Indianapolis Journal, Indianapolis, Marion County, 13 April 1897 — Page 4

THE INDIANAPOLIS JOURNAL, TUESDAY, APRIL 13, 1897.

THK DAILY JOURNAL TUESDAY, APRIL VI, 1807.

Viithiciloa Cilice !13 Fcncj) hinia Avecu: TelepWne Call. H'llaet cHIce I UdltarUl roorrs...ASt TERMS rth' SIUSCUIPTIOX. PAILY BY MAIL. Dall7 enly, on month I ."0 I4ily only, three months 2-W luy orly. or: ytar s.'n Dally. Inclullnsr tunJuy, one year 10.O) fcuaOay only, tn year .. -.Ge WHEN FURNISHED DY AGLETS. Daily, per week, by carrier 1j cts fcuruluy. single co;y Sets Dally and fcunJay, itr we?k. Ly carrier. .. ..u cU WEEKLY. Pr year U.W Reduced Hates to L'luha. Subscribe with any of cur numerous agents or end aubacrlttons to THE INDIANAPOLIS JOIHNAL, Indlniuipolin, I ltd. Person sending the Journal through the malls In the United states should put on an eight-page paper a ONE-CENT poaUiue itantp; on a twele or slxteen-pare oaper a TWO-CtNT postage sump. Foreign estate is usually double these rates. All communications lnttnd-l for publication In this paper rnuat. in order to receive attention, be accomj-anitd by the name and address of the writer. If It In desired that rejected mnnuiM-ript be returned, postage must In all cabea b incioard for that purpose. TIIU 1.XDIA.NAPOL.1S JOtllNAL. Can be found at the folic lr placee: NEW YOItK Windsor Hotel and Astor House. CHICAGO-Palmer House and P. O. News Co., 217 Leurburn street. CINCINNATI J. i. Hawley & Co.. 1S4 Mne LOUISVILLE-C. T. Lfcerlng. northwest corner f Third and Jefferson streets, and Louisville Book. Co.. t'ourtb avraw. ST. LOUIS-Union News Company. Union Depot Washington, r. c Rises House. Ebbitt House, Whiird's Hotel and the Washington News Exchange. Fourteenth street. Utweea Penn. avenue and F street. The gold in tho treasury is now $153,OOU.OuO, an increase of u mlllon recently. Vnfortundtely, much of it represents bona IMi.lt.-8. If we should have trout with Spain or' anybody ele, the assistant secretary i tne navy could furnish the fighting force for one war ship. The fiushest of times will not prevent the failure of a bank whose officers have. loaned all its funds to themselves and other irresponslbles. If the charges made against Dr. Iliinter, the Republican candidate for United States senator in Kentucky, should prove to be the result of a conspiracy, the exposure of the fraud should elect him. The testimony taken by the Populist committee to investigate the Populist Legislature of Kansas Indicates that the chief occupation of the Populist members was to find men who would bribe them. There will be a "cry from Macedonia" soon to "come and help us," and it won't be the Turks who wUl do the crying, either, but the Greeks who are being slaughtered with the tacit acquiescence of the Christian powers. , Those Democratic papers which are calling attention to the fact that abundant prosperity has not come are reminded that It was not promised until a reasonable tariff law takes tho place of the present law, which no one defends. 0SBSMSlSHSaiSKSHkVSMaSM Thousands of people will pay homage to the late Senator Voorhees to-day who-have never been other than foes to his political policy and action. They forget all that and nexnember him as a generous man who. If he did not always serve hl State wisely, came out of an extended period of service with clean hands. Those deluded persons who still insist the silver issue was indorsed In the Chicago election are reminded that Mr. Bryan was Jn the city a few days before the election and called upon Mr. Harrison, but neither he nor any of the managers of 'his campaign asked Mr. Bryan to speak, although he seemed to have been In Chicago for that purpose. Those papers which, are making prices based upon the proposed tariff seem to have been clipping from their files of 1S30, when they filled their columns with prices which .were never .marked upon merchandise. When our own manufacturers can produce all the goods of certain varieties which we want the foreign price and th,e duty added will have nothing to do with the price of the same goods of domestic make. A Washington correspondent says that only a few days ago Senator Allison, of Iowa, and Senator Gorman, of Maryland, a Republican and a Democra':, discussed the financial situation of Mr. Voorhees with a view of finding some way by which he could live comfortably during his remaining years. ThU incident shows that there is often much human sympathy between political opponents more than there was years ago. It la better thus. x The argument of Mr. Beverldge against tho taxation of insurance policies Is a vivid and masterly presentation of the side of the policy holder. He has covered the whole subject and covered it in such a manner that those who present the other side will have no easy task. Now that the Bide of the policy holders has been so fully presented it would bo well for tho tax commission to give a clear statement of. the grounds upon which its intention is based and the rule which It proposes to adopt for estimating the value of policies. The Journal I pleased to learn that the township trustees In Madison county have no idea of Ignoring the law of the last legislature requiring them to submit their warrants to the county commissioners for audit. It must be that nearly all of the township trustees In every' county in the State art intelligent and honest men else they would not have been elected by -the oters. a majority of whom In most of the townships are taxpayers. The law . was not Intended to cast reflection upon township trustee?, but to insure a uniform method of supervision. BHSS1BMSSHBVSSMSSSBS1SSSSB If Senator Mills, of Texas, w ill undertake the reforms 'in the rules of tho Senate which he ably advocated In a recent newspaper article, he-will xs forgiven for some of tht things which are held against him. By the prevent rules a vote cannot be taken so long as a senator desires to talk upon a measure, consequently a bill to which there is any considerable opposition can be talked to death unless the majority concludes to "sit It out" in order to wear out the talkers. Senator Mills is right wlien he ays that the Senate should adopt a rule providing for the prejous question and thus give a majority of the Senate control over its action. Tin country very generally Is with the Texan, even if the Senate continues to he willing to be controlled by a small minority. The moving of the convicts yesterday was the beRinnlng of a new policy in the management of the State's penal inatltu-

tions. The Prison South has become a reformatory, while the Prison North Is the penitentiary of the State. The Reformatory will be managed with a view of reforming those gent to It, while the Prison North will be the place to which men are sent whom it seems necessary to keep apart from foclety because they are a menace. With the new system of sentences, the present prison population will be decreased, but. with the law for Lidding the contracting of the labor of convicts, the prisons will be as great and probably a greater charge than under the old system. The new system, however, puts Indiana In the front rank of States in the treatment of the criminal class. It Is fortunate tint the new system had the indorsement of both parties In the legislature. Till: IJEFAMERS OF JEFFERSON.

