Middletown transcript., 1918-08-31

Losses of allied and neutral mcr
chant shipping during July aggregated
313,O11 gross tons. an increase Ovel
the month of June but a big decrease
from the losses of July. 1917. There
is nothing in the shipping situation t.
change the opinion that the submarine
campaign is fiat failure. Its out
breaks now are sporadic and more all
moving than serious. Among the neil
trail nations that have suffered from
it Spain is showing the most reSen:
ment. and last week ii notified the
imperial German government that
Spanish tonnage having been reduced
to the extreme limit, Spain will be
obliged, in case of new sinkngs. to
substitute therefor German vessels in
termed in. Spanish ports. At the same
time, the Spanish cabinet announced
Spain will continue to observe neutral
element in Spain, and every hint of
Il rupture of relations brings viOien,
protest from the pro-Gernan press
there.
Germany'S latest peace offensive,
consisting of speeches by leading men
was opened by Doctor Solf. miAiste;
Of colonies. who devoted himself main
ly to blaming England for "startin.
the war" and attacking the British in
tention to retain the conquered Ger
man colonies. He also defended Ger
mans course in the near East. as
serting that she was merely protect
ing the frontier peoples of Russia I'M
i'll they are capable of determining
their own national future. The
CZechO-SlOvaks he denounced as ''land-
less robber bands" The expressed de-
termination of the allied nations to
defeat the Germans on the battlefield
gives Doctor Solf great pain and
arouscs his bitter anger.
With troops going across the Allan.
tic at the rate of about 100000 Il
month, with the new draft law about
to be put On it's passage, and with
war industries well organized and
ready to operate full blast, the Amer
lean government is confronted with Il
serious shortage of labor. A million
workers are needed at once and the
administration intends that they shall
be provided for the concerns that are
making war materials. no matter what
happens to private business. Nones-
sential industries will be called on to
give up many of their men; all oilers
will be put to work. and women will
be used to release men for war work
that women cannot do. The emer2en-
cy is one that must be met. and those
in authority propose to meet it in the
same spirit in which they have met
the need for u huge army Of fighters.
a.
A genera; feeling of satisfaction
pervaded the country when it was
announced that the 100 l. w. w. lead
ers on trial in Chicago for disloyalty
had been convicted. Next on the list
of alleged diSlOyalists to be given a
dose of justice are five Socialists
Victor l.. Berger, Adolph Germer, Ir-
win st. John Tucker. ]. Louis EngdahI
and William f. kruse. The charges
against them are even more serious
than were those against the "Wob.
blies."
The house ways and means commit.
tee nearly completed the draft of the
IS. OOO.OOO,OOO revenue bill. but had
still to decide between two PROPOSE
lions for the pxcess profits tax. Ac=
corGing to Chairman kitchin these
were, first: An 8 per cent deduction
in addition to the $1,000 specific ex-
with a 30 per cent tax OF
profits between s and Is per cent; 50
per cent tax on profits between Is
and 20 per cent, and 20 per cent tax
VA paOllS luONC ~ I'Si NVitS ttiAA, NSN'
ond, the same exemption and deduc-
ton. with 40 per cent tax on profits
between and 20 per cent. and 10 per
cent tax on profits exceeding 20 per
cent.
The committee decided on a flat 10
per cent deduction as minimum on
war profits. The proportion of excess
profits and war profits taxes will re-
main the same; that is. 80 per cent of
business will fall under the war prof
its tax. 1t decided on a flat 10 per
cent minimum deduction fer prewar
in computing the war profits
tax.
A provision affecting corporations
with swollen profits directs that any |
whose capital exceeds ST.
)OO.WW shall pay tax of at least ~ |
Der cent Of it's net income as excess
profits.
was estimated by Cabrera to have
been 6.447 900 tons. Prior to Presi-