Newspaper Page Text
II SECRET PACTS
3 iives Evidence in Govern-
lent Suit Showing- Regula-
4 htion of Prices and Control
I of Ihe Market.
Its judge gary
s in bad position
$ :esent Head of Combination
Jleged to Have Been Chief
f I Instrument in Form-
ing' the Monopol'.
International News Service.
a frEY YORK, .Tan. 23. Tntimato
J rovclaiions o clashes that loci to
W tho f reeling out of William Ellis
Corer from tbo United States
fm corpolion in 1909 were Riven by
timt oro' rtk oa-y,s hearing before
:b. tjereo Brown in t.he government's suit
'Jyissolve tbo steel trust as a monopoly.
ftiJfor the first time Mr. Corey disclosed
iijfct Wall stroot had always believed
"tbo tho fact thnt ho and Jntirre E.
nflGary; who displaced Lira as prosi
HK of tho stool corporation, had
iHiMbnsly divergent views as to the vital
jiiscs of the giaub concern ;s manage-
Rrom 31 r. Corey the government in
fljfeitors learned that he opposed Judge
7fllp",5 scheme to form a pool of manu
turcrs of plato and structural steel
ool that was so broadly ooraprchen
Wfas to involve nearly all of the
I U manufacturers of tho country,
mr. Corey assured Special Attorney
jtfKeral Jacob Dickinson, who led
Ulitbroiigh a. maze of deal3 put through
jjjjJtho steel trust, that he had objected,
oajlrimsell!, to the corporation trying
tfHn 'no s' eel industry by fixing prices
raJpgreoinent and ladling out territory.
tflable to Resist.
buijjbe formor head of the steel trust
jlmcd tho attitudo beforo the gov
ntsjnent's probers that he was powor
arfifj0 resist tho opposing influence in
;jijtc?i trust directorate Jed by Judgo
trough 31 r. Corey, the fact waa
tlKr isc'oscd that at tho famous
urrj' dinner," given by the stool
".Wato at the Waldorf-Astoria in De
dU.cr, 19GS. the framework wa laid
"guueral understanding" among
rtipfttcel men of the country to regulato
and thus control the market
crfJst the independents. In pursuit of
oliw established through Mr. Corey's
vtrfS1C0' did '-tually dominate the
i, ispjnialring prices as it, saw fit.
jjjiffidently smarting under the abrupt
Rer in '57l"cn' he was catapulted out
Bleel tnist in 1910. Corey seemed
trifiK.a WJ,nfT witness, even though
jr. pd?ncc ly go a long Tray toward
s$fel3hiug what the government is
i ""the breaking up of the steel
Jof the Tnist.
fWtSE8 lcaviD.c tlto steel corporation
yd fl?re.y DUB retired from Wall street
IV. dj'6'50SUfl of "early all if not his
SRBjjjm "oldinga in the trust. Tic i3 not
7goSfenaailt il1 tho suit bought by the
;0, l.fpnont, for on parting from the
Cofttnist he relinquished all official re
X'iCorcy gave his first inkling of the
Mjbclwcon himself, and Judgo Gary
K'ie tvm asked by Mr. .Dickinson
D-about the formation of a pool iq
Kces ia pig jron. Prom what Mr.
psou was able to draw out for
foCrrCy carcfull.V weighed his word3
r Jjllll5ed(rslowy it appeared that the
El States Steol corporation, entered
t a6Pi1-eal 7?itl1 tbo Bessemer Pig Iron
v'gQK on (oniposed of rival concorne
y mV1 , 1903 () vrorli an amicable
O,j)o 5" the selling field.
J collection is thai, notuiug
BBW'rjRal wn3 accomplished hi the long
JM Ar as that understanding with
an iro? niaJ'f''1clurors went, be-
8 ceit!iM?i,t'. ot 113 antod to restrict
ld W ln tbafc wy" ventured Ah-.
will Jf??10 H"s u by obsorving that
Z Tr3?ar-V favornd tho scheme, even if
D$rt opposed it.
Blickintou delved into the crea-'
. iHKiaiP001 of tUfl Plate and strut-1
AjHWecl manufacture through which
lllK 1 of ,0 Production of the
P'w'wa8i?onlrol,cl1- 111 "'is agree
m . K-cro Cumbria, Pennsvlvania,
fli fci1"' ''ones and Laughftn com
y VP Brnl s,Dallr ones.
1 ZsWtci i "roenioiit.s made by the
-iK'n -os S,'J', corporation with its
rI?TlWKi.i1V? I'001 ponaltie for vio
IjVvWLW the f-onLractff and Rllot ter
R; 'loinaridcd Mr, Diokiaeon.
