The gazette-times., January 23, 1919, Image 1

Oregon Historical Society,
l'ublie Auilito-ti;"-
HKITXKK, OKKGOX, THUHSDA V, JAXTARY 23, 1919.
VOL. :J5, NO. 42.
SUBSCRIPTION, $2.00 PER YEAR
Gazbtte-Ximes
.1 JLJLJL
BEGIN HOW OH YOUR
limn
ETAX FIGURES
bankers to write to my office for the
rule applying to tax on audi interest.
Dividends on stock shares are in
come, and must be included in the
gross figures, altho (he law does not
impose the normal tax on distribu
tions made by domestic corporations.
A person buying and selling mer
chandise must find his profits tor the
year on the following basis: First,
ascertain the gross sales or ttal cash
receipts. Then add together the in
ventory at the beginning of the year
and ti e purchases for resale. From
The big incime tax drive of 1919: this latior sum substract the inven-
Oolleetor Milton A. Miller Says "Do
Not Wait For Now Law to be
Passed."
Is now under way and every prepara
tion is being made to handle the lar
gest collection iu the history of in
come tax. "I am not waiting for the
final passage of the new revenue bill
by Congress" said Collertor Milton
A. Miller today, "nor lor the new
regulations and blank forms to be
issued. To get this big tax in and
get it accurate and complete, I urge
that we all begin now."
The Income Tax obligations im
posed by the old laws as well as the
measure now in Congress, consist of
two distinct operations. One is to
file return or statement of all items
of Income and items of deductions
allowable by law and to do this with
in the period named in the law. The
other Is, to pay the tax If any Is due.
Neither of these obligations can be
met without a carefdl review of in
come and exienditures for the tax
year. That is the big job right now,
and that Is why I say the Income Tax
Drive Is already under way. Kvery-.
where the pencil is busy. The old
year is done; all its fruits are
gleaned; and everytperson who' fared
well, or earned a good competence
must analyze his own case in cold
figures.
When the new Bill is enacted Into
law, I will have the proper return
forms distributed throughout the
District and everybody will be in
formed of the date when the sworn
statement or return must be filed.
It is my plau to send my men out to
central locations, and to have them
travel through the District aiding
taxpayers in the preparation of the
returns and to deciding doubtful
points. We will go right to the
people with the Income Tax, and with
the cooperation which the public can
give the Government men, the re
turns will be filed by everybody who
comes under the law's provisions, the
right taxes will be paid, and the dis
trict will have done its full patriotic
duty toward the Government's sup
port.
Meanwhile, let me say again, there
is no need delaying the preparation
of figures. Anything that Congress
does now will not affect the amount
of a person's earnings for 1918. Let
us avoid the beiated throwing to
gether of figures that may hit or miss.
Guesses cannot be accepted as the
basis of taxation. It Is clearly the
duty of every person to compile cor
rect figures and ascertain whether
his income for 1918 was sufficient to
make necessary a sworn statement.
The year 1918 was a banner year
for salaries and wages, and the lflgh
war prices brought unusual profits to
the average small tradesman and to
the farmer. The opinion In Washing
ton 1b that a million citizens and
residents will make this year their
first income tax returns.
All signs indicate that the Income
tax this year will reach nearly every
working man and woman, and nearly
every merchant, shop keeper and
farmer. Not all will. have to pay the
tax, but nearly all will be obliged to
make a sworn statement of the year's
income. I am therefore advising
every unmarried person who earned
11000.00 or over during the year
1918, and every married person, who
together with wife or husband,
earned $2000.00, to sharpen his
pencil and figure out how he stands.
He must ascertain accurately his
gross income' from all sources.
There's his salary or wages, includ
ing overtime pay and any bonus re
ceived as additional compensation.
A married person having children
under eighteen who are working,
should Include the earnings of such
children.
It he sold any property at a profit,
the gain must be computed and in
cluded In gross Income. If he rented
any property to other persons, the
total rents received in the year must
be ascertained, and from that figure
a deduction may be taken for taxes
paid on rented property, the neces
sary minor repairs, nre insurance,
anv interest he may have paid on
mortgage, and a reasonable allowance
for annual wear and tear of the rent
ed property. The balance is Included
in gross Income for the year.
