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THE NEW ERA
■WALDEN - • - - COLORADO COLORADO ITEMS Dog poisoners are active in Denver. Denver Is having its annual water fight. Colorado Springs spread a flower path to President Taft. Colorado weather just couldn't be have itself long enough to show the President the best side. Joseph Richard, a miner from Rug by, says he was hypnotized in Den ver and relieved of SBO. Despondent because he could not secure a renewal of his farm lease, (rus Pape committed suicide at Broom field by shooting himself in the head with a rifle. The body of J. J. Hagerman, who died at Milan, Italy, will be sent to the United States on September 25th, the date he and Mrs. Hagerman ex pected to sail for home. Land in Jefferson county, near Den ver, is increasing in value, as is shown by the recent purchase of a quarter section three miles north of the city, by Nathanitl Ketchel of Den ver. Ketchel purchased the land from Wm. W. Wahl, paying $25,000 for it. This same tract was on the market two years ago for SIB,OOO, but no one seemed to want it at that price. A preacher who quit the pulpit to become a newspaper man, and who in turn quit that business to go back to the church, has been appointed pastor of the Methodist church of Goldfield, Colo. He is Rev. M. M. Eaton, for merly considered the most brilliant preacher and platform orator of West ern New York. He left the pulpit be cause of failing health and returned when he became cured. A railroad survey party reported to be closely allied with the Colorado & Southern, is making a survey from the little town of Mesa to Palisade and Grand Junction. The party have been in the field nearly a week, are at pres ent working up Rapid creek. It is reported that the surveyors have found a new route that presents a better line than the one usually fol lowed. Congressman Martin at Pueblo re ceived notice of the granting of a pen sion to Jose Ignacio Trujillo of Be gundo, who served in the Third Colo rado cavalry and was wounded in the famous battle of Sand Creek. Novem ber 29, 1864. For years the veteran has been unable to get a pension be cause the enlisting officer spelled his name as It is pronounced, "Troheo.” He will now receive $3,800 back pay and sl7 per month for life. State Coal Mine Inspector J. D. Jones has filed his semi-annual re port with Governor Shafroth, showing . an increase in production for the first yix months of the year of 406,936 tons. The total production in the state amounted to 4,823,412 tons. The larg est increases shown in the report are in Huerfano and Las Animas, 147,393 tons and 22,960 tons respectively. Jones reports that all of the mines of the state are making preparations for a big season. A movement is on foot to reopen the Belle Vista hotel in Golden, which would give Golden as large and mod ern a hostelry as any of the smaller cities in the West The Belle Vista was built twenty-five years ago when the hotel and the lavish style in which it was conducted were fully a quar ter of a century ahead of the town and its surroundings. After a brief career it was closed and has since been used as a student rooming house. Officers of the Golden National Guard company have taken prelimi nary steps toward its reorganisation into a corps of engineers. On ac count of having so many students, who are taking technical courses, in the ranks, it is believed the change would be advantageous to tire state as well as the company. General John Chase favors the plan and Captain Bleil and other local officers are con fident they will be permitted to make t|ke change. The $125,000 Temple of Cpmemrce to be built by the Denver Chamber of Commerce, adjoining the Ideal building, on Champa street between Seventeenth and Eighteenth streets, will be started October Ist. Entirely new plans furnished by Marean ft Norton have been accepted and the work is to be pushed forward as rap idly as possible. The building Is a five-story affair, with a roof garden and will be one of the finest struc tures of its kind west of the Missis sippi river. A big strike of copper-lead ore Is re ported Just over the range in Grand county, from Boulder, on the property of the Consolidated Copper Mining, Milling ft Smelting Company, Whose offices are in Denver. A four-foot body of ore has been opened on the western slope of the Arapahoe pass, several hundred feet from the crest, the vein evidently being a conttnua • tion of the old Olympic, a vein run ning parallel with the Fourth of July dyke, which is located on this side of the range. This is President Taft week In Colo rado. As the result of large orders of coke for the Pueblo steel works, orders have been issued for the Segundo coke ovens to be fired up and worked full time. There are 800 coke ovens la Segundo. CONDENSATION OF FRESH NEWS THE LATEBT IMPORTANT 018- PATCHES PUT INTO SHORT, CRISP PARAGRAPHS, STORY OF THE WEEK BHOWING THE PROGREBB OP EVENTS IN OUR OWN AND FOREIGN LANDB. WESTERN NEWS. Right Rev. William George McClos key, bishop of Louisville, Ky., and the oldest living prelate in the Uw'ted States, died, aged eighty-five years. The 26,000 ton battleship to be built by the New York Shipbuilding com pany will be known as the Arkansas, and that by