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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (June 23, 1909)
The Omaha Daily Bee The o mai i a dee ta th mot powerful business gttr la th went. bwause It goe to the homes of poor and rlob. WEATHER FORECAST. For Nebraska Shewrrs. Kr low ii Shew ci'h and cooler. For weather report Mr- pHe 3 VOL. XXXIX-NO. C. OMAHA, WEDNESDAY MOIININC, .HNE l!f(t!i-TEX l'AOES. SINGLE COPY TWO CENTS. CHINAMAN TELLS HOW GIRL DIED Chung Sin Sayt He Saw Leon Lin; with Body Shortly After Murder Was Done. DIDN'T WITNESS ACTUAL DEED Ghastly Account of Crif. Unveiled to Mr. Jerom . Sr.. ELSIE VISITED ROOM i "EON Slayer Declared She Tongne and. Bled to Death. .' The consular Dureau is lotn to lei r. MYSTERY OF DEATH IS SOLV-J Howe go. realising that he Is one of the Alrtlm nrnturil with Cklontoni and Then Choked tn Death Cknni Sin HrM aa Material Witness I nilrr Hmr Ball. SKW YORK. June 72. Baited and In timidated by detectives, threatened with prosecution, and confused with rapid fire questions. Chung fin, one time room mate of Leon Ling told this afternoon of Elsie Nigel's murder. Vhder the terrific pressure of the "third degiee," the little Chinaman admitted that he had seen the body tn Leon Ling s room, that he had touched it while It was still warm, that he had smelled drugs, and had watched Leon Ling's preparations for placing the body In the trunk where It was found horribly decomposed last Friday night. Chung Sin. In fact. If what was learned al the criminal courts building Is cor net, described almost everything con cerning the murder of Major General Franx Steel's granddaughter, except the actual commission of the crime. He denied com plicity In It, and protested stoutly that he wax Ignorant of the whereabouts of Ling, the supposed murderer. After the Inquisi tion he was taken before Coroner Har burger, and held In $10,000 ball In the house of detention to await the Inquest. Chung's Spirit I Broken. Chung Sin is IS years old, and a native of Canton. was arrested yesterday morning at West Culway, N. Y., and was brought to Niw York today. Immediately after his arrest and dining the trip to this city, he was plld with questions, bul lied. p i4iiadM and entangled In a mass of quest Urn. It was not until late today however that hi spirit was sufficiently broken, or sufficient inducements were ufi'ered. as the ccsc may be, for him to cast asldo his air of etoUdnees, and tell of the death of the young missionary. Thru, sn.oklng cigarette after cigarette to ruUt bin nerves, the Chnaman told brokenly, but with brutal bluntness, of the Ulrl's death. He was surrounded at the time In the office of Assistant District At torney Ward by detectives from police headquarter.-., woo had put him through a Kt llllllL. Mr. Ward and District Attorney Jerome wero also present, and from what can be learned, it was Mr. Jerome himself, who finally drew the story from Chlng Sin's Hps. He was told that Leon Ling had been captured and had lain the blame upon him Chung Sin's) shoulders. This, together with the persistent hammering at the prisoner, brought the confession. It was made partly in Fngllsh and partly In Chinese, for there was an Interpreter present and was taken down by stenographers. No statement of the gist of hla remarks was made public, but the more salient facts of the confession soon became known about the building. Chloroformed and Then Choked. From the man's stoy Is Is apparent that Klsle Slgel first was drugged with chloro form, and then choAVd to death. She was killed apparently on the night of Juno 9, although Chung Sin appeared a little mixed In his dates. But he says that early In the morning of June 10 he heard a strange noise In Leon's room adjoining his, and looking over the transom, saw the glr lying on the bed with a bloody towel over her mouth. He passed through the room, he said, to go out to wash his hands, and as he did so felt of the body, which was still warm. Afteiv.ard he went down to the chop suev re.'tnurant below, and then returned to the rtMim. Leon. In the meantime, had roititd the body with a blanket up to the i hln. and had pulled a trunk to the middle of the floor. The trunk. Leon was I calmly emptying preparatory to placing the body therein. The rope with whlth the body was bound was lying on the floor at the time, according to Chung Sin. Once again he went down staira, said Chung Sin, where he remained until Leon called him. Whon he entered the door the body was Dot visible, having been bound with the rope and placed in the trunk. Denies