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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (March 22, 1910)
3 TIIE MOHNIXO OREPONIA3T, TUESDAY, MARCH 22, 1910. PACKERS INDICTED AS FOES OF TRADE National Packing Company and Ten Subsidiary Con cerns Accused. . ALL-BIG FIRMS INVOLVED Control of Smaller Companies Is Al leged to Have Been Bought Up. Suit for Dissolution. Befrlns. Company Enters Denial. CHICAGO, March 21. Klprtrt weeks utt er it had begun its investigation of al leged violations of the Sherman anti trust law. the Federal frrand Jury to day returned Indictments against the Ra tional Packing: Company and 10 Bubsidl nry concerns. Immediately upon announcement of the Indictments before Judg Kencsaw M. Xjandls. the Government filed a suit seek ing the dissolution oftthe packing com pany. The suit Is one In equity and. beside Jhose indicted, 16 firms and In dividuals are made defendants. In a statement issued on behalf of the National Packing Company, Ralph Crews, its general counsel, tonight gives some inkling of the determination to flght the Government to the limit. His statement follows: Violation of Law Denied. "The company was organized In March, 1903, for the purpose of economizing In operation of certain subsidiary corpor ations named jointly with it in the In dictment returned today by the Federal grand jury for the northern district of Illinois. Its organization was directed by the best counsel obtainable, who then believed and now believe its organiza tion and the operation of Its subsidiary companies In no way transgressed the privileges of the Sherman act; and in this respect it Is practically similar to nearly all the large corporations of the country. "The total percentage of the business, done by the corporations controlled by the National Packing Company forms but a small part of the whoe volume of the packing industry. Competition Still Continues. "This proportion could not constitute a monopoly in any sense of the word. Instead of operating to restrain the trade of its subsidiary companies, as alleged in the indictment, it is a fact the com panies have all shown a healthy increase since the formation of the National. The company Is operated by its officers purely as a competitive and independent factor in the trade. "The Indictment today returned and the bill in equity today filed by the District Attorney are directed at the or ganization and operation of this com pany. These operations have, at all times, been frank and open, and we are confident that the courts will sus tain our contentions on their legality." Many Big Packers Involved. The defendants are: The National Packing Company, G. H. Hammond Company, Hammond Packing Company, Omaha Packing Company. Anglo-American Provision Company. Fowler Packing Company, United Dressed Beef Company, St. Louis Dressed Beef & Provision Com pany, Western Packing Company, Colo rado Packing & Provision Com pany, New York Butchers' Dressed Meat Company, Continental Packing Com pany, Armour & Co., Swift & Co., Mor ris & Co., Edward Tilden, Louis F. Swift, Edward F. Swift, Charles H Swift, Ij. A. Carton, Frank A. Fowler, J. Ogden Armour, Arthur Meeker, Thomas J- Connors, Edward Morris, Thomas E. Wilson and L. H. Heyman. Tlie bill charges that prior to May 10. 3302. Armour & Co., Swift & Co.. and Morris & Co. were parties to an unlawful combination to fix prices and restrain trade in fresh meat; that on that day suit was brought by the United States under the Sherman anti-trust law to prevent their violations of the law, and that as a result Judge Grosscup on February 18, 1903. filed an opinion stating he would grant an injunction in accordance with the Government's bill. The final order in the case, however, was not entered until April 4, 1903. Mean while, on March 18, 1903, the National Packing Company was organized, all of the stock of which was owned by the Armour, Swift and Morris interests, the parties to the original alleged combina tion. Competing Companies Bought. On the date of its organization, the bill states, there was turnofl over to the National Packing Company by the Armour, Swift and Morris interests control of a number of packing con cerns which up to that time had been competitors, not only of the Armour, Swift and Morris Companies, but of each other These independent competing con cerns which the bill alleges were turned over to the National Packing Company are the concerns named as defendants in the indictment The bill charges that the necessary effect of the union of these interests In the management of the National Packing Company Is to destroy com petition, not only among the constitu ent companies, but also between those companies and the Armour, Swift and Morrison Companies s The prayer of the bill is that the management and control by the Na tional Packing Company of its subsi diary companies may be declared to be in violation of the Sherman act and unlawful and void, and that each of the individual defendants and the Na tional Packing Company and the Ar mour, Swift and Morris companies may be enjoined