Richmond Palladium (Daily), Volume 34, Number 235, 2 July 1909 — Page 1

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.. .. BIGMMOHB PAIXABIUM AND SUN-TELEGRAM. VOL. XXXIV. NO. 235. RICHMOND, INI., FRIDAY EVENING, JULY 2, 1909. SINGLE : COPY, 3 CENTO.

SHIVELY MAKES ATTACK 0 1 TAX FBOyjffl POIHT junior Indiana Senator Questions the Constitutionality i

Of Levy, Concerning Ind iana Concerns. SHE DRAWS AN ANSWER FROM SENATOR ROOT Ishows That the Decision in The Pollock Case Covers The Same. Point Regarding Tax on Rentals. 1 Washington, July 2. IB the senate lyesterday Senator Sbiver of Indiana created something of a lensation by 'challenging the constitutionality of tbe proposed tax onthe net earnings Of corporations. He raised a new point, basing his contention of unconstitutionality on the appliSation of the tax to a form of corporation organized In Indiana for the holding of real estate and the collection of rents therefrom. s I ' The supreme court he! in the income tax cases that a federal tax on rental income is unconstitutional. Senator Shively showed that tie proposed tax on corporations, appliel to Indiana real estate corporations, would levy a tax on rental income, aad he held itbat under the clear and jmequivocal 'language of the supreme court In the income tax (Pollock) case, the corporation tax also would be Junconstltutlonal. w 'I V,1 : v 'V ;' Senator ; Shively's contention was brought , out In a spirited colloquy which he had with Senator JOlihu Root of New . York, whose legal talent was employed in drafting the corporation tax. The coloquy follows: f .MiCShively: "Mr. President, the eua tor from New York Mr. Root) will permit me to state a cae to tnustrate and sharpen the question I have 'In mind. We have in Indiana a stajtute authorizing the creation of a cori poration to purchase, own.; hold, Improve, rent, sell and otherwise deal in real estate. Does the senator understand that the corporation tax now proposed would apply to the profits of that corporation?' Vs Mr. Root: "Mr. President, tbe senator appears to address SJs Question to me and I will assume to answer it. I understand that the proposed tax would apply to such a corporation." Cites Pollock Decision. Mr. Shively: "That is to say. here is a corporation which owns sixty pieces of improved real estate and collects rents from them. Those rents, " of course, make net profits or income accruing to the corporation. The sen- ; ator says those profits would be subject to. the proposed tax. The court -expressly held in the Pollock income j case that a tax on rents or income from' real estate is a direct tax and unconstitutional. The profits of this corporation so derived would certain- " ly not be subject to a tax under the rule In the Pollock case, would they?" Mr. Root: "The senator, Mr. President, uses words colloquially when he Bald 'the profits would be subject to a tax.' Speaking accurately, it is not the profits that would be subject to the tax, but the privilege or facility of ' transacting the business through corporate form. It matters not from what source may come the Income which is Belied upon by the law as a measure for the value o! the facility or privilege which Is taxed. That I understand to be the very; question which was decided by the supreme court in the Spreckles case referred to by the senator from Idaho a few months ago. In that case the company claimed that certain rentals received by it from the use of a wharf were not to be regarded as liable to be included in the measurement of the tax which was imposed, because they said 'this is income from real estate and under the Income tax decision it can not be subjected to such tax.' fThe court said: 'No; you got this money in the course of your business, the facility or privilege of doing business is what is taxed, nrd no matter wtere you got the money the income is" adopted as the measure of the tax. f Tax Same in Substance. Mr. Shively: "Then, to speak accurately, the tax is exactly the same in substance and result in both cases and only the peculiar language of the statute describing it differentiates this amendment and the Spreckles case from the Pollock case?" Mr. Root: "Precisely." . . In further explanation of his views - Senator Shively made the following statement: "The supreme court held In the Pollock case that a tax on incomes from real estate under the act of 1894 was unconstitutional. The proposed tax which it Is held will ; apply to rents from real estate is precisely the same In substance and result. .Neither is apportioned. To give a thing a dif- : ferent name does not make it a different thing. To call It a special excise tax with respect to carrying on or doing business' may bring it within the rule in the Spreckles ease, but

