The San Francisco call. [volume], December 15, 1903, Image 2

About The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913

Image provided by: University of California, Riverside; Riverside, CA

                
Popular Clubman Dies.
John O'Neil Reis. popularly known
as "Jack" Reis, died at his apartments
in the Hotel Redondo Sunday. He
had been ill but a week, his death re
sulting from an attack of pneumonia.
BOLOGNA, Italy, Dec. 14.— A mon
archical 'paper published here, which
is considered to be generally well in
formed, says it has received news
from a trustworthy source that Dow
ager Queen Margharita, during a re
cent journey to Norway, contracted a
morganatic marriage with an engineer
SO years old. •
ROME, Dec. II.— The report tele
graphed from Bologna that Dowager
Queen ilargharita, during a recent
journey to Norway, had contracted a
morganatic marriage with an engineer
30 years old, is authoritatively denied.
The engineer to whom the queen moth
er is alleged to have been married is
named Tenerand.
The departure from Russia of Dr. Gus
tav Tammar.n. professor of chemistry at
the University of Dorpat. to accept a
chair at Gottingen. has been much com
mented on, because he was tfce last re
maining eminent instructor at that once
famous seat of learning.
Barclay J. Smith, the well, known
merchant and founder of Smith's Cash
Store on Market street, near Steuart,
died yesterday morning at his home,
570 Harrison street. Death came after
a Ions illness, the last five weeks of
which the dead merchant passed at nis
home, being unable to leave the house.
Smith was born in Pennsylvania and
was 70 years' of age.- More than twen
ty-five years ago he came to California
and started a retail house under the
name of Smith's Cash Store at 519 Post
street. Through his • business ability
the trade of the little store grew to
such a prosperous state in a few years
"First — It placed the control of the
two roads in the hands of a single per
son, to wit, the Securities Company, by
virtue of its ownership of a large ma
jority of the stock of both companies.
"Second — It destroyed every motive
for competition between two roads en
gaged in interstate traffic, which were
natural competitors for business, by
pooling the earnings of the two roads
for the common benefit of the stock
holders of both companies; and, accord
ing to the familiar rule that every one
is presumed to intend what is the nec
essary consequence of his own acts,
wtien done willfully and deliberately,
we must conclude that those who con
ceived and executed the plan aforesaid
intended, among other things, to ac
complish those objects."
The Attorney General's own summary
of the results is as follows:
"To sum up the result of the afore
mentioned exchanges of Great North
ern and Northern Pacific stock for the
stock of the Securities, the latter com
pany on December 11, 1901, had ac
quired and paid for 990,000 shares" (in
round figures) of the Great Northern
stock, the . total capital stock of that
company consisting of 1,250,000 shares,
of which 1,220,000 had been issued, and
by January 1, 1S02, the Securities. Com
pany had acquired virtually all of the
common stock of the Northern Pacific
(the preferred stock was retired on that
date, the resolution to retire It having
been passed In the preceding Novem
oer), its answer to the bill admitting
that it held 1,500,000 Northern Pacific
shares out of a total of 1,550,000.
"The final result of the transactions
was that one and the same set of -men,
Hill and Morgan and their associates
being the ruling spirits among them,
acting together under a charter agree
ment and through the agency of a
corporate organization, became invest
ed with* absolute power of control over
two parallel and competing systems of
interstate railway. In place of the
two distinct sets of stockholders with
rival and competing interests, namely,
the stockholders of the Great Northern
and Northern Pacific, ' there has ' been
substituted by means of the inter
change of stocks described, the one set
of stockholders, with one common and
non-competitive interest, namely, the
stockholders of the Securities Company.
Thus, identically the same persons who
controlled the Great Northern and
Northern Pacific before the Securities
Company came Into possession of a
majority 'of their shares, control them
now, only now these persons have a
common Interest— "community of inter
est"—in the earnings of both roads,
while formerly the interests of '"two
sets of persons— the two sets of stock-
"At the present time the Securities
Company is the owner of about 9* # per
cent of all the stock of the Northern
Pacific Company and the owner of
about TO per cent of all the stock of the
Great Northern Company. The scheme
which was thus devised and consum
mated led inevitably to the following
results:
After stating that the bill in the case
was originally brought by the Govern
ment to restrain the violation of the
anti-trust law by the Securities Com
pany in the consolidation of the North
ern Pacific and the Great Northern
railroads, and that the decision of the
court below was favorable to the con
tentions of the United States, the brief
enters into the following specifications
as to the reasons for the action:
1. The lines of railway operated by
the defendants, the Great Northern
Railway Company and the Northern
Pacific Railway Company, are parallel
and competing.
