THE MORNING OKEGOSIAS. TUESDAY. JANUARY 13, 1903. INCREASE OE CONVICTS PEXITEXTIARY SUPERINTENDENT MKJES BIENNIAL REPORT. Number Grow From 278 to 300 J. D. JLee Recommend Starting Prion Farm and Other Reforms. SALEM, Or.. Jan. 12. (Special.) The bi ennial report of Superintendent J. D. Lee. of the Oregon Penitentiary, shows that during the last two years the number of convicts In the penitentiary has Increased from 27S to 300. The earnings of the Insti tution have amounted to I2S.370 92 for the 21 months, ending September 30, 1902, and at the same rate the total will be over 132,400 for two years, as compared with 526,700 for the preceding term. The report gives a full account of the management of the institution and of Its needs. The only in timation that any friction has existed be tween the superintendent and any of his subordinates Is contained in the closing paragraph, which says, among other things: "I wisXalso thank all officers and emploves who have been In harmony with my policies and who have earnestly endeavored to carry them forward to a successful completion." The language shows that there have been some whose , -,,. cn nut nf hnrmonv with the superintendent that he "did not feel like thanking them. The report recommends that more land be bought lor agricultural and fuel-cutting purposes, that arrangements be made for establishing a lighting plant at? the prison to furnish light for other Institutions, that the convicts be employed on the public roads where practicable, that sal aries be raised to correspond with the In crease in the cost of living, that a braco of bloodhjunds be procured, and that the law be amended so as to make the super intendent, and not the warden, respon sible for the safekeeping of the prisoners. Extracts from the report follow: Propi-psn In All Department. Permit w to say, nrst. that all our depart ments hev been characterized by a steady and marke." improvement. Unusual outlays, have been required in some directions, but cash earnings have Increased, and new im prove nts have been made, of all which I will alt more fully under appropriate head ings. Necessity for More Land. My mature Judgment Is that the state should not delay the purchase of both clear and wood ed lands. The limited amount adjacent to the prison (about 120 acres) prevents the lpaugu ratlon of a thorough system of rotation of crops so essential to good farming. In fact, we need all the near-by lands for gardening. If we Include potato and corn crops under that heading. We have been continually ham pered on account of lack of land. "We can not farm on a Bcale to Justify the purchase of a full farming outfit, and have had to work at a disadvantage In every direction, almost. I have rented some additional land, which, to some extent, improved the conditions. The purchase of an adequate tract of land, not too distant from the prison, cither in Marion or Polk County; -would at least serve three good purposes: First, it would contribute very large ly toward the self-maintenance of the Institu tion. Second, It would furnish employment to a large number of men In agricultural pur suits and In providing products for the Insti tution, thereby overcoming the embarrassment of competition with free labor: wo are our own market. Third, it would afford an oppor tunity of making at least one classification of the men. The younger, less hardened, and more studious, especially short-timers, could be selected for the farm camp. This camp, it would be my hope, would expand Into a reformatory and educational department, -with permanent and up-to-date buildings, whore un usual facilities would be afforded for the ad vancement of the classes which I have Just mentioned, buth in mental equipment, moral uplifting, and thorough drill In modern meth ods of agriculture, horticulture, stock-Talslng, etc A Model Farm. "With such a body of land the mostj progres sive and successful methods of husbandry could be employed In all Its diversified branches. The proceeds therefrom In the way of grains, fruits, meats, fuel, etc.. If in ex cess of the needs of this institution, could be distributed to some other. If so desired. It may be well for the state to keep In view the final location of the main penitentiary. The present one Is not desirable for keeping a large number of men. Gradually, and without much outlay at any one time, modern build ings could bo provided at some suitable place. the present location to remain a central power and pumping station and industrial department. It Is advancing In price, and will, no doubt, continue to do so for some time. At the last session of the Legislature I urged the ways and means committee to make a con tingent appropriation for the purchase of land, final action thereon to be at the discretion of the state board. The advance in the price of -land since then would represent quite a profit. Paying ground rent is exceedingly poor pol icy. In a few years it will aggregate the price of land, and yet the state will be without land. Most of my leases have been paid by work in clearing land. In that way we secured the use of the land and had the -wood for fuel. At present prices we use about $3500 worth of fuel annually. In ten years that alone would amount to $35,000. "Wooded lands can be bought very reasonably. Less than half this amount would buy enough land to furnish the wood supply for that-period. The remain der would probably pay the transportation. If too far to move by team. The trees should be grubbed. This we do by pulling them over 'with horses, using pulley and