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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Jan. 8, 1902)
THE MORNING OEEGONIAN, WEDNESDAY, JANUARY . 8, 1902. MINNESOTA'S COMPLAINT PAPERS FILED IX PROCEEDINGS AGAIXST THE RAILROAD TRUST. The Proponed Consolidation Is In Di rect Violation of State Larr Pro ceedings in Supreme Conrt. WASHINGTON. Jan. 7. Attorney-General "Wallace B. Douglas, of Minnesota, filed today In the United States Supreme Court the bill o complaint in the case of the State of. Minnesota, complainant, against the Northern Securities Company, defendant. It is a long document, about 10,000 words, covering 32 pages of printed matter. The bill flrst points out the direct inter est the state has in the proposed consoli dation. It still owns more than 3,000,000 acres of public land, valued at more than $15,000,000, and traversed in part by the lines of the Great Northern and the Northern Pacific railroads. If the merger Is effected these roads will cease to build spurs into these lands or compete for their business. The value of the lands will not increase, as it has under the spur of competition and the state will lose In the taxable value of its property. The lands will not be opened for years and development will be arrested. It is next set up that the state expends more than 5700,000 annually in the opera tion and maintenance of its educational, charitable and other public institutions; That this is mostly raised by direct tax ation; that the amount which can be raised and the successful maintenance cf these institutions for the benefit of Its citizens depend largely on the value of the real and personal property within the state, which in turn depends largely on iree railroad competition. It has been the settled policy of the state to encourage railroad building by grants of land and in this way over 10,000,000 acres have been granted, nearly all of which has been granted to the Great Northern and North ern Pacific and their subsidiaries. The complaint alleges that the rates on the immense shipments of wheat and other merchandise over the lines of the two companies have been lower than they will toe under any arrangements which con templates uuity of control. The bill then recites the charters and incorporations under which the Great Northern operates over 5000 miles of road and cites the clause in. its charter pro viding that its affairs are to be conducted Tby a board of directors which is to do all things necessary "and not Inconsistent with the constitution and laws of the United States or the laws of this terri tory or this act." It is further alleged that James J. Hill holds a controlling in terest in the $125,000,000 of capital stock. The history and charters of the North ern Pacific are similarly rated, special at tention being paid to the roads acquired and built within the state. By filing its articles of incorporation with the Minne sota authorities the Northern Pacific be came subject to all the laws, regulations and provisions of Minnesota. The facts as to the present personnel of the directory, the insolvency of the old company and its reorganization in ISS'i, the purchase of the St. Paul & Duluth road in 1899, are recited at length. It is set up that the lines of these two sys tems are not only competitive between points within Minnesota, but that they furnish the only competitive lines between Minnesota and Puget Sound, and have, so furnished for 11 years. They are also with one exception the only lines traversing Northern Minnesota. A paragraph is devoted to the Burling ton and the facts as to the terms on which its control was obtained by the two sys tems Jointly, Charles E. Perkins, its ex presldent and present director, being a director Jn the Northern. Securities Com pany. The certificate of incorporation of the latter filed in New Jersey Novem ber 13. 1801, is quoted in full. Taking up the Northern Securities Com pany it is set forth that it was organized by J. J. Hill, W. P. Clough, J. P. Mor gan and "other associates to the oratrlx unknown," who at the time, were contin ually In conference over means by which the laws of Minnesota might be .success fully evaded or avoided, and that it was so organized solely lor the purpose of ef fecting a consolidation of the Great Northern and Northern Pacific. The own ers of a large majority of the stock of the two systems had agreed before hand to transfer to the new company 75 per cent of the stock of the two systems on terms which are set forth in. full and to retire the 'preferred stock of the Northern Pa cific In furtherance of the plan to evade the laws of Minnesota, It was agreed that pending the delivery of the stock to the Northern Securities Company, it should all be turned over to J. J. Hill, or be under his control. The Northern Securi ties Company, it Is charged, does not in tend to purchise this stock, but simply to issue its own stock in exchange there for. For these unlawful purposes the company Is about to receive, unless en joined therefrom, all the capital stock of the Great Northern and Northern Pa cific This, it is claimed, is part of a plan of Hill, Morgan and their associates, whereby the two systems are to be con solidated and placed under the direction of one man or board of directors through the defendant company, and thus bring about and perpetuate a