THE ( IMAHA V ORNING BEE VOL. 53—NO. 157. «*■"« *» »»»■«<»— «uw» ■» «OMAHA, MONDAY V*R 17, 1923.* "!*!!••"& 'StT’iJ?'o “vSJiiT^SSi “:«!TS5l*S',»uTXJ5 *•>"*£ TWO CENTS ** °r^a(£te c5’,s,i'l:' ,,'e-- • . . — ^ C ■— ■ ■■' ■ ■ - 1 — ■ --"I.. ■ — ■ M—..—. ■■■■.■— .. ■'■■ ■" 1 .. • " 11 ■ 1 —— ' 1 1 ■ -1—^— ' ■■ V Proposed Tax Cut Is Outlined Secretary Mellon Forwards Definite Amendment to Rev enue Act to House Ways and Means Committee. Benefits Small Salaries Washington, Dec. 16.—Secretary Mellon has reduced to definite form his tax reduction proposals and for warded a complete redraft of the rev enue act to the house ways and means committee for use in consid eration of tax revision legislation to be begun Tuesday. The treasury secretary in a letter accompanying the redrafted measure njjgle public today at the treasury, •noted that the reduction program “appears to have met with a most fa vorable public reception" and advised Acting Chairman Green of the com mittee that treasury officials are pre pared to present at any time argu ments in support of the proposed re vision. In an analysis of the changes pro posed, Mr. Mellon placed first the 25 per cent reduction on incomes below $4,000 and the additional credit of 25 per cent to be granted on earned incomes, showing that in the case of earned incomes of $4,000 or less the reduction contemplated really amounts to about 44 per cent. Analysis of Proposed Changes. Mr, Mellon’s analysis of the changes proposed follows: “1. Karned Income, defined as wages, salaries and professional fees, is given a credit of 25 per cent of the amount of the tax attributable to the earned Income. “2. The normal tax on the first $4,000 of net Income is fixed at 3 per cent, and upon the remainder of the net income at S per cent. “3. The surtax rates begin at 1 per cent on net incomes from $10,000 to $12,000; an additional 1 per cent for each $2,000 of net Income up to $36, 000 then 1 per cent additional for the next $4,000 of net income up to $40,000: and then 1 per cent addi tional for each $6,000 of net Income up to a total of 26 per cent at $100, 000 and over. "4. Capital assets are defined as property held by the taxpayers for SgjM'fit or Investment for more than two years. Upon the sale of capital assets, the tax on the gain from the sale Is limited to 12% per cent of the gain, and the amount by which the tax Is reduced on account of such a loss Is limited to 12% per cent of the loss. Deductions from Income. "o. The taxpayer is permitted to take ns a deduction from his gross income in determining h4s taxable In come Interest on Indebtedness and losses of a nonbusiness character only to the extent that the sum of these two Items exceeds his wholly tax-exempt Interest. ”6. In community property states, where husband and wife have a Joint Interest in certain property of either acquired after marriage, the Income from this property Is taxed to the spouse having control of the prop erty. "7. The principle contained In the 1918 revenue act that liquidating divi dends constitute a sale of the stock instead of a distribution of earnings has been restored. This puts liquid ating dividends within the capital gain section of the act and recognizes the real effect of such dividends. “8. The section with reference to the reorganization of corporations has been rewritten to eliminate exist* ing uncertainties in the present act and to Include other usual forms of corporate reorganization In aid of business, surh as the splitting of one corporation into two or more corpor ^ ations. Check on Reorganizations. “9. Provisions have been Inserted to prevent the use of this reorganiza tion section to escape proper .taxa tion by increasing the basis for de preciation or depletion, or by In creasing the basis of gain or loss from the snle of assets transferred in connection with a reorganization, or by distributing as capital gain what are In effect dividends out of earnings. “10. The deduction for discovery depletion Is limited to 50 per cent of the net income from the property de pleted. •'ll. In the case of a trust, where the trustee has the discretion to dis tribute or not, the Income Is taxed to the beneficiary If distributed and to the trustee If not distributed. “12. Where the grantor of a trust reserves the right to chunge the trust In favor of himself, the Income of the trust Is taxed to the grantor. Penalty Provisions. “13. The penalty under section 220 which seeks to penalize corporate forms used to avoid Imposition of surtaxes on tho stockholders, Is now based on all the Income of the corpor ation which would be taxed In the hands of an Individual. “14. The application of the pres en law requiring an Inoopie for a fractional part of a year to t>e placed on an annual basis Is restrict ed to cases where a return Is mad* for a part of a year as th* rssult of the voluntary set of the tsxpnver lii making a change In his taxable rf.