The San Francisco Call. Newspaper, November 19, 1895, Page 1

TOLUME LXXVIIL—NO. 172. SAN FRANCISCO, TUESDAY MORN NG, NOVEMBER 19, 1895. PRICE FIVE CENTS. WAR ON THE TRUSTS, Important Crusade Against Combines Begun in New York. A RULING ON TOBACCO. Decision of the Attorney-General Adverse to the American Company. RELIEF FOR THE DEALERS. Unlawful Methods and Contracts That Will Not Be Tolerated in tha State. SYRACUSE, N. Y., Nov. 18.—Attorney- General Hancock this evening gave out his ision in the case of C. Whelan & Co. of Syracuse against the American To- bacco Company, a proceeding prelimin to the commencement of an action to pro- | hibit the American Company from doing business in this State. The Attorne; he petition of the plainti believed that this is a | first step in a movement against the differ- ent trusts, and that eventually the legality of the business in sugar, leather, etc., by the combined companies will be subject to | like review in the courts. The efforts of | the Chicago gas combine to secure incor- poraiion in this State is thus headed off. It is understood in Syracuse that Attor- | eneral Hancock is acting in sym- | with Governor Morton’s wishes, inst the tobacco trust Attorney-General are to the effect that 90 per er of the cigarettes manufac- 1 sold in this and other States are roduct of the American Tobacco Com- sed of generally through agents, are the coumissions allowed made by them. In other lesale dealer, or whoever | and to place the State in the unfortunate | position of having no power to protect its | citizens against conduct of a foreign com- pany which would not be permitted in the case of a domestic corporation.” ‘ . | RETURNED WITH A GUARD. Mayor Gratzier Defiea All Warnings to! Remain Awey From Indian Territory, VINITA, Ixp. T., Nov.18.—At an elec- tion at Afton last August serious trouble | arose and Mayor Gratzier tried in vain to 'MISSIONARIES GUARDED. | preserve order. He was asked to appear before the Dawes Commission, and he did | so. His enemies charged that he had done | so in behalf of the *“intruders,’” and he was i finally forced to go to Southwest City, Mo., | because of threats agamnst him. He was | warned not to return, but he did so under | escort of Federal-officers and declares that | he will stay there despite threats Gratzier wrote to the Dawes Commi regarding the matter, sending an aff and Saturday received a note from Chair- | man Henry L. Dawes, saying: “We have | forwarded the paper to the Secretary of the Interior and have suggested that he at once wire the chief of the Cherokee Na- tion, requiring him to protect you, which | we think will be done.” e CHARGES OF FRAUD MADE. Suit of @ Populist to Oust a Republican From Office. z., Nov. 18.—Charges of | fraud in connection with the late election | will be the bs for a mandamus suit in the Supreme Court to-morrow morning, | wherein District Judge Welty (Pop.) of the Fifteenth District seeks to oust his | successtul Republican opponent, G. W. | Norrfs. He claims that the Furnas County ballots were tampered with, and names | James Anderson, a Republican attorney, | as the guilty person. | In the Fourteenth District, Judge Alfred | Bartoro (R.) contests the election of W. H. | Westover (Pop.), but makes no charges of | fraud. | CUT THE TRAIN N WO LINCOLN, N Daring Raid of Masked Men on the Great Northern Passengers Left to the Mercy of the Robbers, but the Express-Car Taken Away. ¢ be that obtains this commodity from the company for the purpose of con merce, is at once turned into an agent of the comp: and subjected to its direction | and control as to the terms and manner in | which he shall dispose of this particular | line of good It is claimed upon the part | of the petitioner that the real object and | purpose of this arrangement and method | ness is to compel jobbers and from selling any cigar- | the | of doing | dealers to refr: ettes except those manufactured by company,and thet if they handle other brands the company refuses to consign | any further goods to them, and that, inas- | much as.the larger part of the cigarettes | manufactured and sold are produced by the factories of the company, such a with- | ] results in a great injury to, if nota | destruction of, the business of said manu- | réad tending to éstablish this claim of me} petitioner. From the evidence submitted | to me the court would be authorized in | holding that far the larger portion of | s disposed of in New York are the | ictof this company, consigned to sa- called agents -and sold by them under an | angement, express or implied, that they | handle the goods of no other manu- | rer. The consolidation of the original | s or.corporations of their constituent | s into one corporation necessarily tes any competition between them, t and the sale of goods by the aggregation | ving already substantial influence on | e market, upon condition that the pur- | chaser shall not handle the goods of any other firm or corporation, necessarily has a tendency to complete and continue a monopoly of the market as far as the par- ticular commodity is concerned. “Evidence of this method