ex penditures by the state. Nearly every citizen interviewed decried the fact that the size of all taxable incomes would be made public. As an attempt to shift tax burdens, the measure would prove a disappoint ing failure, In the opinion of most business men. Provisions Are Analysed. Provisions of the Initiative In come tax measure proposed by the state grange have been summarized In an analysis by Whitfield, Whit comb & Co. of this city, salient fea tures of the epitome being as fol lows: Rates provided in the bill are graduated and range , from 1 per cent on $1000 to 15 per cent on $50, 000 of taxable income, with the pro vision that the rate for each bracket applies uniformly to the entire amount of taxable income. Tax on $1000 is 1 per cent, or $10, while tax on $2000 is 1 per cent of the entire amount, or $30. Tax on $50, 000 is 15 per cent of the entire amount, or $7600. Rates apply to incemes of individuals and corpo rations without consideration of Invested capital. Accordingly, all corporations with net income of $50,000 or over are subject to a 15 per cent state income tax on entire net income. This is In addition to the 12 Vi per cent federal income tax, making a total tax on such corporations of 27 H per cent. The incomes of all forms of busi ness exoept co-operative and mutual associations are taxed alike, wheth er corporation, partnership or indi vidual. The tax is upon all income re ceived from rentals, stocks, bonds and other evidences of Indebted ness within or -without the state, and from such proportion of other Incomes as is from sources within the state. Exemptions Are Listed. Exemptions are these: (a) Cor porations taxed on net income with out any specific exemptions other than allowable expenses, (b) Un married persons are exempt $1600 over allowable expenses and $400 for each dependent. (c) Married persons are exempt $2500 over al lowable expenses and $400 for each dependent. The bill taxes all insurance re ceived by persons not legally de pendent upon decedent and insur ance in excess of $10,000 received by persons legally dependent upon decedent. The bill makes it the duty of the tax commission to demand and receive copy of federal tax returns filed. It declares all Income tax assessment rolls shall be a public record. The bill provides for appeal from assessment made by tax commis sion, but tax must be paid as as sessed, and wait for refund if tax overpaid. Hove Beld Snieldal. The banker first quoted explained how this state income tax would disrupt the flow of southern and eastern capital sow bringing prom ise of extensive development of the state's timber Industry. "Not only would the measure stop development in the timber industry, but it would stop activities in many other industries," he said. "In the matter of our Industrial develop ment it would be little short of sui cidal. "No one group of our citizens can Dear an the taxes. Ten per cent can't bear the tax burden and pros per. In the end, however, they would not bear the burden. It wpuld most certainly be shifted back to the shoulders of the very people who now seek to dodge a just share." Public to Get Burden. Here is tive same thought as ex pressed by Guy W. Talbot, presi dent of the Portland Gas & Coke company: "The effeet of the proposed in come tax on corporations would be to add the amount of the tax to the cost of operating the business, so that in the case of public utilities, for example, now earning no more than the fair rate of return per mitted by law, the cost of the util ity's service to the patrons would have to be increased by an increase in rates in order to take care of the additional tax burden. The su preme court of the United States has held that income taxes on cor porations arc a necessary part of their operating expenses, which must be paid and deduct-: . before there are any net earnings avail able for distribution to the stock holders, so, necessarily, any addi tional tax burden on a public utility would have to be paid by the user of the service Instead of by the stockholders." Mr. Talbot also pointed out one of the unjust features of the meas ure subject to criticism: 'A- jnantfssUjr- onjuafc featur of the proposed law is Its failure to I take into account the relation be tween the income and the Invest ment in the business in assessing the rate of tax. For example, a cor poration earning $5000 a year on an investment of $20,000, or an annual return of 25 per cent, would pay a tax under the proposed law of 8 per cent, whereas a corporation with an Investment of $10,000,000 and earning an annual return of $500,000, or 5 per cent upon the in vestment, wpuld pay a tax upon its entire income at the rate of 15 per cent, or five times the rate paid by a corporation earning' five times as much in per cent upon Its actual in vestment. ' "This method of assessing tax would be particularly burdensome on utilities which require large amounts of invested capital and whose annual income, while large, is nevertheless low in proportion to the investment." Extravagances Decried. While seeing in the proposed measure several objectionable fea tures, Ben Selling, Portland clothing merchant and former president of the state senate, particularly de cried the dangers of extravagant state expenditure and of open pub licity for