The San Francisco Call. Newspaper, April 4, 1901, Page 1

VOLUME LXXXIX-—-NO SAN FRANCISCO, THURSDAY, APRIL 4, 1901. PRICE FIVE CENTS. HARRIMAN SYNDICATE GIVES DEMONSTRATION OF ITS CONTROL OF SOUTHERN PACIFIC SYSTEM At the Annual Meeting in New York Fifteen Directors Are Elected, Including George J. Gould and Six Other Rep- representatives of Union Pacific---New Men on Board = — SOME OF THE PROMINENT MEN WHO WERE ELECTED DIRECTORS OF THE SOUTHERN PACIFIC COMPANY AT THE ANNUAL MEETING IN NEW YORK YESTERDAY. ENTATIVES OF THE HARRIMAN SYNDICATE AND THE UNION PACIFIC SYSTEM. RES SEVEN O; ] F THE NEW DIRECTORS ARE REP- April 3.—The Harri- n to-day that it con- the Soutliern Pacific Com- and branch. The to- f shares outstanding is 1,978,- e voted at the annual meet- hares, of which E. H fes for 991,429 shares. to the plan of 3 An amendment was passed increasing the tors from twelve to fif- ew board was then Harriman, Jacob H. , James Stillman, Otto H. Kuhn, Charles road E George J. les H H Twe ys, Edwii, Hawley, James H. Hyde, T. Jefferson Coolidge Jr., Winslow 8. Pieree, J. W. Mackay, D. 0. Mills, James Bpeyer and H Huntington, The new men are T. Jefferson Coolidge of Boston, George J. Gould, E. H. rriman, James Stillman, James H. de, Jacob H. Schiff and Otto H. Kuhn. sre representatives of the Union and the Harriman H fic which recently acquired the property, New Board Organizes. The election of George J. Gould to the board was regarded with much interest in Wi 2ll street in view of pending develop- Gould properties in the South- Although a member of the Union d and identified with the Har- icate until the present, it has nclination to prominent- £ with properties other s2n those of the Gould system. The new board met later in the day for Charles H. Tweed was re- an of the board of direc- he following execitive commit- ted: George J. Gould, E. H. dwin Hawley, Otto H. Kuhn, iff, James Spever and James 4 arles H. Tweed ex-offi- Harriman was elected chairman of executive ¢ n*iuer. !\'n other busi» =5 of pul rman TuPed. Goud s Selection Significant. The Gould's « board and Express, ion to the Southern Pacific election of Gould i= probably of from the point of view of possibie developments in the raflroad than that of any other director. His sys- tem is In & sense independent of the trans. continental but in formulating what has been termed the ‘greater Missouri Pa- cific system’ it is believed he will have to o nce syndicate, | discussing | make an alllance with fome of them. | velopments that the Missouri Paclfic will in the future use the Central Pacific from Ogden to the coast. | the Rio Grande Western and the Denver and Ri> Grande it now has a through line | from St. | | CAUSES SURPRISE HERE. Louis to Ogden.” The Old-Timers Hope H. E. Hunting- | ton Will Return. A dispatch announcing the new director- | ate of the Southern Pacific Company was received early yesterday afternoon in the | railroad building and in a short time was | public property. The make-up of the | new board of directors was a great sur- | prise to all local officials, and much dis- cussion was indulged in as to the new plans of the company. Huntington w-snot expected to be a member of the board of directors and now that he has received this honor, news of the election of officers of the Southern Pacific, which occurs to- | day, is anxiously awaited by all local railroad men, who wish to know if he will still hold a position as a vice presi- dent of the Southern Pacific Company. The selection of the board of directors is looked upon as a very diplomatic one in local railroad circles. The board, which was formerly composed of twelve mem- bers, has been increased to fifteen. This board can be safely described as repre- senting two interests. Seven of the members are active Southern Pacific men, their affiliations dating back to the C. P. Huntington regime. Seven represent the Union Pacific Railroad, and one uninter- ested person is selected to settle all dis- putes and controversies that may arise. The Southern Pacific members of the board are Charles H. Tweed (chairman), | Charles M. Hays, Edward Hawley, H. E. | Huntington, John W. Mackay, D. O. Mills and James Speyer. The Union Pacific Railroad is represented by T. Jefferson * | Coolidge, E. H. Harriman, James H. Hyde, Otto H. Kuhn, Winslow S. Pierce, Jacob Scheff and James H. Stillman. George J. Gould, the other member of the boare, is looked upon as the go-between, or the man with the controlling vote. It is considered the strongest railroad board in the world and each member