Interest on bank deposits, whether
uiiiiwirawn or added to his bank
hninncmi- muat be Included in all
calculations of income. Bond Inter
est receieved during the year must
also be included, except Interest on
mnnirinai. county or state bonds.
Interest on United States Bonds need
not be Included by the ordinary bond
Tiolder who purchased small amounts.
Holders of large amounts of Liberty
fconds, however, should ask their
tory of goods on hand at the year's
anil unri tlia roulllt Id the post nf I
goods sold. This cost, plus necessary
expenses incurred soleiy through con
duct of the business, is to be de
ducted from the grss sales, and the
result Is the net earnings of the
business.
A pre Torsional man arrives at his
rufessional income by ascertaining
the total of fees for services and de
ducting therefrom ail expenses con
nected directly and solely with his
practice.
A farmer must figure up all Income
derived from the sale or exchange of
products during the year, whether
such produce was raised on the farm
or purchased and resold. He is al
lowed to deduct from this total his
expenses of the year connected with
the planting, cultivation, harvesting
and marketing of the crop, or the
care, feeding and marketing of live
stock. He is not allowed to deduct
the amount expended in 1918 in pur
chasing stock for resale; but when
such stock is sold its cost is to be de
ducted from the sale price in ascer
taining the gain to be included In his
return of Income. The cost price of
stock bought prior to 1917 cannot be
deducted as iu the case just cited, if
such cost was included in the de
duction made in the year of pur
chase. The farmer Is not required to in
clude in his income tax computation
the value of farm produce consumed
by himself and family. But In cases
where he exchanged produce for mer
chandise, groceries, etc., the market
value of the articles received in ex
change must be included.
All other items of Income arising
during the year through personal ser
vice, business or trade, through use
of property or money, should be
added Into the gains for 1918.
Everybody wants to know what in
come is exempt from tax. Very few-
plums that fall to the average man
may be legally disregarded in figuring
up his 1918 income. Gifts and be
quests can be eliminated; also pro
ceeds of life Insurance received by
the beneficiary of an insured person.
A person who cashed in an endow
ment policy neeo report, as income
only that portion which exceeds the
total of the premiums he paid In all
years on that policy. Annuities are
not taxable, unless a person received
in the year payments which represent,
when added to all prior payments on
the annuity, an amount greater than
the original cost of the annuity.
Dividends on unexpired life Insurance
policies are not taxable income; but
dividends on paid up policies must
be considered Income. Alimony is
not income to the recipient, nor is it
an allowable deduction on the part of
the person who pays.
From the total of all items of in
come, there are certain deductions
allowable by law. All interest paid
on personal indebtedness and all
taxes paid during the year are de
ductible, except Federal Income and
Excess Profits taxes, inheritance
taxes and assessments for local im
provements, such as sidewalks, sew-
ers, etc. Losses Incurred in business
or trade are allowable, also losses
arising from fires, storms, shipwreck
or other casualty, or from theft, in
cases where such losses are not com
pensated for by insurance or other
wise. Losses incurred outside of a
person's regular business are allow
able to the extent of gains reported
from similar transactions within the
year. Debts due to the taxpayer
actually ascertained to be worthless
during the year are deductible.
Depreciation on property used in a
profession, in business or In farming
Is another item that may be claimed
as a deduction. The storekeeper may
claim depreciation on his fixtures and
on his delivery horses and wagons
but noi on his stock held for sale.
The Drofessional man may claim
similar deduction on his instruments
and, iu the case of a physician who
maintains a team or auto for making
calls on patients, reasonable deprecia
tion may be claimed. The farmer
may claim depreciation on his farm
buildings, aside from his personal!
residence, also on his farm machin
ery, his work horses and farm work
wagons. The theory of depreciation,
in connection with the Income Tax,
is that wear and tear caused by use
iu earning income is a real expense
In the earning of the income. The
rate is dotermined by the number ot
years that the property ordinarily
would be useful and the cost ot the
property is the basis of. the computa
tion. If the property suffering de-
1 Back into work togs
'imf January Talk in
m Paris Ntvtf? m mao j
fflh JULY CROPS GRO Zjl
(0k N AMERICA, SO jgS
V GET BUSY V5 Tl$3k
Will Ixicate at Astoria.
