The Omaha Daily Bee
VOL. 50 NO. 244.
rntt4 Sartud.Cltii Mtltrr Mty ?S, I9W. t
Omtht P. 0. Udw Act of Mirch 1. 1879.
OMAHA, TUESDAY, MARCH 29, 1921.
llv Mill (I vtir)
Inild. Ith fun.. Daily tail twiilay. 19: D.llt Only. IS: Sunday. M
THREE CENTS
Cutilda 4lh Zna. .r)
Dally ana Suitaty, lt. Dally Only. Sunday oaly, 15
A refill tine
Gift Bacon
Is Spoiled
Shipment of 600 Tons to Aus
tria Too Badly Decom
posed for Use Even
In Soap.
Intended For U. S. Army
ISuenos Aires, March 28. The bad
bacon which comprised a ,part of
the 5,000,000-peso gift of foodstuffs
and clothing from Argentina to Vi
enna, shipped on thej5leanicr Bahia
Blanca to Hamburg, originated in
the United State, it is asserted in
a dispatch to La 'acion from Ham
burg. The bacon totaled about 600 tons
and the correspondent quotes the
Shcnker company, which the Aus
trian government placed in charge
of the consignment of foodstuffs,
as saying there was evidence that
this bacon was originally intended
for the United States army and that
trade marks of North American firms
were distinctly perceptible, although
the decomposition was such it was
impossible to- read the lettering.
A representative of the firm, the
dispatch continues, declared the Ar
gentine government must have been
the victim of deception when it pur
chased the bacon, which was in such
a state of putreicdtiou that it would
not be possible, he said, to use it
even in the manufacture of soap, for
which purpose the Austrian govern
ment had directed that it be sold.
The Austrian consul general at
Hamburg has confirmed the reports
of the bad condition of the bacon,
according to the correspondent, who
adds that he himself personally in
vestigated the matter and found evi
dence of attempts to obliterate the
labels and dates, but that the mark
"New York" was easily distinguish
able. ' 1
The revelations concerning , the
bad condition of portions of the food
shipments are continuing the sensa
tion of the hour in Argentina. Thus
far the government officials have not
been quoted in any comment on the
subject, although it is understood
a rigid investigation is in progress.
Search Continued'
For Balloonists
Dirigible Will Take Air to
Make Thorough Hunt of
Countries.
Pensaeola, Fla., March 2S.-Xavl
authorities here today entered on
the fifth day of the search for trace
of the naval balloon ,which has been
missing since last Tuesday when it
took the air here with five passen
gers. Although still holding to the
belief that the five men have been
picked up by some tishirrg vessel,
officials planned to continue the
search unremittingly.
In arranging to send the dirigible
C-7 out for a thorough hunt today
over Dav and Holmes counties, nav
al officers were working on the
theory thai the balloon might have
carried far enough to reach land
there before descending if the men
unhooked the basket and climbed
int.i the rigging. . A steady shore
ward wind, they believe, would have
cwr-ed the baer clear 'of the gulf in
thet direction if the weight had been
reduced.
Wife Kills Husband '
With Cleaver as Finish
Of 1 7-Year Quarrel
C!i!ceso Tribune-Omaha Bee leaned Wire,
Chicago, March 28. For 17 years
Mrs: Dora Waterman and her hus
band had been quarreling. Hardly
a day in all that time, but there
had been a fight. She finally end-
it bv killine him with a small
tchen cleaver. Their sons, Jacob,
17, and Russel, 10. witnessed the kill
ing and say their mother had no
other course.
Waterman was a painter. He
drank freely and brought all his
grouches and'hangovers" home and
vented them upon his wife. She
had endured the hope of holding the
family together until her boys were
old enough to shif for themselves.
At midnight he came home and
started a fight with her that lasted
two hours. He was beating her and
threatening to kill her, when she ran
into the kitchen. The cleaver was at
hand and she seized it and struck
out wildly, splitting--his skull.
Man Sues to Recover Money
He Says He Paid for Rent
Columbus, Neb.. March 28. (Spe
cialsSeeking to recover $1,000,
which he alleges he paid last fall
as cash rent for a South Dakota
farm, William Assman has filed suit
in district court against John F.
Albers and V. J. Busch. The plain
tiff alleges the defendants represent
ed to him that they would become
owners of the farm m March this
year, and he contracted to rent it,
paying the entire rent in advance.