tackle. The land thus cleared is easily made ready for the plow, and its value enhanced. Such Invest ment in land and utilization of convict labor -would meet the wood bill and place the state in possession of a more valuable tract of land than the original purchase: or, put It this way: buy timber land Instead of wood, -using only a portion of the money necessary therefor: take the needed fuel therefrom, grubbing at the same time, and have the land left as clear gain. Convict Labor on Roads. From various quarters come many inquiries relative to the value of convict labor In con structing public highways. Under certain con ditions It can be used to advantage. Most of the roads In the "Willamette Valley can be easily and quickly graded with machinery, when they are well packed by heavy roller of by travel; the main work is to get gravel or broken stone upon them. For this teams are required. Picked trusties, under a competent roadmaster, can carry forward all phases of this work to good advantage. This method does away with the expense of guards and in sures most effective service. "Ven the work is remote from the prison camps can be main tained. After the roads are completed a little -work in keeping the drainage perfect, prompt ly filling all depressions, and occasionally crowning the roadbed -with new gravel, will eufflce to keep the roads In good order. My last report gave a tolerably minute account of our road operations, a summary of which is: Twenty-five hundred dollars -was appropriated for road building: two wagons, two wheeled scrapers, two hand ecrapers, a plow, and ' other necessary tools were purchased. The county loaned us a grader: a roller was hired. More than two miles of road have been con structed and there remains of the fund $749 83. If the Legislature will appropriate sufficient for the purchase of two teams and harness a large amount of road can be constructed with this balance. Needed Improvements. On April 24, 1903. wlllexplre the contract for the electrical lighting of the state institu tions. "We have space for a plant In the pumping station, also the power. By Install ing and operating one the state would save $8000 or $10,000 per annum. Besides, live wires contiguous to the walls could be used to lessen the possibilities of escape. Power could be transmitted to other institutions for oper ating light machinery. A transformer has al ready been purchased to relieve the old one and we are preparing to extend the system 'to the new barn. Allow me to mention the following additional needed Improvements without commenting upon them: A photographic outfit; an American watchman's time dctecter: a private telephone system; sheds for stock while in pasture; ra diators to take place of steam pipes In main building; prune and apple orchards; a self binder; traction steam engine. Tracy and Merrill. At the time of the Tracy and Merrill outbreak every man on the roster was well experienced in his. line. The armory was much better equipped than Is Che general Impression. The fact is, the same thing could have happened at any time since the establishment of the penitentiary. the weak points being In the bad I construction of the wall and Insufficiency of the night guard. Characteristics of-Tracy. Since my contact with criminals and my study of related subjects, commencing In 1S94. when I became an officer In the Municipal Court of the City of Portland. I have not met a man with so many strong points to qualify him for a successful criminal career as Harry Tracy. His quickness of apprehen sion and decision was Napoleonic He had a nerve of steel. "With him the taking of human life was a question of expediency only. His reckless, dare-devil exploits and hair-breadth escapes were to him diversion. In conversa tion with him he was very direct, and al though devoid of much education he had a good use of language. He was specially for tunate in having intelligent and shrewd outside help. We kept him much longer than had any other prison. His devious career and lgno-r minlous death furnish a strong warning to all men who have any tendency toward out lawry. "Without a dollar of estate, with a reputatlonor crime only, while yet a young man his sun set in darkness and his remains He unhonored In a prison cemetery. Cost of Tracy and Merrill Chase. The expense of the mllltla during the chase of the fugitives amounted to about $700 and was, I believe, paid from the mllltla fund. The bills of sundry persons contracted under the, same circumstances amount to about $300. Some men went In response to my call, others In posses called out by the Sheriff. It was decided that they could not be raid out of any of the appropriations for the penitentiary. I presented them In an Informal way to tho County Court of Marlon County and their payment was refused. I did this In the Inter ests of the claimants and of the state. As the County Coroner had held an inquest over the bodies of the three murdered guards, the Prosecuting Attorney had filed an Information against Tracy and Merrill charging them with murder, and a warrant ror tneir arrosi nao. been nlaced In the hands of the Sheriff, It seemed to me that the county should Join with the state in meeting the expense. The people holding claims, whether for teams, meals or suddIIgs of any kind, should be paid, an should also Superintendent Catron of the "Walla Walla Penitentiary- The amounts are small and I trust the Legislature, at your sugges tion, will promptly provide for their pay ment. The Law Should Be Amended. The law should be so amended as to