New-York tribune. [volume], January 06, 1910, Page 5, Image 5

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OPPOSED BY HUGHES
FEDERAL IXCOME TAX
Governor Thinks Congress
Resolution Is Too Broad.
IBj- T*l«SX*Ph to The Tribune.]
Albany. Jan. 5. — Governor Hughes has
started a lively controversy over the In
come tax resolution by transmitting to
the Legislature the proposed constitu
tional amendment adopted by Congress
with a .recommendation that it be rot
ratified by the Legislature of this state.
The Governor docs not oppose a federal
Income tax. On the contrary, he ex
pressly favors one; but maintains that
the language of the resolution of Con
gress is pc broad as to permit the tax
ation of Incomes from state and munici
pal bonds, and so interfere with the sale
of th*»«> securities.
The result of this message at present
cannot be foretold. Many think it will
prove as Important as the Governor's
reto erf the 2-eent fare bill and will
furnish *. legal argument for opponents
of the income tax resolution proposed
for consideration now In all the states.
Legislators In both bowses listened with
great interest to its reading, but most
of them declined to comment on it be
cause they have not had time to study
the proposition. It seems probable that
moot of the Democrats will support the
federal resolution in any case.
Many Republicans are against the in
come tax on general principles. Speaker
Wadsworth and Mr. Merritt, majority
leader of the Assembly, both are under
stood to be in this class. Senator Hin
man paid he was rather in favor of the
tax in general, but could not say what
his position on the specific resolution
would be. as he had not studied it. Sen
ator Cobb raid he was against the tax
on general lines, but he. too, had not
studied the Governor's case, although he
thought it would be likely to produce
considerable opposition to the resolution
of Congress, even among "advocates of
the income tax. Senator Agnew took a
somewhat similar stand.
Senator Bayne. Democrat, said he con
sidered himself bound by his party's re
cent national platforms to vote for an
Income tax, but had not had his 'day
in -ourt" on this proposition, and didn't
know what he should do with it. Sena
tor Wagner. Democrat, of New York,
said he favored an income tax, and be
lieved the Governor was wrong in his
contention regarding the taxation of in
comes from state and municipal bonds.
GOVERNOR'S SPECIAL MESSAGE.
The Governor's message dealing with
the income tax follows:
To the Legislature.
I have received from the Secretary of
State of th« United States a certified copy
of a resolution of Congress entitled "Joint
Resolution Proposing an Amendment to the
Constitution of the United States."' and in
accordance with his request I submit it to
your honorable body for such action as
say be had thereon
Tn« amendment proposed by this Joint
resolution, adopted by two-thirds of both
nouses of Congress, is as follows:
"Article XVI. The Congress shall have
pew«r to lay and collect taxes on incomes,
from whatever source derived, without ap
portionment among the several states and
without regard to any census or enumera
tion."
The power to lay a tax upon incomes,
without apportionment, was long supposed
to be possessed by the federal government
and has been repeatedly exercised. Such,
taxes were laid and paid for the purpose
of meeting the exigencies caused by the
Civil War.
In IBSS. in the case of Pollock agt. Farm
era" Loan and Trust Company (158 U. 5.,
801), the United States Supreme Court de
cided that taxes on the rents or income of
real eetat*- and taxes on personal prop
erty or on the income of personal property
are direct taxes, and hence under the Con
stitution cannot lx; imposed without appor
tionment among the several states accord
ing to their respective populations.
It as not the function of the court, and
it did net attempt, to decide whether or
not a federal income tax was desirable. It
simply interpreted the Constitution accord
ing to the judgment of the majority of its
members, and left the question of the ad
visability of conferring such a power upon
the federal government to be determined
is the constitutions! method.
JUSTICE HARLAXB VIEWS.
The limitations so placed upon the fed
eral taxing power are thus described by
Mr. Justice Harlan In his dissenting opin
ion:
'Any attempt upon the part of Congress
to apportion among the states), upon the
baEls simply of their population, taxation
ci personal property or of incomes would
tend to arouse such indignation among the
freemen of America that it would never be
repeated. When, therefore, this court ad
judges, as It does now adjudge, that Con
gress cannot impose a duty or» tax upon
personal property or upon income arising
either from rents of real estate or from
personal property, including invested per
sonal property, bonds, Blocks and invest
ments of all kinds, except by apportioning
the sum to be so raised among the states
faccording to population, it practically de
cides that, without a.i amendment of the
Constitution— two-thirds of both houses of
Congress and three-fourths of the states
concurring — property and ■• Incomes can
never be made to contribute to the
support of the national government. (Id..
pp. Cl, 2.) . . .
