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The sun. (New York [N.Y.]) 1833-1916, December 03, 1912, Image 2

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THE SUN, TUESDAY, DECEMBER 3, 1912.
5
of that court that tho Southern Pacific,
peauso of Ha control of tho line from
Ogden to Han Kranchieo nnd other Call-
ifornla points, wan thedomlnatlng partner.
The Supremo Court hold that the two
f systems worn comotitiK rlor to the
I merger and on this point lay down an
interesting Hue of reasoning.
"It in nr(d tlmtthlsconi)etltlve traffic
wan infinitesimal when compared with
the eroHH amount of tho business trans
! acted by both road and t-o small an only
I to amount to that incidental restraint of
trado which ought not to he held to be
within the law; but wo think the testl
S mony amply shows that while these rouds
did a great deal of business for which
they did not compcic, and that thoooin
I pctitive btis'ners was a comparatively
I ttnall part or the sum total of all traffic,
htato and interstate, carried over them,
! nevertheless such competing traffic was
largo in volume, amounting to many
' millions of dollars. Ilefore tho transfer
I of this stock this traffic was tn subject
iof active competition between these sys
tem, but by reason of the power arising
from tuch transfer it has slnco been placed
tinner a common control, it was iy no
means a negligible pari, but a large and
valuable part, of Interstate commerce
Which was thus directly alTected."
By this conclusion tho court apparently
disposes for this particular case of the
question of the distinction between reason
able and unrcaonable restraint of ttade.
Jt also holds that it is not necessary to
Acquire a majority of tho stock of a cor
poration in order to secure a control.
tufflelent for Control.
In any event this Btock did prove
Kufflcient to obtain the control of the
(Southern Pacific," say the Justice of the
fiprerne Court. "It may be true that in
mall corporations the holding of less
than a majority of the stock would not
amount to control, but. the testimony In
this case is ample to show that distributed
bb the stock M among many stockholders
compact, united ownership of M ht cent
is ample to control the operations of the
corporation This Is frankly admitted
In the testimony of Mr. Harriman. the
.prime mover in the purchase of the
Southern Pacltlc. It was purchased, he
declared, for the purpose of giving a
dominating interest, in the Southern
Paciflo company and, ho added, the
Union Pacific did thus acquire such in
terest "
Justice Day, who delivered tie opinion,
added that the consolidation of two such
great ty6tenw of transportation directly
tends to lesfc activity in furnishing the
public with prompt and efficient service in
carrying and handling freight and in
carrying passengers and in attrition to
and prompt, adjustment of th dinand
of patrons for losses nnd in these respects
puts interstate commerce under wstr.iint
In the matter of the relief to Is- given
L the court siys:
"in enter to eneciuaiiy concmiie me
operating force of the combination sued
disposition should be made subject to
the approval at.d decree of the court
and any plan for a disposition of this
stock must be such as to effect u.illy dl
Kdve the unlawful combination " thus
I crcattd The court sh-ill proceed upon
J presentation of any plan to hear the
t Government and defendants, and in.iv
' bring in any additional parties whoo
J presene" may he net-os-fary to n Una'
, disposition 'f the stool; in conformity
'to the viewnh'-rejn expressed "
j In concluding the court entered prac
. rically the same order as in the Stardard
Oil and Tobacco cases, stating that un-
less a satisfactory P'an nf dissolution
was worked out within a limited time
tin this lr.s'nnee three months--the Nu
I prenie Court would proceed to appoint
' n receiver ar.d direct a sale tc accomplish
the dissolution
; Justice Vandeventer. who passed on the
CAte as n Circuit Court Judge, did not
participate in lo-uay s decision ,
1 I
j Defendant .Named,
j The defendants ip the Pacific railroad i
j merger stilt named In the Government'!
Mjill were the Union Pisolite, Oregon Short
Iiln. Oregon lluilroad ard Naviga
tion: San f"d'o. I.os Angele- nrd t-r-li
Lake'; Atchison. To.-k.i nr.d S.iMh ;
outhern I'acific. Nortiir-rri Pacific and
threat Northern railroads; the fanners
I,oan nrd Iru-t Company of New ork.