William Cramps Sons & Company as the Wyoming. The con tracts for these ships were let several days ago. Attempting the part of peacemaker between W. O. Terry and John Shan non at Tyrone, N. M., a Grant county mining camp, Thomas Burch received two bullets and died soon after. Terry, who fired the fatal shots, is in jail at Silver City. Walter L. Fisher of Chicago, presi dent of the Conservation League of America, announced completion of the formation of the National Conser vation Association with former Presi dent Charles W. Eliot of Harvard as president. Eugene Pearson, former chief clerk in the depot quartermaster’s office *of the United States army in San Fran cisco, was sentenced to one year and one day in the San Quentin prison, for embezzling $1,140 from the govern ment. A motion for a new trial was denied. The T. H. Bunch company, a large grain concern, at Little Rock, Ark., has filed a petition in bankruptcy. It is reported that local banking institu tions are involved to the extent of $300,000. The annual business of the concern, it is said, has ranged between $4,000,000 and $7,000,000. The Standard Oil Company haa a deal pending which is recognized by financial interests as the beginning of a movement to gain control of the en tire country’s production of natural gas. This deal, which will go through within a short time, will give to the Standard Oil Company entire owner ship of tha Reserve Gas Company, which controls the gas output of West Virginia. Plans and specifications practically have been finished and the contracts will be let In a few days for a new office building for the Atchison, To peka ft Santa Fe Railroad Company at Topeka. The new building will t e erected immediately south of the pre sent office building. It will cost about $200,000. The structure will be six stories high and 75x152 feet in dimen sions. It it to be fireproof, construct ed of steel and concrete. It will ac commodate 600 clerks. The Root & Siemens firm of Kansas City designed the building. GENERAL NEWS. The first process of making soda on an extensive scale was discovered by Nicholas Leblanc, a French chemist, in 1791. Ohio produced 26,270,639 short tons of coal last year, a decrease from the previous year’s output of about 18.27 per cent. In some of the, public schools of Connecticut a course of agriculture has been introduced in some of the higher grades. During the last year the population of Germany increased by 896,000 per sons, to 63,886,000, according to offi cial statistics. Skimmed milk has been proved a valuable food for laying hens, accord ing to experiments of the Virginia ex periment station. Tigers (American breed) are said to have eaten up two naturalist ex plorers In Coßta Rica. If the polar bear were anthropophagous like the Central American tiger, civilization — but why pursue the subject? Another great millionaire has fol lowed Russell Sage’s example in trust ing his widow with his whole fortune. In each case the decedent knew his residuary legatee well enough to be sure of making no mistake—which Is a real advantage. In tearing down the old house built by William Whipple, a pioneer lumber man who died twenty years ago. Con tractor William Jackson at Bay City, Mich., found a musty pillow slip which aroused his curiosity because it was so heavy. Ripping open the slip with his jack-knife, he found $2,000 In gold coin mingled with the feathers. The money was turned over to Frederick Whipple, a son, who is preparing to erect a new house on the site. It is well known that the long arc tic winter, with Its depressing effects on body and mind, often upsets the best balanced nervous system, even of the natives. But this hysteria vanishes with the summer. Explorers have suffered In the same way, and two committed suicide. In summer Eski mos get so full blooded that nose bleeding is very common. Minister Wu says he expects to see war abolished. In his country the tax payers evidently have no song with a line equivalent to “The army and navy forever.’* It Is estimated that 113,00 adult males In New York City make a liv ing by ’’their wits,” without in any sense being an economic factor aiding in production or distribution. J. E. Sayre, merchant, Racket Richie county, was arested at Harris ville, W. Va., on the charge of having murdered his seventeen-year-old wife on the day he married her in that city. King Edward is a clergyman, al though few people seem to be aware of the fact. He is prebendary of St. David’s, in Wales, and gets a salary of $5 a year. He is entitled to preach one sermon a year in the cathedral. He is also a member of the English and Irish bars and a member of the Royal College of Physicians. King Leopold’s latest whim, prao tlcally completed, is a private railway leading from the Brussels surburb&n station at Laeken to the palace, about a mile away. This railway, altogother hidden from sight, is luxuriously ap pointed; from it his majesty steps in to an elevator which conveys him di rect to his apartments. The* railway, tunnel and fittings cost $1,200,000. Eskimos are all children, contented, peaceable, honest and hospitable, with out rulers, and without ambition for fame or power. They live almost entire ly on raw animal food, and this explains the