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THE SAN FRANCISCO CALL, MONDAY, MARCH 14, 1898. IT WOULD INCREASE ALL TAXES How Revenues Must Be Raised in the Event of War. Many Articles, Including Tea and Coftee, Upon Which the In= ternal Revenue Taxes Would Be Higher. NEW YORK, March 13.—A Washing- ton special to the Herald sajy In- creased taxation and another bond is- sue will be necessary if the United is to go to war with Spain. In than a week fully one-fifth of the $50,000.000 appropriated by Con s for national defense has been expended and pledged for emergency contracts. yments on contracts which have been made and on ethers which & to follow will be extended over several months and if the country stops short of war it is possible that not all of the $50,000,000 will be paid out, and in that event the present revenues of the coun- try will be sufficient to gradually fill up the hole in the treasury cash bal- ance made by the preparations. The whole treasury situation was gone over at a conference at the White House a week ago when it was de- termined to ask for emergency appro- priations. It was then suggested that | Congress be ked for $100,000,000. Sec- retary Gage opposed this, however, on | the ground to be taken that if so much money W n the treasury in addi- cial circles that the President is in- formed fully about the state of mind of the country and Congress. He knows the country does not want war just for the sake of fighting another ation; and, on the other hand, that business men in this country would ap- plaud if it became the choice between war and pusillanimity and war was chosen. ” Happily, so far no restraint is neces- sary against a wanton fight, and also happily, the alternative of war or pu- sillanimity is not presented yet. The President and Cabinet are looking it all over and assume that Spain will offer reparation if the Maine was blown up through the insecurity of Ha- vana harbor. They are bound to as- sume that the rushing into print of Captain Peral of the Spanish Board of Inquiry may be indicative of stubborn- but they are willing to excuse that by ng it may have been done without ¢ ial sanction, or that Spain may have found it nec y for tem- porary purposes to counteract advance s of the Gov- tion to the current expe ernment additional t of bonds would be ne: that the treasury could spare $50,000,000 | from the cash balance without danger, | but he opposed giving any more for | preparations than tk as pointed | out that 000,000 would be sufficient | to enable the President to begin the | work of providing for national defense all along the line. If the crisis should pass without war nothing more would be needed. On the other hand if should occur, or even if the war s be prolonged without actual | tilities provision could be made for | her expenditures before the first | ypropriation was exhausted. Should | war with Spain follow immense expen- | 1 along the line would be | nd steps would have to be | ditures ecessary a taken to meet them. B Secretary Gage and the leaders | in Congress are fully alive to this fact, Rep sentative Dingley, Chairman of the House Committee on Ways and Means, told me that while it was re- alized that war or preparation expen- ditures much in excess of $50,000,000 | would make it nece ¢y to provide more money either by an issue of bonds or by additional taxation no steps in | either direction had vet been taken. He said he had not formulated any pian of | additional taxation. If war is declared there will be little | in putting the treasury in po- | )n to meet the demands made upon | It is realized that at the beginning /il War a serious mistake was | increasing taxation at the | star not until the war had been in progress for three years that the revenue of the Government was brought up to what it ought to hav been at the start. This delay in taxa- tion made sales of bonds more difficult and was responsible for much deprecia- tion in greenbac As Mr. Dingley | said to me this afternoon, if war taxes should become necessary, most of the additional revenue would necessarily | bave to be raised by internal taxation. | There are only a few articles on which | additional customs revenue could be | raised. Chief among these are tea and | coffee, which are now on the free list, but from which $20,000,000 to $30,000,000 | a year might be obtained; a few addi- | tional millions might be raised by tak- | ing other articles from the free list or | modifying the existing taxes on others, | but it is on internal taxation that the principal reliance would be placed. Whisky is now taxed fully up to the highest revenue-producing point, and nothing more can be realized from this source, -but the addition of $1 a barrel to the present tax on fermented liquor: would increase the revenues from that source by at least $30,000,000. An in- | crease of $100,000,000 could be realized from tobacco and cigars without rais- | ing the tax even to what it was after | the close of the Civil War. During the | Civil War considerable revenue was re- alized from the stamp tax on legal in- struments, such as deeds, and from commercial papers, such