Newspaper Page Text
ROCK ISLAND ARGU
SIXTIETH YEAR. NO. 126.
MONDAY, MARCH 13, 1911. TEN PAGES.
PRICE TWO CENTS.
CORPORATION TAX LAW IS
Revenue Assured to the
a . mmmmm mm mm m n v A
Not Levied on Income, but
Measured by Income and
"Washington, March 13. The TWteti
States supreme court today decided
the corporation tax constitutional.
At 12:25 Justice Day began to de
liver the decision of the supreme court.
Day first announced It was within the
cower of the senate to insert the cor
poration tax provisions in the tariff
law, which originated In the house, and
of which the tax provisions are a part,
tax ox "Doing bi'sixes. ' es whih are the creation of a state
Day held the tax is ' an excise tax on jn Jt sovflrejs. r.gnt and author,ty.
doing business." which is exactly thr Uav hf.;d that un(if.r lhe previous UeCi
basis on which the government has de- ' . h, h buBinfss ac.
fended the law.
He also held the tax
provisions are not an arbitrary
else or a power. This was urged m
the argument as one reason why the
law should be held constitutional. By
regarding the tax as measured by in-
come ramer man uerag a tax on m- would def.at th;s purpose, by taking!
come, the opinion held thai the law:.. -,. hv ;tat.'
was constitutional, notwithstanding thn fnv tQ creatp a corporation and car
law might reach incomes from uon- , v, business under rights gtant
taxable sources. hv stafe stattt.s. a federal tax
opinion iammois. jwou- betoine invalid and that POurce
The courts decision in the corpora- of ,jational rcVenue be destroyed, ex
tion tax case was unanimous. By this cppt ag ,Q busincss in nauds of the
decision the source of income of ap ;lnGivi(jual or a partnership. It can
proximateiy I25.000.-ooo annually is as-;ol be FpPoped it was intended it
f-ured to the government. Of ail ob phoilld hP within the power of indivi
jections to the tax raised by suits in d,ia,s artin nder s'ate authority to
all parts of the country none of them itns imriair and i i mi t the exercise of
was found sufficient to nullify the law. athoritv which may be essential to a
M A DE SOME EXKMPTIO.
The court did hold that the tax was
not applicable to a real estate '"trust '
of Boston, which was organized not un
der any statute, but under the common
ISE NOT CONSIDERED.
N'ear outset of the opinion is the i
statement . the tax "js imposed not
upon franchises of corporations ir -
respective of their use in business,
nor upon tne property oi corpora- :Vantap,, inherent in conducting busi
tion, but upon the doing of corpor-,nss jn rporate capacity, not enjoy
ate or insurance business and withed bv rivate flrras or individuals,
respect to the carrying on thereof, J The measrf,ment of the tax by the
in a sum enuivalent to one per cnt-:nct lnrfimp of the corporation or com
iim of the entire net In.-ome over ... . ,, trnrn cn,,,.ra
and above $o,C"Hi received frcm all
sources during the year: that is,
when imposed in this manner it is , outpide of "he authority
a tax upon doing business, with the;
. . . . . ... 'of the taxinp power.
advantages which inhere in the pe-,
.... , i . 1 PI HI.M ITV PHOPF.n .
. uhai lties of corporate or joint
stock organization of the character j The court dealt at length with nil-
rfo.Hhort As the latter orcania- I
llnnn chATu manv
pprate organization it may be de -
scribed generally as a tax upon the
doing of business in a corporate ca-
MKASI'KK OF TAX KXPi.iriT. I means are appropriate ana anapcea ;
"This tax, it is expressly stated is! to the purposes of making such taxa I
to be equivalent to one per centum of tion effectual. !
the entire net income over and above' fight BF.Gr" in io9. j
$5,000 received from all souretsl The fjht. against the constitution-;
during the year. This is the meas- j p.ijty of the corporation tax began al
iire of the tax explicitly adopted by m0gt immediate ly after the enact-(
the statute. The income is not lim-' rnent of the Payne Aldrich tariff law-
ited to such as is received from the.0f 1509, of which it is a ran. During 1 Roosevelt began the seventh day of
property used in the bus!noss. sMet-;the ln1R days 0f wrarfgling in con-his tour with a flying review of the
ly speaking, but is expressly dec lar- j gr,.ss over 1r.a' measure. President troops gathered near this city. Af
ed to be upon the entire net i 11. -erne T.lf t oriinatt.d u plan to raise pari of terward he delivered an address in
j'bove $5.00u from all sources, ex- tht revene necessary for the running j the city and then left for Austin,
e luding the amounts received, as div- i of the g0vernraent bv imposing a cor-i Fort Worth and Dallas.
