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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (Dec. 6, 1903)
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PAGES 21 TO 2a
ESTABLISHED JUNE 19, ' 1871.
OMAHA, SUNDAY MOUSING, DECEMBER 6, 1903
SINGLE COPY FIVE CENTS.
OUR AFRICAN INVASION
Uncle Sam's Expedition to Abjuinia and
Iu Effect Upon Araerioan Trade.
CONGO COTTON V AMERICAN COTTON
Kin Menelik' ' Tcople - Clothed ia
Americas Cottons Oar Trad with
oath Africa Greater Thaa with
oath America and China.
)tC op y right, 1903, by Frank O. Carpenter.)
WASHINGTON, Dec. I. (Special Corre
spondence of The Bee.) Our consul general
at Marseilles, Robert P. Skinner, is now
on his war to Abyssinia to make a
comnireclal treaty with Kins Menelik. He
goes aa a representative of the ..ierlcan
government on an American guj .oat and
with a company of , American marines.
His route will be across the Mediterranean
to the Sues canal and down through the
Bel sea to Jlboutl, in French Somallland.
Her he will take the new railroad which
was completed last year from Jlboutl to
Barar, In southeast Abyssinia, a distance
of 186 miles. At Harar he will make up a
oars van of mules and camels to go across
the country to the great camp-Ilk capital
f Adls Ababa, where King Menelik has
his court. , He will spend some time there
making the treaty and investigating trade
conditions, and will then return to Europe
or the United States.
America la Abyssinia,
This expedition will be of great advan
tage to American trade. It Is the first
government step In our commercial invasion
of Africa, and It will probably be fol
lowed by others, which will give us our
share In the foreign trade of that conti
nent. Africa Is three times as big as
Europe, and its population, by some esti
mates, is almost as largq. It already buys
goods amounting to many millions of dol
lars, and prospectively It is one of our
best customers. At present most of our
exports go via Europe, but In the near
future there will be lines of American
steamers to the African ports and the
trade will be direct.
American goods are already well known
In Abyssinia, The people usr American
petroleum and cottons to the amount of
millions of dollars every year. It Is esti
mated that one-third of all the goods Im
ported by the Abysslnlans come from the
United States, and of these the cottons
alone amount to 85,000.000.
Abyssinia has a population of. S.G00.0C0.
The people wear a sort of a toga made of
whit or gray eotton. It Is about nine
feet long and six feet wide. They wear
close-fitting cotton trousers and cotton
shirts. Much of our goods Is sold In ths
form of gray shirtings, and there are car
tain makes which are especially popular,
being known by their trad marks. One of
the marks Is a camel, another a tiger's
head and a third a Somali warrior. At
present the trsde Is dominated by a firm
, of Greeks In Marseilles, who ouy directly
from the Americana They have a branch
house In Wall street and ship from New
York to Jlboutl. They formerly bought
' most of their goods In Manchester.- but the
1 American cotton was found to b stronger,
cheaper and more popular, and It now has
the bulk of the trade, notwithstanding the
English and Indian cottons attempt to com
pete with It.
A Merchant King.
The expedition to King Menelik Is a
happy thought. The king controls the trade
of the country. He can put on tariffs or
take them off at will, and can give all sorts
of rebate to his 'favorites. He will proba
bly make the treaty so that a good share
of the profits of the business will come to
him. I understand this la so of most of
the Abyssinian trade. The king has an
army of lBO.OOO men, and if the clothing for
ths soldiers could be made of American
cotton It would materially Increase our ex
Consul General Skinner will bring back
the patterns most liked by the people and
some of our factories may work directly
for the trade. The Abyssinian women wear
t a mixture of blue and red cotton. They
are fond of turkey red calico and have
printed cotton handkerchiefs. Some of the
Abyssinian home-made cottons are wh'te
with a red stripe twelve Inches wide run
ning through the middle of each piece.
They could be easily imitated and sold at
Yankee Good la South Africa. 1
The American Invasion of South Africa
auses the British and Oerman exporters
many sleepless nights. The London papers
are full of It, and I saw frequent refer
ences to It In the journals of Belgium, Ger
many and France. Our- trad there la
growing about as rapidly as In any part of
the world.- W are now selling something
Ilk 126,000,000 worth of goods every year to
Natal, Cape Colony and the other countries
of that region. This Is more than we sell
to all South America and more than our
ales to China, the East Indies. Russia,
Denmark, Spain, Austrhvand Norway and
Not only that, but these countries ar
onJ edge of their development They ar
a Immense Immigration from Eng
farming territories ar being
P every day. new railroads ar
h and public works instituted.
,1 of farm houses which were de
during the Boer war ar rebuild-
your hardware Is In demand. There
ket for corn planters, harrows, rul
. iura, plows, reapers and mowers,
issuers and ail sorts of farm machinery.
Jierlcan wagons ar considered the best
:ij they sell well everywhere. The South
,Mo'ins are using our locomotives on the
Railroads and have recently bought a lot
of steel cars. They like our foodstuffs and
buy American flour and canned meats.
Much of the American canned stuff goes to
South Africa under English brands. Four
million pounds of tinned meats were re
cently shipped from New Tork to London.
They were rebranded Ehamrcok, an English
trad mark, and sent out to Natal.
America la the Cold Mines.
I am told that American goods are found
throughout the gold region. They ar used
In Klmberley, the diamond mining center,
and have mad their way right into the
mine themselves. Much of the mining ter
ritory there was opened up by American
mining engineers, and these engineers early
began the Importation of American goods.
Klmberley ha tc plants from Chicago.