,jpt. recollect .ny penaltlcn being
' TP5ii gre.rq any allotments mado under
: ' CyE f ,comPanle were permitted
B?a5i?" I,rodu?t un,Jnr a Der
:H l were." ajieentecl srr. Co rev.
Bmttn"" tf' aprn"mGrit8 wore
dB? recollectton of Bpelnc them in
MMlK,fcrBil50d y? characltr of the
r lVtir. tbough7 "
V v ' '.m abroad atr. Coi-oy.
,AK.t!jKnew of It.
WW??01'0" that ltH MilwtdlarUs
Tlr. DlckinKon, lcanlnp forward and re
pardlnc tho wllnefls critically.
"Walt a woment," Interposed IIr. .Sev
erance, counsel to the alrol trust, wlrh
a vlKor that canacd 2Tr. Corny to stop
"I object to th.it."
"Go ji.head and nuswor," advlacd Ref
"He did," respond d rr. Corey, flrndy.
"Thata enough on that point." rliuck
led Mr. Dickinson, having adduced evi
dence vitally Important to the jrovorn
ntcnt's action against Gary and tho other
Mr. Dickinson drow from the wllncs
that "understand lugs'' as t the main
tenance of uniform prices were reached at
various meetings of the plato and struc
tural pool. Then he got down to the Gary
dinner, aplcing .Mr. Corey If he recalled It.
Outcome of Dinner.
"I do," Tvaa the smlline answer.
"An an outcome of that dinner, waa
not an executive committee, appointed for
various branches of tho steel Industry'."'
asked the government prosecutor.
"That's ?o." replied Mr. Corey promptly.
"Was It not tile understanding that that
committee would appoint flub-commltloes
which was to fix prices for tho output of
those ln tho agreement?"
"Yce," answered Mr. Corey: "it was
lh. purposo of theso suo-commiltecs to
reach a general underHlandinj? :i to all
steel and Iron pijduol rv as to maintain
a schedule of priors."
"Yes," came the reply again
"Did this understanding eventually
bring out the maintenance of prices
throughout the steel Industry?" Mr. Dick
inson went on.
"For a. limited period only," explained
"Now. did you at all times approve of
tho policy of maintaining prices, or did
you change your poroonRl attitude?"
coajced Mr. Dickinson.
"Well, I didn't always approve of it,"
was tho reply. "Beforo tho open market
of Fobi-uary, J POP, T favored meeting mar
ket changes and making cuts In prices."
Corey Then President.
Tho time adverted to by Mr. Coroy was
a year before the crlsiB in the manage
ment of the Steol trust that ended In his
retirement from the presidency.
Reverting to tho Gary dinner. Mr.
Dickinson asked if Sairiuol G. Mather
and William G- Mather ofthe Pickards
& Mather Steol company of Cleveland,
rivals of tho S'tcel corporation, were not
appointed as members of tho agreement
Mr. Corey "thought" they were, but he
was unable, he said, to recall the names
of all who wont Into tho agreement.
The formor Steol trust chiof told upon
being prodded by Mr. Dickinson of the
Stool Billet association, organized to put
up prices In that particular branch of tho
Industry. When Corey was In the Car
ncglo Stool company before Its absorp
tion by the Steel corporation, he refused
to go into the Steel Billet association,
ho said, but lator on tho trust did and he
had to go along with It.
Mr. Dickinson resorted to minutes ofi
the Steel corporation, with which the
government Is fully equipped, and read
off a list of leases betweon that concern
and companies producing Iron ore. Mr.
Corey listened with evident impatience
and finally blurted out. "I'd like, to say
that I didn't always approve of those
Controlled by Gary.
He pointod out that the leases were
before tho finance committee, which was
ruled by Gary. One lease to which Mr.
Coroy objected waa that owned, by .Tamca
J. Hill, the railroad magnate, which, to
Mr. Coroys mind, called for an ex
travagant figure. The Steel trust not
only Bound itself to take all of the Iron
ore dug out of the mlno, but agTeed to
do Its shipping entirely over the Hill
"I wasn't tn 2s'ew York when that lease
was signed,'' protested Mr. Corey,
"Wasn't thnt property needed by the
"Yes," replied Mr. Coroy. "but as T
say tho price waa too high. It waa at
least double what the property was
Mr. Dickinson turned to the gobbling
of the Tennessee Coal it Jron company
by tho Stool trtist and found Mr. Corey
able to throw light on that deal.
