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VOLI'MK (IX.—XO. 170.
HENRY P. DALTON JAILED FOR TAKING BRIBE
Alameda County Assessor Caught Taking Money From Spring Valley Water Co.
President Finds Decision of Su
preme Court Accords With
I His Opinion
TRUST THAT CONTROLS
PRICES HELD ILLEGAL
"Reasonable" Only Applied to
Trade Restraint That Al=
MESSAGE TO CONGRESS
STATED SAME VIEWS
I [Special Dispatch lo The Call]
WASHINGTON. -May 18.Presi
dent Taft, having: had an op
portunity to make a thorough
study of the opinion of the
c supreme court decision in the Standard
oil case, is in absolute accord with the
interpretation of the law as laid down
by Chief Justice White.
This statement is made on the au
thority of the president.
The decision, it is now realized, de
= fines definitely so that all corporations
< may understand, the distinction be
tween good trusts and bad trusts as
the • difference between combinations
which may operate in incidental re
straint of trade, as do many corpora
tions, and those which have established
a monopoly and control prices.
The supreme court, according- to the
/president's view, has not read the word
••reasonable" Into that part of the Sher
man law which ha* reference to mo
nopolies or trust* which control price.!",
these being held as within the prohibi
tion of the act. .
No Monopoly Reasonable
The word "reasonable" has been ap
plied merely to such restraints of trade
as do not constitute monopolies, sup
press competition or control price.
Now that the opinion of the court
o lias been digested, it is realized that
the status of all corporations has been
, made perfectly clear. Such trusts as
have obtained the power to control
prices are shown to be absolutely for
bidden by the Sherman anti-trust law.
Such combinations as have been
formed for purposes of economy in or
ganization and service and which have
, not reached the proportion of monopo
; lies or *he point where they control
;-or regulate prices to suit themselves. |
■ are outside the meaning of the act.
All monopolies are unreasonable re- |
straints of trade, while other corpora
tions, competing with rival concerns,
may-be within the law, although to
some extent, they may he operating in
restraint of trade. One Is Illegitimate
o and can be prosecuted more easily and
expedltlously as a result of the defi
nite decree of the court; the other
class is legitimate and need not be
paralyzed-by the constant fear of be- i
n ing hauled into court.
Explanation of Message
Not only Is President Taft in thor
ough accord with the law as laid down
by the supreme court, but he now feels
that his own previous utterances, in
cluding his message of January, 1910,
made the same : general argument as
that contained in Chief Justice Whites
Senator La Follette and other pro
gressives who are looking to an
amendment of the statute have quoted
one sentence from President Taft's
message on tfeo ", trusts to show that
he opposed the present construction
of the statute as Indicated by the
court in Its last decision.
The president feels that the Sherman
anti-trust law was meant to, preserve
competition and prevent the control of
prices, and all the supreme court has
done has been to draw the line over
•which corporations shall not "step.
It is made perfectly apparent by the
message of President Taft 'that 1 what
he was warning-, big business Interests
against /was the idea; that they might
combine to suppress competition, con
trol prices and establish a monopoly
bo long- as they acted reasonably, in
the; matter of profit they took from
the business. \ ...
All Monopolies Opposed
He was arguing also against the idea
that it was either proper j or feasible
to introduce Into the statute the word
. "reasonable" for the purpose of "giving
it a construction by which a combi
nation to control prices, .suppress com
petition or establish a monopoly could,
in any. light, be regarded as legal. V
In other words, the president ■ ob
■. jected . to any - distinction beirtg made
L between -■' monopolies,." whether one
r • harged high prices' and : the other low
prices.,- All monopolies, In hit opinion
. were Illegal.
THE San Francisco CALL
Says District Attorney
WILLIAM H. DONAHUE,
District Attorney of Alamrda County
William H. Donahue
own volition sent for a representa
tive of the Spring Valley water
company, and, when an officer of the company called in response to
Dalton s request, Dalton immediately informed him that it was his in
tention to materially raise the assessment of the company for the ensuing
year; and, using this threat as a wedge, Dalton laid the foundation for
his opportunity subsequently to demand a bribe.