It has a narrow-gauge railroad made of
American rails laid on ties of California
redwood, with locomotives that cam from
the United States. It baa a dynamite plant
with an American manager, and the dia
mond mines themselves ar In charge of an
The same la true of the gold mines. The
Rand Is not unlike parts of Nevada and
the prospecting la done with Ameiioan dia
mond drills, which the miners say ar
lighter' than the English drills and more
easily worked. Much of the ore la dug down
with American ploka, loaded upon car with
Amvrtr-an shovels sad carried through the
tucntla over Amanoaa rails. The timber
ing Is done with carpenter tools from New
Eng.and, the Ant. lean saw and the Ameri
can ax being everywhere' found.
Oar Trad Increasing.
Wh-t trouble the English and Germans
is the steady gain In American trade. W
ar Increasing our exports at the rat of
SO per cent and upward a year. In on
year w gained 12.0,9j0 in machinery and
typewriters, 1110,000 in household goods, and
nior than 1600,000 In iron. W are now
shipping more flour than ever, sending It
direct from New Tork and San Francisco
to Cap Town and Durban. The flour goej
In bags of 2U pounds or barrels of 191
pounds, but bags ar preferred.
We sell patent medicines In South Africa.
Any drug store there will give you our
liver pills, favorite soaps, refined castor
oils and our best known patent medicines.
W sell electrical goods, typewriters, cash
registers and musical Instruments, such as
the phonograph and graphophone. There
Is a big demand for wire fencing and for
galvanized iron sheets for roofing and build
ing. This material is used all over South
Africa and it Is now supplied chiefly by
the Belgians and the English.
Now Afrlcaa Railroads. .
The new railroads of Africa ar taking
mora or less American materials.. Lines
ar being built her and there all over the
continent, and we ar selling them loco
motives, bridges and heavy machinery.
The South African states would rather
patronise the English, but they are open
ing up new countries and they want their
orders filled Immediately. The American
can do this In one-third the time proposed
by the British contractors and generally
at a much lower rat. This was the case
with the Uganda railway, whloh runs from
Mombasa, on ths coast a little bit abovo
Zanzibar, Into the interior as far as Lak
Victoria Nyania, That road Is now com
pleted and It has twenty-seven American
bridges upon it It took the British con
tractor two years to put up eight bridges,
and the company was In despair as to the
twenty-seven . remaining. They asked the
American Bridge company to bid upon It
It did so, offering to complete the whole
within seven months after the foundations
were ready. The . contract i was . accepted
and the Job was don on time. The bridges
wtor built In Philadelphia and shipped In
tramp steamers to Monbasa. American en
gineers superintended the work and East
Indian coolies performed the' hard labor.
The Uganda railroad is partially operated
by Ametrican locomotives. . t
Th losdaa Railroads.
A number of railroads ar to be built in'
the BoudaVi, that wide strip of country
which runs across Africa between the Sa
hara and the Congo valley. . The Egyptian
railway is to be extended south from Khar
toum, and English and American capitalists
are now having a railway surveyed from
Khartoum to Adls Ababa, th capital of
Abyssinia. If this Is built It will b fol
lowed by a' road Connecting It with th
French line at Harar, making a continuous
road from Khartoum to Jlboutl on th
Red seal i Other sections have been planned
along the Cape to Cairo road, and th Ger
mans are building a line from the coast
opposite Zanzibar which wilt ooneact with
that road somewhere in . the vicinity of
Lake Tanganyika. Th French propose to
continue th line which now runs from Al
giers and Constantino to the oasis of
Biskra, south of Lake Tschad or Timbuktu
across th Desert of Sahara, and ther ar
several Unas either planned or in construc
tion from the Gulf of Guinea I- th in
terior. The Belgians have son. w rail
road projects ' along the Congo, .he . road
which has been built to Stanley Pool hav
ing been a great success. Indeed, Africa
offers a promising field for the sal of
American railway materials, and the Steel
trust and our bridge companies should keep
their eyes on It .
Onr Goods la West Africa.
W sell comparatively few goods in West
Africa owing to th fact that we havo no
direct steamship connection. The southern
and central parts of that continent are as
hear th United States aa Europe, and
steamers from New Tork and our southern
ports should make regular sailings to Cape
town, the Congo and the Gulf of Guinea.
At present most of the shipping Is don by
the English and Germans. Th Belgians
hava lines from Antwerp to th mouth of
th Congo and th Dutch also talc a shar
of th trade. .
The chief English shippers are Elder,
Dempster & Co. This firm sends steamers
to most of th ports on th west coast and
It la trying to develop th trad of the Brit
ish colonies ther in every possible way. It
has recently opened up cotton plantations
In Lagos, and has brought cotton experts
from America to oversee them. Th same
has been don by th Germans, the latter
having . taken negroes from Booker T.
Washington's school at Tuskegee to teach
the people how to handle th cotton.
This experiment aa far as th English
colonies are concerned, is not new. It
was tried during our civil war, when prices
Th result was a shipment of 1,700 bales
In 1804 and of 19.000 bales in 1868. Shortly
after that the business began to decline.
It fell to (74 bales in 1880, rose to 1.000 bales
In 1890 and dropped to one bale only . In
1817. Sine then but a few hundred bale
have been, annually exported. Th ootten
from West Africa Is of th short staple
variety. It baa a poor color and It does
not bring aa much as middling American
cotton. Th British ship owners claim
that they can carry it to Liverpool as
cheaply as cotton can be brought from
America, for the reason that they can lak
back full cargoes of manufactures to
Africa, whereas the return cargoes to th
United States ar light.
Oar Liberia, Commerce.
On would think that th United Sutes
ought to have th bulk of th trad of
Liberia. It has not aa much as Great
Britain. The country is comparatively
poor and Its total Imports amount to only
$1,000,000 a year. Th population numbers
1,000.000. but only 60,000 of these ar of
American descent and so far our colonising
Schemes have not been a success.. In
Liberia all accounts ar kept In American
dollars and cents, but th most common
money la English. Th Germans ar do
ing what they can to get the trad. They
ar now sending two steamers a week from
Hamburg, and th Dutoh have also estab
lished direct steamship connections.
