The San Bernardino County Sun from San Bernardino, California • Page 12

Sun paper fir Saa fino A Man in the Making Subscription rate: One month, by mall or carrier, 85 cents; one year, by mail or carrier, $10.20. All mail subscriptions must be paid in advance. EDITORIAL Entered at the San Bernardino postoffice for transmission as -class mail matter. Oftice, 466-468 Court Street, San Bernardino, California. Telephone 33.

Private exchange connecting all departments. COMMENT MONDAY, MARCH 3, 1924 PAGE 12 Published daily by and James A. Guthrie. A. Guthrie, managing of Associated Press; Bureau of Circulations.

Registration Is Short MONTH ago, when County Clerk Harry Allison reported that 16,000 citizens of San Bernardino County had registered during January, out of an estimated total of 40,000, we expressed the opinion that the record was a very satisfactory one, for 40 per cent of the voters had already attended to the duty which would make it possible for them to participate in the Presidential primary election. But what a fall there was in February! Instead of another 16,000 voters appearing before the registrars during the month, only 5,000 came, and the total on the first of March is therefore but 21,000, or scarcely more than one-half of the expected total registration, while only one month remains in which to complete the register. If the County Clerk's estimate is accurate, and it is likely to be, 20,000 voters must register before April 5, if we are to have a full and complete registration. If not- folks who do not attend to this important regulation cannot voice a preference as to the Presidential nominee in any party. FEWER BIG INCOMES, AND WHY HERE is to be no more than 25 per cent decrease in the surtaxes paid on big incomes, if we are to take the action of the House of Representatives for it, although of course that will not be the law until the Senate has agreed 'and President Coolidge approved.

But it is interesting to follow the trend of the argument which finally upset the 50 per cent cut proposed by Secretary Mellon and approved by the President. Surtaxes--the tax levied on incomes in addition to the normal tax that smaller incomes must pay, now begin with 1 per cent on $10,000, and are graduated up to 50 per cent on $200,000. Mr. Mellon proposed that these surtaxes be cut in half, making 25 per cent the maximum. The House of Representatives refused to go so far in the reduction, finally cutting surtaxes one-fourth, which makes the maximum for big incomes per cent.

The argument for the big reduction is that wealth finds a way to avoid paying, that it goes into tax exempt securities or hides out in some other way. It is an undisputed fact that the number of big incomes on which taxes are paid has amazingly shrunk. In his New York speech on Lincoln's birthday, before the National Republican Club, President Coolidge stressed the argument, as Experience does not show that the higher rate produces the larger revenue. Experience is all the other way. When the surtax rate on incomes of $300,000 and over was but 10 per cent, the revenue was about the same as it was on 65 cent.

There is no escaping the fact that super the taxation of large incomes is excessive they tend to disappear. In 1916 there were 206 incomes of $1,000,000 or more, Then the high tax rate went into effect. The next year there were only 141, and In 1918 but 67. In 1919 the number declined to In 1920 it fell to 33, and in 1921 it was further reduced to 21. 1 am not making any argument with the man who believes that 55 per cent ought to be taken away from the $1,000,000 income, or 68 per cent from a $5,000,000 income; but when it is considered that in the effort to get these amounts we are rapidly approaching the point of getting nothing at all, sit is necessary to look for a more practical method.

That can be done only by a reduction of the high surtaxes when viewed solely as a revenue proposition to about 25 per cent. If, as the President and Secretary Mellon argue, the high surtax defeats the very purpose for which it was established, there would be no answer. They urge that this slump in million-dollar incomes from 206 in 1916 to 21 in 1921, with other big incomes proportionally disappearing, is wholly to the high surtax. And they say, and all Wall Street and New York financial interests echo it, that these fortunes have gone into tax-exempt securities. Which isn't so.

We have no defense for tax-exempt securities. We think they ought to be prohibited. But for all that, in proportion to our great wealth so small is the total volume of such tax-exempt bonds that less than 7 per cent of large fortunes are so invested. Perhaps other wealthy men would like to buy, but there are not enough to go round. If all this 7 per cent of the big fortunes were sold out of bonds and put back into industry, the effect would be more or less negligible.

The real problem is as to how the other 93 per cent of the great fortunes have been able to dodge. There is an explanation, and it is' the one which was urged particularly by the insurgents or progressives, who think ultimately most of that wealth will be brought to book, and with normal "times," made to pay its surtax. Hence the opposition to such a great reduction. A leader among the independent Republicans is Senator Arthur Capper of Kansas, and in his paper, the Topeka Capital, after conceding the reduction in surtax collected, he makes this explanation of it: The fact remains, however, that the Treasury did collect in 1920 $500.000,000 more taxes from Incomes exceeding $100,000 than in 1992. And it is this fact that constitutes the whole basis of the Mellon plea, The fact also is that 3910 was a banner business year, while 1921 was a year of general business depression in which dividends were unpaid or greatly reduced and losses were enormous.

