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• 0 4. SANDERS COUNTY SIGNAL Printed in the Interest of Western Montana, and especially the Western Part of the Flathead Reservation. Vovumz x1 CAMAS, MONTANA. FRIDAY, OCTOBER 5, 1917. NUMBER 10 SUMMARY OF THE WORLD'S EVENTS IMPORTANT NEWS OF BOTH HEW SPHERES BOILED DOWN TO LAST ANALYSIS. ARRANGED FOR QUICK READING Brief Notes Covering Happenings In This Country and Abroad That Are of Legitimate Interest to all the People. Hostile airplanes raided London again Saturday night, but did little damage. Martial law throughout Argentine Is imminnent. New strikes are de- veloping. All railroads entering Spokane have granted reduced rates for the apple show week. British aviators dropped seven tons of explosive in attacks September 28 on German military establishments in Belgium. About 50,000 American made mo- tor cars have served the allies in their war against the central powers since 1914. At Gary, Ind., Sept. 29, 6 men men death in the plant of the U. S. Steel corporation Sept. 29 as an indirect result of the strike of switchmen. The Duke of Amalfi has been ap- pointed Spanish minister to Mexico. He will succeed Alexandro Padilla,' who has been transferred to Lisbon. German conspirators, spies and propagandists, formerly so active in the United States, seems to have transferred. their attention to Nor- way. Charles A. Hanson, alderman of London and member of parliament, was elected lord mayor of London. He will succeed Sir William Henry Dunn. At Mobile recently fire destroyed the Bush Grocery company build- ing, the chamber of commerce and cotton exchange. The damage is estimated at 2300,000. Senator Kellogg of Minnesota re- cently introduced in the senate a re- solution which the Minnesota public safety commission adopted, demand- ing Senatbr La Follette's expulsion. It is reported from Petrograd that 150 Russians belonging to various socialist, Lettish and other political organizations, have been hanged by the Germans since their occupation of Riga. President Wilson has signed a re- nomination of John Franklin Fort, former governor of New Jersey, as a member of the federal trade commis- sion. Governor Fort was appointed last February to serve out the unex- pired term of George S. Rublee of New Hampshire. NOTED PERSONS DIE I New York.—James Clarence Harvey actor, poet and playwright. New York.—Isaac Newton Seligman, a member of the banking firm of J. and W. Seligman & Co. New York.—Luca Botta, age 35, for the last three sersons a leading tenor of the Metropolitan Opera company. Wellesley, Mass.—Francis Welles Hunnewell, age 79, formerly a director of the Calumet & Hecla Mining com- pany. U. S. OVERSEAS TRADE KEEPS ON GROWING. August Exports increased $115,500,- 000 Over the Foreign Buil- uess of July. Washington, D. C.—American for- eign trade increased during August, the department of commerce an- nounced Saturday, approximately $160,500,000 over July. Exports in- creased $115,500,000 and imports $45,- 049,306, were nearly three times the volume of imports in August. • exports for the 12 months ended with August were valued at 26,200,- 219,805 and imports at $2,773,751,498, compared with $4,759,285,590 for ex- ports and $2,294,873,989 for imports during the preAding 12 months. The balance of trade created by the United States during the 12 months ended with August is approximately $3,600,000,000. Imports of gold in August totaled $18,692,170. Airplanes Raid England. London.—The Lqndon district was raided Sunday tight by German air- men for the 'fifth time in a week. MONTANA SQUIBS T. G. Lewis, formerly of Butte high school, has been appointed by Sec- retary Baker as athletic instructor at Camp Lewis. Frank O'Brien and William Nevins, alleged robbers, sawed their way from the county jail at Billings Satur- day night. The former was captured Suntlay at Miles City and the latter in Billings. Government employes are moving into the new $100,000 federal building at Kalispell, Mont. The building is of two stories and a full basement. The first floor is to be used by the postof- fice and the second by the forestry of- fices, weather bureau, land office and postoffice inspector. That Poison has had remarkable prosperity in spite of the abnormally dry season h. shown by the bank statements just issued. The total de- posits on September 11, 1916, were 2340,589, and on September 11, 1917, were 2570,825, a net gain of $230,- 236, or 65 per cent increase. About 11,000 persons attended the Montana state fair September 28. A rest room for pioneers and their de- scendants, in the form of an old-time log cabin, was dedicated, Governor Stewart making an address. The flags of the United States, Great Britain and France were raised on the race course amid tremendous enthusiasm. The controversy between