' W have some trade with the French
Congo, and quit a good deal In th way
of cotton goods with th Congo Fre State.
Still further south American coal oil la
used In the Portuguese territories, and
American tobacco Is to be found almost
everywhere. It is used for chewing, snuf
fing and smoking In the Congo valley, be
ing sent ther In a leaf shape. It Is
smoked In cigarettes and cigars through
out South Africa, 17B.Oue.000 cigarettes be
ing annually Imported by on firm alone.
Th African Mediterranean.
Ther ia a big chance to Increase our
trade qn th African Mediterranean.
American cotton goods can be sold In
Morocco, Algeria and Tunisia, and also la
Tripoli and Egypt -
At preseat the French have the bulk of
th trade c( northwestern Africa, They
have built up a big business In Algeria.
When they took possession of that country
In 1830 their annual exports to it were- only
11,600,000. They ar now mor than $50,000,
000 every year.
The French ar colonizing th country,
building roads and railroads, opening up
Its wheat fields and making it one of the
great food supply points of the republic.
'Our exports to Algeria are now worfch
about $1,000,000 annually. They are mad
up of tools of all kinds, Including reapers
and mowers, threshers and portable en
gines. It Is the same In Tunisia, which also be
longs to France. W annually sell $123,000
worth of agricultural machinery to that
country, and also quantities of tobacco,
pork, corn and petroleum. The Tunisians
use American saws and carpenter tools and
all sorts of American hardware.
The Egyptian Market.
The biggest market of this part of the.
world, however, is Egypt. That country is
controlled by England, although nominally
under the sultan, and the United States is
now getting a fair share of its trade. The
building of th At barn bridge was a great
object lesson to the English engineers, and
much of our machinery Is now being used.
The new railroads have 200 American cars
and quite a number of American engines.
Egypt is largely lighted with American
petroleum; it takes thousands of pairs of
American shoes - and a small amount of
American cotton. There is, however, no
American house In Egypt, and such busi
ness aa is done is through foreign im
porters. FRANK G. CARPENTER.
RAISES MANY . ASSESSMENTS
Board of Review Advances Figures
of Oyr Two Score Busi
As the result, of a nigr.t Session of the
Board of Review, lasting unUl 12 o'clock.
more than two score business firms have
been cited to appear and show cause why
their assessments for the 1904 city taxes
should not be increased by hundreds of
thousands of dollars. Various classes of
mercantile enterprise are entered upon the
list, which Is by no means complete, ac
cording to members of the board. Whole
sale and retail houses, . manufacturers,
transfer companies, coal dealers, storage
houses, credit and loan companies, ar to
be mad subjects of inquiry.
In many cases the Arms have returned
voluntary estimates for about the same
amounts as assessed last year, but in nu
merous instances the board Is not satisfied
with, these figures and will Insist upon
further Inquiry next week. The Green
Trading Stamp company is to be taken at
its word and the return of $2,350 Is tp be
weighed ' and ' considered in th light of
sworn statements. .
Following are the marked raises proposed
by the board t
American Beet Sugar Co. of
Norfolk. Neb $ $100,000
Standard Beet Sugar Co. of
Ames, Neb 100,000
Fairbanks, Morse & Co 46,000 60.000
Hayward Bros. Shoe Co 40,260 69.000
Creamery Package Co 18,000 40.000
Johnson Bros. Transfer Co... 4,911 I6.O0O
Klrschbaum A. Sons , . 7,825 46,000
Jtlopp-Woodard Co U,i 6,0o0
Lee-Glasa-Andreesen Co $00,300 $60,000
Martin Cott Hat Co 16,160 26,000
Nebraska Clothing Co 80,0o0 100,000
Omaha Cold Storage Co., 841 60. 000
Omaha Carpet Co...., SS.000 80,000
Omaha News Co 19,626 80,000
Omaha Shot Lead Works 8,245 10,000
Omaha Transfer Co , 1,966 10,000
People's Furn. & Carpet Co.. $1,836 60,000
Paxton ft Vleriing Iron W'ks 82,260 , 43,7.4
Racine Sattley Co 20.375 8i,0u0
Reliable Credit Co 1,060 8,000
Rex Stock Food Co 2,640 10.000
F. E. Sanborn Co 8.&0O ' 20,000
Remington Typewriter Co.... 10,000 SO.OoO
Victor White Coal Co 1,600 10 000
Sheridan Coal Co 2o0 60 0JO
Sunderland Bros 21,700 80,000
C. B. Havens & Co SO.OoO
M. E. Smith & Co 240,000 400.000
Bperry & Hutchinson Co 2,350 10,000
M. Splesberger Co 20,000 30, 00
TransmiHslislppl Grain Co.... 446 10.000
IT. S. Supply Co 48,000 75,000
Voegele c Dinning Co. 25,000 86.000
Williams Shoe Co 26.000 60,000
SAYS IT SHOWS ITS HAND
I V. Gay Comments on Cltlsens In
dustrial Association' Action
on I'nlon Label.
. Th resolution against union labels and
the opposition taken to the eight-hour bill
by the executive committee of the Citizens'
Industrial association at Dayton, O., are a
good thing in some ways," said President
Louis V. Guye of Central Labor union, "be
cause they show the public Just where the
association stands. They have said that
they were not against the labor unions, but
this action will make it clear that they ar
altogether against, the unions. Ther ar
three classes in the United Otates th
larg employers, th small dealers and the
laboring men.. The middle1 men are the un
certain element and it is at them that the
action against union labels Is aimed. They
will want to handle such goods and the as
sociation can bring pressure against them
doing so. The label Is simply a sign to
buers that the article has been mad in a
sanitary ahop under fair dealing.