is a. man of either valuable railroad executive ability or of very substantial financial standing. The executive board fs, com- posed of men who are residents .of New York and the fact that H. E. Huntington is not on this committee is looked upon It cate gave a practical | is not to be supposed from to-day's de- By the acquisition of | | i T o as proof that he will not reside in New York. Tweed is on this committee and it is expected that at all meetings he will represent the Huntington interests. H. E. Huntington has never expressed himself to any of his friends in this city as to whether he intended to make his residence in New York. It is now ex- pected that he will shortly return here, and besides assisting in the operation of | the Southern Pacific system, also look | after the street car systems that he is heavily interested in, both in this city ana in Los Angeles. Huntington is also an extensive holder of stock in'the Pacific Im- provement Company and every indication points to the fact that he will shortly re- turn to this city and permanently make this his home. REBELS STILL MENACE THE CITY OF PANAMA Government Troops Find It Impossi- ble to Do More Than Save Themselves From Attack. KINGSTON, Jamaica, April 3.—Accord- ing to advices received here to-day from Colon, Colombia, the rebels continue to hold strong positions in the neighborhood of the city of Panama. The attempts of the Government troops to drive them out have failed and the Government com- manders are now content to guard the city against attack. The Liberals are confident of ultimate success. Business of important centers of Colombia is still paralyzed. T DENOUNCE THE CLERGY IN VALPARAISO STREETS Crowds March Through the South American City and the Police Are Ordered Out. VALPARAISO, Chile, April 3.—An anti- clerical demonstration was made in the streets of this city vesterday. A Spanish drama, “El Retra,” which caused riots when it was performed in Spain, was to have been performed here yesterday. Fearing an outbreak of feeling the Mayor crdered the police to close the theater. A large crowd gathered and marched through the streets uttering shouts against the clergy. & The Cabinet crisis is still unsolved. ‘The executive will meet with great diffi- culty in organizing a Ministry which will satisfy the liberal element in control in Congress. CHINA'S FLAT REFUSAL 10 Notification s Sent Russia Regarding Manchuria. Keep on Friendly Terms With All Nations. P PEKING, April 3—The Chinese Govern- ment has formelly notified Russia that Chira, owing to the attitude of the powers, is not able to sign the Manchurian convention. “It is China's desive,” says the formal notification, “to keep on friendly terms with all nations. At present China is go- ing through a period Which is the most perilous in the empire’s history and it is necessary that she should have the | trienaship of all.. However much she might be willing to grant any special privileges to one power, when others ob- ject, 1t is impossible, for the sake of mak- i ing one nation friendly, she should alien- ate the sympathies of all others.” Li Hung Chang says this letter settles the matter definitely and that Russia was informally notified to the same effect March 29. Prince Ching asserts that every China- man except Li Hung Chang was against signing the convention. COMPLICATIONS PRDICTED. It May Be Impossible for Russia to Leave Manchuria. WASHINGTON, April 3—The St. | Petersburg dispatch to the Assoclated Press, printed this morning, has aroused interest in official circles here. For the same reason that prevented the corre- spondent from quoting any authority in the Russlan Government as a source of the suggestion contained in his dispatch, it is not possible to cite official authority for the comment that has been passed | here upon tha suggested Russian plea. This in brief is that che action of the powers in opposing the Manchurian agree- ment will make it imnossible for Russia "to leave Manchuria at «il. "Tie comment upon this suggested plea is that Russia | deliberately proposes to commit a greater offense in the permanent seizure of Man- churia if the powers will not connive at a lesser one in allowing her to make a secret and private agreement with China. This plea, it is said, would be laughed out of any court of international law, so disin- genuous is it. Russia is displeased be- cause the powers discouraged China from signing the agreement, yet Russia herself joined with the other powers in undertak- ing to avold any such private arrange- ment involving the acquisition of Chinese territory. Even if she persists, even if she forces China to sign the Manchurian agreement, there is no obligation upon the powers and certainly not upon the United States, to whom this Russian pledge was given, to look upon it as. bind- ing at any point. By the same reasoning should Russia, failing to secure an agree- ment, continue in Manchuria beyond a reasonable time, there is no obligation upon any power to respect her title and it may be predicted that this subject will lead to controversy of the gravest char- acter. —_— THREATS NOT EXECUTED. Russia’s Failure to Intimidate China Is a Hopeful Sign. LONDON, April 4.