the Butte city exemption board, the district board and the provost marshal's of- fice over the exemption of aliens for draft was brought to a climax in a decision of the United States di- strict court when Judge Bourquin held that John Beck. an alien, could not be held as a deserter under the draft law. The court held that al- iens must be exempted from the draft even though no exemption claim is made by the individual. Scores of aliens have been certified for ser- vice by the city board and its de- cisions have been upheld by the district board. Although Montana state university has given, since the outbreak of the war, more than 100 men to national service, registration tor the fall term has exceeded all previous rec- ords, according to figures at the close of the preliminary registration period, October 1. Enrolled at pre - cent are 447 students, the largest number ever registered before the actual beginning of instruction. The effect of the war is seen, how- ever. in the predominance of fresh- men and women. Of the old students less than 200 have returned, and The cooperation of the newspapers The coouperation of the newspapers of the state in a vigorous campaign for students has been largely re- sponsible for the large enrollment, A. L. Stone, dean of the school of journalism, said. Fatal Accident at Fair. Two serious accidents ended the motor cycle and automobile races at the state fair grounds Saturday. One man was killed and three are in hospitals and one of the injured probably will die. Trying to avoid W. C. Moore, whose motorcycle had fallen, while going a mile a minute around the first turn caused M. Palen, of Crookston, Minn., and William Espz, to crash together, lose control of their ma- chines and plunge through the fence down an eight -foot embankment. Pa- len was dead when picked up and PIspz believed fatally injured. Moore is seriously hurt. In the preceeding event, a ten-mile automobile race, James Reynolds and Stanley Smith went crashing through the fence near the end of the back stretch. They had been blinded by the dust thrown up by the other riders. Clarence Averill, Reynold's mechan- ician, sustained a broken right arm and his head was cut and bruised. Reynolds received only a bad shaking up and recovered sufficiently to run his own car back to town. Smith escaped without injury although his car was smashed. Russians' in Mixup. Petrograd.—The maximalists and the social democrats at Saturday's session of the democratic congress voted 81 to 77 in favor of a coali- tion cabinet to include representa- tives of the bourgeoise, but 86 to 51 against the inclusion of the constitu- tional democrats. The revolutionary socialists voted in favor of a coati- ton excluding the constitutional de- mocrats 91 to 87. Western Man Honored. Washington.—President Wilson has appointed Clyde B. Aitchison, Ore- gon, member of the Interstate Com- merce commission for the term end- ing in 1921. Robert Woolley, Vir- ginia, and George Anderson, Boston, also were named members of the commission. Charles Page, Califor- nia. was appointed a member of the shipping board. EVERYBODY TAXED BY NEW WAR BILL EXCESS WAR PROFITS ARE TO BEAR $1,000,000,000 OF THE BURDEN. LARGE INCOMES HARD HIT Reading Matter, Music, Cameras, Shows, inheritances, Autos In the List—Sales on Produce Exchange, Tickets, Notes. Washington.—An agreement on the $2,700,000,000 war tax bill was reached Saturday by the senate and house conferees and the report pre- sented to the house Oct. 1. Levies of approximately $1,000.- 000,000 on war excess profits and $842,000 on incomes were left un- changed, but a new systelm of cal- culating excess profits was adopted. The conference report provides that the 'graduated tax of from 20 to 60 per cent on excess profits of corporations, partnerships and indi- viduals shall be levied on a basis of invested capital compared with in- vested capital of the three pre-war years of 1911, 1913, and 1913. This is a substitute for the senate taxes of from 16 to 60 per cent, based up- on a similar comparison of pre-war and present profits. Income Tax Section Stands. The income tax section virtually was agreed on, except for reearange- ment or surtaxa on incomes be- tween $15,000 and $40,000. The grad- uated surtaxes of from 1 to 50 per cent on incomes from 25000 to those of 21,000,000 and over were ap- proved. • The senate increase of from 2 to 4 per cent of the income tax on corporations, joint stock companies and insurance companies was ap- proved. The graduated excess profits rates are 20 per cent of the excess profits not in ecezes of 15 per cent of the invested capital for the taxable year; 25 per cent on profits in ex- cess of 15 per cent and not over 20 per cent of such capital; 35 per cent on excess over 20 and under 25 per cent of capital; 45 