make tho superintendent responsible for the safe-keeping of prisoners. He Is emjwwercd to make tho rules and to appoint subordinate officers. He should have a corps of officers thoroughly In harmony with his policy. Then vigorous, pro gressive and successful endeavor Is possible and best results are attainable, ir. uncier these conditions, he falls In any particular, ho should bear tho blame, arid Justly so. Increase -of Guards. I have deemed It prudent to put another day guard on the wall at Its weakrst place, which is where the flume passes through It. Also to strengthen the night force by two additional guards. They will stay upon the wall and act In conjunction with the guard who pa trols the shops and premises within the -wall. This intermural area Is about eight acres In extent and contains the large shgps, the laundry building, woodyard, etc The wall must have been planned by some one who Ig nored the fact that It Is almost as Important to keep outsiders from getting In as It Is to prevent Inmates from getting out. There must be at least a thousand feet of It that any active man can get upon from the outside wlthout-help. The Armory. One of my first acts after entering upon the discharge of, my duties was to request tho captain of the guard to examine the armory and make his requisition for arms and equip ments. The demand came for three 30-30 Winchester rifles, three riot guns and ammu nition. Thcy-'were promptly procured, and I have stood ready at all times to honor his requisitions. Since the outbreak I have pur chased four more 30-30's, two double-barreled shotguns and one revolver. The guns la use when I came into the office were, for the most part, fairly good, but, being soft-barreled, would not stand the stronger explosive ammu nition of the present day. The best of them I am having put in good repair, so that -we could, if necessary, accommodate posses work ing in tho brush, -where flhort rftnp-n nnlv ! reauired. 1 Progressive Penology and Discipline. Upon these subjects, I have nothing spe cially different to offer from what I said In my last report. The construction of our buildings and system of labor preclude the Introduction of many new and progressive methods, such as classifying the inmates, teaching them trades, industrial training, etc I have Im pressed upon the officers the importance 'of exercising care and good Judgment, and gen eral results indicate their skillful handling of the men. The merit and trusty systems should be continued. Reformatory work should be kept constantly in view. Parole Lavrs. Parole laws are working satisfactorily In many states. By their operation exemplary prisoners are permitted employment, under proper restrictions, away from the penitentiary. They and their employers must report at stat ed times. The proceeds of their labor, or a certain percentage of it, are kept for their benefit or that of their families. This system gives them self-reliance, self-respect and en courages every incentive to well-doing, both In and out of the prison. Recidivists should never, or exceedingly rarely, be paroled. Some states havo a probation law for certain classes of first offenders -which operates very tmuch as the parole law does, the difference being that they may be paroled immediately after sentence is pronounced upon them, thereby keeping them away from the contaminating in fluences at the penitentiary. Laws of the above character seem to demand a board of' control. Perhaps the Governor, Superinten dent and Warden might constitute such board and advise freely with the sentencing Judge. Finances. The financial statement follows: Amounts expended in maintenance of convicts and general repairs, including road and new wing ffcat68 cers employes.t33.ios 08 nour and'feed v.v.v.v.'.".::.'.::::::: ! Groceries, provisions and crockery 6012 5S ry goods, cloth and blankets.... 452a SO Leather and findings .... 45 Drugs and medicine ir- tJ Stationery, postage, telephone, ' " telegraph and box rent 354 93 Paints, oils, glass, llrne, etc 142 is Furniture and bedding. v 75 Hardware, agricultural, imple ments, and engineers supplies.. 1547 53 Lumber jtjj m Fencing and fruit trees 33 m' Livestock 332 75 Rent of land 293 50 Lights and lamps 3 907 05 Relief oJ discharged convicts...,. '434 C9 Photographing convicts 2S7 50 Firewood ; 01 Expense not classified 59 Improvements and repairs Paints, oils, glass, lime, etc 2,948 34 Lumber 117 53 New wing and Are protection Engineers supplies 71 20 Hardware 44 71 Cement, sand, gravel, and labor!. 3S 75 Drayage 3 q Total for quarter $70353 S4 Earnings 28,330 42 General Prison Account. Unexpended appropriations, 1S29-1900 Public roads- $ 749 ta New wing and fire protection.... 174 Go Total $ 924 48 Appropriations 1901-1902 For payment of salaries of officers and employes, and for mainte nance and general and contin gent expenses of the Oregon state penitentiary JS4.000 00 For payment of expenses of the general repairs, and Improve ments at Oregon state pen itentiary 4,500 00 Total Disbursements. Amount paid out as per report .retary of StatP Quarter ending March 31, 1901 Quarter ending June 30. 1901 ?S9,424 4S to Sec- J41.251 64 9,280 28 13.602 54 9.9SS 96 32,191 31 Quarter-ending September 30, 1901. Quarter ending December 31. 1901. Quarter ending March 31, 19Q2 Quarter ending June 30. 1902.-. Quarter ending September 30. 1902. 