Grand Rapids Herald-Review Newspaper, August 8, 1903, Page 7

ie j if v - MERGER DECISION IS AGAINST THE STATE SECURITIES COMPANY IS DECLARED A LEGA HOLDING AND NOT A RAILWAY COMPANY. Judge Lochren Holds it Does Not Violate Law Against Consolidation of Roads and State Anti-Trust Law—The Decision Rendered. ‘St. Paul Dispatch, Aug. 1. The merger wins a complete victory in the case brought against it by the state of Minnesota, Judge Lochren decides that it does not violate the state act prohibiting combi- nations in restraint of trade, nor the act prohibiting the consolidating of parallel and competing railroads, for the reason that it is not a railroad company. ‘The Northern Securities company is de- scribed as an investigating company, with no control over the operation of the roads whose stock it holds. The judgment says there is not a scintilla of evidence to show that the Northern Securities company has ever ssought to control or interfere with either railroad affected, in respect to operation or management. The merger is held guiltless of any at- tempt or act in direct restraint of trade. ‘The stock holdings of the corporation, it is decided, can have nothing to do direct- dy or indirectly with trade, commerce, transportation or rates. The contention that because it was to the pecuniary interest of the incorpora- tors of the merger to consolidate the Great Northern and Northern Pacific sys- tems, such consolidation was actually made, is rejected on the ground that an act to advance pecuniary interest cannot ‘be held to imply intent to commit a penal offense. # The decision flatly controverts the con- tentions of counsel for the state that the merger can in any sense be considered a failroad company, because it owns a ma- jority in the stock of both. It holds the stock as an investment, and has never attempted to control the operation of ei- ther system. ! ‘The claim of state’s counsel that the acquisition of a majority of the stock of any railroad is in fact a purchase of that road is controverted in the decision. The judge frankly confesses that he cannot concur in the view of the case taken by Judges Thayer, Sanborn and Caldwell in the suit brought by the fed- eral government against the same corpo- ration. The Decision. ““This cause came on for final hearing at St. Paul, June 5, 1903, upon the bill, answers and testimony taken and on file. That the cause is one of equitable cogni- zance and that this court has rightful ju- risdiction of the same was conceded by counsel. The cause was fully argued. and upon full consideration the following facts @ppear and are exhibited: Burlington Purchase. “The purpose of the Burlington system by the Great Northern and Northern Pacific, which was com- pleted about April 1, 1901, led the man- agers of the Union Pacific company to fear a diversion of this traffic from the railway of the Union Pacific to the rail- ways of the two purchasing companies; and Edward H. Harriman, representing the Union Pacific company, applied. to James J Hill and J. Pierpont Morgan, who respectively represented the Great Northern and Northern Pacific companies dn such purchase, to permit the Union Pacific company to join and share with them in the purchase of the Burlington system; but his application was de- clined, “Thereupon tne said Harriman and -others acting in the interest of the Union Pacific company began rapidly and quiet- ly to purchase the stock of the Northern Pacific company, intending thus to ac- quire a majority of that stock and the control of that company, with its half interest in the Burlington system, “The common stock of the Northern Pacitic company was $80,000,000, and it had issued, and had outstanding pre- ferred stock to the amount of $75,000,000, which had the same voting power as the common stock, but which the company by the action of its directors might pay off at par, and thus retire on the first day of January, 1901, or on the first day of any succeeding year. During the month of April and first week in May, 191, the said Harriman and others act- ing with him in the interest of the Union Pacific company purchased and held a little more than $37,000,000 of the com- mon stock, and a little more than $41.- 000,000 of tne preferred stock of the Northern Pacific company, being more than $78,000,000 in all, and’ more than a majority of the aggregate of the com- 4 mon and preferred stock of that. com- pany. “But in the first week of May, 1901, J. P. Morgan & Co., becoming apprehensive, purchased $15,000,000 of the common stock of the Northern Pacific company, which with their previous holding of that stock and those of Mr. Hill and other stock- holders of the Northern Pacific company who in this matter acted with Mr. Mor- gan, gave the latter the control of more than $41,000,000 of such common stock; being more than a majority of that stock. As it was known that Mr. Morgan and his associates would insist upon the pay- ment and retirement of the preferred stock on Jan. 1, 1! and