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The Saint Paul globe. (St. Paul, Minn.) 1896-1905, April 21, 1903, Image 1

Image and text provided by Minnesota Historical Society; Saint Paul, MN

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn90059523/1903-04-21/ed-1/seq-1/

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VOL. XXVI.—NO, 111.
TKyC\t> yi Jr^ ° Tl SI /f^Tl <sTT a -
Appeal of Northern Securi
ties Company From the
Kecent Decision of the
United States Circuit Court
of Appeals Is Filed —
Thirty-Four Points of
Error Are Assigned.
+ The case of the United States ♦
♦ against .the Northern Securities ♦
♦ company, the Great Northern Rail- >
+ way company, the Northern Pacific ♦
+ Railway company, James J. Hill, +
+ William P. Clough, D. Willis James, +
+ John S. Kennedy, J. Plerpont Mor- +
4 gan, Robert .Bacon, George F. +
+ Baker and Daniel Lamont, In which ♦
4 the defendants were charged with
♦ violating the Sherman anti-trust ♦
♦ act, was commenced March 10, ♦
+ 1902. Special Examiner Frederick
+ G. Ingersoll heard the evidence, •♦
+ taking testimony In St. Paul, New 4t
York and Washington. The case ♦
was tried befcre .Circuit Judges ♦
Thayer, Caldwell, Sanborn and Van +
+ Deventer at St. Louis in March, a ♦
decision in favor of the govern-
4 ment being handed down April 9.
♦ In the appeal from this decision *
♦ taken yesterday the defendants al-
+lege thirty-four assignments of er- +
♦ror In the findings of the court, and ♦
♦ ask for a dismissal of the suit. ♦
♦ ♦
The Northern Securities company
yesterday filed with the clerk of the
circuit court in St. Paul an appeal
from the decision of the United States
circuit court of appeals in the case of
the United States against the North
ern Securities company and other de
fendants, in Which thirty-four points
of error are alleged.
The defendants pray that for the er
rors cited, the decree may be reversed
by the United States supreme court,
♦ ♦♦♦<»♦♦♦♦♦♦♦♦♦♦♦♦♦♦
♦ ♦
♦ ♦
+ NEW YORK, April 20.—North- +
♦ em Securities shares sold off to ♦
♦ 94% c early In the day, but Just ♦
♦ before official news of the decision ♦
♦ reached this city the market turned ♦
$ and the stock sold up to 99%. Rep- ♦
♦ resentatives of the Securities com- ♦
♦ pany expressed much pleasure over +
♦ the news. +
♦ Col. Clough. general counsel and +
♦ first vice president of the company, + i
+ said the modification of the decree ♦ '
+ removes all obstacles to the carry- +
♦ Ing out of the company's regular ♦
♦ business, including the payment of ♦
♦ dividends. " ' <►
♦ ■ ♦
and that the circuit court be directed
to decree a dismissal uf said petition
and proceeding.
Accompanying the appeal was a bond
for $50,000, signed by the National Se
curities company.
The appeal is signed by all of the
attorneys representing the different de
fendants to the suit.
The errors assigned by the defend
ants are given in full, as follows:
First—The -court erred in finding and
d< ciding that in the summer of 1901 cer
tain larg-e and influential stockholders. of
the defendant railway companies con
ceived the design of placing a very large
majority of the stock of both of said com
panies in the hands of a single owner.
And erred in finding and deciding that the
stockholders thus described hail practical
control of the roads of the two defendant
railway companies.
Second—The court erred in finding and
deciding that said above described share
holders arranged and agreed with each
other that a corporation to be formed by
them under the laws of New Jersey should
buy all, or at least the greater part, of the
stock of each of the defendant railway
Third—The court erred in finding and
deciding that the above described stock
holders agreed with each other to ex
change their respective holdings of stock
in the two defendant railway companies
for the stock of such New Jersey com
Fourth—The court erred in finding and
deciding that the above described stock
holders agreed with each other to use
their Influence to induce other stockhold
ers In their respective companies to ex
change their respective holdings of stock
In said railway, companies for the stock
°^f ucllx. N?^^ ersey company, and in de
ciding that this was to the end that the
.New Jersey company might become the
Bole owner of the whole or at least a
major portiJn of the stock of both of said
railway companies.
