The sun. [volume], January 26, 1915, Page 8, Image 8

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THE SUN, TUESDAY, JANUARY 26, 1915.
TUESDAY, JANUAHY 20, lOlli.
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I'D Naaaau trrrt, In the llorouth ot Man
hattan, New York. I'realdent and Treaaurer.
UlllUni C lie), k. 170 Nmu etreel, Vice
president. LiDtanl I' Mitchell, 170 Naaaau
treel: Secretary. 0. H. I.utlon, 170 Nanau
elreel.
London orilee. liftlntham lloute, 1 Arundel
Ireet. Strand.
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Washington n 111 re, lllhba Itulldlnr.
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emd fruir,ifiun for publication uitfi to Aat
trlrrtrit artlelti returnirt tUry mutt In alt caie$
ttnd ttampt or that purpose.
"Atncrllm L'cbcr Alios."
Tteforrlng to the1 State Department'
elenr and generally correct statement
of the American attitude tnwanl nil
belligerents alike, tlie (iormuti-Aiiicrl-run
newspaper published by Mr. lint
Man Ilium a remarked yesterday:
"It In well that the document carries Mr.
HnrAN'a signature; otherwise It would
have had every appearance of emanating
either from Ixindon or from Kngland's em
bassy at Washington. Hut Etullsh dlplo
mats would probably have dons It with
more, skill than our Secretary of State ex
hibits. Remarkable Is Mr. HrtaN's pain
ful effort to show that the complaints of
violation of neutrality In favor of the Al
lies are exaggerated or unproved, while he
remarks with satisfaction the c.rcum
Ktance that several Herman reservists
have been discovered In possession of
American passports to which they were
Hot entitled. That tho many complaints
of Kngllsh Injury to our ocean trade are
justified the Secretary, to his sorrow, can
not deny. Kor Justification he points to
the protests raised In London, which re
main unrecorded, because Kngland, as Mr.
JlnvAN proclaims with open satisfaction,
rules the seas."
'I'lils Is as good a text as another for
n few nude remarks on the attitude
which is coining to he habitual with
many - we are -'lad to May not with all
of our friends and fellow citizens nf
tionnati hlrih or recent ancestry. There
! no more valuable and highly e
teemed element ill our composite oltl
7.enhlp: hut wo are hound to say that
ll continued value depends somewhat
it i n ! t the K.iiiliiiifu preponderance of
the Ameiieau Ide of the hyphen.
The grievance of Mr. lll.RMAN Hilt
mit and other "Conuan-Aiuoiicaiis"
who think and talk like him about
"iioiitrnlitj" Is imi so much that this
State Department document has "every
appearance of emanating either from
I,ondou or from F.nghind's embassy nt
Washington" as that It has not been
framed by Its author and revisers
to have every appearance of emanating
cither from lterlln or from Germany's
embassy at Washington. Tho neutral
ity they really want on the part of the
American (Jot eminent and people Is
absolute acquiescence In the Gorman
point ot view concerning America's re
lation to the present struggle In I'll
rope. Little by little the "German
American," In many Instances, Is com
ing to forget that there Is any sequel
to his hyphen.
Now, "Deutschland ueber Alios" Is .1
noble sentiment, a sentiment of legiti
mate patriotism; admirable In Its
place, which happens to be In tho
hearts of the Kaiser's subjects whether
on the other side of the water or visit
ing this country as Ambassador or ofll
clal propagandist or private traveller.
"Deutschland uebor Alios" Is all right
for Count on Ithit.NKiortiT, here or else
where, provided that he conforms his
practical activities In the Interpretation
of tlie Idea to the requirements of Inter
national propriety. Mom than once
the Count has taken the benefit of the.
doubt. "DiMil-chland ueber Allen" Is all
right for Dr. IImi.miaiiii Di:nNiii'itn.
Ills special mission Is to present tho
German case wllh a view to winning
moral siipMirt for li In America. Uu
lias performed this function with con-
rililomlile ability, plausibility and tact,
mid ho has Kepi his teiniH'r; he would
be beyond liK rights, beyond what is
periiils-lhlo for a guest of his descrip
tion. It' he should iitteliipt to persuade
(i single Ameiieau citizen, whether call
lug lilniM'ir liermaii-Auieiican or not.
that the proper motto for that Ameri
can olll.eu or any other was "Deutsch
'.and ueber Alios."
Vol llio whole effect of lite "German
American" propaganda. In-t Ittittsl by tin?
zealous representative of the German
jCmporor, carried on by various "German-American"
organizations variously
named, promoted by Dr. Di.r.mii ho and
nu Innumerable stall' of volunteer cor
respondents of the Ameiieau news
papers, and siliimlaleil by more or less
disinterested Journalists like Mr. lliu
MN ltiniu.it and the clever people of
yithriltiiiil. has been lo confuse the
minds of uiuliiiudes of American citi
zens as I., the whereabouts of their nl
leglauce. The natural s.wnpathy of
race and of association aud of cher
ished memories hits been Inflamed Into
n tierce part I win ship, In some cases
even to the exclusion of the notion of
primary obligation to the adopted
country mm! flag. Tiir. Sun has iietu-
nlly received letters from "German
Americans" nvowing American citizen
ship and yet declaring that American
action fatally unfavorable to Ger
many's cause would result In civil vr.ir
In this country. These are extreme
cnsi, but they Illustrate the disposi
tion of so many worthy people to ig
nore the fact that there Is no place for
"Deutschland ueber Alles" on this side
of the water and In American Inisouis,
"Deutsclilaiul uelwr Alios," we re
peat, has no place In the lexicon of any
American citizen, whatever his racial
sympathy nud family tree. As n sub
stitute for that sentiment, so respect
able in Its own proer quarter, wo beg
leave to offer to Mr. IIkrman Uiddkii
mid the rest of our "(icrman-Amerlcan"
fellow citlr.cns the variant displayed nt
tbo head of this article. It Ills the sit
uation much better.
