Newspaper Page Text
MAY CUT TAX ON
CORPORATIONS TALKS AMONG SENATORS OF RE DUCING PER CENT OF LEVY ONE-HALF. NO OTHER CHANGES ALLOWED Taft Wants Revenues Bolstered From Start.—Senator Aldrich's Scheme to Allow Deficit to Disappear Gradually Is Opposed. Washington, June 30.—The amend ment providing for a tax on the net earnings of corporations will not be amended on the floor of the senate if the plans of the leaders are carried out, but. it is entirely possible that the rate of 2 per cent may be decreased in conference, provided the president approves such decrease. In all discussion of the proposed tax, 2 per cent has been used as a matter of convenience, although there has never been any determination to fix the tax at that percentage. When the conferees have completed their work on the schedules they will be in a position to determine with considerable accuracy the revenue to b<> expectcd from the custom duties, and the estimates of the revenue from 1 lie corporation tax also will be before them. If the two combined yield only suflicient to carry on the government, there will be no change, but if it is apparent that a tax of 1% or 1V 2 , or j } even 1 per cent will be ample to sup- ; plement the customs receipts, the re ■luetion of the rate will be made. j Confusion Over Revenues. Regarding this question of revenue there has been some confusion of n.t as. Senator Aldrich has been repeatedly quoted as saying that the tariff bill, as reported to the senate, would pro duce all the revenu*; necessary to car ry on the government, but Aldrich qualified his statement by saying that probably for two years there would be a steadily diminishing deficit, after which th' surplus would be ample to make up the previous shortage. In the opinion of the president and many memlx rs of congress, not only are Mr. Aldrich's calculations extremely opti mistic. but it is unwise deliberately to enact a revenue measure which will result in a deficit for the first two years, even if that deficit should be wiped out later. That is one reason why the president considers some 1'orm of special taxation highly import ant. In their estimates of the revenue, which the bill should produce, the con ferees will be guided by the view of the president that the bill should pro duce ample revenue to meet all ex penses the first ypear after its enact ment. Scrutinize Clapp Amendment. The leaders explain that their pur pose in resisting all amendments to the amendment is to avoid any possi bility of rendering its unconstitution al. The amendment as introduced has been aproved by the president, the attorney general and the secretary of state. Under these circumstances, the senate leaders entertain 110 doubt whatever regarding the constitutional ity of the amendment, and they de clare that they purpose to take 110 chances endangering it by changing 'is provisions. OPPOSE CORPORATION TAX. Minneapolis Commercial Club Plan is Unconstitutional. Say Minneapolis, June 29.—The board of directors of the Minneapolis Commer cial Club has gone on record in op position to the corporation tax plan which President Taft has fathered in its present form. The following reso lution was offered and met unanimous adoption. "Resolved, that while we approve the principles embodied in the pro posed legislation to tax the earnings if corp.»rations we do protest against the plan to apply it to corporations )ti!y, as this clearly is class leglsla ion and unconstitutional." Senator Knute Nelson and Senator Moses 13. Clapp will receive a copy of the resolution by wire and the Minne sota representatives in congress will be made acquainted with sentiment here, as reflected in the personnel of the Commercial club's board of di rectors. R. F. D. Expansion. Washington, June 29.— Rural carri 3rs have been appointed as follows: Iowa— At Grinnell, Route 5, Clay bourn B. Chambers, carrier; Anna Selle, substitute Montana—At Missoula, Route 2, Harry E. Steson, carrier; Frank Hughes, substitute. Wisconsin — Shawano, Route 2, Adolph G. Tama, carrier; Etta M. Tama, substitute. LUMBER TRUST IS SPOTTED GOVERNMENT 0FFICIAL8 THINK THEY HAVE A CLEW TO COMBINE. Presence of "Gentlemen's Agreement" Is Determined Anyway.-*-ldentical Price Lists One Evidence Searching for Leaders. j j Washington, June 28.—Government officials concerned in the hunt which has been going on for a year or two for the head and front of the lumber trust, are understood to be confident that they are at last on the right trail. Commissioner Herbert Knox Smith, of the bureau of corporations, will not discuss the rumor that has been current here for several days that his investigators have succeeded in fixing the responsibility for the control of lumber prices and lumber operations. The government authorities actual ly do believe, however, that they have established facts as to the lumber in dustry which indicate beyond ques tion the presence of a general under standing and which tend to fix defi nitely the leadership and controlling forces in that "gentlemen's agree ment." Since the opening of the tariff de bates on lumber, the lumber repre sentatives on the floor of both houses have insisted determinedly that there is no trust, never has been a trust, and by the nature of things could not be a trust in the lumber business. Against these assertions Senator Nel } son and other members of congress have presented identical price lists of lumber companies situated in wide separated sections of the country, ; showing that price lists had been p r j n ted in St. Louis for lumber com j |, an j os j n niany sections. Whether the facts brought out in the lumber tariff debates have helped the bureau of corporations is not known. Neither is any intimation given as to whether the alleged proof of a lumber trust leads up to the iden tification as its heads of such menas Frederick Weyerhaeuser, Edward llines, or other big timber owners. GOVERNMENT NEEDS CASH, Finds It Necessary to Have Larger Working Balance. Washington, June 30.