2. That the combination is in re
straint of interstate commerce and
a monopoly.
Th'-* concluding' paragraph of Judge
Thayer's opinion in the Circuit Court
is quoted as summing up the argument
bearing upon the facts of the case, as
follows:
Brief Prepared by Attorney General
Knox Filed With Court.
WASHINGTON. Dec. 14.— The brief
of the Government in the case of the
Northern Securities Company and oth
ers vs. the United States, on appeal
from the decision of the Circuit Court
of the United States for the district of
Minnesota* was filed in the United
States Supreme Court to-day. The
document was prepared by Attorney
General Knox and Assistant Attorney
General Day, and covers 180 printed
pages.
CASE OF THE GOVERNMENT.
Italian Xewspaper Says 3Iother
of the King IJas Contract
ed a 3Iorganatic 3Iarriage.
WASHINGTON. Dec. 14.— The Su
preme Court to-day began hearing ar
guments in the case of the .Northern
Securities Company, James J. : Hill, J.
Pierpont Morgan, Daniel S. Laniont and
others vs. the United States, coming
to this court on appeal from the de
cision of the Circuit Court for the Dis
trict of Minnesota. That dec.sion was
to the effect that the purchase of the
greater share of the stock of the two
railroad companies constitu;od a mer
ger and was contrary to thi Sherman
anti-trust law. The case involves the
community-of-intorest principle.
The courtroom was crowdt-d. Attor
ney General Knox was .present with
quite an array of assistants from his
office, while the opposition also was
represented by. a long list i<£ distin
guished counsel, including former At
torney General Griggs, John G. John
son of Philadelphia, C W. Bunn and
Charles B. Young!
JOHXSOX OPENS ARGUMENT .
John G. Johnson, representing .the
Northern Securities Company, made the
first argument. After statin*? the ease
Johnson said that the purpose of the
securities company- in acquiring the
stock of th? railroad company had been
not to prevent competition, but to pre
vent injury of its own: property. He
took sharp exception to the decision of
the Circuit Court that the possession of
the power which the securities company
had was a violation of the Ia-.v and con
tended that such holding was not in ac
cordance with decisions of the Supreme
Court, which were uniformly to the
effect that it was the us? of power and
not the possession of it that constituted
the offense. Johnson made his argu
ment on six propositions, which he out-
Ured as follows:
First— That there was no agreement,
contract, combination or conspiracy to
restrain competition between these two
railway companies or to restrain trade.
Second— That if two railway com
panie«, somewhat in competition with
themselves, decide it necessary, in or
der to sustain their competition against
a third company, which otherwise could
destroy them or greatly interfere with
their usefulness to the public, to com
bine in any way for the purpose of pro
tecting themselves against destruction,
the court must look to the matter as
one ot fact to determine whether the
real nurpose was to destroy or to lead
to the destruction in order to promote
trartr by the establishment' of the
greater competition.
Third— That it the holding by the
Northern Securities Company of a ma
jority of the shares of the two com
panies was a violation of th«: Sherman
act. «'f course an agreement among any
number of persons would be a viola
tion of that act.
Fourth— That the first section of the
Sherman act dots not In any way con
demn as illegal the acquisition or own
ership of the shares of the two com
peting companies. ,
Filth— That the second section of the
Sherman act does not in any way con
demn the acquisition and holding of
sub-mvnership of shares.
Sixth — That if the Sherman act do<»«
condemn as illegal the ownership of a
controlling interest in the shares of
the competing railway companies it is
unconstitutional.
SPEAKS FOIt NORTHERN PACIFIC.
Johnson was followed by C W. Bunn,
who spoke especially for the Northern
Pacific. Ss'd he:
"The parallel telegraph lines of the
country stand on the same footing as
parallel railway line?, and it is com
mon knowledge that nearly all the
telegraph lines of the country have
gradually come into control of two
companies. In the same waj* you
have got to hold that the acquisition
of parallel steamboat lines is a re
straint on interstate commerce. And
bo, if a few individuals owning stock
in i-arrying corporations should unite
into partnership, turning the stock in
as partnership assets, you would have
the same unity of ownership and the
same conspiracj* and agreement and
likewise the same power of control
that you have in this case, and my
question is whether it is really a.sub
ject of Federal control or a subject of
State control." .
KNOX STATES HIS CASK.
Bunn was followed by Attorney
General Knox for the United States.