"Incomes arising from trades, employ
mtnts, callings and professions can be
taxed, under the rule of uniformity or
equality, by both the national government
and the respective state governments, while
incomes from property, bond*, stocks and
investments, cannot, under the present de
cision, be taxed by the national government
-except under the Impracticable rule of ap
portionment among the^states according to
population. No sound reason for such a
•iscrinmuuion has beer, or can be sur
gested.' (la., p. ttO.j *
I am in favor of conferring upon the
federal government the power to lav and
collect -n income tax without apportion
ment among the states according to pop
ulation. I believe that this power should
be held by the federal government so a*
properly to equip it with the means oX
meeting national exigencies.
But toe power to tax incomes should not
be granted in euch terms as to subject to
federal taxation the Incomes derived from
tonic issued by the state itself, or those
Issued by municipal governments organized
under the state's authority. To place the
borrowing capacity of the state and of its
governmental agencies at the mercy of the
federal taxing power would be an impair
ment of the essential rights or the state
which, as its ©facers, we are bound to
defend.
PROPOSAL TO AMEND CONSTITUTION.
You axe called upon to deal with a
specific proposal to amend the Constitu
tion, and your action must necessarily be
eetensined not by a genera.] consideration
of the propriety of a just federal income
tax. cr of giving to the federal govern
ment the power to lay such a tax, 'but
whether or not the particular proposal is
of such a character as to warrant your
itTtnt
This proposal is that the federal govern
ment ■hall have the power to lay and
collect taxes on incomes "from whatever
source derived."
It is to he borne in mind that this is not
a mere statute to be construed in the
li j&t of constitutional restrictions, express
or Implied, but a proposed amendment to
th» Constitution Itself which,* if ratified
will be in effect a grant to the federal
wwjenunent of the power which it defines.
The comprehensive words, "from what
ever source derived," if taken in their
r.&- -ra! sense, would Include not only mr
ro * n «* from ordinary real or personal prop
•«T. but also incomes derived from «tat»
and municipal securities. i
it may be urged that the amendment
JojJd be limited by construction. But
*£«« .Jf 0 be no satisfactory assurance of
An - J ** worde in terms are all -inclusive.
«? l ."2 l *2* ni «nt .to the Constitution "of the
£$•»** ****• i« the most important of
?^!!i^L tcta> and •*•** should be no
tSISiX 111 • x P *«<» in such terms as to
Jtrt^li.M* °Pp°« unl for federal action
i" SSKSt&ffi! *»*«•«•*• condition,
L*? 1 *!? 01 Dow ref « r l ng to the advantage
w.«ich the states might derive from the w
tXTL'SrZ to tax inc °nies from prop
erty . or to the argument thai for this reL
£ n JfthiSS? 8 / *2 Vl* V h income, should
be withheld from the federal government
To that argument l do not assent
LOWER RATES OF INTEREST PAID.
I am referring to a proposal to authorize
a tax which might be laid in fact upon
Urn iMtrJSMStaJitles or it*tt government •
Ir. order that a market may be provided for
f u .* I bond ». and for municipal bonds and
that thus means may be afforded for state
and local administration, such ■ securities
from time to time are exempted from taxa
tion. In this way lower rates of interest
are paid than otherwise would be possible
To Permit such securities to be the subject
of federal taxation Is to place such limita
tions upon the borrowing power of the
state as to make the performance of the
functions of local government a matter of
federal grace.
This has been repeatedly recognized. In
*£*„ case of The Collector a^t. Day Ul
\\all, on p. 127). decided in ISTO, the United
States Supreme Court uald:
"It is admitted that there is no express
provision in the Constitution that prohibits
the general government 'from taxing the
means ana Instrumentalities of the states,
nor is there any prohibiting the states from
taxing the means and instrumentalities of
that government. In both cases the exemp
tion rests upon necessary implication, and
is upheld by the great law of self-preserva
tion: as any government whose means are
employed in conducting its operations, if
subject to the control of another and dis
tinct government, can exist only at the
.mercy of that government, of what araii
are these means if another power may tax
them at discretion?"
In the case of Pollock agt. Farmers' Loan
& Trust Co. (167 I*. S.. on pp. 684-5). Chief
Justice Fuller said, referring to the tax.
upon incomes from municipal bonds, one of
the matters there involved:
"A municipal corporation is the repre
sentative of the state and one of the In
strumentalities of the state government. It
was long ago determined that the prop
erty and revenues of municipal corpora
tions are not subjects of federal taxation.
