The San Francisco Call. Newspaper, May 8, 1895, Page 3

R S e e e e THE SAN FRANCISCO CALL, WEDNESDAY, MAY 8, 1895. 3 AS TO DIRECT TAXES Attorneys Endeavor to Enlighten the Su- preme Court. OLDSTRAW RETHRASHED. Contentions as to the Con- stitutionality of the Levy on Incomes. CHOATE'S REPLY TO OLNEY. Assailants of the Tax Do Not Expect | to Lose Anything by the Rehearing. WASHINGTON, D. C., May 7. ond day of the reh casesin the Supr t began with Assistant Attorney-General Whitney in the midst of his ment for the reversal of the former opinion of the court on the | validity of the Federal tax on incomes de- rived from rents. All the seats on the occupied tc as yes- tors crowded the court- bench terday room. vere and 1ld in quoti iving facts s words and phrases his statement incipal argu- cases of the iment that could be med that the weight of evi- o the following account: word ‘“‘dut, had a legal The phrase “direct tax” had t was borrowed from political c personal property al-property tax and a ome tax were each duty within g of the constitution. A gen- 1 tex on all personal property at valua- npost or exi at all, adirect tax in political economy. A specific real-property tax h—A general income tax, properly 1, was unknown at the time of the 1 of the constitution, but was a n its meaning. 1—A specific personal property or ¢ income tax was a duty, and not a tax p the American system of taxa- > time of the revolution Mr. it was devoid of uniformity 1t of classification. It could only be shown thoroughly i gone throu those of Great Britain. quoted frequently from the report of cretary of the Treasury (Wolcott) He thout any form whatever. d uniformly din V n of counties. n to Wolcott’s report, saying that h ation was clear, and while he did not use the term meaning, he gave it the meaning of the political economists. He said there had been no income tax in any of the States prior to the convention unless it wasin in South Carolina Delaware, and concerning that State there | was apparently doubt. The system in use in most of the States was that of rating land for tax purposes at an annual valua- tion. Summing it up, he said the main result of the examination of the system in the various States had been negative in character, and had shown, first, that the systems were so different that it was hard to determine how they did pay their taxes, and secondly, that there was no settled meaning to the word “duty.” The same tax was a duty at one place and an excise at another. Mr. Whitney argued at great length to ghow that the present income tax isnota tax imposed on land nor on rents, because they are derived from land, but on prop- erty of all kinds accruing to the owner within the year irrespective of its source. In the question of uniformity he said he had nothing to offer that had not been given in the original hearing, but he re- peated some of these for the purpose, as he said, of setting the opposing side right as to the position of the Government. 3 Mr. Whitney contended against the theory of personal uniformity as intended by the constitution. He argued that so far as corporations are concerned the theory of inaividual uniformity would not be applied to them. In estimating the profits of an individual no account was taken of his time, he did not pay himself for managing his own business, yet cor- porations paid salaries to their officers for managing the business. In considering the matter of fairness of the exemption of incomes below $4000 Mr. Whitney asserted | that the court had never assumed to de- clare that Congress had in any case exer- cised its discretion in any matter unrea- sonable, and intimated that it never would g0 to that length. It appeared to be the undercurrent of Mr. Whitney’s remarks that the Govern- ment did not contend that the exemptions of certain classes of corporations were He referred to the authorities, how- ver, to show that the Supreme Court had held that individual corporations might be exempted by name even from taxation. Mr. Whitney finished at 2:20 o’clock 2 very brief peroration, and Attor- General Olney addressed the court. He “I fully appreciate the liberality of the court both in according this rehearing and in the matter of the time allowed for argu- I realize at the same time thatit rly taken advantage of merely ment. to reiterate c presented and that it should be availed of only for the new matter proven to be im- portant, but which, so far as the Govern- ment is concerned, has thus far been prac- tically untouched. The present posture of the case I conceive to be this: The con- tention of the Government at the former hearing was that the validity of the general income tax law could not now be drawn in question, being conclusively settled by re- peated adjudications of this court as well as by the uniform and long continued practice of the other departments of the Government. That contention has been sustained, though by an