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The Beef Trust Case

SATURDAY, JANUARY 14, 1905
Last week Attorney-General That this does not make the sale inter-
Moody submitted to the State commerce has been, according to

United States Supreme Court some legal authorities, already settled in the Government's brief in the so-called the famous Sugar Trust case, decided Beef Trust case. It arraigns members against the Government by the Supreme of the alleged combination for violation Court in 1895. The present case, howof the Anti-Trust Act, contending that ever, has also certain features in common the methods of the trust stifle competi- with the Freight Association and Traffic tion and restrain trade in fresh beef. cases already passed upon by the The Attorney-General admits that judges Supreme Court. They would indicate have differed as to the validity of aggre- that restraint of trade is not to be tested gations of capital effected by some form by the prices resulting from the comof organic union among several smaller bination so much as by the lack of comand competing corporations, and that petition resulting therefrom. Whatever economists are far from agreeing that combination has the direct and necessuch aggregations, within limitation, are sary effect of restricting competition is, hurtful. But, asks Mr. Moody, has a within the meaning of the Anti-Trust Act, responsible voice yet been heard to as now interpreted, a restraint of trade. justify, legally or economically, a con- On this point Mr. L. F. Swift, President spiracy or agreement among nearly all of Swift & Co., one of the largest corthe producers of a commodity necessary porations in the so-called Beef Trust, to life, by which the confederates acquire has made the following statement: “The absolute control and dominion over the reports in circulation about the · Beef production, sale, and distribution of that Trust' are without foundation. There commodity throughout the entire terri- is absolutely no conspiracy or combinatory of a nation, with the power at will tion to control either the purchase of to raise prices to the consumer of the live stock or the sale of meats or packfinished product and lower prices to the ing-house products ; on the other hand, producer of the raw material ? Mr. the packing industry is subject to the Moody claims that there is a conspiracy severest kind of competition both in to control the market for fresh meats in buying and selling, and the per cent of the Nation, that it does control it, that profit on sales in the packing-house inits control is merciless and oppressive. dustry is less than in any other line of These points were developed in his business.” argument on Monday of this week before the Court. If this is evident to all

Last week the Mermen, the question then is, Does the

chant Marine Com

Report Government's petition discover that

mission submitted its conspiracy to the Court? The attorneys report to Congress. This Commission for the Beef Trust reply that the busi- is composed of five Senators and five ness of the defendants of purchasing Representatives. It was created at the live stock and selling the fresh meats last session of Congress, in response to produced therefrom is not inter-State or President Roosevelt's recommendation in foreign commerce. They further con- his Message of December, 1903. The tend that the sales are made with a view Commission has made an exhaustive into the goods being transported by the vestigation of the condition of our merbuyer's agent to another State, after the chant marine in order to ascertain the sale and delivery are fully completed. most feasible means for its development;

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The Merchant Marine

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Land Fraud
Indictments

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hearings have been given at nearly all of Americans are opposed to steamship) the important shipping and commercial subsidies. The last feature of the bill, centers. The Commission has agreed increasing the tonnage taxes on all vessels, upon a bill the chief features of which American and foreign, now entering the are: (1) The creation of a naval volun- United States ports, in the foreign trade, teer service ; (2) the encouragement of might be justified as a revenue-raising apprentices on ships in foreign trade ; measure, but how any legislation making (3) subsidies for carrying mails from it more difficult for ships to enter our Atlantic coast and Gulf of Mexico' ports 'ports is going to increase American to Central and South America, and commerce is not easy to understand. from Pacific Coast ports to Japan, China, The whole scheme is an improvement on the Philippines, Mexico, and Central the ship subsidy bill of last year, but it America ; (4) annual subventions of five is, after all, formed on the same artificial dollars a gross ton ; (5) a tonnage tax model. The true method for increasing on foreign vessels entering United States our commerce is to enact a law which ports. It is probably true, as the Com- would give to our people a chance to missioners' report says, that an adequate build or buy ships where they please American ocean fleet might mean the and to man them regardless of nationsaving to this country of a hundred mill- alities. ion dollars a year, a sum which now goes to build up the naval strength of

