THE OMAHA SUNDAY BEE: AUGUST 18. 1918.
11 A
EIGHT BILLION
TO BE RAISED
BY NEW BILL
Tea and Coffee Taxes Will Be
Included If Required to
Obtain Total Asked
.' V ' by Governrnent.
By 'Associated Press.
Washington, Aug. l.lhe new
revenbe bill will raise a total of $8,
000,000,000 for the expenses' of the
government ih the present fiscal year,
unairman Aftchiri of the noose ways
arid Tneanfi' committee said when th
w committee adjourned. It is probable
Chairman KitChin said, that the bill
will be ihtroducednextvweek and
taken up by the house a week from
Monday. . .'
' Changes in the schedules not as yet
definitely fixed may lower the total
aria" it waj said that in that event the
comlittee mty resort to a customs tax
and a floor taxjon tea, coffee and sim
ilar products.
Changing conditions also may af-
feet the amount of revenue to be
obtained. The committee is watching
the outcome ot the effort to pass
national wartime prohibition measure
wmcn ine senate, is to laxe up au
gust 24, , If a.. prohibition measure
enacted,, revenues to be obtained un
der the bill 'will Be decreased con
iderablyy.'
' -, Liquor, Taxes Increased.
. The,, new-, tax, on liquors is under
tood ; to provide substantial in
Crease on whisky and, other liquors
and soft drinks,, a total revenue of
$1,000,000,000 or , more,, The liquor
tax j-atei . are beinrf withheld from
publication to guard against with
drawals. of whisky from, bond. The
committee finally- approved the to
baeco schedule pnehartged from rates
Heretofore innouncoa.
Invthe.-lO.per cent tax of articles
deemed luxuries above a certain
crict it made ih tax apply to wo
- mew's waists in excess oi $15, iaatead
01 510 as previously agreed to. and
,, to wohien'g , hati at $JtS instead of
$25. Motor boats and canoes were
idded'to fhe'ltf per cent tax onyachts
0( pleasure, boats, but exempted mo
tor boats and canoes costing $20; or
less, the exemption being to protect
homeBmlt traits ; - r
4 .... u T T
rCJbiisi'def'aoTe interest' nas been man
Rested in the normal tax on personal
incomes ana l"o corainuicc an
ndunced the text of the, schedule as
follows - ,
"Normal taxes: " Section 210
Tfiat there shall be levied, collected
and oaid for each taxable year upon
the net income of everyindjvidual a
normal tax as follows: 'f :
"(A) Jn the"'case .of a citrzen; or
resident of the United- States 10 per
cehrbf theamount ofthe net income
Ln; excess of the credits' provided in
7'.' ii. ' Tj.'jt
secupn io; provioeu taai upon inc
$rfejt $4,000 of this amount the, rate
snail oe s per centum.;,.-
''";9)rrW .tjie? . case a non-residents
alien 10 per cnt of the amount
off the net income in excess of the
credits provided j.p section 216.. .
' liT:. ' CrecHu Allowed
'Section -216 as agreed to reads
, "Credits allowed: For purposes of
normal tax omy, there shall be al
lowed the following credits:
"(A) The amount received as divi
dends from a corporation which is
taxable under the corporation income
tax upon its net income.
(B) Amount received as interest
upn residents of the United, States,
any state, territory or political sub-
" division,, or the District of Columbia.
"(C) In the case of a single per
son, a personal exemption of$l,000
or in the case ot the head of a fam
ily, or married person living with
husband or wife,- a personal exemp
tion of $2,000. A 'husband and wife
living together shall receive but one
personal exemption of $2,000 against
their aggregate net income and in
ease they make separate returns the
personal exemption -of $2,000 may be
taken by, either or divided between
them.
"(D) Two hundred dollars for
taeh person (other than husband and
wife) dependent on and receiving his
cWef support from the taxpayer if
inch dependent---person is under 18
years of age, r;is fncapable of self
support, because mentally or- phy si
tally defective."
Agree to Differential.
iThe committee ' has agreed by a
very close oti 'to a differential of
3per cent against unearned incomes
and has sent back to the treasury
the latter's draft for this purpose for
redrafting with the probability it may
be 'dropped, on reconsideration. If
the differential stays in the bill the
present 5 per cent normal tax on in
comes under $4,000 annually might
, be made 6 per cent 'on unearned in
comes and 4 pen cent on earned in
comes and the normal tax of 10 per
cent on incomes from $4,000 upward
might be made 13 per. cent on un
earned and 9 per cent, or the present
10 per cent, on unearned incomes, a
committee member explained today.
, Chairman Kitchin tonight explained
that the committee ,had referred its
decision i favor of an excess profits
tax of 40 to. 60 per cent after $3,000
exemption and 8 per cent reduction to
the treasury for its approval. He I
said the committee also had commu
nicated to the treasury its action in
dividing business into three classes for
pre-war earnings deduction. ,
v The committee has adopted a pro
fusion tha in no event will the ex
cess profits tax of corporations hav
ing less than $50,000 capitalization ex
ceed 40 per cent of its net incom.
An effort will be made next week to
apply he same provision to the war
profit! tax.
