2
Lib. il01!.M.0 OKEUOMAS. FRIDAY, Al'KlL 10, 1003.
DECISION ON MERGER
Court Holds That It Violates
Anti-Trust Law.
THE OPINION IS UNANIMOUS
Conremcnt Win on Every Point
and Northern Securities Company
Is Forbidden to Vote or Acquire
Stock of Merged Road.
ST. PAUL. April 9.-Following la the
text of the decision of the United Statu
Circuit Court of Appeals in the Northern
Securities case:
This U a bill exhibited by the United
States to restrain the violation of an act
of Congress, approved July 2. ISO. enti
tled. 'An act to protect trade and com
merce against unlawful restraints and mo
nopolies; which U commonly termed the
Sherman anti-trust act.
"From admissions made by the plead
ings as well as from much oral testi
mony, we reach the following conclusions
as respects matters of fact:
"Two of the defendants, namely, the
Northern Pacific Railway Company and
the Great Northern Company, are the
owners respectively of lines of railroad
which extend from the cities of Duluth,
St. Paul and Minneapolis, In the State of
Minnesota, thence across the continent
to Puget Sound. These roads,are and In
public estimation ever have been regarded
as parallel and competing lines. For some
years, at least, alter they were built they
competed with each other actively for
transcontinental and Interstate traffic. In
the Spring of the year 1931 they united
In purchasing 98 per cent of the entire
capital stock of the Chicago, Burling
ton & Qulncy Hallway Company and be
came Joint sureties for the payment of
the bonds of the last-named company,
whereby the purchase was accomplished,
which were to run SO years and
bear 4 per cent interest per annum. The
amount of stock so acquired was of the
par value of about J107.OCO.000. and as It
was purchased at the rate of 1200 per
share, the bonded Indebtedness of the
two companies was thus Increased to the
extent of 300,000.000.
"Subsequent to the acquisition of the
stock of the Burlington Company and In
the Bummer of 1901 certain large and In
fluential stockholders of the Northern Pa
cific and Great Northern Companies, who
had practical control of the two roads and
who have been made parties defendant to
the present bill, acting In concert with
each other, conceived the design of plac
ing a very large majority of the stock
of both of the last-named companies In
the hands of a single owner. To this end
the stockholders arranged and agreed
with each pther to procure and cause the
formation of a corporation under the laws
of the State of New Jersey, which lat
ter company, when organized, should buy
all, or at least the greater part, of the
stock of the Northern Pacific and Great
Northern Companies. The Individuals
who conceived and promoted this plan
agreed with each other to exchange their
respective holdings of stock in the last
named railroad companies for the stock
of the New Jersey company when the
same should be fully organised, and to
use their Influence to Induce other stock
holders In their respective companies to
do likewise, to the end that the New Jer
sey company might become the sole owner
of the whole or at least a majority of the
stock of both roads. In accordance with
this plan the defendant, the Northern Se
curities Company (hereafter termed the
Securities Company) was organized under
the laws of the State of New Jersey
on-November 13, 19C1. with a capital stock
of W00.000.000. that sum being the exact
amount required to purchase the total
stock of the two railroad companies at
the price agreed to be paid therefor.
Stock of Companies Exchanged.
"When the Securities Company was or
ganized It assented to and became a party
to the scheme that had been devised by
Its promoters before It became a legal
entity. Shortly after Its organization the
Securities Company acquired a large ma
jority of all the stock of the Northern
Pacific Company at the rate of 1115 per
share, paying therefor In Its stock at par.
At the same time It acquired about 300.000
shares of the stock of the Great Northern
Company from those stockholders of that
company who had been Instrumental In
organizing the Securities Company, pay
ing therefor at the rate of J1S0 per share
and using Its own stock at par to make
the purchase. The Securities Company
subsequently made further purchases of
stock from the Great Northern Company
at the same rate, a"nd In about three
months had acquired stock of the latter
company amounting at par to about J9J,
000.000, using for that purpose Its own
stock to the amount of about tin.O00.000.
The Securities Company was enabled to
make the subsequent purchase from
stockholders of the Great Northern Com
pany not Immediately concerned In the
organization of the Securities Company
by the advice, procurement and persua
sion of those stockholders of the Great
Northern Company who had been Instru
mental in organizing the Securities Com
pany and had exchanged their own stock
for stock In that company shortly after
Its organization. At the present time the
Securities Company Is the owner of about
M per cent of all the stock of the North
ern Pacific Company and the owner of
ohout 76 per cent of all the stock of
the Great Northern Company.
Results of the Scheme.
"The scheme which was thus devised
and consummated led inevitably to the
following results:
"First It placed the control of the two
roads In the hands of a single person, to
wlu The Securities Company, by virtue
of Its ownership of a large majority of
the stock of both companies.
