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THE SUN, SUNDAY, AUGUST 22, 1915. FINDS FLAWS IN ATTACK ON ROCK ISLAND Defender of Old Control Sh.vs Interstate Commts sfon Lacked Facts. SNAP JUDGMENT CHARGED TO BOARD A stud.nt of railroad problems who was closely connected with the Flock i.i. -a a..ri. .he al'.ed Reld-Moore ei-u " " I i regime has mad some very Interesting comment In the Hall Slr't Journal regsrding the ntta ks made upon Judge Moore and D. O. Held and ether direc tors and official of the various Hork Island companies by the Interstate Commerce ("nmmlssion In Its report Which was lately published. Img as oclatlon with the property has placed thla oritlc of the commission In a posi tion to he fully acquainted with the his- I lory of the Rock Island property. He says that there was no authority for the commission' statement that none of those person who participated directly in the receivership had any flnanclal Interest In the company. The directors and stockholders of the com pany. Including the Holland Interests, had millions of stock. As to the as sertion that there Is no evidence as to what bonds or equipment obligations they held, no one has ever Interrogated them on that subject. To the Interstate Commerce Commit; Ion's allegation that "There are too many passive directors who acquiesce tn what Is being done without knowledge and without Investigation' th reply Is made that there are too many com missioners who Issue such a report as this "without knowledge and without In vestigation." Finds bsek of luformnlloa. Indeed, the critic who has taken up the cudgel for the Rock Island and Its directors finds that the Interstate Com merce Commission showed a surprisingly ! lack of real Information concerning the property, considering that Its Investiga tors spent more than fifteen months go- ' Ing over the books of the company, not to mention the various times when It had officials of the proierty on the stand In Washington Taking up Ihe commission's Introdur tlon to Its report into the financial trans actions, history and operations of the' Chicago. Rock Island and Pacific Rail- ; way Company, the comment Is made that j the commission did not rover the en tire history of the property, but only th period from about 1901 to date, or' the so-ralled Rld-MOOr period. The featuies of the crltlciarn are num- I tiered for ronvenleni f The critic of the c minlaaton says of I the commission's ref. rence to "syndi cate" control : 1. The syndicate I wholly assumed No evidence of a syndicate was , elicited by the commissi. . The four gentlemen referred to i of whom M Leeds has been dead since 190 and J. 1 H. Moore has been out of active af fairs since about the same date) bought as Individuals and held as such !. The report saya: "In 1901 p. ( Held. W H Moore, .1 H. Moore end W; h. Leeds purchaaod about 000,000 of stock o' the company nnd by ! the use of proxies soon became in, m-1 hers of the ts ard of director-. W. R I I.eeos being made president and D. '1 1 jxein cnatrmar r the executive com-I mlttce. This syndicate secured the I lection of other members of the board 1 of directors, n tably K. I.. HI . . 1 ;. MoMuitry and (ieorge T. Hoggs e.i n of whom appear to have acted and voted in accordance with the wishes of the members of the syrdi, ate' The comment on this Is: "Mr. Held was voted in by the director at a meet Ing and n 1 proxies were used to blm. The commissi, r s. s .i'.s later on as also that Mr. Leeds was likewise voted in by the director. Mr. Boggl was never a director until December 1. 1109. and then only for fourteen month. HI testimony so states" 3. "Thus." says the report, "the syndi cate enrolled the hoind through the di rectorships held by themselves and hy those subject to their wishes." Less Than Majority. The commission docs not state how many directors there were. There were thirteen. The two Mooree, Held. .Md. Hlne and McMurtry would have made only six, or less than 11 majority No ate Is spOOlfled '''I fOf a considerable period or lo about the end of 1902 the putative rontriu hy the al'egetl syndi cate wns even less than slx-thirteet the This Is tint to conced the commissi n'l theory that Messrs Hint an I McMUTtr) were wholly Bubaervlenl. 4. Of the commissi in' statemuit that e 10 pet cetet stock dividend was de clared he says: "The commissions powers of discrimination are 100 blunt to distinguish between a In per ,eiii Block dividend aj 1 a 20 per 1 ent. sub ecriptlon right The latter was what actually waa authorised by the meeting j of June 190 1 The new stock was gold at $lii0 a share Theie have bei no stock dividend whatsoever it. th history of the railway company, formed by consolidation In Is mi, except In ! int." 7. To quote the report, "Op June 4. 1$02. the capltii stisk of the railway company w as it creased to ITS, 000,000 and the Isjard authorised Ptesulent l.e.ds to sell to rertain Individual p 1- tinns of this Increased stock at pa eltbough at the time 'be stock was quoted on the market above 17 The OOmmlaalon fails to state 'hat of the Increased stock, cena n share were good to purchased ncu it or ties, and the 12'n pit cent subscription right consumed about s'.'