Famous Air Fighters Will
Fly Over Omaha August 30
T"
A brigadier-general at 31, Gen.
Charles F. Lee, C. M. G-, R. A. F..
head of the British aviation mission
to the United States, will fly over
Omaha August 30 or 31, at the head
of a squadron of British flyers.
One of the youngest general officers
in the British army, General Lee be
gan flying in 1912 and was three times
mentioned in dispatches from the Brit
ish war front, besides winning the
Order of St. Michael and St George
Ha has three sisters now doing war
work in France and since December,
1915, he has been detailed to the
training staff of the British air flVet.
The rare spectacle of a one-amed
pilot will be witnessed by Omahans
during the visit of the British and
American airmen to this city. Capt
C D, Hunter, axCanadian, who was
shot down by Baron Richthofen, the
late famous German air pilot, had
his left arm amputated in a German
hospital. After passing nine months
in a German prison camp he was ex
changed in January of this year,
The whole British and American
party will -be commanded by Major
Claude K. Rhinehardt of the Ameri
can air service. Although only 32
years old, Major Rhinehardt has al
ready aeen 12 years service in the 'eg
ular army, part of it in the Philippines
and part in Mexico, i He has already
commanded several flying fields in
the northwest and is now command
ing officer of the F'iit Provisional
wing at Mineola, N. In the 18
months that he has been flying ha has
to his credit almost 1,000 hours in
the air. He has specialized in cross
country flying and has made many
flights between New York and Wash
ington.
The American fleet will consist of
about eight airplanes and will arrive
in Omaha from Kansas Citv afrer
having made inter-city trips between
various cities in the upper Mississippi
ri.v - xv -f
valley. During their stay in Omaha
the flyers will give morning and after
noon performances of fancy stunts
and actual war maneuvers and bat
tle formations over the downtown
streets.
U S. FORCES SENT
ABROAD NUMBER
1.45OJ00 MEN
Transportation Facilities In
sure Getting 80 Divisions
Overseas by June 1, Gen.
March Says.
By Associated Press.
Washington, Aug. 17. Of more
than 3,000,000 -men now under arras,
the American, army has sent nearly
one-half, or more than 1,450,000 over
seas for service against the enemy in
France, Italy and Siberia.
These figures were given today by
General March in his Saturday, talks
with newspaper men and members of
the senate military committee. ' The
senators were told that some trans
ports. are making the trip to Europe
and back in 19 days, and that the
average has been reduced to 28 davs
which, witfy additional , shipping,, he
coming available, makes the great job
of gettinar 80 divisions of Ampriran
troops to France by June 30, 1919, cer
tain of success.
The chief of staff paid only brief
attention to tne progress ot the tight
ing in, r ranee, tie spoke ot the battli
as "the German retreat" and indi
cated further retirement was expected
Figures Cover All Areas of Action.
Jixplaining his announcement as to
embarkation, General March said:
When I-give figures, hereafter
POINCARE TAKES
PART IN MIMIC
WAR ON U-BOAT
Chase Would Have Ended In
Disaster for Submarine if
It Had Been a German
! Vessel.
French War Cross With Palm .
: Awarded Floyd -Gibbons
Chicago, Aug. 17. -Floyd Gibbons,
a "special correspondent' of the" Chi
cago Tribune in France, has been
awarded the Croix dp Guerre with the
palm by the French war ministry, ac
cording to a special cablegram frorri
Paris to the Tribune. General Pe
tain's citation states that Gibbons was
eeriously wounded June 5 while going
to, the aid of a wounded American of
ficer, "thus giving proof of the finest
devotion."
Mr. Gibbons is the first American
korrespopdenv to get the French war
i for a' specific act' of braverj
of
troops embarked from the United
States the totals will embrace the
troops in Siberiain Italy, France and
Russia proper. The figures will mean
the .entire American expeditionary
torce in all parts ot the world. We
have now embarked on all the exoe
ditions more than 1.450.000 men.
the American troops in France are
beginning to receive official French
commendations of various sorts, and
here is one that came (his morning
This refers to the second artillerv
brigade which was with the second
division in the fighting around Cha
teau Ihierry. After the infantry was
withdrawn our held artillery staved
there and helped the French at that
point, lhis commendation is from
the French commander of the division
to which, it was attached. It is in the
form of an official order and the trans
lation is something like this:
General Bowley Thanked.
'"On the eve of the relief of the
second artillery brigade of the second
United States infantrv division from
the itth (trench infantrv) division
the general commanding this infantry
division takes the opportunity to ex
press to tne pneaae commanaer. uen
eral Bowley. to all his officers, non
commissioned officers and soldiers, his
thanks tor the services rendered their
French comrades and his admiration
for the splendid American bravery,
'"After having vigorously fought
with the second United States infantry
division and with the 58th (French)
infantry division the Second1 American
artillery brigade come to show, dur
ing two days of severe fighting at the
siue oi tne iztn miantry envision, tne
finest qualities of energy, endurance
ana devotion
" 'The fortunes of war separate us
from these brave and loyal fighting
comrades I trust that the fortunes of
war will .reunite us again upon the
field of battle.