"Second It destroyed every motive for
competition between two roads engaged
in Interstate traffic which were natural
competitors for business, by pooling the
earnings of the two roads for the com
mon benefit of the stockholders of both
companies; and. according to the familiar
rule that every one Is presumed to in
tend what is the necessary consequence
of his acts when done wilfully snd delib
erately, we must conclude that those who
conceived and executed the plan aforesaid
Intended, among other things, to accom
plish these objects.
"The general question of law arising
upon this state of facts Is whether such a
combination of Interests as that above
described falls within the Inhibition of the
anti-trust act or Is beyond Its reach. The
act brands as "illegal" every contract, com
bination la the form of trusts, or otiiex
wisE, or conspiracy In restraint of trade
or commerce among the several states
or with foreign nations. Learned coun
set on both sides have commented on the
general language of the act. doing so. of
course, tor a different purpose, and the
generality of the language employed Is. In
our Judgment, of great significance. It In
dicates, we think, that Congress, being
unable to foresee and describe all plans
that might be formed and all the expedi
ents that might be resorted to. to place
restraints on Interstate trade or com
merce. deliberately employed words of
such general Import as. In Its opinion.
would comprehend every scheme that
might be devised to accomplish that end.
Definition of Trnat Applied.
"What is commonly termed a trust'
was a species of combination organized
by Individuals or corporaUons far the pur
pose of monopolizing the manufacture of
or traffic in various articles ana commodl
ties, .which was well known and fully un
"stood when the anti-trust act was ap
proved. Combinations in that form were
accordingly prohibited; but Congress, evi
dently anticipating that a combination
might be otherwise formed, was careful
to declare that a combination In any
other form. If in restraint of Interstate
trade or commerce, or If it directly oc
casioned or effected such restraint, like
wise should be deemed Illegal. Moreover,
In the cases arising under the act It has
been held by the highest Judicial author
ity in the Nation, and Its opinion has
been reiterated In no uncertain tone, that
the act applies to Interstate carriers of
freight and passengers as well as to all
ether persons, natural" or artificial; that
the words in restraint of trade or com
merce do jcot mean In unreasonable or
partial restraint of trade or commerce,
but any direct restraint thereof: that an
agreement between competing roads
which requires them to act in concert
and fixes the rate for carriage of passen
gers or freight over their respective lines
from one stats to another, and which by
that means restricts temporarily the right
of any one of such carrlera to name rates
for the carriage of such freight or pas
sengers over its road xb rr it justs. Is a
contract In direct restraint of commerce
within the meaning of the act, Jn that it
tends to prevent competition: that It mat
ters not wheher. while aeing under such
a contract, the rats fixed Is reasonable or
unreasonable, the voice of such a con
tract or combination being that It confers
powers to establish unreasonable rates
and directly restrains commerce by plac
ing obstacle In the way of free and unre
stricted competition between carriers who
are natural rivals for patronage: and
finally, that Congress has the power un
der the grant of authority contained In
Federal legislation to regulate commerce
to say that no contract or combination
shall be legal which shall restrain Inter
state commerce or trade by petting off
the operation of the general law of com
petition. Too Plain for Argonent.
"Taking the foregoing propositions for
granted, because they have been decided
by a court whose authority Is controlling.
It Is almost too plain for argument that
the defendants would have violated the
antl-trurt act If they had done through
the agency of natural persons what they
have accomplished through an artificial
person of their own creation. That Is to
say, if the same Individuals who promoted
The Securities Company, In pursuance of a
previous understanding or agreement, to
do so had transferred the stock In the two
railroad companies to a third party or
parties, and had agreed to Induce other
shareholders to do likewise, until a ma
jority of stock of both companies had
vested in a single individual or associa
tion of Individuals, and had empowered
the holder or holders to vote the stock as
their own. receive all the dividends there
on, and pro-rate or divide them among
all the stockholders of the two companies
who had transferred their stock, the re
sult would have been a combination in
direct restraint of Interstate commerce,
because it would- have placed In the hands
of a small coterie of men the power to
suppress competition between two com
peting interstate carriers whose lines are
practically parallel.
"It will not do to say that, so long as
each railroad company has Its own board
of directors, hey operate Independently
and are not controlled by the owner of
the majority of their stock. It is the
common experience of mankind that the
acts of corporations are dictated and that
their policy is controlled by those who
own the majority of their stock. In-
aeea. one of the favorite methods In
these days, and about the only method,
of obtaining control of a corporation Is
to purchase the greater part of Its stock.
It was the method pursued bv the North
ern Pacific and Great Northern Compa
nies to ootain control of the Chicago.
Burlington & Qulncy Railroad, and so
long as directors are chosen bv stock
holders, the latter will necessarily domi
nate the former and In a real sense
determine Important corporate acts.
Provides to Kill Competition.
