The Elk Mountain pilot., 1902-08-19
LATE WASHINGTON NEWS AND
GOVERNMENTAL PROCEEDINGS

Cuban loan of $35,OOO,OOO and has
reached the conclusion that the Ques-
tiOns involved are not such as come
within the jurisdiction of the Treasury
Department. 1t is likely that the sec
retary will so inform the secretary of
state.
Orders have been issued by the Navy
Department providing for visit of
the United States steamship Adams to
Wake island and the Midway islands,
belonging TO the United States. in the
Pacific ocean. This action has been
determined on as n result of recent
communication received Mt the depart
ment from the master of the transport
Buford, who reported that while ap-
proaching Wake island in June last he
discovered it inhabited by n party of
japanese.
1t is understood Attorney General
Knox will sail shortly for Europe.
where, in France, he will devote some
personal attention to the Panama canal
question. 1t is quite probable now that
proceedings looking to a deter
mination of the ability of the new
Panama Canal Company to pass
clear title of the property to the United
States will be conducted in the French
courts. While the administration is
anxious to have che matter passed up
on as soon as practicable the question
of time will be secondary to that OF
certainty that the United States will
have no trouble with the stockholders
of the old Panama Canal Company, If
the property and rights of the new
company should be acquired by this
country under the Spooner act. Tile
President, upon whom the RESPONSE
bility rests. will take no chances upon
the results of extended litigation in
which the United States might become
Involved If the property of the new
Panama Canal Company We're pur-
chased before it had been determined
judicially that the company possessed
the absolute right to convey Il clear
title to this country.
The answer of Secretary Root to the
petition of Miss Rebecca j. Taylor for
n writ of mandamus to compel him to
restore her to n clerkship in the War
Department, has been filed. Miss
Taylor was dismissed for publishing
criticisms on the Philippine policy of
the administration. Secretary Roots
answer says one of these published
letters was referred, by Secretary
Roots direction, TO Miss Taylor for an
explanation or statement; that Miss
out offering any justification or retrac-
ton, and that her answer, in the opin-
ion of the secretary of was. was insub-
ordinate and prejudicial TO the order
and efficiency of the service, and Sec
retary Root therefore caused her re-
moval. Secretary Root says his action
was not taken because of Miss Tay-
lor's political or religious affiliations.
and that all the acts of the department
in the case We're done in conformity
with the civil service regulations. His
answer contends that the action of the
head of an executive department in
respect to the case is not subject to
review or control by court of law,
and that his action cannot be directed
by mandamus.
Army officers are not surprised at
the report that Gen. Jacob Smith will
seek redress in the courts from the or
der of the President by which he was
summarily retired. Smiths friends
think his treatment was Illegal. The
order which placed him on the retired
list was appended 10 the Presidents
comment on the findings of the court
martial, which recommended that Gen
eral Smith be admonished by the re-
viewing authority. in this case the
President of the United States. Gen
eral Smiths friends have contended
that the President. by appending the
order for retirement to the admonition
increased the sentence. Under the law
the reviewing authority of court
martial has no authority to increase n
sentence. Secretary Root and Judge
Advocate General Davis have paid no
attention to the comment on the le
gality of General Smiths retirement.
swer to Il query. pointed out that the
law which enables the President to re-
tire an officer after he is siXty-two
years old. without giving cause, was
never enacted as punitive measure,
and did not increase any punishment,
If exercised in connection Herewith.
Commissioner Yerkes of the Internal
Revenue Bureau, has directed that i'm
mediate steps be taken for the collec-
ton of the taxation of profits and loss
accounts, or undivided profits. accounts
of banks, trust companies or private
banks under the war revenue act of
June. 1888. The amount to be collect
ed will approximate. it is said, $780,
600. Under an opinion of the Depart
ment of Justice the tax had only been
collected on the capital and surplus of
banks. but the commissioner ruled last
January that the undivided profit, or
profit and loss accounts. of banks are
part of the surplus, and thereby sub
ject to tax. After this ruling was
made, by request of representatives of
banks. the commissioner agreed Janu
airy 9th last to withhold collection
pending n decision by the United
States District Court in a suit to be
brought 90 test the question. James
Forgan, president of the First National
Bank of Chicago. was the chairman of
the committee representing the banks
that called upon the commissioner last
.LnnuarY protesting agnillst the collec-