North Carolina Newspapers

Weather. SECOND EDITION mat 'Washington, June 16 Fore cast for North Carolina (or to night; and Thursday: General ly fair tonight and Thursday. ESTABLISHED 1871. RALEIGH, N. C, WEDNESDAY, JUNE 16, 1909. PBICE 5 CENTS THE PRESIDENT SENDS MESSAGE AS TO INCOME TAX Wants a Constitutional Amend ment Submitted to the People for Adoption. FOR INHERITANCE TAX President Taft Sent a Sieelal Mes sage to the Senate Today I'rglng That' Body to Submit AniendnVnt to the Constitution Permitting An Income Tax to tlie PeopleWants An. Inheritance Tax and Urges Scu ate to IncorMirate Such a Measure Into the Tariff Kill Thinks It Would be I'nwise for the Se nate to Adopt the Income Tax Feature Now Without Chungliig Constitu V tion. ' (By Leased Wire to The Times.) Washington, June 16 The mes sage of President Taft's on the sub ject of taxing incomes of corporations was received in the senate at 1:4a o'clock and read immediately. It is aa follows: "It is the constitutional duty of the president from time to time to recommend to the consideration of congress such measures as h Bliall judge necessary and expedient. In my Inaugural address, immediately preceeding this present extraordi nay session of congress, I Invited at tention to the necessity for a revis ion of the tariff at this session ana stated the principles upon which I thought the revision should be effect ed. I referred to the then rapidly increasing deficit and pointed out the obligation on the part of the framers of the tariff bill to arrange the duty so as to secure an adequate Income, and suggesWd that if It was not pos sible to do 60 by import duties, new kinds of laxatives must be adopted, and among them I recommend a graduated Inheritance tax as correct in principle and as certain and easy of collection. "The holism of representatives has ndopted the suggestion and has pro vided In the bill it passed for the col lection of such a tax. In the senate the action of its finance committee, and the course of the debate Indicate that It mav not agree to this provis ion, and It is now proposed to make uu the: deficit by the Imposition of a general income tax in form and sub stance of almost exactly the same character as which in the case of Pol lock Versus Farmers' Loan and Trust Company (157 V. S. 429) was held hy the supreme court to be a direct tax and therefore not within the power of the gederal government to impose unless apportioned among the several states according to popula tion. This new proposal, which I did not discuss in my Inaugural address or in my message at the opening of the present session, makes It appro Driate for me to submit to the con gress certain Additional recommenda tions. "The decision of the supreme court in the income tax cases deprived thti national government of a power which, by reason of previous decis ions of the court. It was generally supposed that government had. It is undoubtedly a power the national government ought to have. It might be indispensable' to the nation's lire in great crises. Although 1 have not considered a constitutional amend ment as necessary to the exercise of certain, aliases of this power, a ma ture consideration has satisfied me that aa amendment Is the only proper course for Its establishment to its full extent. I therefore- recommend to the congress that both houses, by a two-thirds vote, snail propose an amendment to the constitution con ferring the power to levy an income tax unou the national government without apportionment among th states In proportion to population. "This course Is much to be pre ferred to the one proposed of re-enacting a law once judicially declared to be unconstitutional. For the con gress to assume that the court will rpvprsA itself, and to enact legislation on such -"an assumption, will not strengthen popular confidence in the BtabJIlty of judicial construction of the constitution. It is much wiser imlic.v to accept the decision and rem edy the defect by amendment in due and regular course. ' -Airaln. it is clear that by the en actment of the proposed law tho congress will not be bringing money into the treasury to meet the present deficiency, but by putting on the statute books a law already there and joever repealed, will simply be sug- ruatlnir tn tho executive Officers Of the government their possible duty to invoke litigation. If the court should maintain its former view, no tax would be collected at all. If It should ultimately reverse Itself, still no taxes would have been collected until af ter protracted delay. ' It is said the difficulty and delay in securing the approval of three fourths of the states will destroy all chance of adopting the amend ment. Of course, no one can speas with certainty upon this point, but I have become convinced that a great majority of the people of this