-m “15. A board of tax appeals la created to hear hII appeals from lb* Assessment of additional Income and estate taxes, which will alt locally In Fear of Being Consumed by Owls Turns Fur of Squirrels From Brown to White Eradication of Ground Pests Drives Hooters to Trees for Food and Bushy-Tail Creatures Become Prey as Gas Kills Snakes and Dogs. O’Neill, Neb., Dec. 1«.—The fur of the timber squirrels In a grove on the ranch of H. U. Hubbard, south of O’Neill, gradually is turning from a reddish cast to a pure white. Mr. Hubbard soon expects to have a tribe of pure white squirrels In his grove, all because Fred Rose, county agent, this summere undertook a campaign of prairie dog eradication in the southern part of Holt county. Fear is the explanation of the phenomenon, according to local scientists, who do not believe that a permanent strain of white squirrels will be established and who think that as soon as the cause is removed the little animal* gradually will re sume their natural colors. While prairie dogs make up the lgrger share of the population of prairie dog towns, it is well known that a considerable minority of the population is composed of little prairie owls, rattlesnakes and bull snakes. But these do not dwell to gether In the harmony that the na ture fakers love to write about. The Only way that a prairie dog, a snake and a prairie owl can occupy the same prairie dog burrow in peace and harmony is for the prairie dog and the owl to be inside the snake, or the dog and snake to be Inside the owl. Otherwise they are apt to quarrel and the prairie dog always is the loser. When the county agent start ed his campaign of prairie dog eradi cation near the Hubbard squirrel grove, the dogs and snakes, which sought the burrows when disturbed, rradily fell victim to the poisonous gases and grains used in the eradica tion, hut the owls flew away. Being meat eaters, with their source of food supply destroyed, the little owls turned their attention to the young squirrels in the nests In the grove. It didn't take long to exhaust the supply of youngsters but to catch an adult squirrel on a tree was an other proposition, and the owls soon learned that the only hope of capture of an old squirrel was to catch him on the ground. Since that time the owls have taken up their stations secreted behind the larger roots of the trees and it is a very agile squirrel indeed that can come aground for food and get bark safely to the protection of the upper branches of his home tree. Fright and worry over this hither to unencountered problem of sur vival have made nervous wrecks of Mr. Hubbard's squirrels and gradual ly is turning their coats to gray and white. the various judicial circuits through out the country. The cases of both the government and the taxpayer are presented before the board which acts impartially and the practice there is similar to that before the Interstate commerce commission. Upon decision in favor of the government, additional tax can be assessed by the commissioner of internal revenue and the taxpayer is left to his remedy In the courts for a recovery of the lax. If the decision is in favor of the tax payer, the commissioner may not as sess the tax but is left to his remedy in the courts in a suit to collect the additional tax. In a hearing in the courts, the findings of the hoard shall be taken as prima facie evidence of the facts contained therein. Special Taxes Repealed. "16. The administrative sections of the act have been rewritten with a view to clarifying their provisions, making the statutes of limitations consistent, relieving the necessity for I protest on the payment of taxes and lightening the penalties for minor failure* to comply with the 8ct. "17. The tax on telegrams, tele phones, leased wires and -radio is re pealed. "1*. The tax on admlealone is re pealed." Nebraska Lowest in Death Rate Battle Against Tuberculosis Being Gradaally Won; Col orado Rate Highest. Washington, Dec. 16.