The sun. [volume], February 24, 1918, Page 5, Image 5

About The sun. [volume] (New York [N.Y.]) 1916-1920

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PRIMER TO EXPLAIN
EXCESS PROFITS TAX
Internal Revenue- Ilurcnu Be
gins Publication of a
Series of Letters.
31AXV INSTANCES CITKD
Guide for Corporations nntl In
dividuals Gives Specific
Details of Method.
Sprctal timpatrh to Tn Svx.
Washington, Feb. 23. An excess
proflM primer giving Instructions In
quMlnn nnd answer form on Intricate
questions under the excess prorltn ta of
the war revenue act Is being prepared by
tho Internal revenuo bureau tt Is to
be l.Miert In Instalments to Collectors of
Internal Revenue and their deputies for
guidance In deciding knotty problems.
"Explanatory letters" will be sent out
from time to tlmo for a month or more
until thn excess profits tax law and Its
applications are generally understood.
The first letter gives an outline of some
of the main features of the tax. Ques
tions and answers follow In two subse
quent letters already prepared. Kefer
ence to "articles" and "sections" aro ar
ticles and sections of the act. The first
tf the letters follows:
l.KTTEH NO. 1.
The tax applies only to trade or busi
ness. In the ase of a corporation or part-,
r.ershlp no difficulty la encountered, since
the law expressly provides (Section 201)
that all Its Income from whatever source
derived h:rll be deemed to be received
from such trade or business. In this
ease there Is "one business, ono net In
come and one tax."
In the case of an Individual, however,
the excess profits tax applies only to
that part of the net Income which Is de
rived from the taxpayer's 'trade, busi
ness, profession or Occupation, even
though the taxpayer may have other In
come, subject to tho ordinary Income tax.
Illustration of what constitutes business
In the case of an indlvlouat will be given
In ihn course of this series. (Itead Ar
ticle 8.)
Hovr the Tax Falls.
It 1s an Income tax In addition to the
regular Income tax of September 8,
1?16, as amended, and the war Income
tax of October 3, 1917. It is more than a
ta on "war profits" ; It reports all In
come In excess of a stipulated normal
deduction. The tax falls Into two
classes : '
(A). A graduated tax with rates ris
ing from 20 to 60 per cent, upon the net
Income In excess of a deduction equal to
a percentage (varying from 7 to 9 per
cent. upon the invested capital plus
So. 000 In the case of an Individual or
partnership or J3.0OO In the case of a
corporation. Foreign corporations or
partnerships and non-resident allet.3 are
not entitled to the specific deductions of
tSnno or $fi,000 respectively.
An exceedingly Important substitute
divi!on under Class A consists of those
cases In which the invested capital or
the ret Income for the prewar period
cannot be satisfactorily determined. In
turn cases the assessment is based
largely upon conditions or relations ex
isting among representative business con
cerns in a like or similar trade or busl-
n"s'. (Head Sections 205 and 210 of the
Uw and Articles IS, 24 and 02 of llegu-!
la'fons No. 41.)
(H) An 8 per cent, tax Imposed by
fee'lon 209 upon trailc or businesses
having no invested capital or merely a
nominal capital I. e., doctors, lawyers
ami professional or salaried persons In
general. Domestic corporations under
this section are allowed a specific deduc
tion of 13.000: domestic partnerships
sr.d citizens or residents a specific de
!u-tcn of $6,000 (se Articles 71-74 of
Regulations No. 41).
Taxation of Individual.
In the case of a corporation or part
r.errhlp all of Its Income will be held
to he of the same class as the Income
from Its principal trade or business.
There Is one InVomc nnd one tax (Ar
ticV 11).
In the raso of an Individual there may
te income subject tn the 8 per cent, rate
and Income subject to the graduated
rates, in which case there will be two dc-dm-tionh
and two taxes, but not more
than two. (See Articles 35 and 36.)
In ceneral the taxpayer cannot decide
for himself whether he 1 subject to the
per cent, tax or tho graduated tax, but
mtit fill out the ordinary form so far
as possible In order that the Department
may decide Into which class he properly
falls, Exception, however, is made in
tho case of Individuals whose Income
consists wholly of salary or the earnings
of personal service and who employ no
Invested capital in their trade or busl.
nes In such cases the excess profits
ta will be computed from the data on
the Income tax return form 1040.