absence of a number of diseases which are common to civilization. Balt water contains iodin, and all sea an imals, as well as all who eat them un cooked, absorb more or less of this fickle chemical substance. The Spanish bark, San Antonio, with 15,000 bags of salt aboard, has sunk in Havana harbor. No one can truthfully say that this salt is lost; it has emerged its individuality with that of the capacious deep. All the owners of this salt need do to re cover their property is to await the slow but sure evaporation which sci entists tell us is drying up and disin tegrating the earth quite after the manner of the shredded codfish of commerce. One of the reforms which have been placed to the credit of the Young Turkish party In the Ottoman empire is the abolition of the ‘‘red ticket regulation.” Until this took place a red card was issued to a .Tew on arrival in Palestine, the possession of which entitled the holder to a three month’s residence. If the red ticket man wished to remain longer the cre dential had to be renewed, and this naturally led to abuses in the nature of graft. The abolition of this re strictive measure was urged upon the authorities by Israel Zangwill. Twenty-five thousand Chinese Cool ies are wanted to finish the Canadian Grand Trunk railway at $3 a day and board. Chinese cooks get $75 a month in New York, as against S3O to $45 paid to Japanese . cooks. Chinese laundrymen make $lB a week here. A Chinaman will do as much in one day in a house as the average servant girl does In six. The wages which the Chinamen’s untiring industry, honesty, intelligence and loyalty command are the measure of the yellow peril we icel when he is here stealing our Job. By offering this work and big wages to coolies the officials of the Canadian Grand Trunk are discouraging that American labor which is inclined to turn over on the park bench for an other snooze until it is time for the bread line to form. NEWS FROM WASHINGTON. Treasurer Charles H. Treat has re signed, to take effect in October. No successor has been chosen so far as known. Secretary Ballinger emphatically de nies that he intends to resign. Ball inger Is confined to his room on ac count of throat trouble. The application of J. W. Caudill, Oscar Thompson, R. Wright, R. F. Love and A. J. Scaff to organize the First National Bank of Lovington, N. M., with $25,000 capital, has been ap proved by the comptroller of the cur rency. Acting Secretary of the Treasury James B. Reynolds has telegraphed to President Taft his acceptance of the appointment os a member of the tariff board. No date has been fixed for Mr. Reynolds’ retirement from the assist ant secretaryship, nor Is it known yet who will succeed him. The arrange ments for the meeting of the tariff board are still Incomplete, although the first session may be held for pre liminary organization within a few days at the Treasury department. With a full-fledged forest experi ment-station high up on Pike’s Peak, in addition to the one at Flagstaff* Ariz., the forest service will endeavor to minimize the Injury resulting from mistaken practices in its domain. An outline of the proposed work at these stations was made public today. Al ready the feasibility of artificial re generation of pine forests by planting and sowing is being tested. A de tailed study of natural and artificial regeneration of such trees as Douglas fir, Englemann spruce and the juni pers Is planned, also. Tests will be conducted with a view of introducing trees superior to the native growth in various sections. According to Judge S. H. Cowan of Fort Worth, Texas, attorney for the National Live Stock Association and the Texas Cattle Raisers’ Association, the country is confronted with unheard of for beef this winter. Judge Cowan says the cost of living will show continued Increase next winter and points out that the cattle market is now short a million head of cattle. “The price- of beet” said he, "will in crease the coming winter to a point now unheard of, tor the demand is much greater than the supply.” PRES. TAFT OPPOSES PERPETUATING FORTUNES AND UPHOLDS INCOME TAX Believes Government Should Be Supported in Its Measure to Impose a Corporation Tax of One Per Cent on Profits Denver. —Pres. William H. Taft came to Denver a mlasioner for the proposed Income tax amendment to the federal constitution. At a meet ing at the Auditorium Tuesday night the President appealed to the people in general and Colorado in particular for the first time during his tour of the states, to elect legislatures that would adopt a resolution in support of the amendment. The response from a popular audience was hearty, but in nowise enthusiastic, and it did not come from every part of the building. This appeal followed his set speech which was an elaborate, Judicial de fense of the action of Congress in passing, and himself in signing, a measure which included a corpora tion tax of one per cent, on corpora tion profits above $5,000; and the adoption of a proposal for a constitu tional amendment giving authority to the national government to levy, an income tax without the requirement of having the same distributed among the states according to population. This proposed income tax, the Pres ident was careful to explain, is