Delinquent Employers in the Lumber and Woodworking Business Advised to Make lmmediate Tax Returns

Penalties Range From 5 to

Delinquent employers in the lumber and woodworking industries are advised by Commissioner of Internal Revenue Guy T. Helvering to make immediate tax returns as required under the provisions of Titles VIII and IX of the Social Security Act to avoid further payment of drastic penalties which are now accruing.

Commissioner Helvering pointed out that every person employed in the lumber and woodworking industries came under the provisions of Title VIII, which imposes an income tax on the wag:es of every taxable individual and an excise tax on the pay roll of every employer of one or more. This tax is payable monthly at the office of the Collector of Internal Revenue. The present rate for employer and employee alike is one per cent of the taxable wages paid and received.

Under Title IX of the Act, employers of eight or more persons must pay an excise tax on their annual pay roll. This tax went into effect on January l, L936, and tax payments were due from the employ,ers, and the employers alone, at the office of the Collector of Internal Revenue on the first of this year. This tax is payable annually, although the employer may elect to pay it in regular quarterly installments.

The employer is held responsible for the collection of his employee's tax under Title VIII, the Commissioner explained, and is required to collect it when the wages are paid the employee, whether it be weekly or semi-monthly. Once the employer makes the one per cent deduction from the employee's pay, he becomes the custodian of Federal funds and must account for them to the Bureau of Internal Revenue.

This is done, Mr. Helvering said, when the employer makes out Treasury form SS-1, which, accompanied by the employee-employer tax, is filed during the month directly following the month in which the taxes were collected. All

20 Per Cent of Tax Due

Important Features Of Taxing Provisions Of Social Security Act

Actual money, when paid as wag'es, is not the sole basis on which the tax is levied. Goods, clothing, lodging, if a part of compensation for services, are wag'es and a fair and reasonable value must be arrived at and become subject to the tax.

Commissions on sales, bonuses and premiums on insurance are wages and taxable.

Officers of corporations whether or not receiving compensation are considered employees for the purpose of taxation.

Wages paid during sick leave or vacation, or at dismissal are taxable.

Traveling expenses required by salesmen are not wages if the salesmen account for, by receipts or otherwise, their reasonable expenditures. That part for which no accounting is made is construed as a wage 'and is taxable.

Exercise great care in filling out Treasury forms SS-1 and 940. Directions are easy to follow and correct returns mean no unnecessarv delay.

tax payments must be made at the office of the Collector of Internal Revenue in the district in which the employer's place of business is located.

Penalties for delinquencies are levied against the employer, not the employee, the Commissioner pointed out, and range from 5 per cent to 25 per cent of the tax due, depending on the period of delinquency. Criminal action may be. taken against those who willfully refuse to pay their taxes.

The employcrs of one or more are also required to file

Telephone ue your order- Douglar FirRedwoodPonderoga PincSpruce when your driver ealle the Douglas Fir Plywoodr load will be assembled and Cement-USG Plaster-USG Rock Lath ready to drop onto your 15 lb. Felt -S K and Sigalkrcft - Building Pcper truck. ft'e tirne eaved and Roofing rnoney in your pocket. NailsVire - Corrugatcd ShectsMetal Lath

Treasury forms SS-2 and SS-Za. Both are informational forms and must be filed at Collectors' offices not later than next July 31, covering the first six months of the year. After that they are to be filed at regular quarterly intervals. Form SS-2 will show all the taxable \\rages paid to all employees and SS-2a the taxable wages paid each employee.

Participation in a state unemployment compensation fund, approved by the Social Security Board, does not exempt employers from the excise tax under Title IX, Commissioner Helvering said. Nor does the fact that there is no state unemployment compensation fund relieve the employer of his Federal tax payments. In those states where an unemployment compensation fund has been approved, deductions up to 90 per cent of the Federal tax are allowed the employer who has already paid his state tax. These deductions are not allorved unless the state tax has been paid.