They failed to get title to' the land,
he claims, and have refused to re
turn the money to him.
Columbus Teacher Will
Head Schools at Bushnell
Columbus, Neb., March 28. (Spe
cial.) Walter E. Webb, instructor
general science and American
history in the Columbus High
school, will become superintendent
of schools at Bushnell, Neb., upon
expiration of his contract here at
the end of the present school yea,
IKe aalary is 52,000 a year.
Former French Premier
Comes to Meet Harding
Rene Viviani Arrives in Mew
York "On a Mission of
Courtesy" Goes to
Washiugton Today.
New York, March 28. Former
Premier Rene Viviani, envoy extra
ordinary of France to tliia country,
arrived today on the steamship Lor
raine and will go to Washington to
morrow. He expects to confer with
President Harding, to w hom he came
"on a mission of courtesy."
A small reception committee went
down the bay to meet the visitor and
brought him back to Battery Park,
where thousands had assembled.
As M. Viviani, accompanied by
Stephane Lauzanne, editor f thi
Paris newspaper Lc Matin, stepped
on to the pier motion picture photo
graphers surrounded them. M. Vivi
ani doffed his hat and smiled oblig
ingly. He declined to discuss the official
nature of his visit before having
talked with President Harding.
"I have come to the United
States," he said, "to pay to the pres
ident the respects of the government
una the nation of I-ranee. In salut
ing the first and great citizen of the
American .democracy, I salute also
the great and noble people for whom
France keeps her tender affection?
and eternal gratitude."
Plans had been made for Jules Jus
serand, French ambassador, to meet
M. Viviani but the ambassador was
missed by the conimitte sent to the
railroad station to meet him on hi-,
arrival from Washington.
M. Viviani will remain in Wash
ington until Friday, when he will
return here for a luncheon Satur
day. He will return to Washington
Sunday, where he will spend mirst of
his time until he- returns home.
Passports Not
Required hy U. S.
Repeal of War Laws Included
Travel Regulations Aliens
May Be Affected.
Copyright., 1921, Kins Features Syndicate.
Washington, March 28. Ameri
cans leaving or entering the United
States and outgoing aliens are no
longer required to have passports,
under the act repealing the war laws
approved March 3, though whether
congress in that act intentionally or
otherwise repealed the law requiring
passports of incoming aliens, is now
before the. Attorney general for de
termination. Although, not required under our
laws' to provide themselves with pass
ports Americans would find it pos
sible without them to enter but few
foreign countries, passports regu
lations being still in ettect abroad,
though France and England ; are
showing a disposition to lift the bars
imposed by the war. Passports are
gtill necessary therefore, except in
visiting countries which do not re
quire them.
If the attorney general decides that
the repeal act blots out passport con
trol as applied to arrivifig immi
grants, passports cannot be required
of incoming aliens until congress
passes a new law to meet the situa
tion. Nothing would then prevent a
rush of foreigners to this country.
The danger of the situation is mi
tigated, however, by a fact that a
sufficient number of would-be immi
grant? with properly visied passports
already are awaiting the transporta
tion to fill steamers arriving for some
time to come, and the only ones to
be affected would be aliens whose
passports showed irregularities, as in
the case of those now under 'con
sideration. Ehgli
i t i r
sn Labor rartv
Rejects Lenine Plan
South Port, England, March 28.
(By the Associated Press.)- The
independent labor party in confer
ence here rejected by an overwhelm
ing, majority a proposal to accept
Lenine's 21 conditions for affiliation
with the Third Internationale of
Moscow.
The minority report favored ac
ceptance and this element may secede
trom the party.
Ttie independent labor party in the
extreme wing of the labor party,
and the vote is interesting in connec
tion with Premier Lloyd George's
speech March 23, accusing the labor
party of-revolutionary proclivities.
Widow of Pullman Car
Inventor Dies on Coast I
Pasadena, Cal., March 28. Mrs.
Hattie Sanger Pullman, 79, widow
of George M. Pullman, inventor of
the Pullman car, died today at a
Pasadena hotel, where she had been
passing the winter, after a short i'.I
nesT. With Mrs. Pullman when death
came were lier son-in-law and
daughter, former governor and Mrs.
Frank O. Lowden of Illinois, and
their children. Mr. Lowden said the
body would be taken to Illinois for
burial.