Any Participation. At this point of the story, the Chinaman was asked savagely It he had not assisted In putting the body In the trunk. Chung Sin started perceptibly, but said that he had no hand In It. "1 dodu't see her no more," said Chung Hln, "and whcil 1 asked Leon how she died, hr id she had bitten her tongue and blead to death." Leon told him, Chung Pin added, that he was going to send the trunk to Jersey City, thence to Kurope. As a matter of fact. It lay untouched In the stuffy little room until Sun latins, proprietor of the restaurant below, noticed the odor about the building and summoned the police. L'ntll Chun Sin's complete account Is mad public It will not be explained why he saw the dead girl and the preparations for th removal of the body with such ap parent unconcern at the time. Also, de spite repeated Interrogations, he declined to aay Just what happened in th room when th girl was murdered. He admitted having heard a scuffle In the room during th night and told of Elsie having arrived on th previous afternoon, th day when she disappeared from horn. Girl went to Rooat. "Did Leori take her there or did she go of her own accord?" he was asked. "oh want there alone," he replied. "Was ah In love with Leon, or Leon In lov with herT" was another question. At this Chun Sin relapsed Into silence, and than only smiled and shook his head. II Indicated, however, that the girl had sought out the Chinaman. Taking up bis own case, Chung PI a ex plained his sudden disappearance after the murder by saying that he had been em ployed by a well-to-do New Torker, at Continued on Second Page ) Church Howe Calls at the White House Consul at Manchester, England, ii Seeking Place in the Diplo matic Service. (From a Staff Correspondent.) WASHINGTON, June 22. (Special Tele gram. ) Church Howe, consul at MariV-hes-ter, England, who haa been successful In consul service. Is desirous of rounding out his career In diplomatic aervlce and to this end Senators Burkett and Brown had a conference with President Taft today. They presented Mr. Howe's claims to Mr. Taft. and urged that he be given a diplo matic assignment In keeping with his proved ability. The consular bureau Is loth to let Mr. very best consuls In service. His salary at Manchester Is $6,000 per year. J a in Halley, wife and children of Rapid City, 8. D., are In Washington on a visit to Mr. Halley'a father, who celebrated his SOth birthday yesterday. The president sent the following nomina tions to the senate today: Samuel O. Mor timer, to be receiver at Belle Fourohe, 8. D.; W. J. Haskell, postmaster at Cedar Rapids, and Oewell C. Wellman, post master at Allngton, la. " Guy M. Cowgill of Vllltsca, la., has been appointed special agent of the Department of Labor. South Dakota rural routes ordered es tablished September 1: A all ton, SfJInk county, route I. serving sixty families; Burke, Gregory county, routes 1, i and S. families tm; Carlock, Gregory county, route 1, famlllee 115; Dallas, Gregeory county,, route 3, families 113; Dixon, Greg ory county, route 1, families 89; Gregory, Gregory county, routes 1. 8 and 4, families 371; Herrlck, GrenAry county, route 1, families 110; Iroquois, Kingsbury county, route 3, families 68. Rural carriers appointed for Iowa routes: Exlra, route S. Clark Griffin carrier, no substitute; Humeston, route 3, William I. Black carrier, Frankle Black substitute. Harriman Goes On His Travels Health of Amerioan Railway Mag nate, Once Reported Dead, Said to Be Good. VIENNA. June 22. Accompanied by the members of his family, E. H. Harriman left Vienna this afternoon for the Semmer Ing ,a mountain resort about fifty miles from the Austrian capital. The party will stop at the Hotel Panhans, and probably will return to Vienna In a few weeks. Mr. Harrlman's condition was reported at noon today as good. Prof. Struempell. Mr. Harrlman's phy sician, was questioned today regarding his patient. He said the magnate's condition was neither alarming nor dangerous. "He la affected with a nervous ailment, but not of a serious character, and he will have to undergo a prescribed cure." The profeaaor said that Mr. Harriman felt well and was able to attend to his business duties. Dr. Holsknecht has taken an X-ray photograph of Mr. Harriman which corroberates the diagnosis of Prof Struem pell. SEMMERING, June 22. E. H. Harriman arrived here at 7 o'clock this evening and went to the Hotel Panhans, where a suite had been engeged for him and his family. Mr. Harriman appeared to be In excellent health. Base Ball Follows Flag to Colon New Park to Be Dedicated There Prior to Opening of Season. WASHINGTON, June 22.