davidaulloa/AmericanStories huggingface dataset:
The Washington times., 1909-06-19
DOUBLING UP THE BURDENS
ON THE STOCKHOLDERS.

The New York Tribune, which may
be presumed TO have some inspiration
to support Administration policies. is
nevertheless pointing out the difficulties
with the corporation tax to which this
newspaper has heretofore alluded The
Tribune has discovered that under such
plan 1t viii be necessary either to
exempt the bondholder's income from
any share in the taxation, or else, in
the effort to reach him, to double the
burden of the shareholder.
The Tribune strongly doubts whether
the tax viii be levied on both the
stockholders and the bondholder's
share Of earnings. By way of iIlustra-
tion it takes this case:
A corporation with a large bonded
debt and relatively small earning
powers would have to pay as heavy a
tax as corporation with a small
/ bonded debt and larger earning ca
Baeity and profits. The tax would not
be on profits, but on profits plus Obii-
cations, and there would be many
cases. no doubt. in which corporations
making no profits would have to pay
a considerable tax on debts repre-
scented by outstanding bonds. The
debt interest could not be cut down,
because il is protected by contract.
The , per cent tax on the bond in
terest would have TO be met out Of
capital, If there happened 10 be no
profits. The holders of
bonds and specially protected securi-
ties would be immune, and the real
owners of the enterprise, those who
take the risks of the venture and give
their capital to promote trade, in
dustTy and manufacture, would be
called upon to bear the cost of A tax
not alone on their profits, but on the
guaranteed payments TO preferred
stockholders and on the interest due
on bonded Indebtedness. If bonds are
to oe- taxed they must be taxed di-
rectIy as personality or as income
producing capital. They do not seem
to be reached by the device Of tax
ing the funds out of which corpora
holders and preferred stockholders
are to be exempt under the proposed
plan TO tax the net income OF cor
porations, it would be unjust for the
ance only while really collecting their
share Of the excise from the over
burdened common stockholders.
This is exactly the point. It is not
possible entirely to accept the Trib-
une's view that the bonds constitute
a debt while the etock is the evi-
dence of ownership and that there
fore there is a wide difference between
them. While this Is technically and
legally true, yet in common expert
ence both stock and bonds are the mere
evidences OF investment and of in
vestor's interest. For all practical
purposes they may be treated alike in
/ the consideration of the Government
relation to income from them. The
bondhofder just as properly ought to
bear his share as the stockholder; prob
ably there will be no dissent from this
But it happens that it is absolutely
impossible to compel him, under this
plan, to bear his own share. To at
tempt to impose it on him is reallr to
/ load it on the stockholder.
The Washington times., 1909-06-19
NEW LAKES-TO-THE-GULF CANAL
PROJECT MEETS APPROVAL OF
MANY SENATORS.
By 7. c. wELLIvER.

modern railroad system is used. There
was a time when railroads were rot al
of the same gauge: some were standard
some broad. some narrow. The Erie for
many years was a wide-gauge road;
many of what are now the great trunk
lines of the West were originally mar
row-gauge affairs with light rails and
small cars and locomotives The stand
ard gauge was brought by reason OF
the great expense Of trans-snipping. J.,
Just as the narrow gauge cars cOulu
not travel over the standard or broad
gauge road. 50 the shipping built Tor 4
fourteen-fOot waterway would De use
less in an eight-fOot- channel. II eight
feet were provided in the Missouri from
St Louis TO Sioux City, a shipment
from New Orleans 10 Sioux CITY WOulu
have TO be handled in boat OF eight
foot draft Otherwise the cargo must
be unloaded at St. Louis and transferred
to the smaller boats plying the missouri
This would involve an Impossible e.
pense and delay.
The realization IS now oelng Iorced
uDOn students Of the problem IN TINS
and other countries that system, with
something like uniformity, IS more mt
portant than great channel A great
railroad with a sIx-fo0t gauge on us
main line, but q fOuT-tOOt gauge ON al
its feeders, would be as impossible as
a successful waterway system with
fourteen feet in the great central chan
mel, and half as mucn IN all IHe iElDd-
tary rivers. In Germany about one
fourth Of the traffic Is handled by inter-
nal waterways, and the tonnage grows
BY leaps and bounds, yet the cepths
there are much less than could be st
cured in thousands of miles of the mid
western river system Of this country, II
a uniform plan were adopted.
1t is now believed that he next step
in the project for internal waterways
will be an investigation TO determine at
what moderate depth navigation can be
secured throughout the great streams
of the Mississippi system Then the
inquiry will turn 10 the expense and
practicability of such a system, having
in view the improvement OF the Mis-
sissippi and also of its great tributaries,
so as TO standardiZe them on one basis.
This done. a boat Of six or eight OF
nine feet could go from any part Of the
system to any other part, and the rea!
benefit of water transportation, which
lies in the long, continuous haul could
be derived.
The Washington times., 1909-06-19

