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THE MINNEAPOLIS JOURNAL.
PRICE TWO CENTS. J» HE MAY GET IT YET. Santa Claus Roossrelt— Perhaps the little Crane boy would rather have this. THE MAIN ISSDE IN MERGER FIGHT Mr. Hill Hints at the Crucial Point in His Defense —"Acting as Individuals." Two Important Decisions That the State Will Quote to Overthrow Hill's Contention. Ther« Is one clause in President J. J. Hill's address to the public that points to the legal defense that he will make against the state in behalf of the Northern Securities company and the joint owner ship of the two northern roads. That clause and defense is this: "Doing what we clearly have a right to do as individuals.'' The application Is this: The United States supreme court (161 U. S. 04oi knocked out Mr. Hill's former attempt to consolidate the Great Northern and North ern Pacific corporations, on the ground that the laws of Minnesota prohibit one railway corporation from owning, con trolling, or consolidating with another owning a competing and parallel line. Being prohiMted from consummatng this consolidation as a corporation, Mr. Hill's present plan is to accomplish practically the same result in another form, the stockholders and officials acting not in their corporate capacity, but as indi viduals. So Mr. Hill, in his arraignment of Gov ernor Van Sant, proceeds to say: "Until myself and friends have, by our efforts and with our own money, relieved the northwest, not as a rival and com peting railway, but doing what we clearly have a right to do as individuals, or working together for greater permanency and security as a financial corporation." There is little question that the point raised by Mr. ilill is the main fighting ground on which he and the state will meet in the forthcoming legal battle. Those familiar with the legal preparations bping made at the state capitol on the part of the state, know that Attorney General Douglas and his associates, as well as President Hill and his attorneys, look upon this point as the crucial legal issue at stake. Corporate Versus Natural Persons. "You have prohibited me as a corporate personality from consolidating the Great Northern and Northern Pacific railways," says Mr. Hill in effect, "but as a natural person, as an individual citizen, I can buy and sell my railway stock, form new cor porations, and thus accomplish the same main object, and your laws governing railway corporations cannot touch me; and as to this Northern Securities com pany of New Jersey, organized to take over the stock and other property of the (Ireat Northern and Northern Pacific rail ways, we are doing clearly what we have a right to do as individuals." Consequently Mr. Hill and friends are turning over both Great Northern and Northern Pacific stock to the Northern Securities company, the so-called $400, -000,000 New Jersey trust—but they are doing it as individuals. President Hill of the Great Northern becomes the president of the Northern Se curities company—as an individual. Vice President \V. P. Clough of the Great Northern becomes director and gen eral counsel of the Northern Securities company—as an individual. Secretary and Assistant Treasurer E. T. Nichols of the Great Northern becomes secretary and treasurer of the Northern Securities company—as an individual. John S. Kennedy, who next to Mr. Hill himself has perhaps the largest block of Great Northern stock and a large voice in Great Northern management, is elected first vice president of the Northern Se curities company—as an individual. X. Terhune, the New York transfer agent of the Great Northern, and also Messrs. Hill, Clough, Nichols and Ken nedy, elect themselves directors of the Northern Securities company—"doing clearly what we have a right to do as individuals." What Can the State Do? "And now"—say Mr. Hill and friends, officers, directors and stockholders of the Great Northern railway, to the state of Minnesota—"what are you going to do about it? We are not doing this as a corporation—we are individuals." Has the state a legal remedy? That is what the courts will soon have an opportunity to determine. Are there any legal precedents? There are at least two directly i n point; there are others that have a bearing. To which side did the decision of the court go in the two cases in point? To the side of the state. It was held that the corporate officials and stockholders acting; nominally in their capacity as in dividuals consummated in effect a cor porate act, and the technical defense was cast aside and judgment rendered on the basis of the actual results accomplished and the practical effect from a public standpoint. Ohio Oil Trust Cane. The leading case is that against the original Standard Oil trust in Ohio, de cided in 49 Ohio State, 137-189, State ex rel versus Standard Oil company. The application of the state was for a writ of quo warranto to oust the defend ant trust from its franchises as an Ohio Continued on Second Page. MONDAY EVENING, DECEMBER 23, 1901. PERHAPS SHAW lowa's Former Governor Re ported Chosen as Secre tary Gage's Successor. New York, Dec. 23.