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ANN ARBOR, MICHIGAN, SATURDAY, JANUARY 10, 1920.

PRICE

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- FRID AY FAVORS STAND OF TREASURY
OFFICIALS ON EXCESS PROFITS
11 1I {


TA~

I Prof. David Friday of the economics

5 1 1

IN-

department in an interview analyzed
the stand of the treasury officials, who
recommend that the excess profits tax
be discontinued, as an attempt to sim-
plify the administrative burdens of the
department and yet raise the huge
budget of nearly $5,000,000,000 which
is necessary to meet the expenses of
the government for the year 1920.
Professor Friday explains that the
treasury has other sources which will
yield fron- three and one-half to four
billions *of dollars, and that the offi-
cials ask that the remainder be rais-
ed, not from the excess profits taxes of
the 'coming year but from those which
were unsettled from the last two or
three ye'ars and which can be col-
lected very shortly by a prompt aud-
iting of the accounts past due. "This
would greatly simplify the work of
the treasury department," Professor
Friday says, "as. it would clean up tha
old accounts and add no new ones on
the books. It would also relieve busi-
ness of the uncertainty which now ex-
ists as to the amounts of these back'
taxes.".
* Like Plan Proposed

iI

"But I also favor the tax because I
believe it is the tax that least im-
pedes enterprise and business activi-
ty. Indeed I should like to see the
excess profits tax substituted for all
other taxes, except' the tax on land.
Modern business is fraught with a
high degree of uncertainty and ripk.
The state-should apportion the burden
of taxation so as to minimize this risk
as much as possible. I believe 'that
this can best be- done- by requiring
people to pay taxes only in years when
they have unusually high profits and
to relieve them of as much of the
burden of taxation as possible in oth-
er years. Even in the year , 1917,
there were 8,400 corporations whose
returns to the commissioner bf in-
ternal revenue showed no net income
and in most cases an actual defieit.
These corporations had paid state and
local taxes amounting to $115,000,000.
It is' my opinion that it would have
been both wise and more just to col-

egiate vote
i the peace
ions will, I
ffect in. the
s policy in
aid Prof. J.
science de-
t treaty of
.c;+,r U-11

iy ball. As to the future, the treasury de-
partment proposes to levy a special
his belief tax on undistributed profits of cor-
b only rep- porations. This would amount to
practically the same thing, Friday as-
y% of our serts and would be simpler for both
present a the taxpayer and the government. The,
he thought rest of the taxes would be collected in

the usual way, by
corporation income

tae persona ana
taxes.

ch their parents
t in the country's
rs, who will decide
aty, have b'y their
shown the- weight
final settlement of

:ance is attached'
rofessor Hayden
only -the right,
student and fac-
gan to first fully
the situation and
ligent vote next.

.Professor Friday has always advo-
cated very highly the retention of
some tax on differential profits and
at a recent annual meeting of the
American Economics association he
discussed the tax and the reasons for
its retention. There he said, "I be-
lieve that a- full and honest discosure
of the facts of business profits will
bring about a popular demand for the
retention of the tax.
"We had long suspected that the
workings of the price system played
queer pranks when it came to the dis-
tribution of income and wealth. In
an industrial society so complex as
ours, subject to the effects of wind
and weather, of wars and rumors o
wars, and of the business cycle, the
results of the price system upon prof-
its were suspected to be not uniform
and profitable, but probably resulted
in profits and incomes that were for-
tuitously large or small in individual
cases. To correct this accidental by-
product of the workings of markets,
competitive-and otherwise, many-of us
favored an excess profits tax. It is
for this reason that I favor the con-'
tinuance of the tax today.

lect this amount from those corpora-
tions which showed an income two;.and
one-half times as large as in the pre-
war deficit.
"Practical considerations will .force
the retention of some form of special
tax on business profits. No matter
how keenly the republican leader's de-
sire to limit themselves to pre-war
methods of taxation, these aethods
simply -will not yield the necessary
revenues. The alternatives are con-e
sumpti6n taxes and taxes on profits.
Of the two the latter is the lesser
evil."
OVER 500 'JUNIO'RS
SIGN UP FOR HOP
Eight hundred ninety-two University'
students, over 350 more than present
plans will accommodate, had signi-
fled their desire to attend the J-Hop
when the preliminary fegistration was
terminated at 5:45 yesterday after-.
noon. Incomplete reports indicate
that at least 500 of these are Juhiors.
In the distribution of the tickets Ju-
niors will be served first. If any are
left after they have secured their tick-
ets, preference will be given to other
students according to the number of
years they .have been on the campus.
It is expected that the tickets wili,
be placed on sale within a week.
Plans for decorations and other Hop
features are reported to be progress-
ing rapidly.
Rise Against Japs In Korea,
London, Jan. 9.-Ax. anti-Japanese
rising has broken out in Korea, act;
cording to a Bolshevik wireless com-
munication received here tonight from
Moscow.