"I seo by the minutes of tho Csrneglo
Steel company in March, 100S. that tho
Tennessee Coal & Iron company had
bookod a number of 'nice orders of si eel
rails,' " commented Mr. Diclcinson. "At
that tlmo was the Tennessee company a
competitor of tho Carncslo In tho sale of
"It was," said Mr. Corey.
Gobbling of Tennessee.
From the Carnegie minutes Ma. Dick
inson road that the Tennessee Coat &
Iron company- was manufacturing an
"open hearth rail" which was regarded
as preferable to the kind Carnegie, was
"Jn a year or 30 w will up against
tho open hearth proposition good and
hard," the minutes had It. Tho irarrl
man lines bad Just given an order for
175,000 of steel rails to tho Tennessee
company, the minutes revealed, and tho
Carnogio company was concerned over It.
"That's all trno," asserted Mr. Coray,
"Well, what hapened?"
"Tho atoel corporation concluded that
It must .jet the Tennessee Coal fc Iron
company, and It did," was tho reply.
"And it helped tho stool corporation in
keeping its hold upon tho market?"
"Of course il did."
Armor Pool Formed.
Mr. Corey admitted that the steel cor
poi'atlon had formed un armor pool with
manufacturers abroad. This camo out
when minutes wero read .showing that
certain executives of the stfoI corpora
tion wero trying, in 1002, to obtain con
tracts with tho Japanese government
providing ior the orcctlon by English
and other capitalists of an armor plant
, in Japan.
As the minutes liad it. the American
steel manufacturers wore asked to put
up ?28i.000. the others In tho stoel com
bination here to be "left out" if they
declined to put up tholr share.
"I'm enlightened." smiled Corey, a6
ho listened to the recital of the minutes.
"What, did you think about that?"
asked Mr. Dlcklripon.
"I objected to It as being too costly,"
answered Mr. Corey.
"The Bessemer and Carnegie com
panies turned out armor plate," he went
on, "and they entered the pool. No other
companies In this country went Into It."
Hunsicker Handled It.
"T understand that manufacturers in
England, Franco and Germany consti
tuted the momliera of the pool a.broaJ,"
he explained, "but I don't know much
about It. Colonel Millard Jlunslekor,
reprcaonl'-tivo of the Carnegie company
abroad, handled the arrangements for
Mr. Coroy didn't know lo what extent
th armor plate pool ran.
An effort waa mado to draw from Mr.
Corey details relating to tho withdrawal
of Henry C. Frick from tho Carnegie
company in 1900, when Frick start od tho
ruction that rnsultud In the formation
of the steel corporation and the relapse
of Andrew Carnegie In the steel indus
try. But Corey, a, "Carnegie boy." de
clined to be persuaded. Adverting to
Frlck's allegation Jn his artloii against
the Carnegie company that hla assets
wore 5350.000,000. Coroy remarkod that
he conaldercd thorn far less.
"But it'n all too legal for mt this
Frick aullon," protested Corey.
FURTHER LIMIT PUT
WASHINGTON, Jan. 2S. The senate
today passed the Culberson bill to pro
hibit corporations from making any con
tributions for political conventions or
primary elections. Tho bill is an exten
sion of the campaign contribution law
enacted In 1507, under which corpora
tions wero forbidden to contrihiito to
general olectlon campaign funds. A
penalty of 6000 or a yoar'a imprisonment
for officers of corporation violating the
law is carried by tho bllL It would fur.
ther restrict to $5000 each all contribu
tion by individuals In comioatlon with!
nomination or election of prenldetit, vi0. I
president, nonators or repreocntsttives
Dt. G. B, Pfouts has removed hie of
fice to naito 627 Bootou building.
HAI 81 WOMEN
Tex ;is Mother Tells of Tests
Made by Herself and
Daughter of Plant Juice.
" har- found your Plant .Juice to
be a God send.'' Such is the state
ment made by Mrs. (J. B, Rogers, who
lives at 1710 Summer street, Houston,
Texas, who has been using it for herself
and lauj,'hler. She spoko with outhu
siasm. " For myself I have been usin it for
Kidney jind bladder trouble. My
nerves were a wreck. IVLy sleep was
broken, and I was in constant pain
night and day wilh my kiriuoy. Plant
Juico lias stopped the pn.iu and 1 am
resting better and feeling better thau
T. havo for months: but every mother
should know what flaiil. J nice litis done
for my daughter. She is "evontcon
years old and every mothor knows
what a critical time lhat is in the life
of a young girl. Tt scorns as if we
then lay the foundation for a H'fo of
health and happinos3 or diaoase aud
misery. I bolievo that Plnnt Juico is
a necessity for girls and young wom
en." li'or women who suffer with. citTomo
nervousness, who have bluo spells and
a desire to cry, who fret and worry
over small things, or wboHe stomach,
kidneys, liver or" blood are deranged,
will find Plant Juico moro effective
thau anything clso they ha.vo over
tried, tor sale at Schramm-.Toh.nson,
Drugs, l?i-Q (5) Good Stores. (Advertisement.)