monopoly in railroad traffic in Minnesota, and a complete consolidation of the two rail way systems. One man or board will thus, it is alleged, be enabled to fix all rates on lines of the state, determine what trains shall be run, remove all competition and prevent the building of lines into new country or into competi tive territory. This agreement and the consummation thereof, is claimed to be "in restraint of trade, against public pol icy and void." Under Its terms, one di rectory of the Northern Securities Com pany may change its own rules or may delegate all its authority to an executive committee. It is pointed out that Hill, the president; W. P. Clough, the vice-president, and E. T. Nichols, the treasurer and secretary of the company were all, at the date of Its organization, officers of the Great North ern, and that a majority of Its directors were also directors of the Northern Pa cific. It has been the policy of the state to prohibit consolidation of parallel or competing lines, and the law of 1S74, in which such prohibition is made, is quoted in full, as well as the amplifying act of 1SS1 and the anti-trust law of 1899. pro hibiting any combination in restraint of trade. It is set up that the Northern Securities Company is a railroad corporation within the meaning of the Minnesota laws, and that its design is to evade and violate these laws In such a way as to cause the state "Irreparable Injury." It Is not the owner of any other property or stock or securities, and is engaged In no other busi ness save that of management and con trol of the Great Northern and Northern Pacific Already, so it Is alleged, J. J. Hill, as president of the Northern Securi ties Company, has changed, dictated and controlled the policy of the two constit uent roads, and during December, 1901, it is alleged, the general managing officer of the Great Northern, acting under his di rection, took charge of and engaged in managing a large portion of the Northern Pacific It is alleged that it Is the settled policy of New Jersey to allow the con solidation of only such railroads as are or can be connected to form continuous lines, and not to permit the consolidation of parallel or competing lines. The oratrlx, claiming to have no other adequate remedy or relief, except as prayed for in equity, asks that the defend ant be required to show cause why it should not be perpetually enjoined and re strained! ' First From voting at any meeting of the stockholders of the Great Northern and Northern Pacific the capital stock or these companies and from attending in any manner such meeting. Second From aiding, advising, interfer ing with or in any way participating in the management of the three systems. Third From permitting any of Its of ficers, agents or servants from qctlng as representative, director, officer or em ploye, or exercising any control, manage ment or direction over the same Fourth From making any arrange ments or combinations having for their object the Joint control. Fifth From holding, owning or con trolling aijy of the stock of cither com pany, the defendant company being re quired to reassign or retransfer all such stock to the person from whom It was received, taking in return Its own stock issued In exchange therefor, and mean time to be enjoined in all respects In re lation to said stock as hereinbefore prayed for Sixth From receiving any more stock of the two companies in case it shall ap pear that the defendant company has not yet acquired a controlling interest in either. Seventh The oratrlx prays permission to amend the complaint if necessary and bring in other parties for the purpose of giving force and effect to any decree of the court and asks the court to issue a subpena against the defendant company and set a day for the hearing. Besides Attorney-General Douglas, M. D. Munn, of Et. Paul, and George P. "Wilson, of Minneapolis, are named as counsel. The proceedings in the court were very brief. Attorney-General Douglas was rec ognized as soon as the court was con vened, and he then moved "for leave to file and present a bill of complaint on the part of the State of Minnesota against the Northern Securities Company." Chief Justice Fuller asked If notice had been given to tjie Securities Company, and be ing Informed in the negative, said there was no rule requiring such notice. He added, "We will take the papers." Mr. Douglas handed in his bill of com plaint and also a brief citing authorities. The Attorney-General and his assistant counsel, M. D. Munn and G. P. Wil son, then retired. The court took the motion under advisement, as usual In such cases, and will give Its decision in due course of time. The second document filed in the United States Supreme Court today by 'Attorney-General Douglas, of Minnesota, in addition to citing many authorities bear ing on the right to institute in this court, briefly relates the state's contention as to the legal attitude of the railroad con solidation as follows: "Briefly stated, the attempted consoli dation of railway lines and properties of the Great Northern and Northern Pacific Railway Companies, which was defeated in the case of Persall vs. the Great North ern Railway Company, Is now renewed by the united action of the holders of a majority of stock of each of the said companies by placing a majority of the capital stock of each of