Morning Oregonian., January 07, 1913, Page 2, Image 2

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"THE 310 K XING OKEGOXIAyr TCTSDAYy- JANUARY 7. 1913.
FOOD OR CLOTHING
CORNERS
INVALID
Supreme Court Rules Cotton
Operators Must Be Tried
on Indictments.
DISSENTING OPINION READ
Tribunal Kinds "Withholding" of
Product From Market in. Inter
state Trade Is Carried On as
Charged Against Brokers.
WAtfHIXGTOX Jan! 6. The Supreme
Oourt of the United States today laid
down the far-reaching: principle that
"corners" of interstate commodities,
such as articles of clothing and food,
are in violation of the Sherman anti
trust law, and held that as far as the
Sherman law was concerned, the indict
ment In the New York Federal Court
of James Patten. Eugene G. Scales,
Frank Jf. Hayne and William P. Brown
for coniiring to run an alleged cotton
"corner" was valid. The case against
them was sent back for trial.
Justice Vandeventer announced the
opinion of the court. Justice Lurton
delivered a dissenting opinion, in
which Chief Justice White and Justice
Holmes concurred. The majority of
the tribunal held that the Circuit Court
for Southern New York had decided
that the indictment charged a "with
holding" of the cotton from the
market, a necessary element of a
"corner." as admitted by the Gov
ernment. The minority held that the Circuit
Court found the indictment did not so
charge and for that reason the indict
ment was faulty.
Second Appeal PoHxible.
According to all the justices, the cor
rectness of the holding of the Circuit
Court as to the indictment charging a
"withholding." and as to the sufficiency
of the indictment on other technical
points, had to be accepted at this time
without question by the Supreme Court.
The points thus left undecided today
may be made the basis for bringing
the case to the court again, if the
defendants are convicted.
in his opinion Justice Vandeventer
dealt at length with the defense that
the accused men were not engaged In
interstate commerce.
The first section of the act, upon
which the courts are founded," said he,
"is not confined to voluntary restraint,
as where persons engaged In inter
state trade or commerce agree to sup
press competition among themselves.
but includes, as well. Involuntary
restraints, as where persons not so
engaged, conspire to compel action by
others-er to create artificial conditions
which necessarily impede or burden the
due course of such trade or commerce
or restrict the common liberty to en
gage therein."
Corner Held to Be Kvll.
Justice Vandeventer replied to the
argument that running a corner stimu
lates instead of restrains Interstate
trade by saying that this might be
true for a time, but that the corner
was forbidden by the act because it
thwarted the usual operation of laws of
supply and demand, withdrew the com
modity from the normal current of
trade, enhanced prices, and produced
practically the same evils as the sup
pression of competition.. He said that
the statute did not apply to corners
of purely intrastate trade, nor where
the effect upon interstate trade was in
direct, and added that in the present
case the trade was not intrastate and
the effect was not indirect.
The court said that it made no differ,
enre that there was no allegation of a
specific intent to restrain Interstate
trade. "The conspirators must be held
to have intended the necessary and
direct consequences of their acta and
rannot be heard to say to the contrary
Justice Vandeventer explained.
COTTON BROKER, WHO MUST STAND TRIAL FOR CORNERING
PRODUCT.
iiiillip iiiWii
' a V "it
mmmmmmmuimimmm
JAMES A. PATTEV.
CLASH BARED
Clearing-House Rules at Salt
Lake Are Described.
-TRAIN R0BBEDBY REBELS
Siiiih Passenger Tnken to Hills to
lie Put to Death.
ToI.l.'CA. Mexico, Jan. 6. A passen
ger train was attacked by a body of
50 Zapatistas yesterday. 15 miles south
of this city. The rebels robbed the
imssengers and seized a Spaniard named
Pejlro Vela, whom they took into the
hills with the Intention of killing: to
avenge a grudge borne him by the rebel
leaders.
The train was derailed by the rebels
and the engineer and fireman killed.