The Immlcratlon 1C 1 11.
Two unreasonable and Indefensible
provisions of the Immigration hill now
ou bis desk have Invited the President's
uto of that measure. The first Is the lit
eracy test. The selective process based
on this otters no assurance that the
good shall he admitted and tho had ex
cluded from the United States. It is
a subterfuge designed to establish a
quantitative restriction. If we want to
stop artificially the flow of Immigra
tion wo should do it by a plain and
simple enactment, If wo want only to
bar the undesirable from our shores
we should adopt it system that will
disclose an applicant's natural capacity
for citizenship, and not classify him
according to the accident of his edu
cational advantages.
The second clause which vitiates
tho bill Is that which bears tlie bur
den of the meaningless phrase "con
stitutional psychopathic Inferiority."
This conjunction of words means noth
ing. Its sole claim to toleration Is the
fact that to It has been arbitrarily at
tached a slgulllcauce which might as
well be connoted by the term "men
tal X," It would unquestionably be
the subject of dispute and confusion,
and by the time the statute became ef
fective, were It allowed to stand in Its
present form, n definition widely dif
ferent from that now tacked to It
might have been devised.
President Wilson has had no better
opportunity to exercise his constitu
tional function In the legislative De
partment of the Government.
One Thing That Aits (lie Department
of Kdmation.
We do not pretend to trace to one
souico the causes of nil the acknowl
edged weaknesses of the public educa
tion system In this town: weaknesses,
we are glad to say. which tlo not pre
vent thnt system from accomplishing
many admirable and highly creditable
results. Itut the manual just Issued
by the Hoard of L'ducatton discloses
one M)tcnt disturbing factor in tlie mul
tiplicity of laws affecting that body in
the discharge of its duties.
The educational chapter of tho Char
ter occupies In the pamphlet lK?fore us
ninety-seven pages, the constitutional
provisions rotating to education require
one page. The provisions of tho educa
tion law appertaining to tho Hoard of
Kducatiou till twenty-nine pages. Other
statutes relating to schools which must
be considered when the board trans
acts Its business require fifty-four
pages for their sotting forth. And
thevo statutes, as is the habit of such
enactments, overlap, contradict and
generally confuse each other In a man
ner calculated to fill a litigious person
with Joy.
Is It a matter for wonder, when this
mass of statutory enactment Is consid
ered, that the Hoard of Kdnentlon at
times seems to 1m entirely at sea in the
ordering of its imllcyV
Admiral Heatty's Victory.
The sea light in tho North Sea in
which tho Germans lost the armored
cruiser Hluechcr, the most iHiworful
vessel of their navy after tho group
of battle cruisers, afforded a test of
gun jKiwer, marksmanship and battle
tactics that intist be satisfactory to the
Hrltlsh and dlsapiwlnting to the Ger
mans. It is singular, hut nevertheless
true, thnt the Germans before the war
considered the S70100 pound projec
tile of their 12 Inch gun as destructive
nt battle range as tho 1.2."i0-l.l0 shell
II red by the Hrltlsh 13.fi Inch gun. not
withstanding the fact that tlie burst
ing charge nf the Hrltlsh l.i.." Inch gun
Is oue-thlrd heavier than that of the
German 12 Inch. The Derllllnger. out!
of the four cruisers engaged In tho
North Sea light, ear lied eight 12 Inch
guns. Of the power of their 11 Inch
guns, of which tho Seydlit. and Moltko,
two of the other battle cruisers en
gaged, carried ten each, the Gemini's
also had nil exaggerated idea, due to
their supremo contlilence In the genius
of KRt i'i-.
Admiral Hmt siMi, a retired otllcer,
at a meeting of the Navy League at
Wiesbaden before the war. talked with
great confidence of the result of an en
counter between the find lino ships of
the two nations. "The German fleet,"
said he. "will probably outer Into this
close action already iKissossIng an ad
vantage, due mainly to Its excellent
Krupp gun material, which lhiglnnd
simply caiiuol equal." The Hrltlsh, on
the other hand, have vaunted their
111.5 Inch gun above the 1-1 Inch pin
made by any other Power, and they
have made light of the (ioniums' esti
mate of their 12 inch gun. Itemarkable
scores have boon reportisl In practice
by the HiitMi with the 1 .'!.." Inch gun.
They have done hotter work with It
than with the 12 Inch gun. Thus tho
King George V. has made II" I points
vviih the gun of larger calibre, as com
pared with 051 iwlnts for the Dread-
nought, which led tho Jlst of battle
ships using tho 12 Inch gun. Two
other ships with batteries of Ul.fi inch
guns, the Princess ltoynl and Monarch,
made 7W1 nnd 70(1 jwdnts respectively.
It Is to be noted that tho Lion,
which took such n prominent part
In the sea fight In the North Sea,
made a very low score with her
111.." inch guns, :t:tl points: and
the Indomitable, another llrltlsh
cruiser engaged, also did poorly with
her Hi Inch guns In tho practice, mak
ing but IS1 points. Kxcolleut work
was done with HI.." Inch jruus In an
other gun laying test, of which we
have this account : "In one case four
successive shots were put through tho
same hole In the target, nnd noiiio of
tlie gunners made n hit with every
round I hey tired."