said railway companies in the Northern Securities Company, in order that the last-named company may manage and control, through its president and executive com mittee, also all of the railway lines and properties of each of said railway com panies. This action against the North ern Securities Company is brought to reach the instrument or means through and by which these two railway com panies are to be consolidated, and in volves an Inquiry into the extent of the powers of the Northern Securities Com pany and the lawfulness of Its acts. Or, stated in a more direct form, the prin cipal question raised in this action is: Can a corporation, organized under the laws of New Jersey, use Its corporate powers so as to violate or overthrow the constitutional enactment of a sister state, and thus accomplish Indirectly that which this court has held cannot be done di rectly, especially in view of the fact that the New Jersey corporation was organ ized for the express purpose of accom plishing this result? The further ques tion is presented, viz.: Does not the consolidation of these railway companies, which own and operate all the railway lines situated in the northern half of Min nesota (except two short iron-ore car riers), amount to a monopoly in railroad traffic? And is not such a monopoly the subject of challenge, regardless of statu tory prohibition?" An Heir Is MiNftingr. NEW YORK. Jan. 7. The estate of John W. Hendrle, the philanthropist, whose gifts to California Institutions and to Yale in his life were many and in large amounts, has been settled by his two brothers, Charles and Joshua, though they have been unable to discover the whereabouts of one of the legatees, a niece, who received by the will of the deceased the sum of 510,000. The missing person Is Sarah Augustus Lounsbury, daughter of Aurella Ann Lounsbury, a sister of Mr. Hendrie. The amount due to her has been Invested, with the expec tation that at some time she will appear and claim it. Marconi's Plans. OTTAWA, Jan. 7. Mr. Marconi Is still in negotiation with the Government here with regard to the facilities for the erection of his tireless telegraph station In Cape Breton, and its subsequent oper ations In connection with land lines throughout the Dominion. He ex pects to leave Ottawa on Wednesday for Montreal, and to arrive in New York on Saturday. It is- his intention to sail for England January 15. The Hclnse Litigation. HELENA, Mont.. Jan. 7. Judge Will lam Clancy and F. Augustus Helnze to day filed answers in the Supreme Court, in compliance with the order to show cause why a writ of supervisory control should not be Issued, reviewing the action of the lower court In granting Helnze permission to make underground surveys of the Anaconda properties In Butte. The Supreme Court has set the hearing for Friday. Receiver for Baffulo Exposition. BUFFALO, Jan. 7. It having been found impossible to unite the creditors of the Pan-American Exposition, the Fidel ity Trust Company, representing the first mortgage bondholders, entered a sum mons and complaint today before the Su preme Court, asking that a receiver be appointed to take charge of the affairs of the company. Of the issue of $2,500,000 in first-mortgage bonds, 5150,000 is still un paid. Cleveland Is Better. PRINCETON. N. J.. Jan. 7. Ex-Presl-dent Cleveland, though not yet ftflly re covered from his Illness, Is much improved in health. Mrs. Cleveland said today: "Mr. Cleveland Is still weak from his illness, but he has become strong enough this week to leave his room and come down stairs. He will not, however, be able to go out of doors until the weather becomes considerably milder." "Westlnghonse Company Increased. PITTSBURG. Jan. 7. At a special meet ing of the stockholders of the Westing house Machine Company, held here today, the capital stock was Increased from 53. 000,000 to 55,000,000. The Increase was made to provide additional working capital. "Worse Than Getting; Tight. A Well-known business man has re marked that "some ladles lace themselves tight and some men drink themselves tight," neither of which Is to be com mended, but getting tight Is not the worst thing a man or woman ever did. Men of high character who would scorn the thought of taking a drink of any intoxi cant, and women whom any boy might feel proud to call "mother," are sometimes so thoughtless as to neglect the colds which children so often contract. The inflammation of the mucous membrane becomes chronic and the child has catarrh, an incurable disease that will be a life's burden. A little forethought, a bottle of Chamberlain's Cough Remedy Judiciously used, would have saved all this trouble. This remedy is especially valuable for cough t. and colds In children, because It always cures, and Is pleasant and safe to take All druggists sell It. SOME ONE WILL SUFFER INTERSTATE COMMERCE COM3IIS SlOJf BEGINS AX INVESTIGATION. Packers Will Be Prosecnted for Vio lationsRailroad Combinations to Be Inqalred Into. CHICAGO, Jan. 7. Prosecutions against all the big packing-house, concerns In the West for violations of the provision of the Interstate Commerce law against receiv ing preferential rates are contemplated by the Interstate Commerce Commission. This fact developed today during an in vestigation begun by the commission into the handling of packing-house products and dressed meats. It