equally divided court, with two exceptions. One related to the income of State and municipal he income tax | | wise, of houses and grounds which are oc- he sec- | | law contemplates real estate as such as | | 1ld probably have been considered an | | the court deals with the case as if rents by going through | statutes of the thirteen States as he | 1 1796, in which that official states | the system was entirely_ different in ates, and some of the tes were h Carolina, for instance, lands | special exemptions being not now consid- ginia by a classifica- | ing incomes in respect of all sources of in- He directed special men- i direct taxes” in the legal | and it is entirely cox | who 'this year does not earn a cent and is | | | { and realty in the matter of taxation is securities, and presents a question which I do not ask to be reheard at this time. The other relates to rents on real estate, in respect of which the position of the court is that they are not embraced within the high scope of previous decisions. This conclusion is one of which I am unable to feel the force or appreciate the justice, and, as the question is of immense importance to the Government politically and pecuni- arily, I shall consume a few moments in respectfully urging its reconsideration. “It is important to bear in mind the pre- cise question. It is not whether there may not be tax on rents which must not be deemed to be a tax on the land producing them. Itis not whether a land tax meas- ured by rents or rented value may not be the most efficient and most scientific method of taxing land. The question is, Does this income tax law create a tax which is necessarily to be deemed a tax on real estate? “For answer the best source of informa- tion is, of course, the statute itself. The most superiicial examination shows that state tax assuchis intended by Congress. If it had been there would have been a provision for the appraise- ment, by rental value or otherwise, of vacant and unproductive land. If it haa been there would have been provision for the appraisement, by rental value or other- cupied as homesteads and for purposes of private enjoyment and pleasure. “The owner of vacant unproductive lands held for investment and speculation whether they be city lots or thousands of unimproved acres,pays nothing under this law on account of such lands. The mil- lionaire,with a half-million dollar mansion in the city and an equally costly residence by the seaside, pays nothing under this law. The manufacturer or the railroad corporation, the very basis of whose busi- ness is the interest in real estate ‘occupied and used therefor, pays nothing under this law on account of such real estate. It is impossible to contend. therefore, that this the subject of the tax imposed by it. If there could be a possible doubt on that point it is excluded by the enumeration of the subjects for the tax contained in sec- tion 28, Bach and every one is personal property,and so carefully is the distinction observed that when the clause imposing the succession tax is reached it is ex- pressly limited to ‘money and the value of all personal property acquired by gift or inheritance.’ “Such being the unmistakable purpose of the law, is it true that Congress has stultified itself? Is it true that it has managed to do the very thing thatit meant to avoid doing? That is supposed to be the result because a taxpayer’s rents are placed among the constituents of his tax- able income. But the intent of Congress is to be recognized and effectuated, if pos- sible, and its inclusion of rents in taxable income is not to be suffered to defeat that intent if any legitimate view of the statue will prevent it. Can such aview be taken? | I respectfuliy submit not only that it can be, but that it should—that it is the only reasonable and best way. The opinion of were the only subject of the income tax law. That is not, I submit, the true way of looking at the matter. But suppose it be adepted, what follows? “We then have a statute dealing with the landlords as a class, taxing them be- | cause of their vocation of landlord and measuring the tax by rents actually re- ceived. The statute, however, cannot properly be looked at in that way. Itis not a statute imposing a tax upon a par- ticular class of persons, namely, land- lords, in respect to a particular source of income, namely, rents. It is a statute— ered—it is a statute taxing all persons hav- comes. “‘rhe taxpayer pays this year according to his money-spending ability of last year, eivable that a man without a cent’s worth of property real or personal, may nevertheless be assessed on hundreds of thousands of dollars of in- come actually received by him last year. Yet this is the sort of tax which is called a tax on real estate for no other reason than that last year’s rents form part of the yard- stick by which this year's money-spending capacity is measured. “If the distinction between