that the board of directors of the Northern Pacific com- Serr would take action to that end. Mr. arriman and his associates abandoned their attempt to obtain the control of ‘that company. Securities Company. “The attempt in the interest of the Union Pacific company to purchase a ma- jority of the stock of the Northern Pa- cific company and obtain the control of that company, and through it of the Bur- ington system alarmed the managers and stockholders of the Northern Pacific company. and led them to consider the feasibility cf forming a holding company which should purchase or secure in ex- change for its own stock more than a ma- jority of the stock of the Northern Pa- | eific company, and hold the same secure @gainst any raid in the future in the in- terest of a rival or hostile railroad. “Mr. Hill and the stockholders referred to of the Great Northern company were likewise alarmed by such attempt in the interest of the Union Pacific company to obtain control of the Northern Pacific nd through it of the Burlington system, ‘@ result which they apprehended would injuriously affect the property of the Great Northern ratiroad, and the country traversed by it and by the Northern Pa- cific railroad. And in the peoiect, of es- blishing a .hoiding. .com| Oo. purs Haat hela ae nadority the Northern Pacitic company they joined for the purpose of seiling to such holding company and placing therein their own’) | Stock in the Great Northern company and permitting all other stockholders of the game company who might choose to do likewise, and thus accomplish their pur- pose above stated of giving permanency to the management and policy of the Great Northern company. Not Done by Companies. sy incorporation of the Northern Se- eurlties company under the general laws of New Jersey and with a capital of $00, f was completed Nov. 13, 1901. Hitlestey Great Northern company nor if the stoc’x of the Northern Pacific company, by any act of its directors, or any comporate, had anything to do with the formation or subsequent action of the, Northern Se- curities company: but Mr: Morgan, Mr. Hill and other stockholders of the North- ern Pacific company and Great Northern company were individually the promoters who caused and procured the incorpora- tion of the Northern Securities company for the purposes above stated. “The Northern Securities company when formed offered and agreed to pur- chase and to pay for in its own stock at part ($100 per share) any stock of the Northern Pacific company at the price of $115 per share and any stock of the Great Northern company at the price of $180 per share; and large amounts of the stock of said two railroads were at such rates and so paid for, purchased from said promoters and other stockholders of said two railroad companies by said Northern Securities company. “About the same time Mr. Harriman and his associates sold to J. P. Morgan & Co. all the Northern Pacific company stock which they had purchased as afore: said—both common and preferred— amounting to more than $78,000,000, and said J. P. Morgan & Co. at the same time sold all the same stock to the North- ern Securities company, who paid the consideration therefor directly to Mr. Harriman and his associates; a part ot such consideration being something more than $82,000,000 of the stock of said Northern Securities company. That pur- fr was completed on Nov. 18, 1. company paid off and retired its preferred | stock, having raised the money for that purpose by an issue of bonds, which were made convertible, and were converted into common stock of that company. Oth- er stockholders of each of said two rail- road companies sold their stock to the Northern Securities company, receiving in payment or exchange therefor, at the rates aforesaid, stock of the last named company so that by Dec. 1, 1901, said Northern Securities company had become the owner of considerable more than a majority of the stock of the Northern Pacific company, and a large amount, but less than a majority of the stock of the Great Northern company. Similar pur: chases from stockholders continued, and at the time of the commencement of this Suit the Northern Securities company had become and still is the owner of about 96 per cent of all the stock of the North- ern Pacific company and of about 76 per cent of all the stock of the Great North- ern company. Conclusions of Law. “Ftrst—It is obvious from the fore- going facts that the Northern Securities company was incorporated with the pur- pose and intent on the part of its pro- moters that it should acquire by purchase, by exchange for its stock, and should own and control a considerable majority of ull the stock of the Northern Pacific company, and thus secure that company against the danger of any future raid upon its stock which might place its man- agement and the resulting control of the Burlington system in the power of any rival railroad corporation, whose interests might be hostile to the development and property of the