The Bismarck Tribune Newspaper, February 24, 1919, Page 4

a THE BISMARCK TRIBUNE —$_———— Entered at the Postoffice, Bismarck, N. D., as Second Class Matter. GEORGE D. MANN -_ = = = is Editor G. LOGAN PAYNE Fe Special Foreign Representative NEW YOFK, Fifth Ave. Bldg.; CHICAGO, Marquette Bldg.; BOSTON, 3 Winter St.; DETROIT, Kresege MINNEAPOLIS, 810 Lumber Exc! MEMBER ASSOCIATED PRESS The Associated Press is exclusively entitled to the use for republication of all news credited to it or not other- wise credited in this paper and also the local news pub- shed herein. " ‘All rights of publication of special dispatches herein are reserved. Z MEMBERS AUDIT BUREAU OF CIRCULATION SUBSCRIPTION RATES PAYABLE IN ADVANCE Daily by carrier per year .. Biase oe $7.50 Daily by mail per year (In Bismarck). seeeeees 7.20 Daily by mail per year (In State outside of Bismarck) 5.00 by mail outside of North Dakota -. 6.0 THE STATE’S OLDEST NEWSPAPER. Established 1873) GiB === = NEW REVENUE LAW There is much confusion in the public mind| over the new revenue law and the date upon which reports must be made by individuals as well as corporations. The Revenue Bill of 1918 passed the senate Feb. 13, 1919, and is now awaiting the sig- nature of President Wilson. President Wilson’s absence in Europe has caused some delay, but within ten days upon the receipt of the bill by him it becomes a law unless he signs or vetoes it at an earlier date. It is presumed that one of President Wilson’s first officia s will be to sign the six billion dollar revenue measure. Printed forms are being prepared and before Jong these can be obtained. However, summaries of the law can be secured and corporations as well as individuals can prepare in advance the neces- sary data. : The Guaranty Trust company of New York, has issued an excellent hand book explaining the features of the law and it should prove an invalu- able text book for accountants. Returns under the law must be filed by March 15. The government is being subjected to con- siderable critcism for delay in getting the blanks and printed instructors to the taxpayers. procrastination doubtless will result in some loosely drawn reports and in any event much of the work will have to be done a second time. “THE DUNCE MAY DO, AND THE STAR MAY DROP... Our old friend Noah Webster tells us that a “dunce” is an ignoramus and a blockhead. Some = school teacher# sa¥ a dunce is “a boy who'll never angen tyra Amd.some of us older fel- lowWs=lnos Ww it used’ to feel to stand in the schoolroom corner and wear a dunce’s cap. Hon- estly, we agreed with the teacher then that we were miserable failures. But scmehow or other we pulled through. And it appears that other dunces have /one = even better . The United States bureau of educa- tion has just published a report on “school exami- ~ nations and failures to pass.” It says: “That the formal examination. is-no criterion for determining ability is a cofclusion abundantly supported by an examination of the school careers of men who have become famous. For example, Thomas A. Edison never could pass his school ex- aminations, and when his teacher reported that it was a waste of time for him to attend school he was taken out and never returned. “Charles W. Eliot, while president of Harvard university, once remarked that he would not have been able to pass the entrance examinations of his own university. Henry Ward Beecher stood sixty- fourth in an examination in grammar, while the boy who ranked first became a barber in a south- eri city.” All this should be interesting, and somewhat conscling, to the boy or girl who “failed to pass.” It doesn’t mean that those who win first prizes in school examinations fail in after-life, but it does prove that a dunce’s cap often is on the wrong head, and that failure to pass a school examination won't keep a fellow from becoming a successful business man, a learned professional man, a bank- er, lawyer, farmer, inventor, educator, preacher, president. Possibly it is that “school stars” fail in later life because their school successes keyed them up to a false notch of self-confidence which discoun- tenanced further effort ; and, on the other hand, it may be true that school failures are a sort of tonic or spur which drives harder and faster to make up for a late start. WEED OUT BOLSHEVIKI “Bolshevism, I. W. Wism, and revolution shall not be preached on the floor of this council. I do not propose to tolerate it. And there are others, who feel the same way as I, who are compelled to listen to revolutionary speeches in the organiza- tion.” B. Nauman, ‘chairman of the general strike committee that managed the Seattle walkout, made this declaration to the Central Labor council when he completed his verbal report on the strike. This man Nauman courageously sounded a toxin which should be heeded by every legitimate labor organization in the