the tax rolls. . "I am confident," he said, "that the measure would raise itoo much FOREST GROVE EIRE CHIEF IS DEAH OF STATE. J. G. Lennevtlle. FOREST GROVE, Or., July 16. (Special.) When J-. G. Lenneviile, chief of the local fire department, attended the state convention of fire chief at Marshfleld recently he discovered that he was the oldest fire chief In point of serv ice In Oregon. Chief Lenneviile ha been head ' of the Forest' Grove department for 20 years. He began fighting fires when he was 19 years old. One son of the chief is a mem ber of the Portland fire bureau and the other is a truck driver in the Forest Grove department. money. If too much tax money is raised extravagant spending 1b sure to follow. Then there is the lea ture of publicity for the tax rolls. This Is extremely undesirable. No business man wants his competitor to have any such chance to check up on his business, and It's unbear able to think that this would come about." William F. Woodward, of the wholesale and retail drug business and candidate for the state legisla ture, pointed out that the govern ment maintains secrecy regarding income tax returns, and was out spoken ih condemning the grange plan for publicity. Secrecy Is Necessary. "Secrecy Is manifestly necessary and just," he said. "To attempt any such proposed publicity would only create a lot of liars, sneaks .and Olieves." A readjustment of taxation in the state is advisable, in Mr. Wood ward's opinion. He believes in a conservative income tax, such as obtains in certain eastern states, but said the graduated tax measure proposed, for this state has too many objectionable features to meet with his approval. A prominent city official pro fessed to see nothing in the tax measure to commend it to him. One of his objections was this: "Opera tion of this system would make it entirely too easy to increase the tax. If additional "funds seemed to be needed it would be entirely too easy for the voters to agree to raise the tax 1 per cent all along the line." Tax Held Illegal. "Note how illogical and unjust the tax is made," pointed out a prominent wholesale merchant "The man who pays on $1000 In come is assessed $10, but the man paying on $2000 must dig up $40. He doesn't pay the same as the other fellow on that first $1000, but double as much. But, worse yet, ob serve that the fellow whose income above exemptions runs to $2100 would have to pay $63 taxes, or $23 more than the man of $2000 income. It would cost this man $30 in taxes if he were honest about reporting that extra $100 income." In the opinion of O. W. Mielke, president of the Portland Chamber of Commerce, one of the worst fea tures of the grange tax measure would be its effect In ' retarding Oregon's population growth. Handicap Is Feared. "Everyone familiar with our state." said Mr. Mielke, "knows that one of our greatest needs is to build up the state through increased population. There doubtless has been a general drift toward income taxes, but if ws are going to permit any such legislation It must be rea sonable. As I analyse this measure it is entirely too drastic and will not only keep people out, but will drive many present residents out. 'The further fact that other near by states do not have any such law would be' very hurtful. It is easy to see that we would have to show tha prospective investor that he could make 10 to 20 per cent more in Oregon than in an adjoining state before we could hope to Inter est him In coming here. This is en tirely too much of a handicap to assume." FIRE HAZARD IS DEFINED Property Owner Responsible to Neighbor, Says City Council. "Property owners have a legal responsibility to their neighbors, and if they permit the property to get in s,uch condition that it consti tutes a fire hazard and fire results, they would be responsible for such damage as might result.' The above opinion was submitted to A. L. Barbur, city commissioner, by City Attorney Grant yesterday afternoon In reply to the former's request for a definite statement in connection with the municipal cam paign fofc cleaning vacant lots. It is unlawful for any person to permit condition on property owned by him that would constitute a fire hasard, Wi 8 ' - u ?i It J? 4 s V r?" Is, vr sjA , ii I 'i 1 Head T-be CXrg"niajvIlfJdJ,Jw-liicl h bad gp&inte a, land&caxxtj ARTIST WINS PRIZE WITH RENT LAW AID American Academy in Rome Bestows. Fellowship. JUDGE CURBS LANDLORD 'The Inspiration of Music" Done by Alfred Floegel While Young Painter Was In Poverty. NEW TORK, July 2. A fellow ship in painting has been awarded by the American academy in Rome to Alfred Floegel. Seated in his little room in an east side tenement house, Alfred Floegel told the story of how he won the prize, which was offered for the best "composition in color" submitted to them by an un married artist, who is a citizen of the United States. "I owe more than I can repay," he said, "to a judge in the Yorkville court. 