Tho llrltlsh crows had n wonderful
weatou lu the 1,'I.B Inch gun In tho bat
tle between Admiral Hkatty's squid
ron and the big German raiders, nnd
there were no less than thirty of thee
guns on the Lion, Tiger nnd Prince
ltoynl. Add tho eight 12 Inch guns
on tho New Zealand nnd Indnmitnhlo
respectively, forty-six grout guns In nil,
nnd 'It Is apiNirent that the Germans,
with their eight 12 inch puns on the
Derllllugor, ton 11 Inch guns on tho
Koydlltz nnd Moltko respectively, nnd
twelve 8.2 Inch guns on the Hlucehor,
were at n disadvantage which could
have loen overcome only by extraordi
nary superiority in marksmanship. Con
sidering what tho Germans thought
about the big guns on their chips In
commission, nnd their satisfaction with
their gunnery In practice, tho victory
of the young Hrltlsh Admiral must be a
bitter dlsnptiolntinent.
The Employer, the Union and the Man.
The effect of the Supremo Court de
cision In the labor case under the so
called coercion statute of Kansas sim
ply puts the rights of nil parties em
ployers, employees nnd labor unions on
ii basis of equality. A tabor union ac
cepts or rejects Its members on Its own
conditions. An employer engages his
men or discharges them on his own
conditions. The worker has the ut
most freedom In choosing between tho
two. but ho cannot force himself iijioii
either.
If both the employer and the union
are agreeable, he may adhere to both.
If the union makes It a condition of
membership that he abandon tho em
ployer, he must comply. If he refuses,
tho union may cut him off. Conversely, if
tlie employer makes It n condition th.it
he shall leave the union, ho must com
ply. If he refuses, the employer may
discharge lilm.
Tho rule seems to bo absolutely log
ical and ethical. It Is In ao-ord with
the strict demands of fair play. It Is
not n blow nt the reasonable operation
of the unions. It simply dissolves an
alliance between unionism and the law
making ixiwor which left the employer
helpless to choose his own assistants.
The decision draws tho teeth of the
Knnsits stntuto which made it unlaw
ful for any one to coerce or Influence
another to make an agreement not to
belong lo a labor union as a condition
of employment, Fourteen States alto
gether have similar laws, so the de
rision will have potentially a sweeping
effect. It must be remembered, how
ever, that the extreme oslt!on as
sumed by the St. Iouls nnd San Trail
clseo Hallway of Scott, Kan.. In this
case Is very unusual, being the reversed
case of the closed shop. The attitude
of the employer who does not freely
accept unionism Is usually In favor of
the open shop.
This the unions habitually combat by
the exclusion or expulsion of men who
are willing to work with nuii-tiiiloiilsts.
According to tlie reasoning of Justice
Pitnky such action would seem to Ih
prohibited from this time forward.
Thus, perhas, the most Important ef
fect of tho pro-out decision may be l:i
the long run to promote by protecting
the open shop Idea rather than to en
courage the extreme liolley nf exclusion
on the employers' part.
No Compulsory Pardons.
The Supreme Court of the I'lilled
States has once more solved a dijllcult
situation by the application of the rule
! if 1-nn.tiin tt tiou il,nMi,,l tlitil flit.
i President could not Impose iiiniii a citi
zen an unsolicited pardon for offences
for which he had not been Indicted or
convicted and which he may not oven
have committed.
This is unquestionably good law, since
the Supreme Court says so. In addi
tion it is good sense. The Invention of
the compulsory pardou added a new
ami most exasperating peril to life and
character. A pardon Implies an offence
and so carries a stigma with It.
If It were competent for the Execu
tive to Inflict such nn Injury In order
to carry out some puriose of his own,
regardless of the desire or Interests nf
the victim, a new and evil weapon
would be placed In tho hands of the
Government ami one of the highest
rights of tlie citizen, the right of keep
lug his name clear of otlbial condem
nation save by due process of law,
would ho lllched from him.
The present decision dues noi touch
the main issue lu the case of Mr.
Gi.nRnK Hfnnii-K, formerly city editor,
and Mr. William L. Ci-hun, a reporter,
on the Tribune staff. These gentlemen
In accordance with the ethics of Jour
nalism refuse to reveal for tho use of
the Federal District Attorney the
source nf certain Information which
they published. Tho question whether
tho confidential relation between news
paper and Informant Is Inviolable, like
that of lawyer and client or doctor and
patient, remains unsettled.
It Is a pity that scholastic authority
should be found to Justify tho uso of
"swear words" by (tliis and women.
Perhaps the middle West ruling that
"damn" may properly supplant tho
usual denatured feminine expletives
upon BUfllclent provocation was not In
tended to bo taken seriously. Hut It
only needs a trilling start nowadays
to set up an agitation for the extension
of any masculine privilege) to tihs
Htrotmcr sex, as of late they lovo to
bo culled. Most likely a ureal majority
of women and girls will shrink as of
old from tho "big, big V." Hut there
are a few 1o whom tho temptation of
seeming to bo emancipated Is Irresist
ible, and unfortunately tho nggrcsHlves
only too often set the pace. There Is
qulto enuimh bad manners on tho part
of both sexes as It Is, What Is needed
Is a struggle for less strong language
among men,
It was not previously known that
tho snakes of Urazll had cannibalistic
tendencies.