as checks, drafts and notes, for these taxes would doubtless be among the first to be re- sorted to in the event of war revenues | being needed. Proprietary articles, such as patent medicines and perfum- eries, which were heavily taxed during | the latter part of the Civil War, would | yield considerable money, and large amounts could be realized very promptly by the imposition of special license taxes on various kinds of man- ufactures and occupations, though such taxes would be very unpopular and might not be imposed except as a last resort. Taxes on transfers of stocks and bonds, such as were proposed when the Dingley bill was under considera- tion in the Senate, if not made so high as to seriously interfere with business of this kind, would be a lucrative source of revenue. Most of the Euro- | pean countries impose such taxes reg- ularly in time of peace, and in the event of war they would be strongly urged in Congress. In view of the de- cision of the Supreme Court, the in- come tax, such as was then proposed, would have to be apportioned among States in proportion to their popula- tion, and this would impose such un- equal burdens on poor States and wealthy States that it would not be im- posed by Congre: McKINLEY NOT SEEKING HOSTILITIES Continued from First Page. President of the United States will be the report of the court. When the President acts it will ‘be the country that acts, and that is why the Presi- dent wants judgment to halt until the facts are known. I fancy from vigor- ous expressions I have heard in offi- | can | us about the Maine, what then? facts showing an external explosion, | and that it is as the Herald has pub- lished. But until the report comes, the President’s mind will be left open. No living man, the Cabinet s y could be expected to map out a rigid line to be followed. The temper of Congress and the temper of the people must be taken into consideration. It is found that a proposition looking to the compulsion of peace by joint inter- ntion in Cuba of the United States and England had been considered. I found that friends close to the Presi- dent had cases out of vossibilities, in which ar- bitration might play a part. -Great stress has been laid on the favor with which international arbitration, as a means of avoiding war, regarded in this country. This may yet figure in the official correspondence and I am not permitted to give the view enter- tained as to its possible acceptance. Then there is a question as to what shall be done about the Cuban question. The Herald has repeatedly shown the view entertained here at this time that war must end, but that is merely a condary or kindred proposition pre- dicated on the assumption :that “Span- | iards blew up the Maine, and that in- ternational friction or worse is to fol- low when we officially disclose it. The Cabinet is not united on any pelicy that be made contingent. on any out- come of the Maine ter. If we must have reprisal then the recognition of the independence of Cuba will come and that will probably be a casus belli. But if Spain satisfies The country is back to the old position that it occupied a month ago. grounds are we to interfere? On a hu- manitarian ground? This question was asked me and he who asked it went over the whole question of the recon- centrados and compared it with the Ar- menian trouble, which set the whole civilized world aflame. He inquired whether we were to go ahead to right abuses, heart-rending beyond descrip- tion, though in the face of a certainty that we would have war on our hands; when the civilized nations of Europe held their hands off the Armenian ques- tion because war would have followed interference. And then if we interfered what were we to do with Cuba when Spain was driven out. Were we to an- nex the island or were we to have an- other revolutionary republic at our doors? These questions are perplexing. Who will answer them? The conclu- sions 1 draw from my conversations with men whose views go to make up this dispatch are that the President vields to no one in patriotism, but that we will have no war of our own seek- ing. He will do all in his power to avert it, always looking for guidance to the American people, and shunning all suggestions be they peaceful or war- like that would compromise dignity and honor. PLACING MINES IN PORTSMOUTH HARBOR. Plans for a Submarine Defense System Being Carried Into Effect. PORTSMOUTH, N. H.,, March 13— Plans for the placing of submarine mines for Portsmouth harbor have been mapped out, and a large force of men has been at work near the fortifica- tions all day. It is claimed, however, that these mines will be of little use, owing to the depth of water in the river, this being over ten fathoms in the channel, from the entrance at New Castle to within a short distance of the navy yard. Hundreds of men have visited the navy yard during the last week to en- list, but as there is no enlistment bu- reau here valuable men have been lost to the navy. A request will be for- warded at once to the Navy Depart- ment for the establishment of such a station for the enlistment of men from Maine, New Hampshire and Vermont. L e Working Day and Night. BETHLEHEM, Pa., March 13.