of transaction of business would, in my judgment, be competent to prove an original unlawful combination or scheme upon the part of the organizers of the corporation. If I correctly understand the position taken by the learned counsel for the company, while disputine the charges that the officers of the company have adopted any such method of transacting business as I have indicated, they claim the right to impose these conditions. I don’t so understand the law as applied to the facts of this case. In my judgment a corporation doing busi- ness in this State and having substantial control of the market ought not to be per- mitted to impose a general prerequisite on the purchasers of its commodities, whether designated as agents or not, that they shall obtain goods from no other source. The enforcement of such a condition must necessarily operate as a restraint on trade and prevent competition. The purchaser who deals in the merchandise of the cor- poration enforcing the restriction is pre- vented from selling the wares of any other manufacturer, and on the other hand his customers must take the goods furnished by:the party exacting the evidence to the demand or go elsewhere to make their pur- chases. “To carry out such a rule to its logical sequence would enable the wealthy cor- poration which has obtained a monopoly of the market to continue the monopoly and to drive out of business poorer and less fortunate competitors. -Ample authority been conferred upon our courts to ise and keep within the lines of law corporations organized in pursnance of the tutes of the State of New York. They 2y be restrained from transacting busi- ness not authorized by their articles of 1n- corporation, or from exercising any fran- ise, liberty or privilege not authorized by The courts may annul the corporate existence of a corporation which transacts an illegal business or impose asa condition of further existence a discontinuance of illegal methods. I have no doubt that | they have sufficient jurisdiction over a foreign corporation to restrain it from transacting an illegal businessor from pur- suing illegal methods here, or in a proper case to cancel the certificate of authority granted such company. To hold other- wise would be to allow immunities and | robbery was made up of three day coaches, | | | | | | | | Road. | | | ST. CLOUD, Mixx., Nov. 18.—A Great | Northern train was held up by masked men three miles west of here this evening. | The robbers ¢ut the train in two and or- | dered the engineers to go ahead. On ar- riving here a posse was organized, who made up a special train and left for the scene of the hold-up. | The train which was held up was No. 3 which left Bt. Paul at 7:45 this evening. The engineer said he was making the usual time and was nearing a switch when he was signaled by a red lantern. He | came to a stop, thinking he would have to | take the siding, when his engine was boarded by four men who covered him with pistols. He was made to hold up his bands and remain quiet until a pistol shot was heard from the rear of the train. The | spokesman of the party told him to pull out and not to stop under pain of death. | The four men, all masked, then jumped from the engine. The engineer then ran the traiu to this city at a high speed and | informed the railroad peo The City | Marshal was notified and in less than an hour a posse, heavily armed, started on a | special train for the scene of the hold-up. | The Great Northern people refuse to give | out anything. The express-car, which is said to have | contained a large sum, was on that part of the train cut off with the engine, and was | brought to this city. The passengers were | leftin the hands of the robbers. The train which carried the posse te the scene of the | | which were darkened, and left here about | midnight. | RAIDS OF THE TURKS, }Massacres in Marsovan and Amasia Districts Are Renewed. Minister . Terrell Obtained an Order for Troops to Pro- tect Americans. PRESSURE ON THE PATRIARCH. | Efforts of the Porte to Get Him to| Send a Circular Letter to Armenians. LOXNDON, Exc., Nov. 18.—The repre- Bentative in Constantinople of the United Press telecraphs, under yesterday’s date, that dispatches from Sivas, dated Novem- | | | | pressing riots when engaged-in their work | Pasha, fpr his approval. | have been doubled in number, but the peo- 000 for the purpose of assisting the mobili- zation of troops, and offers to prolong the concession of the tobacco regime in ex- change for a loan of that sum. During the last two weeks a tremendous pressure has been exerted by the Porte upon the Armenian Patriarch to get him to send a circular letter to all the Armeni- ans in Asia Minor, exhorting them to keep quiet, and lend themselves to no pro- moters of disturbances. The object of the Porte in taking this step is clearly to indace the belief that the troubles are in a very great measure due to the aggressions of the Armenians them- selves, and that the troops are merely sup- of slaughter. Yielding to this pressure, the Patriarch finally drew up a note, which he sent to the Minister of Police, Mazim In