The indictment of Senator European nations and Japan ; that this

Mitchell, of Oregon, by a country has deepened its harbors at an

Federal Grand Jury in that expense of many millions, largely for the State is the latest and most startling benefit of foreign steamships ; that the outcome of the investigation into public subsidies and bounties bestowed on most land frauds which the Government has of the merchant fleets of foreign Govern- long been carrying on.

long been carrying on. The subject ments are a handicap on American ship- was discussed with vigor and plain ping. The question is, however, Can the speaking by Secretary Hitchcock, of the action by Congress, as outlined above, Interior Department, in his recent annual prevent the paralysis of our shipping in- report, summarized in these columns. terests ? As a first step in their rehabilita- The charges against Senator Mitchell tion, the proposition to create a force of are that he has conspired with or aided naval volunteers composed of the best offi- persons or companies to exchange praccers and men of our merchant ships and tically worthless land, to which they had deep-sea fishing-vessels is attractive; not procured title, for valuable tracts. This more than twenty thousand American citi- was accomplished, it is asserted, by zens, however, are included in the enroll- getting the worthless lands included in ment of employees on all the American governmental forest reserves and thus vessels on salt water which go out of sight gaining the legal right to make new of land. The section relating to appren- selections in exchange, With Senator tices will also excite some favorable Mitchell was indicted Mr. Hermann, comment, as will the proposition not to formerly Commissioner of the General amend the present ocean mail act, except Land Office and now a Representative as to the new routes to be established and from Oregon. Other important indictthe new requirement as to naval volun- ments are reported to be pending. teers. The proposed subvention of five Specifically, Mr. Mitchell is charged with dollars a gross ton certainly sounds bet- accepting a bribe of $2,000 for expeter than the proposition made in the Frye diting fraudulent claims, while Mr. Herbill last year, because, if favors are to be mann, it is alleged, misused his power given, they should be given to the useful, in the Land Office to aid land-thieves hard-working ship of steam and sail- and deliberately suppressed evidence of the unit of ocean society—rather than fraud submitted to his bureau. It would to the swift and expensive steamship. be improper to form an opinion as to But subvention is only a euphemism for these charges until they have been subsidy, and, in our opinion, the majority passed upon by the Federal courts, and

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Senator Mitchell's assertion of absolute dence accuses Mr. Morton and Presiinnocence is entitled to a respectful dent Ripley, of the Santa Fé Railway, of hearing. It is perfectly evident, how- what is practically swindling. The aniever, that land and timber frauds and mus of the “ Post's ” charge is indicated depredations in California, Idaho, and by its reference to Mr. Morton as having Oregon have been carried on in a whole- been “advertised as President Roosesale way; and the people of the coun- velt's handy man in promoting legislatry will heartily approve of the vigorous tion to regulate railway rates." The attempts of the Administration to lay actual facts of the matter, as they have bare the facts and to prosecute all con- been brought out so far, are these : The cerned in the conspiracy, no matter to Caledonian Coal Company, of Gallup, what party they may belong or how high New Mexico, has brought before the may be their political office. The home- Inter-State Commerce Commission stead, land, and timber laws relating to charge against its competitor, the Colothe Government domain are expressly rado Fuel and Iron Company, that the framed to give the individual settler a latter corporation and the Santa Fé fair chance to obtain a livelihood by Railway have entered into a conspiracy occupying and working the land; but to ruin it. In the first hearing at Chiby perjury, fraudulent entries, and con- cago the Caledonian Coal Company spiracy, corporations and large capital- stated its case at length, making charges ists have done much to thwart this pur- under the direction of its attorney. The pose and to establish great monopolies. Atchison, Topeka, and Santa Fé RailIf in doing this they have bribed officials way has not yet had the final opportuand legislators, it is imperative that the nity of making a reply to those charges, higher the station of the accused the although Mr. E. P. Ripley, President of more searching should be the investiga- the Santa Fé Railway, has publicly as tion, and, if the accusations are serted that the railroad's action in the tained, the more rigorous the punishment. matter was “right legally and morally.”