personalty made by the constitution itself—and that it is a necessary assumption of the argu- ment—where does this court get the au- thority to set it aside as a matter of form? No such authority exists. “It may be a tax upon personalty in the shape of rents as it is the same thing to the landlord pecuniarily as a tax upon the land itself. But landlords are not the only parties concerned. The whole people are interested, since to them it is of the first importance that the constitution should be respected in its entirety and that no branch of the Government should under- take to deal with any part of it as mere matter of form. Itis intimated that, log- ically speaking, if a tax on real estate is a direct tax so is a tax on personal prop- erty, and that if a tax on rents is a tax on real estate so is a tax on interest and divi- dends a tax on the capital producing them. “In 1796 the fathers of the Republic said: ‘Here is a constitution of govern- ment,’ not a metaphysical treatise. It de- clares certain taxes must be apportioned. The tax before us is not in its nature ap- portionable without violating every prin- ciple of taxation, therefore it is not a tax which is required to be apportioned. ““If this rule of 1796 were now to be fol- lowed the cases now at the bar would pre- sent no difficulties. In lieu of it, however, and the flagrant inequality of the working of the new doctrine being fully admitted, what we are presented with is the sugges- tion that it is not for current every-day use, but is to be applied only in extra- ordinary emergencies. What is the value of this suggestion? Legally speaking, nothing, of course. “I will not prolong the oral discussion. There are important questions, of course, to which I have not spoken, but they were either argued fully at the former hearing or have been completely covered at the present time by the able and learned argu- ment of my associate. I leave the case to the court, therefore, at this point, feeling sure of this at least, that if any considera- tion which could help save the Govern- ment the integrity of one of its most im- portant powers has failed to be developed, the failure cannot be attributed to any want of appreciation of the case, nor any intention not to give to it the most careful attention and study.” Mr. Olney concluded at 3:10 o’clock and was immediately followed by Mr. Choate, who began the concluding argument for the appellants in the case. Mr. Choate’s manner of introducing his remarks was strikingly peculiar. He began as if the middle of a sentence, or asif he intended to complete a sentence begun and untin- ished by either Mr. Olney or Mr. Whitney. “But,” said he, “if the court please, we are in a court of Jaw and the court of con- stitution and not engaged in a masquerad- ing performance. Nor are we a political assembly, as Mr. Whitney seemed to think, in whose presence his chief (Mr. Olney) might be proceeding for an amend- ment of the constitution to get rid of what he calls this effete doctrine of apportion- ment. “Why is it,” he asked, “‘that the country is holding its breath for the decision on the second hearing of this case? Why are the people from end to end of the country so eager to hear the definite and let us hope the final verdict in the case? The reason is found in the fact that the entire country is deeply concerned to know whether the safeguards which had been so dearly purchased by ourfathers were to be preserved to the present or future genera- tions or to be trampled under foot and de- nied to us.” Mr. Choate then began his real argu- ment, saying, as far as practicable, he would take up the question where it had been left off by the former decision. He did not intend to surrender an advantage gained by the former decision, and would regard it as settled and fixed that incomes from municipal and State bonds could not be taxed. With the point as to public bonds settled, all the conundrums in- volved were answered, leaving the political questions to take care of themselves. The decision meant that the court con- ceded the inherent rights of towns, coun- ties and States to borrow money, and that the Federal Government could not inter- fere with this right by crippling and weak- ening instrumentalities of their credit. Mr. Choate ridiculed the position of the Government, that a tax on rents was not a tax on land. The decision already ren- dered met this objection completely. A most careful brief had been filed on the question of direct taxation. The Govern- ment had made the best answer it could, and that answer was not much, and Mr. Choate added: “What is Mr. Whitney’s idea of direct tax? Obviously he has none. He said there was no such thing. Duties had always been synonymous with taxes.” It had been the fortune of the Supreme Court to decide great questions on narrow phrases. The constitution was a consti- tution of enumerations, not definitions. The constitution did not define a direct tax. At this point the court adjourned, and Mr. Choate will conclude his argu- ment to-morrow. NBUSED BY THE WHITES Indians Complain That Their Lands Are Taken by the Settlers. Threats to Kill the Poor Red Men Are Also a Cause of Bitter Complaint. WASHINGTON, D. C., May 7.