POAREXPLO)RER1
SPEAKS TONIHT
Prof. Hobbs Tells Place Stefansson
iolds In Scientific
World
STEFAlSSON DISCOVERER OF
REMEDY FOR ARCTIC SCURVY
Regarding Vilhjalmur Stefansson,
arctic explorer, who is to lecture at
8 o'clock tonight in Hill auditorium,
Prof. William H. Hobbs sd the fol-
lowing:
Mr. Stefansson, who is, to lecture in
Hill auditorium Saturday evening un-
dler the auspices of the University
Oratorical association, is not only a
great explorer but a well known au-
thority in science. His chief spec-
ialty is anthropology, though geo-
'graphy and geology are close seconds
In his esteem, I'nd he has lately be-
'cam well known as a dietician
through his discovery of a remedy for
scurvy, the bane of all earlier polar
expeditions.
Went Without Salt
While in the arctic Mr. Stefansson
eats no salt whatever, and it is per-
haps nt generally known that this is
characteristic also of the Eskimo gen-
erally. In some of their dialects the
same word is used for "salt" -as for
"bad taste." In fact, on one occasion
when Eskimos thronged about his
camp and threatened to "eat him out of
house and home," the sprinkling in
the food of a little salt which Stef-
ansson happened to have at the time
served to remove the undesirable vis-.
Itors. Mr. Stefansson holds the view
that a balanced dietary is far less im-
portant - than is generally supposed,
and he cites the health of widely dif-
ferent peoples living upon different
rations, some not balanced at all. His
own experience is, however, the strong
basis for his belief.
Palate Poor Qude
During the war, we in America heard
something of the starvation, or near
starvation, which was prevalent in
Germany because of the lack of fats.
This condition has been well -exem-
plified by Mr. Stefansson's own ex-
perience. At one time when forced to
live on lean caribou meat, the party
was gorging itself until the stomachs,
were greatly distended, bt without
getting rid, of the pangs of hunger.
Attempts to remedy the situation by a
liberal use of seal oil were at first un-
successful because the stomach would
reject the pure oil.- A mixture of
ptarmigan feathers with the oil did
not greatly improve the product,
though chopped hair mixed in it was
found to solve the difficulty. Mr. Stef-
ansson believes, as one easily realizes
after learning of this Incident, that the
palate Is not always the best guide-
to the'needs of the stomach.-
Mr..Stefansson is an extremely in.
teresting talker, and the story which
he has to tell is one of the most re-
markable in thA long bistory of polar
exploration. -
LATE WIRE BRIEFS
Cleveland, Jan. 9.-Abandonment of
the communist party of Cleveland un-
der any central organization, closing
of Its offices and discontinuaxlce of the
official weekly publication were an-
nounced today. Discontinuance ofthe
organization was decided upon because
of the heavy expense incurred in
bonding members held for deportation'
and defending members in court, party
leaders declared.

Papis, Jan. 9.-The University of
Paris has organized a series of lec-
tures covering four months for Amer-
icans. The lectures, which will run
from March 1 to July 1, will be by
distinguished scholars, and will be
given for the purpose of giving a;
general idea of French literature, his-
tory and art. L
Moscow, Jan. 9.-More tpan 2,000,-
000 civilians have died since the out-
break of the war and 20 per cent of
the country's population of 20,000,000
are refuges according to figures made
public here by .the American Red
Cross.
New York, Jan. -9.-A, threatened
strike of'teachers in New 'York public
schools was averted today when the
board of aldermen was authorized to
issue revenue bonds to the amount of
$620,000 in order to pay teachers' sal-
aries for December.

