s
THE OREGON . DAILy JOURNAL, PORT LAND. WEDNESDAY,. JANUARY .16, isia.
'I' V
-
WAGES PAID TO
OWN FAMILY NOT
KEMPT OF TAX
. May Be, However, if Son or
Daughter Working for You
; Has Reached Majority.
IDEFINE SELLERS' EXPENSES
' j5" t'
ou'nts JPaid for Advertising
Clerk Hire and Other Em-
n oves. Water, ttc. Deducted.
i
, ; r T' ' '
" Qaeitloaa 1YII1 Be liiwmi
Out of the mui of questions that
dally are beinr put up to the col
lector of Internal revenue office by
moM lecning inrormauon concorn
Inc the scope and application of the
income and war revenue tax acta, the
office baa compiled a list of the
moat common questions covering;
those points which seem to cause the
most uncertainty in the minds of
the taxpayers Those questions have
been answered by the experts in the
collector's office and both questions
and answers will be printed, from
day to day, until the entire list has
f been completed this for the Infor
mation of those who come within
the act.
J
What Items may?' be deducted under
the head of "business expenses," the
status of .waxes paid a farm hand
whether the wages paid a minor child
' Jand whether the amounts set aside by
-'the taxpayer as his own salary, can
' '.be claimed as deductions In reporting
.Income tax statements are told in the
'following; questions and answers pre
' pared by the office of the collector of
internal revenue for the Information of
- "the taxpayers:
V Q. 48 What constitutes an item al
flow able as a deduction under the head
;of business expenses?
; lasffodes Labor Fay
t
An. All amounts of expenses ac
tually pa!d during the tax year In the
conduct of a business, trade or profes
sion. I i This Includes all amounts actually
paid" by a farmer for labor in prepar
ling; his land for a crop and the cultlva
jtlon, harvesting and marketing of the
fcrop, the cost of the seed and the fer
'tlllser used, the amounts expended for
labor used In caring for livestock and
. vine cost 01 me ieea, tne cost or stocK
. purchased for the purpose of resale
It should be understood, however, that
lf such cost la claimed a
'the entire proceeds received upon a sale
joz ura stock is to be re.u-ned as In
come.) Th amounts actually paid in
making; repairs to farm buildings, but
x "not. the dwelling house, repairs to
tfences, farm machinery, etc., the
. COSt . of materials for Immediate
Use and farm tools which are used
' up In the course of a year of two, such
. tas binding twine, stock powders. Bitch-
'forks, spades, etc!, and the amount of
ent paid for a farm may also be
Claimed. The amounts paid for live
stock which la to be used for breeding
purposes are held to represent Invest
ment of capital and are not allowable
jag deductions.
,. A merchant may cUlm as deductions
- the. amounts paid for advertising, hire
of clerks, and other employes, the cost
ef the light, fuel, water, telephones, etc.,
Xjsed In or at his place of business,
drayage and freight bills, the cost of
; operating delivery wagons, trucks and
the repairs to same.
The cost of goods purchased for re
Bale is not to be claimed as a deduc
' tion as a credit for that cost may be
- obtained by following the method of
computation outlined In the answer to
w uiirty-nrst question,
t .Where PhyiW-lan Stand
- A physician may claim as deductions
the cost of medicines and medical sup
plies used by him in" the practice of
his profession, expenses paid In the
operation and repair of an automobile
Jiaed in making professional calls, dues
to medical societies, and subscriptions
, to medical journals, the expenses of
Attending medical conventions, the rent
paid for offlc rooms and the hire of
"Over the Top " With More Than
$3,500,000 Business in 1917
Oregonlife
A. L. MUls,
. President
J
office assistants, the cost of the fuel,
light, water, telephone, eta, " used in
such office rooms. Amounts expended
for books, medical supplies and evrgteal
instruments of a permanent character
are not allowable as deductions.
This, in a general way, outlines the
ordinary and usual expenses incurred by
a larmer, a merchant or a professional
man, which may be claimed as deduce
uons, ana the principles underlying utese
allowances are equally applicable in tne
case of any one engaged In a business,
trade or profession. In short, all ex
penses connected directly ana soieiy
with the conduct of an. income-producing
business, trade, profession or voca
tion, are allowable.
rerseaal Expense 2fot Included
Items of personal expense or items
connected in any way with the support,
maintenance and well-being of a family
are not allowed ; neither are the amounts
paid for tools. Implements, vehicles, ma
chinery or-surgical Instruments which
are more or less permanent in charac
ter, nor the cost of medical, law or
other professional books, nor amounts
expended in making permanent im
provements or betterments of any kind
whatsoever allowable as deductions.
These latter Items are held to be in
vestments of capital upon which depre
ciation may be claimed.