—In a dispatch to the Times from Peking, dated Tuesday, Dr. Morrison says: “A week has elapsed, but Russia has done nothing to carry her threats into execution. Li Hung Chang continues vainly to implore the court to modify its decision not to sign the Manchurian convention, but in view of the attitude of the country it is hardly possible that China would sign unless Russia materially abates her demands. “This remarkable stand 1is a hopeful sign of vitality and should affect favor- akly the whole course of the negotiations, if the powers seize the opportunity to quicken the pace.” PURSUIT OF ROBBERS. Company of Germans Defeats a Band Near Tientsin. BERLIN, April 3.--The War Office has received a dispateh from Count von Wal- dersee formally reporting the defeat, March 31, of a thousand Chinese robbers by a company of Germans seven miles north of Tientsin. He adds that the rob- bers are being pursued and also that a detachment of infantry, at the request of the Chinese local authorities, has been sent from Tientsin to Hwangsun and Liu- tingkau to proféct ihe Inhabitants from robbers. NO mcmx._n_ SETTLEMENT. Viceroy Disturbed by a Communica- tion From the Court. CANTON, April 3.—It is reported here that the Viceroy has received a telegram from the court to the effect that a peace- SIGN TREATY Celestial Empire Tries to! @Il el SUPREME COURT DECIDES BOND DECISION was handed down yes- terday by the Supreme Court ad- judging the bond election, held in ‘December, 1899, null and vold. Un- der this decision nbt only are the time, energy and money expended in com- pleting the preliminaries and carrying through the election absolutely lost, but the vast scheme of acquiring property for the extension of the Panhandle, the con- nection of Golden Gate Park with the Presidio, the acquisition of two blocks in the Mission for park purposes, the con- struction of the projected sewer system and the erection of schoolhouses through- out the city have fallen. If these pro- posed improvements are to be carried through by the city, the scheme for their acquisition must rise from the ruins of the effort that has failed and must pro- ceed in strict conformity with the pro- visions of the charter. The decision of the Supreme Court was reached in the actions instituted by Eugene M. Fritz and Felix McHugh agalnst the city and county of San Francisco. The first named plaintiff sought to enjoin the Board of Supervisors and the Mayor from taking action in pur- suance of proceedings previously in- augurated and having for their object the issuance of bonds for the acquisition of lands for park purposes from the proceeds thereof. The iast named plaintiff sought the same remedy in relation to the proposed bond issue for the construction of the projected sewer system and new schoolhouses. It was claimed by both plaintiffs that the bond election was illegal and that bonds issued thereunder would hence be null and void. In the Superior Coutt demurrers to the complaints were sustained pro forma and on the ruling appeal was taken. In the decision of the Supreme Court the judgment of the lower tribunal is reversed and the causes re- manded. The decision, however, is final. Number of Votes Required. After briefly reviewing the issues in- volved in the actions, the Supreme Court passes directly to the point as to whether it was necessary under the park and boulevard act for two-thirds of all the qualified electors of the city and county to vote in favor of the issuance of bonds in order to carry the same, or if the votes of two-thirds of those who actually voted were sufficient to carry the meas- ure. That provision of the act which reads: “If at such an election two-thirds of the qualified electors voting assent to the issuance of the bonds” * * # the court holds, “means exactly what it says, and says only one thing,” hence the vote of two-thirds of these electors who ac- tuaily vote in