OCR Interpretation


The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, March 15, 1910, Image 1

Image and text provided by University of Utah, Marriott Library

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn85058398/1910-03-15/ed-1/seq-1/

What is OCR?


Thumbnail for

r tLt
ib >
t
> < < t
t THE EVENING PAPER WEATHER FORECAST
IS THE PAPER OF TODAY 1 THE INDICATIONS ARE THAT THE
d t a tt ar
DAY THE MORNING WEATHER WILL BE GENERALLY
+ FAIR TODAY AND TOMORROW
PAPER OF YESTERDAY
i
Fortieth Year = No 64Price Five Cento OGDEN CITY UTAH TUESDAY EVENING MARCH 15 J910 Entered aa Second Class Matter at the PoctofTlce Oflden Utah
Government Officials Prevent
A Great Railroad Strike
RAilROADS ASK fOR MDATION
i AND THE REQUEST IS GRANTED
Head of the Firemens Union Says the Order
to Quit Work May Not Be Issued Owing
to the Action Taken in Washington
WILL BE NO STRIKE
I
Chicago March 15President Carter announced from the com
mittee room late today that in all probability the firemen would II
accept the offered mediation under the Erdman Act
There will be no strike said President Carter but the medi
ation must be speedy or the men will not submit to it
Chicago March IGThe date and
hour of calling the strike of tho fire
men on the western railroads was de i
cided upon by tho union officials today
I
day but the committee adjourned un
til this afternoon without announcing
the time
President Carter of tho union said
he believed the committtec would or
der the strike regardless of the media
tion proposal
News that the controversy between
the western railroads and the firemen
and cnglnemon would be mediated tin
der the Erdman act came as a sur
prise to the officials the employer
union while they wore III session on
deavorlug to decide on tho hour when
the strike wpuld be called I
Railroad officials without hesitation
declared that mediation under the
Erdman act would put n ct9p forthcr
present at least to the proposed walk
out
Under the act the questions upon I
which tho employers and the men dis
agreed will he submitted to Chairman 1
Knapp of the Interstate Commerce
commission and Commissioner Nclll
This afternoon the conunltlce of
union officials will assemble and if
i telegram from Chairman Knapp is
rerolved will give It their attention I
If no telegram in received It IH the
expressed determination of theunion
committee to conclude Its business
dptldo whether to make public the
date of calling the strike which they
have already fixed oft and In tic
words of President Carter fold their
tents and depart
The ultimatum of the union commit
tee was sent last night to Chairman
R C Nixon of the general managers
commit It reads as follows I
Your letter of March H wherein
I you nay the manager committee re
affirms Its former refusal to arbitrate t
all matters Incontroversy has been I
received and has been given serious
Consideration The refusal of the
managers committee to arbitrate ar
ticles 2 and 3 on the plea that an
other organiwitionB Interests arc In
t volved will not be accepted by our
committee for the reason that we are
I r only requiring the restoration of a I
Milo and practice which our members
I nave always enjoyed until recently
when railroad managers advocated
the n IIBitllI ion of such rules thereby
depriving certain onglnemou of rights
which are accorded in every other
1 fmplovo In the service of railroads
i svnrosinlod by the managers comtnll
tee I
° Our committee authorizes mo to
express to the manager committee
regret that our conferences are tiros
t brouhi to a closo without having
reached a solution of the matters In
dispute and to advise you that our
i committee has authorized tho men af
t fcctcd to withdraw from tho service
f By order of the committee
Signed W S CARTER
> President Brotherhood of locomotive
J Englncnifn and Firemen I
r It was estimated that the data for
calling out the men vould give them
I time before rocelxlng the notice for I
them to quit work
Others may be given a hint not to
° start on long runs Many of the fire
c men are on such runs and some of
them could not get back to their start
ing point under ordinary circum
stances In less than four das I
Those who have watched the course
of the negotiations since their Incep
tion arc of the opinion that several
dny at loast will elnpsn before the
strike will go Into effect In any event
