anaheim-gazette 1918-03-28

THE FARMER AND THE INCOME TAX LAW COLLECTOR CARTER GIVES A LUCID EXPLANATION OF THE GROWERS' PROFITS ABSTRACT OF LATEST RULING MADE BY COMMISSIONER OF INTERNAL REVENUE The following is the latest ruling received by the internal revenue collector at Los Angeles from the commissioner of internal revenue relating to the operation of the income tax law as concerns farmers. The term "farm" as herein used embraces the farm in the ordinarily accepted sense and includes plantations, ranches, stock farms, dairy farm, poultry farms, fruit farms, truck farms, and all land used for similar purposes, and for the purposes of this decision all corporations, partnerships or individuals who cultivate, operate or manage such farms for gain or profit either as owners, or tenants are designated as "farmers." All gains, profits and income derived from the sale or exchange of farm products, whether produced on the farm or purchased and resold by the whether purchased for resale or produced on the farm, as such losses will be reflected in the inventory by reducing the amount of live stock or products on hand at the close of the year. Live stock purchased for draft, breeding or dairy purposes, or for any purpose other than resale, may be included in the inventory for each year at a figure which will reflect the reduction in value estimated to have occurred during the year through increase of age or other causes. Such a reduction in value should be based on the cost and estimated life of the live stock. In the case of the loss of such live stock no deduction can be made, as this loss will be reflected in the inventory at the end of the year. Where the inventory method is used, the cost price of the article sold must be taken as an additional deduction in the return of income as it is reflected in the inventory. In view of the foregoing, all corporations, partnerships, and individuals engaged in the live stock or farming business, which do not keep books of account and ascertain their gross income by inventory should prepare their returns of annual net income on the basis of actual receipts and disbursements in order that their returns of income may be susceptible of audit for the purposes of verification. Treasury Decision 2433 contains additional information relative to the rendering of returns of income by corporations keeping books in accordance with standard systems of accounting, or in conformity with the requirements of some federal, state or municipal authority, having supervision over such corporations. The foregoing relates only to income derived from the operation of a farm and has no relation to the gain or profit which may result from the er. Since then other suit until the pigs prominence as well throughout the entire Besides conserving the marine feasts, the pigs cscraps and garb much disagreeable the island "ranch 1000 fine young p According to the France, the marin adopting pigs and "kitchen police." FARM PRICE Gross Value of V Farms in 1917 E Do Following the law of 1910, the United States of agriculture has value of the wealth in 1917 to be $19, divided into a total for all crops and final products and farms and slaughter totals as these, even present gross value regarded as fabulous. The census total on farms is $4,700,000,000 for 1900 for 1909, and 1915 is $10,800,000 being dollars of product are factors, production hence, as gauges of of the agriculture above or below tha In the ordinary many years must fore the products All gains, profits and income derived from the sale or exchange of farm products, whether produced on the farm or purchased and resold by the farmer, shall be included in the return of income for the year in which the products were actually marketed and sold. All items of expense connected with the planting, cultivating, harvesting and marketing of a crop, or the care, feeding and marketing of live stock may be claimed as deductions only in return rendered for the year during which such expenditures were made. This ruling applies even though the crops or stock in connection with which the expenses were incurred may not have been sold or exchanged for money or a money equivalent during the year for which the return is rendered. That portion of Treasury Decision 2153 and paragraph 32 of regulations No. 33 (Revised) which provides "Cost of stock purchased for resale is an allowable deduction under the item of expense" is hereby annulled. It is held that the amount expended in purchasing stock for resale is an investment of capital and is not to be taken as an item of expense for the year in which the stock was purchased, or for any subsequent year; but when the stock so purchased is sold its cost is to be deducted from the sales price in ascertaining the amount of gain or profit returnable for tax purposes. Where the cost of stock or farm products purchased in 1916, or any previous year, for resale, or the expense of producing stock or products on the farm, has been claimed as a deduction or taken into consideration in ascertaining