6 Corporation Income Tax Br JOHN G. HGRKDOX, JR., Tax Specialist. UNDER the excise tax law of 1909, corporations paid a tax equal to 1 per cent, of their net income in excess of $5,000. This tax remained in force until February 28, 1913. After that date Income was taxed under the Act of October 3, 1913. The tax on corporate in come under that act was 1 per cent, and remained so until 1916 when the rate was Increased to 2 per cent.. In 1917 there was added a further tax of 4 per cent, on the net income except that a credit was allowed equal to the amount of divi dends received from other corpor ations. We may, therefore, practi cally say that the corporation in come tax rate for 1917 income was 6 per cent. For 1918 income the rate is 12 per cent.; thereafter the rate is to be 10 per cent. The above mentioned rate of 12 per cent, does not apply to what is customar ily known as net income The most usual variations which a corporation is required to make from its net income as shown by its profit and loss statement for the year are four. First, it may not deduct as an expense of 1918 its income tax or excess-profits tax paid on 1917 earnings. Secondly, it may exclude from' income what- , Corns Peel Off Painlessly There's Only One Genuine Corn-Peeler—That's "Gets-It." There's only one happy way to get i rid of any corn or callus, and that's the palnless-peel-off way. "Get's-It" is the only corn remedy in j the world that does it that way—ef- , fectively, thoroughly. Why get down > on the floor, tie yourself up into a : knot, and have to fool with "pack- ! ages" plasters, greasy ointments that '■ rub off, sticky tape, and digging ' knives and scissors, when you can \ peel off your corn or callus in one, complete piece, peacefully and sure- i ly, with nutgic, simple, easy "Gets- It?" It takes 2 or 3 seconds to ap- I ply "Gets-It"; you use 2 or 3 drops, ' and that's all. "Gets-It" does the rest! Get rid of that corn-pain at once, so that you can work and play without corn torture. Be sure to use "Gets-It." It never fails. "Gets-It," the guaranteed, money back corn-remover, the only sure way. casts but a trifle at any drug store. M'f'd by E. Lawrence & Co.. Chicago, 111. Sold in Harrlsburg and recommend ed as the world's best corn remedy by Clark's Medicine Store. H. C. Kennedy, G. A Gorgas Keller's Drug Store, Frank K. Kitzmiller. C. M. Forney, Golden Seal Drug Com pany. ' I I&owm&nX HARRI3HCRG. THIRSDAY. MARCH , 1010. iHfodSaA //(p. /fyrw BOWMAN'S—BaaemenL Rishell Kionog^phs Permit us to demonstrate the Rishell to you. We know you'll be pleased with it. All styles in stock—no waiting. $65.00 to $225.00 On easy payment terms. Victor Talking Machines and Victor Records Rgxassr 11 312 MARKET ST. ■ ■' ,'; .': 1 ■ "■*• - \ . _ •;•:;• r _ *-• v.* •*,•; . . * f•, ; .• \ ' \ THURSDAY EVENING. Hakrisbttro TELEGRAPH MARCH 6, 1919. I ever It received as dividend# on the stock of domestic corporations. I Thirdly, having arrived at net in ; como within the meaning of the law, i a credit of the amount of the excess profits tax which the corporation will be required to pay is to be al lowed as a deduction from net In come. Fourthly, from this amount there is to be subtracted $2,090 in the case of every domestic corpora tion. The difference between the amount arrived at as above outlined and the $2,000 here mentioned is | subject to tax at the rate of 12 per cent. An Illustration In order to make what has been said much clearer, let us assume the following case: A corporation re ceived In 1918 an Income of $lOO,OOO. One of the items of In come was $lO,OOO dividends from domestic corporations. Tho corpor ation paid in 1918 an excess-profits tax of $22,000 on its 1917 income and an Income tax of $B,OOO on its 1917 income. Its excess-profits tax on its 1918 income will be $31,000. What is the amount of Its corpora tion income tax? The solution is thus obtained. To the $lOO,OOO which the corporation has shown as its income must bo added the amount of its income and excess profits tax paid during the year. From this amount is to be sub tracted $lO,OOO dividends received by it on stock of other corporations. It is on the amount thus obtained, $120,000, that its excess-profit tax for 1918, payable during 1919, is to be ascertained. We have assumed in this case that the tax amounts to $31,000. The difference between the $120,000 and the $31,000, or $89,000, is to be further credited with a $2,000 specific deduction which is permitted to every domes tic corporation. Therefore, the in come which is subject to the cor poration 12 per cent, tax, in the case assumed. Is $57,000, and the amount of that tax is $10,440. All of those corporations which by reason of their nature were ex empt from corporation taxes in the