Mrs. Woodill And

S J , m tarltts Sr m ft I If , $ J 1 tJ eJBZ SI 1 8 w

THE PICTURE AT THE TOP IS T. WOMAN MoRDERKD AT ST. MICH A OF ROBERT EASTMAN, WHO MURD acter of the tax. What is the difference between a tax of 2 per cent on the rents of real estate and a tax on the privilege of doing business measured by 2 per cent on the rents from real estate? The same subject matter is reached and the same amount paid. Of course, the court distinguished the Spreckles, but the fact is recalled that the opinion in the Spreckles case was written by a judge who strongly dissented in the Pollock case." MINERS BENEFITTED Harrisburg, Pa., July 2. The ten per cent in wages of seven thousand employes of the Pennsylvania Steel Co. went into effect July 1 and today the Harrisburg Pipe & Pipe Bending "Works also granted their two hundred employes an increase of a like amount. Oil A LONG FLIGHT Louisville, July 2. The balloon, "Hoosier" which left Dayton last night, crossed the Ohio river at ten o'clock, dropping much ballast. Apparently it will soon be obliged to land.

Four Hundred People Attend: A Delightful Enti

Four hundred people comfortably seated on the beautiful lawn at Reeveston, a big, languid moon, high in the sky, peeping down upon them and shedding a soft glow- on a natural stage, which had for "flies" and "drops" a semi-circle of dark forest trees, thoroughly enjoyed two productions rendered by the Ben Green players, last evening. The evening was Idelightful and bright stars dispelled all fears the promoters of the affair might of had that the entertainment wouM be marred by rain. . . The two productions were given for the benefit of the Associated charities. "Wtiile the crowd wms not as large as anticipated it is expected the organization will realize a cea. sum. The first play was The Daughter of

"Bob" Eastman

HAT OF MRS. EDITH WOODI1J THE ELS, MD. BELOW IS THE PICTURE BRED MRS. WOODILL. TBAIIJ WRECK TODAY 5 V 2.Port Jervis, N. Y., July Erie freight No. 75 was wree Guymard, eight miles east oJt' at 5:30 this morning, by the jumping the track. The tar five cars were hurled downj foot embankment on the Eric Jersey road. Engineer J.'j and head brakeman Smith3; iously scalded and are at tif vis hospital. Fireman Bui' killed and was buried benf gine, his body being recovf later by wreckers. CRUSHED TO; J New York, July 2.the Pennsylvania railr" 33rd street and Siar Lugi Spactano, a It to death. He was fcr of rock and cartii r fellow workmen ret X at Jon, i3ay, Jlied j mos Jl'when lent was a beautiful t the principals t their parts. . Before staging comedy, "Create Caroline FouC. daughter of Mrl f ley Foulke, intj feet was weird t ly and grace' Foulke was roC "In Creatur Foulke played' maiden who wf daclous and aC tug to kiss evt the stage. TbV played by tha' Ben Greet, wt. of the moat r land all of perfect In delightful Jse," Miss TOmplIshed Ulam Dudjice. Its ef-fartistical-fed. Miss Use" Miss I a bashful flnto an auJture, wantAppeared on i witch was f comedians, Jt doubt one V artlsta the it