LETTER XO. 2.
This letter deals with the definition
ef business In the case of Individuals.
The following general principles hould
be iporne in mind.
I V) An Individual may be engngeal
In more than one business. If the busl
r are both of the same class only
cne deduction Is illowpd. If one Is
subject to the 8 per cent, tax (Section
SOU, whereas the other Is subject to the
graduated rates (Section 201), two de
ductions may bo claimed, but where
two classes of Income arc derived from
th" panic business the entire income
nlll be taxed as a unit at the graduated
ruttvs if thero Is more than a nominal
n-nount of Invested capital or otherwise
' per cent.
MS) An Individual may have more
th in one occupation or business. It Is
lnm,hift for a man to glv sufficient time,
!"-ntion and capital tn the pursuit of
l fferent lines of business to constitute
I'.on- than one nenue of "business or
trade or employment" his business or
tradu (I'ar. 210, Itegulatlons No. 33),
In Cases of Ooabt.
'"") Mnke a summary answer In
rfeihi'ul enses where f-e Inclusion of n-
ome would result In the. Inclusion of a
Cf.T pundlng amount of Invested capital
("it no appreciable difference In thn tax
uM result whether the doubtful In
."!.! be Included or not.
1 A H, an attorney, bought a houso
"'"I lot In June, 1!U7. receiving rent
375 F"th Ave.
During alterations
H Tpmnirnrilv lnrntorl
I
Mourning I
Uouis
1 1 377 (id joining building)
llokton Copley Bq.
front It until October, 1J17, and then
qld It at K profit Does ho pay on
rt'iitali and the profit?
An attorney whose business Is of a
purely personal service naturo Is taxable
at per cent, under section J09, He
might buy real estate for Investment
and later sell It at a considerable profit
but this being an Isolated transaction
and not a business the Income and ivoflta
therefrom would not be subject to excess
profits tax. He would be entitled to one
deduction of M.ooo.
2. A lawyer with considerable Income
from his practice receives fees as direc
tor In two banks nnd an Insurance com
pany. Are such fees taxable?
Itegular service as a director con
stitutes an occupation or business nnd
tho fees therefrom nlong wltk the regular
Income of the lawyer from his practice
are taxable at 8 per cent, under section
209 with one deduction of (6,0001
In he Case of a Rented Farm.
3. A landlord renting a large farm
on shares which requires considerable
attention employs an ngent to look after
his Interest, see that the farm buildings
are kept In good repair, collect and
market his share of tho crops, &c. Is
the rental taxable?
Yes, at the graduated rates. The
landlord Is engaged In business with
respect to the farm and the fact that
he employs an agent to look after his
bu.'lners does not relieve htm from the
tax nor entitle him to the 8 per cent,
rate.
4. John Smith owns and operates n
dry goods store. He nlso owns Bnd oper
ates a shoe store. Is he allowed to re
port these businesses separately, with a
separate deduction for each? ,
No : the rule is that there may be one
deduction for a business with no In
vested capital or merely a nominal capi
tal (personal service) and another de
duction for an unrelated business having
Invested capital, but there may not be
more than one deduction for businesses
taxed under Section 201' or for busi
nesses taxed under Section" 209.
0 Interrelated Business.
5. A contractor nndlealer In real es
tato also lists property owned by others
and does business as a real estate agent
or broker. How Is he taxed?
These activities are so Interrelated as
to constitute one business. If the Indi
vidual employs In this real estate busi
ness a considerable amount of capital he
Is taxable at the graduated rates under
section 201.
6. 1 am a doctor and also manage
and direct a small factory which I own.
How am I taxed? '
You will pay i tax of 8 per cent, on
the fees from your medical practice
under Section 209 and a graduated tax
on the Income from your factory. Under
Section 209 you will get a deduction
of $6,000 ; under Section 201 a specific
deduction of 1G.000 plus n percentage
deduction of from 7 to 9 per cent, on
tho capital Invested In the factory.
LETTHR XO, 3.
This tetter 'contains additional Illus
trations of what constitutes ''trade or
business, but deals principally with those
who are Bubject to the tax and how r
turns are to be made In certain doubtful
oases. In connection with the present
letter read particularly articles 10 to 24
of regulations No. 41. The numbers are
In consecutive order continuing the ques
tions In previous letters.
