Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1911-03-13


Payne-Aldrich tariff law were sustain
ed today as constitutional by the Su-
preme Court of the United States.
The court was unanimous in its deci-
sion.
Another important Decision,
Washington, D. c., March 13.-Rail-
roads which employ telegraph opera
tors for six hours and then after an
interval of three hours moTe, comply
with the federal hours of service
law of 1907. Such was the decision
today of the Supreme Court of the
United States, despite the claims of
the government that the nine hours
must be consecutive.
Source of income.
Washington, March 13.-By today's
decision a source of income of approx
imately $25,O00OOO annually is Sc
cured to the government.
New Secretary Takes Oath.
Washington, March 13.-Walter L..
Fisher of Chicago today took the oath
of Office as secretary of the interior.
Owen Persistent Cuss.
Washington. March Ex-senator
Owen of Oklahoma, at the White
house today said that his fight for
statehood for Arizona and New Mexi
CO was no impulse. He said that he
had carefully planned his filibustering
in the closing hours of the session,
realizing tn t only in that manner
could he bring the initiative and ref
erendum issue prominently before
the country.
"If I can prevent it." said the Sen
ator, New Mexico shall not be ad-
mitted to the Union until Arizona is
admitted. I may not be able to do
this, but shall try and shall try with
all the force at my command. l do
not take this stand because I want
to keep New Mexico out of the Union.
l think that territory should be ad-
mitted. But I do it because I think
Arizona is equally entitled to admis-
sion.
"My fight against the New Mexi'
co bill was made primarily to bring
the issue of the in .iative and referen
dunn squarely before the American
people. Half the states in the Union
either have adopted that propaganda
or are about to do so. This is nc
new issue. 1t is an old issue and il
has back of it the safest thought Of
the country
"The statehood fight will be one Of
the biggest in the next Congress. II
is bound to come to the front and
stay at the front until it is met and
decided squarely and fairly to the peo
pie of both territories.
History of the Fight.
Washington, March 13-Nhe figh
against the constitutionality of the
corporation tax began almost i'm
mediately after the enactment of the
Payne-Aldrich tariff law of 1909, o
which it is a part. During the Ions
days of wrangling in Congress ovel
that measure, President Taft origin
ated a plan to raise part of the reve
nue. necessary for the running Of tht
government by imposing a corpora
/ ton tax. He is said to have made
| the first rough draft of the proposed
law and to have asked the Depart
ment of Justice to perfect it.
| Scarcely fifteen months before tht
| Supreme Court of the United State:
had declared unconstitutional the In
come Tax measure enacted by Cong
ress. In order to have a valid tax
the errors of the law had to be avoid
ed. Finally the attention of the mem
bers of the House and Senate were
called to the proposed corporation ta1
as constitutional measure 1t wa!
urged as preferable to another in
come tax which, it was urged, pro
badly would be declared unconstitu
| tional and as under the circumstances
better legislation than an inheritance
tax. When the tariff bill was in thu
senate, the corporation tax provision!
were inserted as an amendment tt
the Payne bill passed by the House
They remained there and become {
part of the tariff act
| The provisions of the, law stated
| that the tax was special excise tai
with respect to the carrying on o.
doing business" 1t was said to b.
paid by every corporation, join
stock company or association, organi
zed for profit and having a capita
stock represented by shares, ant
every insurance company" organized
under the laws of the United State
or any state or territory. 1t was pro
vided that the tax should be "equiva
lent to one per centum upon the en-
tire net income over and above 5000
A received from all sources" exclusiv'
of amounts received as dividends up
on stock Of other corporations, join
stock companies, Or associations, o
insurance companies, subject to tn
tax.
The law provided also that return
should be made by those taxed to tn
/ Treasury Department, to be used as
basis for assessing the tax. Thes
: were open to inspection, but in 191