9.103 04 13.939 07 Total expenditure 179,353 84 Balance remaining unexpended General expense $ 7.S69 69 Improvement and repairs 1,434 13 Public roads 749 83 New wing 16 99 Total , $10,070 64 3USIKESS ITEMS. If Baby Is Catting; Teeth, Be sure and use that old and well-tried remedy, Mrs. Wlnslo-w'a Soothing Syrup, for cbllarti teething. It soothes the child. softens tbVguja. allays all pain, cures -triad colic and dltrrUoM, I TALES OF BEING a physician, and a well-known physician, too, it was within reason to believe that he knew something about the laws which a long series of Legislatures have spread upon the statute books of the state. But apparently he didn't. He left Portland a week ago on a Jlshlng expedition, and last Sunday ho returned. Being asked for an account of his trip when he reached home, he said that, respecting the Sabbath day, as he had been brought up to do, he wanted to postpone the story- That is why his friends gathered in his office yesterday to listen to an unvar nished tale of hard luck. And this is it: "It took us two days to get to the Ideal fishing grounds that a fool friend of mine had told me about. It would have been more sensible to have gone ballooning or to have Joined the Army at this time of year, but 1 needed a midwinter oudng, and I took the tip. "We pitched our camp in a wilderness and In an awful storm, but the third day we had fair weather and caught enough fish to give us an ap petite for dinner. The native population in the neighborhood took us for freaks, and one man asked -us If we weren't doing it on a bet. "But after that we struck a streak of bad luck, both as regards catching fish and everything else. There was. simply nothing doing In any line, except incident al comment on our situation by Charlie and myself, and both of us are sorry now that we spoke as we did. That is why I couldn't conscientiously tell you the story yesterday for I thought you might want to kno wwhat was said the -nlht our shack fell in on us. "But AVednesday morning broke toler ably clear, and Charlie started Into town to get a wagon to haul our belongings. I was silting out In the sun and thinking what the corner at Sixth and Washington streets looked like, when a red-haired, lanky, freckle-faced young man came along with a magnificent string of fish over his shoulder. It was a yard long and every fish was a beauty. " 'Sonny, I said, 'where did you get em?' "He told me. He told me a long, long story of troubles In his family which had led him to take to fishing In order to sup port his father and mother, and their parents and a great many children and grandchildren. My heart was touched. " Til buy your fish, I said. 'How much do you want for them?' "His original estimate was a little be yond what I thought evergoldfish might be worth, but we finally reached an agree ment, and he handed the string over to me. I put them In water, and when he went away sat and watched them and weaved about them the stories that I in tended to tell you boys when I reached Portland with them. I had evolved some tales that Isaak "Walton would have wept over, and Just then an old man, stoop shouldered and sharp-eyed, with gray whiskers, down which tobacco juice trickled in an intermittent stream, hove in sight. He saw my string of fish and sefcmcd to take an interest In ihem. " 'Catch 'em yourself?' he asked. 'Sure, I said. " ' Whereabouts ?' he asked. " 'Oh, JUHt around here. I said. " 'When?' he wanted to know. " 'Well,' I told him, 'I guess you don't know much about fish if you think J caught 'em more than a month ago.' "He kind of chuckled, and poked the fish with his cane. . " That's an Eastern brook trout, ain't it?' he asked. "I told him it -was, but it was a guess on my part. " 'An', If I ain't mistaken, them are Graylings?' he went on. " 'Sure,' I says. " An down at the bottom you've' got OREGON'S PROBLEM IN TAXATION BT PROFESSOR. F. G. YOUNG, OF THE ST ATE UNIVERSITY. The unanimity of the opinions on Ore gon's problem of state taxation that have recently bnen expressed by Influential leaders and organizations is certainly gratifying. Governor-elect Chamberlain, Governor Geer, State Senator Fulton, and the Portland Taxpayers' League all urge the creation of a tax commission, and some specify the enactment of an inher tures that a revision of Oregon's tax sys ltancfe tax and corporation taxes as fea tem would naturally bring Into operation. In suggesting a tax commission they, by implication, deprecate irresponsible tink ering with our tax laws, and call for a competent inquiry Into the basis of a sys tem that modern economic conditions have made necessary. Exceedingly auspicious is all this in taking up "the gravest prob lem free people can be called upon' to solvp." Minir changes in our system might be salutary if the system as a whole were fundamentally sound and needing only to have its principles more fully realized. But th general property tax, especially as Oregon has It, with common sources for state and local revenues, and with the same rules for .assessing Individual and corporate possessions, is condemned in theory and in practice. If we choose to retain our system with its essential fea tures intact and continue to apply only patchwofk amendments. It will mean In adequate revenues for state and local purposes, and yet rates of taxation amount.ng virtually to the confiscation of the property of all honest taxpayers. Bad as our system is, with Its rates of from SO to 40 mills on the dollar. It is not so bad as it will almost certainly, become If continued. In Chicaco a few years ago assessments under a system similar to Oregon's had been lowered so that they were only one-ninth of the market value of the property, and the rates were as high as S3 mills on