STORY OF TROUBLE TOLD
Copper National Objects to Ruling
Forbidding Payment of Inter
est on Open or Check
ing Accounts. -
REAL DISSOLUTION, DEMAND
Continued From First PtO
Washington regard it as not improb
able that the railroad attorneys will
absent now to the Government's pro
posal to allow the Union Pacific and
Southern Pacific stockholders to share
In the purchase of the stock. Suca a
plan would not require the stock to be
dumped upon the open market.
Announcing: tho decision of the court
today Jus'Jce Pay said:
'The proposal to distribute the stock
among the shareholders of the Union
Pacific Company or to sell the stock to
su.'li shareholders, if granted, will in
effect transfer the stock fram the Ore
gon Short L.ine Company, which now
holds It for the I'ninn Pacific Com
pany, to the stockholders who own and
control the latter company. The court
is of thi opinion that this distribution
of sale cannot be ordered.
Stockholders Are Corporation.
' The ultimate distribution of the af
fairs of a corporation rests with its
stockholders and arises from their
power to choose the governing board of
directors. After such distribution as
is now proposed, the stockholders ot
tin Cnlon Pacific Company may dom
inate and control not only the Union
Pacific Company but the Southern Pa
cific Company as we'll.
"h: rejecting the proposal for the
transfer of the' Southern Pacific Com
pany's stock held for the Union Pacific.
Company (either by distribution among;
or sale to the stockholders of the Union
Pacific Company, we do not mean to
preclude the District Court from con
sidering: and acting upon plans which
may be submitted to it under the former
opinion and decree of the court. We
arc of the opinion, however, and now
hold that the proposed plan of dispo
sition of the entire stockholding of the
Southern Pacific Company In the Union
Pacific Company by transfer to the
stockholders of the Union Pacific Com
pany will not so effectually end the
combination as to comply with the de
cree heretofore ordered to be entered
bv Oils court."
WASHINGTON-, Jan. 6. The opera
tions of the Clearingr-House Associa
tion of Salt Lake City. Utah, and Its
controversy with the National Copper
Bank, of that city, were explained to
the money trust investigating commit
tee of the House today. Five Salt
Lake City bankers testified.
W.. AV. Armstrong, president of the
National Copper Bank, recounted the
circumstances that resulted In the sep
aration of bis bank from the clearing
house. He said that when the Copper
National declined to abide by a rule
adopted by the clearing-house forbid
ding banks to pay Interest on open or
checking accounts, the eight other
members of the clearing-house dis
solved the association and Immediately
formed a new one. with a constitution
including the rule to which the Copper
.National objected.
Extra Coat Necessitated.
The Copper National declined to sub
scribe to the rule or to enter the new
association. Mr. Armstrong said it
cost his bank $25,000 a year extra to
operate outside the clearing-house. He
asserted that Salt Lake Clearing-House
rules regulated rates and interest to
be charged practically in every trans
action between a bank and its clients
and he endeavored to argue that the
association was in restraint of trade,
usurping the functions of the officers of
the banks.
W. S. McCornick and three other
members of the association said that
Mr. Armstrong had stated the facts al
most as they had occurred, but they
disagreed with his view of the ethics
of the situation, maintaining that the
association was acting within its
rights.
Just before the committee adjourned
G. G. Henry, of the firm of Solomon &
Co., New York City, was questioned by
Samuel Untermyer, counsel for the
committee., as to the details of the
marketing of the stock of the Califor
nia Petroleum Company by the syndi
cate formed by his company, Ilailgar
tcn & Co. and Lewlsohn Bros. Mr.
Ilenrj- produced the agreements and
contracts in connection with the mar
keting of the stock and the organiza
tion of the company. His examina
tion will be continued tomorrow.
Partial Report Probable.
After the hearing the committee,
with Mr. Untermyer. went into execu
tive sesssion. The committee contem
plates a suspension of hearings within
a few weeks.- to allow the preparation
of an intermediate, partial report, to be
submitted to this Congress before
March 4. '
It has been suggested that the com
mittee endeavor to obtain from the In
coming Congress a resolution continu
ing the investigation and that the
hearings be resumed after the new Ad
ministration comes in.