'I -don't know his name, and he has probably forgotten mine, but when he decided 'that my landlord could not turn me out of my room because I refused to pay a higher rent, he made it possible for me to win the prize." - j In order to compete for the prize of Rome, which consists of a three year fellowship at the American academy in Rome, it is necessary for the candidates to spend a speci fied length of time working under the supervision of the instructors of an institution approved by the academy. This is done that the con ception and execution of the com position may be strictly the artist's own and as the instruction read "he shall have no communications with other persons." : - Rent Increase Protested. "After. I made up my mind last fall," said Mr. Floegel, "to try for the prize I determined to go to the National Academy of Design, the In stitution chosen by the committee on fine arts for holding the competi tion'. I had saved a little money from my work for a church decorat ing company, enough I thought to carry me along if I could cut out every unnecessary expense. I fig ured out how my rent would be, what my meals would cost and my tuition at the school. "In thespring there was some delay in deciding the results of the preliminary com petition whioh prolonged ' the time nearly three weeks, This made me sacrifice even more to keep from having to stop school and go to work. ' "During March the landlord an nounced that the rent would b raised In the house. I , protested aeainsf paying a higher rent and took the matter into court. I testi fied before the jijdge twice, I told him of my situation, and that I could not afford to pay any more money. I was living in a ian oi fancy then. I had just conceived the idea for my picture for the acad emy, "vlt was to be "The Inspiration of Music." Man having received the inspiration of music comes to bring before her throne every human emo tion. pathos, mirth, ambition, love and devotion. I did not tell him anything about that, but he must have understood, lor he said, air. Floegel, you can continue to oc cupy yoiir room at the same price you are paying now. Work om Pictures Intensive, "During the last four weeks of the competition I worked with every bit of spiritual energy I naa. My pic ture was to be eternal; it was to show all the good of life "After I turned in my. store I be came somewhat discouraged. As the weeks passed by and I did not hear anything. I thought that I had lost. I thought that I stood a poor chance against the others, who had had so much more training than I. "My funds became so low .that had to give up my free lance work and take a .contract with a church decorating company for patnting angels. Last Wednesday evening when 'I came in from my "work about t o'clook, there was a letter in my mail box. it told me I had won the prize." ' The prize of Rome which Mr. Floegel has won in painting is the annual scholarship offered by the American academy in Rome, philanthropic organization endowed by the late J. P. Morgan and others- for the purpose of enabling talented young American students to study art, sculpture and architecture in Rome. The students winning the fellowships are permitted to spend three years at the academy study ing under the instructors with free residence at the academy, $1000 a year far other expenses and the opportunity for-travel. The stipend Js provided by the Metropolitan Museum of Art as trustee of a fund established in memory of the late Joseph H. Lazarus of New York. Mr. Floegel is the ninth fellow of, the academy to receive an appoint" raent on the Lazarus foundation. such appointment being made once every three years. Career Began as Decorator, Mr. Floegel Is 27 years old. He was born in Leipzig, Germany, September 4. 1894. He is the son of a lithographer, but is the only one of a large family who has taken the study of art. At the age of 14 ne was worKing for a church deco rating company which .traveled over Germany, in 1912 he became possessed of a desire to see the world and hired out as a painter on a ship sailing to Philadelphia. "Wilis on the ship he attracted the attention of the captain, who per mitted him to draw water. color saetones in nts spare time. Later he sold several of these to German magazines. In November, 1914, he left his work when the ship docked in Now York and determined to make his home Kere. He did not know the language then and most of the prop, erty he had consisted of some o( the water color sketches which he had made on board the ship and during his travels in Germany. He eays that he stood out upon Fifth avenue sailing "Water colore? Water col ors?" until a policeman chased him away for selling without a license. Later he got work as a church dec--orator and at night studied af. the New York School of Industrial Art. He also took a course in life at the Beaux Arts institute,, where he won several medals. Professors Frances C. Jones, Charles C. Curran and Ivan Ollnsky rendered him a great serv ice through their careful criticism of his work. As Mr. Floeget told the story of the ups and down of his life as an artist his room resembled-, that of on of the art-loving cloister monks in the 14th century. Studio Crowded With Art. Rumble of the crosstown cars and the flickering of the street lights were the only reminders that the scene was in New York city. In front of him stood a large screen maa 01 sneepsmn leather, upon High mortality of underweight people makes thempoor risks, say Life Insur ance records. II you are under weight, you axe under "par," more susceptible to disease and you are destined to be shorter lived. These facts are proved by the statis tics