—The Evening Post says word was received in banking cir cles here to-day that ex-Governor Les lie M. Shaw of lowa had been selected to succeed Mr. Gage as secretary of the treasury. HARD FIGHTING British Lose Heavily in With standing Determined Boer Charges. London, Dec. 23.—Lord Kitchener, In a dispatch from Johannesburg.sends reports of sharp fighting in the Orange River and Transvaal colonies. Two hundred mounted infantry in the neighborhood of Begin deryn, divided into parties, were search ing farms when they were attacked by 300 Boers and forty armed natives under Commandant Britz. The Boers charged determinedly in overwhelming numbers. Beyond the fact that the British casual ties were severe, no details have been received. Lord Kitchener also reports that during General De. Wet's attack on the British force commanded by General Dartnell and Campbell at Langberg Dec. 18, the Boers charged bravely and fought desperately for several hours. De Wet was driven off with the loss of twenty men. There were twelve British casualties. Dec. 20 M. Botha with 800 Boers sur prised Colonel Damant's advance guard at Tafel-Kop, Orange River colony. The Boers rushed a kopje commanding the main body and the guns, but Damant ral lied his men and drove the Boers from the kopje. The British casualties were heavy. Damant was dangerously wounded, two officers and twenty men were killed and three officers and seventeen men were wounded. The Boers left six dead on the field and dispersed. The British pursued the enemy and captured a number of pris oners, including Commandant Keyten. Later the Boers, under a flag of truce, asked permission to remove their dead. They admitted having buried twenty seven men. London, Dec. 23.—The News' special correspondent in South Africa states that the peace movement among the Boers has broken down and that the object of recent meetings was to make fresh plans for con tinuing the campaign. A descent on Natal through the Drakensberg is contem plated. De Wet is to be the chief actor in this move and General Botha will co operate with him from the north. Swazi duplicity has resulted in arms, ammuni tion and correspondence from Europe, getting across the border and the Boers are well mounted and provisioned. MURDERING NATIVES Lord Kitchener Repeats His Charge Against the Boevs. London, Dec. 23.—A dispatch has been received by the war office from Lord Kitchener forwarding further instances of alleged murders of natives by the Boers. Most of the cases rest solely upon native testimony, among them being a horrible story of burning alive a Kaffir named Frauz. He was the diriver of a wagon forming a part of a British convoy cap tured between Pretoria and Rustenberg a year ago. Two Boers, It is alleged, wrapped him in buck sail and piled bags of oats upon him. They then poured paraffin upon the heap and set fire to it. The total number of Kaffirs reported from Kimberley as having been murdered is thirty-seven. There seems little reason to doubt that the Boers adopt the prac tice of shooting any natives that they may think conveyed or would be likely to con vey Information of their movements to the British troops. IOWA SCHOOL BUILDING BURNED. Special to The Journal. Marshalltown, lowa, Dec. 23.—The public school building at Kellogg, near here, waa burned. The Joss ia total, about $4,000. POWER FROM THE NEW DAM Will Be Available tor Com- mercial Use. NAVIGATION IS FIRST That Protected, Surplus Water Will Be Available for Power. NO FAVORITISM TO BE SHOWN All Applicants for; Power Will Be Treated Alike— Street Rail way Application. It is quite likely that the new power which will be generated by lock and dam No. 2 at Meeker island will be put to com mercial uses. A special dispatch to Th c Journal from its Washington bureau says the government is usually very gen erous in matters of this kind, and there is no good reason why generosity should not be shown the business nivn of Minneapo , lis. There is a federal statute which auth i orizes the secretary of war, under suitable regulations, which he is to draft, to per j mit commercial uses to be made of water j power developed by. government dams, so | long as this use does not interfere with navigation. The only purpose of the lock and dam at Meeker island is to make the Mississippi river reliably navigable be tween Minneapolis and St. Paul. This pur pose attained, any extra power or head of water coming as a result of the im provements may be put to use by the business world; and it is assumed by the war department that in time there will be applications from Minneapolis people for the extra power, under the statute re ferred to. No applications are yet on file