*
FIRTH WILL DECLINE.
Won't Take Nomination for Speaker
— Smith's Hand Seen.
After a conference between William' B. Gourley,
Chairman of th« ■•• Democratic committee of
aV*w Jersey, and v James K. Nugent, a member of
the same committee In Newark, N. .1.. yesterday.
©»• former announced that Assemblyman-elect
Jcst-pii H. Firth, of Warren County, who was the
choice of the caucus at Trenton last Tuesday for
Bp«aker of the next Assembly, has Riven notice
that he will decllns the honor and will place him
•elf at the disposal of the caucus which named
him.
The conference between Nugent and Gourley.
both of whom are strong henchmen of ex-Sen
ator James Smith. Jr., of Newark, who Is trying
hard to pet control of the next Assembly, was
brought about by the public sentiment which has
been aroused against Firth elnce it became known
that he had pleaded guilty to an Indictment in 1901
charging him with maintaining a disorderly house
and paid a fine of 5300.
Mr. Gourley after the conference said:
I received word from Mr. Firth this morning.
He has informed me that he has written to Abram
Kienert. of l\.ss:i.. County, who was chairman of
the caucus. That le i.r is probably on its way
How. and the latter will doubtless take the neces
sary act Inn.
Mr. Firth say* that be realizes that his posi
tion is not understood elsewhere in the state as it
is Is Warren County. The people there have
known him all his life and have elected him many
times to public ofll^s of honor and trust, this
rear electing him Mayor of Phillipsburs and As-
BtaaMra I But. In view of the feeling that ex
ists throughout the state and the criticisms of the
press and of individuals. Mr. Firth says that he Is
unwilling to embarrass his oolle.igues and has
fceeordincly placed his declination at their dis
posal. He has assured Mr. KJen*Tt that he Is
•Willing to abide by the collective sense of the CSO
eua and to accept whatever may be Its judgment.
The declination of Firth Is said by some Demo
crats in Newark and Essex County to nave been
e/eQaested. Miiny see la It another shrewd move
Of exnSenator Smith to keep en top In his political
fight against "Boss" Robert Davla, of Hudson
County, who had Joseph A. Riordan. of Hudson, as
Ills candidate for the berth which was given to
jrirtt. Smith beat Davis to a standstill when it
©arae to corralling the votes of the Assemblymen
*tho would do what '.hey were told, and went into
fhe caucus at Trenton last Tuesday with the upper
tia.r.4. The caucus was enough to show the feeling
existing between the two men. who are both recog-
Xized as astute politicians. At that time, when
X>».vls saw that Smith was on top, he had one of
'.hi* delegation come out for Edward K. Wright, Jr.,
ore of the Essex delegation. In an effort to ward
; «ff Firth's selection.
It • came apparent to Smith yesterday that to
attain control over his eleven men In Essex he
"<rould have to do something In the matter of Firth's
.opposition, and it is said that It was at Smith's
'tuggcztion that Firth "consented" to withdraw.
! Tfce nine Bases men who had ths nerve to gather in
•iecrel without even letting any of Smith's lleutc-n
jents know about it caused a stir among the Smith
leaders, and word of their cctions was quickly
'communicated to Gourley in Paterson. who hurried
so Newark and conferred with Nugent.
i Asked what would be the situation with regard
♦o the Essex delegation with Firth out of the way,
4lr. Oourlef said lie oould only speak for his own
county and that there would be no change in tlia
line-up of the forces from there. Nugent expressed
the opinion that an Essex man would be named by
th« next caucus. John W. Lone, of Orange. is sa>l
to £« the choice now of the Smith leaders. There is
»ecu to believe, however, that, in the event cf.
Smith trying to name an Essex man Davis will
resume his fight and leave nothing undone toward
BSsbUbs some of the votes of his bitterest political
toe.
WILL WATCH JERSEY LEGISLATION.