from exercising any control whatsoever over the subsidi ary companies; that the subsidiary companies may be enjoined from pay ing any dividends to the National Packing Company, and that the de fendants may be enjoined and prohib ited from carrying on any Interstate commerce until such time as they have satisfied the court they are no longer party to any unlawful combination In restraint of trade. HOUSE BECOMES PEACEFUL (Continued from Flrwt Put) attitude toward the men he had de nounced Saturday night, and there was almost a certainty "that the Speaker had been misquoted In his remarks,' or something of that kind. Parne to Go on Rules Committee. One of the strongest evidences of the day's tendency toward peace was the nomination of Majority Leader Payne fox a place on the new rules committee by Representative Norris. the leaier of the insurgents and au thor of the resolution tba precipi tated th reoent war. Bepreaentatlve Norris xaM tihat as .Minority jeaaer ciarit was to be a member of the committee, he believed Mr. Payne also should be on the com mittee. Half the House appeared to find something humorous in the situation and the bitterness and rancor of the last few days appeared gradually to dissipate. Whether It has In It any. dent of one legislative day cannot be loretoidL Republican Caucus Saturday. The Republican caucus on the selec tion of the new rules committee. It was announced by Representative Cur. rier, would not be held before the latter part of the week, probably Saturday night. Nearly all the Insurgents, both those who voted for and against the Speaker last Saturday, announced they intend. to enter the caucus. Representative Hayes and. one or two others early In the day declared they would not, under any circumstances, enter the caucus unless they had assurances as to who the new members of the committee would be and that they would be sat isfactory to the Insurgents. Many regular Republicans volun teered the opinion that the insurgents should be represented on the rules committee. A few, but only a few, asserted that they should not have representation. Leaders of the Insur gents said they would hold no meeting before the Republican caucus. Norris Explains Position. Representative Norris, author of the resolution which overthrew the old rules committee, said today. We don't insist on representation. All we want is a committee of fair men. I have no doubt the Insurgents will enter the Republican caucus un less something Is done by the regulars to cause trouble. It all depends upon the attitude 'of the other fellows. If they want to accept the opportunity they now have to go ahead, everything will be all right. What will happen cannot be foretold." "I voted against the Burleson reso lution to declare the Speaker's chair vacant," said Norris, "because it was a fight for principle and not one of personalities. I did not wish to see the House precipitated into chaos and disorder from which It probably would not emerge for weeks, to the detriment of Important pending legislation. "Our victory already had been won When we deprived the Speaker of his most powerful weapon the appoint ment of the rules committee. I had only a nloment to think It over and I decided it was better to place party welfare above personal revenge. Xori-Js Supported Cannon. ! "I voted for Cannon for Speaker at the beginning of the present Congress, not because I was for him. He had insulted and humiliated me and he had taken me from all Important commit tees. We had not spoken for two years. But I voted for him regardless of these facts, because I did not want him to have opportunity in future to discrim inate against me and. declare that he did so because I was a 'bolter.' -I still thlnlc I did right Saturday when I voted to retain Cannon In the chair. Events, - I believe, will Justifv me." It was suggested to Mr. Norris if the Republican caucus should name six men dominated by Speaker Cannon tue new rules committee scarcely would differ from the old one and the "In surgent" victory-on the rules question would be practically vitiated. Victory Is for Future. "The victory may not show so much In the present Congress," answered Mr. Norris, "but In the years to come it will be in evidence. We have taken the Speaker himself from the rules com mittee and have taken the naming of the other members out of his hands. The members of that committee hereafter will not be under the slightest obliga tion to the Speaker, but wlil be respon sible to the House alone for their ap pointment. "Also the House can change the rules committee If it does not obey the wishes of the House." Mr. Norris vigorously denounced the attitude assumed by the Speaker toward the Insurgents since. the vote Saturday. "It all depends on how the Republi can majority conducts Itself toward the Insurgents in the future as to what our own actions will be," he continued. "When the Speaker denounces us as 'cowards he Is but widening the split In the party and making our own in surgency more intense. We are not cow ards, but were honest, conscientious men when we