Dr. H. T. Allison was in Heppner
for a couple of days the first of the
week, coming over from Butter creek,
where he has been visit: . g with his
brother during the past week. Dr.
Allison has' received his honorable
discharge from military duty, tills
having been handed him before
Christmas. He had fully intended
to return to Heppner and take up Jie
practice of medicine but on visit irg
Astoria he found an opening ihnt he
was looking for and has decided to
go there and establish offices. The
new location will bring him iu touch
with a practice that does not require
so much driving and long trips at. all
ours of the day and night, and he
feels that this is a better location on
(his account. Dr. Allison will move
to Astoria at once, and his many
friends at Heppner wish for him
abundint success in the new location.
01 0.1 ACKLES
HOTEL PROPOSITION
preciation was bought or acquired
prior to March 1, 1913, the market
value as of that date Is used, instead
of the cost, in figuring depreciation.
Contributions or gifts actually
made In 1918 to organisations opera
ting exclusively for religious, chari
table, scientific or. educational pur
poses, and to societies for the preven
tion of cruelty to children or animals,
may be deducted, to an amount not
exceeding 15 of the net income
computed without the benefit of this
deduction.
After the total of all income is
found and the deduction allowable
by law has been computed as an
offset, the amount of income in excess
of such deductions is the net income,
which forms the basis of the assess
mest of tax.
If every person in this District will
examine his own 1918 income and his
allowable deductions, in lino with
data that I have given, he will know
beyond doubt whether he muat file
his' return when the blanks arrive.
And here Is how he will determine
his liability to file a return. If he is
single he must file if his net income
was $1000.00 or more, and this re
quirement is enforced whether or not
he Is the head of a family. If he is
married, he must file his return If
his net income, including that of his
wife and minor children, was $2000.
00 or more.
I want to emphasize the coopera
tion feature of the collection of the
Income Tax this year. The policy of
the Internal Revenue Bureau is to
aid tax payers to meet the require
ments of the law. We are going
right to the people, not to swing
clubs or to mulct the wage-earner of
his savings, but offering every help
ful governmental function that will
assist people .to their duty."
Very respectfully,
MILTON A. MILLER,
. Collector.
REMEMBER YOUR NEIGH
BOR AROUND THE CORNER
Local Capitalists Organize and Will
I'ut l"p Modern Hostelry.
Fire Threatens Elevator.
Fire broke out in the office room
of the big elevator befonging to the
Farmers Elevator Co., on yesterday
morning and no small excitement
was caused by the alarm. A de
fective flue was found to be the
cause of the blaze which was dis
covered in time to prevent any
damage. Upon going into the wall
near where the chimney goes up it
was discovered that there had been
some very poor work done on the
flue and an opening hod be?n left in
.lie back side through which fire had
come into contact with the boards of
the wall. This large building, which
is all wood construction, would have
made a terrific blaze, once it got
under headway and the result would
have been the wiping out of the
warehouses in that vicinity, which at
this particular time are pretty well
filled with grain. The fire laddies
responded promptly.
Have Leaded Machine (Shops.
Messrs. McRoberts and Colin of
the McRoberts-Cohn Auto Co., have
leased their machine shops to Messrs.
Welch & Linniger, two young men of
Pendleton. These gentlemen have on
the way a full equipment of machin
ery which will be installed as rapidly
The Food Administration, by
direction of Mr. Hoover, has been
directed to assist in the work of
raising the needed funds for relief
ot the Armenians. Four million
Armenians are facing -starvation.
few weeks without aid will mean the
depopulation of a large part o
Armenia. We have been fighting to
save the Armenians and others from
the thralldom of tyranny. Now, that
we have won the victory, shall w
let the people die? Can you picture
the thin lips, the sunken eyes, the
bony cheeks, the claw-like fingers,
and the emaciated bodies of thous
ands and thousands of little children
who have forgotten how to smile?
Thousands upon thousands of these
Ittle children have already perished,
and their thin little forms have been
uiried in the sands by the roadside
and afterward dug up by the wolves
jf the desert. Look at the bright
yed, ruddy cheeked little folks
iround you, and picture them with
.he light of hope faded from their
2yes, the color gone from their
heeks, and their bodies wasted until
hey look like walking skeletons.