Much alto depends on the action
taken by the union officials In thy
I event hat they receive a direct com
munication from Chairman Knapp
0 L Dickoson assistant to the
president of the Chicago Burlington
Quincy railroad on behalf of the
managers committee gave out tho
following statement today
uln order that the public and unrop
I stinted commercial Interests of tho
country ntav not bn embarrassed or
Injured by the illeffects of a conflict
which the firemen propose tho rail
r roads have invoiced the ad of the Era
t man act and Chairman Knapp of tho
f Interstate Commerce commission and
CommlEsloner of Labor Ncill havo
anon communicated with and their
I good offices enlisted as mediators undor
the government law in an effort to
peacefully adjust tho dUllcully
Messrs Knapp and Ntlll have accept
ed and we do not see how the firemen
4
I
oooooooooooooooo
o 0
1
O MEDIATION ACCEPTED O
O 01
10
O Chicago March 1Mcdia > O
O than under the Erdman act O
O was formally accepted today 0 I
O by tho committee of officials 0
0 of the Brotherhood of J ocomo 0 I
FJ live Firemen and Engincmcn rJ
O In taking this action which O
0 came after the receipt of a 0
O telegram from Chairman 0
O Knupp of the Interstate Com 0
0 mcrce commission the commit 0
O toe stipulated that tho media 0 j
O lion must be speedy or it 0
0 would not be accepted hy the O I
O employeson lie fortjscvi1n Oi
O railroads involved 0
O 0
oc oO oo o 00 0O o 00 o
can well rcfilHo the proposition for a
peaceful adjustment
The railroads feel that after hay
ing offered arbitration of the wage
njiestlon and ns a last resort enlisted
mediation of the difficulties through a
third party they havo used even rea
sonable effort to avert the final
break
President Carter of the Firemens
organization stated this afternoon
that the telegram from Chairman
Knapp and Commissioner Nelll noti
fying the union officially that the rail
way had asked for mediation under
the Erdnian act land been received
and would ho acted on this afternoon
by the Brotherhood commission
Seattle Wash March 5Th su
perintendents of the Northern Pacific
Great Northern and Chicago MIItau
kee and Puget Sound railway said this I
morning tbat their only Information I
of an Impending state of firemen was
contained In iieu 5 dispatches The I
oflHnls seem 11 believe a strike will
be averted Tlr firemen on tho north
western road rro i ad > to quit when
ordered
Washington March 15 Mediation
under the Brdman act has been re
quested because of tho controversy
that has arisen between the railway
lines operating westward out of Chi
cago and their firemen The applica
tion for mediation wan made by the
railroads The request will he grant I
ed
Immediately after Chairman Knapp I
I
of tho Interstate Commerce commis I
sion arrived at his office today repro I
scntatlvcs of the railroad general man
agcrp committee presented to him tho
application of tho railroad officiate for
mediation of the trouble The appli
cation was signed by W C Nixon I
chairman of the general managers
committee Tho request for the medi
ation of the difficulty that had arisen
on the subjects of wages hours of
labor and conditions of employment
between the flrtj seven railroads In
volved and the Brotherhood of Loco
motive Firemen and Enginemen
It was requested In tho application
that the mediators Chairman Knapp
and Commissioner of Labor Neill en
ter Into communication with W S
Carter president of tho Brotherhood
with a view to an amicable adjust
men of the trouble
Chairman Knapp assured the repre
sentatives of the general managers
that ho and Mr Nelll would take the
matter up and If necessary would go
to Chicago In an effort to adjust tho
controversy
I Chairman Knapp nnd Mr Nelll had
n conference during the early part of
I day to determine upon what they
would do It appears not unlikely
that if the telegraphic communication
with President Carter Is satisfactory
ono or both of tho mediators will
leave late today for Chicago
The application for mediation Is
comprehensive In scope It Includes
not merely the question of wages
which la the crux of the disputebttt
also hours of labor and conditions en
employment In fact It covers every
phase of tho difficulty
It is known that representatives of
the general managers commitujo ha C
been In Washington several days pre
pared and fully authorized to main