7. A school teacher buys a farm upon
which oil Is discovered and sells the
farm at a large profit. Is such profit
subject to excess profits tax?
Not unless the teacher Is also a farmer
or buys nrftl sells real estate with suffi
cient frequency to make ths latter ona
of his occupations. The teacher may
have an occupation or business other
than teaching, the profits from which
would be taxable ; but If he buys a farm
simply as an Isolated investment and
does not run It the profits from Its sale
would not be subject to the tax (see
the answer to question 8).
' In Case of Factory Sale.
S A manufacturer who has been In
business for many years sells his fac
tory at a considerable profit. Is such
profit subject to excess profits tax'
Yes, because the profit In this and sim
ilar cases is a normal and usual result
of winding up the business : it Is part
of the buslrless. On the other hand if
the manufacturer had bought a farm
and sold It at a protlt the profit would
not If the transaction were Isolated t
be taxable? I'rorit from an Isolated
transaction oueslde of his business Is j
not taxable. I'roflt from an Isolated
transaction connected with his business
Is taxable.
9. A partnership makes $80,000, one
fourth of which is paid to a special or
silent partner who takes no real part
In the conduct of the business. Is the
partnership taxable with respwt to the
$20,000 paid to the silent partner?
Yes, thu partnership Is engaged In
business and taxable upon Its entire net
Income. However, no member of the
partnership as an Individual Is subject
to excess profits tax on his share of
the partnership profits (read article
41).
"Massachnsetts Trust" Included.
10 Is a "Massachusetts Trust" 'uxed
as a corporation or partnership?
As a corporation the term "corpora
tion" Includes joint stock companies or
franklin 5imon & Co.
A Store of Individual Shops
Fifth Av?Due, 37th nd 38th Sts.
JUST RECEIVED
PARIS MILLINERY
FROM THE FOREMOST
MODISTES OF PARIS
Including Original Models from
Jeanne Lanvin Odette
Maison Lewi
Louison
Caroline Reboux
Maria Guy
Evelyne Varon
Pari. Millinery
associations no matter how created or
organized (article 2).
11 A corporation has bean making
income tax returns on tie basis of a
fiscal year rudlng June 30. Nt Income,
for the last six months of 1916 was
$1,000,000. The losses for the first six
monthsiof 1917 wero $400,000. Is there
any taxable lncomo subject to excess
profits tax for the year 19177
Yes. Tho profits for the full fiscal
year were $600,000. One-half of the fiscal
year falling tn the calendar year 1917
tho corporation will be taxable on a
proportionate amount. The corporation
should make a return for the full fiscal
year, compute the tax that would ordi
narily be due for an entire year and
then take a proportionate part (In this
case one-half) as the tax to be paid
(read article 19).
In Cases of Partnership.
12. A partnership was established and
began operations August 1, 1917. The
cnpltnl Invested was $300,000 and the net
lncomo for the five remaining months of
1917 was $600,000. What Is the tax?
As tho net Income covers only five
twelfths of a year the deduction and
tho Invested capital must be brought to
the .tamo basis. Five-twelfths of the
tot'il deduction for a full years Is $12,
600. (The percentage deduction for a
full year would be $24,000 and the spe
cific deduction would be $6.t00, a total
of $30,000. Five-twelfths of the last
figure Is $12,500.) Klve-t Alfths of the
total Investment capital Is $125,000. Thus
In this case the tax would bo computed
on the basis of an Invested capital of
$125,000. net lncomo of $60,000 and a
total deduction of $12,500. The tax
would be $20,730.
Concerning- Half Vear Proflts.
13. A corporation organized July 1,
1917, makes $2,400 In the last half of
that year. It Is required to make re
turn and pay excess profits tax?
Yes. A corporation engaged In busi
ness for only a part of the year must
make return If Its net Income Is at the
rate of $3,000 or more per nnnum. A
similar rule applies to an Individual or
liart.nrrshlp engaged In buslners for
only part of the taxable year. A return
must lie made and the excess profits tax
paid If the net Income for the taxable
year Is at the rate of $6,000 or more.
(This answer does not apply in the case
of a corporation or partnership whose
first fiscal year ends In 1918 and which
has secured permission to make Its re
turn on the basis of Its fiscal year.)