country are in favor of vesting the national government with power to levy an in come tax, and that they will secure the adoption of the amendment in the states, if proposed to them. Second, the decision In the Pol lock case left power in the national government to levy an excise tax which accomplished the same pur pose as a corporation income tax and is free from certain objections urged to the proposed Income tax measure. "I, therefore recommend an amendment to the tariff bill imposing upon all corporations and joint stock companies for profit, except national l);ui ks- (otherwise" taxed), Ravings banks, and building and loan asso ciations, an excise tax measured by two per cent on the net income of sirrh corporations. This is an excise tax upon the privilege of doing busi ness as an artificial entity and1 of free dom from a general partnership lia bility enjoyed by those who own the stock. I am informed that a two per cent, tax of this character would bring into the treasury of the United States not less than $25,000,000. "The decision of the supreme court in the case of Spreckles Sugar Refining Company against McClaln (192 U. S., 397) seems clearly to establish the principle that such a tax as this Is an excise tax ...upon privilege and not a direct tax on property, and is within the federal power without apportionment accord ing to '.population. The tax on net. Income, is preferable to one propor- (('nntiuoed on page Two.) ASSAULTS A WHITE GIKL Unknown Negro Attempts Horrible Crime At 11 Lonely Sm1 hi tlH' Woods Hor- derlng Cameron Field the Crime is Attempted Frightened Away by the Screams of the Girl and Her "Companion., This morning at S o'clock, at a point on the footpath running through the woods from Oberlin to Cameron's Held, a n?gro brute as saulted a Miss Curtis, a white girl of Oberl'n, with evident Intent to com mit rape. The negro was frightened away by the screams of the girl, who Is not over sixteen years of age, and of a small boy who accompanied her. 1 ne two were on ineir way 10 lue eiiy when at a lonely spot the negro met them, seized the girl roughly and dragged her Into the woods with ter rible threats. Mr. W. O. Grant, who lives In Ob erlin, was the first to be attracted by the cries of the girl and her compan ion and ran to their aid. The boy was wild with fright and couldn't tell him anything. He hurried to the scene and found that the negro had been frightened away by the screams of the girl. The girl was not injured in the slightest but was only badly frightened. The matter was reported to the police department and diligent work is being done to apprehend the criminal. While the police have nothing to give out, it is hardly thought probable that the negro will be caught as there Is not the slightest clue to his Identity. F.K1K THAIN DKKAILHI). Passengers Ikully Shaken Up, But None Killed Train Was Fast ' Express. '. Klmlra, N. V., June 16. Kile westbound passenger train No. 9, the Buffalo. Chicago and Cincinnati ex press, was derailed seventeen miles east at Waverly Narrows today and the passengers were badly bruised and shaken up, but none was serious ly hurt.. A few were brought to Ar not Ogden Hospital for treatment while others had their Injuries at tended to at the scene of the wreck. I'NKNOWN' NKOHO IiVXCHKO. Attempted Assault in Florida I'ohko Make Quick Work. (By Leased Wire to The Times.) Arcadia, Fla., June 16. An un known negro was lynched here for an attemptedattack upon Mrs. P. K. Reed, wife of a prominent citizen of Arcadia. A posse was formed as soon as the news of the attempted crime spread, and within an hour the negro was captured, a short distance from the scene of the crime and lynched. THE HOME TAX ADHERENTS WILL KEEP UP FIGHT Entrance of the President Into the Eight Has Com- MAY REDUCE SCHEDULES The Adoption of the Taft Proposition Taviug Corporation Incomes May Menu That Many schedules of the Tariff Hill May be He-Cast in Con fereiice I'rogressivcs Hold That Hevemie Desired From This Tax Will Justify Lowering lJales and Keeping Parly Pledges Senate Again Takes I'p Philippine Tariff .Measure Senator 'Foster Opposes Free Admission of Philippine Pro ducts. ( By Leased Wire to The Times.) Washington, June l(3.