Northern Pacific and Great Northern companies, and their sea~ board terminals, and of the region of country traversed by their railroad sys- tems. “This was the avowed purpose of Mr. Morgan and his associates who acted with him in this matter, including Mr. Hill and other large stockholders of the Great Northern company, who also held large amounts of stock in the Northern Pacific company and were apprehensive that any hostile control of the Northern Pacific company which might sacrifice its interests to a rival, would be disas- trous to the development and prosperity of the Great Northern company. , And at the very time when the Northern Se- curities company was formed and incor- porated, by means of the large holdings of Northern Pacific company stock 34 himself and his associates acting wit! him and by the then purchase by J. P. Morgan & Co. of the Harriman holding of such stock, said J. P. Morgan was able at once to transfer and have trans- ferred to the Northern Securities com- pany a large and controlling majority of the stock of the Northern Pacific com- pany as was done; thereby accomplishing (as was believed) the purpose of securing that stock against hostile raids in the future. No Purpose to Control. “With respect to the stock of the Great Northern company the evidence shows that when the Northern Securities com- pany was incorporated {t was the purpose and intent of Mr. Hill and other large stockholders of the Great Northern com- pany who acted with him to sell and di pose of to the Northern Securities com- pany for its stock, their several hold- ings of stock in the Great Northern com- pany aggregating then about $35,000,000 to the end that such large amounts of Great Northern company’s stock should be kept together, and (as it was hoped) aid in giving permanency to the manage- ment and policy which had controlled and was controlling the railway and develop- ment of that company. And it was their purpose that all other stockholders of the Great Northern company who might choose to do so, should be permitted to sell or exchange their stock of that company for stock of the Northern Se- curities company on the same terms; and it was hoped and expected that many would do so. “But the said Hill and his associates able them to transfer or cause to be transferred to ‘the Northern Securities company so much as one-fourth of the Stock of the Great Northern company. The evidence, therefore, fails to show that the Northern Securities company was formed for the purpose of acquiring ard holding a majority of the stock of the Great Northern company, as well as that of the Northern Pacific company, al- though that result followed soon after, and may have been desired and antici- pated. State Anti-Trust Law. “9 One question in this cause is whether the acquisition by the Northern Securities company, in the manner above stated, of a majority of the capital stock of both the Great Northern and Northern Pacific companies. which own and operate parallel and competing railroads across the State of Minnesota, and its ownership of such stock is a violation of the Minne- sota anti-trust law—Laws of Minnesota 1899, ch, 35%-which provides, as above stated, that: ‘Any contract, agreement, arrangement, or conspiracy, or any com- of a trust or other- into which is in commerce within bination in the form wise hereafter entered restraint of trade or this state . 0. - and declared to be unlawful. “Language in the act extending these provisions to interstate commerce is here omitted and disregarded aud the act con- sidered valid as to trade and commerce within the state, that being a proper sub- fect for state legislation, though carried on by the same instrumentalities used in interstate commerce. The langua, just quoted is evidently taken from, the act of congress of July 2, 1890 (26 Stat. 209; C. 647). known as the Sherman anti-trust the supreme court of the United States in several cases. Effect Must Be Direct. “The proper construction of the Sher- man anti-trust act, so far as it relates to railroad trarwportation, as deduced from these decisions of the supreme court ap- pears to be this: el ; “On Jan. 1, 1902, the Northern Pacific | had no power or control which could en- ' is hereby prohibited |: act, which has received consideration by. Mes to raflroads. And between road - a havt othe ‘(a) The act a) all conitecta ee a panies. ‘the purpose ani effect of BE competiti rates, or empowering persons to fi and agreeing to conform to them when fixed, are in restraint of trade and within the provisions of the statute, whether the rates so fixed are reasonable or un- reasonable. “(b), That contracts between divers manufacturers of a commodity ‘respect- ing their sales of that commodity to be delivered by them outside the state, hav- ing the direct effect of stifling compet: tion and raising the cost of the article to the purchaser, és also in restraint of trade and within the statute. “(e) That contracts which do not di- rectly and