Ind the following Individual defendants ,
r. .J rurrmwn. .i.ieon 11 nrnin. uuo
II. Kulm of Kuhn. I.oeb ,k Co ; .le.mei-
tttlllrnnn It H RnrnPi,. Ht.nrv f Kri.-L-
Jrs-Senator William A. Clark and liobert
i.T,ovett
I The dissolution suit wn filed in the
iCnited .States Circuit Court at Salt Iise
ZCity. Utah, in February. Hint After te-ti-Sinny
had been taken and the matter
Saubinitted tho Kederal court by a vote of
St to 1, Judge Hook dis'enting, dismissed
Sthe Cioverntnont's bill From this judg
ment the Oovernment appealed Tim
"tjrincipnl ground for the decision of the
jfower court was that the Cnion I'acilic
jfnd the Southern IMcillu were not cotn-
peting lines and that the combination
Jfras not in violation of the Sherman law
J. The merger of the Pacific railroads was
Jth crowning achievement in the remark
Sable career of lh late Kdward H llarri
troan in iionuirin:;. readjusting and
Improving railroad trnnsporation lines
Prior to the merger the Union Pacific
eyfctem consisted of a line of railroad
from tho Missouri lliver at Omaha 'and
-from Kansas City to Ogden, Utah, and
Portland, Ore, with brjnche and con
rtiections and a line of steamships from
J Portland to San Francisco and Irom
; Portland to the Orient
; 5 Comment on the decision among
i Senators and Representatives was spar
i lngly made. Senator Cummins said he
waa very much pleased with the opinion,
J but that he believed the Supreme Court
should review and approve the plan of
J dissolution before it goes into effect, or
j tho result might bo as unsatisfactory as
Ihad been tho dissolution of the American
Tobacco Company
Attorney-General Wickersham expressed
t great satisfaction.
! "Tho decision," he said, "merely oj
! tends the principles of tho Northern
! Securities, case to the Union Paciflc
! Southern Pacific merger and decides that
j the continued holding by the Union
.Pacific of its etook in the Southern Paciflo
is in violation of the Mierman lav Tho
..principles laid donw In the Standard Oil
; cafe and in the St. I,ouin Terminal Asso
! ciation case are reaffirmed "
PLA1IS BURIAL AND QUITS LIFE.
I Former Rrnker, 70, Leave Knit'
f.lnii, and .Vote to Coroner,
t In a furnished room at 380 St.
! Nicholas avenue, which ho had occu-
j)ld . for several years, Thomas Stur-
neon, 76 years old, once a cotton broker,
'.-was found dead yesterday. Near at
hand was an empty glass nnd this
letter addressed to the CoronerT
"This Is not a case for an Inquest
"" It is a plain case of quitting, I nm
rtired, old and poor. My friend Cel.
Vf. 8. Harlan will tako full charge nf
, my burial from Dargoon'c, 15X Kant
' 117th street, For bills and other ev
'penses I have left full artlculer.s In
JetlWH addrossed and stamped, i'lcaso
,uee that they are mailed ut once, and
4"that will save time, trouhlo and expense
'o others."
, Tho body was taken to the morgue
jfor an inquest and to await tho dead
""jan'n friend, IV. H. Harlan of 751
Oreene street, Hrooklyn,
, New Pastor for"llnnllton (irnnar.
J,' Tb KW Dr. Paul 8. Ilnbach of Kaston,
"'Til. has acoapted a rail to the Hamilton
Onax Reformed Church, Math street and
ALARM WALL STREET
1'nion Pnclflc Common Soon Jlc
eovcrs Early T.ohs Other
Scfiiritifs Orderly.
.ITDOK 1.0VKTT RETICENT
Jleninrention of Central Pacific
Within Boundaries of V. P.
Will Hp Arnmrc(l.
As far as the railroad map is concernod
the purport of tho decision in tho Union
Pacific morger casn waii clear. In tho
parlance of tho day it meant the au
tonomy of tho Southern Pacific nnd tho
delimitation of the Union Pacific, with
tho control of tho Central Pacific left to
subsequent negotiations lytween tl
attorneys for tho Government, tho at-
torneyfor the Union Pacific and the
attorneys for the Southern Pacific.
inero
was very little doubt Hint these negotla
lions would result in the demarcation of
tho Central Pacillo within tho Union
Pacific botuidaries.