—The battle agalnat tuberculosis is being won gradually. Census bureau statistics made pub lic today show the number of deathe per 100.000 population In the registra tion area of the country, comprising 85 per cent of the total Inhabitants, declined from 150 In 1918 to 97.4 last year. There has been a decrease In the death rate every year since 1918. but the decline shown last year from the 1921 rate was the smallest In the period. The decline shown In 1919 was 24.4 per 100.000 In 1920; it was 11.4; in 1921 it was 14.8, hut in 1922 the decrease w-as only 2.4. There were 90,452 deaths from tu berculosis in the registration area last year as compared with 88,136 In 1921, and 93.170 in 1920. Although 12 state showed Increases Irk rales for 1912, in 22 states there were de creases. Indicating that the general trend is still downward. The highest rate was that of Color ado with 183.3, which was a decline of 1.6 per 100.000 from 1921. The lowest rate wae that of the adjoining state of Nebraska with 36.5. which was a decline of 0.5. The high rate for Colorado, census bureau officials explained, should not tie ascribed to unhealthfulness of climate, but rather to the fact that the climate attracts those afflicted with tuberculosis. Funeral Service* Held for Beatrice Fire Victim Beatrice, Neb.. Dec. ID.—Funeral aervlcea of Tommy Kni*. adopted aon of Mr. and Mr*. Walter KniK, who lost hia life aa a result of burns re ceived In a fire which partially de stroyed the house of William Eden In West Beatrice, were held fronv the Bergrmeyer funeral home this after noon. Burial was In Everifreen Dome cemetery. Mr. and Mrs. William Eden, their dauKhter. VlralnlH. and the former'* mother, who received painful burna at the anme time, are In a hospital here recovering from Injuries. Kearney Kiwanian* Elect. Kearney, Neb., f>ec. IS.—Thi Kl* wunlan* at their nnnual meeflnir. elect ed the following officers for the year: John O. Dowe, president; Joe Klllntf. vice president; Winter (tlllesple, Iicmh urer; John N. Dry den. truste* The selection of a secretary was laid over to a later meeting. 11. O Hostetler, M. K. I Inane W. H f’lapp, Hugh Brown, Tom f'«mtelln. Hick Hyatt, liny lleatoek and Huy Turner were mimed directors , Creel Heads Fi^ht on Censorship Body Hopes to Crush Existing ahd Proposed Caws— License Not Asked. New York, Dec. 16.—A new organi zation designed to crush the principle of censorship, to he known ns the Na tional Council to Protect the Freedom of Art. Literature and the Press, has been launched, it was announced to day by George Creel, the chairman. The council is a reorganization of "The Joint committee for the promo tion and protection of art and litera ture," formed a year ago to oppose censorship of all kinds. Membership at present is composed of the following: Authors league of America, Inc.. Actors’ Equity associa tion. Jnc., American Dramatist*. Na tional Publishers Association Inc., Cinema Camera club. Printing Trader union. American Federation of Mu sicians, Motion Picture Producers and Distributors of America, Inc., New York Employing Printers association. Guild of Free Igtnce Artists, Motion Picture Directors association and the Screen Writers guild. In outlining the policies of the council. Mr. Creel said: "It Is not only proposed censorship that will be fough.t. but the repeal of existing censorship laws will he urged. It Is the prinicple of censor ship itself that we hope to crush, for the censoring of any one form of expression carries a threat of cen sorship for every other form of ex pression. "Kven were censorship less than lawless—less an attack on the dear est rights of the citizens, less of a menace to enlightened public opinion —It stands condemned by reason of Its unfaJling stupidity and Inevitable futility. All experience proves that It does not and cannot accomplish Its avowed purposes, creating evils far worse than those It assumes to cor rect. It Is an attack upon liberty, doubly dangerous because It Is made In the name of morality. Farmer Drives Car Into Burlington Train Palmyra, Neb., Dec. 16.