per cent on excess over 25 per cent and under 33 per cent of capital, and a maxi- mum of 60 per cent on profits in excise of 33 per cent of such capital. Actual Values. Iii calculating war excess profits the term "invested capital of cor_ porations and partnerships" was de- clared to include "Actual cash paid, actual cash value of other tangi- ble property paid for stock or shares, at the time of payment or before January 1, 1914, but in no case to exceed the par value of the original securities; paid-in or earned sur- plus and undivided profits used or employed in the business, exclusive of undivided profits earned during the taxable year. The allowancei for intangible as- sets include "actual cash value of patents and copyrights paid in for stocks or shares at the time of pay- ment, • • • good will, trademarks, brands, franchises • • • if for bona fide payments, not to exceed. the cash value." It stipulates that such intangible assets exchanged for securities be- fore March 3, 1917, not exceeding 20 per cent of the total, shall be in- cluded at a value not exceeding a fair cash value at the time of the purchase. Flat increases. A flat increase in reading matter of a quarter of a cent per pound un- til July 1, 1919, and one-half cent thereafter was provided. Advertis- ing matter exceeding 6 per cent of the total space would be taxed from 1-4 to 2 1-4 cents additional until July 1, 1919, and from 1-2 to 4 1-2 cents more until July 1, 1920; and from 3-4 cent to 6 3-4 cents to 1921, and from 1 cent to 9 cents there- after. The conferees levied 8 per cent in lieu of the senate rate of 5 and the house rate of 10 per cent on passenger transportation, estimated to raise from the compromise levy about 260,000.000 instead of $37,- 000,000 under2 the senate plan. The 3 per cent tax on freight transporta- tion was retained and the tax on ex- press transportation was increased that so 1 cent would be paid on each 20 cents paid instead of each 25 cents. The house 10 per cent tax on Pullman accommodations, cut to 5 per cent by the senate, was re- stored and is estimated to raise $5,000,000. An additional tax of 1-8 cent per pound until July 1, 1919, and 1-4 cent thereafter on religious, agricultural. fraternal and similar publications was .adopted. Tile 1 -cent tax on letters, except- ing drop letters and postal cards, was stored to the conferees. It is esti- mated to raise about $70,000,000 and is effective 30 days after the pas- sage of the act. The senate pro- vision exempting from postage let- ters written by soldiers and sailors abroad was retained. Pay on Automobiles. In lieu of the house tax on sales of automobiles by manufacturers and the senate federal license tax on Owners the conferees adopted a 3 per cent tax on all motor vehicles, including trucks, payable by manu- facturers, producers and importers. Taxes of 3 per cent on manufac- thrers, sales of musical instruments and jewelry also were written in, with a tax of 1-4 cent a foot on motion picture films. On sporting goods, the revised bill levied 3 per cent on manufacturers' sales, instead of 5 per cent propos- ed by the house and 2 per cent by the senate. The 3 per cent levy also was adopted for cameras in lieu of the senate 2 per cent rate, and chewing gum manufacturers would be taxed 2 per cent of the gross sales, a reduction of 3 per cent from house rate. The senate 2 per cent manufactur_ ers' sales taxes on perfumes and patent medicines were retained. Bank Checks Escape. The senate one -cent stamp tax on bank checks was not restored but Its tax of one cent on parcel post packages costlifit - 25 cents or more was retained. Other stamp taxes, all made effective December 1, were retained and the house tax on in- demnity bond restored. - A new system of graduated inheri- tance taxes was written into the bill in lieu of the house plan and despite the senates' rejection of such taxes. The new rates on inheritances, with those of Americans in military serv- ice exempted, range from one-half of one per cent on 250,000 estates to 10 per cent on estates of 210,000,000 and more. The bulk of the increases of be- tween $250,000,000 and $300,000,000 made by the conferees in the senate bill was secured from the postage public utilities and manufacturing sales section, and the new inheri- tance taxes. No Delay on Enforcement. With but few exceptions the new taxes are effective with the passage of the act. Both Senator Simmons and Repre- sentative Kitchin, heading the sen- ate and house conferees, both ex- pressed satisfaction with the con- ference revisions, and they believe the compromise measure an Improve- ment over both the senate and house bills. The income tax section was ad- opted virtually as written by the senate. The new 2 per cent normal tax on incomes of more than $2000 for married