Image provided by: University of Oregon Libraries; Eugene, OR
About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Oct. 22, 1922)
0 DIVIDED PROFITS PUCE HEAVY LEV! Erratic Course of Stock Ex change Explained. LARGE RESERVES ARE HIT Hundreds of Great Enterprises Expected to Change Policies as Result of Ruling. visited 152 towns and made 3260 inspections. There were 562 parcels of food stuffs condemned and 12 sacks of ground oats were held for investi gation. During this period there were nine complaints filed against violators of the state food laws and nine convictions made, the fines to taling $545. Supervisor Adams belfeves that exhibits of his division at the fair this year have created much more comment than in the past. .Fair patrons were instructed how to test impure food products and to guard against misbranded drugs. They were asked to co-operate with the department and turn over an untit-for-food product for investigation instead of consigning it to the gar- can. VISIT TO AMERICA PLANNED BY KAISER American Fleet Would Have Been Reviewed by Victor. ALL WISDOM IS CLAIMED YOUNG W PJin s : YOUTH WHO TRIES TO MARRY MIXOK GIRL IS FREED. BT HARDEN COLFAX. (Copyright. 1022. by The Oregonian.) WASHINGTON, D. C, Oct. 21. (Special.) The outstanding develop ment of the year in industry and finance rapidly is drawing to a climax' at the bureau of internal revenue, the tax collecting arm of the federal government. It con cerns the distribution of the earn ings of corporations. It is regarded here as being the prime cause of the spectacular and erratic course of the New York stock exchange market for this week. It probably will result in a complete change of. policy by hun dreds of great enterprises which have built up great reserves out of earnings, and, in the opinion of officials here, will increase income tax collections by $100,000,000 to $200,000,000 annually. This remarkable and unexpected situation has been caused by a single section of the revenue law of 1921 which apparently had been generally unnoticed until the last ten days or two weeks. That sec tion No. 220 prescribes a tax of 25 per cent upon undistributed proYi's of corporations where such profits exceed a sum meeting the reasonable requirements of the business involved and gives the commissioner of internal revenue the power to decide what shall constitute a reasonable sum. Huge Dividend! Declnred. Recent huge stock dividends, de clared by oil and industrial com panies, are directly traceable to that section. Others are to come. Until today it had been assumed that the commissioner of internal revenue would aid corporations in deciding on a "reasonable limit'' amount of undivided profits which a corpora tion might hold without paying thereon the 25 per cent tax. That belief, however, according to au thoritative information given this correspondent, is all wrong. The commissioner of internal revenue will not, under any cir cumstances, assist- any corporation in determining what is a reasonable amount of undivided profits. That Will have to he decided by the corporation itself. The commission may sustain or upset the corpora tion's decision, but the corporation, having made up its mind and sent its tax return to the bureau, will have to take the consequence. Time Not Limited by Law. If a corporation retains any of its earnings in the form of undivided profits it is liable to the 25 per cent penalty upon the portion thus re tamed. This applies not only to earnings for the current .year but for previous years. The law does not limit the time within which such earnings have accumulated. It says the penalty shall be attached to -corporations permitting their gains or profits to accumulate In stead oi Being divided,' and pre scribes that the 25 per cent tax shall be "levied and collected for each taxable year." Representative Frear's sugges tion that through the liberation of undivided profits the government would receive- $200,000,000 more in taxes than it now receives is re garded as fairly accurate, the esti mate of total undivided profits oeing placed at $2,000,000,000. Great Concern Is Noted. threat concern on the part of corporations followed publication of the dispatch last week relating to mis situation. For several days the umcers oi ine ways and means committee and the senate committee, uutn navmg sponsored the revenue bill through their respective houses, were besieged by telephone in quiries, many of which came from out of town. The New York stock exchange responded to the situation with the freakiest market of years, the chief fluctuations being in the prices or stocks holding great ac cumulations of undivided profits. Aitnougn tne internal revenue bureau will not assist a corporation in determining how much of its un divided profits it may retain with immunity to the 25 per cent penalty, regulations have been preDared to guide corporations in this respect. "An accumulation ef gains and profits Is unreasonable," says the regulations, "if it is not