"In advocating - the tight-hour law the
unions hava simply tried to keep pace with
th times. As new labor-saving machinery
Is Introduced the production of the labor
ing man Is increased and the output of
th factory. W feel that we should benefit
from this Increased production from each
man by shorter hours of labor. We feel
that a man should work ele-ht hours'
eight hours for sleep and eight hours to
do other things-improve himself, amuse
himself and do what he 'ikes."
WILL NOT HURT LOCAL PLANT
Armour's Resumption of Operations
at lions City No Stroke to
oath Omaha. ,
Th Armoihr A Co. napkin nl.n In
' City, which wsj destroyed by fire one year
. ago, will bo ready for operation In May.
'While It, has been out of commission the
1 company has shiDDed all tha hon
In the Sioux . City market to Omaha and
has consumed them here.
"The loss of this business to Omaha when
the Sioux City plant begins operations,"
said Manager R. C. Howe, "will not figure
materially. "W expect the local market
to Increase next summer to such an ex
tent that th loss, of tha Sioux City hogs
will be mors than equalled. W have not
bought any cattle ther. and sheep also
have not figured."
Whil In Bloux City recently Mr. Howe
Is reported as saying that the company was
very anxious to finish the plant so as to
sav th heavy freight bills on llvs stuff
shipped to this city. On the day of this
visit a shipment of sixty cars of hogs
bought In Sioux City was made.
The new plant Is to cost $1,600,000, and th
power house, beef cooler and hog killing
house ar to be finished by May t The
work has been delayed by lack of struc
tural Iron, :
vrnniri! no vrur tiv t tt I
iUDiuianaa mm iaa law
Digest of the ' Arguments Presented to
IMPORTANCE OF THE CASE TO PEOPLE
Points Presented by the Lawyers on
Both Sides 'Arranged In Refer
nco to the Particular
(From a Staff Correspondent)
LINCOLN, Dec. 6. (Special.) A suit of
mor importance to the people of Nebraska
probably than any heretofore tried .before
tha supreme court. Is that wherein th con
stitutionality of th revenue law enacted
by the lata legislature is at staka Th
case was started by the Insuranc com
panies through their Omaha agents, who
brought mandamus proceedings to com
pel the tax commissioner of Omaha to fol
low the provisions of the old revenue law.
The case was of such Importance that
the supreme court appointed three of th
supreme court commissioners to first hear
arguments, their opinion to be th basis
from which other arguments were to be
made before the court proper. Each of
the commissioners handed down an opinion,
one declaring the law constitutional in its
entirety, one declaring th Insuranc sec
tion void and for this reason held the en
tire law Invalid; the third commissioner
held that the insurance sections were
void, but that this did not Invalidate th
entire act A half dozen or more lawyers
made arguments on each jlde of the ques
tion and sufficient evidence was introduced
to prove that at least there ar two sides to
the revenue cose.
Digest of Arguments.
As an indication of this a condensed
report of the argument for and against la
Section 65 provides a penalty for a fail
ure of the owner of property to make a
statement of his property as required by
For: Th power to make a law Implies
the power to enforce It, and a law without
a penalty Is certainly useless. Such legis
lation Is very common and la held valid. I
Cooley on Taxation 916.
Against: This Is a clear violation of sec
tion 1 article Ix of the constitution.
Section 66 relates to the taxation of grain
brokers upon average business don during
For: They are put in a class by them
selves and the method Is both Just to them
and the public and is therefore valid. It
does not affect relators' Interest, and there
fore they cannot question Its constitution
ality. Against: It is made a straight property
tax upon what owner once "had, but which
he does not now own, because he has paid
It back. Such a method clearly violates
the constitution. In Clother against Maher.
16 Neb., page 1 this court said: "This rule of
uniformity very clearly would require that
all taxable property within the district,
when the levy is made, and only such,
should be taxed."
Section 67 provides that owners of gov
ernment bonds shall exhibit them to th
assessor should he clsim to have money
thus Invested. Upon failure to do so the
assessor Is to list against owner the amount
of money ha claims to have Invested.
For: It Is a verbatim copy of the old law,
section 4,807, oomptled statutes, 1901, snd
is reasonable In Itself. Before Its adoption
persons were In the habit of getting exemp
tion on the same bonds as the law was
passed to prevent this.
Against: Before any man Is fined or
Imprisoned he Is allowed by the constitution
a trial by a Jury. Under this section he
may be punished by the say of the assessor.
In Jones against Commissioners. 6 Neb.,
661. it appeared that under general stat
utes, section 899, an assessing board bad
added 60 per cent penalty as authorized by
the statute for failure of the taxpayer to
malia nrorwr return. Such addition was
held to be void by the court because it was
prohibited by section 1, article-lx, of th
Taxation of Credits.
For: Credits are undoubtedly property.
Jones against Seward county, 10 Nebraska,
164, 161, 25, American and English Ency.
Law (1st ed.) 103.
If credits are property there is noth
ing unconstitutional in taxing them. The
legislature could not exempt them If It
wanted to. State against Poyntei supra.
Whether It be gross er net credits assessed
the validity of the law cannot thereby bo
effected. , ,
Against: Th constitution provides that
"revenue as may be needful may be pro
vided by levying a tax by valuation." A
wholesale merchant has accounts out In the
fall and spring largely in excess 01 ms
wealth, having borrowed money to carry on
his business. If credits mean gross credits
ss it was evidently the Intention of the leg
islature, the wholesale merchant does not
pay according to valuation of his property,
out greatly In excess and therefor the
section Is unconstitutional.
Assessment at 20 per cent.