the farmer's liability to income tax for some years prior to 1917, and the stock or farm products so purchased or produced were sold during the latter year, the entire proceeds of the sale are to be returned as income for the year in which the sale was made, for the reason that the farmer, having once received the benefit of the deduction, is not again entitled to it. If however, such cost or expense had not been claimed as a deduction, or had not been taken in addition to other information relative to the rendering of returns of income by corporations keeping books in accordance with standard systems of accounting, or in conformity with the requirements of some federal, state or municipal authority, having supervision over such corporations. The foregoing relates only to income derived from the operation of a farm and has no relation to the gain or profit which may result from the sale of the farm. Where a farmer exchanges farm produce for merchandise, groceries or mill products, the market value of the article or product received in exchange is to be returned as income. A farmer is not required to include in his income tax return the value of the farm produce consumed by himself and family. WEEK FIXED FOR SQUIRREL EXTERMINATION Governor Offers Prizes for Schools Sending In Most Tails That squirrel eradication week is to be strongly urged throughout California is the word brought back from the convention of county horticultural commissioners at Fresno by County Horticultural commissioner Earl L. Morris. Throughout the state a concerted fight is to be made on squirrels for the week commencing April 29. A great deal of poisoning has been done already, but there is lots more to be done. "It was declared at the convention," said Morris, "that squirrels do $30,000,000 damage every year in California. Squirrels can be gotten rid of in any section that goes after them and keeps after them." The plan for squirrel eradication week includes a campaign through the schools of the state. Gov. Stephens has offered $50 first prize, $30 second prize and $20 third prize for the school that kills the most squirrels. Tails of squirrels that are killed must be saved and presented in each county to the horticultural commissioner. While Orange county has been waging a fight against the squirrel for several months past and while it is believed that three-fourths of the little pests have been killed in that time there remain enough squirrels in some sections to warrant the entry of a number of schools into the contest. In the ordinary many years' muscels forethe products of the stupendous age of 1917. The pear from 1889 to 1900; from 1899 to 1914; from 1899 to 1915; at the average increase for the 1938 would the gross reached, computed 1915. Mainly due since 1915, the participation by 21 years. In the continuous tending back 21 years with a declining value of farm products with the preceding year was one with year that hardly ceding one was one with cotton was denied. By the end of 1917 farm products were plane of 1914, whisper per cent above; value of farm products 000,000, a gain o lars over either. Then followed prices of farm weighted index for principal crops in 56 per cent above though crop percent less, the total production was per cent above 1914 year at that time. The performa wealth product large though it cursor of 1917. per cent above abaove 1915, and this enormous fact that is 12- Hence it is that $13,611,000,000 gross value of taxation of 1917, and the total of all p Caution is given of agriculture in ascertainting the farmer's liability to income tax for some years prior to 1917, and the stock or farm products so purchased or produced were sold during the latter year, the entire proceeds of the sale are to be returned as income for the year in which the sale was made, for the reason that the farmer, having once received the benefit of the deduction, is not again entitled to it. If however, such cost or expense had not been claimed as a deduction, or had not been taken into consideration in ascertainting the farmer's liability to income tax for a previous year, the amount of such cost or expense may be deducted from the selling price of the stock or farm products and the difference only returned as income. Farmers who keep books according to some approved method of accounting which clearly shows the net income and take annual inventories, may, if the same method is consistently followed from year to year, prepare their returns in accordance with the showing made by the books and inventories. If the inventory method is adopted the farmer should, in order to ascertain gross income, add to the amount received from sales made during the year the inventory of the live stock and products on hand at the close of the year and from this sum deduct the amount expended in purchasing live stock and products plus the inventory of the live stock and products at the beginning of the year. The inventory at the beginning of a tax year must be the same figure as at the close of the