Fifth—The court erred in' finding
and deciding that the Northern Se
curities company was organized un
der the plan mentioned in" the fore-
Rolng assignments, and in finding and
deciding that the capital stock of
$400.0007000. with which the Northern Se
curities company was organized, was the
exact amount required to purchase the
telal stock °/*! he two defendant railway
companies at the price agreed to bo paid
_ Sixth—The court erred in finding, and
deciding that when the Northern Securi
ties company was organized it assented to
and became a party to the above men
tioned scheme so found by the court as
aforesaid to have been devised by its
promoters. y ua
Seventh—The court erred in finding and
deciding that the Northern Securities
company was enabled to make purchases
of stock of the Great Northern Railway
company from holders thereof not immed
iately concerned in the organization of the
.Northern Securities company, by the fld
vice, procurement and persuasion of those
stockholders of said railway company
jvho had been instrumental In organizing
£A°l them Securities company? ■
Lighth—^The court erred in finding and
deciding that the scheme so as aforesaid
erroneously found by it to have been de
}teed fai consummated, placed the con
trol of the railways of said two railway
companies in the hands of the Northern
Securities company, and destroyed every
motive for competition between said two
railway companies by pooling their earn
ings for the common benefit of th" stock
holders of both railway companies- and
erred in finding and deciding that any
such, or any pooling of earnings was
CV$ n Ct?, nte# plated or has ever bee?made
-, .?, tn ~lhe cour t erred in holdin" ■ %n <i
deciding that all contracts ami combi
nations which merely tend to restrain In
terstate commerce, whether by sunures
*ion of competition or otherwise a?e?n
themselves, and although such tendorcv
does not result in any such restraint vio
latkms of the act of congress of July
1890. known as the anti-trust act "
Tenth-tThe court erred in holding and
deciding that all contracts_and eombina-
Continued on Sixth Panel "
Judge W. H. San born Modi
fies the Decree of Circuit
Court of Appeals by Per
mitting the Northern Se
curities Company to Pay
a Dividend iv May Pending
the Appeal.
; ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦
♦ it Is ordered, that upon the glv- ♦
♦ Ing of an approved bond to the +
♦ United States by or on behalf of..^
♦ the defendants In the sum of $50,-..+
♦ 000.00 conditioned to prosecute their +
♦ appeal with effect and to pay all +
+ damages which may result to the ♦
<>• United States from this order, that ♦
♦ portion of the -Injunction con- +
♦ tamed In the final decree herein +
♦ which forbids the Northern Pacific ♦
+ Railway company and the Great ♦
♦ Northern Railway company, their ♦
♦ officers,' directors, ' servants and +
♦ agents from paying dividends to the +
♦ Northern Securities } company on *
♦ account of stock In either of the +
♦ railway companies which the Se- +
♦ curlties company claims to own ♦
♦ and held is suspended during the +
♦ pendency of the appeal allowed +
♦ herein this day. All other portions ♦
♦ of the decree and of the Injunction +
♦ It contains remain in force and are <>
♦ unaffected by this order. " 4.
♦ .' . +
The foregoing order, made by Judge
Walter H. Sanborn, of the federal
circuit court, in St. Paul yestej-day,
modifies the final decree of the circuit
court of appeals in the case of the gov
ernment against the Northern Securi
ties company, to the extent that the
Securities company is permitted to pay
dividends pending the appeal of the
case to the United States supreme
In granting the application for a
modification of that portion of the de
cree which restrained the company
from paying- any more dividends, Jucfee
Sanborn sustained every point raised
by the attorneys for the defendant
company. The government, through
its district attorney, Mr. Houpt, op
posed any modification whatever of the
decree, contending that the court had
held the formation of the company un
lawful, and that it had no right to per
mit a continued infraction of the law.
Judge Sanborn heard the arguments
for and against the allowance of the
application of the Securities company
in the forenoon, at the close of which
he announced that he would give his
decision at noon. Promptly at the hour
Judge Sanborn entered the circuit
court room and read the decision. The
room w*s filled with attorneys, rail
road officials, stockbrokers and news
papermen, and as soon as the nature
of the order was disclosed there was a
rush for the telephones, and the news
spread rapidly throughout the city and
the entire country.
The hearing on the application was
granted at 10 o'clock in the morning.
United States District Attorney Houpt
who was the first to address the court',
objected to the allowance of the appli
cation, arguing that the suspensive
power of the court was not intended to
be used in cases of this kind. Mr.
