The patriot. (Indiana, Pa.) 1914-1955, June 16, 1917, The Patriot, Image 4

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    s
EST* GO TO
The Gem Studio
For All Kincte of 4
i PHOTOGRAPHS |!
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PICTURE FRAMES made to order
When you think of' buying a CAMERA inspect
our line We can supply you at any price
/ From $2.00 to *125.00
1 Films tinci Photo Supplies
THE OEM STUDIO
730 Phila. St. ODD.IOOfB Hotel Indiana, Pa.
I MOVIE DOINGS |!
! 2 !
NEAL HART LIVED
THE LIFE HE PLAYS
Neal Hart, who has the lead in the
Gold Seal picture "Bill Brennan's
Claim," is one of the picture players
who Is now reproducing for the cam
era the life which he has lived in
earnest for many years.
Hart is of Scotch-Irish descent and
was born in New York state, but he has
|>
I
Neal Hart.
spent nearly all of his time in the
West. He is a college-bred cowboy,
having been educated in Bucknell
university, Lewisburg, Pa., where he
played half-back on the football
team, and was chosen as one of
the stars of liis year. There is hardly
a man in pictures who has had a more
interesting career than Neal Hart.
During the Spanish-American war he
served on the U. S. cruiser Panther.
Later he acted as guide for the
professors of the Smithsonian in-
Coming' to
I ndiana P ennsyl vania
UNITED DOCTORS SPECIALIST
WILL BE AT THE
New Indiana Hotel
TUESDAY JUNE 26, 1917
One Day Only. Hours 9 A.M. to 6 P.M.
Remarkable Success of these Talented
Physicians in the Treatment
of Chronic Diseas
OFFER THEIR SERVICES
FREE OF CHARGE
The United Doctors, licensed by the
State of Pennsylvania are experts in
the treatment of diseas of the blood,
liver, stomach, intestines, skin,
nerves, heart, spleen, kidneys or
bladder, diabets, bed-wetting, rhe
umatism, sciatica, tape worm, leg
ulcers, appendicitis, gall stones,
goitre, piles, etc., without operation,
and are too well known in this loca
lity to need further mention. Call
and see them, it costs you nothing.
Laboratories, Milwaukee, Wisconsin
Grirn Solace.
"Is Bliggins an optimist?"
"Yes. He's one of the kind who con
vince you that everything is going to
the bowwows and then tell you there
is no use worrying about it"—Wash
ington Star.
Teeth of a Shark.
A shark's teeth are movable at will
and become erect at tue moment the
animal is seizins: its prey.
stltaite of Washington, D. C., dur
ing the exploration of the Spanish Dig
gings country in Wyoming.
Hart Is really a civil engineer by pro
fession and was superintendent of
construction for the Thurman branch
of the Delaware & Hudson railroad
in the Adirondacks, with a force of
900 men under his orders. He held
the same position with the Titusville
Electric Traction company, at Titus
ville, amd at Keevance, 111.
He spent some time In South Dako
ta, where he drove the freight team
from Fort Pierre to Rapid City. He
punched cows for two years on the
Sioux Indian reservation at the mouth
of the Cheyenne river. He was
foreman of 77 Ranch In Wyo
ming, and manager of another ranch
at Willow for many years. He has
worn the insignia of city marshal in
earnest at Manville, Wyo., and been
deputy sheriff and brand inspector at
Counerse county in the same state.
One of his "jobs" was buyer and
advance man to handle all the inspec
tions and shipping of horses for the
British government, for the use of
the army. He has also seen his name
on the posters of the 101 Wild West
Show, touring the country as a buck
ing horse rider. If there is any vari
ety of Western .life Which Hart does
not know from personal experience,
it is because it exists only in the imag
ination of the writers of so-called
"Western" stories and pictures.
He says that he went into pictures
because the work is so fascinating,
and he made his first hit in the Blue
bird photoplay called "Love's Lariat,"
in which he supported Harry Carey
in a role which he managed to make
very funny, though there was really
not so very much in it to start with.
MOVIEGRAMS
Ben Wilson, star of the Universal
serial, "The Voice on the Wire," works
without a make-up.
The Universal Animated Weekly
has a force of nearly two hundred
camera men in all parts of the coun
try.
Ruth Stonehouse Is the youngest
motion picture directress in the game.
She writes, directs and acts her Uni
versal films.
Eileen Sedgwick climbed out of a
nine-story window and was snapped
hanging from a rope in the Universal
comedy, "The $l,OOO Drop."