It may m taken for granted, that the
Union Pacific will avail Itself of tho privi
lege which the Supreme Court granted
of buying the Central Paciflo from the
Southern Pacific. As was pointed out in
the decision, a rotito from Omaha to the
Pacific coast at San Francisco was the
route designed by the lioernment when
tho original franchise was awarded to
tho Union Pacific. From Ogden wct tho
route was subsequently taken by tho i
Central Pacific, which fell under tho con-.
trol of tho Southern Pacific. That left
MAP OF HARRIMAN LINES DIVORCED BY SUPREME COURT
W A 5 M t N O T O 4Ct
WjfSeX M O N T A
, lit i ..ls
5AN
FRrNNCIb
m K r-
iniimniiiiMiii
the Cnion Pacific with one end in the air. j
and i' was in that unwieldy wsitiou when I
Mr. Harriman took hold of it. His prin- I
upai oiijvci. in uciiuiwiiK cuiuioi uie
Southern Pacific was to secure control of
the Central Paciflo and thereby obtain a
San l'raneibco outlet. It is altogether
lmnrnl.nl.ln lli.nl tl. fnlot, PneiOn wll 1 !
" " . . .l . ol tlie banners.
surrender that control now that er-1 'I hough nothing official was said as
mission to retain it has Leen granted. i to what will be done in tho way of re
in the matter of route and mileage tho I organizing the system, it was clearly
autonomy of the Southern Pacific meana Sjlt tmurt Ik- .,ntWa
that it is to be a system extending from fronted the reorganizes as were involved
Portland tc) San FranciKCO to I,os Angeles, in th,. reorganization of the American
through Arizona. New Mevico and Texas I
to Galvostou and tlienco to New Orleans,
with a subsidiary company controlling
1..VKI miles or lino trom a point m t ali
(ornla down the western coast or Mexico.
Kxclusive or the Mexican line, completion
or which has lieen delayed bv tho revolu
tions in Mexico, and excluding also the
Central Pacific, tht Ireo and indojondent
Southern Pacific will control 8,60 miles
of track.
The delimitated Union Pacific system
will control directly its present mileage
of 7.115 and 1.532 miles of ttui Central
Pacific, while it also will retain control
of tho mileage of tho Sun Pedro, Ixjs
ml Salt Lake As thus marker!
out it will extend from Kansas City and I
Omaha on lhe cast, on to Denver and I
Ogden, whence it will have threo outlets '
to the racltlo i oast, one by way ot
the Orecon Short I.ine and the Oreeon
Washineton Itailroad lo Portland and
Seattle, another by the Central Paciflo
to San Francisco and the third by the
San Pedro, ls Angeles ami Salt Ijike
to lx)S Angeles.
By the decision the Union Paciflo also
retains its interest nnd influence in tlie
Illinois Central, which is practically a
controlling interest; in the llaltimore
and Ohio, the Chicago and Northwestern,
tho St. Paul and the New York Central
hALFRED BENJAMIN
Full dress clothes
Ready-to-wear garments that aptly
illustrate the significance of our trade
mark "Correct Dress for Men."
Full Drtn Suits $6 to $63;
Drat and Dlnmr
32 H. P. Touring and Readster f7B.
FL'Ll.T i:uuii'Ii:d
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Hlldlm
riear.
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Maanrto
ran
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auk
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ITOB tlHOAtlW'AY, for. Wth St., N. V.
NI'.WAItK, .. .1.; :til llnlsty St.
i;t (Irjinec. Moniilalr, Hniton.
It was for tho acquisition of securities
in these latter roads that. Mr. Harriman
was most violently ns-sallcd as the "colos
sus of lloads." 'I he outcome of the case
leaves the Union Pacific's Interest, in these
securities unchanged.
In til') security markets, where principal I
Interest was taken in the relation of the
decision to the standing of the numerous
stock and bond issues of the Union Pacific
tt.r'..
Pacific common, an advanco of tl,1-, tviintH ,
In Union I'acific nrefemsi and an advance
".,7.,,Vi,.,,'.,'l C!V"ll7li JaVnVtV ''iV.'wi'1.1
ISi:,'!!
while the preferred lost nearly Half and11"" ooimuinsiuii mew no mun. ...v..
the Southern Paciflo Imnds more than
half of their gains. Otherwise the market,
for tho securities of the companies eon,
cerned wnn orderly enough.