—Mike Call ahan. a farmer living near here and Douglas, sustained a badly cut face, when he ran his Ford car Into a Hur llngton baggage car. Mrs. Callahan, who was with him st the time of the accident, received two broken ribs and numerous body bruises. Mr. Calla han was going 20 miles an hour at the Urns- of the sccident. Fight on Cummins Continues Insurgents in Senate Will Cast First Vote Today for Howell—Couzens Next Choice. Demo May Be Named Washington, Dec. 16.—Republican insurgents went forward today with their plan to either force one of their compromise candidates into the posi tion of chairman of the senate inter state commerce committee or to throw their support to Senator Smith of South Carolina, a democrat. The day's developments brought no hint of a compromise in the deadlock which has resulted In the senate over the fight against Senator Cummins, republican, Iowa, for the chairman ship, and some of the Insurgents said tonight that unless last minute changes took place before balloting Is resumed tomorrow, the unusual situ ation will be brought about of a dem ocrat holding a powerful committee chairmanship In a republican con gress. Progressive* Claim Victory. Not all of the Insurgents have an nounced themselves as willing to sup port Senator Smith, but those who have say that they will have enough votes to elect him should the organ ization republicans refuse to vote for either Senator Howell, republican of Nebraska, or Couzens, republican of Michigan, who will be put forward. In order, as candidates. Both of these senators have been endorsed by Sen ator La Follette, Wisconsin, the In surgent leader, who also has announc ed that the election of Senator Smith would be a "clear cut victory for the progressives In the senate and In the country.” An outline of the insurgents' plan, which they say would be followed by considerable numbers of those against Senator Cummins. Is to have Senator Howell receive their vote on the first ballot; Senator Couzens on the second, and then to turn to Senator Smith. Those favoring this plan believe enough strength ran thus lie thrown to the South Carolina senator to as sure his election. Democrats Are Firm. ■Democratic leader* today remained firm In their reiteration that with the exception of Senator Bruce of Maryland, there had been no defec tion In their ranks and they expect to poll the full party strength for Senator Smith. With the committee row terminated temporarily at least, in the house, by the assignment of Representative Nel son of Wisconsin, (ui Insurgent, to the rules committee, the organization republicans ezpect to put through to morrow their committee slate*, which will allow the committees to begin framing legislation. One of the first considerations of the ways and means committee, of which Representative Oreen of Iowa will be chairman, will he to begin con sideration of tax legislation, including ths Mellon plan, which was placed formally before It today by Secretary Mellon. Discussion of this subject is expected to begin Tuesday. Another of the Wg committees which must begin quickly Is the appropriation* committee, on whose organization depends the work of get ting out of the way th$ annual supply bills. Other committee with exhaustive discussions and long sessions In pros pect Include the Immigration, com merce, merchant marine, agriculture and banking and currency. Swap Doesn’t Work. West 1’olnt, Dec. IS.—Rome time ago Will Cameron of near Nellgh traded a horse to Frank Reynolds for a phonograph. Recently the horse il|e» converted Into a alntement of fail there Is a hot primary fight ahead between him and A. N Mathers of Merlng, who already Is In the field. | Mathers, who was speaker of the buu house. Is a strong candidate, but so la McMullen, who only foiled by an eylueh of wrenching the republican nomination from Charles 11 Itandall at the Inst election Those who claim to know are about evenly divided in their opinion ns to who will make the sue essfiil race. It ts also said, h.v those who keep an ear to the ground, that Congress man Slonn will have filed for the senate before another week lias gone by Kied <1 Johnson of Hastings has already done so, and In (lie offing ts f. II tluatnfson. who Is restrained from acting by the uncertainty that hovers over the future action "f Men at'ii ,Non Is Deputy Monetary oi Department of Trade and Commerce K. C. Knudaon presents the bankers of the state with a happy Christmas present with the announcement that he will levy a special assessment to raise the i, tioranty fund 6600.000. However, I'.ie bankers with an assessment of 61.500,000 made last December and another of 61.104.