LET TARIFF AL0NE, IS PLEA
(Continued From Firat PaicO
Kentucky a pretty good customer," in
terjected Representative Longworth,
of Ohio, while Senator-elect James, of
Kentucky, a member of the committee,
who loves a joke about bis bald head,
smiled indulgently and promised his
patronage.
The committee Interrogated M. Dor
Ian, treasurer of the American Grapho
phone Company, of Bridgeport, Conn.,
so closely about its business that he
told the members he did not think it
their business to ask about private de
tails. Mr. Dorian wanted shellac and
copal kept on the free list. He inti
mated that the effect of making them
dutiable might be to shift the manu
facture of their large export business
to their London factory.
Fronts Are Large.
Mr, Underwood drew from, the wit
ness that the graphophone company
pays 7 per cent dividends, amounting
to (700.000.-on a 10,000.000 capitaliza
tion: that it carries a bonded indebted
ness of more than 11.000.000 and that
the suggested duty on these two arti
cles on -which the Democrats plan to
raise about $300,000 would mean an
expense of about $25,000 to $30,000 to
his company.
William H. Wadhams. representing
soap interests, paid a tribute to the
great need of laundry soap. He por
trayed it as a necessity of life and
contended that to put the burden of a
tariff on the raw materials used in an
article that goes Into the homes of
poor would be unjust.
Mr. Wadhams said the soap indus
try was subject to highly competitive
""Br" V"" and had JvflS fcuilt up on a
reliance on free raw materials. ' He
said that while the manufacturers did
not oppose a moderate reduction of
duty on laundry soap, an elimination
of the duty would have a very serious
effect.
Tariff Aid Asked.
Albert Hart, of New Tork, wanted
tariff encouragement for the infant
industry of manufactured or bleached
sponges.
"How many employes in your plant?"
asked Representative Longworth.
"Eighteen.
"And you want to expand this great
American industry?"
"Yes, to at least 36 men," Mr. Hart
replied, adding, however, that he spoke
for 20 other manufacturing firms.
"Are cotton seed oil and olive oil used
interchangeably?" asked Representative
Hill, of Connecticut, of M. B. Snlvely,
of New York City.
"Not if the Department of Agricul
ture's pure food board can locate it,"
replied the witness.
Mr. Snively's slogan was: "Give us
specific duties on vegetable seeds and
oils in place of the ad valorem stand
ard." He said the ad valorem system
increased the assessment upon the ulti
mate consumer.
Change In. Drng Duties Opposed.
H. J. Krebs, Newport, Del., objected
to the changes in the tariff as proposed
by the last session chemical bill vetoed.
The same position was taken by R. A.
McCormick, of Baltimore, who oojected
to proposed changes in drugs, barks,
etc.
Louis L. Brighani, of Randolph, VU,
held up specimens of domestic and for
eign gelatin, and protested that there
was now paid Just as mucn auty on
raw materials as for the finished prod
ucts. He thought that about double
the present duty on the finished gelatin
product would be fair in the proposed
tariff.
j T. F. Schoelkopf, of Buffalo, said the
'proposed reduction of duty on coal tar
dyes, or colors, of which about $7,000,
000 worth annually are brought in,
from 30 to 18 per cent would operate
unjustly to the American manufactur
ers.
Labor Cost Is 20 Per Cent.
Chairman Underwood drew from him
that he regarded his total labor cost
as 20 per cent of the cost of tne nn
ished product, and that if the coal tar
dyes or colors came in rree ne suit
would have to pay virtually a 10 per
cent duty, because of the freight
charges, etc.. from the Customs-House.
"This is a trust controlled product?"
"Yes, so far as the patents are con
cerned." The witness said that while a num
ber of patents on coal tar colors and
dyes were expiring, there were many
yet controlled by patents he.ld by two
big German companies.
"Then," suggested Representative
Hill, "the effect of the proposed reduc
tion would be to give absolute control
of these products in this country by
trust syndicates to the detriment of
American enterprise?"
That's well known, replied Mr.
Schoelkopf.
He asked the committee to let tne
present tariff of 30 per cent ad valorem
o coal tar dyes or colors and 20 per
cent ad valorem on all other products
or preparations of coal tar. not colors
or dyes and not medicinal, stand "unchanged.