'I ho brisk advance In Union Pacific
preferred occurred when it wn thought
the victory of the Oovernment would 1 equal to one-third of the United States
force a distribution of treasury assets ' am, that R H Harriman as an Individual
in which the preferred stock mght share , . . ... . ..n,-,. n,i ,
Speculators were not. so wire of that when dominated the great rallwy consolid.i
more of the text or the decision became tion, was so mild that doubts were os
ktiown. Similatlv the advaneo in South- , piessed that a prosooutlon would follow,
em Pacific collateral tnist bonds was x wa(1 rec.illd at tho time tint tho
whro" 7- )r:h "r
stock, must be retired In the event of that Mr. Harriman and Col. Iloosovelt.
pu
l'.i
itirchase of Central I'acific by Union
cine. The late decline In the bonds
Indicated there was doubt of this propo
sition also.
Neither Judgo I-ovctt, chairman of the
vektowSTortt
NATIONAL. PAK
W V O M
WT
OCrOEV
CITV
; 5fyorj Pot tion
toibe
oieSSsJ.. 4I Ikvi
W1 TU"",J&
--. -etc -. U- SatrthrtipPcciJ'ic
Cc-ntral Pacific Iffcc?? f"i2? Ppotahlybe.
Pu.Yc'fy 'asicl - hy U-yx'o-r? Puctiftc.
Union Pacific board, nor Kuhn. I.oeb ,v'n
Co., the bankers, would comment on the
'tluV fKlWor' ht flm ns
of , ,PCii0 WUH impnrtei to Judg.
I.ovett as he was leuvine his office for
lunch and interfered neither w ith tho regu
larity of his meal nor his nppetlte. A
..i ' i .... ...i i..i .... m
' "l " "I"'ero S-rtuueu lll uuuvs
loliacco Company 'lhe principal thing
and practically the only essential thing
it the disposal of the Southern Pacific
stock held by the I nion Pacific and its
auxiliary companies:.
.Southern Pacific has outstanding II7I,
117.1,1 mi) stock, of which IIJO.CJO.OOO is
owned by the Union Pacific and auxiliary
companies. Oregon Short Line, the
auxiliary company which is tho favorite
holding company of the Harriman system,
owns liox.ooo.ooo of the stock. A.11 or tho
stock ot the Oregon Short Line is owned
by the Union Pacific.
The $U)N,(i0O,00O Southern Pacific fctock
owned by the 0 regeonShortLine is pledged
under an issue of Oreeon Short lane
bonds, of which $I5,poo,odo aro in the
hands or the public ann jM.ooo.om in the
treasury of the Union Pacific. Similarly
all tho J17.roo.000 Central Pacific common
and Hi7.i75.fioo Central Pacific nrtferred
ure own'd by the Southern Pacific and
pledged under a ticna issue, mo banners
'must arrange ror the rtdemption or ro-
adjustment of these security issues and
there is also an indebtedness of $jo,ono.0no
by Southern Pacillo to Union Pacillo
and other matters not so conspicuous,
Tho bankers havo three months from
inn receipt OI me nupreme l.oun S man-
date within which to arrange these mat-1
tors of business.
e
CosTkilor-Ttiaae ClotheiT
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Dinner Coalt SI8 It US.
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SIX YEAR FIGHT ENDED
BY COURT'S DECISION
U. P.-S. P. Dissolution Suit
Unsod on Commerce Com
mission Inquiry.
OOKS HACK TO ROOSEVELT
Harriman. Testifying, Didn't
Itemember Little Profit
of $2,000,000.
The Oovernment 'm attack on the so
'II" Harriman merger began formally
on January 1907. when tho Intcrstato
Commerce Commission got to work on
an invesllgition of tho operations by
it had been iid E. II Harrlmtn
sought the fulfilment of a dream of
monoiiolv of the transcontinental trans-
''ort,u ,on
little , note than six " on t lis later
It described somo of Mr Harriman s
ocratlons as "Indefensible financier
ing." Tho report. In spite of a finding
that competition in transportation had
lecn eflectively stoped in a territory
then President and nlso a "practical
man, were at odds. Mr Harriman,
commenting on the report, said:
"From what I am told tho report is
1
N O R T M T
D-A-K0-T A 1 0 1
) )
s o u r m VfiseoNtiN
jST Ivt.paol
OAKOTA- V.