to serve, in his belief, only in times of national stress. . With the constitution thus amend ed the corporation tax could' be strengthened by future legislation. Of the corporation tax itself, now a part of the tariff law, President Taft spoke at length and defended it, not so much on the amount of receipts, which would be considerable, but be cause it would give the government a leverage on great corporations that are complained of by having their acts come within governmental, or at least presidential and departmental review. To learn whether the corporations were paying their proper share of tax ation under the corporation tax pro vision of the law government would have access'to their books. Further, the knowledge gained would aid in tariff reform that might be found necessary as through the “in quisitorial” channel referred to the government would be able to tell more or less regarding cost and profit of corporations. An inheritance tax graduated so as to reach the multi-millionaire’s estate, and bring about the more speedy dis tribution of great fortunes, coming from the states was a concession from the President, to the “state rights” men; but in parenthesis he stated that even a double Inheritance tax—national and state —would not be a burden .too great to bear. He was severe, almost Rooseveltlan, in his firmness against the habit becoming more common of creating trusts, to continue for a long period, great es tates or fortunes in the hands of the few. An inheritance tax, unlike an in come tax, could not be dodged. An estate, after death, could not be hid den or coyered. Evils of Income Tax. The President was judicial in his ut terances. He pointed out the objec tions to an income tax, its putting a premium upon perujry, and quoted the results in England under the old sys tem, and also pointed out that it would tax earnings along with the passive income; nevertheless, he supported the proposed amendment and pleaded for its support here on the ground that it would be called Into operation only in emergency. In part President Taft said: “I have selected tonight for consid eration and discussion the corporation tax which was embodied in the tariff bill recently passed, and the Income tax amendment which at the same session of Congress, and really as a part of the tariff bill, though formally Included in a joint resolution, propos ing to the states to amend the consti tution of the United States by giving to Congress power to levy an income tax generally without regard to the apportionment of the tax among the states according to population. “The necessity for this tariff arose not only because the rates in a num ber of the schedules had become ex cessive and were quite beyond the measure of the tariff set by the Re publican platform, to-wit, the differ ence between the cost of the produc tion of the article at home and that abroad, together with a reasonable al lowance for profit to the American manufacturer, but also because within the last year or two the tariff had ceased to produce enough revenue in connection with the internal revenue law, to pay the expenses of govern ment. Graded Inheritance Tax. “It was first proposed, and I recom mended it in my inaugural address, that the central government impose a tax upon inheritance—a graduated in heritance tax, that is, a tax the per centage of which increased as the in heritance was greater, in a certain proportion; but this was objected to by many of the states, some of whose Legislatures passed protests against it, on the ground that that was a field of taxation which the state had pre empted, and in respect to which it would be rather unfair to impose a double burden. I have no disposition to quarrel with that conclusion, al though I think a good deal might have Youngest of the Spectators. WilUam Howard Taft Wilsbury, aged twenty-eight days, was among the spectators of the presidential pa rade yesterday. He lay snugly in his grandmother’s arms near Seventeenth and Lawrence streets and didn’t seem much interested in the proceedings. John Wilsbury, William Howard’s father, is an. admirer of the President and yesterday morning, but a few hours before the parade, the young ster was christened with the name of the nation’s chief executive. L | been said in favor of the federal in • heritance tax because the truth is that > even though the state and federal gcv . ernment impose the inheritance tax . at the rates proposed, both taxes [ would not have been particularly . heavy. Still, with the inheritance tax foreclosed, the question then arose as ’ to what tax should be imposed in or • der to make up th,e deficit. This ques tion arose, in the Senate. For the in i heritance tax had passed the House, • and had been stricken out by the • finance committee of the Senate. “A part of the Republicans and all of the Democrats of the Senate united 1 in pressing for consideration a general income tax on Individuals throughout 1 the United States. It left an exemp • tion of those whose Incomes did not • exceed $5,000, but upon the rest it im posed a general income tax of 2 per . cent. It also imposed a tax under . the former income tax upon inherlt , ances, and it was as inquisitorial as possible in subjecting the business