Newspaper Page Text
THE SUN, THURSDAY, AUGUST 13, 1914.
DUTY TO PUBLIC
WAS HIS GUIDE,
Banker Declines His Step In
volved n Financial
l MiWJVj 1 UliljLL.t.usinH.,,,. If anybody o
ii-. i. a -n mi.i .. n-it
imics to run e nun i x mi
Street Man Deserves
Vvasiuj.oto.v, Aug. 12. Paul M. War-
burn's testimony before the Senate Com- ,
tnlttce on Hanking and Currency when
his nomination to tho Federal Ilcaervc
Jlcrnrd was pending was made public to- ,
Warburg gave nn Interesting ac
of the competition for business
between the big banking bouses of the!
country, punctured ecvernl theories of the
1'uJo money trust committee and dis
comfited Senator Joseph I. llrlstow, who
nought to build up opposition to his con
Jlrinntlon. Mi Warburg modestly acknowledged
lh.it ono of his desires In accepting the
IVIcral Itesorvo Hoard appointment was
lo domonstrate that "a Wall Street msn"
really Is drserlng of the country's con-Hd-rice
"Tho only compensation I can (ret from
this In the miect!3 that I can make out
f It," said Mr. Warburg.
The lliitil.rr'n Jincrlflre.
Mr Warburg said In beginning his
lemmonv that he bad made arrange-
infills lo sever all bis banking connec- j
11?:: rll..''1: ',aniLM,K'li.uami.t?'ing.' I ! not thieve' people have had
retire from the Ktiropran Hrm with which
he had been connected for twenty ears.
"If you were going to sever your bunk
ing connections and break them all off
it mtn-t he a trcuv ndous financial sac
rifice." suggested Senator Heed.
"A sacritlci-. vcV' pved Mr. War
burg "I think It w.ll be a bigger sac
rifice than sny of thf.se gentleman
nround the table has any Idra of."
KenHlor Ited Well, may 1 ask what
your motive Is. or your reason for mak
ing that sarrlllcr""
Mr. Warburg My motive Is that I
hnve. as you know, taken a keen Inter
est In this monetary icform Knee I have I
been in this countrj I havn had th """'' ,...,
meres, which com-s to few people of Judgment by dm on the bus nes, trans
rinrtlnir an Idea ami Rtartlne It so that "",,lon" of K,,h"- 1 0li' ' " Hp Bn
... ?. ,1. HV n ?i , ,, lrt '"''''l ''I" determination to follow this
the hO f 'Ountr- has liken it tip and It r( h( 1rt.,r,nt)K. of ,h(1 ncarlnR nrl(1
never expected that I would ue asked
to take nn acrive pirt In the manags-
tnent of this svetem because I thought
there would be ho much prejudice that
they would never rnnsldT me, even
though I should be willing to do It. When
Vifsldent Wilson alid me whether I
would tike this appointment and put It
up to me In a very W nd way because he
thought I was tb man for It 1 felt that
J had no right to decline and 1 will be
glad to make the sacrifice because. I
thlnl- there Is a wonderful opportunity
for bringing a great piece of construc
tive work Into successful operation and
tt appeals to mo to do that. A great
minv neotile hae c died me Quixotic
for wanting to do that; and I am frank
io say that In these last few weeks I j
have Hlmost liecuil to tn.lIK l wan jui-i-otlc
In wantlne to do It beraife t did
jiot think people took I In the spirit
In which I olferod to do It.
Mr. Wnrlinm'" Tortnne.
Senator Hltcheork V nu nave
enough to llvo on. Mr. W.nburg, during
the next few years?
Mr. Warburg Yes.
Senator H-cd Ami vou Intend to go on
there, If you are confirmed, to represent
Mr. Warburg To represent the coun
try and the future of tho country, and If
J did not haw that Idea I would be a
fool to make this secrltlce to go there.
The only compensation I can get fiom
this Is tho succens that I call make out of
it and the gratitude that I can earn
from my fellow citizens; that 1b all I
Senator I'om.'renn wanted to know
srhat prejudlcs Mr Warburg had In mind
When he ssld that be never had thought
that he would b considered for the re
"The prejudice which Is rampant In
the country that a Wall Street man Is a
Wall Street man always," replied Mr.
Hvarburg. "and that you have to bo afraid
nf Mm; that a Wall Street man would
iave money trust Ideas, or other Ideas
which are not quite consistent with the
Wh ethics of other people. Oenerally
ipeaklng. the country Is prejudiced
tigalnst Wall Stnt and I do not know
whether my record has shown that I de
rerve the confidence or not hut anyhow
It Is one of the things that tempt me
to show that a Wall Stret man does de
iterve the, country's confidence In carry
ing on this thing."