I . Xa,t0Uft ,
N e B H A 4 6 K,aA I O W A
0 0. K A N S A B MiajOORlV
MEW 0KLAof,A,'V ARKANSAS
ZI C ,,im J .
t. I t JnValF -
Jc"eFaTT?ecZ by - Z4-nion Pacific
political document and part of a per
aonal pursuit of me It is deemed good
politics to attack me "
If this was a prophecy that tho Govern
ment would miko the report the Ixisis
of a prosecution it was fulfilled when
a suit in equity to enjoin the continuance
of tho control of tho Southern Pacific
by tho Union Pacific was filed in the
United States Circuit Court in Salt Lake
City on February 1, 1911. The court
handed down its decision on June ?3,
1011. finding that the Union and Southern
Pacific were not competing lines, and
in dismissing tho suit denied every one
of the Government's contentions. The
vote of tho court was 3 to 1, Judge Hook
of Kansas writing a dissenting opiMon,
in which he held that the Government's
petition was well founded, It waa tho
first suit that the Government had lost
since it began putting the Sherman anti
trust law into action.
As the suit under the expedition acta
of Congress had been tried in the United
States Circuit Court appeal was at once
taken directly to tho United States Su
premo Court.
Up to that point hearings in connection
with tho case had been held oyer a large
part of the country, Mr. Harriman and
Henry H. Itogers, among the defendants,
had died and most of the Oovernment
officials in chargo or the prosecution had
rotlred rrom office
Going back to the Interstate Cotmnerce
Commission's investigation uporfwhich
the prosecution was founded, tho re
sults showed, so tho Government attor-
.,..- declared thnt the Union Pacific
Lh n, ?i 1. i J V i
an" Oregon Short Line, which they re-
garden as irtuauy one concern, were
no longer railroads but a tremendous
banking system. An idea of the eizo
to which this banking system had grown
was to be had from the evidence that since
lf98 tho system had purchased $183,000,000
more securities than it had sold up to
1007, the date of the investigation, and that
it then had outstanding more than
$183,000,000 or obligations.
Tho suit whloh the Government founded
upon this investigation sought to dissolve
tho alleged merger of ho Union Pacific,
the Southern Pacific and the San Pedro,
lios Angeles and Salt Uike roads. It
also sought to have declared illegal the
ownership by the Union Pacific or Oregon
Short Lino of stock in tho Santo V6, tho
Great Northern and the Northern Paciflo
roads
The bill charged conspiracy and the for
mation of a combination in violation of
the Sherman anti-trust act. Beside
the railroads the defendants named
were tho Farmers Iioan nnd Trust Com
pany, Kdward II. Harriman, Jacob H.
NehitT, Otto II. Kahn, JnmoH Stlllman,
Henry H, Itogers, Henry 0 Frlck and
William A. Clark.
Mr. Bonaparte, then Attorney-General,
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Lent-Costikyan x-H
8 West 38th Street
Only Location
in a statement issued before the suit was
begun said that the testimony showed
that "a combination was formed nbout
tho beginning of tho year Iliol by Mr.
K. II. Harriman, the president nnd chair
man of tho Union Pacific, and certain
of his associates for tho purpose of ob
taining a monopoly of all transcontinental
transportation business."
The Attorney-General charged that the
tlrst move was tno acquisition Dyir.
Hangman and h's associates of tock
illll.'l III lie? infill iiT-i 1 1 ..V.IIIV, film uv
......i i.. . c... ,1. ...... t.,.:i!n n.,,l IV...
"elimination of oornotitioll between I """"" " ""VT ' ,r narriman
that line and the Union Pacific. In this,"'"' ''" associates bought t in IMS and
connection it was ulleged that Mr llarri-. p subsequent dealings with its securi
, i,.,i,. i?Mwi Li,.m. r siriniVinm, Mies liv which t lie four men who bounlit
Pacific in li0t from Kwin Hawlev anil
tho heirs or Collls P. Huntincton. "father
of the Southern Pacific," through Kuhn,
Ijoeb A Co.
