The San Francisco Call. Newspaper, December 15, 1903, Page 2

DAY. DECEMBER 15, 1903. SUPREME COURT OPENS MERGER CASE HEARING Argument Is Begun by Contending Counsel on the Northern Securities Company’s Appeal From an | Adverse Decision by a Minnesota Federal Judge| WASHINGTON, Dec 14.—The S preme Court to-day began hearing ar- s in the of the Northern ties ames J. Hill, J nt M vs. th ted coming this court on appeal from the de sion of the Circuit Court for the Dis f Minnesota. That decision was.| effect that the purchase of the greater share of the stock of the twc road companies r anti-trust law The « ommunity-of-interest T The om Wi 1 Knc ay « represénted by a guish tarne; sor Charles B. Y. JOHNSON John G. J ating th ¢ , made t stating the ca 1 that the purpose of the in acquiring t i company had b competitior, its own prope: ption to the deci that the poas e power which the securities company | s a violation of the la and con- . Supreme to the these two in trade. raflway ould with stroy or to lead ond section o ny way holding shares th ting railway companies it is SPEAKS FOR NORTHERN PACIFIC. Johpson was f ved by C. W. Bunn, R specially for the Northern Facifi Said k 1 lines of t > footing and it is con country have compani have got of par way you acquisition iduals owning stock s should unit g the stock in you would have ip and the reement and power of control se, and n lly a sub- KNOX STATES HIS CASE. Bunn w followed by Attorney General Knox for the United States. In begi 18 Kne lined the atti- tude of the Gove toward the ase, saying that it was “one of grave ased upon its conviction mischievous evasion of the law had been attempted, as well as upon its special interest angd relations to ont & properties affected.” In or- der that the court might understand the r ons for this concern, he re- the principal facts connected the organization and subsequent of the Northern Pacific Com- ¥, its relations to the Great North- ern Railroad and other facts out of which the guestions in this case arise, but without extended comment. His statement of facts in this connection was as follows: “First—That the Northern . Pacific Railroad was built under the aythor- ity of the United States, and, in the main, with capital furnished by the United States, and that the United States intended, and attached the con- dition to its contribution, that_ the railroad should be a great, independ- ent national highway, and specified that the object of its construction was ‘to promote the public interest.’ “Second—That by different devices employed during the past ten years, the defendants, or some of them, have endeavored to destroy the independence of the Northern Pacific Company and bring it under the domination of the Great Northern Company. “Third—That the Northern Securi- ties Company is an instrumentality de- vised by defendants to acquire, hold and exercise control over these paralle] and competing lines of railroads; to destroy competition between them, to create a monopoly of transportation in the section served by them, and to defeat the condition attached by the United States to the franchise and land grants of the Northern Pacific Com- pany.” g @ it el e 2 @ A Guaranteed Cure for Piles. mmmumfim Sour druggist will refund money Paso Gur-flwhunnnniuumur e i imiol & Lamont and | Great Northern road. Morgan, he said, | awith it, a | Bur | followed by the merger, of which the e whether the | . General Day, and c and com | Pacific ( | about 70 per cent of all the stock of the | ol of two | The Attorney General gave a detailed | | ccount of F o secure con- | ., = account of the attempt to secure c CRIMINAL trol of the Northern Pa road, as shown in the cage of Pearsall vs. the attemnt, sympathized assured Hill that if he| failed they could work the two rail-| roads in harmony | Continuing, Mr. Knox said: | Let us next see what steps were | n te get the Northern Pacific v into such a situation as would | knew of th hle assurance to Mr. Hill that if he failed to acquire the Northern Pacific stock in the manner just described they | could work in harmony. A reorganiza- tion of the road was expected and a new company, organized under the laws of Wisconsin, with power to do s0, took over the property and fran- chises of the Northern Pacific Com- rganization agreement, J P. Morgan & Co. were made ‘mahager’ of the reorganization. What is known the two roads and continued as such until 1901, when the two roads made a“joint purchase of the Chicago, Bur- lington and Quincy Railroad. This partnership in the ownership of the! ngton was almost immediately Goy rnment complair Attorney General then detailed the facts connected with the Burlin, our e and the organization the Securities Company, and, in con- cluding his tation of the evo- lution of the Securities Company, said Ta s clearly establish that it is an instr 1tality created to control the N ern Pacific and Great North- rn roads, and, through their owner- ship of the Burlington, to control that road likewise. fac i CASE OF THE GOV CRNMENT. Brief Prepared by Attorney General Knox Filed With Court. HINGTON, Dec. 14.