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
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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
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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,
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the fog thickened. The Maine, of the Nor
wich line, docked at 9:30 o'clock, two hours
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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. The rendering of the judgment
wis merely Informal, and there will be
no transcript i.-sued, but Mr. Maclay will
be permitted to pay when he has the op
portunity. .
Teleprraphle Brevities.
Adah Richmond has been nonsuited In her
claim against the estate-of the late John Stet
son. Harcourt Gold, the famous EnglHh oarsman,
was tarrled In London to Miss Helen Mc
Lagan. Paul Blouet, better known as Max O'Rell,
who recently underwent a surgical operation.
Is Improving.
A Southern Pacific train at Houston raa
down and killed Joseph Sharkey, aged 40. and
John Powers, aged GO.
Winston Churchill. M. P.. has been appointed
to a Captaincy In the Queen's Own Oxfordshire
Hussars. ImperfRl Yeomanry.
Vladlvostock l anticipating the arrival there
of the repreentailve of an American railway,
which Intends to buy land along the Siberian
Railroad and erect factories.
The Londonderry Mining Company, ot Crip
ple Creek, filed suit against the Consolidated
Mines Company for an injunction restraining
the defendant from working the Londonderry
claim.
Baron Estournelles de Constant, the deputy
from the Department of the Sarthe and tho
French delegate to The Hague Conference. ha3
accepted the invitation of Chicago to deliver
an address In behalf o' France February ..
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