" 'The 12th French Infantrv division
will fairMully treasure the memory of
tne second artillery brigade ot the
Second United States infantry division.'"
Henry Ford Offers to Build
Tractor Plants jn Mexico
Jjetroit, Aug. I. rians tor tne
erection of several large tractor plants
in Mexico wre made today by Henry
Ford, the automobile manufacturer.
Mr. Ford has notified the Mexican
government that he is prepared to
spend $1,000,000 on the first of several
such plants, and is awaiting only the
selection of an official site.
"We will sell virtually at cost and
if profits accumulate, we will put them
right back into the business," said Mr.
Ford. "Not a cent is to be taken out
of Mexico."
Should the business grow to such
proportions that it would be impos
sible, to absorb the profits, the Mexi
can government will be given control
of the plants, it was stated. 1
Pans, Aug. 17. -President Poin
care and Georges Leygues, minister
of marine, returned to Paris today
after a visit of two days at a French
port, where the inspected the Fran
co-American naval bases and were
enaDiea to obtain a hrst hand view
of the co-operation of the two navies
in combatting German submarines
Immediately after their arrival there
report was received- that an enemy
submarine had just been sunk by a
French patrol, while it was confirmed
at the same time that another sub
marine naa Deen destroyed Dy an
American patrol a few days before,
; President Pomcare made a minute
inspection of the various American
installations at the port, being espe
cially interested in the hydro-airplane
station.
While the two officials were at the
port a convoy was signaled coming ln
and the president embarked on a war
vessel and went out to observe the
arrangements made for the protection
of ships.
A drigible- balloon, hydro-airplanes
ana rapid destroyers co-operated per
fectly in preventing any submarine at
tack which might have been made,
The convoy came into the harbor
with each vessel keeping in perfect
line until the anchorage was reached
After this, President Poincare went
on board a destroyer and participated
in the chase of an allied submarine
somewhere below the surface. The
chase lasted for an hour and if the
submarine had been German, the pur
suit would have ended disastrously
tor it.
ine visit or tne omciais was ex
tended to the American depots, which
nave completely transformed the oort.
A report was handed the president
snowing tnat a convoy which re
cently arrived from America dis
cnargea cu.uuu tons ot materials m
ten hours, thanks to the efficiency of
tne American arrangements.
Admiral Wilson received President
Poincare on board a repair ship,
where a medallion bearing the inscrip
tion "Commemorating the union of
France and America" was presented
to the president. Later President
Poincare examined the new type of
American destroyer and reviewed
newly arrived American troops.
Carranza Takes Steps
to Prevent Threatened
Disputa With the U. S.
Washington, Aug. 17.-The threat
ened crisis in the relations of Mexico
with the entente allies and the United
Mates apparently has been averted
by a modification of the new Mexi
can oil tax decree by President Car
ranza. -
It .was learned todav that on
gust 12 Carranza, in effect, canceled
provisions ot the decree of July 31
under which undeveloped oil lands
might be .seized by the Mexican gov
ernment upon failure of their owners
to make declarations and submit to
what they regarded as excessive tax
ation.
The modification now made hardlv
win De wholly satisfactory but it
was saia today that it appears to
make concessions paving the way for
clearing up the situation between the
governments concerned.
Appeals to Hitchcock.
Washington. Aua. 17 An ,nnl
tor government aid to live stock
raisers in the west and southwest
reached senator Hitchcock of Ne
braska today in a letter from H, H.
Tomkin. jr., of the food -Hmi nistra-
GEO. S. COLLINS
Democratic CandidaU for
Justice of the Peace
Five Years Juttic of th Pe
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For U. S. Senator i
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Firmly Believes in Wilson's Administration and is for
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Women's Suffrage and Prohibition
'
Dear Sir: '
There never has been a time when big-thinking, straightforward and hardhitting
Americans were so absolutely essential in our public offices as right now. . j.
The Hon. Willis E. Reed, now serving his second term as Attorney Genel 'Gf the
State of Nebraska, is just such a man. ' , j--
, Mr. Reed is THE candidate for the nomination for United States Senafr from Ne
braska, and he is a man well worth keeping in mind on August 20th, when y4 mark your
preference for United States Senator on your ballot.
Mr. Reed is a man who, regardless of political affiliations, is an Ampcan first, last
and all the time; and not only will he co-operate with our President in wning this war,
but he is amply capable of meeting and efficiently handling the big probes which will
face America when the war is over. j
Our problems of both today and tomorrow require men of hones, men of vision,
men of practical capacity, and Mr. Reed meets all of these requiremeis.
Confident that you are back of President Wilson, we urge you too to the polls on
Primary Day and ask for a Democratic Primary Ballot and urge otheyto do the same.
Let us all work together for a man we can, regardless of our ptical party affilia
tions, feel confidence in at any time and at al 1 times.
Vote for Willis E. Reed for United States Senator at the Primries August 20th.
Yours vtf truly,
First V.-P. N.bra.k. Fmfr' Congress, Norfolk, Nab.
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Cashier Ai"" Stat Bank, Omaha, Nab
Cashier prity Stat Bank, Omaha, Nek-
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