persons and 21000 for single persons is in addition to the present law exempting incomes of less than $3000 for single persons and $4000 for married persons. Thus those between the new low ex- emptions will pay only the new 2 per cent tax, but single persons having an income of $3000 or more and married persons whose income is $4000 or more would pay the full four per cent normal tax. The senate income provision allow- ing an additional exemption of $200 for each dependent child to heads of families subject to the present law was setained. The exemption for children, however, does not apply to those subject to the new reduc- ed taxes with the 22000 and 21000 exemptions, respectively, for mar- ried and single persons. Increase on Whisky, Beer. Increased senate rates on whisky and beer were virtually retained and that on wines somewhat reduced. The tax on distilled spirits was made $2.10 a gallon when for bever- age use and $1 less for industrial purposes, estimated to raise $135,- 000,000. The amendment prohibiting importation of distilled spirits for beverage use was retained. Floor taxes to reach withdrawn liquors were approved. Beer was taxed $1.- 60 per barrel additional to raise $46,000,000, an Increase of 25 cents per barrel over the house rate. Present wine taxes were doubled. Taxes on nonalchoholic beverages were compromised. On prepared syrups and extracts the taxes gradu- ated from 5 to 20 cents instead ef from 3 to 12 cents a gallon were adopted. Grape juice and other soft drinks are taxed 1 cent per gallon, as provided by the senate in reducing the original 2 -cent rate of the house. Senate rates on cigars and cigar- ettes were retained, but those on snuff were Increased from 4 cents to 5 cents a pound. Stamp Taxes. Stamp taxes agreed upon were: Bonds of indebtedness, 5 cents on each $100. Indemnity and surety bonds, 50 cents. Parcel post packages, 1 cent for each 25 cents of the cost of tians- portatIon. Capital stock, original issues, 6 cents per $100; sales and transfers, 2 cents per $100. Sales and transfers, 2 cents per $100. Sales of produce on eitchange, 2 cents for each 2100 value in mer- chandise. Drafts, checks payable other than on sight or demand, promissory notes, except bank notes for circu- talon, and renewals, 2 cents for all sums below $100 and 2 cents for each additional $100 or fraction thereof : Conveyance papers, 60 cents be- tween $100 and 3500 and 50 cents for each additional $600. Custom house entries, from 25 cents to $1. Entry for withdrawal from bonded warehouses, 50 cents. Passenger vessel tickets for port other than those in the United States Canada and Mexico, between $10 Voting proxies, 10 cents. and $30, 21; between $30 and $60, $3, and above 260, $5. Power of attorney, 25 cents. Playing cards, decks of not more than 64 cards, an additional 5' cents on the present rates. Tax on Messages. House and senate provisions for tax of five cents each on telegraph and telephone and radio messages costing fifteen cents or more and designed to raise $7,000,000 were re- tained, but the house tax on gas. electric and telephone service was eliminated. Taxes on life insurance, eliminated from the house bill in the senate, were amended and reinserted, rais- ing about $5,000,000. Effective No- vember 1 the new taxes on new in- surance policies issued are eight cents per $100 or fraction thereof on life insurance and one cent per 21 on the premium charged on mar_ me, casualty, fire and inland insur- ances. Tax on Amusements. Amusement taxes agreed on pro- vide that all persons eittering places of amusement free, except employes and officials on duty and children under 12, would pay a tax rate of one cent on each ten cents of frac- tion thereof of the admission charge This tax also would apply to cabar- ets and similar performances where the cost of entertainment is includ- ed in other costs, such as service. Holders of annual box seats would pay ten per cent of the annual ren- tal. Nickel heaters and shows, rides and other outdoor amusements, with a maximum admission of 10 cents, and benefit entertainment and agri- cultural fairs were exempted. After November 1, 1917, m mbers of all clubs except certain frater- nal orders paying more than 12 an- ual dues would be subject to \a ten per cent tax. On excess profits the confe agreed upon a minimum deduct of 7 per cent and a maximum of 10 per cent instead of the six to ten per cent fixed by he senate. Other ex- emptions are $3000 for corporations and $6000 for individuals. Corpora- tions, partnerships and individuals having no capital stock would pay a flat rate of eight per cent of net profits in excess of $3000. Miscellaneous income tax amend- ments inserted by he senate were generally adopted. NEW AUTHORITY NOW FOR DRAFT BOARDS Method of Relieving Men Sent to Camps Who Deserve to Stay at Home. Washington.