the dollar. '"It was reported by the authorities of the City of Chicago that the assessments were upon a 10 per cent basis In fact, It was shown that In many cases the current figure was nearer 1 per cent." The general property tax under primi tive conditions of industry was not so bad. But as the -levy for state purposes became Important and a large proportion of the personal property assumed the Intangible form- of securities that is, evi dences of ownership orv indebtedness the general property tax as- a system was doomed. Under most favorable condi tions now it Is a "system of confisca tion tempered by favoritism," and liable to become , "outright confiscation tem pered by outrageous confiscation." American commonwealths have, how ever, been slow to part with it because it la so exceedingly difficult to get not a better system, but one that Is fairly good. A proposed system might be in comparably better than the old and be rejected because it is only moderately good. Nothing is quite so bad, not even the general property tax, as a condition of chronic change or transition from one set of tax regulations to another. The problem of rational taxation is rendered "doubly difficult In America because of 'the constitutional obstacles, state and National, that generally He In the way. Business has become National and even International while the tax jurisdictions remain limited to the commonwealths. Under such complications, legal and eco nomic, the Ideal in taxation is pretty much, an "Iridescent -dream, " and the best available system for Oregon will be the fruit only of the most painstak ing and scientific Investigation. In the light of this character of the problem it is reassuring to have the suggestion for a tax commission. The search must "be for a system of co-ordinated taxes that will insure ade quacy of revenues and will result in Jus tice among the taxpayers. It is not at 11 difficult, however, to outline the sa lient features of such a system. In the new system we shall almost certainly see state taxation divorced from local taxation. There "will be a separation of THE TOWN some of the finest Loch Levan trout I ever seon,' he told me. "I Just nodded then, for I didn't want to claim all the piscatorial honors of the neighborhood. " 'That's what I thought,' he said.- "And then ho unbuttoned his vest, showed me a big nickel-plated badge on his left suspender strap, and told me that he was most distressed to death because he had to arrest me. The fact that I had personally caught the fish, he said, made me liable to a fine of $200, or a sentence of six months in the County Jail, because fish of that particular species are pro tected under the laws of Oregon until April 1, 1904. I could not settle with him at the time, because I did not have money enough, but when Charlie got back I bor rowed what he had and paid the man off. Also we gave him the fish, for which he seemed grateful. "Am I kicking Not a bit. I got the vacation that I needed, and they well, I guess they needed the money." A YOUNG man whose credit Is not all that it might be called at a bank the other day with a 30-day note for a small amount of money. The cashier of tho bank looked at the note and then at the young man, and finally said: "I would like to oblige you In this mat ter. Mr. "Smith, but the rules forbid it. I YOU Will Vl.1V tn nr, Innrim- Vm," can get one, can't you?" "Sure, sard Mr. Smith. And he went away, but It was only for a few minutes. His best friend, whose financial status was not as good as his own, had been leaning against a lamp post only a block off. and this friend lost no time In putting his signature on the back of the paper. It was with some dig nity, therefore, that the cashier was again called to his little window -and handed the note. "It's indorsed all right," said Mr. Smith. The cashier noted that It was, but hand ed it back with a shake of his head. "I came very near to taking It on your own name," he said, "although that would have been against the rules. But now that there are two such names on it, I simply can't take It at all." HThose people who have the conces- slon which controls the mining rights of the 300.000 square miles of Siberian land which make up the Tchoukdtsk peninsula have done well to send Captain William N. Armstrong here to recruit the favored 100 who are to be permitted to prospect in Siberia. Captain Armstrong is a young man, with the physique of a Sandow, and he has spent most of his life north of tho Arctic circle. He discovered Gold Hill, in Alaska, In 1S97, and he Is more at home in furs than he Is In the tweeds he wears now about the Portland Hotel. He has a steady blue eye and a face so bronzed that one would pick him out of a crowd anywhere as a traveler out of the ordin ary. In discussing the prospects of his mis sion here yesterday, he said: "I don't know of my own knowledge whether there Is gold In Siberia or not, for I never saw any that came from there. But I am staking my personal fortunes wfth the others engaged In this venture, who think that when we begin to develop this great country the early days of California will be recalled, and that the whole world will be astonished at the dis coveries. I have made only a superficial Investigation, for I haven't had time to do more, and I am launched heart and soul In the enterprise which will give us Americans at least a chance to develop a country which the Old World has left neglected for centuries." state and local sources of revenue. This separation of state from local staxes would remove the motive