Eastahrook Will Head
Combined Market Bureau
Washington. March 28. Prepaia
tory to combining on July 1 the
bureau of cropestimates and the
bureau of markets of the Department
of Agriculture, L. H. Eastabrook,
chief of the former bureu, will be
come associate cJuef of the markets
bureau April 1. He has been in the
bureau for 17 years.
Base Ball Gets First
Victim oPSeason Play
Blacksburg, Va., March 28. L. G.
Sumner of Norfolk, at the Virginia
Polytechnic institute, was almost in
stantly killed when a base ball bat
slipped from the hands of his friend,
Otis Forbes, and struck him above
the heart.. Forbes is prostrated
Jr sjRaaajtet.
j
Soviet Russia
To Appeal Again
For U. S. Trade
Rehuff Administered By State
Department Will Not
Prevent Further
Overtures. -
tty The Associated Tress.
Helsinglors; March 28. Regard
less of the rebuff -administered by
the State department at Washington
in its recent communication on the
subject, the Russian soviet govern
ment probably will continue its ef
forts for trade with America, Jaan
Antonovitch Bchrsin soviet minis
ter to Finland, told The Associated
Press.
"Other efforts undoubtedly will be
made," he said, "most likely through
American business concerns to which
we are ready to grant concessions,
while of course, soviet Russia is un
doubtedly ready to make overtures
at any time the American govern
ment sees fit to change its view
point toward us.
"But one thing is certain, despite
all newspaper reports to the con
trary. Russia, will not give up com
munism and revert to the principle
of private property. .
We now have for the first toe peace
In brier, our situation is tins:
with our neighbors and have things
well in hand at home. Our govern
ment is willing to become acap
italistic concern itself, in oraer to
maintain communism within its bor
ders. As a government it will deal
with foreign concerns, granting and
guaranteeing concessions, but the
results of these deals in produce
necessary for our people will con
tinue to" be distributed communisti
cally by our., government."'
M. Behrsin said that soviet Russia
had a certain amount of raw prod
ucts including wood, ready to offer
to America now, but that the prin
ciple in view in the trade ofer was
future concessions in Siberia and
elsewhere, the "minister pointing out
.that a vast territory in the Russian
domain was still undeveloped.
r
Clara Smith Hamon
Barred From Movies
New York, March 28. (Special
Telegram.) Following news from
Oklahoma that Clara Smith Hamon,
who was recently acquitted of the
charge of slaying Jake L. Hamon,
is to appear in films, energetic pro
tests were received by. the national
association from organizations of film
interests throughout the country.
These protest were coupled with the
request that the association, whose
membership represents 90 per cent
of picture production and distribu
tion in the United States, take some
effective action to prevent the mak
ing or showing of any film in which
Clara Smith Hamon would apoear.
William A. Brady, president of the
national association, has placed the
organization on record as "unaltera
bly opposed to the making of such a
film, and savs that if it should"be
made, the members of the associa-
tkn win do
11 with'in their power
to keep
shown.
the picture from being
Harding to Reappoint
Chiefs of Service and Bureaus
Washington, March 28 Secre
tary Weeks announced that Presi
dent Harding would appoint the fol
lowing chief of services and bu
reaus in the War department:
To be major generals: C. S.
Farnsworth. chief of infantry; C. T.
Menoher. air service; W. J: Snow,
field artillery; W, A. Holbrook, cav
alry; George O Squire, chief signal
officer; John L. Chamberlain, inspector-general.
To be brigadier generals. Herbert
M. Lord, chief of finance; Amos A.
Fries, chief of chemical warfare ser
ice. ,
All failed of confirmation during
the last congress.
Hearing on Stock Yards ...
Value Called for April 11
Washington, March 28. An agree
ment to take up April 11, testimony
as to the value of stock yards hold
ingof Armour &: Co., and Swift
& Co.. was reached n the. District
of Columbia supreme, court. The
packers have agreed to divest them
selves of stock yard ownership, but
the method and the value of prop
erty involved are incontroversy.
Police at
BJfeld
armed
Communists, There, Suc
ceeded in Disarming Local
Officers and Are Occupy
11" T Ml-
ing rutmc ouuuings.
Rioting In U. S. Area
Hy The Associated Tree.
