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About Polk County observer. (Monmouth, Polk County, Or.) 1888-1927 | View This Issue
THE HOME PAPER
DALLAS, OREGON, FRIDAY, FEBRUARY 20, 1914
uinr nn n w
QUESTIONS AND ANSWERS ON
THE NEW LAW .
Treasury Department Issues A Book
let. ' "
The following Explanations of the
requirements are taken from . the
. Government 'a official document:
Answer Anytime after January 1,
and not later than March 1.
Question What period must my
first return under this law covert
AnswerFrom March 1, 4913, to
December 31, 1913.
" Question Where can forms of re
turn be hadf
Answer At the office of the collect
or or internal revenue in tne f ederal
Question Who are required to
. make return t
Who Must Moke Reports?
Answer Every person of lawful
age having a net income of $3,000 or
more for the taxable year must make
a return to the collector of internal
revenue for the district in which such
person resides or has his principal
place of business.
If the normal 1 per cent tax has
- lwen flfullictnfl nt Ilia HnnrcA nil nil nf
the income of an individual, suich in-j
" dividual need not file a return unless
bis income exceeds $20,000, in which
pnoe hp will bp linhlp fnr flip aililitmn-
al tux on individuals and must make
If an individual is liable for the
normal tax only, and his income eon
sisfc entirely of dividends on stock of
corporations subject to the tax, no re
turn is necessary. -'
Guardians, trustees and others act
ing in a fiduciary capacity must file
an annual return if the annual inter
est of any beneficiaiy in the income
exceeds $3,0,00, and also a list return
containing the name and address of
each beneficiary ami the share to
which each is entitled.
Corporations Must File.
Every corporation, except certain
trade, civic and charitable associa
tions, etc., must file a return of in
come, irrespective of .the amount
thereof. Corporations are liable only
for the normal tax of 1 per cent,
Question If my net income is less
than $3,000, must I file a return t
Answer No. If married, however,
see question pertaining to married
Questions If my gross income is
$3,500, but payment of taxes and interest-Tin
mortgages aggregating $000
give me a net income of only $2,900,
must I file a return t
A Common Question.
uuestion lr my gross income is
$3,500, but $600 of that income con
sists of dividends on stock of cor
porations, must I file a return t
Question When must married per
sons living together file returns f
Answer If each has a net income
nf $3,000 or more, each must file a
return, or the husband may file a joint
If one has a net income of $3,000 or
more and the other has a net income
of less than $3,000, the husband
should file a return of the joint in
eotue of both notwithstanding the pos
sibility that such income does not ex
If each has a net income of less
than $3,000 and their aggregate in
come exceeds $4,000, the husband
should file a return of the joint in
If each has a net income of less
than $3,000, but their aggregate net
incomes do not exceed $4,000, no re
turn is required.
IF You're Married.
In each instance a' total deduction
of $4,00 only is allowed to be deduct
ed from their aggregate net incomes.
If bushistid and wife living together
file separate returns, the $4,000 ex
empted may be deducted by either or!
apportioned between them by. their.
own" agreement) or in proportion
their relative incomes.
In case the husband or wife has
coupons or other income subject to
deduction at the source, he or she
should, before filing certificates claim
ing exemption, arrange with the other
as to the proportion of the $4,000 ex
emption .to be claimed by them re
spectively, s6 as to prevent overclaim
ing and resultant penalty.
Question When must widows or
widowers file returns?
Exemption is Only $3,000.
Answer When . the net income
amounts to $3,000 or more, The ex
emption allowed in this instance is
Question From January 1, 1913,
to December 31, 1913, my net income
amounted to $2,900, but' from March
1 to the "end of the calendar year.
such income amounted to $2,500.
Must I file a return?
Answer There1s no express pro
vision of tHie statute or regulations
on the point. For 1914 and after, no
return would be required; but in view
of .the fact that for the year 1913,
your income is computed for only five-
sixths of the' calendar year, and that
five-sixths only on the exemption of
$3,000, and $2,500 is allowed for such
year, ;a return should be filed where
the income from March 1, ,1913,
amounts to $2,500 or more for a single
person, including widows or widowers,
or married persons living perman
ently apart. ''
iWhat An Income Is.
Question What! income must be in
cluded in an individual return?