To-day Is the anniversary of the birth of Thomas Jefferson. Some Democrats will recall the fact and a few will celebrate the occasion In a fitting manner. Well they may If they will consider tho services of Thomas Jefferson and tell the truth about him. Tho trouble Is that ome of those who will celebrate Jefferson's anniversary to-day will refer to him casually and then proceed to make speeches in favor of the frc-e and unlimited coinage of silver in som other than its mercantile ratloMr. Bryan Is one of these. He is very much of a professed admirer of Jefferson. He proposes to have Democrats purchase Monticello, the home of Jefferson, for a Democratic Mecca. If it were the purpose of Mr. Bryan to u.se the Jefferson homestead to turn the attention of the country to the b.lief s of that distinguished statesman, the suggestion would be an excellent one, but to use Monticello, which has been made immortal by the tomb of Jefferson, to teach what he would have denounced as heresies. Is an insult to lils memory. Concerning the one Issuo which Mr. Bryan represents Thomas Jefferson is against him. Knowing that this is the case, it pushes the comprehension of the average man how he can use the name of Jeffersfcm In which to masquerade as the advocate of theories which Jefferson denounced. Thomas Jefferson was th advocate of sound money. He had lived through the period of the paper inflation of the Continental Congress. He had seen Its paper dollars fall from nearly par to worthlessness. He was a philosopher and a statesman who gave intelligent attention to all question affecing the welfare of the new nation. Upon the question of coinage he bestowed much study. While the question of the coinage ratio was under consideration, in 17S2 or 17S3, Jefferson prepared somo notes on "the establishment of a money unit and of a coinage for the United States," which were sent to Congress. In those notes Mr. Jefferson said: The proportion between the values of gold and silver is a mercantile problem altogether. (Then follows a comparison pf the ratios of the leading nations.) Just principles will lead us to disregard legal propositions altogether; to inquire Into the market price of gold in the several countries with which we .shall principally be connected in commerce and to take an average from them. Perhaps we might lean to a proposition somewhat above par for gold, considering our neighborhood and commerce with the sources of the coins and the tendency which the high price of gold in Spain has to draw thither all that of their mines, leaving sliver principally for our and other markets. It Is not Impossible that 13 to 1 may be found an eligible proportion-Later the official financier, Robert Morris, informed Mr. Jefferson that the ratio of 13 to 1 was not a true mercantile proportion, whereat the latter wrote as follows: I observed In the preceding notes that the true proportion of value between gold and silver was a mercantile problem altogether, and that perhaps 13 to 1 might be found an eligible proportion. The financier Is so gocd as to inform me rbat this would be higher than the market would justify. Confident of his better information, on this subject, I recede from that idea. Why was Jefferson so eager to ascertain the exact mercantile ratio between gold and silver? Because he knew, as all subsequent experience has demonstrated, that to adopt any other ratio than the mercantile one as the basis of money values would deprive the country of the metal which was undervalued, and that It would be forced to a monometallism of the overvalued metal. Thomas Jefferson was an intelligent bimetallism - It may bo possible that some of the alleged statesmen who are masquerading as Jeffersonlans may so far recover their senses as to have a desire to ascertain a coinage ratio which will give the country tho uso of both metals as full legal tender money. If there shall be such seekers for truth they are referred to the following suggestion made to the committee of states as to the course to pursue to obtain a coinage ratio: To appoint also proper persons to inquire what are the proportions between the values of tine gold and line sliver at the markets of the several countries with which we are, or may probably be. connected in commerce; and what would be a proier proportion here, having regard to the average of, their values at those markets and to other circumstances, and to report the same to the committee, by them to be laid before Congress. If such a commltttee as Mr. Jefferson suggests were to attend to that duty now it would report in favor of a, ratio of about C3 for 1 instead of tho legal ratio of 1G to 1 established in 1S31. Tho Bryanltes must have knowledge of these facts regarding tho views of Thomas Jefferson, yet they are declaring "their allegiance to Jefferson, while the only Issue they would make In poltlcs is to demand a coinage ratio which Jefferson denounced. Thus they misrepresent tho dead and defame a great name. "" m FOREIGN NATIONS 1'UUTKSTlMi. There seems to be no doubt that at least two or three Kurtiean governments have, though their representatives in Washington, filed formal protests against the pas sage of the Dingley bill. Germany, Italy and the Netherlands are specifically mentioned as having taken this action. It is said that the protests, while couched in diplomatic language, plainly call attention to the effect which the proposed bill, if passed, would have on the commerce of the several countries named, and that the one filed by the German embassador amounts almost to a direct threat of retaliation by the German government against the United States. It may be In accordance with diplomatic us;ge to file such protests, as every minister Is exacted to look after the Interests of the country he represents, but from an American iolnt of view they are impertinent. Besides, at this stage of the proceedings they are premature. The Dingley bill is still In a formative stage and will le considerably changed before It Incomes a law. Neither the foreign ministers nor anybody cle knows in what shape It will pass, and a protest against its present shape Is llrlng in the air. Foreign governments should not cry before they are hurt. If such protests h ive been tiled It Is to be hoicd Congress will take high and strong American ground on the subject. As the Journal has said before. In passing a tariff law for the benefit of the American pVople Congresi should not give a moment's thought to Us effect cn the com