.iTo, shares This subscription right was at par, or 100 a share The prlc, "to certain Individuals" U as the same, II"11 a share To recap tulute. Share. How Used 20, 0(to St. I.ouIm. K C A Colorado R R I3.hl2 Burlington, C H A Northern P. H. 6.02s Ro k I aland & Peorl 1: R ,I5I ISVj par cent ubacrlptlon at par a, 806 Sold to officer at ur. jdo.ooo Total Inoreaee of share . "The BOO Jei hey company .ml the Iowa oom pany eioh ihHue.i tttelr stock B full paid, whereas no pay mailt was hi! on e'lUier," aayc Ih report, Piiyiiieni with Property! The commission convry lb'' unpi'cs- bun that stick can be paid" unleee fcaiel f,,r m cimh livery I I t in 1 1 stis'k nen b .-lth proprt) lUith the nisitieHS man "fully peid" Iowa sim'k ' gnrt the lawfully New Jeraei fun piud" WVM 'i i.n ; i . . Ok i.rop.Mt. th;H m, tl.,- mux of Hi.- alt oparatlna company oonMnlaaii n rapoii ii . "Th in per rent, stock rtlvlrtenel declare! , b the railway company Ml June 5, 1901. had the apparently Intended effect of , creating a demand for th elnek of th 1 hold tig companies, ttM only revenue of which wan fnm dividend on the stork j of the railway company and practically all of the MaekhoMari of the railway company exchanged thoir Block, tht total amount deposited bgtng approxlin.itcly j Tl.oito. OM, or all but atvut M.000,000 . of the railway atork The nw value of j tree holding cmnpantoa' socurllle issued Ifl exrhatwe amounted to atiout $191,- 000,000." There was never any in per rent, stork , d.vdend In llOli If the r.aht to suh-i scrlhe at II m) a share OTMted a di-mnml, II wna for atork of the railway company, j Hearing In mlitd that thla subscription PTlVll expired July 31, 1901. It !a diff'- ; cult to follow the rommlaalon'a argument j that therein was created "u deinmid fof t the stock of the holding companira" whli"h were not launeheel until after Au gust 1, 190'J. Kvery hanker known that the memory of VB street and inveatoni ( Is shorter than this Incidentally, the "sv ndcate" waa not in the twiddle when the stock waa in creased by the stockholder on June 5, 1901 ; W. H. Moore was elected at that meeting, und 1) (i. Held was elected at a directors' meetlm held later In the day. No other member of the syndicate . " .-. . . mieci.i nimwimn won ine ran way company. The holding com pan leg had not been Incorporated nor ewn thought of If the subucrlpt.on privilege 1 hud any ulterior motive it was n further 1 halt put out by the Cabfe-Flower-Flold , party to whet the Intoreat of the Moore . neid-I.rlN party. Reference to atock of the lioldlng com panies when only one comiwtny laauerl 1 stock to the public, namely, the New I Jersey company. Is a Minor Illustration ! of la accurals statements that lnvet the. reKrt. Say i Ion Is ahstrosr. As to the --xrhange of railway st s-k, as quoted above from the report, the casual connection Is Indeed abstruse The essence of the Iowa company bonds whs that further rto-k Imreises by the mthmy were prohibited. Thus any fur their stock subscript. on were barred un til 20(12. How a subscription privilege in 1901) could make holding com panies' stock (In I 01) Inviting when the holding companies' prog-amtue abso lutely harr d further subscription privi leges or stock dividends Is beyond com prehension 10. Again, the report says: "Thus by the organisation of th two holding companies, the syndicate, the members of which held but little more thsn one fourth of th railway stock, secured control of and d'Unlimted th aftUIr of lm" transportation systMii Thus How? The "syndicate " still had a one-fourth position, namely, It held one-ijuarter of the railway com pany Mock The commission falls to see the point. The creation of the hold ing companies did rot bring this quar t r Interest one millimeter nearer to control. If real control hail lieen de aired. the "syndicate" would have hd 1 to buy a majority of the New Jersey preferred, thus electing a majority of the New JefOty company directors ! This feature the really dubious one of 1 these corporate arrangements the com. I mission falls to elucidate. Its "thus " I Is an empty gesture it Of iTesident Mudg s testimony the commission says: "While he re garded the wages of these minor em ployees t clerks, telegraph operators, conductors and brakemen) as having partially sapped the financial strenerth of the railway, he declared that the mlarles paid to the higher officers of the company had no apreclable effect on its expenses." onlrlbullons to Officers. At $1 oon.nno the contributions to officers would be for the thirteen fiscal yean 19o2-14. Inclusive, about one-fifth of 1 per cent, of total oia-ratlng ex penaea, or one-ooveecfa of 1 per cm ,.r total operating revenuea which were respectively: TII,lH,t4l operating r venues, $52S.741.n32 operating ex penses. Wages, on the other hHnd, constitute a huge part of the above aspenae Mr Mudg-'s statement tb.t the sal arPs of offo-ers had no uppri ci.tble ef fect upon operatli g expense Is there fore true Moreover, the commission's $1,000. 00 total will not lie.tr close Inspection. The whol l.oree item Is B patently flg Ured, though $.11.2."u of it was sal.w for ti ti montha, and anv one who knows I Mr, lires will admit that Ins services were worth Something It. As already stated, the stock Increased Julv 1 19n2. 