—Captain J. E. Bubb, Fourth Infantry, acting In- dian Agent at Fort Spokane, Wash., sent the following dispatch to the Indian Bureau to-day: “‘Calispells is here complaining that his people in Calispell Valley are being abused by white settlers, who are taking their lands from them and threatening their | lives. He says they cannot stand it any longer and wants me to go there. The Sheriff of Stevens County has expected trouble there for some time. I do not knew the present status of these Indians or whether the department wants them to retain their lands, but some one should go there. I can hardly spare the time.” At the Indian Bureau it is stated that the Calispell, or Pen d’Oreille, Indians have been cultivating their lands in the handle of Northern Idaho for many years and that they are peaceful and civilized. In 1887 it was thought advisable to move them to another location and an agree- ment was made with them by which they were to go to the Ceeur d’ Alene reservation. This agreement has never been ratified by Congress, though repeatedly brought to its attention. In the meanwhile their right to their present farms is unquestionable. REVOLUTION N ECUADOR The Ranger Sent to Esmeralda to# Protect American Interests. All the Trouble Grows Out of the Transfer of a Warshlp to Japan. WASHINGTON, D. C., May 7.—The fact leaked out at the Navy Department to-day, after having been successfully hidden from the public for a week, that the United States steamer Ranger had been ordered from Buena Ventura, Colombia, on May 2 to Esmeralda, a port in Northern Ecuador, where she probably has been for the last four days, the voyage being only about 450 miles in length. This order was issued at the request of the State Department, where it was ctated the request had been made because the de- partment had been convinced by revresen- tations made by Americans having inter- ests in Ecuador that it would be wise to do so. No further statement as to the nature of the trouble in Ecuador could be gathered at the State Department, but from other sources it is learned that a revolution is be- lieved to be impending in that country as the outcome of the bitter dissatisfaction engendered by the use of the Ecuadorean flag to cover the transfer to Japan of the Chilean cruiser Esmeralda last winter. Some American corporations have large interests in silver mines and other proper- ties in Ecuador, and it was upon their rep- resentations that the State Department acted, although it has no assurance that a revolution has actually broken out. P _ A Correspondent in Dange: WASHINGTON, D. C., May 7.—Acting Secretary of State Uhl has cabled acting Consul-General Springer at Havana to im- mediately protest to the Spanish authori- ties against the trial by a military court of Manuel Fuentes, the New York World cor- respondent. The Consul-General has been enjoined to act speedily, as there is some apprehensions that Fuentes’ life is in danger. Consul Williams Is Mum. WASHINGTON, D. C.. May 7.—Consul- General Ramon Williams, who is on leave of absence from his post at Havana, called at the State Department to-day, and paid his respects to the Assistant Secretary. He declined politely .to discuss Cuban af- fairs with newspaper correspondents, or to say anything as to his own intentions. I e e Stewart Again Roasts Cleveland. WASHINGTON, D. C., May 7.—Senatop Stewart to-day wrote another open letter to President Cleveland, ‘“roasting’’ him for the letter he sent Governor Stone of Mississippi a few days ago. gt Condition of the Treasury. WASHINGTON, D. C., May 7.—To-day’s statement of the condition of the treasury shows: Available cash balance, $179,190,- 693; gold reserve, $91,680,976. MORTON AND SILVER, An Answer Made to the Criticisms of Mr. Cherry. ONE HISTORICAL POINT. “Behold the Beauties and Ad- vantages of the Double Standard.” LITTLE DEMAND FOR MONEY. Rather Pecullar Arguments Ad- vanced by the Secretary of Agriculture. WASHINGTON, D. C., May 7.