For: The tax is to be levied according
to valuation and not according to actual
voln Thnt Is made accord I nr to the ap
praisement of the assessor. This court has
settled that this Is in accordance with the
constitution in State against Savage, U,
N. W. Rep., 716.
Against: The constitution says: "Rev
enue shall be rasled by levying a tax by
valuation so that every person shall pay
in prooortlon to his property and fran
chises." Insurance Company Assessments,
Sections 66. 69, 60 and 61 provide for th
taxation of gross receipts of Insurance com
panies. For tha state has a rlarht to tax such re
ceipts. Phoenix Insurance Company against
City of Omaha, 28 Neb., 312; 81 N. W. Rep.,
622. (Five other cases cited.) It Is gen
erally held that a tax on gross receipts is a
business or franchise tax and not a prop
erty tax. It Is also held that all the prop
erty of the corporation Is taxable In addi
tion to th tax on gross recelpta Soma
states hold with Nebraska that a franchise
Is property and .that a tax upon It is In that
sense a property tax; but where the distinc
tion is made between a franchise as a prop
erty tax and other property taxes, ths re
sult Is the same as where a franchise tax
la held not to be a property tax. because In
lthr naaa ins franchise Is separated from
all other property. Our constitution pro
vides for tne laxaiion 01 properly a,uu
franchises, making the distinction.
A tax upon gToss receipts Is a proper
measure of th franchise tax If tha legisla
ture makes it so, whether It be considered
as a business tax or a property tax, be
cause the constitution expressly says the
value of the franchise Is to be ascertained
In such a manner as the legislature may
Sections 68 and 61 ar In substance th
oa law in force Drlor to 1887 (bar
ring exemptions in that law), which was
held valid In Phoenix Insurance Company
against omana, neo., oii. in. cuiu.au
i., .hat ih.v ere Invalid because they
provide different methods of taxing the
gross receipts ui imuiam., .
based on section 61, which permits state
companies to deduct the amounts paid for
reinsurance and upon cancellations from
the gross receipts, while no such provision
is made for foreign companies. Under a
reasonable construction of these sections
there is no such difference. The money
which one company paya to another for re
Insurance Is a part of the gross receipts of
the latter and Is taxable as such. To re
quire the company that first receives it to
Say taxes on it would be double taxation.
Note State against St. Paul, Omaha & Min
neapolis Railway Company. SO Minn.. 811, la
N W Rep.. 8o7. Permitting companies to
deduct cancellations comes under the aim
general principles. The money which it re
ceives and holds merely as agent for an
other, and which It Is required to return, is
not a part of the gross receipts within the
meaning of the law. Southern Express
Company against Hood. M Am. Deo., 141.
146; oerman Alliance Insurance Company
asainst VanCleave. 191. Ill, 410. In the last
rase It la held that money returned on can
celled policies Is not a part pf the groa re
ceipts of th company for which it must-account
Power of tho Legislator.
The legislature has power to separate cor
porations Into different classes for purposes
f taxation, which may be taxed under
different modes of iMfsnment. Coal Run
Coal Company againiit Flnlen, 124 111., 66; 17
N. E. Rep., 11. This case is under a con
stitutional ciaure the same as ours. I Cooley
on Taxation, 71s, Int edition; 2s Am. and
Eng. Kncy. Law, 62 and 627. first edition.
Corporation tueuUuned la section M ar
In a different class from those mentioned
In section 61. The former Includes only
foreign fire Insurance companies, while the
latter Includes only home companies. Each
of a class Is treated uniformly. The state
has a right to make a distinction. Bacon
against Board of Tax Commissioners, .126
Mich., $2; 86 N. W. Rep., 807.
Sections 69 and 60, Imposing a t per cent
tax upon gross receipts of certain foreign
Insurance companies and stirety companloe
for the privilege of doing business In the
state, do not put a tax upon property and
do not come within the purview of section 1
or section 4 of article ix of the constitution.
These sections are copied substantially
from the Iowa statutes, which was sus
tained In Scottish Union, eto., against Her
rlott 109 Iowa, 606 ; 80 N. W. Rep., C06.
(Other citations.) None of th sections at
tempt to mak exemptions.
On th Contrary.
Against: Th plan Is to lay a property
tax by valuaUon, though the plan is im
perfect faulty and void. The test of valid
classification is stated by Justice Sullivan
In State against Farmers and Merchants
Irrigation Company. 69 Neb. xL 80 N. V . 61,
who after referring to the rule that a
statute may not be objectionable aa want
ing uniformity of operation If It operates
alike upon all persons and localities aa a
class, says that "such general statement
must be qualified," and he cites Association
against Drummond. 4 Neb. 2o0. 68 N. W.
$75, In which It was held: "To this general
statement it was perhaps necessary to add
a qualification. The legislature may not
arbitrarily and without any possible reason
create a class to be affected by legislation
where th result would be an Infringement
upon the constitutional prohibition,"' and
he lays down the rule in these words: The
rule established by the authorities Is that
while It Is competent for the legislature to
classify, the classification to be valid must
rest on some reason of public policy, som
substantial d.fference of situation or cir
cumstances that would naturally suggest
the Justice or expediency of diverse legisla
tion with respect to the objects classined
Citing Cooley Const Urn. (6th ed.) 481.. and
Foreign fir Insurance companies and all
domestio fire, life, accident and surety com
panies are classified together, but foreign
Hie, accident and surety companies are
classified differently and assesMed upon a
different basis. Companies that write many
of the different kinds of insurance are
omitted from all of these sections. There
Is no provision In the act for their taxation.