The National waterways Commission.
composed Jointly of Senators and Rep
resentatives, is going 70 have its work
considerably changed by reason of the
decision of the Government engineers
that the lakes-to-the-gUh waterways
project will be too expensive to be prae-
tical.
Next session the middle West Will
make a determined effort to demon
strate that the engineers were wrong,
and that they did not give the project
a fair showing. Until it shall have
been possible 10 give a careful study
to the full text of the report, members
of the commission are not disposed to
comment extensively on it. Senator
I,orimer of Illinois is especially inter-
ested in the enterprise. and has pledged
himself TO the greatest possible efforts
TO have it carried forward. Represe nta-
tive Stevens OF Minnesota is likewise
interested in it.
Among the moderate proponents Of
the waterways project there is a gen
eraI feeling that in time tES rejection
of the fourteen-foot plan may prove a
good thing. Study OF European water
ways has brought many TO the belief
that il would be better to assure a mod
great system of waterways, than to in
vest a vasr sum in getting great depth
through a single central channel
For example, the army engineers md
that the fourteen-foot scheme would
cost SIPS. 600 and 100000 for annual
maintenance. It is declared by people
who have opposed this scheme, that for
a much less sum it would be possible
to provide eight feet or water from
the lakes 10 the gulf, up the Ohio Ten
Dessaa Missouri, Red, White, Arkan-
sas and many other tributary rivers.
That is TO say, several thousands or
miles Of uniform-depth waterways
could be secured for the same amount
or even for less than would be neces-
sary TO get fourteen feet from Chicago
- ,rI,e ~ aSTeslrnent in favor of moderate
aantb and g more extensive system IS
strictIv practical The analogy or fhe
The Washington times., 1909-06-19
FAMILY OF TAFT
TO SUMNER ALONE
President Will Take Wife
and Children to Beverly,
But Return Here.
By JAMES HAY, Jr.

Convinced that the extra session Of
Congress viii last until late in the sum
mer, the President has decided to take
his family to Beverly, Mass, on July
or 4, and then return 70 Washington
to await adjournment
on this trip, Mr.. Taft viii hn the
engagements he has made for speeches
at Norwich. Conn, and at the Lake
Champlain celebration. All these will
come between July and s.
il is not al all improbable that the
President viii give up his plans for
going West this summer. According to
his closest friends, he has not only de-
cided definitely TO give up his trip to
Alaska, but he may not go West at all
His desire 10 attend the exposition at
Seattle and ill other tentative Western
engagements viii not be gratihed il he
hnds, after he gets TO Beverly, that
Mrs. Tafts health would not permit his
leaving on any extended journey.
The President now realizes that many
speeches viii be made and much time
viii be consumed in the Senate before
the tariff bin is passed. There is TO
doubt that his message in behalf Of the
per cent corporation tax and the In
come tax amendment 10 the Constitution
has added some weeks to the length of
the session.
This does not mean that ne is uneasy
about the final outcome Of the session.
He g. rs fully convinced as ever that
the last form Of the measure VIII be
for downward revision and that the rec
concentrations OF his message viii be
accepted by both House and Senate and
Incorporated into the law.
But all this viii take time, and he Is
prepared, his friends say, to wait in
Washington until the riddle Of August
or the first Of September.
The Washington times., 1909-06-19
PART OF CORPORATION
TAX MESSAGE JOKE ON
PRESIDENT.