14. A corporation had a net Income
of $10,000 in 1911, $8,000 In 1912 nnd
a loss of $2,000 tn 1913. What Is the
"average amount of the annual net In
come to the trade or business during the
pre-war period" for the purpose of
determining the percentage deduction?
Six thousand dollars ($18,000 divided
by 3), The loss of $2,000 Is disregarded
Inasmuch as the income tax law does
not permit the loss of one year to af
fect or reduce the profit of another ear.
BOYS ASK WHITMAN
TO SPARE CHAPMAN
Chicago Brotherhood Com
mittee CalU Upon Governor.
Sptciat lletpatth to Tim Sin.
Chicago, Feb. 23. Living up to its
motto "So long ns there are boys In
trouble we too nre In trouble" a com
mittee appointed by' the Boys Brother
hood Republic presented Itself to-day
before Gov. Whitman of New York at
the Biackstone Hotel In an effort to save
the life of Paul Chapman, tho sixteen-year-old
Brooklyn choirboy sentenced to
die tn the electric chair.
There was no sign of bashfulness
about the delegation. None fingered his
hat brim or "swallowed a suspicious
lump." If anybody was embarrassed it
was the Governor.
Gov. Whitman was alone In his suite
when the boys entered. He shook
hands with each as they -looked up at
him. trying to read his mind. He lis
tened gravely and attenteivly when their
mission was explained to him and his
countenance took on a look that sug
gests deep thought Suddenly, after
what seemed hours to the pleaders, the
Governor said :
"The case Is before the Court of Ap
peals right now, and when It comes to
ine I shall remember you boys. I am
Interested In boys myself and am glad
to have met you."
IEJG0YEN TO SEE SANFUENTES,
South American Presidents to Talk
Over Closer Union.
Buenos Ayreh, Feb. 23. According to
reports current here President Sunfuen
tes of Chile plans to make a trip to
southern Chile at the same time that
Dr. Hlppqllto Irigoen, the President of
Argentina, visit Patagonia, and both
are expected to confer at Punta Arenas,
a Chilean town on the Strait of Ma
gellan. The Argentine Congress has
v.ited to grant President Irlgoycn leave
to make the trip.
It Is believed the conference will be
In accord with Dr. Irlgoyen's efforts to
achieve a Closer union of the South
American republics. Both Presidents,
It Is said, will go to the Strait of Ma
gellan In warships.
Camille Roger
Jeanne Due
Lucie Hamar
Suzanne Talbot
Rose Deseat
Shop Foarth, Floor
THE SUN, SUNDAY,
'GRADUATE' SEAMEN
ARE READY TO SAIL
Shipping Honrd Training Ship
Hero With Fifty Experts
in 410 Enrolled.
SEA LEGS ACQUIRED SOON
Wholesale Recruiting Started
In Effort to Man the Grow
ing U. S. Merchant Marine.
The first contingent of men specially
trained for scr0co In the new mcrchnnt
marlnO reached this city yesterday
aboard the United States Shipping
Board trnlnlng ship Calvin Austin, now
at pier 42, North IUver. The vessel, a
steel stenmshlp of 3,000 tons, is one of n
number engaged In turning landlubbers
Into able seamen.
The vessel brought 410 enrolled ap
prentices on her cruise from Eojton, but
only fifty are "graduates" men ready
for Immediate service. The latter will
be landed here and nsslgned to mcr
chnnt crews. The others will continue
with the ship until such time as they,
too, aro proficient.
As early ns last June tho Shipping
Board established training schools for
officers In tho dock nnd engine depart
ment, drawing on experienced seamen,
and now It has ptartod a wholesale re
cruiting and training for tho Inexpe
rienced In order to till n void created by
the expansion of the merchnnt marine
and the normal scarcity In this country
of genuine able seamen.
Inspection of the Ship.
Commissioner Charles R. Page, a
member of the board from California,
and Henry Howard of Boston, director
of recruiting for the Shipping Hoard,
visited the ship at her berth jesterday
afternoon, made a rapid Inspection nnd
hurried to the offices of the Shipping
Board tn the Custom House, taking
Capt. Kemp with them. They were ar
ranging to revlctual and Bupply the ves
sel. It was explained.
