"THE 'RICH MAN'S WAR'
A HATEFUL CALUMNY"
American Business Men Ready to
Make Sacrifices With
out Stint.
TAXES HERE AND ABROAD.
American Taxation the Most Demo
cratic in the World.
By OTTO H. KAHN.
Nothing is plainer timn that bastnesi
and business men hurt everything te
gain by preserving the conditions which
existed during the two nnd n half enrs
prior to April, 1017, under which mnn.v
of them made very lnrpe profits by fur
nlshing supplies, provisions nnd finnn
cial aid to the allied nations. Tne
were llpht. and this country wax iap
Idly becoming the great economic res
ervoir of the world.
Nothing Is plainer than that any sane
business mnn In this country mint have
foreseen that, If America entered tht
war, these profits would be Immense!
reduced and ome of them cut off en
luirnncn nnr envprnment WOUid
m it, ..... -
tep In and nke charge; that it would
cut prices right and left, as, In fact, It
has done ; that enormous burdens ol
taxation woulrt have to be Imposed, the
bulk of which would naturally be borne
by the well-to-do; In short, that the un
precedented golden flow Into the coffer;
of business was bound to stop with our
Joining the war, or, at any rate, to be
much diminished.
But It is said the big financiers ol
New York were afraid that the money
loaned by them to the allied nations
might be lost If these nations were de
feated, and therefore they maneuvered
to get America into the war In order to
save their Investments.
Proof That the Charge Is Absurd.
A moment's reflection will show the
utter absurdity of that charge. Iet us
assume, for argument's sake, that ht
allies had been defeated. Let us make
the wildly improbable assumption that
they had defaulted for the time beiny
upon these foreign debts, the greatei
part of which, by the way, Is secured
by the deposits of collateral In the
shape of American railroad bonds and
stocks and of bonrts of neutral coun
tries, aggregating more than sufficient
In America Incomes of married met.
up to gt,000 are not subject to any fed
eral Income tax at all.
In Knclnml th lncnnir tnx la:
4H per cnt. on 1.00
t i.r.oo
7 1. 000
(These are the rates if the income Is
derived from salaries or wages: the
ore still higher if the Income is derived
from rents or Investments.)
The Knglish scale of taxation on In
comes of, say, 18,000, $.ooo. $10,000
and $18,000 respectively averages as
follows as compared to the American
rates for married men :
Income tax In In
rate on KiiRlnnd. America
13 .000 14 per rent. 1-3 of 1 p. o.
5.000 16 per cent. I've.
10,000 20 per cent. IH p. o.
16.000 25 per cent. b p. o.
(If we add the so called "occupa
tional" tnx our total taxation on In
conies of $10,000 is per cent, and on
Incomes of $18,000 t per cent.)
In other words, our income taxation
la more democratic than that of any
other country in that the largest in
comes are t.ixcd much more heavily
and the small and moderate incomes
much more lightly than anywhere else
and incomes up to $2,000 for man .d
men not taxed at all.
(3.) It Is true, on the other hand,
that on very large incomes--as distin
guished from the largest incomes -our
income tnx is somewhat lower than the
English tnx, but the difference by which
our tnx is lower than the English tnx
Is Incomparably more pronounced in
the ense of small and moderate incomes
than of laYge Incomes.
The "Excess Profits" Tax Here and
Abroad.
Moreover, If we add to cur Income
tax our so called "excess profit tax."
which Is merely an additional income
tax on earnings derived from business,
we shall find that the total tax to which
rich men are subject Is in the great ma
jority of enses heavier here than in
England or nnywhere else.
(4.) It Is likewise true that the Eng
lish wnr excess profit tnx is SO per cent.
(less various offsets nnd allowances),
I whilst our so culled excess profit tax
ranges from i!0 per cent, to 00 per
cent.
Hut It Is entirely misleading to base
a conclusion ns to the relative henvi
ness of the American nnd British tax
merely on n Comparison of the rates
because the English tax is assessed on
a wholly different basis from the Amer
Iran tax.
The American excess profit law (so
called) taxes all profits derived from
business over and above a certain
moderate percentage, regardless of
whether or not such profits are the
result of wnr conditions. The Ameri
can tnx is a general tax on income de
rived from business In addition to
T TNI VOTKIW OF THE
si vi i. of HflBRAfm
Subject to the Hrtlon of the voters
who may sitn (he necessary petition
required hy Inw. and to the further
action of the voters in casting the nec
essary ballots to secure my nomina
torn at the nonpartisan primary elec
tion to be held in AukusI, 1918. I
hereby announce my expectation to he
come a candidate for Judge of the
Supreme Court of the state of Nebras
kn at the next November election. I
seek a second term, am in excellent
health and will see many of you dur
um the summer and fall. When I
came to the state I stopped a short
time In Omaha, later settling at Lin
coln and subsequently removing to
Kcatnoy whore I was twice elected
as district J Q (tte ami served a little
more htan eight ars. nnd where I
live at the Mine of m election as
Judge of the Supreme Court.