-Advocatec of the income tax said today that they will not abandon their fight to secure the adoption of the Bailey-Cummins income tax amendment, now pending in the senate, and which by a vote is 10 come up for consideration Friday, but wHl make an earliest effort to have it -adopted. They admitted that President Taft's entrance into the fight for a tax on the net income of corporations by sending In a mes sage 011 the subject has complicated matters. The joint resolution to be offered by Senator Aldrich to submit .0 the states an amendment to the constitution to authorize an income tax and which' bus the entire senti ment of the president, it was said to day, will probably receive the unani mous vote of the senate. It is prob able' the debate on the"niiendniem 10 tax corporation .incomes' will last several days. ''-The .adoption of the Aldrich amend ment, or more properly speaking, the Taft 'propositions taxing corporation incomes, it was said today, means that many schedules of the tariff -bill will be re-cast in conference, -that is' 1 here will : be a scaling downward 'of the duties below the Dlngley rales. The progressives like Senators Dollivor, LaFollct.tc, and Cummins, will Insist that Hie large revenues to lie derived from the corporation tax. which will probably be known hereafter, as I lie Taft lax, justifies a reduction of duties in keeping with Hie party's platform pledge for a downward re vision of the tariff. It is estimated by the leaders that Hie tax on cor porations" will yield a revenue of something, like; $40,000,0(in. The senate convened at, 10 o'clock. The Philippine amendment was taken up. Senator Foster, of Louisiana, opposed the free admission of Philip pine products, lie said that even with the restrict ions 'imposed by: Hie amendment the Importation of goods there would not be limited to dose amounts. He argued that free trade with the Philippines would resull in building up an Asiatic colony, 'while the closer trade relations eonleniplat ed by the. amendment would enforce the permanent retention of the 1st amis. ' ALIENS CANNOT DE SENT HOME (By Leased Wire to The Times.) Washington, June 16, It was an nounced at the office of the conimls sloner of Immigration and' naturali zation today that the plan of the New York stale prison authorities to de port 319 aliens convicled of crimes, and now confined In prisons In that state, cannot be realized because the Immigration laws make no provision for the deportation of ulleiis, whetht convicted of crime or not, after they have once passed inspection and been admitted to the United Stales. 1 The convict aliens now confined In New York, convicted of felonies, will therefore have to serve their sen tenres. Even after being discharged from tho penitentiaries they cannot be deported. Many Heaths From Plague. (H.v Cable to The Times.) Amoy. June 16. The bubonic nlaciie is Increasing here and in Chang-Chow. One hundred and thirty-two deaths have occurred In the past fortnight. SECRETARYOLDS REPORT SHOWS Automobile Hiqhwav From Atlanta to New York Under Discussion METHODIST COLLEGE Methodist Female College for Ral eigh a Possibility Citizens I'rged to Take An Interest in I lie Matter of Securing th- Pythian Orphan age Ituilditig lleiug Done in Many Parts of the City National Farm ers' Congress Meets Here, in No vemberShould Invite Teachers o Meet Here Next Year Good Work of (.'lean-up Hays. At the meeting of the Chamber of Commerce last night the proposed automobile highway from Atlanta to New 'York was one of t lie main topics f (liKi-usiiion. The secretary's report was lull of interest, as It Usually is, and Mr. Willis G. Briggs offered an interesting paper on uniform mini' boring of streets , an' article of in terest which will lie published in lull later. Secretary Old's report, was as fol lows; "Your secretary; In', .'compliance with instructions from the president. attended the very notable conference at Columbia, S. C, last Thursday;-of persons interested in the' automobile highway; by way of Washington, Richmond,'- Raleigh,, Columbia, etc., connecting New York and the south. The meeting 'formed the . "Capital Highway AssoAition" and your secre tary was made the temporary secre- ut.- of the meeting and in a talk set before it. North Carolina's views on the question and the importance of selecting this route. Mr. IVY. Coop er, of Henderson, was elected vice president for North Carolina, Other prominent anil wealthy me' vere chosen, each to represent His . te, and Air. Leonard Tufts, of Pinehurst, who has shown so 'in itch .enterprise and public spirit in organizing and pressing this '-movement,, was. made the president of the association. "Your secretary, in accordance with Instructions, has taken up most actively the "'-matter of securing co operation the part of "county--com missioners, 'road supervisors, and as sociations, such as boards, of trade, etc.,; along the proposed route 1 10111 the Virginia line to the South Caro lina line in this state and has re ceived replies to letters sent. Chair man .losephus Daniels of the commit tee - on the highway named by -this body, lias sent similar bodies. Your secrelury also took up with the coun cils of administration of the New York Herald and Atlanta Journal the question of having thufr scout cars come -.northward along this capital highway, and this has been arranged and they are now on their way in this direction, ..having