Newspaper Page Text
THB MORNING Jlltwt,
J. H. ESTILL, President,
i ntnbilshed WBO. - - Incorporated 188*.
SUPREME COURT SAYS
NORTHWESTERN LINES
CANNOT BE MERCED
Government Wins the Famous Case of the Northern
Securities Company.
proposed Merger Held to Be Illegal—lt Would Be in Re
straint of Trade and a Violation of the Laws of Inter
state Commerce—Anti-Trust Law’s Constitutional
ity Upheld—Four of the Nine Justices Give
a Dissenting Opinion.
Washington, March 14.—1n the United
States Supreme Court to-day an opin
ion was delivered in the merger case
of the Northern Securities Company vs.
the United States in favor of the gov
ernment’s contention that the merger
wins illegal. The opinion of the court
was handed down by Justice Harlan
and it upheld the decree of the Circuit
Court for the district of Minnesota in
every particular. Pour of the justices
dissented from the five constituting the
majority.
.The division In the court was due to
a difference of opinion as to the right
of federal control of state corporations.
The majority opinion proceeded on the
theory that Congress has a right under
the constitution to control interstate
commerce, no matter by whom con
ducted, while the minority, or dissent
ing, opinion, was based on the theory
that in the present case the effort is
to regulate the ownership of railroad
stocks by state corporations, and that
such ownership is not interstate traf
fic.
An effort was made by the court to
prevent knowledge of the fact that the
opinion w'as to be rendered to-day from
getting to the public, but nevertheless
it was quite generally understood
among the newspaper men, attorneys
and others for an hour or so before the
convening of court to-day that the de
cision would be announced. When,
therefore, the members of the court
filed into the chamber at noon they
were met by an expectant crowd, which
filled every seat both inside and out
side the bar.
Seated among the attorneys were At
torney General Knox and Secretary
Taft, and an unusual number of sen
ators and members of the House of
Representatives. There was no sur
pris manifested wheti, promptly on the
assembling of the court, Justice Har
lan began the delivery of the opinion.
- he fact that he had been selected for
the preparation of the document at
once led most people to conclude that
the decision would uphold the Shemfan
anti-trust law and sustain the conten
tions of the government. The justice
read his opinion from a printed copy,
which covered thirty pages, and con
sumed about an hour and a quarter in
its delivery.
Clnse Stia vo for Government.
Very soon after Justice Harlan had
concluded his presentation of the case
it became evident that the court had
divided on the questions at issue, and
ns other opinions were announced it
developed that there not only had been
a very close shave for the government,
but that one of the members of the
court who cast his vote with the ma
jority entertained opinions of his own,
which fact rendered the division all
the more marked and interesting. This
was Justice Brewer who, while he
concurred in the result, announced in
an independent opinion of his own that
he held the view that previous anti
trust decisions had been more sweep
ing than was justified.
I'our of the nine justices dissented
f fright. These were Chief Justice
I- ler and Justices White, Peckham
tf til Holmes. Dissenting opinions
were' delivered by Justices White and
Holmes. The opinions of Justices Har
lan and White were long, while those
°f Justice Brewer and Holmes were
comparatively brief. All told, the court
consumed two hours and three-quar
ters in disposing of the case.
The fact was noted by several per
sons that the argument in the case
was begun Dec. 14, just three months
previous to the decision. For so im
portant a case this is considered a very
bnef interim between the hearing of
arguments and the decision.
The case decided to-day was brought
by the United States against the
Northern Securities Company, a cor
poration of New Jersey; the Great
Northern Railway Company, a corpor
ation of Minnesota; the Northern Pa
cific Railway Company, a corporation
of Wisconsin; James J. Hill, a citizen
of Minnesota; and William P. Clough,
U Willis James, John S. Kennedy, J.
Pierpont Morgan, Robert Bacon,
George F. Baker and Daniel Lamont,
citizens of New York.
Its general object was to enforce, as
against the defendants, the provisions
the statute of July 2, 1890, common
ly known as the anti-trust act and en
titled "An act to protect trade and
anmmerce against unlawful restraint
and monopolies.”
First Sentence Showed Drift.