Answer The statute provides that
income shall include "gains, profM
and income derived from salaries,
wages or compensation for personal
service of whatever kind and in what
ever form paid, or from professions,
ocatiuns, businesses, trades, com
merce or sales, or dealings in proper
ty, whether real or personalr growing
out of the ownership, use of or in
terest, rent, dividends, securities, or
the transaction of any lawful business
carried on for gain or profit, or gains
or profit and income derived from any
source whatever, including the income
from but not the valuj of property
acquired by gift, bequest,' dev:; oi
Certain Proceeds Exempt.
The statute exempt the proceed;
of life insurance policies, salaries if
certain public officers, also interns!
ipon obligations of the Uifited .Stales
government and of any state, city.
county Town or village. Such items
need not be included in the return
Question A hundred shares of
stock purchased at $90 in April, 1913,
sold at $93 in November, 1913. Must
that profit) be listed as income under
Question One hundred shares of
stock purchased at $90 in April, 1913,
were found to have appreciated in
value to $93 on December 31, 1913,
Must the increase in value be listed
A Few Examples.
Question Property purchased
1909 for $10,000 sold in November,
1913, for $12,500. Must this total
profit be included in the 1913 return,
or can it be apportioned?
Answer Unless it can be establish
ed that such profit accrued subsequent
to March 1, 1913, such profit should
be apportioned according to the num
ber of years the property was held.
Where property .purchased ' after
March 1, 1913, is sold at profit several
years hence, the profit will be consid
ered as income for the year in which
the sale is made.
Question Must, the owner of his
own residence propertyMnelude in his
return of his gross income a fair rent
al value of the property?
" Answer No.
Question Must a legacy received
in the year be included in the year's
Answer Gifts are not taxable un
der this statute and need not be in-
eluded, but the interest on the sum
must be included in (he return.
On Individual Returns.
Question What can be deducted in
an individual's return?
' Answer (1) Necessary expenses
actually paid in carrying on any bus
iness not including personal living
or 'family or partnership expenses.
(2) Interest pa indebtedness. (3)
Taxes, nod including assessments for
local benefits. (4) Losses actually
sustained in trade or from fires,
storms and .shipwreck, not compen
sated by insurance or otherwise.- (5)
Debts due to taxpayer, actually
curtained to be worthless and charged
off in the year. Not to be deducted,
however, until after determined
worthless by legal procedure. (C)
A reasonable allowance for depre
ciation. (7) Dividends upon the
stock of any corporation or associa
tion raxaoie upon its net income.
(Not deductable in determining ad
ditional tax.) (8) Amount of in
come upon which tax has been deduct
ed or paid at source. (9) - Three
thousand dollars of income, or in case
of married persons living together,
Can't Deduct Living Expenses.
Question Can personal, living or
family expenses be deducted?
Question Can the owner of a resi
dence mortgage for $5,000 deduct in
terest on the mortgage, repairs, fire
insurance, premiums or taxes?
Answer Interest and taxes may be
deducted, but not the cost of repairs
or fire insurance.
Question I have an income of
$20,000, all from investments, and
upon which the tax is levied at the
source. Must I make a retunr?
Note--Such income would be the
income from the' ownership of stock
or bonds of a corporation, itself taxa
ble under the income tax act ; there
fore, the levy of tax upon the inter
est or dividends received by such own
er would be a double tax, Therefore
it is exempt ' (
Question I am the executor of
estate, the testator of which died De
cember 20th, 1913. Must I make
return on the property?
Answer Yes. Administrators, ex
ecutors and fiduciary officers are
quired to make returns on incomes of
dead persons for that part of the year
the person was alive.
Question Should false return be
proved against an individual, which
false return the individual refused to
correct. Upon what basis would the
individual's income be taxed?
The Fenalty Made. Clear.
Answer Provision is made for the
internal revenue collector of each dis
trict to make returns in such cases.
The tax would be assessed on his re
turn, with 50 to 100 per cent penalty
added. Refusal or neglect to file re.
turns, except in cases of absence or
illness, will result in a penalty of 50
per cent, For false or fraudulent re
turn, 100 per cent of the amount of
the assessment will be added. Per
sons required to make, render, sign or
verify returns (notaries) who make
fraudalent statements, will be sub
ject to a fine of not more than $2,-
000, imprisonment for one year, or
both. An extension of thirty days
will be given in case of absence or
sickness when applied'for by the per
June 1 Is Limit.