past are exempt from tax under the new law. There has been a slight broadening of the exemption in the case of corporations organized and operated exclusively for religious, charitable, scientific or educational purposes, no part of the net inome of which inures to the benefit of any private stockholder or individ ual by including also such associa tions when organized for the pre vention of cruelty to children or animals. There has likewise been a considerable change in the wording of the exempt clause of co-operative societies, such as farmers and fruit growers' or like associations. In each of our income tax laws en acted since the adoption of the six teenth amendment to the Constitu tion there has been a rather arbi trary limit on the amount of in terest paid which a corporation might deduct from its gross Income In arriving at Income subject to tax. Tho new Revenue Act permits corporations, as well as Individuals, to deduct all Interest paid within the taxable year, except that paid in order to carry securities, the in come from which is tax-exempt both under the excess-profits tax law and the income tax law. An exception is made even in this limitation, how ever, by permitting a corporation to deduct all Interest paid in carrying securities issued by the United States Government since September 1 1917, CHURCH PLANS TO GET $6,000,000 IN FIVE YEARS Reformed Synod Names Man From Reading to Prepare Campaign Altoona, Pa., March 6.—The Re , formed churches of the United ! States will be asked to raise $6,- 000,000 during tho next five years. Of this sum $1,115,700 will go to foreign missions; $1,000,000 to home missions; $2,125,000 to colleges, sem inaries and academies and $lO,OOO to assist European churches. A committee of sixteen, of which the Rev. Dr. C. E. Kretlz, of Read ing, Is chairman, was appointed to plan the campaign. The general synod of the church i was opened here yesterday with i three hundred delegates, ministers i and laymen In attendance. The pres ent session, the first since 1891, was called to consider matters relating to the reconstruction period follow ing the war. Mayor Rhodes wel comed the delegates. Addresses were made yesterday by Dr. Edward S. Bromer, of Greensburg, and Dr. William E. Lampe, of Philadelphia. The principal address at the even ing meeting was by Dr. R. E. Dif fendcrfer. of New York pity, a Methodist clergyman, his subject be ing "The Methodist Centenary and the Inter-Church World Movement." Among the prominent delegates are Dr. H. H. Apple, Dr. J. C. Bowman and Professor E. M. Hart man. of Franklin and Marshall Col lege, Lancaster: Dr. Henry J. Crist mas, Dayton, Ohio; Dr. Charles E. Miller, Tiffin, Ohio; Dr. A. W. Wolf inger, Newton, N. C.: Dr. William Mann Irvine, Mcrcersburg; Dr. W. S Curtis, Allentown: Dr. George Leslie Omwake. Collegeville, Pa.; Professor Howard Benchoff. Wood stock, Va., and the Rev. Frank Bucher, of the Boys' school at Shen chofu, China. The synod will close this evening. Employes' Suits Against Hershey Chocolate Co. Sustained by the Courts Suits against the Hershey Choco late Company started about two years ago by employes for bonuses which were paid shortly before but had been refused them, were sus tained in the Superior Court. A test case, Harry D. School vs. Hershey Chocolate Company, was tried In the Dauphin county courts nd after the verdict had been returned, an appeal was taken from the court decision permitting the verdict to stand. The Superior Court affirmed the decision of the county bench. Shortly after the suits were start ed a case was heard and appealed the higher court also allowing this verdict to stand. Sixteen similar actions were settled at that time, but eight other ones, including the School suit, were not governed by the facts in the former cases the company contended, and another trial was necessary. The eight ac tions which have been pending until the last Superior Court decision, have been closed now, Wlckersham and Metzger, counsel for the plain tiffs, announced. School at present Is a corporal in a company In the 316 th Infantry. He, together with other employes, were not entitled to certain Increas es allowed other persons at the Her shey plant, the company claimed, and as a result suit was brought to settle the question. To Open Bids For Laying of Water Pipe in 14th Ward Bids for laying water pipes In Vaughn street. Fourteenth ward, from Sixth to Fourth streets; Fourth, from Vaughn to Lewis, and Lewis from Fourth to Front, will be open ed nt the office of Commissioner S. F. Hassler. on Monday, March 17. Provision has been made in the 1919 budget for the water main ex tensions in the recently annexed dis trict, and Dr. Hassler said he is anxious to have the pipes laid as soon as