idends on stock in other corpora- j portion lax. He is said to have made
tions. Joint stock companies or as- the fm rou?h drafl of the proposedj grrQQjQ SPELLING MATCH
m-iih.ii. im .U-U..W.. r .....,.
are also subject to the tax. In other
words. tV tax Is impose.l upon the
doing or ousiness 01 tne c uaracier cie -
t rl bed and the measure of tax is to
be the income, with the deduct 'tin J
Ffated. received not only from the
property used in the business, but I
from every source j
iik vi kkng 1 iii:m:i. 1
. , . , I
tax is strengthened
when we note
, ; , 1
1 1 b e nf f it rrl w n i-n r fr f thp fin nnnf
of net income over and above JSO
includes that received fro,, business
transactions and capital iincsted in
the I nited States, territories
and District of Columbia."
After Justice Day had thus given
the interpretation which the court
tad put upon the provisions of the
act. he proceeded to answer 'tarious
objections urged against the c istitu
tiona:i;y of the tax.
As to the contention it ws a direct'
tax and unconstitutional for the same,
reasons the famous income tax law
vas declared unconstitutional in 1SP5.
He pcir.t out the income tax was held ,
to be direct because imposed utn
property simply because of its owner-'
chip. In the present case, said Day. the
fix is not payabie unless there is a
carrying on or doing of business In
a designated capacity, and this is
rr.ade the occasion for the tas, mcas-i
nred by the standard prcscr'bed. The
difference Is between mere owner
fhip and the actual doing of business..
I . S. 11 row kk.
Discussing the objection
Forecast Till 7 P. M. Tomorrow for
Rock Island, Davenport, Moliae
T1- tnnzht and Tnesdav. warm
er. The temperature tonight will be
above the freezing point.
Temperature at 1 a. m. 28. High
est yesterday 4 2, lowest last night,
I Precipitation .10.
Velocity of wind
at 7. a. m. 3
miles per hour.
Stage of water 2.5, a fall of .1 in
last 4 8 hours.
Relative humidity at 7 p. m. 41,
at i a. m. .-o.
Onlv slight changes in the Miss-
issippi w ill occur from below Du-
buque to Muscatine.
J. M. SHERIER, Local Forecaster.
'From noon today to noon tomorrow.)
Sua sets 6. rises 6:OT: moon sets 6:33
a. m.; moon at greatest libra tion west
! Jaw 'evied a tax upon the exclusive
1 riht of the state to grant corporate!
.franchises, in that it taxed franchis-i
,.iti, ,v,..,h ,,o,-ic hop3.t nf
! state-create d franchises, are not be-
; ond the taxing power of the United
..jf it av fhe cnurU ..that
,he forrnins, lf a state corporation
IS OT IF.(llAI,.
As to the claim the tax is unen.ual
and arbitrary and made an unconsti
tutional distinction between rorpora
'tiors and partnerships or individuals,
f Dav declared there is a difference
h.tnw.n hiiKinp conducted hv these
i aTfTtVeht, devout s- 'i nax 'is
not ,,pon art.uai transactions, the
!court heid hllt vpfn privilege and ad i
was defended by Day as not being so
orhitrnrv and hase-
Jand then considered the publicity
merous oilier ouji'iuons i ic
j visions. He upheld these provisions.
'on the ground that congress, having a
j legitimate power of levying taxes, it
; also has the power to determine what ,
jaw and to bave aSKod tne department
of jllft(i(V to ,,erfoct lt.
j,rarre, . 15 vears before, the mi-
rnnrt nf th Vnited S,ates had
declared unconstitutional the income
tax measure enacted by congress. In
order to have a valid tax, the errors
of that law had to be avoided.
PllIT TCHIt'r ACT.
' . .