Question What time limit is fixed
for the payment of the income tax?
Answer June 1 of each year.
Question What penalty is assess
ed for failure to pay on or before
Answer A penqlty of 5 per cent.,
after ten days' notice with an ad
ditional 1 per cent, a month for all
additional lapsed time.
Question Are corporation returns
to be treated as confidential?
Answer AH returns shall be con
sidered as public records, subject to
inspection on the order of the Presi
dent of the United States tinder rules
prescribed by the Secretary of the
Treasury. Copies of returns can not
be sent to any person except the cor
poration concerned or its attorney,
butt on request of a governor, officers
of a state imposing a general income
tax may have access to returns of
corporations doing .business in that
stale. ' - -
"United States district attorneys
under certain restrictions, may have
access to such returns. - Disclosure by
any solicitor or other information
whatever, set forth in any return of
annual net income, is made a misde
meanor punishable by a fine of $1,000
and one.year's imprisonment, and if
the person found guilty is a United
States employe, he will be dismissed
and thereafter be incapable of ever
holding office under the government."
The fanner is required to include in
his net income all money from pro
dire and animals sold, for wool and
hides of slaughtered animals, provid
ed they are sold.. Be may deduct the
siims actually faid for !be animak,
slaughtered or sold . in the yr, but
the valueof anitiialsrajsed shall net
be deducted as expe lses or loss. The
farmer also may deduct money paid
as expenses for producing farm pro
ducts, live stock, etc., and for repairs
of the current year. The cost of tools
or machinery is deductable, but not
to exceed the value of those repl.iced.
State Superintendent Churchill says
that " The estimated reports from
our county superintendents show that
the value of school, houses and
grounds for 1913 wat $10,813,193.
The disbursements foe public schools
including high schools amounted to
$6,450,638. There are v 2562 school
houses in Oregon and 5315 teachers."
A SOCIAL AFFAIR '
The Philogia literary society gave
a party at the home of Miss Maude
McDonalds Tuesday evening, Feb
ruary 17th, 1914.
After a short business meeting
games were enjoyed by all. High
school yells were given in memory of
our absent basket ball team. The
girls decided to send a telegram to
give the boys courage for their game
At a late hour a dainty luncheon
The evening was enjoyed by all.
Next Tuesday evening, literary will
be held at the high school building.
Carl Gerlinger made a business trip
to Portland last week.
NAPnl FnM S TRIRTTTF
- rv.v i. .... i
l J : X ---rr 1 III
. . -
IT COSTS A VAST SUM TO KEEP
Fred J. Haskins Writes From Wash
ington Where The Money Goes.
ASHINGTQN is dead This great man struggled against
tyranny. He hat achieved the liberty of his country. His
memory will be cherished forever by the French people, at
by all freemen of the two hemispheres, and especially by
the French soldiers, who, like Washington and the American soldiers,
fought for equality and liberty. Therefore the First Consul directs
that for ten days craps be hung on all the flags and guidons -of the
republic. Napoleon (Order to the Army, Champs de Mars, 1800).
THE BAND CONCERT
The third band concert of the ser
ies to be given was well attended last
Wednesday evening at tin? armory.
The program was well received and all
present were well pleased with the
concert. Mrs. Harry H. Volheim's
character reading was very good and
she gracefully responded to an en
core. The masterly manner in which
the band rendered the selection from
Verdi's Opera II Travatore, was a
credit to the director. Miss Eva Lu
cas in a solo, "The Kiss," with the
band as accompanist, was received by
the audience with much favor and the
youngTady was the recipient of many
a compliment. Mrs. J. W. Downey in
her characteristic sketch as "A Coon-
ville Suffragist" brought down the
house and as an encore, responded
with a heel and toe shuffle, but as
the style of the to-day's suffragists
is tight skirts it somewhat handicap
ped the ability that was clearly shown
by the performer. Tlie select on by
The Moose Orchestra was also a
penses of the club will be partially
deferred by their contents.
The subject of discussing modern
styles through the news papers was
talked about, as the young women are
desirous of learning other ideas as to
modest modern dressing. It is the
intention of this club to provide sqcial
entertainment for the young men and
women of this city.