Houpt contended that a supersedeas
bond applied only in ancillary proceed
ings where the damage that could be
inflicted on one of the parties to the
suit, by a suspension of the decree of
the court, could be measured In dollars
and cents. He argued that the appli
cation should be heard by at least two
judges of the circuit, at which point
Judge Sanborn informed the speaker
that Judge Thayer had been communi
cated with and his views of the mat
ter were in the possession of the court.
Mr. Houpt closed his argument by
contending that the fluctuation of th*
stock on the stock market should not
be considered as having any bearing
on the question.
Judge George B. Young, representing
the Northern Securities company, ar
gued that the essence of the decree
was its provision directed against the
restraint of interstate commerce. It
prohibited the Securities company from
in any way directing the operation of
the Northern Pacific or the Great
Northern railways, and from voting for
the election of directors of either of
these roads. It was the Intention of
the defendants, said Judge Young, to
obey this portion of the decree until
the matter was finally disposed of.
Unjust to Tie Up Money.
It was contended that no harm could
come of permitting the Securities com
pany to continue paying dividends.
Otherwise the money would be tied up
at a great loss to the stockholders.
Judge Young said there was at pres
ent $4,000,000 awaiting for distribution
before the supreme court could give
its decision. It would be a great in*
Justice to the stockholders to tie this
money up, and many of them would be
compelled to dispose of their holdings
at a heavy loss.
Attorney C. W. Bunn could not see
that the application was an unusual
one, nor would it change the effect of
the decree in any vital point. Regard
ing Mr. Houpt's contention that the
suspensive power of the court applied
only in ancillary cases, where damage
to one of the parties could be meas
ured in money, Mr. Bunn said the prin
ciple on which the application was
made was based on a rule applicable
in all injunction cases.
District Attorney Houpt spoke brief
ly in reply to the arguments of the Se
curities company attorneys, after
-which Judge Sanborn announced that
he would give a decision at noon.
The order of the court, given above,
was accompanied by the following
The defendants in this case have the
right under the acts of congress to ap
peal from the decree of the circuit court
to the supreme court. They have claimed
that right. Ordinarily those who have
the right to review a judgment or de-
Continued on Sixth Page.
British Opinion Is That
Tremendous Struggle
Is at Hand.
Special Cable to The Globe.
LONDON, April 20.—British com
mercial men believe the nations are
on the verge of a Titanic battle of tar
iffs. They say that the spirit of eco
nomic warfare most recently illustrated
In the case of Canada and Germany is
spreading, and that all conditions exist
for its indefinite extension. The tariff
as a weapon of international rivalry,
they assert, has never been fully test
ed, and commercial peace is certain
to rest on an insecure foundation until
that test has been made and the great
trading countries accept the results.
"Germany is stirring up a hornets'
nest." said Kenrick Murray, secretary
of the London Chamber of Commerce,
today. "The agrarian population has
got the upper hand in the legislature
and is driving the nation to throw
down the gauntlet to the whole outside
commercial world. The row with Can
ada is a small fraction of what is com
ing. Germany's threats to retaliate on
the Canadians is mere bluster. For two
years it has taken the Dominion's food
stuffs, and what more can it do? The
Canadian position is perfectly sound
and square, and that of South Africa
gratifies all the Britains.
"Like Great Britain, Germany must
import a large percentage of its food
stuffs. The higher it raises its tariff
the worse for the German consumer.
The moment the new duties become
effective they will shut out French
wines and silks, and a bitter fight will
ensue Jn that quarter. Russia also is
prepa/lng to retaliate, and how many
other complications will spring from
the agrarian tariff time alone can re
It Is expected that the Anticipated
tariff war will result in a general re
adjustment of international trade, re
lations and a momentous shifting of
markets. It is thought, however, that
when this commercial war has been
found insupportable on account of its
expense, commercial reasons will re
assert itself and trade will speedily
return to its old natural channels.
BERLIN, April 20.—The Taglische
Rundeschau says it learns authoritat
ively that Germany will enact reprisals
against Canada on account of the ac
tion of the Dominion government in
Imposing a surtax on German goods.
The paper adds that all the political
partisans condemn the step taken by
Canada, The agrarian organs declare
that the British government is the real
author of Canada's behavior, and they
advise retaliatory measures against
Great Britain.
Gould's Turbine Yacht.