Meanwhile lCdward C. Hovey, Jr.,
chief of the Shipping Board Sea Service
Bureau, having run over from Boston.
was arranging to place the fifty qualified
men. These men, by arrangement with
Gon. Crowder, receive a deferred clas
sification In the draft so long as they
rrmaln In the merchant marine service.
Men training in the squadron, which
Includes the steamship Governor Dlngley
and the former army transport Meade,
qualify for sailors, firemen, oilers, coal
passers, water tenders, cooks and stew
ards. The teaching appears to have borne
good fruit. In one end of the ship were
some likely young men who seemed to
have found their sea legs and the knnck
of enjoying themselves III rather erampea
quarters. One group was clustered
about an old piano ; several others
played games In tho mess hall, and still
others did "bunk fatigue." the final test
of a good sailor or soldier In the opinion
of old soldiers.
First Relief Ship In Halifax.
The Austin wnn th first relief ship
to reach Halifax after the disaster, hav
ing been lent to the Massachusetts-Halifax
Belief Committee by the Shipping
Board a day afler she was taken over
by the latter. She, with her sisters of
the training squadron, will train 25,000
men for the merchnnt mirlne If the
plans of the Shipping Board carry
through.
Extraordinary safeguard" now being
thrown about piers are being demon
Mratfd In the case of the Austin. Kven
the ship's oltlcers are required to obtain
passes before leaving the pier
The Shipping Board glVs credit for
the training plan to Mr Howard, general
mnnager of the Merrlmac Chemical
Company, and a member of the Council
of National Defence. It Is described by
Commissioner Page as "a great work
which alms to train young Americans
between 21 and 30 for a service now
fully as in dispensable as that of bear
ing arms1
yranblin Simon & Co.
Fifth Avenue, 37th and 38th Sts.
Women's Thread Silk Hose
Black, white, gray, brown or
shades to match shoes or kowis.
3 pairs for $2.65 Special
Women's Thread Silk Hose
Black, white, brown, bronze,
castor or champagne; double
heel, toe, garter top.
Heretofore 1.50
3 pairs for
Women's Lisle or Cotton Hose
Black or white lisle, or cotton
(full fashioned); double heel,
toe and garter top.
Heretofore .50
6 pairs 'for
Men's
Lisle or Cotton Sox
Lisle Sox in black, white, tan,
gray or navy; also cotton sox
with linen heel and toe.
Heretofore .30 pair
6 pairs for $1.20
FEBRUARY 24, 1918.
FLYNN MAT REENTER SERVICE.
Former Chief Finds Government
Work to ne Fascinating.
Sptdal Vf patch to Tin Sex.
Ci.kvki.anp, Feb. 23. W. J, Flynn, for
merly Chief of the Secret Service, to-day
made It clear that the fascination of
secret service work may cause him to
reenter It.
"It seems strange now not to be wor
rying about what some man is doing in
San Francisco or another Is doing In
Chicago,," Mild Flynn. "After a while I
may go back Into the Government ser
vice. . plan is on foot to unite seven
or eight Intelligence branches into one.
If this Is done I may get Into the game
again."
Speaking of German plotting In Amer
ica he said : "They're clumsy und didn't
gel away wit much." Flynn Is visit
ing Capt. John IC. Wnrher, In chhrge of
the Cleveland Secret Service.
FAILURE OF RUSSIA
LAID TO KEREKSKY
George Kcnnnn Says If hinders
of Erstwhile Dictator Aro
Incredible.
George Kennan, explorer and writer,
student of Itussla for half a century,
said In his lecture a Carnegie Hall yes
terday that Itussla'a demoralization is
due to the astonishing weaknem and
tho encrcdlble blunders of Alexander
Kcrcnsky.
"Tho great mistake made by tho Pro
visional Government." said Mr. Ken
nan, "was In compromising with the
Bolshevlkl Instead of tlgntlng them. The
Council of Soldiers' and Workmen Del
egates should have been squelched at the
very beginning, Instead of being per
mitted to thrive and to acquire control
of the affairs of a great nation whoso
population Is "0 per cent. Illiterate. The
rank and file of the Uusslan army were
loyal to the newly established Govern
ment, nnd the peasant class looked up
to Rerensky and his associates as the
saviors of the nation.
"But Kerensky," continued Mr. Ken
nan, "made the Incredible mistake of
'bowing to the Will of those represented
by -I.enlne and Trotrky, and the still
greater mistake of Imprisoning Gen.