Cltlrenhl mid Only.
little later Mr. Warburg, referring
to hh declaration In l!fS of his Intention
to become an American citizen, said:
- "I may Add that a thing which had a
reat deal of Influence on my making up
my mind to remain In this country and
work here and become a part and parcel
of the country was this monetary reform
work, because I felt that I had a distinct
duty to perforn here, and I thought I
could do thut and In fact I hive been
working on It slni-e lt'Ofi or 1007 "
Senator llrlstow W.n-n you became nn
Amertca.i citizen tho motive which In
duced w.tH then, as I understand It, largely
with a view of laboring to bring about a
jefonu of the American monetary system.
Mr. Warburg- Well, yon put It nearly
exclusively on that ; I tblnk a man wants
to feel he Is gieng lo do sonif usful work
in his eoumiy; that he hat a mission to
perform and that Is what happened to me.
Senator HilHlow In bW futile effort to
build up nppiHtlon to Mr. W,irhurg re
lied confidently on the finding of the
so-callM Tujo morey trust committee.
Jle road liege, portions tho l'ujo ic
jiort Into the ,iroreedlm;. and about tho
only nsult was to elicit fron. Mr. War
burg some IntercMlng rommt'tit on the
relations of big banking hous-w In New
York and eleewheie to one another.
Mr. Hrlstow pointed out thai the Pujo i
committee found that n nmn) trust I
xlstM which was composed of ,1. I Mor-1
itan A: Co , the I'lrsl National Hank of'
Js'ew YorH, the Narnnal c'ty li.ink. I.e.
Jllgglnson & Co. Klddei, I'eahoily K Co
nd Kuhn, Iieb .V: Co., and that thec
Arms snd'comp-uiioK w'ork...l together in
pacing securities and dlWdcd the pi.nts.
"The Impression which you have an-
parentlv got from that report Is pnt It was said last night at the home
trilto correct," said Mr. Warburg "The f tho girl that sho la still too 111 to
Impression has generally gone out that be confronted by tho negro for the pur
these firms work together, that one of pn of fornnillv Identifying him It Is
them was alw.iyn seeing that the othor i bulloviil hhe win be able to slawl the
nade a profit,
As a niHtu o' fan there is rnmn.
tttlon and Kuhn, 1iob Co havo no in.
trt In teidng that J. P. Morgan & Co.,
"Thero Is of course a certain etiquette
among ourselves, ns thcro would b; unions
other Kcntlcmcn, but tliat Is not more In
thlH country thnn It Is nnywhern elec,
"Thero are naturally only a few firms
ahle to handle iirojio.iltlons of the tre
mendous size which our corporations now
require and of course If jou talio every
firm In the country that Is able to do
such a buslncn and then put them to
nether and call them a money trust it
would bo my enough to make one up.
"The amusing part of It Is that Just
at the very time of the 1'uJo Investigation
I there occurred the Incident of the Haldwin ,
, locomotlve transaction, where wc tried to
I buy somo bonds and where, by what we
I would not call very correct dealing od
'the part of that locomotlvu concern, tlnally
J the Morgans bought them.
"t am not complaining and 1 am not
I discussing the transaction! but It showed
clearly In the rouit that there Is compe-
thal tries to do
comes to Us who
lias gone to Morgan'H or who h.is gone to
rl'tv er ui 10 itiairn ami we Know inai
ho has had no relation with them wo
would d, as we did m th- ii.iid-.vin ioco-
I moth c case. We negotiated with them
land at the tame time they were negotiat
nig with tin; .Morgans and the Morgans
niitn't l.tl.c lir Cnnillllim.
Mr. Warburg added that while be was
,,.., rnmm. i, nn, , HVmn.,uv
Wlth the banking conditions that existed
at tho time the Investigation was made,
These conditions have Already been cor-
""' ' tc witnorawal or tne repre-
Mcntntlvcs of several of the banking tlrms
from the directorates of other hanks.
"In celf-protectlini," continued Mr,
Warburg, "the bunks had to do this; on i
account of the lack of cooperation In our
system they hud to ilnd somo cooperation
by which they could protect themselves
In casrs of emergency and also exchange
views about the commercial credit situa
tion. It was not a good plan; I did
not approve of It, and part of the things
that 1 have always worked for Is for
somo kind of a Kcdcrnl rcscrvo system
or a erutrnl reserve system by which this
protection will come."
Mr. Warburg said his bank stock In
vestments hail not turned out Hell; that
he would lofe a great deal of money on
them by being obliged to sell them at this
"As far as Mr. Fchlff Is concerned,"
added Mr. Warburg, "If you will make
n bid for his bank stocks you can have
"Is that because be feels they are not
valuable to blm when be cannot be. n
director? asked Senator llrlstow.
"No, tho Invvstiient proved disappoint
with their bank stock
riilrnco and Alton,
Senator Hrla'ow rend Into the record
the Interstate Commerce CVmmlslon's re
port on the well known Chicago and Al
ton transaction, which held that the bank
ers who managed t.in corporation "appear
to hnve been rlchlv rewarded."
I want to know," said Senator Hrlstow
nfter reviewing the details uf the Chicago
and Alton syndicate, "If you think tha..