CAMBRIDGE LODGE

ELECT OFFICERS Claude Kitterman Named as Chancellor Commander. Cambridge City. Ind., July 2. Officers elected at the meeting of the Cambridge City Lodge, Knights of Pythias, for the ensuing six months are as follows: Claude Kitterman, chancellor commander; Clyde Dally, vice chancellor; William Woodward, prelate;, Oscar Cooley, master of work; Albert Weed, master-at-arms; Frank McDanlel,- inner guard; : Clifford Oldham, outer guard." . Ollt MORE CHINK DIES A VIOLENT DEATH Hi GOTHAM Another Victim Added to the Elsie Sigel Murder Mystery : :ond One Killed This Week. FIRST THOUGHT WAS BODY OF LEON LING Corpse Was Found in the Hud son River and the Victim Had Been Dead, Thought, Ten Days. It Is BULLETIN. New York, July 2. The coroner and a pnysician, alter noiaing autopsy on the body of the supposed chinaman found in the Hudson river last night. announced that the victim is a white boy about sixteen years old and posi tively not a chinaman. New York. .Tnlv 2. Another China man assassinated - was the record to day of the Elsie Sigel trunk mystery He is the second that has been- killed this week. The other victim was Ung Yow, who was beaten" and strangled to death in his laundry at 124 Stanton street. The body of the latest victim in the Sigel mystery was found in the Hud son River above Kings Bridge. It was at first reported that he was Leon Ling, who is being sought by the po lice as the slayer of Elsie Sigel. Per sons who knew Ling declared, after looking at the body that it was not he. Carey's Opinion. Captain Carey of the homicide bureau does not believe it probable that the body is that of Ling. It had been in the water about ten days when It was found. Ling is reported to have be-een a few days ago. " 'Vdlng of the second Chinese ythe Sigel case deepens the t Tne police are or tne opln t this man, as well as Ung , jv- killed because he knew pithing about the tragedy and it ,jj feared they would turn informers L, "CHINKS LOOK ALIKE" : r!New York, July 2. The identity of a kinsman whose body was found in he Hudson river last night is still in -definite. Chief of Detectives McCaf Jerty declares it is not Leon Ling, but thinks it is a man named "LI" who t disappeared soon after the Sigel tragay. aawaras oyrnen,. oi w esi jtooin - W M - M A J A. street, a former friend of Leon's, posi tively identified the , body as that of Leon when viewed at the morgue this morning. Several others recognized a strong resemblance, but apparently "all chinks look alike" to many Americans. riDIAII MURDERER HEMAKIIIIG COOL Arraigned in London Today on Charge of Committing Double Crime. ALL ENGLAND IS SHOCKED SLAYER ATTENDS A RECEPTION LAST EVENING AND SHOT DOWN ENGLISHMAN AND A FELLOW COUNTRYMAN. London, July 2- Madar Lai Dhingra the young Indian student "who shot and killed Sir Kurgon Wyllie and Dr. Calas Lalcaca, of Shanghai, at the Imperial institute last night, was arraigned "today and held - for murder. His demeanor was cool and the police find him almost . as puzzling as the doable crime.: It required -some time to learn the Identity of the Darwin He maintained - as obstinate silence and it was onljr after a oacft its foand