Justice Hablan practically indicated
the decision of the court in the first
sentence of the opinion proper. In
that sentence he said;
"In our judgment, the evidence fully
sustains the material allegations of the
bill and shows a violation of the act
of Congress, in so far as it declares 11-
■ '■gal every combination or conspiracy
>n restraint of commerce among the
several states and with foreign na
|!<>ns and forbids attempts to monopo
lize such commerce.”
It was indisputable, he continued,
that under the leadership of Hill and
Morgan the stockholders of the two
railroad companies, having practical
ly parallel lines of road, had combin
*'l under the laws of New Jersey by
organising a corporation for the hold
ing of the shares of the two compa
nies upon an agreed basis of value.
Proceeding, he said;
"The stockholders of these two com
peting companies disappeared, as such,
for the moment, hut Immediately re
appeared as stockholders of the hold
ing company, which was thereafter to
guard the Interests of both sets of
"tocicholders as a unit and to man
*ge, or cause to be managed, both lines
o* railroad as if held In one owner.
* ip- Necessarily by this combination
arrangement the holding company
*
Jftofnina |?eto£.
in the fullest sense dominates the sit
uation in the interest of those who
were stockholders of the constituent
companies; as much so, for every prac
tical purpose, as If it had been itself
a railroad corporation, which had
built, owned and operated both lines
for the exclusive benefit of its stock
holders. Necessarily, also, the con
stituent companies ceased, under such
a combination, to be in active com
petition for trade, and commerce along
their respective lines, and have be
come practically one powerful con
solidated corporation by the name of
a holding corporation, the principal,
if not the sole, object for the forma
tion of which was to carry out the
purpose of the original combination
under which competition between the
constituent companies would cease.”
Preventing Competition.
He said that the stockholders of the
two old companies are now united In
their interest in preventing all com
petition between the two lines, and
that they would ‘‘take care that no
persons are chosen directors of the
holding company who will permit com
petition between the constituent com
panies, the result being that all the
earnings of the constituent companies
make a common fund in the hands of
tlie securities company upon the basis
of the certificates of stock issued by
the holding company. No scheme or
device could more certainly come with
in the words of the act, ‘Combination
in the form of a trust or otherwise * *
* * in restraint of commerce among
the states or with foreign nations,’ or
could more effectively and certainly
suppress free competition between the
constituent companies. This combi
nation is, within the meaning of the
act, a ‘trust;’ but if not, it is a com
bination in restraint of interstate and
international commerce, and that is
enough to bring it under the condem
nation of the act. The mere exist
ence of such a combination and the
power acquired by the holding com
pany as trustee for the combination,
constitute a menace to, and a restraint
upon, that freedom of commerce which
Congress intended to recognize and
protect, and which the public is enti
tled to have protected. If not destroy
ed, all the advantages that would nat
urally come to the public under the
operation of the general law of com
petition, as between the Great North
ern and Northern Pacific Railway
companies, will be lost, and the entire
commerce of the immense territory in
the Northern part of the United States
between the Great Lakes and the Pa
cific at Puget Sound, will be at the
mercy of a single holding corporation,
organized in a state distant from the
people of that territory.”
Control In One Man’s Hands.
He agreed with the summing up by
the Circuit Court of the results of the
combination, which was that it places
the control of the two roads in the
hands of a single person, and second,
that it destroyed every motive for com
petition between the twcf lines by pool
ing their earnings, notwithstanding
both were engaged in interstate traffic.
Entering upon an investigation of
the authorities bearing upon the case,
Justice Harlan quoted the Knight, the
Freight Association, the Joint Traffic
Association, the Hopkins, the Ander
son, the Addystone Pipe and Steel
Company and the Montague-Lowry
cases. He deduced from the consider
ation of these precedents the following
propositions as applying to the present
cases:
“That although the act of Congress
known as the anti-trust act has no ref
erence to the mere manufacture and
production of articles or commodities
within the limits of the several states,
it embraces and declares to be illegal
every contract, combination or conspir
acy, in whatever form, of whatever
nature and whoever may be parties to
it, which directly or necessarily oper
ates in restraint of trade or commerce
among the several states or with for
eign nations.
“That the act is not limited to re
straints of interstate and international
trade or commerce that are unreason
able in their nature, but is directed
against all direct restraints, reasona
ble or unreasonable, Imposed by any
combination, conspiracy or monopoly
upon such trade or commerce.