the application In tho form It was pre
I sented today an soon as the faHnre
of the negotiations at Chlcagq shonld
be indicated t If
I Railroad Oflclala Surprised
Seattle Ore March J5Tha rail
r
f
I
roads operating In the Pacific North
west have made 110 pietiaratlons for
a strike of the locomotive firemen
and local officials admitted last night
that tho calling out of the man would
cause some embarrassment
T B Dogman general agent of the
I Great Northern who handled the fight
I against the striking switchmen for the
toads on the court Inst fall expressed
surprise when Informed by the Asso
ciated Press of the action of the fire
mens committee
Vo did not expect such a move
and have made no preparations to fill
the places of the men Consequently
a walkout will cause temporary em
barrassment but I believe that there I
will be little difficulty In finding men
after tho first few days Freight serv I
Ice may be tied up for a short time I
but I think that we will be able to j
move passenger trains without Inter > i
ruption I
Officers of life Seattle local Brother
hood of Locomotive Firemen say that
they had received no advices concern
ing the action of the general commit
i tee and declined to discuss their plan I
j of action They said however that
I there is no doubt but that all the i
union men will obey the strike order
I when it Is received
There arc 150 union firemen in
I Seattle Conservative estimates of
tIll number of firemen In the sUite
who will be affected bv the order
place It In excess of 1000
Engineers Will Not Strike
Portland Ore March IB Officials I
of the Harriman lines In Oregon slate
I
that the strike will have little or no
effect on them Thelr engineers they
say are for Iho most part members
of the Brotherhood I < o motive En i
glncers who they earl will not aban
don their ltuhtlotjArlhelrlocoptor f
fives are equipped with oil burners
rind thc officials may need but little
skill In operating I
The Spokane Portland Seattle
i railroad officials slat that they ox
pct to have Iftlle difficulty in re
placlnc any firemen who strike as
they cmploj but fev men
The Great Northern and Northern
Pacific railroad have divisions term
Jatlnt here at Seattle and at Ta
coma Local officials of these roads
state they are not III position lo speak 1
advisedly as to what effect the strlko
will have upon the roads they repre
sent j
There are about 150 firemen em
ployed by roads In this state and on
divisions of other roads which have
terminals hero The vote cast by the
local union 111m of the Brotherhood of
Locomotive Firemen aud Eugincmen
was almost unanimous In favor of call
Ing a strike if the demands of the
Brotherhood were not granted i
San Frnnrlsco March 15 Thougn
frankly conceding that the strike or
der issued from Chicago last night
by the B therhood of Locomotive
Firemen and Englnctnen may cause
temporary inconvenience and embar
rassment officials of railroads opera
ting on the Pacific coast say they an
ticipate no great trouble Apparently
the motion of President Carter of the
Brotherhood las anon some of the
companies surprise and no special
measures to meet the emergency had
boon formulated The fact however
I that tho cnfln ell are not likely to ho
Involved Is regarded by the companies t I
as a reassuring aspect of the situa
tion Many of the locomotives of till
const lines are equipped with oil burn
ers which It Is stated do not require I
much rkill In handling I
Little uneasiness IH manifested at
I
the Southern Pacific offices here and i
reports from divisional points of the i 1
I Harriman lines tho Great Northern
Santa Fe and other railroads un and
down the coast are to the effect that
the officials qxprcsp small concern
over the outlook I
E B Calvin vicepresident and gen
oral manager of the Southern Pacific
said last night
While tho strike will affect our
roads out hero wo do not anticipate
any serious Inconvenience
The public does not understand
how the strike was brought about
j The railroads were willing to arbitrate
with the firemen on the wage ques
tion In fact asked for arbitration
The firemen however have insisted
I on bringing In the question of repro
j ntallouthal Is ahoy Instated upon
k being empowered to legislate for their
members after they had become engi
I neers This Die engineers did not re
I quest Tho fact that wo in the west use