Q. 47 I employ a man to assist me
in operating my farm and a woman
to assist about the house. Is the com
pensation paid to each allowable as a
deduction?
Ans. Unquestionably, as to the
amount paid the male employe, but a
line must be drawn as to the amount
paid to the female employe. If her
time is employed entirely In taking
care of milk and cream produced for
sale, in they production of butter, cheese,
etc., the care of milk cans and churns,
or, if a separate table is maintained
for laborers employed on the farm and
her services are used entirely in the
preparation and serving of the meals
furnished the laborers and in carini?
for their rooms, the compensation paid
her constitutes an allowable deduction.
If, however, she is employed to assist
in caring for the farmer's own house
hold, no deduction can be claimed.
Al to Family Help
Q. 4S If I employ a minor son or
daughter to assise me in my business
or trade ana I pay a salary or wage
for such assistance, may I claim tho
amount as a deduction?
Ans. No. If, however, the son or
daughter has attained his or ' her ma
jority, the amount of compensation
paid for his or her services may be
so chximed.
Q. 49 Can a . taxpayer claim a de
duction for his own remuneration?
Ans. "Wages or salary drawn by a
taxpayer from his own business are
more In the nature of a charge out
of profits than a charge against
profits. If such could be deducted
they would merely be addd to his
Income, the effect of which would be
to take money out of one pocket and
put it in another. Therefore, no de
duction can be claimed.
Fort Lawton Chief
Denies Rioter Story
Seattle, Jan. 16. (I. N. S.) "If any
soldiers have been Drought here from
Alaska or any other place for inciting
mutiny or riot, I don't know anything
about it," said the commanding officer
at Fort Lawton here today, when
asked concerning a report that five
privates of the Fourteenth Infantry had
been brought to Fort Lawton secretly
for Inciting mutiny at Fort Seward,
Alaska.
A rumor that soldiers have been
brought here and some already shot or
sentenced to be shot by a court-martial
is emphatically denied by army officers
and federal authorities.
Five soldiers are reported to be held
under guard at Fort Worden, Wash.,
having been brought from Fort Sew
ard. Alaska. The commanding officer
at the fort refused information as to
what charge has been placed against
the men, but indicated the charge is
not serious.
Questionnaire "Reply
Has Been Returned
John L. Edwards was bulletined by
local exemption board No. 3 as having
failed to return his questionnaire. See
ing his name in print as delinquent, Ed
wards notified the board that although
he had failed to receive his blank
through, the mall, he had called for one
In person and had filled it out within
the hour. The board checked its record
and found the questionnaire properly on
file.
An Unbeaten Record
"The largest amount of businesever produced
in the state of Oregon by a single insurance company was
produced by the Oregon Life Insurance Company for the
year 1917." Evening Telegram, January 10, 1918.
We thank You "
For giving preference to Oregon Products
First. You are helping to upbuild your own business
when every worthy Oregon enterprise prospers.
! You Sellers of Insurance
Should get in touch with us at once, if you are
considering a change. We have two good district man
agerships open which will be filled in the next few days.
The first high-grade men applying will bt given
preference,
Insurance Company
Sseeessfsl . ConservaUve Progressive
Try Oregon Products First
. " C S. Samuel,
General Manager
- " -
Communicate urith our Mr. Strong at
f - 3 . a .. m "
iwvrvscca m a spienara agency opportunity
COIN IS FOUND IN
ilSLER'S ROOM
Money Bag on Secret Shelf
Believed to Contain -All
of $62,826.21.
Is
Camp Funston, Kas., Jan. (L X
8.) The loot taken from the Army bank I
by Captain Lewis R. Whlsler, axe mur
derer, was found this morning. 'While
there has not been an opportunity to
count it, It is believed that the entire
amount that a check of the funds of
the bank showed missing 62,t26.tl
has been recovered. :
The recovery of the money is due to
the refusal of Captain Thomas""!. Go-1
wenlock to abandon his theory that Cap-1
tain Whlsler did not have an accom-1
pllce. Firm in this belief, he started
out early this morning to make another
search of Captain Whisler's quarters.
They already had been searched sev
eral times and the walls virtually lorn
away.
But this did not discourage Captain
Gowenlock and he began a systematic
search of the structure. Finally. In a
corner of the quarters, he discovered
that certain space was not accounted
for. An investigation disclosed a hidden
shelf and on the shelf was the money
in one of "tho bank's money bags.
Under orders from the commanding
money 'over to the custodian of the
bank. Colonel G. V. Packer, judge ad
vocate of the division, who has had
charge of checking up the bank's funds.
Supposed Bomb Is
Found on Drydock
At Atlantic Port, Jan. IB. (I. N. S.)