SHOT FAVORED 8Y
Utah Senator Rides Free Over
Rio Grande, Being a Man
D.KNVER, Colo., Jan. 2-S. That in
terstate railroad passes axo still being
it-nuod by the Jtock Island lines in
Colorado, and that passes generally aro
issued by tho Colorado roads to in
ilucnco the routing of freight shipments
was brought out at today hcanug be
fore Intorstalo Commerce Commissioner
Harlan and his special examiners. G.
W. Martin, general agent of the "Rock
(aland., told Commissioner llarlan that
ho know of an annual interstate pass
pvor the Rock Island which has boon
isouod to a Colorado Springs ministor.
Martin qualified his statement, as if
from an after thought, hy saying that
the pass was not issuod hy him, but
from some other department of the
Rock Island. JIo admitted that local
passes wore issued by his road in. order
to induce shipments of freight over
the Ihje, iuasumch as granting of
passes had a tendency "to establish
a -kindly feeling between shipper and
the road. Ilo declared, however, that
tho Rock Jsland issued fewer passes
than other. Colorado roads, giving lifty
two as tho total of September's quota
Of thiE number thirty-ono wero is
sued for transportation to Burlington,
tho town on the Kansas border, which
is reached by the Rock Island. Martin
sf.atod that four passes to Burlington
had beou given tho Colorado Springs
agent for Armour & Co. within one
f Commissioner Harlan tried to estab
lish by testimony wh:it ho called a
standard or basis upon which the roads
acted in giviug transportation.
Fred Wild, Jr., general freight agent
of the Denver & Rio Grande, who had
admitted previously to grunting 7000
passes during tho month of June,
answered Commissioner Harlan's ques
tion: "No. we have no standard. We
simnly use our best judgment."
' But you aro influenced by the
amount of business done with your
road by the applicant?" asked the
"Yes, to some extent. We issuo
passes to men of affairs, howovor, more
than to littlq men in a community. Wo
Lry to know just how much an applicant
can do or has dono for tho componv.
Of Ion students and friends of tho com
pany aro given pnsses for their vaca
Tustunces wero shown whero large
shippers werevfavored to tho exclusion
of small ones, though Wild declared this
favoritism was not done to injure com
petition iii any way. Mt, Wild was
asked if, in bis judgment, tho Colorado
roads would be injured if the right to
issuo passes wore takon awaj- from
them and loft, to tho Utah lines. Aftor
some hesitation he replied that tho Colo
rado lines would bo affected some, but
not to any great extent.
During the day it was brcnight out
that tho Denver fc Rio Grande has been
accustomed to givo transportation to
Senator Simon Gtiggonheim of Colorado
and Senator Reed Smoot of Utah, aud
to lesser political personnges. Twenty
live witnesses, including Denver ship
pers, have boon subpoenaed for tomor
row morning. ,
FORGAN ADVOCATES !
CENTRAL BANK PLAN
NWW YORK'. Jan. 2.1. "We. have .lust
passed through idxty dayp of tho tlsht
cihI money wo have had Blnco 1007. ami If
anything' liad blown up, if anything had
happened to frluhten the people, we would
have had another panic.'' declared David
It Forgan, president of the National Cltv
"Bank or Chicago, at the dinner of the
New York Credit Men'K association to
nlrfliL !Mr. ITorgan. who was talking on
"How to Avoid Another Panic," added:
"Tn tho last Hl.-cty daya lliuie has been
hardly a bank that has held a lawful re
serve, and the controller of the currency
wisely said nothing about It. for he is
a broad-minded, suiiflblo fellow,
".V central bank," declared Mr, Kor
ean, "fiuch as wo havo looked for for a
century, forever would quiet the feara of
the people, for It would bo backed by the
gets Fli'o to Jail.
PUKBL.O, Colo., Jan. 23. Homer 'Blue
Pwlchards, who confeaand a few daya ogo
that ho Id wanted in Oklahoma for com
plicity in nix bank robberies, today sot
fire to the city Jail whero ho la confined.
Rinbardf, It Is oald, ban boasted that he
will not be taken from tho Jail alive.