(’00 levied In April will probably consider this one a mere fly bite and try to figure out why mure was not requested. Hank failures still are being re ported to the tanking department, but they are becoming more and more in frequent. and it is hoped that the happy time is close at hand when the extra assessment will lie a thing of the past and the one-twentieth of 1 per cent levy will suffice to pay the obligations of the guaranty fund. With the announcement of Georgs Marsh that he will be a candidate for re-election, there is now a republican seeking every ground office in the state house with the exception of one In the railway commission. Stand ing for re election are Marsh. Dan Swanson, and C. D. Robinson, state treasurer. After the secretary of slateshlp is J W. Mayer, and for the governor's office there is A. N. Mathers. Black Rites Are Held. Reetrire. Neb.. Dec. 16.—The body of Perry Black, former Beatrice resi dent who died at Norfolk, was brought here for burial, funeral services being held Sunday afternoon at 2 ,1b from the Scott Hannan chapel, conducted by Rev. J Franklin Hass. Burial was In Kvergreen Home cemetery, and the .Masons were in charge at the grave Mr. Black has leen in charge of the Singer Sewing Machine company of fices at Grand Island for years, locat ing there after he left Beatrice. Pastor Says Adam Was Not First Man Rev. Beebe Declare* Other Rare* Existed at Time of His Creation. "Adam was not the first man." said Rev. J. L. Reebe in his sermon yester day at Grace United Evangelical church at Thirty-sixth street and Camden avenue. "f>iher races already were In existence at the time of the creation of Adam. Bible students must know the plan of ages to be able to understand the Bible." he said. In his talk on the ‘‘Ages of the World." Rev. Mr. Beebe divided the past, present and future of the world's history Into eight ages. They were the age of the word, the creative sge. the antidlluvtan age. or the period preceding the flood; the postdiluvian selective age. the millennium and the age of ages Rev. Mr. Beebe took the position that puniahment of the wicked will be ended by the age of ages. "The Bible deals only with the plan of the ages," said Rev. Mr. Beebe. "When the age of ages comes to an end. ffod will have restored the whole world back to beauty and glory." Borah Denies He Will Run for President Washington, Dec. IS—Senator Bor ah of Idaho, “is not a candidate for the presidential nomination of any party." he said today in dlscusalng a prediction of Frank E Johnease at Boise. Ida., last night, that he would soon announce for president on the progressive ticket^ Diamond Clock Hose Rage in Paris Society If omen Pay as High as $1.(HX) for Single Pair— Silk Fabrics .4 gain in Favor—Slip-on Smock Strangest Revelation of Season. Hr I nltrrMl ft+rvtr*. Paris, I>ee. 16 Milady » Phrlstmss shirking Mila year \v111 tie of the shear eel silk with diamond clock. (lems. as ulhinrls of stinking*. me the lat est rage In Paris society, w here women hive tieen known to pay ns high as $1,000 for a single pair. ( A* s result of this mode skirla are becoming shorter for evening wear so that the twinkling ankles of dancer* may send rays of brilliance to the watcher*. The fad for silk Is one of the most remarkable features of the early win ter fashions After a more or tees total eeltpse for the last two years, silk fabrics of all kinds have leaped into an overwhelming favor, distanc ing crepe Irlcollcttes and other ma terials previously so popular Two American girls are reported to lie suffering from pneumonia at St Merit* following an attempt to live up to the new silken fad In the high and ratified atmosphere of the K.ngndtue mountains Thrie was a chorus of gasps of ifttn.nation front ttie youngei •porting set when the American beau Ilea went skiing garbed In fascinating Parisian si»ort suit*, more suited for the warm interior* of hotel* thsn for cold and lireeajr mountains The two fashion slaves are new re ported to be on the road to recovery but their devotion to the dictates of the styles nearly coat them their live* One of the strangest revelations of the season Is the new velvet sllp-on smock, resembling In shape the old time middy blouse, which smart wo men are now wearing Instead of over coats. This forms part of a novel