10 175, 01 was 0 or hy an additional authorised amount of 116,000,000. Some l,ttl,000 was sub s' tlbed for by Stockholder st par. Th president was ntrusied with SS0f500 to sell to offlters at par He used the fol lowing stock, par value: $150.0110 to Warren $200.onn Cable. $tr. iinn Paikei, $150,00.1 Mather: total, 1611, thus soli These share were all paid for at th" rate coyer, d by the resolution, in cash, except Warren' who paid for his by re turning h!s low 1 bonds, unserve that the privilege wa given before the hold ing companies were created. The stock holders and these officer could alike pay par for the stock ami sell out in the open market at about $17'i Tills Is not ! an unusual i.ature or suiiscrlptnui privi leges. The value of "r.Klits" depend on this feature. til Were Treated Mike." Conceded: : would have new stock I were crrale y. the railway company lieen thrlfto r to sell all Its it a Hlghei price Hut all I alike ,,nd the treapury rt for Ihe stock, which meets cetvt-d par everv MM o; legality. (tie.. ,.ii men took up their stock after the holding companies had lieen or M ted Their stock thu enjoyed "right'' n the form of MOUritlea, instead of market valu II In figuring the "lo" on Alton, t ie oommlailon Rgure no valu,. whatever to the Clover laf promia to pay. but compute solely the value of the pie ge l Alton share In vdw ,.f th Condition of the Clover Leaf. It can well turn out that these bond will become of real value. In Which case, the loss on Alton wi I he far less than the (,TO,000 com puled in this fashion. IB, The commission's nulve statement that "the railway Company paid a dlgoounl on the sale of lsltlds of 1114,115," which the commission add to make up the "total expenditure ' leserves a searchlight These aie 4 per cent, bonds of an a V rags malurlt) ,,r eight year. Dlaragardlng accrued interval the bond were wild a: Ml, or point! under iar. This amounted to 11114375 !'er cent, pet year, or a Kale of bonds on 11 4 4.175 basis, which was not a prodigal t ansae!'., ,:i n t!i,. bond market prrvall , Ing In IVAg, The railway company never "pui " this dlgoounl of t4,tss, though tin- commission would appear to Intimate I o, Tiie oommiaalon of 1111,000 was paid on the stock purchases, noi on the bond . sale. in it Ih too bad that the comml.ioii does not specify its "abundant roaaona to hellfve" in th worthleaanoo of the I Choctaw, Oklahoma Oulf The road ha bond outstanding of only $1S,00Q a ' mil and dock of I than thai amount If the (took is HOI Worth over go under I these condition thin tht valuation In that territory will certainly show Home Tieer results. 17 Again the report says, "as an 1 Incident to these transaction the rmi 1 way oompan; in one Instinct at least i sold bond of the Hark Island Imcrove- 1 mom Company t leaa than par ami six months iatr bought them hack at I mora than par, notwlihatundlng th general tendency of bond to approve' I'l'i'e l i r , iii.v 1 111 o.ich iii ,lui I . " ohm inotanoa at laoot" thH rommlaalnn tlllltH .It hi nt truis Till Tl' UtHn I, (III.. Its .iw , tMIN ,h w,.aU- rtf...,, ...Z loan wara , iiii'l nmiKi iw otiifiM rni tranaactton wiOlcliw ivurda mid vyijva wUull blameless Tin Issues of equipment note were Bold In (rtoler, 1911, over the counter to hankers on a r per cent, bail with I It per cent. commission, or at 97.94 for one Issue and 97. fix for the other. The hauliers resold them to Inventor, presumably making a mod erate prortt. In the following January the railway had fundi on hind to pay maturities of the next twelve months or no. The fund were earning only 2 per cent, or o, a a depolt. whll" the j lallvvay wa paying f, per cent on the' debenture old io produce the fund i and wa alo paying Interest on the ruulnment note It wa manifestly ad- I ! v antagtou to buy In all the notes readily obtainable, i This was quietly done and about I j Ifinn.iinn were bought bark Bt an aver- age price of less than 102 and Interest. j It waa good business to do It at that price. It would have ben good busl I ne at even a higher price. They were I old lest commission and were bought plus the commission and also plu what I holders thnusht th-v were wmth over and above the commission. The "ten- I denrv of bonds to annroximatc par s t they approach maturity" has nothing whatever to do with the rase. The whole transaction. It may tie added, In volved the repurchase of lno,nno of notes, and the dlfferenre between rost and sale prlre, disregarding accrued In terest In each case, was about I2n."0n. l acs Commission's Flanrea. IX. As to th commission's state ment that commissions aggregated more than $l.t00,ono In connection with Ihe Issuance of bonds with discounts of more than $17,700,000: "Taking the Interstate Commerce Commission's own llgures. th-se $1,600,000 commits, on wen on about MT,00O,OO0 of Incmsed debt, or less than 1 per cent com mis sion. As a fact the ll.itnn.nnn includes tna same money turned over twice or more, in some cases, anil Is an average commission of less than eight-tenths of 1 per cent. Few railroads can show anv cheaper financing. 