PRISON TERM IS

FOR SUGAR TRUST HIGH OFFICIALS t Is Possible for the Court to Impose Fine of $70,000 and 14 Years Imprisonment on Each of Them. RESTRAINT OF TRADE HELD A MISDEMEANOR There Are Fourteen Counts in Indictment, Each Providing $5,000 Fine and One Year Imprisonment. . New York. July 2. The six direc tors of the American Sugar Refining company, commonly known as the Sugar Trust, and two other men, indict ed by the U. S. grand jury for violation of the criminal clause of the Sherman anti-trust law, today face a fine of $70,000 and fourteen years in jail. Conspiracy in restraint of trade. the charge against the defendants, Is misdemeanor under the federal sta tutes. There are fourteen counts in the indictment, the maximum punishment for each being a fine of $5,000 and one year in prison.- , Who the Men Are. The men indicted are Washington. B. Thomas who succeeded the late Henry O. Havemeyer as president of the trust. For years previously he had been a director of the company and influential in Its affairs. Mr. Thomas is a New Englander by birth and still resides In Boston. Arthur B. Donner. who was treasur er of the trust many years under the Havemeyer administration, and re cently was made vice president. He is regarded as one of the most expert sugar men in the world. His residence is at Rive, N. Y. ; A Shrewd Manager. Charles H. Senff. who has been a director of the corporation many years and is regarded as one of the shrewd est managers. He devotes himself almost exclusively to the company's af fairs. ' John Mayer, who is a capitalist of large wealth resides in Morristown, N. J.,' and when not in Europe goes to his office at Sugar Trust headquar ters nearly every day. George H. Frazier, whose business interests are more varied than those of his fellow directors, is a banker at 59 Wall street. . Eighty Years Old. John E. Parsons, who is now eighty years old, has been chief counsel for the sugar trust since its organization He is said to have received a cash fee of $200,000 for framing its article of incorporation. Mr. Parsons has been for forty years among the most prominent laymen of the Presbyterian church in this country. He Is now one of the pillars of the Brick church in Fifth avenue. Gustav ..Kissel, one of the best known brokers in Wall street, numbers' the Vanderbilts among his cus tomers and intimate friends. Thomas B. Harned, a Philadelphia lawyer of high standing and extensive practice. Wall Street Broker, Kissel is the Wall street broker, who acting as the secret agent of the trust, made fie loan of $1,250,000 to Adoltfh Sega of Philadelphia In 1903, by which the trust get control of one of its principal competitors, the Pennsylvania Refining company, and pre vented that plant from, being operated Harned was Segal's personal counsel in the negotiations with Kissel for the loan. ' J. Lawrence Aspinwall. foreman of the grand jury, reported the presertt ments to Judge Hand In the criminal division of the U. S. court. The only one of the defendants present was Kissel. Judge Hand instructed the counsel of the corporation and the indicted individuals to have their clients appear before him at 10:30 o'clock next Tuesday morning. The defendants, It is said, will claim their right to reserve their plea for twenty days. Then they will appear again before Judge Hand and a time for the trial will be agreed upon, prob ably m November or December. gra that ft was learned who he really is. The crime was consummated In the presence of more than a' thousand people. The musical part of the program at the Institute had just been concluded when the young Indian stu dent stepped over the "Wyllie and af ter talking to. him for a moment drew a revolver and fired four shots into his brain. The bullet which silled Dr. Lalcaca was an accidental --shot. Dhingra attesfted suicide -but had explod ed all X" -nridges. Ladr' -after the 'shooting, stood ! Vdy -Jul her husband not rf Jar. When she recog nizee V she-felr u a swoon and ,Kexo Inly from the sho im laid, faaar Isaportanf .. rpoatttoaattn Ia41a and J that-the murderer had neranee.

i days peadlas

A CHURCH PICIIIC

HELD Oil St. Andrew's Congregation Plans a Good Time. A real old fashioned church picnic will be held by the congregation of St. Andrew's church at Beallview, Mon day. Arrangements for the affair have been completed and it is expect ed that several hundred persons will take part Diversions ' of all sorts have been planned. GEMOT LESSEE MAKES A PROMISE FOR GOOD SEASOII New York Theatrical Magnate Arrives in the City and Makes Inspection of His Local House. HE INTENDS TO BOOK BEST PRODUCTIONS States That Maude Adams And Ethel Barrymore Are To Come Plans to Make Several Changes. Announcement was made this morn ing by Harry G. Sommers of New York, lessee of the Gennett theater, that the theater would be improved during the summer in anticipation of making it one of the leading opera houses on his circuit. He also stated that instead of big productions only making one night stands here, he in tended to hook several engagements for two and three night stands, and. in some instances, for an entire week. Judging from a few of the produc tions he stated he had booked for this city. Richmond Is really to be on the theatrical map. Among those named are, "Golden Girl" now playing in Chicago; "Stubborn Cinderella"; "Candy Shop." which is now playing in the Studebaker theater in Chicago; Mrs. Flske, who has made such a hit in Salvation-Nell"; Belasco's production of the "Golden West"; George Cohan In "Yankee Prince" and "The Merry Widow." Maude Adams Coming. Mr. Sommers also stated that a large number of Belasco's plays and FIske's productions would he staged in the lo cal theater during the coming season. Maude Adams and Bthel Barrymore, probably the most noted actresses In America today, are to appear in this city, according to Mr. Sommers. The theater wi'l be popularized, so to speak. While be would not state that such was his purpose, yet it ap peared from what he said that ex pense would not be spared in order to accomplish the purpose. ' Change Contemplated. There will be several changes made in the theatre. Probably the most 1m portant to the public. Is that the stage will be lighted better than heretofore. Mr. Sommers and 8. W. Pickering of Marion, who accompanied him to the city, were inspecting the lighting. sys tem this morning. Afterwards, Mr. Sommers anounced that the stage wiring would be placed in conduits and the lights better arranged. Another Important change as far as the public is concerned is the promise of a new curtain. Probably the most radical changes will be made in the dressing rooms. These will be furnished as are those of the metropolitan theaters, aad will not be subjected to the scorn of the stars. It Is. the intention of the management to have the improvements completed by September 1, or thereabouts. The season will open about Septem ber 15. Immediately after making a close scrutiny of the theater, Mr. Sommers and Mr. Pickering left to view other houses In Mr. Sommers' syndicate. Mr. Sommers wfil return to New York about the last of next week. RECEIVE IIICREASE Pa., July 2. The tea per Cambria Stssjl .Company, affecting about 1MXX man, went into effect y terday. noScial to authority for the statement that -.the payrolls will thus be Increased rr -THE UCCAL nEC'JLT. Moultrie. GV July X- A ned negro was found

