MEDFOKP AfATL THTniTNRf MKHFORP. OIM.OON. WKMNKSDAV. MAV 3. 1010
PAGTSMVTS
INCOME MS
OUGHT TO YIELD
$400,000,000
Sources of Income Itemized Por
tions From Salaries, Fees and
Ownership of Property Two-
Thirds of Property Owned by Per
sons Who Should Pay Taxes.
Hv HASH, M. MANLY.
WASHINGTON, I). C, Mnv 3. In
yesterday's article 1 indicated thu
KPticrnl dinrni'tor of the evasions of
thp United States income tax, which,
in the nrrRrepnte, amount to morn
than ,f:i2(),OOn,0(IO an amount which
this nation stnnds in desperate need
of for her "preparedness," a hill that
cannot possibly he paid hv the work
inpnan nlonc. In today's article 1
will exhibit the evidence upon which
l'hase the "statement that the income
tax should yield 100.000,000 annu
ally, instead under the more .H0,
000,000 which tho United Statos
treasury collected under this statute
last vcar.
i The fedofal income tax is a tax
upon the income of individuals and
also upon the net earnings of corpor
ations and also for what is known as
n normal tax of 1 per cent upon the
incomes of individuals amountiiiK to
more than $3000 in the i'iho of single
persons, or in the case of married
persons of more than f 1000. Income
dciived from the dividends of cor
porations upon which a tax of 1 per
rent has Already been paid at the
source is exempt from this, normal
tax, hut is required to pay the supr
tax. In each case the law allows
unmarried persons an exemptin of
.$.'1000, and marricil persons an ex
emption of .f 1000.
Individual Income 'lav
In addition to the normal tax, indi
viduals with incomes of nioro than
$120,000 are required to pay iih addi
tional tax, known as the supct tax.
upon the amounts hv which their in
comes excrt'd .f'JO.OOO. The super
tax rates are:
On income over $20,000 nn.l lei
than $.0,0ni, 1 per cent.
On income over $.10,(100 and !.
than $7.,00(l, 2 per cent.
On iiieom- over $76.0(10 and lcs
than $100,eno, :t jMr tent.
On income over $100,000 and hiss
than $UftO,000, I s-r cent.
On income over $'J0,0U0 aim lu
than $300,000, .'i r tent.
On iuuoinu ovur $."00,(100, 0 rt
cent.
It Is worth while nlimc at thi
jKint how much difference it nrike
whether a, dollar of ii.eome i ili
jeut to the miper lax n onlv ' the
normal rate. A dollar in an income
over $f)00,000 must pay not onlv the
nnrniRl tax of 1 cent, hit nlo i hipor
tax of 0 cents, so that ovorv dollm
of the inoomo of the very rich which
Ik cbCHpini; tn.tiin i eiwtitisr the
trunsury seven times as miudi as if
tho fraud were committed by a Kr
sou of moderate income. It is very
important to remember this. iW it j
explain how the tax collections can
be rontly incresel oven though only
n relatively smaller amount of income
is evading the tax.
WluU It Should IVoiliiw
In order to .ee what the inuomo tax
should probce, it is necessary to an
alyze the national income to ascertain
what jmrt of it is received by per
sons with incomes over $11000 who
should bo Mibwt to the tax. iy na
tional income we mean the HgftregHtw
income I'-eeived during the ,('r by
the Mde of the I'nited S'ates and
not the amount of the national pro
ductiuu, for it is obvuw thai a ury
laru piy-t of the national ircome is
rwuivud by Mron who havo no wrt
in production, either as owners, tasii
Mgerti'or worker, but who derive
tauir ijiconio from professional and
jHironul services of nil kiuiU.
In onler to intimate the ainouut
UK)ii which income tax hould be paid
we will first ascertain the total
hrouiiU of the income of persons
who thould sv income tax, and I Ik d
b.v'iMuctiHg the exenitioiis of :iouo
U iAWHi allowed ia the case of mil.
vi4aJfc, arrive at the amount Uu
which the tax sboahi w ased.
Th- National inroeie of Um Tailed
tstatf in 1U14 'us in'oxiui.Vl.v
forty--ix billion dollars. In u later
rtieU I r.ill show you in detail how
ta figure is armed at, an I whv
there can be no question that it is tvull
within the facts.
Source-, of lisoust
The iuuume of person who should
wy an lucooie tux are derived from
one tt' three seuru: 111 Sul.ineo
oer?afri)fl; () r'tMM tururof.'iotonil
i-cm'-is amounting ti mmro tb.m
SOno. 2j Iccoae i'ereJ ire '
owrerehip of pr 'prtv it the uM'i' t
If " &? & .1 , ' ' r. i . r,
f'o hi per Hr A " . ' t
I aru '.i'i ., ' -t i t.