favor of the measure is sufficlent to carry it. Though the opinion of. the court sup- ports the fact that a sufficient number of the electors of the city and county voted in favor of the measure to carry the same, this decision will only be of impor- tance in future elections, for the court proceeds from the favorable decision on this point to tear apart the fabric woven by counsel for the city in support of the legality of the bond election. It says: Proceeded Under General Law. The proceedings taken by the city leading up to the election here involved, were had under a general law, the decision reads. This elec- tion was held in the latter part of the month of December, 18%9, and the present charter went into effect January 8, 1900. The ques- tion is now presented, What effect did the new charter have upon the general law under which these proceedings were inaugurated and con- ducted? Condensing the matter into a nutshell, it may be sald the park and boulevard act pro- vided a complete scheme for the acquisitiun of lands for park and boulevard purposes by the issuance of bonds, the nraceeds thereof to be ueed for that purpose. Do we find any i | | £ DOHRBIANN IS NOT SURPRISED The declsion of the Supreme Court is not a surprise to me, as I had doubts about the poliey of commencing pro- ceedings upon the proposed bond issues under the old law instead of waiting for the charter to go into full effect. However, I supported the propositions, as I considered them all of a desirable nature and some of great importance. It is to be regretted that so much delay has occurred before new steps can be taken in the same direction, particularly in the case of the school end hospital buildings, which the city needs very much. I am almost in- clined to recommend that the dollar limitation in the charter be suspended, 0 as to have these much-needed school- ‘houses and hospitals, including a pest- house, built as urgent necessities un- der a special tax levy, unless we can hold a bond election and legally issue the bonds to be available during the next fiscal year. construction of & sewer system . and-the extension of the park pan- handle will have to be put before the people at another special election, as neither could be secured in any other way.—F. W. DOHRMANN. L ELECTION WAS INVALIDATED BY OPERATION OF THE NEW CHARTER Temporarily Defeats Vast Scheme to Extend the Panhandle, Establish a Park in the Mission, Construct the Pro- jected Sewer System and Erect New School Buildings B e e e e e | In its opinion declaring the municipal bond election null and void, the Supreme Court holds that the scheme provided by the charter for the creation of a bonded indebtedness, being materially different from the scheme provided by the park and boulevard act, under which the election was held, a proceed- ing inuagurated under the one cannot be continued under the other. It is further held that the park and boulevard act, a general law, was superseded by the charter and, so far as the city and county of San Francisco is concerned, is no longer applicable. Hence, when the park and boulevard act was super- seded by the charter, at that moment the proceedings inaugurated under the provisions of*the act for the acquisition of lands for park purpcses and public utilities fell. In conclusion the court holds, though Justice Temple expresses some doubt on the point, that the charter provides a complete scheme for the acquisition of lands, public utilities and other improvewnents by the issuance of bonds, “and,” says the court, “We find a complete scheme laid down in the provisions of the charter to accomplish the same re« sults as those attempted under the park and boulevard act.” el oo e ] ] L RS T e o+ e f MAYOR TO URGE . A NEW ELECTION It is indeed discouraging to hear that the Supreme Court has held that the issuance of bonds for park extensfom, schoolnouses, hospitals and sewers is invalid. I understand, without having seen the opinions, that the court holds that the charter supersedes the general laws under which tne bond elections ‘were held in December, 1399. If this is true, there is comsolation in the fact that the charter is supreme within its fleld. The proceedings were all ‘taken and the election held before the charter went into effect, to avold this point, and our attorneys argue that, as the charter government was the successor of the government under the consolida- tion act, it was competent for us to 1ssue the bonds authorized, just as pro- ceedings taken under the State insol- vency laws continue to completion