In beginning Knox outlined the atti
tude of the Government toward the
case, saying that it was "one of grave
concern, baBed upon its conviction
that a mischievous evasion of the law
had been attempted, as well. as upon
Its epeclal interest and j relations to
one of the properties affected.'.' In or
der that the court .might understand
the reasons for this concern, he re-;
viewed the princjpaL facts connected
¦with the 'organization arid subsequent
history of the Northern pacific Com
pany, its relations to the Great North
ern Railroad and other facts out of
which the questions in this case arise,
but without extended comment. His
statement of facts in this connection
was as follows:
"First — That the Northern . Pacific
Railroad was built under the author
ity of the United States, and, in the
main, with capital furnished by the
United States, and that the United
States intended, and attached the con
dition to its contribution, that, the
railroad should be a great, independ
ent national highway, and specified
that the object of its construction was
'to promote the public Interest.'
. "Second — That by different devices
employed during the past ten years,
the defendants, or some of them, have
endeavored to destroy the Independence
of the Northern Pacific Company and
bring it under the domination of the
Great Northern Company. ¦ {
'Third — That the Northern Securi
ties Company is an instrumentality de
vised by defendants to acquire, hold
*ind exercise control over these parallel
and competing lines of railroads; to
destroy competition between them, to
create a monopoly of transportation
in the section served by them, and to
defeat the condition , attached by the
United States to the franchise and land
grants of the Northern Pacific Com
pany." 9901 TflrffifMffirlif
BARCLAY SMITH
EXPIRES AFTER
LONG ILLNESS
WASHINGTON. Dec/ 14.— A Dlan for
the creation of military divisions in
the United States was laid before Sec
retary Root to-day by General Young,
chief of staff., and an order making a
proposed change will probably be. is
sued in a few days. It is proposed to
create a division" of the Atlantic,. 'with
headquarters at Governors Island,; New
York, fcnd : to ihchidel'the •; Department
of the East,, with headquarter!; at Bos
ton, and a Department or the S6uth at
Atlanta, Ga. ,'- ; .•'• 1 * . .
It is proposed to. organize a division
of the Pacific out of ths wesent de
partments of California and Columbia
and to include in : this division Cali-«
fornia, Nevada and Hawaii and Wash
ington, Oregon, I.dahp and Alaska. • The
division of the north will include the
present departments of. Colorado and
Dakota. ' There Will also be m division
of the lakes, with'headquartervat Chi
cago, which shall ;lnclude^ the' Deplart
ment of the Lakes, the 'Department. of
Missouri and the Department of Texas,
¦yie Philippine archipelago will make
another division. It is proposed to have
the divisions commanded by major
generals and military departments
within the division in command of brig
adier generals or colonels.
Special Dispatch to The Call
that he was compelled to seek other
and larger quarters. His next place of
business wes . at. 115 and 117 Sutter
street, and later on he moved to Front
street.
: About ten years ago, realizing that
there was a vast number of commu
ters from across the bay who patron
ized downtown stores, Smith moved to
the present location of the firm at 25
Market street.
The deceased merchant built up an
excellent business j&nd had an enviable
¦reputation amons the patrons of his
store and his friends for honesty and
integrity. He was well liked by all
who knew him, was charitable and a
kind employer. He leaves a widow and
two children, Harper A. and Miss
Laura Smith. The funeral has not yet
been arranged.
NEW YORK,' Dec. 14.— The state
ment was made^to-day by a leading
official of the United States Steel Cor
poration .that, beginning January 1',
1904, about 90 per cent of the employes
of the corporation will suffer wage re
ductions ranging from 5 to 20 per cent.
This reduction -will affect about 150,000
workmen in the various grades of the
subsidiary companies. The remaining
10 per cent of employes are members of
tlje Amalgamated Association of Iron t
Steer and 'Tin Workers, whose wage
schedule runs to July 1, 1904. ¦
' The -finance committee of the steel
corporation has, it is understood, under
consideration the dismissal of many
high-salaried, employes, in addition to
those" already discharged/but no state
ment on this point- was forthcoming
to-day.' . V.
j It was asserted that, barring some
unforeseen technicalities, employes of
the corporation who participated in the
profit sharing plan, in the coming
montli^ will receive a $5 dividend on
the preferred stock to which. they sub
scribed at $82.50. ; [i
"2. Have the defendants monopolized
or attempted to monopolize any part of
the interstate or foreign commerce of
the United States in violation of section
2 of the anti-trust act?
"3. Was the relief granted by the
Circuit Court authorized by law?"
The Government maintains that each
of these questions should be answered
in the affirmative. . •
The questions of law growing out of
the statement of facts are as follows:
"Has. a combination been accom
plished by means of the j Securities
Company in violation of section 1 of an
act of Congress, approved July 2, 1890.
entitled 'an act to protect trade and
commerce against unlawful restraints
and monopolies,' hereafter called the
anti-trust act?