next preceding year and must include the cost price of live stock or products purchased for resale, and may include the live stock and products produced on the farm and still on hand. Where gross income is ascertained by inventories, no deduction can be made for live stock or products lost during the year, SNOWBALL DANCE FOR SEAL BEACH The annual Snowball dance to be given under the auspices of the chhumber of commerce Tuesday, April 2, is an established institution that is looked forward to by everybody in Seal Beach and for many miles around. The whole community is cooperating to make it a bigger success than ever before. The making and placing of 78,000 snowflakes in the pavilion where the ball will be given is a mere detail in what will be a wonderfully realistic production, to which the famous Seal Beach scintillators, will lend added splendor. To make possible an actual battle of the snowballs a large quantity of specially prepared snow will be brought from Chicago and many other novel features are being planned. CULTIVATING PIGS Probably no cantonment in the country is conserving more food than is that of the United States marines at Paris, S. C., through the raising of pigs. The movement started some months ago when several rookies purchased a litter of pigs from a Georgia farm- ANAHEIM GAZETTE FARM PRODUCTION Gross Value of Wealth Produced on Farms in 1917 Exceeds 19 Billion Dollars Following the items of the census of 1910, the United States department of agriculture has estimated the gross value of the wealth produced on farms in 1917 to be $19,444,000,000. This is divided into a total of $13,611,000,000 for all crops and $5,833,000,000 for animal products and animals sold off farms and slaughtered on farms. Such totals as these, even though they represent gross values, would have been regarded as fabulous before 1916. The census total of wealth production on farms is $2,500,000,000 for 1889, $4,700,000,000 for 1899, and $8,600,000,000 for 1909, and the estimate for 1915 is $10,800,000,000. These numbers being dollars and not quantities of product are the resultant of two factors: production and price, and hence, as gauges of the productiveness of the agricultural industry, may be above or below the fact. In the ordinary course of events, many years must have elapsed before the products of farms would reach New Orleans on their southern course, carrying with them 80 families, or 365 men, women and children in all. One of the ships carrying about 100 of the party, was bound for a port in Mexico, and the other had Brazil as its objective. Word came, however, to the first ship that trouble might await them in Mexico. The unhappy Maximilian, the short lived emperor, had just been shot by the Mexicans under Jaurez after their victory at Queretaro, and grave dangers were to be feared from the disordered state of affairs. The ship accordingly changed is course and started in pursuit of its sister ship. One of the vessels was shortly afterward wrecked off the coast of Cuba; thereupon all the passengers were transferred to the surviving ship and the course was set for South America. It was on the 22 day of April, 1867, that these homeseekers landed at the friendly port of Rio de Janeiro, considering themselves fortunate in having reached land shelter in safety. The Brazilian government welcomed them and gave them free a large tract of land on which they founded a town that they called Xirica. But as this region proved to be malarial at certain seasons of the year, a council was held of all the families and the unanimous decision was reached to transfer the settlement in toto to a new site. This new location was finally selected 1QO miles north of the city of Sao Paulo. Accordingly the great migration to the northward was begun. It strongly resembled a trek of the Boers for lumbering ox-teams were used to haul the belongings, the men walking most of the distance. After many hardships they succeeded in reaching the beautiful tract that was to be their new home. In a spirit of thankfulness, they christened their new settlement Villa Americana, or to RUBBER ROOFING, 2-ply H.&H. $1.75 GIBBS LUMBER East Broadway ANAHEIM CAL. Tausch, leader of the Anaheim band, will render "The Holy City" in a cornet solo and will also assist in the music of the occasion. Judge Thomas of Santa Ana will deliver an address. The entire program is in the hands of Mrs. Emma J. Seamans, who conceived the plan a year ago and who has been working since then to the end now in preparation. This is not in any sense a denominational affair but a community effort to which the entire community and people everywhere are cordially invited. Park site is easily available and machines can be driven right to the place of meeting. THIS IS LABOR'S WAR This is labor's war. No element of the people of this country, or of other countries, would suffer more than the workers from a German victory—a German peace. What the Germans mean by a "strong peace," a "German peace," was recently expressed by Gen. Von Liebert, a