The American Sugar Company, for instance, and the big peckers lost their entire accumulated pluses. It wealth had learned the trick of escaping exempt securities it had also learned Into tax the tricks of issuing huge quantities of stock THE SUN COMPANY, a partnership, R. C. 1 Harbison Thirtieth year. R.

C. Harbison. editor; James editor; Harry 8. Webster, business manager. Member full leased wire service.

Member of the Audit dividends to escape tax and of picking up forgotten losses since 1913 and obtaining from them deductions in income tax. A single example of the latter was brought out by the Federal Coal Commission in the case of the Lackawanna Company which had coal lands on its books purchased several gencrations ago at a cost of $4.500,000, raised this cost on its books to $100,000,000 as being present value, disposed of lands to a company composed of its own stockholders for $60.000.000 and claimed and obtained from the Treasury a deduction of $40,000,000 corporate income tax. Speculators and others have in this and other ways gone back and computed huge forgotten losses of the last 10 years and obtained income tax deductions the aggregate amount of which has never been calculated. To account for the slump of income taxes in the highest brackets since 1919 up to 1922 the fagtors to be taken into account are escape into tax exempt securities, a decline in dividends from industries hit by the after- -war deflation. the issue of stock dividends and the deduction of losses running 1913.

When these losses stock dividends have back, 10, been absorbed in income tax statements and when business revival comes back to something like the pace of 1919, the only escape of great fortunes, if the high surtax is kept alive, must be in tax exempt securities, which do not afford a pool wide and deep enough to swallow up these fortunes to any considerable degree. It is to be remembered that when the volume of tax exempt securities is sometimes rated at about $30,000,000.000, $20.000.000,000 are included of Liberty bonds, and these bonds are taxable by the surtax and by no other tax whatThe surtaxed fortunes therefore find no escape in $20.000.000,000 Repeal of tax exemption would dispose of the evil complained of but in the clamor for reducing the millionaires' surtaxes one- half, abolishing the exemption of wealth altogether seems to be lost sight of. In other words. even if the high surtax is maintained, with the return of normal business conditions--the East and the Middle West and much of the West have no part in this California boom, and with the last of the losses of other years absorbed and stock dividends distributed, wealth must "come around" and pay the surtax. If that logic is upheld by what happens, we shall see the total of surtax collections increasing rather than diminishing.

We think the reasoning justifies the rejection of the Mellon schedule, and the compromise adopted in the House of Representatives is perhaps just about where it ought to be. UNPARALLELED the issuing of many bond issues 0 bond there is issues. no end, For the particularly stranger California school is within the gates of every town and city and the stranger brings his family along with him and expects us to furnish schools in which to educate his children. Which we do because it is the right thing to do. But Los Angeles announces a new school bond issue that probably surpasses what has been done in any city in America.

It is less than two years, June, 1922, that the neighboring metropolis voted school bonds to the amount of $17,400,000, and we thought that a record, and perhaps it was. But next June 3 the people of Los Angeles will be asked to approve school bonds for We suspect that is the biggest school bond issue ever submitted. If it were all to go into buildings, that money would pay for 366 buildings like the new Harding School, on Street. Doubtless some part of that sum will be used for furniture and equipment, but most of it will go into buildings, and the sum is almost equally divided between high schools and elementary schools. It is the most graphic demonstration of the growth of Los Angeles that has been submitted.

THE COLOR LINE ILL the playwrights and novelists of today solve the problem of race and color? Many have essayed the task. Their works have met popular favor. But today the problem is farther than ever from being solved. As discussed in America the question has dealt mainly with the conflict between the white and black races. Many popular English and Continental European plays and novels have revolved about the barriers between the men and women of white, brown, yellow and black.

The subject is not without world-wide significance and interest. Inter-marriage of the racially opposed has never been countenanced by either whites or the peoples of other color and still American literature and drama are generously endowed with books and plays dealing with this most tense of situations. But the world of art has not alone concerned itself with the Drama and literature reflect the thought of the public. Admitted the problem of race is centuries old, that it is not new to literature, the stage or the moving picture, but all this experience and this precedent were as nought in comparison with that all-revealing episode in New York when a great American dramatist after the greatest difficulty obtained a white actress to play opposite a negro actor in a role requiring the kissing of the negro's hand by the white woman, The race problem is deeper than art and like art is longer than life. OBSERVATIONS Of course too much sunshine makes a desert, but not enough moonshine does the same.