under the bed

la ft white wet

PUMPIIIG STATIOH

LOCATION 10 THE CITY SUGGESTED Chief Engineer Gluys of Mu nicipal Plant States This Improvement Could Be Made at the Plant, s'0INTS OUT WHERE , COULD PLACE MAINS These Could Be Established On Main Street, North E or F Streets, and in Factory District. What he believes would be an eco nomical and practical way to solve the need for greater water pressure In the mains of this city Is suggested by Howard Gluys, chief engineer at the municipal light plant Gluys advocates . the installation of a pumping station at the light plant and the laying of new mains only along Main street. North E or F streets and through the factory district. He would hay branches to reach Isolated factories or buildings needing more protection. Wont Raise Pressure. It is not believed that the installa tion of another main from Its pumping station by the waterworks company would raise the pressure more than 60 or 60 pounds. Gtuys would have ft steam and electrical pomp Installed, which could force ft pressure of 300 pounds through the mains. He would use river water in the pipes and have a connection between the pipes which carry the company water and those whlen carry the fire water. The com-; panf s water would be kept under the ' normal pressure in the fire mains, but there would be no war for the water to pas from the fire mains back. He would have In use check valves, which - would close in the fire water mains the Instant the high pressure current was turned on. 1 - WouM Be Cheap. The scheme proposed by Gluys Is adapted from that now In use In New York CHy and Philadelphia. He says this plant could be put in for less expenditure than a new main laid from the waterworks station and-the need ed changes made toV improve the . pumps of the company. The originat or of the idea would have the steam pump used In all cases except those of emergency, when the electric pomp could be called upon. The plant could be put in at nominal expense and It ould not require the employment of any additional men by the city to operate. A system of fire signals could be Installed and as soon as extra pressure would be called for the pump could be started. Steam Is kept up all the time at the power plant, and has been down because of accident but once In seven years. But should anything happen that there would be no steam, the electric power could be used to run the pump. Separate Mains. Tne proposed system would require separate mains, because of the immense pressure that could be carried. If the pipes now in use were called upon to carry water under this pressors. they would burst. Not only that bat plumbing such as is In residences could not withstand the pressure and havoc would follow. The plan would mean a great saving In the distance the water would be conveyed. It is two miles from down town districts to the pumping station of the waterworks company and by the time the water Is forced this distance. It loses some of its pressure. With the pump at the light plant this loss would be avoided almost wholly. ' - For ordinary fires and in the resi dence districts, the pressure of the ter company proves sufficient In

fighting. Gluys believes it would not be necessary to extend his system ontslds of tho business and factory districts.. The fire pressure would be supplied only when wanted and when the water would start flowing under this pressure, check valves along the main at all intersections would be dosed by the . pressure automatically. When the pressure was released the valves ; would open again.) V f " To supply steam to run the pumps the city's plant Is much better prepared than the waterworks company's . plant, The capacity of the four boilers of the company to Just about equal to that of one boiler at the city's plant"' and there are four boilers, dear water for the fire main could be obtained . by the use of ft tunnel such sa is in use by the waterworks company. The wa

ter filters through soft bricks and i el into a trench from which ft w i and forced Into the mains. Wfcfle not having gone Into the subject suf ly far to learn the approximate and other details Gluys has ed that the system would be practical. He would make ft circuit of his : sola ease of a break the damaged tlon muld be cot off by valves esq the water run back In a reverse decttoa.

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