19. The dla ounta of $17,700,000 are a strongly tmmaterlil figure to drag In. A discount depends on the rate and term of tit security Ry itself it is meaning bes. Th bulk of the Rock Islands tin inclng hi been in 4 per cent, bonds, due In 1934. I n tn June 3n, r.M4. all the railway's fiiiatt Ing Sad leen mad I on letter than a 4 per rent basla. The discounts resulted from selling 4 tier cent, bonds In a 5 per cent, or 8V per cent, market It Is either wilful or Ignorant or both for the commission to epeclfy this $17.70o.ooo discount Item In such contraH as to Imply tluat it wns s Iobs. L'0. "The amount of gun accruing to W. B. leeds I. O. Held. W. H, Moore and J H Moore through their con' rot ami mantpn itun of the rai . way 00m patiy are probably not as,-ertaln.ibl. ." says the report, leds dle.1 In INI. W H and .1 H. Moore were not pieced M the itattd, though w ii Moore waj subpoenaed ami . present at the February hearing Mr Heol was not 'Ititerri'gati'il with to ascertaining hi profit ftotu th v iew I r'.- ous tnneactlnna." but onlv Ins sin k sleek market trinsacllon He testified only that be burned ins brokers talemeota frotn month to month. Ne ex miner or Bltneaa breathed a suspicion that Iteid or either Moore or snylssty else profited by or was concerned In any corprtte transaction. The records show that there wete no syndicate nor participa tion, atid that all sabs of securities were made over the counter to outsiders. Mr. Held was m t asked by Folk or ai ybody i else whether he had made any prortt Denies ait .iiiHi.iii it 1 Deflelt, 21. As to alleged misrepresent .t oni of : asset" in the company's report : tin this nutter let two tilings tie mild. 1, that all these- Items were tn good faith cu rled it par, as permitted and ie. tuire l hy th commission . 2, that "o appreciation of giv-d Item (Chi ago ; Terminal, an 1 was ever made. Restated. . by wlidiig out Items as the commission desires, but by enhancing valu able ItetM shown at 0rlgm.1l cost the bonk would still show a surplus anil not "a deficit 1 of oyer $1 1, 00,000." 22. On the head of receivership It Is merely suggested that the record itself ne read It will not tally with the commission resume. 23 Amsler s leatlmOO) Is accepted at face value But Amster was shrewd enough not to say what the pliant aim. m.sslon quotes him ns saying. He never claimed "Assurance for the fur- ntamng Ol the money," but only thai on brokerage hoUM and one small ' Panging nrm had said they would b. 1 interested to handle li e . to try to sell to Investors) such an Issue of note" as I Ameter described. These parties made no point of rate, term or details of the I collateral (ecutity It wa the leeal Ilk "asurance" of nny poor pour- pa t iers that ever took place In a cus- ; tomors' i isam. 21 The commission complains that "It , : a forceful commentary on the method by Which a great railway may be manipulated Into a receivership When P la noted that the general counsel, after drawing a hill for the receiver- I ship, sold his stock and the local coun . .. who represented the railway com pany in the receivership prtu eedlngs. ..wned 110 stock In the railway com pany." The general counsel sold his stock, ns he testified, at a loss to himself of over $.',,200. S.nce when must a local counsel own stock In a defendant corporation? How many United States bond doe Com missioner Clements or Mr. Folk own" TIME FOR DEPOSIT EXTENDED. Hock Island Ctimitilttee VI-.. Ilffrrs Alliance on I ttrl I (ten ire. The committee of which Sen. ml I'ros er I chairman ha exten-'eil the tlBM for the deposit of the twenty-five year 5 per cent, gold debenture of the Chi cago, Hock Island and Pacific Railway Company with the Hankers Trust Coin- pany of New York, depoaltary, 01 the r lrl Trust and Savings Hank of ( ago, lub-depoeltary, until October negt after which date deposit will accepted only on such term a the 01 mitiee may determine. The committee also announce that it has arrange) for an advance, at any lima prior to October 1ft, to any holder o! a certtflcale sif deposit lesueii under the deposit agreement desiring such an advance, of the amount of intoreat pay able June 15, I'll."., on the debenture represented by hi certificate of depooit 1 This advance will eotiatltUte a loan of 5 per cent, per annum interest to such i certificate holder STORES AID HEALTH WORK. TO RstA M lah h nntorlum fur Trriit iitrtil of T ii In-r-ii I on U. Dltcuitn dvp&rtfntnt BtorM' work tn i t notrvt tht hia It h of th. Ir pploy4 lr Iforrli h. Kahn of Now Yuiu Miya in thr Mt 'titut lit cord ! "Pulmohofy luborculooii oooura ti i iiflloltfitt nuinbor of doportmcnl Htnn rniptoyooji t" tii ntt oonottlorAHotii Ona dapartmatrt tnrf tn Now Yurk pity Vaaltd t vvi'iit v-four ranoa." Ir. Khhn bfli'-vcH tl tt th KtoreM will join oihiT Induatrtaa in an attamnl aoon to t stahiish n apaclal aanltarluni for i Ihoaa amploy cm vh' hnw inctpunt tu I bri mloili Tin- Induatrlal IwOmmc of ; n w Yiiii. Ih planntrt auoh h aanltarlum nnd two ntambara of thr Retail Dry II I Assm hitlon nf New York hgV pledged material mipppri for ih plan, At for luberculoNi breeding tenee i in. i,t. I i' K.ilin lii.nxe thill tnere will prova in i i. m th-ni M- Miyi h! bUKli'i'i'. wil h o .1 MBfel In i he on- vt to rn with tlmt "tlif prinrtpln of without oooipanaationi mMico.. oi tubal ui'uiH paitla t lu iiiunta. iiuidt hf iipphrit to auoh TO LIMIT DEBATE ON NEW CONSTITUTION Leader Wickersham Will Try to Have a Rule Passed County Courts to Go Elective Magis trates for Brooklyn. Albany. Aug 21 There was a dis pute whether President Kllhu Root or LgVrrlfOl Bly Quia- raised the point of order of no quorum at the afternoon session Of the i ': st Hut V ",i 1 Convention to-day. Dagpltl the fart that