land. It is high time organized labor cleaned house; separated the goats Such | The American Federation of Labor and other o ganizations of the brawn and sinew of this nation must purify themselves of wolfish leaders and say to anarchy “Thou shalt not.” This for the gocd of the nation and for the life of unionism. When in a region like the great Pacific North- west, where every union and every community is enjoying unheard of prosperity, it is possible for I. W. W.’s and Bolsheviki to get up the beginning sit up and take notice. And it certainly is time tor all true union men—patriots—to ask the why of it. The purpose of this great disturbance in the state of Washington was revolution, nothing less. It was so confessed by many of the leaders. Where the movement would have spread if successful no- body can say. Bred in a region where 95 per cent of the wage earners were enjoying high prosper- ity, it would likely have meant civil war in regions less fortunate. Pigture Uncle Sam settling -his labor problems with machine guns while his ehief representative is over in Europe preaching his sort of democracy, his sort of freedom of speech and assemblage, to the benighted foreign nations. The Seattle revolution fizzled in its incipiency sympathetically walked out discevered I, W: Wism and Bolshevism were leading them to ruin of their organizations, Is there any intelligent union man in this coun- try in Bricklayers’ Number 2, or College Profes- sors Number 1, or any other association banded to- gether for united effort for human good—who can not see these facts: First, that the government— public cpinion—today approves and encourages second, that this existing and growing condition of popular approval depends absolutely upon the wise, just and patriotic gegtcise of thejy power by unions; third, that trongest, feddliest blow that opponents of unionism can strike is to fasten upon them the vicious names of “I. W. W.” and “Bolshevist” ? WITH THE EDITORS | THE MAIL ORDER HOUSE AND THE COUNTRY MERCHANT F. P. Mann, president of the North Dakota Retail Merchants’ association, contributed some hard common sense to a discussion of the mail order problem before the recent convention in Minneapolis,of the Minnesota Retail Grocers’ asso- ciation. : Lleap eee He haid? th {mail bedi fhufies should be fought by better’ merchandising methods, and above all by advertising. “One reason why mail order houses have made such progress,” he said, “ig that ninety per cent of the rural business men do not believe in pepe hg The truth of ghat idga is a seer*plainly on every “hand: rt pene” SB In the many rural newspapers that éome to this office we have many times observed this phenomencn: that most’of the outcry against mail order houses comes from the communities whose local merchants, judged by the advertising col- umns of their local newspapers, are the least pro- gressive. ; In nine times out of ten, when you find a coun- try paper attacking the mail order houses and urging people—vainly, no doubt—to do their buy- ing at home, you will find few. local store adver- tisements in that paper, and the few that are there are bare announcements, seldom or never: changed, that such and such merchants are en- gaged in such and such business enterprises. Such advertisements, when’ insérted by so-called mer- chants, are the products of men who do not be- lieve in advertising, and who do what advertising they do largely as a charity to the local newspaper. Yet the local editor, handicapped by the unpro- gressive sloth of the merchants, battles week in and week out against the mail order houses in be- half of these unprogressive. merchants whose neg- lect of a great opportunity gives the mail order houses their best opening. On the other hand, when a country newspaper carries real advertisements, using good space and full of detailed figures and bargain prices, showing that that town has progressive merchants, you seldom find it worrying about the mail order houses. The mail order house is no problem there because the merchants, by up-to-date merchandis- ing and effective advertising, are able to hold their own and more. Nine times out of ten the merchant that ‘sits under his cobwebs and whines about the mail order house deserves to be defeated by this distant com- petitor because he doesn’t brush up on his mer- chandising and especially on his advertising. Country stores that run real advertisements, like those of the leading merchants in Duluth, stand up successfully against, mail order.competition, and the newspapers of such towns never need to waste at home. ' s One advertised bargain, showing that the live peals to patronize home industries. va from the sheep; repudiated and kicked out the goats with dispatch and discrimination. : Between Bolshevism and the affairs of this of a revolution, jt is time for the whole country. to]- mainly because the vast majority of the men who unionism of labor as never before in its history ;|" breath in academic arguments in favor of buying home store can compete with the mail order houses, is worth yards and yards of printed ap- The merchant who is ‘worried by mail order competition has his remedy right at his elbow in| the local newspaper's advertising columns, pre- viding he studies the advertising methods of city, merchants and keeps as up-to-date in his advertis- =| = = Le I EZicbare(o = Washington, D. C., Feb. -Mr.