V
V SEE THAT
(Registered.)
Your Salesman at
forty must know that
a buyer can change
hie mind quicker than
you can change your
glasses. Save the orders
by combining two pairs
into one pair ofKryptok
Invisible Double Vision
Lenses made our way.
Suggestion: Kryptok
Lenses and Shnr-on
Mountings. Nothing bet
ter. THOMPSON
Optical Institute
Second Floor Corbett Bldg.
Fifth and Morrison
pniiiiii:!;!
Here another the kind grandmother 1
used to make "back East" only better, j
Make them for breakfast to-morrow:
RECIPE NO. 2 BUCKWHEAT CAKES- :
11-4 cups buckwheat flour
I- 2 teaspoon salt.
2 1-2 cups thick sour milk
II- 2 teaspoons soda
1 egg
Sift buckwheat flour, white flour and salt into
mixing: bowl; add sour milk. in which soda has
been dissolved, and beat very smooth ; then add
the well beaten egg. Bake on hot griddle and
serve as rapidly as baked, that they may be
enjoyed while crisp.
Buckwheats, of all cakes, require plenty of
TOWLE'S
transports, the Logan and the Shert
dan. with 2800 men on board, sailed at
noon today for the Hawaiian Islands,
where the men will go In grarrison.
The troops include the entire Fourta
Regiment of cavalry, the Twenty fifth
Regiment of infantry, three companies
of Coast Artillery and BoO marines.
ST. JOHNS FIGHT IS OVER
WIDTH OF PROPOSED BOULE
VARD TO BE 80 FEET.
EDDIE TO TESTIFY TODAY
Husband of Alleged Victim Is on
Stand at Los Angeles.
LiOS ANGELES. Jan. 6. John Phelps,
husband of Mrs. Alice Phelps, who ac
cused Guy Eddie of having committed
an offense agarnst her. was the princi
pal witness for the defense today at
the trial of the suspended city prose
cutor. Phelps testified that when he mar
ried ai Bloomington, III., July 16, 1912,
his wife had given her age as 21 years.
That testimony coincided with the
theory of the defense that Mrs. Phelps
was not a minor at the time she al
leged Eddie had contributed to her de
linquency. Several depositions from persons in
the Middle West were read into the
court record today. They related to
Mrs. Phelps' past.
It was planned to place Eddie upon
the stand in his own defense tomorrow.
PORT 0RF0RD IS ON LIST
Appropriation for New $5,000
Light Vessel Recommended.
WASHINGTON, Jan. . A bill ap
propriating 91,350.000 for the improve
ment and extension of the lighthonse
system throughout the country was re
ported to the House today by the Inter
state and Foreign Commerce Commis
sion. Among the principal Items In the
bill were:
New lighthouse at Cape St. Elias.
Alaska J125.000; lighthouse. North
Farallon Islands. California.. $100,000:
improvement Point Pinos lighthouse.
California. ?30.000: new light vessel for
Point Orford Reef. Oregon, $25,000: im
provements of aids to navigation in
Puget Sound. JSO.000.
The bill contains a proviso fixing? the
maximum salary for lighthouse tend
ers at $3000 a year and recommending
an average salary of $2750. S
Soldiers Sail for Hawaii.
SAX f&AXCISCO, Jaa, 6. Axmy
Hard Surfacing to Be Done Xe.it
Spring AVill Give Highway to
! Center of Portland.'
ST. JOHNS, Or.. Jan. S. (Special.)
The. long-mooted question as to the
width which lllamette oulevard will
be given was amicably and satisfactor
ily adjusted today by the. property
owners interested. This question at
one time threatened to estrange and
make bitter enemies of the residents
on each side of the street.
The matter was finally taken to the
courts and a decision of 80 feet was
given by Judge McGinn. Considerable
protest was raised against this decision
by the property owners on the east
side of the street, who wanted. It 100
feet wide.