Newark. Dec. 15.— The People's Lobby, an asso
ciation whose object will be to watch all legis
lation at Trenton, has been formed by men through
out the state who In the past have been identified
•with reform and independent movements. Alexander
Tordyce. of Middlesex, has been elected president;
Henry H. Da-wtsoa, of Essex, treasurer, and Ed
mund A. Whittier. of Essex, secretary.
It ia proposed to organize county leagues In con
nection with the state organization, and from these
leagues vlc*-presidents anil be appointed by a gov
erning committee.
CONVICTS IN MUTINY.
Governor of Mississippi Commands
Troops in Person.
Jackson, Miss., Dec. 15.— The convicts at Oak-
Icy prison farm, in this county, mutinied this
afternoon and killed J. M. Bur., y, a guard, by
cutting his throat, broke the arm of Sergeant
Dod<is, in charge of the farm, and then barrlt
caded themselves in the building, defying the
other g-uarda.
Gm-emor Vtrdaman and the members of the
local military company ptartrd for the scene this
afternoon on a ere.-ial train.
TO CHANGE DIPLOMATIC TITLES.
Washir.jr'on. "Dsc. Representative Poster, of
Vermont, Introduced a bill to-day providing that
diplomatic representatives of the United States
ftber- ■*■ the srra^e of charge d'affaires shrill here
&. fester bear the title of American Ambassador. The
it proposition is not to aflV-ct duties or salaries.
f) •
r FOR LOAN TO JAMESTOWN EXPOSITION.
Washington. Dec. 15— The Senate Committee on
Industrial Expositions to-day authorized a favora
ble report on Senator Daniel's bill providing for a
£or«>rr!Tr.ent loan of $1,000,000 to the Jamestown
Exposition.
Has Used Duffy's for Fifty Years.
Mrs. Anna B. Depew, of Wharton, Ohio, who
has just celehrated her 101 st birthday, is still hale and
hearty, says that she would have been under the sot
if it had not been for DUFFY S PUKE MALI
WHISKEY.
Mrs. Depew has a good appetite, sleeps well and
enjoys perfect health, notwithstanding that the doctor
gave her up to die 14 years ago, and she says she
believes that she would have died if it were not for
the prompt use of the great family medicine — Duffy's
Pure Malt Whiskey.
The following are Mrs. Depew's own words, writ
ten Oct. 17th, 1906, after she had celebrated her
101 st birthday.
"I wish to tell you what DUFFY'S MALT WIIIS
CEY has done for me. Fourteen years ago the doctors
gave me up to die. We had some MALT WHISKEY in
t»c house which I commenced to use right off, as a last
esort, and I grew better, and finally became well, taking
according to directions. I have used it for fifty years, and
lave had it in my family for general use for that length of
me. I eat heartily and sleep well. I was born in Vermont,
ast of the Green Mountains, in 1805, and I would now be
nder the sod if it were not for DUFFY'S MALT WIIIS
EY." — Mrs. Anna R Depew, Wharton, Ohio, Oct. 17th,
1906.
Duffy's Pure Malt Whiskey
U an absolutely pure, gentle and Invigorating stimulant and tonic. It builds up the nerve tissues, tones up
th« heart, gives power to the brain, strength and elasticity to the muscles and richness to the blood. It
bring, into action all the vital force*, It make. digestion perfect and enables you to get from the food you
•at all the nourishment It contains. It Is Invaluable for overworked men. delicate women and sickly, chll
fl^, as It is a °° a already digested. It strengthens and sustains the system. Is a promoter of good health
ted ion«-vKy. makes the old young and keeps the young strong. Duffys la reoogniwd as a family mcdl-
SSL'^TSf T TU ?* PUr * Mldt l6key haa b6ta «^!>'«d and tested , ny times during the past fifty
|TM»t>7 skilled chemist*, and ha* always b««a found absolutely pur and to contain great medicinal prop-
BEWARE of dangerous Imitations and substitute*. They an positively harmful, and
are cold for profit only by unscrupulous dealers. Look for the trade-mark, the "Old Chem
ist" on the label, and be certain the seal over the cork is unbroken. All druggists, grocer*
or dealers, or direct, $1.00 a bottle. Doctor's advice and illustrated- medical booklet fre*.