three-plriw evening gmv n and robe, ooncording In color and general de sign. The principle la the same a* the threo-piei-e afternoon gowns which have been so popular since 19SI. When the wearer teaches the res taurant or theater ahe slips the smock off over her head generally causing the spectators to gasp at (he idea of ilia rotting hut underneath la disclosed vfter the meal or play, the addition a low deco!letIc sleeveless gown, of the smock transforms the gown In to a smart walking suit. Limitation PI aced on Acceptance Premier Poincare Points Out Passive Resistance Has Ceased in Making Reply. Is Firm on Reparations By Associated Press. Pari*. Dec. 16.—The French gov ernment has accepted with limitations the German proposals submitted by Herr Von Hoesch, charge d’affaires, concerning conversations Germany desires to enter Into with France, as well as Belgium, on the Ruhr and Rhineland questions. The reply, which was handed to Herr Von Hoesch this evening, takes the form generally expected, accord ing to an official summary Issued by the government. It Is pointed out that as the Ger man government has already mads known the Import of its proposals, there was no need to delay publica tion of the gist of the French reply. Passive resistance having appar ently ceased In the Ruhr. Premier Poincare declares that he is always ready to confer with an official rep resentative of the German govern ment on ail questions which this gov ernment wishes to bring before him: at the same time he remarks that he tegards such questions as of equal interest to the allies, and therefore the French government reserves the right of consulting with them, before replying. With respect to reparations, the French government, as it has fre quently declared, will never consent to take that question out of the hands of the commission Instituted by the treaty nor consider any regulations not strictly conforming with the treaty. The commission, adds M Poincare, will continue to function with all the powers conferred upon it and without its rights, so far as relates to Germany, being diminished in any possible manner. "The exchange of Ideas proposed by Germany, to which the French government does not refuse to lend Itself.” continues the reply, "cannot therefore have for Its object Infringe ment of the prerogatives of this com mission nor ran It be a preparatory step direct or Indirect for revision of the treaty.’’ Wheat Growers’ Relief Bill Will Be Drawn Washington. Dec. 16—Legislation aimed to aid wheat growers will be drawn up this week by representa tives from the northwestern states, who today heard a program present ed by President Coulter of North Da kota Agricultural college advocating a federal loan of 150.000.000 to farm ers which would permit them to pur chase livestock and diversify their farming. Repa-esentative Andeivon. republf can, Minnesota, will meet with rep resentatives from North Dakota, South Dakota and Montana to con sider the propoaal and plan a legis lative program. World Honeymoon r for Senator Pettigrew Sioux Fall#. S. D.. Dec. IS—Former Senator R. F. Pettigrew of South Da kota and Mr*. Pettigrew expect to leave about January' J5 for a four-^ month*' trip around the world. From New York the trip will lead through the Panama canal, to Ha waii. Japan. China and the Philip pine*. to Borneo. Java, Calcutta. Cey lon and Bombay, up the Red Sea Into Africa, down the Nile to Cairo. Jeru salem. Athena and other Mediter ranean point*. Senator Pettigrew wu TS year* of age laat July, and waa married only last summer. Ran nn Dancing. West Point. Dec. IS.—Teacher* who dance will he automatically dismissed following action of the board of edu cation. The hoard declared that ther* were too many diversion* that tend to detract from proper education. Teacher* keeping late hour* »r* not able to properly conduct their rlaesea the following day. Too much dancing and too little schooling Is the fear of the board Mitchell Is Rot in (I Over. Beatrice. NeK, Dec. IS.—Charles Mitchell of Wymore. who wa» arrested at Ottumwa, la,, charged with remov ing mortgaged property from the •late, wa* glxen hts preliminary hear ing l>efore Judge Maesmore and wa* bound over to the dtstrk-t court. He was released on IM>0 bond The Beat rice Motor company Is the complain | ant. The Weather I For !( h»ur« »n4*t T r nt ber It T>m»ver*»nro. I Htch»*t Kl; lojrrm SJ