—Secretary Morton has written a letter to James A. Cherry of Denver in answer to a letter from that gentleman criticizing some state- ments in the interview with the Secretary of Agriculture printed two weeks ago, which caused so much comment. It is as follows: From your letter of April 22, 1895, it appears you and I perfectly agree in the fundamental point—namely, that demand and supply inexorably regulate all values whatsoever, at all times and in all places. At what points do we begin to separate from each other and then g0 on to conclusions so utterly diverse? These points are only two—the first historical and the second logical. First—You assume certain propositions to be true of silver which are not historically true at all, but quite the reverse of true. You say for instance: “Until 1873 the chief use of silver was for coinage. It had other uses, but the demand for its coinage, purposes wes steady and constant.” On this point you have been monstr misinformed. The first Federal coins of were minted in 1794 and of gold in 1795. Their ratio was recommended by Alexander Hamilton and fixed by act of Congress. It was 15to 1. It was hoped thus to keep the two metals in equilibrio on the coinage, but they wonld not even come into equilibrio on that ratio, still less would they stay there. Only 321 silver dollar pieces were coined at the American mint in the entire vear of 18 | because the silyer was worth more out of coin- age than in it and worth more for export than for domestic money. What was the matter with those silver dollars? Nothing, only they were too valuable. May 1, 1806, there came an order from President Jefferson to the di- rector of the mint at Philadelphia: “That all the silver to be coined at the mint shall be of small denominations so the value of the larg- est pieces shall not exceed a dollar.” The reason given by the President for this order was “that considerable purchases have been made of dollars coined at the mint for the purpose of exporting them, and that it is probable further purchases and exportation will be made.” The coinage of silver dollars | thus authoritatively suspended at the Ameri- can mint was not resumed for thirty years. In these fe icts. which are official and unques- tionable, behola the beauties and advantages of a double standard—the unlimited coinage of both metals in an enacted and constant ratio | with each other—of two yardsticks of different lengths 10 measure cloth by in the same market. By the law ol 1834 the ratio was substan- tially putat 1 to 16. But this was going too far in the opposite direction. Gold was not worth 16 in silver in the markets of Europe. Consequently the international currentof the metals was for a time reversed, silver passing in preference abroad to liquidate the balances of trade and gold coming in small quantities to the United States where it wasmore than3 per cent dearer in silver than in Europe. By 1853 the immense disaavantages of a double standard had become 80 p'ain to all the think- ing people that Congress wisely determined to abandon the utterly futile attempt to secure the parity of the two ‘metals and to make gold the legal tender for debts except for sumsof $5 and under. In the second place, Mr. Cherry, as an in- stance of an historlcal assumption contrary to the facts and natural inference, allow me re- spectfully to call your attention to the use, in common with many bimetallists, so called, of the date of 1873 as to the time of the demone- tization of silver. Unless I am mistaken the silver dollar is not mentioned at all, one way or the other, in the act of 1873. All the de- monetization of silver, as I understand it, that ever oame about in this country happened in the law of 1853, after a full discussion and practically with unanimity when Congress introduced this subsidiary silver coinage, of which a nominsl dollar's worth weighed 6.91 per cent less than the sil- ver dollar, and also took away the legal tender quality of all silver in payment of debts of over £5 in amount. Second, you employ over and over again in your letter the two most common logical fallacies that enter into the speech of argumentative men everywhere, namely, put- ting cause into the place of effect, and assum- ing that because one thing happened after an- other in point of time therefore it was the result of that other. Let us look candidly together at the two or three instances of this taken at random. You ask, “What created demand?” and answer, “Use.” 1ask,inmy turn, “What created use?”’ and answer “Demand.” Why is it there is so little use of silver dollars in this country to- day, while there are millions upon millions of them Iying idle? Ianswerconfidently because there is no adequate demand for them. Have you not innocently but badly mixed up “‘cause” and “effect” in this case? Demand, in the commercial sense, is nothing but desire for something on the part of one man coupled with his willingness to pay something for it eatisfactory to the other who owns it. “Use” of that thing, no matter what it is, only follows the “demand” for it. You have helplessly put the cart before the horse. What is the sense of clamoring still for “unlimited coinage” when the treasury cannot get rid, by hook nor erook, of those already coined and lying in useless heaps? They are well minted, of just weight, nine-tenths fine, are legal ten- der for all debts, and bear the legend, “In God We Trust.” What ails them? Ianswer, andso must you, on reflection, there is no “demand” for them and therefore no “use” of them. ‘What more can the law do for them? Mr. Eckles, the present Comptroller of Cur- rency, has found it probable, by careful inquiry instituted through his department, that about 50 per cent of the retail houses of this country are doing business by means of checks drawn on local banks and cleared by the banks with very little use of coins. The relative employ- ment of these instruments of credit is con- stantly increasing through the multiplication of banks and otherwise; of course, also the quantity of coin money required to do the business of the world, or of any advanced country in the world, is steadily decreasing relative to the business done. Cruise of the Monterey. WASHINGTON, D. C., May 7.