- . . But we think the same want of
power to tax the property or revenues of
the states or their Instrumentalities exists
In relation to a tax on the Income from
their securities." _
In the same case Mr. Justice Field said
(Id., on p. COl):
"These bonds and securities are a." im
portant to the performance of the duties
of the state as like bonds and securities of
the United State.! are important to the per
formance of their duties, and are as ex
empt from tlve taxation of the United
States as the former are exempt from the
taxation of the states."
And the learned Justice added quoting
from United States agt. Railroad Com
pany (17 Wai 1 , on pp. 822. 327) as follows:
"The rl*ht of the states to administer
their own affairs through their legislative,
executive and judicial departments, in their
own manner through their own agencies, is
conceded by the uniform decisions of this
court, and by the practice of the federal
government from Tt-s organization. This
carries with it an exemption of those agen
cies and instruments from the taxing power
of the federal government. If they may be
taxed lightly, they may be taxed heavily:
If justly, oppressively. Their operation may
be impeded and may be destroyed ii any
Interference is permitted. Ki-nce, the be
ginning of such taxation <s not allowed on
the one side, Is not claimed on the other."
MUNICIPAL BONDS EXCLUDED.
While the justices of the court in the
Pollock case differed In opinion upon cne
question whether a tax upon incon.e from
property was a direct tax and as such
could not be laid without apporti^nmtnt,
they were unanimous in their conclusion
that no federal tax could be laid upon the
income from municipal bonds. Mr. Justice
White, v.ho dissented In the Pollock case
with regard to other question, as to this
said (U. S., on p. 652):
'The authorities cited In the opinion are
decisive of this question. They are rele
vant to one case and not to the other,
because. In the one case, there is full
power in the federal government to tax,
the only controversy being whether the
tax imposed is direct or indirect; while
in the other there Is no power whatever
in the federal • government, and. therefore,
the levy, whether direct or indirect, is
beyond the taxing power."
It is certainly significant that the words,
"from whatever source derived." have
been introduced into the proposed amend
ment as if it were the intention to make
it impossible for the claim to be urged
that the income from any property, even
though it consist of the bonds of the state
or of a municipality organized by it, will
be removed from the reach of the taxing:
power -of the federal government.
The immunity from federal taxation that,
the state and its instrumentalities of
government now enjoy is derived not from
any express provision of the federal Con
stitution, but from what has been deemed
to be necessary implication. Who can Bay
that any such implication with respect to
the proposed tax will survive the adoption
of this explicit and comprehensive amend
ment?
We cannot suppose that Conarress will
not seek to tax incomes derived from
securities issued by the state and its
municipalities. It has repeatedly en
deavored to lay such taxes and its efforts
have been defeated only by implied con
stitutional restriction which this amend
ment threatens to destroy. While we may
desire that the federal government may be
equipped with all necessary national
powers in order that It may perform Its
national function, we must be equally
solicitous to secure the essential bases of
state goverrment.
I therefore deem it my duty, as Governor
of the state, to recommend that this pro
posed amendment should not be ratified.
CHARLES E. HUGHES.
Albany. Jan. 5. 1910.
OPPOSED TO INCOME TAX.
New Jersey Legislature Expected to
Vote Against Amendment.
[By Telegraph to The Tribune. 7
Trenton. N. J., Jan. s.— There is a strong
probability that if the amendment to the
federal Constitution providing for the im
position of an income tax comes before
the Legislature, which meeta on Tuesday,
it will be overwhelmingly defeated.
Nearly all of the Republican leaders ln
the state, including the two United States
Senators, are said to be strongly opposed
to the tax, on the ground, they assert.
that the greater part of the impost
would have to be paid by the four states
of New York. New Jersey, Ohio and Mas
sachusetts.
It is not known whether or not Governor
Fort will touch on the income tax in his
annual message on Tuesday.
TIGHT IN TEMPERANCE RANKS.
Prohibitionists' Attitude Too Radical.
0. R. Miller Believes.
[ By Te>g'raph to The T'ibun^. ]
Albany. Jan. s— lt looks as though the
temperance reformers, who all these years
have been conducting the fight against the
old order of things ln close harmony, are to
have a neht amonc themselves. Temper
ance and prohibition organizations of th©
state are arranging to hold a meeting here
next Wednesday to consider excise legisla
tion. But from the attitude taken by O.
R. Miller, secretary of the International
Reform Association, who appeared at the
Capitol to-day, there will probably be little
agreement. He is particularly incensed
against the Prohibitionists and their state
chairman. C. E. Pitts.
Mr Miller is of the opinion that the posi
tion taken by the Prohibitionists ln asking
for the abolishing of intoxicating drinks
altogether is too radical. He Intimated that
there would be some unpleasant things said
about Mr. Pitts and th* Prohibitionists at
the rm-^tlns: next Wednenday, it being be
lieved, he said, that the Prohibitionist!) were
accomplishing nothing in the cause of tem
perance because they were trying to go too
far.
ffiiifefiock.