MOUNTAIN CLIMBING.
Care Should Be Taken to Minimize the
Danger of Accidents.
At least three-fourths of the acci
dents that occur in mountaineering are
the results of foolhardiness.
More than half of the entire num
ber of accidents happen to persons
climbing without guides, some to
climbers attempting a dangerous or
impossible route with guides, and
there are still other forms of folly.
One may carelessly engage an incom
petent guide or an overbold one, who
will undertake an ascent under unfa
vorable conditions.
Eliminating these contingencies, there
remain certain risks which must be
taken by every climber who ascends
difficult mountains.
However fine the weather, there is
the possibility that a sudden stonn
may render the descent perilous,
though even then the chances are ten
to one that a skillful climber with
first class guides will return in safety.
Furthermore, on certain mountains
there are places where a party is ex
posed to danger from avalanches or
falling stones.
The risk may often be reduced to the
minimum by waiting for the best of
weather or by making a very early
start—All Outdoors.
Our Humorists.
All we can say is that we hope any
given humorist of ours will live out
the greatest length of days and not
stop joking before he dies. We need
every moment of his threescore years
and ten to keep us sane and kind, and
we cannot be satisfied with a stinted
measure of time for him. When he be
gins unsurpassably to delight the world
our national pride,as_ well as our hu-
Color blindness was discovered by
the famous Dr. Priestly in 1777.
I HOW SHALL WE
PAY FOR THE WAR?
A CoasMn Criticism on ft:
Holso Revenue Bi l,
LOANS BETTER THAN TAXES
Five Reasons Why Excessive Taxes at
the Outset of War Are Disadvantage
ous —Great Britain Example Worthy
of Emulation—How the Taxes Should
Be Apportioned.
By EDWIN R. A. SELIGMAN,
McVlckar Professor of Political Econ
omy, Columbia University.
On May 23, 1917, the House of Rep
resentatives passed an act "to provide
revenue to defray war expenses and
for other purposes." In the original
bill as presented by the Committee of
Ways and Means, the additional reve
nue to be derived was estimated ut $l,
810,420,000. The amendment to the in
come tax, which was tacked on to the
bill during the discussion In the House,
was expected to yield another $40,000.
000 or $50,000,000.
In discussing the House bill, two
problems arise:
I. How much should t>e raised by
taxation?
11. In what manner should this sum
be raised?
I. How Much Should Be Raised by
Taxation?
How was the figure of $1,800,000,000
arrived at? The answer is simple. When
the Secretary of the Treasury came to
estimate the additional war expenses
for the year 1917-18, he calculated that
they would amount to some $6,600,-
000,000, of which $3,000,000,000 was to
be allotted to the allies, and $3,600,-
000,000 was to be utilized for the do
■ mestic purposes. Thinking that it
would be a fair proposition to divide
this latter sum between loans and
taxes, he concluded that the amount
to be raised by taxes was $1,800,000.-
000. .
There are two extreme theories, each
[ of which may be dismissed with scant
, courtesy. The one is that all war ex-
I penditures should,be defrayed by loans,
and the other is that all war expendi
tures should be defrayed by taxes
I Each theory is untenable.
It is indeed true that the burdens of
the war should be borne by the pres
ent rather than the future generation;
but this does not mean that they should
be borne by this year's taxation.
Meeting all war expenses by taxation
makes the taxpayers in one or two
years bear the burden of benefits that
ought to be distributed at least over a
decade within the same generation.
In the second place, when expendi
tures approach the gigantic sums of
I present-day warfare, the tax-only pol
icy would require more than the total
! surplus of social income. Were this
absolutely necessary, the ensuing hav
oc in the economic life of the communi
ty would have to be endured. But
where the disasters are so great and
at the same time so unnecessary. th*j
tax-only policy may be declared im
i practicable.
Secretary McAdoo had the right in
stinct and highly commendable cour
age in deciding that a substantial por
tion, at least, of the revenues should
be derived from taxation. But when
he hit upon the plan of 50-50 per cent.,
that is, of raising one-half of all do
mestic war expenditures by taxes, the
question arises whether he did not go
too far.
The relative proportion of loans to
taxes is after all a purely business
proposition. Not to rely to a large ex
tent on loans at the outset of a war is
a mistake.
Disadvantages of Excessive Taxes.
The disadvantages of excessive taxes
at the outset of the war are as follows:
1. Excessive taxes on consumption
j will cause popular resentment
2. Excessive taxes on industry will
disarrange business, damp enthusiasm
and restrict the spirit of enterprise at
the very time when the opposite is
needed.