Puffi; ,Malt Whkkey Co* Rochester,- N»w York. «
ENGINEER BROWN AT THE MOUTH OF THE LAST AIR LOCK, EAST RIVER TUNNEL.
MAY AMEND RATE LAW.
To Remedy Evils Resulting from
Car Shortage.
[F*»m The Tribune Bureau.]
Washington. Dec 15.— The' President has
urged the members of the Interstate Commerce
Commission to prosecute the investigation of the
car shortage in the Northwest and the whole
subject throughout the country with the utmost
expedition. in order that if the results show that
the Rate law Is not sufficiently comprehensive
to give the commission the authority necessary
to correct the evil an amendment may be pre
pared which the President will send to Congress
with an urgent recommendation that It be enact
ed at this session of Congress if possible.
Senator Hansbrough. of North Dakota, In
whose state the present hardship resulting from
a shortage of cars exists, has urged that every
thing possible be done to expedite the inquiry,
and Commerce Commissioner Lane has been
pressing the investigation for several weeks — In
fact, ever since Senator Hansbrough reported
at the White House the menacing conditions In
his state. Of course, Mr. Lane will say nothing
regarding his findings until they are completed.
When the Rate bill was under discussion, the
attention of the Senate was called by Senator
Spooner and others to the fact that much of the
discrimination practised by the railroads against
the smaller producers, and especially against
those producers who came Into competition with
companies owned by the railroads, was effected
through tho improper distribution of cars. It
has been repeatedly found impossible by rail
roads which directly or through their directors
own producing companies to furnish cars to
competitors because of a shortage of rolling
stock. When the amendment to the Rate bill
prohibiting railroads from transporting coal the
product cf their own mines was adopted. It was
largely with the purpose of correcting this evil.
Of course, the situation in North Dakota Is of
a somewhat different character, but that It has
been brought about by an unwise or unsystem
atic distribution of cars is obvious, and tho
suffering which Is resulting and which to a
still greater extent seems likely to ensue nan
served to emphasize the necessity of federal
regulation under the existing law. or an amend
ment to that law dealing with this subject and
calculated effectually to remedy the evil.
NOT AN AGENT OF RUSSIA.
Washington. Dec. 15.— Russian Ambassador,
Baron Rosen, ha.3 been authorized by his govern
ment to announce that a man representing himself
as Prince Magatch. who Is reported to be In the
United States negotiating for farm machinery for
the Russian Department of Agriculture has no
authority to represent the government. Dispatch^
','■ TVvfV ,£ etersbu^S received by the ambassador
say that the man is supposed to be a Mr. Masai.
mlKlol'tarea'ur COnn - ted "*h th ° Ru-ianinJ:
TENNESSEE ALSO GETB GIFT.
Newport News, Va.. Dec. 15.— The cruiser Ten
nessee, anchored in Hampton Roads, was to-day
presented with a silver service, the gift of Ten
nessee. Governor J. N. Cox of Tennessee and i m
ben of his staff with their wives were^present *'
NEW-YORK DAILY TRIBUNE. SUNDAY. DECEMBER 16. 1906.
THE SQUARE HOLE SHOWS WHERE THE TUBES MET.
NEW YORK
Make Charge of Discrimination Against the
Southern Pacifio Railroad.
[From The Tribune Bureau]
Washington. Dec. 15.— An unusual complaint was
filed with the Interstate Commerce Commission to
day against the Southern Pacific Railroad by the
New York Team Owners" Association, who allege
that they are discriminated against In the cartage
of Southern Pacinc freight at the stations In New
York.