-Bae ball fol lows the flag even In our hot tropical possessions. In the Panama canal cone two leagues played a series of games In the season Just closed there. At Colon the sport has taken such a hold on the people that It Is proposed to put up a new base ball park prior to the opening of the next league season. The Panama Railroad com pany has granted the ground for the pur pose and 'he business men of Colon are contributing to a fund for the erection of an enclosure and grand stand. The games draw attendances varying from 600 to 1,200 each game. STEAMER SINKS, CREW SAVED Lake Boat Gc to th Down, Men Take Yawl and Ee- eape, ALPENA, Mich., June 32. The steamer W. P. Thew, owned by Hugh R. Havey of Detroit, was sunk today off Thunder Bay Island by the steamer Livingstone. Csd- tain E. W. Duncan and the crew of eleven men escaped In yawls and were picked up by the steamer Mary C Elpieke.. WHEAT SPROUTING IN SHOCK Heavy Rain Crop s tn Sooth Damaaiiiw Which lias Been Cut. NASHVILLE, Term.. June 22. Rain con tllnues throughout this section and reports are coming In from many points of wheat sprouting In the shocks. The same condi tions prevail In north Alabama and south ern Kentucky,, Given Life Sentence, Has Brief Vision of Freedom CHCAQO, June 23 A fleeting hope of freedom, held out to a prisoner In Judge Brentano's court today, was snatched from him It a way that created a sigh of pity to spread among the spectators, when tt was discovered that th clerk of the court should have read th Jury' verdict as "guilty" Instead of "not guilty." The prisoner was Frank O'Donnell. ac cused of robbing a cltlxen at the point of a revolver. Th Jury had been out but ten minute. Th foreman of th Jury handed th olerx two forms, on for guilty, and th other for aoquktaL "Not fullty," read th clerk, absent EXPRESS SUITS IN SUPREME COURT Case of State to Compel Corporations to Observe the Sibley Act Up for Argument. COMPANIES ATTACK LAW Statement Made that Business Can not Be Done at Profit. CHARGE IT IS INVALID Plea Made it Takes Property Without Due Process of Law. STATE COMBATS THIS VIEW Attorney General Holds that Facts Presented Do not Shaw ITew Rates Would Cans Loss to Companies. From a Staff Correspondent.) LINCOLN, June 21. (Special.) The suits against the express companies doing busi ness in Nebraska to prevent them charging rates other than those rates fixed by the Sibley law, enacted by the legislature of la07, were argue before the supreme court today, Attorney General Thompson appear ing for the state and Ralph Breckenrldge for the express companies. The argument was based on the report of John J. Sullivan, referee appointed by the court to take testimony and pass on the legal points Involved. The state upheld that report, while the express companies objected to It. The attorney for the companies argued that the law was enacted as a result of public sentiment which was to the effect that corporations were public enemies. No Investigation of rates was made by the legislature which enacted the law, and the legislature worked In Ignorance. Using the Adams Express company as an example, he set out that this company had carried In 1907, 850.000 packages at a rate of 3S centst per package. The company had done business on such a small margin, he said, as to b Insignificant compared with the profits of farming and mercan tile enterprises In the state. The attorney general argued that It was not sufficient for the express companies to show what would be the effect of the new rate as applied to old business, but that the new rates must be applied to new business and the profit or loss based on that. Position of Companies. ' In the conclusion of his brief Mr. Breck enrldge said: "Ti, .nntrnverv and dispute in inese cases has resolved itself to the single issue, whloh has been repeatedly asserted to be: ti. ahntl the known terminal expense. paid out within the state of Nebraska, be apportioned between the Intrastate transac tions and interstate transactions of the companies? "When the actual cost cannot be found th apportionment of this expense on the natural and reasonable basis of what It costs to handle the transactions them selves upon the average cannot be suc cessfully assailed. To Insist that the ter minal cost shall be charged against the Intrastate and interstate revenues, without considering the transactions themselves, solely for the purpose of finding some way to figure a profit on a losing local business cannot be permitted; and It