Richards was soverely burned.
"Mosida bv the Lake" irrigated
lands at 5100 per acre, with Hborol
tcrmn, ip the "'oust buy" ox'or offnrod
tbo local markot. Wire, writn or call
tlm National Savings & TrUEt Co.. lop
flnr Walker Bank building, gn It Laku
it. Plunm Wasatch iiif)7.
1 Savings That Are Worth While Are Here in All Departments 1 H
I During Our January Clearance Sales 1 H
I MEN'S SHIRTS l ft kA I
I $1.50 Men's Shirts $1.15 g3J5TIIIrAillriHfi r Brass enrtniu rods, extending' from 30 I
I Ml Wannelrite Pajamas .t . .V, OS ASTORE FOR EVERYBODY l '"' " P "'" 1 I
SPECIAL OFFER IN WOMEN'S SUITS On Main Floor I
1 In this lot are choice styJcs aud a variety so groat as to make a satisfactory fjfy g m I
I elioicc easy. There are broaoVloths, velours, ziboliucs, cheviots, worsteds and jL M b Jj L 1
I imperial serges, suits that earlier in the season would have brought much higher op? JP I
I prices easily. The saving is "worth while, some oi: these suits 'being $45.00 values. I 1
Special Sale of Cut Price Sale of Fill Your Workbaskel S
Blankets Toilet Articles NOTIONS I
Friday and Saturday Friday and Saturday pm afirf S(lturdav I '
White Wool Nap Blankets bottle of Pcroade- 5c . 1
50c box Madame Isabel s face pow- Him" P1US u assorted cabinet, .to H
I Heavy, fluffy qualities at. grc.it Eavingp. , per box 3c jf
Size 02x76, reg1. $2 75 values, special, pr., ."ii.l.b"5 c,ei' toe . .. H
Size 0080, reg. $3.00 values, special, pr., $1.95 h powdej. Horn bail' pins, per liOX. 10f I ' H
$5.50 Blankets, $3.95 Pair 75c bottlc Pivcl.rs toilet walcl. ...... 52c Hat pins, assorted sixes., at H
White wool mixed hlaukcts, size 60x30, vrkh n- c, ., , , ,, , -, - Sai'etv pius No. 1. rcC. 5'J. at 3e H iH
vnde silk bound borders, regular $5.50 values, oanitol tooth "vvasll loe - 1 1
special $3.95 pair. 2oc Luatritc Nail Polish 15c pea1,1 buttons, good ones, at doz, ...5c
$5.50 Plaid Blankets, $3.95 Pair Celery Phosphate, quart bottle at ..75c: Lelong liooks and eyes, reg. 10c. ,at ..5c jH
Fancy plaid ttooi blankets, size 00x30, heavy 50c Cantbrox at 33c Hooks and eyes. re'g. oc, at oc m
2SSi5fc ;,Srrg&io vS?i?p&95 50c ffincls? Alond :,(leal collar suPPoei-s, reg. 5,. at ..3c
pair. cream, band lotion r 3oc Tryune collar supporters, reg. 10c. at 5e H
$5.50 Gray Blankets, $4.25 Pair 50li Tokolon cream 25c Wood garment hangers, rog. 10c, at ,7c I
250 TalcQIU' "mi Brand" 15c Collar bone, colors, reg. 10cf at ....5c H
excellent for slejjing porches and campiug 50e Daggett & llamsdell's cream . . .38c jfilward Jieedles, Sharp s, reg. 5c, at 3c gj
purposes, regular 5.50 values, special .i.95 arc y undei.sok1) Darning cofcton, silk finish., reg. 5c. at 3c I
Main Floor. J r.laln Floor Main Floor J H
You Will Fail to Do Justice to Yourself if Your Shopping Trip Does Not Include a Visit to Our Economy Basement
USUI TO CHANGE :
UTH ELECTION Wi
(Comtbiued frohi Pago One.)
name shall he printed his residence and
tho name of tha political party party or
Darting by which he has been nomlnatprl.
Where a candidate has been nominated
by ))ctItlou the word "Independent" ahkll
appear on the ballot ln place of the po
litical designation. T-'be iounty in which
tho candldato resides shall bo srtven In
caao he Is a. candidate for ntatc offlre. or
an office of a district In which there aro
two or more counties. Jn case tho can
didate aspires to a county office the
names of the prcciuct In which he resides
: shall appear upon the ballot.
A voting: square shall appear at thy
left of each name of a candldato In which
the voter may designate bJs cholee. Pro
vision Jb also made for a place on the
ballot for constitutional amendments and
other propositions on which the voters
may be called upon to register a choice.
