THE CITIZEN, WEDNESDAY, SEPT. 15, 1JIP. "TAXATION" An Interesting Address Delivered Before the Statu Hankers As sociation at Hcdford Springs on Septem ber 8th, 1001), In state Treas urer Slieatz. Mr. Chairman, Ladles, Members of the Pennsylvania Bankers' As sociation, and Guests: I appreciate highly the invitation of your Association, tendered mo through your secretary, to take part in this morning's program; it is indeed very flattering and I thank you for the honor. The subject, "Taxation, " upon which I will speak, is too broad and comprehensive, to permit of any deep or exhaustive analysis or com ment on my part, so I shall merely touch upon the surface of several forms of taxation, most familiar to the people. It lias been said, that it Is human nature to believe that taxation is an evil which should ho avoided if possible; but taxation is practically a universal custom in the civilized world, and one of the oldest peaceable forms by which a government secures the means 10 carry on its business, whether in timed of peace or war; so taxes are le led as regularly as the rising and setting of the aim. Indirect taxa tion is the most agreeable form by which a government may levy and collect her revenues; a direct tax being the most irritating to a com munity. The adjustment of the recent tariff bill was paradoxical to the foregoing statement, and through the latter part of the ses sion of Congress, the theories of Altruism and the brotherhood of man were annihilated; and the re suit was that the pocket-book re visionists revised the tariff through their friends in the Senate and in the House. The only question that might have perturbed their minds throughout this trying and anxious period, was, how much will the con sumer stand without making too much noise? The great masses be lieved and hoped to the end, that as the time had finally arrived for a change in the tariff laws, the re vision would be downward upon such necessities at least, as were parts of the dally lives of the peo ple, but they were grievously dis appointed. A magazine writer stat ed, that of three hundred and live articles under consideration, two hundred and eighty were increased or kept the same as in the Dingley Act, and twenty-live dutiable arti cles reduced. If this statement Is correct, the revision was not in ac cordance with what the people be lieved was the true meaning of the Republican platform or the pre election speeches of the campaign In touching brioily upon the In come Tax, I find that this nation is rather late in giving consideration to this form of taxation. The ilrst historical reference to an income tax that I could find, is in the laws governing Athens, 0S3 It. (J. The populace at that time was divided into four classes; the first paying the highest tax, a graded reduction for the second and third classes, while the fourth class was exempt; which proves that oven in those ancient times there must' have been a firm belief in the equity of a graded tax. The English government derives j its greatest single item of revenue from the income tax, which tax sys-I tern has been in force over one liun- i dred years, and the amount receiv-1 ed the last year, of which statistics I an be secured, was one hundred I and sixty-five million dollars. The Fiviu h government lias also recent-' ly approved this form of taxation 1 and will levy such a tax in 1911.' wiiii sucn a precedence it seems that the Representatives of our na tional government were justified in their endeavor to increase the reve nues by levying an income tax; es pecially, if the progressive policies which seem to be the very spirit and life of our nation's people are to be continued. The vast sums necessary in building the Panama Canal, the proposed construction of the .National Irrigation svstem and Inland Waterways, the further up building of our navy, so it may be greater and better each subse quent year; how can all this bo ac complished without raising addi tional revenues? v0 have hoard that it is possibio to tax the vitality oat of a nation; such a statement is not applicable to this method of taxation, and cannot bo charged against an income tax; but it can apply to burdensome taxation upon the homes In our municipalities and the farms of our commonwealths. Hit method adopted by the Nation al Congress in disposing of .this subject, by roferrlng the resolution lor approval or rHsnn..ol ' t"nt!on t0 the legislatures of the States, is a new one, and must bo adopted by three-fourths of the States of our Union before the Na tional Congress has the authority to levy this tax. As