The joke on President Taft and the
lawyers of his Cabinet. together wi,h
Senator Root. in connection with the
corporation tax message has caused no
end of merrinent about the Capitol
The President in his message, al gning
against an income tax, used this Ian
guage.
Again, it is clear that by enacting
the proposed law. the Congress will not
be bringing money into the Treasury
TO meet the present deficiency, but, by
putting on the ststute books a law al
ready there and never repealed. viii
simply be suggesting to the executive
officers of the Government their possible
duty to invoke litigation"
That is, the President and his legal
advisers assumed that the income tax
law Of 1894 was still "on the statute
books" and never repealed" The facts
are that the income tax law of 1894, by
its own terms. was to run for only five
years, and was to expire by limitation
on January 1. 1900 1t has not been on
the statute books for almost ten years.
and it needed no repeal. because II coa-
tained provision for it's own repeal.
The truth about the matter is that this
GuTlcU6 DllSIdht Ot tli6 GiSSANctAb anu
his distinguished legal aids illustrates
how often just such things happep. All
through this session 1t has beea as
sumed that the old income tax law OF
1894 was still on the books. Nobody took
the trouble TO look it up.
Lawyer Is Deceived.
Representative Hull uf Tennessee,
who is a good lawyer, Supposed il was
still on the books, and merely lying
he drafted and Introduced a careful
bill, requiring the President to proceed
to its enforcement, with the idea that
the effort to enforce it once more would
at once start a law suit and give the
Supreme Court a chance to reverse the
Pollock case-if IL desired to DO so
That kind of al error by youthful
Representative mi ght pass without at
tracing much attention But when the
President and the men whom with great
care ne has selected fer his advisers
on all matters relating to corporate reg
ulation, fall int . the same mistake, il
is accepted as justifying a broad smile;
and the smile he's been freely tndulged
In. The President admitted that he
The Washington times., 1909-06-19

had given the matter "a nature con
sideration. for he explained his change
OF position on the matter OF amending
the Constitution i'm this wise:
Although I have not considered
constitutional amendment necessary 70
the exercise of certain phases OF THIS
power, a mature consideration has salts
ned me that an amendment Is the only
proper course"
some OF the Democrats and independ-
eitt Republicans were indulging IN OBJ
sarratiOns of facetious character about
ire tNact maturity of the deliberations
y cebndnaTy TO this enlightening COM
men OF course. they didn't omit TO
recall that President Taft offered the
Seer staryship Of State 20 a former emf
nent attorney General, and the latter
accepted it. without either OF them re-
called the constitutional provision which
made him ineligible.
Senator Bailey, who has repute for
looking at the books before he commits
himself to an opinion about the law, is
credited with discovering and promptly
noticing the mistakes Of the Cabinet
At any rate. IL was not long in getting
to .he attention OF Senator'S, and Il was
the subject OF an interesting variety OF
comment.
The gentle rebuke to Congress for
putting on the statute books Law al
ready theTe-suggesting to the ex-
eeutive officers of the Government their
possible duty to invoke litigation loses
its point. and is turned into joke on
the Cabinet.
No Advantage Taken.
The insurgent Republicans are not dis
posed to take advantage of the mistake
to the embarrassment OF tie President;
but some of the Democrats are not 80
kindly disposed. They point out that
the President first recommended an In
heritance tax. and it passed the House.
He dropped il because the Finance Com
mittee didn't like it. lie suggested IN
the beginning an income tax as prae-
teal alternative; but when IL was shown
that there was a majority OF three 10
the Senate for this suggestion, he not
only dropped 1t, but hurried a message
to Congress TO emphasize the change OF
position; and he was in such haste TO
reverse himself that mature considera-
ton led him TO get the facts about
the old income tax sadly aWry.
But all this is the gossip or the cor
ridors and the cloak room at present
The insurgent Republicans might under
different circumstances have felt re-
buked and humiliated at the President
course in turning against them; but un-
der the circumstances they are taking II
quite cheerfuliy.
The Washington times., 1909-06-19

the cotton, and a hundred other items
has manifested itself There is plenty
of. room for the Democrats to make
themselves useful if they will only
quit quarreling and get into the fight.
But while they do most of their
fighting among themselves, and leave
all the fighting for real reformation
of the tariff to the insurgent Republi-
cans, why, they viii deserve no better
than they are getting. They have
been a mighty weak and frivolous lot
from the beginning of this debate.
The Washington times., 1909-06-19