started from At lanta Monday. President Johnson of the Raleigh Automobile and Gar age Coinpatiy has placed at our (lis posal free of charge any . automobiles needed. "F.ven if this road suggested should never become'- a great '.automobile highway, yet it would be of great Im portance to have made it good since it would serve both local and general purposes, but there .'is every reason in Hie world to believe that it made a tine- thoroughfare, great numbers of aiiloniobllists would use it, no mat ter what the. route 'delected may be, of course it is Important to have' this one chosen. The Pythian Orphanage, "Your secretary desires to again bring up the matter of securing the North Carolina Pythian -'.Orphanage here if possible. Durham made an offer some time since and, .this hns been followed by one by Clayton, the latter being of 100 acres of land and $10,000 by Mr. Ashley llorne and other citizens. Your secretary took the liberty of Inviting one of the prominent Pythians of the state, Mr, WV W. .Wilson', to be here this even ing and make a talk to the Chamber of Commerce. "Since the last report there has been a continuance of the building development .here and contracts have been let for seven additional build ings at, the Central Hospital for the Insane, which Is within the city boun dary..- ' "Your secretary having been Invit ed by Mayor Wynne to present to the Hoard of Aldermen the matter of the proposed automobile highway did so and that body endorsed the movement and appointed a commit tee composed of Mayor Wynne, Al GREAT PROGRESS derman Joseph G. Brown, and Alder man Wililam Cooper to co-operate with our organization in the move ment. Your secretary also referred in his remarks to the need of better street pavements here and this mat ter ought to have the attention of our town organization. There . are also buildings which should be- con demned and removed and sidewalks which particularly need improve ments. The cleaning of the city, which was begun some days ago, is a new feature and though a great deal was done much yet remains to be done. "There is particular. need -of proper walkway between the city and the Agricultural and Mechanical College. Your secretary a few days ago con ferred with the then rector of St. Mary's School, I he then president of tho A. & M. College and Col. Bene han Cameron in regard to having such a walkway made on the north side of the street railway to the Ag ricultural and Mechanical College, Part of such walkway would be within the city limits. The trustees ol St. Mary s School will allow the use of t heir property for this purpose uid Col,-Cameron then gave them liis consent to such Use of a strip of the Cameron land. This is r.-ally an Important, mailer. The facilities which pedestrains now have of get ting to West Raleigh, are very poor and yet this is the most important point which joins this city and thera the greatest tide Of travel flows. Not only at ordinary times but on the oc casions of the state fair and various other events, including, baseball games and various things at the col lege. '."". "Your secretary has Issued a print ed list of the members of this organi zation and placed this in the hands of each one, urging every member to bring in at least one new .member by September first, when the fiscal year begins. The scope of the organiza tion Is not nearly so great as it hould be owing to the cramped mem bership. It is relied on to be the first to move in everything which makes for Raleigh's betterment and must be in position to meet promptly every '(Continued on Page -Three.) V METHODS OF TRUSTS Sugar Trust is Not the Only Offender Simnr Trust H as llccii a Consist ant Law-Hreaker F.ver Since Its Ilirlh : HohlM'd Public ami Ruined Com petitors Government .Not Trying to Roach Them. ( By Leased Wire to The Times.) New York, June Id. Samuel lTn- lermyer. '.who was. counsel lor Adolpn Segal in the recent suit against the sugar trust, sailed Willi .Mrs. 1 nier- myer on the steamship- Krou Prtn zessin Cecilie for Kurope. When iskod. before he sailed, his views' as to a criminal prosecution of the trust and whether his, Client had decided to press such prosecution or take any active 'part in aiding it, lie said: "What would be the use? The sugar -company has been a consistani lawbreaker ever -since its. birth. Its activities in congress have been one of the scandals. 'of the country lor many years. It -has robbed the puii- Ifc and ruined its would-be competi tors.'. Hill it is no worse than many of the others in its criminal methods. Hid not quite so bad as some. "Th is suddenly aroused virtuous ihliorrence of its met hods is amus ing." It -.accidentally Happens at ine moment to be the scapegoat, but as 1 he ".government has wailed until af ter (he principal offenders are dead it doesn't much matter. Whenever the .