al- though the Federal bankruptcy act has intervened. One of the reasons why the elections were held In December, 1599, was be- cause the attorneys advised that if they were held after January 1 thers would have to be a reregistration un- der the new registration law before any election could be held, which would have postponed the project for over & year. As-all the Improvements received the enthuslastic approval of more than two-thirds of the people, we feel con- fident that, in calling another election, which I shall recommend for this pur- pose, the people will ratify their pre- vious action; so, in my judgment, this setback and disappointment will only result In a better understanding of the question, and enable us to issus bonds about the valldity of which there shall e e e i e -l*HH—!—H—H-H'. be no question. The supremacy of the charter had to be decided, and it is Just as well that it is decided in this case. That is & point gained which cannot be underestimated, and I am satisfied the people will ‘be content to suffer the disappointment of delay in view of all the circumstances. We have six months’ interest and sinking fund on hand and $10,000 for the examination of abstracts, which has not been used. The city s now In a prosperous condition generally, and with this money on hand, we are in a position to go ahead. I hope there will be mo further obstructions or de- lays. The decision has clarified the atmosphere and it has made the sail- ing easy. I am satisfled the Supervisors will be in accord with these views, and, as it is necessary to vote for the bonds at a special election, such -an election should be immediately called. The city is suffering for schools, hospitals and better dralnage, and our park should be brought down to Market street at the small expense for which it can now be accomplished, and this generation of San Franciscans should get the ben- efit of these great improvements which must inevitably come.—Statement made by Mayor Phelan. et O complete schéme lald down in the provisions of the charter to accomplish the same results? The court is entirely satisfled that such a scheme. is there found. Charter Supersedes Old Law. respective schemes of the charter and -mboum.«turmcmunn bonded indebtedness to acquire improve- B —l—Hfl-—H—H—-H—H——I- B e o o o e e e e S - ) + ? el o+ THE JUSTICE WHOSE DECI- SION DECLARES THE BOND { ELECTION vOID. i o ments are different in many respects, and. therefore, the park and boulevard act is in- consistent with the charter. The result de- clared by the censtitution where such incon- sistency exists must follow, namely: the park and boulevard act has been superseded by the charter. That act being superseded by the charter, it is gone from the case. It went instanter the moment the charter took effect. It is no more a law applicable to the cf and county of San Francisco: and its provi sions can no longer be invoked to support this proceeding. May these borids now be fssued under the provisions of the charter? It canmot be dome: for the charter only contempiates the jssuance of bonds based upon the procedure laid down by the charter. As we have said, the scheme lald down i3 complete in itself, and it must be followed as a whole, or the attempt to create a.bonded indebtedness will inevitably come to mothing, The bonds must be lssued after the procedure marked out by the char- ter has been followed, or they camnot be is- sued at all Charter Authorizes Improvements. Upon the question of the right of the Board of Supervisors to submit to the much satisfaction to be gained from the rendering of the decision, though | % © @ i e e — Continued on Pn‘gs Two. CUSHING FAVORS ANOTHBR TRIAL ©. K. Cushing, president of the Fed- eration of Western Addition Improve- ment Clubs, is greatly disappointed at the adverse decision of the Supreme Court. In speaking of the matter he PG Sty N e Syl et the Supreme Court to sustain the va- ldity of the bond election. It is the opinion both & myself and the other members of the improvement clubs that the city canmot possibly exist longer with any degree of progress without a bond issue of some kind. It is only a question of time before bonds must be circulated. The city has at- tained a point where it is confronted by certaln pressing needs, which can- not possibly be met through the me- Qium of ordinary taxation. We should immediately prepare for a new bond election. As the Supreme Court holds that the same may be held under the provisions of the charter there is that 'H-'-‘-I—I-H‘-H+I°+HH-H~I—H-H+ shelvfbd bbb @