merce or business of other countries. The only thing to be considered is the protection and promotion of American Interests. Of course, if it should become apparent or If. there should be good reason to believe that the bill would In any way react to the detriment of American interests that way should be avoided. We should not needlessly put a club In the hands of other nations with which to attack us, but we should remember that we hold a tremendously big one ourselves and that If it comes to an International pounding match on the tariff question the United States can give and take as hard pounding as any other nation in the world. If not a little harder. The first duty of Congress Is to enact a tariff for the benefit of the government and people of the United States. Only let Congress be sure it is right, then go ahead. If any other nation chooses to construe such a tariff as a blow at Its Interests and adopts a retaliatory policy let us show them commercial retaliation is a game at which two can play. If Europe can get along without our products the United States can a great deal bettor get along without the products of Uurope. ax i xi:PECTi:n ih:cmnk. The recent decline in the price of wheat 13 a puzzle even to those who are considered authorities on tho subject. They confess that they cannot understand it. A few months ago May wheat sold for 85 cents in Chicago, and the very general expectation was that it would go higher. Instead of holding its own wheat has been going down for several weeks, but last week it tumbled to 63 cents, or about the price of a year ago. But a year ago the supply In sight was 40,000.000 bushels in excess of the

wheat now in sight. The available sup-i plies in sight are not only small, but several countries which usually provide wheat for the European markets have none to sell. India, Australia and Argentina, just entering a crop year, have had disastrous crop failures which will prevent them from sending any considerable quantity of wheat to the markets. The Pacific coast supply is already exhausted. Winter wheat Is so scarce that It is worth from 10 to 20 cents a bushel more than the export price. Thus the importing countries have absolutely no source of supply except the accumulations of spring wheat in Chicago and other cities of the Northwest and Russia. There is not enough wheat available In the next four months to furnish Kngland and the continental importing countries with half their usual supplies. Thus all the statistics and information Indicate higher prices, and it may be added that the best posted men In tho business counted upon an advance over S3 cents. Tho explanations given for this puzzling situation of the wheat market do not seem conclusive. It is contended that Europeans have substituted our cheap corn for wheat on a large scale. The figures of the export of corn show a large increase over any previous year. It is claimed that European crops were larger than the estimates, causing a smaller demand. The consumption of wheat is slow, but, slow as It is, the world will bo down to the minimum before a new crop. It would be both interesting and instructive to know how far the very low price of corn, has affected the price of wheat. Tho slow consumption of wheat Indicates at more corn is being used as breadstuff than in ordinary years. Corn is now prepared for the market in so many forms that it is possible-; that' those who make estimates regarding the supply of wheat do not consider what a factor the corn foods are in the supply of breadstuffs, particu larly when wheat is scarce. It may be that the widening uso of corn preparations as breadstuffs may have the effect In future to keep wheat at a comparatively low price. The account of the vacation schools of Chicago, as given by Professor Waterman before the Pedagogic Society and published In the Journal yesterday. Is very interest ing, and leads the nonpedagogic person to wonder why, if its methods are so attractive to children and its teachings and influence so valuable, such methods cannot be adopted by the regular schools. If children can be given Instruction in vacation in a manner that makes them eager to attend and reluctant to leave, does it not show that the plan is, in some respects, at least, an improvement on the cut-and-dried sys tem In vogue the other nine months of ths year, and which many children find so irk some? The best educators, it is said, de sire to incorporate some of the features of the vacation work into the curriculum of the other schools, and they can take no better means of proving their value than by just such object lessons as those in Chi cago. Friends and acquaintances of the late Senator Voorhees, in commenting on his characteiistlcs, invariably speak of his lack of capacity for money making and money saving as a weakness, if not an actual fault, that he should have overcome. But Mr. Voorhees earned a sufficient income for himself and his family as long as he lived, and what good in life that he did not have would he have gained by saving? He was free-handed when he might have economized, and when he was old and ill his Iockets were empty, but what matter? Prjvidence stepped in and solved the prob lem that confronted him, as Providence has a way of doing in human emergencies, and a big bank account suddenly became of as little consequence as none. It is well to economize, no doubt, but the acquisition of money Is not one of tho chief virtues. Northern Indiana should really conduct itself in a more seemly manner and not have so much to say about tho air ship. The Presbyterian Assembly Is to meet up that way before long, and the region should bo on its best behavior. Governor Pingree visited Indianapolis yes terday and called on the tax commissioners Ho Is studying out the best way of taxing potato patcb.es now. HI IUIId.S IX tiii: A I II. Time In Short. Something," said the Cuban leader, "has got to bo did. and that pretty soon." "Why this haste?" asked the subordinate. "The baseball season in America opens in a few weeks." Two Advantage. " 'Tls letter," said the sentimental youn man, "to have loved and lost than not to have loved at all, or something of the sort." "Also." said the more elderly man, with the string around his forefinger, "it is cheaiK-r." Too .ew fiuiKled. "No." said the old man, as he limped into the office with one hand on his bacx and his hat in the other, "no, 1 ain't deaconin' at de chu'eh no mo. Whey dey axes a man who ben servin' de Lawd as many yeahs as I hub toe cyarry a cash registah w'en he takes up do collection, it time for me toe quit."