A Health-Guarantee to be Found in No Other Water,
Because:
I— The ONLY Water put up in STERILIZED
bottles;
2— The ONLY Water— Domestic or Foreign
—which is NEVER put in a bottle that
has been used before.
"The World's Best Table Water"
MEW-TOES DAILY TRIBUNE, THURSDAY, JANUARY 6, 1910.
PEACE AT ALBANY
LEGISLATURE OPEXS.
Organization of Both Houses
Effected Quietly.
fßy Te/»«raph to The Tribune. 1
Albany, Jan. 5. — Organization of .both
houses of the Legislature was effected to
day in quiet fashion which seemed a dis
tinct anti-climax to the torrid talk about
revolt and battle which has hung about the
hotel lobbies and Capitol corridors for a
couple of day?. Senator Jotham P. Allds,
of Chenung-o County, wns elected temporary
president of the Senate by a vote of 34 to
6, the Democrats voting for him, after a
purely perfunctory contest had been made
in which Senntor Hinman received 7 votes
to Allds's 24. Ray B. Smith was elected
clerk of the Assembly by a vote of 88 to 3
for James A. Francis.
Seemingly there exists no feeling of
rancor among the Republicans of either
side in the leadership controversy. After
his election Senator Allds made a brief
speech expressing a desire for a united Re
publican body in the Senate. Senators
Tinman. Rose and Agncw and others of the
"Hinman Senators" have expressed to Sen
ator Allds and numerous other Republicans
a desire to work in harmony with the new
leader.
When the Senate convened this morning
Senator Allds's name was presented for
temporary President by Senator Davis, of
Buffalo. Senator Brackett. in a substitute
resolution, named Senator Hinman. The
vote on this substitute was 24 to 7. Senator
Hinman not voting. On the final rollca.ll
the Democrats voted, according to Senator
Grady, with the member "favored by the
majority of the majority."
Those who voted for Allds were Senators
Allen, Alt. Brough. Burlingame, Coats,
Cobb, Davis, Emerson, Gledhill, Orattan,
Hamilton. Heacock, Hewitt, Hill. Holden,
Hobbs, Kissel, Mackenzie, Meade, Platt.
Schlosser, Travis, Watnwrlght, Witter, Re
publicans, and Dayne, Caffrey, Cronln, Cul
len. Gardner. Grady, Harden, Ramsperger,
T. D. Sullivan and Wagner, Democrats.
Hlnman's supporters were Senators Ag
new, Conger, Cordts, Davenport, Newcomb
and Rose, Republicans. Senators Allds,
Hinman and Brackett were not recorded.
SPEECH BY SENATOR ALLDS.
In a brief speech Senator Allds thanked
the members for this honor, saying that he
recognized the right of each man to his
convictions on a given subject.
"This comes wlt#a burden to any man—
to pick up that which the mighty man was
compelled to lay down," he continued. "I
think I enter upon the discharge of the
duties of thiß position wtth a keen apprecia
tion of the responsibility that Is involved,
and I want to say to the entire majority
that from this time they will find that I
will endeavor to lead wisely and well as
far as it is given to me so to do. I trust
that there will be between us and our Re
publican friends on the other side no lines
of cleavage; nor would I have accepted the
nomination to this position if I had not seen
that among the majority the decision was
being made not along any possible line of
cleavage that may have existed in our own
councils in the past."
The death of Senators Raines, McCarren
and O'Neil cast a gloom over the opening
of the Senate. Lieutenant Governor White
paid tribute to the departed members, as
did Senator Allds in offering a resolution
that adjournment to next Wednesday night
be taken in respect to their memories. In
contrast to the gay floral display on the
desks of most members were the simple
wreaths placed on those of Senators Raines
and McCarren. Senator Coates, Mr.
O'N'eil's successor, occupied his seat to
day.
THE ASSEMBLY SESSION.
The Assembly organized by electing the
officers who were chosen at the Republican
caucus last night. Nearly every member
was in his seat at noon, and the routine
business of the first session was carried
out without a hitch. Not even a ripple of
excitement was caused by Assemblyman
Bennnett, when the vote was taken for
clerk. Mr. Bennett voted for James A.
Francis when his name waa called. As
semblymen Frederick A. Higgins and
Lindon Bateß Jr., also voted for Mr. Fran
cis. All the other Republicans, including
the Speaker, voted for Smiih. Peter Acrl
telli, the candidate of the Democratic cau
cus, received fifty-three votes. John T.