the meantime telegrams were con- stantly arriving, telling of the fresh mas- sacres, and the Patriarci sent his secretary to Mazim Pasha demanding the return of his note. Innumerable reports are cur- rent in regard to thie mental and physical condition of the Sultan, one of which as- erts that he has become afflicted with insomnia and for a period of forty-eight hours has not been able to sleep. Accord- ing to this rumor he sits with his head drooping, never heeding any one who may speak to him and careless of anything that may go on about him. It is said that he no longer listens to the reports that are brought in, The specials in and about the palace ple no longer hesitate to ‘talk against the ABDUL HAMID, SULTAN OF TURKEY. ber 15, have been received there stating | Sultan in the streets and in the cafes and | ssacres in tne Marsovan and | other public places, believing that his fall that the m; Amasia districts were renewed that day. United States Minister Terrell received | fectly satistied with the results of Minister a dispatch from Aleppo on the 16th inst., | Terrill's action. saying ‘tbat a massacre had occurred at | efforts to protect the interests of America Aintab, sixty miles northwest of Aleppo. The Governor of Aleppo was immediately instructed by wire to strenuously enforce | Press to say that any newspaper or other the measures taken for the protection of | statement to the contrary is maliciously the American residents in his jurisdiction. Minister Terrell has obtained from the Porte an order for a guard of troops to pro- tect the American missionaries, who, with their families, are about to proceed to Van from Bitlis. The Porte is endeavoring to raise $1,000,- is imminent. The missionaries are per- He is ceaseless in his and Americans. = That there may be no question about this they desire the United false. Frightenod, by Earthquakes. ROME, ItaLy, Nov. 18.—The populace of Messina were badly frightened to-day by a series of, earthquakes and fled from their homes. No damage was done. FOUGHT BEFORE BUDD Savage Encounter in -the Executive’s Private * Office. HOT WORDS AND BLOWS. Attorney Mitchell Belabors Ex- Secretary Thorne With a Cane. SEPARATED BY THE GOVERNOR' Sensational Finale of the Day’s Inquiry Into the Sixth Agricultural District Scandgl. SACRAMENTO, Carn., Nov. 18.—Gov- ernor Budd’s private office was the scene of a personal combat this afternoon. John W. Mitchell, the attorney for the directors of the Sixth Agricultural Dis- trict, attacked ex-Secretary Thorne and gave him a tremendous beating with a cane. The investigation of the charges and countercharges involving the directors seemed destined for a time to end in a riot, but Governor Budd jumped into the arena, separated the combatants and then admin- istered to both a scathing tongue-lashing for having forgotten the respect due the State’s executive. Even this did not re- store quiet, and before Miichell and Thorne left the Governor’s office they had challenged each other to meet again and fight it out. The trouble occurred after the adjourn- ment of the inquiry for the day. Mr. Thorne then approached Mr. Mitchell and said: “I want to say to you that you have com- pelled some of these directors to testify to some things thatare false.” “There is a law which provides for per- jury,” retorted Mitchell. “Perhaps I may take advantage of that law,” Thorne replied. “Bee here, Mr. Thorne,” said Mitchell, “I don’t want you to address me; I don’t want to talk to you; keep away from me after this.” “Nor do T care to talk toa cur,” quietly replied Thorne. At this Mitchell caught his cane from the table and rained a shower of blows at the head of Mr. Thorne, who threw up his arm to defend himself. “Stop this fighting immediately,” com- manded the Governor in thunder tones; “I will not allow it in my apartments. It you geg.leman torget what respect is due me as Governor, I do not. If you wish to fight wait until yon get home, and then go to Catalina Island and have it out to your hearts’ content. This, sir, is no place for brawling.” +T will settle this with you elsewhere, My. Mitchell,” quietly remarked Thorne. “Come out in the hall now,” said the fiery little attorney. “No, I will not, but I assure you that you | can meet meat someother time.” Then they both apologized to his Ex- cellency, who, addressing Mr. Mitchell, said: 2 “Your apology is accepted, but I want to say to you'that you have brought serious charges against prominent ren, among whom is John Lynch, who is Speaker of the House and whom I know to be an hon- orable man. The journal of the Assembly shows these charges to be untrue. A mat- ter of this kind is very serious. You have sworn to these charges, not making them on information and belief as you should have done, but have sworn to them asa positive knowledge.” In opening the case this morning Gov- o S I vrivileges to foreign corporations to disre- gard the laws and policy of our own State ——— e ernor Budd read the charges against the directors and then said: “Gentlemen, when you were cited to appear before me, you personally requested that these charges should