The petition recites that the Southern Pacific com
pany has adopted rules governing the reception
of freight at its stations in New York, under which
the trucks bringing property to it for shipment are
required to form in line in the order of th^oir ar
rival and to drive Into the stations and unload
their freight according to their respective places
In the line. The company, notwithstanding these
rules, says the complainant, has repeatedly grant
ed and continues habitually to grant to the trucks
of the firm of Kelly & Buck, which is not a
member of the Team Owners" Association, the priv
ilege of passing into its atatlons in New York and
unloading out of the order of arrival and in ad
vance of other trucks, thereby discriminating
against Uiem, to the damage of their business.
This, the complainant recites, Is a discrimination
in restraint of commerce, and a restraining order
is asked.
COMPLAIN.
TUNNEL SECTION BEADY.
Long Island City Contract Com
pleted — Progress of the Work.
One section of the Pennsylvania Railroad tunnels
has now been finished and Is ready for the laying
of raiJ3. This section Is In Long Island City, be
yond East avenue from the Ix>ng Island Railroad
station, and Is known as the "supplementary con
tract" of S. Pearson & Son. For about 110 feet the
tunnels are Just as they •will be when trains run
through— thick concrete lining, concrete and brick
arched ceiling-, and wide "benches" on the sides
for walking space. Even the conduits for tele
graph, telephone, light and signal wires are all
complete.
Progress on the tunnels bound west from the
East avenue shaft has been more rapid than Is
realized by any except the men who work In them.
The iron tubing In tunnels A and B. the two toward
the north, is practically complete from the shaft
to a point only 3io feet from the river shaft. Con
creting has already been begun in these tunnels,
and the 22-inch lining and the side '"benches" are
being put in rapidly. Tunnel D has gone even fur
ther, and the "heading" is row ur. er the con
course of the Long Island Railroad station.
Air locks and a shield have been installed In Tun
nel D, and the boring is done under air pressure of
eighteen pounds to the square inch. The "heading"
is only about 210 feet frcm the ilvcr shaft, and Is
getting about twenty feet nearer every week.
Preparations are now being made to Install air
locks and a shield in Tunnel C and to do the re
maining distance of ICO feet under pressure. "When
tunnels C and D lave reached the river shaft, the
shields and air locks will be taken out and used in
finishing A find B.
Tho "supplementary contract." which S. Pear- ■
son & Son have finished, is concrete and brick arch I
work, nnd there Is no iron tube about It The
four tubes come to an end at Baal avenue, and i
from there eastward the tunnel.3 gradually rise up
to surface level. Trie most difficult feature of thr>
too, perhaps, was the moving of a large sewer that
lay In th» way. It is now built ail over again ami
runs over the ton of the concrete tunnel?
Going nut under the East River, toward Man
hattan, the tunnellera ore getting out of rock into
soft sand and snivel. This work la different rrom
all other similar Jobs around New York. In that
the air lo?ks are far .-..h0-.-" ground. instead of I
under it. In other words, the shafts are under '
pressure as well as the tunnels. When a man '
enters tho lock to fro down Into Tunnel A for fex
ample, ha is In stjrhi of th* ferry slips, the East
River end Manhattan Island. ffe descend] Oft*
or sixty feet through a rlrruli r. iron airtight shaft.
One shaft leads to A and B and tho cth«r to C
and D. ~
80 far the areas lire has been only from 17 to VI
pounds to the square inch. As the roes disap
pears and the soft "face" appears, of course th«
pressure will have to ho gradually raised to keen
the water out. Cribbing and rinrap benenth th»
piers now present dtfflc>J)tJ*a which will disappear
when the tunnellers p.-i.ss the pier line Clay in
large quantities Is dumped Into the river to make
a firm bed.
U. S. BILL AGAINST CUBA.
Mr. Taft Explains Finances to
House Appropriations Committee.
Washington. Dec. 15.— Cuban financial
situation was explained to the House Com
mittee on Appropriations to-.1.-'y by Secretary
Taft. Through his explanation it was ascer
tained that American Intervention in the island
made necessary the expenditure of something
more titan $2,000,000. An itemized account o*
expenditures has boon kept as the basis of tho
claim of the United States against the Island
government for reimbursement. It Is the
understanding that this claim la not to be
pressed Immediately, although on ascertain
ment of the condition of the Cuban finances an
order may If sue from President Roosevelt to
the provisional Governor of the Island to trans
fer a monthly Burn from the Cuban to the
United 6tatcs Treasury as payment on this
claim.
