The Lexington Leader (Lexington, Okla.), Vol. 23, No. 4, Ed. 1 Friday, October 10, 1913 Page: 2 of 8
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LEXINGTON. OKLA., LEADER
HOW TARIFF CHANGES AFFECT THE HOME
Washington.—Following are the changes made by the new tariff
bill In th« rates charged for Imports of
48.5 per pent.
Free after March 1,
1 pound 7 cents.
28 per cent.
25 per cent.
Gallon. 2 cents.
Dozen, 5 cents.
Pound, 6 cents.
Pound, 1 cent.
Barrel, 45 cents.
Pound. 6 cents.
10 per cent.
79.70 per cent.
18.90 per cent
72.90 per cent.
30.90 per cent.
93.90 per cent.
35.70 per cent.
79 per cent.
35 per cent.
Wool dress goods for
women and children
99.7 per cent.
35 per cent.
50 per cent.
30 per cent.
Cotton table damask
•10 per cent.
25 per cent.
Cotton collars and
64 per cent.
30 per cent.
Cotton stockings ....
75 per cent.
40 per cent.
Cotton underwear ....
60 per cent.
30 per cent.
50 per cent.
40 per cent.
40 per cent.
15 per cent.
44 per cent.
20 per cent.
Bu., 25 cents.
Bu., 25 cents.
2 cents apiece.
Beans and lentils
Bu., 45 cents.
25 per cent.
5 per cent.
Nearly all other vege-
15 per cent.
tables. natural state
25 per cent.
Vegetables sliced or
25 per cent.
.40 per cent.
40 per cent.
25 per cent.
Apples, peaches, quin-
ces, plums, and
pears, green or ripe
Edible berries, quart.
Lemons, limes, grape-
fruit, oranges, pound
48.5 per cent.
Free after March 1,
75 cents to $1.
1 yt cents.
43.90 per cent.
Free after Dec. 1.
BE NOTED IN NEW
Bill on Which Special Ses-
sion of Congress Has
* Been Working.
REDUCTIONS IN MANY DUTIES
Average Ad Valorem Rate Is Lower
Than in Either the Payne-Aldrich
or the Wilson-Gorman Law—In-
come-Tax Measure Expected to Add
Over $82,000,000 to the Revenue—
Measures for Collecting It Being
Washington.—The tariff revision
bill. Democratic measure on which the
congreSB has been at work, advanced
to Its last congressional stage when
It came back to the house from the
final conference committee with the
unanimous indorsement of the Demo-
The measure, of course, has both its
friends and enemies. According to
the administration, it carries out
four of the party promises. Tariff re-
form, reduction in the high cost of
living, campaign against the trustB, la
that duties have been taken off of
many trust made article, and the in-
The measure, consequently, has a
larger importance than that of a mere
tariff reform bill, and Its effect must
be widespread, both on business and
Industry, and also in connection with
politics. Democratic leaders are con-
fident that business will suffer no un-
toward effect; that consumers will be
Changes In the Rates.
The bill imposes an average ad
valorem rate of from 27 to 29 per
cent. The average for the present
Aldrlcb law is 40.12 per cent. The
average for the Wilson-Gorman act
was 39.45 per cent.
Duties generally have been reduced
on all of the articles that enter Into
the necessaries of life. Including the
products of the farm as well as manu-
Trust made products In many cases
have been transferred to the free list
or the duties at present imposed have
been substantially reduced
The income tax feature of the bill is
expected to net some $83,000,000. It
Eat Cheese for Meat.
A London physician claims that
cheese is a most important element in
the food of the workmen of that great
city. For centuries Englishmen have
been great beef eaters, and as a con-
sequence their systems have devel-
oped a great need for meaty (proteid)
foods Meat is becoming higher in
price every day. and the poor man
finds himself with the meat appetite,
but not a meat pocketbook The only
way be can save himself Is by taking
to cheese, it is claimed that there is
provision for the highest number. This
slightly decreases the rate of some
fancy weaves and novelty cloth, but
on the greater bulk of cotton cloth the
rats Is not affected. The rateB on
bleached and dyed colored yarns are
increased and on cotton yarns and
cloth made of yarn, from numbers 79
to 99. The rates on handkerchiefs or
mufflers, not hemmed, have been de-
duced from 30 per cent., aB provided
by the house, to 25 per cent.
READY FOR THE INCOME TAX
will call for a tax on net incomes of
unmarried persons of $3,000 and up-
wards and on net Incomes of married
persons living together, where the
wife or husband is dependent, of $4,-
000 and upwards.