on the part of tho apaessors to continue their mad race in lowering their valuations In order to keep down the obligations of their re spective counties to the state. To be sure that motive was obviated In this state by an amendment to our tax laws two years ago. But tho arrangement making county expenditures the basis for the apportionment of state taxes is at best an arbitrary 'device; and, furthermore, the separation of state from local reve nues has additional justification In that It makes easier the introduction in cor rect form of such taxes as the Inheri tance tax and the corporation taxes. A second characteristic o7 the future sys tem of state and local taxation will be the dropping of intangible personalty from the list of the forms of property subject to taxation. Notwithstanding the fact that the law now makes such intan gible personalty subject to taxation along with real estate nnd tangible personalty, It has almost disappeared from the As sessors' returns. Mainly as the posses sions of women and children in the hands of trustees Is It found by the AsscRsor. As it is, the farmer whose personalty is tangible must pay not only his share but also the tax that is evaded by the holder of the Intangible personalty. The lnS herltance tax and the corporation taxes are being utilized by the foremost com monwealths as partial substitutes for the decaying personal property tax. With the inheritance and transfer taxes per sonalty is reached at least once In a generation. With the tax upon the cor poration which Issues the securities the intangible property Is gotten at Indirectly and the security holder pays the tax which he now escapes through perjury. The modernized system of state and "lo cal taxation would thus assign to the state the revenues from the inheritance tax and from the general corporation taxes and possibly Incorporation or fran chise taxes. It would reserve the real estate tax for the counties, municipali ties and minor civil divisions. The local taxes would also Include license taxes, franchise taxes of municipal public serv ice corporations, and possibly a tax on professional Incomes and an occupation or residence tax. The selection and the segregation of taxes achieved, we come to the really difficult part of th, problem of devising a system of taxation for state and local purposes. The Inheritance tax seems sim ple enough, but the adoption of It raises such questions as the following: Shall It apply to realty as well as to personalty? Shall It apply to direct relatives as well as to collaterals? Shall' the rate be pro portional or progressive? Shall there not be a movement to have the Federal Gov ernment relinquish this source of reve nue since It Is more urgently needed by the commonwealths and Is a growing re source with them? It Is, however. In the application of the corporation tax that we have the problyn of problems. How to make the corporation pay its share of the taxes and yet not to burden It un duly Is the question of questions. The difficulties In regard to It seem to be multiplied. To mention only a few of the points: "What Is the franchise of a corporation, and how shall it be esti mated? Shall earning capacity or other criteria form the test of taxable ability? Shall we seek a method of assessment which even though only roughly approxi mate, is certain, or a method which, while more subtle and delicate, involves arbitrariness? Shall all corporations be treated alike, or shall different classes be taxed at different rates? Shall pure business corporations be exempted or fa vored? Shall foreign and domestic cor porations be assessed In the same way? Shall Interstate corporations be treated according to a uniform-rule?' These," says Professor Sellgman, "are only a few of the points on which light must be thrown before we can even approach a satisfac tory solution of the problem." Three methods of taxing corooratlons are commonly distinguished: (1) the taxa tion of net receipts, (2) the taxation of GABRILOWITSCH After a short preliminary tour during the month of October in the East and Canada, Ossip Gabrilowltsch, the young Russian pianist, whom Mr. Daniel FTohman ha3 brought over as his musical attraction for the present season, made his New York reappearance at the Metropolitan Oncra-Hoi:3e, and un questionably scored an artistic success. cf which any artist mifrht well be proud. His rendition of Rnbintelns famous "D Minor Concerto " which he studied under the personal guidance of his friend and master, the com poser, was received by the public with the utmosc enthusiasm, and the unanimitly of the New York critics in rraise of his work on the following morning has seldom been equaled In that city. In nearly everv case men tion was made of the Improvement over his work of the previous tour of two years aco, and the fact that he had broademd and mentally altered, was the subject they dwelt cn at considerable length, and it can be said that no artist, except Padercwskl, has started on an American tour under more flat tering auspices than the ypun? Russian pianist, who, in addition to his New York work with the different orchestras, will be heard throughout the coun try In sixty (60) concerts and recitals, which will Include a trip to the Pacific Coast, to be followed by an extensive tournee through the South. GABRILOWITSCH USES THE EVERETT PIANOS ALLEN & QILBERT-RAMAKER CO. PORTLAND AND SEATTLE Are the sole? representatives for the ' Xorthwe-it Const. PRAEL, H EG ELE & CO. RETAIL DEPARTMENT 100-106 FIFTH ST., COR. STARK NOTICE TO THE PUBLIC! Beginning with January 2 we will sell goods in all de partments at greatly reduced prices for 30 days. Dur ing this sale we will offer some 500 framed pictures at prices that will move them. Wall paper, mouldings and pictures framed. E. H. IV1QOREHOUSE& COMPANY 307 WASHINGTON STREET. Common Sense You use your 3 them?' If you cay in any of "We guarantee J pain. DU B. E. WRIGHT. Office hours: Graduate Iowa State tTnlv, Sundays. 