'By' what has been done, the power
has been acquired (and provision made
for maintaining it) to suppress eompetl
tlon between two interstate carriers who
own and operate competing and parallel
lines of raiiroad. Competition, we think,
would not be more effectually restrained
than It is now under and by force of the
existing organization it the two rail
road companies were consolidated under
a single charter. It Is manifest, there
fore, that the New Jersey charter Is about
the only shield which the defendants can
Interpose between themselves and the
law.
'The resonlng which led to the acquis!
tlon of that charter would seem to have
been that, while as Individuals the pro
moters could not. by agreement between
themselves, place the majority of stock
of two competing and parallel roads In
tne nanas of a single person or per
sona, giving him or them the power to.
operate the roads In harmony and stifle
competition, yet that the same persons
mignt create a purely fictitious person.
termed a corporation, which could neither
think nor act except as they directed and.
by placing the same stock in the name
of such artificial being, accomplish the
same purpose. The manifest unreasona
bleness of such a proposition and the
grave consequences sure to follow from
Its approval compel us to assume that
It la unsound, especially when we reflect
that the law as administered by courts
of equity looks always at the substance
of things, at the object accomplished.
whether It be lawful or unlawful, rather
than upon the particular devices or
means by which It has been accom
plished.
tt Jersey Lair Sio Shield.
'So far as the New Jersey charter is
concern 1. the question, broadly stated
which the court has to determine, is
whether a charter granted by a state can
be used to defeat the will of the National
Legislature as expressed In a law relat
ing to interstate trade and commerce over
which Congress has absolute control.
Presumptively, at least, no charter grant
ed by a state Is Intended by the state
to nave effect or to be used for such a
purpose, and In the present Instance it Is
clear that the State of New Jersey did
not Intend to grant a charter under cover
of which an object denounced by Con
gress as unlawful, namely a combination
conferring the power to restrain Inter
state commerce, might be formed and
maintained because the enabling act un
der which the Securities Company was
organized expressly declares that three
or mors persons may avail themselves
of the provisions of the act and "become
a corporation for any lawful purpose.
This language Is not merely perfunct
ory: It means, obviously, that whatever
powers the Incorporators saw fit to as
sume they must hold for the accomplish
ment ' of lawful objects. The words in
question operate, therefore, as a limita
tion upon all the powers enumerated in
the articles of association which were
filed by the promoters of the Securities
Company, so that however extensive and
comprehensive these powers may seem
to be. the State of New Jersey has
said:
""You shall not exercise them so as to
set at defiance any statute lawfully en
acted by the Congress of the United
States or any other statute enacted b
any other state wherein you see fit to
exercise your powers.'
"But. aside from this view of the sub
ject, if the State of New Jersey had un
dertaken to invest the Incorporators of
the Securities Company with the power
to co acta in the corporate name which
would operate to restrain Interstate com
merce and for that reason could not be
done by them acting as an association of
Individuals then we have no doubt that
such a grant would have been void under
the provisions of the anti-trust act. or
at least that the charter could not be
permitted to stand in the way of en
forcement of that art. The power of
Congress over Interstate commerce is su
preme, tar-re aching and acknowledges
no limitations other than such as are pre
scribed by the Constitution Itself. No
legislation on the part of a state can
curtail or interfere with Its exercise: and
In view of the repeated decisions, no one
; can deny that tt is a tsgMmafa exsrdse
of the power in question
say that neither natural nor artificial per
sons can combine or conspire in any form"
whatever to place restraints on interstate
commerce or trade.
"It is argued, however, that such a
combination of tnteresta as was formed
and has been heretofore described was
lawful and not prohibited by the anti
trust act because such restraint upon
Interstate trade or commerce. If any, as
it imposes, is indirect, collateral and re
mote, and hince the combination Is not
one of that character which the Congress
of the United States can lawfully forbid.
it is pertinent, therefore, to inquire In
what way the existing combination that
has been informed does affect interstate
commerce. It affects it. we think, by
giving to a single corporate entity or.
more accurately, to a few men acting
In concert and In its name and under
cover of Its charter, the power to con
trol all the means of transportation that
are owned by two competing and parallel
railroads engaged In Interstate commerce;
and in other words, the power to dictate
every important act which the two com
panies may do: to compel them to act In
harmony. In establishing Interstate rates
tor the carriage of freight and passengers
and generally to prescribe the policy
which they shall pursue. It matters not.
ws think, through how many hands the
orders come by which these alms are
accomplished or through what channels:
the power was not only acquired by the
combination, but It Is 'effectually exer-1
deed, and it onerates directly on inter
state commerce notwithstanding the man
ner of Its exercise, by. controlling the
means of transportation, to-wit: -ine cars,
engines and railroads by which perrons
and commodities are carried, as well as
by fixing the price to be charged for such
carriages.