—The brief ernment in the case of the rities Company and oth- United States, on appeal lecision of the Circuit Court United States for the district of M ta, was filed in the United States Supreme Court to-day. The iment was prepared by Attornes | General Knox and Assistant Attorney rers 180 printed r stating that the bill in the case ally brought by the Govern- train the violation of the anti-trust law by the Securities Com- - in the consolidation of the North- Pacific and the Great Northern | railroads, and that the decision of the court below was favorable to the con- | ions of the United States, the brief 1to the following specifications | to the reasons for the action: | 1. The lines of railway operated by | the defendants, the Great Northern Railway Company and the Northern | Pacific Railway Company, are parallel | eting. | That the combination is in re- nt of interstate commerce and onopoly | concluding paragraph of Judge | Thayer’s opinion in the Circuit Court is quoted as summing up the argumenl; bearing upon the facts of the case, as | follows ‘At the present time the Seeurities ompany is the owner of about 9, per cent of all the stock of the Northern mpany and the owner of | Great Northern Company. The scheme | which was thus devised and consum- | mated led inevitably to the following | results: | “First—It placed the control of the two roads in the hands of a single per- son, to wit, the Securities Company, by | virtue of its ownership of a large ma- jority of the stock of both companies. “Second—1It destroyed every motive | for competition between two roads en- | gaged in interstate traffic, which were natural competitors for business, by pooling the earnings of the two roads for the common benefit of the stock- holders of both companies; and, accord- ing to the familiar rule that every one is presumed to intend what is the nec- essary consequence of his own acts, when done willfully and deliberately, we must conclude that these who con ceived and executed the plan aforesaid intended, among other things, to ac- complish those objects.” The Attorney General’'s own summary of the results is as follows: “To sum up the result of the afore- mentioned exchanges of Great North- ern and Northern Pacific stock for the | stock of the Securities, the latter com- pany on December 11, 1901, had ac-| quired and paid for 990,000 shares (in| round figures) of the Great Nonthern stock, the total capital stock of that company consisting of 1,250,000 shares, of which 1,220,000 had been issued, and by January 1, 1802, the Securities Com- pany hed acquired virtually all of the | common stock of the Northern Pacific | (the preferred stock was retired on that date, the resolution to retire it having been passed in the preceding Novem- ver), ite answer to the bill admifting | that it held 1,500,000 Northern Pacific | shares out of a total of 1,550,000. “The final result of the transactions was that one and the same set of men, Hill and Morgan and their associates being the ruling spirits among them, acting together under a charter agree- ment and through the agency of a corporate organization, became invest- ed with’ absolute power of eontrol over two parallel and competing systems of interstate railway. In place of the two distinct sets of stotkholders with rival and competing interests, namely, the stockholders of the Great Northern and Northern Pacific, there has been substituted by means of the inter- change of stocks described, the one set of stockholders, with one common and non-competitive interest, namely, the stockholders of the Securities Company. Thus, identically the same persons who controlled the Great Northern and Northern Pacific before the Securities Company came ‘into possession of =a majority of their shares, control them now, only nmow these persons have a common interest—‘‘community of inter- est”—in the earnings of both roads, while formerly the interests of - two sets of persons—the two sets of stock- THIEF TAKES HER DIAMONDS | Wife of a Portland Thousand Worth of Costly Gems, Merehant Formation ORDER TO BE ISSUED SOON Major Generals Are to Direet|It Is Also Asserted That the | Antazonists of Popular Vote|Accused Is Hustled I . Departments “Will{ -Corporation ~ Will Drop| Pack Hall and Hold an Then Be Under Subordinates| Many High Salaried )Icni thusiastie Overflow Meeting gl o T Metropolis Believe Work Was Done by One of a e ey S o £pecial Dispatch ta The Call. NEW YORK; Dec. 14.—The state- | JOHANNESBURG, South Africa, Dec. ment was made -to-day by a leading |14.