Kornlloff who, at the head of tho loyal
clement of the army, was marching to
ward Petrograd for the purpose of put
ting a stop to tho murderous activities
of the Bolshevlkl."
But the smashup In Itussla is due,
primarily, to the Socialistic propaganda
which has been furthered by German
emissaries In Pertograd, Moscow and
other largp centres, Mr. Kennan thinks.
"While tho Germans were making
every effort to throttle Socialism within
their own borders." he said, "they were
employing such tjpfs of radicals as Ue
nlne and Trotzky to spread the doc
trine among tho soldiers and workmen of
Hufsla. It s Impossible to democratize
a people by turning everything bottom
side up, but this Is the method which
tnlne and Trotzky adopted In order to
bring about the freedom of the Russian
people. The slogan of T.and, Peace and
Liberty' was adopted and ngents of the
German Government travelled broadcast
In th land preaching the doctrines of
Socialism, although this doctrine had
been harmed In their own fatherland.
Demagogues, Idealists and dTcamers
were permitted by the Provisional Gov
ernment to address the Bussian troops.
The result was exactly what had been
anticipated by the German Government.
The provisional assemblies were abol
lhd. The property of the well to do
class was confiscated. The courts were
marie up of lll'teraie peasants and sol
diers who know nstfclng of law and
took special delight In punishing persons
I they regarded as their natural enemies,
and the whole fabric of government and
I order nent to pieces."
Mr. Kennm admitted that the future
of Itussla was too much for him to
I tiredlct.
"I do believe," he said, "that the fu-
ture of' Itussla rests entirely upon the
' fortune of the allied armies. The ltus-
slan people are Incapable of governing
I themselve". There Is hope In the fact
I that there ire millions of Ituslans like
j th Don Cossacks, who are opposed to
pence terms with Germanv and who
would constitute an agcres'-lve force If
they were led by sincere men nnd were
I not dominated by the agents of the
' German Government."
Announce for Monday
ANNUAL HOSIERY SALE
At Greatly Reduced Prices
WE GUARANTEE 1HE WEAR OF ALL SILK HOSIERY
Our Annual Sale provides an unusual opportunity
to purchase high class Hosiery at before-War prices.
.90
Heretofore
pair
$3.35
1.15
Women's Silk Lisle Hose
Of superior quality silk lisle full
fashioned) in black, white, tan,
brown, taupe, castor or cham
pagne. Heretofore .55 and .65 pair
6 pairs for $2.65
pair
$2.15
.37
Lisle, Cotton or Silk
Pure Silk Sox
Extra quality pure thread silk
sox, in black or white; extra
strong heel, sole and toe.
Heretofore .75 pair
3 pairs for $1.45
.21
SLOVAKS WOULD
DISMEMBER AUSTRIA
"Down With Hnpsbnrgs" Is
Slogan in National Con
vention. 130,000 WITH FRENCH
Recruiting In America for
Czechs Slovak Army Is
Steadily Progressing.
Tho closing sefslon of the Slovak
national convention was held yesterday
at the Bohemian National Hall, 32S
East Seventy-third street, the morning
moetlng being devoted almost entirely
to the election of officers for the ensu
ing year and to the discussion of plans.
During the afternoon session several
resolutions were adopted on to the policy
to be followed by tho Czecho-Slovak
citizens with respect to the conduct of
the war. It waa also moved that a
cablegram of greetings sent to the
Czecho-Slovak troops, of which there are
130,000 fighting with fho French army,
Capt. 7.. Flcrllnger. formerly of the
Bussian General Staff and later of the
Czecho-Slovak army In nussla, told of
the progress of recruiting mow for this
army In America. He said that there
was scarcely a steamer that sailed for
Franco that did not have recruits for
the army. "In fact, only to-day aoout
120 men have sailed to fight against
Austria-Hungary," ho said. On hearing
this announcement the entire audience
rose and sang "Kto Za Pravdu Horl,"
the Slovak national air. This same song
Is used In tho trenches to locate Czecho
slovak troops In tho opposed trenches.