'Again. It is urged, tentatively, mat it
the existing combination, which the Gov
ernment seeks to have dissolved, is neia
to be one In violation of the anti-trust
act and unlawful, then the act unduly
restricts the right of the individual to
make contracts, buy and sell property
and Is invalid for that reason. With
reference to this contention, it might be
suggested (as It has been by the uov
emment) that as the situs of the stock
which the Securities Company has bought
Is In the States of Wisconsin and Minne
sota, which respectively chartered the
Northern Paclflo and the Great Northern
Companies, and the stock owes its be
ing to the laws of those states, ana as
each state has forbidden the consolida
tion of competing and parallel lines of
railroad therein and has likewise pro
hibited any consolidation of the 'stock and
franchises' of such roads, the contention
last mentioned Is entitled to little con
sideration In the case at bar. But. waiv
ing and Ignoring this suggestion, the ar
gument advanced In behalf of the de
fendants Is met and answered, so far as
this court Is concerned, by the decision
in Addison Pipe & Steel Company vs. the
United States. IS U. S. 528. 23, when) It
Is said, inter alia:
"Under this grant of power to (con
gress (the power to regulate eommrce
between the several states and with for
eign nations), that body, in our Judgment,
may enact such legislation and declare
void and prohibit the performance of any
contract between Individuals or corpora
tions where the natural and direct ertect
of such a contract will be. when carried
out to directly, and not as a mere Inci
dent to other and Innocent purposes, reg
ulate to any substantial extent. Interstate
commerce.'
Arsnmcnti Proved Baseless.
"Learned counsel for the defendants
further contend as follows:
That the anti-trust law was not in
tended to Include or prohibit combinations
looking to the virtual consolidation of
parallel and competing lines of railroad,
although such a combination operates to
stifle competition; that no relief can be
granted to the Government in tms in
stance, because the combination or con
spiracy of which 11 complains nas accom
plished its purpose, to wit: The organiza
tion of the Securities Company and the
lodgment of a majority of the stock of the
two railroads in Its hands before tne diu
was filed: and. finally that the combina
tion n roved was one formed In aid oi
commerce and not to restrain It." in other
words that it was one formed to enlarge
the volume of Interstate traffic and thus
benefit the public
The court cannot assent to either of
these m-ooostttons. The first, we think.
Is' clearly untenable for the reasons al
ready stated and fully disclosed in the
decisions heretofore cited. Concerning
the second contention, we observe that
it would be a novel, not to say absurd.
Interpretation of the anti-trust act to
hold that after an unlawful combination
Is - formed and has acquired the power,
which It had no tight to acquire, namely.
to restrain commerce by suppressing com
petition, and is proceeding to use It and
execute the purpose for which the combi
nation was formed. It must be left In
possession of the power that tt has ac
quired, with full freedom to exercise it.
Obviously, the act, when fairly Interpreted,
will bear no such construction. Congress
aimed to destroy the power to place any
direct restraint on Interstate commerce.
when by any combination or conspiracy,
formed by either natural or artificial
persons, such a power had been acquired:
and the Government may intervene and
demand relief as well after the comtina-
tlon Is fully organized as while it Is In
process of formation. In this Instance.
as we have already said, the Securities
Company made Itself a party to a combi
nation In restraint of Interstate commerce
that antedated Its organization as soon as
It came Into existence, doing so, of course.
under the direction of the very Individuals
wno promoted It.
May Be Good, bat Is IilrKOl.
"Relative to the third contention, which
has been pressed with great zeal and
ability, this may be said: It may be that
such a virtual combination of parallel and
competing lines of railroad as' has been
effected, taking a broad view of the situa
tion. Is beneficial rather than harmful.
It may be that the motives which Inspired
the company by which this end was ac
complished were wholly laudable and un
selfish; that the combination was formed
by the Individual defendants to protect
great Interests which had been commit
ted to their charge; or that the combina
tion was the Initial and a necessary step
in the accomplishment of great designs,
which. If carried out as they were con
ceived, would prove to be of Inestimable
value to the communities which these
roads serve and to the country at large.
We shall neither affirm or deny either of
these propositions, because they present
issues which we are not called upon to
determine and some of them Involve ques
tions which are not within the province of
any court to decide. Involving as they
do questions of public policy which Con
gress must determine. It Is our duty to
ascertain whether the proof discloses a
combination In direct restraint of Inter
state commerce: that Is to say, a com
bination whereby the power has been ac
quired to suppress competition between
two or more competing ana parallel lines
of railroad engaged In Interstate com
merce. If It does disclose such a com
bination, and we have little hesitation In
answering this question In the affirmative,
then the anti-trust act. as It has been
heretofore Interpreted by the Court of
Last Resort, has been violated and the
Government is entitled to a decree.
Decree of the Court.