Berlin. March 28. The rioting ac
tivities in the communist uprising in
central Germany are concentrating
now on Bittertield. where the ex
tremists have succeeded in disarming
the local police and occupying the
public buildings, -according to an of
ficial communique issued shortly be
fore noon today. During Sunday, the
Statements said, bandits looted the
bank and postoftice at Sangerhausen
and put the local telegraph office out
of commission.
A Halle dispatch today announced
that Sangerhausen, southwest of
Lisleben, had been occupied and put
under con'.rol by federal forces.
Through trains which nominally
traverse the Halle section are bein
rerouted, owing to the sabotaging of
the track and bridges by communists,
who are continuing to spread terror
as thev proceed westward and north
ward from Halle, with the security
police at their heels.
The extent to which a general
strike movement is likely to de
velop as asequel to the present out
break could not be determined to
day, as the workers everywhere are
taking their Easter holiday.
Troop reinforcements are con
stantly arriving at different points
in the riot area and the government
announces that it does, not propose
to enter inta truce, and that it will
also demand the unconditional sur
render of the arms and munitions
held by the communists.
Riot in U. S. Area.
Goblenz. March 28. By The As
sociated Press.) A communist up
rising occurred this morning in the
American bridgehead area, at
Montabaur, six miles northeast of
Ehrenbreitstcin.
A riot call was answered by the
provost marshal, and American
military police were dispatched to
Mor:taaur to restore order.
Federal Troops Active.
Halle, Germany, March 28. (By
The Associated Press.) Federal ar
tillery was taking a prominent part
today in dealing with the insurgent
communists in this disturbed section
of Prussian Saxony.
The artillery shelled the commun
ists who were grouped on the hills
to the west of Eislebcn, dispersing
them.
After a brief engagement the town
tff Sangerhausen, - southwest of Eu
which now control that place. '
Count Pouinski, colonel of police
in theMansfeld district, has taken
charge of the operations around
Eislebcn. v
Farmers' Meeting On
Legislation Called
At Capital April 14
-Washington, March 28. A get
together meeting of farmers' organi
zations 'represented here today was
announced for April 14, when an ef
fort would be made to unite upon an
agricultural program for recom
mendation to President Harding and
congress.
Lower freight rates, tariff-and rev
enue legislation, more liberal ex
tension of credits, regulation of fu
ture grain exchanges, and extension
of the co-operative and marketing
associations are some matters which
it was said will probably be con
sidered. The movement to get together
was said to have "been spontaneous"
although partly an aftermath of the
airing of differences before the
house banking and currency com
mitter. The American Farm Bureau fed
eration has announced a meeting of
its executive committee and one
member from each state here be
ginning April 11, when a legislative
program will be discussed. The Na
tional Farmers' union has called
meeting here for April 20. The Na
tional Grange, the Pennsylvania
State Grange, the Milk Producers
association, grain and live stock men,,
cotton growers and other farmers'
ranizations are expected to meet
here about the same time as well as
participating in the joint conference.
Santa Fe Denies Trains
Will Be Discontinued
San Francisco. March 2SPnh-
Rished reports from Alhnmiprnnp V.
M., that the Santa Fe Railroad com
pany is to take off trains No. 19
and 20, operating between San Fran
cisco and Chicago, were denied by
the company's officials here; The
trains are the "San Francisco flyer"
and the "Chicago limited" and book
ings on them have been accepted for
two months ahead, the officials said.
. The company also denied reports
from Albuquerque that trains No. 21
and, 22, operating between Chicago,
Los' Angeles and San Francisco,
over the Panhandle line, hereafter
would be run onlv west of Kansas
City. .
Nevada Will Use Gas in
Executing Death'Penalty
', Carson City, Nev,'. March 28. A
bill providing for the use of lethal
gas in executipg the death penalty
in Nevada was signed here by Gov
ernor Bovle.
Coney Reported Improved
Natchez, Miss., 'March 28. The
condition of Lieut. W. D. Coney,
trans-continental aviator, who fell
with his plane near Crowville, La.,
last Friday, was somewhat improved
today,
China Wants to
Open Relations j
. TI77 1 .1 Tk
vvitii me rowers
Communications Asking for
Establishment of Diplomatic
Relations Sent to U. S.,
Japan and China.'