The Turks may not bo 'inconsolable
over tho sinking of their entire "fleet"
of sixteen aeroplanes on board tho
steamer GeorKlos by the Itusslans near
Hlnopc, Asia Minor. Tho Turks are
such poor man-of-vvars' men a.id have
so llttlo stomach for the sea that one
can't Imagine them as being dangerous
aeronauts.
General Villa has shown a Rood deal
of skill as an orKanlzer of troops, but
when ho turns prophet nnd announces
thut "Hun Luis Potosl will fall to-morrow
or the day after and In a few days
more Tamplco will fall'' lie must be
more hopeful thun confident because
several of Ids ablest lieutenants have
gone over to tho enemy.
Why rthould 'bus lines mean conges
tion or disaster In Now York ony more
thnn In London or Paris? Many hun
dreds operato dally In both cities with
out blockades and with a very small
number of mishaps. As to tho pro
vision of new means of conveyance In
juring financially those which already
exist, It Is a cry ns old as the llrst
project for elevated railroads In New
York. All experience points the other
way. The law seems to be firmly es
tablished that Increase of traffic facili
ties multiplies traffic.
The fine professional Indignation of
nn energetic lawyer who evidently has
strong faith In the value of tho pre-trial
forces on the public attention the ques
tion whether free murder Is the abso
lute nnd prescriptive right of any
woman, especially If she has attained to
It through defiance of the social law.
Itepresentatlve Gardner of Massachu
setts mny not be able to Induce the two
army reservists living In California and
the Porto Illcan to attend his dinner,
but plates might be laid for tho ten
members of the reserve residing In New
York, the two Pennsylvnnlnns and one
lmll.tnl'in. The thirteen would prob
ably nil share his bounty, If he did not
nsk them to demonstrate tho strength
of the I'nlted States army reserve on
n Friday.
Calls Wilson most narrow party man.
Ilrtullinc.
How unfair!
THE NEW ART.
An Admirer of the Old Masters Speaks
III Mind About It.
To Tiir KniTOR of Titr. SUN Sir: It Is
about time that some of our Intellectuals
nd sane art lovers formed a "strorni
arm sciu.id" to do nway with the Imported
silly pictures and those of our American
Imit.itors. V havn too much of their
uoithlesi efforts, some utterly disgusting,
rlKht here In the metropolis. Kven the
preent Academy exhibition has fallen a
victim to the praze, and many of the deal
ers Invito the nrtlsts to show their pu--rlle
perpetrations of pipe dreams without
even blushing.
A'! set Apnlnaiea nf srt are not
art. At the schools the Instructors teach
the so-onlled modern art. What If this
generstlon groas Into a decadent art pe
riod, no one eares. Tho men whom the
public put on a pedestal are r.ot sincere.
The tendency of our artists shows
streaks of de-adence. It Is noticeable
ii.it alone In painting, but also In inuslo
and literature What are the majority
of men seeking In the marshes nf medi
ocrity' Did not art reach Its heights In
the works of the old masters? To my
idea modern art can onl mean tlie treat
ment of now subjects In the grand, mas
terly style All the so-onlled "new art"
Is the outcome of the Incompetence and
Indolence of the world rs. Wo ml sin as
well classify most of the "new" painters
as daubers. URllgraphlsts. crazy iiulltlsts.
tlattlsts, cbildcbromlsts. It Is ram to llnd
any one who has anything lu him of the
teal mastery of the glorious men of three
hundred years ago.
Art will suffer from the epidemic now
affecting the art world. H wasting their
energies cm puerilities and psychopathic
nightmares the artists will gradunlly for
get what true art means and become, ob
llvinu" of the means lo attain high art.
Locis M. Klt.sitEMius, M. A.
Nr.w York, January 25.
WAS ALBERT JUSTIFIED?
And .Instilled Lien If He Could Have
Foreseen the Cimoiiienres?
To Till! KhlTon oe Tun Sun Sir: The
question suggested In our editorial arti
cle to-dny. "Was King Albert Justified?"
Is of suipnlnc Interest, and of an In
terest by no means academic.
The defence of llelglun neutrality and
IlelKian territory UK.ilnst ruthless Inva
sion was of course tho defence of Hel
Blum's national honor. Yet It has re
sulted lu ruin to that nation and In death
to thousands of Albert's subjects aud un
told misery to millions of llelglau men,
women and children.
Was Albert Justified? Would he have
been Justified even could he have fore
seen fully the terrible consequences to bis
country and bis people? M.
Nkw Yoiik, January 25.
Ciinunl'sloner Dawes and Ir. Stuart
1'ntnn's Tcwllniun)'.
To tub KuiToit or The Hun .Sir: In
the Interest of that accuracy for which
Tun Sun has earned so enviable a repu
tation, may I make a correction?
fi the report of tbo hearing before
President Wilson on tlie Immigration bill
nn January 22 It Is said : "Or. Stuart
I'alon of New York declared
that illiterate ImiulKratlnn Is bringing
down the standard of mentality In this
country with startling rapidity"
In the llrst place Dr. Paton resides in
Princeton, N. .1., and not In N'ew Yoil;.
Io the second place, as I read Or. Paton's
carefully prepared typewritten speech,
and as I sat within three feet of him
when he delivered It, I am In a osltlon
to state thut not even the wildest flight
of the Imagination could construe any
thing be said to have the remotest bear
ing upon tbu llterncy test.