“That railroad carriers engaged in
interestate or international trade or
commerce are embraced by the act.
“That combinations even among pri
vate manufacturers or dealers, where
by interestate or international com
merce is restrained, are equally em
braced by the act.
“That Congress has the power to es
tablish rules by which interstate and
international commerce shall be gov
erned, and, by the anti-trust act, has
prescribed the rule of free competition
among those engaged in such com
merce.
Made Illegal hy the Act. ,
“That every combination or con
spiracy which would extinguish, com
petition between otherwise competing
railroads, engaged In interstate trade
or commerce, and which would In that
way restrain such trade or commerce,
is made illegal by the act.
“That the natural effect of compe
tition is to Increase commerce, and an
agreement whose direct effect is to pre
vent this play of competition, restrains
insfead of promotes trade and com
merce.
"That to vitiate a combination, such
as the act of Congress condemns, it
need not be shown that such combina
tion In fact results or will result In
a total suppression of trade or in a
complete monopoly, but it It Is only
essential to show- that by its necessary
operation It tends to restrain Inter
state or international trade or com
merce or tends to create a monopoly in
such trade or commerce or to deprive
the public of the advantages that flow
from free competition.
"That the constitutional guarantee
Continued on Fifth Page.
SAVANNAH. GA.. TUESDAY, MARCH 15. 1904.
Q wjz micAm>mo/x itm:x
VQ&T WEST PORT. THE TfSfXiS NIL FOUTAHD FCAGSTAFF EAST POET SAWPOC/OARD
OVTERHAKBQR. WHEREEDXTLWSHIPSWSXE MSAOVED EY~JAPANESE FORT
BIRDSEYE VIEW OF PORT ARTHUR, UPON WHICH CITY AND ITS IMS FENDING FORTS AND VESSELS TIIE JAPANESE HAVE THIS FAR DI
RECTED FOUR ATTACKS.
CLOSES CHANNEL
TO PORT ARTHUR
NEW MOVE OF MAKAROFF
SINKS RUSSIAN VESSELS AT THE
ENTRANCE. .
This Action Ham Two Constructions
Placed Upon It—One Is That Mark
aroff Takes the Offensive, and the
Other That He Wants to Block
the Passage for Japanese Torpedo
Vessels—Where Is the Vladivostok.
Squadronf
EVENTS IN THE FAR EAST.
It is reported that Admiral Mak
aroff has sunk steamers, almost
blocking the Port Arthur channel.
A warm controversy is on as to
whether Port Arthur has or h'as not
fallen. Preponderance of testimony
seems to show that the Russians
still hold it.
It is declared to be the purpose of
the Russians to retire before the
enemy until they have mobilized at
least 300,000 men.
London, March 15.—A correspondent
of the Daily Mail at New Chwang says
that after the removal of the battle
ship Retvizan four Russian steamers,
the Harbin, the Hailar, the Ninguta
and the Sungari, were anchored at the
mouth of the entrance to Port Ar
thur in proper position and sunk, leav
ing only a small channel available.
Vice Admiral Makaroff having pre
viously ordered the whole fleet to re
main outside with steam up, economy
in coal being unnecessary.
This dispatch, which is prominently
displayed by the Daily Mail and which
the correspondent says is ‘‘on Russian
information,” is, if true, news of the
j - '•s*<is.i-?%3■ ?v t • 4 * \..,g^S|sj
>, *• f 1 * :/ *v ;>-'
- ~- . - -'• “ • ■•'■••' , v -ty •.. % • 'W#^?P^
tWBMWBjBB||B|ff %* ■ ,•■.* "X ■■ 4*->||\ • Bfe^EjMSl
jKsagjj-’-'- • '•-■ ■ ,■ ■ •;*.* <Wfc*glli|ißHgsfl 3pafWlaB”SSfl
/■' *t ■■' • I§*Jk /JPBifßpw PBfMBII
1, ■ '■ ♦ *;■ • S^atillOßß
••pMMRrafVSMI® n H *& ’ ••'■- • • ■ -isHPWl^ffim s S^vVsSap:
yi‘ ■ ’ ;. t „ ffa. ,S
:■ fHEffisNaP’'' 1 ,% MrX* *;'sbl£P
r **HFltB?flf ? '5- ■.• • §1 p- f-aHaMpa■'*< fshysmm
*lSi;lls ? - : - . - . - it rL MuimmmUHm ,Hs m-iiWMSi
iig4; - V ; '- /r- ' r-' -IP IS igmli
i r . ’ ttf ’ *■* V*i 'i. raj&A.; ‘ -jyßlaPg
~i" 'x|t ’jffifw i 'Jft ;>^cffi|fr , '** , M&fa' ■ W * wfy&Y flajaySfol
*£*/&* ™ |Hkl|jlEj9rcj
MSfflMm 3jj& t JHB
sgj
SI ICV ATE f OMHITTEK THAT Vfl HE A 111 Vl* V V OAMK OF IVOOT.