be heard in private, and I replied that I considered that these charges should be considered in the presence of members of the press as they were matiers pertaining to the public. Now I find . that, notwithstanding your plea of non-publicity, you have seen fit to publish your answer and counter- charges broadcast, and T am led to believe that this has been done with the idea that the existing public sentiment on behalf of your clients would probably tend to in- fluence my opinion in this matter.” This statement brought John W. Mitch- ell, the attorney for the accused directors, to his feet, and he announced that the mat- ter had been given to the press because the Governor had himself suggested 1t. “This is the first time I ever heard of this matter being kept private,” he de- clared, “nor will the stenographic reports show such to be the case, and nothing that was contained in that answer was given out by us until the original was filed in your office and became a portion of its archives, and I had forwarded a copy of it to you at Stockton, as agreed.” “This is right,” retorted the Executive “but for gentlemen who claim to pos- sess such an excellent defense it seems strange that you should file such a serious objection to this publication of the com- plaint before you had a chance to prepare an answer.” ‘I deny having done so,” interrupted Mitchell. Personally I desire full pub- licity.” “We will drop this discussion,” re- turned Governor Budd, *‘and now I want to ask, Mr. Mitchell, if you can find any law whereby these directors are authorized to vote themselves $5 per day?” “I know of no law to the contrary, and they had a right to compensation under the terms of the trust. I do not think that the legislative enactment is constitu- tional, nor do I think that the title of the land is in any way involved.” “Then why did you file those counter charges ?”’ sharply demanded the Governor. “I will answer that question later, when I come to it,”” replied Mitchell. “An act of the Legislature can never interfere with trust property, and any pbuyer in the State will agree on that point,” said the Governor, “and I want to show you, Mr. Mitchell, that when I ap- point my board—that is, if I do remove these gentlemen—my appointees will be men of undoubted character, who will not pay themselves for their services.” “There are no men in Los Angeles Gounty of more undoubted character than my clients,”” said Mr. Mitchell. “That may be very true,” rejoined the Governor. ‘*‘And now how about those re- ports made to the Board of Examiners?” “Well, there were blanks furnished to those directors, and they understood that they only haa to account for all State moneys appropriated. The money paid to the directors was money earned by the trust.”’ J. C. Newton, the president of the board, was sworn by the Governor. He said he had helped pass a resolution to pay the directors $10 a day. The agreement was made with Mr. Salisbury, who condiicted the races and the stock parade. If Mr. Salisbury had not made any profit there would riot have been any payment to the directors. The agreement was that the association was to receive 334 per cent and pay all costs of advertising and other expenses. They did this because it was necessary for the success of the meeting that they give it their support, and they could not afford to give the time without remuneration. “Did yon believe that you were entitled to this $10 a day ?"’ asked the Governor. “Idid,” was theanswer, “else I wouldn’t have taken it.” “You did not make it public?” was the further question. ‘“You did not have it placed in the minutes, did you?” “No, it was not placed in the minutes,” the witness answered. “Now, 1 want to know,” questioned the Governor, “were you advised in regard to this bill that passed the ldst Legislature ?”’ e [Continued on Third Page.y - Y . — THE NEW CITY HALL THAT ARCHITECT CULBERTSON THINKS SHOULD BE BUILT IN OAKLAXD. «The above building, with Washington street passing through it to San Pablo avenue,” said Mayor Davie, “is undoubtedly the best solution yet offered for solving the problem of how to relieve the great traffic that now renders life unsafe at Fourteenth street and San Pablo avenue. will be erected for several years, it is a necessity even now. The present City Hall is no bigger than it was when it was built, while Oakland is considerably enlarged. Such a building could contain all the municipal departments, and would materially increase the value of that part of the city. "It isfor just such improvements that this city should issue bonds. With such a’building all the Washington-street traffic could cross right over to San Pablo avenue, instead of turning along Fourteenth street and joining the Broadway traffic at a very dangerous point.” While it is not likely that any such building NO EXCLUSIVE RIGHTS, Contracts of the Western Union Company Are Void. UNION PACIFIC WIRES, They Must Be Maintained by the Railroad Company as Congress Directed. AGREEMENTS ARE ANNULLED' Important Decision of the Snpremej ; Court Relating to Government- Aided Roads. WASHINGTON, D. C., Nov. 18.