There is to be another hearing on the Secretary Morton

The newspapers of action, at which the authorized state

the country have dur- ments of President Ripley and Secretary Santa Fé “Scandal"

ing the last two weeks Morton will be made. Waiting for this given considerable space to what they authorized hearing, Secretary Morton call the “ Santa Fé scandal.” The has, wisely in our opinion, persistently “scandal” consists in the alleged fact declined to say anything, and now rethat the Atchison, Topeka, and Santa fus

fuses to be quoted. Those who know Fé Railway has been suddenly discov- Secretary Morton personally believe that ered by the Inter-State Commerce Com- his position has been entirely misrepremission to be guilty of having given sented, and that this will be shown by the secret rebates and rate discriminations in final hearing before the Inter-State ComColorado, thus violating the Inter-State merce Commission. They assert that Commerce Act. It is doubtful if the no officer of the Santa Fé Railway has general public would have heard anything taken any action which is not entirely of the matter at all if Mr. Paul Morton, within the Inter-State Commerce Law. who is now Secretary of the Navy in the We advise our readers to suspend all President's Cabinet, had not been in judgment and even all opinion regarding 1902, when the corrupt rebates are said Secretary Morton's alleged responsibility to have been made, Vice-President of the for giving illegal rebates until he has Santa Fé Railway, and therefore directly had an opportunity of making his anresponsible for the alleged illegal dis- swer to the charges before the Commiscriminations. Scandalmongering is not sion. The incident, for we regard it as surprising among the so-called "yellow

“ an incident, lends an especial interest to journals," but it is surprising when a Secretary Morton's article in this issue, professedly and in many respects actu- which is the only authorized statement ally high-class newspaper like the New that we have so far seen of his personal York “ Evening Post” on hearsay evi- attitude on the subject of railway rates.

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The Connecticut

In the appointment of has their affairs in charge, in order that Indian Wrongs

Francis E. Leupp as Com- the allegations of neglect of duty, or missioner of Indian Affairs the reserva- worse, on the part of the latter, which tion tribes of the Northwest see hope have been persistently made for years for a full and fair hearing of the com- past, may be thoroughly sifted, so far as plaints which they have been urging this case is concerned, by an impartial upon the authorities at Washington for tribunal. the past ten years or more, and which are alleged to have been pigeonholed

The recent political imor to have received no more than per

broglio in New York

Senatorship functory attention. Already the Bad

State which involved the River band of Chippewa Indians, whose candidacy for the United States Senate affairs are administered from the La of Mr. Depew and of ex-Governor Black, Pointe agency at Ashland, Wisconsin, as well as the personal standing as a have drawn up a petition reciting the party manager or “boss” of ex-Governor wrongs inflicted upon them; the chief Odell, is now followed by a Senatorial allegation is that they are being system- conflict in Connecticut much more malatically defrauded by the Agent and his odorous. The term of Senator Hawley assistants, in collusion with one of the is about to expire, and he has declined large lumber companies. It is the old, to stand for re-election owing to the conold story of trespass upon the Indians' dition of his health. The State Legislands, the appointment by the Agent of lature is Republican, and it has been men to scale the sold timber who are supposed that either ex-Governor Moralso employees of the lumber company, gan G. Bulkeley or Mr. Samuel Fessenden of extortion and usury and misuse of would be elected to General Hawley's funds, and of first or advance payments seat. Mr. Bulkeley has been considered being made only in coupons redeemable to be the more promising candidate, as at the store of the lumber company. he is a richer man than Mr. Fessenden, It is specifically recited that the Agent and in his active career as a political has stock in one of the subsidiary con- manager has frankly used his political cerns of the lumber company, and that and financial power and influence for he has loaned to the last named, without his own political benefit. In fairness authority of law, undistributed sums be- to Mr. Fessenden's reputation as a po longing to the individual Indians aggre- litical “boss,” however, it should be gating about $200,000, a part of which added that those who know him believe draws no interest and the remainder not that if he had the financial resources more than three per cent., without which ex-Governor Bulkeley commands security; and it is pointed out that one he could and would use them just as of his assistants or "farmers” has in skillfully and scrupulously as the ex-Govten years, on a salary of $720 per annum, ernor. The plan, however, of electing one amassed from thirty to forty thousand of these two men, neither of whom in dollars' worth of visible property. At a character or ability will make a worthy council of the band it was decided to successor to General Hawley or Senator send a delegation of their own number Platt, has had an interruption. Dr. to Washington to present the petition to Newman Smyth, of New Haven, preached Mr. Leupp in person and be prepared not long ago a vigorous sermon calling to answer such questions as he may the attention of his community to the wish to ask. It is the request of the tainted atmosphere with which ex-GovIndians that the whole matter be made