There is no requirement for'the assessment
and taxation of the companies that writ
Insuranc for the safekeeping of moneys,
gapers, books, plate glass, liability, steam
oiler, burgary, credit, automatic sprink
ler, animal, hall or tornado Insurance, and
all fraternal beneficiary associations and
mutual oompanies. both fire and life, for
eign and domestio, are expressly exempt
from taxation. During 1902 the people of
the state paid about $8,000,000 for Insurance
of all kinds. Under this law nearly $3,000,000
of prem.ums for Insurance paid to 140 for
eign and domestic mutual fire and tornado
companies en fraternal beneficiary and
assessment companies Is exempted.
Tax . a Gross Premlnms.
Section 68, providing a tax on gross pre
miums, violates the fundamental law. it
Is a tax upon something that never belongs
to the company and never reaches It, for
th agent's commission, running from 15 to
26 per cent, is always deducted and losses,
cancellations and reinsurance reduce th
net receipts to 25 per cent of the gross
reoelpU. Therefore a tax on gross pre
miums Is not a tax by valuation. The sec
tion also Imposes a personal liability on
the agent for the tones of his principal
and thus provides for taking bis property
without due process of law. These two
points of attack ar valid objections to the
ooni Itutlonallty of the section. Should it
be found that th legislature has the power
to tax the gross premiums of such com.
panles as an Item of property the reason
able test of classification prescribed by
Justice Sullivan Is violated. Foreign Are
insurance companies cannot be put In a
olass by themselves; foreign life, accident
and surety companies in another class and
domestic fire, life and accident insurance
companies In a third olass with no provi
sion anywhere for the a sessment of com
panies who did three-eighths of all th
business that was done In th Stat during
1 In 'state vs? Poynter, 69 Neb. ill. 81 N. W.
431, this court said: "The rule of uniform
ity vouchsafed by section 1 of article ix of
the constitution forbids the enactment or
any law exempting the property of any
person or corporation from taxation ex
cept such as are enumerated In seotlon $
of article lx of the constitution. The
property of Insurance companies cannot b
exempted from taxation." There Is no
such thing aa a license tax. An exaction
by the state from a corporation is either
a license or a tax. By this court the dis
tinction is sharply drawn in Pleuhler vs.
State. 11 Neb. 647, 670. and German Amer
ican Fire Insurance Company vs. Mlnden,
61 Neb. 670, 71. N. W. 995.
Another reason why these sections can
not be sustained as exacting a license of
the companies mentioned. The state may
not require the payment to Itself of one
dollar of license money. The constitution
forbids It. Section 6 of article vlll. It can
not be treated as an occupation or business
tax without adding to the words employed,
and It Is not the province of th court to
Taxation of Corporations.
Sections 77 and 78 provide for the taxa
tion of the gross receipts of telegraph,
telephone and express companies.
For: The gross receipts for Interstate
commerce can be ' readily separated from
the receipts from intra-stat -commerce.
The latter is Ml that can be or will be
taxed. Ratterman vs. Western Union Tel
egraph Company, 127 U. B. 411. $ Sup. Ct
1127. The constitution provides for the tsx
atlon of property and franchise of the cor
nnmtinn .nu r t el v. tha value to be ascer
tained In such manner as th legislature
may direct This Is what Is done in these
sections. - ...
Against: Such companies derive a large
per cent of their revenue from Interstate
business. The sections lay a tax upon in
terstate commerce, and therefor violate
the Interstate commerce clause of th
United States, ana aiso iaca unuurmny
with franchise taxation of other corpora-
Section 124 provides for appeals from
"Board of Equalization without trial by
For: Th constitution only provides Jury
triuls In such cases as were triable at
its adoption, and according to the course
of the common law. Yger against Ex
change Nat onal tsana, u xnbo., ei;
and Eng. Ency of Law tirsi B-a.i ioi.
and cases oitea in wi , sroonu rummi.
Vol. 1. page 978. Appeals from the Board
of Equalization are not such cases. Be
sides, an appeal Is a purely statutory
right and must be pursued In a mannert
pointed out by the statute or not at all.
Neb. Ry Co. against Van Dusen, Neb..
100, 161; 1 Am. end Eng. Ency of Law (first
edition). 616. The leal-lature might hav
mad th action of the Board of Equaliza
tion final and no one could have com
plained. So It can provide how an appeal
shall be tried.
Against: Th section directs the district
court to hear such appeals "as In equity
and without a Jury." This deprives prop
erty owners snd taxpayers of the right of
trial by Jury and directs the district court
how to proceed In certain ca"es there pend
ing, ana without the constitutional inhibi
tion sgalnt Inclu'lng more than on subr
ject In an act of th legislature.
Assessment of Banks.
Section 66. relating to th assessment of
For: Decision of the United States su
preme court In the case of the First Na
tional Bank against the Commonwealth of
Kentucky, 9 Wallace, 853, In which Justice
M'l'er said: "It Is the only mode which
certalnlv, without loss, secures the pay
ment of a tax on all the shares resident
or nonresident, as we have already stated.
Tt ta tho mnda which experience has lu-
. " ..1 . . .1 1 .
tl'ed In New England states as th most
convenient snd proper In regard to the
numerous wea'th" onrro'a'lons "t those
states." Commissioner Duffle: "It surely
cannot be marie an objection to this set
that ohr banks and banWIng associations
are faxed In 'he sme msner and m-thods
provided for the taxation of national banks.
Neither Is It an objection that the bank ia
ren"l-ed to pay the tax due from its share
holders." AgMnat: The ee'lon" llcMmlnte In
favor of the banks in that they ar al
lowed to deduct their debts: that banks
mav he axd on gross credits In addition
to carltsl stock and under such interpreta
tion by te -s taxed ten times th
actual value of aasets. ,
SANITATION IN PULLMAN CARS
Condition Ar Mover Heglected, Say
Passenger . Official of th
Assistant General Passenger Agent Buck
ingham of tha B. at M., in speaking of
tho reports which hav been current of
late regarding th unsanitary condition of
sleeping cars, said that ther ar no ac
commodation for th traveling pubUo
which ar kept In a better and cleaner con
dition than' the Pullman sleepers. In sup
port of the statement he produced an ex
tract covering th cleaning of these cars
from the rules of th Pullman company,
"Conductors and porters, on arrival at
any terminal station, shall report any case
of sickness that they may have had while
nroute, giving section, room, etc., that
th car whereon th case occurred shall
have a thorough cleaning and ventilating
of everything contained therein."