WILL ASSESS POLICIES

THK STATE TAX IK) A HI) TO STAND BY ITS Foiuinu Decision. Insurance Men Appeared Yeterdny A. J. IleverldeeVi Able Argument In nehnlf of the Policy Holder. The question of the assessment of paidup Insurance policies and policies with a cash surrender value was decided yesterday afternoon by the State Board of Tax Commissioners. The board agreed to stand by tho previous decision as to the taxation of such policies. The policy holders, through their attorneys, were given a hearing in the afternoon be fore the board in the rooms of the auditor of state. The room was crowded with representatives of various insurance companies, and people who, holding policies, were interested In the case. Terhaps the most distinguished auditor, as well as one of the most interested, was Governor Pingree, of Michigan. He had drifted in to see Governor Mount during the afternoon and was given a place of honor next to Indiana's executive, where he followed carefully the arguments given. The insurance men and policy holders were represented by Albert J. Reveridge, Edward O'Bryan of Chicago, attorney for the New York Life Insurance Company, ex-Attorney General Green Smith and John A.. Finch. Attorney General Ketcham made the opening remarks, stating the position of tne board and throwing open the case for argument. ' MR. BEVERIDGETS ARGUMENT. Mr. Smith made a few preliminary remarks and then Mr.- Beveridge made the principal argument, as follows: ) "Taxation is the highest power but one known to Kovernment. The tfreatest court In the world has said that the power to tax Involves tho power to destroy. Most revolutions have come from an improper exercise of this power. The people feared the unwarranted assertion, of. this power so much that they kept it as nearly as possible directly in their own hands. They were not content to permit the Legislature to pass laws on this, subject the same as on other subjects, where either house may originate a bill, but in their constitution the people said that such laws must originate exclusively in the popular branch of the Legislature the House of Representatives. "Therefore when executive officers, having in charge the e?xecutlon of such laws, propose to place a new and hitherto unheard-of burden upon a certain class of citizens, not by authority of any express statute, but by supposed authority, inferred from a general provision of a general statute, the greatest caution should be exercised. The executive taxing authorities ought not to step In where the Legislature has refused to tread. They ought not to extentl the tax laws by Implication so as to Impose new and unusual burdens In the absence of express authority so to do. "I say new and unusual burdens because the proposed ellrect .taxation of Insurance policy values in the manner proposed is absolutely unprecedented. It Is udmltted that there is no express provision of the statute authorizing such action; your board admits that this new authority, which it asserts rests entirely upon implication from the general provision of the statute, and yet this very law from which this board now infers this new and unprecedenteil power has been on the statute books of Indiana for years. Is it probable that all the able and vigilant officers of the past would not have discovered this - power, had it existed? liow happens it that-neither our present attorney general nor his predecessors, searching out the evaders of taxation as with a search light,' as was their duty, never found in their-.deep study and numberless readings of the law, the power which the board now asserts? Is it not strange that no officer who ever sat on this board during the last six years a period of abnormal activity in taxation ever Imagined that this board had a right to do what is now proposed? "The men I repre-sent are before this board in a most respectful spirit. They are not evaders of taxation. They are men of substance who bavo nevef evaded a duty to their, city,, Ci.,9r county.. "It is conceded that the. board's action is without example. 1 undertake to demonstrate not only that this action is without authority of any law now on the statute books, but that it is forbidden by the law now on the statute books. This board Is governed by the present statute and not by some statute which the board may think ought to be and which hereafter may be enacted by the only jiowr which has the right to lay new burdens uion the shoulders of the people, pamely, the Legislature of Indiana. 1; NOT IN THE TAX SCHEDULE. "The statute prescribed the form of the schedule submitted , .by.,, the assessor to every taxpayer. Acts?l5, Sec. 53, P. 23). This schedule enumerates the property the taxpayer must return. It descends Into minute particulars. But It does not mention insurance policy, values; and the present schedule Is not thes original schedule that the Legislature first prescribed it is an amended schedule. The Legislature has worked It over time, and again. And, although they inserted the minute- iteAns of dogs and hop poles, they did not insert the important item of policy values. Would the Legislature not have Inserted policy values If It had intended that policy values should be directly taxed, as is now proposed? .'i "This board tlalms the right to insert policy values under Section '2o, which provides that the board may prepare a "more complete and perfect schedule." and upon the assumption that this subject escaped the Legislature's attention when it prescribed the schedule set out in Section 3:5. But the Legislature did not overlook this fcubject. The law has at least two references to policies of Insurance, as I shall show under separate heads of this argument. : It must bo ; conceded that it the Legislature did not overlook this matter in prescribing the form of tax list, but. having It in mind, refused to insert it in the schedule, this board cannot insert it upon the ground that the Legislature overlooked It. "This board has no power to tax property located In another State. Even the Legislature lias no such power. Neither the value back of a paid-up ioliey nor the surrender value of a policy of a company of any other State.- is located in Indiana. The fund constituting those values is located in the form of cash at the home of the company, or in. the form of investments, wherever the Investment may e. And those funds are not brought Into Indiana by a policy any more than land in another State is brought into Indiana by a deed held by a citizen of Indiana. And those funds are taxed within the jurisdiction where they are located. In the case of home companies the funds constituting these paid-up and surrender values are taxed In a lump to the company. In the case of foreign companies the funds are not only taxed by the State where they are located, but they are out of the jurisdiction of Indiana they are beyond the limits of Indiana's authority. POLICY: VALUES NOT A DEBT. "You cannot cheapo this conclusion by calling the surrender value of a policy or the value of a, paid-up policy a 'claim, demand or other Indebtedness owing' to the policy holder. As long as a man keeps his policy the 'surrender value docs not exist. As long as a man keeps his policy he has nothing but a straight life insurance. The surrender value' is called, into life only by surrendering the policy; but when the policy Is surrendered Insurance ceases and the "surrender value' becomes cash in pocket and is taxenl as such. It is conceded that you do not wish to tax straight life insurance;-and yet as long, as a man keeps his policy that Is all he has, "A policy is merely a certificate entitling tho beneficiary or payee to participate in a certain fund under certain conditions. He has no right to or title in those funds unless those conditions are performed. One condition is the surrender of the policy: the other is the death of the assured. And so long as the policy Is held neither condition is performed and the right to participate in the fund is not called into being. "But even if these policy valnes were 'demands, claims or Indebtednesses owing to' the insured or beneficiary (which they are not) nevertheless the schedule and affidavit which every taxpayer must make, conclusively shows that Insurance policies or any value thereof are not to he taxed as now proposed. I use the word conclusively because it is the strongest word I can employ. "You have placed these policy values in the schedule under the head of credits due the person making- the return. You concede that if these policies are not credits they are nothing. If, then, they are credits and tho law meant that they should be taxed oh you projKMe to tax them, the law would have permitted the taxpayer to deduct from hi policy values all his Indebtedness on his policy values. But the law af