"'", rit , j , a u , w.
rtiicr has hwm made fur the fact thai
the fxettintloti for married men
$ lOfM).
Th lotal amount of waffes and sal
aries wi4 in the Culled Stale- i-i
KM 1 we know with reasonable exwt
uv-n to have ben in round future
$l.i,000,(lIO.OtlO. Of thiv total, at
least $oOO,000,000 was paid to men
who received salaries over $.'1000,
The total number of iktsoii who-c
incomes are derived primarily from
fees is whowu by the censii orK':'
pillions to be approximately ."00,000
While there nre no exact data uiwoi
which to base an estimate of their
total income, the available informa
tion indicates very certainly that their
incomes avcniKc at leat $1800 aid
amount in the ajotrofiatc to more than
$1100.000,000. Of this ue may snt'-dv
intimate tlmt $:i00,000,000 is receiv
ed by persons with incomes exceed
iiitf $11000 per year.
rroKrty and Ituslness Tn
Tho income derived from the own
ership of property nnd the condi.ct
of business amounts to $110, 100,000
000. This fipire is arrived at by de
ducting from the total nntiounl in
come (!(! billion), the nmount of in
come in the form of anilines nnd
wages (IT) billion), and fees (000 mil
lion). Hut it is very closely checked
by an independent analysis of the
retuntr. from procrty ownership and
business innii(i;cuiunt.
From the records of appraisals jf
estates in a number of states and
from the rosonrehes of statisticians,
we know that more than two-thirds ot
the property of the nation is owned
by person, with incomes of more the,.
$11000, who should he income tax
payers. It is probable that the pro
portion should be more nearly three
fourths, but it is absolutely certain,
as was shown by the report of tho
commission on industrial relations
that less than 'J per cent of the adiill
population owns two-thirds of all the
wealth of the I'nited States.
On Ihn basis, therefore, that Iwo
thirds of the income from property
goes to pcrMins who should pay in
come tax, we have $,J(),O(i(i,OO(),OO0
from this source.
Why Deductions Allowed
The income tax law ponnils the de
duction of mi allowance for the de
preciation of property and for taxes.
Depreciation is, of course, cluirgcuhlo
only upon property subject to worn
and tear. The depreciable property
owned hv persons who should be sub
ject to the income tax amounts to
about $(Hi,000,000.000. At the rate ot
f per cent thu depreciation churKO is
$:i,:oo,ooo,ooo.
The taxes to be deducted ale onh
those which are jwid hv persons with
incomes over $11000. It should be
noted also that only three-fourths tit
the receipts of national, state and lo
cal government uro derived from
taxes. In the case of the federal
Ifovemmeiit the only direct tax is the
income tax. The other federal taxi's
(customs, excise and stamp taxc)
are taxes upon consumption and arc
distributed over the whole isipulatioii.
At the outside income ta.ayei, who
make up less than 'J per cent of the
population, do not nv more than 10
per cent of such indirect taxes. Ot
the state, county and municial taxes,
which are chiefly property taxes, we
may aumc that the income taxpay
er ay in proportion to tlioir Hoiuinxs
of property, that is two-tlurds of lie
total, hIIIioukm it is a notorious fact
that even in the case of local taxc
the most widespread evasion is anion;
the wealthy.
Tho Final I'Ikum
We have, therefore, as the amo.inls
of the taxes iaid by income taxiaty
ers, the follow:in( figure.:
Federal taxe. Income tux, $80,
000.000; other taxes (1-10 id hv in
come taxpayer, $(10,000,000; total,
$110,000,000.
State, county and miiuieial taxes
Two-thirds iwid bv income tax
payers. $070,000,000. Grand total,
il. 110,000.000.
The income tax law allows a de
duction for lulerest paid uhih indebt
edness, but no deduction for this item
need be made in these ealeulatu ns
because in making up the sum of the
national income no lueome donved
from interest was included, on ilm
theory that it was a ulf-eaiieelliaj
item. That i. if we iucludo the in
come derived from intersst on a mnrt
gage, we must deduct the s-nne
amount tlni the income ot a furrier
a part of Ins fixed harKc.
T lie 'iiihiniH
AMERICANS TAKtN OFF
STEAMER BY BRITISH
NKW VUHK. Mav i. filtu-cr-
the liolland-Ainerii an tun- .ti,'iiii)hi
Ityndam, whnii arrived todux, report
ed that two women who claimed to
be Amencan citizens, residents of
San FraneHico, were taken otf the
ship by the lirituh at Falmouth with
out, t-Aplanitiin and held tor exam
ination The women gaxe thtir nuine-.'-.