About the time you get over Christmas somebody has a birthday. First saxophone was made in 1846 and the evil hasn't been stopped yet. Who's Who in the Day's News BISHOP ETHELBERT TALBOT DONT PESTER HIM HURRY UP SON YOUR SAMUEL I THINK HE BUCKWHEAT CAKES ARE MUST BE IN LOVE GETTIN' COLD! -THRT BOYS FORP GETTIN' T'BE A REG'LAR HE'S USIN' SCRUBBIN' HIS DUDE WITH HIS AN' IN TOILET NECK AN' EARS! SOAP Worth Passing Along PAINTED LADIES (The recent migration of millions of butterflies, which has attracted the attention, not only of scientific bent but of many others, recalls the delightful bit of verse written by Mrs. Davis and printed in THE SUN almost four years ago. In April, 1920, countless millions of butterflies of the species known as "painted ladies" passed northward over Southern California, in the face of a strong, cold wind.) AIRY FOLK, alert and free; Soft Exquisite and silken and though fragile; be, you Animate and agile; Butterflies, whose endless flight Dazzles and entrances Us, who witness with delight Your ethereal dances; Painted Ladies, frail, who go Wearying not, nor resting- Tell us, if perchance you know- Where and what the questing.

Tell us of the magic lure Drawing like a tether, Holding arrow straight and sure All your ranks together. Of the guide that leads the way-Wise and lion heartedOn and on day after day Through the lanes uncharted. Painted Ladies! you are dumb; Even as we; unknowing Whence or wherefore we are come; Whither we are going. -J. C.

DAVIS. People and Politics INTRODUCING BAINBRIDGE COLBY (Springfield Republican) If a lawyer and former officer is injured politically disclosure that he worked for Mr. after his retirement from Doheny office, is a lawyer and former cabinet officer helped politically by the disclosure that under similar circumstances he refused to work for Mr. Sinclair? Here is Bainbridge Colby, Secretary of State in the last and a half of the Wilson administration, confirming the report that early in 1922 he declined a retainer to represent Sinclair in the Teapot Dome investigation. If a presidential candidate has been lost to the Democratic party, is it not possible that one has been gained? The Democratic President makers may now proceed to scrutinize Mr.

Colby. It will be found, after examination, that Bainbridge Colby was a Republican until 1912, A leading Roosevelt Progressive from 1912 to 1916, and a Wilson Democrat from 1916 to the present time. He probably could not pass an examination by Mr. Bryan on prohibition. As Secretary of State he made a creditable, if not an outstanding, record.

He lives in New York, was born in Missouri and is in his fifty- -fifth year--which seems to be the ideal eage of a presidential candidate. If the Democrats intend up Teapot Dome as their leading issue, there's nothing to prevent Bainbridge Colby from saying "I'm your man." THE EFFECT (Collier's Weekly) Mr. Coolidge and Mr. McAdoo are not charged with corruption or wrongdoing. Yet every competent observer and public man realizes and publicly concedes that chances to be nominated by their respective parties have been materially affected.

The March and April primaries should indicate the drift of the popular They are near at hand and be awaited without any attempt at prophecy. But it may be noted that all the informed comment agrees that the Democratic candidates against McAdoo have improved their position and that Johnson, or some other Republican, will have a better chance against Coolidge. AU REVOIR Hatfield, has vanished with the rain; alluring -but you need not call again; happened your gun went off too quick; the trigger before you'd turned the trick? backward to conjure with the sky: balance when everything looks dry. surely with cash have called your bluff; to it--and promises enough. Are you a farmer, dependent on your hay? And if it fails to feed you do you sell a rainy day? Not many of us, Hatfield, can boast of such a cinch; If coming, or if going, you catch 'em with a.

clinch. Your occupation, Your promise was But tell us how it Did someone pull It seems like turning But mortals lose their Tomorrow we would But Nature beat you So here's your hat, Friend Hatfield; but tell us what's your rush; You'll muddy up your footgear with the dust that's turned to mush; Stay with us till the morrow-and go home in the sun; You did your best to "do" us--but now, it seems, you're done! Highland, March 2, 1924. -WILLIAM M. BRISTOL. The Right Rev.

Ethelbert Talbot, of Bethlehem, who became the presiding bishop of the Protestant Episcopal church United States of America "following the death Right Rev. Alexunder Charles Garrett, bishop of he Episcopal Diocese of Dallas, is the last member of the House of Bishops who will occupy this, the higbest office in the Episcopal church, by succession. With the next triennial general convention of the Episcopal church, which will be held in New Orleans, in October, 1925, the office will become elective. This new legislation was passed at the triennial at Detroit, in 1919, but the canon was worded so that it would not go into effect during the lifetime of the Right Rev. Dantel Sylvester Tuttle, of St.