X HiaiM tilt . ..k.w..v - .
the house and senate were called to
1 he proposed corporation tax as a con
stitutional measure. It was -urged as
Mil a uual tilt cvo 'ii - - it " m o ci 1 t,cu e ,
Inferable to another income tax :
; oe aeciarea uncousucuuoiicii uu ;
I, tion than an InheHfanc tax When'
, ; to maxe tne most or tne cnance tm
;th tariff bill was in the senate, the ' tJr up ,nterP6t in 8peninfr. The
icorpcration tax provisions were ; m&tch for the girls, who will com-.-t
ried as an amendment to the Payne. pete for the McCabe trophy, w)il oc
bill passed by the house. They re-cur the week following, on April 27.
j trained there and became a part of the . Tne same ruieB and general p!an win
to report for work Saturday ruorn-
London. "March 13. The subscrip-! 5nS nd his employer went to his
tion list of the London share of j room " 51t2 KRip,ey stret,n d,sJ
! covered that the room was fnled with
53.soo.noo of the Il5.ooo.ooo issue; fumPS of as the gas jet , ,he
of the Mississippi River Power core-; room being partially turned. Med
pany " per cent sinking fund go!J ; jCal aid was given Board, who
; bond? was closed if noon today, j
teat tjenav:E bct-n open ony two hours. 1
KILLS IN DEFENSE
OF WRONGED SISTER
Tennessee Young Man Meets Girl's
Paramour and They Battle in
' Newport, Tenn., March 13. To
!av a tt- Vi a C VA oaaa r-t a r n-9B o 11 r t IT I O"
, """ "
idOTle his sistr. Kid well McSween, son
of Colonel W. J. McSween. a lawyer
and member of the -democratic state
j committee, engaged in a
John Pritchett, the girl's suitor, here
at an early hour, yesterday. Mc-
Sween was killed and Pritchett was fa
Pritchett, who is a railroad man, be
came acquainted with Miss Emma Mc
Sween more than a year ago, but the
members of her family objected to his
attentions, and then the couple met
clandestinely. In the effort to make
her forget Pritchett, Miss McSween's
j father sent her away to school, but
she left school, met Pritchett, and the
two went to Knoxville.
Members of the McSween family as
serted that the two had not been mar
ried. Miss McSween's brother then
armed himself. Pritchett was want
ed not to "return here, but he ignored
this, and when the two young men
met, the duel followed. They fought
in the darkness, without any eye wit -
nesses. Six bullets penetrated Mc-
pro-!Sween s body and three hit rritchett.
TROOPS IN TEXA
" m m mm ..w
Makes Hying Trip to Camp of Reg
ular Quartered at San
Pan Antonio, Tex., March 13.-
Contest for Grade Pupils to Ite Held
The second annual grade school
spelling match is to be held this year
in April. The arrangements have
been made for the contest to occur
on April 20, at which time the boys
of the city schools will compete to
see which is the best speller. This
form of competition w as introduced
by the Y. M. C. A. last year with
, . , , . . .
nrp roen it a c In tno u- n r L- in c H
frojQ la manifest-1
cd then it is safe to predict a warm
contest this year. The prizes will :
desirable and the plans calculated ;
! be followed as were used last year.
H. I Board Has a Close
H. L. Board of Alpene. Mich , who'
was an employe of George l Myers.
430 Brady street, Davenport, had a
narrow escape from death Saturday
by gas asphyxiation. Board failed
through the timely arrival cf Myers
win recover. v
Pemberton and Clark Ac
quitted by Springfield
BRIBERY WAS ALLEGED
Former Members of Legislat
ure Accused in Furniture
Springfield, 111.. March 13
9:45 o'clock last night after three
and one-half hours of deliberation, in
which about 21 baliots were taken
the jury in the trial of State Sena
tor Stanton C. Pemberton of Oak-
A MAN-OVER (MANEUVER)
1 land and of Former Representative
j Joseph S. Clark of Vandalia, charg-
; ed with entering into a conspiracy
! to secure money corruptly ror tneir
! votes in awarding the contract for
me lurnisning or ine senate ann
house chambers of the state house,
returned a verdict of "not guilty."
Both Pemberton and Clark were
! present. Before reading the ver- 1
I diet. Judge Thompson instructed the
1 crowd in the court room that there!
would be no demonstration no mat-j
iter what verdict was rendered.