—A call on na tional depository banks for a return to the treasury of government funds aggregating approximately $25,000, UO0, was made yesterday by Secretary of the Treasury McVeagh. Of this amount, $9,000,000 has been called for July 1"., and $16,000,000 for August 1 5. Balances in all active depositories are uniformly reduced to the lowest amount which the daily needs of the government will permit. This call will practically wipe out all of the deposits of government funds in national banks subject to check by the treasury of the United States, except about $37,000,000, which is held in active account, and neces sary to meet checks of government disbursing officers, and $1,000,000, which will be allowed to reniain in $ 1,000 lots in such of the one thou sand smaller national banks as de sired to retain their designation as national bank depositaries. The working balance today is more than $43,000,000, which will be in creased by the call to approximately $68,000,000. The low state of the gov ernment working balance made its strengthening a necessity, and thus augmented, the treasury department will have ample funds for at least some months. It is confidently expected, however. that before the coming December, an additional issue of Panama bonds or the further issue of treasury receipts of indebtedness will be found neces sary. No decision, however, has been reached on this point. reached on this point. HARRIMAN OFFICIALS CONFER. Arrange Details of Train Service Be tween Portland and Puget Sound. Portland, Ore., June 30.—General Manager J. P. O'Brien, of the Harri man lines, in the Pacific northwest, held a conference yesterday with J. D. Farrell, of Seattle, general manager of the Oregon & Washington railroad, E. E. Ellis, general agent of the Har rinian lines in Seattle, Robert Lee, general agent at Tacoma, and Assist ant General Passenger Agent Scott, of Portland, at which details of the inau guration of a train service of the Har riman system between Portland and Puget sound were discussed. The sub ject considered yesterday was in the routing by the Union Pacific of a thru train from Seattle to Chicago. Defin ite time for the inauguration of the service probably will be considered to day. Train Hits Auto; 7 Hurt. Seattle, June 30.—In a collision be tween an automobile and a Northern Pacific freight train south of George town seven persons, all residents of Seattle, were injured, two probably fatally. News of Scandinavia Principal Happenings of the Week in the Scandinavian Countries. DENMARK. Sindal, Jylland, is the first rural community in Denmark to have all the meat sold within its limits official ly inspected. Balotti, the foreign anarchist, who killed a farmer named Heck, has been sentenced to death, and it looks as if he is going to forfeit his life. A woman has confessed that, she has started several serious fires in Copen hagen during the past few months. She can give no cogent rea:- jii for her action—she must be simply a pyro maniac. An astronomical observatory is to be erected in Marselisborg Park, near Aarhus, for the use of a German astronomer named Kruger. The city has given a bonus of $0,70 ) and fr( e grounds. The plant will revert to the city at the dial h of Kruger. The cold weather did not injure the crops so badly as the earlier reports indicated. The winter grain stood the strain well in all parts of the country. The wheat suffered worst, but even that is recovering. The spring grain looks fine. The oat crops are doing well, an 1 weeding i.; in full swing. , , T . , The Alders h vile palace at Bagsvard lake, S ja liai id, was destroyed by lire. Valuable art eol.ect ,on .s wer«, lost. T Virj ( n! it ( YlV'MM S 7 1 I I h!!. iuo of melted out of t he xt dav. The property bv a Danish lady of a The total loss exceed* Two wheelbarrow loads gold and silver were dut ruins the 11 was owned b. .. - —„ highly romantic past. Her fourth and present husband is an English sports man named Evans. man The Danish riksdag convened to an extra session June 9. The opening j services took place in the Fredrik church, and all the members of the cabinet and a great number of mem hers of the rigsdag, representing the. different parties, were in attendance. Bishop Rordam pointed out in his opening sermon that a great responsi bility had been placed on this ses sion, and that each member ought to feel this responsibility—they all ought to find inspiration in a common love for their country. This session is ex pected to agree on a definite plan for the military defense of the Danish capital. No matter what the details of this plan may be, it will surely in volve th dollars. ... expenditure of millions of i ! ! : ; ; SWEDEN. Th* Swedish army will soon have a regular balloon service. The city of Stockholm lias floated bonds to the amount of $8,300,000. The Mission Covenant has decided to start a national young people's union. The