firmatively says that he shall not deduct 'bonds, notes or obligations of any kind given to any Insurance company on account of premium or policies;' and in the oath, prescribed by the Legislature, which every taxpayer must make when he hands his return to the assessor, the taxpayer is compelled to swear that he has not deducted from credits due him 'any bond, note or obligation of any kind given to any insurance company on account of premium or policies.' "Suppose I had given a company premium notes to the amount of $1.00u. Suppose the surrender value of my policies is II.O'jO. This board says that I shall be taxed on that surrender value, although the law forbids me to deduct the $1,000 premium notes due the company. Or suppose my policies have a surrender value of $3.(J and I borrow that amount on mv policies. This board says that although the law forbids me from deducting that indebtedness, as I may do with all other Indebtedness, yet I am to be taxed on a surrender value, every dollar of which I ewe. "No matter what 'bond, note or other obligation' I have given an 'insurance company on account of premium or policy; no matter whether it is a premium owed to the company or a loan made to me by the company, the law forbids me to credit myself with that indebtedness although I may credit myself with all other Indebtedness. And yet your board, which has no legislative power, but Is an executive body, proposes to tax a policy holder on his policy when he cannot deduct one cent of Indebtedness which he may owe on that lK)liey. "Thus it is clear that the law affimatlvely forbids the action you have taken. The law says: 'As policy values are not to be taxed to the policy holder, therefore he shall not have credit for his policy indebtedness. Thus it conclusively appears that the very action taken by the board is forbidden by the very statute by virtue of which this board exists, by which It is governed, and from which all its powers and duties are derived. PROPOSED TAXATION IMPOSSIBLE. "Why did the Legislature refuse to allow a policy holder to credit himself with policy or premium debts? Because the Legislature understood that the policy holder is not to be directly taxed on his policy values. Why is he not to be directly, taxed, as this board proposes, on his policy values? Because, first, such direct taxation is, as our law now stands, impossible; and, second, he is already indirectly, but none the less surely, taxed on every dollar of his policy values. "The law says that all property shall be appraised and taxed at 'its true cash value. hy which is meant the usual selllnr? price. Ifeing the price which could be obtained for said property at private sale.' But who can tell what the selling price of an insurance policy is? Hut the law goes further. It provides that every species of property taxed may. if necessary, be sold to make those taxes. Section lZi) and the preceding sections (command the treasurer to 'collect delinquent taxes at any time by levy and sale of personal property.' But an insurance policy cannot be sold in that way. The great majority oi policies are payable to wife, child or parent. They must agree before the policy can be transferred. And the purchaser must have an insurable interest, such as near relationship or creditorshlp. Our Supreme Court has condemned, in language as vigorous as It is wise, all speculative purchases of policies. Keeping all this in mind, suppe se that a man has a. $10,000 life insurance policy, fully paid up, and no other property whatever, real or personal, as is sometimes the case. You tax the value of that policy; the tax becomes delinquent; the treasurer attempts to sell that policy to make those taxes. Of courso the purchaser, if one can be found, purchases that policy as a speculation as a good investment the very thing no rflan can tlo, says the highest tribunal of this commonwealth. If you- could make such a sale as that you create an Inducement for the blackest of crimes; and that Is why the law declares that speculative assignments, purchases and transfers of policies are void, and that none but those having insurable interests may hold a policy on the life of another. Even if this fixed insur