oil burners will make It a very easy
matter to rcplijco the mon
About 90 per cent pf the Southern
Pacific firemen are members of the
Brotherhood it is officiallY stated and
I all of these are expected to obey tho
orders of their organization
Santa Fe officials at Los Angeles
say that brakemenon that road doubt
less will go out with tho firemen
Los Angeles advices state that the
Salt Lake road Will not l > e affected
as the main lino is now In operation
over the washouts In Nevada
FIREflEfi WILL OBEY
San Francjaco March 15 Frank
S Anderson secretary of the griev
ance committefl of the western division
of firemen says that he baa not yet
bean nnnrlcexl at tha strive order
but ovpccLs to receive official noti
fication today f 1
Whatever the order calls for ho
said It Is proabjef that every fire
man in the west will stand by them
A referendum vote was taken some
time ago and forwardort t6 Chicago
in time to bo considered prior to tak
ing effect on March 7 between our
grand officer and tbe general man
agers committee
CATCHER SULLIVAN
IN BAD CONDITION I
Los Angeles Cal March liinllly I
Sullivan catcher for thc Chicago I
White Sox is suffering from blood
poisoning as a result of h wound In I
flicted in his left foot bu a rusty nail
Sullivans condition is saldblo be sell
ous Ho stepped on thotuail while
cumin out of the grounds at Chutes
Park after the game with Veinnn
last Saturday He was taken to bio
room at the Elks club where he now
lies dcllilous from a high fever
B G MERGER
s PENDING
Coalition of Eiec real
Companies t Cpver
50 000000
l
Pitlfsburg March 15 10n what it as
sorts is trustworthy authority tho
Plttsburg dispatch announces this
morning that negotiations arc pcndiqg
looking to the coalition of the West
Inghouse Electrical Manufacturing
companj and the G feral Electric
company theGIernl
int1s achleyed AfiS leA will have
another trust with a combined capital
approximating 150000000 says the
Dispatch and continues
The recent action of tho board of
directors of the VcdtlnghotiBo concern
In grunting a lease of absence for six
months to its president Gcomo West
inghouse is understood b > industrial
and financial circles to have a far
deeper significance than more concern
of his colleagues for Mr Westing
houses health
Perhaps It Is tluen well known
financier suggested that Mr West
Inghouso and Mr Mater tho chairman
of the WStInhousorboHrd coud not
agree upon a policy regarding the
companys foreign properties and that
Mr WustinghoiibC has decided o let
them go along without him for a
while
A Plttsliurg stockholder in the
Westinghouse concern asserted posi
tively yesterday that he had received
dispatches from New York Intormlng
Hm that one of the members of ho
firm of Kunn Loch Co the Will
street banking house who worn sjon
sors for Mather stated u a settled
fact that the Merger of the Weating
house and General Electric lompanv
is merely a question of a very short
time It was he who Intimated that
the Westinghouse leave of absence
story was the first stepping stone in a
well played plan for the total elimina
tion of George Westinghouse from the
Westinghouse Electric Manufactur
ing rompnnj and once that was ac
complished there would be a clear
road to combination
PAINTER STOLE
V A LOCOMOTIVE
Wichita Kas March jAn over
powering desire to take the first rldo
alono In a locomotive caused Ilerbctt
West a painter to steal an engine
here yesterday f
Finding an empty ongjnc in Ito
Atchison Topeka 1 Santa Fe yards
he climbed into the cab and pulled
t the first lever he got his hands on
and rolled away <
Perceiving their engine moving the
crew got out a special engine and hur
ried after the speeding locomotive
Soveril miles northof here the sec
ond engine came close enough to
couple to the first Members of the
crew then went forward into the cab
of tho stolen engine and took West In
hand
W o H MOORE IS
I
I t FACING TRIAL
I
1 Portland Ore March 16W H
Moore former president of the do >
funct Oregon Trust Savings bank
which failed here during the panic of
1007 for over 2000000 will be plac d
on trial In thestate circuit court to
day oh a charge of receiving a deposit
In the bank when ho know that It was
insolvent The specific charge against
Moore iqflint be received a deposit
or 220 from Mine Minnie Mitchell a
I cripple after the bonking hours the
1 day before the bank failed Four oth
