lons forty-two hundred and fourteen, forty-two hundred and fifteen, forty-two hunred and seventeen and forty-two hundred and eighteen of the Revised Statutes and ets amendatory thereto in the same manner as if said yacht had been built in he United States, and shall be subject to tonnage duty and light money only in he same manner as if said yacht had beeen built in the United States. Section 38 provided for the collection of a corporation tax as follows: First, That very corporation, joint stock company or association, organized for profit and having a capital stock represented by shares, and every insurance comorporation Tax. pany, now or hereafter organized under the laws of the United States or of any state or territory of the United States, or nder the acts of Congress applicable to Alaska or the District of Columbia, or now r hereafter organized under the laws of any foreign country and engaged in business 1 any state or territory of the United States or in Alaska or in the District of olumbia, shall be subject to pay annually a special excise tax with respect to the arrying on or doing business by such corporation, joint stock company or associajon, or insurance company, equivalent to one per centum upon the entire net income ver and above five thousand dollars received by it from all sources during such year, xclusive of amounts received by it as dividends upon stock of other corporations, int stock companies or associations, or insurance companies, subject to the tax hereby mposed; or if organized under the laws of any foreign country, upon the amount of et income over and above five thousand dollars received by it from business transacted nd capital invested within the United States and its territories, Alaska and the istrict of Columbia during such year, exclusive of amounts so received by it as ividends upon stock of other corporations, joint stock companies or associations, or surance companies, subject to the tax hereby imposed: Provided, however, That othing in this section contained shall apply to labor, agricultural or horticultural rganizations. or to fraternal beneficiary societies, orders or associations operating nder the lodge system, and providing for the payment of life, sick, accident and other enefits to the members of such societies, orders or associations, and dependents of ach members, nor to domestic building and loan associations, organized and operated xclusively for the mutual benefit of their members, nor to any corporation or associaon organized and operated exclusively for religious, charitable or educational puroses, no part of the net income of which inures to the benefit of any private tockholder or individual. ixing let an Second. Such net income shall be ascertained by deducting from the gross amount f the income of such corporation, joint stock company or association, or insurance company, received within the year from all sources, (first) all the ordinary and necessary expenses actually paid within the year out of income in the maintenance and operation of its business and properacome. ties, including all charges such as rentals or franchise payments, required to be made as a condition to the continued use or possession property; (second) all losses actually sustained within the year and not compenited by insurance or otherwise, including a reasonable allowance for depreciation property, if any, and in the case of insurance companies the sums other than ividends paid within the year on policy and annuity contracts and the net addion, if any, required by law to be made within the year to reserve funds; (third) terest actually paid within the year on its bonded or other indebtedness to mount of such bonded and other indebtedness not exceeding the paid-up capital cock of such corporation, joint stock company or association, or insurance company, atstanding at the olcse of the year, and in the case of a bank, banking association trust company, all interest actually paid by it within the year on deposits; ourth) all sums paid by it within the year for taxes imposed under the authority f the United States or of any state or territory thereof, or imposed by the govrnment of any foreign country as a condition to carrying on business therein; ifth) all amounts received by it within the year as dividends upon stock of other orporations, joint stock companies or associations, or insurance companies, subject the tax hereby imposed: Provided, That in the case of a corporation, joint stock mpany or association, or insurance company, organized under the laws of a forgn country, such net income shall be ascertained by deducting from the gross mount of its income received within the year from business transacted and capital rested within the United States and any of its territories, Alaska, and the District Columbia, (first) all the ordinary and necessary expenses actually paid within the ear out of earnings in the maintenance and operation of its business and property within the United States and its territories, Alaska, and the District of Columbia. ncluding all charges such as rentals or franchise payments required to be made as condition to the continued use or possession of property; (second) all losses rtually sustained within the year in business conducted by it within the United tates or its territories. Alaska, or the District of Columbia not compensated by surance or otherwise, including a reasonable allowance for depreciation of property, any, and in the case of insurance companies the sums other than dividends, paid ithin the year on policy and annuity contracts and the net addition, if any, reuired by law to be made within the year to reserve funds; (third) interest actually aid within the year on its bonded or other indebtedness to an amount of such onded and other indebtedness, not exceeding the proportion of its paid-up capital ock outstanding at the close of the