also became apparent that the com mission and the railway managements of the entire country practically had entered Into an alliance for the purpose of induc ing Congress to pass legislation permit ting the railroads to pool under certain regulations by the Interstate Commerce Commission, and that it is believed such a law can be passed. The third development of the day was the announcement that the commission had requested the attendance here of all the leading men in the advancement of the communlty-of-Interest Idea, Including J. P. Morgan. James J. Hill and E. H. Harrlman, and that If these men fall to respond to the request, harsher measures will be taken to compel their coming. Evidence upon which td base prosecu tions against the packers was obtained in abundance. Traffic managers and vice presidents of roads East and West threw up their hands and admitted freely that there was no pretense toward maintaining tariff rates on packing-house products and dressed meats for export or domestic use, except for a very .short period of time at the beginning of each year. Paul Morton, second vice-president of the Santa Fe; A. C. Bird, third vice-president of the St. Paul; J. M. Johnson, third vice-president of the Rock Island, and other men of the highest standing in the railroad world, took the stand and stated boldly that they are now. and have been continual violators of the law, that they are sick and tired of being such, that present conditions are Intolerable, that they are powerless to secure a main tenance of rates, and that millions of dol lars Is paid to the packing-house interests yearly by railroads at the expense of le gitimate revenue. The packing-houses and their represen tatives to whom rebates were paid during 1901, according to Commissioner Prouty, will. If possible, be made amenable to a maximum fine of 55000 for every violation of the law. Regarding this phase of the question Commissioner Prouty said. "I am heartily in favor of punishing the packers for violation of the law, if the evidence proves sufficient, and I think It will. Under the law. we cannot punish the railroad men who testify, for their testimony absolves themselves, and they do not testify specifically against any one else. All the punishment that we can. if v. hti oic ,, ,.ir,.c ! in Vhl any, obtain against the packers, Is In the way of a line not to exceed 55000 for each violation." Speaking of the scope of the Investiga tion into the combinations between rail road interests, Commissioner Prouty said: "We have asked the presidents of all the roads comprised In the Southern Pa cific combination and the Northern Pa cific combination to attend, and also J. P. Morgan. If they do not come we shall take st6ps to compel them to appear later. But I do not wish to be understood as presuming that they will fall to respond to our request." The men indicated by Mr. Prouty's statement are J. P. Morgan: E. H. Har rlman, president of the Southern Pacific, Oregon Short Line and O. R. & N. Co.; James J. Hill, president of the Great Northern: C S. Mellen, president of the Northern Pacific; G. B. Harris, president of the Chicago, Burlington & Quincy; Horace G. Burt, president of the Union Pacific; Samuel Morse Felton, president of the Chicago & Alton: Stuyvesant Fish. president oi me nnnois uenirai; j. v. Stubbs traffic director of the Harrlman lines; Darius Miller, second vice-president of the Burlington and reputed traffic di rector of the Northern Pacific trio. The testimony of the day by both East ern and Western men bore a wearying lameness. The essential points elicited were: First From January to April, 1901, tariff rates were obtained op packing-house products and dressed meats. From April to July there was a concession of 3 cents from the Missouri River to Chicago, and of 6 cents from Chicago to the seaboard, on both domestic and export traffic From July to January. 1902, there was a concession of 5 cents from the river to Chicago, and of G cents from Chicago to the seaboard. During the early months of the year shipments were billed at tariff rates and rebates paid either In the form. of vouch ers or checks payable to the packing house firms or their representatives, and during the latter portion of the year the practice was almost general of billing flat or at actual rate as being more con venient. Third Various methods were employed In paying rebates, the most general being for the packing-house to send in a claim to the traffic manager amounting to the difference between the tariff and the actual rate. Statements would be checked' up by the auditing department, and the management would send the traffic man ager a lump sum to cover all claims, which would be deposited In banks. Against this the traffic manager would draw In favor of the claimant for the amount due. Fourth No records were made or kept on the company's books concerning the transaction or payment of vouchers. Fifth Witnesses were wholly at a loss to explain why a lower than tariff rate could be maintained when tariff could not. Sixth There was a universal opinion that legalized pooling would do much to correct the evil. Seventh It developed that the Santa Fo had a contract with a packing company to carry Its product from the river to Chicago for 5 cents off the tariff rate for one year from June 30, 1901, and that when the company