The next meeting will be held the
second Tuesday in March and the sub
ject for discussion will be, "Modern
Womanhood." This should be an in
teresting one and all members are
urged to be present.
Well Known in Polk County.
Word has been received in Dallas
announcing the marriage df MK Sid
ney Johnson to Miss Dorothy Dan
hauser of Tacoma, Washington, both
popular in social circles of that city.
The groom is (lie son of Mr. W. Wynn
Johnson, who until a few weeks ago
resided on a, fruit farm south of Dal
las leaving there to accept the posi
tion as manager of the Tacoma Times.
Better Take a Look.
Hare you noticed the beautiful Cas
cade range these mornings? If not,
take a look and see the grand old
mountain peaks standing out in prom
inenre like sentinels with Mt. Hood to
the left, Mt. Jefferson in the renter,
and the Three Sisters to the right.
Beats all the high price paintings and
does Bot cost von a cent. .
Young Women'! Tea Party.
The Young Women's Section bf the
Women's Club, which is the social
section of the club held their regu
lar monthly Tea Party in the library
at 6 o'clock, Tuesday evening. They
report a very pleasant and entertain
ing evening which all enjoyed. These
young women make a practice of dis
cussing some subject, and their Tues
day night's subject was "Dress."
This is always a common subject with
women, but the manner of the origin
of dress proved a very interesting
Some of the boots which were dis
tributed in a previous meeting were Miss Opal McDevkt has returned
returned well filled with pennies, and to Dalian after a short visit to Indc-
i iw gnoa won u ceH np, ine ei- prurience.
Only 611 Registered, Get Basy.
Total registration of the voter of
Polk County up to yesterday morning
i 511 with the following parties
represented : Republican, Democrat,
Prohibition, Progressive and Socialist.
The item of pay for the navy is one
of the largest expenditures in the
government, for the American fight
ing man afloat is the best paid sailor
in the-world. The personal active and
retired, draws about $40,000,000
year for its services. About $7,000,-
000 is being spent this year for or
dinance and ordinance, stores, includ-
ing the manufacture and purchase .of
smokeless powder, while the bill for
increase of the navy will come to
twenty-two million. The expenses of
the United States Marine Corps ag
gregate about tight million dollars,
covering its activities in all parts bf
the world. - The provision bill for the
navy this year is $7,592,441. Con
tracts for fuel include not only the
supply of the vessels of the navy,
but coal dealers all over the world
are asked to give the figures at which
any time during the ensuing year they
will supply coal to the vessels of the
United States navy in sevepty-three
different ports as widely separated as
Wellington, Zanzibar, Hong Kong and
Since the Republic of Panama re
volted and entered into the treaty
with the United States which per
mitted a beginning of canal construc
tion in 1904, congress has appropri
ated for the period up to June 30th,
1914, a little more than $349,000,000,
chargeable against the total authoriz
ed Panama Canal bond issue of $375,-
The purchase of equipment for the
great task of cutting a ditch across
the Isthmus has taken a large part ot
this sum. So closely has the steam
shovel been identified with the Her
culean labor that most Americans will
be surprised to learn that only 102
American steam shovels have been
used in the work. A part of the ex
cavating and construction equipment
brought to Panama by the French
was utilized, but most of the French
locomotives and excavators remained
untouched in the jungle where they
were deposited after arrival from Eur
ope. The other equipment purchased
included sixty-one cranes, seventeen
pile drivers and ten track shifters, in
addition to drills innumerable and
all the lesser equipment, as well as
a large number of dredges utilized at
the entrances of the canal and, since
the water has been turned in, in the
Culebra cut, in clearing away the
earth deposited in the canal by the
troublesome slides. As the work of
lock construction was neared in 1909,
one contract for 4,500,000 barrels of
Portland cement was let to a single
Since Americans talk more about
the weather than any one other sub
ject, it is interesting to know that the
weather bureau will cost this year
$1,356,750. The inspection of meat,
including the work for the eradica
tion of diseases of meat animals, is
costing $645,000, and the protection
of our food from adulteration costs
$675,000 to which should be added
enough more of salaries in the bureau
of chemistry to approach the million
mark. Tor the single item of pre-
renting the spread of moths $300,000
The activities of the department of
agriculture are held by its officials to
come peculiarly close to the interests
of all the people. It is increased in
size more rapidly than any other de
partment of the government, and the
appropriations have grown from $3,
72fi,(r2 in 1800, to $17)86,945 for
1914. Retired officers of the army re
ceive 4877,000 and retired men, $2,-
4lSl,fl.(o. The federal . government
pays half of the expenses of the dis
trict of Culumhia, amounting to ap
proximately $5,000,000 a year. . The
government s ninety-aix senators
draw $720,000 a year, and the mem
be in of the bouse of representatives.