there is no specified time in which the ap proval or rejection of the income resolution must bo consumated and as the levying of this tax seems to have placed the opportunity of "give and take" into the hands of the people; I believe that the neces sities of our nation, and the over powering strength of the masses will eventually place the income tax resolution as a law upon the stat ute books of our national govern ment. Taxation in Pennsylvania seems to be satisfactory, so far as It re lates to revenue with which to con duct the business of the common wealth, provide liberal assistance to several hundred hospitals and homes; pay seven and one-half mil lion dollars yearly to the school dis tricts of the state, about one mil lion a year to various universities and other educational institutions, build some highways, and expend ing great sums for numerous other purposes. The receipts of the Treasury de partment for the fiscal year ending November 30, 1908, were ?u,G70,-r-10.U7; the expenditures during the samo period were ?29,tiiS,878.40. The Income for the first nine months of the nineteen hundred and nine fiscal year are $21,2S4,6:2(.0f, an increase over the same period of nineteen hundred and eight of ?4, 171,907.17. The payments during this period have been ?20,(JC5, GC3.04, an increase over nineteen hundred and eight of ?2,0OS,ni8.ri7. 1 know it will bo a great pleas ure to you and all Penusylvanias to hear that, yesterday, the seventh day of September, the accumulated interest added to the amount of money in the Sinking Fund equalled the entire state Indebtedness, and to-day, if it were possible to secure all outstanding bonds, Pennsylvania would be free from debt. in returning to the subject of Taxation, there was a resolution introduced and pas-sod by the last General Assembly and approved by the Gocrnor, providing for a com mission to consider the laws ol ilie commonwealth relating to corpora tions and to revenues. I beilevo this to bo a very proper procedure, and even if the Legislatuto of nine teen hundred and eleven will not adopt the measures which this com mission might draft, still n great amount of very valuable information may be secured by the commission, which will guide the members who Will take an active part, in what should be an important improvement in our tax laws, which are far from perfect from the commonwealth standpoint. I am iirmly convinced that it would be a tremendous benellt to the people of the commonwealth, if they would discriminate in the selection of their lawmakers for the session of nineteen hundred and eleven, but should the members of the General Assembly decline to enact laws which will clothe the tax levying and collecting departments of the State Government witli' au thoritative power, backed by clear ly drawn, inflexible and equitable laws, then the Executive should uso every power and every preroga tive of his high olilce; concentrate this force upon the lawmaking body, and bring about the passage of such very necessary laws. Corporations pay a Iittlo more than one-half the revenue, received by our commonwealth. The vari ous forms or corporation taxation in use by Pennsylvania, are not conclusively applcable, and are far from equitable and they should be speedily amended or repealed. If repealed in their entirety, but one tax should be levied, and this a tux upon the gross receipts or the entiro value of the production of a corporation within the common wealth; but equaling the present combined income from gross re ceipts, capital stock, loans and bonuses. This method of taxation would be more equitable, and would reduce taxes now paid by domestic corporations, and increase taxation upon tlio.se corporations that operate under a foreign cor porate law, while using the natural resources and facilities of Pennsyl vania for the benefit of their com panies. Insurance companies and bank ing institutions should be in two separate tax classes. The manner of taxing insurance companies should have most careful considera tion by the commission selected to revise laws in relation to corpora lions and revenues. The manner of taxing banking institutions seems satisfactory, with the exception of the four mill tax on time deposit certificates, and the fifty per cent, fine for failure, on the part of a banking institution, to file its re port and pay its tax by Aug. 1st of each calendar year. This penalty seems unreasonable and should be made the same amount as all other penalties, exacted for non-compliance within the time limit as pro vided by law. The four mill tax upon time de posit Certificates