leading Prussian conservative. "For us there is but one principle to be followed, and we recognize no other. We hold that might is right. We must know neither sentiment, humanity, consideration, nor compassion. We must have Belgium and the north." In the ordinary course of events, many years must have elapsed before the products of farms would reach the stupendous aggregate gross value of 1917. The average increase per pear from 1889 to 1899 was $226,000;000; from 1899 to 1909, $384,000,000; from 1909 to 1915, $370,000,000; and from 1899 to 1915, 16 years, $379,000,000. At the average annual rate of increase for the 16 years, not until 1938 would the gros svalue of 1917 be reached, computed as an increase over 1915. Mainly due to increase of price since 1915, the calendar has been anticipated by 21 years. In the continuous annual record, extending back 21 years, 1911 is the only year with a decline in total gross value of farm products when compared with the preceding year, and that year was one with low production. A year that hardly exceeded the preceding one was 1914, when the price of cotton was demoralized by the war. By the end of 1915 the prices of most farm products were still nearly on the plane of 1914, wit h crop production 7 per cent above; and the total gross value of farm production was $10,775,000,000, a gain of nearly a billion dollars over either 1913 or 1914. Then followed a rapid ascent of prices of farm products, and the weighted index for the prices of principal crops in December, 1916, was 56 per cent above 1915, so that, although crop production was 14 per cent less, the total gross value of farm production was $13,406,000,000, or 25 per cent above 1915, itself the topmost year at that time. The performance of 1916 in farm wealth production, unprecedentedly large though it was, was a puny precursor of 1917. The price index is 35 per cent above 1916 and 111 per cent abaove 1915, and complicated with this enormous factor is a crop production that is 12 per cent above 1916. Hence it is that the grand aggregate of $13,611,000,000 is reached as the gross value of the farm crop production of 1917, and of $19,444,000,000 as the total of all production. Caution is given by the department of agriculture against accepting this new site. This new location was finally selected 1QO miles north of the city of Sao Paulo. Accordingly the great migration to the northward was begun. It strongly resembled a trek of the Boers for lumbering ox-teams were used to haul the belongings, the men walking most of the distance. After many hardships they succeeded in reaching the beautiful tract that was to be their new home. In a spirit of thankfulness, they christened their new settlement Villa Americana, or to put it plainly, American Village. Here they found themselves at an elevation of about 3000 feet above sea level. Although they were only 25 deg. south of the equator, yet the elevation made the climate ideal. There is no extremely warm weather, and on the other hand there is no frost. All through the summer months one may sleep under a blanket. The exiled Americans might have taken up coffee culture, but they didn’t. They followed instead the lines to which they had been accustomed in the states. Thus they planted their fields of cane and cotton, and of course they raised their own tobacco. At first they did not believe that they would be able to raise any rice, but they made experiments and found that they could make a success of growing upland rice. They found that they could plow the land, sow the rice as wheat is sown, and harvest the crop in the same manner. The average rainfall throughout the state of Sao Paulo is 45 inches per year, as compared with 32 inches for the United States. Although they have been highly successful in reproducing on the gently rolling plains of Brazil the cane and cotton fields of our own Southern states, their greatest success has come in the growing of watermelons. Villa Americana has built up a reputation for this luscious fruit. Under the mellow skies of Brazil the juicy melons ripen in real luxuriousness. The finished product is a jolly fat fellow that may tip the scales at 75 lbs. From this progressive settlement are shipped every year more than 2000 carloads of watermelons to tickle the palates of the Brazilians. Good roads, good churches, good schools, good citizenship—these are the four big things on which this transplanted colony has been built. Many of the 80 original families have died out, some have returned, but those who have remained or survived are working out their own future in a strange land in a manner that is rich workers from a German victory—a German peace. What the Germans mean by a "strong peace," a "German peace," was recently expressed by Gen. Von Llebert, a leading Prussian conservative. "For us there is but one principle to be followed, and we recognize no other. We hold that might is right. We must know neither sentiment, humanity, consideration, nor compassion. We must have Belgium and the north