} Bachelor, was your net income for 1918 $1,000 or more? Mr. Bertedict, was your net income for 1918 $2,000 or more? Af_so you, are, required to, file any income tax‘ return with the -collgctor; of internal revenue for the district in which you live on or before March Congress has carefully di ated between the person who “fails and the person, who “wilfully refusos” to make+a return and pay.the tax within the time, specified by the new revenue Dill. Delinquents of the first class are subject to a fine of not more than $10,000, or imprisonment for one year, or both. For-making a fraudu- lent return, the penalty is a fine of not. more than $10,000 or imprison- ment for one year, or both, and an ad- ditional assessment of 50 per cent of the amount of tax evaded. el ‘For Failure. For failing to make the return on time, in addition to the $1,000 fine, there is an assegsmeht,of 25 per..cent of the amountzofitax due. ° ** Taxes may be paid in full at the time of making the return, or in four instalments, the first of- which is due on or before March 15, the second on or before June 15, the third on or be- fore September 15 and the fourth on or before December 15. If any installment is not paid on time, the entire amount becomes due ten days after demand therefor by the collectod. For falling to pay the tax when due there is a penalty of 5 per cent of the amount unpaid, plus interest at the rate of \. per cent a month during which it remains un- paid. Last’ year income taxes were due on or before, June.15...The bureau of} internal revenue . is. seeking to em- phasize that this year, to avold pen- alty, the tax-payer must pay at. least! one-fourth of his tax on or before March 15. With the passage of this new reve- nue bill the question of’ how properly to make out an income tax return forj 1918 presents itself to millions of taxpayers. The answer to this ques- tion was obtained from the bureau of internal revenue. the government's collection agency: . . The New Bill. _The new revenue bill, as it affects individuals, ‘differs:. 7 Fially from the war revenue-act of October 3, 1917, and preceding acts. Probably the most important change is the rate. the exemptions of $1,000 for single persons and $2,000 for married per-|; sons and heads of families remaining} i ithe same as under the 1917 act. The normal rate of tax under the act of 1917 was 2 per cent on\the net income of single pergons in excess of $1,000, and 2 per cet on the net in come of: marrted persons and heads of families in excess of $2.000. Un- der the 1916 act the normal rate of tax was 2 per cent on the income of dingle persons in excess of $3,000 and| 2 per cent on the net income of mar-! ried persons and heads of families in| excess of $4,000: Taxpayers whose net income. exceeded the amount of the exemption provided for by the Act of 1916 ‘were taxed under both the 1916 and 1917 acts. ‘This year the taxpayer has only one act to consider.; The:normal rate of tax under the new act’ is 6 per cent on-the 4rst 94,000 of net income above’ the exemptions, and 12 per cent on the remaining net income. This applie tso citizens and residents of the: Unit States. Income from “WHADDYE MEAN, INCOME TAX?” HERE’S THE CORRECT DOPE FROM INCOME EXPERTS AT CAPITA .{In addition he’ pays, a. surtax of $10, ‘| incame between $5,000 and $6, \ $240, all at the rate of 6 per cent on his net, income a ove his personal exemption of $1,000. ‘The single man! iwh:tan income for 1918 of $6,0C0 will] pay $370. He is taxed ati the rate of 6 per ‘cent on. hig first $4.000, above the exemption and at 12 per cent on the remaining $1,000, a total of $360. one .per cent of’ the amount of. his 00. 