"A decree in favor of the United States
will accordingly be entered to the fol
lowing effect:
"Adjudging that the stock of the North
ern Pacific and Great Northern Com
panies, now held by the Securities Com
pany, was acquired In virtue of a combi
nation among the defendants in restraint
of trade and commerce among the several
states, such as the anti-trust act de
nounces as illegal; enjoining the Securities
Company from acquiring or attempting to.
acquire further stock of either of said
companies, also enjoining It from voting
such stock at any meeting of the stock
holders of either of said rallrcad com
panies or exercising or attempting to ex
ercise any control, direction, supervision
or Influence over the acts of said com
pares or either of them, by-tirtce oi its
era Pacinc and Great Northern Companies
respectively, their officeEs, directors and
agents from permitting such stock to be
voted by the Northern Securities Company
or any of its age&ts or attorneys on its
behalf, at any separate election for direc
tors or oSctra of either of said companies:
and I likewise, enjoin them from paying
any dividends to the Securities Company
on account of said stock or permitting or
suffering the Securities Company to exer
cise any control whatsoever over the cor
porate acts of said companies or to direct
the policy of either; and finally permitting
the Securities- Company to return and
transfer to the stockholders of the North
ern Pacific and Great Northern Companies
any shares of stock of those companies
which may have been received from such
stockholders In exchange for its own
stock, or to make such transfer and as
signment to such person or persons as
are now the holders and owners oi its
own stock originally Issued In exchange
tor the stock of said companies.
A formal decree In accordance with the
decision was filed. Circuit Judges Cald
well, Sanborn. Thayer and Vandeventer
nearu the esse and all concurred in the
opinion, which was written by Judge
Thayer and Sled In St. Louis at the same
time tt was handed down In the United
States Circuit Court of Appeals in this
city.
The defendants are: The Northern Se
curities ComDanv. the Northern Pacific
Railway Company, the Great Northern
xiauway uompany, J. J. Hill. William
Clough. D. W. Jamn John R. Kennedv.
X P. Morgan. Robert Bacon. Geonre F.
Baker and Daniel S. Lemont, .
MERGER IS A TRUST.
(Continued from First Pag.)
clsion of the .court today aa a blow to
railroad enterprise. I should say that the
reverse is the case. ' Capital all over the
country is anxious to know Its rights In
the matter of railroad construction and
operation. Railroad men want to know
where they stand.
The decision today is Just one step
closer to a decision from the United
States Supreme Court, which shall be
final, for even It the Securities Company
had won today the Government would
probably have appealed. The question
was of such importance that an appeal
was assured, no matter who won. These
facts are certain. Both railroads held by
the Northern Securities Company still ex
ist and are doing a good business.
"When railroad men know exactly how
the law Is to be Interpreted they will
probably find good ways to see that prop
erties are operated economically and
profitably."
A conference of leading financiers was
held this afternoon In the office of J. P.
Morgan & Co. to discuss the details of
the decision and its bearing upon rail
road properties In the future.
An effort was made to see J. J. Hill,
but he kept himself In seclusion and de
nied himself to all callers. Mr. H1U bad
just returned from Europe, where be had
been for five weeks, accompanied by his
daughter. Miss Clara Hill.
Stock Takes n Tumble.
NEW YORK. April 9.-In the outside
market Northern Securities, which had
sold up to 106H. broke to 103 on receipt of
the news from St. PauL The stock closed
at 101 bid.
APPEAL MAY BE DELAYED.
Supreme Court Jfot Likely to Hear
Case Till October.'
, WASHINGTON, April 9.-Unless there
is very great expedition In bringing the
merger case to the United States Supreme
Court, and also In Its 'consideration there
after, the Supreme Court will not pass on
the case during the present term. The
court will adjourn finally In the latter
part of May, and will not convene again
until next October. Of the remaining
time of this term, only the next three
weeks will be devoted to argument, as the
call for docket will be suspended Fri
day. It is considered impossible that the
papers can be put In shape and the case
prepared for consideration of the court
within that time.
The court, however, sometimes has made
a special arrangement for the hearing of
emergency cases, and this precedent might
be followed in the present case. If desired
by all parties, and If the court should con
sider the exigency such as to Justify It.
Owing, however, to the importance of the
case, to the difficulty of preparing for it.
to the fact that the law under which it
must be tried is now, and that the time
for the Summer adjournment Is drawing
near. It Is not at all probable that a con
clusion can be reached during this term.
The law allows 30 days for perfecting the
appeal.
HOLE TO CRAWL THROUGH.
Securities Lawyer Finds Flaw In De
cree of Court.
NEW YORK, April . One of the lead
lng counsel in the Northern Securities
case said:
"As yet this Is an undigested opinion,
but. from the hasty glance I have given
it. I call your attention to the closing
phrase of the Judge's order, which prac
tically nullifies the whole effect of the
decision. It provides that the Northern
Securities Company may transfer and as
sign the stock of the Northern Pacific and
Great Northern' Railways now held by
it to such person or persons as are now
holders and owners of original stock In
exchange for the stock of the said com
panies. This right of transfer is" vital,
and it seems to me renders nugatory the
main conclusion of the court."