of every individual in the community to investigation, and permitted the exam ination of his books and all private evidences of what his business con sisted of and what his Income was. This investigation was to be carried on by the collectors and deputy col lectors of the internal revenue. The law was as near as it could be made to the income tax law which had once been by the supreixfe court .some ten years ago and which was held to be unconstitutional by a vote of five to four. It was conceded that the tax would probably raise $150,000,- 000 to $200,000,000, which was far in excess of the needs of the govern ment if the tariff bill was to retain its general form, as proposed, and so to produce revenues which should be reasonably expected. Our friends, the Democrats, favored the income tax with a view to substituting it for the tariff as an income-producing measure, thus minimizing the effect of the tariff in protecting the industries of the country. Would Have Interfered. “In other words, the passage of the income tax bill would have lent sup port probably to the proposition to have a tariff for revenue only, and would have interfered with the pro tective policy to which the Republi can party is pledged. “One further objection to the income tax amendment was that it had been declared unconstitutional by the su preme court, and to invoke a second decision upon that issue Was to ques tion the uniformity of the decisions of the supreme court, and to drag the court into a political which whatever its decision, could not make for its standing as an impartial tribu nal before the people. It indicated a diversity of view between congress and the court —two coordinate branch es—with reference to the constitution ality of the law which it seemed un wise to perpetuate in a formal stat ute. But the income tax amendment seemed quite likely to pass by vote of all the Democrats and a sufficient number of Republicans. Therefore those who were opposed to the in come tax amendment looked about to see if a compromise could not be pro posed less objectionable than the in come tax amendment, which would satisfy enough Republicans who were inclined to favor the income tax to prevent the passage of that amend ment. Such a compromise was found in a proposal to pass the present cor poration tax, and also the joint reso lution already referred to, proposing an amendment of the federal constitu tion to the state authorizing the gen eral government to impose an income tax without appodtioning it as a di rect tax according to the population of the states. Constitution Does Not Forbid. “For sake of clearness, I may say that the constitution does not for bid the levying of an income tax by the central government. The section of the constitution involved in general terms forbids the levy of a direct tax by the central government unless such direct tax is apportioned among the states according to their population. The Supreme Court, in the last de cision referred to, held that the in come tax was a direct tax, and, if levied at all by the central govern ment, must be apportioned according to the population of the states. This made the imposition of such a tax ut terly impracticable, and so construed, in effect, forbade a general tax at all. But there are decisions of the Su preme Court authorizing an excise tax to be levied on business corporations and to be measured by the gross in come or the net Income of the busi ness; and therefore it seemed to the general, as it has to a great many ex cellent lawyers, entirely within the decision of the Supreme Court as con stitutional to provide that all corpora tions engaged in business for profit to pay to the central government an ex cise tax equal to 1 per cent of their net earnings. At first it was thought that 2 per cent would produce about $25,000,000. Subsequent investigation ; seemed to show that this was a very > decided underestimate, and that 1 per cent would produce that amount, ■ | and that that amount would be suffl > I cient to meet the probable difference Old Time Defendant Pulls Taft. Toledo, Ohio.—James Lennon, a lo comotive engineer, who, fifteen years ago was one of the targets of the famous injunction issued against rail road employes by Judge Taft, then on the United States Circuit Court bench, but who later became a supporter of Taft, was at the throttle of loco motive that pulled the train bearing the President from Toledo-to Elkhart. “Cohen's ill in bed, I hear.” “Yes, he smoked a cigar from the wrong pocket”-*—Puck. between the net receipts from the In ternal revenue and tariff bill and the expenditures of the government. The p provisions for the corporation tax in ' the bill exempt all corporations whose net Income does not exceed $5,000. It i is therefore, in effect, an income tax; that io, it taxes earnings actually made. It is a tax upon success and not failure. * Corporate Advantages. “Complaint is made that it is a dis criminating tax in that it taxes busi ness conducted under a corporate form, whereas when the business is conducted by a partnership the busi ’ ness escapes taxation altogether. The ; justification for the distinction arises ’ from the advantages which the busi j ness enjoys under a corporate form. r first, in