Hi'BNCER L. Dawks,
Albany, January 2D,
Children of the Dend,
l'lve hundred and fitly orphan rhlldren,
inoatly liahlea uml all n.nnoleaa, were brought
here thla afternoon front tho quake area.-
CdMe deiixitch from Home
(lone are the hearts that bore them,
(lone wllh the dead and mliaed,
Loot art the hands whlrh anothed them.
Still sr the llpa that kiaeed,
Silenced the tonga which lulled them,
Sweet at lh cloae of day,
Oh, for the angel mothere,
So far, o far away!
Who la to plan their future?
Who la to teach them gumea?
Who la to anawer nilMtlona?
Who la to give them name
Where wlnrta tho pith to morrow '
Where run the road next year?
Who la to Ruble their footetepa
Up through the hllle from Iter?
II 8. mstlNI.
THAT AMAZING RULING.
Further Departmental Modification of
the Income Tax Itcenlatlons.
The subjoined corrrnpomlence between a
gentleman In New York and the Treaaury
Department concerning the rulen for com
puting the Income tax Is elf-iplana,torl
August 20, 1914.
fan. It', , Osborn, Commissioner afrr
not Revenue, Treaaurv Department,
H'njilnfflon, D. ('.
Hint My attention has been called to
regulation of your Department (T. D.
2005) whlck Indicates the character of
losses which may be deducted from gross
Income subject to the Federal Income tax.
I nnd In tho regulation the following
words: "Only those losses are deductible
which are sustained during the tax year
'In trade' that It, the business which
engages the time, attention and labor of
any one for the purpose of livelihood,
profit or Improvement," I find tn the
same regulation Die following words
"losses sustained by Individuals or cor
porations from the sale of or the deal
ings In personal or real property grow
ing out of ownership or use of, or Inter
est In such property, will not be deduct
ible at U1, unless they are Incident of,
connected with or grow out of the dujI
tirjj of the Individual or corporation sus
taining the loss."
Applylr.K theae quoted clauses to Indi
viduals, they seem to Indicate the Idea
that an Individual may not deduct from
his gross Income any loss sustained by
him, unless that loss was directly Inci
dent to or connected with his bttstnrat.
It seems to follow that a lawyer, physi
cian, merchant, engineer or salaried man,
to take a few examples, would not be per
mitted to deduct an actual loss sustained
through bad Investment. For Instance,
a merchant engaged In the dry goods busi
ness In the city of New York might make
an Investment of tho profits previously
.made In and withdrawn from bis dry goods
business In real estate In the city of
Chlcneo. and mleht be forced to sell thnt
Investment at a loss. It Is certainly not I
a loss incident to or connected with his
dry goods business In N'nw York, but It
Is nevertheless as real a toss'and as legit
imate a toes ns one that might result from
the operations of his dry goods business.
A salaried man might deposit his sav
ings In a savings bank and by the failure
of that bank might Incur a loss. The
failure of the bank and the consequent
loss fo the depositor are not Incident to
or connected with that depositor's busi
ness, which Is that of a ealarled em
ployee of the United States Government,
let us say. Is his loss any tho less a lost
than one he would have suffered If his
employer had failed to pay him a part of
his agreed salnry?
Illustrations might be multiplied, but
the above are sufllclent.
The law permits the Individual to de
duct losses incurred "In trade." The law
does not say losses Incurred by the Indi
vidual 'in IhlsJ trade," profession, busi
ness calling or emplovment.
The regulation In uuestlon apparently
limits the word "trade" to mean the Indi
vidual's trade or calling, profession or
business.
The noun "trade" has different mean
ings, among them the rather restricted
one suggested above. It has a much
broader meaning, and that broader mean
ing Is doubtless the one Intended to be
given to the word by the framers of the
law.
The Standard Dictionary, Twentieth
Century edition, 1903 (Funk & VngnalIs),
defines tho noun "trade" as follows:
"2. ftuylng or selling for gain or ns a
means of livelihood ; mercantile traffic ;
commerce; hence, any (tulrlduol bar
pain." "Trade" In Its broad sense, which Is the
only sense which may Justly he given to
the word as used In this law, means
therefore any legitimate bargain that an
Individual can enter Into, whether that
bargain be a part of. Incident to or con
nected with bis regular trade, calling,
profession or employment or wholly dis
connected therewith.
If a lawyer made In any taxable year
a profit out of aii "Individual bargain" In
real estate, thnt profit would bo taxable as
part of his Income, but If ho made a loss
on another "Individual bargain" of pre
cisely the same character ho may not de
duct that less v..-M"- t wiiv not Incurred
as Incident to or connected with the prac
tice of bis profession or "trade."
Is this what the regulation means" ,
I Bh.ill value, your reply and I remain,
Yours very truly,
(Signed)
TniAsur.T DsrAnTMXNT,
Yashinoton, August 24.
Income Tax.
Km: This otllce Is In receipt of your
letter of August 20. 1914. In which you
request Information In reference to losses
sustained by Individuals or corporations
from the sale of or dealings h persoiul
oi real propeity, supplemental lo that
contained In Treasury Decision 200i, and
In reply you nre advised as follows:
t'pon a further consideration of th
question of losses tho clause lu pai.igr.yp1i
II of the net of October 3, 1913, reading
"losses actually sustained during the yer,
incurred in trade, " Is Inter
preted to mean that losses actually sus
tained during the year as -a. result of nnj;
fuieiil friinsncfton or Oiccif meat iiicku
or the purpose ot gain or profit, which
gain or profit would be Itfcome subject to
the Incomn tdx, are hold to be "losses
Incurred In trade," and the amount
thereof may be claimed as an allowable
deduction, even though the said losses
arose from Investments or transactions
not connected with the regular trade.
calling, profession or employment of the
pet son rendering the return. To be an
allowable deduction, however, the loss
must be actually sustained and deter
mined during tho tax year for which the
deduction Is sought to bo made nnd must
be the result of an actual, a completed, a
closed transaction.