gave notice of publishing the rate tho other roads Induced it to withdraw the notice. Those who testified were: C. D. Whit ney, treasurer of the Clover Leaf; T. D. McCabe, freight traffic manager of the Pennsylvania lines west of Pittsburg; E. F. Cost, traffic manager of the Big Four; B. B. Mitchell, general -freight agent of the Michigan Central; J. M. Johnson, third vice-president of the Rock Island: Thomas Miller, general freight agent of the Alton: C. A. Bird, third vice-president of the St Paul; Paul Morton, second vice president of the Santa Fe; Captain J. G. Grammar, general freight agent of the Lake Shore. THE DEATH ROLL. George N. Wlswell. MILWAUKEE, Jan. 7. George N. WIs well, president of the Milwaukee Mutual Life Insurance Company, died today after three weeks Illness, aged 50 years. Mr. Wlswell was well known throughout the country, having served as sergeant-at-arms at the National Republican Conven tion at Philadelphia, two years ag&, and as assistant sergcant-at-arms at the Chi cago, Minneapolis and St. Louis conven tions. He served as United States Mar shal of the Eastern District of Wisconsin under President Harrison. Another Plcrrepont Dead. NEW YORK, Jan. 7. Death has visited the Pierrepont family, one of the wealth iest and most prominent In Brooklyn, THE NATIONAL CAPITOL, AT WASHINGTON. v TvvGSSsVls9SsntJ ft 3 Vt iEBBlBKBfiSS' :t k , -v v twice within less than a week. On Thurs day last Anna Maria Pierrepont, widow of Henry E. Pierrepont. and a grand daughter of John Jay. flrst Chief Justice of the United States Supreme Court, died. The death Is now announced of Dr. Will iam Augustus Pierrepont, a son of Mrs. Pierrepont, The cause of his death Is given as heart trouble. William G. Jackson. SALT LAKE CITY. Jan. 7. William G Jackson. 2S years of age. a well-known Chicago newspaper man. died In this city tonight. The Immediate cause of his death was cerebral meningitis, although he had long been a sufferer from pulmon- ary troubles and left left Chicago for South- o years ago. In hope: ern California tw of bettering his condition. Since his ar- i-IvoJ In thl nltv 11 i-nnnth ncn Mr- Tnnlr. son has occupied an editorial position on the Salt Lake Herald. Colonel Samuel N. Hoyt. WASHINGTON, Jan. 7. Colonel Samuel N. Hoyt, a veteran of two wars, a partici pant In various- Indian campaigns, a Cali fornia 49er, and the intimate friend of Sam Houston, Kit Carson and other fig ures of the rough West of half a century ago, died tonight, aged SI years. Jean de Boch. LONDON, Jan. 7. Private telegrams from Warsaw announce the death last night of Jean de Bloch, Counsellor or State, of Russia, political economist and railroad expert. William C. Trumbull. NEWBURGH, N. Y., Jan. 7. William C. j rrrv.,1tt "Vl"" ? """, 7w ;, Patriarch of the American trotting turf. died here today, aged 76. Soldier Train Wrecked. CHICAGO, Jan. 7. A Rock Island spe cial bearing 300 recruits bound for the Philippines from Columbus Barracks, O., was partially wrecked In Twenty-second street early today. Three men were injured, as follows: Henry Lewis, serious, C. C. Murphy, Lawrence Shaefer. A tourist car containing 50 soldiers lost its rear truck, and was dragged half a block and badly damaged before the engine stopped. The accident Is said to have been due to the failure of a switch to work properly. Pool Room Men Indicted. ST. LOUIS, Jan. 7. Indictments were j returned this afternoon against John R. Butler, Fred H. Smith, A. J. McGInnls. John T. Parle, W. J. Armstrong', Fred Klrcher, Thomas Kearney, Robert Pate, Jr., D. A. Kern and D. I. Kohn, who are charged with a violation of the breeders' law. The men under Indictment are all i M tn h. t.anTlP(.tA with the Southern J Telegraph & Money Order Company, an alleged poolroom. Youngers Want Their Freedom. MINNEAPOLIS, Jan. 7. C61c and Jim Younger have applied to the State Board of Pardons for commutation of their life sentences for murder to 35 years. Allow ing "good time" they have already served 36 years for their share In the Northlleld raid. They say that friends are ready to set them up In business in Missouri. They are now out on parole and cannot live outside Minnesota. Steel Trust's Dividend. NEW YORK. Jan. 7. The directors of the United States Steel Corporation de clared a quarterly dividend of 1U per cent on the preferred stock and 1 per cent on the common stock today. A financial statement was given out showing that the net earnings of the company from April to December, Inclusive, with December estimated, were 5S4,775,2S9. Salem City Offlclnln Re-EIectcd. SALEM, Or., Jan. 7. The City Council held its first meeting of 1902 tonight and re-elected all subordinate city officials of Fire, Police and Street Departments. The Recorder's annual report shows that the receipts for the past year were 524,700; current expenses, 512,356; bond interest, 511,021; total expenses, 524.377. Cuban Election Returns. HAVANA, Jan. 7. Full returns from the elections held in Cuba December 31 will not be In before the end of January. In all of the Cuban provinces, except the Province of Puerto Principe, the Senators and Representatives will be adherents of Tomas Estrada Palma, the President elect of Cuba. Seattle Woman Injured. SAN DIEGO. CaL, Jan. 7. Mrs. Kln cald, of Seattle, was thrown from a tally ho near the Mexican line yesterday after noon by the