Is legitimate business financing?"
Mr. Warburg declined to bo drawn Into
' "cl "
pressed him for an
opinion as to whe'her lie thought It was
legitimate business lor Kuhn, Ioeb & (V.
to charge high rates to railroad companies
for handling their business when members
of Kuhn. oeb fc Co. were serving ns di
rt '"ors ori the railroads.
"I told on In th.' becinnlng," said Mr.
Warburg, "that 1 would no: dlsruis the
affairs of oui firm."
"Io you upproe or Justify such methods
as uru tk'icrllx'd n the paragraphs read
from the report of Commissioner Kane?"
asked Senator Nelson.
"If I said 'Vcs' 1 would get In'o a very
long discussion ; and if I Mild 'No' I would
be criticising my own partners,'' was Mr,
contended that the Chi
cago nnd Alton transaction was closed be
fore he bcc-inm a memter of the firm of
Kuhn. Loch & Co. He dented that he
vim the ncent of the Hothsehllds in tho
Auent. of the IlotliNclillil.
The ltotbsrhllds' agents In the fnlted
States nre August llelmont & Co.," wild
he- "The ltothschllds are wry conserv
ative people and stick to their agents
Senator llrlstow wanted to know If Mr.
Warburg us a citizen approved the meth.
ods cmp!ood by the late K. II. llarrlmin
In acquiring other ratlroids through the
Union I'ac'fi. Again Mr. warnurg ne
rllned to pass Judgment on the nets of
hi- firm or the nets of other persons.
Senator Nelson wanted to know
whether Mr Warburg as a member of
the reserve board would tolerate and ap
prove of any bank which was a member
of the l'edfral reserve system engaging In
any such financial transaction as the
Chicago and Alton.
Mr. Warburg replied that no bank of
the system could participate In such a
transaction or have anything to do with
financing a railroad.
"How do you think we can find out
your opinion about the shady transac
tions In Wall Street If you decline to
answer questions?" asked Senator llrls
tow "Well." said Mr. Warburg. "I em will
Ing to trust th Judgment of the com
mittee. I hopo that the majority will
understand that my nttltudo of not want
ing to criticise other people's buslniss
was a proper one; nnd I nm willing to
take my chances on that "
"Oh. jcs." raid Senator llrlstow,, "you
do not want to express any criticism of
anything that has been dont. You do
riot even want to give your views as to
whether you think It was a proper busi
ness transaction or not."
"I have given my views In general,"
said Mr. Warburg, "and I think they nre
clear to everybody vise; but you want
me to criticise ofrtaln definite things
and I will not do that "
EXTENDS WIRELESS SERVICE.
l 1. Mutton Novt llnndlrs Central
Colon, Aug. 11. The Central American
wlrebiw service heretofore handled hy
the United Krult Company's steamships
Is now bHng handll by the United Ptntes
novnrnment'H wireless station. The fruit
company's ships fly ihe Rrltlsh flag, and
since they operate from American ports
are not allowed to use their wireless,
The Government station Is not accepting
code nnd cipher messages or the offtchl
dpatches of the nations now at war.
RIFLE IS FOUND IN SCHOOL.
level! to He Property of Jnnltor
Accused of Attacking: tilrl.
Detoctlveti found a rifle yesterday on
, tho second Moor of Public School 7, In
which thirteen -vear-nld Catherine Larkln
'of &7I1 Itrondwny was attacked, hound
1 and thrown tt'to n drain p!pi trap'vault
I "rl;' W, W",1'1'' th" ""fro Janitor
! h -r,de!ii;ra;;r.,'knofad,go,TPl?
thu negro Janitor of
rllle. (ilthoiigh ho ndmltled he owned two
boxes of cartridge found In the baaement
uf Ihn Ht'hnnl Mnndv.
ordeal on Sa'urdiiy or Sunday
Webb will be arraigned in the Mor
rlsnnla police court lo.ilay He Is now
locked up In default of ; 10,000 balL
LIEUT. MARCELLUS THOMPSON
Ceremony Tnhea Tlnee I'mler
Perprola it Home of Bride's
Amt'KV Vmk, N. J.. Aug. i: Miss
Dorothy Harvey, daughter of Col. ami,
Mrs. C.eorgo II. Harvey, was married at
the Harvey summer home, Jorjalma,
Deal Uracil, at C o'clock this nfturnoou to
Lieut. Marcollus H. Thompson, U. H. A.,
son of Col. and Mrs. John T. Thompson
of Washington. D, C. The ceremony wns
performed under a groit flornl bell in the
pergola In tho garden by tho Hev. I'hlllp
Swezey, assisted by tho Hev. Herbert 1
cyiipmaii or ine . nurcn m ine. Jicaven.y
e, -ew "r. ..luro inun i rem- ,
live and friends. Including many army ,
otllecm mid C.oveniment oniclals. were
i. . . i . ii, . .. I
i lie iii un. niih iirmniim wilii iKuri '
being pink and lavender The porgoU '
was Ivuike, with flowers and fortiH.
i- i T ,,r i ii . i.. .