mountable obstacle were not in the way, even if any speculator In human life could purchase policies at tax sales, the State could give no title, because the State could not compel the beneficiary to agree to the transfer. I tlo not say that a law could not be devised which would supply a method and machinery to secure this end; but I Insist positively that the present statute is not such a law; I assert positively that the Legislature has not yet created the necessary method and machinery to accomplish that end. WTJULD BE TRIPLE TAXATION. "The law forbids the direct taxation of policy values, as now proposed by this board, because every, mill ,of those values is already heavily taxed in another way. Section 67 of the laws of taxation provides that foreign insurance companies shall, twice each year, pay into the treasury $3 for every $100 dollars of premiums collected during the preceding six months 'less the losses actually paid within the State.' Who pays this extraordinary tax? The policy holder pays It just as surely as he pays the agent's commission, just as surely as he pays his premium. For a premium Is composed of three elements, the 'reservo element, the 'cost of insurance' ele ment and the 'loading' element. A certain I per cent, of all premiums Is made up of 'loading' that Is. of that policy's proportion of all expenses such as taxes, commissions, salaries, rents, etc. Now the surrender values and paid-up values which you propose to tax are made up of those premiums exclusively. Every dollar of those values has been made up out of the premiums paid by the insured and the earnings thereon. But under Section 67 those premiums have already been taxed 3 per cent. It, of course, follows that the surrender and paid-vrp 'values,' w hich are composed of those premiums, have already been taxed; since to tax the parts of which the fund Is composed is to tax the fund itself. "Is not this double taxation? I assert that it Is even worse than double taxation. I assert that it is triple taxation. Because the fund constituting the policy values, which you now propose to tax. is already taxed In the Jurisdiction In which it Is located; in addition to this the premums composing these values and makng up that fund are taxed In the State of Indiana 3 per cent, before they go out of the State; and now it Is proposed to tax those values a 'third time. So 'that all we are here asking this board to rescind is a proposition to tax the same thing three times. It ought not to require any argument to Induce the board to rescind such an action as that. "The auditor's report for 1S96 shows that the tax paid by the policy holders of life insurance policies undejr Section 67 amounts to the vast sum of $87,093.07. Yet. although a sum approximating this, has been paid every year for years by the .policy holders of Indiana, and. although the taxes laid In other States upon the funds which constitute their policy values is charged directly to the policy holder by the company, nevertheless, this ooard now proposes to tax them a third time. Do you, gentlemen? I refuse to believe that your attention had been called to the features of the law above discussed, when you resolved to lay upon a class of citizens a new, unusual, unprecedented and unheard-of burden, not by authority of any express statute, but by inference purely, and an Inference which has escaped the 'keen vision of every former official the State ever had. i CONSTRUCTION OF TAX LAWS. "If you have a doubt as to the validity of your action it is your sworn duty to resolve that doubt in favor of the citizen. For the tax laws of Indiana are highly penal laws. If a person refuses to answer any question on the schedule or any Interrogatory asked him by the assessor, he may be fined and imprisoned. (Section 57, Laws of Taxation.) Other heavy penalties are prescribed throughout the law. Every lawyer, every informed citizen, knows that penal statutes must be strictly construed in favor of the person against whom they operate. So that If this board has even a doubt as to the existence of the power which it has inferred from general provisions In the face? of counter provisions, it is the board's duty to rescind its action and await the action of the Legislature." Mr. O'Bryan then spoke shortly, emphasizing some of the ioints made by Mr. Beveridge. Both he and Mr. Beveridge were frequently Interrupted by Governor Mount and Colonel Walker with questions tending to show that their opinion had not yet been shaken. One question asked by Governor Mount was as to whether or not insurance pclicies have value. If they have value the Governor could not see why they should not be taxed. Mr. Smith took it upon himself to answer this question. He held that Insurance policies have a value just as a man's legs and arms have a value. But a man cannot be taxed on his legs and arms. If he loses them In an accident he can go into court and collect their value. Then their value, whatever it is held to be. Is taxable as money In hand or In bank. Just so. Mr. Smith thought, the nature of policies. Their value Is prospective and they have no tangible value until paid. Mr. Smith went further than his colleague, stating that If insurance policies are taxable property, then in order to assess them no new statute or decision is needed. Mr. Beveridge had held that policies could not te taxed under the present law. Mr. Smith made his argument hang on the question of the nature of insurance policies as property. Mr. Finch closed the case with r few general remarks and gave opportunity for the

board to ask questions. None was asked and the hearing was adjourned after Attorney General Ketcham had signified that he had nothing to say for the board. BOARD IN SECRET SESSION. Immediately at the close of the hearing the Tax Board went into secret session. What their decision would be was obvious to those who had observed their bearing during the arguments. Their session lasted about fifteen minutes. At its close Governor Mount announced that the board had agreed to stand by Its previous action as to the assessment of paid-up and cash surrender policies, "notwithstanding the arguments of the learned gentlemen to the contrary." He said: "We believe that paid-up and cash surrender policies have a property value and. If so. they should be taxed. We think that every holder of a policy of this kind values it at some figure. This figure we rely upon his honesty to put down on his assessment list to be taxed with his other belongings. Some mode of satisfactorily ascertaining this value will, of course, have to be arrived at and we expect to aid the people in this respect. We hope by conference and by correspondence with insurance men to arrive at some satisfactory system. There is a growing demand that all forms of property shall be taxed and that there shall be no evasions. We think this plan of assessing Insurance policies a compliance with this demand.' TO MAKi: A TEST CASE.