The present expenses of the army of Inter
vention and all other upMMI incident to
American administration of aiTalrs in Cuba are
being paid directly out of the Cuban Treasury.
GEORGIA OCCUPATION TAX NULL.
Atlanta, Ga., Dec, 16.— -Th« occupation tax passed
under tho general tax act of 1902 v>vl* declared un
oonatltutional by the ntate Supreme Court to-day.
Th« decision was rendered In the case of the state
acalnst tim Southern Bell Telephone and Telegraph.
Company. The decUloa. It Is estimated, will caua«
• loss of 1160,000 annually to the state.
WANT AMERICANS ONLY
Foreign Contractors Barred from
Panama Canal Work.
Washington. Dec. 15.— Foreign contractors are
to be barred from' competition for the comple
tion of the Panama Canal. Chairman Shonts of
the Isthmian Canal Commission mad« this an
nouncement to-day. Many changes have been
agreed to In the form, of contract to be en
tered Into for the construction of the canal,
but the most Important is the limiting of pro
posals to American firms. The right will be
reserved to reject all the bids submitted. in
case none Is satisfactory, and the commission
will then either throw the competition open
to foreign bidders or proceed with the work
•without contract. January 12 is the date set
for tho opening of proposals.
A substantial reduction In th^ bond of the
successful bidder was also made by the com
mission. In compliance with the request of
prospective bidders. The bond will bo only
$2,000,000, and the total liability of th« con
tractor is to be limited to tha loss of percent
age and premiums otherwise payable and ?3.
000,000 in addition. Chairman Shonts indicated
other changes as follows:
To relieve tho contractor from responsibility
for the use of defective materials, or for the
preparation for use of the same, provided he
has requested the chief engineer in writing for
the definite approval of the materials or tho
preparation for use thereof, and the chief en
gineer after a reasonable time fails to act upon
such request.
To provide for a later change In the estimated
cost and time of construction, as originally
agreed to by the~*'ns;ir.rerlr.sr committee, in casts
the plans and specifications for the construction
of the canal shall bo materially altered in any
respect; or if it shall be made to appear to the
President of the United States that the esti
mates are based on physical data so erroneous as
to materially affect the estimated cost and time
of construction ;' or that the estimates have he
come substantially inequitable by reason of the
intervention of an act of God or a public enemy;
or for any other material cause which shall not
have been taken into account by the engineer-
Ing committee in making their estimate and for
which the contractor is not responsible.
It was also provided t-it in case the govern
ment should decide to terminate the contract
when the contractor is not In default the con
tractor shall be paid the cost of the work per
formed by him to date and $2"»0,000 in addition
to such percentage as may have been earned by
him upon such cost up to that time.
The responsibility of the contractor to the
commission for all Injuries or damages Inflicted
upon tho plant, canal or its auxiliary works in
limited to negligence of himself or any of his
employes or sub-contractors or the employes of
such sub-contractors.
RAILROADS MAKE HKPLY.
Say They Are Trying to Relieve
Coal Famine in Northxcest. .
Washington. Dec 15.— The telsgTam sent yester
day by Chairman Knapp of the Interstate Com
merce Commission to the presidents of various
railroad systems calling their attention to the many
complaints of car shortage and failure to transport
the necessaries of life, brought forth replies to-day
from Vice-President Penninarton of the Min
neapolis. St. Paul & Sault Ste. Marie Railroad.
George B. Harris, president of the Burlington &
Quincy Railroad, an 1 Marvin Hushitt. of the Chicago
& Northwestern Railroad. The ansvrers. however,
are not from the railroad companies supplying the
territory where the shortage of fuel 13 said to ex
ist. The dispatches made public by the commission
are as follows:
Vice-president Pennlngton of the Minneapolis.