Experts' estimates indicate a sur-
plus of $1G,000,000 over all expend
itures at the end of the present fiscal
A rate of 40 per cent. Is Imposed
on stockings and half hose valued at
not more than 70 cents a dozen pairs
For stockings between 70 and $1.20
a dozen pairs a duty of 40 per cent,
was agreed upon.
The conferees eliminated the provi-
sion inserted by the senate denying
entry into the American market of
goods manufactured by children under
14 years of age.
The final agreement provided that
any person employed to collect the in-
come tax may be utilized by the sec-
retary of the treasury In the general
service of the internal revenue bu-
Agricultural Products and Provisions.
Cattle, Bheep and other domestic an-
imals suitable for use as food, wheat
and wheat products and eggs, have
been transferred to the free list. Re-
ductions have been made on oats, but-
ter, beets, frozen eggs, peas, green-
house stock, zante currants, choco-
late and cocoa sweetened and extracts
of meats from the rates provided by
the house. The rates have been in-
creased over those provided by the
house on brokep rice, fish packed In
oil and ground spices. A rate of 20
per cent, ad valorem is placed on
ground spices in addition to the spe-
cific rate provided by the house on
unground. The senate receded from
the reduced rate placed on flaxseed
and Its amendment placing a duty on
bananas. The houBe classification on
lemons and other citrus fruits Is ac-
Papers and Books.
The house rates have been reduced
on common paper, box, boards, papers
partly covered with metal leaf or
gelatine and plain basic papers for
albumenlzing for photographic print-
ing. The rates provided by the house
for surface-coated papers suitable for
covering boxes has been increased
from 35 to 40 per cent. The senate
amendments placing specific rates
graduated according to thickness and
size have been agreed to with several
reductions in the rates provided. The
rates agreed to are approximately
equivalent to the ad valorem rates
provided In the bouse bill. A specific
rate has been placed on lithographic
views of Bcenes and buildings lo-
cated In the United States Instead of
the advalorem rate provided by the
house. This amendment results In an
increase In the rate of duty.
The senate classification of cotton
cloth, according to the average num-
ber of the yarns contained therein,
was accepted, inBtead of the house
bb large an amount of proteid in a half
pound of cheese as there is in a pound
of meat, and It coBts less than one-
fourth as much. In addition to the
proteid matter in cheese there Is a
large amount of fat in it, so here the
workinginan has an excellent substi-
tute for meat, and at a lower cost.
New Use for Labels In the Home.
We are all familiar with the gum-
med label which can be bought in
various sizes, and which is used In
various ways to mark linen and pan-
Messure Will Yield Large Revenue,
According to Those Who Have
Drawn the Bill Up.
Washington. — Treasury experts
have made an estimate that 425,000
citizens will be affected by the pro-
visions of the income tax bill and
that the revenue derived therefrom
will approximate $82,298,000.
This Is the schedule:
$3,000 to $20,000 1 per cent
$20,000 to $50,000 2 per cent
$50,000 to $75,000 3 per cent
$75,000 to $100,000 4 per cent
$100,000 to $250,000 5 per cent
$250,000 to $500,000 6 per cent
More than $500.000 7 per cent
So far as the taxable American Is
concerned, the income tax law Is now
practically In force against him. While
the tariff law in which the law 1b em-
bodied will not be signed until next
week, the first returns do not have to
be made to the internal revenue col-
lectors before March 1, 1914. But when
the returns are made they will cov-
er the Income of citizens from March
1, 1913, to December 31, and the first
payment of tax wHI be for money re-
ceived during this period.
Every single person (citizen or for-
eign resident) whose annual income
exceeds $3,000, and every married per-
|on with an income above $4,000, is
expected to report his or her re-
ceipts In detail to the government
agents March 1 of each year.
To Produce $82,000,000.
The eBtlmate completed Indicates
that the income tax will produce $82,-
298.000 from the 425,000 perBons taxed.
To this will be added the $35,000,000
or more produced by the present cor-
poration tax, which Is continued as
part of the law.
President Wilson, the federal Judges
of the Supreme court now holding of-
fice and employes "of a state or any
political subdivision thereof," are the
only persona specifically exempted
from the tax by the new law. The
president and judges now in office
were made exempt to escape any ques-
tions of the constitutionality of the
law, and their successors in office w ill
be compelled to pay the tax.
First Burden Is on Citizen.