3. Excessive taxes on incomes will de
| plete the surplus available for invest
ments and interfere with the placing of
! the enormous loans which will be neces
sary in any event.
4. Excessive taxes on wealth will
cause a serious diminution of the in
comes which are at present largely
drawn upon for the support of educa
tional and philanthropic enterprises.
Moreover, these sources of support
would be dried up precisely at the time
when the need would be greatest.
5. Excessive taxation at the outset of
the war will reduce the elasticity avail
able for the increasing demands that
are soon to come.
Great Britain's Policy.
Take Great Britain as an example
During the first year of the war she
increased taxes only slightly, in order
to keep industries going at top notch.
During the second year she raised by
new taxes only 9 per cent, of her war
expenditures. During the third year
she levied by additional taxes (over
and above the pre-war level) only
slightly more than 17 per cent, of her
war expenses.
If we should attempt to do as much
in the first year of the war as Great
Britain did in the third year it would
suffice to raise by taxation $1,250,000.
000. If, in order to be absolutely on
the safe side, it seemed advisable to
increase the sum to $1,500,000,000, this
Bhould, in our opinion, be the maxi
mum.
In considering the apportionment of
the extraordinary burden of taxes in
war times certain scientific principles
are definitely established:
How Taxes Should Be Apportioned.
(11 The burden of tuxes must be
spread as far as possible over thv>
whole commm.ity so as to cause each
individual to share in the sacrifices ac
cording to his ability to ; ay ai l ac
cording to his share in tbi» Government
.... ■■
necessarily borne Uy the community at
large, shou. 1 l.rri =* d as far as p< -
sibie on art". ! i" j la -i-h.sury rather
than on tli se of m>( ->ssity
(3) Excises si. >uld be im; -t d as far
as p. >sible upon commodities in •
hands of the final consumer rather
than upon the articles which serve pri
marily as raw material for further
production.
(4) Taxes upon business should be
imposed as far as possible upon net
earnings rather than upon gross re
ceipts or capital invested.
(5) Taxes upon income which will
necessarily be severe should be both
differentiated and graduated. That is.
there should be a distinction between
earned and unearned incomes and there
should be a higher rate upon the larger
incomes. It is essential, however, not
to make the income rate so excessive
as to lead to evasion, administrative
difficulties, or to the more fundamental
objections which have been urged
above.
(6) The excess profits which are due
to the war constitute the most obvious
and reasonable source of revenue dur
ing war times. But the principle upon
which these war-profit taxes are laid
must be equitable in theory and easily
calculable in practice.
The Proposed Income Tax.
The additional income tax as passed
by the House runs up to a rate of 60
per cent This is a sum unheard of In
the history of civilized society. It must
be remembered that It was only after
the first year of the war that
Britain increased her Income tax to t e
maximum of 34 per cent., and that
even now in the fourth year of the war
the income tax does not exceed
per cent.
It could easily be shown that a tax
with rates on moderate incomes sub
stantially less than in Great Britain,
and on the larger incomes about as
high, would yield only slightly less than
the $532,000,000 originally estimated i;i
the House bill.
It is to be hoped that the Senate will
reduce the total rate on the highest in
comes to 34 per cent, or at nior.t to 40
per cent, and that at the same time it
will reduce the rate en t!ie smaller in
comes derived from personal or profes
sional earnings.
If the war continues we shall have to
depend more and more upon the in
come tax. By imposing excessive ra*~3
now we are not only endangering the
future, but are inviting all manner of
difficulties which even Great Britain
has been able to escape.
Conclusion.
The House bill contains other funda
mental defects which may be summed
up as follows:
(1) It pursues an erroneous principle
in imposing retroactive taxes.
(2) It selects an unjust and unwork
able criterion for the excess-profits tax.
(3) It proceeds to an unheard-of
height in the income tax.
(4) It imposes unwarranted burdens
upon the consumption of the commu
nity.
(5) It is calculated to throw business
into confusion by levying taxes on gross
receipts instead of upon commodities, j
(6) It fails to make a proper use of
stamp taxes.
(7) It follows an unscientific system
in its flat rate on imports.
(8) It includes a multiplicity of pet
ty and unlucrative taxes, the vexatious
ness of which is out of all proportion to
the revenue they produce.