therefore ap pears by all the comparisons which have been made, that the Sibley act, which un dertakes to prescribe the reasonable rates and charges whloh the express companies may collect and receive for the services they render to their patrons between sta tions within the state of Nebraska, Is an outlaw, tested by the constitution of the United States, for It takes he property and services of the companies and their em ployes without reasonable compensation. The rates fixed by this aot are Inelastic; it prescribes a maximum scale of charges not only for prosperous times, but for periods of depression, and gives no consid eration to the shifting conditions of trade and commerce, which the managers of all successful business enterprises must rec ognise. "The Sibley act denies to the companies the equal protection of the laws by making an arbitrary, unjust and radical cut In the rates and charges of the express com panies which was not extended to the other carriers of the state and the ap peal for a Judicial ascertainment of the unreasonable and confiscatory character of the rates and charges prescribed Is under a threatened minimum penalty of fines which may aggregate $10,000,000 or more; or maximum fines aggregating SI,- 000.000,000! Answer of the State. In his argument Attorney General Thompson held In his conclusion: "The statute reducing express rate can not be set aside as confiscatory on testi mony which falls to show the effect of th reduced rates on new business. The defendant having failed to mak such '"owing it becomes unnecessary to ex- i amln4 tne testimony offered by the state. ral8 anouia never be set asiae wunoui me lunest aiseiosure or all material facts, and the statute reducing express rates should not be set aside as confiscatory on testimony of defendant that It would be compelled to do Its buai- ness at a loss under the new rates, where the testimony is based on operations under the old rates, and evldenoe of actual opera tions under the new rate show a profit. "By the use of reasonable and Just meth ods for apportioning operating expenses, (Continued on Second Page.) mlndedly falling to note that he was reading the unsigned form. O'Donnell Jumped from bis seat, excit edly laughing and wrun his lawyer's hand. He started from the room with his head In the air, and his eyes sparkling. Then the mistake was discovered O'Donnell was brought back. Hla and head sunk on his chest as the real verdict was oontinued: "Guilty, and condemned to serve the term of his natural life in prison." Even the prosecutors and their witnesses exhibited evidence of their regret at the accidental cruelty with which th finding of lU Jurors was accompanied, nvviS?. WMAT IS SO T O 4eA, IJ. W THE From the Minneapolis Journal. HIDE DUTY PASSES SENATE Present Dingley Bate is Restored by Upper House. SEX LONG HOURS OF ORATORY Advopntea of llonse Provision Assert that Ileef Trnst la Sole Ilene cinry of Present and Pro posed Tariff. . WASHINGTON. Ju -22. Late today the senate reached the voting stage on the hide schedule, and nftor several amend ments had been defeated, the amendment of the finance committee, fixing a duty of IS per cent ad valorem on hides, was OKreed to by the vote of 46 to 30. This is the rate of the present law, but under the rulinKS of the Treasury depart ment Is applicable only to hides welching more than twenty-five pounds. The house placed all hides on the free list, but the committee restored the Dingley policy by adding them to the dutiable list. The sen ate sustained Its committee. Party lines were much broken In the adoption of the finance committee's amendment. Republicans voting agnlnst the 15 per cent duty were: Hriprgs, Kurn ham, Burrows Burton, Clopp, Crane, Cul lom, Dupont, Fry, La Follette, Lodge, Nelson, Page, Root and Smith of Michigan, ( Democrats voting far thp duty were: Bailey, Culberson, Fletcher, Foster, Huches, McKnery, New-lands, Smith of Maryland, Ptone and Tallaforro. Lumber Schedule Reported, Just before adjournment for the day at 7 o'clock Senator Aldrlrh, on behalf of the finance committee, presented the commit tee's new lumber schedule and also a num ber of amendments relating to linoleum and oil cloth. The committee provided a rate of Sl.fiO per thousand on sawed lum ber, which Is a 50-eent lnrren.se over the house rate. Neither the lumber nor lino leum schedules were acted upon. Declaring that he had voted with Mc- Klnley for free hides In lS'tO, Senator Bur ton said that the subject had heen very carefully considered on that occasion. The "beef trust." he