frightening of a team, and her skull was fractured. She has been brought to this -city, and is under a phy sician's care. PANAMA CANAL . OFFER (Continued from First Pace.) one-fourth completed, penniless and bank rupt in money and character." The disaster to thl3 country, he said, proved conclusively that the work should be undertaken by governmental agency. Hepburn pointed out the advantages of the Nicaragua route for sailing vessels, on account of better winds prevailing there, contending In this connection that It was a mistake to suppose that the sail ing ship was destined to disappear from the ocean. Where the Panama route Is located, sailing ships sometimes lays for five months in the doldrums. When Hep burn said he had hoped that the pro posed waterway would be free of charge I to American ships there was an outburst of applause on the Republican side. If that might be done, he said, it would give a great impetus to American shipping. In concluding, Hepburn said there might be some Interests In the United States which believed they would be harmed by the rivalry of this canal, and there were gen tlemen of honest purpose who thought the time was not ripe for the building of the canal, or that an enterprise of such mag nitude should not be undertaken. They were perhaps terrified by the specter of scandal. "But," he concluded, "I Insist that the American people have made their decree that the canal shall be built, and that now Is the time to build It." Volley of Quentlnns. After Hepburn had concluded his set speech he was besieged with questions. Shaffroth (SI1.. Colo.) I should like to know what Is the gentleman's construc- tlon upon this bill and upon the latest treaty that has been ratified as to the power of the United States to fortify the canal. Hepburn I have not any doubt about the right of the United States to defend that canal, and to do It In the way that seems wise to the United States. If that Involves the erection of fortifications at the terminus of the canal, or of stockades at the sites of the Important works, 1 j have no doubt about the authority of the United States to do It, and that It would PXnrHsn that nilthnrltv. Fowler (Rep,. N. J.) asked If It was pos-r slble we would allow American ships to pass through the canal without charge. Hepburn I have no doubt that the United States can use that canal in a manner advantageous to its own people above the advantage that It would be to other people: at all events Government ships will go through free, and there is that trend in the air on the part of other nations toward yielding to the desires of the United States that makes me hope if there was a barrier of that kind now we would brush it out of the way pretty soon. Cummlngs (Dem.. Ni Y.) I should like to ask whether, In your opinion, if your bill should be passed under the treaty that had been ratified by the Senate, would England have any special privileges In the canal over any other nations? Hepburn I think noL McDermott (Dem., N. J.) called atten tion to the statement of the Walker Com mission, giving the cost of the Panama Canal property as 5100,000,000 and the newspaper reports that the company now offered to sell the property for 540.000.00!). If the latter report were true, the Panama Canal would cost less than the Nicaragua, and he asked If Hepburn did not believe that with equal cost, the commission would have reported In favor of the Pan ama Canal. Hepburn replied that the commission1 had stated the respective advantages of both routes under conditions then exist ing. He could not tell what the commis sion would have reported Hinder other cir cumstances. "Any gentleman who absorbs the commission's report," said he, "and weighs It, must believe, other things be ing equal, that the canal that Is 400 miles nearer our territory and that makes New Orleans 4S0 miles nearer San Francisco, and New York 375 miles nearer than the other. Is the better canal for us." Hepburn declared that the whole Pan ama scheme had utterly failed. The French stockholders had been robbed. The company was discredited In France; in fact. It seemed to have no credit except In the United States. "If we build the Nicaragua Canal," asked Sims (Dem. Tenn.) "Is It not likely that the French Government will com plete the Panama Canal?" "There Is the same probability of two canals," answered Hepburn, "that there Is of the Suez Canal being paralleled by another." Asked as to the advisability of giving the President the authority to build on either route. Hepburn again raised an outburst of applause by declaring that he looked upon any attempt to entangle the United States in the Panama enter prise ns an effort to defeat the canal. Reeves (Rep. 111.) asked whether it would not be better to wait a few days or weeks, until the Secretary of State could inform Congress just what we could obtain In the way of concessions from Nicaragua. Objectw to Delay. "In an enterprise of this magnitude." replied Hepburn, "there never has been and never will be a day when some gen tleman will not be able to urge some rea son for postponement. We have been suffering from that for years. I am as sured by those who know that the proto col with Nicaragua has reached such a stage that we are certain to get what we want." Referring again to the reported proffer of the Panama Company to sell, Hepburn