of France. France must be made to pay until she is bled white. We must have a strong peace." Mr. Gompers spoke well for American labor when he said, "The republic of the United States is not perfect; it has the imperfections of the human—but it is the best country on the face of the earth, and those who do not love it enough to work for it, to fight for it, to die for it, are not worthy of the privilege of living in it." "I say to the kaiser, I say to the Germans, in the name of the American labor movement: You can't talk peace with the American workers; you can't talk peace with us; you can't talk to us at all now. We are fighting now. Either you smash your kaiser autocracy or we will smash it for you." The workingmen of America have a tremendous interest to serve, a vital cause to defend, a work of surpassing importance to accomplish. What is vital to them is vital to America and to the world. That they see their duty and the great mass of them are performing it with unimpeachable loyalty is a cause for congratulation to the nation and to the world. SUNDAY SCHOOL CONVENTION The annual convention of the Anaheim district Sunday School association will be held at the Brea Christian church, Friday evening and Saturday April 12 and 13. Live topics and practical speakers will be on the program. The monthly meeting will be held in the Anaheim Methodist church, March 24th, at 3 p.m. It will be an adult conference in charge of adult Superintendent, O. W. Lillel of Fullerton. There will be no set program, but each superintendent is urged to be present and take part, and bring at least five adult workers. CHEAPEST EGGS FROM PULLETS large though it was, was a puny precursor of 1917. The price index is 35 per cent above 1916 and 111 per cent above 1915, and complicated with this enormous factor is a crop production that is 12 per cent above 1916. Hence it is that the grand aggregate of $13,611,000,000 is reached as the gross value of the farm crop production of 1917, and of $19,444,000,000 as the total of all production. Caution is given by the department of agriculture against accepting this total of $19,444,000,000 as the amount of the farmers' cash income, and also against regarding it as a net income. There are duplications and triplications of value and also omitted items; cost of production must be considered, and certainly for 1916 and 1917, a soaring cost has complicated the problem. It is a gross income in a vague, undefinable, intangible sense, which can not be reduced to a net income, nor net wealth production, by any process. SOUTHERNERS, SELF EXILED, FOUND COLONY IN BRAZIL Travelers in Brazil will be surprised to find 100 miles due north of the city of Sao Paulo a prosperous colony whose members came fifty years ago from Georgia and Alabama, bringing with them all that they possessed. It is a strange story, this tale of the wanderings of these self exiled southernners, and shows what determined men and women will do to found new homes and get a fresh start in life. The reconstruction days that followed at the end of the Civil War were days of suffering and privation for these southern planters. They longed for a chance to get a new start in life where the climate was like that in their own beloved South. It was with high hopes, therefore, that the two ships struck out from DATE OF ENTRAINMENT Dates for the entrainment of Californians called in the special draft movement to begin March 29 and continue over a five day period, are announced by Adj-Gen. Borree. The men have been ordered to Camp Lewis, Tacoma, Washington. Dates on which the quotas of Southern California exemption boards are to move follow: Friday, March 29—Imperial county, local board No. 1; Orange county Nos. 1 and 2; Riverside county Nos. 1, 2 and 3; San Diego county No. 1; San Diego city Nos. 1 and 2; Los Angeles city Nos. 14, 15 and 16. SUNRISE SERVICE Yorba Linda is to enjoy one of the greatest Easter gatherings in California—a sunrise meeting on Linda Vista Park Hill, which is the big reservoir site. The meeting is to begin promptly at 6 o'clock Easter morning. There will be solo singing by Miss Azella Stein of Los Angeles, one of the ablest pupils of Madame Phoebe Ava White. Miss Stein is preparing for grand opera work, and the preparation is nearly completed. Frank CHEAPEST EGGS FROM PULLETS Feed to produce one dozen eggs cost 10 cents with pullets, 14 cents with two years old hens, and 19 cents with three year old hens in a three year feeding test conducted by poultrymen of the United States department of agriculture. These were the cost figures of feed at the time of the experiment, which begin in 1912, and must be corrected to present prices. ENEMY AGENTS ACTIVE IN EVERY SECTION Attempts Being Made to Create Factual Fights and Discord Adopting tactics which will create the maximum amount of discord between various factions and people, enemy agents are active in practically every part of the United States, according to a warning received by the California state council of defense from