said, probably tans 60 to TO per cent of the hides and the whole tanning Industry was threatened by the operations of these packers. "I think," said Mr. Burton, "It requires a great deal of Ingenuity to show that the farmer In benefited by this duty on hides." After a speech hy Mr. Taylor, Mr. AM rleh appealed to Mr. McLaurln to withdraw his amendment to the proposed amendment of the finance committee, the purpose of which was to include us dutiable, small as well as large hides. Mr. Aldrkh sug gested that the amendment was not con sistent with the free trade ideus of the Mississippi senator. Mr. Mcl.aurin re piled that If a duty was to be levied on hides, It ought to be luvlod on allhldes Mr. McLaurln's amendment was rejected Continued on Second Tage.) Are you looking f ? or a room: ) jH i " " ' fj ri when think inq about it in FtBwuAnv- ?&IWKf7i$ SO RAW A3AOAVIN JUNe-SOWrilMg8'WHtN-rr6IT3'HERE. - An easy way is not to wear out shoe leather but to look through the list of rooms offered for rent on the want ad pages of The I"e. There you will find practically a complete directory of the de sirable rooms, with sufficient information to enable you to judge which will meet your requirements. Then, by in specting these, you will bo sure to find what you want. Have you read tbe want ads. yet todajri ii RARE Ai A DAY IN JUNE I I. o n - -VVVVy JUNE DAY-DREAM AND REALITY. Single Bandit Holds Up Texas Bank for $8,100 Bland Stranger, in Trne Frontier Style, Robs Cashier at Re volver's Point. FOR WORTH, Tex., June 22.-In true frontier style a highwayman, described as genteel In appearance, robbed the branch bunking house of the Waggoner Bank nd Trust company. In the most central section of the down town district of Fort Worth, this afternoon, escaped with $.W0 In cur rency, and, up to a late hour tonight, was still at large. The robbery was the most daring at tempted In Texas In years. Cashier Walter F. King was alone in the bank. A well dressed stranger walked In, approached the window of the cashier's desk, levelled a revolver at King, and next came the de mand for all the money In sight. "Make a move or a noise of any kind and I'll kill you," said the man. The cashier complied, ana stuffing the roll ol bills, ",100, In denominations rang ing from Jl to $20, Into his pocket, the man backed out of the door under cover o' his pistol, and as Mr. King ran to a tel phone he saw the man walking down t! street and mingling with the crowds with an air of unconcern. The police reached the scene five min utes later, but the stranger had disap peared. At the time of the robbery several hundred were In the vicinity of the build ing, and many noted the arrival at the bank and the departure or the man, but his manner was bland. Several declare that he climbed Into a waiting automobile after walking several blocks, but the police plaoe little credence In this assertion, and It Is believed he Is still In Fort Worth. Tonight searching parties are out in force and every place of possible hiding Is be ing searched. According to Cashier King the man was about 35 years old, tall and slender, and apparently a man of refine ment. The loss to the Waggoner bank la covered by insurance. The bank, however, has offered a reward of $1,000. DROP UNION OR THEIR WORK Street Railway Men at I.a Crosse Dis charged for Staying- by ' Orarnnlsatlon. LA CROSSE, Wis., June 22. When the employes of the La Crosse City Railway company reported for work this morning they were given a choice of dropping out of the union or giving up their positions. To a man the conductors and motor men stuck to the union and were ordered off the company's property. Strike break ers procured from Chicago were placed on the cars and partial service was started. Drink is Wrecking Nerves of Americans, Says Doctor r ETROIT, Mich., June 12. "Notwith standing the prohibition wave that has re cently swept over the country, there Is every reason to believe that the alcoholic habit among business men is steadily on an ir.cieahe,"' declared Dr. Frank C. Richard son of Boston today in an address before the So-lety' of Neurology and Psychiatrics. ! Tl e meeting at which this arsertlon was made was one of the many being held In connection with the American- Institute of Homeopathy, which Is in session here this week. Ir. Richardson's topic was "The Problem of Ameiiiau Buslnefs Neurosis.'' He de claied that the strenuius American bust n.KS life was producing In many of Its fol lowers a neurotla partaking of tne charac ltr of neurasthenia, fsychaa t-Utnia aui V ? i 1 t.r rf J "IS F,V' 'K " BUTLER TALKS TO TEACHERS Asserts Educational Forces Must Har monize Nations of World. RACES SHOULD WORK TOGETHER Alumni Gives Dinner tn Head of Columbia I'nlrerslty, Who Any He Never Heard of Tainted Mouey. Using th school terms of "common de nominator" and "numerator" and saying that the common denominator contains fundamental principles and the numerator Is made up of individual methods, Nicholas Murray Butler, LL. D., president of Co lumbia university, told the school teachers of Omaha that It Is their duty to endeavor to understand the "numerators" of other countries. "One knows what was done and thought In Persia, Greece and Rome during the middle ages." said President Butler, "but sometime thb world will ask what did America and Americans mean and try to do; what record did they leave to go side by side with Persia. Greece and Rome. "What I term the new Internationalism Is the necessity of learning what other nations' enumerators are and whether the fraction written In their numerators Is earer perfection than ours. "I am not sure but that In the next -neration It will fall to educational forces to bear the brunt for universal peace, If I may use that expression. It used to be said that commerce and trade bound na tions together. Certainly, commerce and trade sent men out for centuries. We are now living In an era of high yiarlffs, some times protective and sometimes prohibitive, each nation for Itself establishing What It believes to be the best rule for Itself. In consequence of this, International com merce tends all the more to become a mat ter of discord, for nothing Is watched more closely by other nations than the tariff. i Why? Because It affects the pocketbook. Object of Many Races. "There are new duties und new responsi bilities resting upon the oducatlonal forces of the earth, and these are to understand the elements In common, to understand th 'numerators' In other countries, and to pay less attention to that not In common. We owe It to ourselves and the world to keep the fact that the division of mankind was not made Into races for argument and discord, but It was made for mutual under ptardlng and working together, for lifting 1 up of th civilized world. It Is our duty to life up the world, hut first we must I provide an economic basis on which to rest I fie higher life and five an opportunity to all men gain a livelihood and enjoy the i. uiis of labor." President Butler addressed the teachers In a meeting at the First Congregational church, arranged for and presided over by Prof. W. M. Davidson, LL. D., superin tendent of the city schools. Following his address. Dr. Davidson called upon Victor Rosewater, editor of The Bee, but Mr. (Continued on Second Page.) hysteria. The etiological factors In the production of this neurc sis. he said, were chiefly continuous mental activity and ex cesi Ive ue of alcohol. Breaking of patients addicted to the ex cessive use of alcohol. Dr. Richardson said that no fear need be entertained of any physical or mental harm arising from a change to total abstinence. While Dr. Richardson held nicotine to be also a producer of neurasthenia, he re garded It as levs Injurious and enn de structive than alcohol. He dli not advo cate total abstinence from smoking, but advised moderation, saying that a shnr smoke after the evening meal was not In consistent with hygiene and mlht serve to sooUi aui to faslutai quiet thought. LEADERS AGREE 0NTAX KILL Earnings of All Corporations. Above $5,000, Will Pay Two Per Cent. ALL MACHINERY IS PROVIDED Designated Internal Revenue Officials Will Act aa Collectors. FENALTY FOR FALSE REPORTS Betrayal to Business Rivals is Guarded Against. INSURANCE CONCERNS TO PAY llonse and Senate Leaders Present at Important White llonae Confer ence Its Pnesaae Pre dicted to President. WASHINGTON. June 22 Details of tho proposed measure for the taxation of net earnings of corporations, were arranged tonight at the most important conference that has been held at the White House since Mr. Taft assumed the presidency. There were present as the president's guests Attorney Oeneral Wlckersham and Senator Hoot, who are charged with the task of drafting the measure; Secretary of State Knox, Senators Aldrtch, Burrows, Penrose, Hale, Cullom, Flint, Smoot, Mr Cumber and Lodge, constituting the repub lican membership of the senate flnanco committee; Speaker Cannon, Representa tive Payne, chairman of the house com mittee on ways and means, and Represen tative John Dwlght of New York, the re publican whip of the house. The guests sat