Would you not make every sacrifice
n your power to save them from
death by starvation? Just over the
vvay, just around the corner, just out
f sight is Armenia where this con
dition prevails. There must be im
mediate relief. We have been asked
to give, and we have given freely.
There is not time to argue about how
this situation might be handled to
better advantage. WE MUST ACT
AT ONCE.
Morrow county has been asked to
give $1600.00. The drive is to be
made Feb. 17 to 24. Let us not wait
for solicitors to call upon us. Do not
wait for the organization to be com
pleted, but write, call up, or notify
in person Joe J. Nys, at Heppner, how
much you will give. Mr. Nys is the
treasurer. Do not put this off. DO
IT NOW. If you were hungry, would
vou want somebody to wait until the
Authorize Sale of Old School
Building.
At a meeting of the tax payers of
School District No. 1, held on Friday
afternoon at the office of C. E. Wood
son, the sale of the old school build
ing belonging to the district was
authorized. The meeting was quite
well attended and it was the un
aninious vote of all present that the
proper thing to do was to sell the
building and the board is authorized
to proceed to dispose of the same at
ooen sale to the highest bidder.
There is a lot of splendfd timber in
this old building and no doubt it wn
bring a good price as there seems to
be quite a number of people inter
ested in getting hold of it. A date
for the sale of the building will be
announced later by the directors.
as it arrives from Portland. They
expect to be in charge of their end of last of next month to send you some-
the garage immediately after the thing to eat.' if you are in position
27th of this month but do not look to do so, the best way to notify Mr.
to have all their equipment installed Nys is to mail him a check, and make
before the first of February. They the check about the same size you
expect to be fully prepared to handle would if you were sending it to one
work on any make of car, and will of your neighbor s little boys or girls
also be equipped with the necessary if e or she were in Asia and in need
machinery for renairlne and re-chare- of food. Flit down tne paper, Sei
lug storage batteries. The new firm your check book, or go to the
Something Worth Seeing.
The colored troops overseas
furnishing all sorts of laughs for the
more sophisticated doughboys. One
of them concerns a chocolate-colored
Yank who had never seen a body of
water larger than a creek and who
was so impressed by the size of the
ocean that he refused to look at it
after the fourth day out. suaaeniy
he was called by a friend. "What do
vou want?" he answered dully from
his berth. "Dar's a sailin' ship goin
by. Come an' see a sailin' ship
"Look a here, nigger," came the
sharp retort, ' i m done sick ot youan
?ailin' boats an' whales. 1 11 done
sail into you if you don't remember
tt-iiat I told vou befoah. Call me
when you done see a tree, and foah
nothin' else. Understand?
There is immediate prospect that
Heppner's hotel problem will be
solved, and that before many weeks.
r just as soon as the proper plans
can be drawn, a modern, 50-room
building, of concrete construction.
ill be erected and then Heppner
ill be on the map again as the best
little town in all of Eastern Oregon.
This is according to plans that are
now being formulated, and a com
pany has organized and filed their
articles of incorporation with the de
partment at Salem in the sum of
$60,000 for the purpose of putting
the hotel proposition across in good
nape.
As we get it, the plan is to begin
perations just assoou as the details
ire worked out and the building will
likely go up on the corner recently
acquired by Gilliam & Bisbee from
ic Groshens, and known as the
Groshens corner, on Main street and
just south of the Palace hotel site.
We are making the announccine'nt
upon rumor, only, but it is under-
t:jod tlitt the new company have a
lace to put the building and that
the site is a prominent one.
The incorporators of the new com-
any are W. P. Mahoney, Frank
Gilliam, J. G. Thomson, W. O.
Minor and Phill Cohn. The sum of
$30,000 is already pledged and this
assures the starting of the structure
and there should be no difficulty ex
perienced in placing the balance of
the stock.
This announcement Is certainly
good news. Heppner has suffered
much from the lack of proper hotel
facilities since the big fire of July 4th
and there is no doubt but that much
harm has been done the town be
cause of this great inconvenience.