Tokio. March 28. (By The Asso
ciated Press.) Communications ex
pressing a desire to open diplomatic
relations with Japan, the United
States and China, have been sent
to the capitals of these nations by
the Russian far eastern republic,
a Vladivostok dispatch to the Jiji
Shimpo says. The Chita govern
ment has also issued a declaration
to the world demanding that for
eign interference in its affairs cease,
and that foreign troops evacuate
eastern Siberia, it being claimed
that their presence there is in viola
tion of international law.
.The dispatch declares that some
delegates to the constituent assem
bly of the republic have denounced
the action of the government in ced
ing a part of the peninsula of Kam
chatka to the soviet government of
Moscow asserting that this action
will result in placing the region in
the hands of American capitalists
and in inducing Japan to take ag
gressive measures at the mouth of
the Amur.
The Japanese foreign office, says
tltere is "no connection between the
dispute over the cession of Kam
chatka and the proposed reoccupa
tion of points on the main land of
Siberia by Japanese troops. It is
declared that sending troops to the
mainland harmonizes with the orig
inal project to occupy Russian ter
ritory until there is reparation for
the massacre of Japanese subjects at
Nikolaievsk last year.
Additions Wrill Be Made
To Tariff Bill, Penrose Says
Washington. March 28. The anti-dumping
bill and the legislation
for American valuation of imports
probably will be combined with the
emergency tariff for passage, Chair
man Penrose of the, senate finance
committee announced -today. The
plan was being considered serious
ly by house republican leaders, he
said.
No amendments to the emergency
tariff bill except one limitine its
operation to six months or
until
permanent tariff legislation is en
acted are to be received, he said.
Those agitating addition of hops sad
other articles to the Fordney bill, he
added, would be told to wait for the
permanent bill.
Columbus Hospital Given
"Av Rating By Medical Body
Columbus, Neb., March 28. (Spe
cial.) St. Marys hospital has at
tained a class "A" rating under
standards prescribed by the Ameri
can College of Surgeons, according
to official notice received by the
staff. The recognition came after
an A. C. S. inspector visited the in
stitution and found that it complied
with the requirements for the highest
classification.
Rail Rates Lowered For
State G. A. R. Encampment
Lincoln, March 28. (Special.)
Nebraska railroads have granted
round-trip rates of a fare and a half
to members of the G. A. R. and
other allied organizations and their
families for the annual state encamp
ment in Hastings, May 23 to 25.
Pope Receives Dougherty
Rome, March 28..Prcrcding li is
departure Cardinal Dougherty was
received today by Pope Benedict.
The cardinal's recession by the
pontiff, was most gracious,
Last' Call
! Peonage System
In South Charged
Probe of Conditions in Missis
sippi Delta Urged in Mes
sage to Harding.
New Yftrk, March 28. -The Na
tional Association for the Advance
ment of Colored People made public
telegrams to President Harding and
Governor Dorsey of Georgia, which
allege that the peonage system is
generally existent in "most southern
states and particularly in "the Mis
sissippi, delta." .
The message urged President
Harding to authorize an investiga
tion by the Department of Justice
"of peonage conditions in Ja.sper
county, Georgia, where John Wil
liams, a white land owner, has killed
or caused to be killed 11 negroes who
threatened to testify against Wil
lianis regarding peonage.'
The telegram to Governor Dorsey
urged that "you bring into the light
this vicious system of economic ex
ploitation." Washington, March 28. No re
port has been received here concern
ing the arrest of John Williams,
Jasper county farmer, charged with
peonage and murder. Department of
Justice officials said today, although
agents of therlrpartment have been
investigating ' alleged conditions in
that section of Georgia for some
time, In the matter of the murders,
it was said, the state authorities
have the. case in hand, but fear was
expressed that the deaths of the ne
groes would hamper peonage prose
cutions by the federal authorities.
Greeks Inflict Heavy
Losses on Turk Army
j Athens. March 28. Afiun-Katahis-j
sar, an important railway junction
I south of Eski-Shehr has" been taken
! bv Gierk forces from the Turkish
nationalists, a Smyrna dispatch to
trie newspaper Nea ttlas says.
Many prisoners and large quantities
of war materials have been captured,
thedispatch declares and the Turks
are fleeing toward Kiutayah about
50 miles northwaw!.
An official statement giving de
tails of Saturday's fighting says that
the army east of Smyrna pursued
the turKS to wiuim approximately
four miles of Atiun-Karahissar,
where the attack halted for the
night. It is,aid the Greek losses
have been insignificant.