Mr. Qulgg In sisted that he had not raised the point the conver t ion adjourned until Monday after Root a roll call, ordered by I'realden! showed only a4 of the 1S dele gates present. I'p to the time of adjournment the OOmrenttOfl hAd adopter, the .first twenty one sections of the Judiciary article, leaving but seven sections to be consid ered n M -mlay. Including those provid ing far Children's Courts, exemptions from Jurv duty, the selection of Commis sioner of Juror in ctuntles and recog nising the Torrene system of land titles. Republican leader WIckershHin served retire that he would ask the ODmmlttee OP Rules to bring In a rule limiting debute hereafter In order tlia the convention could complete Its work in time. For Hleellve Mnsrlstrates. Cltv Magistrates may be elcted to Hrooklyn Isirough if the now Constitu tion Is adopted by the people and the l.eglalatute paasa I law to thai effect. aivorxllng to an amendment Inserted to day In the Judicial y article. The amendment waa offered by Aime. R. Latson of UrooMyp a.'i waa adopted by a vote of 3N to 20. with IK del. - f ates absent The Hrooklyn Repubiiixin elegit lc loliu-il the Ul-State Reiutil- ian deleffWtea In hellilng them amend the article so a to keep the Justices of the peace practically as they nie and the up-State delegates reclpTOOOMd by aiding the Rr.sikljn Republican carry their amendment for elective M.iki tratee In avy borough which the legis lature may determine. The Brot klyn M.xtrlstrates are now aiHs.r t.sl by the Mayor. "This shotlld not be done." declared Da Uancey Ntc II m dlacuaalns the Let on amenwment, "Why should there he a diffenst rule Ifl Hrooklyn borough .' ivies Hr.sil(ln want to si cede? Why should they set tRemamvee up auverarvi) The Horcugli of Manhattan would Da Kind to have her go "Uronklvti now I'avs about 2.'. per cent ,,f the taxes of the city, anil tne mi. n 1, or. letl falls upon the itomugh of Mall- t.or len falls upon the hatt an. I had SUPPOOed that ti e BoroUlh lot Brooklyn, wii ioh had ouooeidol In 1 annexing itself to the city of New York and In compelling the oat city to pay the old city 75 per cent of the citv, wa satisfied taxes f the greater with the bargain.' Laughter. lint KM 'a BerOttea tt Flection. "I believe In elections." declared 1-eni-ipl Bly (Julgg "I believe In letting tn people deckle I SO not hel.eve that the government which Is best administered is beet, I bellevo the government the peoph want for themselves I best. Whetntr In Mr Stini--n' Judgment or Mr Ntcoll' Judgment It Is good govern- Inienl or not. 1 thoroughly believe In I the elov t.ve system, in tin- right and province of the people to conduct their own affairs and to vol for their own I offil l.tl " i Mr, Qulgg '.led the Hrooklyn Repiih- ! Mean delegate in their tight for the Btfierjdftlent, This was the only material amendment to the Judiciary article , adopted by th conven'ion against Hi I utsirts of the committie. The up-tUat tlelegates ucoeeded In striking from th, propooad tudlciary at- litle tht provision that the Legislature might determln the quaillloationa of ROADS LOSE FIGHT ON SAMPLE BAGGAGE Commerce Board Holdn Thai Their Regulation! Are I " li rivt son :i til o. WasniMOTOMt Aug :i The manu facturer and commercial travellers won from the railroads In it ruling entered to day by the Interstate Commerce Com mission. Which holds that the present regulation of the railroads defining tempi baggage are unreasonable." The commission dlsnnssed the com plaint so far a it alleged lack of inn- funnily In rub s and regulations. The commission held that the regulation or loads lis to shipping baggage at the own er risk wa void In view of the new Situation created by the CltmmilM amendment, which makes the carrier so sponalbl for the io rag ard leaa of limi tation that may be sought to be im I used by contract. The third complaint of the manufac turer and wholesale men was that the regulation of the railroad M to sam ple baggage are not proper or fa r and In thla complaint they were upheld by the commission The regulation put limitation on the sale of "aamplea," The commission on thla point say 1 "In the light of decisions and consid erations and uiH'ti the record In this rase we And and conclude that def : tl gntO' present regulation defining sam ple baggag a thai carried by oommere rial travellers and not for salt or fr. distribution arc unreasonable and that a re a so able regulation defining sam ple baggage would be as follows: ""Sample baggage consists of bugca-e f..r Ih- c01111ncrc1.il. as distinguished from the personal, use of the passen. nrr. and Is restricted to catalogues, models and sample of gisids. wares or merchandiaa In trunks or other sult eblt container tendered by the paaaen Pr for checking as baggage Io be It.l' s- portad on a paaaenger train for use by blm In making sales or other disposi tion of the goods, wares or merchandise it pr. sentcd inereiiy. i CHARGE DANCER WITH THEFT. I Inltmelllf llurtemler Held mi I t'ogiplglgl Hoe!, Benjamin shniKe of " Waal Is Ih m i. danue i 'ei, trul I'.ilaci Clare Arms, under IHOO of the West Instructor at the tirann ami William Telling of I ha a bat tendi r, war held bail in Magletrate Levy Ida court yeaterday for exan Inallon Monday larceny. Menjamln dealer who lives at Hotel, Broadway on the charge nf