crown prince and crown prin cess of Sweden are visiting their rel- J atives In London. The prices of stock are low in north ern Skane. good cows fetching a price of only $20 to $25. Gophers are doing more damage than usual in the fields and gardens . of southern Sweden About 300 Swedes residing in Kris tiania, Norway, have organised a Swedish reading club. "Live stock" must not be sent by mail In Sweden. But the regulations have been changed so as to admit bees. Telephone connections have been made between Stockholm and Ivohn, Germany, and the service is satis factory, During the first five months of this year 6 ,742 persons emigrated from Sweden from the leading seaports, as against only 2,591 during the same pe riod in 1908. The crops look much better than they did some time ago, especially in , central and southern Sweden. High, i light ground even promises an extra heavy yield. At farmer who was called as a wit ness at a trial in South Roslag became confused and gave contradictory an swers. Finally the magistrate became impatient and ordered the witness to tell no more than he knew, punctuat ing the instruction by rapping the desk with his mallet. This was too much for the witness. He staggered and actually fell to the floor in a faint, He soon earns ton again and was tak en out of the court-room. At a meeting called at Karlstad for the discussion of the dogma of the devil, two clergymen, H. Hallen and E. Borjeson. rejected the dogma of a personal devil. Some free church people defended the dogma, One of their arguments was that, if there were no personification of evil It would be easy to assume that neith er is there any personification of good; that is to say. the denial of the devil naturally leads to the denial of God. 1■I OliLU: : U'J liUL uiiuvi auaau x nnaUv twQ m0n v „ orc fo , md w ! ^ ^ Amerîcaf and the Engli ; ^ h the strangers out The Swedish academy, by vote of 9 to 8, has declared itself in favor of modifying the reformed spelling, which has been used in the public schools since 1906. June sixth, the one-hundredth anni versary of the adoption of the Swed ish constitution, was fittingly cele brated in many Swedish cities, and by some Swedish colonies in foreign cities. A number of teachers at Swedish gymnasiums are going to Greece this summer to make archeological statu sluei's. Their leader is to be John Bergman, a noted historian. The i arty will stop at Olympia, Myce.ia, Tyrius and Athens. It is proposed to make a radical change of the sewer system of Stoe'< holm. Several pumping stations will he needed and the sewage will be cav iled fur out into the sea. The cost o? the improve mi. r.ts will be about $1, 000,000. A l .alloon which ascended at Stock holm, lan.'lt d near Lappo, in the wilds of Finland, IOV2 hours later, huvii.g covered a distance of about 370 (Knglishi miles. Only Finns lived in the neighborhood, and the nants do not understand Finnish. ho had glish lan of the difficulty. difficulty. A Ge rman named Grossmann gave exhibition on water skis at Stock an f —hi> ho !m ' alld man >" People came to th , '-* ke snore to see the performance though they had to pay an admission f( e of 7c. Mr. Grossman did well. But all of a sudden a Swede named A* -rstrom also appeared on skis mac by himself, and the German was ! evidently perplexed. But he soon con eluded that peace would serve him better than war, and so he received the competitor with politeness. The two shook hands and divided the hon ors between them. Now that the labor unions ar Social Democratic losing ground in some of their strongholds, the em plovers who have been dealing with them are encouraged to speak more freely. In many cases employers who got into trouble with the labor unions prevented their men from striking by paying certain sums of money to the j loading officers of the labor unions. j An employer in Malmo has published i receipts showing that he has paid ! $335 to avert a boycott against him, ! and the files of the organ of the labor organization show that at the same : time it was officially announced that ; the man who paid the money was "in ; good standing." NORWAY. Hallvard Handle, of Slidre, Valders, produces more sweet peas than any other farmer in Norway, and he is also raising large quantities of ruta baga and cabbage seeds. Verdens Gang, for thirty years the> most popular newspaper in Norway, suddenly dropped the old orthography and the Gothic types and took up the latest orthography and the Latin or English types. New York.—The announcement that the proposed direct line of mail and passenger steamers between this point and Bergen, Norway, would be estab lished by Norway alone, was made by Counsul General Christopher Ravn,^ of this port. Only Norwegian and Nor wegian-American capital will be used, The sum to be raised is $2,700,000, of which half has already been subscrib ed in Norway. The Norwegian gov ernment has pledged a subsidy of $135,000, and the prospects for a prof itable operation of the line are said to be excellent. Consul E. H. Hobe, of St. Paul, Minn., and R. With, of Kristiania, are in New York to com , piete arrangements. The proposed i ii ne will make possible travel between j \ew York and Norway In less than j nine days instead of eleven, at pres j ent consumed. j Norway has explained her position G n the question of the jurisdiction of Spitzbergen and Bear Island in a note ! to Belgium, Denmark, the United j states, France, Holland, Russia, Eng