Blca Alward. Miss llle Johiinon. Miss
Ceclla Hrewstor and Miss Genevieve
( hamp I lark. Thos; wore lavender chlf-
m iwui nnU51,iaiu,
rtn.S.I lTh Vi" I- n.r nrr,1
vr .h lllL. ?J .?in .i,.,.Kf I
over th K"wna Vkvns Htnail clustfrw or 1
i,(imi,a- Ji.t Tiw -..i i
la'nner nww itfa. Tliy carried arm
lrot i ,r! 1 u ,m f hn '
Margaret Lucu wuh titw mala of honor.
.Sho woro lavender chltton taffeta and a ,
Ji. . . . .,
trimmed Xu dd h .l f 1
rLli tnl in oivSLTf IS e Z I
orange bwnLs. Sl7j
orange u,oa.sonia. hiic cirrieu a nouqiirtt ,
I.... ... .... ..i.... l .. .1 nt. ..... i
or lilies of the valley. The bride was
given away by her father, who woro his
uniform its 11 Colonel on the staff of the
tJovernor of N'civ Jersey Lieut. V. C
Harrington of the Knglnoer Corps was
tho Ujt man and tho ushera were Cipt.
J. .1. Walsh. Lieut. I'blllp Matthew.
Lieut. Robert Gooliich and Knslgn Law-
reno Townsend, Jr.
A reception was Held on the lawn. The i
bride cut tho wedding cake with the
in lues room mora. Many costly pres
ents were received. Mr. and Mrs. Thomp
son left on an evening train for an ax
tended honeymoon trip.
Miss E. Augusta Wight was married
to Walter licvereux I'lnkus, a son of J
Frederick H Tlnkus. yuslerday nfternoon
at the home of her undo and aunt, Mr.
um .iiiti, . iiii.iiu .. rnayi;ir-Kt i'ar:
avenue, with whom sho has mails her
Imini, frxr , n .
.. ....... .... , ((, w,, UWkUM,,. V, C VJIUIlll, I.IIIUU .., ..,. m.u .......
the very recent death of tho bridegroom's Henry' Rauderman of Newark attended
mother none but relatives were present tho pair. The bride's gown w:u whlto
to witness the marrlago ceremony, which crepe meteor fcrlmmud with Venetian mce.
was performed by tho Rev. Wilbur Cbji. 1 Kho woro a bridal veil and carried a. bou
welT, assistant rector of SL Thomas's 1 quet of whlta roses. Her ornament, was
Church. Tho ceremony took place under, a diamond sunburst, the gift of the
a bower of palm and whlto hydrangeas ' bridegroom.
D. S. MINISTER MORRIS
DEPARTS FOR SWEDEN
Stjnulnrd Oil to Sonrt Yacht for
Miss Knthryn Hnnison, Onco
Ira Nelson Morris of Chicago, recently
appointed American Minister to Sweden,
nnd Mrs. Morris and their children sailed
lant night on tho steamship llergensfjord
office, which are now In the hands of
Charge d'Affalrs on account of the war.
Princess Rraganca d'Avellar of Portu
gal, who ba been nt the Illltmore for
several dayo waiting to take the first
Kteamer to Gibraltar, ha become alarmed
over being marooned here for an Indefi
nite length of time The PrlnCARS hart
booked passage on the Haxonla bwt Sat-'
urday, but the departure of the steam
tOilp was postponod She came to this
country a month ago with her mother.
Mrs Hnne Van Krehhll, with whom she
i returned to her former homo In Okla-
homii. It was whllo sho was on her way
j Iwick to New York that tli war broke out.
I Prlnco d'Avellar li In Portugal,
Miss Kathrvn I. Harrison of 13M Dean,
or tno -Norwvgian-Amorlcan Line rrom ownM occuploa an unusually Important , " L,'1 ,
the Rush Terminal Rrooklyn. or Rergen, I dlplomatlo post at the present time I ,!Xr"h el to Lane wore merely
Norway. Mr. Morrla Is en routo to Wl. ftat beny Ute cj- ,n 'hi. dissenting opinion Judge Hanborn
Stookholm to take up the dutlm of his ". .. .r". i. holds that the Issue In the case was not
street. Rrooklyn, once private socrctary , The special train reached Uncnlngton
to the Into Henry H. Rogera of the Stand-1 at 5 of The Pr'sldont rode In an
nrd Oil Company, Is stranded In Paris automobile to tlm Whlto House lm
and will be brought to this country on mediately,
one of tho "cruising yachts" of that com- bhortly after dinner the President went
pany In case sho Is unable to get passage t"T a long automohlle riilo through Rock
on a stoamshtp sailing soon. Ooek Park and along tho banks of the
It wa said at the company's offloo I Potomac Ho was accompanied by his
yesterday that a cable me.ssagu had been 'laughters. Miss Margaret Wilson and
forwarded lo Miw Harrison that sho Mrs. Sayro.