possible. While the entire ward has been using the city water supply for household purposes since January 1, there is very little fire protection afforded the district at present because some of the hy drants there can not be used for city fire hose connections. As soon as the new main Is laid additional hydrants will be connected to it and the district will have ample protec tion against any fires, he explained. Because of the building operations which are being contemplated In other outlying districts of the city other extensions may soon be au thorized also. At the session of coun cil this week an ordinance was In troduced authorizing water main extensions In Twenty-sixth and Twenty-seventh streets, from Derry street south to the Philadelphia and Reading railway tracks. SOLD I KItS TO GET BONUS For the information of men who have been discharged from the serv ice of their country, it was stated to-day by officials of the Home Serv •ice Section of the local Red Cross Chapter that when a man is honor ably discharged and fails to receive his $6O bonus, he should write the Zone Finance Officer, Lemon Build ing, Washington, D. C. Full particu lars as to his service, data and place of discharge, present address, etc.. should be given and the certifi cate of discharge should be en closed, by registered mail. It is sug gested that the soldier have a certi fied copy of the discharge made for his own use until the original is re turned. AIXEY TO SPEAK W. D. B. Alney, chairman of the Public Service Commission, will ad dress the men's mass meeting to be held In Fahnestock Hall Sunday afternoon under the auspices of the Central Y. M. C. A. His subject will be "Hiellgion In the Reconstruction Period." Robert C. Smith, baritone soloist at the Zlon Lutheran Church, will sing. RED CROSS WORK Twenty-four cases, containing a total of 5.340 articles, were shipped by the Harrlsburg Chapter, Ameri can Red Cross, during the past month. It was revealed to-day in the report of the shipping department The shipments included: Hospital supplies. 52: fefugee garments, 2,- 113; articles for soldiers, 8,175. ASKS POLICE CAR Recommendations that the police department be furnished with a light touring car and rifles for emergencv cases were mßde by Chief Wetzel Inst evening. The chief embodied the recommendations In his annual report to Council some time ago. Returns Required Under the Revenue Act By JOHN G. IIfCRNDON, Jll., Tax Specialist EVERY individual having a net income for tho taxable year of $l,OOO or over if single, or if married and not living with hus band or wife must make a return setting forth the items of gross in come, deductions and credits allow ed under the income tax law. If a husband and wife live together, a return is required if their combined net income is as much as $2,000. It may happen that persons will be re quired "to file returns who will have no tax to pay. This invariably oc curs in the case of a head of a family whose income is between $l,- 000 and $2,000. If a'husband has a net income of $1,200 and his wife a net income of $6OO, the two in comes must be united for the pur pose of determining whether a re turn is necessary. In the case cited a return need not be tiled. On the other hand, if a husband bad a net income of $l,BOO and his wife $6OO, they would be liable for a return. Every partnership is required to make a return setting forth the items of gross income and deduc tions permitted under the income tax law, and in addition must stute the names and addresses of the In dividual partners, and the amount of the net Income to which each part ner would be entitled if the income were distributed. Although a part nership has to pay no tax. It must file a return giving the above men tioned data. Personal service cor porations are liable for return In exactly tho same way as partner ships and throughout the tax law are treated on the sr%:ie basis as partnerships. The returns required of fiduciaries have already been dis cussed in connection with the taxa tion of trusts and estates. The Commissioner of Internal Revenue has ruled that the burden of proof rests upon corporations claiming to be exempt from tax to prove their tax-exempt status, and not upon the Bureau of Internal Revenue to prove that they are liable for a tax. It may, therefore, happen that such corporations as are enumerated under section 231 may be required to file a return or statement in lieu of a return prov ing to the satisfaction of the Com missioner of Internal Revenue their nontaxable status. Every corpora tion which is not specifically ex empt is required to file a return. The return shall set forth the gross income, the deductions and the credits allowed under the tax law. It must be sworn to by the presi