Should lip i-rmnnln.l as such deposits represent a class oi savings rarely amounting to large sums. The interests paid by banking institutions on these ac counts are too large to admit the bank to pay this tax, and the in come derived by the depositors is sucn that they cannot afford to raj' me mx oy auoiisning this four mm tax no particular harm would ue uone to the state's income. Ir respective of any change suggested in the loan tax laws, t.im emu- min tax charged against all real estate mortgages should be eliminated, as it means but an additional burden to me oorrower. Ponnsylvanlans should more seri ousiy turn their attention to the .tnnlA,l . .. -- ucjnuuuu ami me anal disappear ance or the natural resources of uieir btate. Only one of the three of which I will mention can in part ue replaced. The first of her nat ural resources which felt the de vnstating hand of man were hnr forests. They should be partially ot'iwcu oy me state government, not in the slow manner that the ointe forestry Commission is com io move, out by quick strides, Increasing the state's holding from what it is now, less than a million acres, to at least five million acres, giving preference to localities con taining water-sheds and water-power streams, keeping absolute, con trol of these streams, as we are re-i verting for the second time to this method of producing a great com mercial force. i The second of the natural re sources upon which I will say but a few words Is oil, This state which for thirty years had the great est oil producing section in the world, creating vast fortunes for in dividuals, has received no perma nent benellt from this great wealth producing commodity. The third natural resource is coal. I shall only speak of an thracite coal, because it is distinct ly a Pennsylvania production; and the people of our State should not permit this to bo depleted for the us.' and the comfort of the nation, wthout one permanent compensation, benefiting all the people of a State in which a Divine Creator so gen erously placed beneath the surface of her soil this wonderful and valu able commodity. Therefore, as two of our great natural resources are past produc ing a large revenue, we are then justllled in levying a tonnage tax upon this one groat natural re source, which could produce a sum great enough to leave a permanent monument ol' enduring benellt to all in Pennsylvania. There is no doubt, but that the very catchy phrase, "Taxing the coal bucket," would he lined to coino considerable extent, but as the average coal sumption per family of moderate means is but four tons a year, they should not disapprove of this ad ditional charge, when the return in value to them in various ways would bo about four dollars to one expended. Of the 04,fiCo,0l4 tons of anthracite coal sold during nineteen hundred and eight, all but nineteen million tons could bear a graded tax, the amount so placed as to produce about ten millions dollars annually. The domestic coal consumers ot Pennsylvania would not pay more than one- fourth of this amount, while the various sections outside of our State would pay the remainder three- fourths of this tax; one-halt of this amount should be used in highway construction to build good substantial roads throughout all Pennsylvania, thereby keeping pace with our neighboring states; one- fourth should bo used for the pur chase and preservation of the for ests, water-sheds and water-power and the remaining one-fourth should he added to the public school ap propriations. in closing my remarks, permit me to say, that the active olilcials of the financial institutions of Penn sylvania are to be congratulated upon the careful, proper and con servative management of their banks, which fact is recognized by most everyone and appreciated by the people of Pennsylvania. The organization of bankers as a whole, is undoubtedly the most powerful association within the common wealth; for fractically all forms of commercial business, great and small, depend upon the assistance they render, and upon this liberal help depends the upbuildng and progress of all lines of business, which means progressive munici palities and employment for its in habitants. The business community and the financial institutions are so closely interwoven that they form one great business fabric of superior force and strength. There is a multiplicity of duties devolving upon the active head of a bank, but these should not be permitted to engross the entire interest in one's lit'o; for the general welfare of your towns, cities, state and nation should have an