OFFICERS in the bureau of construction
and repafrs of the Navy Department
who have been looking over the eX-
Denses necessary to keep the various
sbips of the navy in thorough repair
have picled out the Dolphin as the Doat
I'm the navy which can eat up more
money than any other vessel owned by
Uncle Sam.
The Dolphin was built for and origi-
nalIv srtended to be a dispatch boat
but she has long since been used py
the Secretary of the Navy and the ad-
rniraI of the navy as yacht on Which
ocean 10y rides might be taken when
the weather is good. She is particular
" useful in entertaining weekend par
ties. and Massachusetts society is sure
in mace her decks once she takes up
her uuarters for the summer at Glou-
cester.
The Dolphin was built in 1883. The
b,1Ii and machinery alone cost the Gov
ernment S3l5,O00. When it was decided
10 use her as a yacht large sums Of
nonev were expended in furnishing her
ia a manner befitting the dignity of the
Secretary of state There have been
many alterations, but the principal cost
has been in replacing and repairing the
machinery and hull These repairs are
going on practically every moment the
ship is tied up at a navy yarG, and
there is no prospect that this sort of
work will ever be completed, Tor as the
ship gets older the more repairs she
needs.
Naval officers declare il would be a
big saving 10 the Government if the
Dolphin were thrown into the scrap
heap, sold for junk. ana new yacht
bought outright. The trouble abJut dis
The Washington times., 1909-06-19
DOLPHIN IN CLASS OF ITS OWN
IN COST OF REPAIRS
ALWAYS NEEDED.

posing of the Dolphin is that Congress
may not feel kindly disposed toward
replacing her.
There was so much talk about the use
of The MayhOwer and the Dolphin by
the Roosevelt family that Secretary
Meyer is not likely to ask Congress to
appropriate money for yacht TO be
used by himself. the Assistant Secre-
tary Of the Navy and Admiral Dewey
He will probably prefer to take chance
on enjoying himself on the present craft
rather than to depend upon Congress
to provide him with a substitute
The Washington times., 1909-06-19

Baron MOncheUr, the Belgian minister,
who has recently been transferred from
the legation at washington to represent
his country at Constantinople. sailec
from New York this morning on the
LapIand. accompanied by his daughters,
Baroness Marguerite Moncheur, and
Baroness Alix MoncheHr, and their
grandmother. Mrs. George Holman. Of
Baltimore.
The minister and his party viii spend
some time in Belgium before going to
his new post Of duty in August or Sep
tember. Baroness Moncheur and the two
younger children Of the minister have
gone to York Harbor for a visit before
joining the minister in Belgium shortly
before he starts for COLstantinople-
Baroness Marguerite and Baroness
AliX are the daughters Of the minister
by his first wife. Baroness Marguerite.
who was among the debutanteS OF last
season, was extremely popular in So
ciety, and viii be greatly missed from
the ranks Of the younger set Baroness
Alix was still d schoolgirl, but would
probably have been a debutante of the
coming season.
Baron Moncheur has been one of the
most popular members of the Diplomatic
Corps in Washington for several years,
and his departure is q matter of keen
regret to his colleagues and to his many
friends at the Capital.
Baroness Moncheur, who was for
merly Miss Charlotte Clayton, daughter
of the former American ambassador to
Mexico. and Mrs. Powell Clayton. made
the Belgian legation one of the social
centers of the Capital, and was ac-
counted one Of the handsomest women
in the corps.
Count Conrad de Buisseret, whose
wife was Miss Caroline Story, also an
American girl. VIII succeed Baron Mon
cheur, but is not expected 10 arrive in
this country for a few weeks yet. Until
his arrival the counselor Of the legation.
e de Cartier de Marchienne, viii act
as charge d'affaires of the legation
The Washington times., 1909-06-19
FUNERAL ARRANGED
FOR MRS. ELLIOTT
Wife of Police Captain Lifelong
Resident of Wash
IngtOn.

The funeral of Mrs. Esther A. Elliott,
wife Of Capt. II. 3. Elliott. of the Police
Department. will be held on Monday at
the Whitney Avenue Christian Church.
Mrs Elliott was taken suddenly al
Monday with intestinal trouble, her
death occurring yesterday.
She was born in this city forty-two
years ago, and resided here all her life
She was a member of the Daughters OF
America. and of Ruth Chapter. Order
of the Eastern Star. She had no chill
dreu,
The Washington times., 1909-06-19
ENGINEER BAND CONCERT AT
POTOMAC PARK
THIS AFTERNOON AT 5 O'CLOCK
julius Hamper, Chief Musician.
PROGRAM