would receive every nsils'unro and that
tho company Is icady to send one of Its irdlner u Stnto Committeeman,
yachts after her If necea-ary. The state-1 Minkoi.a, L. I., Aug. 12. The slated
mint wa added that the officials of tho i successor as Stnte committeeman of Henry
company throught a great deal ot Miss j., Krlth. Just appointed Collector of In
Hnr.lson, who went to Parln last May tr rnal Revenue or tho first district of
to study niiislo and art New York, Is Rertram tJardlncr, n lawyer
Word was reeelv.d III Rrooklyn yes-i of Harden Cltv. Ho has heen nromlnnnt
I terday that Suiireino Court Justlco D.ivtd
r. .vianiiuig nun nis wun nnil eon, itoneri i Tliough not In accord with Mr Keith's
Y. Manning, nr at the Hotel Rlti In I methods, Mr, Gardiner went to Washing
IJarls. I ton on a chiractor witness for Mr, Keith.
and the bride passed through nn aisle
formed of clusters of whit flowers at-1
tached to gilded stunchlons lo tho teni-1
porary altar with Iter uncle, who gave ,
her nwav Sho woro h gon of wblto
jfutln drajMvl with chiffon and duchess
poini laco aim ner veil oi laco icu over
a long court train. Her bouquet was of
lilies of the Milieu, white orchids and
natural orange blossoms. i
Miss Helen U.lbork, the maid of honor
nnd only bridal attendant, mire a cos-.
mine of uiilto taffeta and ihllTon
her coiffure ehu wore a wrvnth of rose
le.ivos lasioncu wiui a cluster ot jium
tnlitnon roses, carrying a bouquet of tho
an.e roses. rrederlcK ii. i-inKUs aote-i
nn ii,D urviiict a 111,111, 4 umm lumti-
i-on was served by
rv-ed by Delnionlco .-liter tho nur?,lon of overcapitalization was In Is
Mr. and Mrs. I'lnkus will llvo ,,,, tno ,,rop,rty 0f tho five combining
in this city wlicn they
tcturn from a
Mm M freveji Arnold, a d.tugh
t f ,h , , Thomn., oi.iy Arnold of
Nowport u, j., nnil sHvani.ah. Oa.. was
.,Arrts , ..,,, r,nvun.t vh nf
.. . -,,v vesterdav iiftornnon In tlm
. . ... .. , .
cnaniry oi uraco unurcn in me presence
0f a smAll gathering of relatives nnd In-
friends. The Uev Uenjomln M.
tVohburn, who Is acting for the Itcv. Dr.
fh.rlej. I. Klntlnrv. reefor of Ihn r.hllrrJi.
cnariea i.. manor, rccior oi ino cnurcji,
d , ummer. performed tho mar-
The d c..d -v.. cn.n.rv wlth hor
'''"'''""-In-law. Ulft ItV. KroderlPk Wol-
co Jackson, who gavo her away. There
., . . . , .." . tn.ui.
wore no brtiwil nttenaants. rrnncln I'nulp
hb tft mini. Immediately .iftor th w
. , v-r.-v. u. , i
. . . t. - ttui... w.... .... i...i.
lJ UlU .tiillU .I1UUII lilin .11114 nil llll'ir IV-
lmi ,V(, M li2 py.u
The bride Is well known through
I'Wtrults of prominent Individuals and
l,a!4aed murtl " Europe. .Mr.
... ' , , . .
: Cleveland Coxa. Ho 1b an architect bv
profession and after having been grad
uated from Harvard studied at tho Heaux
Arts, In 1'artn.
Ilopler Hud I ne.
Dover, V. J., Aug. 12. The marriage
of Miss Addle May Itudlne, daushter of
Councilman nnd Mrs Kustaee V. Hud ne.
to Kdgar Lynn Hoplcr, son of Mr. and
Mrs Kdgar D. Ropier of Vbnrton. took
Place at the home of the brides parents,
135 Richards avenue, this afternoon. Th'
Rev. Hoylan lltzgerald of llr.icc Mo'ho
dlst Kplscopal Church performed the cere
Miss Caroline Rohne. daughter of Mr.
and Mrs. I-ouls llohnc of West lloboken,
ana vjnanes ,agei oi .icwai-ii, wero nmr-(
rt.,1 vr.trdnv In the Holv l",imllv Catho-
i i. 1t.l. mil Mr im.t Ml.
WANTS GERARD FOR GOVERNOR.