equitable share of the abilities you possess. There should bo a well-beaten pathway leading to some central point in your community, aside from the one between the bank and your home, where civic conditions are discuss ed and where you men who aro the most vital force in your community should without fear or favor stand for the betterment of conditions within our commonwealth. An rjvery Day Occurrence. A few minutes before 12 o'clock noon every day in the year a young man walks into a certain room of the main building at tho naval ob servatory, which is set up on a hill in tho northwestern part of tho Dis trict of Columbia. He glances at tho various clocks In the room and then goes over to a table which is covered with electric apparatus. Ho watches the clocks to his left closely and waits for the hands to reach ll:fiG. As the second hand approaches tho GO on the dial ho prepares to shift a switch. The clock is so finely adjusted that when tho second hand points to GO it exactly marks the beginning of a now minute. As it touches tho 60 the switches are thrown on. That starts a sig nal that goes out instantaneously over 900,000 miles of telegraph lines. In Washington, New York, Buffalo, Cleveland, Newport, Balti more, Newport News, Norfolk, Sa vannah, New Orleans, Key West, Galveston, Chicago, and elsewhere the time balls go up on their poles, People know thnt it is five minutes to noon, Washington time. The clock which keeps tho time In the observatory ticks on. With each tick there is a contact of elec tric points. A circuit is closed, and an instrument on the table similar' in appearance to. a tele graph Bounder ticks away loudly. It goes on to the twenty-ninth second, then skips one tick, then re sumes its steady sounding until the Inst five seconds; then thero is another gap. These gaps aro for the purpose of giving listeners at the other ends of the great sys tem of wires a chance to know what part ofthe minute the clock is on. So it goes up to the last minute. At the twenty-ninth second there !3 again the skipping of one second. Finally the clock gets around to the fiftieth second. Then the circuit remains open for ten seconds. There is silence all along the tele graph wires. At the other end, where thero are time balls or merely train opera tors, the long pause Indicates that ' noon is almost there. The second hand makes on toward GO and 11-! nally reaches the mark. Then there , is another click; in about a sec-1 ond the sounder Is down, and that tells hundreds of thousands of peo-1 pie that it is noon in Washing ton. 1 It is a wonderful operation, this I getting the time, and highly teehnl- I cal. Finely adjusted clocks, chron-1 ographs and other Instruments of great value are used, and the taking , and recording of the time have ! reached a point where the human i equation Is practically eliminated. The results obtained are of great value, particularly to mariners. The time is not only flashed to hundreds of points in the United States, but it is sent far out to sea by wireless. A cable carries the Hash to Ha vana; another to Panama and Callao, Peru. The observatory hero does not send the time much farther west than the Rockies, but they have an observatory at the Mare Island navy yard, and from there the time is sent up and down the Pacific coast, just as it is from hero to the east ern part of the United States. In the cities whore the central time is used the flash marks 1 1 o'clock. An hour later local operators drop the time balls. The mean time is determined by astronomical observations. When certain stars pass the seventy-fifth fifth meridian, called the meiidau of Washington, it is a certain time. The operator watches for the stars through a telescope, the field of which is covered with fine wires. As the stars reach a certain point in transit the operator presses a key in his hand. A contact is made and recorded on a chronograph. The chronograph consists of a cylinder covered with paper. It is held by an arm attached to the mechanism. The cylinder revolves once a min ute, and the pen moves along the surface of the paper, making a tipiral line. A sideral clock of the finest make is running In a vault underneath t lie observatory. With each tick of the clock there is a contact of two points. These two points aro ut tai'hcd to wires that lead to an electro-magnet attached to the arm that holds the pen of the chrono gr'anh. The clock is so adjusted that eacli minute the pen jumps to one side. Consequently there is a break In the line. There are other breaks, too, when the observer watches the stars cross the lines