By tho use of thla form of ballot a
voter may at his homo or offlco .prepare
a sample ballot at leisure, marking the
ballot the way ho wishes to resistor his
vote. Tic Is permitted to take this bal
lot to the polling place and to copy the
markif on the official ballot, thus facili
tating the voting.
A. change in the manner of marking the
hallot Is also prescribed by tho bill. Un
der tho old law the voter was permitted
to cast his ballot by marking a cross
opposite tho candidate voted for with pen
and ink or Indelible pencil The new bill
Erescrlbes that the ballot must be marked
y crosses made by a rubber stomp. The
county Is required to furnish sufficient
rubber atompH and pads for the use of
N'ASlTTiTLLR, Tonn.. Jau. 2. Thu
Tcnncssco legislature today elected
Chief Justice John Ts. Shields of tho
stato supreme court United States sou
ator -for the term begiuniut; jM'aruh 'I.
Justico Shields is a regular "Democrat.
SPRINGFIEr.i'D. Jan. 23. Eight ballols
lodav loft the speakership deadlock in
the lower house unbroken.
Representative Rapp. Demcor.it.
touched the hlKh point with slxty-nlno
votes on the fifty-fifth and fifty-sixth
ballots, tho Progressive strength being
thrown lo him.
DOVER, Del.. Jan. 'J. The Democratic
majority in the Delaware legislature
axaln failed to agree upon a United
Slates senator today.
CONCORD. Ts". IL. Jan. The dead
lock In the legislature over the choice of
a United States senator continued today.
STACEY FOUND GUILTY ,
OF ASSAULTING BURNS
CHICAGO. Jan. 'SU James A. Stacey.
charged with having assaulted formui Po
lice Lieutenant. Uernaivl J. Burns when
the latter trlod l arrnst him as a sus
pect In connection with tha robbery of
STO.000 rrom the Uaiik of .Montreal nl
Xnw Westminster. H. C.. was found
guilty today. Former Lieutenant IJurna.
wIioijc failure lo appear to testify In tho
casu had caused the court to Isaup a
writ of attachment for hla arrest, ap
peared today of hlr own accord. He de
clared today lie did not believe Stacoy
to lie one of the men who bad attacked
him. Burns was dismissed from the po- ,
llco force for having allowed Staeoy to i
escape. Stacoy was arrosted later In
St. Louis. J
CHARGED WITH THEFT
WASHINGTON-, Jan, SE.AFRlstant
Secretary of tho Treasury dismissed to
day George W. Hall from tho customn
service at Pittsburg on chargOB of "dere
liction of duty and embezzlement," Hall
to; an ftxaminer and also was holding
temporarily a position In tho appraiser
offlco. By holding the tvo positions, It
b said, he Rppralscd Importations and
then passed upon his own appraisal for
liquidating the duty. In this manner, It
Is charged, ha waa able to embaszla dn
tlon raid to thn government.
Would Hmbraoo all OIzigbob.
WASHINGTON, Jan. 33 Extension of
tho Shnrtnan (intl-inint. law provisions to
uomblnatlons of farmorn or laborers la
propoNed Jn hti amendmniit to the anti
trust law lntrortucnd todf.y by Rnpr!errta-
Mil REPLIES TO TIE
(Continued, from Page Ono.)
concerned hy reason of their political re
lation to the territory In which the canal
was to be constructed, was different from
that ot all other countries. He does not
believe, therefore, that tbo British gov
ernment Intended to "propose arbitration
of this qiioHtion.
In vecard to a. second British objection,
that tlio Panama canal act might bo
thought to confer upon the president the
power lo discriminate In the use of tho
canal In favor of all ships belonging to
the United States and Its eltlsscps, even
In the foreign trade, by granting them
reduced tolls, the note (juotes from the
memorandum attached to the canal act
by the president, when it was signed,
"It la not. therefore, necessary to dis
cuss tile policy of such discrimination
until the question may arise in tho ex
ercise of the presidents discretion."
As no uiL'5tion yet has arisen on this
point, whii-h In the word? of the exist
ing arbitration treaty. "It may not have
been possible to settle by diplomacy," the
note holds that tho suggestion of arbi
tration Is premature. Before passing
from thai stage of the aucstlon, Secre
tary Kno.v emphatically disclaims enter
taining any doubt as to the right to ex
empt. American warships and other gov
ernment vessels from tolls. a they are
a part of the Kovcrnment's protective
system, and it is not understood that
Groat Britain challenges the right of the
UnitKl States to protect tho canal, or to
require an explanation of what relation
the movement of a particular vessel
through the canal has to its protection.
