'-, v .
The Commoner.
Sept. 2(5, 190a
twenty-seven states and these twenty-seven in 1900
comprised 62.2 per cent of the population.
RepujbHican PAPERS POINT with
pride to the "good surplus" now in the
United Stntes treasury. A reader of The Com
moner calls attention to the fact that on July 1,
1902, the cash balance in the treasury, exclusive
of the reserve and trust funds, amounted to $203,
74,599. The cash balance exclusive of the re
serve and the trust fund August 31 was $209,491,
600.61. All this represents money locked up in
the treasury. The increase in tho amount of this
locked up money during one month was $5,516,
901.61. This reador points to the .fact that the interest-bearing
debt of this country now amounts to
$931,070,340. With this immense sum of idle
money locked up in the treasury no effort Is be
ing made to pay the national debt,-but with this
enormous sum of locked up money the secretary
of the treasury is urging national banks to take
out new note issues in order to prevent a money
famine.
REFERRING TO THE ANNOUNCEMENT
that the governor of Pennsylvania favors tho
convening of the legislature and the passage of a
peremptory arbitration measure, a republican pa
per says that this is the most radical position as
sumed by a state executive since the advent of
Pingreo in Michigan. It is admitted, however, by
the republican press that the governor has the sup
port of practically all the country papers and
many of the city newspapers. It is generally ad
mitted that should the legislature of Pennsylvania
act upon tho governor's suggestion, the coal oper
ators would be required to make far greater con
cessions than tny of those demanded by their
workingmen. It is very evident that public sen
timent is rapidly crystallizing in favor of heroic
measures in order to protect the coal consumers
of the country from the great inconvenience un
der which they are now placed.
THE LATEST ERUPTION OP MONT PELEE
resulted in the destruction of hundreds of
people who had been returned to their homes one
week before the most recent eruption took place,
and who had congratulated themselves that they
were spared' in the terrible work of destruction in
tfle first instanced A Baltimore paper refers to tho
return of these people as a most 'pathetic phase. It
says that "these people were returned to Pelee's
immediate vicinity as if scheduled for destruction,
and the volcano did not keep them long in sus
pense. The destruction of the latest . eruption
shows that science knows practically nothing as to
the probable activity of a volcano. All signs have
failed in tho case of Mont Pelee and the matter is
pure guesswork. The French colonial authorities
have doubtless done their utmost to relieve the
distress in Martinique, but have failed to provide
permanently 'for those who fled from the volcanic
zone,"
THE RECENT MILITARY RIDE FROM BRUS
sels to Ostend draws a stern protest -from
Harper's Weekly against affairs such as this
which was distinguished as a record of brutality.
Cable dispatches describing this ride say: "The
horses were hoof-deep in mud during the contest
3lany horses fell exhausted. Three of the animals
dropped dead before Ostend was reached. When
"near Ostend the French Lieuetnant Bauzil, who
noticed that his horse was dying, drew his re
volver and blew its brains out The only English
officer .in the contest, Lieutenant Gibbon, saw his
mount was exhausted, and dismounted while the
animal panted its life away. The race was won by
the Frenchman Lieutenant Madamet Riding a
Hungarian thoroughbred, he was received at the
finish with great enthusiasm, his time for the
eighty-two and a half miles being six hours and
twenty minutes. The horse died soon after the
victory." Harper's Weekly well says: "The af
fair was a disgrace to all participating in it, and
.what possible object did or Could it serve?"
I" T. IS NOT GENERALLY KNOWN THAT THE
legislature of the state of Washington has
'passed an act known as house bill No. 90, making
application to congress for the calling of a con
stitutional convention. This bill was passed at the
legislative session of 1901 and was introduced by
& K. .Pendergast, a lawyer of Waterville, Wash.