—The Bethleherh Iron Company has recelved orders to rush all Government workyet unfinished on the 10 and 12 inch guns and carriages, and. the force of skilled mechanics in all departments are workigg day and night. e To Cure 2 Cold in One Day Tuake Laxative Bromo Quinin> Tablets. All ts refund the money if #t fails to eure. The genulne has L. B. Q. on each tablet, manufactured hypothetical | On what | hase = = [ © BRIGADIER-GENERAL WILLIAM M. GRAHAM, U. S. A., Commanding the De- partment of the Gulf, with Headquar ters a Naval Office New of a Special Will Select Call Office, Riggs House, ‘Washington, March 13. | To-day, unlike last Sunday, when the published statements of the desire for | the recall of General Lee and the pro- | test of the Spanish Government against | sending war vessels with relief supplies to Cuba caused much excitementamong official circles, was comparatively qui- et. There had been no information | bearirig on the doings of the Court of Inquiry on the Maine explosion received during the day or any other dispatches | calculated to cause conferences between | the heads of the various departments. | There were a number of experts of the 3 War Department ordnance officers at their desks for a short time during the morning to attend to some pressing matters, while at the Navy Department | the board on auxiiiary cruisers held a final meeting preparatory to the de- parture of the special board to New York. Secretary Long was at the Navy De- partment for a short time. He stated late in the afternoon that there was no news of any nature for the press, and added in response to a specific inquiry that nothing had been received from the Court cf Inquiry. The Board on Auxiliary Cruisers met t Atlanta, Ga. JORK IN SIGHT FOR THOUSAND Extent of the War Pre- parations on This Coast. Contemplate a New Dock, Channel-Dredging and a Battle-Ship. Millions of Dollars to Be Expended Here for National De- fense. Special Dispatch to The Call. Call Office, Riggs House, ‘Washington, March 13. The Naval Affairs Committee has de- cided to adopt the recommendation contained in the report of the Secretary | ployment to hundre | ence to the propasition to provide one | geons and of the Navy and will establish a plant | for the manufacture of gunpowder of all kinds, black, brown and smokeless. | It is estimated that the cost of such a plant would not be more than $100,000. The estimate submitted by the Navy Department was $93,000. It is probable that the new powder factory will be lo- | between | cated on the Potomac River, ‘Washington and Indian Head. The reasons for the establishment of a Government factory appeal strongly | to members of Congress, especially at this time. The statements made by Congressman Hilborn some time ago, declaring that we were “shy” on gun- powder, and the criticism of the Con- gressman made a few days later by General Lew Wallace, have resulted in the determination to build a Govern- ment factory. The statement made by Hilborn was thought by General Wal- lace to be ill-timed and {ll-advised, but it appears that the California Con- gressman has been completely vindi- cated. It has been brought to the attention of members of Congress that while the Government is now seeking to buy smokeless powder at eighty-five cents a pound, the same article is produced in Europe for forty-five cents. The difference in price goes to the Ameri- can manufacturer, but the question of cost is not the principal reason for the Government making its own powder. It is feared that the Dupont and Call- fornia factories have not the capacity to supply a sufficient amount in case of war. It is believed that the Govern- ment factory could be erected and in operation within a few months, in time for the present emergency. It has also been practically decided by the Naval Affairs Committee of the House to provide for five new docks, at the following points: Portsmouth, N. H.; Boston, League Island, Algiers, La., and- Mare Island. The Call corre- spondent understood to-night from a member of the Naval Committee that although at the meeting held yester- day a question was raised as to a suf- cient depth of water at Mare Island, Boston and League Island, the state- ments made by Commodore Mathews will not influence the committee to take adverse action. Congressman Hilborn explained to his associates on the committee that as far as Mare Island was concerned a channel could be dredged through the shallow part of the bay off Pinole Point (popularly known as the “Po- tato Patch”) before the dock was com- pleted. It is estimated that this chan- nel, thirty feet in depth, could be dredged for $200,000. The first thing necessary will be a preliminary survey and the work coul@ be completed in one year, while the dock itself could not be completed in less than two years. Con- gressman Hilborn is of the opinion that all five docks will be authorized and that they will cost about $1,500,000 each. This, with the appropriation of $6,000,- 000 for a new battleship to be built on the coast (probably by the Union Iron ‘Works) and the $200,000 for