NEW YORK, April 20.—George
Gould's new turbine yacht Emerald,
chartered from Sir Christopher Fur
ness, has sailed from England. The
Emerald is the first vessel fitted with
turbine machinery that has ever at-
Weather for St. Paul and vicinity: Fair
Today and tomorrow.
Legislature adjourns, with senate and
house blaming each other for failure to
pass tax amendments.
Senator Schutz and his following again
defeat senate "educational" combine and
kill Perley bill.
Inheritance tax bill dies in the senate
on attempt to suspend rules for its pas
National Lumber Manufacturers' asso
ciation meets in Washington.
Eight people are killed and others in
jured in collision on Erie railway.
Executive boards of three districts of
United.. Mine Workers consider hitch that
has arisen over nine-hour day in anthra
cite region.
Swedish relief funds are reported as
large as needed.
Tariff war of world scope is expected.
William Weinand almost instantly killed
by electric car on the Stillwater line.
Rehearing will be asked by the board
of public works in assessment case.
Board of waterworks will probably re
sume damage suits against street railway
company, to compel the company to adopf
double trolley system.
Twelve new patrolmen added to the po
lice force. •
County bonds bring less than face value
after commission for sale Is paid.
West Side will ask for a new bridge
over the Mississippi river.
Ore smelting tests in St. Paul which
prove value of titanic ore.
Frank Barbeau, who pleaded guilty of
running a disorderly house, is fined $100.
Minneapolis flour mills will resume the
pinding of wheat today, though no change
in transportation rates has been made.
Mayor A. A. Ames again becomes a
-resident of Minneapolis.
WTieat has strong.undertone and closes
at advance. Corn is also higher and oats
are unchanged.
Stocks close higher, after considerable
irregularity and hesitation. Action of
court in Northern Securities case has
powerful influence.
National League: Boston 4, Philadel
phia 3; Boston 7. Philadelphia 10; New
York B, Brooklyn 5.
American League: Boston 9, Philadel-.
phia 4; Boston 7, Philadelphia 10.
McGovern and Atell are to have a
twenty round bout at San Francisco.
Senator Elkins, author of the famous
trust-busting measure, is sued by man
who helped him secure control of
Western Maryland system.
Western traffic men allow Omaha differ
ential grain rates to Gulf coast.
President Baer, of the Reading com
pany, must testify before the interstate
commerce commission.
Yellowstone National park will v open
June 1 and railroads expect large ex
cursion traffic during the coming- sea
tempted to cross the Atlantic Her di
mensions are: Length over all *36
feet; beam. 26 feet 8 inches; moulded
depth, 18 feet 6 inches. She has three
sets of steam turbines, each driving
on e length of shafting and five mann
nese bronze propellors— one propeller
on the center shaft and' two each on
the side shafts.
Mrs. Lewis M. Rutherford, Daughter of
Oliver Harriman, to Be the Bride.
NEW YORK, April 30.—The Tribune
tomorrow will say that having receiv
ed permission to remarry by a special
order of. the supreme court, William X
Vanderbilt will wed a week from to
morrow in London "a young American
widow," to whom h^ has been paying
much attention, and 'this young widow,
in the opinion of those who are in a
position to follow closely Mr. Vander
bilt's affairs, is Mrs. Lewis M. Ruther
ford, daughter of Oliver Harrimtin.
Mrs. Rutherford is In Paris and Mr.
Vanderbilt has been much in her com
pany there. This would be her third
marriage and his second.
(For further details, see page 7.)
Another Chapter in the Porto Rican
Smuggling Prosecution.
SAN JUAN, Porto Rico, April 20.—
Chief Hood, of the internal revenue de-
I artment, has sworn out warrants be
fore a justice of* the peace for the ar
rests of Capt. Andrew D.unlap, U. S. N.,
commandant of the naval station here;
Commander G. W. Mentz, U. S. N.; P.
V. Mohun, paymaster, U. S. N., and
Robert Giles, for bringing in liquors
from the Island of St. Thomas on the
Pfghthouse tender Laurel, on Dec. 4,
1902, without paying the duty thereon.
Giles has appeared and was held under
$1,000 bftnd for trial before the insular
district court.
What, the Thirty-third
Legislature Has Done.
♦ . . : '/; .-.-.. ■ . «
♦ The session cost $170,000. 4.
♦ . >- The house worked seventy-seven 4 days.