Roberts, who waa elected on an Indepen
dent Republican-Democratc ticket, defeat
ing ex-Assemblyman Hammond, of On
ondaga County, refrained from voting.
James W. Wadsworth, ji., of Livingston,
was re-elected Speaker, all the Republicans
voting for him. The Democrats supported
Daniel D. Frlsbie. of Schoharie County.
In his speech thanking the members for
the honor conferred on him. Speaker Wads
worth said, in part:
We are charged not only with the duty
<JI voicing tiie known crystallized senti
ments ol our constituents, Lut also of
thinking and deciding for ourselves to the
best of our ability.
The aJOßurdly amall vote cast throughout
th* mate on tnc constitutional amendments
and the referendum submitted to the peo
ple at the recent election indicates v*»ry
clearly that it Is next to Impossible for
the people to become sufficiently acquainted
with the details of legislation to enable
them to pass upon matters of tnia sort wi^h
intelligent discrimination. And it proves
once more, if Indeed any additional proof
were -necessary, that it is essential that
the people at large delegate their legis
lating power, including the consideration
of essential details iind governmental poli
cies as expressed in legislation, to a rep
resentative and thoroughly responsible body
of men, and that in the long run the peo
ple must trust their Legislature to do this
work for them.
CITIZENS UNION TO OPPOSE BILL
Measure Said to Provide for Massa
chusetts Ballot Without Its Advantages
[By T^leg-raph to The Tribune]
Albany. Jan. s.— Assemblyman Ward,
who, at the last two sessions of the Leg
islature, fathered the legislation of Her
bert Persons, to-day introduced a Massa
chusetts ballot bill with the advantage of
the Massachusetts ballot left out, accord
ing to the advocates of that plan. The
bill amends the election law by providing
that on the election hallutb the names of
candid.-ite.s of the several parties shall be
printed in columns under the designation
of the respective offices in alphabetical
order and shall appear only once. This
part of the bill is favored by the Massa
chusetts ballot advocates, but they object
to a section providing that »he party em
blems shall be printed to the left of the
first column, so that electors, by putting
a cross in a circle surrounding a party
emblem, ran vote a stTalgnt ticket.
It Is contended that the advantage of
tht> Massachusetts balloi. 'n encouraging
the electors to vote for the l> >Bt men, will
be done away with by this provision. This
proposition has been discußsed by the
Citizens -Union, and Ivs secretary. J. O.
Hammitt. announced to-night that the
union, an well as other advocates of the
Massachusetts plan, would oppose the bill.
TO HELP GOVERXOR.
Short Ballot Organization Will
Take Up Hughes Reforms.
Following the Governor's advocacy of an
appointive state cabinet to take the place
of the present state elective officers, an
nouncement was made last night of the
preliminary organiation, to be known as
"The Short Ballot Organization." which has
for its chief object the furthering of meas
ures looking toward a reduced ballot.
Woodrow Wilson, president of Princeton
University, is named as president of the
new organization, and Richard S. Childs i«
secretary. Its Hat of vice-presidents in
cludes the names of Winston Churchill, of
New Hampshire, and Horace E. Deming,
of this city. The advisory board includes
Lawrence F. Abbott, Henry Jones Ford.
Norman Hapgood and Professor F. J.
Goodnow, of Columbia University.
The prospectus sets forth that the great
power of machine politicians rests on the
fact that an unwieldy ballot makes it Im
possible for a voter to choose candidates
upon their merits, except in the case of
importani positions which lead the ticket,
and as the "short ballot principle" they
advocate, first, that only those offices
should be elective which are important
enough to attract and deserve public ex
amination, and. second, that very few of
fices should be filled by election at one time,
so as to permit adequate and unconfused
public examination of the candidates.
The short ballot, they say. will concen
trate the attention of the voters sharply
upon the candidates named, and laler, dur
ing their terms of office, the small number
of elective officers would enable the pub
lic to place a concentration of responsi
bility upon them, which under the present
system is so divided and scattered among
hundreds of elective officers as to nullify
its effect.
APPROPRIATION BILL IN.
Calls for About $23,750,000, an Increase
Over Last Year.
Albany. Jan. s— The annual appropriation
bill, which ordinarily does not reach the
Legislature until the session is w,ell under
way, was introduced in the Assembly to
day.
The bill calls for appropriations amount
ing to about $23,750,000, an increase over last
year's bill of about $2,355,000. The constitu
tional amendment increasing the salaries
of Supreme Court justices adds about
$390,000 to the state's expenses and the gen
era! growth of state departments accounts
for the increase. In the prisons and lunacy
departments the Increased prices of foods
and supplies generally are an important
factor.