Lousiana Assembly
To Probe Gambling Charges
Baton Rouge. La.. March 28. De
claring authorities of Jefferson par
ish "as usual, seem deaf, dumb and
blind" as regards presence of ail
aged gamliliug houses, Governor
Patkrr issued a call for an extraor
dinary session ,of the Louisiana gen
eral assembly to "weed out of office
officials of Jefferson or anv othrr
parish incompetent or wilfully neg
ligent in their duty.
Police With Riot Guns
Patrol Cigar Factories
Manila. P. I.. March 28.-Police
armed with riot guns were placed
around all cigar factories affected by
the cigarmakcrs' strike here follow
ing complaint to the police that a
number of workers desiring to c
turn to work were threatened with
violence by .strikers. Ten thousand
men are idle as a result of the strike.
Dismiss Hoarding Suit
San Francisco, Cal., March 2.
The suit of ft. Amsinck & Company
to. dissolve the Pacific Rice Grower.';
association for atleged hoarding and
conspiracy to restrain trade, was dis
missed in United States district
tour;, ;
Rail Employes
Oil Short Lines r
Lose Wage Case
Diversified Duities and Press
of Trunk LincIIearing Given
As Reason for Dismis
sing Petition.
Chicago, March 28. The petition
of 4,000 employes of 67 "short line"
I railroads for wages and working
conditions identical with those on the
trunk lines was dismissed by the
railroad labor board. Tne case was
heard last fall on the request of 15
unions.
Because of the diversified duties
of the short line employes, the board
declared if was "impracticable 'to de
termine what reasonable rules shall
be on the short lines" and without
a uniform classification of work, the
board declared it could not under
take to determine reasonable wages.
A study of the work performed on
the short lines iould be necessary
to establish reasonable rules, the
decision said,' and until the general
rules heariDg affecting trunk lines is
disposed of, the board pointed out
that it was impracticable to take
action on the short lines.
Originally 103 carriers, employing
from 25 to 400 men each were par
ties to the dispute. Ten electric
lines were dismissed and 25 others
applied the wage scales of the trunk
lines. Under the decision, employes
and carriers may still negotiate their
own agreements on wages or work
ing conditions but the decision stip
ulated that it should not be consid
ered .as affecting "any wage increase
now in effect nor any agreement re
garding wages between any carrier
and its employes."
Aeronautical Arbitration
Is Proposed By Germany
Berlin. March 28. (Bv the A.n-
ciated Press.) Germany, replying
to an inquiry of the mter-alhed aero-
wnetner manuiacturers ot aeronau
tical material still were supported by
the German authorities in their con
tinued violation of the entente's de
cisions regarding the construction of
such material, proposes that the mat
ter be referred to arbitration.
Germany states that it still ad
heres to its standpoint that the Ver
sailles treaty did not give the allies
the right to prolong the embargo on
the fnanufacture and importation of
aeronautical material beyond Julv 10,
1920.
Stock Yards Co. Answers
Short Engine Crew Charge
Lincoln, March 28. (Special.)
The Union Stork Yards company of
Omaha, charged in a complaint by
the railway brotherhoods with opera
ting switch, engines Xithout full
crews, has filed an answer with the
Nebraska railway commission assur
ing that, body that it is now able
to provide full crews. The answer
says that the company always wanted
to obey the law, but on account of
shortage of men it was not able to
do so in every instancf.
The Weather
Forecast.
Tuesdav; Fair and warmer.
Hourly Trmpemturan.
a. m 1.1 I t
6 a. ni 14
7 a. m l.V
II a. m 1
B a. m
in at. m
.2t
II a. m 44 I
I- noon Cfl i
Miiiprrn IlulMln.
frntfet alilpnicnia (luring tho
(f Sfi liourh from tmpercturH as
Nnrth. 2ft ileRrof; aaf and
grcea, tuutb, 30 degree
next
4
rolln
Income Tax
Contests
Are Decided
Four V ictories Won by G overn
ment in Ruling By United
States Supreme Court
On Appeals.
Relate To Stock Sales
By ARTHUR SEARS HENNING.
i hlrnita Trlbuno-Oinnlw Itr I.rard Wire,
Washington, March 28. Four im
portant victories were won by the
government today in decision by
the United States supreme court in
tax cases.