of 43 life insurance companies, compiled on the history of millions of policyholders. Weight a true index of health Strength, endurance and vitality are stored in the tissues and muscles of the" body always available to meet the de mands of physical activity andto fight, off infection. " - People who are thin and under weight are unfit because they lack the tissues containing the resources of health. If your body tears down more in a day than it builds up in a night you are Insurance - TaJle design. Behind hlro stood another screen of satin-silk adorned with Mack butterflies. The wtellg were almost completely covered with studies from life and designs of acanthus leave taken from a Coria thian capital. Upon the west wall, Btretchlng nearly the entire length, was a piece of tapestry depicting the Last Supper. A mantel along the east wall was filled with cera mics and unique designs of pottery. Mr. Floegel plans to sail for Eng land about the middle of August. He will remain for a few weeks study ing art in the British museum, the Museum of Liverpool and some of the old English churches. He will divide his time during September in touring the art galleries of England, France and Germany In order that he may make a comparison of the art of these countries with that of Italy when. he. takes up his residence in Rome. LONG BEACH DEVELOPING Councilman Iluth Says Future as Resort Is -Assured. 1 Many Improvements are being planned by the town officials of Long Beach, Wash., when the pres ent tourist season Is over, according to C. E. Kluth, Long Beach council man, who visited Portland yester. day. By September a paved street the ull length of the City Is ex pected to completed; andwork will be begun by the ' town, co operating with the state, on a 16 foot wide hard-surfaced road from Ilwaco to McGowan. An excellent auto .park, with many conveniences, brought more caTS to Long Beach up to July 6 this season than were there , all last year, re ported Mr. Kluth. He said that Long Beach will be come the most widely known seaside resort in the northwest in a few years, as the property owners are just beginning to awaken to its pos sibilities and re making prepara tion to develop them. Apartment Looted for $14. A thief Tanaacked the rooms of Mrs. F. W. WhUman in the Leads apartments, 401 V4 North Jersey street, and made away with a purse containing $14. Mrs. Whisman re ported the theft to the police yeeter. day morning. Entrance was gained by using a pass key on the kitchen door- The robbery occurred while the- occufaots- w&re absent. V Are you under weight? If so, take Yeast Foam Tablets they will increase your appetite and build you up tables show the relation between of Average Weight For Men Women are three to four pounds less l- HEIGHT Yra. JSYnt JoYrm. 35Y. 40Yra. 4SYn. joTti Sd, 5 fa. 2in..... 122 126 130 132 135 137 138 f!39 '5ft. 4in..... 128 133 136 138 141 143 144 145 jfc. 6in..r.. 136 141 144 146 149 151 152 153 5k. 8in... 144 149 152 155 158 160 161 163 SitlOin..... 152 157 161 165 168 170 171 173 6h. Oia..... 161 167 172 176 180 182 183 184 the only pure whole yeast in convenient tablet fowl $2,700,000 HOTEL IS GOAL OF SEATTLE BUSINESS MEN Great Community Enterprise to Be Launched July 17, When 400 ' Canvassers Will Start Drive for Funds. PUGET SOUND BUREAU, Seattle, Wash., July 15. Seattle starts Monday, July 17, on the biggest community enterprise that has been undertaken since the financing of the Alaska-Yukon exposition, held here In 1909. The objective this enterprise is the building of a great modern hotel that will meet what are declared to be the present requirements of the city and be ade quate for future needs. For this purpose stock and bonds are to be sold to a total of not less than 12,700,000. An over-subscription is confidently expected by those who made the closest possible canvass of the field. Public Campaign Opens Monday. The publlceampalgn opens Mon day and is scheduled to close July 26. Organization has been perfected! and a great deal of preliminary work has been done, as is custom ary in such undertakings. In the course of this work the leaders In the movement have received assur ances that warrant their expecta tions of complete success. . The press of the city is giving united support, and all causes of local con tention seem to have been sub. merged, temporarily, at least, In the general desire to get that hotel. The Community Hotel corporation of Seattle has been formed under state law to carry on the campaign, administer the finances and con struct the building.- Its president la Frank Waterhouse, president of the Seattle Chamber of .Commerce, and the directors and executive com mittee are representative of all the strongest' business elements of the city. The campaign -for general subscriptions is under the direction of a citizens' committee, headed by W. L. Rhodes. Working with this committee is the canvassing organs ization, consisting of eight divisions of five companies each, each com pany composed of ten men 40 com panies, with a total of 400 men. S10O Subscriptions to Be Taken. 