10 A. eoo909090oeee . e e e e Building to be Removed OUR WASHINGTON-STREET STORE WILL. NOT HOLD THE CONTENTS OP OUR MORRISON-STREET STORE. Prices Cut One-Half Our Sacrifice Your Gain ...JOHN TWO STORES 246 Washlncton St.. Near Woodard. Clarke tangible wealth plus franchise, (3) the taxation of the concern on a valuation equal to the earn of the values of the stock and bonus. The experience of Eastern Slates In the taxation of trans portation and transmission companies Is demonstrating the special feasibility of the "franchise tax, or taxation by the unit rule." The third method of valua tion of the corporation Is used that Is, the corporation Is taxed on a value equal to the sum of the values of ltd stock and bonds. In the case of corporations like the great railroad, telegraph and express companies that extend through several sttn so much of the entire property of the corporation is accredited to the taxing state as the length of mileage In that state bears to the entire mileage covered by the valuation. Such Is the plan adopt ed 'n Massachusetts, Connecticut, Indiana, Kentucky, Ohio and probably elsewhere. Oregon Mnxt ilave Iler Oivn Policy. After a system hag been devisedthat Is in harmony with the principles of eco nomic science and that does not ih any of Its provisions violate the state or the United States Constitution there Is still the work of recommending It to the voter. While the framers of a modern eystem of taxation-may have it especially in mind to relievo th farmer and the owner of city real estate of thrjr double burden of tax, yet they may insist on retaining the tax on intangible personalty. They cannot brook tha idea that the holder of bonds and other eecurltles should escape all di rect taxes. Without the most careful and vigorous campaign of education on the incidence of taxes we could not hope to hold the attention to the deeper and the truer results of the proposed system. Though tried again and again the per sonal property tax has produced not reve nue but dishonesty and is converting un more and more into a nation of perjurers. In tho work of revising our methods, of taxation we face "both a scientific and a very practical problem." '"Any system that is to give enduring satisfaction," says Professor Sellgman, "must be at once in harmony with the principles of economic science and in accord with the feelings of justice of the average man. In a democracy like oura no reform can be a lasting one unless It responds to the sense of equity In the maas of the voters." The work of thoroughly adjusting a sys tem of taxation to the economic condi tions In Oregon Is a much more difficult one than would be the like work fdn a state of the Mississippi Valley. For there are elements of natural monopoly In Ore gon's fisheries. Irrigation projects. In the utilization of her water power, in the ex ploiting of her timber resources; and there may some day be a similar monopoly ,ln the control of her mineral wealth. The question of taxation In connection with these Interests Is but a part of the larger question of the policy towards monopoly. F. G. YOUNG. DAILY METEOROLOGICAL HEPOHT PORTLAND. Jan. 12. 8 P. M. Maximum temperature,' 42; minimum temperature, 20; river .reading. 11 A. M.. 6.0 feet; change In 24 hours, 0.7 foot; total precipitation, 0 P. M. Special Sale FRENCH CHINA and 'ENGLISH SEMI-PORCELAIN Dinner Sets Sale continues until January 15. Bargains in Cut Glass, Silver Plateware, Lamps and Jardinieres teeth several times every dav of vour life. l and your health depends on the thoroughness with which M they perform their work. Why. then, do you neglect suffer the slightest pain or notice nny dc, your teeth, have them attended To at once. the highest class of work without Inflicting DR. B.'E. WRIGHT'S 342s Washington, Cor. Seventh 8 A. M. to 5 P. M.: evenings. 7:30 to 5:20; M. to 12 M. Telephone Xorth 219L toittteieeittetittt o ALLES1NA... 309 Morrison St. & Co. Near Meier & Frank Co. to, 5 P. M.. 0.00; total precipitation since Sept. 1. 1902. 24. CI Inches; normal precipitation elnce Sept. 1. 1002, 22.12 Inches; excess, 2.3D Inches: total sunshine Jan. 11, 0:12; possible sunshine Jan. 11. 9:00; barometer (reduced to sea level) at 5 P. M 30.42. PACIFIC COAST WEATHER. Wind STATIONS. Astoria Baker City Bismarck , Boise' Eureka Helena Kamloops. B. C. North Head .... Pocate.Uo Portland Red Bluff Roscburg Sacramento Salt Lake San Francisco .. Spokane Seattle , Walla Walla ... 142 0.00112 NE SE W w NW W Clm N E E Clear 2410.00 24,0.00 30I0.00 Cloudy Clear Cloudy JClear ,Jiear Cloudy 4810.00 23 0.00 Pt. cldy Clear Clear Clear Clear 0.00 eta) rvv f40'o!oo 'SE 3S'o!oo S! SE 3410.00! IW E Cloudy Clear fMnr J12' T I Cloudy rl.nr 1420.00 NE W 320.00 Cloudy Light. WEATHER CONDITIONS. Fair weather continues In the Pacific Coast States, with temperatures generally 'ellshtly below the normal. The Indications are for partly cloudy weath er In this district Tuesday, with continued low temperature. WEATHER FORECASTS. . Forecasts made at Portland for the 28 hours ending at midnight Tuesday, January 13: Portland and vicinity Generally fair and continued cool; easterly winds. Oregon and Washington Generally fair; con tinued cool; easterly wind?. Idaho Generally fair. " FREE EXAMINATIONS This Is one of the Instruments wc use in testing eyes. With it we can read your eyes like a book. FINEST QUALITY CRYSTAL r- nn LEXSES. PER PAIR. I.UV (Sold by other opticians for $2.50.) Consnlt mi, and nave from $1.00 to $5.00 ob your g;Iaxxca. OREGON OPTICAL CO. 173 Fourth Street Near Yamhill AM CS EMENDS. MAKQUAM GRAND THEATER N CALVIN HEILIG, Manager. Thursday. Friday. Saturday nights. January 15. 