er Indictment containing similar
charges stand against Moro but
these will not be tried until later
With Moore were Indicted his broth
er Henry Moore E H Lytle and Leo
Friede all being directors of the bank
IU11 U1 1 1
> w w
CORPORATION TAX IS DEfENDED
i BEfORE THE U S SUPREME COURT
cashier W H Moore was on his mo
tion granted separate trial
BLACK HAND ATTACK
A NEW YORK THEATER
I
New York March 13 The police
I began toda tho settlement of an
alleged Black Hand plot which Is said
I lo have been responsible for the ex
plosion ola giant cracker man east
side moving picture show last night
Tho fire cracker with lighted fuse
was thrown Into the air above the
heads of the Ii50 persons present It
exploded In front of the lantern and
five of the audience were seriously
cut with flying glass
A week ago firebugs entered the t
amc theater after hours and first
II
saturated the piano and front row of
spats with kerosene and then touched
n match to them A quick alarm sav
ed life house lictoro the fire gained
headway
FALL OF EIGHT INCHES
KILLED A WATCHMAN
Now York March 15A fall of
eight Inches killed John Spllei night
watchman at a building in course of
construction here While standing on
a beam in front of the building
Spilor slipped and toppled over back
ward striking the hack of his head
oji a plank
BUSY DAY IN
K ftARTO U M
Roosevelt and Family
Are Seeing the
Sights
I
Khaildiim Mriicli J5Bent on mak
ing the most of their brief stay In
this the canltal of the Egyptian gen
eral government of the Soudan the
HOOKOvolts were early astir today
I Colonol Roosevelt was especially
busy occupying Intervals between
I excursions to points of historic inter
est in receiving callers and making
I reply to such of his voluminous corre
i spondence as ho had been able to ex
amine
I After breakfast he summoned to
bin thc nativeservants who had ac
I companied him through the expedi
tion and bade them goodbye Each
I received a present of cash from Col
onel Roosevelt and a gift from Mrs
Roosevelt
I On the sightseeing trip today tho
i arty occupied u carriage drawn by a
handsome pair of horses and escorted
by two Egyptian lancers
Later in the forenoon the Uooscvelts
abandoned their carriage for a motor
car and unaccompanied drove into
the suburbs
The tentative plans of the loose
vclla provide for their departure from
here on a special train Thursday
night On the way to Cairo a stop
of one day will be made at Assouan
on tho east bank of the Nile and two
days will be given over to a visit to
Luxor
I Paris March 13 Former President
Roosevelt has telegraphed that he will
I not arrive in Paris before April 25 at
the earliest While here Colonel and
I Mrs Roosevelt will be the guests of
American Ambassador and Mrs Ba
con
R G Bonflls of Denver who came
here to meet Colonel Roosevelt today
had an interview with the latter anti
presented him with a petition from
i the chamber of commerce of Kansas
I City and other western cities asking
the former president to return to the
j United States bv way of San Francis
I co Mr Roosevelt replied that it would
j be impossible to accept the sugges
tion owing to his engagements in
cluding his presence at the marriage
of hj8 eon Theodore Roosevelt Jr to
Mies Eleanor B Alexander which Is
to take place in June If possible
however he said lift would visit Den
ver and Choypnno during the frontier
day in August
Colonel Roosevelt upon his visit to
the Gordon Memorial college ad
dresser the students Informally ex
I pressing groat Interest In their work
and remarking upon the splendid prog
ress made by British energy within
the fnw years that Its Influence had
I been exerted In Khartoum
OGOOOOOOOOOOOQ
10 0
jO ATTELL AND DRISCOLL 0
I O TO FIGHT JULY 2 0
O 0
lO
O San Francisco March to 0
O Promoter Coffroth last night 0
o signed Abu Attcll and JomO
o Driscoll of England to fight 25 0
o rounds atColma on the after 0
o noon of July 2 The weight O
0 will be lS pounds 0
o 0
v ft ngnnnOg4AAP
Stress is Placed Upon the Declaration That
L the Tax is Not a Direct Tax or an Infrac =
tion of General Powers of States
I i
Washington March 15The gov
ernments defense of the constitution
ality of the corporation tax provision I
of the new tariff law was submitted I
I today In printed form to the supreme
I court of the United States It Is the
I work of Llo > d W Bowers solicitor I