MUCH TIMBER GOING TO WASTE.
Enough to Supply State with Wood for
Years, Says Whipple.
Albany, Jan. 6- — That there ia sufficient
timber lying on the ground and going to
waste in the Adirondacks to supply New
York State with wood for years ia pointed
out by Commissioner Whipple of the For
est, Fish and Game Department in his an
nual report to the Legislature to-day. He
advocates a constitutional amendment giv
ing the state the right to build roads
through the forest preserve, to use the
great water power annually lost, to permit
the leasing of camps sites and to remove
down timber, thus bettering conditions as
to fire protection.
The Commissioner aiso recommends the
acquisition of a million acres of land ln the
Adirondack preserve and four hundred
thousand acres in the Catskills; that the
law permitting the shooting of buck deer
until November 15 be repealed, and that land
dedicated to tree growing and planted witii
trees be relieved from Increased taxation
for thirty years.
HARMCN PLANS LONG FLIGHT.
Will Attempt Balloon Trip from New
Mexico to Atlantic.
Los Angeles, Jan. a.— Clifford B. Harmon,
of New York, announced to-day that if he
could obtain a proper gaa supply at Albu
querque. N. M., he would make that place
his starting point for a trip in his bal
loon, the New in an attempt to break
the world's distance record, reaching the
Atlantic Coasr # if possible. His reason for
not starting from Los Angeles is that he
fears he would meet adverse w v inds. From
Albuquerque the prevailing winds would
bear his balloon eastward.
Declaring that he knew nothing of an in
junction issued against him at Buffalo,
Glenn H. Curtiss arrfVed to-day and an
nounced that he would enter as many of
the events at the aviation meet next week
as possible.
O'Neill-Adams 6
(Established 42 Years)
TO-DAY'S NEWS
*B <ig Reduction Sale
of
Women's Fall and Winter Suits
to
Effect an Early Clearing.
• Both Buildings.
Were $19.75 to $29.75
Reduced to
$12.75, $15 and $19.50
In all the latest modeis and fabrics.
Also
Skirts in a special pleated model,
made of various materials, at $3,95.
Besides these
Large reductions have been made in
Reception Gowns, Dinner Gowns
and Walking Dresses.
We Qivc and Redeem Surety Stamps
2 o s ,i,t£s, ONOLL-,\DAMS<9 *o*t£r st
F.A\fIEI«ZE PLEADS
READY FOR STRUGGLE
Determined to Contest Mer
cantile Bank Charges.
Fritz Augustus Helnie is back from
Montana ready to engage ln what appears
to be another long tussle with the courts
over the matter of his management of the
Mercantile Natlona. Bank. He looked de
termined rather than defiant when he
entered the United States Circuit Court
yesterday morning with his brother, Arthur
P. Heinze, ready to plead not guilty *• the
indictments that had been returned against
him for misapplication of the funds of the
bank and tor conspiracy to obstruct justice
by taking out of the federal crand jury's
reach records that were considered essen
tial to its investigation.
Arthur Heinze. who came on from the
West wtth his brother, was there because
he, too. had been Indicted on the con
spiracy charge, as had been Carlos War
field, first vice-president of the Ohio Copper
Company, a Heinze concern. Calvin O.
Geer, a clerk of H^lnze's United Copper
Company, and Sanford Robinson, who was
once counsel for the company, were also
Indicted. As In the case of the Heinzes
and Warfield. pleas of not guilty were
entered for them by their counsel.
John C. Tomllnson and Stephen Brooks
Rosenthal appeared for F. A. Heinze.
William Rand. Jr.. for Arthur P. Heinse.
John B. Stanchfleld for Warfleld and Geer
and Joseph P. Cotton, Jr., for Robinson.
Mr. Tomlinson apparently had been desig
nated to lead the legal forces in the Urat
skirmißh with United States District At
torney Wise and his aida. He soon showefl
that Heinze wa.« going to make a fight.
Th»» Intentions of Heinze were disclosed
when Mr. Tomllnson and Mr. Wise arrived
at their first difference of opinion in the
proceedlngs. It came when Heinze's lawyer
asked for a delay of two weeks to prepare
a motion to quash the indictments. That
brought Mr. Wise to his fe& with the
declaration that the defendant's lawyers
had had plenty of time to define their
course, for they had been informed almost
a month ago, he said, of the nature of the
indictments, which were returned by the
grand jury on October 12.
"Well, we've decided what we want to
do," replied Mr. Tomlinson. with spirit.
"We have our demurreT here now and a
motion to quash, but new facts not shown
in this indictment have come to our at
tention within the last few days, and these
may eive ground for a further motion to
quash."