necessarily affect transporta- tion, or ratés therefor, are not in re- straint of trade, or within the statute, even though they may remotely and ii directly appear to have some provable effect in that direction. “The state anti-trust act must have the same construction in respect to traf- fic on railroads within the state. Does Not Control. “Neither the Great Northern company nor the Northern Pacific company were parties to, or in thei> corporate capacity had anything to do with the formation of the Northern Securities company, nor of any of the contracts or proceedings complained of in the bill. The Northern Securities company is merely an investor in and owner of a majority of the stock of each of these two railroad companies. It is not a railroad company, and has no franchise or power to manage or op- erate or direct the management or op- eration of either railroad in respect to rates or charges for transportation, or otherwise; and there is no scintilla of evidence that it has sought to control or > erp in respect to any of these mat- ers, “It has, therefore, done no act and made no contract in restraint of trade or commerce. Owning now a majority ‘of the stock of each of these railroad com~- panies, it has the power by voting its stock to elect the board of directors—the governing body—of each of these rail- road companies. But the board of di- rectors of each is a different body from the board of directors of the other, as no director of the Great Northern company can be a director of the Northern Pacific company. The directors of each railroad company will appoint its managing and other officers, and control its business and policy. Presumably they will seek, in lawful ways only, to increase the busi- ness and property of the railroad which they as directors represent. “The action of the defendant Hill in promoting the formation of the North ern Securities company, under the cir- cumstances and for the purposes which the evidence discloses, and investing in its stock by the sale to it of his stock in the two railroad companies, involved no act or contract in restraint. of trade or commerce, or affecting transportation or rates, more than any ordinary trans- fer of railroad stock from one person to another. Differs With Other Court. “That my judgment, after most _care- ful consideration of the facts and_ the law applicable thereto, as construed by the highest court, leads me to the con- clusion that none of the defendants have violated the Minnesota anti-trust act, a conclusion apparently contrary to that reached by eminent judges who, in this court, recently decided the case of Unit- ed States vs. Northern Securities com- any, 120 Fed., 721, and who will doubt- less in another court review this cause upon appeal, has necessarily caused hes- itation and careful examination. But the rights of litigants and my own sense of duty alike requires that my own delib- erate judgment, guided by my _ under- standing of authoritative expositions of the law, be given in all causes tried be- fore me. “The decision of the case last cited, as I read it and understood it, does not specify or point out any contract, agree- ment or act on the part of the defend- ants, or any of them, which is directly in restraint of trade or commerce, or which has any direct reference to trade, commerce, transportation or rates; nor even any threat or avowed purpose on the part of any defendant to“ do any such act, or enter into any such con- tract or agreement. “But it is argued that because the Northern Securities company has become the owner of a large majority of the stock of each of the two railroad cor- porations it will be for its interest to suppress competition between them, causing the two boards of directors of these railroad corporations, which it can fill by election, to enter into arrange- ments or agreements in restraint of trade, which will suppress competition: and as a corollary to this reasoning (or conjecture) the dec! holds that the formation of the Northern Securities company, and purchase by it of a ma- jority of the stock of each of these rail- road companies, are acts or contracts in restraint of trade, though of themselves, and without further action (not yet taken, and perhaps never to be taken) by the directors of the two railroad com- panies, the formation of the Northern Securities company and its holdings of stock has and can have nothing to do directly or indirectly with trade, com- merce, transportation or rates. Guilty Before Offending. “To epitomize this decision: It is held that it will be for the interest of the Northern Securities company to restrain trade by suppressing competition between these two railroad companies; and that by coercing or persuading the two boards of directors, whom it has the power to elect, it will certainly cause them to commit highly penal offenses by enter- ing into combinations, contracts and ar- rangements in restraint of trade, in vio- lation of the anti-trust act, and hence the