dent, vice-president, or other prin cipal officer, and by the treasurer or assistant treasurer. In the. case of a receivership, or the appointment of the trustees in bankruptcy, or when assignees are operating the property or business of a corpora tion, such recejvers, trustees or as signees must make the corporation returns. Consolidated corporation returns wIU be the subject of a sperato ar ticle in this series. Every broker, however, transact ing business, that is to say whether as an individual, corporation or partnership, is required to render a correct return duly verified under oath, whenever requested to do so by the Commissioner of Internal Revenue, setting forth the names of customers for whom he has trans acted business with such details as to profits, losses and other informa tion as the Commissioner of In ternal Revenue may require. Every individual, corporation, or partnership paying to another in dividual, corporation, or partnership interest, rent, salaries, wages, pre miums, annuities, compensations or tJ day, more ■ 4 and more, The New Store of William Strouse is be coming the Standard Store for men in Harrisburg. And why? Because for years Wm. Strouse has given to the buying pub lic the utmost in quality, style and fairest dealing. Now Strat ford Clothes—America's most famous young men's line has added the final touch to this complete store —"They're the finest ever" is how one $4O $45 $5O Word of Appreciation T-JARRISBURG is proud, yes, more . A than proud of her returning colored troops. We meet with a fervent and joyous greeting. You have "done your bit" and now return—a fine example of clean-cut Americans. Wm. Strouse adds his wel come and wishes you your well earned success in fu ture life. Int. 310 Market Street ' Harrisburg, Pa. reimbursements, emoluments, or other fixed or determinable gains, profits and income, except dividends, of cs much as $l,OOO a year must report to the government the amounts so paid and the names and addresses of the recipient of such payments. This takes the place of the provision in the act of 1916, as amended, requiring the filing of such returns of Information In the case of similar payments in excess of $BOO per annum. TJie Commissioner of Internal Revenue may require, regardless of amounts, such information in the J case of interest upon bonds of do- i mestic and foreign corporations and j foreign governments, from every in dividual, corporation or partnership undertaking as a matter of business, or for profit, the collection of for eign payments of such interest or dividends, bv means of coupons, cheeks or bills of* ethange. Special rules are to be prescribed in each ease where returns are made out for fiscal years differing from the calendar year. Easy to Forecast the Weather by the Moon — If You Can See the Moon The cold wave that was to have come out of the West didn't ma terialize to the extent its prophets predicted to-day. The mild weather and the failure of the temperature materially to drop are attributed to the capers of the March qioon which has been lying low In the northwest for several evenings. The trouble is this self-same moon per sists In surrounding itself with haze so that those who dolight in fore casting colder weather by the actions of the moon are not able to see the color of its rim with the distinctness they would prefer. "If the rim was silver," said a local weather ob server to-day, "one easily could tell whether to say the next few succeeding days would be cold. But the rim is neither gold nor silver. It is a cross between the two, which means the temperature will be neith er too cold or too warm. Full moon occurs on March 16, after which one may be able to tell how March is to behave from the middle to the end of the month." The weather was clear and cold and there was some wind this morn ing when people hurried to work, but it was not unpleasant, nor is it likely to be for the remainder of the w*eek. May Extend Walk With New Fill in River Park With the dumping of ashes along the river front in North Front street above Maclay street, park depart ment officials may be able to extend a walk along the bank there and do some planting of shrubbery and ad ditional trees later in the year. Commissioners E. Z. Gross and S. F. Hassler made arrangements to have tho ashes collected from the uptown district, hauled to the bank and dumped there. \Vorkmen will be kept on duty to collect waste paper and rubbish each day. By using the ashes for fill the city can saved much expense officials said." CURTAIN BLAZES A curtain which caught fire when the wind blew It over a gas jet, caused a slight fire at Sixth and Mahantongo streets last evening. SACRIFICED MEN ] TO HONOR OFFICER HUGHESCHARGES Former Canadian Minister of Militia Makes Serious Statements Toronto, March 6.