This tax is due in full from all employers in states having no approved fund. The rate for 1936 was one per cent of the total annual pay roll containing eight or more employees, and for 1937 it is two per cent. The rate increases to three per cent in 1938 when it reaches its maximum. The annual returns are made on Treasury form 940.

An employer who employs eight or more persons on each of twenty calendar days during a calendar year, each day being in a difierent calendar week, is liable to the tax. The same persons do not have to be employed during that period, nor do the hours of employment have to be the same.

Freight Cars on Order Largest Since 1924

New York, July 26.-New freight cars on order July 1 totaled 42,624, the greatest number on such date since 1924 at which time there rvere 60,315, Association of American Railroads announced today.

On July 1 last year, Class 1 roads had 28,089 on order.

New steam locomotives on order July 1 rvere 3Ol against 67 a year ago and six two years ago.

New electric and Diesel locomotives on order July I totaled 33 against 23 last year.

There were 34,187 new freight cars installed in first six months this year, largest number since 1930, while the i66 new steam locomotives installed were also the largest since 1930.

Retail Firm Sponsors Showing of Redwood Sound Film "California Giants"

On July 21 in St. Helena, Napa county,425 citizens of that community enjoyed a program unique in retail lumber company good will promotions.

Sponsored by the McKinnon-McNair Lumber Companl', the Redrvood industry's sound film "California Giants," was the feature of a program of instrumental music and song. The picture was first shotvn to the St. Helena Rotary Club of 40 members and guests at noon in the St. Helena Hotel and at night in the St. llelena Grammar S,chool Auditorium before an audience of 385 persons.

The evening performan,ce was well advertised by newspaper space paid by the sponsoring company and by window cards displayed throughout the community. Under the direction of Andrew McNair of the sponsoring company, personal invitations were sent to all customers and friends of the con,cern. The result was one of the largest. attendances €ver appearing at a strictly commer,cial program in St. Helena.

"Napa 'county is particularly proud of its place in the Redwood Empire," Mr. Mc,Nair declared. "Our firm was indeed happy at the opportunity to present this wonderful story of the Redwoods and the redwood lumber industry to its friends."

O. W. Sollie of the California Redwood Association offices in San Francisco made the trip to St. Helena to assist in presenting the program.

Charles L. Millst

Charles L. Miller, former president of the Pacific Door & Sash Co., passed away at his home in Los Angeles, Friday evening, July 23. lle rvas 73 years of age, and rvas born in San Francisco.

Mr. Miller was prominent in the milhvork industry in Los Angeles for many years. He rvas a charter member of the Jonathan Club. Funeral services were held Monday morning, luly 26, at the Wee Kirk o' the Heather, Forest Lawn Memorial Park, Glendale.

I'EPENDABILITT-UGNT PUGES 8Nd GODTPLETE ETOCKI

HIGH GRADE HARDWOODS-Dmectic woods: A!h, Bech, Blrch. Gu, Hic&rt, Marnolia, Mlpla, OeL, Pophr, wrrut, erk lrd MrDL Flsaha:.

FOREIGN WOODS: Apft6g, Baka' Spa,rllh Ccdar' Ebon Spo,ttrd Grn' trobrrt, Joiecro, Llrpun Vitac, Mabogun Prhrrrcc Rccrod, SLn TiL. Abo DOUGIJIS FIR PLYWOOD lxp wrr.r-SOARD hrdriloodnead1natrr

SERVICE SINCB 1872

"Harduoods ol th. WorU and a Wrkl of Hardwods"

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Celebrates Opening of New Retail Store at Los Angeles-Entertains Contractors

Over trvo hundred contractors and another hundred guests gathered at the San Pedro Lumber Co. on the evening of July 8 to celebrate the opening of their new retail store and headquarters at 1518 South Central Avenue, Los Angeles.

Door and contest prizes in excess of $20O had been ofiered by the company as the high light of the regular monthly meeting of the Building Contractors Association of Southern California.

son were second and H. J. Patten ancl L. D. Connor third.