A representative of J. Pi Morgan & Co.
said the decision put a new light on the
entire matter, and would enable lawyers
of the Northern Securities Company to
work along new lines.
Ttock Island Deal Xot Affected.
NEW YORK. April 9. Ex-Judge Will
lam H. Moore, who Is one of the domi
nant factors of the Rock Island Company.
Is quoted as saying:
"The decision In the Securities case will
in no way affect the Rock Island-Frisco
deal. They are not competing lines, and
the case is in no way analogous."
Rome Settling; Down Attain.
ROME, April 9. A peaceful solution of
the strike continues to be probable. The
city has almost resumed its normal as
pect, the only difference being the ab
sence ot cabs. Many pilgrims, especially
Germans, have arrived for the Easter
functions. They will be received la audi
ence by the pope on Monday. In more
than 300 churches -ho"ly week services are
proceeding without Incident.
Catholic School Burned.
AUSTIN. Tex.. April 9. Edwards Col
lege, a Catholic school building, situated
three miles from here and valued with
contents at 1173.000. was today destroyed
by fire. The 2)0 students got out safely.
One Woman's Experience With a
Grip Remedy.
While suffering from a severe attack of
the grip and threatened with pneumonia,
Mrs. Annie 11. Cooley. ot Middlefleld.
Conn- began using Chamberlain's Cough
Remedy and was very much benefited by
Its use. The pains In the chest soon dis
appeared, tne cougn became loose, ex
pectoration easy ana in a short tune she
was aa well as ever. Mrs. Cooley says
she cannot speak tbo highly in praise of
this remedy. For sale by all druggists.
SINK THE RACE ISSUE
WAITERS O ,T APPBiU TO XORTH
TO E.TD CONFLICT.
Says Asitatlon About Political Rights
Has Injured 5erroe-Leave Set
tlement to Evolution.
CHICAGO, April J-Tbe annual banquet
of the Hamilton Club, which Is held each
year on the anniversary of the surrender
at Appomattox, took, place tonight In the
Auditorium Hotel. A large number of
local guests were present and others came
from distant states. Ex-Congressman
Francis W. Cuahman, of Tacoma, Wash.,
was to have delivered an address but
was unable to be present because of the
death of his father. The other addresses
were by Henry Watterson. of Louisville,
Ky.; Rev. Thomas P. Greene. Cedar Rap
Ida. Ia., and Edward L. Hamilton, of
Michigan.
Mr. Watterson. in responding to the
toast. "Peace Between the Sections," re
ferred to the "dual responsibility of the
North and South for African slavery and
the War of Secession." and to the "negro
question," which he said is- "a racial
problem to be1 solved by the process of
evolution, not by political agitation. He
said:
I appeal to you aa Republicans, and
through you appeal to the Republicans of
the United States, to have dona with the
conceit that, unless you stand by the black
man. that unless you continue him .as an
issue in partisan polities, injustice will be
done htm. In the bettering of his condi
tion and In the acquisition of property
he has made' wondrous progress the last
five and thirty years; and relatively great
er progress In the South than In the
North. He could not have done this with
out the sympathy and co-operation of the
Southern whites. He has made little
progress In the arts of self-government,
either North or South, because of the
agitation which has kept him in a state
of perpetual excitement, with no helpful
public opinion to moderate It. and has
been made the sport and prey of politi
cal exigency, always selfish and, with
respect to him, more or less visionary and
heedless.
The negro can never become in any
beneficent or genuine sense an Integral
and recognized part of the body politic
except through the forces oi evolution,
which are undoubtedly at work, but which
in the nature of the case- must needs
go exceedingly slow. Where there is .one,
negro fit for citizenship, there are mil
lions of negroes wholly unfit. The hot
house process has been tried and It has
failed. If. Invested with every right en-
Joyed by the whites, the blacks, gaining
in all things else, have brought corrup
tion Into the suffrage and discredit upon
themselves. Is It not a kind of madness
further to press artificial methods which.
however Justified theoretically from edu
cational lookouts In Michigan. Iowa and
Wisconsin, fall helpless to the ground
In their practical application to the semi
barbarous tollers ia the cotton fields and
corn, lands of Alabama. Georgia and South
Carolina. I appeal to you equally In
what I conceive the true Interest of the
black people along with the white people
of the South: nay. and of the North as
well, for all our Interests are Indissolu
ble. Interchangeable and that, can never
be good or bad for one section which. Is
not good or bad for the other section.