The general public is expected to
give close study to the new law in
(he next few months, as the first bur-
den of the tax payment rests with the
individual citizen, and his failure to
report his income Is punishable by a
It is admitted that when first re-
turns are made many taxable persons
probably will escape.payments, but
with each year the government's lists
of persons with taxable incomes will
be made more nearly complete.
Methods of Collecting Tax.
Two primary methods of collecting
the tax are contained in the law. One
is that the individual return mads by
the citizen; the other the returns by
corporations and other employers who
pay their employes' taxes "at the
source." Under the law as it will be
signed by President Wilson next week,
every large company employing labor
will be compelled to report any regu-
lar salaries It pays in excess of the
$3,000 figures, and will pay the taxes
for Its employes and deduct the tax
from their pay envelopes.
This "payment at the source" will
apply to salaries, rents, interests, roy-
alties, partnership profits and some
other sources of income, and persons
receiving 6uch incomes must be pre-
pared to show that the money has
paid its tax at its source.
In figuring up his net Income for
the taxpayer, the American business
man, arter deducting $3,000 for him-
self, or $4,000, if married, will have
the right to claim the following addi-
Necessary expense of carrying on
business, not including personal, living
or family expenses.
Interest paid out of Indebtedness.
National, state, county, school or
municipal taxes paid within the year.
Trade losses, or storm or fire
losses, not covered by insurance.
Worthless debts charged off during
A reasonable allowance for the de-
preciation of property.
Dividends from companies whose In-
comes have already been taxed.
Interest from state, municipal or
Must be Entire "Net Income."
It is a clear provision of the law.
however, that the taxable person must
make a return to the internal revenue
collector for his entire net income."
and exemptions claimed under the law
must be submitted to the federal offi-
cers for them to determine upon their
reasonableness or legality.
The amount of the income tax. as
finally agreed upon, follows:
From $3,000 to $20,000, 1 per cent.;
from $20,000 io $50,000, 2 per cent.;
from $50,000 to $75,000, 3 per cent.;
frotn $75,000 to $100,000, 4 percent.;
$100,000 to $250,000, 5 per cent,; $250,-
000 to $500,000, 6 per cent.; above
$500,000, 7 per cent.
A single man with an Income of
$25,000, for example, would pay 1 per
cent on $17,000 and 2 per cent on $500,
a total tax of $270. If married, the
first tax of 1 per cent, would apply to
only $16,000 of the income.
Ready to Answer Questions.
The treasury department is prepar-
ing for a flood of questions about the
new income tax, realizing that this
feature of the tariff bill about to be-
come law strikes more intimately at
the tax paying citizen than do * the
indirect taxes collected through the
Representative Cordell Hull of Ten-
nessee, who drew the Income tax pro-
vision of the tariff bill which will soon
become law, made public a detailed
explanation of the tax plan as It will
touch the individual citizen.
"The treasury regulations Boon to
be prepared will make clear to every
taxpayer the requirements of the law
and its application to income derived
from the various kinds of business,"
Mr. Hull said. "Any person who keeps
familiar with his business affairs, dur-
ing the year should have no difficulty
in executing his tax return.
How Tax is Divided.
"The income tax is divided into two
phases, the normal' tax of one per
cent, on the whole income above
$3,000, and the additional tax that be-
gins with an extra one per cent, above
$20,000 and Is graduated to six per
cent, above $500,000. Wherever the
income tax is paid at the source' by a
corporation for its employes or In simi-
lar cases, only the one per cent, nor-
mal tax Is so paid.
"The individual has to pay any a-
ditional tax himself. The provisions
of the law requiring the tax to be
withheld at the source does not take
effect until November 1, 1913.
"For the first yeir the citizen will
make return to the local Internal reve-
nue collector before March 1, 1914,
as to his earnings from March 1, 1913,,
to the end of this year. The collector
will notify him June 1 how much
he owes and the tax must be paid
by June 30. After next year the tax
will apply on the full calendar year.
"If the income of a person is under
$3,000, or if the tax upon same is
withheld ^or payment at the source,
or If the same is to be paid elsewhere
in the United States, affidavit may be
made to Buch fact and thereupon no
return will be required.
Covers Incomes of All Citizens.
"The tax covers all incomes of citi-
zens of the United States, whether liv-
ing here or abroad; those of foreign
ers living in the United States, and
the net incomeB from property owned
or business carried on In the United
States by persons living abroad.