Northern Securities company is al- ready guilty of these offenses that have never been committed or thought of by its officers or promoters so far as ap- pears; and it must be suppressed and de- stroyed. “I am compelled to reject the doctrine that any person can be held to have com- mitted, or to be purposing and about to commit a highly penal offense, merely because it can be shown that his pe- cuniary interests will be thereby ad- vanced, and that he has the power either directly by himself, or indirectly through persuasion or coercion of his agents to compass the commission of the offense. No Consolidation. “Third—The charge in the bill that the acts of the defendant contravene the statutes of Minnesota prohibiting the consolidation of parallel and competing lines of railroad presents a different question. “Chapter 29, General Laws of Minne- sota, 1874, provides as stated: “‘No railroad corporation or the les- sors, purchasers or managers of any rail- road corporation, shall consolidate the stock, property or franchise of such cor- poration with, or lease or purchase the works or franchise of, or in any way control any other railroad corporation owning or having under its control a parallel or competing line.” “This is the only statute on that sub- ject of consolidating parallel and com- peting railroads that need be considered. as it covers whatever is contained in any other. This statute is a valid exercise of the police power of the state. Louis- Me etc., Railroad ys. Kentucky, 141 U. . 6 “(he prohibition against consolidating applies: “1. To railroad corporations—The Northern Securities company is not a raflroad corporation, and neither — the Great Northern company nor the Northern Pacific company in its corporate capacity, did any of the acts charged. “2. Lessees of railroad corporations— There are none. Not p Purchaser. “3. Purchasers of railroad corno- rations—Construing this term as apply- ing to those who acquire by deed or de- cree, having capacity to hold and enjoy the franchises and operate the railroad— there Were none in this case. “4. Managers of. railroad corpora- tions—A railroad manager is the per- son having the administration, chorge and oversight of the operation and busi- ness of the railroad. Among the parties concerned, Mr. Hill alone was a railroad manager. He did not effect any consoli- daticn. He promoted the formation of the Northern Securities company, and sola to it stock of both railroad com- panies. “But the complainant contends that had about Dec. 1, 1001, become the. owner of a and trolling majority of the stock of the - Pacific company, it became cn within the mea 01 that word es. used. inthe act of disabled fro: did, a controlling majority of the stock of the Great Northern company. “And upon the subject of purchasing a railroad by buying all the stock. 1 am cited to chapter 84, neral Laws of Min- nesota, 1881, which provides that any railroad corporation may lease or pur- chase or become the owner or control or hold stock of any other railroad, when their respective railroads can. be con- nected together and form a continuous line with or without branches. But in that case the purchase of the stock would be by a railroad corporation having ca. pacity to operate the railroad, éven aside from the authority to do so either ex- pressly or impliedly granted by this stat- ute; and’ such railroad -could therefore rightfully assume the. control, manage- ment and operation of the railroad, the stock of which it had so acauired. Pea Il Case. “T am also cited to the case of Pear- sall vs. Great Northern Railway, 161 U. S. 646. ‘ “The case is far from sustaining the idea that if a single investor in railroad stocks, whether a natural person or a corporation without railroad franchises, should acquire by purchase a majority or the whole of the stock of both the Northern Pacific company and the Great Northern company that’ would work any consolidation of those two companies, or that such purchaser would have any power to manage or operate the railroads of both or either of said railroad com- panies. * “In the case under consideration the court is careful to note the difference in effect between the purchase of a controll- ing majority of the stock of a railroad corporation by a rival railroad corpora- tion which might control, manage and op- erate it, and a purchase of the same stock by an individual or individuals, though holding whatever amount of stock in the same riyal railroad company. The court says: “Doubtless these stockholders (of the Great Northern company) could lawfully acquire by individual purchases a ma- jority, or even the whole of the stock of the reorganized (Northern Pacific) company, and thus possibly obtain its ultimate control, but the companies would still remain separate corporations with no interests, as such, in common.’ “It follows that as the Northern Se- curities company is merely an investor in the stocks of these railroad corpora-. tions, not being itself a railroad corpora- tion, and being without franchise, power or authority to manage, control or op- erate any railroad, its ownership of a ma- jority of the stocks of these two railroad companies does not come within the pro- hibitive language of the statute of 1874. Separate Corporations. Y “The two companies ‘still remain sep- arate corporations with no interests, as such, in common,’ The case would not be different if'one natural person with abun- dant capital should invest in the majority of the stocks of one of these companies, and another like person should invest in the majority of the stocks of the other company. The interest of the two, if they chose to act in harmony, would be the same as the interest of one person owning the whole. State Fixes Rates. “The policy of the state in respect to the operation and management of rail- roads is disclosed by its statutes; espe- cially by sections 379 to 403, vol. 1, Gen- eral. Statutes of Minnesota, under the heading of ‘Railroad and Warehouse Commission,’ which closely follows the provisions of congressional legislation re- specting interstate commerce, and under clearly specified regulations places the su- pervision, oversight and control of those matters, particularly the rates for trans- portation, in the hands of the designated state officials. “It is plain from these statutes as con- strued by the supreme court of the state, that it is the ee of the state that the railroads, with their rolling stock and appliances shall be kept in a high state of safety and efficiency; and that rates of transportation, while kept ample to secure such result, shall always be fair, reasonable, stable and uniform. Sched- ules of rates are to be kept publicly post- ed at every station, and no change or de- viation from such published rates is per- mitted, nor any rebates allowed or ad- vantage to one shipper over another, and no change in such rates is permitted un- til after ten days previous published no- tice has been given. “Under this system shippers can count accurately the cost of transportation as an expense in their business, with the assurance that others engaged in like business must incur exactly the like ex- pense; and untrammeled competition be- tween rival railroads resulting in rate wars, sporadic struggles for particular contracts or consignments, as well as all rebates, open or secret. all alike unfair or ruinous to carriers and shippers, are pro- hibited under penalties, and intended to be entirely eliminated and done away with; leaving as the only bases of com- petition between rival carriers the fur- nishing of the better accommodations, and the greater safety and celerity of carriage. “All complaints that published rates are unreasonable are heard and determined py these state officials, who may fix rates binding on the railroads; thus necessarily making rates uniform as between rival railroads. As a result of this policy, and the absolute power of thé state officials to fix rates, and keep them at the low- est reasonable figures, competition be- tween rival railroads no longer reduces rates, as it @id when railroad companies alone controlled them. On the contrary where two or more railroads divide the transportation between two places the necessity of considering greater fixed charges and greater cost of administra- tion and operation may make the reason~ able rate for transportation greater than if the whole business could be done and was in fact done by one railroad. No Law Violated. “However that may be, the Northern Securities company is but an investing stockholder in these two railroad compa. nies, without power to consolidate the! or to interfere with the management or. control of either. Because of its large holdings of these stocks it may elect the board of directors of each, who must be composed of entirely different persons. “Each board will appoint the officers and control the business and affairs of | its own corporation and will naturally its business and _— ‘Neither has any power to con! other nor to contract with the other in b of the commission of penal of- fonsee etait they do these things, then the anti-trust act of Minnesota will i for the first time violated, and the Ge i road corporations and their offending of cials will be amenable to punishment, a to appropriate legal or equitable proce ings. bs will be entered dismissing. the fire, A intiam Lochren, Judge. ———_— New Rain Producer. The latest Australian newspapers con-i tain particulars of some experiments which are said to have been more or less successful, of a novel method of produc- ling a downfall of rain. The inventor makes this statement: “1 claim to produce rain by sending up continuously from three centers a column of gas made by certain chemicals. The gas, if sent up for a maximum of thirty- two hours, will produce rain over a range of ninety miles at any altitude, with any sky, and with the wind from any quarter. I do not need to wait until the wind is from the usually rainy quarter. In