"Modem invention, which has already
annihilated time and space. Is surely
erasing sectional lines. It ought not to
leave so much as a reminiscence of sec
tlonal strife. If that dread spirit should
come again Its evil winds will not blow
between the North and the South, but
between the East and West, the homs of
the dilemma presented by extremes In'
volvlng a new. Irrepressible conflict be
tween capital and labor. May that day
never come, but In case It does; the con
servatism of the North will need the con'
servatlsm of the South. The law-loving
forces of the North will need the law-
breeding Instincts of the South. The
Americanism of the North will need the
Americanism of the South."
"WILL HOT ACT OX RACE ISSUE.
Union Leasme Tables Report Favor
tnar Investigation In South.
NEW YORK. April 9. The Union
League Club committee on political re
form made Its report tonight on a reso
lution submitted two months ago empow
ering the committee to Investigate recent
legislation in Southern States disfran
chising negroes, and also on a resolution
Introduced by Warner Miller demanding
that Congress enforce the 14th and 15th
amendments to the United States Consti
tution by the reduction of the number of
Representatives In each state where the
franchise has reduced the proportion to
the extent of disfranchisement. Mr. Mil
ler's resolution also Indorsed the attitude
of President Roosevelt on the Monroe
question.
The committee's report Included the res
olutions, with slight modification. There
was a discussion that continued until
midnight, but which was said to have
been wholly harmonious. The report was
tabled by a vote of ES to CO.
May Impeach Arkansas Governor,
LITTLE ROCK, Ark., April 9. The
ways and means committee of the House
today filed Its report on the investigation
of charges preferred against Governor
Davis by Attorney-General Murphy on
behalf of the State Penitentiary Board.
Seven of the 11 members signed the ma
jority report, finding certain charges sus
tained, the three principal ones being the
alleged misuse of contingent funds, use of
a private car furnished by the Choctaw
Railroad, and accepting ot coal from
concern which was supplying the state in
stitutions, no evidence being introduced ot
his Intention to pay for it. Three mem
bers signed a report exonerating both
Governor Davis and the members of the
penitentiary board from any action of a
criminal" nature. A motion has' been made
to accept the majority report. If It Is
adopted, impeachment proceedings may
follow.
Must Answer for Contempt.
CHICAGO. April 9. Judge Hanecy to
day cited the Election Commissioners to
anDear before him on the charge of con
tempt ot court. The hearing Is set for
tomorrow. The action was taken be
cause of the opening ot the Lorimer-Dur-
borrow ballots, in defiance of the Injunc
tion Issued by Judge Hanecy. It is re
ported that an agreement has been made
to have the matter before the court, and
to appeal it to the supreme tribunal of
the state
Champion Negro Rights.
SCHENECTADY. Jf. Y.. April 9.-At a
mass meeting held here last night resolu
tions were adopted with much enthusiasm
Indorsing the action of President Roose
velt In appointing negroes to oraoe ana
upholding the rights of the colored peo
ple to partake of the fruits of citizenship.
For Direct Election of Senators.
SPRINGFIELD. I1L, April 8. The
House unanimously passed the Senate
Joint resolution favoring a constitutional
amendment for the election of United
States Senators by a direct vote of the
people.
Candidate far Long's Seat.
DODGE CITY. Kan., April 9. C F.
Cllne. of Stafford, was nominated today
by the Democrats of the Seventh Con
gressional district to succeed Chester L
Long.
Want Polygamy Forbidden.
KANSAS CITY, Mo.. April 9. The con
ference of Reoorganlzed Latter-Day
'Saints In Independence today denounced
polygamy In resolutions which called for
an amendment to the Constitution of the
United States which would prohibit It.
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EXPLOSION ON THE IOWA
SHELL BURSTS BIG GUN AJTD KILLS
THREE MEX.
Fragments Tear- Through Decks and
Crush Seamen as They Sit at Din
nerAll Horribly Mangled.
PENSACOLA. Fla.. April 9. A disas
trous explosion occurred on the battle
ship Iowa today while the vessel was at
target practice in the Gulf. The forward
port 12-lnch gunt burst from a premature
explosion ot a shell. II feet ot the piece
outside the turret being demolished. Three
men were killed and five Injured, two
seriously.
The killed:
Flrst-Class Seaman IKele.
Ordinary Seaman Purcell.
Gunner's Mate Berry.
The Injured: Flrst-Class Seaman Gercht,
Ordinary Seamen Tuesdale, Brown, Roths
child and Farrucker.
The men killed and Injured were on the
second or gun deck at mess. Three pieces
of the exploded gun. each weighing over
a ton. passed downward through the spar
deck, falling upon the men at mess. In
stantly killing the three named. All of
the men were horribly mutilated. The
heavy missiles, after passing through the
gun deck, continued down to the intra
deck, where they came in contact with
the armored deck, the heavy steel bringing
them to a stop, thus saving the engineers
and firemen who were at work below. Al
though the upper decks were covered with
men. none was seriously injured.
The explosion occurred Just as the mess
had been sounded. The firing was to have
ceased after tne snot tor tne dinner nour.
