The Seattle Star Newspaper, April 27, 1916, Page 1

se nS a SEATTLE, WASH., THURSDAY, APRIL 27, 1916. oN xews ONE CENT TRAINS NIGHT EDITION The weatherman says he’s going to keep the rain spigot shut this afternoon for Dug- dale’s sake. Forecast today: “Fair tonight and Friday; cool tonight with light frost.” AND STANTS fe U.S.and Germany, Which Faced Break, Nearly 4000 Miles Apart ‘This map shows the relative position of the United States and Germany on the world's surface. the English fleet, near the Orkney islands, and that of the German fleet off the German coast, in HAT WOULD U.S. DO IN SPLIT ‘WITHGERMANY? | Military History Instructor| at Harvard Outlines Prob-! able Developments in an Article for The Star. }. Johaston’s exciusive forecast ‘ATES WOULD MAKE WAR ON GE BY PROFESSOR ROBERT MATTESON JOHNSTON Head of Department of Military History, Harvard University Copyright, 1916, by the Newspaper Enterprise Association What will be our military situation in the event of a diplomatic fupture with Germany? The first point that needs consideration is the manner of the rup- ture. Wf there ie merely a severance of diplomatic relations, or a sever- ance followed up by ps not act y belligerent rely in the mature of reprisals, an ambiguous situation will be create A That Is, we shali be in a retation to Germany not clearly defined. And this, in view of the different mannér in which the foreign policy of the two countries is conducted, would amount to leaving the option with Germany. Assuming that no belligerent acts occurred during the continuance of the present war, we should have no assurance but that Germany, on concluding peace with the European powers, or soon afterward, would @ecide that a state of war existed between her and this country. It is} even possible that an understanding that she w: 0 have a free hand on the North American continent, excepting Canada, might form a part ef the peace negotiations! EQUIVALENT TO A STATE OF WAR Fi Assuming this possibility, then, there is no safe way of approaching our situation as regards Germany save by saying that a rupture of diplomatic relations is equivalent to the creation of state of war; and that our military itimates must be based on this supposition! The questions before us, therefor TICIPATE IN THE WAR OFFENSIVEL HOW CAN WE DEFEND OURSELVES IN CASE OF ATTACK? | Our participation offensively could, for 12 months or more, only be and economic. | it is a question for others to deal with. But it will be very un-} to assume, as many do, that our financial and economic Interven- tion could be decisive. Our regular army is far too small to count In the struggle; it might, at most, be able to relieve the French army along two or three miles of front. OUR NAVY 18 OUR ONLY OFFENSIVE FORCE Our navy is the one offensive force we possess; which is, Incidentally, a fact not generally unde ‘stood, The fleet is essentially a striking weapo! ed, combined in the most effective way, and used for delivering heavy blows. Unfortunately, it is far from efficient, owing to the ex- tromely inexpert way in which the higher naval problems are dealt with at Washington, and, unfortunately, war with Ger- many, at the present moment, offers little opportunity for the use of a fleet. HOW CAN WE PAR | investigator ‘The British line of battle fleet is capable of controlling deep water, and does not require immediate support Summing up, it is clear that neither by land nor sea are we in @ ition to participate offensively. eg DEFENSE BECOMES OUR ONLY REAL PROBLEM If we can do nothing offensively, is there nothing Germany could, do to attack us? So long as the British fleet exists, NOTHING. But, altho it js far from probable, the British fleet might be de or, which is not at all imposatble, Germany may be able to dictate terms that would leave her free to operate on the Atlantie. I!) EITHER CASE, OUR DEFENSE BECOMES A REAL PROB LEM. How does it stand? The fleet might prove a defense, altho this is not its func- tion; it is lacking in organization and is not sufficiently strong. stroyed A German fleet could always choose whether or not to en- (Continued on page 8) “Wty BRiTisH . » i a de, a the vicinity of Heigoland. A bAhh, ‘ + NORTH “ DFNn sng Asus Se Naas 4 y, JERMANY< Coy “y VIENNA ‘2 ANUSTRIA™” HUNGARY, a ee "ALY Our drawing shows how the North Atlantic squadron would be thrown out to protect our shores; it also shows Chan CS What Des Moines Has Cost King County URING Lafe Hamilton’s tenure of office county commissioner, his residence town, Moines, has received the following county paid for by the whole people of King county: eevee @ Thirty-five thousand dollars for a ferry between, Vashon island and Des Moines @ Seventy-four thousand dollars for and grading a road from the city limits to Des Moines @An appropriation of $222,691.22 for paving the road WITH BRICK Total, thus far: $331,691.22 To this, the sum of $20,000 should be added ferry slips, terminals, etc. . as Des favors, clearing for Lafe Hamilton's home at Des Moines—4% acres, with buildings—is worth $3,540, according to assessors’ figures NONPARTISANS LOOKS GOOD FOR MEET TONIGHT TODAY'S OPENER As we go galloping to pr Indications are bright for a rec- ord-breaking “opener.” After the heavy shower of the early morning, the grounds at the ball park were given a careful once-over, and it w reported they would be in fine shape by 3 o'clock this after. noon. On the meeting Thursday night at the Good Eats cafeteria will de pend whether the plain question of nonpartisan state and county elections, as well elty tions, will be presented to the vote of the people this year The meeting is called for the pur. pose of discussing a bill drafted by Deputy Prosecutor Palmer, with | the assistance of several other law-|NOTE COMES NEXT WEEK yers. The measure deals with no| WASHINGTON, April 27.—Ger other question except nonpartisan-|many’s answer to the American ship. |submarine note will not arrive until All those Interested In this move-| the end of next week, according to ment _are Invited to attend private advices fr as elec he a social them, ent another of his articles, one columns day by day—Editor, By BASIL M. MANLY Noted American Economic Investigator In yesterday's article I indicated the general character of the evasions of the United States income tax, which, in the aggregate, amount to more than $320,000, )00—an amount which this nation stands in desperate need of for her “preparedness,” a bill that cannot possibly be paid by the working- man alone. In today’s article 1 will exhibit the evidence upon which I base the statement that should yield $400,000,000 annu the ),000,000) which treasury this odny we pi of m nerien to be ed in these the income tax ally, instead of the United State statute last year B The federal income tax is a tax upon the income of individuals and also upon the net earnings of corporations, providing for tha collection of a tax of one per cent upon the net earnings of corporations and also for what is known as a NORMAL tax of one mere collected under $92,000 Was Thrown Away by Lafe Elamuiltom on Big Paving Deal | ‘This Ae the atory of the biggest roe ding con. tract ever let in King county, told to The Star by Commis- J n. the high. handed methods of Lafe Ham- liton and Krist Knudsen, hie associates, Carrigan has dis- closed the deal by which he says $92,000 of the permanent “Why did you decide to pave the highway fund hi “burned jroad with brick instead of con up like it was Mexican money.” | crete?” Hamilton was asked Thurs- The contract was let early thin | 44. : week to F. McClellan, and calls for) “Because we wanted it.” the surfacing with Monolithic brick |Clared “It Is better than of 14th ave. 8. from the city Mmits | crete to the town of Des Moines, a dis Don't you consider concrete tance of 9.7 miles, for $223,691.22,| Would have done just as well on Because Hamilton chose to have | that road? 3 a brick pavement instead of con-| “I do not, sir!” he exclaimed crete, ax had been planned, there |that all you want to know? is no money left in the road build-| “The reason for this jobbery, ing fund to complete the highway |#ald Carrigan, “is that Lafe Ham- to the county line, as originally | !iton's home is at Des Moines. He planned, to provide a secondary hard surface road to Taco accepted, neither Knudsen would second it Ignoring Cairigan’s motion, Ham fiton moved to accept McClellan's brick bid, $92,263.86 higher than his concrete bid, The motion was carried, Knud- fen seconding it and voting with Hamilton in favor of the brick. Carrigan voted “no.” he de con. "ts the was That is also the reason why Vashon Island ferry terminal placed at Des Motnes “There is absolutely no reason why the road should be paved with brick ‘Conerete would have done just as well, would have saved the county $92,000 and would have left us enough money to extend the pavement on past Des Moines to the King county line to connect j with the Plerce county road to Ta- coma, as originally was intended. “The taxpayers are hot under the Change Came Suddenly So unexpectedly was the final transaction sprung that Carrigan had no time to marshal his forces to defeat the issue, he says. Bids for three kinds of paving were received on Monday, The McClellan bid was $2 22 for Monolithic brick and 130,427.36 for conerete. Letting of the contract was de |ferred till Tuesday | “All the talk up to Tuesday had