* * * * • * •
The fundamental lines on which the
House bill should be modified are sum
med up herewith:
(1) The amount of new taxation
should be limited to $1,250,000,000—0r
at the outset to $1,500,000,000. To do
more than this would be as unwise as
it is unnecessary. To do even this
would be to do more than has ever
been done by any civilized Govern- ,
ment in time of stress.
(2) The excess-profits tax based upon
a sound system ought to yield about
$500,000,000.
(3) The income-tax schedule ought to
be revised with a lowering of the rates
on earned Incomes below $lO,OOO, and
with an analogous lowering of the .
rates on the higher incomes, so as not
to exceed 34 per cent. A careful cal
culation shows that an income tax of
this kind would yield some $450,000.-
000 additional.
(4) The tax on whisky and tobacco
ought to remain approximately as it is.
with a yield of about $230,000,000.
These three taxes, together with the
stamp tax at even the low rate of the
House hill, and with an improved au
tomobile tax, will yield over $1,250,-
000,000, which is the amount of money
thought desirable.
The above program would be in har- j
mony with an approved scientific sys
tem. It will do away with almost all
of the complaints that are being urged
against the present. It will refrain
from taxing the consumption of the
poor.
It will throw a far heavier burden
upon the rich, but will not go to the
extremes of confiscation. It will ob
viate interference with business and
will keep unimpaired the social pro
ductivity of the community.
It will establish a just balance be
tween loans and taxes and will not
succumb to the danger of approaching
either the tax-only policy or the loan
only policy. Above all, it will keep an
undisturbed elastic margin, which
must be more and more heavily drawn
UDon as the war nroceeds.
Voter's Catechism.
D. Have you read the Consti
tution of the United States?
R. Yes.
D. What form of Govern
ment is this?
R. Republic.
D. What is the Constitution
of the United States?
R. It is the fundamental law
of this country.
D. Who makes the laws of
the United States?
- R. The Congress.
D. What does Congress con
'sist of?
R. Senate and House of Rep
resentatives.
D. Who is our State Senator ?
R. Wilbur P. Graff.
D. Who is the chief executive
of the United States?
R. President.
D. For how long is the Presi
dent of the United States elect
ed?
R. Four years.
D. Who takes the place of
the President in case he dies?
R. The Vice President.
D. What is his name?
R. Thomas R. Marshall.
D. By whom is the President
of the United States elected?
R. By the electors.
D. By whom are the electors
chosen ?
R. By the people.
D. Who makes the laws for
the State of Pennsylvania.
R. The Legislature.
D. What does the Legislature
consist of?
R. Senate and Assembly.
D. Who is our Assembly
man?
R. Wilmer H. Wood.
D. How many States in the
union?
R. Forty-eight.
D. W T hen was the Declaration
of Independence signed ?
R. July 4, 1776.
D. By whom was it written?
R. Thomas Jefferson.
D. Which is the capital of the
United States ?
R. Washington.
D. Which is the capital of the
state of Pennsylvania.
R. Harrisburg.
D. How many Senators has
each state in the United States?
R. Two.
Advertise in the "PATRIOT"
D. Who are our U. S. Sena
tors ?
R. Boise Penrose and George
T. Oliver.
D. By whom are thev elect
ed?
R. By the people.
D. For how long?
R. Six years.
D. How many representa
tives are there?
R. 435. According to the
population one to every 211,000,
(the ratio fixed by Congress af
ter each decennial census.)
D. For how long are they
elected ?
R. Two years.
D. Who is our Congressman T
R. Nathan L. Strong.
D. How many electoral votes
has the state of Pennsylvania?
R. Thirty-eight.
D. Who is the chief execu
tive of the state of Pennsyl
vania ?
R. The Governor.
D. For how long is he elect
ed?
R. 4 years.
D. Who is the Governor?
R. Martin G. Brumbaugh.
D. Do you believe in organs
ized government?
R. Yes.
D. Are you opposed to or*
ganized government?
R. No.
D. Are you an anarchist ?
R. Nc. •
D. What is an anarchist?
R. A person who does not be
lieve in organized government.-
D. Are you a bigamist or
poligamist ?
R. No.
D. What is a'bigamist or po
lygamist? '
R. One who believes in hav
ing more than one wife.
D. Do you belong to any se
cret society who teaches to dis
believe in organized govern
ment ?
R. No.
D. Have you ever violated
any laws of the United States?
R. No.
D. Who makes the ordinances
for the City?
R. The board of aldermen.
D. Do you intend to remain*
permanently in the U. S.?
R. Yes. Éi loffia
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