In order to bring about a bet-
ter understanding, of the Peace
Treaty and the League of Na-
tions among the students and
faculty, so that they will be
more able to give an intelligent
vote 'next Tuesday, the Union
officials have o'ffered the use of
rooms in the Union to any group I
or groups iwho wish to have eth-
er a public or private discussion
-on the treaty at any time up to'
the time of the vote. Persons
wishing o take advantage of
this offer should go to the man-
ager's office in the south wing
of the first floor and arrange-
ments will be made.
- I
BASKETBALL TICKET S
TO BE OUT NEXT WEEK
Admission cards to the six Confer
ence basketball games to be played in
Ann Arbor will be distributed in the
main corridor of University hall next
week. Each -' student in the Univer-
sity will be given. an opportunity to
secure tickets to two games, building?
regulations mlaking it impossib to
admit more than 2,200 persons t any
one contest in Waterman gymnasium.
Students "holding athletic -books
whose numbers end in "0" or "1" will
be given first choice, and will be given
their tickets Monday, Jan. 12, in' Uni-
versity hall. /The tiek4 desk will be
open from 9 to 12 o'clock in the1
morning, and from 1:45 to 5:15 o'clck
in the afternoon.
Tuesday, during the -same hours,. all
students whose book numbers end in1
"s' 'or "3" "will choose their tickets.
Wednesday all whose numbers end in
"4" or "5" will take their turn, Thurs-
d-ay those whose numbers end in 6'
or "7," and Friday those whose nim-
bers end in "8" or "VP
The six games in Wa'erman gym-
nttsium are paired, equally in impor-i
tance in the following three combina-
one of the following three combina-i
tions: the Iniana and' Illinois games,
Saturday, Jan. 17, and Monday, March
1, respectively; the Ohio' State and
Minnesota games, Saturday, Jan. 31,i
and Monday, March 8, respectively;
and the Chicago and Wisconsin games,
Saturday, Feb. 21, and -Saturday,
March 6, respectively.
Dates :for Final
Exams GivenOu t3
Dates for final examinations in the
literary college for this semester have
been decided on and the tesns will be-i
gin Monday, Feb.2, extending thrToug11
Thursday, Feb. 12. The time of thei
first lecture in each course will de-
cide the hours during -which the es .
amination will be held. A lxamina- '
tions must be held according to the
schedule unbss the faculty takes spe-
cial action. Special ours have beeni
assigned for severl courses and for e
conflicts.
Classes will be examined according
to the hour and day of the week of
their first meeting as stated in the
following schedule - Monday, at 8,
second Monday 9-1-2; at 9, first Tues-
day 9-12; at 10; second Tuesday, 9-
12; at 11 first Monday 9-12; 'at 1, sec-
ond Wednesday, 9-12-rat 2, first Fri-
day 9-12; at 3, first Thursday, 25-
Tuesday, at 8, first Saturday, 9-12; at
9, first Thursday 9-12 at 10, first Mon-
day 2-5; at 11, first Saturday 2-5; at

1, second Wednesday 2-5; at 2, sec-
ond Thursday 9-12; at 3, first Wed-
nesday 9-12.
These courses have special dates
assigned; all sections of French 1, 2,
3, and 4, second Monday 2-5; all sec-
tions of Spanish 1, 2, 3, and 4, second
Tuesday 2-5; all sections of rhetoric
1, first Thursday 2-5; history 1, la,
and lb, first Wednesday 2-5; Econom-
ics 1, first Tuesday 2-5; Psychology-
7, first Wednesday 9-12; all sections
of Mathematics A, C, 1, and 51, first
Friday '2-5; and Chemistry 2b, first
Tuesday 2-5.
Conflicts will be examined the first
Wednesday 9-12; the first Wednesday
2-5; the first Friday 2-5; the second
Monday 2-5; the second Tuesday 2-
5; and the second Thursday 2-5.
It is expected that the engineer-


TREATY DISCUSSIONS

RENEWED EFFOR
PACTATTEMPI
SPLIT IN DEMOCRATIC R.
LEADS REPUBLICANS
TO ACT
HITCHCOCK PREDICT
RATIFICATION S(
Senator Lodge 'Deelares G. 0. P4
"Cordially Welcome" Treat
Political Issue -
(By Associated Press)
Washington, Jan. 9.-The fortu
the treaty of ,Versailles became
more unsettled today when on t
President Wilson's Jackson day
nouncement for taking the qu
to the people, in the political cam
and William Jennings Bryan's
sition to. such a course, Demo
and Republican friends of. the I
in the senate renewed their effo1
secure a compromise ratification.
Senator Hitchcock of Nebraska
acting Democratic leader, said b
not regard the president's- decla
as calculated to cut off any re
able compromise and predicted :
c4tion before the campaign was 
way.
Expect Ratifeation
The mild reservation group o
publicans took much the same
and in tle group of Demqcrats
have been urgent in their demar
a compromise declared their po
was in no way altered. -
Discussion of compromise re
tions accordingly went forward 
tivly' as before, a, conference beit
ranged on the Repu'blican side t
up in detail the set of reserv
submitted recently \y Senator
drick of Wyoming and other I
crats.
It was said '-a counter pry
might be drawn up within a few
and all the parties to the negot:
seemed hopeful that an agreeme
timately would be reached.
/ Definitely in Campaign
Among the treaty's irreconc
foes, however, the president's .
and the statement last night of
ator Lodge of Massachusetts, th
publican senate leader, that he 
"most cordially welcoAe the treE
a political issue were hailed as
ing definitely put the question inI
campaign. This group consisi
has predicted failure for the coi
mise negotiations and/they wi e
positive today than ever that
would be no-agreement.
The cabinet met in its regula
sion today but if -the, members
cussed the split between' the :
dent or Mr. Bryan on the trea
sue, or M. Wilson's stand they 
not admit it.
- F Democrats Expect Stir
Democrat leaders -did not at
however, to minimize the split be
the president and his former sec
of state which might have injuret
at the convention and the polls i
vember if it should be carried
far. They recalled the dominan
Mr. Bryan played at the Balt
gathering when Mr. Wilson firs
nominated and while the conv
time was yet in the distance so
them at least look forward to st
events in San Francisco.

