The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-09
WAR TAX CASE ARGUED
EFFORT TO FORCE EXPRESS COMPA-
MES TO STAMP PACKAGES.
Counsel for shippers Before the SUI
preme Court-The Money Strin-
gency at New York.

WASHINGTON, Nov S-The United
States Supreme Court to-day began the
hearing in the case of the Merchants Asso-
citation OF New York. brought in the name
of William Crawford, against the Adams
Express Company to test whether the ex-
press companies or the shippers should pay
the war revenue tax charged on packages
sent by express. Mr.. Frederick r. Kellogg
opened the case for the merchants and was
followed by Mr.. Charles Steele for the ex-
press companies.
II was contended on behalf Of the mer-
chants that the tax is imposed exclusively
upon the business of transportation and is
intended to be borne by the carrier in all
cases where it accepts goods for transporta-
ton, and also that the imposition OF this
tax upon the carrier precludes 1T from re-
lieving itself of the expense by refusing to
accept goods for transportation unless the
unwilling shipper himself assumes the
burden.
1t was argued that the refusal of the ex-
press companies to carry packages upon
which the tax had not been paid is an un-
lawful and unreasonable restriction of trade
and the court was asked to enjoin II from
making such refusal.
Mr.. Steele, as counsel for the express COM
nue. tax was not Intended by Congress to be
imposed exclusively on the express COM
pany. even in tina first instance, but that it
Is placed simply on the transaction of ship
ment, to be paid indifferently by either
party; and that even If the express company
Is compelled exclusively by the statute to
pay the tax In the first instance, yet 1t is
lett free to relieve itself of this expense by
using to accept express packages for
transportation unless the shippers agree to
assume the burden Mr.. Steele asserted
that the Adams Company carries about
Zs,VOoVD packages annually. The tax upon
these would amount to $2so,Ooo. or 21s per
cent or the nominal par value of the COM
pany's capital stock. This, he argued, would
be unreasonable, while If paid by the ship
ping public ii would not be felt The
hearing will continue tomorrow.
To-day's statement Of the condition of the
treasury shows: Available cash balance,
s2so'2o'.So5: gold reserve. Ssh, 1854
Admiral Rogers. president of the naval
inspection board has returned to Washing
ton from a visit of inspection with the
board TO Peconic bay, where test was
made OF the submarine torpedo boat Hol-
land. The admiral made a verbal report to
acting Secretary Allen in advance of the
formal written report to commission. speak
Ing IN most favorable terms of the boat
The Navy Department has no authority to
purchase this boat without legislation. The
report or the board will probably be trans
mitted to Congress as a basis for its ac-
ton should IT see fit to authorize the con-
struction OF submarine boats for harbor de-
Tense. -
Kahe otani, president of the Chamber of
Commerce Of Toxic and Yokohama, japan:
X. Yamamoto. president Chamber of Com
merce OF Kobe; Konoshin Wani and T
Furuyu, delegates from other Japanese com
mercial bodies. called on President McKin-
icy to-cay 10 pay their respects They are
for the purpose of observation and recently
have been attending the International Elk
port exposition at Philadelphia.
The Industrial commission will resume its
investigation OF the trusts tomorrow. To-
morrow's witnesses are Messrs J. w. Gates
and Max Pam. both OF the American Steel
and Wire Company:
Treasury officials are watching the course
of the money market in New York, but il is
understood that no steps are contemplated
at this time to relieve the stringency I'm rates
which exist in some quarters Officials are
disposed to think the excessive charges for
money are made largely by banks to Gus
toners who desire il for use i'm speculative
ventures and that fo- ordinary business the
financial institutions are able to accommo-
date their clients at the legal rates of In
tereI Secretary Gage, in speaking of the
matter tonight. said he did not consider
ally exigency existed warranting action by
the government; there was no great accum-
ulatfon or money In the treasury and the
outgo or government money was running
pretty even with its receipts. In this con-
nection the secretary said he knew moth
ing OF the statement current in Wall street
to-day that there was to be n conference
between himself and well-known bankers of
the metropolis 10 consider the money cues
tion. nor was there any basis for the report
that the government was to purchase a
large amount OF bonds. The secretary was
in communication by telephone with a
prominent banking house in New York to-
day. the officials OF which informed him
that they had enough funds TO meet the
~ haf- 4lra. nFFs-f.-
nary rates OF interest.