said that upon a mere rumor It was pro posed to delay action. "But if the rumor turns out to be true?" asked Reeves. "If it is true," said Hepburn, "that the Panaaia Company has made the propo sition, then we should deal with Colom bia, which owns the canal." "You mean the company forfeits its rights If it made an offer to sell." "I do." "Do you think the company would risk forfeiture?" "It recognizes that the jig Is up." Hepburn asked Reeves in turn whether he knew of any concession given by the Colombian Government to the Panama Company to sell the canal. Reeves I do not. and doubt If such ex ists; but, nevertheless, I do not believe the Panama Company forfeited its rights, any stipulation ot the treaty to the contrary notwithstanding. Hepburn The commission says that an offer to sell work a forfeiture not only of the company's franchise, but Its prop erty in Colombia. The Panama propo sition to sell for 540,000.000, coming just as the House was about to act, and after a long previous insistence on 5109,000,000, Is suspicious, to say tho least. Replying to Inquiries from Cannon as to the conditions of the protocol with Nicaragua, Hepburn said his understand ing was that 55,000,000 and 51.000.000 were about the figures allowed Nicaragua and Costa Rica. "Why is this protocol not laid before Congress?" asked Cannon. "Because the Secretary of State has disapproved some of the changes made In the original draft of the protocol." an swered Hepburn, "and pending final "de termination It is not desirable to submit the terms to Congress." Cannon Insisted that nothing would be lost oy waiting for, say, 60 days, until the facts as to this protocol could be learned and Congress could deal with the subject in an orderly manner. Hepburn declared that this" would have been the effect of further delaying the project, but he acquitted Cannon of any Intentional purpose of delay. Cannon closed the rather spirited colloquy with Hepburn by stating that while he had always favored the canal, he was satis fied the precipitate passage of this bill sacrificed advantages which the United States "now possessed and meant a heavy Increase in cost, which would have to come out of the Treasury. Davis (Dem. Fla.), a member of the committee which reported the bill, fol lowed Hepburn with an earnest plea for Its passage. He advocated the Nicaragua rather than the Panama route, and insist ed that the time had now arrived when talk should cease and work begun. Richardson (Dem. Ala.) also supported the bill, arguing thst the Nicaragua route was preferable In many ways to the" Panama route. Experts Differ Widely. Mann (Rep. 111.) declared that the ex perts who had examined the routes had differed widely. No Wo commissions had ever agreed either upon the cost or route. and It was, therefore, with some hesi tancy that he accepted unreservedly the report of the latest commission. He re called the fact that the distinguished body of engineers associated with De Les seps expressed the opinion that a sea level canal could be built from Colon to Panama for 5100,000.000. It had cost un told millions to prove that a sea-level ca nal was utterly Impracticable, and it was not until 1S9S that the technical commis sion on the Panama Canal Company re ported In favor of a lock canal. Our Isth mian commission now disagreed with the technical commission as to methods or construction. He said no doubt that later commissions would disagree with the Walker commission. Mann declared that In his opinion no such dam as the Pan ama Company proposed to build at Bohla, on the Chagres River, would ever be con structed. Yet many members honestly believed that the new offer ot the Panama Company should be further considered before the Government, pledged Itself to the Nicaragua route. Mann pointed out that the estimates of the various commissions appointed to examine the Nicaragua route ran from 531,000,000 to 5189,000.000. He did not think discrepancies In the estimates could be satisfactorily explained on the ground ot the enlargement of the plans of the canal. With practically no change except the construction of double locks, the last com mission raised Its estimate 571,000,000. He said that the contractors who built the Chicago drainage canal on the basis ot the estimates made fortunes In profits. Hepburn had expressed the hope that American ships might be able to go through the caiiil free of charge. The trouble with that hope was that It was rudely stifled and killed before birth by the new treaty with England, which would prevent preferential discrimination In rates. He did not agree with Hepburn that the offer to sell forfeited the Panama concession. The Panama Company, he said, had used every effort to obstruct the construction of the Nicaragua canal. In the hope of eventually disposing of it." property to the United States for millions, more than It was worth. Adams (Rep. Pa.) who opposed a similar bill at the last session on account of the existence of the Clnyton-Bulwer treaty, thought that the offer of the Panama Company should receive careful consider ation. Morris (Rep. Minn.) gave notice that at the proper time he would offer the fol lowing amendment: "Provided, however, that If the'Panama canal, so far as constructed, and the property, rights, privileges and franchises of all the corporations or persons Inter ested therein can be acquired by the United States free and clear of all In cumbrances, for a sum not exceeding 540. 