required for the purpose of business considering all the circumstances of the case." Hundreds Come Under Rutins. This is interpreted here as mean ing that corporations which have in vested undivided profits in stocks and bonds which simply pay divi dends and are not used in conduct ing the business or as a sinking fund, will have to divest themselves of such securities and distribute the money thus invested. There are hundreds of corporations falling within this category. "No attempt," the regulations con tinue, "can be made to enumerate all the ways in which gains and profits of a corporation may be ac cumulated for the reasonable needs , of the 'business. Undistributed in come is properly accumulated if in vested in increased inventories or auuiuons to ..ianc reasonaoiy needed by the business. "It is properly accumulated if re tained for working capital required by the business or in accordance with a contract of obligations placed to the credit of a sinking fund lor the purpose of redeeming bonds issued by the corporation. "The nature of the investment of gains and profits is immaterial if they are not in fact needed in the . business." That is all the commissioner has to say and he says it in his regula tions. Further than that, each cor poration must look to its own tax and legal specialists and take its chances. Governor Hart Extends Clemency to Robert B. Cliurchill, Who Got License by Fraud. VANCOUVER, Wash., Oct. 21. (Special.) Robert Benjamin Churc hill 23 years of age, who has been in jail here since July 7 for subor nation of perjury when he attempted to marry a minor girl, today was i tolle(J the advantages of paraoneu Dy governor naru .Trilv 7 Phiirchil! and T.nilise T Bateman, 17,? both of Gales Creek, ! il Permitted calling even the presi- Or., arrived here and procured a marriage license. David Bunch acted as 'witness, assuming the So Man, From Adam to Edison, Is So Wise or So Accom plished, Memoirs Reveal. Sarcastically analyzing the dethroned kaiser's book, Mr. Harden, reveals the supreme egotism of the war lord and shows how utterly ridiculous some state ments therein really are. He also con tributes & ltith chapter telling of the plans tile kaiser had made for convert ing, the United States from its de mocracy. ' BY MAXIMILIAN HARDEN, Germany's Foremost Publicist. (Copyright, 1922, by The Oregonian.) , BERLIN, Oct. 21. (Special Ca ble.) Mark Twain humorously ex- repub lican form of government because name of Johnny Williams of Port land, who is the husband of girl's sister, and swore that girl was of legal age. The girls father got wind of the elopement and communicated with the sheriff litre, who succeeded in preventing the marriage. Both Churchill and Bunch were arrested, the latter being held at the county jail several weeks and then fined $500, which he paid. Churchill was sentenced to jail for six months for his part in the affair, and his term would have ex pired Jaquary 10. theiment. the PICKETS WATCHMANSIGN STRIKING MIXERS INVADE FIFTH AVENUE. Home of E. J. Berwind, Head of Coal Company, Target of Union Men. NEW YORK, Oct 21. The delega tion of striking miners from Somer set county, Pennsylvania, employed by the Berwin-White Coal Mining company yesterday extended their picketing to the Fifth avenue resi dence of E..J. Berwin, in front of which two miners walked up and down, carrying placards, reading: 'Just looking at E.. J. Berwind s home, we, his evicted miners, have to live in tents and chicken coops." Three women and two men, carry ing placards, continued their picket ing in front of the Berwin-White offices in lower Broadway. James Mark of the United Mine Workers of America, head of the delegation, said that the proposed posting of pickets in front of the office of John D. Rockefeller and the Consolidated Coal company were being held in abeyance, pending the outcome of a meeting of the coal company s officials, with wnicn it was reported a settlement was being considered. LINN REGISTRATION GAINS Increase ot 480 Over May Prima ries Shown in County. ALBANY, Or., Oct. 21. (Special.) Registration in Linn county for the general election next month is 480 over that for the May primaries, figures announced by the county clerk today show. The total num ber of registered voters in the county at present is 11,124. This is a decrease of 2217 from the presi dential year of 1920. Of the 11,124 registered, 6675 are men and 4449 are women. The republican party has 8997 men and 2677 women, the democrats 2303 men and 1429 wo men, prohibitionists 70 men and 148 women, socialists 108 men and 54 womenN Independents and non partisans number 338. City registration figures show gains. Albany now has a total registration of 2727 in .nine pre cincts. Lebanon's three precincts total 1027. Four precincts" in Brownsville have 769. Harrisburg in three precincts has 468. Scio's two precincts has 470. dent an ass it necessary. On the other hand, p- monarchy has an ad vantage, too, for only a monarch would boast, even after