! Neither of the defendants in the
case naa anytnmg 10 saj. and directors, after an ail day meeting
"noKS .not u.tkr fcts." j in the ruins of their plant here, Sai
State's Attorney Burke, following i urday night promised to re build the
the return of the verdict, stated thatjviliage and to pay every cent of actual
the decision of the jury did not alter
the facts in the case.
L0RIMER ASKED TO
RESIGN BY CHURCH
Moling Congregationalism Also Cen
sure Senator Oulloni in
Four hundred members of the
pirst Congregational church. Moline. 1
.. ;,.. . , j
iaai iii-iit ci owi 11 ( iiMi u-j
mandinK ,fce nation from the;
raited States senate of Wi,am Lori-1
mer and censuring Senator Shelby !
jj. Cullom for his support towards 1
the retention in office of the junior !nocn from the effect of exposure
. rn. ... ; that he was subjected to last win-
Ilhnois senator. The resolution;. . . , .
iter. .Ian. 22 he was found nearly'
states further that the members of I t rozen to death ln his nome whero;
the First Congregational church will;ne ,ived alone havi-g bn attacU. j
refuse to recognize Lorimer as Their jed by lUnesa when the thermometer i
representative in the T nited States! waa near tne zero mark and being'
senate. Senator Cullom is asked to
:de,IinP T a, t WIth Ixnmer in an n'-;of
I ficial capacity.
1 r" I
a, . '
1 r-xcavauon was negun ioaay tor tne
------ -- -r io ,
npw chl,rch l"zt ,he Central Presby-:
tcrian ccngregation will erect
corner e.f Tenth avenue ar;d
FISHER TAKES OATH;
BALLINGER IS OUT
Washington. March 13.-
L. Fisher of Chicago took oath :o-
day as secretary of the interior, 6uc-i
IS NOT EXPECTED
Taft Playing Golf at August. Ga.,
and Has Not Considered the
Augusta. Ga.. March 13. The
president played golf early this
morning. The president has not yet
considered the papers in the appli
cation for a pardon for Banker
Morse. It is said the best banker's
friends expect is a commutation of
sentence to five years' imprison
ment. Augusta. Ga.. March 13. President
Taft had a rest yesterday. He motor
ed to the station in the morning to
meet Mrs. Taft and Miss Helen Taft.
They attended service at St. John's
Methodist church. The presidential
party were guests at luncheon of Lan
don Thomas. Tonight they took a long
motor ride. The president has not yet
looked at the papers in the case of
Charles V. Morse and John R. Walsh,
former bankers, who seek pardons.
College Head Found Dead.
Baltimore, Md., March 13. Rev
Francis X. Brady, S. J., president of j
Loyola college and pastor of St. Ig
i iie hbii pit. iniu ji cr. in engine!" onu n ; ii .
'was run to the pit while Chicuros ' tti.kiiii ikivki puhtmm tii.
natlus Catholic church was found ! was at work there and he did not Portsmouth. N. II . March I.'!.
dead in bed today. Anginia pectoris see it coming until it was too late' The battleship, Washington todav
was given as the cause. .to escape. He was caught between ' started for Guantanamo with a full
TO PAY ALL LOSSES
Will Rebuild Village of
1'lea.vant Prairie, Wis., Wrecked
Pleas-ant Prairie. Wis., March 13.
The Dupont Powder company officials
loss sustained by any person as a result j
of the explosion Thursday night. The!
promise was made by T. P. I-Affey of
Wilmington, Del., general counsel for 1
the company. j
The company plans to rebuild at !
i least a portion of the mill at once !
! The managers admitted that the plant i
. . .... ; 1 - 1 : , 1
amount of business previously don" 1
lere will be transferred to the new I
plant at Hibbing, Minn.
( ImrleK Suannn. (trw.n I i ..,..-
- - - ... .
s' "al ) i
er livine two miles south f .wn i
died at 2 o'clock yesterday after-j
. unable to ,julld a fire. The effects
the ordeal finally resulted in his
i death He was 72 veara of ubc ur.,1
nad l'ved in this vicinity 6ft years. '
He leaves three sons.
He leaves three sons, Melchor, AI-
bf.rt and Frank. an 1:vin- on the
home farm and 6,..er Mrg IfN
Samuelson of Springfield. Ill The
funeral will be held at 1:30 to-
morrow witn interment in the Luth-
. . .