year which the gross amount of its income for he year from business transacted and capital invested within the United States and ny of its territories, Alaska, and the District of Columbia bears to the gross amount fits income derived from all sources within and without the United States; (fourth) he sums paid by it within the year for taxes imposed under the authority of the sto United States or of any state or territory thereof; (fifth) all amounts receiv within the year as dividends upon stock of other comporations, joint panies or associations, and insurance companies, subject to the tax hereby In the case of assessment insurance companies the actual deposit of sums or territorial officers, pursuant to law, as additions to guaranty or reserv shall be treated as being payments required by law to reserve funds. W Third. There shall be deducted from the amount of the net income of such corporations, joint stock companies or associations, or insurance Co ascertained as provided in the foregoing paragraphs of this Deductions. the sum of five thousand dollars, and said tax shall be Co upon the remainder of said net income of such corporatio stock company or association, or insurance company, for the year ending D 31, 1909, and for each calendar year thereafter; and on or before the first March, 1910, and the first day of March in each year thereafter, a true and return under oath or affirmation of its president, vice-president, or other officer, and its treasurer or assistant treasurer, shall be made by each of porations, joint stock companies or associations, and insurance companies, to the tax imposed by this section, to the collector of internal revenue for trict in which such corporation, joint stock company or association, or insuran pany, has its principal place of business, or, in the case of a corporation, joi company or association, or insurance company, organized under the laws of a country, in the place where its principal business is carried on within the States, in such form as the Commissioner of Internal Revenue, with the app the Secretary of the Treasury, shall prescribe, setting forth, (first) the total jof the paid-up capital stock of such corporation, joint stock company or asso or insurance company, outstanding at the close of the year; (second) the total of the bonded and other indebtedness of such corporation, joint stock comp association, or insurance company at the close of the year; (third) the gross of the income of such corporations, joint stock company or association, or in company, received during such year from all sources, and if organized un laws of a foreign country the gross amount of its income received within th from business transacted and capital invested within the United States and its territories, Alaska, and the District of Columbia; also the amount recei such corporation, joint stock company or association, or insurance company, the year by way of dividends upon stock of other corporations, joint stock con or associations, or insurance companies, subject to the tax imposed by this s (fourth) the total amount of all the ordinary and necessary expenses actuall out of earnings in the maintenance and operation of the business and proper such corporation, joint stock company or association, or insurance company, the year, stating separately all charges such as rentals or franchise paymer quired to be made as a condition to the continued use or possession of propert if organized under the laws of a foreign country the amount so paid in the tenance and operation of its business within the United States and its terr Alaska, and the District of Columbia; (fifth) the total amount of all losses a sustained during the year and not compensated by insurance or otherwise, separately any amounts allowed for depreciation of property, and in the insurance companies the sums other than dividends, paid within the year on and annuity contracts and the net addition, if any, required by law to be within the year to reserve funds; and in the case of a corporation, joint stock pany or association, or insurance company, organized under the laws of a f country, all losses actually sustained by it during the year in business con by it within the United States or its territories, Alaska, and the District of Colu not compensated by insurance or otherwise, stating separately any amounts a for depreciation of property, and in the case of insurance companies the sums than dividends, paid within the year on policy and annuity contracts and th addition, if any, required by law to be made within the year to reserve fund; ( the amount of interest actually paid within the year on its bonded or other ir edness to an amount of such bonded and other indebtedness not exceeding the pa capital stock of such corporation, joint stock company or association, or insu company, outstanding at the close of the year, and in the case of a bank, ba association or trust company, stating separately all interest paid by it within the en deposits; or in case of a corporation, joint stock company or association, o surance company, organized under the laws of a foreign country, interest so paid bonded or other indebtedness to an amount of such bonded and other indebte not exceeding the proportion of its paid-up capital stock outstanding at the clo the year, which the gross amount of its income for the year from business trans and capital invested within the United States and any of its territories, Alaska, the District of Columbia, bears to the gross amount of its income derived from sources within and without the United States; (seventh) the amount paid by it w the year for taxes imposed under the authority of the United States or any sta territory thereof, and separately the amount so paid by it for taxes imposed by government of any foreign country as a condition to carrying on business the (eighth) the net income of such