Inaurance Compnnlon XVIII Seek a Speedy Sett lemenl. In speaking of some of the difficulties the Tax Board will have to meet, John A. Finch last night said: "There is a great misconception on. the part of some memlters of the board as to the value of a paid-up policy. As a .matter of fact, very few paidup policies pay any dividends. They are Issued as nonparticipating policies in lieu of whole life poHcies. and where a dividend Is paid the sum Is 'very small, never as much as 1 per cent, on the face of the policy. It seems to be in the minds of some of the members of the board that a dividend is paid on the face of the policy of 2 or 3 per cent. In fact, the dividend, whatever it may be. Is on the reserve value of the policy, which Is a very much smaller sum than the face of the policy. Then, it seems to be thought that the holder of a paid-up policy or the person on whose life It is written has control of the policy. This Is only trtie where the policy is payable to his estate, and very few policies are so written. Nearlv all life insurance policies are taken for the benefit of a wife or wife and children, or for some dependent member of the family. A policy, when so issued, is the absolute property of the beneficiary, as has been freejuently decided by our Supreme Court. The husband in such case can no more surrender the policy or receive any benefit from it than he can dispose of any other property belonging to his wife and children. Whatever tax, then, is to be paid on a life insurance policy should be paid by the wife and children. The husband could no more make return of such policy In his list of properties than he could report any other property belonging to his wife and children. If any life Insurance policies are taxable all must be taxable, whether they are paid-up policies, term policies, limited payment policies or endowment policies. Our law governing Insurance companies has no standard for the valuation of policies as other States have. There is, then, no way of arriving at the value of a policy. Each man can 4lx whatever value he chooses. The fact that no other State In the Union has ever attempted to tax life insurance policies is in itself strong argument against such tax. even if it were practicable. An effort will be made to make an agreed case for a speedy decision. The attorneys interested will confer with the attorney general and see if such a case cannot be immediately instituted, it would probablv take several cases, as there are many different forms of policies, unless some one can be found who has a policy on each plan supposed to be subject to taxation.". After Mr. Beveridge's argument in the case yesterday, he was retained by the insurance companies to further appear in behalf of the companies. MsaSSSSSMSSMSHBMBSSSSSMBBSBHSI THE GOVERNOR'S VIEWS. Ills Statement nn to the Action of the Tax Hoard. Governor Mount, in speaking of the action of the board, expressed himself as follows: "The tax board has decided to- adhere to. its former proposition as to questions seven and eight in the schedule. Question seven asks the number and value of paidup life insurance policies. The board is inclined tosbelieve that there is a value attached to such policies. We believe that all values represent property and that the Constitution provides that all kinds of property shall be taxed. In question seven we leave it to the policy holders to declde, on their own conscience, the actual value. We are inclined to believe that paidup policies of ten. twenty or thirty years running, as the case may be, must of necessity represent some value. "In this State there is $113,000,000 of life insurance. That must represent some value, whether ten, twenty or thirty millions of dollars. I am not prepared to say. But there must be a value. If it has a value, then we think It should be listed for taxation. If it be true after Indiana has paid out millions and millions lor life insurance, that there is no value attached to the policies, then; as good business men. it's about time the holders of them stopped paying premiums. "We are informed that some of these policies represent $100,(X0 paid up. This must have some value. We believe if a man has put in enough money to give him $100.000 paid up he has something of value which ought to be taxed. As to how this value is to be determined, as I said before, that Is not for me to say. We have had considerable correspondence with Insurance companies on the subject and will doubtless ha more of it. Insurance agents claim that after so much money has been paid on an Insurance policy the policy has a wish Surrender value. What 1 can't understand Is, why a tax should not be. paid on that value. "The tax board has had but one motive in mind in this matter. That is that every kind of property shall be taxed according to the Constitution. I believe that a revolution is at hand and the time has come when tne people are going to Hnand that all kinds of property, whethet I estate, bonds, mortgages or insuran olicies, shall be taxed, justly and in ." A FIGHT Af OKLAHOMA. , - CIiarleK Thompson Charged with FlrIngT Elgrbt Shot at J. II. Hon. Charles Thompson, a bartender employed by Herman Goetz at Haughville, was arrested yesterday by detectives on a charge of shooting with intent to kill. The police claim that he attempted to shoot J. 11. Ross. Yesterday morning the police received word from several sources that a murder had been committed. The reports located the deed "across the river" and the detectives were sent out to Investigate. All the suburbs across the river were visited without success until late yesterday afternoon Detectives Kinney and Thornton .went out to the roadhouse known as Oklahoma, kept by John Gazaway and J. H. or Carl Ross. There they were informed that a fight had occurred the night before and that Thompson had fired eight shots at Ross. Thompson denies all knowledge of the affair. Ho says he went out to the resort Sunday evening and found a number of other people there. He remained about the place until alout midnight and then drove to Haughville. He says he knows nothing about a light and did not lire any shots nor see or hear any shots fired. He. was released on bond last night, with his employer as surety. INDIANA'S TAX LAW. Governor Piiittree, of Michigan, Here for Pointers. Governor Pingree, Michigan's executive and Detroit's ex-m.ior, was In the city yesterday for a few hours. He stopped ove r on his way to Detroit from Cincinnati to meet E. Wcselius, Michigan's railroad commissioner, who came down from Chicago yesterday morning. Governor Pingree called on Governor Mount at the Statehouse aleut 2 o'chxk and found him busy with the hearing of the policy holders before the State Tax Board. The visitor was made welcome, however, and put in his time listening to the arguments of the attorneys. Governor Pingree said his visit here was significant of nothing. He merely stopped to meet Commissioner Wisellus, who has been getting soma information with regard to the system of taxation in Indiana. "You know' Vaid he. "we expct to make some Improvements in our taxation laws In Michigan, and we wanted to know what there Is of merit In the Indiana system." Both Governor lingree and Commissioner Weeliu left at 3 o'clock yesterday afternoon for Detroit.