—The coast defense vessel Monterey arrived at Panama to-day from Acapulco, Mex. Her original orders were to proceed to Callao, Peru, but these are now subject to change in view of the end of the internal troubles in that country, and the fact of the sending of the Alert to San Juan del Sur, Nicaragua, left the isthmus unprotected, while the fact that arevolution in Colombia is still in progress will probably cause the Navy De- partment to detain the Monterey at Pan- ama for a time. ——— Cleveland Does Not Send Checks. WASHINGTON, D. C., May 7.—The re- port that President Cleveland has sent a draft of $500 to a family in Decatur, Ind., on the occasion of the birth of triplets, which were named for the President’s household, was pronounced to be without foundation at the White House to-day. Families in which triplets occur when the President has been notified that they bear his name, or the name of his family, re- ceive a courteous letter of acknowledg- ment, but no checks. et O TO BUILD TORPEDO-BOATS. There Will Be Great Kivalry Among Con~ wracting Firms. WASHINGTON, D. C., May 7.—The six gunboats for which plans have recently been approved by the Secretary of the Navy will be known as Nos. 10, 11, 12, 13, 14 and 15 until they are named by the Sec- retary. Itistheintention of the construc- tion bureau in preparing the specifications to have the new boats built in the least possible time, and it is considered that they ought to be ready to go into commission within fifteen months. The naval bill pro- vides that not more than two shall be built at any one yard, and some rivalry is likely among the firms securing the contracts to complete the boats as quickly as possible. Information received at the department indicates that there will be some very spir- ited competition among the different yards, as the firms competent of doing the work have asked for complete and early infor- mation as to the plansand specifications. g DECIDED AGAINST GRAHAM. He Is Not Entitled to a Valuable Tract of Land in Montana. WASHINGTON, D. C., May 7.—The Secretary of the Interior has affirmed the decision of the Commissioner of the Gen- eral Land Office in the case of Charles Graham against the heirs of Archibald Campbell and the Great Falls (Montana) Water Power and Townsite Company, re- jecting the application for confirmation to Graham of the valuable lands ing the tract involved. Graham claims he has acquired the lands by vested right, a con- tention overruled by the department. AP A MEN GATHERINE, Annual Session of theSupreme Council to Be Held at Milwaukee. It Is Sald the Order Intends to Found a New Political Party. MILWAUKEE, Wis.,, May 7.—The Su- preme Council of the A. P. A. will begin its annual session in Library Hall to-mor- row night. The committee on credentials held its first annual session to-day. It is expected that every State and Territory will be represented except Mississippi and New Mexico and the Indian Territory, and that upwara of 400 delegates will occupy seats on the floor of the hall. It has been generally reported that Su- preme President Traynor would take an emphatic stand in the council for the formation of a new political party. Mr. Montague, who edits Mr. Traynor’s paper, says Mr. Traynor’s position is that political wisdom lies in the members af- filiating with the party which will cham- pion the best of its principles and if neither of the old parties will do that and a new party is organized outside of the order which will embrace those principles in its platform he would counsel action with such a party and that it is time for the order to take decisive action along its line. The members of the association claim to be able to control the election in several of the States. They also claim to have in- creased their membership fully 500 per cent during the past year in New England. — ONE FOER HU Denial of the Application for a Writ of Removal. NEW YORK, N. Y., May 7.