Mr. Tomlinson wanted at least ten days,
but Judge Hough ordered the immediate
filing of the demurrer, and set January 13
as th» day for tha hearing of the motion
to qua«li.
He4nze's lawyers made it plain that they
would have something to say about things
that took pla?e and statements that were
made in the grand jury room while It was
considering the Heinze matter that do not
appear on the record. The nature of the
information on which they are baaing their
moticn to quash the indictment they refused
to divulge, but It was intimated pretty
plainly that Heinze was ready to retaliate
in the investigating line if pushed to it.
The indictment against Heinze supersedes
one of sixteen counts, demurrers to fifteen
of w.ilch were sustained by Judge Hough
in September. There are eighteen counts
In the new indictment. The former indict
ment was based on sixteen transactions,
but in the new one eight of these have been
dropped and two new ones added. The
addition of these two seems to have caused
seme surprise to Heinze, for his lawyers —
Levy, Rosenthal & Heermance — issued a
statement last night, saying that they were
based on loans antecedent to the others.
The data on them, they say. were at all
times at the disposal of the United States
attorney.
The total amounts of the funds of the
bank which Hetnze is accused of having
taken and used for improper purposes
reaches $1.45. ,000. Of this amount 1751,000 is
said to have been handed over to Otto
Heinze & Co. to help the scheme of thfc
Heinzes to boom the price of United Cop
per. In one of the two new counts it is
alleged that $300,000 was used in discounting
a note of Primrose & Braun; in the other
Heinze is charged with making a loan of
$500,000 to himself to be used in furthering
the movement to boost the prices of United
Copper.
Heinze's lawyers say that eight of the
trbnsactions which form the basis of the
indictment rest primarily on the alleged
Insolvency of Otto Heinze & Co. prior to
the panic of October, 1907. This seems
strange to them, they say, in view of the
fact that it was recently declared by the
court that the firm of Otto Heinze & Co.
was in a solvent condition on and before
October 14, 1907.
Heinze'a lawyers, in their statement last
night, said there were incomprehensible
misstatements of fact as to the various
loans made to Otto Heinze & Co
"THE BALTIMORE WORLD" SOLD.
Baltimore. Jan. j.— "The World." an af
ternoon newspaper, was sold at auction,
following a receivership, this afternoon for
$67,500. The nominal purchaser was WU
helm L'Allemand. but he acknowledged that
he ha>l not bought on his own account.
Charles H. Grasty, formerly of "The Even-
Ing News," would neither confirm nor deny
a rumor that he was the buyer, but said
that he would issue a statement in a few
days.
SEW SESATE BILLS.
Agnew Puts in One Against
Publishing Betting Odds.
By Telegraph to Th« Tribune. 1
Albany. Jan. 3.— Twenty-seven bills were
Introduced In the Senate to-day. Many of
them were measures which had done ser
vice before. Senator Agnew put In the
hill making it a penal offence to advertise
cr publish betting odds. While Senator
Agnew mould make no statement on the
subject. it is expected that he will handle
the legislation to prevent oral betting rec
ommended In the Governor's message.
Senator Hill, of Buffalo, has again cham
pioned the cause of the suffragist* by. intro
ducing the concurrent resolution ' to amend
the constitution by taking out the word
' male." . *
Senator Grady introduced a concurrent
resolution prohibiting the "purchase or sale
of stocks or bonds on margin.
Other bills were introduced by:
Senator Trails, appropriating $100,000 for
the construction of the Long Island State
Hospital In Flatbush, Brooklyn.
Senator Burlin^ime. reducing the price of
ga> in the 30th and V.st wards of Brooklyn
to 80 cents a thousand fe?t. On account of
being sparsely settled these wards were
excepted in the JO-cent gas law.
Senator Kissel, amending the primary
election law. by providing among otti«sr
things for monthly meetings of political
committees, to be held at public expense.
Senator Ki3sel, providing for the distri
bution In polling places on registration day
of printed copies of proposed constitutional
amendments, showing the new matter in
italics and the matter eliminated in' brack
ets. >
Senator Kissel, making it unlawful to
sell a commodity in general use cheaper la
one 'section than in another.
FOR DES MOIXES PL AX
Daws Bill Would Provide It
for Buffalo.
[By Telegraph to The Tribune. 1
Albany. Jan. 5.— A bill introduced by Sen
ator Davis to-day to revise the charter of
Buffalo makes the first provision for a city
in this state of the Dcs Molnes commission
scheme of municipal government. The
question of adopting this plan was submit
ted to the people of the city at the last
election, and the plan was sanctioned by a
considerable vote. It provides that all can
didates for elective municipal office except
judge of the City Court are to be nomi
nated by petition. In voting for such offices
electors have an opportunity to express
first, second and third choices. The second
and third choice votes are to be counted
In case any candidate for a given office has
more than half the total number of votes
as first choice, and the usua! method of
counting second and third choice ballots,
such as is in force in various Western
states, is provided.
