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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Nov. 1, 1911)
TITE MORXIXG OTIEGOXTAX, WEDNESDAY, NOVEMBER 1. 1911. POWER USURPED BY COURT, SAYS OLNEY Functions Belonging to Legis lative Body Wrongly -Assumed. CONGRESS SHOULD ACT I -.tT-tarjr of Slate Irrtrr Law Ma L Ins Body Is Onljr One to Prcltlo What Trade Combi nations Shall Lltf. from Flrt r.s. dependence anl co-op-ration are loo rl.irinc and t"0 appalling to be wel ci.rr.ej by the sturdiest enemy of the present order of tlilnga, ossrt If. Takesi f If big buslneis Is to continue, though ss also the reUtlms to It of the Na tional Juilicl.iry as defined In the lat est trim decision, tha result Is that the National Supreme Court has taken up .n Itself practical charge of the hi:ne of the country. Nine-tenths i f It will be tione br the combinations which will effectually control the oth er one-t-nth and the existence, the hsracter and proceedings of all will I e ipen. lent Upon edicts of the Su preme C'Mirt. Was ever a country's lu llclurr In tht position before Two things It Is b-lleve-l. may be riniHer.t:y a'-'rted In polnf of law t e pre-nt po:tl-n of te court Is not t.nnb'-. im!rs the Corstltutlon Is to rewariied as obs 'cte and the Xa:!on al f 'i ilciarv l as become clothed with i'-ifKacIv anil administrative as well a. jti't1'!-'! furv-tlons. In j.olnt of fact, the task of super vising the bustnes combinations of fi.i.i' o.irtO peU'le. of passing Judgment .p"n tr.e reawnableress of he Innum erable partnershl: a. firms, association n1 corporations by which that busi ness is done. Is a task Incapable of real performance by the National courts, be cause reasonaMness la never the uni in two m-. but In each must be sep nrately investigated and determined. Sappoaltltlaam fwe Cited. What must happen, perhaps, will ba ier.ter realised if we ansumethe doc-t-:ne laid down In the recent trust -es to apply to re;ra1nts of trade other than those arising from business combinations. I'uites on inports for Instance, op erate to restrain trade In the most ef fective manner. Suppose Congress, af ter giving a list of dutiable articles, should enact that the rate of duty In each case should he a reasonable rate as determined by the National courts, or should be a rixed rale, or such other rate as the courts might find reason s', le. The refult would be that a crowd of t.iriff cases would be likely to occupy tno-e courts to the exclusion or detri ment of all other cas-a and to produce U'-h a congestion of business as to p-Hc!lcslly ft 'p the wheels cf Justice. Sin.llur results are to le expected f-"m the National courts) undertaking; to :t In Judgment upon the reasonable ness of all business combinations. Not only are the suits likely to be as numer o :s ss they would be If the courts were to ntlempt to make reasonable tariff I S'heduics. They necessitate Investiga tions of a great variety of subjects, each requiring the ascertainment and analysis of n:asses of facts and tha weighing of a great body of conflict ing expert opinions. t.rrat otame of Kvldeeee rolleelrst. I y way of illustration there could be nothing better thnn what the tobacco aid oil cases have furnished. The rec ord In each Is enormous. There are vol umes rf evl.1. nee. and the rise, prog rjs end development of each Industry t ite are set forth at full length, with a I accompanylrg facts respecting for eicn an1 dome-tic markets and foreign l domestic consumption and competi tion. When It Is remembered that every Industry of the country and every busi ness combination carrying It on may be "iini-.-iej to the same ordeal, the wonder will be not that the mills o'f the t .Natlon.il Judiciary grind slowly but I .m they do not cesse grinding alto gether. When the decision in the trust cases as first announced there was a gen eral smh of relief on the part of the .American business world. lawyers. Milesmen. sn.l captilns of Industry Joined In a chorus of praise for the judgment and the court. They were -'emini;ly captivated by what struck them, or what they chose to treat as a new discovery namely: the existence of a role of reason In accordance with which the courts discharged their functions. Role la o w. They do! not know, or Ignored the f ict. that there was nothing new ahout the rule; that the Supreme Court had not Invented it for use in the trust tes. nnd that Kngllsh Jurists anil Knsiish courts had acted upon It for cetiturt.'s. to the ttreat advantage both of society at large and of the law its-lf t'f lite, however, paean In honor of h- court at: I of Its adjudication have r.tther alruptiy ceased and have given l ' it - to c-neral skepticism, not as to the ets:,nce ot the rule of reason :ind its .i!ue. hut s to the Justness of te ar:'!ic.itton of the rule by the court l - flir-nun anti-trust statute. I'; i the rule justify or call for any Mi. h ar-pilcatlon t I'M it authorize or - nitre the couM to evolve out of Its n Ir.rier consciousness a standard by ii hs h the res son.i hicness of business i ,.rtr il'i'tis should be determined? In cn.iertT Vlng to settle such a-stsn-without any guidance or clew r-om Congress ss to the elements or : -.I'tlremets of the p-ibllc policy In volved. iild not the S'ipreine Court respuss upon a field committed by Constitution to the possession of i'.