The case involved similar easel
relative to the taxation as income
of profits derived from the sale ot
corporate stocks, bonds and capital
assets. The court held that profits
of this kind ari properly taxable as
income under the 16th amendment to
the constitution.
The principal case was that of the
Merchants' Loan and Trust com
pany of Chicago as trustee of the
estate of Arthur Ryersou against
Julius Sniietanka, formerly collector
of internal revenue for the First
district of Illinois. This case involved
profits from the sale of corporate
stocks held in a i."ust fund.
Corporate Stock Case.
The second case, that of the El
dorado Coal and Mining company,
an Indiana corporation, agaiils-t Har
ry V. Magcr, collector of internal
revenue of the First district of Il
linois, involved profits -made in the
sale, of the corporate stocks of tlv:
company.
The 'bird case was that of David
.'t. Goodrich against William H. Ed
wards, collector of internal revenue
of the Second district of New York.
This involved profits from the bale
of corporation stock. Two separate
transactions were involved, in one Of
which a decision was given based
on the decision in the Ryersou case,
favorable to the government in the
other of which it was held no tux
could be levied where there had been
no actual profit on the investment,
even though there had been an ap
preciation in value from March 1,
1913.' the effective date of the first
income tax law. In respect to this
second transaction, the court mere
ly held in accordance with the ad
mission made recently by Solicitor
Genera) Frierson that an error had
been made in attempting to impose
a tax whew an actual loss on the
investment had taken place.
Favorable to Government.
In the. Ryerson, Eldorado and
Goodrich' cases, the decisions of the
lower courts were favorable,, te ft?-
co'ntentfon of . the goveninfent. (
The fourth case was one in which
the lower court had decided in favor
of the taxpayer. The case was that
of James J. Walsh, collector of in
ternal revenue in Connecticut against
Fred K. Brewster, it involved three
different transactions. The decision
followed the principals laid down by
the court in the R3-erson and Good
rich cases and in the Eisner stock
dividend discussion of March, 1920.
Solicitor General F'rierson in com
menting upon the decisions said that
the government's position had been
completely upheld. He regarded the
cases of an important nature inas
much as adverse rulings would have
meant refunds of millions of dollars
of taxes. y
The Ryerson cas involved 1,000
shares of capital stock of an Illlinois'
corporation -which wis held by the
Merchants Loan and Trust company
of Chicago as trustee of the estate
of Arthur Ryerson. The stock was
valued on March 1, 1913, at $561,000.
It was sold on February 2, 1917, for
$1,280,000, and the collector of integ
ral revenue imposed a tax upon the
prot amounting to about $700,000.
Will Keep Tax.
In seeking to recover the tax paid
upon this amount the Merchant's,
Loan and Trust company contended '
that the gain in four years of over
$700,000 in an investment of about
$500,000 was not "income" within the
intent of the 16th amendment to the
constitution.
A second contentior made by iha
plaintiff in the Ryerson case was '
that the word income as used in the
16th amendment and in the income
tax act does not include gain from
capital realized by a single isolated
sale of property, but that only thj
profits realized from sales by one
engagement of buying and holding
as a businessa merchant, a real cs-.
tate agent, or a broker constitntc
income which may be taxed.
In the case of the Eldorado Coal
and Mining company, the company
in 19)7 sold its interests and orac
tically wound up its affairs. On the
basis of the fair market value as of
March 1, 1913, the sale of the canital
assets resulted in a profit of about
$6,000. The income tax ascssmiit
on this profit amounted to more than
$3,000. The court held that the
profits were properly taxed.
Morrow Named Governor
, Of Panama Canal Zone
Washington, March 28. Col. Jay
J. Morrow, who has been acting as
governor of the. Panama canal lone.
was formally appointed to the tone
governorship today by President
Harding.
At the samp time the nrrtiHmt
appointed (..apt. Sumner L. W. Kit
telle of the navy as governor of the
Virgin islands.
Power Co. Asks Permission
To Sell $250,000 in Stock
Lincoln, March 28. (Special.)
The Platte Valley Power company,
with a generating station at Valley,
a substation at Irvington and dis
tributing stations at Arlington, Ben
nington, Llkhorn, Waterloo, and Vu
,m. ha applied to the Nebraska rail
way commission to srll $250,000 in
stock to raise money for new trans
mission lines and system ttegsjpjjj.