dredging a channel to the new dock will give em- | $1,500,000 | isting of men. and Congress- | avoring to induce | Both Senator Pe man Hilborn are en the ordnance department to award | some of the contrac for gun carriages and projectiles to California firms. Mr. Hilborn will take advantage of this favorable opportunity to press his bill providing for the erection of a gun plant at Benicia. The Naval Affa Committee will meet again to-morrow, but it is not ex- pected that the « tion of docks will be considered at meeting, for the committee has invited Secretary Long to appear before it to-morrow in refer- hundred and five additional ‘engi as well as additional paymasters, utenants. Chief Engineel that a large additional zineers is absolutely neces- the vessels that will soon be in commission. He appeared before the committee erday and in making his argument read a letter from Secre- tary Long indorsing this recommenda- Melville force of e sary for tion. The committee, while anxious to adopt Secretary Long’s suggestions in the pr & ergency, is fearful that a provision f more engineers, pay- masters and surgeons will renew the dissensions between the line and the staff at a time when the naval per- sonnel bill seems satisfactory to naval officers and when there seems a pros- pect of its passage. However, it seems to be the general sentiment among members of the Naval Affairs Commit- tee that the jealousy between the line and staff should not be permitted to | stand in the way of the urgent request of Secretary Long. To sum up the situation it appears | that in a few days the naval committee will report a biil for three battleships at $6,000,000 each, five new docks at ea a gunpowder factory and a large increase in engineers, pay- masters and surgeons, beside tweflty new lieutenants. It is believed that a | large number of torpedo boats also will be provided fc SPAIN'S COMMISSIONER | VISITS THE PRESIDENT. Sounding This Government as to How Spanish Concessions Would Be Met. NEW YORK, March 13—The Her- ald’s Washington correspondent tele- | graphs: I learn to-night that Senor | Juan Ceballos, a Spanish resident of | New York, who recently was appointed special reciprocity commissioner to the United States by Spain, called at the} ‘White Hor yesterday and suggested | to the President the possibility of a | settlement of the Cuban question by Spain conceding complete autonomy to | the island and maintaining merely | nominal sovereignty. Senor Ceballos informed the President that he had no | authority from Spain to make this | proposition and offered it as an unoffi- cial suggestion of means of settling ex- difficulties. The President | listened to all he had to say, but gave | him no assurances. Officials here think that it may be | possible that the Sagasta ministry | wishes, without committing itself to any definite policy, to sound the United States for the purpose of learning whether a more liberal scheme of au- tonomy would meet with a more favor- | able reception than the one already | tried received. FORT PICKENS A SCENE OF GREAT ACTIVITY. PENSACOLA, Fla., March 13.—Fort Pickens, which guards the entrance to | the harbor on the east side, is a scene | of great activity just now. New 6 and | 8 inch rifle guns will be mounted on it. | The big disappearing guns are in posi- | tion, and it is learned that the troops at Fort Barrancas are under orders to prepare for practice with them, which is expected to begin within the next ten days. Large quantities of ammu- nition have been received at the fort, and more is on the way. The Pensacola division of the naval militia has just received from the Gov- ernment a splendid 10-inch Hotchkiss rapid-fire gun and a full outfit of cut- lasses, ammunition, etc., and the men are ready to begin practice. —————————— NEWSPAPER THIEVES. A reward of $10 will be paid for the arrest and conviction of any per- son caught stealing copies of this paper. JAPANNEEDS | United States. in Assistant Secretary Roosevelt's room during the morning. There were pres- ent, in addition to the Assistant Secre- tary, Chief Constructor Hichborn of the | Bureau of Construction and Repair, Captain Frederick Rogers of the Naval Board of Inspection and Surveys and . | Captain O'Neill, chief of the Ordnance Bureau; Lieutenant Sargent, recorder | of the Board of Inspection, and Lieu- tenant Peters of the Naval Intelligence Bureau. Lieutenant-CommanderJ.D.J. Kelley and Naval Constructor Tawresey, the latter now on duty at Cramps’ shipyard, were expected, but their or- ders to attend had evidently arrived too | late to permit them to @¢ so. Each of | the bureau chiefs present was able to { give the board some information inci- | dent to the work that may be required uis Ito Intimates That His heandite | to fit out any ships that might be ob- tained. Several of the members of the Country May Soon Be | board as originally appointed to look AN | intc the matter are unable to leave the city at the present time, so it was de- termined that a special board, of which Captain Rodgers will be president, should be designated to proceed to New York to-night to undertake the work in hand. An office will be opened at 26 | Cortland street, New York City, to- | morrow morning, at which owners and Will Not Part With Any That Are Now Under Construction. Says There Are Critical Conditions Elsewhere Than On the West- ern Continent. | agents for ships will be invited to make | fheir proposals for turning over to the | navy such vessels as are of value for | conversion to war purposes. | “The naval officers say there will be | no difficulty experienced in obtaining all vessels that are desired, as there |are hundreds available. Thanks to | the work of the naval intelligence office the department keeps in close touch Copyrighted, 1898, by James Gordon Bennelt TOKIO, March 13.