On February 4, loot. Kuhn. Loeb i Co.
sold 730.000 shares or the "S. P " stock,
including Mr. Harriman's block, to
tlie Union Pacific, which at once issued
Sino.oon.ooo worth or bonds to pay
ror the stock. Itfjwas said that the brokers
received $2,oon,()'Ki in commissions.
The "grab" or the San Pedro, fis
Angeles nnd Salt Ijike road, built by
Senator . A. Clark to run rrom San
Pedro on tidewater in California through
Ixis Angeles to Salt I,ake City, was thus
described by Attorney-General Bona
parte: "Arter the work of construction was in
Brogress the parties in control of tho
nion Pacific, by means of harassing
litigation and by threats of paral
leling the line, induced Clark and his
associates to abandon the scheme or
an independent rond and to join with
tho Oregon Short Line, giving the Oregon
Short Lino an equal stock interest in
tin- San Pedro, Los Angele.-, nnd Salt
I.ake road with that held by Clark nnd
his associates. "
The control or the Santo FW came in
1904, when Mr. Harriman and his as
sociates becvime tho posse-sors of a large
block of stock and Mr. Frick nnd Sir.
Hndgors were placet! on tho board or
directors.
Tho North era Pacific and Great North
ern roads were merely nominal de
fendants in tho case, the Government
allecinc that Mr. Harriman and his as
sociates had tried to got control or those
roads by buying a majority of stock
ana geiiing noia oi
cetttnc
tlie Burlington
"feeder.
ine jsortnern rnciuo deal had
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Ttlepnont, Franklin 4j6i
Shaw-Walker
371 Broadway
boon held illegal In the Northern Securi
ties decision of tho Supremo Court.
The results or Mr. Hiirriman'B over
lordship or tho Western transportation
lines, tho Government contended, had
resultod In increased rates and the block
ing of construction of now lines, thus
halting the development of many West
ern and Pacific coast States. A "sen
sible" deterioration of eervlce was also
complained of, and It was predicted thnt
the Panama Canal trade would bo mo
nopolized through the Pacific coast nnd
gttir shipping lines controlled by tho
Harriman interests.
Tlie detenco offered was that the Union
Pacillo. sought control of the Southern
Pacific to keep from lelng "bottled up"
at 0duu, Utah, its Western terminus,
and that there was no intention of stifling
competition. 11 wiut asserted that In
lltoJ u Wall Street "pool" had tried to
oust the Union Pacific directors front
tho Southern Pacific board nnd that it
was in tho fight for control t hat the Union
Pacific's holdings were increased to 45 cr
cent.
Tho defendants invoked the "rttlo of
reason," averting that the Union Pacific
nover controlled a majority of Southern
Pacific stock, that It owned only 4ti pet
cent, of the slock and that, as it bought
the Huntington, shares in open market,
tho courts could not well hold tho pur
chase to bo illegal.
The most interesting part of the Ions
drawn out case was the apcaranco of
Mr Harriman beloro the Interstate
Commerce Commission in tho early part
of the investigation. Mr. llarrinmn was
on the witness stand nil day One of tho
things brought out was the enormous
increa-o In Ilio capltnliMitiln of the Cni
. . ., , - - - . y i...
. r"'"1 I'"""! I" themselves St2.ouo,noo I
Alton bunds at nr. and sold them in n
few months nt from S." to 96. which was
the price pnid bv the New V'ork Mfo
Insurance Compnny for Sin,(iou,ooi)or then'.
ir. itarriniati was ready to answer j
questions, mil wneu tie was asked if lie
was tho owner of some of tho 103,431
shares of Alton ostensibly sold by Kuhn,
l.oel A- Co. to the Union Pacific, of which
Mr. llnriinicUi was ut tho time president,
hi lawyers urged him not to answer
and ho didn't. Tho argument that it
was an invasion of the rights of tho Indi
vidual, oven if tho case was that of a man
selling stock to Ids own company, was
carried to the United States Supreme
Court, which decided that Mr. Harri
man and Otto II. Kuhn. who had also
declined the same information, "otild
not. be forced to answer.
Mr. Harriman didn't half fill the wit
ness chair that day. he was so little. But
figures that the ordinary man would
have had to go to the books for he .had
at. his linger tips. When it came to
his own profit on Alton bonds, however,
he didn't remember, didn't (keep any
books, and regarded the profit, to him
self of 12,000,000 as too small a matter
to keep in mind.
