The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-11-16
Question Of Liability Is Before
the Treasury Department.
Early Decision Promised.
AMOUNT INVOLVED $4,000
Complication Comes Fom Fact
That Actor Turns His In
come Over to British Aid.

Will the United States Government re-
quire T.. H. Sothern to pay an income
tax on the money he Is now earning,
but which he is contributing to the
British Red Cross fund?
The Treasury Department is wrestling
with this question at the present mo-
ment, and hopes to be able to. make
some decision this week. And the ques-
ton isn't such a simple affair as 1t
seems. The amount OF money involved
will be about 0.0O0-approximately what
Mr.. Sothern will earn in the twenuty
weeks of his tour with IF Were
King" based on the receipts for the
first week in Providence, r. l., and Tho
first four days Of this week at the
Belasco.
Contribution Is Unusual.
Ordinarily II would seem that there
should be no tax on money which IL
given to charity. But the manner in
which this particular contribution Is bo-
ing made is unusual, and there Is no
law'or custom that is said to touch H.
Under the terms of his contract Mir.
Sothern Ii being paid one-fourth OF the
gross receipts Of each performance. OF
his play. And that there may be no
question about what these receipts
amount to. Mr.. Sothern insists On read
ing q box office statement to his audi
ence after the third act of every per-
Torrance.
For instance. the matinee at the Be-
lasco Theater yesterday represented
gross receipts to the amount of sos.
one-fourth of this. or $227, represents
- at 20 Oh gf,t-l. a
10 o'clock a draft for exactly that amount
was made out by the Commercial Ma
tionai Bank In favor of the joint war
committee in London. and this evening
the draft will be on its way to the
British Red Cross. along with a pox
office statement showing exactly the
number Of seats sold for each perform
anos. .
Receipts Are Income.
The income tax complication comes
from the fact that the money repre-
sents an income from Mr.. Sothern's
business. The money is not being given
to hin because OF the purpose for which
he Is using 1t. So far as his managers,
the ShubertA. are concerned, he nisht
J 'st az wei! teep the quarter share OF
the receipts hiiHself. 1t Is a regular
stand to maze or lose, as the receipts
are greater or smaller.
Therefore, the Treasury officials cam
not regard the L'ney in any ot!Iir iiGht
taan thar Of an ircome regular v earned
and paid. And. therefore, 1t IL subject
to the same legal tax as any Ilher In
come.
Early Decision Promised.
The matter was taken up with the
Treasury Department Tuesday and a
decision was promised as soon as pos
sible.
The receipts for the first four per-
formances in this city have been: Mon
day night 81 .O60, Mr.. Sothern's share
$3.50; Tuesday night 1902. Mr.. Sothern's
share $225.50; Wednesday matinee sos,
Mr.. Sothern's, share SGT; Wednesday
night $1,020. Mr.. Sothern's share 1855.
Total OF stars share for four perform
ances. 1852.
Mr.. Sothern states that II the in
come, tax lis levied against this fund 1t
will not be deducted from the fund, but
he will pay it from his other income as
a further contribution to the cause.
Whether or not the United States
profits. the British Red Cross will lose
nothing.