C. M- l)Lt#w; \, J B. Fortior# If# I*. £S McCornim; 14 W. I*. I/iliinuham 16 a. J. lloi<kirui
first importance, confirming the idea
that Vice Admiral Makaroff will adopt
•the offensive apd make a desperate
attempt to bring together Russia's
scattered naval forces or endeavor to
inflict damage upon the Japanese navy.
The story must, however, be viewed
cautiously, the only approach to con
firmation from any other quarter be
ing in a dispatch from a correspond
ent of the Dally Telegraph at Yin
Kow, which merely says:
“Vice Admiral Makaroff has issued
orders to the effect that the saving
of coal is unnecessary, but that the
big gun ammunition in the forts must
not be wasted. Evidently this ammu
nition is running short.”
There is ho other news to hand on
the subject.
The Daily Telegraph’s Tokio corre
spondent sends an unconfirmed rumor
to the effect that Japanese marines
have landed and occupied Dalny.
Was Togo Bluffingt
It may be remarked that the . Brit
ish newspaper* ail" regard Vice Ad
miral Togo’s report that he has laid
mines at Port Arthur as a mere bluff,
and they say that such a feat would
be impossible under fire. The Dally
Mail thinks that if Vice Admiral Ma
karoff closed the channel it was in
order to prevent the ingress of Japan
ese torpedo boat destroyers, as was
done at Wei-Hai-Wei during the
Chino-Japanese war.
It is a subjeot of unceasing remark
and conjecture that nothing has been
heard of- the Vladivostok squadron,
and it is beginning to be believed that
it is really inside the harbor of Vladi
vostok.
The Standard's Tokio correspondent
says that according to a dispatch from
Gen San, the Russians, are believed to
be withdrawing from the northeast
frontier of Korea and concentrating at
Vladivostok.
RUSSIANS WILL WAFT
FOR 300,000 TROOEL
Yip Kow. March 14.—The local Rus
sian authorities are apparently In
censed and manifestly much annoyed
at the solicitous inquiries of the com
manders of foreign gunboats regard
ing the projected blocking of the Liao
river before the arrival of the Japa
nese, which latter event is regarded as
Continued on Fifth Page.
TO PAY EXPENSES
OF THE RIFLEMEN
AN AMENDMENT BY BACON
PROVIDES FOR fSO,(MM) FOB NA
TIONAL GUARD TEAMS.
It In the Georgia Senator's Wish to
Have the Amendment Incorpo
rated In the Army Appropriation
Hill—His Hill Contemplates the Ex
penditure of the Fund an the Sec
retary of War May Decide Ex
pedient.
By R. M. Larner.
Washington, March 14.—Senator Ba
con has offered gs an amendment to
the army appropriation bill his bill
to promote the* afflciency of military
rifle shooting among the militia of the
various states.
Sometime ago Senator Bacon intro
duced a bill appropriating $50,000 to pay
for the transportation, subsistence
and other expenses incurred by mem
bers of the organized militia of the
various states to and from the places
designated for the National troops con
tests.
Senator Bacon’s bill provides that
this sum shaill be expended under such
rules and regulations as the Secretary
of War may prescribe, and that the
pay, subsistance and transportation be
the same as provided by law 'for of
ficers, and enlisted men of the regu
lar army. Senator Bacon expects to
have this amendment incorporated in
the army appropriation bill.