voted last Saturday not to de throne the Republican Speaker of the House." Democratic Caucus Wednesday, The Democrats, through Minority Lead er -Champ Clark, acting for their caucus chairman. Representative Clayton, of Alabama, who is absent, called their cau cus for Wednesday night. Three of their selections are sure to be Champ Clark, of Missouri; Fitzgerald, of New York, and Underwood, of Alabama. Nothing but unanimity of sentiment is expected in the Democratic caucus. Some of the committees began work again today and by tomorrow it was expected that the grind of legislation, including measures of President Taft, again will be In full swing. Change of System Suggested. A complete revolution in the system of business in the House a change that proposes to transfer the control of the legislative business to a committee on committees is impending as the result of Speaker Cannon's denunciation of the Insurgents In his speech before the Illinois Association Saturday night. Already a proposed measure has been drawn by a prominent Republican in surgent and may be introduced at any moment. The resolution would create a com mittee on committees toconsist of 15 members, nine Republicans and -six Democrats, all to be elected by the House. This committee could be vest ed with the duty of selecting commit tees instead of leaving that power in the Speaker's hands. The membership could be distributed geographically, so that the Interests of every section would be protected. The resolution proposes even greater power for that committee. Jurisdiction of conference reports and of appropriation bills, thus enabling the 15 members representing both parties to control the House's business. It Is puroposed to give the general committee power to take business out of the regular standing committees in the event of dissatisfaction -with the way business is being administered In the regular committees. OTHERS MAY BE BARRED, TOO Chairman and Floor Ijeaders Ineli gible for Rules Committee? WASHINGTON. March 2L Inasmuch as the Speaker has been barred from the rules committee, it was suggested today in informal discussion among reg ular Republicans that the two floor lead ers and chairmen of committees also might be declared Ineligible to serve on the rules committee. Minority Leader Clark is a member of the old committee. The broad application of the principle that the Speakership Inhibition might also be construed to apply to the chair men of committees, who might be in fluenced in that committee by their nar rower Interests In their standing com mittees, would bar Payne, head of the ways and means committee-; Tawney, of Minnesota, chairman of appropriations, and Mann, of Illinois, chairman of in terstate commerce. F OREIbNGONGERNS OUT-GRAFT NATIVE German Insurance Companies Spend More at Albany . Than American. BILL IS 'BOUGHT THROUGH' Investigation Brings Out Startling Testimony of Bribery Among Leg islators Who Pass Law of Benefit to Reinsurance. NEW YORK, March 21. Out of the mass of promising generalities that has characterized the fire Insurance Inquiry there came today testimony that three foreign Insurance companies had paid handsomely to have the so-called Grady reinsurance bill passed by the Legisla ture at Albany in 1904. The bill was passed and Is still a law, notwithstanding it was opposed by do mestic companies who subscribed $10,000 for the purpose and placed it in the hands of the late George P. Sheldon, one time president of the Phoenix Insurance Com pany of Brooklyn. Bill Is "Bought Through." These incidents were described on the stand by E. H. A. Correa, vice-president of the Home Fire Insurance Company, In whose opinion the bill in question was "bought through" the Legislature by the foreign companies. ' Just how the fund raised to combat the measure was spent was not made clear, except that Mr. Shel don used it In employing counsel for traveling expenses and "for entertain ments In going to Albany." But New York State's capital was not the only point Of interest to the National Board of Fire Underwriters, according to the testimony of the day. There were intimations of an organised system of in fluencing legislation throughout the coun try. Graft In Other States. It was shown that In the years to which the inquiry has been congined, 1S01 to 1906. large sums were spent for the most part nominally as "counsel fees," to put through or to suppress bills in many states, according as they affected the in terests of the company. No companies were specified, however. It was even suggested that the work of the insurance men -extended to Con gress. William Hotchkiss, state superinten dent of insurance, touched on. this point during Correa's examination. He Intro duced in evidence a bill for $10,000 al lowed by the National board of fire underwriters, of which Correa was a member. This bill was presented by Emmett Rhodes, "for services rendered In connection with the repeal of the stamp tax act." The bill was dated July 16, 1903. but it was not shown in what capacity Emmett Rhodes acted, not because I was for him. He