PORTLAND, Or., Dec. 14.— While the
family of Sigmund Frank, a member of
the firm of Meier & Frank, wasf at
dinner to-day a thief stole $2000 worth
of diamonds from Mrs. Frank's room.
The jewelry was In plain sight on the
dresser. The thief gained entrance by
scaling the lattice work of ' the big
veranda which surrounds the residence.
He took no time to search other rooms
in Which valuables and money were
lying, but made a hurried exit. He
was seen by a passer-by on the street.
The police believe that he is a member
jypf ft notorious gang of crooks supposed
to be operating in Portland.
holders— were, in most respects, di
vergent and competitive. It borders
on absurdity to say that two railway
corporations which, under 'normal con
ditions', are naturally competitors for
traffic, will continue to compete after
both become subject to the same source
of control. It Is not in the interest of
the stockholder of the Securities Com
pany that one of these railways should
prosper at the expense of the other.
They have a common interest in both;
they receive their dividends from a
fund created by pooling the earnings
of both. A more effective method for
combining competitive Interests— for
suppressing competition between rival
and naturally competing business cor
porations — It would hardly be 'possible
to conceive?'
Special Dispatch to The Call
DAVENPORT, Iowa, Dec. 14.—
Colonel Henry P. Bosse. who was a
member of the United States Eliginecr
Corps at the Rock Island Arsenal for
twenty-five years, died to-night, aged
59 years.
Reis for years was chief deputy in
the Treasurer's office, having been ap
pointed to that position by former
City Treasurer S. H. Brooks, his
father-in-law.
Well Known Engineer. Dies.
JOHANNESBURG. South Africa, Dec.
14.-A mess meeting called here to-night
for the purpose of urging upon the
Government the of taking
a referendum before introducing legis
lation providing for the introduction of
unskilled labor into the Transvaal was
completely captured By the element fa
vorable to the*' importation of Chinese.
Special trains brought in thousands of
miners from the East and West Rand,
5000 of whom packed the hall where the
meeting was held. .;'' ;
The miners were well organized and
all through the meeting there was fre
quent cheering for the Chinese. When
the chairman attempted to' put in a
motion in favor of the referendum he
was unable to N get a hearing. Speeches
in favor of the motion were impossible,
and the excitement was intense. At an
overflow meeting attended by 4000 per
sons a motion antagonistic to the tak
ing of a referendum was carried by a
large majority.
most pride was San Francisco Lodge
No. 3, Benevolent and Protective Or
der of Elks. He was a member of the
lodge for years and several times rep
resented ' th.e local branch in the na
tional convention of the order. He
held office for years in the Grand
Lodge and was probably the best
known E!k in the country.
Reis was born in this State. His
father was the late Gustave Reis, a
former Fire Commissioner, who left
his son a fortune estimated at $500,
ooo.
LINKS DOWAGER
WITH ROMANCE
SALT LAKE CITY, Dec. 14.— Quick
action by United States army officers
at Fort Douglas probably saved Private
Thomas R. Fuller from lynching at the
hands of his fellow-soldiers to-day.
Fuller was this morning positively
identified as the soldier who last night
attacked Miss Edith Gill in the south
western part of the city, leaving her
unconscious and severely injured.
When the soldiers at the post learned
that Fuller had been identified as the
girl's assailant a rope was hastily se
cured and a crowd of them hurried
down the steep road to intercept the
street car in which they supposed Ful
ler would be conveyed to the city.
When this was learned Fuller was
hustled into the post ambulance, and
under strong guard was driven into
town. Fuller's home is said to be In
San Francisco. He enlisted here two
weeks ago.
It ,1s Also Asserted That the
...Corporation Will Drop
Many ulligh Salaried Men
Major Generals Are to Direct
and the Departments ;Wiil
Then Be Under Subordinates
Police of Oregon Metropolis
Believe Work Was Done by
One of a Notorious Gang
Antagonist of Popular Vote
Pack Hall and Hold an En
thusiastic .Overflow Meeting:
Accused Is Hustled Into ft
Van and Driven to Protec
tion 1 Under a Strong Gninl
CHEERS FOR THE CHINESE
WOULD-BE LYNt'HERS FAIL
1 ."50,000 MEN INTERESTED
ORDER TO BE ISSUED SOON
CRIMINAL MAKES ESCAPE
"Let us next see what steps were
taken tr» . set ' the Northern Pacific
property into such a situation as would
enable Mr/ Morgan to make good his
assurance to Mr. Hill that* if he failed
to ' acquire the Northern E Pacific stock
in the manner Just described they
could work in harmony. A reorganiza
tion of the road was expected and a
new company, organized under the
Jaws of Wisconsin, with power to do
so, took" over the property and fran
chises of the Northern Pacific Com
pany. , ; ; ¦ ...:;.. . £.- :'
"By" the reorganization agreement, J.