March-"RevClati ...... Chambers
Overture "Sabucco' --.........-V Verdi
IdyI-sThe Glow Worm ........Linke
Selection-'Faust' -.-.-..-... .GouDOd
Waltz-'The Love kiss -...-...P Pryor
SeIectIon-"The Three Twins.
Hoschna
(a) Berceuse from Jocelyn. GODDARD
(b) Vision" Morceau Characters
tic. ..........-. ..-......... Won BioI
Fantasia descriptive-"A rsy at
West Point" -.-.--......,.--..-B Bendix
THE Star-Spangled Banner"
The Washington times., 1909-06-19
~ White House Callers

The Secretary OF War.
The Secretary Of the Interior.
Senator owen OF Oklahoma.
Representative Aiurdock Of Kansas.
Reeder Of Kansas.
ISlnkaid or Nebraska.
Smith of Michigan
Lowering OF Massachu
sets
lriScoll OF New York
Madison OF kansas.
The Washington times., 1909-06-19
MARINE BAND CONCERT AT
THE WHITE HOUSE
THIS AFTERNOON AT 5;55 O'CLOCK
William H. Santelmann, Leader
PROGRAM

ATarch--"The Man Behind the Gun
Sousa
rs-''Tannhauser" Wagner
Norwegian Dances, Nos. . and g.
Grieg
Cornet Solo" "Crononian Polka.
Weldon
Musician Arthur S. Witcomb.
Waitz-"The Merry Widow -Lehar
Grand HeTOdiade''
Massenet
SIavonic Dance NO S'....... .Dvorak
'.The Star-spangled Banner"
The Washington times., 1909-06-19
On Board Lapland.


The Laoland. which sailed from New
York today for Europe, carried an un-
usually large number of Washington
people. Among those on board were Mr..
and Mrs Alexander Brittol. Dr.. and
I~s i. l. Pleadweli L. =. N. Mrs.
Guidet Duryee, and the Misses Duryee:
ViscOunt and NisCOuntess Henri lie ST
hour, Mrs. Henry Y. Satterlee and Miss
Satterlee-
Gen. and Mrs. John A. Johnston and
their daughter Mrs. George I. Sum
merlin are spending a few days at the
Plaza, m New York, before going to
Wintergreen Island. their summer home
in the Thousand Islands. for the season.
Captain Summerlin viii join bis wife
there later
Mrs. Redwood Hoar has closed her
house on Connecticut avenue and is
Spending a few days at the Hotel VOL
colt. New York, before gotrg to the
Massachusetts North Shore for the sea-
son.
Vice President Sherman will leave
Washington this evening for Utica, n.
y, to spend few DAYS with Mrs. Sher-
man and their family, who are settled
there for the summer
Miss Mae Hirsh. of L street, who has
been spending the past four weeks in
Denver Col-' has returned to her home.
Mrs. s. Richard and children, of Flor
enCe Court, are the guests Of Mrs. Sam
Nattaus. at Green Spring Valley. Md
MT and Mrs. Solomon, who spent the
past winter I'm Colorado. returned home
Wednesday to reside permanently in
this city.
Bartram Cohen left town the early
part OF the week for a ten days stay
in New York.
Mrs. l. Strouse, of Baltimore. is a
guest of her sister, Mrs. Caroline King,
of Baltimore street.
MI and Mrs. Sol. Meyer and daughter
Bertha. Mr. and Mrs Abe Sigmund. Mr..
and Mrs Robert Meyer, NJ. Eiseman,
and S Meyer have taken a home at
Cleveland Park for the entire summer.
Mr.. and Mrs. Maury HiTsh and son
and Miss Mae Hirsh left town today TO
spend the summer at the Glen Manor
Hotel, Forest Glen, Nd,
The Washington times., 1909-06-19
Taft and Young Men.


President Taft has a liking for young
men. II has not b en- long since he
picked z. Danna Durand, thirty-seven
years of age, to take charge Of the next
decenniaI census, the greatest statistical
Job in the world. Now, he has followed
this up by selecting for Indian Commi5-
sioner Robert G. Valentine, a young
man of thirty-six. Mr. Valentine has
been a teacher, banker, settlement
worker. and a public official He. has
charge of 100000 Indians and or a force
of employees, agents and the like of
about 5000.
He has personally visited the princi-
pal Indian tribes in the United States
and especially those tribes that are
typical His gospel of handling the
Red Man is to teach him TO help h1In-
self. He says the Indian IS not lazy
as so often charged, but that he has
plenty Of energy, as shown IN his ae-
necessary is to interest him in convert
ing his energies into new channels