dethrone- of possessing all goodness. all courage and foresight. Not only does he say so, but he gets his esti mate printed throughout the world and is paid higher for it than the most popular movie star would be. while the latter would become ridiculous if he attempted such self-glorification. Wilhelm's book proves he was: Chosen of God, anointed of heaven, theologian, philosopher, pedagogue, historian, hygienist, statesman,, sol dier, sailor, shipbuilder, economist, poet, painter, musician, architect, engineer, preacher, costumer, arche- ologist, race psychologist, theater! manager, hunter, horseman, yachts man, writer, photographer, cinema tographer and in all arts unsur passed and unsurpassable. He fore saw further than Richelieu, Wash ington or Bismarck; killed more game than Louis VIII; his speeches surpassed those of Cicero or the sermons of Bossuets. Blunders Laid to Others. If blunders were made, it was be cause his advice ws not harkened to and because the sublime omnis cence of this man, who united the genius of Solomon, Pericles, Moses. Buddha, Jesus,- Alexander, Caesar, Napoleon, Newton, Praxiteles, Shakespeare, Luther, Hume, Kent. Marcus Aurelius, Lincoln and all other great men from Adam to Edi son, and even Mary Pickford, was restrained within the narrow limits of the imperial constitution. You doubt it? He says so him self, and ' the king, kaiser and war lord by divine right can only speak the truth. But his book, Americans exclaim, is a complete failure be cause there was nothing really new in it. How wrong this verdict! I will only point out three, statements that are utterly new to everybody: The first: The United States made an alliance 15 years ago with England and (Don't laugh now) withJapan against Germany. The second: Good-natured, mod est old Wilhelm the First, who never knew either correct grammar or spelling, was the greatest intel lectual of his time. Plot Seen In Uniforms. Third: The British warlike in tentions were proved by the stocks of British military uniforms in Bel gium. And is it equally new that the kaiser, who calls himself God's representative, can sell his memoirs at maximum prices to the newspa pers of the people represented by him as cunning economics and per jured robbers, and that the all highest war lord, -who flees in fear to a foreign country, can preach from that safe refuge to compat riots whose courageous endurance in the miseries of the war is not denied by their bitterest enemy? Moreover, nobody can judge the book's 15 chapters without knowing the 16th, or decapo, movement of the crowned virtuoso.. Here, ladies and gentlemen, is an extract there from which may whet your appe tites: "King Edward, my beloved uncle, was so swollen with envy and ha tred against me that he could not button the bottom button, of. his waistcoat. Czar Nicholas was a weakling who never kept his word. King Victor Emmanuel was jealous of my manly heroic figure and my sympathy with the popular mood. President Poincare was blinded with the desire of revenge and because PURE FOOD MEN ACTIVE Washington Inspectors Keep Close Watch for Violations. OLYMPIA. Wash.. Oct. 21. De spite the fact that the attention of the pure food and drugs division of the state department of agriculture was 'directed towards the prepara tion of exhibits for various fairs throughout the state from July 1 to A;:gust 31, Supervisor Will H. Adams reports that his inspectors Mathis for - Quality mn JfeMSir i"""' I Every Garment Challenge Value at Its Price THERE is so much qualityin our new Fall Suits and Over coats and they can be had at such reasonable prices that you will find this the place to buy your clothes. Suits d Overcoats to Two-Pant Suits $35 to $45 SILK AND WOOL NECKWEAR "Surety Scarfs," guaranteed $ i .50 to wear one year, special value J, Manhattan Shirts Interwoven Hose Vassar Underwear Dobbs Hats Knitted Vests Wool Hose Golf Sweaters Dobbs Caps meics we; FIFTH AND MORRISON (Corbett Building) of my fame hated monarchy, while the little states could not resist the orders of the big ones, which in turn were obliged to obey the dic tates of the grand orient of the Masonic lodge nd other Jews. But Americans made their greatest mis take. They would never have been brought into the war against me by Northcliffe, Tardieu and Company if they had known my plans. . They will paie with shame and regret when I tell them. Although I knew the president of the United States could not return my visit, I intended directly after the conclu sion of . peace to fly over Cousin George's land, prostrate in the dust, in a Zeppelin and remain four weeks in the land of the Stars and Str'pes. It would have been a much ereater event than when my brother Henry visited my friend Teddy when he was president. My costumes were all ready. "I would have reviewed the American fleet in an admiral's uni form and in the silver helmet ot the guard would have dedicated a monument designed by myself to my ancestor Frledrich the Great. In the eastern states I