Recalls Greys Admission.
Thus clearing away ull non-relevant
objections, the note proceeds to dlscuts
the liritish assertion thai the exemption
of United States coastwise vessels from
tolls is a discrimination against British
vesHftls. Mr. TCnox recalls Sir Edward
Grey'a admission of the right of the
United States to grant subsidies to Us
shipping generally or any particular
branches, and although It Is a "form
of subsidy"' to exempt the coantwisc ship
ping from tolls, he regards It as objec
tionable, as throwing an unfair share
of the burden of upkeep in tho canal on
Tho secretary points out that Groat
Britain does :iot i'laim the right to par
ticipate In American coastwise Irndc. but
objecto to the exemption of that trade
from tolls because they may adversely ef
fect British rights to ccpial treatment in
tho paynmnt of tolls or to just and equit
able tolls. Ho also recall" the British
objection that coastwise trade cannot be
circumscribed so completely that tone
fits ronferred upon ll will not aTfocl ves
sels engaged ln the foregln trade. Thus
cargo Intended for an American port be
yond the canal and shipped on board a
foreign ship rould be sent to Its destina
tion more cheaply through tho operation
of the propobed exemption by being land
ed at a United States port beforo reaching
t'le canal and then sent on an coaslwisc
trade, to the detriment of foreign ships
hi direct trade.
Admission of Right.
Taking this statement In connection
with ono by IWr, Inucs on the same point,
to tho effect that .perhaps no object could
be taken to tho exemption If limited to
bona fide coaslwise traffic. Secretary
Knox declares this to be admission of ihr
American right to exempt Its vessols In
the coastwise trade from tolls.
"As to this." say) the socrctary, "It
Is Qufiiclent lo say that obviously tho
United Slates is not lo bo denied tin;
power to remit tolls to Its own coustwlse
trade because of a suspicion of possibil
ity that the regulations yet to be framed'
may not restrict lids exemption to bona'
fid" tioastwlse traffic."
Tho answer to this objection, therefore,
apart from any quostlon of treaty Inter
pretation, Ik tbat It rosts on conjecture
as to what may happen, rather than upon
facts, and does not present a question for
submission lo arbitration, as It has not
as yet patsed beyond the stago where it
can properly bo dealt v,ith by diplomatic
"It will be remembered that only ques
tions which it may not be pooslblo to
settle by diplomacy are required by our
arbitration treaties to be referred to ar
bitration," Mr. Knox- continued.
Tho secretary OHeirilssnB anothnr Brit
ish contention that there it noth
ing In the United States law to pre
vent any American vessel from combin
ing foreign commerce with coastwise
trade to the detriment of fore-lsn ship
ping, which he declares depends upon fu
ror condition end fac9 rvo-t yst
tained. arbitration of which would be pre
mature. Tolling up Sir Edward Grey's objection
that tho canal act would emible tolls to
be fixed which would not ..be just and
equitable, the secretary, again calling
attontlon lo tho fact that this statement
was made without knowledge of the pres
ident's toll proclamation, remarks that
this again is based upon a more contin
gency, that there Is no claim that tho
tolls, aa now actually fixed, are not "Just
and equitable." Without admitting that
the burden of proof rests upon the TTnlted
Statee to show that all traffic has not
been roclconod -with In fixing upon the
tolls, and that consequently they arc
equitablo, Seorotary Knox welcomes the
opportunity of Informing tho British gov
ernment that such Is tho case and lhat
ln adopting the rate of ?J.2o per ton, Prof.
Emory Johnson included American coasl
wlsn shipping in his calculations, quoting
from his report, in which it Is shown lhat.
Prof. Johnson calculated the tonnage
passing through the canal In 10 15, us
composed of American coastwise ship
ping. 1,000,000 toiiu, American foreign
shipping. 170,000 tons and foreign ship
ping, 3,730,000 tons. It was on this esti
mate that the prenldent fixed tho tolls.
Tolls JNot Excessive.