Louis, who had been the presiding bishop for many years. Bishop Talbot did not expect to become the presiding bishop, as the Right Rev. Edwin Gardner Weed, bishop of Florida, was the next in seniority of consecration. But Bishop Weed died a few weeks ago. The general convention changed the office from one of succession to one of election because it had long been found that to place such heavy burdens upon the shoulders of the naturally oldest bishops in point of years was more than it was right to ask them to bear.

The office carries no salary. Bishop Talbot is known for his love of outdoor life and sports. lie has been bishop of Bethlehem 26 years. For 11 years before that he was missionary bishop of Idaho and Wyoming, and his life is intimately woven with those carly days of the pioneers. It is said that there were few things he enjoyed so much as a.

buffalo hunt. The bishop has written a book on mile other People of books the are Plains." "A Among Bishop Among His Flock," "Tim--the Autobiography Dog" and Bishop's Message." One of the accomplishments of Bishop Talbot in lehem was the building and equipping of a dormitory for students in Lehigh University who are preparing to enter. Episcopal priesthood. Bishop Talbot was born in Fay. ette, Mo.

He was educated in Dartmouth College and the Gencral Episcopal Theological Seminary in New York. Timely Views on World Topics PACIFIC POSSESSIONS OF U. S. AND CANAL MAKE IT SECOND WORLD POWER, SAYS TRIPP "France is very are now in excess thus the low price actually heiping her general situation, 20 Years Ago (From THE SUN, March 3, 1901) Investigation to decide whether Reed Smoot, of Utah, is to retain his seat in United States the Sen- ate and incidentally define political status of the Mormon church was formally begun yesterday before the committee on privileges and elections. Forecast for today Is cloudy.

Rain is badly needed, although the showers of February aided the situation to some extent. There was no rain until which carried more than .27 of an inch, and that was back in September. Appraisers have awarded the county $5,985.20 for loss on the county hospital, which burned two weeks ago. The trial of Will Boxall, scheduled for today, may be postponed. There are now considerably more than 11,000 people in San Bernardino, postoffice figures indicate.

The number of patrons served by the six carriers is 9,015, boxes supply mail to 1,000, average number of patrons of the general delivery 500. The postoffice estimate is 265 people in the city. The carriers are W. J. Borland, N.

Wilson, W. R. Garner, L. D. Palmer, H.

C. Pease, R. B. Whitham. Phil D.

Swing, of San Bernardino, has been selected in the preliminary tryouts for the Stanford debating team. He argued on the negative of the question: "Resolved, that labor unions in the United States are detrimental to the interests of labor." John Blake, of Kramer, was acquitted by a jury on the charge of intent to kill the Santa Fe agent at that place. A Smile or Two A PICK- -UP COMPANION Nabb and Blabb were on their way home from a late party when it occurred simultaneously to each of them that they were both a little befuddled and that they had a pair of wives who would not be patient if their condition was noticeable. So after a brief discussion they arranged for reciprocal inspection. "I'll s-stand' here," Nabb, "and you walk street and I'll tell you if you're all ri'.

See?" Blabb started bravely away, then stopped and called back. "Howzatt?" 'S fine." applauded Nabb. "but whozatt with Beach Press. HELPFUL HINT Tearful Lady--I've come to tell you, sergeant, that I've missed me husband again for a fortnight, Desk Sergeant -Well, perhaps if ye took a few lessons ye'd be able to throw straighter Bulletin. Sun Spots Mr.

Doheny's money talks too -Dallas News. It might be worse. Patriots frisk the treasury at times, but none leases (Ore.) Guard. Dear lady, it may be brutal to shoot little rabbits, but sealskin coats must be provided in some -Marion Star. The hard part is to love your neighbor as your Repository.

busy. Her of her imports, of the franc is to improve her reports Guy E. Tripp, chair a the board of Westinghous Electric, who has returned from a round the world trip. "England is not out of her difficulties, her employment probbeing serious. Labor gov.

ernment, though complacently ac. cepted by most VAR GUYE TRIPP English is, apparently inherently unstable, men, and if Premier Macdonald is not suffiradical he will likely be deciently, by his own while if he does become there are enough Conservatives left in land to force him out. "The immense potential strength of the British empire is, however, a factor of the highest importance. Great Britain controls practically every strategic point in the great trade belt passing through' the Mediterranean and encircling Asia. Among these points are Gibraltar, Malta, the Suez Canal, India, Straits Settlements, Singapore and Hong Kong.