down to dinner In the atate dining room at 8 o'clock. No busi ness was discussed at the dinner, but for two hours afterward the corporation tax measure, which had been prepared in the form of an amendment to the tariff bill, was viewed from every angle. Many changes from the form In which It was placed were suggested, and not a few- of these were declared to be wise. The result was that the carefully prepared copies given to each member of the party by Attorney General Wlckersham were returned to him at the end of the confer ence. President Taft himself suggested that the copies should not be taken by the mem bers of the party until the amendment had been perfected. All agreed not to make the form of the amendment publlo until It Is ready to be Introduced In the senate as a finance committee amendment to the tariff bill. Measure Agreed I'pon. The terms of the measure as finally agreed upon, although not fully formu lated, provide that all corporations having capital stuck and organized for profit ball pay a tax of 3 per cent on their net earnings. Corporations coming wtthln that designation will be compelled to make returns to specially named agents of the bureau of Internal revenue of the treas ury department, giving the amount of their gross receipts, capital stock, bonded Indebtedness and all other gross receipts, capital stock, bonded indebtedness and all other visible dbts. Separated from these returns, the cor porations will be compelled to report the amount of their net receipts, after de ducting their general and ordinary run ning expenses, Interest on bonds up to the amount of the capital stock of the corporations, Interest on notes and other forms of tangible Indebtedness, and any actual loss that may have been incurred In business, which loss was not made up by Insurance, salvage or other form of return. The amendment will define In the broad est possible way the character of losses which may be deducted from the net earn ings upon which the tax Is to be Collected. These losses will Include bad accounts of a mercantile corporation, losses upon se curities held by hanks, unnollectable notes and all other forms of bad debts which are usually charged to profit and loss aocounts. Exemption 1!p to $M,f)Of. As has been stated before the I per cent tax will apply to all corporations organised for profit, but each corporation will be al lowed a $5.ono exemption, which means that the tax will not be collected except upon earnings In exceen of $5,000. Any corporation which makes a false re port to an agent of the Bureau of Internal Revenue, who has been designated to col lect Information regarding earnings or has made a fraudulent return upon any of the subjects covered by the law, will be subjected to a penalty. Th amount of this penalty Is the only feautra of the bill which was not decided tonight. Most of the participants In the conference expressed the opinion that this pealty should range from $1,000 to $10,000, th amount to be fixed hy a I'nlted States court upon presen tation of all of the facta connected with such fraudulent terms. The tax will be collected upon the entire amount of the preferred and common stock of every corporation and upon the bonds of a corporation where they exceed the total amount of capital. Collcrtnl.le July 1, lftlO. It Is Intended that the bill shall become operative Immediately on the passage of the bill. The life of the measure was made Indeterminate, Instead of two years or osme other fixed limitation such as had been suKgested originally. Th present year's tax will be collectable July 1, 1910, the beginning of the next fiscal year. leaders in the senate and house have been flooded with telegrams from corpor ations, expressing fear that the taw would be drawn in such form that unscrupulous agents of the Internal revenue buerau might use Information obtained In some way so as to Injure the business of a corporation, tils danger was discussed to night, and It was decided that only espec ially designated agents of t'.ie buieau should be permuted to Interrogate corpor ations concerning their business. The cor porations are to make their returns dl ret'tly to the bureau of the Internal reve nue in Washington. It was decided at the conference tonight that all Incorporated Insurance companies, organised fur profit, thai! he brought within the terms of the propesed corpor ation tax law. This will not exempt so called mutual Insurance companies which admittedly or which can be proved to have been organlxed a profit taking Insti tutions. Neither will U exempt fraternal