♦ . The senate" worked- seventy-three days. a
♦ -The house revived 915 bllla; v , " ♦
♦ The. senate received 582 bills. '*__;„_ 4,
_ Ninety per. cent of all the bills were local or curative. +
♦ Only one In four of the bills introduced will receive the signature of +
♦ the governor and become law. >>
♦ ..... ■ *- . _ ' --—iw..., . ♦
♦ By the omnibus bill, $3,173,373. ' • • 4
+ $250,000 for the state agricultural school by a special tax levy. ' +
♦ $5,000- for a-state house inltasca State Park. . +
♦ $50,000 for state drainage works. •*■*■■ +
♦ $36,000 for farmers' institute. . «
Jsl,soo,ooofor completion of new state capital to be raised by special +
tax levy. , J
I '.♦ <j> $60,000 annually for the national guard. 4.
J $61,050 for roads and bridges.. 4,
: $500,000 for the state university. 1:-- • *
♦ ,'■•■.■'. ♦
♦ - STATE: , +
♦ Increased salary of attorney general to $4,800 per year. +
♦ »~ ■ Increased salary of superintendent of public instruction to $3,500 per +
♦ _ year. *
, ♦ „., Took fees for.«xamination of building and loan associations from ♦
♦- j personal emoluments of -üblic examiner. +
♦ -.;»>. Gave state auditor $3,000 pef year for supervision of ore output on ♦
♦ '- : state lands worked under contract for lease. +
'♦^ ■'•wf*'Created a state 5 live stock sanitary board. - «
♦ :•; : v-v: ■. : • ■■, • . ■ ... J
'♦.;_- • CORPORATIONS: *
'♦.'"'n,*, Prohibited the consolidation of capital stock, lines, property, fran- +
! ♦ chises. control or: power of control of parallel and competing lines of #
• ♦ railroad. "
(♦££': , 5: ... Prohibited sale of kerosene, gasoline or benzine in quantities less than +
♦ ' six gallons in other than red cans after July 1. *
<♦'.:., - ♦
♦ Legalized St. Paul armory bond Issue. 4
,♦ . Authorized Improvement of "White Bear Lake by Ramsey county +
♦ commissioners. . '. ' . -^
♦"" ' Provided for the election of vice chairman of the Ramsey county +
,♦ commission.. " * "
♦ Provided for expenditure of 25 per cent of Ramsey county road and +
■_}♦: bridge fund within St. Paul city limits. +
♦ Increased salary 'of judge of probate to $4,500 per year. *
I♦l >f i Increased salary of county attorney to $4,500 per. year, assistant +
..♦ county attorney to $2,700 per year. A
♦ Authorized the Issue of $600,000 worth of bonds for permanent im- +
, ♦ -provements and provided a sinking fund for the liquidation of municipal +
♦ debt. •
• ♦•*,*... Authorized expenditure of $30,000 for macadamizing street intersec- +
♦ . tlons in improvement of West Seventh street to Fort Snelling. *
♦ ' Provided a new method for the selection of petit jurors. +
♦ '•"•. ,": 0 • X
♦;.,„,, . Resubmitted per cent gros3 earnings proposition. '*
♦ Fixed the ma*imum state tax rate at one mill. +
'♦' '/ 'Exempted fraternal insurance societies. . ■ 4,
„-♦ ■"■ " ; v.-- ■■■■ -- ■- ;-/. V■ ■ ... .- .;. 1
♦ri ! '. ELECTIONS: " ■ +
♦ Memorfellzed. congress for a constitutional - amendment permitting +
♦ popular election of United States senators.
•■;♦■.•'■—.. Authorized transmission of election returns by registered mail. +
♦ . Provided for the submission of constitutional propositions on separ- *
♦ ,—r- ate ballots.. . /• v.^V- :; ■-" ._ • • J
♦ ■ Prorided for conventions for parties casting one per cent ♦
"♦- of the whole vote. -^ ._■,.',:■/.' . . . «
♦ ■ ■• ' » - +\iT-U..~5 ._,..;J ..-.— ' ~
.♦ . '~'.: j \ CONSTITUTIONAL: . £
♦ . .Passed, Laybotirn bill for an : amendment making relegation of grand +
♦ . Jury system possible. "fO- _>>--?.. .'