PtMCII C . I lamer
EOK SALE To highest bidder, barn
" 2 x H t! Easily moved, roof burned off
.lust south Central school. Beat bids
to Mrs Julia Itarkhurst "04 Yellow
stone phone 719 91 40-It 1 1 7
Wynne
Sealed bids will be received by the
City of Alliance Nebraska up to S 04
p m April 9th 1918 for the erection
of a oncrete stai k for the City Eight
and Water plant capable of tnklnu
ears ar from $0$ It '" horse power
boilers, Plans and specifications are
1 In the hands of J. E. Hughes Snpt. of
Water and Light lept. City Hall.
T IV Kolfson, City clerk
(Seal)
NOTICE
St ab d bids w ill he received by the
City of Alliance. Nebraska up to
I oo p sj prll 9th 19IH. for the dig
ging of a it! Inch well, approximately
100 fe : deep Plans and specifica
tions are now In hands of J. E.
Hughes. Supt, of Water and Eight
!ept City Hall.
T. J. Rolfson city clerk
(Heal)
Meaning of "Purlm
The word "purlin," the name of the
grejll annual festival of the .lews,
BMSttS "lots." This feast commemo
rates the preservation of the Jews In
Persia from the dmsmcts with which
the were threatened by Hainan (Ra
ther f). They gave the nnme of I'n
rlm or "lots" to commemorate the fes
tival because he bad thrown lots to
ascertain whut day woulrt be auspi
cious for the massacre.
in value to cover these debts. Let us
assume that the entire amount of al
lied bonds placed in America had been
held by rich men In New York nnd the
east Instead of being distributed, ns It
is, throughout the country.
Is it not perfectly manifest thnt a
single year's Americnn wnr taxation ar.c
reduction of profits would tnke out ot
the pockets of such assumed holders a
vastly greater sum than any possible
loss they could have suffered by a de
fault on their allied bonds, not to men
tion the heavy taxation which is bound
to follow the war for years to come and
the shrinkage of fortunes through the
decline of all American securities ir
consequence of our entrance into th
war?
Not only is the "rich mnn's war" nx
absurd myth; the charge is a hutefu
calumny.
Business men, great or small, are Qi
different from other Americans, ar.t
we reject the thought that any Ameri
can, rich or poor, would lie capable ol
the hideous and dastardly plot t
bring upon his country the sorrows
and sufferings of war in order to en
rich himself. Business men are DOIUM
to be exceedingly heavy financial losers
hrouirh America's entrance into the
war. Every element of self -Interest
should hnve caused them to use thcii
utmost efforts to preserve America's
neutrality, from which they drew so
much profit doling the two and a half
years before April, 1917. Every con
Blderution of personal advantage com
manded men of uffairs to stand wltfc
and support the agitation of the "peace-at-any-prlce"
party. They spurned
guch ignoble reasoning; they rejected
that affiliation ; they stood for wnr
when It was no longer tosslhle, with
aufetv and honor, to maintain peace
be'-aune they are patriotic citizens
first and business men afterwards.
Our Income Tax and Taxes Abroad.
(1.) The largest incomes ure taxed
far more heavily here than anywhere
else in the world.
The maximum rate of Income taxa
tion here is 07 per cent. In England It
Is 42'Ji per cent. Ours Is therefore 00
per cent, higher than England's, and
the rate In England is the highest pre
vailing anywhere in Europe. And la
addition to the federal tax we must
bear in mlud our state and municipal
taxes.
(2.) Moderate and small incomes, on
the other hand, are subject to a far
mailer rate of taxation here than la
Englund.
the regular Income tax. The Eng
lish tax applies only to excess war
profits that is, only to the sum by
which profits In the war years exceed
the profits in the three years preceding
the war, which In England were years
of great prosperity. In other words,
the English tax is nominally higher
than ours, but it applies only to war
profits. The normal profits of business
1. e the profits which business used
to make in peace time are exempted
in England. There, only the excess over
peace profits its taxed. Our tax, on
the contrary, applies to all profits over
and above a very moderate rate on the
money invested in business
We Tax Normal Profits, They Tax Onl
War Profits.
In short, our lawmakers have de
creed that normal business profits are
taxed here much more heavily than in
England, while direct war profits art
taxed less heavily.