A supposed bomb was found today
in a drydock at a United States naval
station In which one of the largest
United States battleships was docked.
The supposed bomb was about six
Innhea lone and shaoed like a tele
phone receiver. A fuse was attached
to It. Written on the side in German
were the words:
"This is a 25-second explosion bomb,
It was found by one of the crew on
one or tne top steps 01 a stairway
leading down to the bottom of the
drydock.
The supposed bomb was at once
turned over to the department of Jus
tice and agents started a thorough
investigation. The missile was lying
Immediately .opposite the side of a
monster warship.
Steamer Texan Safe,
Savs Radio Dispatch
KtlMj k xvuiuiv oiuuiuwu
Washington, Jan. 16. (I. N. S.) The
steamship Texan Is still afloat. A
radio dispatch to this effect was re
ceived by the navy department this
afternoon. It was at first supposed
that the vessel was In a sinking con
dition, as the result of a collision with
another vessel Monday, but the dam
age proved !ot so serious as at first
indicated, according to the navy de
partment.
Scheme Proposed for
Bidding Park of Rats
Kill the rats! This is the slogan of
Park Superintendent Keyser who is an
noyed by rodents now infesting Wash
ington Park. Oeocge King, who claims 1 141 TftF
t. ho.,, a ...411 . 1 ..ItSWVM
the pests, will be given an opportunity
to test his tneory in me park.
French Capture Germans
Paris, Jan. 16. (I. N. S.)-r-A sharp
bombardment between Doller and Thur
In Alsace was the only activity re
ported in the war office statement to
day. Forty Germans were captured In
Tuesday's surprise attack near Baden-
vlllers, the statement added.
Santlseptlc Boon to Mothers.
Ronthee and relieves eb(fe4. Irritated aktae et
Infanta. Keepa akin frean and eweer. Fin
tor nar- turner kia. doc. Aiiarocctan. ad.
...
E. N. Strong,
Assistant Manager ,
once if
Greeters to Meet &T
Portland in June
"Onward to -Portland In June, is the
slogan of the annual convention of
Oreeters of Oregon, now in session in
Portland.
It was definitely decided to bold the
national convention of the Oreeters in
Portland June 17, .11 amd 19; at the
business session of the association beld
in the assembly room at the Portland
hotel -this morning.
The Oreeters are planning to form an
ambulance corps in France as many
members are seeing service "over
there.''
The dinner mnd annual election will
be held in the Tyrolean room, Benson
hotel, this evening. Although some
changes in the personnel of. the officers
will be made, it is practically assured.
members say, that C D. Schreiter will
be reelected president. O. O. Madison
secretary and Glen Hue sergeant at
arms.
The speakers , for this evening are E.
I Larimore, R. W. Chllds, Mark Wood-
ruff, A. T. Lundborg. Phil Metschan Jr.
and Mayor George I Baker.
WITH 2 STRANGERS;
Mrs. Annie Trautmann Goes to
Linnton in Answer to Call
for Housekeeper.
Following the disappearance of Mrs.
Annie Trautmann from the home of
her brother-in-law, Martin Rita, near
Oresham Monday, Deputy -Sheriff
Christofferson today is seeking her In
the vicinity of Linnton.
Rita declared his belief that the
woman had been kidnapped, two strang
ers having appeared at his home Mon
day in answer to an advertisement car
rying Mrs. Trautmann's 'request for
employment,
The strangers, who did
not give their names, he said, repre
sented themselves to be widowers In
need of a housekeeper and that Mrs,
Trautmann would find a good home
at their Linnton residence.
They were affable conversationalists
and succeeded in Inducing Mrs. Traut
mann to accept their offer. They pic
tured their home as being replete with
all the luxuries of a modern house
hold, including a piano.
Mrs. Trautmann left with the men
and had been away from the Rita home
few days when her sister decided
to visit her.
Only One "BBOXO Qt7nrnrw
owsfcSS! nE
for ,lrmUurtt of e w. GROVE. .Cures
a Cold in one uay-x zoo. (Adv.)
WOMAN
DISAPPEARS
KIDNAPING IS FEARED
NO! ITS NOT A COSTUME PLAY!
HIS
LATEST
HIT
OTHER
i'ur? drop
S , .. v.? T&w did! y j-"; . i
; fr-.vt .r.Yryc.'' -Mvi " Wei'; w V. I
, 'Mt Zt) t
FEATURESS vS
NO PATRIOTIC FUND
DRIVES IN OREGON
FEB. 1 TO 15
Respite Allowed to Give Time to
Prepare for the Third Liberty
Loan Campaign.
LIMIT IS PUT ON AMOUNTS
Future Contributions to Be for
Sum Sought Plus 10 Per Cent
for Unpaid Pledges.