When Dalton thought the company had been sufficiently frightened,
he, again sent word that he desired another conference, and upon this
occasion he informed the company's representative that his salary and
fees had been reduced by the legislature from $25,000 to $7,000 per
year, and that his last campaign expenses amounted to $30,000; that he,
Dalton, proposed to "get even," and did not care whether he held the
office another term or not, and, warming up to his subject, he then offered
not to raise the Spring Valley at all, and, in addition, that he Would
reduce the present assessment of the Spring Valley Water company $2,
--500,000, which would mean a reduction in its taxes of some $50,000
per year, and for this betrayal of the tax payers of Alameda county he
demanded a bribe of $25,000.
Last year the Spring Valley water company Was assessed in this
county for about $4,500,000; and Dalton toolf occasion to point out
thai this reduction would not only be a saving to the water empany in
taxes of $50,000 for this year, but that this arrangement would continue
for his full term of four years; and that ihereb ythe water company
would gain $200,000, and, besides, that no increase would be made
over the present assessment. Instead of acceding to Dalton s demands,
the officers of the Spring Valley water company, through its counsel,
immediately laid the entire proposition before me. The enormity of the
offense was such that I felt bound to la\e such steps as Would bring Dal
ton to justice, and, with this end in view, I requested and advised the
officers of the Spring Valley water company and its counsel to proceed
in the matter as suggested by Dalton, so that he might be apprehended
in the act.
"I am glad lo be able lo stale that the officers and counsel of the
Spring Valley Water company co-operated with me to the fullest extent,
and rendered the people such assistance that we are nbiv able to place
before a jury a stale of facts fully corroborated and complete in every
I want to protect the rights of the people and at the same time
to be fair and impartial lo Dalton; for that reason I can not, at this
time, disclose the evidence in my possession. Suffice it to say that every
thing has been done under by direct supervision and that the case of the
people is now ready to be placed before a jury without any delay what
ever upon our part.
Mummies Are a Drug
Onthe London Market
I«O.\ no.V, : May ' 18.—Miiramlrn
apparently are v drug: on (be
mnrkrt, judging; from (ho small
prices offered at ' today* '. Kale, of
the trtßKiirm of the lute l.nrly
Meiix. The 1110 M strenuous work
of the auctioneer brought'a hid
of only 11,000 '■ for the whole
collection of Egyptian . antiqui
ties, though It Included * several
raumnilm and coffin* with date*
rnnsrlDK back to 2AOO B. C. The
reilea were withdrawn and will
be-, auctioned ncparatcl.i. The
Kllaabethan carved ; oak ntalr
c«*r, | said ito .; have hern | trod by
Quern Klixabeth. Jarara I and
< barle* : I. * was ' purchased 'by
Captain Claude LoTithcr. <
TORNADO INJURES THREE
AND DESTROYS HOUSES
South Dakota Town in Path of
SIOUX FALLS. B. IX, May 18.—A tor
nado in the vicinity of Del! Rapids,
S. I).. 16 miles north of here, this even
ing. Injured three persons and de
stroyed at least a dozen buildings,
most of them farm houses.
The tornado started northwest of the
town of Dell Rapids and struck a cor
ner of the town. The names of the in
jured—a woman and two children
could not be learned tonight.
First reports stated that the town
had been destroyed. This resulted
probably from the destruction of tele
graph and telephone lines.
SAN FRANCISCO, FRIDAY, MAY 19, 1911.
/WOULD much prefer to say
nothing until the people's case
is presented to a jury; but, inas
much as this is a matter wherein
the tax payers of Alameda county
"were boldly and basely sold out
and betrayed by a public servant,
Henry P. Dalton, county assessor,
I deem it my duty as district at
torney to mafye a brief statement
to the people of this county. Dal
ton "stood up" the Spring Valley
water company, but instead of
complying with his demands the
company at once reported the mat
ter to me; and, wording under my
direct instructions for over a month
past, we finally have caught Dal
ton with the bribe money, which
he solicited, on his person.
This is not a case of the water
company seeding to bribe Dalton
or even approaching him in the
first instance. On the contrary, in
March of this year, Dalton of his
AND SEES VISTA
Political Chiefs and Mediators
Hurry South From
MEXICO CITY, May IS—lt I« m i
officially Mated that (he retirement of
Dins from the presidency will take
place j May 24 or 25. . * Vice president
Corral's resignation • will be ;, went' by
by cable and will be attested by the
Mexican'mlnlater In Spain.