—The ° long-pending case of the United States against the Union Pacific Railroad Com- pany and the Western Union Telegraph Company was settled to-day by the unani- mous decision of the Supreme Court, ane nounced in an opinion delivered by Mr, Justice Harlan. The decision is one of the most important that has been made by the Supreme Court affecting the relations of the Government and ihe Pacific railroads, declaring as it does that Congress has the right to add to, amend, or alter the acts of 1862-64, granting aid in bonds and land to the company for construction of its line. The proczeding involved in the present decision was brought by the Attorney-General in pur- suance of provisions contained 1n the An- derson act of 1888, which required all com- panies engaged in ovperating railroad or telegraph lines which bad been aided by the Government to maintain and oper- ate, through their own respective corpo= rate offices, telegraph lines for ali pure poses, and to exercise by themselves all the telegraph franchises conferred upon them. The suit was brought in the Circuit Court for the Eighth Circuit and origine ally heard by Associate Justice Brewer, who declared the agreements between the ‘Western Union and the Union Pacific Telegraph Company, by which the former beld exclusive rights to operate the teles graph lines along the railroad of the late ter, to be null and void and of no effect, and directed the Union Pacific to at once put an end to all relations between it and the telegraph company and to operate its own line of telegraph. The case went to the Circnit Court of Appealsana Judge Caldwell and Judge Thayer reversed Judge Brewer in a modified decree, but holding generally that the end sought by the Gov- ernment could be secured only by other legal meahs, and dismissing the bill for want of jurisdiction. The Supreme Court by its decision to- day reversed the decree of the Court of Appeals, and affirmed that of Judge Brew- er. Justice Brewer took no part in the consideration of the case before the Su- preme Court. In ‘his opinion, Mr. Justice Harlan said, in reference to the object and scope of the Pacific railroads acts, that the first eight sections of the acts of 1862-64 are wholly inconsistent with the idea that the Union Pacitic Raiiroad Company could have fulfilled its obligations to tLe Government by simply constructing a rail- road without making any provision what- ever for the construction or operation of a telegraph line, thereby leaving all com- munication by telegraph along its route to the absolute control of private corpora tions deriying no authority from the Na. tional Government, and whose operations would not ordinarily be subjected to Na- tional supervision. As to the power of Congress to alter or amend the acts of 1862-64, after discussjng their provisions at length, Justice Harlan said: “We perceive no escape from the con- clusion that it is entirely competent for Congress to add to, alter or amend those acts so as to require the Union Pacific Railroad Company (having the rights and exerting powers of its constituent com- panies), to maintain and operate by and through its own officers and employes telegraph lines for railroad and other pur- poses, and to exercise itself and alone all the telegraph franchises conferred upon it. It is enjoying the bounty of the Govern- ment, subject to the condition, among others, that it would perform those duties whenever so required by Congress.” The opinion further holds that since the passage of the act of 1868, no telegraph company can, by contract with a railroad company operating one of the powerful roads of the United States, over which interstate commerce is conducted, acquira an exclusive right to such railroad for telegraph purposes. The cause was remanded to the Circuit Court, with instructions to make a supple« mental decree enlarging the period which the railrcad and telegraph com- panies may make such arrangements, ad« justments and changes as shall become necessary by reason of the annulling of the contracts between them to carry out - the provisions of the final decree of that court. CAPSIZED IN HEAVY SEAS. 4 Another Fersion of the Loss of a British - Warship’s Launch. 52 LONDON, Exc., Nov. 18.—A dispatch from Hongkong to a news agency says .. that while the launch of the British war- ship Edgar, containing seventy-one men, . was returning to the ship with reefed sails - in a heavy sea and strong wind, she cap- sized seven lengths from the ship and all pbut twenty-three of Ler occupants were' . drowned. This is undoubtedly another- - version of the report received from Yoko-- hama a few days ago of the loss of the Edgar’s launch with forty-eight men. S et ARABS DEFEAT THE TURKS. Ottoman Troops Driven Back in Three Successive Fights. ADEN, AraB1a, Nov. 18.——A serious out~ break has occurred in Yemen, the prin< cipal division of Arabia. The Imaum of Sana, in Yemen, at the head of 45,000 Arabs, armed with Martini-Henry riflles, has defeated the Turkish troops in three successive fights. The Turks are now inside the walls of the town of Sana, ‘which iaclosely invested by the Arabs.