"The net income includes all In-
come from salaries or any compensa
tion for personal services* incomes
from trades, professions, business, or
commerce; from sales or dealings in
personal property or real estate; from
Interest, rent, dividends from securi-
ties; for all business carried on for
"Firms, corporations, and the like
having the handling of Interest, rents,
salaries, or other portions of the In-
come of any citizen are compelled to
I 7 *
Colon, C. Z—II you wish to hear
1 "language," just say "Cucaracha" to
one of the engineers engaged In build-
j iug the central division of the Panama
| Cucaracha in Spanish means a
I cockroach. In the Canal Zone It
means the greatest of the numerous
slides that have made the completion
of the Culebra cut so different and so
expensive. W:hy that slide was named
the cockroach I could not discover.
Certainly even the Panamanian cock-
roach is not so large, and he moves
much more sWlftly.
Before the first French company
qufk operations In 1889 the Cucaracha
began to slide, and it first gave the
Americans trouble in 1905, the second
year of their work on the canal. Be-
tween then and -•jly 1, 1912, nearly
3,000,000 cubic yards of material was
removed from the canal because of
it. The slide had broken nearly 1,900
feet from the axis of the canal, and
covered an area of 47 acres. Last fall
the engineers were congratulating
themselves on having the cockroach
stopped, but in January it started
moving again, and nearly covered the
bottom of the cut.
"What is going to be the cost of
that slide to the United States?" I
asked Colonel Goethals as we stood at
the edge of the Culebra cut and look-
ed across the chasm to where the
steam shovels and hundreds of men
were laboring to -remove the vast
mass of earth and rock.
"Well," the chief engineer replied."our
estimate is that by the time it is all
cleared up it will have required the
expenditure of about $5,000,000 more
than the cut would have cost if the
slide had not occurred. It Is still mov-
ing, and has broken so far back that
Giant Steam Shovel.
now we are shoveling the crest away
from the canal in order to relieve the
pressure from above. Before the move-
ment in January began the excavation
in the cut at that point had been
carried to within 15 feet of 'the canal
bottom. Digging out that 15 feet of
material removed the support of the
Cucaracha, and down it came. If we
deduct the tax for the individual and could have turned In the water and
pay it to the government. The indl-4 taken out the 15 feet with dredges, I
vidua! then will receive a receipt 1 think the pressure of the water vrtiuld
showing he has paid hlB tax."
INCOME TAX EXPECTED TO
YIELD LARGE REVENUE:
FIGURES SHOW THOSE WHO ARE TO BE
$3,000 to $5,0C0
$5,000 to $10,000
$10,000 to $15,000
$15,000 to $20,COO
$20,000 to $25,000
$25,COO to $50.000
$50,000 to $75,OCO
$75,000 to $100.000
$100,000 to $250,000
$250,000 to $500,000
$1,000,000 or above
try shelves, etc. One clever house-
keeper has found a new use for them.
She pastes a small oblong hbel on
the inBide of every bureau or cblffo
pier drawer, at the right or left Bide,
near the front. But first she writes
on them the words "undervsr,"
"stockings" "napkins." "handker-
chiefs," "shirts," or whatever the arti-
cle that belongB In that drawer. If
she Is not there to lay away i.ie
clothes, or if that work Is given to a
| maid, there is no excuse for anything
1 being out of place. And with chil-
dren she says It works excellently, as
they learn to have definite places for
all their little articles.
Psychology of Applause.
"You say my play is bad," said the
"Very bad," replied the manager.
"How do you account for the fact
that a lot of people applaud?"
"Nearly everybody who attends a
theater is either a host or a guest
They applaud in a considerate effort
to keep up each other's spirits."
! have done much to prevent the slide."
! "What of the future?" I asked, "is
1 there any danger of slides occurring
j alter the canal is opened?"
"Absolutely none, 1 believe," he an-
| swered. "When the excavating and
J dynamiting have ceased and the wa-
I ter is in, it will be quite safe. We
i have the slides and breaks mapped
out as far back as there is any indi-
j cation of their extending, and are
j working back to those lines. It is
| merely a matter of persistency and pa-
I tience." «.
"When will the w,ater be let Into
In October," replied Colonel Goe-
thals. "But there will be no celebra-
tion over the event. That one in Jan-
uary, 1915, Is giving us enough worry,
and we don't forget the premature and
ridiculous celebration by Ferdinand de
Lesseps many years ago. We will just
turn the water in—that's all. Then we
can complete the excavation there
with suction dredges, which will do
the work cheaply and rapidly."
"And when will boats be passing
through the canal?"