St. Paul & Sault St«. Mnrfe Railroad, telegraphs
from Minneapolis:
There i 3 no blockade of freight or shortag* of
cars on our lines west of Minneapolis, except what
is due to very bad blizzards !n the last few days.
You can r*st assured we would exert every effort
possible to relieve any suffering there may be on
our I:*?.
President Harris of the Burlington telegraphed
from Chicago:
We will endeavor to comply and furnish prompt
and satisfactory service, and be much pleased to
have any sugge.stions you will kindly make. There
has bef-n no general or protracted shortage of cars
or condition of traffic on the Burlington road, al
though it Is true that every year there Is some car
shortage and soaie congestion due to the fact that
shippers, especially of coal, have little or no pro
vision in the way c? storage, and always decline to
anticipate their orders; consequently there Is a gen
eral demand for coal at the first real cold weather.
We have been able to transport coal for all our
customers with reasonable promptness, and to do
something in the way of furnishing cars and trans
porting coal for other railroads. If there is any
specific romplnlnt on the ' Burlington road at pres
ent, it has not been made known to the officers of
this company., and, if the commission has received
any complaint as to our failure to transport coal en
the Burlington, we will be obliged if you will give
us the details, and we will guarantee prompt relief.
President Hughltt of the Chicago & Northwestern
said:
The Chicago & Northwestern Railway Company
Is not failtns at thl^s time, nor has it at any time
failed, to furnish cars and to move them with rea
sonable promptness, both for fuel and other com
modities, and If there is suffering for lack of any
commodity at stations tributary to its lines, let mi
assure you that it is not due to failure on the part
of this company to dischnrsre Its full duty in this
respect. I have during the last three weeks been in
frequent communication with the Governor of South
Dakota on this subject. Th« reports this morning
radicate a good supply of fuel at stations on th»
line of this company, especially in Minnesota and
South Dakota.
Senator Hansbrough. of North Dakota, had a
conference with members of the commission to
day. Re declared that the situation regarding
a shortage cf coal in his state was most deplora
ble, and that the public schools in some localities
were closing on account of a lack of fuel to keep
the children warm. It Is said at the commission's
offices that for ■ number of years at this season
txnd earlier in the year complaints received of a
lack or equipment properly to transport freight
have been received, but that the situation was
sever so acute as now. The actual work of the
commission In looldas into the situation will be-
Sin next week at Minneapolis and Chicago. Com
mi.-s!on.-rs Lane and Ilarlan left Washington to
night for Minneapolis to begin i) ■ work of in
quiry.
Senator McCumbcr to-day received the follow
ing- telegram from J. P. Whl!;teniore. dated at
Galesburjr. N. D.:
The United States aranr could not be he-tor em
ployed than in comp*lting and asflstins theso
railroads to drop everything and !.-:"l u« coal.
Half th« Northvest will be freezing in a week,
ami the whole of it in two weeks.
Mr. afcCumbri announced ht* intention of for
warding th€ telegram to the Hresidfnt as the com
mander in\ci.lof of the un),
PENSION BAY 111 THE HOUSE.
Three Hundred and Fifty Bills Passed in
less than an Hour.
Washington, Pec. 15.— The House to-day passed
300 invalid pension bills In less than an hour.
Before taking up pension legislation the Commit
tee on Appropriations reported an urgent de
ficiency bill, carrying $:.'..>•", for tie various de
partments of taa government, including $150.00) for
mileage of army oltlcers and aVajMB to carry out
the Pure Food law.
Representative Patterson, of Tt!»n- 3 tendered
his rtsijnv'.tion as .i member of tha Irvs-jlar AfTalrs
Committee, and the Speaker appointed nun
sentative Uarrett. or Tennessee, to the vacancy.