and there has been no intimation that any are coming. A rumor has been in circulation in Washington that the Twin City Rapid Transit company, whose water power farther up stream is inadequate and of a very uncertain quality, is about to make a formal request for permission to appropri ate the power which the new lock ar*l dam will develop, but the war department knows nothing about it. Nobody repre senting the company has thus far been in Washington to look the matter up. Asked about the conditions under which the power would be available for commercial purposes, a high official in the engineers' department said to The Journal's Washington correspondent: The question of whether such a use of the power as you suggest would interfere with navigation would have? fip,T& decided by this departnuint, aud It is likely that Major Hoxie now in charge, in a report to the department' would give an opinion on this feature of the case. Should it be decided that the use would interfere with navigation, that would end the discussion; but should the opposite opinion prevail, the way would at once be open for the granting of permissions to divert a part of the head of water. Tiie government owns both river bauko alongside the lock and dam. The water could not be taken across tils gov ernment land without a ppecial act of con gress, which might or might not pass. The simpler way would be for the company which is to use the water to take it at some point just above the government's riparian rights. The secretary of war would in such a case have full power, ir his discretion, to grant the necessarw permission. It is likely that a great deal of power will be developed by the new dam, and it seems to me that it should be put to some profitable use. The government's policy always has been to permit this use, so long as navigation was not interfered with. Should there be a number of applications for power, more than covering thst can be spared, the department will proceed very carefully in giving permis sion. Exact justice will be done each appli cant, to the end that no charges of favoritism may honestly be made. A few years ago we had a gcod deal of trouble alcng the Fox river in Wisconsin. This is a navigable stream, one the records of the war oflfico, and when one paper mill after another was built there, until finally navigation was being impeded, owing to the quantity of water and power the mills were using, we had to interfere. Several years elapsed before the case could be satisfactorily arranged. The mills are now permitted to use the water only when the river la at or above a certain stage. At low water times they must get their power in some other way. I do not know whether a similar condition would arise at lock and dam No. 2, or not; but if !t did, some regulation would be made which would preserve a water supply large enough for navigation. NOT FOR CRANE Governor of Massachusetts Declines to Be Secretary of the Treasury. Washington, Dec. 23.—Governor Crane of Massachusetts has declined the treas- ury portfolio tendered him by President Roosevelt last Friday. It was officially announced at the White House to-day that he had declined for business and domestic reasons. The announcement of Gov ernor Crane's declination followed a con ference between the president and Senator Lodge after the latter had communicated with Governor Crane. The only name suggested #Pt the White House to-day was that of Colonel Myron T. Herrick of Cleveland. Colonel Herrick is at the head of one of the largest sav ings institutions in the country and has a wide experience in financial affairs. He was a warm personal friend of the late President McKinley and, it is understood, was promised a foreign mission. Boston. Dec. 23. —Governor Crane gave out the following statement here this af ternoon: I have relt obliged to decline the appoint ment of secretary of the treasury tendered by the president on account of illness in my family and inability to arrange my business at such short notice. It is understood his reference to illness in his family is based upon the fact that his mother is an invalid and on that ac count he does not care to leave his Dalton home. PAPER PLANT tONE Loss of Upward of a Million Dollar* in an Ohio Fire. Hamilton, Ohio, Dec. 23.