l.cMslcr, n cltfiir the Uremic Hull itinl I liKhty-siNth atraoti otalma that 1 1 two man robbad him afttr in- hail bcon thalr hot, According to th potlcai on .inly IB li hh v won! out for a amy avonlnVi during 'ii- rouraa f whlcn plotcad up Bhraaja ami Tolling. Aftar vial ting many cafoa Laaalcr Invltod Ihom t hla roomgi whara in- ordertd a magi aarvad. rmrlng the maal ha f il aataap and whan ii- woka tu uh frlanda wart im Ingi and won' numaroua othav things of vgluOi Including 'ii- watt h dlamoml rlngi hla fountain pan nnd inn ahavlng aet) worth In all ftuOUl lftO TtM DOUCO hgva b't-n liMikniK for tha man h.m' Thay wtn; arraatod yaa tardgvy on rc turoiiuK from AUoiiUu Cltjr. Justice of the peace, but boards of su pervisors are permitted to tlx their com pensation In criminal matters, it being OOrttandori that the present fee system ia open to many abuses. Sections 2" and 21. dealing with the Court of ilenernl Session ami City Court of New York city, were adopted rs dee lied by the Committee on Ju diciary. The Cam at y Cera eta. These sections have been approved by the Association Of the liar of the City of New Y rk a d they HMW the legislature to abotlab the (Niunty Courts In New Yoik city, and extend over the whole city the Jurisdiction of the Court of QoftOral Sessions so fur as regard criminal Jurisdiction, and the Jurisdiction of the City Court so far as regards civil Jurisdiction. It is expected that this would tellere the Supreme Couit of a great number of small cases and make homogeneous courts of , i vl t and criminal Jni mi c tion rOOpOCtlVely, which would better meet the requirements of the business of New York city than the existing separate i ourts. Section 2" provides that after Jan uary 1. 1917, the Jurisdiction of the Court Of ticneral Session is extended throughout the greater city. The County Courts of Kings, QmOIH, Rich mond nnd Hrotig ate abolished, and their Jurisdiction transferre.1 to the Court of ilenernl Sessions, the Judges Of such County Courts becoming Judges of the Court of i lenetal Seaeions, the successors of the Judges so transferred to be elected by the electors of the ouimes tn which they respectively re. side. owing to the rapid growth of impu tation In Rrotix county the legislature Is empowered to provide one additional Judge from that county If It shall deem it proper so to do. Problem of Snlnrlrs. fine of the principal difficulties In nmpllshlng this c..nsolidatlon lb In the difference In the salaries paid to the Judges Those of the Court of Oen - eral Beaalom at pre-em receive aalarlea of $17. M"i. the County Court Judge in Kings, Qlleeni and Brtma each 110,000 and tn Richmond $7." per annum These Judiciary article provide that the present Incumbents shall continue ti rece:v these salaries until the ex- piratmn of their respective terms, but .. . ,v,,. r who anajl be elrc.le.,1 for m.n..li of fourteen viars. bill lie paid a salary to be flxc.i by the 1-a'ffislaturc Afl,.r lnM, 1 ,,17 rh(. jurisdiction I af the City Court of New York Is ex- tnded throughout the greater city, and tlM pecuniary limit for which It may entertain actions for the recover)' of money i Incroaoed to $5. mm. Provision is made for electing add-' tional Judires of the court, two from the county of Kings and one from each of th countlea of the Bronx and Wueens. 1 The l.egisbiMire is empowered to pro. : vide one additional Ju Ige from Kings 1 county should It deem proper so to do. 1 The Judiciary committee did not be- I I lev the amount of civil business In Richmond county required provision to be made lor it Judge of ihe City Court in that county, In the convention to. dav. however, the. committee ,ie ,.ie i upon an emendmontt Which Was adopted by the convention, providing for a City Judge in Richmond, who, until the Legislature shnll other- I wise provide, shall be the Surrogate of Richmond county. T,-cn the legislature is given perm'.s-ion to establish ,t Sui rugate in Richmond at any time. Otherwise these tan section affect! Ing the New York City Court were adopted w.thout substantial change. BURGLAR IS SLAIN ON THE MORGAN ESTATE Body Found in the Rushe nlsi Proven That Notorious Coin id. .it II VfTIN N T., Aug. 21 - The tniiti 1 found In the bushes estate near Woodland I Hudson, lust Sunday whose ldy vv ii n tin- Morgan Lake. Ardsev-t was Identified here to-d-ty ns I-rclerick Klin, allaa Kalln, a notorious burglar, The ideti'ltbMtlon was made b the New york I rlim." jioltis. who were furnished with print n'd phot ogre pha of the tiead man by ghetiff Wleendnger. The police records t-'hovv that Kline war nrreated and convicted of burglary avaml time In New Yotk loutitv The last sentence he served was pro. noyncod bi 1004, when he was com mitted to Sing Sing for ton years for burglar!) in the Brat degree The trial I was at hit I 'lain After the find In 1 of the tlv an B UtOpe revealed tl'll tile III. ill had beet, killed by a bullet In the heart of dlf- 1 fetent oallbre than those found In the I revolver bi hi aide, i'our of the dve I cartridge In Kline'.