JUAREZ, Mex., May 18.—Provisional
President Francisco 1. Madero's an
nouncement today that he would leave
for Mexico City within two days to
participate In a reconstruction of the
federal government calculated to tran
qulllze turbulent Mexico, was the sig
nal tonight for a general exodus of po
litical chiefs, gobetweens and others
who feel that the scene of pea
gotlations is about to be shifted to the
Peace agreements, official concessions
Continued oa Pace 3, Column 3
HENRY P. DALTON
Assessor of Alameda county, who has been arrested on the charge of
having solicited and taken a bribe.
YOUNG CIVIL WAR STARTS
OVER A BIT OF DOG MEAT
Buyer Gets Mad, Butcher Follows Suit, Friends
Take Sides and Poor Rover Goes Hungry
DALY CITY. May 18. —Over 10
worth of dog meat there has
here a question of tho rights
American citizen, tho law has been in
voked and a political upheaval precip
itated. Threats and counter threats
Town Trustee P. J. Mullen has a dog
and A. Delia has a butcher shop. .Mul
len bought ]0 cents' worth of meat for
the dog from Delia's butcher shop this
morning, the sale being conducted by
Delia's assistant. With the meat, Mul
len went to a restaurant to have the
dog's dinenr prepared. Delia was eat
ing his breakfast in the restaurant at
the time, and, after Mullen had depos
ited the meat with the cooki he
walked over and "'hefted" it.
"That," said Delia, "is more than
10 cents' -worth of dog meat. I'll take
TRADE AND VOTES FOR WOMEN
HAND IN HAND IN LONDON
Quite the latest suffragette move
ment in London, is the keeping of a
shop) in which commodities are wrapped
in the Fuffrage colors, purple and
yellow, and where the admonition
"Votes for Women" is stamped in
Mrs. Adrian yon Behrc-ns, who re-
cently returned from London, who is
not a suffragette, nor even yet a suf
fragist, but who is a friend of Mr.
and Mrs. Tethick Lawvcn<<\ two trad
ing advocates of "the cause" in Eng
land, told the members of the women's
Suffrage party about it yesterday
In Clement's Inn. London, is one of
these shops, selling tea, with the purple
and gold wrappers; play ing cards.
BALTIMORE SOCIETY BELLE
SUES FOR DIVORCE AT RENO
RENO,- May 18.—Cora Isabel Wescott
has filed a suit for divorce from Cap
tain C. T. Wescott of the United States
marine corps, stationed at Baltimore.
Incompatibility of temperament Is
charged in the complaint.
Mrs. Wescott was a society belle in
the eastern city. Her maiden name
was Abrams. She has been one of the
"I have troubles," said the rook,
"and I'm not proud. Take it if you
■tfant to, but take it fair away from
Mullen heard nf the operations and
danrod a dance of anger before the
"Can't an American eitlieh buy 10
fonts' worth of dogs meat if he
wants to?" ho asked. Delia replied.
Political enemies of Mullen hurled
Ulertselves into the fray, his friends
Stood by him. The constable, and a
deputy Sheriff arrived on tho scene.
Now Mullen vows ho -will charge
Delia with petit larceny in unlawfully
lifting 10 cents' -worth of dog' 6 meat.
Delia says he will do something of
the same kind. War is rife, but the
jpnly losses Buffered so far has been
to the dog who lifted his voice in
lugubrious howl at the dinner which
was not forthcoming.
stamped with gay patterns In the
colors and the words, "Votps for
Women" and dainty boxes of cigarettes
with the same Inscription.
Mrs. Yon Behrens described this
mode of making money and keeping
the idea before the public and it was
decided that the women's suffrage
party here should establish such a
shop—omitting the cigarettes in de
ference to western conservatism—in Its
rooms in the Lick building.