All ' (iertrude hwlin .m.i ilau.'h
.r Mi- nr. Mr , Y ii
i r i ii c ir -rd s
V K r I " -"r I
r I
SOU! CREEK
LOOKS TO RAILRl
D
COS
1000
OR
DFVFLO
INI
One of the trlliilary mlnliiK dl-'-trlru
to the lllue Ledge ramp I that
of rbpiaw creek, In wlilrli there have
been probably 100 clalnta located.
Twenty-five of tlienc elalins are on
the Oregon side of the slate line. ISd
wanl Spencer, who enjojed a brief
vlult iti Medford yesterday, located
his claim In the Squaw creek camp
thirteen years ago and ban remained
with them over since. "My porma
jent homo Is there," said Mr. Spencer,
"nnd. now that wo have n real pros
pect of ftottliiK transportation for
our ores, 1 am willing to liollove that
my forttino Is there.
"The Squaw creek camp Is a con
tinuation of the Hluo I. edge belt In
all lis rlchnoss of ore and extent of
veins. There are sixteen or seven
teen distinct and well-ileflned veins
In that part of the belt that run from
10 to 200 feet In width. The ore
from these veins runs about the samo
per cent In copper and richness In
Kold as that from the Uluo Ledge
camp. Tho tonnage this camp will
supply to the railroad when ready
for service will lie Innuendo. A Just
estimate would scarcely be believed
by thoyo who, although Medford Is
loss than twenty miles awny, are
prone to discount n minor's flRtiro
on anything.
IIiiIImmiiI Our SaUntlon.
"The railroad will prove to bo our
salvation. Wo cannot develop largo
mlncH extensively without tho mentis
of transporting our ores within rea
sonable cost to the necessary plants
for proper treatment. Hut tho de
velopment of the entire lllue Lodgo
territory will supply such an output
of ores aa will quickly Justify tho In
stallation of concentrating and smelt
ing plants. They will add greatly
to the pavroll of the district. Thou
sands of people will be required In,
this work. That is another ostlmato
that many will question, because
thoy do not reallxe tho extent of the
mining region in consideration and
the number of men Its development
will necessarily employ. Tho opinion
of these people, perhaps oxeuwihly
Ignorant of the situation, ought not
to go for much Thoy may talk vol
ubly about mining without much
knowledge of mining, but such talk
cannot deceive the miner, nor ought
It to lie permitted In deceive anybody
else. You have already published
details of how great titles have been
made by mining development alone.
Such Instaucea are numerous- Den
ver and other cities In Colorado; Spo
kane, Wash.; Hum, Mont., and other
places of almost equal note.
Why Not .Mn.lfonl Also?
"There Is no possible reason why
Medford should not lie one of thosn
cities. If It surrounding mineral
wealth should be developed. In fact,
I do not now call to mind a city so
happily situated, whoso vast mineral
wealth lies so close to Its boundaries,
and Is so choaply accessible In ovory
way. Your frultmen, stockmen and
farmers In the general lines all know
that freight rates consume the great
er jiharo of their profits, no matter
in which direction they ship their
produce over their one system of
rails. I read In your paper recently
that thoy have alread estimated the
groat reduction In freight tariffs a
shorter road to the coast will insure.
"Thero la an abundance of timber
for use In the mines and for other
local purposes in the Squaw creek
district, but not much of the com
mercial kind. On the Car berry fork
of the Applegate, oh the Oregon aide,
and on Cougar creek, a branch of
EACH SOLDIE
ENU
lr Hell hn become a convert In Ibe merrially Important airship of Mm
eps lin lype. Me believes tluvc Krvnt ' future nnd iwcdict that dnring thr
ihriuiblc kb bajr1 will be Ihe com- neat forty venn the ce?nfflreinl ir-
0 HHBHII-B'-ll.lHULg
shift nf the 2pftlti Ijrj will orfc M
jrreal a revolnlbm in transport Uon
a did the railroad.
r
STED H Ml
JL
i$ef5fw 2m3m : :55-:::iki
W ASIIINOTON, Mav :l. It n eas
ier to nuthorie a bm aimv than to
get men to serve in it. If eongiess
approves the pending legislation for
'230,000 men in Ibe regular federal
senicit, it will be four year at least
before these men can be secured un
less the present rate of enlistments is
greatly increased. The department is
getting men now ut the rate of about
7."0 a week. The war detriment ia
expecting to spend $2,000,000 to se
cure '20,000 men, and at this rate the
cost of enlisting 1.10.000 iidditionnl
mill will be .$18,000,000. Losses by
desertion nnd retirement will make
the required enlistments even greater.