Therefore, In the case cited by you In
which a New York dry goods tnerclinnt
Invests In Chicago real estate which he
sells at a loss, the loss sustained by him
through tbo purchase and sale of the said
property, If purchased on or after March
1, 1913, may be claimed as an allowable
deduction. Itespectfully,
Ii. F. Srsxs,
Deputy Commissioner.
Tho Cno of tho Xcw Haven Share
holders. To Tiir. KniTon oc The Hun Sir: The
factor that determines whether there will
be loss or gain In a stock or baud dealing
Is the relative market rates at the time
of pin chase and tho nale.
Market rates of most securities are ac
cessible lo all : none need be Ignorant.
Cannot these same market rates deter
mine whether the unsold securities are of
Increased or of decreased value at the
end of the year?
From time Immemorial busbies men
Imvo made up correct balance sheets by
lidding for Increases and deducting for
decreases In value. Oath must bo made
to the correctness ot all Income tax re
turns. If the Treasury Department rules were
In harmony with old established book
keeping methods, the agents of the Reve
nue llureau could check up any one's
books In one-twentieth of the tlfne re
quired lo check up a return made under
present Department rulings,
Does it not approach the point of ab
surdity to say that thoso who pur
chased New Haven stock at $150 a share
and still hold the stock liuve not made
a real loss?
Suppose that each and every stock
holder had tried to avail blmself of the
only possible escape the Department of
fers 111 in from paying an Income tax,
when he has had only loss, and had
tried to sell his stock. In such an event
the stock would probably have been
forced down to $2t Instead of StiS a
share Ills loss would have been tre
mendously Increased, but be would not
then have had to swear that his net In
come was, say, 110,000, when, In fact,
his loss was, say, 120,000.
Ill a series of years there should be
as many ups as downs, The time will
come when the European- Afrtctno.
Asiatic war will cease, and (perhaps with
less assurance) we umy assume Ule time
will come when our present Government
or Its successor will cease batting big
business, nnd then oil securities will rise
and tho Government tax receipts will
materially Increase, that I?, if assessed
on a basis of ascertaining Income uied
for ftges by the business world.
The obvious Intent of the luw Is to tax
net Income. When the valtia of one's
property decreases- more during the tax
year than It appreciates, bo has no net
Income. IlMnnso.v Mc.Mli.l.lN.
IIamset, N. J January 24.
FOR NATIONAL DEFENCE.
Admiral Chndwick Tells Why a Oreiit
Snxy, .Not a Oreat Army, Is Needed.
To Tim KniTon or Tiir Kcn-.sir: As
wo seem to bo aroused somewhat to the
subject of national defence, 1 beg lo
offer some views as to the method ot
arriving nt completeness at least cost.
If there Is any absolute fact 11 Is
that our pension laws prohibit the em
ployment of it large onny In war, unless
wo propose to risk bankrupting the na
tion. To saddle ourselves with the
pensions of, my, 2,000,000 men, In addi
tion In the pensions amounting now to
Hourly $200,000,000 a year for tbo rcm
iiauls of the army of the civil war nnd
for tho comparatively few of the Hpan
lsh war. Is from an economic view an
Impossible thing to contemplate.
I understand that we hnvo already
paid over $43,000,000 In pensions for tho
men employed lu the 113 days war
with Spain, though not more tihnn n
seventh of those enrolled ever left the
oountry or saw an enemy.
What I nm about to suggest does not
mean that wo do not need tin army.
Wo need a considerable ono of highest
quality, and wo can never, given our
present conditions, expect to have a
great army of such quality. Any largo
army with us must be un Improvised
body, and such nn Improvisation Is, as
every reasonable man knows, useless
ngainst a powerful disciplined force.
Hut no army whatever of any size or
nny quality can prevent a blockade or
the occupancy of Important ports of
our coast. Security against Invasion
and blockade our safety, In a word, can
only be assured by a navy, and this
rthould bo so powerful as to be abso
lutely proventlvo of attack.
And not only does a iovverful navy
nnsiirn safety, but It assures constant
readiness, economy In upkeep, nnd, as
said, economy most of all In pensions.
For a fleet of even eighty battleships
with Its adjuncts of cruisers, sub
marines, &c, a power equal to any com
bination against us, would require but
about 120.000 men and the first cost of
raising our fleet to such a level would
be hut a bngatello compared wK.h tho
fixed charges of future pensions.
I would put this first cost nt $fi00,
000,000, the equivalent roughly of
three years of our present pension
payments, F. 12. Chadwick.
Newi-ort, rt. I.. January 24.
FOR THE UNEMPLOYED.
The Columbia Professor nf Agriculture nn
Farm Work ns a Itosort and Ilesourco,
To tub KDiTon ok The Sun -.sir: 1
have read with real Interest the nrticlo
by Mr. John It. McMabon In last Sun
day's Issue of Tun Scn. .Many of the
solid olllzens of this city might well take
a second thought of the possibility sug
gested by .Mr. Mc.Mnhon As well, some
of the multitude of unemployed lu and
about the city might turn their attention
very properly to matters that relate to
farming.