In view of the wide-spread interest
shown in target practice throughout
the country at the last national con
test, It is believed that Senator Ba
con’s proposition will meet with gen
eral approval.
Representative Livingston to-day in
troduced a bill to pay the war claim
of Willis Ramsey of Sumpter, S. C.
The claim is for $16,484 for horses,
mules, provisions and cotton taken by
the federal military forces in 1865.
CONSPIRACY CHARGED
AGAINST “BUNCH'’ M’BEE.
Wnrrnnt Allege* He find Designed
to Injure a Railroad.
Raleigh, N. C., March 14.—V. E.
Mcßee, recently appointed receiver of
the Atlantic and North Carolina Rail
road, was arrested in Newbern to-day
on a bench warrant issued by Chief
Justice Clark and brought here to
night. The warrant, sworn out by At
torney General Gilmer in behalf of the
people of the state, charges Mr. Mcßee
with conspiring with K. S. Finch, on
whose complaint he was appointed re
ceiver, to Injure the said rotad.
A warrant also was issued for Finch,
but he is out of the state, and Gov.
Aycock will probably issue a requi
sition for him. The case will he heard
in the morning by Judge Clark.
SAYS EDUCATION IS
NOT GOOD FOR NEGROES.
Vardan:an Vetoes a Hill Appropriat
ing Finds for a School.
Jackson, Miss., March 14.—Gov. Var
daman this afternoon sent to the House
his veto of the bill appropriating $2,-
200 for the support of the Holly Springs
Normal School, a colored institution.
The Governor, in his veto message,
takes ground against negro education,
stating that it is not the best thing
for the negroes. He advanced this
view in his campaign for Governor.
The Governor gave what he termed a
constitutional reason for vetoing the
bid.
The veto message comes up in the
House to-morrow, and a stiff fight will
be made to pass the bill over the Gov
ernor's veto. Some of the leaders say
to-night that it will be successful.
WOOD REPORTS VICTORY
THAT WAS BLOODLESS.
Captured a Number of the Cannon
of the Moron.
Washington, March 14.—Acting Ad
jutant General Hall has received the
following cable from Maj. Gen. Wade,
dated Manila, march 13:
"Maj. Gen. Leonard Wood reports an
attack on a reconnoitering force east
of Cottabato by a, strong party of
Moros, made hostile by the passage
of the anti-slavery law. The Moros'
position was shelled and the Moros
flanked, and the outworks taken. They
were strong and well constructed. Can
non captured, twenty-one old Spanish,
thirty-three Lantakas, also large quan
tities ammunition and supplies. No
casualties on our side.”
SCHOONERS TURN BACK
BEFORE A HEAVY GALE.
Reported Stranding of Two In
fluinptou Hoads.
Norfolk, Va„ March 14.—The weather
bureau to-night reported a large fleet
of schooners had put back Into Hamp
ton Roads for harbor, as a severe gale
wus raging outside the capes.
It is reported in maritime circles to
night that the five-masted schooner
Gov. Ames and a six-masted schooner,
name unknown, were ashore In Hamp
ton Roads, Neither the Ames nor it
six-master are known to have entered
the t apes, but thick weather has pre
vailed and it Is not impossible they
have done so. It Is impossible to con
firm the reported stranding to-night.
CHARGED* WITHMURDER
OF MISS SCHAFER.
Bedford, Ind., March 14.—A grand
Jury to-day returned two indictments
against James McDonald In connection
with the murder, of Miss Harah Scha
fer, On# Indictment charges murder,
while the other charges statutory as
sault .
McDonsld Is In Bloomington, Ind.
When told of the indictments. McDon
ald said: "I am not guilty." He said
he was willing to return to Bedford to
plead to the Indlctmenta,
DAILY, 88 A YEAR.
WEEKLY 2-TIMES-A-WEEK.K A YEAS
ARE CHARGED WITH
BURNING PRESTON
TWO WHITE MEN ARRESTED.
AMERICUS MILITARY SENT FOR
THEIIt PROTECTION.
Henry Morgan and Sidney Harrell
Charged With Keaponalhility for
the $:tO.OOO Conflagration That
Swept the Web.ter Connty Town.