As long as she retains these outposts her position as the leading world power can hardly be jeopardized by difficulties at home. "Incidentally, the United States, possessing Manila, the Philippines, Hawaii and the Panama Canal, ranks second as a world power. "But behind every phase of the individual and commercial situation in Europe lies Germany. She possesses unequaled industrial resourees, both as to physical plant and trained men, and she will quickly place herself in position to challenge the leadership of any other nation just as soon as she can free herself from her present difficulties. "In the Far East Japan is an outstanding figure.

She alone of all the Orientai nations needs no extensive help from Europe a10 America. Though the destruction caused by the carthquake was enormous, it was not an unmixed evil. The destroyed cities will be rebuilt on a very much better scale and the buildings will be as proof against earthquakes as it is possible to make them. The Japanese are doing the reconstructional work themselves, and the technical and tinanexperience thus gained will undoubtedly be worth the price to this, progressive and energetic nation. "In the Philippines, China, India and other Asiatic there are prospects for induscountries, trial development, but generally speaking, it will be done by Europeans, Americans and Japanese.

There is, apparently, no racial desire for improvement and progress as we understand these words. "China is a conspicuous example of the Oriental tendency to resist Occidental ideas. If the accounts of Marco Polo, who traveled through China in about A. D. 1300, are to be believed.

China is no further advanced toward our standard today than she was 1,000 years ago." The Safety Valve Valve CALLING FOR FIRE PROTECTION To the Editor of THE SUN: In the interest of the city of San Bernardino as a whole and particularly in the the owners of property north of Base interested Line, I desire to call your attention the deplorable lack of 1 fire protection in that district. I do not refer to the lack of water pressure. that being a condition only demonstrated at recent fires to need comment at this time, and which will be remedied by the passage of the Devil Canyon water bonds, but do refer to the absolute need of a fire station located somewhere close to Highland Avenue and prefcrably between and Streets. With hundreds of thousands of dollars' worth of new buildings each year, we must remember that our responsibility increases accordingly, and that while fire insurance is 3. necessity, it is not EL preventative.

Furthermore, if we do not increase our fire fighting facilities, it will be but a short time until we are penalized by the Board of Fire Underwriters with higher rates for not doing so (this happened in Fresno), in which case we would pay more in increased insurance premiums than the new fire station would cost. -five thousand dollars would more than cover the entire cost of this protection, including lot, building and equipment, such as one 500-gallon pump, 2,000 feet of hose and about 15 fire boxes, including wiring and installation. Maintenance cost would consist almost entirely of the salarics of three firemen at $110 each per month. Now I want it thoroughly understood that I have no ulterior motive in this project, not having a dollar's worth of property in that part of the city, and being in the insurance business, my income would naturally increase if the rates were raised. But it is high time that this dangerous condition be corrected, and the only way to correct it is to bring it to the attention of the people now, before a conflagration, such as Berkeley had, brings it smashingly home to us.

Thanking you for this space and any effort you may see fit to put forth editorially in behalf of better fire protection for San Bernardino, I am, Very truly yours, FRANK H. SMITH. San Bernardino, March 1, 1921. Current Comment BUST THE BREAD TRUST (Kansas Kansan) And now comes one Basil Manly, head of the so-called people's legislative service, with the startling statement that there is in existence in this country today 3 "bread trust" which, it is claimed, has rob. bed the people of $1,000.000 a day since the war and subsequent decline in wheat prices.

The report, which was made to Sen. Robert M. LaFollette, is startling only in that summarizes the investigation of actual figures, thus justifying a suspicion which has gained circulation among grocers and housewives throughout the country. It is 3. simple matter of elementary mathematics to draw the conclusion that a decline an wheat prices should be accompanied by a corresponding decline in the price of bread.

Yet there are figures which are even more significant: The General Baking Co. made 117 per cent on cach share of during the year 1922 and even City than that the following year. English bread, made from American flour, is selling for 4 and 5 cents fl pound loaf in England, as compared with 9 cents in this country. There are other figures, but they only serve to support the general charge. 'So Congress is asked to look into the situation.

Here is a condition which is intolerable. Bread, a common necessity of the poorest classes, is being sold for twice what it should bring. The bakers have no argument in the statement that it took some time for adjustment between wheat prices and bread prices to take place. There have been three good years for that, and the adjustment is still to come. In truth, it looks very much as though Mr.

Manly were correct in his deductions. At any rate, the problem calls for action. It's rather discouraging. As the world more civilized, bondstocking companies do a better business. -Associated Editors (Chicago)..