j lanj, Sweden and Russia. The note , j s intended as a program for the di j piomatic negotiations which are to j take place in Kristiania. The Nor j wegian government adheres to the j principle that the present political j status of the islands ought to be j maintained, that is, the islands shall ! not be looked upon as the property of! ; any particular country, but shall be , open to citizens of all countries. The j time for the conference can not be j fixed until the toreign governments j have had time to become acquainted ' with the Norwegian vote. The gov j ernments of all the countries men-1 : tioned have consented to take part in j the conference. NEWS FROM FATHERLAND A Brief Resume of the Most Im portant Happenings in the German Empire. o? The steamship George Washing ton, named in honor of the first presi dent of the United States, and the largest German trans-atlantic liner a float, is the latest addition to the fleet of the North German Lloyd, and extra ordinary efforts have been made by the company to make the new steam ship in every way worthy of its great name. France, the traditional leader ot visitors, is waking up to a demand for a general old-age pension system. France is a year or two behind Eng land in this respect. But Germany has enjoyed such a system for twen ty years, and so well does it work that German emigration has been cut down to a trifle as compared with many neighboring nations. With four military airship stations already built on the western frontier, the German war office has decided to erect similar stations on its eastern borders. The first of the eastern sta tions will be erected at Lyck, close to the Russian frontier. The new aerial station will have a huge shed, capable of accommodating two air ships of the Zeppelin type. It is significant that Kaiser Wilhelm did not take his chancellor with him when he met the Czar of Russia in the Baltic. Despite the national pro test last autumn, the kaiser still di rects the foreign policy of his empire; and so successfully has he managed in his extrication of Germany from its difficult diplomatic position of nine months ago, that his subjects are will ing *to let him stay in the game of in ternational politics. Former Premier Tewfik Pacha came to Berlin to notify Kaiser Wil helm of the fact that Mehmed V has ascended the throne of Turkey. He stated while in Berlin that Col. Gen era i Baron vonder Goltz has accepted an offer to come to Turkey to re-or ganize the Turkish army. He is go ing to stay in Turkey five months a year for that purpose. Several Ger man officers are going to accompany him as instructors. At the same time many Turkish officers are going to serve in the German army. Copenhagen, Denmark.—While the European press generally considers the meeting between Nicholas II and Kaiser Wilhelm highly significant, it j 3( according to a Russian diplomat here, of no poltieal importance. The czar originally thought of creating a 1 new political situation by meeting the kaiser, but his-ministers, especially -yj r _ iswolsky, made him understand that any alliance with Germany would ru j n R USS i a j n the future and that public opinion in the empire was anti G erman . This converted the meeting j n Finnish waters into an interesting acterizes all official expressions re social ceremony merely, and led to no change of any kind in the Europe an concert of powers. Berlin.—While marked reserve char^ garding the result, the kaisers meet ing with the czar is viewed with un mistakable satisfaction. Both in and out of government circles, Germany ia considered again to have scored an important victory in the work of strengthening of its international po sition by evoking a demonstrative showing of friendliness on the part of the czar immediately after forcing Russia to undergo a sharp diplomatic reverse. In financial circles the meet ing causes particular satisfaction, aa one direct result of the conference, it believed, will be the better protec . t; on Q f German interests in Persia, j w hich lately have been menaced by i the arms of Russian and English gov j ernmen t for the commercial exploita tjon of the territory. Hints emanat j ing from official sources here indicate that this question, as well as the Bal kan problem, was among the most im portant subjects discussed at the con ference. j ference. The per capita wealth of the littlt town of Cunnersdorf, in Silesia, has been suddenly increased as a conse quence of the visit of a Berlin mer chant, who sought to cure a tempo rary fit of mental depression by throw ing away handfuls of money and pre cious stones. He arrived from a neighboring village in a cab, which j h<> dischargftd a(ter handing the drive! $25. A 4-cent bridge toll, payable up on entering the town, he discharged with $12.50. On every person he mat he forced a $2.50 or $5 gold piece. Among others he distributed his gold watch, his diamond tie pin, his pearl cuff links and other articles of jewel ry. Reaching the market square, with several pockets still full of cash, ha , dl . aw forth handfuls and threw them ,- n t 0 the air, with the result that tha square soon become the scene of wild . scrimmage among the townspeople, ! ^ tavern where the unknonw ; benefactor took lodging for the night, : ho explained that he was suffering j from "soul-storms" in consequence of the death of his wife. He said he haJ | g 3 t rid of $750 In coin and of jewels i worth the same amount.