♦ I
♦ > -, ..[ . INVESTIGATED: J
♦ : State capitol commission and commended Its work. ."•'■.,. a
♦ Public examiner. . ~ '.'" ----/; ,-- _,_
'♦ - ; Ex.ecu.tlve agent game; and fish commission and recommemled radical " >
• ♦ -^* changes in conduct of office. ~\~ •"-"•>-.-. ; ', ; :.. •'" ~ ♦
.♦ - . State treasurer amd approved his work. - .■> ":'"; • . '•.
♦ /»- State auditor approved Dunn's conduct of office. - *
♦ Minneapolis Chamber of Commerce. - '
♦ x Convict labor.contract system employed at Stillwater. «
; ;; State board of health. - , - ' ■ Z.
♦ . , GENERAL: ;
♦ Provided for \ regulation of hotel and fire escape construction. ■ a
♦ Authorized municipal courts in villages of from 2,000 t0.3,000 popula- *
♦ tlon. '; ,".'■ •" ' v . -
•♦ -: Abolished days Of grace. ■•-.- ": ... .'. •■' • T
♦ ■ '-■ Passed a .compromlse ? antl-c'6mpuisory vacrination law. *
♦ ■ Codified state librarj- laws. -^.... - • * T
♦ Authorized park boards in cities of 10,000 or less to acquire lands by V
♦ ' condemnation. '" ;: '- \.;:~ j~~y l:~ . ■•' ' ■ V' T
f♦ - Added acres to Itasca State Park. -. • ;~ ~\; ■ "-J
♦ - Re-enacted" a' tree bounty law. . '.'.*":: .
_ ♦ ■■■ Passed a covered patrol wagon law" for Duluth.* - " -^
♦ Authorized village councils to grant street car franchfsos. a
♦"''. Authorized city Df Duluth to operate a municipal heathig and light-' X'
4 " Ing plant. "X
♦ Raised horse thief bounty to $200. — - ■ . T
♦ . Limited the term of office of fieid and general, officers of national X
4 • guard .toNten^yearsr . ?'■•',' T
♦ Fixed-fourteen hours.per day as a maximum for the employment of *
>_ locomotive engineers and firemen.- . -. '. J. . ' T
♦ . / Provided-an additional'judge for Fourteenth' district. ' S-X
_♦. ' . Providedian additional Judge for Fifteenth district. •* -"'. ■ .. ;■ T
' ♦ _~~ Fixed a wolf bounty at $7.50 for full grown; wbrves and ~ $1.00 for X
.^ cubs. •.;.~' ' . '■. '"£ ■'•■-■'-*•"•"*. .-■■-i\^..-\ ■- -"- " •'■-■ '"*.•- ■• -X
.. ♦, / -■: 'Passed*a, free text book law. -,-.,.'..'■ • " ■„ • • ' -._.' ■".. „;?•'■
♦ Passed a law regulating' trading stamp cbusiness ,i • ii-,'-'—^ '- -■' :T^
♦♦♦♦< -- i - ♦♦♦♦♦ -'" irV^.-^^^?v*v.^^-f ♦,
Holds Them While Her Com
pany Gets Away With
Imperiled Baggage.
Special to The Globe.
HAMMOND, Ind., April 20. — Dot
Ward, a clever soubrette with Lyman
Bros.' "Merry Chase" company, saved
the owners of the show from a night
in jail and the company's scenic ef
fects and baggage from attachment
last night at the Towles opera house
through a clash in dates. T. E. Bell, a
rival opera house manager, tried to
enjoin the performance. Failing, he
tried to attach the box receipts, and
failing again, he attached the baggage
and hired a squad of husky constables
to get the goods.
They were perched in front of the
curtain when the stage manager sent
Miss Ward to sing and dance in the
first street scene, near the close of the
last act. She played only to the con
stables, who were so busy watching
her that they let the company and
baggage get away across the state line
Into Illinois. The audience hooted at
the constables' discomfiture.
Famine Killing Tens of Thousands of
People in China.
HONGKONG, April 20. —The famine
in Kwang Si province Is killing tens of.
thousands of persons, and women there
are selling 1 themselves into slavery to
escape starvation. The American con
sul at Canton has inaugurated a relief
After Repeated Attempts to
Reach a Compromise the
House Closes Its Last
Working Session While
the Conference Committee
Is at Work and Blames
Senate for Death of the
No tax amendments will be submit
ted to the voters at the next general
election. "With a committee on con
ference out at work trying to settle
the house and senate differences on
the wide open policy, the house ad
journed just at midnight.