Lynching Win Feared Militia
Went to Prenton and Took Prison
ers to AmcricuH.
Amertcus, Ga., March 14.—The Ameri
cas Light Infantry received hurry or
ders to proceed immediately by special
train to Preston, Webster county, to
protect two white men, Henry Morgan
and Sidney Harrell, from lynching at
the hands of infuriated citizens.
Morgan was arrested this morning,
charged with burning the town of Pres
ton yesterday. It is said he had freely
confessed the crime and implicated his
cousin, Sidney Harrell, who he says,
employed him to fire the buildings,
which resulted in sweeping the town
away and entailing a loss of $30,000.
Both Harrell and Morgan were ar
rested to-d'ay. Fearing the men might
be lynched. Judge Littlejohn ordered
the Americus military to the scene to
night. The Light Infantry, sixty
strong, under Capt. G. I. Williams and
Lieut. Alien Fort boarded a special
train and were rushed full speed to
Preston, eighteen miles away.
The Light Infantry reached the town
at 8:57 o’clock, making the run of twen
ty miles in twenty-five minutes.
Sheriff Bell, Mayor Hawkins and Po
lice Chief Feagin accompanied the mil
itary. A peaceful calm prevailed in the
town, and there had been no attempt to
lynch the prisoners. Under orders
from the authorities, the prisoners,
Henry Morgan and Sidney Harrell,
were placed aboard the special train
and brought to Americus for safe
keeping.
COMMON PRACTICE TO
LOAD UP SQUARE BALES.
President of the Planter*’ Cornpre**
Company So Declare*.
Washington, March 14.—The Inter
state Commerce Commission to-day
gave a hearing in the case of the Plant
ers’ Compress Company against the
Cleveland, Cincinnati, Chicago and St.
Louis, the Southern, the Central of
Georgia and the Missouri, Kansas and
Texas and numerous other railroads,
involving various alleged violations of
the interstate commerce law.
President Marsh of the Planters'
Compress Company was the principal
witness. He detailed the differences
between the square and the cylindrical
compressed cotton and said that the
cylindrical process prevents putting
“paving stones, iron weights or sweep
ings into the center of the bale, as in
the square bales.”
“Is that the practice with the square
bales?” was asked.
“Yes, sir, a common practice,” was
the reply.
two werTkilled
IN SHOOTING AFFRAY.
Third Man, Who Sought to Inter
cede, Mortally Wounded.
Jackson, Mias., March 14.—As the
result of a shooting Saturday evening
at Philadelphia, Miss., Dr. W. W.
Jones, a prominent physician, and Roy
Eshe, a planter, are dead. Frank
Burnett, brother-in-law of Eshe, was
mortally wounded.
It Is charged that Dr. Jones circulat
ed stories about one of the Eshe fam
ily. Both Jones and Eshe drew re
volvers, when they met.
When Burnett came up to intercede
he was shot by Jones.
GEN. MILES MAY RUN AS
PROHIBITION CANDIDATE.
Oil City, Pa.. March 14.—David O.
McCalmont of Franklin, chairman of
the Venango Comity Prohibition Com
mittee, is in receipt of a letter from
Gen. Nelson A. Miles, In which the
General announces himself indirectly
as a presidential candidate.
Some time ago, Mr. McCalmont wrote
to Gen. Miles, saying he would be a
delegate to the prohibition national
convention, and asked if he could not
have the pleasure of supporting the
General for the nomination. The full
text of the letter received In reply
Mr. McCalmont refuses to make pub
lic.
At a banquet, held In Franklin on
Tuesday evening of last week, attend
ed bv a few of the men active In the
Prohibition party in Franklin, Mr. Mc-
Calmont proposed Gen. Miles aa a
candidate, and read an extract from
the letter In which Gen. Miles is quoted
as saying: “It remains with my friends
to say what services I shall rendei
further to my country.”
DIED SAy7nG PRAYER~
HIS MOTHER TAUGHT HIM.
Ossining, N. TANARUS., March 14.—Thomas
Tobin was put to death to-day in the
electric chair In Oaslning prison for
the murder of Capt. James B. Craft
In New York city. He walked to the
chair uttering a prayer that his moth
er had taught him when a child. Thru
shocks were given before toe wag pro
nounced dead.