—I visited Marquis Tto to-day and asked him whether the Japanese Government would sell the cruisers Kasagi and Chitoz to the The Premier hesitated - \CONVERTIN CRUIS Time in Forming the Captain Rodgers the President | now under way. | United States is a nation above all oth- | a moment, and replied: ‘ “I will make inquiry of my naval col- league, but I think I may say that Ja- pan prefers to get possession of all the ships building for her as soon as possi- ble. Officers have already. been ordered | to bring the Kasagi and Chitoz to Ja- pan, and the builders have been re- quested to hasten their completion.” After a pause the Marquis continued | slowly and impressively: | “News of the last few days indicates | a critical state elsewhere than on the Western continent, and we consider it | only prudent to continue our prepara- | tions for the national defense which we | had the forethought to begin a long | time ago. I hope the people of the United States will not take offense at | Japan’'s unwillingness to part with : these cruisers. I have always appreci- | ated their kindly feeling for Japan. The ers where public sentiment absclutely | controls the national policy, and for | that reason I wish to have the people | there understand that Japan retains | the Kasagl and the Chitoz, not from lack of willingness to oblige the United States, but because she needs them her- self.” “In case of war between the United States and Spain, Your Excellency,” I| asked, “will Japan allow warships of | both belligerents to take ccal at Japa- nese ports or refuse it to both?”’- “That opens & long vista of possibili- ties,” he replied. “Some authorties con- tend that coal, and even® provisions, should be contraband of war, as both are necessary to maintain hostilities at sea. Whenever war is declared between two or more powers, Japan, if neutral, will bear in mind in deciding the coal question, the manner in which her de- cision will affect all the belligerents and her own interests.” I learn on unquestionable authority that Japan is a party to negotiations now going on between England and Russia at St. Petersburg, and also that while no alliance exists between Eng- land and Japan they have a definite understanding, and are acting in har- mony. A high diplomatic official said to me to-day! “You may say positively that Japan will back up England against Russia, and if England maintains a firm atti- tude all immediate danger of war is past, unless Russia is resolved to fight at once. In view of England's great superiority at sea and her possession of all available coal in Eastern ports, Russia will probably take a concilia- tory course for the present.” I learn that Japan has received a ca- ble offer from England for all warships building for her in English private yards, consisting of three 15,000-ton bat- tleships and three first-class armored with the construction of all craft that could be utilized in the event of hos- tilities, and just now it has a record of forty such ships of all sizes and classes which will be inspected and examined if their owners desire to part with them. A number of these are vessels which have been constructed under the subsidy act of Congress and are en- gaged in carrying the mails. The ves- sels to be examined will include all classes, from liners like the St. Paul to ocean-going tugs, which can be of very material service for a number of purposes. Tonnage, draft, speed, con- ditions of boilers and machinery and other attributes will figure in the thor- ough i ection which will be under- taken by the board before any charter- ing or purchasing is recommended. Both the ordnance bureau and that en- gaged in the work of construction and repair are ready to take their part in fitting out and equipping such vessels as may be acquired. At the Fort Washington factory ADVERTISEMENTS. DUN’T Let WHISKY get the BEST e of you, GET the BEST of WHISKY, which Is the GENUINE DISTILLERY BOTTLING OF PEPPER WHISKY. Bottled and Distilied only by 1 JAS. E. PEPPER %00, Lexington, Ky. Under the sama FOR- MULA for more than 100 YEARS; is. inteed ABSOLUTELY the PUREST and BEST in the world. SAMPLE CASE $15 Sent on trial, which, If not_satisfactory, can be retumed and money will be refunded. CARROLL & CARROLL, 306 Market Street, cruisers of about 10,000 tons each. The offer has been refused. 7 Sole Agents for the Pacific Coast. WILL CASH PEPPER COUPONS. 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