As has !een said. Mr. Harriman and
Mr. Ilogers havo died since the suit was
tiled. Judge It. S. In-ett, who suc
ceeded Mr. narriman as president of tho
Union Pacific, wa-s by stipulation made
a defendant. Attorney-General Bona
parte, who signed the Government's
petition, and Assistant Attorney
General Plirdv. who assisted at tho lie.
(ginning or the prosecution, havo since
iciiixmi iruiu nine..
The Government's case' in the Circuit
Court was argued by Frank B. Kellogg
and 0. A. Severance, while among the
array o! counsel ror tho defence were
John (I. Milburn. Paul I). Cravath. John
C. Spooner. who apieared ror Mr. Prick;
Judge P. V. Dunne or Caliromia. who
was retained by tho Southern Pacific:
V If I .rvmtu r.f rimal,,. fn. , t. - 1l:..
. .. v, . wi.itiii.i iiji iiro uiiiiiii
Pacific and David T. Watson of Pitts-
tiurg. who submitted a scial brief
for all the defendant.
Hearings in tho Interstate Commerce
Commission's investigation were held
in New York. Chicago. Seattle, Port
land. San Francisco and Ikm Angeles.
Much or the testimony on which argu
ments berorn tho Circuit Court were
based was taken here Iwfore Special
Examiner Willia'ms.
SWINDLE DE LUXE IS HELD
K. J. Mnrr Surrenders After In
dictment Boston Hit Hard
in Book Deals.
following the example or a majority
oi mo men wno navo been indicted with
James J. Farmer and tho latter's son.
Glenn Farmer, in tho alleged $5,ooo,000
book swindle, hdward J. Marr or this
city surrendered himself to tho Federal
authorities yoetorday and was hold in
$2,500 bail by Commissioner Shields,
Marr, according to the post office in
spectors, is supposed to have been ono
of the most energotlo agents of the Anglo
American Authors Association nnd to
havo turned a number of large sales,
In tho meantimo tho alleged swindle,
according to tho Federal authorities, is
assuming unbuliuvnblo magnitudo. Post
Office Inspector Swain returned from
New England with tho names of seven
more victims who say thoy have been
mulcted to the extent or Jj330,0(io, Throe
nro or Boston, two live in tho suburbs or
Boston, ono In Fall Hlver and another
in Vermont.
iuTh,it' l1??-' ,dops not oonclude
tho list of Now Englanders who havo had
extensivo dealings with the Farmers.
The post office Inspectors bay that there
are sixteen others of whom they know
U is predicted that when all aro heard
from It will bo found that New England
do luxe.
,.n ivr iimiu 111,111 i,uiu,uini on editions
I
owwtw
j .BKce MSKyH tnaTiirt'ln.
l
Compensation.
The only fair profit is that
which is fair to you, as
well as to the other party.
We construct a building
not only for a limited
' amount, but for a limited
profit as well.
This profit is fair because tha
owner knows in advance what
its limit will be.
Ouf tea," Tk Httn SlntU Cenlrml
Method o Building," en fWKJl.
HOGGSON BROTHERS
7 EAST 44th ST.. NEW YORK CITY
BOSTON NEW HAVEN CHICAGO
Inquiry Asked Into Bcputed
Agreement With the
Grand Trunk.
INSPECTION OF ROADBEH
Representative O'Shaughnessy
Wants to Know About
Bond Issues Too.
Washington, Dec. 2. A Conjres
Inquiry Into tho reported agreement
between the Grand Trunk system and
tho Now Vork. Now Haven and Hart
ford Railroad Company la proposed In a
resolution Introduced In the House to
day by Representative O'Shaunejsy
of Rhode Island. Tho resolution was
referred to the Committee on Rules.
The measure sets forth that It has
been reported that the two railroad
named aro working In combination In
violation of law. and thit the comblna.
tion controls, In addition to the two
lines, certain Kteam'hip companies. Tho
Southern New lCngland Railway Com
pany Is also mentioned as a part of the
combination.
One of the objects of the Inquiry, It
Is set forth, Is to determine whether
any of the companies named have Is
sued bonds or stocks in excels of thcac
tttal value of the property Involved. Ic
I nlso proposed that the Inquiry shall
embrace a thorouRh Inspection of iho
rKidbfd and rolllnR tock ot tho Neu
York, New Haven and Hartford. I
provides that the Inquiry ahull he con
ducted by n special committee of eeve 1
members.