County Clerk Schneider Mays He'd
County Clerk Wtlllam F. firbnrtder,
head of the orgamltatlon of antl-T.im-many
Democrats known aa the Demo
cratic Association, announced yesterday
a plan to harmonize the warring Demo- another tnny wr0 j cnnstnt communl
cratlc factions of the city and Slate in cation with Gooreo W Terklnii
order to Prevent tho defeat oi any nietn-(
tr of the New lork delegation In Con-'
gress who have oeen supporting Prudent
Wilson. Mr. Schneider be levee that to
preont the low of any - o th-;Deinijlo
CotiKressmen Jamoa Ocrard. AinDa.t-
fndor to aermany. could bo perwiaded to
accept the ""S0'"'
a united Democracy,
Whtlo I realize that Ambassador
lYeeldent Wilson himself In tho Intertot
of harmony," said Mr. Schneider. "Am
bassador Gerard would be aoccptablo to
Tammany HaTl. President Wilson. W. 11.
PRESIDENT AT HOME AGAIN.
He not urns. From Wife's I'nneral
and Token I,oiik Illdc.
WABHWnTON, Aug, 12. President Wll
son and Ills "family returned to-day from
Rome, Oa whern his wlfn wns burled
yesterday. The President had been ac
companied by his three daughters, by his
sons-in-law, Secretary of the Treasury
. McAdoo and Krancls Rowes Sayro;
secretary rumuiiy ana ir. cary t. ciray
eon, his physician
n Democratic politics of Nassau county.
United States Circuit Court
So Decides in a Two to
TRUST MORALLY GOOD,
BUT LEGALLY BAD
Appeal "Will Be Made to Stay
the Order of Dis
solution. St. Paul. Minn., Aug. 12. The In
ternational Harvester Company was de-
.tae.l titf 4hn ttnlffrl Ktnfrs Circuit Court
I to-day to be a monopoly In restraint of
(trade within tho meaning of the Sher
! man anti-trust law. An order of dts
1 solution was Issued nnd unless the case
. Is appealed tho company must within
ninety days submit a (dan for splitting
the combination Into nt least three In
dependent concerns of about equal size
and with no common stock holders.
This was the majority decision as
rendered by Circuit Judge Walter 1 Smith
of Iowa and William C Hook of Kansas.
A dissenting opinion was filed by Circuit
Judge Wnlter A. Sanborn of Minnesota.
In a statement Issued In Chicago this
afternoon Cyrus It. McCormlck, president
of the company, says that an appeal will
be taken to the United States Huprcme
It Is held that the Sherman law was
violated In 1901, when the live original
companies combined nnd eliminated com-
petition among. themselves. The decision
noma inai nue win imcrnnmuini
vester Company and Us selling concern,
the International llaivester Company of
America, control from 80 to 8E tier cent.
of the trade In agricultural Implements
manufactured by them they have treated
smaller competitors rainy.
It Tendeno IllrRnl,
V-h,Oi,Ia. I I- li.tlH li-t 4 V, 1n.
Afney of thp combination to monopolize
organizations being greater than the etock
Issued by tho International Harvester
The opinion of the court Is that the
union of the five companies was Illegal
beemtse ns separate concerns thy could
not make a legal contract as to prices
or as to collateral services. The majority
decision says :
"If tho live companies which formed
the International had been small, and
their combination had been sscntlal to
enable them to compete with lajvc cor
i"i.h.fii.-. m nm nu: umi imn
i uniting would. In the light of reason, not
''M'0 ,"'n ln restraint of trade, but In
the furtherance of It ; but whon they con-
porations In the same line, then their
tltuted the larzeet manufacturers of their
articles in America. lf not In the world,
and held Jointly about 80 to 8B per cent.
of tho tradn, and two, nt least, of the
companies forming the combination were
prosperous, their combining was, when
hlmllArlv v!tvil. nn tmeAfijiniiiihT en.
i - . .u... ...
straltit of trade
I "lf " business of the separate coin-
combining was unsuccessful jt
'" ' fhat their combination was
1 reasonable In view of Ui rule, of reason as
, i.mrlnirti, ,1 hi- ih Simrnm f.,M ,,.ii,i.
, conceded that the McCormlck and th
Peering companies had itabllslnl rea
sonably suoresful and prosperous busi
nesses, so that question Is eliminated.
"Thorn Is no limit under the American
law to which a business may not Inde
pendently grow, and even n combination
of two or more businesses. If it does not
unreasonably restrain trade. Is not llle
g.il. bin Ii Is the combination which
unreasonably restrains trade that Is tile-
gal. and lf the p'artles'ln controversy have
i so or Hi per cent of the American busl-
nes. nnd by the combination of the com.
panles all competition is eliminated be
tween the constltutent parts of the com
bination, then It la restraint of trade
within the meaning of the statutes under
all of the deolttons."
Illnnieri for Tvto Action.
. . .