In the Held of the telescope. The mean time thus recorded for each star, after being corrected for errors, Is the clock time of the star's transit. What ever difference thero is between the clock time and the sidereal time marked by the transit of the stars in the error of the clock. From these astronomical observations the sidereal time is obtained. The error amounts to but little, rarely being more than from flvo ono-hundredths to ten one-hundredths of a second. The time of sendng a flash over the wires is practically nothing. A Hash has readied Greenwich, Eng land, in three-tenths of a second. Chicago Inter Ocean. COACHMEN TURN CHAUFFEURS. Most Students In Motor Schools Have Sat on the Box. The instructor of one tho largest schools of motor instruction in the country says that 50 per cent of his pupils aro old coachmen sent by their employers to learn how to drive the new carriages. They make good chauf feurs. The simple reason is that while they may not be blessed with a great amount of mechanical knowledge they know what a vehicle Is, what it is for and that it should be treated serious ly. The samo testimony, according to tho Review of Reviews, is given by one of the large automobile manu facturing companies which has estab lished a chauffeurs' school. This school makes chauffeurs out of any kind of material that purchasers of cars may ship in. Most of the material, and the best in a general way, is composed of coachmen, old and young. They have hnd experience in caring for fine car riages. They know how to drive on city streets. Hunger. Hunger is God's instrument in bring ing the idlest to toll, and Hunger waits to work her will on the Idler and the waBter. J. R. Green. Uncle Ezra 8ays: "All things come to him who waits, but they come a good deal quicker to her." HOUSEHOLD EXPENSE BOOK. How Five Cent Trial Balance Pamph let May Be Kept Accurately. Buy a paper covered trial balance for flvo cents. Then decide what ac counts you will keep, such as clothing, rent, groceries, fuel and light, laundry, furnishings, Insurance, benovoleuces, &.c; sundries and cash last. Enter these names at top of columns for twelve or more accounts for one month. The left hand column is for dates and nt night it is an easy matter to cuter under their respective accounts the total amount for eacli that day, using the same line across the two pages. At the end of the month add each account and place totals on one line, then make summary totals In unused space below. In column reserved for cash enter amount on hand on first of month, and by subtracting total ex penditures from the total receipts tho amount of cash on hand at end of month will be shown; thus all cash transactions for tho month can bo seen at a glance. A Real Man Hater. Miss Harriet Evan3, an ejdorly spin ster on whom an inquest was held at Hackney recently, was said to have boon a confirmed man hater. "She was 6o much against men that she would not have a coin with tho king's head on it," her landlady snld. "If one was given her she would throw it into the fire. Sho would only deal in money bearing Queen Victoria's head." Miss Evans went to the office of a local newspaper some time ago, but refused to enter until a woman was sent to transact business with her. An advertisement for apartments which she published stipulated that there should be ::o man in the house. Sho even declined to receive letters because the stamps bore the king's head. Pall Mall Gazette. Tree Planting In Pennsylvania. Land owners in Centre county are taking up tho question of reforesta tion In a practical way. This spring a number have planted treellngs on various kinds on tho denuded hills on their farms, and just now a force of n en Is engaged planting 250,000 white p':.e treellngs on the old Whipple p' .co near Pine Grove Mills. Tho t:ielings are from the Stato nursery at Greenwood Furnace, and tho plant Ir ; Is being done under the direction o Mr. Morton of the State Forestry E partment. Philadelphia Record. S?anl3h Executioner's Remorse. curious story comes from Seville. 