5 mi ob Oden gvill yy Bo ge a net’ thcome Gf $4p00gpi $50 im exgess of his” persqnal ¥exelp ptio| a $3,000"! income,”: $120" "on-"% (000° in- come, $180. on a:-$6.090 ‘income and $250 on. a. $6,000-'inceme, waich in- cludes ‘his surtax of -$10.., ‘ These. flgures-argé based on the in- come of taxpayers without dependent, other-than husband. or.wife. The tax payer is allowed, in. addition to his pet al ‘exeniption of "$200 for each person’ dependent upon for @hicf sup- port, if such person is under eighteen years of: age or incapable of self, support. Under the 1917 act the $2 exemption was allowed ‘only for each dependent “child” of the person mak- ing the return, or, in the case of a head of a family, for each dependent child of the family. A head of a fam- ily—one who supports one or more persons closely connected with him by. blood relationship, relationshtp by marriage, or -by adoption—is entitled to all the exemptions granted a mar- ried person. In his return the taxpayer is re- quired to state specifically each item of gross income. Gross is. defined as “gains, profits and income derived from salaries, wages or compensation for personal seryice of whatever kind and..in ,whatever form paid, or from professfdns, vocations, trade, business, commerce, or sales or dealings in property, whether’ real, or personal, growing -eut- of the ownership or use of such: property; ‘also from interest, rent, dividends, ,{séctritles, or the transaction of any business carried on and income derived from any source whatever.” What Net Income Is. Net income, upon which the tax is assessed, is gross income less certain deductions which are more liberal than under the preceding act. They include the following items. Expenses paid of incurred during the taxable year in carying on any trade or business, including rentals and a reasonable allowance;.for sal- aries. ‘ as. Interest paid or accrued during the year 1918 except on indebtedness: in- FS for the purchase ‘of tax-exempt ecurities, other thdn ‘obligations. ify hy’ the United’ States after Sep- mier.24, 1917. 2) / Taxes paid or accruéd, except in- come,’ war profits and ‘excess: profits taxes, and those assessed agaltiet lo- cal benefits of a kind tending to im- prove the value of property. ‘Losses in business. or. trade, if not compensated by the insurance or oth erwise. Losses in any transaction entered into for profit, not connected: with the regular busines sof the taxpayer. Losses ustained by loss of prop- erty not connected with the business thé taxpayer if arising from: fires,’ rms, shipwreck; or ‘other cagualty> and if not compensated for<Dy ‘fo- surance. ap ee . Debts) ascertained to be worthless and charged off within the taxable year. Amortization on buildings, machin- ery, equipment or otier facilities con- structed or acquired for the produc- tion of articles contributing to the prosecution of the war. A reasonable allowance for depre- ciation of property used in business or trade. d A reasondble allowance for deple- tion and depreciation of property in the case of mines, oil and gas wells and other natural deposits. Contributions to corporations oper- ated exclusively for’ charitable, relig-| ious, educational,’ or scientific pur- poses, or for the prevention of ¢ruelty }to children or, animals, not in ‘excess of 15 percent of the taxpayer's net income computed without the benefit of this deductjon. for gain or profit, or gains or profit RAR RRR eee A. TRAVELER'S TALES By EDMUND VANCE COOK ‘ property inthe United States owned by non-resident, aliens: is. subject to the full normal tax of 12:<per ‘cent. subsequent yea ing as he does in his other merchandising methods. “The foregoing deductions show sev- That. woney:talks In any land, Or any tongue, seems true. The dollar’s speecti is candid, and I found the French franc, too. They took me to an out-door ball To view. a wondrous. scene. They danced the new “potato-crawl” Upen the Paris green. But at a Teuton frolic, lo! Appeared. a: different hue, ‘A bitter and a biting show, Which makes the Prussian blue. They now admit war is no lark, Nor is it wise, they’ve found, To mateh an easy German mark Against the English pound. Old Scotland’s spirit still stands high; 'They entertained me well, sir, By piping “Coming through the rye” In native Scotch—and selzer. ‘There’s not a welcher in all Wales, For welching’s not their habit; Though they do tell some wondrous tales About their wild Welch rabbit. The English bulldog is « beast Of fighting stock; none better! He’s well set up, but I, at least, I thought the Irish setter. _T viewed the land of oll and wines I interviewed the pope, Not meaning to make Norway plne, Nor further Castile’s hope. Some say I never should: have gone And hint I've acted truantly, But since I've visited the Don, I speak the Spanish, flu-ently. Yes, I have traveled far and near; T’ve crossed the seas and oceans, | Bat now it’s good to be buck herd notte i MONDAY, FEB. 24, 191% NEURALGIC PAINS Give Way te Soothing Namlin’s h} Wizard Cit i 4 in's Wizard Oil is a safe and 1 where the pain to the tortured id almost invariably brings quick relief. ¢ Its heality, antiseptic qualities can always, be relied upou to prevent in- 1, or-other serious results, from bruises, cuts, burns, | bites Just as good, too, ‘for f neck, frost bites, cold sores and canker Sores. : Get it from druggists for 30 cents. If not satisfied return the bottle and get your money back. Ever constipated or have sick headache? Just try Wizard Liver Whips, cents. Guaranteed. S————————————— eral changeg-in the tax policy