The range had been set, and the Iowa
was steaming along at a speed of 12
knots an hour when the officer In charge
of the 11-lnch turret gave orders to load
and fire. The time fuse was set. the
otece charged, the breech closed and the
word given to fire. Following the report
ot the gun there was a smothered noise
as the shell exploded midway in the gun
and pieces of the bursted gun and shell
were scattered oroaacasc xnree srca-i
holes were torn through the deck.
The Massachusetts, six miles distant,
was signaled for aid, and one ot the cut
ters put off with a surgeon and assistant
surgeon. The Injured men were taken to
the hospital and their injuries dressed.
The dead were brought to Pensacola.
Some claim the explosion was caused
by a defective shell, and others think
that the frequent firing of the piece at
Culebra during the. Winter, added to the
.work done here during the past ten days,
so strained the piece that the force of the
charge burst the gun. -
Names of Killed and Injured.
WASHINGTON. April 9. A long dis
patch came to Acting Secretary Darling,
o fthe Navy Department, tonight from
Rear-Admiral Hlgglnson. commanding tbo
North Atlantic squadron at Pensacola.
It Is In cipher, and gives what are sup
posed to be the names and next of kin
of those suffering 'from the accident on
the Iowa. They are:
F. L. Berry, ordinary seaman: next of
kin. Mrs. Hattle Wilson. Las Vegas, N. M.
E. L. Purcell. landsman; next of kin.
Mrs. Ellen Purcell. Washington.
Walter IKel. seaman: next of kin, A.
Moore, St. Charles. Mo.
The names of those who were Injured
are: G. Rothschild, coppersmith; I. E.
Tuesdale. landsman; Paul Gocht, quarter
master; F. Parrucker, gunner's mate, of
the third class.
TORNADO IN KANSAS.
Serious Damage Reported at Town
ot Altamontt Jfear Oiweso,
KANSAS CITY. April 9. A special to
the Times from Joplln, Mo says:
It Is reported tonight that a tornado
Lparaed over Southeastern Kansas at
o clock this aiiernoon, ana juuuouw.
small town 50 miles west of this city, suf
fered much damage. A telephone mes
sage from Oswego. Karu seven miles east
of Altamont, stated that there was a se
vere storm In the vicinity ot Altamont.
but nothing Is known as to its extent.
Passengers on an east-bound 'Frisco
train stated that It was reported at Alta
mont as the train passed through there
at 7 o'clock that a tornado had passed
over the town and had done much damago
in the country near there. No further
particulars can be learned.
MORE DEATHS IX ALABAMA.
Two McCoy Children Expire and Two
Others Can't Live.
HANCEVILLE. Ala.. April 9. Two more
deaths resulted today from the tornado
which swept the country west of here
Wednesday morning. The dead are:
Isabel McCoy, aged 8. and Effle McCoy.
Two other members of the McCoy family
are also expected to die. One of the Odell
children. It ia thought, will also die. being'
Injured Internally.
Reports of the storm damage across the
river reached here today. The storm
Jumped to Summit, In the northern part
of Blount County, where several persons
were seriously Injured and a dozen bouses
and barns destroyed.
Sudden Death of Hilary Bell.
NEW YORK. April 9.-Hllary Bell, the
dramatic and musical critic of the New
ers
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took up portrait painting after coming
to this country and later went Into news
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the time of Its Inception, as musical and
dramatic critic and has been there since.
Mr. Bell also was editor ot the Insurance
Economist.
MAY KILL. MOUNTAIN LIONS
Part Authorities Have Some Sport
Reserved for President.
CINNABAR. MontT Anril 9. President
Roosevelt made! an early start this morn
ing from his headquarters In the Park
ior an extended trip through certain por
tions of the reserve. There are a large
number of mountain hens In the Park,
and as the authorities are making a de
termined effort to exterminate them. It
Is possible tho President may get a few
shots during his stay.
Notwithstanding that numerous notices
had been given to the outside world that
no newspaper men would be allowed In
the Park while the President was there,
one enterprising reporter tried to force
his way in yesterday. He rode a horse
and had a dog with him. The man was
arrested before he had proceeded far.
and the dog shot. Later the correspond
ent was released. ,
Secretary Loeb received no word from
the President today beyond the announce
ment that he had left his headquarters
for a trip Into the Park.
Chief Paymaster in Philippines.
WASHINGTON, April 9. Major George
R. Smith has been designated as Chief
Paymaster of the Division of the Philip
pines, relieving Lieutenant-Colonel
Charles II. Whipple. Deputy Paymaster
General, who has bee nordered to- this
country to report to the Adjutant-General.
Major Elijah H. Halford, who has
been serving In the Philippines aa Pay
master, has been relieved of duty and he
will report to General Corbln In Wash
ington for duty.
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Some must die on mountains high
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End lives of pure devotion.
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