In many parts of Km ope It Is ald
farmers do not take kindly to any move
ment oa the part of a private Institution
or of the State to Increase the number of
operators of land. This condition do-s
not prevail In America, not even about
our great cities, though In the latter case
It cannot bo truthfully said thnt new
corners In an organized field nre cnidlally
welcomed. Oul in llie .ipvn country. i:c
ever, there Is room for the man or woman,
or man, woman and family, willing to In
vest means, time nnd good will In Inten
sive or extensive, specialized or geiveral
farming.
For the unemployed this Is a period of
resting on tho o:irs. F.ivoraht work
weather here In the city mny come sooner
than we can foresee. In this waiting time
of unemployment of wits in tho accus
tomed way there should be opportunity i
for study of new ways of living. .Many j
with city living only as a background ,
might study the outlook lo farming; but
the many who know country and farm
life as a condition of their youth might
with advantage rediscover the "new," the
"scientific" agriculture. A casual study
by some people of Die possibilities of back
yard farming In the commuting zone may
make unnecessary at this time an attempt
to break with work Ideals, flack yard
farming has among other things this In
Its favor, namely. It Is a safer Introduc
tion Into subsistence farming than aie
many other ways of entry.
Most of the valuable printed material
relating to present day fanning In all of
Its phases can be bad for tho asking If
one only knows bow and where to nsk.
Much solid Instruction in regular farm
projects such ns poultry, vegetable, fruit,
dairy anil bng farming Is offered free. A
course of fifteen free public lectures, ac
companied with free conference hours, is
offered by Columbia University cooperat
Inj with the New York Stato Department
of Agriculture. The second lecture, "IIs
(entl.il Factors In I'oultry Management,"
will be given by Mr. ltobert I. Traek,
poultry expert, New York State Depart
ment of Agriculture, on Friday, January
22, nt 4:10 P. M In Hoom 30 j. Seller
merhorn Hall, Columbia Unlvorslty, 116th
street and Broadway. O. S. Moiioan,
Professor of Agriculture.
Nkw Yohk, January 23,
Tho Incomo Tax nml tho Ship Pnrchnso
Illll.
To tub lIoiTon or Tiik Hun Sir;
Kindly accept the gratitude of one Amer
ican citizen for your prompt and vigorous
championship of the right of the peo
ple through your editorial columns.
How vitally necessary lu a time like
tho present la year prompt exposure nf
the latest and most unjust ruling on the
already distorted income tax law
What a feeling of safety follows your
sane and just arraignment of the follies
and the danger to this country's hereto
torn highly honored position among na
tions contained in tho villainous .ship
purchaso bill.
Never in recent years linve the people
at large so badly needed a fearless uud
tireless champion of their rights. Never
In recent yeais have they been compelled
to let go their InBt hope for safe and satio
guidance ot the public interests and just
rights,
The average man to-day Is too hope
lessly disgusted lo raise his voice In pro
test at the Injustlre Imposed upon lilm
from Washington from the fountain brad
of trouble to the majority ixnver of
trouble.
Slay Tilts Sun keep on the watch and
carry on Its good work, looking after
Justice for tho people.1 D. It.
Nkw Yoiik, January 2K.
What Would Five Hollars He Worth?
To thh KniTon or The Sur Mr; If
Mr. Henry Ford should give a Job to
morrow, at !G a day, to every man,
woman and child in theso United btales,
how much buying power would there be
In J5? J. IIkmhht Johnson.
Hai.timorr, January 'lo.
A Iteelpe,
Without your com on etep out doora
And let the cold blow throurh you:
Then Uke some- coffee, hot, with bread,
To ee what good they'll rlo you;
If after that the bread line e-etna
A worthy Institution
Then malt Tub Hin's main orncea
A Utile contribution,
H 5. H.
SAY BUS CO. SERVES.
"TRACTION TRUST"
Lawyers for New Concern Cnl!
Old Lino Sloppup for
InterborouKli.
I'K.NXSYIjVANIA ally
Heasons why the use of motor bn-o ,
New York streets should be extended
a chaigo that tho Fifth Avenue t, , ,
Company Is lilng to enlatgo and . ip,
ate a monopoly that It Tornnilv n. M i
law are set forth In a brief suhui'in-l i ,
the franchise committee of the Ho.i '
Estimate by llalnbrldge t'olbv u'H
lam It WUIcox, as counsel for fie
York Motor litis Company. This oipi,
tlon Is one of several which have its e
the city for franchises.
Until the law was changed so as -n ,.
mil of conivtltlun, largely through
efforts of Maor Oaynor, says tli, I r'
the Fifth avenue company "made no i(t, t
to amplify Its servicn or even to rov. r the
route It was privileged to serve It w i
designed as a sort of rear guard p-o-tcctlon
to the traction combine ugalnn the
contingencies of future surface compel, -tlon
nml it was content to play the pint
of a sleepy sentinel and stop gap for the
lnterborough."
According to the brief the New York
Motor llus Company wants to operate
buses between Fourteenth and 193d
streets, traversing Uroadway and Park
avenue, with the privilege of reachlnx
Fifth avenue from both Uroadway and
Park avenue.
"It Is apparent," says the brief, "that
the Fifth Avenue Coach Company consid
ers that It has an exclusive right to the
use of Fifth avenue. Tills la in fact untrue.