5The Introduction of this measure was prompted
6y the strong sentiment in favor of the election of
Senators by direct vote of the people. The Wash
ington, bill is as follows: "An act making; appli
cation to the congress of the United States of
America to call a constitutional convention for
proposing amendments to tho constitution of tho
United States of America as authorized by Artlclo
V. of tho constitution of tho United States of
America. Bo it enacted by the legislature of tho'
"state of Washington: Section 1. That application
be and the same is hereby mado to the-congress-of
the United States of America to call a con
vention for proposing amendments to tho consti
tution of tho United States of America as author
ized by Article V. of tho constitution of tho United
States of America. Section 2. That a duly certi
fied copy of this act bo Immediately transmitted
to the presiding officer of each legislative body of
each of tho several states of tho United States of
America through the governor of each of tho sov
eral states with a request that each of such leg
islatures pass an act of like import as this act
Passed by the houso February 19, 1901. Passed
by the senate March 12, 190L Approved by the
governor March 18, 1901.
IN THE LIGHT OF A REPORT RECENTLY
made to tho governor of Iowa by tho at
torney general of that stato concerning tho Rock
Island reorganization scheme, the people of tho
Hawkeye stato are placed in a humiliating posi
tion. Governor Cummins had asked tho attorney
general to see what steps could be taken to pre
vent this reorganization plan. While it is ad
mitted that under the now plan tho corporation
will issue stocks and bonds In amounts largely in
excess of the actual valuo of their property, under
going the "water cure" process, now so prevalent
in corporation circles, the attorney general says
that the state is powerless to prevent the scheme.
Governor Cummins, after examining tho attorney
general's opinion, concurs with him in tho conclu
sion that under the laws that now exist the stato
of Iowa cannot prevent consummation of the plan.
Governor Cummins explains: "Tho thing done is
neither a merger or a consolidation. Not a milo
of track nor a dollar of valuo is added to the Rock
Island property. It is simply a new device for wa
tering securities." The governor announces that
he will appeal to the next general assembly for
an amendment to tho law which will prohibit tho
water cure treatment
THE LETTER WHICH GOVERNOR CUMMINS
wrqte to the attorney general in submitting
to him the question as to whether this railroad,
reorganization scheme could be prevented is an in
teresting document The governor pointed out
that prior to the recent Incorporations there has
for many years existed a corporation known as
the Chicago, Rock Island &. Pacific Railroad com
pany. This company was Itself a consolidation
and was organized under the laws of the states
of Illinois and Iowa. It gradually acquired, direct
ly or indirectly, other lines, including the Burling
ton, Cedar Rapids & Northern, until, at the time
the Investigation is to begin, it owned or -controlled
the entire system which it now operates.
The outstanding capital stock was at the time in
dicated and still is $75,000,000, par value. ThiB
stock represented, subject to the mortgage and
floating indebtedness, the whole value of tho
"Rock Island" system of railways, and a majority
of it was held by a few men who held relations
so close that in all the proceedings they acted in
absolute concert to accomplish a common par
pose. The stock was quoted on tho New York
stock exchange at about 200 per cent
IT WAS THEN POINTED OUT BY THE Gov
ernor that these men holding a majority of
the $75,000,000 of stock of tho old Chicago, Rock
Island & Pacific Railroad company came to tho
conclusion that it would at least bo adyantageous
to them first to secure the stock and securities of
the property without conserving any of the such
increase, and, second, to so arrange tho plan that
the increased control of the system could be re
tained with a greatly reduced investment Having
thus agreed upon the ends- to be sustained .the
corporation called tho Rock Island company was
organized under the laws of New Jersey with an
authorized capital stock of $150,000,000, being $54,
000,000 preferred and $96,000,000 of common stock.
Another corporation called tho Chicago, Rock Isl
and. & Pacific railroad was organized under the
laws of Iowa with an authorized capital stock of
$125,000,000. These corporations controlled by tho
same persons who originally conceived the scheme
entered into an agreement with each other by
which tho new Iowa-company issued and delivered
to the New Jersey company the old capital stock
and in consideration therefor tho New Jersey com
pany agreed to issue and deliver 0 the stock
holders of the Rock Island company one share of
common apd 7-10 of a share, of preferred stock: for
each share of the old Rock Island stock held by a
stockholder willing to mako the exchange. There
upon tho now Iowa company published tho offer to
all th6 at6ckhoIdors of tho old Rock Island com
pany propoaiug to buy their stock and glvo for it
tho following securities: First, 100 per cent in its
own bonds, which bonds woro to bo secured by a
deposit of stock so to bo purchased; second, 100
per cont of tho common capital stock of tho Now
Jorsoy company; third, 70 per cont in tho pre
ferred capital stock of tho New Jersey company.