—A method of relieving hardships in cases where men who should have been exempted have been ordered to report for military service or have entered camps, has been prescribed by Provost Mar- shal General Crower. If a local or district board believes a man has been wrongly ordered to report for duty It may reopen the case on its own initiative and re yoke the former action. If the man has already entered the service he may be discharged only by order of the army adjutant general, who will act on recommendations of local or district boards. Another ruling provides that thou- sands of aliens who registered for the draft June 5, -and who since that date have declared their intentions of be- coming citizens, are now subject to draft. Arrested at Spokane. Following a secret indictment re- turned by the federal grand jury in Chicago several days ago charging criminal conspiracy, James Rowan, William Moran and Don Sheridan, prominent in Industrial Workers of the World activities in the north- west, were placed under arrest at Spokane Saturday. LIBERTY BOND ISSUE AGAIN BEFORE US OFFICIALS OF THE TREASURY SET MINIMUM OF $210,000,000. THIS DISTRICT TO RAISE THAT Of $3,000,000,000 Second Issue 7% From Far West—Appropriation Based on Banking Resources and Ploperty Value. Washington. — Treasury officials have announced the apportionment of the second Liberty bond issue of- fered Monday morning among the federal reserve districts of the try. Virtually two-thirds of the loan is expected to be raised by the New York, Boston, Cleveland and Chicago districts. Apportionments indicate only what each district is expected to do, and may be entirely upset, as in the case of the first Liherty loan, by the actual subscriptions. In making the appor- tionments officials used two bases of subscriptions, the minimum of $3,000,- 000,000 and an "expected amount" of 25,000,000,000. Apparently, in offering the second issue, officials hope to realize a 26.- 000,000,000 response. Our Reserve District Here is the apportionment by the federal reserve district of San Fran- cisco, as announced by the treasury department: Minimum $210,000,000; Expected amount $350,000,000. On Percentage Basis. In each case, the announcement reads, "the amount has been com- puted on the percentage basis, and while the banking resources of each district—that is, the total resources and trust companies—have been glv- of the national banks, state banks en large consideration, other factors have been taken into account, such as the income tax collected from each district, the assessed value of property therein, the subscriptions re- ceived from each district to the first Liberty * loan, and the amount of bonds allotted on each subscription, the capital available for bond in- vestment in each district, and its po- pulation." Apportionment Bassi Varies. The basis of apportionment thus varies materially from that used in the first Liberty loan, when the bank- ing resources of each federal reserve district were the sole basis of calcula- tion. Apportionment by states, easy of computation in the first issue, can not be determined except by trea- sury experts in the second offering. It is likely that such apportionments will be announced shortly. Governors of the federal reserve banks have been notified by Secreta- ry McAdoo of the apportionments. The sums stated in the "amount ex- pected" column are designated as "the amount which each district should subscribe in order to secure the result imperatively demanded for the defense and security of the na- tion." $6000 Free of Tax. Secretary McAdoo, explaining the provision of the bond bill governing exemption of Liberty loan bonds of the second issue from surtax, an- nounced that, regardless of the amount of bonds purchased by a sin- gle individual or corpOration, interest on the first 25000 worth would be exempted from all taxation. Where purchases exceed $5000 worth of bonds interest on the excess will be subject to surtax. UNCLE SAM GETS METHOD TO BOOST GASOLINE OUTPUT. San Francisco.—The United States government was offered the free use of a process, discovered by Frederic A. Kormann, San Francisco chemist. which, he said, would increase the output of the country's gasoline by 12 -fold. The government has ac- cepted his offer and has authorized the construction of a factory at which the process will be utilised. Details of the process were not divulged, but the process makes use of crude oil products now wasted so far as gasoline productions is con- cerned. No Bribery Made. Washington.—The state depart- ment sent to the house a statement exonerating congressmen from the charge of having received German money. It declared that the depart- ment hasn't evidence indicating that Bernstorff gave congressmen money.