corporation, joint stock company or association insurance company, after making the deductions in this section authorized. All returns shall as received be transmitted forthwith by the collector to the Com Isioner of Internal Revenue. Fourth. Whenever evidence shall be produced before the Commissioner of Inte Revenue which in the opinion of the commissioner justifies the belief that the re made by any corporation, joint stock company or association, or insurance company, is incorrect, or whenever any collector shall report to the Commissioner of Internal Revenue that any corporation, joint stock company or association, or insurance company, has failed to make a return as required by law, the Commissioner of Internal Revenue may require from the corporation, joint stock company or association, or insurance company making such return, such further information with reference to its capital, income, losses, and expenditures as he may deem expedient; and the Commissioner of Internal Revenue, for the purpose of ascertaining the correctness of such return or for the purpose of making a return where none has been made, is hereby authorized, by any regularly appointed revenue agent specially designated by him for that purpose, to examine any books and papers bearing upon the matters required to be included in the return of such corporation, joint stock company or association, or insurance company, and to require the attendance of any officer or employe of such corporation, joint stock company or association, or insurance company, and to take his testimony with reference to the matter required by law to be included in such return, with power to administer oaths to such person or persons; and the Commissioner of Internal Revenue may also invoke the aid of any court of the United States having jurisdiction to require the attendance of such officers or employes and the production of such books and papers. Upon the information so acquired the Commissioner of Internal Revenue may amend any return or make a return where none has been made. All proceedings taken by the Commissioner of Internal Revenue under the provisions of this section shall be subject to the approval of the Secretary of the Treasury. In Fifth. All returns shall be retained by the Commissioner of Internal Revenue, who shall, make assessments thereon; and in case of any return made with false or fraudulent intent, he shall add one hundred per centum of such tax, Penalties. and in case of a refusal or neglect to make a return or to verify the same as aforesaid he shall add fifty per centum of such tax. case of neglect occasioned by the sickness or absence of an officer of such corporation, joint stock company or association, or insurance company, required to make said return, or for other sufficient reason, the collector may allow such further time for making and delivering such return as he may deem necessary. not exceeding thirty days. The amount so added to the tax shall be collected at the same time and in the same manner as the tax originally assessed unless the refusal, neglect or falsity is discovered after the date for payment of said taxes, in which case the amount so added shall be paid by the delinquent corporation, joint stock company or association, or insurance company, immediately upon notice given by the collector. All assessments shall be made and the several corporations, joint stock companies or associations, or insurance companies, shall be notified of the amount for which they are respectively liable on or before the first day of June of each successive year, and said assessments shall be paid on or before the thirtieth day of June, except in cases of refusal or neglect to make such return, and in cases of false or fraudulent returns, in which cases the Commissioner of Internal Revenue shall, upon the discovery thereof, at any time within three years after said return is due, make a return upon information obtained as above provided for, and the assessment made by the Commissioner of Internal Revenue thereon shall be paid by such corporation, joint stock company or association, or insurance company, immediately upon notification of the amount of such assessment; and to any sum or sums due and unpaid after the thirtieth day of June in any year, and for ten days after notice and demand thereof by the collector, there shall be added the sum of five per centum on the amount of tax unpaid and interest at the rate of one per centum per month upon said tax from the time the same becomes due. Sixth. When the assessment shall be made, as provided in this section, the returns, together with any corrections thereof which may have been made by the commissioner, shall be filed in the office of the Commissioner of InPublicity. ternal Revenue and shall constitute public records and be open inspection as such. to Seventh. It shall be unlawful for any collector, deputy collector, agent, clerk, or other officer or employe of the United States to divulge or make known in any manner whatever not provided by law to any person any information obtained by him in the discharge of his official duty, or to divulge or make known in any manner not provided by law any document received, evidence taken, or report made under his section except upon the special direction of the President; and any offence against the foregoing provision shall be a misdemeanor and be punished by a fine not exceeding one thousand dollars, or by imprisonment not exceeding one year, or both, at the discretion of the court. Eighth. If any of the corporations, joint stock companies or associations, or Insurance companies, aforesaid, shall refuse or neglect to make a return at the time or times hereinbefore specified in each year, or shall render a false or fraudulent return, such corporation, joint stock company or association, or insurance company, shall be liable to a penalty of not