had me." Congress May Be Involved. The law in question was one passed, by Congress at the time of the Spanish American war, levying a tax upon fire insurance policies. "Was this $10,000 spent in connection with the repeal by Congress of the stamp tax act?" Correa was asked. The witness said he did not know, and Mr. Hotchkiss dropped the matter. He said later, however, that he would make further inquiry along this line. Correa's testimony relating to the Grady bill came out through the read ing, by Mr. Hotchkiss, of a letter writ ten by the witness to a friend in 1904. In this letter Correa said the bill had been "bought through the Senate" and he added that it had been passed "with the avowed understanding that the men responsible for its passage would de fend It and take care it was not re pealed, until 1906." The bill is still a law. ' Two Companies Dominate. Pressed for details on the passage of the measure, Correa'was unable to ea" how much had been expended by the foreign companies, but he said "Possibly $5000." He said, however, that this was paid to lawyers and not to legislators. .Mr. Correa said the bill In question was one in reference to the reserves which insur ance companies are required to maintain and was. so worded It gave an unfair ad vantage to the reinsurance companies. with which the companies writing poli cies divided the risk. "Two of these reinsurance companies wanted to deminate things at Albany, r,nd thev succeeded." said the witness. They were the Munlch'Relnsurance Com pany and the Prussia Reinsurance Com pany. The Munich Company made no bones about admitted that .it was spend ing hioney to have the bill passed. More to Be Found Out. "Who told you so?" Mr. Hotchkiss asked. "Carl Schreiner, a manager of the Munich Reinsurance .Company." "Issue a subpena for Mr. Schreiner," Mr. Hotchkiss told hisk clerk. "I agree with you," continued Hotchkiss, "that this is a bad bill, and I would like to learn more of the fight against it." Various large payments to Influence legislation were ' brought out today. The largest amount mentioned so far was told of In the testimony of Colonel A. H, Wray, manager of the Commercial As surance Company, limited, of London. Colonel Wray Is a member of the Na tional Board of Fire Underwriters and.lt was largely through his testimony that the . activity of Insurance men In other parts of the country was brought out. He said the late George P. Sheldon had received $1300 from hi mas a tart of a fund of $19,000 which was to be used ngr,'nst hostile legislation, chiefly In the West. GRAFTERS ARE TO CONFESS (Continued from First Jan. Weber was unable to remember all the men to whom he had paid money, but he checked them up by having the list of councilmen read to him from a city manual. Money Received in Many Ways. The ways In which he money was delivered to them were maney. as de scribed by the confessing councilman. Some had It thrust Into their hands, while standing In public places; some received it in the mail; while others had envelopes adroitly slipped into their pockets while they admired adjacent buildings. District Attorney William A. Blakeley today extended the time limit by 24 hours within which others may .come within his Immunity proposition. After that time warrants will be Issued for all who have failed to appear and these will be vigorously prosecuted. The Jury was ordered to "report and continue the investigation tomorrow. In all the indictments the -men are recom mended to mercy If they come into court voluntarily. Two Gangs Bribed Men. While many of the Indictments were made In connection with the passage of the ordinance naming banks as city de positories, fully as many more bribes were in connection with, the ordinance In which .the olty vocate a South eide street 'for the use of a manufacturing concern. District Attorney Blakeley said, ths method of bringing the men before a special court and granting them Im munity wea deemed for the best interests of the publio and threatened the limit of the law to. those who persisted In fight ing their oases. Klein 1b still guarded by the detec tives. He said today: Why Klein Confessed. You know there is supposed to be honor among thieves, but I stood It as long as I could. "When the highest court In the tate refuses to hear your appeal, they (referring to his attorneys) can't help you much. "I followed the advice of mv avrtonvevs and as a result X served a '30-days' sen- j tence in Jail for contempt. I also had the advice they gave me, which landed me In jail. Now. I believe when your attorneys can't help you any further, a man had better try to help himself end his family as well as do something for the publla." CHILD'S SUCCESS, STUDY PROF. JOffOX OBJECTS TO PBES-L'XT-DAY SYSTEM. Student's Own Ideas, Not Those of Writer, Textbook or Teacher, ' Make for Development. How to educate the child to make a success In life was the subject of Pro fessor Knox's second lecture last night at Chrlstensen's hall. Eleventh and Yamhill streets. In speaking of the plan of educating children the professor said that