000.000. and in addition thereto equally desirable political and territorial rights and privileges, as In the case of the Nic aragua route, and at no greater expense, within six months from the passage of this act. then the President of the United States. If the Isthmian Canal Commission, or a majority thereof, shall so recom mend. Is hereby authorlzeftco purcnaso the same and to complete trie construc tion cf said Panama canal, subject to all the conditions, provisions and limitations aforesaid. And the sum of 530.000.000 Is hereby appropriated out of any money in the Treasury not otherwise appropriated toward the project herein contemplated." The House then, at 4:55 P, M., ad journed. Steamer in Tronhle. NEW YORK, Jan. 7. The Panama line steamship Finance, which sailed today from this port for Colon, turned about when off the Highlands at 3:50 P. M.. to return. The vessel was enveloped In steam, and appears to have had an ex plosion on board. After coming back as far as Scotland lightship, the Finance turned about again at 4:40 P. M. and started slowly sea ward. The Dewey Prize Cnses. WASHINGTON, Jan. 7. The hearing or the prize cases on appeal from the Dis trict Supreme Court. Involving the ques tion of the amount of prize money due Admiral Dewey for the victory at Manila, was set today for hearing next month by the District Court of Appeals. May Be Harvey LoRnn. PHOENIX. Ariz., Jan. 7. Gus Hobbs and D. Keppler, two Clifton officers, ar rested a man at MorencI yesterday who Is believed to be Harvey Logan, the al leged Montana tralnrobber. The prisoner will be held for identification. Sirs. KIncaid Dead. SAN DIEGO. CaL, Jan. 7. Mrs. KIn caid, of Seattle, who was thrown from a tally-ho near the Mexican line yester day afternoon by the frightening of the team, died tonight. A fracture of her skull caused death. Troops to Protect Murderers. JACKSON. Miss., Jan. 7. Governor Lon glno has ordered the Capitol City Guard of this city to be held In readiness to go to Oxford. The Sheriff there Is apprehen sive that a mob will tonight try to lynch Is wha.t y a"K7" f L .ygy. I oLs you doubt it's economy7 Millions use PEARLINE bright people. jPearline 20$ Centy Soap, LIFE SAVED BY SWAMP-IOOT. The Great Kidney, Liver and Bladder Remedy. SAMPLE BOTTLE SENT FREE MAIL. BY Swamp-Root, discovered by the emi nent kidney and bladder specialist, promptly cures kidney, liver, bladder and uric acid troubles. 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Y., and please mention that you read this general offer In The Portland Dally Oregonlan. Will Mathls. Orlando Lester. Will Jack son and Whit Owens, who are In jail there. Three of the men have recently been convicted of the murder ot the two Montgomerys, Deputy United States Mar shals. HEAVY FOG IN NEW YORK Ferry-Boats Crawl Across the Rivers at Half Usual Speed. Chicago Inter Ocean, Dec. CO. New York. Going to church or any where else by ferry was a very uncer tain undertaking today, because of the fog. Jersey folk who attend service in Manhattan and started at their regular hour were lucky If they got to their pews In time to see the plate passed. The fog shut in at 8 o'clock In the morning, and except for an occasional lift interfered with river tralfic all day. It was brought up from the sea Into tho harbor and the two rivers by a brisk southwest wind. The wind was from the same quarter during the greater part ot the night, but until breakfast time there was enough rain to keep the fog down so that the skippers could see where they were going, but throughout the day the boats crawled across the North and East Rivers at half speed and without any ref erence to the normal time schedules. At times the fog was so thick that shreds of It hung In skeins from the points of the umbrellas of the ferry passengers who stayed out on deck because they didn't want to risk being In the cabin in a collision. Some of the passengers toll about the Tog skeins anyway, and the deckhands who were doing extra work on lookout forward wouldn't contradict them. The big sound steamboats, Prlscllla, Massachusetts and City of Lowell, all got In on time early In the morning before the fog thickened. The Maine, of the Nor wich line, docked at 9:30 o'clock, two hours and a half late. MACLAY SUED FOR BEER BILL Judgment for $30 Rendered for Goods Ordered Four Years A?o. New York Journal. Municipal Justice Van Walt yesterday ln the Broadway Civil. Court, Williams burg, rendered a Judgment for 536 and costs against Edgar Stanton Maclay, the navy-yard "historian," for a beer bllj clalmtd by the William Ulmer Brewing Company, of Brooklyn. It was alleged by the company that In the months of November and December. 1S97, Mr. Mac lay, while the keeper of the Old Field Lighthouse, near Port Jefferson. L. I., or dered boxes of beer. The original summons In the case against Maclay was Issued on October 8 last, but It could not be served on tho historian until December 1. It was re turnable yesterdiy. but there was no ap pearance on the past of Maclay. nor was he represented by counsel, although a. few days ago Maclay communicated with the company and expressed his willing ness to pay the judgment some time next month. 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