G.O.P. FEARS EFFEC
OF RED EXPULSI
J New York, Jan. 9.-Republican
ers from all parts of the state
informal conferepces here todE
the assembly's summary suspe
of its socialist members and ti
sultant probable effect on the
torate of the state. Meanwhile
five suspended assemblymen
plans for bitter fight for- rein
ment.

'20, was ij charge of'
evening. George Hur-
i1 secretary of the
ery student to make
o make an intelligent
stion. Earl W. Dunn,
nner, '20, and James
held a debate on thg
aken on the treaty.

! C, ADARMS FROWNS ON SHANTUNGC PRDViSION

students and
next Tuesday
e treaty ballot

Mercantilism an Influence the peace table the nations' represent-
We are not so much concerned with ed seemed to return to the old point,
the immediate 'results of Japanese di- of view. They seemed to forget their,

he most disputed points plomacy as with the ultimate influence vision of an international world with
discussion, The waily of that mercantilistic point of view of an established standard for interna-
and Sundays issues ar- which that diplomacy is the most re- tional trade. I do not wish to be too
f. Henry Carter Adams cent expression. What the world severe, but the situation callsto mind
nits department, on the wants (or rather what the world must the 22nd verse of the second chapter
e, and by Prof. Edward learn to want before- we can have of the second epistle of Peter..
the History- department, peace) is the annihilation of mercan- But thie question Issue is a very
of Nations. tilism, which, in its modern garb, is practical and pressing one. Shall we
Adatis' article appears the use of. political power for com- vote for or against the treaty? To my
res a summing up cif his mercial ends, the passing of national mind. this question may be resolved
Shantung provision, fol- political economy as exercised in the into the following. ' Is there greater
eneral consideration of field of foreign trade; the effective hope. for a readjustment of trading
economic phase of the divorce of industry and army. relations that shall guarantee the mu-
light of trading rela- There was a-rood deal of talk along tual rights of trading countries, if
sor Adams," as one of these lines during the last year of the the- treaty be accepted, or shall we
ding economics, is par- war, but at the peace table no nation say, because the treaty in this matter:
fled to treat this aspect seemed willing to pay the price of an of international trading is on the
n. The, article follows: enduring peace. - wrong track, that greater hope lies in
ist at present, is the It is with this background that the the rejection of the treaty, reliance
)'f the oriental situation. Shantung episode should be regarded. being placed on the expectation that
the peace treaty brings That clause of the treaty which gives this rejection will force a re-consider--
latest of those efforts to Japan a preferential strategic po- ation of the entire situation and tendI
,n made, first by one sition in China is reprehensible, first, to bring about a better-understanding
hen by another, to se- because it was secured by secret di- of what the trading world really
ial if not exclusive con- plomacy, but second and especially be. needs? He 'assumes a great respon-
economic life of some cause it perpetuates by an interna- sibility who undertakes to answer this
i of the Chinese people. tional arrangecent that commercial question, but before one can cast. an"
is now aiming to do is policy which since the sixteenth cen- intelligent vote on the acceptance or,
in its moral character tury,.has been the curse of Europe. 'the rejection of the treaty it must'
r influence from what i Ideals Vanished at Table be answered.
listic country of Europe ; During the last year of the war we Provision Unacceptable
o since the discovery of had a vision of a better trading world, . As the matter appears to me, when
about the COpe of Good in which right reason, and a sense of I recognize the historic influence of a
rell -to hold this fact in justice should prevail. This was one formal agreement between the leading
resentment against what of the promises of the new interna- nations of the world, I am forced to
e policy of Japan should tional relations to be established, and conclude that a vote by the United
tp the real issue in the one of the reasons why this country States against the treaty is to be pre-
rejection of the peace entered the war. Such visions were ferred to an acceptance of a treaty
oh t~rrlby A.R ' h.,w,+im'i a Al. ,4that -nn/ine fla4..n~hn....*..z.n

Comment by the Republican
reserved, but it was intimated t
that considerable opposition
assembly's program in dealing
the socialists had developed.
During the day the executive
mittee and the socialist party c
York issued a statement demz
that the assembly immediately j

+: