Q. What is war tax on excess profits?

A. Under the act of October 3, 1917, a tax is levied on the net incomes of individuals, partnerships, or corporations which (after certain permitted deductions) are in excess of certain percentages of the invested capital of such individuals, etc. The rates are as follows: 20 per cent of profits not in excess of 15 per cent of the invested capital; 25 per cent of profits, 15 per cent and not in excess of 20 per cent of invested capital; 35 per cent of profits, 20 per cent and not in excess of 25 per cent of invested capital; 45 per cent of profits, 25 per cent and not in excess of 33 per cent of invested capital; 60 per cent of profits, 33

$500,000 and $750,000, 50 per cent; $750,000 and $1,000,000, 55 per cent; $1,000,000 and $1,500,000, 61 per cent; $1,500,000 and $2,000,000, 62 per cent; over $2,000,000, 63 per cent.

Q.-What is the Trading with the Enemy Act?

A. The trading with the Enemy Act provides that a person who is "an enemy" or ally of enemy "doing business within the United States" may apply for a license to continue to do business in the United States. This act prohibits and imposes severe penalties on communicating with the enemy, but licenses may be granted for relief from the various "communications."

In addition, in the case of a trade or business (a term which includes the professions as well) having no invested capital or only a nominal capital, a tax of 8 per cent is levied on all net incomes, of individuals, above $6,000, or of corporations, above $3,000. Finally the tax of 122 per cent which was levied by the act of September 8, 1916, on the net incomes of all persons, corporations, etc., manufacturing munitions, electric motor boats, submarines, etc., or parts of same, is reduced after January 1, next, to 10 per cent.

Q. What is the war tax on incomes?

A.-Under the act of October 3, 1917, new income taxes are imposed. The preceding law taxed the net incomes of individuals in excess of $3,000 for an unmarried man and $4,000 for a head of a family. The war tax bill reduces the exemption of unmarried persons to $1,000 and of heads of families to $2,000, but grants an additional exemption of $200 for each dependent child. The surtaxes on incomes of $5,000 and over are the same for all, as follows: Between $5,000 and $7,500, I per cent; $7,500 and $10,000, 2 per cent; $10,000 and $12,500, 3 per cent; $12,500 and $15,000, 4 per cent; $15,000 and $20,000, 5 per cent; $20,000 and $40,000, 8 per cent; $40,000 and $60,000, 12 per cent; $60,000 and $80,000, 17 per cent; $80,000 and $100,000, 22 per cent; $100,000 and $150,000, 27 per cent; $150,000 and $300,000, 42 per cent; $300,000 and $500,000, 46 per cent;

the United States?

A. (a) An enemy, according to the Trading with the Enemy Act, is "Any individual, partnership, or other body of individuals of any nationality, resident within the territory (including that occupied by the military and naval forces) of any nation with which the United States is at war, or resident outside the United States and doing business within such territory, and any corporation incorporated within such territory of any nation with which the United States is at war or incorporated within any country other than the United States and doing business within such territory.

(b) The government of any nation with which the United States is at war, or any political or municipal subdivison thereof, or any officer, official, agent, or agency thereof.

(3) Such other individuals, or body or class of individuals, as may be natives, citizens, or subjects of any nation with which the United States is at war, other than citizens of the United States, wherever resident, or wherever doing business as the President, if he shall find the safety of the United States or the successful prosecution of the war shall so require, may, by proclamation, include within the term "enemy."

Q.-What is a person holding property of an enemy expected to do?

A.-Any person in the United States who holds or has custody or control of

any property himself or in behalf of an enemy or an ally of an enemy is expected to report the fact to the Alien Property Custodian by written statement under oath, containing such particulars as such custodian may require.

Q.-Is a citizen of the United

States bound by a contract with a citizen of one of the

Central Powers?

A. Any contract entered into prior to the beginning of the war, between any citizen of the United States and any citizen of the Central Powers, the terms of which provide for delivery during or after the war, may be abrogated by serving a thirty days' notice in writing, upon the Alien Property Custodian of his district.

Q. What happens to money be

longing to enemies of the United States seized under the Enemy Alien Act?

A.-All money paid to the Alien Property Custodian belonging to the enemy is deposited in the Treasury of the United States and invested by the Secretary of the Treasury in United States bonds. At the end of the war, any claim of an enemy alien or ally of an enemy to any money or other property received or held by the Alien Property Custodian or deposited in the United States Treasury shall be settled as Congress directs. The President and the officials whom he appoints to assist him in administering the Trading with the Enemy Act have very broad authority to seize all property of whatever kind and hold it during the period of the war.

Q. What was President Wilson's

Cabinet when war began? A.-Secretary of State, Robert Lansing; Secretary of the Treasury, William Gibbs McAdoo; Secretary of War, Newton Diehl Baker; Attorney General, Thomas Watt Gregory; Secretary of the Navy, Josephus Daniels; Secretary of the Interior, Franklin Knight Lane; Secretary of Agriculture, David Franklin Houston; Secretary of Commerce, William Cox Redfield; Secretary of Labor, William Bauchop Wilson.

Q.-Were women called in by the

American government to help? A.-A group of 10 representative women of the United States was ap

pointed by the Council of National Defense, April 21, 1917, to coordinate and centralize the war work of women. The members are Dr. Anna Howard Shaw, of New York, chairman; Miss Ida Tarbell, of New York, vice-chairman; Mrs. Philip N. Moore, of St. Louis, secretary; Mrs. Stanley McCormick, of Boston, treasurer; Mrs. Josiah E. Cowles, of California; Miss Maud Wetmore, of Rhode Island; Mrs. Carrie Chapman Catt, of New York; Mrs. Antoinette Funk, of Illinois; Mrs. Joseph R. Lamar, of Georgia; and Miss Agnes Nestor, of Illinois. The organization has State divisions in 48 States, and acts as a mouthpiece of the Government, sending messages to women, stimulating patriotic service, and supplying a channel for effective prosecution of war work. There 10 departments or sub-committees finding their counterpart in State, county, and civic units, namely, registration, food production and home economics, food administration, women in industry, child welfare, maintenance of existing social service agencies, health and recreation, education, Liberty Loan, and home and foreign relief. Headquarters at 1814 N Street NW., Washington, D. C., is clearing house for war activities through and through individorganizations uals.

are

Q.-Did Congress assume any part

in the question of peace terms? A.-Congress, by common consent, and with the undoubted approval of the nation, avoided discussion for a considerable period after the Declaration of War, and left the matter entirely in the hands of the President.

In the session of Congress which passed the Declaration of War, a few sporadic attempts were made to begin discussion but they went no further than isolated speeches and resolutions, which were tabled.

The next session of Congress also refrained from any discussion until after the famous Message by President Wilson outlining peace terms and war aims. On January 31, 1918, Senators Borah of Idaho and Owen of Oklahoma each offered resolutions covering the subject. The resolutions were supported by speeches, and were referred to the Committee on Foreign Affairs.

These may be held to have been the first actual and really important steps by Congress to reassume its share of activity.

Q.-Would the use of a base in

South America by a German raider infringe the Monroe Doctrine?

A.-It has been freely asserted that the existence of such a base would be a violation of this Doctrine, but that assertion, like many others, is due to a misconception, or, at best, is a great stretching of the principles laid down in the Doctrine. The Monroe Doctrine, in its original form, only aimed at preventing European Powers from interfering in the territorial arrangements on the continents of America. The scope of the Doctrine has been enlarged from time to time, and it has come to be regarded as meaning that the United States of America has assumedly a protectorate over all the Latin-American Republics, and is responsible for their doings. This is, of course, not the case. The United States might interfere in the event of one of these Republics doing something which brought it into direct conflict with some European country. Only in the danger of such a thing happening could the creation of a base for a German raider in South America distinctly have any connection with the Monroe Doctrine.

Q. What is the Monroe Doctrine?

A-Washington recommended that the United States should avoid entangling itself in the politics of Europe. That policy has been consistently followed, and in our own time was reaffirmed for mally when the United States delegates signed The Hague Conventions with the proviso that nothing contained therein should be so construed as "to require the United States to depart from its traditional policy of not intruding upon, interfering with, or entangling itself in, the political questions, or policy, or internal administration of any foreign State, nor shall anything contained in the said Conventions be construed to imply a relinquishment by the United States of its traditional attitude towards purely American questions." This "traditional attitude" is the second great American principle, ranking next after Washington's policy. It is known as the Monroe Doctrine because it was officially and fully declared for the first time by President Monroe in 1823. At that time it was feared in America that the combination

of European Powers known as the Holy

Alliance meant to interfere in South America to restore the Spanish colonies to Spain, these having asserted their independence. The Monroe Doctrine de

clared that there must be no intervention by foreign powers in the political affairs of independent American States, and also warned off European Powers desirous of founding colonies on the American continents. Originally aimed to prevent the overthrow of independent republics, the Doctrine has become a permanent part of the foreign policy of the United States, and has come to be regarded as a sort of general protectorate over the whole of the New World. In brief, it means that the United States will not tolerate any European interference whatever in any part of the American continent. Q.-What was the famous Senate bill for creating a War cabinet?

A. It was a bill made public by the Senate Committee on Military Affairs establishing a War Cabinet to be composed of "three distinguished citizens of demonstrated ability," to be appointed by the President, with the advice and consent of the Senate. Its powers were to be very great, both as to advice, investigation, and control.

Q.-What was the attitude of the President regarding the war cabinet proposal?

A. He objected unqualifiedly and sharply. He declared his objection to any form of interference with the executive conduct of the war.

Q-When did Secretary

Baker

make his famous statement before the Senate?

A. He made this statement before the Senate Committee on Military Affairs on January 28, 1918. It followed charges made by Senator Chamberlain that the war department had failed to do all that it should have done. The Secretary of War had appeared some time before to testify before the Committee, and his statements then had lacked circumstantial

ity and fullness. The statement of January 28 was one of the most elaborate ever made by an officer of government in this country, and it gave the nation a most vivid and clear picture of the magnitude of the problem confronting the government and people, and of the vast undertakings and efforts that were necessary to conduct the war.

Q.-What was the gist of the sec

retary's statement?

A. That while errors had been made, and shortcomings existed, the work of

the War Department as a whole had been extraordinarily good and successful.

Q.-When was the post of Surveyor-General of Army Purchases created, and why?

A.-Secretary Baker announced this appointment on January 25 after Senator Chamberlain's public criticisms. The officer thus created was appointed to be in charge of the procurement and production of all supplies by the five army bureaus, viz., Ordnance, Quartermaster, Signal, Engineer, and Medical. It was to be his duty to co-ordinate such purchases and properly relate the same to industry to the end that the army program be developed under a comprehensive plan which should best utilize the resources of the country.

Q.-Was an army officer aparmy officer appointed to the new post of Surveyor-General?

A.-A civilian was appointed-Edward R. Stettinius, who had been in practical charge of purchases for the Allies during the war while the United States was neutral. He was a member of the firm of J. P. Morgan and Company, having entered it about two years before. He was born in St. Louis in 1865, was graduated from the St. Louis University, and entered business in 1883. From 1906 to 1915 he was president of the Diamond Match Company.

Q. What new American govern

mental agencies were created? A.-Leading agencies were: shipping board, food administration, fuel administration, war industries board, raw materials board, aircraft production board, Allies' purchasing board, war trade board and a director-general of railroads. There was also a board controlling priority of freight shipments.

Q. What acts, not financial, were passed to authorize war measures?

A. Following the declaration of war (April 6, 1917), Congress passed, first, an act granting the President authority to take over enemy merchant vessels in American ports. On May 18 there was passed the Selective Draft Act, authorizing the drafting of American citizens into a great National Army, and also bringing the Regular Army to full war strength,

besides placing the various National Guards (armed militia) of the States into the Federal service.

Q.-Did other acts confer further authority on the President?

A.-An act, called the "espionage act," gave the Federal Government immensely large powers over the people, and incidentally authorized the President to lay embargoes on exports at his discretion, an authorization that gave the Government tion's and the world's commerce. Then enormous powers of control over the nafollowed a food and fuel bill for exer

cising control over those great economic necessities. There were also the act regulating trade with the enemy and the law for insuring men in the military and naval service of the country.

Q.-What was the early effect of government operation of the railroads?

A. After a month of government operation the figures showed that there had been a decided reduction in accumulations of export freight at the seaports, caused by the increased fuelling of ships and by the embargoes placed on certain kinds of shipment.

More than 4,000 freight cars thus were emptied and released for further use. The Regional Director of Railroads received the following detailed report showing the car situation at six North Atlantic ports on January 1, 1918, when the government took the roads out of private control, and on February 1, after a month of government control: Ports. Boston

Jan. 1. Feb. 1. Dec. P. C. 1,190 998 192 16.14 New York....24,971 19,723 5,248 24.02 Philadelphia

....

224 3,531 3,307 6.34 Baltimore 7,164 5,878 1,286 17.95 Newport News. 1,653 1,284 369 22.32 Norfolk 2,592 2,403 189 7.29

......

Its function as specified in the act of Congress creating it is stated as the "creation of relations which will render possible in time of need the immediate concentration and utilization of the resources of the nation."

Q.-Was there any addition to it?

A. Yes. The act establishing it provided for an Advisory Commission to be nominated by the council and appointed by the President and for such subordinate bodies as the council saw fit to organize "for its assistance in special investigations." The members of the Advisory Commission were originally:

Daniel Willard, chairman, Transportation and Communication;

Howard E. Coffin, Munitions and Manufacturing (including standardization) and Industrial Relations;

Julius Rosenwald, Supplies (including clothing), etc.;

Bernard M. Baruch, Raw Materials, Minerals, and Metals;

Dr. Hollis Godfrey, Engineering and Education;

Samuel Gompers, Labor, including conservation of health and welfare of workers;

Dr. Franklin Martin, Medicine and Surgery, including general sanitation.

Much of the advisory committee's work has been absorbed by other newer bodies such as the War Industries Board, etc.

Q. Who purchases supplies for

the United States Navy?

A. The Bureau of Supplies and Accounts purchases stores and issues all supplies for the naval establishment. Paymaster-General Samuel McGowan is the head of this Bureau.

Q.-Was January, 1918, really the

coldest month on record?

A.-It was for a great many regions in the United States. It was the coldest month on record for such cities as New York, for instance, where the daily average was 9 degrees below the average for 38 previous years.

Q.-Is America rebuilding the ruined French towns?

A. In the Alsace district the Americans are assisting notably. Noyon has been adopted by the city of Washington, and is being rebuilt by contributions from the people of that city. The American fund for French wounded has taken full

charge of the hamlet of Behericourt, and the Comtesse de Chabrannes has undertaken to rebuild the hamlet of Maucourt. The village of Vitrimont in the Vosges region has been rebuilt by Mrs. Crocker, of California. The place was a desert when she began, but her representative found herself at the head of a small army of eager villagers, who undertook the heaviest tasks of house-building under her leadership. Already a church and rows of attractive two-story houses have risen. Houses, farms, public buildings are all erected according to a plan which gives them a logical grouping.

Q.-Did the stock markets rise in the early part of 1918 because of peace rumors?

A. There were many minor causes that served to account for advance in market quotations, but presumably these minor causes would not have been sufficient in themselves. While it is not safe to assert unequivocally that the January rise in prices was a reflection of belief that peace was prognosticated, it is certain that with the beginning of actual talk about a possible settlement of the great war, a quiet, steady, slow advance began in prices, and that it continued daily with very few fluctuations.

Q. Why is America nicknamed Uncle Sam?

A. After the declaration of war with England in 1812, Elbert Anderson of New York, a contractor, visited Troy, where he purchased a large quantity of provisions. The government inspectors at that place were Ebenezer and Samuel Wilson. The latter was universally known as "Uncle Sam" and the articles

passed by him were marked "E. A.U. S." A humorous fellow, being asked the meaning of the initials, said he did not know, unless it meant "Elbert Anderson and Uncle Sam," alluding to "Uncle Sam" Wilson. The joke became a stock topic and thus "Uncle Sam" was finally adopted as a nickname. It is, accurately speaking, a nickname for the United States Government, not for the nation.

Q.-Does America intern alien enemies?

A.-America has adopted a magnanimous and tolerant attitude toward the subjects of hostile States who are now in this country. A Presidential proclamation issued April 6, 1917, assured them