general but bears the signature also
ot his chief Attorney General Wick
I
eshnm Upon it the government will
I shape Its oral defense of the law I
when the corporation tax cases corne
up for argument probably Tuesday
The first point sought to he made
it that the tax is not a direct tax upon
property but la an excise tax upon
the carrying on or doing business
The declarations of the statute itS
well as decisions of the courts are re
lied upon to support this point
As to tho stntiiteMr Bowers says I
In his brief that It shows the tram
action of business to be the subject ot I
the tax and that the income of bust I
nets Is used merely as measuring the I
amount of tax which rests not upon
that Income but upon tho occfipa 1
lout from which it is derived I
These reasons together with the
decison of the supreme court In tie
Spreckels case which the solicitor
general explains as holding that a
lax declared In the statute to 16 Jaid
on business In an amount equivalent I
to arprtnJjjpcrcqntaEc of Income I
an excise tax on IhcVbusihfTps aro
taken by him as sufficient to show
that tho corporation tax Is an excise
on the transaction of buslncsm How
ever he proceeds to wile cases to
prove that although the tax worn
laid on the income of business it
would still be an excise upon the
business A list of Inheritance tax
cases arc cited to show it Is an ex
cisc tax 1
If a tax upon the right to receive
properly personal or real by Inherit
ance Is not a direct tax on he prop
erty though as was true of all the
federal inheritance lax laws the In
heritance tax is measured by the vat
I no of the inherited property said
the solicitor general 9t must bo
equally true that a tax upon the or
1 excise of the right to use properly
i in one or another kind of business
I especially under the peculiar condi
tions and disadvantages of corporate
i business is not a direct lax
In his consideration of canes bear
ing upon the point whether the cot
I potation tax was a direct tax or an
excise Mr Bowers refers to the fam
ous Income tax cases He says tncse
cases have been Interpreted undoubt
dly with tho concurrence of tho en
tire supremo court as referring to a
tax Imposed on property solely by
reason of Its ownership
That must mean says the solicit
or general a tax upon property bv
reason of its mere existence or or
j dinary enjoyment though the prop
erty Is not put to somo special use
A tax upon business Is not a tax Im
I posed upon property solely by reason
of its ownership for If the property Is
I not put to business use no tax falls
upon it or Its income
I It Is In thc argument that the tax
is not a direct one that Mr Bowers
I first considers the claim that inas
much aa the tax is not levied upon
partnerships or Individual but is
put on corporations and joint stock
companies and It Is therefore as
sessed on franchises
The distinction between partner
ships and individuals on the one hand
and corporation and joint stock com
panics on the other Is explained na
not proceeding from tho presence or
absence of franchises but from the
I wide and important diversity ot
legal rules affecting the two kinds ot
business of these two groups
Even if this tax were regarded
merely as a tax upon the excrciso of
use of franchises continue Mr
Bowers Instead of being a tax on
the entire conduct tiansacllon of
I business under many special condi
tions It would be altogether differ
ont from a direct tax on the fran
chises themselves A tax upon the
nee of franchises in business Is no
m rc a direct tax upon tho franchises
than a tax upon the use of property
lit business Is a direct tax upon tho
property so used
Finally on this point Mr Bowers
contends that franchises cannot be
I the specific subject of tho tax as no
tax Is Imposed in any way unless busl
I pros is actually done
I The second point Mr Bowers seeks
to make Is that tho tax Is pot a dlj
t reel tax upon tho shares of the stock
holders nor upon tho income The
I reason for thin tax not being a direct
tax on property Is held to apply tot
the claims that It is not a direct tax
1 on tho shares or income of the stock 1
holder
I The tbjrd point is thin the lax docs I
not become direct in the special case
4 ofa company engaged in the business 1
i of handling or dealing in real
I estate Five of tho fifteen cascj9
consideration by ids tf t
such corporations Mr Bowen claims