8ubscriptions are to be taken in units of $100, to be multiplied ac cording to the means and disposi treading on dangerous ground. You must build yourself up by getting more nourishment from the food you eat. What to do to build up Science has found that yeast is the rich est source of the appetite-stimulating and body-building element called vi tamin, which many foods lack, through elimination, by the time they reach our tables. And yeast, in its purest, most potent and easy-to-take form is now available in Yeast Foam Tablets. Take these tablets in connection with your regular food. They are good for young and old Sold by all druggists Northwestern Yeast Co., Chicago , Makers of the famous baking yeasts, ' Yeast Foam and Magic Yeast under weight and shorter life EXTRA MORTALITY DUE TO UNDERWEIGHT Percentages oi Under Weight ' 10 20 30 EXTRA MORTALITY ACES 30 1 1 35 10 40 30 30 (5 15 for. W ': fo' '$' 15 tions of the subscribers. Each $100 subscription pays for one share of the capital stock at the par value of 110. and also buys one bond of the par value of $100 at $90. The bonds are 25-year, T per cent, first mort gage bonds, and are callable In whole or in part at 105 during the first ten years, and thereafter at a premium decreasing one-half of 1 per cent each year until par Is reached. A bond issue of $3,000,000 has been authorised, but after $2,700,000 has been received! in sub scriptions, the remainder of the bonds will not be issued except in ease of some unforeseen contin gency. Hotel Site Selected. The site for the new hotel was se lected immediately, after the corpor ation was formed, thereby eliminat ing one possible cause of rivalry and dispute. The hotel is to occupy an entire block on Fourth avenue, the property being owned by the Uni versity of Washington and under leaaa to the Metropolitan Building company until November 1, 1954. At the expiration of this lease the hotel, together with all the other big buildings constructed by the Metropolitan company on this tract will revert to the ownership of the university. The hotel site la now covered with one-story brick struc tures, with the exception of the Metropolitan theater, the Klaw & Er lang.er house, which takes care of all the better-class traveling at tractions that come this way. The sub-lease to the hotel corporation provides that the theater shall not be disturbed, and tentative plans for the hotel' mak the theater an in tegral part of tha greater structure. Original Project Abandoned. The sits is one on which the Metropolitan. Building company, a little more than a year ago, pro posed to build a hotel under Its lease from the university. But ths build ing company's proposition carried conditions affecting the leasehold of the remainder of the university tract which were not acceptable to the board of regents, and the project i was abandoned. Tha present plan,! "feast Foam. Tablets are recommended for loss of appetite indigestion lack of energy ; under weight pimples boils nervous troubles run-down conditions vrlSTFft k Mi rUSTFOMI Vitamin and the sublease to the Community Hotel corporation, have the ap proval of the university authorities. The hotel corporation is to pay the Metropolitan Building company $25, 000 a year ground rent and the un amortized portion of the improve ments now on the ground, amount ing to $75,000. The matter of operating the hotel after completion is left open to fu ture ' consideration. Proposals will be considered from operating com panies, or the hotel corporation is prepared to form an operating com pany under Its own auspices. Scots Stage Party. Friday night the pleasure barge Swan carried ft capacity load of Scots and their friends for theii third annual river excursion. The commltteo in charge, composed of members of the Daughters of Scotia, Clan Macleay and the kilty band re ported that it was the most success ful of their experience. Much of the ucce-s of the undertaking Is Genuine Diamonds "eId- Send for Catalog Beautifully illustrated, qnotei sen ationally low prices and give com plet information about thyXoftia confidential charge account system. bent tree upon request. Any article cat prepaid lor examina tion no money la advance. ft n r- I feet cut. radiant, blue fe white Dtamnnria. SnHri t Gold Mountinea mm here i howa. Order by number. ' MERIT tONDS 40EPTQ T PAR DIAMOND RINMl 1 White Gold. $100. S White Gold, or Green Gold with White Gold prongs, 7J. B White Gold. S75. 10 White Golii, or Green Gold with Diamond aet in White Gold. SJ7.SO. 11 Yellow Gold. Diamond act in White Gold. 1150. tWwEDOINaHINGi Platinum. t2S; Green or Yellow Gold, 10. 7 WATCH, 1 7 Jewef, said -filled, guaranteed 25 year. $27.50. fa WRIST wATCei, White Gold. ilS-Jewel. 13 j. '. -Jewel, $45. CREDIT TERMS: late eo.ua! paymenu within eight months. late equal payments I0FTIS THE NATIONAL JEWELERS Dpt.B421, lOS N. Stat St, CHICAGO. ILL. & CO. Sac . arosca w uadids emzs Jticoniparison H if 1 N and defy competition, in V (M mm Our brat rile Mr. I 1 1 i ts f attributed to the , efforts of Pips Major Macdonald and Pipe Sergeant Dave Gray of the kilty band. Tha band gave a public half hour ooil cert at tha East Morrtoon-streat dock before departure. 8. & H. green stamps for cash. Holman Fuel Co., coal and wood. Broadway 6858: 560-21. Adv. The Great Lang Gas, Wood and Coal One gaa burner does all your Cooking and Baking, heating tha water at the same time with the ante gas. From $84.00 Up, Installed F. S. LANG MFG. CO. 191 Fourth St, Portland, Ore, Range