-icres exclusively? And did not the iol. of resson demand that the court 'V-oii 4 hold the statute to be alto gether sn.l Incurably d-fectlve. on the . .io-i's .rst version of t for the rea--ns the court sets forth, and. on the lecond srd only alternative version. --u.--e that would ejc.sble and require t e court to make Its views of pnhlie P vtcv the law of the land Instead of 1 1. e views of Congress? t) nest lea ot for Judiciary. These are tia qtiestlors now being to:t up ty ststesrr.en ard lawyers and i st tat- of Industry and being more el nio-e nuiforn-.lv anewesed in the -Tirn stive. It is being more and more . 'Trietelv and generally realized that er. : l'ie legislative department of the Nnlor.ai Government Is competent to .letermlne what business combinations eho'iM or should not be permitted to i arry on Interstate and foreign trade and that the ouestion of public policy Is cot for tv National Judtctary. either ss qualified bv having power over the b-ct matter or ss well Pitted to fake nil -h pertinent Investigations and M tin such pertinent data as are easily .-na'!e bv an. easily acess'ble to Con-pr-.s and its committees. r lawyers, in particu ar. are impressen th. Nation! courts likely to pnsue from their undertaking- the dalle required of them br the late decisions of the trust cases. It is on'. too true that no uniform rule touching the reasonable ness of badness combinations Is likely to be found In the decisions of the vari ous National courts of the country: tv.at reasonableness In one distrlrt is likely to wear a wholly different apevt from reasonableness In another: that In the nature of things no consistent principle covenna all such cases caa ba form ulated by the Supreme Court, and that the result to be expected la not merely confusion and perplexity In business circles, but -rt loss of prestige by the National Judiciary. President Tart. !n his present record traveling and spechlfyln trip, is vigorous-;' laii'tl 'a; tiie Supreme Court's chanced aitUuiio on the trust question and la vlaorouxly assailing the views and motives of Its critics. But It Is clear that he once deprecated any such fv." : ll - ., -v. v jt ! I . ' 4 J n i V 1 . I 4 I Rlehartt Olaev, ei-seeretsry af Males W ha Ueelsres i'usrfs la lsflllag Tmt asvra Are Woat I ears I'ossera f Leglala lares. change and was particularly alarmed by its probable effects uon the pres tige and usefulness of the court. In a special message to Congress In January. 1910. noticing the contention that "reasonable" should be a part of the statute and that It should be left to (he court to say what la a reason able restraint of trade and what is a reasonable monopoly, he used this lan guage: "1 venture to think that this Is to put into the hands of the court a power Impossible to exercise on any consist ent principle which will Insure the uni formity of decision essentlnl to Just judgment. It is to thrust upon the courts a burden that they have no precedents to enable them to carry and to give them a power approaching the arbitrary, the abuse of which might In volve our whole Judicial system In dis aster." It Is quite Impossible to believe that the law respecting big business will permanently stay In the condition In which the latest trust decisions of the court have landed It. Congress, and Congress alone, can effectually and permanently lift business out of the slough of despond 1n which It ts now plunged. It Is its plain duty to vin dicate Its Jurisdiction over the subject matter; to get all possible light upon It by proper Investigations and bv study of the experience of other coun tries; and. being thus Informed and guided, to determine what are the con ditions under which big business can tie and ought to be carried on without loss of Its advantages, but with prao tlcal elimination of possible dangers to the public welfare. I.OS AXGKLES CROWD IVFrRI A TED BY CHILD'S DEATH. Crew Forced to Hide, While Two Riot Detail or Police Are Xeeded to Quell Disturbance. I.OS ANGELES, Oct. Jl. A score of infuriated women, supported by as many more men. attacked a stroetcar crew with such frenzy today, follow ing an accident In which a 3-year-otd cblM was killed, that two riot details of police were necessary to save the lives of the intended victims. The motorman. John Coward, was after ward taken to a hospital. J. P. Mc Arthur, the conductor, was uninjured. The accident occurred In front of a small grocery on tha East Side, be longing to Joseph Ruccola. Buccola'a little daughter, .Mary. ai playing In the street and was runover and kllle.U After the accident the motorman brought hi car back to the spot and was promptly set upon by a crowd of screaming women. Coward and Mc Arthur were driven front their car and forced to flee for their lives to the end of the carllne. several blocks away. When the police arrived the men were In hiding and Coward was Injured and In a state of collapse. Dr. Henry C. McCook Dead. PHILAPF.LI'IITA. Oct. 31. Dr. Henry C. McCook. 