been in favor of concrete,” said Collar over this deal, and Carrigan Thursday. “Knudsen haa | 80.” Carrigan said. “When | saw expressed himself in favor of {t. So What the scheme was and heard had Hamilton, So had 1. Brick Hamilton's motion to award the pavement was never considered, contract for brick, I called up two far as | knew. The brick bid was OF three people and told them asked merely to find out what the What was in the air. They hurried contractors would lay it down for, to the courthouse to voice their No sane commissioner would ever Protest, but arrived too late.” think of putting a brick surface on " j that road.” Knudsen Votes With Him On Tuesday, when Carrigan put ja motion that the low bid of Me ‘lellan for concrete surfacing be A “good times” party will be given Thursday evening by the | Minnewatha club in Douglas hall, 10th ave. and Kast Pine, Dancing at 9 o'clock, This is the last of the winter series. ee Mamfiton nor owns four and a half acres there. | rightly | Danger of Break Is _ Averted; New Order Given to Submarine | Commanders; Gerard _ Confers With Kaiser. By Carl Wz Ackerman United Pr Staff Correspondent BERLIN, April 27 (Bulletin).—The crisis between the United States and Ger- many has virtually passed. There will be no rupture predicated on developments to date. The United Press is able to make this statement on the most authentic authority. Pending negotiations a more complete understanding lbetween the two governments, submarines will be under ex- | plicit instructions. Their nature is not known, However, they furnish assurance that there will be no repetition of the acts complained of while negotiations are in | | Tuesday, when Foreign Minister You President Wilson's he crisis ed passe Jagow re information respecting j attitude Opinions differ as to whether chief credit belongs to Am- bassador Gerard or Ambassador Von Bernstorff. The latter played an important part because he had a rather free hand in handling the negotiations. Expectancy has replaced tenseness while statement with regard to the president’s stand is awaited. American Ambassador Gerard is leaving tonight fof the kaiser’s headquarters for a conference. Imperial Chancellor Yon Bethmann-Hollweg is expected back tomorrow to prepare the German reply to President Wilson's submarine note. AMENDMENT ‘AGREED ONTO. ~ QUIET JAPAN civ A momentous conference, | with the continuance of friend- ly relations with America hang | ing In the balance, is in prog- | ress at Kaiser Wilhelm's field headquarters today. The kaiser has received the views of imperial Chancellor Von Bethmann-Hollweg, Gen. Von Falkenhayn and Admiral Von Hoiltzendorff. ore Bernstorff Trying His Utmost to Ward | Off Nations’ Break BY ROBERT J. BENDER United Press Staff Correspondent WASHINGTON, April 27.—Am- |bassador Von Bernstorff here and Ambassador Gerard in Berlin are | doing their utmost today to pre vent a rupture between the United | | States and Germany ' | As long as Bernstorff is trying to} | meet President Wilson's views, ft is| | believed unlikely that the executiye| will demand any greater haste or take any action for the present; | which might embarrass him Comment in the German press is| so divided that it is clear that an junderstanding of the German posi-| | tion is not to be obtained yet. | ee WASHINGTON, April 27,— Japan’s demands with xclusion of laborers the United States are reported to have been completely met in an amendment to the Bur. nett immigration bill, which a majority of the senate riggs tion committee agreed to Only an informal meeting of democratic members was held. \t is expected the full com mitvee will meet next week and confirm today’s action. Japan would be seriously of- fended at any enactment de signed to keep Japanese from entering the United States, the was told. The mikado feels that the passage of a law regulating entrance of laborers while the in force would be a reflection on Japan's honor. | Interesting debate will follow the WHAT! DALE VOTES appearance of the bill from edm- } mittee, it was declared. | WITH 0. T ERICKSON Many senators, especially from je Ge the Pacific coast states, intend to | connieai be heard upon the provision of the | | bill to which Viscount Chinda, Jap. anese ambassador, objected in his Members of the city utilities |committee galloped aver Chairman Bernstorff’s iia | Thomson's objections and recom-|recent audience with the president, (7) mended that the city sell water to! Lately Japan has been much fn |the district north of the city, Thurs-|the minds of the administration day. officials. | Moore voted with Thomson Japan is pushing the extension | against the recommendation, of its control over China to a de Erickson, Dale and Haas voted for|gree that bids fair to menace the It. The North Enders will build preservation of the open door, the their own mains. |American principle established by - John Hay Ja is tightening its hold on the cific islands seized from Ger. man which form a__ perfect screen between the United States and the Philippines. The department of justice is sald to have evidence that Japanese as well as German agents have been |stirring up trouble for the United | cow In the chapel two weeks | [States in Mexico, supposedly to | ago. | |divert American attention from | | |overseas affairs to the American o— —@ iback yard ¢ - ° WHY HE QUIT SCHOOL SALEM, Or., April 27.