The responsibility for failure to sub
mit constitutional amendments provid
ing for a revision of the state's tax
policy must be charged to the senate.
Five times yesterday the house re
fused in no uncertain terms to accept
any part of the responsibility for sul
mitting to the people an emasculated
set of proposed amendments providing
a tax policy.
ffarly In the morning session the
original conference committee of the
house recommended to the house that
it accede in the senate amendments to
the house bill which contemplated the
so-called wide-open policy, which, in
fact, meant placing the subject of tax
ation in the hands of the legislature.
Report Raised Storm.
The committee recommendations
raised a storm of protest, and so ugly
was the house that it refused for a
long time to permit Mr. Armstrong,
spokesman of th% committee, to explain
why his committee had receded from
the house position. Before it per
mitted him to explain It laid the re
port on the table by an overwhelming
vote and then took It from the table
only to discharge the committee.
Mr. Armstrong said that while he fa
vored the wide-open policy, he and his
colleagues, managers of the conference
on the part of the house, had discover
ed that the house bill could not get
through the senate, and that the senate
bill must be passed or no amendments
proposed to the people.
Senate Criticised.
Representative George R. Smith
opened the flood of reproach which
was poured on the senate. He said the
attempt at agreement might as well be
given up at once. There was no hope
for the submission of rational tax
amendments during the life of the pres
ent senate. It had, he »aid, thwarted
the will of the house, and the people
and would defeat every tax proposi
Representative Tighe roused the
house to repeated storms of applause
by roundly scoring the upper house.
He said:
"I believe we should put the blame
on the shoulders of the senators where
it belongs just as conspicuously as we
can. Not a constructive measure has
passed the house that has not been
destroyed or emasculated by the sen
ate. In this matter we had better go
down with our colors flying."
Representative Shearer said he was
slow to attribute sinister motives, but
the senate course with reference to the
tax amendments looked bad. He said:
"This bill was held in the senate com
mittee six weeks. It Was evidently their
intent to defeat it, and they have de
feated about the only thing we were
sent here to do."
Second Committee Named.
A motion to concur in the senate
amendments was overwhelmingly de
feated. The speaker appointed Messrs.
Hinton, Wilson and Claque a second
committee on conference. This com
mittee returned late in the afternoon
and announced it could not agree with
the senate committee and asked that
it be discharged.
Representative Stevenson asked that
another attempt be made. He said that
he had conferred with the governor.
His excellency wanted something done.
According to Stevenson, Van Sant did '
not approve of the senate plan, but j
thought that some sort of amendments
must be submitted or a popular storm
would result. The senate policy, though
bad, would be better than none at all.
The result wa,s the appointment of a
third committee of six members on the
part of each house.
A Third Fails.
This committee agreed with three
members of the senate committee in
favor of the house bill, but the senate
refused to receive the report on a valid
point of order raised by Senator Som- !
erville. Only half the senators agreed j
to the majority report, which, Senator j
Somerville contended, must have tho j
indorsement of a majority of the con
ferees for each house.
The fourth committee returned, three
of the house managers signing a rec
ommendation for accession to the sen
ate amendments. Mr. Helliwell raised
the same^oint of order, which resulted
in the discharge of the preceding com
mittee. The speaker held that there
was no report before the house. The
fight for the appointment of a new
committee nearly threw the house into
a riot and came perilously near caus
ing Representative Armstrong to punch
the head of a member from Long
Bill for State Board of Examiners
Passes the Senate.
The Stevenson bill licensing osteo
paths and creating a state board of
osteopathic examiners was passed in
th* senate yesterday afternoon by a
vote of 34 to 16. Dr. Cole and Dr.
Cowan opposed the bill but Senator
Horton insisted that the measure did
not Interfere with the regular physi
cians in the least. The senator from
Ramsey insinuated that a number of
the medical fraternity were laboring
under the impression that medical laws
were passed for their benefit when In
fact they were the protection of the
general public.
Senator Coller recited a personal ex
perienoe and after rejecting the
amendments of Senator Cole the sen
ate passed the bill.