Sunday. January 3a, was set apart or services la
memory of Senator WiUiura a Bate, of Tennessee
"Heads I Win-
Tails You Lose"
Is the unfair game coffeo plays with
many persons. Give It up and get
a bquare deal" by using well-mada
POSTUM
•• There s a reason"
The Financial World,
No rreat activity ahow^ in the —^isi
though plenty of developments warrant a ait.
uation altogether contrary to that which mZ
upon the Stock Exchange. We ought aot^^
to havo activity— but buoyancy l 3l 3 due~»bien^[
of buoyancy through activity wholly Inexjwj?
on any common sense business baaia. Aita*
alous as crowding facts make stock mart *
quietude, the situation seems actually to h*
or,.- of the cleverest of Wall Street conuntw*!!
tors phrases It: "Absence of public ■Moni-^
keeps the market narrow, but does not m«£r£
weak. On the contrary, the very factts
margined accounts arc at minimum la a ♦IT t
nlcal feature of strength. There l 9l 9 ! ) i! C ';"
get scared when men of buckram flaih nZ^P
of lath." ******
A commanding ep!3ode of the we*« is the
nouncement of Great Northern's financial nl
to Increase the stock of that company te th
amount of $fiC. 000.000. when Issue* this wi*
make total capitalization $210,000,000. Jm»«
J. Hill informs stockholders that th capital
obtained is to be used for necessary bn^jyy/ 0
ments In transportation facilities. Jam«
Hill again signally demonstrates that fldsUrv
of stewardship of which his name ha* becocj 7
the symbol. He shows to stockholders that th
time 13 ripe for them to come into partial en*
Joyment of the benefits due In the first place to
natural prosperity and in the second place to
able and high minded administration. E^
details of the plan show extreme consideration
toward shareholders— they are not required Im
mediately to hand out the price of their tat
scrlption to new stock, but are granted extended
terms of payment. bearing as lightly upon them
as possible. "r.V.
That there is need of extension of trans
portation facilities Is certified by every railroad
authority in the land. In the case of Great
Northern there is a. special demand from soeh
far Western territory as Idaho. Washington and
Montana. Every one of those States finds de
velopment arrested because of th* incapacity of
railroads to handle the new and enormous traf
fic created by crop and Industrial progression.
But what hap Dens when Great Northern an
nounces its plan? A local politician of Minne
sota shouts against Great Northern— «ays it
cannot accomplish this transaction without the
"consent" of ilinnesota. Minnesota, of ccjrse,
has about all the railroad service it needs and
Is not worrying about the requirements of other
states. The opportunity is presented to make
a Mule cheap political capital out of a purely
business proposition. Mr. Hill says It won'
work—thai thin latest attack does not grro
Great Northern concern.
This whole transaction should be viewed
broadly— sanely— but Wall Street traders oa->-,
preferred to decry It, and th« very day that
Great Northern's plan was announced they at
tacked the stock with short sales, depressing ;ta
quotation more than fourteen points. Such fan
tastic performance could not have lasting eSect
for there is not the least disposition on the part
of owners of Great Northern to supply short
sellers with .stock— faith in James J. Hill
tco deer rooted.
In fact, no higher type of railroad manage
ment has ever been known. The Hill conception
of duty is that corporate management Is stew
ardship — that it owes strict account to cwners—
that business must be conducted along lines
which build up revenues and enhance value*.
And it la plain that In the long run such policy
makes just as much for public as for privata
benefit. Political controversy as to this is ato
ply political chicanery.
And. happily, the Hi!! typo of management
has become typical rather than exceptional, "ft*
see the same high character, for example, la th»
administration of the "United States Steel Cor
poration. Here, too, is combination of publia
service and strict regard to stockholders' rights.
Also may be noted the liberal attitude of tha
Corporation toward Its employes. It has re
cently advanced wages, and It Just now an
nounces the usual annual opportunity for em
ployes to subscribe to preferred stock at con
siderably below market price and -with the cus
tomary safeguarding guarantees. Such action
goes far to solve capital and labor problems.
Such relations between a corporation and '1
shareholders and employes answer any poeaJMa
criticism concerning alleged corporate aboaea.