"That I cannot say, but the sooner
the better, for the operating crews
must be properly trained before that
January celebration. I wouldn't have
an accident occur for anything. If we
cannot have commercial vessels going
through before then, I ehall ask thr
government to send naval vessels
to see the canal opened to commerce
as soon a possible ior it is revenue
1 am after."
Another day I sVtod with Col. D. D.
Gaillard, the engineer of the central
division, outside his office in Empire,
and watched his army laboring in the
cut, the completion of which has
been his biggest task and greatest
glory. Right at our feet a big area
had sunk down 70 feet in a night, and
if there had not been warnings of the
break a wing of the colonel's office
building would have gone down with
it. "We had just time to remove that
wing," said he, "and my office force is
rather nervous now, for there are
three big cracks under the main build-
ing. I expect it, too, will have to be
torn down very soon.
"These slides used to make us rath-
er despondent, for it seemed as if they
never would stop, but the progress
we are making this year has cheered
up the operating forces again, and
we can see the end of the task. The
slide and the break are quite differ-
ent. In the former the earth slides
at an angle down a sloping face of
rock, and in the lattTer the mass sinks
straight down and at the tDttom
bulges out into the channel. Along
both sides of the cut you can see nu-
merous small slides and breaks. Those
are In pockets in the rock waif, and,
annoying as they are, they only need
cleaning out. The Cucaracha started
as a slide and now it is both a slide
and a break.
•incidentally, that cut should be a
great place for geologists. I have
found in it every kind of rock except
granite, and many interesting'fossils
and petrification have been discover-
ed there. In one stratum through
which we cut there were found a great
number of teeth of prehistoric varie-
ties of sharks."
"What is your opinion concerning
the date when the canal will be ready
for commerce?" I asked.
"If I had my say," said the colonel
emphatically, "not a commercial ves-
sel would be allowed in the canal un-
til it is absolutely complete down to
the smallest detail. In some of the
many safety devices were not in op-
eration and an accident should result,
the canal would get a black eye from
which it might not recover for a long
time. Officially, the time for the com-
pletion of the canal is still January
1, 1915. It may be done before that
date, but in March of this year there
was still about $50,000,000 worth of
work ahead of us.
"We who have been digging the
canal and are still here in positions of
responsibility—I mean the members
of the Isthmian canal commission—
are rather fearful concerning that part
of the Adamson bill which permits
the president to dissolve the commis-
sion whenever in his judgment the
canal is near enough to completion.
We feel that it would be extremely
unjust not to allow us to remain 'on
the job' until after the grand formal
opening in January, 1915. It would be
much like permitting a boy to com-
plete his university course, and then
taking him home before he receives
his diploma." ,
And then Colonel Gaillard said some
things about Mr. Taft's efforts to put
Jiito effect that clause last January,
which muBt have made the ex-presi-
dent's ears tingle a bit.
"The Culebra cut is like a three-ring
circus. I don't know which way to
look," said one visitor to the zone.
It is indeed a scene of wonderful ac-
tivity. Giant steam shovels are scat-
tered through it, scooping up enor
mous masses of rock and earth; on
half a dozen tracks on as many dif-
ferent levels snorting and puffing loco-
motives are swiftly drawing loaded or
empty dirt trains; along the ledges
are batteries of Bteam and com-
pressed air drills, making holes for
dynamite; suddenly there is a toot-
tooting of a steam whistle, a hundred
men scurry to shelter, and a dynamite
blast fills the air with sound and dirt
Watching the steam shovels is a fa-
vorite occupation of visitors who ven-
ture down into the Culebra cut, They
seem almost human, and do a vast
amount of work. Their dippers hold
five cubic yards of material, weigh-
ing on an average a little more than
three tons. This spoil is emptied into
cars of several kinds. Flat cars with
one high side are unloaded by plows
that are drawn the length of the train
by cables upon a winding drum. The
ethers are dump cars, the largest of
which are operated by compressed air
from the locomotive. The trains haul
the spell from the cut to dumping
grcunds, which on an average are
about 12 miles distant. Some 18,000.-
000 cubic yards of this material was
I i J
through, so the operating forces can used as filling for the long break*a
get the experience. Anyhow, I want j ter at the Pacific entrance
Here’s what’s next.
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The Lexington Leader (Lexington, Okla.), Vol. 23, No. 4, Ed. 1 Friday, October 10, 1913, newspaper, October 10, 1913; Lexington, Oklahoma. (gateway.okhistory.org/ark:/67531/metadc110591/m1/2/: accessed February 18, 2019), The Gateway to Oklahoma History, gateway.okhistory.org; crediting Oklahoma Historical Society.