- Instruction ar given in detail as to how
th oleaning and disinfecting shall be done,
and In cases where serlqus contagious dis
eases have occurred th car is to be im
mediately closed snd thoroughly fumigated,
and afterward, as soon as convenient and
considered safe, tne car ia to be sent dead
head to tha shops for a thorough over
hauling and renewal of all Interior equip
ment, and it is also to be treated to a
fresh coat of varnish.
AFTER POSTAL AND A. D. T.
City , Officials Demand Strict Com-
pllanco with Municipal
Stringent orders havo been issued to the
Postal and American District Telegraph
companies by Acting City Electrician Mc
Gough directing them to conform all wiring
to the municipal regulations and to install
fire-protecting devices at all- buildings
which they serve. Three fires caused by
defective wires this week have brought the
matter forcibly to the attention of the
electrical deportment snd it is asserted
that no effort will be spared to secure com
pliance with th instructions.
. .according to statements mad at ths city
hall both messenger oompanies for soma
time have been placing th standard light
ning arrestora and fuses at tha entrance
of their wires to each building, but In tha
past this precaution was neglected, and, as
a result many structures have Inadequate
protection. It is now th Intention to de
mand th Insertion of the safety devices on
old as. well as new wiring. ,
Tha first two fires were at the offices of
the Cady Lumber company and th Omaha
Printing company. They occurred almost
simultaneously Sunday night-and wer ex
tinguished with little or no damage. la
ves Ligation showed, so th city electrician
says, that both blaze wer caused by de
fective wiring on the Postal circuit and
th electrician ordered th circuit cut out
Ordinarily defective wiring would not oc
casion such trouble, but ths crossing of th
Postal line by a heavily charged sleo
trto light wire sent a strong current over
the former, causing th fir at th ter
minus of ths light and Insufficiently insu
lated Postal wires. Ths cross at that time
could not be located. Tha circuit, tow
ever, was not cut out and Thursday night
the third fire resulted at RJey . Eros on
Farnam street. Again little damage was
This tim th acting city electrician
started out with a determination to find
the souroe of the trouble and h did so,
discovering it at Eighth and Farnam
Streets. H had th Postal wir torn out
until it could bo Strung so as to afford no
possible interference with th el ec trio light
wire, which is just at ths boundary of ths
At one of th three fires the arrester and
fuse were in, but placed In such a position
as not to make the entire building Im
mune. A councilman said that the electrical de
partment would hav th support of that
body In enforcing tha regulations should
lther of th companies affected show a
desire to continue violation of th or
dinances. IS A DISCOURAGING SURPRISE
Charles Allen, American Criminal, Ra
Arrested at Gates of English
LONDON, Dec $. Charles Allen, tho
well-known American criminal who has
just completed a term of imprisonment,
was rearrested on an sxtradltien warrant
at tha governor's offlcej in Pentonvllle
prison today, tho moment the governor
handed him his release. He was charged
with a postofflce robbery at Springfield, I1L,
Accompanied by two Scotland Yard de
tectives Allen was driven to Bow Street
police court, where Deputy United States
Marshal Watts of Springfield was waiting
with representative of tha United States
Allen was much affected by his re-arrest
He said: "It was unfair. I was not warned
that my freedom would be so short-lived.
Th prisoner Is quits bald and rather
After he had been arraigned before th
magistrate on th eight-year-old extradi
tion warrant th case was postponed until
later in th day.
ALL MANILA AT THE TAFTS
Governor and Mrs. Tart Give Van.
tlan Fete, Whloh Prove Brilliant
in Donblo Sense.
MANILA. Dec C Th VeneUan feto
given by Governor W. H. Taft was on of
th most brilliant affairs svar seen her.
The citizens on their part organized a
carnival, and the scenlo effect was magnifi
cent during tha parade as a flotilla of gaily
decorated boats swept past th 'palace
ablax with vart-colored lights. Vast
crowds of enthuslastlo spectators lined the
riyer banks, which were Illuminated for
miles, to witness th gorgeous spectaca
Governor Taft and his wife received th
guests ss they arrived In costume at th
river entrance of the palace. Farewell re
ceptions ar being held nightly, which ar
largely attended by residents of all na
GAS KILLS A KENTUCKY GIRL
Derangement of Small Heating As
perate Resalts la Her
NEW YORK. Dec l Virginia I Thorn.
ton, a young artist was found dead today
In tho bath room of her Bast Thirteenth
street apartments. Shs had been
asphyxiated by gas from a small heating
apparatus, the tub of which had become
disarranged whil ah was preparing her
bath. Miss Thornton Is said to have corns
recently from Lexington, Ky., where her
brother now resides.
LEXINGTON, Ky.. Doc I. Miss Thorn
ton was a sister of Colonel Albert Thorn
ton, a member of on of th most promt
nent families In the state, and well known
throughout th couth. Miss Thornton bad.
until recently, mad her horn with br
MEETING OF HILL AND 1T0
Interesting Event Recalled by Attempt to
Assassinate ,he M&rquis.
MUTUAL ADMIRATION OF TWO GREAT MEN
Railroad Magnet Deeply AtTet
by Haw of Plot to Assas
sinate Father of Nr.