one experiment I made the barometric condi- tions were quite unfavorable, yet I’ pro- ducer rain. The gas, you see. causes in the different strata of the atmosphere a vacuum, ‘this vacuum is the center of a heat storm and is filled by dense clouds that contain rain. These clouds come | down with the may, of the earth, when e rain descends. te che rain is different hin Be the ordinary rain found in districts in which experi- ments have been made. It is a trapical rain, coming from the very lofty regions, being slight at first, and then later de- ing in heavy showers and buckets- ful, My operations have bee: conducted in an inclosure twelve feet ; sient tat ugh I cannot. of course, give away aoores T may tell you that the chemicals Ledger. and. became. 1 acquiring, as it arear ates in accordance with: hiladelphia a2 WOMAN DEFIES A RAILROAD. She Drives Workmen Off Her Property With a Revolver. Marinette, Wis., Ang. 4—All grading work on the Wisconsin & Michigan railway near Quinessee, Mich., was stopped by Mrs. Mary McKenna, who claims that the railroad company has not paid her enough for her property. She dressed herself in man’s attire, pulled a slouch hat over her eyes and, with a stick in one hand and a reyol- ver in the other, she drove a crew of 100 Italians off her property. The Ital- ians fled like scared sheep and Mrs. McKenna is still in control of the sit- uation. Attorney E. C. Eastman, rep- resenting the railroad company, will ask for an injunction restraining Mrs. McKenna from interfering with the work. Even if the injunction is is- sued strategy may have to be used in capturing her. BATTLES IN VAIN. Mate of a Schooner Drowned When Rescue Seemed Almost Accomplished. Milwaukee, Aug. 4.—After battling in vain for twelve long hours with storm and wind and waves on Lake Michigan Saturday night Charles Mor- bach, mate of the little schooner Ten- nie and Laura, was drowned when his rescue seemed almost accomplished, and only heroic work by the captain and crew of the steamer Mark B. Covell saved the captain of the schoon- er, John Sather, from’a similar fate. The wrecked schooner, which was built twenty-seven years ago, has prob- ably been dashed to pieces by the waves before now, and its broken hulk is drifting toward the shore near Port Washington. FINDS WIFE MURDERED. in Farm House Near Pros- pect, Wis. Prospect, Wis., Aug. 4—Mrs. Henry Peske, aged seventy years, wife of a prominent farmer of Waukesha coun- ty, was found murdered in her home, one mile south of this village. She went to the house from a field whcre she had been working with her hus- band, and an hour later he entered the kitchen to found her dead. The sher- iff and a large posse heavily armed are scouring the country in search of tramps, whom they believe may have killed the woman. Tragedy STRUCK BY A FOUL. Young Woman at Ball Game Is Seri- ously Hurt. Duluth, Aug. 4.—What may prove a tragedy happened at the picnic of the Duluth & Iron Range and Duluth, Mis- sabe & Northern employes at Two Harbors. A game of baseball was one of’ the features of the sports program and a foul ball struck Miss J. Tranah of Duluth, one of the speCtators, in the breast, inflicting injuries which cause apprehension that she may not re- cover. She was brought to a Duluth hospital. WISCONSIN'S WOOZY. in the Number of Insane People. Madison, Wis., Aug. 4.—The largest number of cases of insanity in many years is shown by the report of the state board of control. For the last fiscal year, June 30, 1903, there were 197 more cases in the state than on the same date a year ago, the total in- sane population of the state under public care being 5,372, as against 5,175 on June 30, 1902. An Increa CHARGE IS LARCENY. Two Men Held to Circuit Court for Alleged Theft. Hudson, Wis., Aug. 4—John Sholl of Emerald and Henry Commer of New Richmond were bound over to the cir- ‘cuit court by Judge Disney. They were charged with robbing William ‘Langdon of Hammond of $100 a few nights ago in the barn of Philip Sholl ‘at Emerald. Bond was fixed at $800, which the pair were unable to furnish. BULLET NEAR HER HEART. Waitress Is Struck by a Stray Shot From Shooting Gallery. Fargo, N. D., Aug. 4—A stray bullet from a shooting gallery on the carnival grounds struck Miss Mary Johnson, a waitress at the Hotel Boulger, inflict- ing a painful wound through the left shoulder near the heart. She was in the hotel dining room engaged in her duties when struck. : MURDER, NOT SUICIDE. Idea Advanced That Mrs. Collins Was Victim of Foul Play. Velva, N. D., Aug. 4.