"If, as a mattor of fact, Secretary
Knox declares, the tolls now fixed (of
which Sir Edward Grey sooing unaware)
do not exceed this requirement (Interest
on. thn capital expended and the cost of
operating and maintaining the canal) and
aa heretofore pointed out. there Is no
claim that they do, It Is not apparent un
der Eir Edward Grey's contention how
Great Britain could be rocelvlng unjust
and Inequitable treatment If the United
States favors Its coastwise vescela by not
collecting their-share of the tolls nec
essary to meet the requirement. Thero
Is a very clear distinction between an
admission to 'take Into account' the
coastwise tolls In order to dctormino a
Just and equitable rate, which is as far
as thla objection goes, and the remission
of such tolls, or their collection coupled
with their re-navment In the form of r.
subsid. The exemption of the coast
wise trade from tolls, or the refunding
trade merely Is a subsidy granted by the
United States to that trade and the loss
resulting from not collecting, or from
refunding those tolls will fall solely upon
the United States. Jn tho same wav Ihe
loss will fall on the United States If the
lolls fixed bv the president's proclamation
of all vessels represent loss than the
fair value of the service rendered, which
must necessarily be the case for many
venrs. and the United States will, there
fore, be In the position of subsidizing or
aiding not merelv iU own coastwise ves
sels, but foreign vessels as well."
Congress Has Power.
Summarising the British objections and
commenting upon them. Secretary Knox
does not deny that congress has the
power, through the president, to violate
the terms of the Hny-Pauncofoto treaty In
its aspect afc a rule of municipal law.
That, he says, only would become a just
ground for complaint in the event that
the power war: used against Drltlsh ship
ping. It is the improper exercise of this
power and not its possession, which alone
can sivo rise to an International cause
of action, remarks the secretary.
Only when complaint is made hy Great
Britain that British vessels actually have
been subjected to unequal treatment or
Inequitable tolls, Secretary Knox asserts,
can the question bo raised whether the
United States Is bound by the Hay
Pa uncefote treaty to colloct tolls from
American vessels and whether British
vessels are enllllnd tn equal treatment.
"Until these objections rpst upon some
thing more substantial than mere, possi
bility," he say.1', "it is not believed that
they should be submitted to arbitration.
The existence of an arbitration treaty
does not create a rlsht of action; It
merely provides n means of settlement to
be resorted to only when other resources
of diplomacy havo failed." Therefore, the
secretary holds that it is nol necessary
lo discuss quostions of facts which havo
not yet arisen.
The American note concludes as fol
lows: "It Is recognised by tills government
that tho situation developed by the pres
ent discussion may requlro nn examina
tion by Great Britain into the facts
above set forth as to tho basis upon
which the. toIl3 fixed by the president's
proclamation have been computed, and
alflo Into Ihe regulations and restric
tions circumscribing tho coastwise trade
of the United State aa well as into other
facts bearing upon tho situation, with
the view of determining whothor or not,
as a matter of fact under present condi
tions there Is any jjiound for claiming
that the act and proclamation actually
subject British vessels to inequality of
treatment or to unjust and Inequitable
"If It should be found as a result of
such an essilnaUon on the part of
Great Britain that a. difference of opin
ion exists between tho two governments
on any of the important questions of
faet involved ln this discussion, thon a
situation will have arisen whlcli, in the
oclulon of thii eovernrnen, could "Wflh
advantage be dealt with by referring the
controversy to a commission of lnqulrv
for examination and report In the mar
nor provided for in the ratification treat'
of August S. 1S1J. between th Unltcn
States and Great Britain.
Would Ratify Treaty.
"The necessity for inquiring into que
tions of fact ln their relation to con
troversles under diplomatic dlsfiiGcioj
was contemplated by both parties in
negotiating that, treaty, which provides
for the institution, as occasion arise?
of a joint hizh commission of Jnqulr, to
which upon "the request of cither parf
might be referred for impartial and con
scientious Investigation any controversy
between them, the commission being an
thorlncd upon such reference to examine
Into and report upon matters referred to
it, for the purpose of faciJUa.lins tlm
solution of disputes by elucidating llw
Tacts and to define the issues presented
by such questions, and also to Include in
Its report such recommendations and
I conclusions as may be appropriate.
"This proposal might be carried out
should occasion arno for adopting it
cither under a special agroumenl or un
der the unratified arbitration Ifeau
above mentioned. If Great Britain Is pre
pared to join in ratifying that treats
which the United States is prepared t
STAMPS STOLEN 10 . I
RESDLD HT PISCOIff I
(Continued from Page One.)
million cards for a constituent of tin
congressman. Inquiry by inspectors do
veloped ihe fact lliat the cards were I be
property of a stnmp broker, whoso bus!
ncsa is declared by tbo department otn
ciuis (o be clearly illegitimate.
Arrests in New York.
JS'HW YOltlv. -Ian. 23. Detectives ar-
rested Richard Fredericks, a stamp jH
dealer, and Jrvinp: Sovcl. keeper of a
new stand, today on charges of ha-s ap IH
received stolen stamps. Other arrests jH
are expecfed. jH
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