LANDSLIDE ON VESUVIUS
i Ijirge Section oi Earth Kails, Dam-
n Funicular Itailvvav.
Naples. March 13. A severe '
earthquake, accompanied bv strong
detonations from Mount Vesuvius,
UNITED STATES UNLIKELY
TO TAKE THE AGGRESSIVE
occurred last evening. Investiga
tion showed that a great landslide
had dropped from the upper part
of the crater. It is estimated that
it measured 1.000 by 2."0 feet, and
when it fell it caused enormous
clouds of smoke.
The Funicular railway was badly j
damaged. A party of tourists were
about to ascend by the railway when j
the shock occurred. j
BURIED IN !NE!Reports TeM f Fresh Ba'es
! in Which Insurrcctos Gen
Ten Bodies Recovered at Vir
ginia, Minn., and Search
THAW CAUSED ACCIDENT
Body of Ore Slipped Down I'pon
Men Three Caught in Simitar
Accident at liilbert.
Virginia, Minn.. March 13 Search
for the remaining unfound victims of
of the cavein at the. Norman mine Is
still being prosecuted by a small
army of workers, but so far without
success. Today men commenced
work on a mass of ore and debris
blocking the passages. Official es-
Ltimates p!ace the deaths at 1 4 to 15.
ait mhiik cr i .ii r.
Vireinia, Minn., March 13. Ten bod
ies have been recovered from the Xor-
, man open pit mine, where a cave in
j Saturday evening buried 2fi miners,
I The mine officials are bending every
fuun ic ream me oiner uouies. i no r. i k xnv.
cause of the avalanche Is attributed i "There can be no excuse for in
to the thaws of the last few days loos-'. tervention," continued Dickinson,
eninj; bowlders and earth and forcing j "unless the Mexican government
the ore body to slide toward the bot- i prove negligent In protecting tho
j torn of the pit.
Officials and miners are noncommit
tal and guards are stationed about the
works to prevent entrance of those
not identified with the plant.
0n RESri KI) KROM CAVK-IX.
Gilbert. Minn.. March 13. Captain
Renny of the Elba mvn. ho with two1
miners w as buried iij aiye ln Satur-
day, was rescued yeste. morning, i
X4e.-ia Bjiners-wr kiried-. -ffprmy-'
is in a critical condition, being still
unconscious, and may die.
ENGINE HITS A LABORER
Harry ChivuroM Injured at Burling,.
ton lioniHiiiouxe. i
Marry Chicuros, a Greek laborer:
employed at the Burlington round-
house in this city, sustained painfull
j injuries about "i:30 last evening ', Place Saturday, the Insurrectos flnal
! while at work shoveling ashes out of: ,v capturing the town with the bins
l.i 1- ; . i . . i 1 1 f Ann IrMlnH o.f 4aa,
the pilot and the rails and was bad-
ly bruised, although the engine, was
stopped so quickly that he was not ser
iously injured. He was taken in the
city ambulance to his rooming place
at 2ISV2 East Second street, Dav-
I PART OF MAINE RAISED
, Cover of Forward Turret Taken from
j the l.ttom of llurlx.r.
' Havana, March 13. The cover of
the forward turret of the battleship
Maine was raised yesterday. It
woiL'hs 2o tons and is ! feet in diam
eter. The great piece of iron iH tin
warped, although the 3u heavy bolt.s
(that held it In place are sheared In
'half as if with a sharp knife. During
! the last fortnight pile driving has
I been suspended because of an ob
struction in the bed of the harbor.
This proved to be the turret toy.
TAX COLLECTOR IS ROBBED
.Maskctl .Man Holds I l.lvwnl
! Aubery in Carroll County.
' Sterling. 111.. March 1:;. tCdwtird
: Aubery tax collector of Freelom
township. Carrol! county. was
held up at the point of a revolver
by a masked robber latf Haiurday
niht and rob x-d of $."!" tax money
he had collected durin:; the y.