less than one thousand dollars and not exceeding ten thousand dollars. Any person authorized by law to make, render, sign, or verify any return who nakes any false or fraudulent return, or statement, with intent to defeat or evade he assessment required by this section to be made, shall be guilty of a misdemeanor, and shall be fined not exceeding one thousand dollars or be imprisoned not exceedIng one year, or both, at the discretion of the court, with the costs of prosecution. All laws relating to the collection, remission, and refund of internal revenue taxes, so far as applicable to and not inconsistent with the provisions of this are hereby extended and made applicable to the tax imposed by this section. Jurisdiction is hereby conferred upon the circuit and district courts of the States for the district within which any person summoned under this section to to testify or to produce books, as aforesaid, shall reside, to compel such atte production of books, and testimony by appropriate process. Sec. 39 authorized the Secretary of the Treasury to borrow on the c the United States from time to time, as the proceeds may be required to expenditures on account of the Panama Canal and to reimbu Panama Treasury for such expenditures already made and not cove Bonds. previous issues of bonds, the sum of two hundred and ninety five hundred and sixty-nine thousand dollars (which sum togethe the eighty-four million six hundred and thirty-one thousand nine hundred already borrowed upon issues of two per cent bonds under section eight of of June twenty-eighth, 1902, equals the estimates of the Isthmian Canal Com to cover the entire cost of the canal from its inception to its completion), prepare and issue therefor coupon or registered bonds of the United States i form as he may prescribe, and in denominations of one hundred dollars, five dollars, and one thousand dollars, payable fifty years from the date of issu bearing interest payable quarterly in gold coin at a rate not exceeding thi centum per annum; and the bonds herein authorized shall be exempt from al or duties of the United States, as well as from taxation in any form by or state, municipal, or local authority: Provided, that said bonds may be disposed the Secretary of the Treasury at not less than par, under such regulations may prescribe, giving to all citizens of the United States an equal opportu subscribe therefor, but no commissions shall be allowed or paid thereon; and not exceeding cne-tenth of one per centum of the amount of the bonds herein a ized is hereby appropriated, out of any money in the Treasury not otherwise priated, to pay the expenses of preparing, advertising, and issuing the sam the authority contained in section eight of the act of June twenty-eighth, 19 the issue of bonds bearing interest at two per centum per annum, is hereby rep Section 40 provided that section 32 of an act, entitled "An Act providing and means to meet war expenditures, and for other purposes,' ," approved Ju 1898, be, and the same is hereby, amended to read as follows: "That the Secretary of the Treasury is authorized to t from time to time, at a rate of interest not exceeding thre centum per annum, such sum or sums as, in his judgment, m necessary to meet public expenditures, and to issue therefor c cates of indebtedness in such form as he may prescribe and in denominations o dollars or some multiple of that sum; and each certificate so issued shall be pa with the interest accrued thereon, at such time, not exceeding one year from the of its issue, as the Secretary of the Treasury may prescribe: Provided, Tha sum of such certificates outstanding shall at no time exceed two hundred m of dollars; and the provisions of existing law respecting counterfeiting and fraudulent practices are hereby extended to the bonds and certificates of indebte authorized by this act." Equalizing Following are dates on which various portions of the law go into effect: Maximum rates, March 31, 1910. Increased internal revenue tax on cigars, cigarettes, tobacco and snuff, July 1, Corporation tax goes into effect at once, the tax to be paid on June 30, 1910 annually thereafter on June 30. Cutlery must have the name of the maker die-sunk upon it after Oct. 1, 190 Dingley rates on views of landscapes, scenes, buildings, places or localities tracted for before July 1, 1909, remain in force until Oct. 1, 1909. Tax of $7 a ton on pleasure yachts must be paid annually on Sept. 1. A concurrent resolution, approved August 5, provided that the Committe House (H. R. 1438), entitled, "An Act to provide revenue, equ duties, and encourage the industries of the United States, and other purposes," by striking out the word "general" wherev occurs in section 2 of said bill, and inserting in lieu thereof word "maximum," and they are further authorized to enroll paragraph 450 as fol 450. Hides of cattle, raw or uncured, whether dry salted or pickled, sha admitted free of duty: Provided. That on and after October 1, 1909, grain, buff split leather shall pay a duty of 71⁄2 per cent. ad valorem; that all boots and made wholly or in chief value of leather made from cattle hides and cattle s of whatever weight, of cattle of the bovine species including calfskins, shall p duty of 10 per cent. ad valorem; that harness, saddles and saddlery, in sets parts, finished or unfinished, composed wholly or in chief value of leather, shall a duty of 20 per cent. ad valorem. An act, approved July 2, provided for the taking of the decennial censu 1910. It contained this general provision affecting merit appointments to government service: 1910 Census. Hereafter all examinations of applicants for positions in the ernment service, from any state or territory, shall be had in the s or territory in which such applicant resides, and no person shall eligible for such examination or appointment unless he or she shall have actually