—The fire in the Champion Coated Paper works that started late lest night was not under con trol until this morning. The loss is placed at from $750,000 to $1,000,000. It was the largest plant of the kind in the United States and employed over 400 persons. A stock of $250,000 worth of enameled book and magazine paper was wholly destroyed. There was also a loss of a great quantity of valuable machinery. The fire was caused by the explosion of a can of gaso lene. SCHLEY IN THE COURTS Will Bring Suits Both Civil and Criminal. OTHERS THAN MACLAY Those Behind Him Are Also to Be Prosecuted. NO SHOW FOR NAVAL CLIQUES Attorney Rayner Give* an Inkling of What the Public la to Expect. *W Yoi-k Sun Succlmi Smrvlom Baltimore, Md., Dec. 23. —Admiral Schley's counsel, Isldor Rayner, intimates that both civil and criminal suits would be begun in the admiral's behalf. The case is bound to go to the courts and action will be taken not only directed against Maclay, but the principal efforts will be directed against the men who, it is al leged, are behind him. Said Mr. Rayner: So far the navy department has had every thing its own way. Secretary Lone has had his day. Now, I think, we will have ours. I have advised Admiral Sohley generally as to the course that ought to be pursued, and' when we meet this week we will outline the plan of action. Naval ■cliques will have no more show before any criminal or civil tribu nal than the humblest suitor in the land. We are now, we hope, c-n the right track of an Important discovery which will give absolute jurisdiction to the courts. The author of the "Naval History" and his sponsors can be prosecuted in any Jurisdiction in which the libel made its appearance. My advice will be to prosecute the matter until the conspiracy is revealed and every one who is a party to it is brought to his reckoning before unbiased judges and impartial juries. APPEAL. TO THE PRESIDENT That Recourse Still Left— Glad Hour for Cliques. From Tho Journal Bureau, Boom 45, JPott Building, Washington,. Washington, Dec. 23.—Admiral Schley still has the recourse of an appeal to the president. His friends are divided as to the advisability of taking this appeal. The general impression is that the president would approve the findings of the court of inquiry. Some politicians think it would be a good thing for the admiral if the president should stand by the majority of the court and Secretary Long, on the ground that he would thus be putting himself against public sentiment. The enemies of General Miles in the army, men who worship at the shrine of Adjutant General Corbin, are gioating over the reprimand administered to the general. There had been indications thrt the president intended to restore the gen eral to the authority he should -have in the war department, but this episode probably makes that one of the impossi bilities during this administration. Altogether it is a happy hour for the clique in the navy department and the clique in the war department. Prom nu merous sources comes the information that the president and his political ad visers are declaring that the controversy must be stopped, but how is the question. One of Schley's friends remarked to-day that it may be possible to close the mouths of employes of the government, but there was no way of preventing peo ple from expressing their opinions. The censure of General Miles will tend to arouse congress on the subject of taking some action. Already constituents of the members of the naval committees are in sisting that the resolutions introduced shall not be pigeon-holed. —W. W. Jermane. PRODDING A CONGRESSMAN Mr. Foss' Political Future Depends Upon His Favoring Schley. Special to The Journal. Chicago, Dec. 23.—Unsatisfied with the utterances of their representative, con stituents of Congressman Foss, chairman of tho house naval committee, continue to demand that he declare in unequivocal language his attitude concernifig the reso lutions submitted to congress on behalf of Admiral Schley. Republican leaders in the district openly declare that Foss cannot secure another nomination if he votes against the resolutions. But the majority of his constituents are not inclined to threaten their representative with dis pleasure. They declare that when the time comes he will obey the wishes of his friends and political backers. Their con fidence is said to be on the wane, how ever, and it is expected that a movement against Congressman Fobs' renomiaation will be inaugurated in a few days unless he makes a declaration of his intentions. Friends of Congressman Foss are agreed that he can never secure the support of the state senators and representatives from his district as a senatorial candi date unless he votes for the Schley reso lutions. MACLAY SAITH NOT "Historian" Will Be Given Time, but Go He Must. Washington, Dec. 23.—Nothing has been heard at the navy department from His torian Maclay in response to the depart ment's request for his resignation. Under the rules an employe is allowed three days' grace in which to show caused why he should not be dismissed; and although this rule having been made by the execu tive authorities may be disregarded at its pleasure, it is believed that Maclay will be given a reasonable time to quit' the naval service, for it is certain that he must go. In line with the determination already reached to stop the further discussion of tlye Schley case so far as the executive branch of the government is concerned, the navy department has decided that it will ignore the reported recent utterances of Rear Admirals Brown and Belknap somewhat in the lin«s of General Miles' I Interview. DISSOLVED End of the Injunction Against Retirement of Northern Pacific Preferred. New York, Dec. 23.