An endeavor Spas made to have the
City of St. Johns take the matter up
to the Supreme Court, but this it re
fused to do. The dissatisfied property
owners threatened to take it to the
Supreme Court at their own expense,
but allowed the time for appeal to
elapse. Now, with the exception of
one property owner, they have agreed
to accept 80 feet as the width and have
signed petitions to have the-boulevard
hardsurfaced for a strip of 30 feet and
have sidewalks laid on each side of
the street. A week or so ago the City
Council changed the name of Fillmore
street to Willamette boulevard. This
new section of the boulevard runs from
Richmond street to the north city lim
its, an the property owners residing
along the street have petitioned the
Council to hard surface this its. entire
length next Spring.
Portland will hard surface the bou
levard, to the St. Johns limits, and it
is practically assured that a hard
surfaced and continuous road will ex
tend from the north limits of St. Johns
to the heart of the business district of
Portland.
There's something about the
flavor of Towle's Log Cabin
Syrup that just seems to com-
Elete the delicious perfection of
uckwheat cakes or any kind
of cakes.
You never tire of Towle's Log
Cabin Syrup the more you eat
the more you want. And it is
comfort to be able to say "yes"
to the children's pleadings for
more
them
1 p
"From my camp
to your table. "
Jack Towlm
at the same time
knowinsr that in srivinsr them
deligrht you are doing
good, for Towle's is wholesome
and supplies a realjaeed in the
developing bodies of growing
youngsters.
Your grocer has plenty of
Towle's the Log Cabin Can
is your surety of full measure.
Towle's Log Cabin Syrup keeps the
original maple mellowness, due to
the Towle way of blending. The
national preference is for Towle's,
because it is a delicious article and
because mother knows it is whole
some a safe, delicious sweet for
the family.
TVv lininff canrlies. in the lonir winter
evenings, using Towle's Log Cabin
Jsyrup. If you don t know how, our
free recipe book tells how and don't
forget to cut out this recipe for genuine
New England Buckwheat Cakes. Paste
it in your cook book and make some
of the cakes for breakfast.
Order Towle's Log Cabin Syrup
from your grocer today. Then write
to "jack" for a free recipe book. If you
also send 6ve two-cent stamps, to cover
postage, Jack Towle" will send with
the book, a minature can of Towle's Log
Cabin Syrup. The little can will please the
children and the syrup pleases everybody.
Address "Jack Towle" care of
Towle Maple Products Company
Depb 10. St. Paul, Minn.
.ilIUiiniBIi!I!!!!II!I!Iin:!l!!IIIII!l!!!iIill!:!!H
BOY SHOOTS SISTER OF 9
While Parents Are Gone, 6-Year-Old
Lad Plays With Revolver.
CHE HALLS. Wash., Jan. 6. (Spe
cial.) Last night at Morton. Ed Duni
way, 6 years old, accidentally shot his
9-year-old sister, Edith, with a pistol
during a brief absence of their parents
from home. The girl's recovery is ex
pected. The bullet entered the cheek near the
left eye, ranging downward and com
ing out at the back of the child's neck.
Henry Baumann, 17 years old, died
last night at a local hospital from a
gunshot wound received two weeks ago
at the hands of a companion named
Joe Murphy. The deceased is a son of
Henry Baumann, Sr., of Adna. The in
jury was purely accidental and no
blame was attached to young Murphy
by his unfortunate victim. Murphy Is
distracted with grief over the accident.
FIREMEN ARE QUARANTINED
Aberdeen Force Only Allowed to
Leave Buildings for Fires.
ABERDEEN, Wash., Jan. S. Spe
cial.) A fire department quarantined,
but still able to "go to blazes," is the
predicament of the local squad of fire
fighters through the plight of one man.
Chicken pox in a mild form dis
covered on one member of the depart
ment brought the order from the health
officer to quarantine all men in every
fire house. The men are cut off from
outside commuunication and can only
leave the building in case of alarms.
GARIBALDI MAN IS. DEAD
John Johnson Makes Toy Boat for
Grandson, Then Dies.
GARIBALDI, Or- Jan. 6. (Special.)
John Johnson, of this place, was found
dead In bed at his late home last week.
Mr. Johnson retired the night before
apparently In the best of health, as he
had just finished making a toy boat
for his little grandson.- Mrs. Towne, his
housekeeper, went to his room in the
morning to call him and. thinking him
asleep, decided not to disturb him. At
a later hour she investigated his unus
ual lateness in arising and discovered
him dead.