would have worn a dinner jacket or a business suit. but in the west would have affected the costume of an old gold digger cr a modern farmer. I would have inspected the soldiers on Fifth avenue in the purple cloak of the Black Eagle and in Wall street would have appeared, iif" court hunt ing uniform. "In Washington I would have ap peared as a general field marshal, with full decorations. I would .have received every delegation in the uniform of the country of their ori gin, and would have distributed so many orders and titles that Ameri cans at last would have realized wherein the proper charm and aim of life lies. We should have, heard no more hereafter about democracy and such foolishness. I had still greater plans to lecture in Carnegie hall on the Bible and tne iNortni, ft , tt.. .alatinnahln I of the big Bertha to both. "I would have lectured in the Metropolitan museum on my archeo logical discoveries in Corfu; would have told Americans how to allevi ate cold in Alaska and heat in Florida; how to make the Panama canal as advantageous as the Nica raguan route; how to convert the grapefruit into food; Tammany into the Temple of the Holy Grail. The negro, Japanese and Chinese prob lems would have been solved by me in the twinkling of an eye. and good and willing servants instantly would, have been found for the new world queens." TIMBER SOLD AT AUCTION Government Offers Pine, Fir and Cedar to Highest Bidders. EUGENE, Or., Oct. 21. Two big auction sales of government timber will be held in Oregon early next month, according to officials of the Cascade national forest, with head quarters here. The first sale will be November 1 at the United States land office at Lakeview, when 8.000,000 feet, mostly yellow pine, with smaller quantities of red fir, sugar pine and red cedar, will be offered to the highest bidder. The second sale will be November 10 at the Roseburg land office. At this sale 50,800,000 feet of yellow fir, 24,475,000 feet of red fir and 7,055,000 feet. of hemlock, white fir and red cedar will be auctioned off. Successful bidders will be allowed ten years in which to remove the timber from the land. I? m 4 rod Building Permits Increase ROSEBURG, Or., Oct." 21. (Spe cial.) Building permits issued in Roseburg to date amount to ?256,804, It was announced this afternoon. Building this year is considerably in excess of last year and is featured particularly by the construction of residences and apartment houses. One apartment house, valued at $125,000, is under construction. Two concrete garage buildings, a lodge hall and a church building have also been built during the i vear. Last year the building permits totaled approximately $185,000. High-Grade Ore Found. ' HAINES. Or., Oct. 21 (Special.) Andy Hansen, on a mining claim in the mountains west of Haines, reports the striking of an 11-foot vein of high-grade ore, chiefly sil ver, but containing a large percent age of gold., The vein was encoun tered while making a cross-cut and Its length has not been determined. Hansen is operating in what is known as the Panama group, where several apparently good properties have been discovered by prospectors during the past few months. NOTICE 4 Political speakers, candi dates, clubs and individuals who desire meetings in a fully equipped and modern theater, can secure the PEOPLES THEATER at a nominal rental., Call Bdwy. 7323 for particulars. 3k Making a Man's Shoe Money Go Far! That makes men come back to us if they get good shoes and good service. We go the limit at all times to make our ..famous "MULTO" THE BEST SHOE FOR $8.50 and $10 VpU X 99, Pan Kellaher for city commissioner. Paid Adv. Campbell-Hill Hotel Washington St., Near 23d Special Sunday Dinner, 5:30, 6:30, 7:30, $1.15 Home-made Jelly Olives Watermelon , i Veal Broth with Home-made Noodles and Whipped Cream Pear Salad, Marshmallow Dressing Fried Spring Chicken, Country Gravv Top Sirloin Steak with Mushroom Sauce Mashed Potatoes or Candied Sweet Potatoes. Corn on Cob or Creamed Peas Tea Biscuits Angel Food Cake and Ice Cream Chess Pie; Feet Hurt? ' Let Dr. J. M. Ingalls analyze your feet This does not obligate you in any way. Knight Shoe Co. Morrison and Broadway Don't Forget Our Heather Hose at 95c Pair Dr. J. M. Ingalls' Orthopedic Service SAVE The Thrifty Buyer Buys Home Furnishings at Calef Bros. where the greatest saving is made. We welcome your inspection and comparison of the quality and prices of our entire stock. Note the following samples of values we offer: Solid Walnut and Mahogany Top Period Dining Tables at Substantial Reduction in Prices 9 $41.50 Spinet desk, C?DO mahogany finish . . P & $39.00 Tea Wagon, COQ mahogany finish. . PO $24.50 Floor Lamp, com plete with d- .50 shade .vlU Wing Chairs and Rockers in Solid Mahogany ; $29.75 for $22.00 $35.00 for $27.00 $48.00 for $36.50 $314 3-pc. Overstuffed Suite in tapestry. See it in our flOQC.50 window WAOU Jiiiifil Genuine Tennessee Red Cedar Chests, every one a "TfTVeal bargain. Sale price from $6.00 up.