—A mess meeting called here to-night official of the United States Steel Cor- |for the purpose of urging poration that, beginning January 1, |Government the advisability of taking 1804, about 90 per cent of the employes a referendum before introducing lesis- of the corporation will suffer wage re. | lation providing for the introductior of i chief of staff, and an order making a | quctions ranging from & to 20 per cent. | unskilled labor into the Transvaal was proposed change will probably be is-| This reduction will affect about 150,000 | completely captured By the element fa- It is proposed to| workmen in the various grades of the | vorable to the'importation of Chinese. | create a division of the Atlaniic, with|Subsidiary companies. The remaining | Special trains brought in thousands of | headquarters at Governors Isiand, New | 10 per cent of employes are members of | miners from the East and West Rand, York, and to include tite Department | thé Amalgamated Assoclaticn of Iron, East, with headquarters at Bos- | Steel and ‘Tin Workers, whose wage | meeting was held. d a Department o: the South at | Schedule runs to July 1, 1904. Atlanta, Ga. Special Digpateh to The Call. | >, 14.—While the | PORTLAND, Or., X WASHINGTON. Dec. 14.- Mr. Morgan to make good his family of Sigmund Frank, a member of | the creation of military divisions in i the United States was laid b: | retary Root to=day by General Young, a thief stole Frank’s room in plain sight on the The thief gained entrance by | dinner to-day The jewelry & sued in a few days. veranda which surrounds the residence ! He took no time to search other rooms | was seen by a pa The police believe that he £ “harpiony’ now prevailed fvel\\'een.'“ S otarious the oresent de- partments of California and Columbia incinde in’ this ng of crooks s holders—were, on absurdity to say two railway which, under competitors for will continue to compvete after both become the stockholder of the another division. pany that one of these Siyision They have a common interest in both; receive the! pooling the earnings effective method for competing bus! and naturally 3 ; it would hardly be possibl ® to conceive. The questions of law growing out of ent of facts are as follows: combination LONG ILLN ESS.I The deceased merchant built up an | 900 : excellent business and had an enviable | Reis for years was e | the Treasurer’s office, having been ap- store and his friends for honesty and | Pointed to that position the well known |y iocriey He was well liked by all|City Treasurer S. H. merchant and founder of Smith's Uash | who knew him, was charltable and a | father-in-law. Store on Market street, near Steuart, | kind employer. He leaves a widow and R 2 s died yesterday morning at his home, | two children, Harper A. and Miss Well Known Engineer Laura Smith. The funeral has not yet | DAVENPORT, Iowa, Colonel Henry P. Bosse, . member of the United States Efginecr Corps at the Rock Island Arsinal { twenty-five vears, died to-night, aged Company in violation of section 1 of an act of Congress, approved July 2 act to protect unlawful res 570 Harrison street. long illness, Death came after the last five weeks of | been arranged. which the dead merchant passed at his o " home, being unable to leave the house. Popular Clubman Dies. Smith was born in Pennsylvania and John O'Neil Reis, popularly known More than twen- | as “Jack” Reis, died at his apartments ty-five years ago he came to California | in the Hotel Redondo Sunday. He house under the | had been ill but a week, his death re- name of Smith’s Cash Store at 519 Post | sulting from an attack of pneumonia. | the University of Dorpat “Jack” Reis wi of the most |chair at Gottingen. has been Jack” Reis was one of the most MERAS e Dok . minent instructor at that such a prosperous state in a few years | organization in which he took the |famous seat of learning. and monopoli Have the defendants monopolized or attempted to monopolize any part of 8 foreign commer the United States in violation of s 2 of the anti-trust act? relief granted by authorized by law?” The Government maintains that each | | was 70 vears of age. | and started a retai! Circuit Court Through his business ability of these auestions should be answered | the trade of the little store grew to| popular clubmen in this city. maining ¢ affirmative. NEW ARMY PLAN |STEEL COMPANY |LIKE COOLIES IS SUCGESTED| T0 CUT WAGES IN TRANM s ekt Young Proposes the| After January First Reduc- of Divisions in| 3icns of From Five to Twenty | endum on Question of Lal)or; : " Is Captured by Opponents| Attacked a Young ¥ ) Parts of Country| Per Cent Will Be .\lmlei i e i TR i e i ),000 MEN INTERESTED | CHEERS FOR THE CHINES ; - —_— A plan for ore Sec- The «firance committee of the stee consideration the dismissal of many high-salaried employes, in addition to those already discharged, but no state- division Cali- to-day. It was asserted that, barring some unforeseen technicalities, employes of the corporation who participated in the profit sharing pian, in the coming month™ will receive 2 $5 dividend on the preferred stock to which they sub- scribed at $8: large majority. der of Elk lodge for resented t tional cor and larger quarters. His next place of business wes at 115 and 117 Sutter street, and later on he moved to Front street. there was a vast number of commu- ized downtown stores, Smith moved to Market street. reputation among the patrons of his 59 vears. The departure from R tav The | mented o (OFFICERS S western part of the city, leay unconscious and severely injur 5000 of whom packed the hall where the | The miners were well organized and all through the mceting there was fre- It is proposed to