This starts the work of rebuilding
the burnt over district and others
will follow. In fact, we understand
that Messrs. Gilliam & Bisbee, re
going right ahead .with .their new
building project, and it' is expected
that construction on this will begin
early in the spring, work on the,hotel
and the Gilliam & Bisbee building
going on at the same time. The an
nouncement that there were many
contracts let for the construction of
residences in the city, which appear
ed in an issue of the Oregcnian the
first of the week, is without founda
tion, whatever, so far as we can
learn, and it is regretted that the
correspondent from this place does
not exercise a little better judgment
in the statements he make9. It cer
tainly would be great if such were
the truth but no good can come from
putting forth such bogus "optimism"
through the columns of the leading
daily of the state. Yet it seems that
Heppner is doomed to suffer from
this source, and the next time a
heavy rain comes we can expect a
"boom" wrlteup from the Heppner
correspondent In the Portland paper.
We trust that the building bug
will now become popular In this
town, and we can say that there is
further important announcements
forthcoming in this line, and they
will be made at the proper time.
is composed of H. B. Welch and S.
G. Linniger and they will move with
their families to Heppner immedi
ately, providing they can find houses
or furnished rooms to occupy.
Mrs. McPaniol of Hardmau Dies.
Mrs. Vera Sweek McDaniel, wife
of Edward McDaniel, died at Uer
home near Hardnian on Saturday
afternoon last of pneumonia follow
ing an attack of Influenza. Mrs.
McDntol was about 25 years ot age
and she is survived by her husband
and three small children. Funeral
services were held at Hardman cem
etery on Monday afternoon.
tel
ephone,, or write a three line letter,
and Mr. Nys will do the rest.
S. E. NOTSON,
County Food Administrator.
Ilourriiuan People Here.
Quite a delegation of Boardmau
people were up to Heppner cn Tues
riav. beine called here by business
pertaining to their school distric
Among the party were H. H. Weston
Chas. Nizer and Mr. Mitchell, all
prominent citizens of the irrigtaion
section, and there were also severa
other men in the party whose
names we did not gather. They
motored up from Boardtuan and after
attending to their business here, re
turned home. Some ot these days
good road will be built from the
county seat down Boardman way, and
then we shall get better acquainted
with our neighbors on the Columbia.
J. A. Gibbons Receives Serious
Injuries.
Report reaches Heppner that J.
A. Gibbons of Boardman, Is now iu
a hospital at Portland slowly re
covering from very serious injuries
received a short time ago at Messner.
Mr. Gibbons, who at the time of the
accident was working at the coal
bunkers was in some manner caught
with the heavy weight, suffering a
broken arm and leg and having some
ribs and his collar bone broken also.
A timely cry for help perhaps saved
his being crushed to death. He was
taken to Portland where his injuries
are being cared for but it Is reported
that his recovery has been very slow.
He had but recently gone to work
for the railroad at Messner and had
charge of the coal bunkers.
Death Claims Mrs. H. V. Smouse.
After an illness of about two
weeks, beginning with influenza and
developing into pneumonia, Mrs.
Clara Smouse, wife of Henry V.
Smouse of lone, passed away at the
Heppner Sanatorium on Sunday
afternoon. Mrs. Smouse had under
gone an operation for pyemia and it
was hoped that this would bring re
lief and restore her to health. The
Mr. Gates Turns Down Offer.
We are informed by City Attorney
Nys that he is in receipt of a com
munication from H. V. Gates and he
turns down the offer of fifteen
thousand dollars made him recently! disease had taken too firm a hold,
by the City Council for the water
plant. Mr. Gates did not intimate
just what price he was willing to
accept and he will only consider
selling his interests to the city ou an
arbitrated basis.
however, and it was impossible to
save her. Mrs. Smouse was aged
about 32 years, and besides her
husband she leaves three small child
ren. Funeral services were held at
lone on Wednesday
Since the resignation of W. W.
Sniead as secretary of the Morrow
County Fair Board the commission
ers have been looking up another
man to take his place. We under
stand the position has been offered
to F. R. Brown, and that he has the
acceptance of the same under ad
visement. There remains another
director to be appointed also, to take
the place of Jack Hnyd.
WANTED Man with teams or
tractor to do cropping and plowing
on farm 15 miles south of lone, Ore.
Or would buy 8 horses and 3-bottom
plow. State price, etc.
CHAS. M. WAGNER,
4SVi Jefferson St., Portland, Ore.
I