-government, really wants to bring Hie criminal rich, who are managing these -conspiracies that are notorious ly violating the criminal laws w ithin the penalties of that law, It will not luv difficult. There 'never "has been an honesf, intelligent, effort to en force the ample provisions of Hie law against any of ihe monster monopo lies. "We all know that the anti-lrust law is being openly tlouted and vio lated every day by some of the most powerful -men In Ihe land. There are numberless secret, unlawful pools to control prices and restrict produe Hon operating in this city today many of 'them under written agree men Is that are criminal conspiracies on their faro, "We are told by a certain section of the press (and some gentlemen around Wall street are regaining their smug confidence In that belief) lhat there has been a reaction In the pub lie mi ml against what they are ideas ed to1 call 'attacks' on these criminal conspiracies. "For the sake of the country let us hope the gentlemen are mistaken for If they are right we shall have an upheaval In this country as compared to which the mild and harmless ex periments of the. last admin'stratlon will seem like midsummer r,ephyrs alongside a cyclone." MORETESTIMONY THATMR5.G0ULD LOVED THE CUP Servants Continue to Tell of Seeing Her Under the Influence of Liquor MRS.OOULOMMSNOTE Mrs. Gould Still Wears Same Gown Came Into Court With Her Coun sel Sat With Her Lawyers at Ta ble and Made Notes of Kvidence Didn't Notice Howard Gould When He Came in Young Gould Indif ferent to the Attention lie Attract ed Florist Tells of Seeing Mrs. Gould Drunk Several Times Keeled I'p Against the Wall and Talked Foolishly. (Hy Leased Wire to The Times.) New .York, June 16 More testi mony of former servants tending to show that Mrs. Viola Katherine Clein- nions Gould was addicted to the use of. intoxicants was furnished today before Justice; Howling, In Howard Gould's 'effort to justify his abandon ment of bis wife in answer to her suit for' separation and $12.1,000 alimony. . Garbed in the black -'Umpire gown ind the heavily draped black veil, the wife of the millionaire came into the ourt room with Clarence J. Shearn, her counsel. DeLancey Nicoll in hargo of the case for Howard Gould was there ahead of her. She sat at the counsel table within a few feel of Nlcoll who had subject ed her to a gruelling eross-examina- ion. A few 'minutes later her hus- liand arrived. If Mrs.' .Gould noted his arrival she gave no sign, hut went on mauing notes of the -.'testimony.-.-., Howard Gould, respleiidant in a well fitting light checked suit, and wearing a neatly bowed brown tie, .-appeared ln- lifferenl to t he atlenl ion be attracted. Court officers with difficulty;, pre vented the crowd from forcing its way 'into 'the small room. Justice Howling was late in getting to court and as the result, l lie case was held up for half an hour. Law yers Shearn and Nlcoll conferred with ihe judge alter the session was opened. Harry Turner, in -charge of the Gould green houses at. Castle Gould was called to Ihe stand when the (inference ended. "I saw MrsGould at Castle Gould in. April, I nun, said 1 inner in an- wer In Attorney Nlcoll. "She was under.'the' Inttiience of liquor oil one occasion in ,iuiy or August, liuio. "Late one afternoon," continued the witness, "I met Mrs. Gould un der an arch. She was certainly tin ier the influence of liquor. Although die hud' seen mo but an hour before lecoraliiig (lie table, she asked me if I Was the coachman. "She; reeled up against the wall of the arch as she spoke to me. '"On -November 0 she was also 1111 ler the influence of liquor. Mrs. Gould drove up to Ihe estate office and talked to Molloy and others who were there. She said, 'I am Mrs, Howard Gould,' repeating that many limes. Then she crossed the office and reeled against the wall." "Did you ever see her intoxicated 011 other occasions?" "I did not.". "What did she talk of?" "Talked in a general way to the men. She was certainly under the influence of liquor." Taken in hand by Mr. Shearn, the florist was put through a severe cross-examination. "Did you ever see Mrs. Gould take a drink?" "I did not," admitted Turner. Mrs. Gould looked intently at the witness. ''She. sat within a few feet of the stand and with her veil thrown back stared Turner Into a slate of uneasiness. She continually '..prompted her at torney and made notes as points were scored for her side. Shearn went carefully into the manner in which the various affida vits of servants were produced. He was unable to show that an attorney from Mr, Nlcoll's office secured the different signatures at the estate of fice at Castle Gould. "1 stood within a few feet of Mrs. Gould and heard what she said tq Molloy," Turner testified in regard to one of the occasions of her alleged drinking.