Dr. Hawk, of Bay City, was called
and pronounnsJ death due from heart
failure.
Mr. Johnson was born in New York
harbor, aboard his father's ship, in
1830. His father was a well-known
mariner who ran a packet between
Liverpool and New Tork. Upon his
father's death. Mr. Johnson, with his
mother, lived in Germany until about
1848, when he moved to Fond du Lac,
Wis. During the excitement of the Cal
ifornia gold rush, he crossed the plainB
by the Fort Dodge route and took up
mining. In the Spring of 1852 he dis
covered the Marysville mine, which
later became famous for its immense
yield of high-grade ore. In 18 il he
moved to Portland, where, in 1872, he
married May Rose, of that city, after
which he moved to Tillamook County,
where he had ever since resided. His
only surviving son is Charles Johnson,
of Tillamook, who is County Assessor.
mittee on athletics, Veron Wolcott,
Fred. Cavender and Alfred Jenson.
Silvetlon Club Elects.
SILVERTON, Or., Jan. 6. (Special.)
At the regular meeting of the Silver
ton Commercial Club held Friday even
ing officers were elected for the en
suing year as follows: President, S.
E. Richardson; vice-president, H. F.
Craig; secretary, George Warren
Hubbs; financial secretary. A. L. Lar
sen; treasurer, L. H. Fischer; manager
to serve three years. R. D. Ames; com-
TO CUIUS A COLO IN ONE DAT
Take LAXATIVE BROMO Quinine Tablet
Druggists refund money if it fallea to cur.
E. t GROVE'S signature ia on each box a. o
Snowand icy pave
ments increase the
cost of delivery.
PRESENT PRICES ARE LOW
Will Your Fuel Supply Crry Yon
Through f -
HOLMAN FUEL CO.
Main 853. A 3353.
Commercial Club Bid.
GIRLS! GIRLS! SURELY TRY THIS!
BEAUTY OF YOUR HAIR
DOUBLES
All You Need Is a 25c Bottle of "Danderine" Hair Gets
. Lustrous, Fluffy and Abundant at Once.
Immediate? Tea! Certain? that's
th joy of It. Tour hair becomes light,
wary, fluffy, abundant and appears as
soft, lustrous and beautiful as a young
girl's after a Danderine hair cleanse.
Just try this moisten a cloth with a
little Danderine and carefully draw tt
through your hair, taking one small
strand at a tirm. This will cleanse
the hair of dust, dirt or excessive oil
and In just a few momenta you have
doubled the beauty of your hair.
A delightful surprise awaits, particu
larly thoa. who have been careless,
whose hair hu been neglected or is
craggy, faded, dry, brittle or thin. Be
sides beautifying the hair. Danderine
dissolves every particle of dandruff;
cleanses, purifies and Invigorates the
scalp, forever stopping itching and
falling hair, but what will please you
most will be after a few weeks' use of
Danderine, when you will actually see
new hair fine and downy at first
yes but really new hair growing all
over the scalp. If you care for pretty,
soft hair, and lots of It; surely get a
Z5-cent bottle of Knowlton's Danderine
from any drug store or toilet counter
nd Just try It.
One feature of Imperial Grill
service is its promptness and lack
of "red tape."
Table d'Hote Luncheon, 50 Cents
WHY DRINK WATER
WHEN YOU CAN GET
fl SALE
nil
BEER
Phone to
HENRY
FLECKENSTEIN
Distributors,
Main 115,
A 2116.
Prompt delivery in
ease end barrel lots.
The taxpayer, figur
ing the cost of sew
erage systems, keeps
in mind not only
present but future
worth and he boosts
for
PORTLAND
GLAZED CEMENT
SEWER PIPE
raj
mmm
Open January 1st, 1913
Hotel Washington
Grant Ave. and Bush
SAN FRANCISCO
$1.00, Boom with Bath Privilege.
fl.50, Room with Private Bath.
Located on a quiet corner, no car
lines, one block from principal
stores. ..
Cbarlca H. Bonier, Mgr.
J