In law it Is unfounded, and from the
standpoint of the public Interest it Is a
claim which Is not for a moment admlsal.
ble. To protect tho monopoly of Fifth
avenue the cry of 'safety' and 'congestion'
lias been raised.'1
Assuming from a remark made at a
recent hearing that the Pennsylvania
Kallroad desires that only the Fifth
Avenue Coach Company shall have access
to the Pennsylvania Station Messrs.
Colby and WUIcox say:
"Not dwelling for a moment upon the
absurdity of a great railroad trying to
isolato Itself fiom contact with the
travelling public, we merely mention tn
passing that there is a very suggestive
interlocking of directors between the
Pennsylvania rial I road and the Inter
borough Hallway Company of this city,
which in turn controls the New York
Transportation Company, which In turn
controls, through stock ownership. tli
Fifth Avenue Coach Company. It is
apiMrently the design of this astute and
somewhat adroit monopoly to apprnpr.a-s
the heart of the motor bus transpoitaiinn
field, while leaving to Its competitors the
empty privilege of spending their capital
and wasting their energies In operating
buses around the unprofitable peril herv
of the rich central district occupied by tne
Fifth Avenue Coach Company "
Hosldentaof lirk avenue have informed
tho Hoard of Kstltriate that thiy don't
want motor buses.
"The Park avenue protest" sjvs tie
brief, "is the centuries old protest nga t
all oliange and Innovation. Thee ex
cellent gentlemen w.ll llnd their pr t "y
enhanced by a bus line on I'arU avei ue "
ATTACKS MAYOR ON SALOONS,
I.raiicur Writes lo (io rrrior VV III
Deuinnil IVnnili'a Itdiiovnl.
The fact that Investigates cmplnjed
by the Anti-Saloon League assert ihev
found "21 violations of tho liquor law n
?17 BaioOltn Mild I ceirtui rtPt.S hCrC !u t
Sunday has prompted William H. Ander
son, State superintendent of the league. o
write a letter to Uov. Whitman asking if
the Governor will outsider a petition 'o
the removal of Police Commls .ner
Woods. Mr. Anderson urges the iov
ernor to Investigate the entire Police De
partment. In bis appeal to the Cinvcrnoi Mr
Anderson takes occasion to criticise Mayor
Mltcbel. He says:
"We do not question the purity of
Manr Mltehers motives, tempered of
course by considerations of political pru
dence. Nobody for an Instant supposes
the Mayor Is currupt. Hut it will be very
hard to convince the average policeman
that It is wrong for him to take money
for permitting saloon keepers to violate
the law when 4ie sees the Chief Executive,
of the city permit the same thing In return
for political consideration. In the las',
analysis there Is no moral difference be
tween the two.
"Of course we understand that the
Mayor dnes not want to advocate anT
proposition that would seem to help the
temperance cnuse, but It Is tmt a question
of what he wants, hut of what Is his dutr
"Tho Mayor claims that he has elimi
nated saloon graft nmong the police Hut
be has done it. If at all, by consenting to
nullification of the law. A saloon keeper
would be foolish to pay the iKillce for the
privilege of violating the excise law when
the Mayor grants that privilege without
payment,"
BRYAN AFTER MORE TREATIES.
Wuntu Additional I.nnd nn .Vicar
sirnnn Cnnnl lloute.
Wabiiivoton, Jan. 2S. Secretary Pryan
explained to callers to-day the position
of the State Department In regard to
claims presented by Costn ftlca, Salvador
and ftumVirns In connection with ha
pending tieaty with Nicaragua. Thlstnraiv
provides that for J3, 000,000 Nicaragua t
to give the I'nlted .Stales an option en
the Nlraragiian Interocennlo canal route
a naval base slto on the Hny of Fonseca
and llig and I.'.ttle Corn Islands
Tho Secretary nald that from the flret
he took the position that he would "
ready to negotiate with them at any t'me
similar treaties providing for the pin
chase by the I'nlted States of nn opii '
on Costa Itlca'n part In the San Jiu"
Itlver canal route and the right to est ah
Hall a naval b.nee In the (lulf of Fotimcj
on the llondtiran and Salvadoran roasts
All three countries, Nicaragua, llondu a'
slid Salvador, have part of their hound
lines on this const line.
It Is understood tliat Costa Hlca 'S pr
pared to accept Secretary Hryans otter
and negotiate a treaty.
Secretary ftryan holds that u is t
part of wiMlotn for the t'nlted Stale a
owner of tho Panama Canal to i-'i
to llself control and uo of the r
uguan canal roup-. Proposals of Kuropeni
combinations to purchase the i ighls to i
Nlcaragllan route have repeatedly caused
("line anxiety beie and have been a "
tlnual cause of agitation In Centra; Am''
lea. These suggestions would end if '
pending treaty were ratified.
Mr, Hryan also legards the niv.il :a"
site and the two inlands which Nicnauja
Is to cede as valuable considerations t ni
the standpoint of tbo t'nlted HUte
CONVICTS HOLD ELECTION.
Sins Mil it Iniiinlr Chooae llrolhrr
hood OUIerra and Judge,
OssiNlKO, N. Y.. Jan. 25. The I 4H
Inmates of King Sing voted to-d.r
executive members of the. ijnlden l: . t
Ilrotberhood and for live trial Judges n o
are to determine all matters pert a S
to vlolatluti of prison rules. The m' R
took pi ice between 8 A.M. and 3 v M
In acenrdanc j with a cintom cM.iIm r '
by Warden Thomas Mott Osborne ' '
names of candidates for the n u' "
committee and trial Judges were not maJ
public.
.1