Oregon is to have no patriotlo fund
drives between February 1 and 15, ac
cording to action by the coordination
committee of the state council of de
fense Tuesday night.
Hereafter, the committee ruled, contri
butions to a patriotlo fund will be Urn
ited te the amount asked plus 10 per
cent to cover uncollected pledges. The
committee's indorsement of a fund gath
ering campaign will be conditioned on
this understanding. . The ruling becomes
effective at the conclusion of the pre;
ent Knights of Columbus drive.
The respite from drives allowed dur
ing the first 15 days of February is to
give time for preparation for the third
Liberty Loan drive.
The coordination committee called
upon the school board to discontinue the
signing by children of pledge cards in
school rooms as It has been found that
unless children consult with their par
ents they obligate themselves unreaaon
ably. The action will not prevent pre
senting patriotic campaigns in the
schools, nor will it interfere with the
Oreeron thrift campaign. Mrs. William
MacMaster appeared In behalf of the
out-state T. W. C. A. war work ca.
paign for $25,000, which is to occupy a
week beginning January Zi. wiuiam u
Wheelwright announced that, though the
Armenian-Syrian relief campaign covers
a period of 13 days, only seven days will
actually be devoted to solicitation, per
mission to conduct a musical and dra
matic entertainment at The Auditorium
on the evening of February 22 was grant
ed Miss Virginia Drake and Mrs. Percy
W. Lewis, the proceeds to be donated to
the Oregon boys' emergency fund. At
tending the meeting; were T. B. Neuhau-
sen, chairman ; Charles F. Berg, 8. C.
Bratton, T. H. Edwards, J. C English,
Max a Hlrsch, L. L. Jones, Miss Viola
Ortscbild, John H. Stevenson. F. E. Tay
lor, H. H. Ward, W. D. Wheelwright and
Mrs. George L. Williams.
Red Cross Benefits Stopped
The executive committee of the Port
land chapter of the American Red Cross
FROM
DOUG
Tuesday voted to decline an offers of
This ' action, however, it 'was pointed
out. was not Intended to refer to small
local benefits by auxiliaries, the advis
ability of which shall be passed upon by
Amedes M. Smith, general manager of
the chapter.
This Bank and Its Service
IN OUR new banking home, with every facility at our
command, we are glad to render you modern banking
service in the safe-keeping of your money, in the
issuance of foreign and American exchange, and in the
manifold uses and courtesies that a bank should extend
to those who favor it with their patronage.
Especially do we
welcome the stead
ily increasing num
ber who deposit
here regularly
small sums, evi
dencing the results
of the Nation-wide
movement for thrift
conservation.
and
The United States National Bank
Sixth Street at Stark
Capitol and Surplus, $2y500,000
iiimraiiiiiiiiiiiM
PHOTOPLAYS OF MERIT
Am
IN
A Modern Musketeer
OR
A KANSAS CYCLONE
In this production "Doug" performs amazing; feats. Many of the scenes were
taken in the Grand Canyon of Arizona, and the work of the acrobatic star on
lofty peaks, 8000 feet above the sea level and along the precipitous canyon, will
thrill everybody and of course In connection with its sensationalism and great
icenic beauty, it is replete with Intensely humorous situations!
Car Healer Blows Up
Johnson City. lit. Jan. If. L N. 8.V
One man was killed ana u persona in
jured when a heater In a streetcar blew
hare this morning. Loral Woo ten.
1ft, was kilted. The explosion is thought
to have been caused by an accumula
tion of gas.
We are pleased to
see you at this
banking-house. Of
ficers and associ
ates alike delight
in serving you
cheerfully and in
helping to promote
a community of spirit that
shall benefit mutually.
ALL
THIS
WEEK
THE MAN
With A
SMILE AS
LONG AS
A MILE
Vo FUN
LAST
DAY
Taylor Holmes
UNEASY
MONEY
Taken from the Satur
day Evening: Post Story
GO!
Tomorrow
"The Man Without
a Country"
Edward Everett Hale's
Eternal Story
n
ThurcHay
Friday and
Sr.turcay
.J
JdaringTOM MIX
IN
Cupid's
Round-Up
An Unusual Treat for Photoplay
Fans
TRANSCONTINENTAL VAUD
WITH
THEATRIC VK2f
Ussssbssssssssii issniiissimanlTsss,'
l"" iaw
LOU PARKER AND ft
HtK JAZZ BAND 3
AND
jl Edward Zoeller Trio
Comedy PantomimUta
FEATURED
Weekday Matinees 10c
Children aader 10 free at mati
nee when accompanied by
adults, excerpt Satarelay, aVUBday
and holiday.
THEATBUy
OMJOSEVItXS; i
LIBERTY
See Ad, Page 3