THE MUSIC FOR EASTER

PROGRAMME! ARII AXCJED Till S FA It FOR THE LOCAL CHOIRS. launl Elaborate Preparation Four rroernmmri to He Given Durlus the Day at St. Pnul's. The churches of the city arc making their usual elaborate arrangements for Easter music next Sunday. The following are among the programmes already completed: Roberts Park M. E. Church Evening, 7:30 o'clock. Organ voluntary Mrs. W. B. Judah Hymn No. 230 "The Head that Once was Crowned with Thorns." Baritone solo "King Ever Glorious." from Crucifixion Staincr Mr. Daniel Davis, of Terrc Haute. Anthem "He Is Risen" Recs Choir. Duet. Murilla (tlute solo .Terschak Mr. Fred Opperman. Duet-"0 Salutarls Hostia" J. Wiegand Miss Maud Langstaff. soprano; Mr. O. T. Hehymer, ba.so. Hymn No. 21$ "Hail, Thou Once Despised Jesus." Alto solo "Through Teace to LJcht".. Dudley Luck Mrs. Sinnex. Anthem "Hosanna" Granler Quartet "O Thou Whose Tender Mercy" Basfford Mesdames Chldestrr and Sinnex. Messrs. Daughtcrty and Allen. Solo "He is Risen" Mrs. Chidester. soprano; Wilbur RogKer. violin. Anthem "The Resurrection" Schelly Mrs. Chidester. soprano, and choir. Baritone solo Come Unto Me" Coenan Mr. Daniel Davis (by request.) Hymn-"A11 Hail the Power of Jesus' Name!" Mr. Emll Wulschner is the director. Central Christian Church quartet-Mrs, Carolyn Winter Goetz. soprano; Mr. Huri McGibeny. tenor; Mrs. Hewitt Rowland, contralto; Mr. Byron Ovtrstrtet. ' bas5o; Misst Minnie Diener. organ: Mis C. O. 1:kKett, harp, and Mr. Hugh McOibcny. violin. Organ solo S lee ted "Kistn To-day''-Quartet Havens "Crossing the IJa-r" quartet Schnetker Harp solo Selected "O Divine Redeemer" contralto solo violin, harp and organ acconipant- - -ment Gounod "As It Began to Dawn"-iuartet Buck "Andante for G String violin solo Bach "The Inner Voice" quartet Bartlett "The Easter Sunshine Breaks Again" Soprano solo Meltzke riolln, harp and organ accompaniment. "Magdalene"--quartet Warren "Hosanna to Our Savior, King" quartet Havens Friends Church. Anthem "King of Kings" Simper Mrs. Mary Jeffery Christian, Mr. Aslvr Evans and Choir. Solo Selected Mrs. N. B. Wllllts. Solo "Glory to Thee. My God, This Night" Gounod Mr. E. Clifford Bcrrett. Easter Cantata "Fill the Fount with Roses" Warrerj Mrs. Christian. Miss Mary E. Morris, Miss Adele Ferree, Mr. Charles HolUngsworth and Mr. Wm. C. Smock. Flute obligato Miss Jessie Lewis Solo "The Resurrectlon,f. Shelley , miss joceiyn is. Lewis. Solo .' Selected Miss Mary E. Lewis. Quartet "Christ Arose" Lowry Messrs. Hollingsworth. Hadley, Smock and Pennington. Solo "Easter Morn" Neldllnger Mrs. Mary Jeffery Christian. Anthem "Crown Him Everlasting King" Warren Mrs. Christian. Miss Morris, Mr. Hollingsworth, Mr. Barrett and Choir. St. Paul's Episcopal Church will have extensive services, four musical programmes to be given during thft day. At 6 o'clock la. the morning the following is to be rendered: Solo "I Know that My Redeemer Liveth" Handel Kyrle, Gloria Tibl and Gratias Iloenig Carol "Lilies of Easter" Fillmore Offertory "Easter Morning." Anthem "Awake! Thou That Sleepest" Holden Sanctus . Cooper Benedlctus qui venit -...Jorley Carol "Slowly the Darkness is Breaking" Fillmora Gloria in Excelsis ...Old Chant Nunc Dimittts Honeig Carol "Hail, Mighty Victor" Fillmorej At 10:43 a. m. Processional "Breathe Soft, Breathe Low"... . Fillmore Anthem "Christ Our Passover"....ChappelGloria Patrl Hoenlg Te Deum Llod Benedlctus Dank Anthenv "They Have Taken Away My Lord" Stainer Kyrle Gounod ' Gloria Tibl Gounod Gratias Gounod Hymn "Jesus Christ Is Risen To-day." Orfertory, Solo "Christ Is Risen Today" i Rischoff Anthem "Hallelujah, Christ Is IUen"...'.v Simper Sanctus Gounod Benedlctus qui venit Gounod Agnus pel .-. Gounod Gloria urExcelsi3 Gounod Nunc Dlmlttis Hoenlg Recessional "Hark! The Angels Sweetly Slng" Schilling At 3:30 p. m.: Processional "Breathe Soft, Breathe Low" Fillmore Carol "From Their Icy Felters". Fillmore Carol "The Easter Light Adorns the Hills" Schilling Carol "Lilies of Easter".... Fillmora Carol "Hark! The Angles Sweetly Say" Schilling Carol "The Heavens Are Resounding' Schilling Carol "Easter Is the Time We Ive" Schilling Recession "Hall, Mighty Vic:or"..Flllmora At 7:13 p. in.: Processional "Hark! vThe Angels Swee tly Say" Schilling "Gloria Patrl" .. Iloenl? "Magnificat' Garrett "Nunc Dimlttls" Garrett Anthem. Hymn-"AUeluia, The Strife Is O'er." Orfertory Solo. Anthem. Hymn "Jesus Lives." Recessional "All Hall the Power of Jesus Name." Meridian-street M. E. Church Max Lcckner. musical director; Charles Hansen, organist. Morning: Full Anthem "Awake Up. My Glory" F. C. Maker Soprano Solo "Easter Morn" t W. H. Neldllnger Mrs. Carroll B. Carr. Quartet of Women's Volces-"Christ Is Risen" O. H. Evans Mrs. Carr, Miss Mac Elvey. Mrs. McGibeny and Miss Morris. Anthem "Behold Now, Fear Ye Not" . W Cs 1 1 c h x s Solo Mrs. Carr. And appropriate hymns. Evening: Anthem "Life's Resurrection Hour" W. H. Neldllnger Solo Miss Lottie Akass. Quartet "In Thee, O Lord" Berthold Tours Mrs. Carr, Miss Aknss. Mr. Selvage and Mr. Tyler. Anthem "As It Began to Dawn".... C. Whitney Combs So'os Mr. Clifford Tyler and Mrs. Carr. Trio Mrs. Carr, Miss Morris and Miss Spencr. Full Anthem "He Is Risen". .G. T. Ifamer i NOT GUILTY OF CONTEMPT. Grand Jury, ' However, Will Invent! Kate Webb McXall'i Conduct. TOPEKA, Kan.. April 12. Webb McNall. state insurance commissioner, secured tha first legal victory to-day In his battle with the three lig Eastern life insurance companies, to which he icfused license on the alleged ground that they would not pay the famous Hlllmon claims. Judge Foster, of the United States Circuit Court, holds that McNall's action Is not punishable by penalty for contempt, and dii-missed the case brought by the insurance companies. The court, however, immediately instructed the grand jury to inquire Into Mi Nail's action, and if they found intimidation cr anything to obstruct Justice to the companies, to bring an Indictment against McNall. The court held that the commissioner's action was not justified by law or just ire and that McNall bad assumed authority In attempting to determine eiuestjons involved in the Hillmon cases. Latter Day Saint. LOMANI, la.. April 12. At to-day's session of the confer, tic of letter Day Saints Alexander H. Smith and F. L. Kelly were called to the councUondiip of the first presidency. W. H. KeUey was recommended to till the first vacancy In the eiuorum of the twelve, by the withdrawal of Alexander Smith.