GOVERNOR CUMMINS DECLARES THAT
whon this plan is carried out tho situation
will be about as follows: First, tho Chicago, Rock
Island & Pacific Railway company (tho old com
pany) will still own and operatoits system of
railway lines. Second, the Chicago, Rock Island &
Pacific Railroad company (tho new company) will
own tho seventy-five millions of stock of tho old
company, but it will ba pledged to secure an equal
amount of bonds which it proposes to issuo. It
will, practically spoaking, havo no further func
tion to perform, unless it becomes tho owner Qr
lessee of tho property. Third, tho Rock Island
company (the New Jersey company) will own and
hold the entiro capital stock of tho now Iowa
company one hundred and twenty-five millions of
dollars. Fourth, a majority of the preforred stock
of tho Now Jorsoy company will elect a majority of
tho board of directors and thus control it This
same majority will elect the directors of tho now
Iowa company and thus control it, and tho last
named company will elect tho directors of tho old
Rock Island company, which operates the prop
erty. The chain is complete Fifth, as conditions
were beforo the plan was undertaken, with tho
stock of tho old Rock Island company at two hun
dred, it required an investment of more than
seventy-five millions to control tho property. Now,
with tho preferred stock of tho Now Jersey com
pany at par it requires an Investment of only
twenty-six millions, two hundred and flfty-ono
thousand to control it Sixth, in tho stead of seventy-five
millions of stock which formerly repre
sented tho entire interest in the Rock Island sys
tem, exclusive of Indebtedness, thero aro now
four hundred and two millions, five hundred thou
sand dollars of stock and bonds, and this without
the payment of a dollar, save tho fees for organiz
ing these companies. The whole amount of the
ptock is hot available for trading purposes, but It
exists. Having made this statement to tho at
torney general, Governor Cummins asked: "Is
thero any romedy under our laws for so grave an
offense against public policies?" Tho reply of the
attorney general Is that there Is no remedy.
THE UNITED STATES GOVERNMENT IS
about to embark in the boarding houso
, business. Dr. H. W. Wiley, chief of tho bureau of
'chemistry in tho department of agriculture, will
open a boarding houso for tho purpose of making
experiments In the interest of pure food. A writer
in the New York Sun refers to Dr. Wiley's es
tablishment as "an adulteration testing eating
house." This writer explains that the effect of tho
many substances used to color, preserve and var
iously adulterate and sophisticate food and drink
will bo studied. The alchemists of Dr. Wiley's own
staff will have the "first call." Twelve fortunate
and at present healthy young chemical bureau
crats will sit at that dining table; and If they suffer'
they will bo cheered by tho knowledge that their
pain Is the ountry's gain.
DR. WILEY'S DOZEN BOARDERS WHILE
being privileged to eat without money and
without price will probably earn their rations by
the inconvenience which they will bo required to
endure. According to the writer in the Sun, Dr.
Wiley's boarders -will live according to scale and
measure. Every one of them will bo weighed tho
moment hi: leaves his little bed to begin a new
day for health and chemistry. Three times a day
tho clinical thermometer will record their tem
perature and pulse beats. Not a bite or sop can
enter them without duo note and record. Some
of them will have pure food. Some of them will
have Impure food. The latter will bo their staple,
the former their rest and reward. They will be
under observation all the time. Their diet will be
analyzed. Chef Wiley is bound to find how much
borax, salicylic acid and other dainties a healthy
young chemist can hold. If the sophisticated food
and drink proves to have no really hurtful effect,
nothing will be done. Otherwise congress will be
asked to forbid tho use of preservatives and so
forth. "Manufacturers," says Chef Wiley, "are
as much interested in tho forthcoming tests as Con
sumers." Or as undertakers.