- revolver had been iischnged. and Cor .tier DttltU, vvho txtn I d ieted the Igqueat, rendered ti verdict 1 in murder l) aom unknown terson. There wa nothln on the issiv e I cept 11 tie clasp villi the letter "K' 'engraved on 11 to lead 10 Identification ! Rven the label in the oollatf of the coat j had laeen 1 elm iv d. MAY GET CHESAPEAKE LINES. Ruckefellvv'e It, nut e,,,,.uB vv esi ,-rn I hem. It Man in mi Is H,t. UAkTiMORgi Aug. 81 it wag raportad in th anclul clrclaa loda' that tha Rockofaltora1 Woatorn Mao Ian i Rail rood would proba My Ifi to gai thr Buatorn and Waotorn Viagra Chaoapoaka i ltullwai Btgnmhoai linen, which uniio ih. doclalon of tha IntgrataAa Commoroa nommivRlon tha Hannaivanla RallruBfi - muat glva up Thi would aaaura oompat-Hton tn a i taiawarOi Moi inni and vii glnla trnlUc, l which tha toi may Ivan la by mm oom nl of both ataamhoal ami rail unn hum i inouoiolaa i Tin toumboai lines ara profitable and will ba i irraat ncqulal I tion to tha Vaa,tarn .Mh.u.hmI, whlch u rapid I) IncroaolnH Ita proporty holdlngi In Maryland. $5,000,000 IEWELRY DISPLAY. It eta Here' fogventloa " in llraod Central Palave Tii-isnrnm . Jewelry valued ' IS.000,900 will he dlaplayeg at th-' tenth annual convrn- ii, ,n of the Aim r. can Retail Jeweller A saes'lailon in the Orand Cetitrgj r.ii- gCa ll'IN Week it is expected 'hat more than ft. nun ilt. tiers from all over tin (l)lted St. tics e 1 1 etlend (he conveittioti, which i.e opened tn morrow ai I a m The display nf Jewel r n a i rude xhib imn for buyera only During th wei, many r ports vv.ll he r.nl and ofRcen will lie elected. Ou Wednesday there win he a boat trip anil vlajo b.. . for tin dcltgulti. ROADS ACCUSE U. S. OF A NEW INJUSTICE Hiiipii peters Attiu-ks Recent Order on Min'liii". Public Moneys. FREE SERVICE, HE says Washinciton, Aug 21 The railroad of the country have complained of the recent Treasury Department order, ef fective AugiiNt 1. directing that all pub llr moneys and securities transported be tween the Treasury and aub-treiisurles and the banks shall hereafter be carried by registered mall Instead of by expresa. A statement Issued by Ralph Peters, chairman of the committee on railway mall pay representing the railroads. Kiiyn : "The express companies have hitherto earned about $.",00,000 yearly by the per formance of this service. Approximate ly f) per cent, of this sum or $2.',0.000 annually was paid hy them to the rail road companies for the facilities of irsnsportiition. "Botll the railroads nnd express corn but the railroads, unlike the express com panies will be deprived of these revenues, panics, will by no means be relieved of the service, since it Is obvious thst whether the public moneys and laour Ittes are sent by express or by mall the facilities of the railroads must be used In either case. tin. ii., of t'omiiensallnn. "For rnrrylng the publlr moneys and securities as mall the railroads will re ceive no compensation whatever until the ilovernment again weighs the mulls to ascertain the tonnage being carried "This is done only once In four yenrs Fven then the rate the railroads will receive for transporting the funds will be en utterlv Inadequate, by comparison with th unusual value of audi ship ments and the fair worth of the service to the Government, a by amount prac- I ..t-L. .,... Aia ha rilrn,,ds for ,i....ll.. In ....tt.lov I ,..,.,. ,h ,!! are haaad noon the1 , ,rrvjce of tr. nsportlng sue h things as ! ,tters printed matter and small mer-: rhandlM Theee mak up the treat bulk ,,r the mail and with few escefRlonel 1 a ;P ( relative;) small Intrinsic value. I Kates commensurate with service of lh: character canr.ot. by any recvign'xed 1 gcooomlc principles, be held ooremOn 1 Burate w ,th the servi f carrying ente' - tnoiis sums In m-ei.cv In negotiable I ettrltl 'he shltunents of wh'ch by the .vernment probably exceed ti.uii'i.iitm.- OnO annuall). The Net "The net results Results. of ettang seem ti he : 1. To oblige the railroad to render fo- practically nothing the actual trare. portitior. service reoJirrd in effect I nt ' ransfers of the public funds "2 To sni.srate the risk of Insurance , In trenail from the general Insurance duty and turn this businees over to ni at ititr-reit at rate not yet disclosed "J To transfer from MM exprc con -ian!e to the Pout otllre pepartmor.t tne duties Involved In the actual handling. 1 collection, dtviivery and custody of thou j sands of extremely vatuaMe package I not hitherto carried in the mails. "In this analysis It would appear that1 the only rrul and tangible saving of ex- pense to tht 1 toy , . titnelit 1U :n tne B'lo Matitlnl ellttiinutlon of av uietit to the! tailnla for Itie, transiMDi atnn st rvlc-. , "In other respects nothing hut n change in ggeQClag is ffCtod, which I j as likely to Increase as to Jaoreis,- tin cost. 1 rated flaaptla Ksfsreteel, "It may well be anti -ipated that the railroad win be called upon tram time to tlm to carry not only the (iovern mt id's money but also to carry free rnied guard as 'agent In charge of the mails.' or wen to furnish special , cars without additional compensation. "For precedent uisin these point 1. I may be recalled that when the Trea- ' ury Department last aummar ohlppeo loo,0oo,ooo in gold from Philadelphia to New York it patee! post, the Poet I i iffice Department required four apodal car for w hich no additional payment J Wag made and also the transportation I for tie round trip of loo guards with out payment t tare. I "If by exacting such forms of spe. ia service nnd Initiating upon the free transportation f armed guards, lis poet I tige'.ts, the Treasury Department I is enal led to obtain abnormally lot rates of Insurance, the eavivg will quit evidently be effected at tn expense o li, r. .! 