there were many kinds of schools and teach ings, but the chief cornerstone is man, who is now to be studied. The child has not been taught or en couraged to express his or her ideas, but Is continually being scolded for not getting and repeating what some one else has said. The child has always led all advancements and has decided Its career before it reaches the age of 1 so-called years. China established a system of teach ing that the child was bad and a thing evil, but the cat, dog and rat Is good and, this system of teaching Is being carried out in our present teach ing and the children are being sent to the reform schools and to the juv enile courts. The statistics show that but 5 per cent of the graduates from our schools succeed as business men and women. Columbus, when a child of 7, decided on his success and car r.'ed out his Ideas. Franklin, when a boy of 14 years, was writing articles for his brother's ptper, under a nom-de-plume. Edison exercised his own individuality without parental restraint and made a success. It is intelligent men ' who do things, yet we have been singing that we were not equal to an angle worm and put on an inquisition law to the child to crush out his ambition and tell him continually to stop asking questions. "I do not condemn any system of teaching, yet there Is not money enough to Induce me to teach the child to be a wreck and failure in life as he is today under the present system of Instruction. The child is the only text book that any teacher needs. Individ uals, as they develop their bodies, build their own thoughts into them. This if all the teacher need know. "It is the student's own ideas that will make the" successful, and not the The only 4-minute records that are right! Columbia Indestructible Cylinder Records 50c. They fit any make of phono graph or graphophone (with 200 thread attachment). They play the complete selection averaging fully 4j minutes clearest, most brilliant tone you ever heard and they NEVER BREAK and NEVER WEAR OUT! "The only 4-minute records that . are right." ' Sold by your Dealer or COLUMBIA PHONOGRAPH CO. 371' WASHINGTON ST. " Talking Machine Headquarters The Columbia Columbia Machines Gratonola ' and Records 853 WaihlBKloD tU-, at Park 200,000 Votes Tree on Big Canoe Contest. See A. B. STEINBACH & CO. V dS?i:.- The seal of popular ap proval haa been placed on Knox Hats by leaders in the fashion, financial and business world. , Gratlemen'a Hats Buffum & Pendleton ' Lmdiei' Hat. Olds, Wortman & King WOMAN owes it. io her self, her family and pos terity to be beautiful well kept teeth lend an added charm of beauty to die face Lyon's PERFECT nmn wmimk aa JKr VP w w i& 1 j t 1 . cleanses, preserves and Deauu fies the teeth, prevents tooth decay and imparts purity and fragrance to the breath. ideas of the textbook writer or the teacher, either." The lecture for- tonight will be on the "Law of Mental Healing." Coos Poultry Men Org-anixe. MARSH FIELD, Or., March 2L (Special-) Ioultry raisers of Coos County held a meeting' at the Armory In North Bend and organized the Coos Poultry & Pet Stock Association. A. W. Myers, a North Bend merchant, is the temporary president. Another meeting will be held soon to elect permanent officers and adopt a constitution and bylaws. The purpose of the organization Is to further the poultry Interests of the county. On account of the high price paid for eggs In the local market . and the fact that dressed poultry always brings a good figure, the industry a- a money making one has attracted many, and quite a number of poultry ranches have been established. Up fco mm W. M. LADD. President. :3V-4 J- v-r -a. Or. " . 3 . if ,.f liad tasmv-iJ k'An Interstate Life Insurance in E. COOKTNGHAM, Vice-President. S. P. LOCKWOOD, Vice-President and General Manager x HARRY RICHEY, Manager Portland Agents HOME OFFICE,. LUMBER EXCEAKGE BLDG., PORTLAND, OR. IT WILL GREAT SAT If You CHESTERFIE Ready to Don Next Sunday Morning; You must iiave a rie-w Suit for Easter, and you know Gray's Specialty Clothes Shop is the place to get the correct style and best quality. Chesterfield Suits and Overcoats priced $20 to $5Q. Come early in the week and make your se lection, and we will fit you ready for Easter. R. M. GRAY 273-27S Morrison, AT FOURTH tithe !HoiisewI1f The Eggless Cake m an original recipe that can only be made successfully with Egg-Phosphate Bkmg Powder, because Crescent Is the Original Egg Phosphate Baking Powder It Is not an imicatkm- nor sv substitute' for any other brand. Look for the name "Crescent" and the Blue and Gold label, and it will pov to yon its wonderful raising power, ita never-failing abil ity to prochice the most delicious risen foods, and its economy in tha baking. It contains nothing bat what is found in the egg and the grain of wheat the vital phos phates. Price 25c per pound io more, no lass. CRESCENT Seattle, HOME COMPANY BUT ww-b..s. -w-.-.-.j II 111 gill g WlUUCy xx-fAX :v Other States to Oregon BE A EFACTION Have a MFG. Wash. CO. T. B. WILCOX, sident. j Company M. M. JOHNSON. Secretary. LD SUIT 7 1