Cable dispatches during th week tolling
of an attempt at Yokohama to issasslnat
Marquis I to, tho "grand old man," th
"Gladstone of Japan," ar raid to hav
deeply affected James J. Hill, th great
railroad magnate, and this recalls th meet
ing of thees two notables at St Paul som
Hill and Ito had been mutual admirers
for a long tim. Hill regarded Ito aa th
father of "new Japan." Indeed, h had
publicly ascribed to the marquis full credit
for dragging Japan out of ths mlr of su
perstition and placing It upon ths broad,
high standard of modernised thought and
action. Hill, who years ago, became so
deeply Interested In ths new Japan that h
launched a steamship Una to ths Orient,
mad a visit to that country. At-that tim
he did not know the marquis except by
roputatlon, but he met him once on this
visit Ito looked upon Hill, aa do nearly
all progressive Japanese, as ths ruling fores
of American industrial life, because of his
extensive enterprises which reached even
to the Orient
Some five years ago Marquis Ito decided t
to make a tour of th world. His itinerary
Included a long visit In the United State.
Hill learned of the distinguished Japanese's
plan and mad hast to accommodate him
and his large retinue with transportation
facilities across ths continent from Seattle,
where the party was to land.
Now, in Japan, under the new order of
things which was brought about through
the Instrumentality of Ito, government offi
cials, nor any ens else, rides on a train
vtthout paying th regular fare. No fre
transportation there, such as In America.
It Is regarded as pernicious and eschewed
by th bast element of which Ito Is th -
Hill Bends His Train.
Nevertheless when Ito and his paxty ar
rived at Seattle they fctmd a whole train
awaiting them on th Groat Northern to
oonvey them to St PsuL whore Mr. Hill
would meet tho marquis, who was to bo
his personal guest, Mr. Hill's privcto ear
had been included among those whloh
mad up this train and It was for th
special us of Marquis Ito. Ito protested.
not against riding In th train, . for It
was a palatial one, but against riding with
out paying regular fares for h'maelf and
all his party, but Mr. Hill's representa
tives would accept no pay tjsd ths party
boarded th train for 8t Paul. Ito hav
ing determined. In th meantime, to foroa
compensation upon Mr. Hill on his ar
rival in the Minnesota capital.
It was a dreary day when th long train
from Seattle pulled Into tho massive sheds
at ths St Paul passenger depot Ito's, or
Hill's oar was th last ons and stood from
under ths shed, nnprtotd from tl rain.
Hill, Darius Miller, than sec end vice prvsi
dent of tho Great Northern, tow traffia
director for the Hill lines at Chicago; and
several ether Hill officials wtre at th
train to' meet and escort ths distinguished
visitors over to th Great North en general
headquarters, where Mr. Hill had hka
private office, a block or so distant A
party of newspaper man witnessed the af
fair. Hill was clad In an ordinary blua serge
suit and was smoking a cigar. He didn't
ven hav aa umbrella. It had been som
years since hs and Ito had met ted they
never had met but once, so4 Hill bad for
gotten just how th great eastern re
former looked. Presently a group of Ori
entals alighted from a ear, about midway
of th train. In .the rear was thef slender
figure of a typical up-to-date Japanese.
H appeared about middle-aged, was tall
and erect, dressed with Imraaoulat pre
cision, a tall silk til completing th dip
lomats affect which th long, black
Prlnc Albert Initiated.
Entitled to Dignity.
He certainly was entitled to his becoming
dignity. Ha looked aa If h might' hav
revolutionised and modernized half a dozen
orients, as hs swept, with measured and
graceful tread, toward th short stubby,
plain American, who looked mor ilk a
prosperous country merchant than th head
01 several great railroads.
"Ah, ther be is," said Mr. Hill to on
of his officials.
Then ths entlr reception party, with Mr.
Hill In th lead, advanced to greet th
Japanese. Prof us smiles bedecked th
faces of both parties. Mr. Hill had
grabbed his slouch hat from his head and
was just about In ths sot of grasping this
attractive man by th hand, when the)
latter courteously withdrew Vnd pus had
forward another, an 16erly gentleman,
short, homely and unattraotlve. Hs wor
som sort of an old gray coat that cam
nearly to his feet . and trousers to atch.
They wer of some anti-dated Amerloan
vintage, but it was difficult to tall just
what He reflected th Orient In every
feature. His long upper lip was overhung
with a timid mustach and from hi chin
drooped a number of long lash, whloh
wer almost too exclusive in their relations
to each other to be railed a beard. (
This Is Ito the Great
Recovering himself Mr. Hill stepped for
ward and greeted Japan's Grand Old Man.
And it was a meeting to be remembered.
It was a strange collision of Oriental
grace and American awkwardness. But
Mr. Hill was (olng to do his best, so ho
bowed low enough to Infringe the sal am,
took his guest by th band and shook It
until It looked like he would pull It oft
and than, without waiting for further cere
monies, snatched a suspicious looking olgar
from his vest pocket and thrust it Into
Ito's band. Ito looked at it a second and
then, as If hit with a brick, took it with
his whole hand and shoved it into hi sld
coat pocket, not knowing what els to do
with it Probably that was th safest plao
for It, as a club friend of Mr. Hill's after
ward remarked. '
Mr. Hill and Ito, and ths remainder 'of
the party, trudged off through tho mud and
rain to Mr. Hill's headquarters, without
ven th protection of an umbrella and In
a little while, when th rain let up some
what Mr. Hill took th Gladstone of Ja
pan over th city In his private turnout,
which, by th way, was subject to I Affer
ent sort of comment from that paaSed on
Too Mock Energy,
An eastern girl married two men within
two days, her energy being recognized by
a warrant charging her with bigamy. Whan ,
ah was confronted with th proof of bar
guilt she fainted away.
Perhaps she realized for th first tim
what a heavy burden th supporting of two
men might become Cleveland Plain
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