authorities in Washington. Factional disputes and the dissemination of reports which will tend to create friction between any two factions in different districts of the country is now the chief activity of enemy agents, according to Washington advices. Here are some of the alleged activities of German agents: On the Pacific coast every effort is being made to stir up trouble and bad OFFICE PHONES HOME 753-1 SUNSET 341-J. Res. 125 E. Broadway, Cor. Claudina RESIDENCE PHONES PACIFIC 341-M HOME 753-2 J. W. TRUXAW, M. D. PHYSICIAN AND SURGEON HOURS 11-12; 2-4; 7-8 GERMAN AMERICAN BANK BLDG. Cor. Center and Los Angeles Sts. ANAHEIM, CAL. J.C.Osher,D.D.S.,M.D. PHYSICIAN AND SURGEON EYE, EAR, NOSE AND THROAT—ORAL SURGERY—GLASSES FITTED SUITE 1 CENTRAL BLDG. PHONE SUNSET 337 Hours: Sunset Phones 10 to -12 Office 569-J 2 to 5 Res. 569-M Dr. John P. Brastad PHYSICIAN and SURGEON EYE, EAR, NOSE, THROAT, LUNGS SCIENTIFIC FITTING OF GLASSES Office Suites 3 and 4 ODD FELLOWS BLDG. Anaheim, Cal. Dr. G. A. Neth General Drugless Practitioner SUITE 4, CASSOU BLDG., ANAHEIM Our treatments are especially advantageous for alliments of the Nerves and pains in the muscles and joints. Acute or chronic diseases of the various organs often yield with surprising alacrity to our modalities. Fees reasonable. feeling between Americans and Japanese. All along the Mexican border, efforts are being made to create fried... Our treatments are especially advantageous for alliments of the Nerves and pains in the muscles and joints. Acute or chronic diseases of the various organs often yield with surprising alacrity to our modalities. Fees reasonable. feeling between Americans and Japanese. All along the Mexican border, efforts are being made to create friction between Mexican residents and Americans. In southern states German agents have been apprehended in their activities to create bitter feeling between negroes and white people. In many parts of the United States a well formulated campaign, working through churches, is being made to set Protestant against Catholics. An attempt is being made to show that the Catholics are obtaining control of the government in Protestant territory, while in sections where Catholics dominate stories are going out to the effect that the Catholics are being discriminated against. In every industrial center no opportunity is being lost to build up friction between capital and labor. In addition to the foregoing, through the medium of stories circulated broadcast every possible effort is being made to discredit the Red Cross and to stimulate criticism and discord governmental officials in the handling of the national war problem. MORE BEANS, PEAS, PEANUTS As important features of its supplementary program for feeding the nation, its armies and the allies, the United States department of agriculture recommends that great attention be paid to the production of beans, peas, and peanuts. On these subjects the program states: The production of beans and peas which they are adapted, because of their high food value, keeping qualities, and availability for domestic or export trade. Soy beans and peanuts should be increased in order to supplement beans and peas as human food, as a source of much needed oil, and as animal feeds. The production of beans last year in the six leading states increased from 10,715,000 bushels to 15,701,000 bushels and peanuts from 35,324,500 bushels to 60,222,000 bushels. But these increases proved to be greatly needed, and there is every indication that large increases will be readily absorbed in 1918. The peanut is especially valuable because of the oil it contains, for which the need is great. In the south especially, soy beans and peanut meal are proving very satisfactory as partial substitutes for wheat. Both soy beans and peanuts are of great value as forage crops. Orange is going to get in line with an ornamental lighting system. The city council Monday voted to establish lights on Glassel and Chapman streets, the frontage being 7700. Anaheim-Los Angeles Train Schedules To Los Angeles Lv Anaheim 5.05 AM, 7.25 AM, 10.05 AM, 11.58 AM, 3.57 PM, 5.43 PM Ar. Los Angeles 6.00 AM, 8.20 AM, 11.00 AM, 12.50 PM, 4.50 PM, 6.30 PM From Los Angeles Lv. Los Angeles 9.00 AM, 10.45 AM, 1.15 PM, 3.00 PM, 5.25 PM, 11.59 PM Ar. Anaheim 9.45 AM, 11.35 AM, 2.02 PM, 3.42 PM, 6.14 PM, 1.10 AM J. H. CLABAUGH, AGENT. Train Schedules To Los Angeles Lv Anaheim 5.05 AM, 7.25 AM, 10.05 AM, 11.58 AM, 3.57 PM, 5.43 PM Ar. Los Angeles 6.00 AM, 8.20 AM, 11.00 AM, 12.50 PM, 4.50 PM, 6.30 PM From Los Angeles Lv. Los Angeles 9.00 AM, 10.45 AM, 1.15 PM, 3.00 PM, 5.25 PM, 11.59 PM Ar. Anaheim 9.45 AM, 11.35 AM, 2.02 PM, 3.42 PM, 6.14 PM, 1.10 AM J. H. CLABAUGH, AGENT. ANAHEIM, CALIF. For other details and late call or write: HOME 1751 PACIFIC 217 Uncle Sam thinks so much of War Savings Stamps that he won't allow anybody to buy more than one thousand dollars worth of them. Better get your now— On sale everywhere. F. A. YUNGBLUTH ANAHEIM GAZETTE City Official Paper. Clean and Reliable