The charter provides for five executive
•lepartments— public affairs, accounts and
finances, public safety, streets and public
improvements, parks and public property.
All executive. legislative and Judicial pow
ers of the city government are vested in a
council consisting of the Mayor and four
councilmen. The revised charter is to go
into effect after it has been approved by
the electors in a referendum.
The Drawing-Room
And Its
Furniture.
HPHE DRAWING-ROOM,
or • 'Withdrawing Room" 1
as it used to be called — the
room to which guests withdrew
after a meal — calls for a touch
of formality and display in its
furnishing. Seen so often
under its gala aspect when the
"lamps shine o'er fair women
and brave men" it should offer
appropriate setting for the
gleam of jewels and the "frou
frou" of silk and lace.
Such a setting is to be found
in the furniture of the French
epochs, in the magnificence of
Louis XIV. and the Regency,
the gayer graces of Louis XV.,
or the classic elegancies of his
successor.
"Period" furniture of this
character, absolutely correct
as to design and of a rare per
fection of technical execution,
occupies one of our twelve
galleries devoted to the display
of Furniture of Integrity and
Distinction.
The Grand Rapids
Furniture Company
(Incorporated)
34 and 36 West 32nd Street
Between Fifth Avenue and Broadway,
New York.
CHINAMEN OS TRIAL
FOR BOW KUM MURDER
Chin Lin, Girl's Companion,
Unshaken on Stand.
The state brought forward a list of slaat
eyed witnesses, and th« defence a who*
sheaf of evilly brilliant weapons, yester
day. in the first day of th* trial of Low
Tang and Low Shajig in th« Criminal
Branch of the Supreme Court. Neither
witnesses nor knives told much about who
really killed Bow Kum.th* Chln«a« girl wao
was found stabbed to death in the r«ar of
No. 17 Mot? street In the early morning of
August 15. 1309.
Chin Lin. who brought the girt from San
Francisco and lived with her here, support
ed an hour's cross-examination with almost
Oriental politeness, and replied to the point
blank demand. "Did you kill Bow Kna
with this knife?" with a patient ."N'o."
The defence centred its attack upon CMs)
Lin, bringing out from Patrolmen Paul and
Stevenson that he had given the first alarm
of the murder and that a later examination
had shown blood on his hands. Annie Ste
vens. janltress of No. 17 Mott street, was
an Incidental witness, and detectives testi
fled that Chin Lin gave the Information
which caused the arrest of the defendants.
The fighting tongs entered the trial in the
person of Lee Chine Kong, who wore the
Chinese dress and testified that he was now
president of the On Leong Tons. He told
the story which the prosecution maintains
to be the true one— that Low Tang, one of
the defendants, came to him prior to the
murder and demanded money from th«
tong as reprisal for the injury Chin Lin
had done in stealing Bow Kom. After the.
crime Lee Chin* Kong bad talked with
Tom Lee, the "Mayor" of Chinatown. Lee
had said. "We'll get Chin Lin oat of this.
but I wont be a party to putting the crime
on anybody else."
Ung Song could only say that he we* a
partner of Low Shang In a laundry la
Brooklyn, and that on the ni«ht of the
murder the latter had left the shop at »
o'clock and had not come back till tha
next day.
Then Chin Lin. wearing American clothes
and at times dispensing with the inter
preter who had aided the other witnesses,
told his story, retold It, told it a third time.
and went into particulars as to what ver
sion he had told the police and what tae
Coroner' Jury, without falling Into any un
expected pitfalls. He met Bow Kum in San
Francisco, in Mexican Alley. While he was
out of the city she had been taken over
by a mission. He told Mrs. Cameron, th*
matron, that he had a wife in China, and
so could not marry Dow Kurn* "according
to the American custom." Accordingly, he
married her according to the Chinese cus
tom, in the mission, with Mrs. Cameron
as a witness. —
Coming to New York, he locked for work
unsuccessfully, joined the On Leone Tong.
brought on Bow Kum and lived wtth her.
Three weeks before the murder the two
defendants came and demanded $3.Mb for
the girl, which he refused. They threat
ened to kill him and Bow Kum. he said.
The night of the murder he waa at No.
3 Mott street with "hia brethren" till 3
o clock in the morning. Going to the room.
he found Bow Kum lying prone and bleedy.
a knife still in the wound. He raised her
hands, and then fled to give warning.
8