organize a division | COTPOration bas, it is understood, under | quent cheering for the Chinese the chairman attempted motion in favor of the referendum he was unable to get a hearing. fornia, Nevada and Hawall and Wash- | Meént on this point. was forthcoming |in favor of the motion were impossibie, ington, Oregon, Idaho and Alaska. The of the north wiil include the denartments of Coiorado and There will also be a division of the lakes, with headquarters.at Chi- cago, which shall ‘include th¢ Depart- ment of the Lakes, the Devartment of | Missouri and the Department of Texas. Philippine archipelago will make | @ Fi=irieiirieiriririnieiini et @ It is proposed to have | that he was compelled to seek other commanded by major military departments within the division in command of brig- | adier generals or colonels. down th street car in which they suppos: ler would be conveyed to the | When this was les hustled into the post ambulance, 1 and the excitement was intense. under strong guard was driven overflow meeting attended by 4000 per- | ¢4 sons a motion antagonistic to the tak- {ing of a referendum was carried by a KS DOWAGE LINKS DOWA He was a member of the | ears and several tin e local branch in ention of the held office for years in B ) About ten years ago, realizing that | .0dge and was probably ol e t ! e . known Elk in the country 1l BARCL‘A\Y SM[TH' jlers from across the bay who patron- “[!l{‘i‘: \:’;‘: x::-”;a:.: é':u former Flre Commissioner, EXPIRES AFTER the JESR U atiol hEithe flm at | nis son a fortune estimated at $500,- L e o o S e e e o ) most pride was San Francisco Lodge No. 3, Benevolent and Protective Or- hief deputy ir archical 'pap s considered to be generally well in- Queen Margharita, du journ —_———— ymarn, professor of chemistry at 30 years old, is authoritati | The engin er | named Tenerand. 1 & o PRIVATE'S LIFE | Meeting Called to Urge Rnlm-lFor\‘ Douglas Soldiers Prepary Rope for Comrade Who PRCTE— WOULD-BE LYNCHERS PSSP Van and Driven to I tion Under a Strong (n —_———— ‘ SALT LAKE CITY, Dec. 4.—Q action by United States army at Fort Douglas probably saved [ i Thomas R. Fuller from lynching hands of his fellow-soldier Fuller was this morning identifled as the soldier who last nig attacked Miss Edith Gill in the When the soldiers at the p that Fuller had been identified girl's assailant a rope was hastily s cured and a crowd of them eep road to in rned Fuller Fuller's home is said to b rancisco. He enlisted here two s ago. WITH ROMANCE - | Italian Newspaper Says Mother of the King Has Contraet- ed a Morganatie Marriage. PEEATPEIE Italy, Dec. 14.—A mon- published here, which BOLOA received news med, says it ha rustworthy source that Dow- m a ager Queen Margharita, during a re- cent journey | morganatic marriage with an engineer to Norway, contracted a 0 years old ROME, Dec. 14.—The report tele- graphe Bologna that Dowager had con atic marriage with to vay, to whom the is alleged to have b ADVERTISEMENTS. 1 ) 1 ) | \ERYCORKIS BRENDED INHEUSER-Busty BREWING ASSOCIATION § Budweisers reatest Triumph Declared superior to the best Bohemian beers by the Imperial Experimental Station for the Brewing Industry at Prague, as announced by the following Associated Press cablegram:— American Brewer Makes Best Beer in the World. [Special to the Associated Press.] Prague, Bohemia, Dec. 1.— The Imperial Scientific Commission in- vestigating the different kinds of beer of the world has awarded the highest Honor for superiority to an American product. A correct translation of the results of their examinations is given below, with i ihe Imperial and Royal Notarial and United States Consular verifications. Upon subjecting a sample of BUDWEISER Beer, brewed by the Anheuser-Busch Brewing Ass'n, St. Louis, U. S. A. examination, we declare it to be a fully matured lager beer. Its whole nature bears witness to the fact that only the very best materials were used, and that the greatest cleanliness prevailed in its manufacture. The product is not only similar to the highest grade of Bohemian Pale Beers in all its properties, but surpasses our best beers in keeping qualities, which is of the utmost importance. Experimental Station for the Industry of Brewing, Prague, Bohemia, JAROSLAYV SULA; Supt. and Manager. 1 hereby certify that Mr. Jaroslav Sula is 'sonal known to me as the Official @t the Experimental Station for the Brewing Industry of Bohemia. and presence. Prague. November the third, nineteen U. Dr. JOHANN SLAMENIK, Imperial and Royal Notary, Prague. and signed the above dncllm.?t inmy 1 certify that the foregoing authentica St. Louis, U. S. A. to a thorough Chemist has this day executed and three. on is under the official seal of J. U. Dr. Johann Slamenik, Imperial and Royal Notary, and is entitled to full faith and credit. In testimony whereof I, Arnold Weissberger, Vice and Deputy Consul of the United States of America, have hereunto subscribed my name and caused the seal of this consulate to be affixed. Done in this city of Prague this third day of November, 1903. ARNOLD WEISSBERGE! y U. 8. V. & D. Consul. Budweiser Anheuser-Busch Brewery