—Justice Scott in the supreme court to-day dissolved the injunction obtained by Wolff Bros, and others, restraining the Northern Pacific railway from retiring the preferred stock of $76,000,000 on Jan. L 12 PAGES-FIVE O'CLOCK. GOVERNORS AT HELENA, DEC. 30 Gov. Van Sant Calls a Conference of States Affected by the Merger —Welcome to Montana. A State Official Pokes Holes in the Hill Argument—Harriman People Sore. Governors and attorneys general of all northwestern states will meet in Helena, Dec. 30. The conference is called byGov ernor Van Sant for the purpose of dis cussing the threatened railroad consolida tion, and of devising means for foiling it. Governor Van Sant wrote before leaving for St. Louis to the governors of North and South Dakota, Montana, Idaho, Wash ington end Oregon, suggesting Helena, Mont., as the place, and Dec. 30 as the date for the conference. He asked that each governor invite his attorney general to accompany him to the meeting. Governor Toole of Montana, who has been most hearty in his co-operation, re plied promptly, welcoming the visitin? governors to Montana, and indorsing the Idea of the conference. Governor White of North Dakota has written, promising to attend, and Attor ney Gen. Coinstock will accompany him. Up to noon to-day word had not been re ceived from the other governors. If next Monday is not a satisfacotry date for all, the meeting may be postponed to a time suitable to all. Governor Van Sant is anxious to get positive action from executives of other states, showing that their moral support is with him, and that Minnesota is not along in its fight. Attorney General Dauglas will probably attend. He said this morning that unless something prevented he would accompany the governor. Hill's Statement Analyzed. State officials are having fun with Pres ident Hill's statement. Said one this morning: "It seems to me Mr. Hill would better have said nothing. His argument may ap peal to those who are desirous of being convinced, but it seems to me full of holes. "According to his statement the con solidation of the Union Pacific and North ern Pacific would have been very bad. The consolidation of the Great Northern and Northern Pacific is a good thing. Con solidation ia harmful unless Mr. Hill is at the head of it. Any one else engaged in consolidating railroads does so from wrong motives. His (motives are the only ones above reproach. "He claims that consolidation of the Union Pacific end Northern Pacific would have injured Minnesota. Is that true? The Union Pacific does not touch Minne sota. We would still have had competi tion, not only in Minnesota, but clear to the coast. "He wants to know why Governor Van Sant did not interfere when the Union Pacific was buying up Northern Pacific. If Mr. Hill was a public spirited man, why did he not notify the governor of the state of affairs. Instead, he was shouting, 'I am in control.' The public did not know for months who had the inside track. That is certainly a specious argument. "I do not claim that purchase of the Northern Pacific by the Union Pacific would have been a good thing. It would have been harmful, but 'the control of parallel lines by one man is a thousand times worse." A traveling man who came into St. Paul to-day said that in the past two weeks he had talked with seventy-five trainmen and station men of the Northern Pacific. They all anticipate a reduction in wages when the Hill regime is installed, and era greatly disturbed. Station agents on the Great Northern get 30 per cent less than agents at the same points for the Northern Pacific. ANGERED BY HIL.Ii His Attack I'pon Union Pacific Stirs Up the Harriman Party. Special to The Journal. New York, Dec. 23.—The Hill statement was read with much dissatisfaction by Wall street men. In some quarters the prediction was made that if Hill continued to keep alive the feud with Harriman, Kuehn & Co. and other Union Pacific in terests, he would be thrown overboard by Pierpont Morgan. The outburst from him was not unexpected by the Union Pacific people. One of them, who took a leading part in the fight against Hill and Morgan last May, remarked three days ago that Hill was not keeping faith with them in pursuance of the agreement reached at the last meeting of the directors of the Northern Pacific, when it was decided to retire the preferred stock and give the control of that road and the Great North ern to the Northern Securities company. The same man said he and his asso- Lcitcr in a Cheese Corner Mmw York Sun Snoclmi Smrwlom Denver, Dec. 23. —"For a year I have been working out a cheese trust," said R. S^ Gamble, a traveling man of Chicago. He added: Joseph Leiter