"I am of the opinion that th reso
lution will be reported favorably," m l
Representative O'Shaunefsy. "Vrt
tain facta concerning the New Knsland
roads have been Riven publicity and n-'
want to ascertain the truth. The tnat'e
hajs already been Biven fome attent.01
by tho , Attorney-General."
Mr. O'ShnunefHy Intimated that If
tho Administration should proof 1
aRnlnst the reputed combination under
the Sherman nntl-trust law his rcso
tlon mlRht be withdrawn.
Mr. O'Shaunessy has discussed hi;
resolution with Representative Robert
L. Henry, chairman of the Commlttfe
011 Rules. Both aBreo that If an Inve?.
tlKatlon Is ordered by the House It
should be conducted by a special com
mittee, as wa done In tho case of th
fnlted States Steel Corporation and th
so-called money trust.
It is nltoRether probable that th
O'Shaunessy resolution will have con
sideration In the Rulea Committee h
fore the holidays. ' This Is dependent
somewhat, It Is understood, on th
coutvo that In' followed by the Attorney-General.
S
F0SS WILL ASK TAFTS HELP.
Governor Want Inquiry of Mew
Ilnren-Gnind Trunk AKrnnnt,
Boston, Dec. 2. Announcement was
made at tho State House to-day that
Gov. Foss would discuss the Grand
Trunk-New Haven situation as far as
It concerned this State, with President
Taft nt the White House on Saturday
of this week.
The President has invited the Gov.
ernors who will attend the annual Con
ference of the Governors of the United
States at Richmond. Va., beginning to
morrow, to be his Ruesta Saturday
Gov. Foss will make use of this meet
ing to ure the President to assist th
Stato in a thorough Investigation of
tho situation by the Federal legal ma
chinery. JARED FLAGG IN COURT AGAIN.
Demurrer to Indictment Charting
Use of the Malta In Block Swindle.
Jared Flae of eet rich quick fame
bobbed up again in the United States f)i
trlct Court yesterday whon his attorney.
Wade H. Ellli. Interposed a demurrer to
the Indictment charging Flagg with use of
tne mans in the furtherance of a stoeK
swindle. Incidentally Mr. Ellis tried to
tell Judge Hough what a "40 per cent profit"
really means among margin brokers. He
said:
For Instance, If I buy a house for 1:0.001
and sell It for fat ,000, how do I figure my
profit? If I only put up a 11,000 deposit and
make $1,000, why. my percentage of profit 1
M per cent. That is the situation In Flags
case.
The Government's answer was indefinitely
postponed at the request or Assistant United
States Attorney Claude K. Thompson, who
had only been served with tha brief at the
opening of the argument.
French Bazaar tor Charity Held.
In the new ballroom of the Rltr. Carlton
from 3 until a o'clock yesterday afternoon
was held a French bazaar in aid of tha Con
valescent Home for Hables In Sea CHIT. I.. I.
Many persons prominent In society "ho
am Interested in the hospital visited th
sale and purchased articles at the tables,
wnicn were in cnarge or Mrs. J. seari
ltarclav Jr.. Mrs, (leorge Jt. Kustis, Mr
(rme Wilson, Jr., Mm. M. V. It. Johnson,
.Mrs. Douglas Robinson, Mrs. Henry Parlb,
Jr.. nnd Mr. Arthur Knrtlr n,,-an A
vaudeville and dance In aid of the home will
00 given ai rtnorry s on December 10.
Xnias Sale nt Delmonlcs'a,
A Christmas sale in aid of the New orW
Foundling Association wuf held in tlie
green room at Dolmonlco's yesterday under
the auspices of the ladles Association of
that Institution. Among thn omcexs of tli
association who assisted at the tool ueie
Mrs. John V, Bnuvler, the president, vim
was at the table rontidiiliu,' imported
articles, and Mrs. Charle.t May t'elrlcln,
Mrs. J. Rich Steers, Mrs. Mephen Fnrrtflb'.
Mrs. Louis Duhaln, lire. John ' Boyviod.
Mr. Joseph M. 8ammU, Mrs. William J.
d JU era, and Mr. P. albert Thabaud.
I
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