—Max- well Ball, editor of The Col- ' legian, official paper of the Willamette university, is out of school today because he con- fessed to his part in putting a per cent upon the incomes of individuals amounting to more than $3,000 in the case of single persons, or in the case of married persons of more than $4,000, Income derived from the dividends of corporations upon which a tax of one per cent has already been paid at the source 1s exempt from this normal tax, but is required to pay tax. In each case the law allows unmarried persons an exemption of $3,000, and married persons an exemption of $4,000. In addition to the nofmal tax, individuals with incomes of more than $20,000 are required to pay an additional tax, known as the super tax, upon the amounts by which their incomes exceed $20,000. The super tax rates are On On On On On on than than than than than $ 50,000—1 75,000-—2 100,000—3 250,000—4 500,000—5 6 cent cent cent cent cent cent and and and and and over over over over over over $ 20,000 50,000 75,000 100,000 250,000 500,000 per per per per per per income income income income income income It in worth while noting at this point how much difference it makes whether a dollar of income is subject to the super tax or only to the ormal rate, A dollar in an income of over $500,000 must pay not only the normal tax of 1 cent but also a super tax of 6 cents, so that every dollar of the income of the very rich man which is escaping taxation is costing the treasury SEVEN times as much as if the fraud were committed by a person of moderate income! It is very important to rememover this, for it will explain how the tax collections n be greatly increased even tho only a relatively smaller amount income evading the tax in order to see what the income tax should produce it is necessary to analyze the national income to ascertain what part of it is r ived by persons with incomes over $3,000 who should be subject to the tax ity national income we mean the aggregate income regeived during ithe year by the people of the United States and not the amount of the of the SUPER} ; national production, for it is obvious that a very large part of the national income is received by persons who have no part in production, either as owners, managers, or workers, but who derive their income from professional and personal \services of all kinds. In or to estimate the amount upon which income tax should be paid, we will first ascertain the total amounts of the incomes of persons who should pay income tax, and then by deducting the exemp- tions of $3,000-$4,000 allowed in the case of individuals, arrive at the amount upon which the tax should be: assessed The national income of the United States in 1914 was approxi mately FORTY-SIX BILLION DOLLARS, In a later article I will show you in detail how this figure is arrived at, and why there can be no question that it is WELL. WITHIN THE FACTS. ‘The incomes of persons who should pay an income tax are derived trom one of three sources: (1) Salari 3 (2) Fees for pro- fessional services amounting to more than §! ; Income derived from the ownership of property or the conduct of business amounting \ more than $3,000 per year. Altho in the text I am stating the ex- emption at $3,000, in the calculations due allowance has been made for the fact that the exemption for married men is $4,000. The total amount of wages and salaries paid in the United States In 1914 we know with reasonable exactness to have been in round figures $15,000,000,000, Of this total at | $500,000,000 was paid to men who received salaries over $3,000, The total number of persons whose incomes are derived primarily from fees is shown by the census of occupations to be approximately 500,000. While there their total incomes, that their incom more than $90 Of this we may no exact data upon which to base an estimate of the available information indicates very cer average at least $1,800 and amount in the agg 000,000 safely estimate that $300,000,000 is received by (Continued on page 3) are