It is the contemplation of facts like
these which lead many intelligent
aniiy men to conclude that congress
will have to do more than authorize
an increase in the aimv that army
life will have to he ninde more ut
tractive, either by increasing- the pay
or lidding educational opportunities
to the service, if fighting men are to
be secured.
To Manage 'aiiisilgn.
Henry Morgcnthati, lately ambas
sador to Turkey, will uuuingo Presi
dent Wilson's campaign for re-election.
It has long been known that
Mr. Mc Combs is entirely out of sym
pathy with Hie Wilnn administration
and (he iiiinoiiuccmeiit of his resig
iiution caused little suiprise. Mor-
gcuthait was successful four yearn
ago in securing funds for the Wilson
cnmpiiign, hut the white house wants
it understood thai .Mr. .Morgeiilhau is
not enlisted merely a a inoney-gel-ler.
He is to have practical direc
tion of the work of oigiiuization for
Wilson's nomination and re-election.
La l-'ollelte ltcfcivndiiin,
Senator Lit Kollelte has u plan for
u iialiou-wide referendum on the
question of going lo war with der
ma ny. In eiiso diplomatic relations
are severed .Mr. m Follctle would
have congress iiulborixc the use of nil
postoffiees Ihioughoiit the country
lo lake a mail baljyt of men and wom
en of voting uge answering the ques
tion whether or not they favor war.
Water Wiivlos.
The "wilier wireless" telephone is
the latest discovery. It is the inven
tion of scientists in the nnvv depart
ment who have been working- on the
many problems f the U-bout. A de
vice has been worked out bv which
the water can be used to curry sound
just as Ihe ether waves earn- elec
trical vibrations between Ihe wirolc
tolcgrph stations. Willi this device
two submarines will he able to tele
phono to one another just as well as
if the wires were stretched between
the boast connecting regular tele
phone upiairatii. The water tele
phone is attached to the outer wall of
the ship's hull in -iii'li a way that Us
diaphragm is brought in direct
contact with the water. The vibra
tion conveyed hv the disishragin lo
the water which transmits (hem to a
receiviiiK instrument of similar char
acter in the other boat.
H.xperiuienls now are in progress
to determine how far the water will
transmit sounds. It ia found that
the water wirelc-s will oMralc over
distunccs as i;r .it as telegraphic
ether wireless, the world may soon
see a iraiis-Atbintiii and trnns-l'u-cifie
wiieless tel phone service.
Zepindliu. of I'm nit).
I'hat the world bus not yet awak-
m
that stream, there Is an abundance .ened to the revolutionary possihih
of merchantable Umber of tho finest
type; hundreds of thousands of dol
lars' worth The Kpauldlngs own
most of this timber. The operation of
the mines will develop the timber In
terests. A Mining camps ot large pro
portions' use Immense quantities of
lumber lu these mills you will have
other large payrolls It all runs into
money. There are millions of dol
lars' worth of these raw materials
very rlosi- to Medfoid's liaikvards
tie and piobabilitios of aenal navi
gation us demonstrated in the Kuro
iean war is the belief of Dr. Ah-xnn
der 0 nihil in Itcll, inventor of the tel
ephone and one of thu pioneeis in
aviation. Or. Hell for inuiiv vcar.
believed in the beavier-thaii-air solu
tion of the inr-lii problem and most
of the succeitu! 0XHriluciital wmk
dune in this country along these lines
was conducted under bis pcr-oii.il mi
I k rvi-.mii iiml i uur.iunn' nt nu
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Closes It
oors
AHRENS STORE IS CLOSED
While Stock is Being Prepared for
Sale to the Public
20 Experienced Salespeople are
wanted. Apply at back door.
Ask for Mr. Craig.
For further particulars see daily papers
:
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x -r x r r x ! z r x r z " t D c
SJMJK1 rrjjS&uri PXr,
5
01m
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Well dressed people always have well shined shoes.
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SniamA ME SET
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) pleasure
-
ssr
-?-,v -';SRW.,,a
ggf'&'.-
BLACK TAN WHITE
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fr
if) 2 W Added
JriMjj f Two
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In lyJJ Ml Then
Wlr N cood.pl
fQrUA Mil or your
mW Hi
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ChIn,Trd -i I
On. cf the r v. OSBTwTT'
sTmmmAvcrfr
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time the two rugged anti-
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