of pre- ceeding years. Probably the most im- portant is the. provision’ allowing de- ductions for losses sustained in trans- actions outside of the taxpayer's reg- ular line of business. A ‘business mau who “dabbled in stocks” and in one transaction lost $10,000 and in: another made $2,000, was required, under the 1917 act, to include the $2,- 000 in his return of gross income, and could claim only that amount as a de- duction, Under: the current act, ne is allowed to claim a deduction of $3,000. Deductions. Deductions canot -be made’ for per- son, family or Hving expenses. ‘The. fojlowing.: items’ are exempt from taxation under the current act, and need not be included in the re- turn: g Proceeds of life insurance policies. Returns of premiums on-ilie endow- ment and annuity polictes::'” Value of property acquired by gift, beqpuest. or inheritance. ‘1¢ must be understood, however, ‘that the income derived .from: such property: is tax- rable:‘and should) be’-included under “}grogs income, Hi sited as Interest on.bondsand other \obli- gations of any state or terirtory, or any subdivision of: a state or terri- tory, such as a city, town, county or village, and of the District of Co- lumoia. i Interest on securities issued under the: provisions of the. federal farm loan act of July 17, 1916. Interest on the obligations of the United States, except that in the case of obligations issued after September 1, 1917, the interest’ is exempt only to the extent provided for in the Lib- erty bond acts. Interest on Liberty bonds to the par’ value of $5,000 is exempt from all taxation. Holders of large amounts of* Liberty bonds are advised to consult their bankers 6r collectors’ of internal. revenue -as to interest exemptions. he ob °}) Amounts, received ' through ‘acdident or. health sinsurdnee,or; under tavork- mens!9 compéneation: ats) plus. the amount -of damalfe Fevelved; Whether by suit or agreement; "ién°aedount of such injuries ‘or sickness.9/40'* Amount’ received turing the war by @ person ‘in. the military. or naval forces~ for active’ service not to ex- ceed $3,600. . ‘Husband. or: wife. whosescombined nét income: for 4918oequaild# or ex- ceeded $2,000:imukt ‘fileamnatupnz cith- er separate or joint as desiredsilf sep- arate—returns--are;filed either one may. claim, the, parseanal exemption of $2,000,-or they may, divide it. A widow, a@ woman living apart from her hus- pand,/or a maid must file a‘ réturn If her net income was $1,000 or more. The bureau of internal revenue is seeking to impress upon the public the necessity for compliance with that section of the faw requiring a return of income whether or not the income is taxable. The single man iwth an exact income of $1,000, or the married man with an exact income of $2,000, who decides that, because his income is not ‘taxable, he need not ‘bother about filing. a return, is mak- ing a mistake. To Be Checked Up. A checking system will inform the bureau of internal revenue of. delin- quents. Under the “information at source” provision of the act, every iu- dividual, corporation or. partnership which paid in 1918 to another ‘individ- ual, corporation oF partnersiip $1,000 or more, must make a returf of such Payment to the commisioner of intern- al revenue, These .returns are re- quired of employers, lessees and mort- gagers of real estate, and fiduciaries, and must include. rents; salaries, premiums, and annuities. Employers are required! to make a separate re- turn’ of each paythent of $1.000 or more to employees, and wherever pos- sible, must .state whether the recip- fent is single, married or the head of .|a@ family.~ : Forms for filing dacome tax returns may. be. obtained at the offices of col- Jectors of internal revenue. Announce- ment of, their date of distribution will be made by collectors. Taxpayers, whose net ineome for 1918 was less than $5,000, should ask for Fort 1040A. Those, whose ‘income was more than $5,000 sould ask for Fort 1040. The man who this year is required to pay_an income tax.is urged by the bureat™ of Internal’ Revenue to file hig‘return without delay as a. means not only ‘of avoiding: possible future embarrassment to himself, but as an aid to the government in the collec- tion of its war revenue. “It must be remembered,” said Commisisoner of Internal Revenue Dantel C. Roper; “that the revenue to be derived under the current act is to be used to defrhy the cost of a war that has brought victory to the United States and its allies. The es- timated total if $6.000.000,000. Com- Pate this with the indemnity. that would, have been demanded by Ger- many had victory been on the other side. The man who pays an income tax this year may do so with thank- ful heart, secure in the knowledge that he {8 bearing only his just share of @ comomn burden, which no loyal American would evade.” See OLDS _— with pleasant little pink pills, 30 - { { ( wen