Is arranging a deal to corner the milk of the countjp by himself, but with my firm he is interested in controlling the cheesfe output. It is not our intention to interfere with prices, as we regard that too dangerous. By systematic control of the production wo expect t# hold price* steady, netting fair profit for all coac«r&«& ciates In the Union Pacific were convince^ of the good faith of Morgan, but Hill'< actior.s were an enigma. For several days Wall street broker* with close connections with Union Pacific leaders had been looking for some kind of an attack. They did not know just what form it would take, but while Hill's statement angered them it was the gen eral opinion it would not seriously affect the price of stock, though they acknowl edge it might frighten timid speculators and cause some run to cover in the be lief that the whole controversy would be actively revived. Morgan will, it is be lieved, take prompt measures to assura the financial community that the fight id not to be started anew and that he has nothing to do with Hill's attack upon tha Ur.ion Pacific. Harriman and Kuehn re* fus-3 to say anything for publication con cernirg Hill's statement. MELLEX WILL. STICK Reasons for Belie the Northern Pacific Will IVot Change President. • ■ Special to The Journal. New York, Dec. 23.—The New Yorfc Commercial quotes a man who has in timate knowledge of matters connected with the combination of the Northern Pa cific, Great Northern and Burlington a« saying: It is silly to suppose any change can be made in the Northern Pacific presidency un less- all interests Identified with the three lines are satisfied to have it done. While I do not believe any such move is contem plated, If it should occur, Morgan, Harrl man and Hill will have to be a unit on tha question, and a man will be selected who cannot be controlled by any one of these in dividuals. The reason is obvious. No one of them can expect to get any one in who has had close identification with their respective properties or interests. My judgment is that if Mellen wants to remain at the head of the road he can do so and I also believe not only that' they want him to stay but that he will. It is my opinion that all this talk about displacing him is inspired from sources which would like to worry Mellen into resigning. He may have offered his resignation, but ho has donb so on former occasions and it does not follow that it will be accepted now auy more than before. A» for Hill dictating the removal of Mellen o* forcing his resignation, that is absurd. Hill will not undertake to do anything of the kind, certainly not at the present 6fage o£ affairs, and I doubt that he will try it here after. Mellen has made a great showing aj^ president and his 1 work will be appreciated. f*J PAPAL OVERTURE Once More Is Archbishop Ire^ land Talked Of for Cardinal. Rome, Doc. 23. —The Vatican is beconv^ ing decidedly more hopeful that thak United States will yield to the pope's; great desire and appoint a diplomatic rep* resentative to the Vatican. So anxious i£ the pope for the success of his project that he woukl be satisfied at present ■with} a semi-official representative in the hopa that he would be eventually turned inta a minister or ambassador. Washington) is not unwilling to •discuss the matter and the Vatican has intimated in return it 9 desire to meet American -wishes in Cubaj and the Philippines, and possibly creata another cardinal in the United States. Th« pope is solnewhat opposed to the letter step while Cardinal Gibbons lives, but he may compromise the matter by creating Archbishop Ireland or Archbishop Gorri gan cardinal of the Curia, entailing liv«> ing in Rome. The pope to-day received the cardinal^ who offered him their Christma* greets, ings. The pontiff made a lengthy address in which he condemned what he charac terized as the excessive liberty of thought indulged in at the present time. Hai sharply criticized socialism, agitation toxt divorce and hostility between different sections of the church and urged a< union] of the Christian churches. CHILE AND ARGENTINA Diplomatic Resources Exhanted, Ye| Hope of Peace Remains. Washington, Dec. 23. —Secretary Hay has received a cablegram from Minister Wilson at Santiago de Chile, confirming the report that the resources of diplomacy, had been exhausted in the effort to settle the dispute between Chile and Argentina, and that diplomatic relations had been broken off through the withdrawal from, Chile of the Argentine minister. Touch ing the proposition emanating from tha Argentine side to refer the dispute to Great Britain, the Chilean representa tives claim that this was their own origi nal proposition. This being the case, 111 is believed there is a way open for ai peaceful adjustment. ANTI-TUHKISH DEMONSTRATION. Sofia, Bulgaria, Dec. 23.—A revolutionary demonstration against Turkey took place hers last night.