0 ' Sund-.y night tho local execution- e died, his death being due to ro il ' rse. For several years he had car ried out any executions, but recently ho was summoned to :ordova to in flict the final penalty on some crimi nals. The Impression made upon him wsis so painful that he was unable to face the ordeal when condemned in Seville, and the sentence will have to be carried out by the Madrid execu tioner. Traveling with Phials. In traveling with toilet bottles or medicine phials, which cannot be dis pensed with, first ascertain that the corks are sound and will not allow tho liquids to pour through. Then cut small pieces of thin, pliable wire. Draw a piece around the neck of each bottle and make one loop, draw ing tight Put the other end across the cork and form another loop around neck of bottle. So prepared the bot tle may be packed in either bag or trunk without danger of spilling. Curious Facts. Special clocks which need winding up only once in 400 days are now be ing manufactured in Munich. The suffragists of England aro of fering a prize of one guinea for the best epigram in verse on the question of woman suffrage. At a concert which took place in the large hall of the Royal Museum at Stuttgart no instruments were used save spinets, clavicembolas and pianos of the seventeenth and eighteenth cen turies. A Dreadful Analogy. The hypothetical question had just been asked, and the prisoner fell for ward In a faint All was confusion in tho court room. "What is the matter with the pris oner?" demanded the judge, hammer ing his desk madly. "Nothing, your bono,," groaned the unhappy man, as he came to. "I was only thinking how long I should have to serve If my sentence was as long as thnt." Only Woman of Her Kind. Miss Polly Page, of Philadelphia, is the first woman in the United States who has ever been chosen master of tho hounds by a fox hunting club. Sho Is n thorough horsewoman, and fully capable of carrying out the duties of her office. The season opens in No vember, and Miss Page says she will be ready for it. Value of Trees In Cities. There is no well populated country in the world which has so many well wooded towns as Holland. Most of our streets and canal banks have ave nues of trees. These abundant growths in thickly populated cities are highly useful and hygienic as well as orna mental. Tho great European capitals should follow this example. Hague Handelsblad. Indians' Choice of Guns. While some Indiana prefer repeat ing rifles others In actual hunting choose the muzzle loader, as they do not take long range shots, preferring to get close to the game and bo suro. PROFESSIONAL CARDS. Attorncys-nt-Low. H WILSON, . ATT01t.VE 4 COl'NSKI.OIt-AT-LAW. oilkc Miionlc b'UMlliiff, second floor IlollC'SllUjf, I'll. TfSL II. LKE, T ATTOUXBY A COVNSi:i.Oti-AT-I,AW. Olllce over poM (tlllce. All local business promptly attended to. IlnucMlule, la. in C. MUMFOHD, ATtOKNKY A COILVfr.I.OU-AT-LAW OllIlM l.lliertv llnll IiiiIIiIIiil'. imiuisiltn flio Post OllUr. JlollCMl.de. I'll. KOMHlt GliKENE, ATTOKKKY A COl).SKI.OIt-AT-I,AW. Ollice over lielfs store. lliaieMlalo Pa. I T. t-HAUUi, 3l. A'lTOHXKY A COTNSEI.OK-AT-IAW. OIllcc near Court Jloli'c Jlone.sdale. Pa. 0L. ROWLAND, ATl'OUXKY A COUNSEI.OU-AT-LAW. Otlli'o over Post Olllce. lloncMlalc. Pa. fillAIlLES A. McOAHTY, J ATTORNEY A COUXSEI.OH-AT-LAW. Special and prompt attention given to the collection of claim. OlUcc over Kelt's new store. HcmcMlale, l'a. P. KIMIiLE, JJ . ATTOKNKY A COt'NSKLOH-AT-LAW (Mice over the uost olllcu llonesilalc. Pa. ME. SIMONS, . ATTOKNKY A C'Ol'NHKLOK-AT-I.AW, Olliec in the Court Hom-e, Ilonesdale, Pa. KKIiMAX IIAl!Mi:b, ATTOKNKY A CIH'NSEI.OK-AT-I.AW. Patents mid pensions smcii red. (Mice in tho Scliuerhols'. liulldim: Ilonesdale. l'a. PETER II. 1LOFK, ATTOKNKY A COfNSKI.OK-AT-r.AW. Olliec Seiond lluor old SaviiiKS Dank Imlldln;.'. Ilonesdale. Pit. II M. SALMON, 11. ATTOKNKY A ( Ot NM:i.OK-AT-LAW (.lib i .NcM ilnor to est i flit e. I'oru.prl oictipleil bv V. 11. Din, ink k. llonei-ilale.ru Dentists. DR. E. T. BROWN, DENTIST. Olllee l'lrst flour, old SavlnastlJank build liij;, Ilonesdale, l'a. Dr. C. li. lUtADY. Dr.xxisT. llonefdale.IPa. Oiticj: Horns S a. m. to 3 p. m Any evening byjappoliitiuent. Citizens' phone. Si. Resilience. No. W-X Physicians. DR. II. 15. SEARLES, HONEHD.M.K, PA. (Mice and residence 101 t'ouit street telephones. Olliec Hours 2:00 to J:C0 and 11 t'U to fcUl. i). in nee The OLDEST Fire Insurance Agency in Wsyne County. OHice: Second iloor Masonic' Build ing, over C. C. .ladwin's drug , store, Ilonesdale. For New Late Novelties IX- JEWELRY SILVERWARE WATCHES Try SPENCER, Ths Jeweler "Guaranteed articles only sold." If you don't insure with us, we both lose. HITTINGER & Hi Insurance White Mills Pa. F 1 One of the best enulnned farms In Wayne county sltuutcd about three miles from Ilonesdale, Everyling Up-Male.g Over 85.000.00 nus been ex ended wltn- i the last rive years in bunmncs, tools ana improvements. 165 lafii ot which 75 acres are cood bard- u uniuer. Will bo sold reasonably. A Bargain. --For furtherjpartlculars en quire of W.W.WOOD, 'Citizen" office- OR SALE