BALLOT BOX WAR
Chicago, March 1 3
;n the c ounty cuai t today crdeied the
election cf c omrji.ssio;ieik cjf Cook
county not to suvrf-ii'ii r tne ballot
boxes of the? Foiiitii-and Tw c i.ty-bfth
senatorial d.tri t.s upon 'he jider
issued by the state: legisjture. Fitd
.j. Crowley, who is contesting the
election in the Third congi tinional
di.trwu which wi pan. ,r both
th above senatorial district., filed
objection to the removal of th
boxts. Should the
tempt to overt Ide the commission'-n
it is paid the latter v i:l ..-k t;:e
federal court for a restra ins order.
Secretary Dickinson Ex
pects No Invasion of
EXCUSE IS WANTING
Washington, March 13.
, ine uprising m Mexico has
spread to the states of Coa
i huilo and Morelos. Telegraphic
j communication with both states
i is almost destroyed and de
j tails are lacking.
Wll.l. SOT llVADR.
New York. March 13. "I do not
believe there will be any movement
of our troops into Mexico." Thin
i was the statement here today by
I Secretary Dickinson, who had plan
! ned to sail for Panama tiis after
Later he decided not to sail at
'once, complications liainK arisen in
jthe negotiations between the Pan
ama railroad and steamship lines
! operating for the government which
necess tated his remaining her a
day or two.
persons or property of foreign resi
dents, and such negligence would
have to be firmly established, in mv
opinion, be fore any such step could
bo taken. There are no conditions
now existent to give us such war
rant. ItKiriftK .'u.K row F.
"In order to maintain the neu
trality Ijws," he continued, "it hai
been deemed . advisable to send
troop to the border and on account
of the Immense length of th fron
tier and the fact that the Rio Grand"
can be crossed at most any po'nt,
a larger number of troops has been
dispatched than would otherwise
P.iso, March 13. A dispat li
from V-avojoa, Sonora, states then
as a s-P'ilted engagement at that.
crew of 900 men on board and lhe
magazines, bunkers and storerooms
containing enough ammunition, coal
and sustenance to keep it supplied
for several week"?.
KAMIMI I' tl KS I'KOI'I K.
El Paso, Tex . March 13 -StoilcH
of suffering throughout northern
Mexico continued to reach here to
day. A courier from a point north
of the city of Chihuahua reported a
famine faced the ?",oih Inhabitant
there. The siege of (be city had al
ready continued eight days and wo
men and children, allowed to ene.
are now roaming the round v.
III.WIO'S l.S S..
Douglas, Ariz, March 13. An
American gained enframe to the
ramp of ficneral Blanco last night
after a battle a rosn from I)ouglan.
Blanco said the rebels could account
for only one killed and two iuKr ng.
Blanco has been receiving considcr
. able reinforcements ami ik irepared
to metf the advancing federals
OKI lilt t IIO 'I'll. I. WKIIM MMY.
Mexico City, March 13. Action on
flu: L'ov eminent 'h iiumsij re imolvlng
the cause of tli" cnt tution which
provides for the suf pension of per
sona! guarantees where deemed -liedi'
nt. urnler t x' raordinarv rondi
fioiiH has been deferred until Wed
nesday. 1 liit pot iiik li;st.
i Douglas. Ar'. March 13. All
, night the rneHSH east and went of fh"
border town of Agua 1'iieta were
'doffed with signal fires f the rebel..
i A front: fTe of iugurrc ton Is report-d
but a s;.ott distance away.
j I'tMl l MKIK O.
! K! Pasfj. Texas. March - p.mie
conditions prevail thrrughout north
-rn Mexico bec-mse of t'ie serious
turn In the revolutionary movement
twilfin lhe lat few days. M' d to
Judge Owens' the far is the danger of a shortage In
tic-eaufe of lhe desfricfioi. of
l-lan'a'ioiis by th" fl'-hilng foucs
The: aiino'ii cene-n' ty the Diz gov
errum nt that i will reve rt to the Ion
dc'imant clause In the coti-tiitutiou
which penults It to ;:! fx-nd civil trial"
and substitute martial four's, ith
L,jmmirv death ac the punishment for
al! caught In ?nv act of violence-, ban
V lndled race in the ln irre ' rot' ranl:i
arrd they will rtg!iafc
loi.KiH u: n.v
! -1 f j! to the F'atornent of f h gov
- . ... ....
iCootloucd co ra fccvea.)
mmmmmmimmmm r- - - ' - '