Incidentally. Steel Corporation business reache*
amazing heights. Net earnings for this yarn-"'
exceed $150.000.000— and while at present the
policy Is stiJl pursued of charging back iarg-»
amounts from th-? surplus to construction— a
policy which may continue till th© completion 0!
the building of the Gary plant — time canac:
be far off when the common stock must begin
to inherit its due share of profits In the shap*
of Increased dividends. If present business ratio
of Increase is maintained the Steel Corporation
will have on hand at the end of next year a
surplus approximating J2oo.ooo.ooo— equivalent
to 40 per cent of the entire Jssua of common
stock. Ultimately the common stock must be
come more valuable than the preferred, as It In
herits everything after payment of fixed charges,
preferred dividends and maintenance appropri
ations*.
Hill railroad management and ITorgan In
dustrial management represent the very highest
development of modern finance.
In th? week's Stock Exchange record quota
tion ups and downs have been keyed largely to
money market fluctuations. There has bean !«d3
effect from common senss appreciation at facu
than from hysteria.
One encouraging factor is the oven, departure
of Standard Oil financiers from sons of the!?
recent grudging bearlshnesa. St. Paul's move
ment reflects this change of attitude. About all
the Investors have been scared out of stocks
who can be scared, so seems to run tha o:3cial
estimate. The Vanderbilt (croup, hitherto held
back by the same influences, may cow begin
to show naturalness. New York Central as a
6 per cent stock selling below where a rear ago
It sold as a 5 per cent stock is not merely an
abnormal exhibit— it Is an exhibit of sheer force
and aggressive manipulation upon the part or
certain quasi inside interests who have in this
quarter the same personal profit seeding ambi
tions that during the past three or four years
have been served by the repression of St. Pan!.
As stated here a week ago. Canadian PafiH*
and Its auxiliaries— notably the Soo— are prof
iting by investment awakening to the am*mtt
strides which the properties are making In divi
dend earnings.
The Flower group of stocks ar^ among thos«.
sure to be advantaged by general marSst better
ment. In Brooklyn Rapid Transit and People's
Gas particularly there must eventually be *•*
flection of the great gains which they have •»•■
making 'as profit producers. Brooklyn RapH
Transit ought soon to be upon divides* ■■■•»
and People's Gas is due for a substantial w*
creas* in its current rate. Upon devefopn:en.J
seemingly very close at hand both these prop
erties promise excellent returns marlM * : J^s
There simply now matures the good resu.. 01
superior management.
In all probability the lower priced shares on O»
board will bo leaders a* the market breads*
Among railways Denver. Colorado Southern **■»
Mexican Central are entitled to material **
creaaa of market value. Extraordinary d*ve^
opinents show In Mexican Central- H. t
Pierce has accomplished a coup for v - lch Jrl
fesslonal Wall Streot has not been 9 n s5 ic3a
transferring the Central system to '■* n , A:i
government upon terras whioh dSJur !i»?issV
to every group of the property's »*c ur^
ers. Through fad or prejudice or ra:ulca Nlr .
Street has long instated upon *»!""£„ «f
Pierce. Ample answer to all the *>itMrsse-^
criticism comes through the splendid as*
plishment he now rounds out.
Reference In this review to "'' eTt!Osl *Loß* t '
pending in the Hocking Coal & Irw ij>*
will soon bo justified— probably mar
nouncement. There la Uttlo ■s**i2 by ■-•-'
feet. Quotations have been held l **£ J'-Dtrf
ences of an ultra-conservative caaracw
dends will be th* final exhibit.
The market ; •:• mining • ocurltle *. ( ,^ a fto2>
■•• life. MaaM to be recoveries *a L ert ie*
the Niplsalng depression influence. . #n •» 1
like Mitchell. Old Hundred. Cobalt * Ci >
British Columbia are saf»-wg /*& rfl 2
and this is especially true 1 o« 3 jiinff >**
Comstock Tunnel, which, thotua^ u# v»
Insignificant figure. is "» tad v u*l-**' A
York, Stock Exchange. • •**• ~^