16. 17, Matlner Saturday at 2:15 o clock, VVARFIELD IN' "THE AUCTIONEER." Under direction of DAVID BELASCO. Prices-Entire lower floor. 51-50. Balcony, nrst 3 rows. $1: second.3 'rows. i5c; last 0 rows. 50c. Gallery. 35c and 25c T3oxes and loses. $10. Seats are now selling. CORDRAY'S THEATER Tonight and every nl3ht this week at S:lo. -with Saturday matinee. Miss Fannie Curtis and powerful companv. in the romantic drama. "DOWN BY THE SEA,' ' j Management of Phil Hunt. Xew and up-to-date specialties. Splendid scenery. See the electrical storm at sea. Prices Evenings. 25c and 50c. Matinee, -oc to any part of house; children. 10c Next attraction. "A GAMBLER'S DAUGH TER." THE BAKER THEATER GEORGE L. BAKER. Manager. Phones: North 1076; Columbia 50G. A greater success than "The Christian. Turned "hundreds" away at both performances yesterday. Tonight and every night this week, matinee Saturday. "THE LITTLE MINISTER," By J. M. Barrle. Presented with careful attention to even de tail, by the Nelll Stock Company. The Baker prices never change.. Evening, 15c, 23c. 33c. 50c; matinees. 10c. 13c. 25c. Noxt week "FOR FAIR VIRGINIA." AUCTION SALES TODAY. By the Ford-AVllson Auction Co., at 780 Kerby st.. 10 A. M. Lower Albina car. "Wilson & Ford, auctioneers. At Baker's auction rooms, cor. Alder and Park. Sale at 10 A. M. Geo. Baker & Co.. auctioneers. At Oilman's auction rooms, 411-413 "Washing ton st.. at 10 o'clock A. M. S. L. N. Gllman, auctioneer. At the Ford-Wilson Auction Co.'a salesrooms, .1S2 Flist at., 10 A. M. Wilson & Ford, auc tioneers. MEETING NOTICES. Joint Installation of ofllciT3 of Ellljson En campment, No. 1. and Golden Rule Encamp ment. No. 28. I. O. C. F., this (Tuesday) evening. Jan. 13. at 7:30 o'clock. Members o the Patriarchal branch of the order and their families only Invited to attend. CILVS. GRAHAM. C. P. E. B. SHARON, Scrlbo. JOSEPH MANAGHAN. C. P. W. A. WHEELER. Scribe. A. & A. S. RITE, ORE GON LODGE OF PERFEC TION, NO. 1. Special meet ing this evening at 8 o'clock. Work In 4th, 5th and 6th de crees. By order VEN. MASTER. MULTNOMAH COUNCIL. NO. 1431. ROYAL ARCANUM. Regu lar meeting this (Tuesday) even ing. Auditorium Hall. S o'clock. All members and visitors cor dially Invited. JERRY BRONAUGH. Sec. HAWTHORNE LODGE. NO. 111. A. F. & A. M. Special communica tion of Hawthorne Lodge this (Tues day) evening at 7:30 o'clock. Work In E. A. degree. All E. A. cordially F. GLAFKE. JR.. Sec Invited. DI1SD. BROWN In this city. Jan. 12. 1003. at the famllr residence. 354 Harrison St.. Mcses R. Brown, aged 50 years. 9 months and 15 days. Funeral notice hereafter. San Jose. Cal.. ani Albany, Or., papers please copy. ' J. P. F1XLEY A SO. ProgresiiTt Funeral Directors nnd Embaltneri, car. Hi! anil Mntllaon streets. Com petent lady am't. Both phonei No. 0. CDWAHD HO L.MAX. Undertaker. 4th and Yamhill ata. Hens Stinaon, Jatlv nualBtnnt. Both phonea So. S07. NEW TODAY. MKTGAUE L0A2JS On Improved city and farm property. Building loans. Installment loans. WM. MACMASTER. 311 Worcester block. BUSINESS LOTS FOR SALB At moderate prices, with decided advantages. In the new tenter of Oak and Fifth sts., onl car line, and opposite H. Welnhard's blocki F. V. Andrews & Co.. Hamilton block. j MORTGAGE LOAN 5 On Portland real estate at lowest rate. Titles Insured. Abstract furnished. Tike Guarantee & i rust Co. 7 Chamber of Commerce. Farm and City Loans On reasonable terras and Installment payments. V.". H. FEAR. Falling Building. WE WOULD EMPHASIZE This fnct: We wish to I J PA Customer of the Pioneer -" Morrison-Street Tuel Company. Either phono 189. i P6rtland Homebuilding Co. Eullds homes, only at University Park. You select a lot 50x100. and pay down $5 and pay $5 monthly till your turn comes to jeet a homt after which you pay $5 monthly and 3 per cent simple annual Interest on what you owe. Each principal payment reduces the In terest accordingly. Each home costs $1000 ln cludln? $200 for the lot. Contracts are Issued In series oi 100. When there Is paid to the company .$1000 by all the members. They aro called tocether to determine who shall Ret tho money with which to hulld a home. The one who lets the money pays to the others 5 per cent interest on the amount ach has paid of the $1000 loaned, therefore each member gets 5 per' cent Interest on his money until be be comes a borrower himself. Each member also gets the Increase In the value of his lots from the day he pays down his first $3. For further particulars call on or address FRANCIS I. M'KEXNA. Agent. 151 Cth st.. Marquam bldg.. Portland. Or. SAFE DEPOSIT VAULTS Our vaults are fire and burglar prooL The utmost secrecy is maintained in regard to names of renters and all matters con nected therewith. Private rooms for clients, where boxes can be taken, contents examined and letters written. Rates six dollars a year and upwards. SAFE DEPOSIT VAULTS Chamber of Comr-erce. R K. ARNOLD, Sunt. - PORTSMOUTH VI ELECTRIC CARS TSMOUTH VILLA ELECTRIC CARS Buy a lot from the . OWNER PORTLAND TRUST COMPANY of Oregon. a OO THIRD STREET SO LLA POR