. 'or.lwo or..lls n.1l?nH th0 company Is
Oinme.1 in tne
opinion of the court,
Criticism Is made of the advertising of
rne products of D. M. Osborne A Co. as
those of an Independent concern for two
years after It had actually been Incor
porated with the International Harvester
Company. The court holds that this -as
done In order to trick purchasers who
wr opposed to buying from the combina
tion. Another point of criticism Is the prooesa
by which the five original companies were
turned over to tho International Harvester
Company through William C. Lane, a New
York lawyer, who appeared as tho pur
chaser of these, properties Traolnr the
j formotlon of tho combination the decision
nam inav representatives ot tho parent
concerns met In New York on July !8.
iwui, ana wnuo rr.ey am not see ono
Tne was that Mr. Lane obtained
from won company a contract to sell Its
,poperty l0 hlm wltn UlB und;tanaln"
, thftt n, ,ntenlHd t0 transf
, On the
, th international Harvester Company
! fopmwl Mr jn, nn. , ;
, tt'of hwpeX'fSr S? p"u '
ohn'", of wh,l "d contracts, P
-,h ..,. ,H, ..
' .' Tr'. ,""
what tho company or Its predecessors did
In 1502, but what ths concern was doing
In 1912 when the complaint was died. Ho
declares that tho evidence convinces him
mat tor at least seven years bcforn the
beginning of the suit the defendants were
neither restraining unreasonably nor
threatening to restrain Interstate or for
Cyrus II, McCormlck Says the Com
pany Will Appeal.
CIHCA30. Aug. 12. Cyrus H McCor
mlek. president of thn International Har
vester Company, said to-day that an ap
peal would be taken from tho decision of
dissolution handed down by the Dlstrlot
"The opinion." he said, "acquits the
company and Its officers and directors of
the charges of overcapitalization and un
fair and oppressive policies and practices.
It does not sustain the charge made In
the petition of tho Government that tho
company had charged excessive or unfair
"The organization of the company Is
condemned by the majority of the court
a a violation of the Sherman act, but the
company Is not found guilty of having
violated the law In the conduct of fts
business or of having Injured Its cus
tomers or Its competitors.
"The conclusion urrlved at seems to
be that tho Harvester Is a good but
Illegal trust. Its business has been con
ducted fairly and the economies secured
by Its organization have Inured to tho
benefit of its customers, the farmers, but
nevertheless the majority of the Judges
hold Its existence Is Illegal,
"Tho decision Is by a divided court and
the case will not be ended until the Su
premo Court has atd tho last word. We
Furniture Sale to
Office furniture of various sorts in
cluding desks, chairs, tables, filing de
vices, etc., at
10 io 50 Per Cent
Below Original Prices
Some of the chairs and desks that have previously
been in a half-price sale arc now still further lowered
10 per cent and more:
Mahogany arm chair now $33 'and $45
Mahogany tabic, 18 x 28 in now $25
Mahogany roll-top desk, 72 In now $70
Mahogany roll-top desk, 66-in now $60
Oak flat-top desk, 42-in now $18
Oak flat-top typewriter desk, 50-in., now $32
Come and See for Yourself
Bureau of Office Fumlture
Seventh Gallery, New Building.
Broadway at Ninth Street
jitlll hope that the great publto benefits
secured by the organization of the com
pany and tho methods adopted In carry
ing on Its business will be made perma
nent by tho Html decision of the court of
lat resort. It may bo that the court will
hold tho view exprwed In the dissenting
opinion of Judge Sanborn."
Dissolution llriivflcliil to ftocldiold
rrm, lint Not lo Farmers.
George W. Perkins, chairman of the
finance committee and a director of the
International Harvester Company, whon
osked yesterday about the effect of
dissolution of tho corporation replied:
"The effect of tho prooscd dissolution
of tho company Into three separato parts
would bo the naine as In tho cases of
thn Standnrd Oil and American Tobacco
companies. It would result In enormous
profits to Inside etockholders and a great
Increase In prices to tho farmers, tho
Mr. Perkins alw lssuel tho following
"I havo not eeen either the majority
or minority decisions In tho Harvester
case, but from what I learn tlm three
Judges who heard the cno have given j
the company n clean bill of health ns to ,
Its buFlnitw conduct; therefore the com
pany has received a moral verdict. Ap
parently two of the Judges say tho com
pany was Illegally organized because of
certain clauses In the Sherman act. The
other Judge dlsagreen with this view.
"Rolled down tho decision teems to j
mean that, broadly speaking, the com- I
pany In right under modern moral", but I
technically wrong under an aroh.ilc law. ,
It 1s gratifying to know that tho com
pany hits succeeded In fully meastir'ng
up to the business requirements nnd moral
standard of tho present time. The qiie
tlon arises, is it going to be Imposslblo
to do this and llvo up to the technical
leiral requirements framed for buwlnoss
twenty-tlvo years ago? Are we nfter sub-;
stance or merely form? The case will ,
be appealed to the Supremo Court." ,
GEORGE J. GOULD DENIES PLOT. ,
Answers Conspiracy Cliarne of
Knthrlnri C'lrmmonst tlonld,
George J. Gould filed a denlat In the
Huprcmo Court yesterday of the chargo
by Mrs. Katlirlno Clemmons Gould that
he has entered Into consplrncy with
nows-rd Gould to defeat her rlshui under
a decree of Reparation b!i got trcm
Howard Gould In 1900. Mrs. Oould'a
charges were made In hor answer to a
suit brought by Ooorgo J. Gould against
her and her husband for tho sale of the
Jl.00fl.000 property at the aoutheaat cor
ner of Fifth avenue and Sevcnty-thtrd
street because Howard Gould failed to
pay Interest of $17 S2 on a tax Hen and
George J. Gould male the payment for
Mr. Gould admits that when his brother
failed to pay tho S17.S2 his Income wn
upward of 1. 000,000, but ho denies that
tho suit Is part of a plot.