—A1l Canada has been stirred by charges made In the House of Commons by Sir Snm Hughes, formbr minister of mtlltla, that j officers commanding the Dominion's j forces in France had needlessly Hacrl i flced the lives of their men in order to advance themselves. Although his allegations were assumed to refer to Sir Arthur Currle, commander Vn chief of the Canadinn forces, there is ap parent today a strong Inclination In | many quarters to disagree with hint. ] Soldiers who served overseas already have taken up the cudgels In support of General Currie. Sir Sam opened his ajtack with the announcement that he had protested several times to Premier Borden "against the waste of Canadian boys' lives In unnecessary stunts on the bat tle field." He then read a letter ho had sent to Sir Robert protesting against what he termed needless nlaugh j ter at Cnmbrai and stating that he had ' drawn attention of the prime minister !on previous occasions to the "massa- I ores at Lens, Passehendaele, etc., where the only apparent object was to glorify | the general In command." | He declared' that any general who i would undertake the attack at Cambra! by suburban or street "fighting should ;he court-martialed. The same was true 'of the officer who had ordered the storming of Mons four hours before the signing of the armistice. This he chnr , acterized as a bit of theatrical display i which had cost the lives of many tine j Canadian boys who could 111 be spared, j Some of the papers hint that Sir ! Sam's attack was Inspired by chagrin j nt the failure of his son. General Gar ' net Hughes, to get to France as the j commander of a Fifth brigade of Canad ians, hut all are unanimous in their assertion that the charges call for an i immediate and thorough investigation. [NERVE CONTROL And How to Gain It By 11. Addington Bruce | An expert explanation of the I causes and symptoms of all netv- I ous troubles, and simple, direct I -instructions for their relief. Doz ens of such subjects as Signs of Nerve Strain: Hnblts That Hurt Nerves; How to Overcome Worry nd Melnn choly; llraln Fug and Its Item ed)'; How to Itnnisli Insomnia, Irritability, Timidity, etc.; Getting Itll of Nervous Inlll j gestlon; How to Gnln Nerve Control and Keep Your System Well nnd Strong. ! "An immense amount of practical i advice that is both sound and , scientific and in agreement with latest advances in Neurology. Ought tobe of immense help in a general way to sufte'rers from 1 nervous troubles." • Isador 11. C'orlnt, M. U„ Eminent Neurologist, I Boston. | $1 net; by mall $1.12. Bookstores, or Publishers FUNK & WAGNALLS COMPANY 350 Fourth Avenue, New York i - Continued From March 5, UU, "And by the way!" exclaimed Mr. Hershey, z' "before I forget it I want to show you something that just came in. Come along with me." The Ad man followed him out into the room where the fruit flavors were kept. "Look at them," commanded the gen eral manager of the big creamery, "look at them; fresh from Florida! A ship ment of fresh strawberries!" "Well, they certainly are worth look ing at," agreed the Ad man. "Is this the only shipment you have?" he queried. "Not a bit of it," replied Mr. Hershey, "we have a standing order to ship them right along from now on as fast as they can. We're giving you fresh strawberry ice cream, now, right in March." The Ad man didn't wait to be invited to taste them. He helped himself, even though it wasn't quite conventional. Now. dear reader, admit it it make your mouth water for fresh straw berry ice cream? Doesn't it make you want to put on your hat and run right over to the nearest dealer for a quart of HERSHEY'S SUPERIOR ICE CREAM? Doesn't it? You can talk about your flavors, but FRESH FRUIT flavored ice creajn— that's real! 0 While the two men were inspecting the shipment of fresh strawberries, Mr. Hershey thought of something else of interest and straightway darted out the room, the Ad man following. Realizing that Mr. Hershey was lead ing him to another place of interest in the big creamery, the Ad man caught up with him and accompanied him to the big basement. This part of the building was extreme ly cold, reminding one somewhat of a huge cold storage place. There were so many things to see and learn about in the plant the Ad man was kept at a high pitch of interest every moment, and now he was wondering what would be the next surprise. Presently they arrived at another door, which was locked. Here tlnj waited while Mr. Hershey unlocked and opened it. / March 6, 1919. Look for Friday'# Harrlsburg, Pa. continuation of thin— Signed, The Ad-man. \ Written Especially For Hershey Creamery Co, Makers qt Hershey'a Superior Ice '"
Significant historical Pennsylvania newspapers