Charles Pergter. director of the Slav
Press Bureau of this city, addressed
the assembly on tho political aspects
which govern their participation In the
war. He said that Instead of conquer
ing Austria and federalizing It the na
tion must lie dismembered. "If the
Allies don't accomplish this wo will."
said Mr. Pergler. With reference to
enlistments In the army he said, "It U
tho duty of all our people to Join the
Czecho-Slovak army In France In m far
as It can be consistently done with re
gard to American laws."
As to the war alms ho said, "While
wo are really one of the Allies and we
do not expect to be disappointed bj
them, Wo still rely on our own strength
and upon our revolutionary army. Bui
whatever we do, we must always In
consistent with American alms." He In
timated, however, that If a peace were
to be declared between the Allies and
the Central Powers that did not provide
for the Czecho-Slovak people they would
continue to fight until they had achieved
their alms.
Mrs. Milan Getting made an Interest
ing report of the work of the woman's
auxiliary organization, telling of the
sweaters and other knitted things that
are hing made. SIih spoke of the
bandages and other hospital supplies
which have been made and rent to the
ltd Cross and to the Czecho-Slavok
army, nnd In this report was embodied
the work that la being done for the
wives and dependents of men who have
volunteered to fight for the cause.
The keynote of the whole session was
struck yesterday when the slogan of the
i convention was used by one of the
speakers. "Down with the Hapsburgs"
i the main Idea of the organization, and
In accomplishing this end the whole body
of Czechs nnd Slovaks In this country
are bending their entire energies.
ItrrelTr a Gold Cap.
Joseph E. Schwab, a brother of
i Cliarles M. Schwab, at a party given In
i honor of his fiftieth birthday at the Hotel
I McAlpIn last evening, receled a gold cup
from the employees of the Duquesue
I Steel Company Among those present
Iwere Mr. nnd Mrs. John Walker Green
lee. John Walker Gu-enlee, Jr, .Mr nnd
I Mrs. John Eckel of Philadelphia, Mr. nnd
Mrs. II B Smith of New York, Mr. nnd
(Mrs. J Judson Wynne and Chester B.
Croft.
Women's Emb'd Silk Hose
Pure thread silk, in black, white,
bronze or pink; self-embroidered. c
3 pairs for $3.35 Special l.lf)
Hand Emb'd Glox Silk Hose
In black or white, with self or
contrasting color; plain or
.novelty clox.
$1.75 to $2.00 pair
5 1.45
3 pairs for $4.2s
.45
Sox
.55
CANADIAN LEADERS
DISCUSS WAR AIMS
Republican Club Told Ameri
can Revolution Was Real
Godsend to Britain.
DRAFT IDEA CALLED BEST
"Mod Kaiser" Is Compared to
England's Mad King Who
Ruled l iO Years Ago.
I.oss of the Thirteen Colonies by Eng
land In the Revolutionary War has been
shown since to have been tho greatest
good fortune of the British Umpire,
said Sir Fdmund Wnlker, head of the
Bank of Commerce of Toronto, and one
of Cnnnda's lending war spirit", In
peaVIng yesterday at the Ilubllcan
Club. 64 West Fortieth strcit. Among
tho other speakers wero Sir Robert Fal
coner, preldent or the University of
Toronto: Sir' William Mulock, Jurist,
nnd the Rev. Allan SlacRossle.
"The United States has slnco become
the inc.t advarced democracy In the
world," Sir Fdmund said In continuing,
"and Is now holding aloft the bright
beam of freedom of tho human race
In the struggle that has convulsed the
world.
"Canada Is held to Kngland by a
silken thread nnd the bonds of blood.
Our men rushed to the colors when they
wero in danger, but England could not
have niado us fight unless we chr-e.
The InvH'lon of the country of the Bel
gians aroused tho Canadians, and their
entry Into the war, with that of other
overseas countries of the British Em
pire, Is one of the brightest pages in
the history of that Government."
Mention of the princess Patricia regi
ment by tho speaker the most ro
nowned of the Canadian regiments
brought ringing cheers from tho audi
tors. "That regiment was raised In seven
teen days," ho continued, "and was one
of the units on the thirty-two transports
which landed at Plymouth from Canada
during the first two months nnd ten
days, of tho war.
FnTors Army Draft System.
"Since then 435.000 men have vol
unteered for service In Canada, and
others have been drafted to take the
place of thof-e who have fallen. The
truly democratic way of raising an
army Is by draft.