Senate Empathically Denies
Responsibility for Failure
to Adopt Tax Amend
ments Before Adjourning
—Senator Morgan Refuses
to Allow the Upper House
o Be Made the Scape
After filing an emphatic refusal to
accept the responsibility for the failure
to adopt the bill calling- for a revision
of the state's tax policy, the senate ad
journed at 12:30 o'clock this morning
*our times during the evening the
upper house checked Its work of push
ing through belated house bills to lis
ten to managers appointed on the part
of the senate report that they could not
agree with the managers appointed by
the house in an attempt to reach an
agreement relative to the amendments
to the tax policy bill, and each
a new committee was named by the
The fourth protest of failure came a
tew moments before li: o'clock, and for
a tune it looked as though the i
would decline to accept the offer of an
other conference. Senator Eiorton and
several other senators objected t.> any
further argument, but the good ludg
ment or Senators Lord and Thompson
prevailed, and the senate again voted
to appoint a committee to discuss the
With the pommlttee appointed the
upper house voted a receoa of fifteen
minutes, but five minutes later I
dent Jones rapped the senate to order
and work wag resumed. Word had
reached the senate that tho house
adjourned, but this report was ig
nored, as was the fact that the tax
polk-y bill was still being discussed and
the passage of bills was resumed.
A motion to adjourn until this morn-
Ing was made, and then the senate pro
ceeded to wash its hands of the tax
policy measure, it was Senator Th<
son's turn to call forth a bill for pass
age, and the senator from Fllhnore
moved that the ru!es be suspended and
the tax policy bill be passed with all
of the amendments sidetracked. '
This motion started trouble.
Senator Morgan secured the floor and
filed an emphatic protest against any
Plan to throw the bill onto the senate.
He declared that the upper house had
consented to every request for a < -in
ference and that the tsenate committee
was supposed to be busy with the
house committee considering the dis
puted points.
He called attention to the fact that
the house in adjourning had adjourned
for but one pun>os«, s nd that to throw
the responsibility for the failure to
adopt the bill onto the senate. He de
clared the measure was in the hands
of the house, and until reported to the
senate by the proper officer of the
house, the senate had no right to act
upon it. The senator from FteebOTO
closed by raising the point of order
that the senate had no right to con
sider the bill.
Senator Wilson reported that the
bill had been handed to him by one „f
the house members, but Senator Mor
gan maintained that Senator Wilson
could only hold the bill as a private clt
izen. Senator Calhoun repeated the
point of order made by the senator
from Freeborn. and President Jones
held that the bill belonged in the house
and could not be considered by the
senate until reported to the upper house
by the proper c"fker of the lower
The decision of the lieutenant gov
ernor ended tho discussion, and as
the several senators still on the list
declined the privilege of calling forth
bills, the senate adjourned until 11
o'clock this morning.
Defeated Inheritance Tax.
While conhidering the bills called UP
by the senators the senate remained
in a serious mood and wasted but little
time in disposing of the measure*
The first fight came with the report
of the conference committee appointed
to consider with the house* committee
the amendments to the Inheritance tax:
The report suggested a reduction of
the amount of exemption from $10,000
to $5,000. Senator Thompson explain
ed that this allowed an exemption of
$5,000 for each heir, and argued that
this was more than allowed by any
other state, but Senator Schaller re
fused to accept these arguments.
The senator from Dakota declared
that it was too hard to compel a man
to pay taxes on his earnings all his
life and have the state reach down
into the pockets of the widows and or
Senator Morgan declared that the
senate should not be bulldozed Into
passing the bill by the ar'rument that
it was the best thing possible and
thought It bad form for the state to
appear ready to grab everything in
The motion to suspend the rules
and allow the bill to come up for pas
sage was lost, L' 9 to 28.
University's Friends Lose.
The last chnnre of the state uni
versity to get out from under the
board of control went by the board,
when Senator Comstock used up his
privilege.and called up the Perley bill.
Senator Bchultz, who led the fight
that ended the Comstock measure
explained that the Perky bill was a
duplicate of the killed bill and urged
the senate to waste nj) time on the
The senator from Lyon declared that
the Comstock bill had been killed by
thirty-thret; votes and insisted that any
change of votes would compel him to
believe that the persistent lobbying of
the state university and agiicutural
school haJ accomplished something.
"These double paid employes of the
state," Baid Senator Schntx, "have been
here for the past two weeks lot :
for this bill. If there Is not enough
work to hold them at their
employment they should be dl
Tht-y have no business he< c.'"
Senate* Schaller, in * sarcastic
*jn-e. h, railed attention to the i
Continued on Fourth Pa-^e.

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