—Considerable excitement prevails here owing to the suspicion that Mrs. Collins, who was supposed to have committed suicide by drowning about a month ago, wag in fact murdered. The coroner and state’s attorney are in Velva investi gating the case. Child Drowns in a Bargel. Whitewood, S. D., Aug. 4—The two- and-a-half-year-old son of Mr. and Mrs. Frank Delaney of Centennial Prairie was drowned in a rainwater barrel at their home. The barrel was placed at the corner of the house, sunk part of its height in the ground. The little boy in playing about the house fell in headforemost. It was a small barrel and there was only eight inches of water in it, but the boy was dead » ‘when discovered. ? Northwest News OOO eee SH SSOHOEHOEEEHO SOOO OOS COOSSCCOOOO OOOO EES EOEHOSOOSEHOOOOOOSS | oo oe e BIG JULY BUSINESS. Shipments From the Port of Superior Have Been Very Heavy. me Superior, Wis., Aug. 5—The port re- port for the month of July has just been issued at the office of the cus- toms officials of the city. It shows that there is an ever increasing busi- ness at this port, and the increase over the same month a year ago is very gratifying. Particularly is this true in the matter of grain and iron ore, the iron ore showing a large in- crease. It is expected that by next spring things will be so arranged that: this will be the biggest commodity in the shipments here. The three ore docks will then be in good working: order, something that has not been’ true up to the present time, the third dock having just been built aad put in’ use this spring and summer. DAKOTA WEALTH INCREASES. Missouri River Slope Shows Great Gains in Assessments. i Pierre, S. D., Aug. 5. — The state board of equalization and assessment held its first meeting yesterday and went over the real estate schedules, which show but a slight increase over last year. What is shown is prac/ tically all in the Missouri slope and west of the river, the eastern coun- ties showing practically no change. The total increase returned on ail, property is $12,567,279, bringing the’ state total to $180,000,000 outside of corporation property. The probabili- ties are that with the law assessment return the board will use a portion of the $100,000,000 arbitrary raise allowed to them by the last legislature. SKIFF CAPSIZES IN THE RIVER. Of Its Seven Occupants Three Are Rescued. ‘ Davenport, Iowa, Aug. 5.—Arvid Ro- delius of Chicago, aged ten years, and three of his young cousins whom hé& was visiting in Moline, were drowned in Sylvan slough, the south course of the Mississippi river, which runs be- tween the Government island and Mo- line, early last night, as the result of the capsizing of a skiff in which they were riding. There were seven chil- dren in the boat at the time of its sinking, but three were saved, one swimming to shore, the other two be- ing rescued. PROFESSOR RESIGNS. Deanship of a College of Pharmacy Must Be Filled Again. Iowa City, Iowa, Aug. 5.—Prof, Emil L. Boerner has resigned the deanship of the college of pharmacy at the state university—a post-he has filled . for many years. Pressure of business is the reason of the withdrawal. He is a druggist and manufacturer. The fac- ulty has decided to recommend Dr. L. W. Andrews as dean and Prof. W. J. Teeters as professor of pharmacy. ACRIMONY DEVELOPS. Albert Lea Has a War of Petitions in Full Blast. : Albert Lea, Minn., Aug. 5.—The con- test over the location of the new fed- eral building has developed consider- able acrimony. Many petitions have been circulated and citizens have been quite thoriughly canvassed in the in- terests of opposing sides. It is charged that the petitions have been padded with names of women and minors. Kentuckian on Rampage. Jamestown, N. D., Aug. 5.—James B. Rice of Kensal is confined in the coun- ty jail, having faile dto secure bail for $5,000. Rice, who is a former resident of the Green Mountains in Kentucky, became intoxicated and started out to terrorize Kensal residents. Armed with a knife he assaulted five resi- dents of the town, threatening to kill them, and they had him arrested. Girl Is Drowned. Sioux Falls, S. D., Aug. 5—A five- year-old girl, whose name could not be ascertained, but whose parents are members of one of the Mennonite col- onies in Hutchinson county, was drowned while bathing with some oth- er children below a dam in the Jim river near their home. She was taken with cramps. He Was a Valuable Husband. Redfield, S. D., Aug. 5. — An action for damages has been instituted by Eugenie Agnes Bopp against the Chi- cago & Northwestern railway in the circuit court for $75,000. Plaintiff is the widow of Fred A, Bopp, who was killed in a railway wreck at Athol, & D., on Feb. 23. Bohemian Turners Meet. Cedar Rapids, Iowa, Aug. 5.—The an- nual meeting of the Western division of National.Bohemian Turners opened yesterday with 100 delegates present from Illinois, Iowa, Wisconsin, Ne- braska, Minnesota and Kansas. Fast Fire Engine Team. Appleton, Wis., Aug. 5.—Fire Depart- ment Team No. 1 ran a half-mile, laid 150 feet of hose and threw a stream of water in1 minute and 18 seconds. This is within three seconds of the world’s record, held by the Sioux City team. Lightning’s Work. Langdon, Minn., Aug. 5.—During the recent severe electrical storm light- ning struck the large barn of Theodore Hoffman in Cottage Grove, killing a borse and consuming the building. aa ais Ss sa SS TESAET eae SE APRS eet # adr AS Fes ine ae