— Judge Brown, in the United States Circuit Court to-day, denied the application for a writ of removal in the case of Collis P. Huntington, president of the Southern Pacific Com- pany. who is wanted in California for violating the Interstate Commerce law, in having given a pass over the Southern Pacific Railway to 2 man named Stone. Judge Brown denies the application on the ground that the “‘indictment is fatally defective in not averring that any use was ever made of the passor any transporta- tion ever furnished under it.” The Judge holds the various provisions of the act itself and rulings and adjudications of the Interstate Commerce Commission leave no doubt whatever that the act is intended to deal with transportation and that nothing in the act makes criminal the mere issuing of free tickets or passes that are never used. A free ticket or a pass not used is mnot transportation and is not a preference or an advantage to the holder. In conclusion Judge Brown says: “Cases cited by the Government from re- ports of the Interstate Commerce Commis- sion show on examination that they are all dealing with ‘free carriage’ and ‘free transportation’ and net with mere free tickets. “This indictment, by describing a ‘free pass’ as writing, prevents any possible construction of the words of the indict- ment in an unlawful sense as free trans- portation, and as it does not charge any transportation it is not sufficient to put defefidant on trial, and therefore the ap- plication for removal must be denied.” e Yo et VIINGTON. IGNORANT OF THE CRIME. Dismissalof Charges Agajnst the Printers of State Bonds. CHICAGO, Irr., May 7.—Inthe United States District Court to-day Judge Bunn ordered a dismissal of the suit against Clarence C. Cheney and the other officers of the Western Banknote Company. The officers of the company were indicted last fall for the printing of the Mississippi State bonds, declared by the United States Treasury Department as being money. The Attorney-General of the United States regarded the banknote company as being ignorant of a violation of the law and recommended the discharge of tneindicted officers. ——— In a Deadly Battle. SERGEANT, Ky., May 7.—Wagoners have brought news to this place that the Gilley boys and Joe and Will Day met near their homes on Indian Creek, nine miles from Norton, Va., and engaged in a deadly battle which resulted in the death of three Gilley boys and the fatal wounding of Joe Day. Itis further reported that Will Day, one of the participants, is in the Wise County jail. " The two factions have been at war for some time. e Death of an Exz-Governor. ELIZABETH, N. J., May 7.—Vice-Chan- cellor and ex-Governor Robert S. Green died to-day in his sixty-fifth year. He was a delegate to the Democratic National Convention in 1860, which nominated Stephen A. Douglass for the Presidency. R Price of Shoes Advanced. BROCKTON, Mass., May 7.—Shoe man- ufacturers here have advanced the price of shoes 15 to 20 cents a pair. The increased cost of leather is given as the cause. STRIKERS ON A RIOT. Scenes of Disorder at an Illinois Steel Plant. ATTACK ON MACHINISTS. Foreigners Attempt to Force Four Hundred Men to Quit Work. FINALLY ROUTED BY THE POLICE During the Encounter Shots Are Fired and Several Seriously Injured. CHICAGO, Iin, May 7.— A serious strike occurred this morning at the Illinois Steel Company’s plant. Twelve hundred men threw down their tools and walked out. The strike resulted from a demand by the furnace men for an increase of wages. The company refused to grant the raise. The strike closed two blast furnaces, two others were undergoing repairs, and the remaining four were shut down un- til the conclusion of the strike, the company deciding that it was nnwise to attempt to run until the matter was settled. This action of the company threw in all about 3500 men out of work, none remaining in the yards except the watchmen and ma- chinists. The strikers were at first disposed to be orderly and peaceable, but later affairs took on an ugly aspect and it was found necessary to call on the police to drive them out. Shortly before 6 o'clock to-night a crowd numbering about 1500 men forced their way past the watchman at one of the gates and proceeded to take possession of the company property. They marched first to where some of the laboring men were still at work and compelled them to quit work. Not much trouble was ex- perienced with the laborers, but when the strikers reached the machine-shop, where about 400 machinists are employed, they met with a different reception. The ma- chinists have a scale of their own, and the fight of the other men made no particular difference, and they refused either to quit or to allow themselves to be driven out of the yards. The strikers, who for the most part were Poles and Hungarians, made several attempts to pergnade the machin- ists to leave their work, but finding them unsuccessful they began an attack on the machine-shop with stones and such mis- siles as they could find. The machinists for the most part stood their ground and gave the strikers as good as they sent. The fight was growing warm and broken heads and bloody noses were growing very common when the police arrived. They were under the com- mand of Captain Jenkins, who at once made a charge on the