Bulkeley's candidacy is the subject of a Federal grand jury rounded. This sermon interested others, investigation and that a special attorney and out of it has grown a movement of be appointed by President Roosevelt to protest which has spread throughout the conduct the case. This suggestion State. Unfortunately, for some reason appears to be an excellent one and perhaps not altogether unconnected with should be acted upor, both for the sake the power of advertising, the newsof the Indians and of the Bureau which papers of the State have not paid very

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much editorial attention to Dr. Smyth's His nomination has been delayed in the campaign, but they have been compelled Senate for the single reason that he is to give it space in their news columns. a colored man.

Apparently this action Dr. Smyth has sent a circular-letter to of the Senate has been due to two cirevery member of the Legislature, stating cumstances: the timidity of Republican two insurmountable objections to the Senators who did not dare to face the elevation of Mr. Bulkeley to the Senator- issue presented by the nomination, and ship. One objection, says Dr. Smyth, is the absurd rule, popularly called the that in the management of the Ætna courtesy of the Senate, which practically Life Insurance Company of Hartford, forbids the appointment of any man to of which Mr. Bulkeley is President,' any office in a State against the protest large sums of money which were really of the Senators from that State. For due to the mutual policy-holders were these reasons—at least we can conceive diverted to the benefit of the stockholders no other—the nomination was allowed of the company.

Dr. Smyth states that to remain in committee, unreported. this is a matter of court record, and that whenever, with the expiration of the in 1878 Governor Hubbard, of Connect Senate, the nomination lapsed, it was icut, characterized this financiering as renewed by the President at the next

scandalously unjust.” The other ob- session. Meanwhile Dr. Crum has been stacle to Mr. Bulkeley's election, accord- performing the duties of his office. The ing to Dr. Smyth, consists in Mr. Bulke- President has proved himself possessed ley's opposition to the “ Corrupt Prac- of greater patience and persistence than tices Act” in Connecticut. In a legis- the Senate. The committee has at lative hearing regarding this act, Mr. length reported the nomination and the Bulkeley was asked by Senator Cleave- Senate has straightway confirmed it, if land the following question : “Do I infer newspaper reports are to be believed, that it is lawful and right for you as a by the gracious consent of Senator Tillcandidate for office to buy a vote which man, though against his formal opposiis for sale ?" Governor Bulkeley re- tion. In general, The Outlook believes plied as follows: “I think it is right for that the President in his appointments a candidate to secure that man's vote, if should recognize the principle that a he is without principle and ignorant, by man ought not to be appointed in a any means you can use. We think it community where he is for any reason doubtful whether Dr. Smyth's campaign persona non grata.

But in this case the of protest will succeed in defeating Gov- opposition to Dr. Crum was not personal ernor Bulkeley; the machine the latter but racial; the public protest against has been building for many years is too his appointment was made on the dispowerful to be smashed in a month. tinct ground, as expressed by the proBut, whatever the outcome, Dr. Smyth's testers: “We have sworn never again to courageous and vigorous work in favor submit to the rule of the African, and of personal integrity and incorruptibility such an appointment as that of Dr. Crum in political candidates deserves the ap- forces us to protest unanimously against plause and support of all honest citizens. this insult to the white blood.” The With popular Senatorial elections, under answer which the President made to a primary law such as is now working this protest was the only one which he successfully in Minnesota, no one be- could make, consistently with his lifelong lieves that Mr. Bulkeley or Mr. Fessen- record, his well-known principles, and den or any man of their stamp could be the principles of his party: “I cannot eiected to the United States Senate from consent to take the position that the such a State as Connecticut.

door of hope—the door of opportunity

is to be shut upon any man, no matter Dr. W. A. Crum, a colored how worthy, purely upon the grounds of Dr. Orum Confirmed

physician of Charleston, race or color.” The Outlook congratu

South Carolina, was nomi- lates the President, the country, and nated by the President to be Collector especially the people of the South, on the for that port more than two years ago.

outcome of this issue. We say “espe

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