WINTER GARDEN Kn:1
MM. To-Dv. Wt.t Orrh SpM M a ml JI W
SHUBERT t"-."' "W ii s l
THE THIRD PARTY rMKMi.?"
tlHTII r. Th'S I'l HliV Mats V i A Sal 1
TOO MANY COOKS
C0!i:i)V Th-trr, 41 it si , ni-sr ll'vny
i.vka, nu:o. IAI.
Tuf S. A Sat 2 Co.
KITTY Mac KAY
iilh QT TinUTHl'.. N'r
& SYLVESTER SCHAFFER
CASINO. 3 P it IVtSeat:Sr Kvs VTO, I&--HV,
inn Tlmo This .Sunday Myht
rant .T.llnlnrjS 11114 African Hunt Vlrt'a,
MANHATTAN Pp. ho.. imi, st, a sin av
,n....r.. . . Mm
ilMlnrrtt Wed. tc S.VI
IWirstl Ml, III. All 1. I SI' XT
PEG O' MY HEART Uam
NFW YHRIf ii'wsy,Mt.i)iy. tav-s p m :.v.
nCIf lUilKuM,' (.Slirhts. 815, 2.V-A MV
WM. J. BURNS -
lireadwny MutllllKT BDKSON'ln
A 47th St. rhefsltof llieNorih'
Noon to IStrAntl Oreli A Sotnt.if,
1 1:30 J M lO-W Nt Wk.' X'nlleyot the Moon"
A I'I.iii.iiiv i:.miii.mmi;,m
I 111: I'AI.MDD Hllllt.K.
ROOf TeMe 50C
&Ually Mat .A.VN'o
A Haldwin Moane A
Marlon Morunn, War
Pictures A IS Others,
n.K.BKITII'S Price A Kln, Jo. Santley.
'fll A C P! Adelaide ft liiislifs, Arijle'ii
M u " - Lions, xx'm. II. Thominon, Ao.
DllI.ICIDU.S U-IMONADH VHKi: TO AM,,
rSTBHNATIONAI. TENNIS MATCH RC
Kmrvt lofttn for tn-day'a ulnelea at
.lncot Ticket Office, Normanillo Hotel,
liroadway aJid SSth HI. I'hona 418J Oreeley
Lining 'em out to-day!
Sale of athletic underwear!
Union suits sleeveless,
knee length of fancy striped
cotton, handkerchief linen,
silk and cotton and a few silk.
869 are $2.00 values.
969 are $3.50 values.
Single garments too in ath
Handkerchief linen, fancy
cotton and cotton mesh.
442 are $1.00 values.
616 are $1.50 values.
The shoe sale started yes
terday with such a hurrah
that to-day the bargains are
mostly narrow widths.
$3.00 to $7.00 formerly.
Rogers Peet Company,
Three Broadway Stores
t at at
Warren St. l'3th St. 34th St.
1hee New lntk I.radlnc ITiralre. Iliie
Nn llfallngi hHIi the ly.nn Cn.
NEW AMSTERDAM Var..
Af".I ,'!i,r..Vr.,''nrnl"ni"e Don't I'll in Xl'lt
.ii.ir i. ii m.sr in: roi t.n s
Hrservr tallies In ndvinrr Tel linnnl JOM
Vint. XCe.t A !ai
A Detective rnml
l.NICKrwjof hi ( 2 16 A H.ts tjtit XTeeA
1 'em Nrt MonitM l inHK TItl'AI I
THIRD! Ml W -. 1 1 . 1 W rju.1
COHAN'S f'y.; !;.
Mlilll A I n.'jn.
a Nf-W TWiv nrno ,sr ATS
i a nc i:
II HI IJ 1 j JJ O OW
S trht See hp- 'nuiar xeiit ri.inos
Olgnj OBBIIIK Ar,mn, janhtun Iile.
Itelirfthlnr Di llsfltful I.v ft XV. 43d tit Dlly A
Hunt 10 u A 3 30: lOmtlrt. Mutlf Urturer Tk.v
roldrrkAllllotai.ATkt Ororrt Tel SMICrsmerey
Bfttl A CniICA nl hl
i m mu fa w w
II A N II
BERT BAKER flii' BON TON GIRLS
' 1 1 -H A"-,t-:sTA,nA;?'T?'-
14th HUMt. ihu tlb Ait.