P.. Morgan & Co. were made 'manager"
of the reorganization. What Is known
as 'harniony' now prevailed between
the two roads and continued as such
until 1901. when the two roads made
a "joint purchase of the Chicago, Bur
lington and Qiilncy^ Railroad. This
partnership in the "ownership of the
Burlington was almost immediately
followed by the merger, of which the
Government complains.". : .
The Attorney General then detailed
the facts connected with the Burling
ton Durchase and the organization of
the Securities Company, and, in con
cluding his presentation of the evo
lution of the Securities Company, said:
•"These facts clearly establish that it
is an instrumentality created to control
the Northern Pacific and Great North
ern roads, and, through their owner
ship of the Burlington, to control that
road likewise."
Continuing:,' Mr. Knox said
The Attorney General gave a detailed
account of the attempt to secure con
trol of the Northern Pacific road, as
shown in the case of Pearsall vs. the
Great Northern road. Morgan, he said,
knew of this attemnt. sympathized
•with it, and assured Hill that if he
failed they could work the two rail
roads in harmony.
General Young* Proposes the
. Formation of Divisions in
Various Parts of Country
After January First Reduc
ftpijs of From Five to Twenty
Per Cent Will Be Made
Wife of a Portland Merchant
Loses Two Thousand Dol
lars' Worth of Costly Gems
Fort Dongflas Soldiers . Prepare
Rope for Comrade Who \u u \
Attacked a Young Woman
.Meeting- Called to Urge Refer
endum on Question of Labor
Is Captured by Opponents
Argument Is Begun by Contending Counsel on the
Northern Securities Company's Appeal From an
Adverse Decision by a Minnesota Federal Judge
THIEF TAKES
HER DIAMONDS
NEW ARMY PLAN
IS SUGGESTED
STEEL COMPANY
TO CUT WAGES
LIKE COOLIES
IN TRANSVAAL
OFFICERS SAVE
PRIVATE'S LIFE
SUPREME COURT OPENS
MERGER CASE HEARING
THE SAN FRANCISCO GALt, TUESDAY/DECEMBER 15, 1003.
"Jack" Reis was one of the most
popular clubmen In this city. The
organization in . which he took the
2
A Guaranteed Cure for Files.
Itcblns, Blind. Bleeding or Protruding: Piles,
four drucsist will refund money - If' Paia
Olstment fails to curt you m C to 14 days. &0c*
ADVERTISEMENTS.
j^^^^^'^^^^^^HHHHh^' : •- ihe Imperial and Royal Notarial and .United States Consular verifications. * ' si
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plfliSill Anheuser-Busch Brewing Ass'n, St. Louis, U. S. A. to a thorough
pi™ III] l^^^K^^ Bn examination, we declare it to be a fully matured lager beer. Its whole
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Experimental Station for the Industry of Brewing, Prague, Boheraia. I
I! P&P* T^i^H l&KMl (7i3o i!p*/§JI L L v2r5^ LWAl)! '¦ _ ' I hereby certify that Mr. Jaroslav Sula is personally known to tne as the Official Chemist " I j
MWfji iKVw iS I A tgl h^L %5wJ ** Experimental Station for the Brewinz Industry of Bohemia, and has this day executed .. .. ifjj
kv&y5§S^««'*^g-tf\ \<E^\. v^X^'/W*?/ l$$!&ixitoZ~**xS/M ' Bn< * s '* ne< i t ' Je above document in my presence. Prarvsc. November the third, nineteen hundred and tbr«e. « I
11&PT™ xg|!«g!g2g^ r^0itii I certify that the foregoing authentication is under the official seal of J. U. Dr. Johann Slamenik, j
k|^^L/ y CH/^ j/ffiffl§m Imperial and Royal Notary, and is entitled to full faith and credit. In testimony whereof I, Arnold j j
Weissberger, Vice and Deputy Consul of the United States of America, have hereunto subscribed [ |
I Rip xu^a&iuJj&&fe n/ -(rfWrn' i my name and caused the seal of this consulate to be affixed. Done in this city of Prague this | !
lillP!* °rfrl/, f third day of November, 1903. Arnold weissberqer, u. s. v. a d. contui. I
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