they raise no constitutional question
but only the query as whether they
arc engaged In carr > Ing on or do
ing business It any coiporallon Is
not so engaged It Is not cached by
the statute he argues
The fourth point Mr Bowers seek
to establish is that the tax Is no an
Infraction of the general power of the
states to authorize the formation ot
corporations and stock companies
Even if the tax Were on franchise It
still would not bo a lax on the legis
lative power of tile state Corporate
franchises he adds grow out ofnt p
offer by the state and an act of free t
ohoico of election by the persons to
whom thu offer Is extended Hence
he concludes franchises are created
not by th stab hut by the person
which accept them
No authority exists Mr Bowcrd
continues that holds 01 even sug
gests that the United States can
not tax thin franchises of n state cor
r poratiou established for ordinary
business purposes on the theory that
itch federal tax will Interfere with
legislative independence of the slate +
in their own sphere
It does not folldw andis not tnie
he contends that the United States
may not by taxation burden hnmpor
the operations of a stalelaw bocaue
a tatcunlynotll t xnUonr burden or
I hribper the operation br ilaw of the
United States i
This statement is explained on the
ground of the assorted supremacy of
each power of the nuMonal govern
ment over all powers of a state when I
ovnr the two meet
The several objections to tie lav
a san excise tax because of Its al j
leged lack of uniformity are comdd
ored by Mr Bowers Tho constitu j
tional requirements he claims are
met If the tax is geographically uni
form In this connection ho proccedt I
to explain several features of Ito law i
and to cite cases to substantiate the I
clnlm that au oxclso tax Is given tins
greatest freedom of classifi ration oi I
any taxes Imposed by congress
One reason assigned for exempting
individuals and partnerships is that
they arc without the aid of legal rues
applicable to corporations and joint I I
stock companies Both reason and au
thority it is claimed justify tho ex I
emption of corporations whose net in I
come Is not aver 5000
Exemptions from taxation of a lim
ited amount of individual property
arc well nigh universal says Mr
I Bowers and they rest doubtlesp
upon the just and necessary policy
of leaving a living opportunity unbur
dened by government
nlior agricultural and horticul 1
tural orgnnlzatlous are exempted hu
cays because they seem hardly to I
be organized for profit He adds that
II it Is necessary the statute could I
well be construed as not exempting t
such associations If the primary pur
poses in business profit
The exception of societies operating
under the lodge system ho contends
justifies Itself Such Mr Bowers
gays arc the Knights of Pythias
Knights rf Labor certain Masonic
orders the Red Men of America and
the Woodmen of the World
It Is almost humorous ho says
to urge that suchorganisations
be considered Insurance companies
hang purely or chiefly pecuniary j I
functions
He then named a ion of the groat i
American mutual Insurance compunlist J
whose financial power nnd opetttUouh
he declared are nut surpassed in tho j
entire business world
I Reply is made to the objection to I i
tho limitation to the amount of Inter I
est deduction in arriving at tho net
Income I
Without the limitation says Mr I
Bowers corporations and joint com
panies by issuing bonds for all or
most of their capital cither with Qr
without an accompanying Issue of
stoclcould distribute the business
profits however large in the form of
Interest payments and the tax in
that way could be entirely or largely I
avoided I
The solicitor general urges that the I
tax docs not subject t he corporations
to unreasonable search or aoimro by
reason of its publicity feature Neither
the making nor the publication of the
returns can by any possible view bo
interpreted as a search or1 seizure he f
contends
Finally it is contended that the lax I
may properly be collected In 1910
This is based on tho argument that
the tax Is not laid on tho Income which I 1
was recoiled before tho law went into t
effect August 5 1909 but is merely
measured by that Income i 1
CHICAGO TO HONOR TAFT < I
Chicago March 15The city coun
cil passed an order last night making
March 17 a holiday in honor of tho
c I
d
h

xml | txt