Mrs. Glaser and Miss Shoobert were
appointed a committee to secure con
cessions from some tea company for
handling that ware tnd Mrs. Gerberd
lng and Miss Kate Ames will investi
gate the matter if having playing cards
most popular members of the Reno
Although divorce papers have been
ordered left unsealed by the judges o f
the district court. County Clerk Fogg
refuses to allow the public to see any
papers on file in his office.
Captain and Mrs. Wescott were mar
ried only a few years ago and have no
YES TERD/n^ temperature, 60;
lowest Wednesday nighU 52.
FORECAST FOR TODAY—Fair, nxzrm
er; moderate north nind, changing to west.
■. . j
He Had Asked the Concern to
Pay Him $25,000 or Have
ACCUSED INSISTS MONEY IS HIS OWN
IN FACE OF DAMAGING EVIDENCE
[Special Dispatch to The Call]
OAKLAND, May 18.—Henry P. Dalton, for 16 years assessor
of Alameda county and one of the most prominent politicians
on this side of the bay, was arrested this afternoon just after
he had accepted $5,000 in marked money as a bribe to reduce the
tax assessment of the Spring Valley water company.
The money was found in Dalton's pocket when he was taken
into custody by detectives at Seventh street and Broadway. Dalton
was immediately subjected to a two hour sweating at the hands of
District Attorney William H. Donahue, and is in the county jail
tonight pending a meeting of the grand jury, which has been called
for 9 o'clock this morning to investigate the case.
Dalton's arrest followed a period of negotiation for the bribe that
has been going on since March, when he first approached officers of
the Spring Valley company and solicited the payment of $25,000.
The matter was at once reported to District Attorney Donahue,
under whose direction the Spring Valley officials went ahead with
negotiations with Dalton, pretended to accept his proposition and
finally arranged for a first payment on the amount to be made this
MEETING IN PRIVATE ROOM OF RESTAURANT
S. P. Eastman, vice president and general manager of the Spring
Valley water company, met Dalton, according to prior agreement, at 3 o'clock
this afternoon in a private room in Barnum's restaurant at Seventh and Broad
way and handed him the $5,000 in currency which previously had been marked
by Donahue in the presence of witnesses. As Dalton left the restaurant he
was met by Donahue. Detective St. Clair Hodgkins of the local police
department and John Helms, a private detective, who had been in hiding in
a room across the street from the cafe.
When Donahue told Dalton that he was under arrest and ordered the
detectives to search his pockets immediately, the county official turned as
white as a sheet and almost fainted. Hodgkins reached into the inside pocket
of Dalton's coat and produced the roll of bills that had just been handed to
him by Eastman.
"Henry," demanded Donahue, "what is this money"'
"It's my own money. It's none of your business where I got it,'' re
ASSESSOR DALTON IS "SWEATED"
There was no further conversation between the men until they reached
the district attorney's' office in the courthouse, where for two hours Dalton
was closeted with Donahue, Chief Deputy District Attorney Philip M. Carey
and Assistant District Attorney \V. H. L. Hyne.-,. What took place during
this sweating o fthe captured official was not given out by Donahue, but at
the conclusion of the conference Da-lton was sent to a cell in the county jail.
Later he was in consultation with h\< attorney, Lincoln S. Church.
The case against Dalton is absolutely complete, and the proof of his
guilt has been corroborated step by during all the weeks that he hast
been negotiating with the Spring Valley officials. Kvcry meeting that he has
held with officers of the company has been witnessed by private detectives
employed by Donahue and Warren Olney Jr.. the attorney of the Spring
Valley company, into whose hands the case was put when Dalton made his
original demand for the bribe, every conversation that has been held regard
ing the bride has cither been overheard or promptly reported to the officials
and the assessor's every movement lias been shadowed.
DALTON MADE FIRST OVERTURES
It was' in March that Dalton first suggested the payment of a bribe, in
return for which he promised to reduce the assessment of the Spring Valley
water company in Alameda county by $2,500,000. The proposition emanated
BOOKH r CONTEST
('»• WHATT. GAME^Us WAT
;) Too me SHAKESn'BEER ;
\^ > /
What <s^exr ?la,tr.\c34at boes this"
crime «<^?ReseNT 5
• s*r*l ■•■ • . . ■ ■■ ■•■■. ...... ■
PRICE FIVE CENTS.