domiciled in such state or territory for at least one year previous to such examination: Provided, however, That no person afflicted with tuberculosis shall be appointed and that each applicant for appointment shall accompany his or her application with a certificate of health from some reputable physician: Provided, however, That in no instance shall more than one person be appointed from the same family. The Urgent Deficiency Appropriation Act. approved President's Travel Fund. August 5, provided a travel fund of $25,000 for the President's use in 1909-1910. Among the other acts and joint resolutions passed were: To amend the Porto Rico Civil Government Act of April 12, 1900, by providing for continuing the annual appropriations of the preceding year in case of failMiscellaneous. ure on the part of the insular legislature to authorize appropriations in any year for the support of the government; to revise the Philippine tariff. TREATIES WITH FOREIGN COUNTRIES. The Senate ratified on February 18, 1909, an agreement between the United States and Great Britain, signed April 4, 1908, for the submission to the Hague Tribunal of questions relating to fisheries on the North Atlantic North Atlantic Coast. It provided for a definite interpretation of Article I of Fisheries with the convention signed at London on October 20, 1818, by deGreat Britain. cisions given on these seven questions: Question 1. To what extent are these contentions justified? It is contended on the part of Great Britain that the exercise of the liberty to take fish referred to in the said article, which the inhabitants of the United States have forever in common with the subjects of his Britannic majesty, is subject, without the consent of the United States, to reasonable regulation by Great Britain, Canada or Newfoundland in the form of municipal laws, ordinances, or rules, as, for example, to regulations in respect of (1) the hours, days or seasons when fish may be taken on the treaty coasts; (2) the method, means and implements to be used in the taking of fish or in the carrying on of fishing operations on such coasts; (3) any other matters of a similar character relating to fishing; such regulations being reasonable, as being, for instance: (a) Appropriate or necessary for the protection and preservation of such fisheries and the exercise of the rights of British subjects therein and of the liberty which by the said Article I the inhabitants of the United States have therein in commmon with British subjects; (b) Desirable on grounds of public order and morals; (c) Equitable and fair as between local fishermen and the inhabitants of the United States exercising the said treaty liberty and not so framed as to give unfairly an advantage to the former. It is contended on the part of the United States that the exercise of such liberty' is not subject to limitations or restraints by Great Britain, Canada or Newfoundland in the form of municipal laws, ordinances or regulations in respect of (1) the hours, days or seasons when the inhabitants of the United States may take fish on the treaty coasts, or (2) the method, means and implements used by them in taking fish or in carrying on fishing operations on such coasts, or (3) any other limitations or restraints of similar character: (a) Unless they are appropriate and necessary for the protection and preservation of the common rights in such fisheries and the exercise thereof; and (b) Unless they are reasonable in themselves and fair as between local fishermen and fishermen coming from the United States, and not so framed as to give an advantage to the former over the latter class; and (c) Unless their appropriateness, necessity, reasonableness and fairness be determined by the United States and Great Britain and the United States concurs in their enforcement. Question 2. Have the inhabitants of the United States, while exercising the lib-| erties referred to in said article, a right to employ as members of the fishing crews of their vessels persons not inhabitants of the United States? Question 3. Can the exercise by the inhabitants of the United States of the liberties referred to in the said article be subjected, without the consent of the United States, to the requirements of entry or report at custom houses or the payment of light or harbor or other dues, or to any other similar requirement? Question 4. Under the provision of the said article that the American fishermen shall be admitted to enter certain bays or harbors for shelter, repairs, wood or water, and for no other purpose whatever, but that they shall be under such restriction as may be necessary to prevent their taking, drying or curing fish therein or in any other manner whatever abusing the privileges thereby reserved to them, is it permissible to impose restrictions making the exercise of such privileges conditional upon the payment of light or harbor or other dues, or entering or reporting at custom houses or any similar conditions? Question 5. From where must be measured the "three marine miles of any of the coasts, bays, creeks or harbors" referred to in the said article? Question 6. Have the inhabitants of the United States the liberty under the said article or otherwise to take fish in the bays, harbors and creeks on that part of the Southern coast of Newfoundland which extends from Cape Ray to Rameau Islands, or on the western and northern coasts of Newfoundland from Cape Ray to Quirpon Islands, or on the Magdalen Islands? Question 7. Are the inhabitants of the United States whose vessels resort to the treaty coasts for the purpose of exercising the liberties referred to in Article I of the treaty of 1818 entitled to have for those vessels, when duly authorized by the United States in that behalf, the commercial privileges on the treaty coasts accorded by agreement or otherwise to United States trading vessels generally? |