that the individuals who . really own the business by being the J shareowners of the corporation hive only a limited liability and are not ’ bound to meet the debts of the cor poration beyond their stock invest ment, or in some states more than 100 J per cent beyond their stock invest ment; and, on the other hand, the I advantage of a permanent establish ment in the business because no mat- I ter whether the present owners or ; managers die or not, the business ! continues in its corporate form with out a settlement thereof in the ad ! ministration of the estate of the de . ceased owners. "Now, if the proposed amendment . to the constitution authorizing the !m --; position of an income tax without ap ■ portioning it among the states accord i ing to population passes, it will bo . possible to add to our corporation tax the feature of Imposing a tax on the , bonded interest in that corporation by a percentage tax upon interest to be paid, thus reducing the amount of in terest which the corporation would pay to the bondholders to the extent of the tax collected. This would make the corporation tax a more beneficial measure, and one reaching interests that ought to be reached because un der modern systems of financing cor porations, the bondholders and stock holders are all of them in a sense joint investors, and a corporation In come tax ought to include them all. Under the conditions that existed with reference to the constitution it seems to me clear that the corporation tax is an equitable burden, one reaching active business, not too heavy to re tard it, but enough to collect a sub stantial revenue from those who are successful in business. “It is a tax easily collected—one that no corporation can escape—one in which perjury cannot play any im portant part at all in an effort to es cape it. Evidence Not be Made Public. “This is to be done only after the commissioner of Internal revenue shall have ascertained from evidence that their returns required by law are not correct. Then the evidence which he secures by his Investigations of books and papers and examination of witnesses is not to be made public, but is to be held in the secret archives of the government until the President shall deem it of public inter est and according to justice to make the facts known. “I am most strongly In favor of adoption by the states of the amend ment authorizing Congress to impose an income tax without apportioning it among the states according to pop ulation; and I am strongly in favor of this because in times of great stress, if war or some other calamity were to visit this country, and we should need to strain our resources, the income tax would be one of the essential Instruments by which we could collect a large amount of money to enable us to meet the exigencies. ft has been so in the past, for during the Civil War it was understood that the levy of an income tax without ap portionment was constituitonal, and such a tax was levied and was col lected. And I consider it In the con stitution, as at present construed, an elemental weakness on the part of the central government not to be able in times of emergency to levy such a tax. “It seems that the present Con gress has taken the wisest course in adopting as much of the feature of an income tax as conforms to the con stitution, and by recommending an amendment to the constitution which shall enable us to round out and per fect this corporation tax so as to make it more equitable, and so to make it an instrument of supervision of cor porate wealth by federal authority. I doubt not that the information thus obtained may be made a basis for fur ther legislation of a regulative charac ter, applicable only to those corpora tions whose business is so largely of an interstate character as to justify* greater restrictions and more direct* supervision.” After he had done with his manu script, President Taft said: “The question now Is whether you in Colorado will adopt the constitu tional amendment. It is not a party question. There has been doubt ex pressed regarding the genuineness of those who voted for it; still I believe the people favor it and I hope that the people will see that their legislatures are properly representative of their will in this matter. Such a power ought to be in the national govern ment It has been said that It will be hard on a few states, although I doubt it; but even in an emergency the gov ernment has a right to take the money where it con get it. “I cannot go without recording my appreciation of the cordial welcome given me, and I recognize that It is given to me as the titular head of the nation, but even then it is gratifying to be the instrument of the testimony given by you typifying the patriotism which the American people feel to their government. Good night.” Has He Got It? Chicago.—ls the figure “6” lighter man the figure “9”? Or, to put it another way, is the figure “9” heavier than the figure “6”? Still again, will figures, so placed on the spokes of a wheel that such figures will be •*9s“ going down and “6s” going up. keep the aforesaid wheel revolving continually without any * motive power? A woman doesn't seem to worry as much because her husband gamTA as she does because he isn't a winner.