You will agree with me In question
ing both the logic ami the Justice of
that method. It would seem that it
would la- both fairer and wiser and
more In accord with public sentiment
if the tax on business in general were
decreased end, on the other band, an
increased tax were imposed on spe
cific war profits.
(5.) Our federal inheritance tax is
far higher than it is in l-.ngland or any
where else. The maximum rale here
on direct descendants is 27' per cent
as against SO per cent, in England. In
addition to that, we have state in
heritance taxes which do not exist in
England.
(6.) Of her total actual war expen
ditures (exclusive Of loans to her al
lies and Interest on war loans) Eng
land has raised less than 15 per cent.
by taxation (France and Germany faff
less), while America is about to raise
by taxation approximately 28 per cent.
of her total war requirements (exclu
sive of loans to the allied nations and
of the amount to be invested In mer
cantile ships, which, being a produc
tive Investment, cannot properly be
classed among war expenditures).
We men of business are ready and
willing to be taxed in this emergency
to the very limit of our ability and to
make contributions to war relief work
and other good causes without stint.
The fact Is that, generally speaking,
capital engaged In business is now
being taxed In America more heavily
than anywhere else In the world. Wo
are not complaining nbout this; v.e do
not say that It may not become neces
sary to Impose still further taxes; we
are not whimpering and squealing and
agitating, but we do want tin people
to know what are the preseni facta,
and we ask them not to give heed to
the demagogue who would mul'e them
believe that we are tamping our share
of the common burden
tM"xwMy i.wur "sjawn
ii? ifltiiThi iiliiffil iifTThT imnTs ifliiiih
Swift & Company's 1918 Year Book
shows that Swift & Company sells the meat from a steer
for less money than the live steer cost!
Proceeds from the sale of the hide, fat, and other by-products
covered all expense of dressing, refrigeration, freight, selling
expense and the profit of $1.29 per steer as shown by Swift &
Company's 1917 figures as follows:
Average price paid for live cattle per steer $84.45
Average price received for meat . . 68.97
Average price received for by-products 24.09
Total received 93.06
8.61
1.29-
1
This leaves for expenses and profit
Of which the profit per steer was
1
There are many other interesting and instructive
facts and figures in the Year Book.
We want to send our 1918 Year Book, to anyone, anywhere free
for the asking. Address Swift & Company, Union Stock Yards, Chicago.
Swift & Company, U. S. A.
SPECIAL SPRING HEREFORD AUCTION
The Nebraska
Hereford Breeders
Association
At Bradstreet Horse Barns A rl I C 1 Q 1 Q
GRAND ISLAND, NEBR. rVpill J, IIO
7 Head of Selected Pure Hied Herefords ;it Publie Auction from eighteen of the leading Hereford Cattle Breeders in Ne
braska. Every Animal inspected and Accepted Before Entered
60-Bulls-60
2 7 -Cows and Heifers-27
This sale will be featured by some especially good herd prospects. If you are in need of a Herd Hull, Range Bull or Farm
Hull you will find than here. You will find the kind you want and tht breeding in both the hulls ana females, sired by nicfa
hulls as
Colonel Mischief
Monarch of Shadeland
Donald Dale
( !omrade 2nd.
Beau Victor
Parsifal Glimmer
Maple's Lad 42nd
Beau Wilton by Beau Mischief
Fast Freight
Sensation
Polled Pride
Beau Shadeland 31st.
Dan, by Astor
Perfection
Basil Prince, grandson of Beau Mischief
Beau Mischief 13th.
Beau Mischief 48th.
Prince ps I Am
Beau Andrew 4th
Columbus Lad 9th.
Monarch Wilton
Gainful, trrandson of Columbus
Donald Dim by Ord Donald
Grand by Fast Freight, and others
Beau Mischief 7th.
List of Consignors are:
Henry Bichel, Litchfield, Nebr.
Fritz Bichel, Loup City, Nebr.
(i. G. Clements & Sons, Ord Nebr.
John Griffith, Maxwell, Nebr.
A. 0. Pearson, Genoa, Nebr.
G. E. Stryker, Rising City, Nebr.
S. T. Battles, Sr., Genoa, Nebr.
C. W. Noll & Son, Ord, Nebr.
G. H. Paus, Hay Springs, Nebr.
R. G. George, Hampton, Nebr.
Henry Kuhlman, Jr., Chester Nebr.
Fred Lind, Clarks, Nebr.
Write at Once for Catalogue
H B. Drake, Gibbon, Nebr
0. B. Benger, Callaway, Nebr.
Radford & Sons, Newark, Nebr.
M. H. Kern & Son, North Bend Nebr.
H. & H Kerr, Brady, Nebr.
C. B. BENGER, Sales Mgr.
Callaway, Nebr. Magness Bros. Auctioneers