Practically everyone present entered the Sisalkraft tearing up contest, an event which has been staged successfully for the last two years in Southern California and has drarvn rnore than 12,000 entries. Straightest tear was made by D. L. Garfield, rvith Charles A. Darling second, and "Srvede" Larson third. All are contractors.

Old Colony Paints, with Harold l\fcClellan as the speaker, r,vere shown to the contractors, and he gave practical demonstrations of coverage and wear resistance.

First door prize went to Frank Woodyard, r.vith La Vern FIuLck second, and L. H. Leonard thircl.

Duplicate prizes were awarded in both the Silentite Window and Picket Pack events.

Lucky door prizes were posted by the San Pedro Lumber Company for its fortnight open house. Winners rvill be announced in the next number of The California Lumber Merchant.

A. B. McKee, Jr,

Three contests of skill, a guessing event, and the door prize drawing provided twenty-one valuable merchandise awards, and the evening was topped off by a buffet supper, the San Pedro Lumber Co. being hosts.

Business of the Association was disposed of in a {ew minutes, following General Manager Bert McKee's welcome to the visitors and a response by Floyd Lane, president of the Association. Then Master of Ceremonies Paul De Huff got down to the real business of the evening.

First event was the guessing contest, with United States Gypsum representatives insulating a wall section, after the contractors had registered their guesses of the time required. Both D. K. Whittet and William Satterwhite hit the time of 6 minutes 15 seconds right on the head to share first and second prizes, with Floyd Lane in third place.

The Curtis Silentite lVindow featured the first craftsman's contest, and after a demonstration by Tom Stokes of the Curtis Companies, five teams of two each competed in assembling Curtis windows and mounting them in openings' Winning team was Paul Hist of the Westwood Construction Company and J. E. Denham, contractor, who accomplished the job in the amazing time of 6 minutes 10 seconds. Second were Contractors Ben Schiewe and Frank Heller, and third were Tom Girard, contractor, and H' G. Patten, son of H. J. Patten, contractor.

The second contest of skill was the building of ten feet of Picket Pack Redwood fence, with Carroll T. Morton' Los Angeles representative of the California Redwood Association, explaining the pack and the contest rules. Again fhe competition was in teams of two, with the contractors mounting stringers on posts already prepared, and nailing rrp the fence. Winning team completed the job in a fraction over 6 minutes, with second and third place teams only split seconds behind. Winners rvere Ralph Rogers and La Vern Huck, both contractors. Emmet Jensen and Mark Nichol-

B. F. Train

Benjamin F. Train, manager of the J. D. Halstead Lumber Company, Los Angeles, passed away on July 13 following an operation for appendicitis. He rvas forty-seven years of age.

Mi. Train r,r,'as born in Bellville, Kansas, and had been a resident of Los Angeles for fourteen years. He is survived by his wife, Tinnie K. Train; a daughter, I\[rs. Earl Perry, and a son, Billy Train. Funeral services were held Friday afternoon, July 16.

Attend Oregon Trail Pageant

H. Sewall Morton of Hill & Morton, Inc., Oakland, returned July 26 from an automobile trip to Eugene, Oregon, made for the purpose of attending the famous Oregon Trail pageant, held July 22,23 and 24.

Accompanying him on the trip were Charlie Shepard, secretary-treasurer of Friend & Terry Lumber Co., Sacramento; Harry Terrell, salesman for Hill & Morton, and Edgar Simpson, owner of Friend & Terry Lumber Co.

Mr. Simpson was parti'cularly interested in the pageant for the reason that he had shipped 16 oxen (eight yoke), six ,horses and a stage coach to take part in it.

The pageant, Sewall says, was a grand s[,c,c€SS, largely attended, and everybody seemed to have a good time.

Call On The Trade

W. G. Kahman, San Frahcisco, district sales manager, Shevlin Pine Sales Co., was a visitor at the cornpany's Los Angeles office around the middle of July. Accompanied by I,. S. Turnbull, Southern California and Arizona representative, they spent a few days calling on the trade.