"The places of men In factories have
been taken by 4.000 women, who have
turnwl out hundreds of thousands of
shells which must bo true within one
tenth of an Inch In a flight of twenty-
two seconds. At the start of the war
the Canadian Imports exceeded exports
by $310,000,000. Ist year thn export
exceeded the Imports by J3 15,000,000
or a change of 1055,000,000 in four
years.
"The slogan of Canada is that "Wo
must stand behind the boys we have
sent to the front. Talk of peace tintil
German uggrewslon Is destroyed Is fool
Ish and wicked. The comforting thing
In our Canadian democracy Is tho com
parative case with which we have made
OS
PALM BEACH SHOP
OPPOSITC
HOV. POlNCIANA
(Sorted
"THE PARIS
PRESENTING
or
.Iprui
INCLUDING
GOWNS WRAPS TA I LORMADES
CAFES COATS BLOUSES
SPORTS APPAREL
HATS and LIGHTWEIGHT FURS
5,
valorous soldiers of our civilians to com
bat this menace. In getting these men
to the front we are Indebted tofllhe
British navy, which hns moved 13,t)00,-
000 soldiers slnco the war started 'with
the loss of 9.000,
Theso nations which are now allied
against military aggression should band
Ihcmselves together after this war to
fo-ce peace In the future. If they' Inter
locked themselves, It Is for them to say
that the rest of the- world shall have
peace,"
Unlrrraltr Sends 4.200 to War.
Sir Robert Falconer spoko feelingly
of the 4,200 graduates and undergradu
ates who hnvo gone from the Univer
sity of Toronto Into the war.
The British empire Js an Institution,
drawn together nnd held together by
moral forces nnd principles," ho said.
"It stands for the clvlllznttoti thatihns
come to us through a thousand years,
nnd for the rule of mor.il force through
out the world rather than military dic
tation." Ho paid tribute to the enunciation of
principles of peace by President Wilson
and Premier l.loyd George and said that
In their general content each has said
the same thing.
Sir William Mulock, First Chief Jus
tlve of the Province of Ontario, de
clared that the mad Kaiser of Germany
to-day Is similar to the mad king of
England 140 years ngo.
"The Canadian and American people,
1 believe, will always live In cordial
bonds of peace with each other," ho said.
"Tho llb-rty which the Am-rtcan people
fought for 140 years ago Is the liberty
of Canada to-day, and dear to all nations
throughout the world "
FINED $50 FOR BEING IDLE.
Maryland's Compnlsory Work Law
Grips' a Sorlnl Favorite.
fpeeiat littpatek to Tins Sis.
HALnMoHK, Feb. 23, Charged with
falling to comply with the requirements
of tho compulsory work law Richard B.
Clark, 30, son of the late It. H, Clark,
grain dealer, and known In social circles
In New York and Philadelphia, was
fined $50 und costs by Magistrate
Johannsen to-day.
Clark produced a letter which stated
that ho was employed as a Solicitor for
a life Insurance company but It failed
to satisfy the Magistrate. Clark was
before the Magistrate several weeks ago
and his case was postponed. Work then
was procured for him through the Stuto
Compulsory Work Board but In a short
tlmo Clark gave It up on the plea that
It was too hard.
Magistrate Johannsen decided that a
position ns Insurance solicitor does not
meet the requirements of the law.
4TH PHYSICIAN IN DRUG NET.
11 .Melt, Xnw Held I mlrr Hearr
Ball ns Nnrentlo Venders.
A fourth physician was arrested yes
terday In the drive which Federal and
police otlicers uro making ngulnst physi
cians and pharmacists alleged to have
been violating the Harrison antl-narcotlo
law. The now prisoner Is Dr. John
Corlsh. nssociale of Dr. Ira E. Iloolh of
204 West 124th street, who was ar
rested Thursday. Commissioner Hitch
cock held him In $15,000 ball. Being
unable tn furnish this sum ho went to
the Tombs.
Before Dr. Corish's nirest Ben A.
Matthews, Assistant United States At
torney, liad caused the ten members of
the alleged drug selling band who were
taKen in rnursciay night s raid to be
held In ball aggregating $110,000.
WASHINOTON
CINCINNATI
OliUUTH
SHOP Or AMERICA"
uce
Uiob
menca
Summer
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