74. a noted rreshy tenan clergyman. died today. He wrote many religious works and hymn. HEN PROMINENTLY IDENTIFIED "WITH "BI3 BUSINESS" TO F HE SENT VIEWS OF INDUSTRIAL SITUATION. There Is no question of more pressing importance to the country to day than tliat of the relations which shall subsist between the Gov ernment and the people on the one hand and combinations of capital on the other. This question Involves not only the present but the future develop nien of the Republic, and affects Ultimately the life of every citizen. During the next session of Congress consideration rvlll be given to proposals designed Id solve the trust q iestlon. probably resulting in the enactment of a law which shall enable effective co-operation In business and at the ssme time prevent the abuses which have out raged public sentlmcnt- Blg business holds that the days of cut-throat competition have gone and that modern conditions compel co-operation. A law which will give ths best results Is a law that will be approved both by the business community and by the masses. To crystallize the situation. The Oregonlan has arranged wtth the Chicago Tribune for a series ot articles written by several of the most prominent men engaged In big business, which will present their views on the following points: 1 The effect of the operation of the Sherman, antl-trust law, aa construed by the United States Supreme Court In the Standard OH and tobacco trust caes. v j Whether It is possible to restore the old-time competition, or whether the country must legalize capitalistic and Industrial co-operation. 1 If ro-operatlon Is necessary onder existing conditions, to what extent shall the Government exercise regulation and supervision. To this series have contributed statesmen, lawyers, railroad chiefs, bankers, heads of Industrial enterprises and labor leaders. It will be a series of great value to the people and their represen tatives in the National Congress, since It will be the-first Important presentation of the business view of the trust question. CHEGKONTOBAGCO TRUST IS PROPOSED Wickersham Asks Court Hold Injunction Over Re organized Concern. to SUGGESTION IS RESISTED Attorneys for Company and Bond holders Declare Plans Would Be rpssftv Government Would Avoid Receivership. NEW TORK, Oct. II. The end waa reached today In the arguments before the United States Clnruit Court on ths plan of dissolution filed by the Amer ican Tobacco Company. A decree Is expected within a few days determining whether the plan Is In accordance with the decision at the Supreme Court, which held the American Tobacco Com pany to be an Illegal combination In restraint of trade and ordered that It be disintegrated to restore competition. Interest In the argument centered In the - appearance of Attorney-General Wickersham. He said he approved gen erally of the plan, but made recommen dations which met protest on the part of the stock and bondholders of the American Tobacco Companr. Mr. Wickersham insisted that the court, by Injunction for from three to five years, n-serve to tile Government the right to appeal to the court at any time It should appear that the dissolution of the trust had not resulted In conditions '.n harmony with the anti-trust law. Boadholders Rater Protewt. Joseph H. Choate. counsel for the per cent bondholders who are to sur render their bonds for stocks In the newly-segregated companies, protested against this amendment. He was sup ported bv Iw1s Cass Ledyard. of coun sel for the company. Roth declared that the Incorporation of such a clause would upset the disintegration plans. Mr. Wickersham also was criticised by counsel for the company for sug gesting that the court revise the disso lution scheme Insofar aa It relates to the United Cigar Stores Company. Characterizing the alliance of the stores enmpanv and the trust as one of the chief sources of complaint from the Independent tobacco trade, the Attorney-General urged that the stores com pany be segregated through the sales of Its sto-k controlled by trust holders to outside Investors. Resel.ci.rhlp Would lie Disaster. Tha Attorney-General declared he had sought to bring about a plan of reorganization without resort to re ceivership, which would be disastrous, and In outlining the Government's at titude In trust prosecutions, he quoted from President Taft a message to con gress on the subject expressing desire to conserve the legitimate Interests of nronertv. How the reorganization would result In restoration of competition, Delancey Nlcoll. attorney for the American To bacco Conmany. sought to show by an alyzing In detail the segregation of the company Into lour big corporations ana 14 companies. The minority Interests of each, he declared, would be different and each of the four corporations, the American Tobacco Company. P. Lorll lard A Co. and the R. J. Reynolds Com pany, which already has withdrawn from the trust, would be controlled by their preferred stockholders. The plan of the opponents, as out lined In Louis J. Brandels' remonstrance In behalf of the Independent tobacco growers, Mr. Nlcoll declared, would give the Independents a speedy monopoly of the market. INSURANCE CRITIC RAPPED Hint of Unfair Ruling Resented by Washington Commissioner. OLTMPIA. Wash., Oct. II. (Spe cial.) J. H. Schlvely, State Insurance Commissioner, in a letter written to John C. river, editor of the Under writers Reporter, of San Francisco, se verely takes to task the latter for In timating In a recent Issue of the paper that politics will govern Attorney General Tanner In making his ruling on "Separation." This point Involves whether the action of the board com panies. In refusing to pay higher com missions for business unless agents cease doing business with non-board companies. Is In violation of the "anti compact" laws of Washington. The section to which Mr. Schlvely takes exception follows: "As a seeker for re-election, with elections close at hand. It Is not diffi cult, say Insurance men, to forecast tha Attorney-General's ruling." Schlvely asserts Tanner will nsre as he thinks right, regardless of results. NEW REGIME IS EXPECTED Harry Ding, Chinese Student at Ore gon Gives Views on China. UNIVERSITY OF ORF7GON. Eugene. Oct. 31. Spectal.) Tomorrow's Em erald, the student newspaper, will print fan Interview from Harry Ilng. "13. a prominent Chinese registered at the university, who has decided vlewa on the current agitation In hla home coun try. Ding confidently believes that a new regime will be ushered In before many months. His statement follows: If China obtaina her Independence she will become one of the leading na tions of the globe within a space of ten years. And no great difficulty will be encountered In establishing a repub llo In China If tha foreign powers keep their hands off. "China, more than any other country, needs an awakening. The Chinese peo ple were the first to become c'vlllxed yet today their country Is the most backward In the World. "The - wonderful resources of the country have not been developed be cause capitalists have feared to Invest In tne country where no protection or encouragement has been offered in any form. "Every Chinese citizen who has had the benefit of modern education or as sociation with progressive people de sires the overthrow of the present de caved and crumbling government of China." Ding Is a prominent member of the university glee club. Ha received his preparatory training at tha Lincoln High School In Portland. STRIKERS STILL HOPE KEGUIX SATS REASONABLE METHODS WILL YET WIN". At End of First Month, Harriman Line Coast Officials) Say Forces) Are Still Unimpaired. SAN FRANCISCO, Oct. SI. At the end of the first month of tha strike of the shop employes of the Harriman lines, both sides In the Pacific Coast division are declaring their forces un impaired and that they are ready to continue the fight. Officials of the rail road point to the fact that traffic has continued uninterrupted and that the shops at Sacramento, Los Angeles, Dunsmulr, Oakland and San Francisco have been kept In operation with al most full forces at work. Leaders -among the strikers point to tha fact that there has been almost an entire absence of violence and de clare it is their Intention to continue the strike peaceably. E. L. Reguln, president of the San Francisco local of the Shop Employes' Federation, was hopeful of a victory for tha strikers today. "We were prepared for the strike when we began." he said, "and we are prepared to continue it. We knew it would be a long, hard fight and would test all our resources, but we have something to fight for and we will fight it out- Our men have refrained from violence and I am sure will con tinue to do so." Officials of the Southern Paeiflo road would make no statement other than that the strike has not seriously In terfered with the business of the road and that the shops will be kept in op eration. Rumors of elaborate prepara tions against attack by strikers in the building of stockades and the em ployment of- hundreds of private watch men were denied. Famous Surgeon Dies. NEW YORK. Oct II. Dr. John Bun ton Palmer, eye. ear. throat and nose specialist. Is dead at his home here of heart disease. He was widely known as a surgeon t.nd author of medical works. Deafness Cured When Caused by Catarrh If you have ringing noises In your ears, catarrh germs are making their way from the nose to the ears through the tubes. Many cases of deafness caused, hy catarrh have been cured by breathing HVO.MEI. It reaches the inflamed membrane, heals the soreness and ban ishes catarrh, which Is the cause of moat deafness. E. C Vanaman. railroad conductor of Blnghamton, N. Y writes that he was cured of deaf ness after special ists had failed. HTOMEI (Pro nounce It Hlgh-O-me) Is guaranteed to cure catarrh, oougbs, colds, asthma, croup, and sore throat, or money back. Complete outfit with Inhaler 1.00. Extra bottles 50 DliVAF ? cents. Sold by enterprising pharma cists and druggists everywhere. Test sample and booklet free from Booth's Hyomel Co.. Buffalo. N. Y. 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