mob with his hand- ful of officers. The strikers at first refused to give ground and the police used their clubs This did not have the desired effect and Captain Jenkins ordered his men to draw their revolvers and fire over As soon as this was done the mob broke and fled wildly from the premises of the company. The fight only lasted a few minutes and there was no freely. their heads. more rioting. Twenty-eight men, who were leaders in the attack on the works, were arrested and locked up charged with rioting. They are all Poles and Bohemians. During the riot in the yards four men were painfully injured. Jack Shepard, a machinist, was struck on the head with a hammer and badly hurt. Edward Shaska, a striker, was badly bruised. Policeman Leinecker was hit with a coupling pin and had his head badly cut with a brick. DECLINES TO INTE;ZFERE. Governor Morton Will [Execution of Buchanan. ALBANY, N. Y., May 7.—The following answer to the telegram sent by District Attorney Fellows of New York to Governor Morton in regard to the Buchanan diffi- culty was given out to-night: “Hon. John R. Fellows, District Attor- ney, New Yorl Governor Morton de- clines to interfere. If Buchanan’s lawyers have neglected to perfect the appeal of the case it is not appealable. The matter had better be disposed of by bringing him be- fore the court in accordance with section 503 of the Code of Criminal Proceedings. ‘T. B. Hancock, Attorney-General.”” NEW TO-DAY. ALL BLUE SIGNS know of our offer on Spring and Sum- mer Cloth- ing, at “ Pri- ces Without Profit ” — but when you start in to patronize be sure you don’t go wrong. A block and a half from Market street, on Sansome, between Bush and Pine. Bright Blue Signs—Look out ! 121-123 Sansome St., BET. BUSH AND PINE. Not Delay the NEW TO-DAY. IT HAS KEPT US BUSY. The demand for Tan Shoes has been big—in fact, larger than we ever exp: his week we have received our entire s Summer Shoes, both in tan and black, embracing all the late and pretty shapes. THE SAME LOW PRICES ALWAYS PREVAIL. Men's $2 50 Calf Shoes That Are Risht, In tan and black, and all style toes. s, and arg hese Shoes are shapely faultless fi 5 have beed only to be compared Shoes paying double the pri That All Solid t’hild‘s' Dollar Shoe IN TAN “ND BLACK, Made on new perfe; give the utmosts Sizes 7 to 10 Sizes 1110 s Those Stylish One Dollar 125 Tan Oxfords. Their equal is_yet to be found. Made in twe styles only, the new parrow square and the stylish pointed toe, all sizes and widihs. N\ Country orders filled by return mail or express. Our new illustrated ogue sent free, postpaid, to any address for the as SULLIVAN'S SHOE-HOUSE, 18, 20, 22 Fourth Street, Just Below Market. WHEN MEDICINE FAILS, We positively guarantee to cure all forms of Nervoas Debllity, Nervousness, Forgetfulness, Confusion at Ideas, Languor, Dyspepsia, Lame Back, Rbeumatism, Kidney and PBladder Com- plsint and the many evils resulting from secret Dabits in youth or passionate excesses in maturer years; we wigh to say that the marveious inven- tion of Dr. Sanden is en absoluie, positive cure, It kas cured thousands every year aiter all Known medicines and 0:her treatments save failed. Tha TN 7 fact is that MED1« 3 ,CINES NEVEHR A nor EVER oubles, as you (& well know if yeu i/ are a sufferer ana have tried thema ELECTRICIT Y— system, and to cure IT MUST BE RI We guarantes our patent improved Electric Sus- pensory to DEVELOP SERUNKEN OR UNDE- VELOPED OKGANS or no pay. In short, wa faithtully promise to give every buyer the erowns ing triumph in medico-electri ence, and have placed the price within the means of every sufferer. ‘The book, “Three Classes of Men,” free by maily olossly sealed. Address: SANDEN ELECTRIC CO,, Gounoil Building, Portland, OF HOME FOR THE CARE OF THE INEBRIATE (Tncorporated 1863). 2000 Sockton Nt., N, F, Cal. HOSPITAL FOR THE TREATMENT OF including Alcoholism and Drug Diseases resulting therefrom: observation of Terms $10 to $25 Extracts from the report of the Grand Jury, filed December 8, 1894: «While public institu- tion, in consequen: ade to us by the 'press and others, thorough made of the conduct of the ilome and as & result of our investigations we are satis- fied that the same has been and is being properly managed. The charges made to us of improper treatment of the patients were not sustained.” Trusteos_H _J. BURNS (President Inebriates, WM. MARTIN (Secretary), . . 8. - YER, WM. G. BAUGER, J. K, OYER, JOHN DENSMORE, J. W. BUTTER~ WORTH. For further information address The Superintendent and Resident Physician. Downtown office— Room 18, sixth floor, Mills building, 3 to 4:30 P. M. daily. 3 Any Man Who Suffers Or is just beginning to suffer from the weakening effects of emissions or Address DR. COOPER, n Francisco. All Private Diseases Cured. ] When ordering please mention “Call.” Bitters J The Great Mexican Rems Gives health and strength tne Bexuai Organs- Depot, 323 Market St,, S, Fu