$3,304,500, in addition to $175,000
mileage for representatives, and $51,-
(NNl for senator. The police of the,
capital building cost $41,200, while
the stationery bill for the house and
senate is nearly $100,000.
The library of congress will cost
this year $608,385, of which only
$100,000 is available, for the purchase
of books. The salary and official ex
penses of the president and vice-president
of the United States and their
employees is only $183,040. , -
The rivers and harbors act for the
current fiscal year authorizes projects
and work to the extent of $41,000,000,
but much of this will not be expended
until years to come. For education in
Alaska $200,000 is expended, and the
government hospital for the insane
costs $302,000. The maintenance of
United States courts comes to $7,004,-
To keep the beacons burning bright
ly for the benefit of mariners, the cost
of the light house service is more than
five million dollars, while the protec
tion and propagation of fisheries costs
more than a million.
The immigration service will re
quire $2,776,000, and the preserva
tion of good relations with Canada
through the instrumentality' of the in
ternational joint commission, $100,000.
The government printing office and
binding the proceedings and debates
of the various departments. ' The
largest appropriation bill, with the ex
ception of that for the postal service,
is the shortest. In twenty-five lines
the pension appropriation act votes
out of the treasury $180,300,000.
To the special delivery letter car
riers the government makes a carfare
and bicycle allowance of $475,000 a
year. For suggestions which will im
prove the postal service, the post
master creneral is authorized in nnv
rewards not exceeding $1,000 in any
single instance, or ten in number.
Letter carriers receive nearly forty
million dollars, exclusive of the rural
free delivery service which costs $47,-
000,000. Railroads are paid $51,500,
000 for carrying the mail,, and the gov
ernment spends twenty-five million
more for the force that handles the
mail in transit. The transportation
of foreign mails cost $3)900,000 a year.
Postoffice inspectors are employed in
considerable numbers to deteet crimes
against the service, and the cost of
this protection exceeds a million dol
lars a year.
The greatest government work yet
undertaken, the Panama canal, is un
der the charge of the engineer corps
of the army, and the largest indi
vidual purchases made in connection'
therewith have been steamships cost- '
ing in the neighborhood of a million
The case of Leslie Stone, whose first
trial resulted in a hung jury, was dis
missed by the judge on account of a
faulty indictment. Harry Belt, the
prisoner's attorney received many
compliments by the able manner in
which he handled the case.
In re-estate of George Dee; report
approved and ordered that adminis
trator pay claims.
In re-estate of Mary Swarts, de
ceased; will admitted to probate, Tay
lor A. Dunn apiointed executor. Bond
fixed at $2,400.
In re-guardianship of James M.
Carlisle, insane; Geo. H. Bronson ap
pointed guardian-ad-Litem for Eugen
ia M. Carlisle, Cecil E. Carlisle, Helen
M. Carlisle, Alice 1L Carlisle, Ellis
L. Carlisle and Tom A. Carlisle, Min
or children of Charles Carlisle, deceased.
ReHirt of guardian-ad-Litem filed
and petition for sale of real property
heard and prayer of petition granted.
In re-estate of Mary Ann Morrow,
deceased ; final account filed Wednes
day, 18th day of March, 1914, at 10
o'clock a. m., set for hearing.
In re-estate of Martha Conner, de
ceased; order approving final account
entered of record; approved and es
In re-estate of Geo. II. Eilers, de
ceased; inventory and appraisement,
filed and approved.
In re-estate of Isaac Dyrk, deceas
ed; annual report filed and approved.
Lewis V. Marken, age 25, to Elsie
L. Keyt, age 25, February 13th, 1914.
Frank F. Fisher, age 22 to Hat-
tie E. Black, age 16. E. F. Black of
Independence gave his written consent
to his daughter's wedding, February
lath, 1914. .
Mr. and Mrs. Geo. Anderson from
Missouri are here and erfiect to make
Dallas their home.