1 - I NEAUeNAVY A Thrilling Sea Story WILLIAM Begins in The EVENING B f SSI IVVV I BIG STRIDES BY U.S. IN CHEMICAL TRADE Henafactareri Tke Advakv tage f LeaMM Taught In the War. NEW PROCESSES POUND A revolution of the chemistry Industry In the United State, brought about by the curtailment of chemlral Importation from ilermany and the unprecedented de mand for explosive made from cheml rnls rather than from minerals, was predicted yeoterday by chemists In New York. A world war fought with chemi cals, it was said, hud shocked American manufacturer Into a realisation of tne Importance of conge rvlni mai tar prod ' uctl and would undoubtedly give a dig nity and Importance to the prorsion of applied chemistry which It has never had outside of ilermany. "The I hi Pont factories alone." yes terday declared I 'r. J. Merrltt Matthews, an expert chemist In the Chemistry Club Building, "are probably using ten times mote sulphuric arid than before Ihe war. md there have already been single war orders which demand more Picric and other acids than were used in the entire Doited States In a year before the war It Is already clear that the present forced production of sulphur, nitric mid, benxol and other C0a tar product! has given the coun try a tremendous Impetus In the produc tion of these materials. Th end of the war will certainly leave us wiser and more Independent of the rest of the world. ' I doubt If the output of the ilovern ment ammunition plant at Plca tlnny. N. J . In a year in time of peace could produce enough am : ii 1 1 r iltlon to last the nation a single day under present war conditions. With the forced prodU' Hon of these chemicals REENHUT' THE BIG 1 Li TfTTji'ii . cK.'i. li ffHi "rw Trustees' Sales By Order of the I'nited State District Court New York's Best Bargains in FURNITURE In This Semi-Annual Sale. Straight through our entire stocks of Furniture, covcrine two floors in our Annex Building, there are saving of 10 to 50 per cent. Your choice was never hotter than it is right NOW, It makes little difference whether you want a few dining room chairs, a Period Suite or Furniture for an entire house, HFRE'S WHAT YOU DESIRF IN SOLID, Sl'R STANTIAL QUALITY, AN D IN SK.HTLY DESK.N, FOR LESS THAN ANYWHERE IN NEW YORK Big Associate Sales of Housewares, China, Glass, Lamps. Framed Pictures, Oil Paintings, I'pholsteries, Draperies and Floor Coverings. In the Main Building you will find countless bargain in all departments. Just a special word about our showing nf Advance Styles in Women's Wear and Trimmed Millinery Tomorrow we will sell 2.500 "NEMO" CORSETS "seconds" of $3 to $5 grades, at This is the "second edition" of our Big Corset SaK If you are not a charge convenience of an Account of Accounts. For other sales please see OUf (We cannot guarantee to till mail Double H'M? Ciccn Trading Stamps i by HAMILTON Monday, August 30th hi Ing as resourceful In this r, gsftl many. "line of the moat Internal t' duetrlalty Important lb-Ids open youfiy man in this eountr) applied chemistry. Our roe gas manufacturer hav. hen II out vaet quantltlm of tar prod i with thi i supply of benxol, toluol, aniline and anthracene en u number of discoveries t.et- ward are possible to sk fenloun brains, a conaptcuous of this Is Dr. Walter F Hltl t Jnverntncnt rhcmlat. who re . covered a new process for p. beniol from crude petroleum 1 The , vli.it. g, s and Opportui t i manufacture of dves and ph irmn products (aspirin, sitlol. pin fl. at.'l In. ' nil Ifl tlPTl . art Phenol cin.t.j i "ire re. ltd ,n xi tril,. "'. tile og. Otitic-, in UM i it:e ' ' I .IP. "I Paw.e. ' BUI . ) POM to he no lees notable -manager of the tltst Mai 01 Kx position, to he held In the . tral Palace beginning Sept nOUnCOd yesterday that Will . Jr., had perfected a tiiov . ! dye which has been Itnpiov. ,1 i S. Stanislaus of Philadelphia : ,. proved hy a conference of Raatert lata Chemical laboratories ever) rtmni It waa aald veeterdav. are bust et-v. !ng to perfect dye processes ,, one aniline dye company Which ' bought all its "intei med fron Oerni.my Is niew using rant product mart here and haa corttesji priutkally all the market it, the P'vtttj States for black dyegtuffx ACCUSED FIRM BANKRUPT. llecelx er nieil for l.estrnde Maths Holler Maiiufarliireri A petition in bankruptcy the United States DtatHcl i dav against Francis and w I led i olirt v.tef. ' Is. strade, butter mitniifart urers and 'en. porters, who were Indl- ted by j.-.'d-eral Urand Jury recently f.. . , turlng und selling adulterated butter without a license and defraur! ,. th Qoremment of thousands of t, : ., rs, in revenue taxes. The firm of Ix-tdrade it, Puano street. Is prominent In the buttef trade. According to the petll assets amount only to about 0,o$je while tbo liabilities exceed 150,000, Judge Julius M. Mayer appnlntal Fred w. Stella receiver after th tint. rupts had admitted their It v the I'nlted States Is now rapid' - t at the 1 BB CKmtr.-M s: SIXTH AVaiemTOIina STREET $1 customer, you can enjoy the by applying to our Department adv't in ihis Evg. World nr Journal or telephone orders on thee items in Forenoon Single Stamps Ajtc OSBORNE SUN ! 3 i i -a-a.