"T-vfi?
'
f
fe
6
agrees that Mr. Butto is entitled to every consid
eration, but regrets to notice that he regards as
prima facie evidence of honesty the fact that he
Is not a politician."
rHE supremo's court's decision In the merger
case docs not appear to have occasioned any
largo degree of excitement. The New York corre
spondent for tho Cincinnati Enquirer says: "Per
sons high in administration circles at Washing
ton let it bo known In New York's financial quar
ters today that in their opinion there need be no
fear of fresh attacks on combinations of capital
involving railroads or any of the industrials. It
was said tho Northern Securities .suit had been
begun as a warning against recklessness, and it is
believed that the administration, considering the
supremo court decision a victory, is not anxious
to press matters."
ON E of Now York's loading corporation law
yers, Judge John F. Dillon, is quoted by
this same correspondent as Baying that the Mer
ger decision marked a recession from former
harder decisions and that Jio could seo nothing
that resembled a menace to legitimate combina
tions. Tho Enquirer correspondent adds: "Wall
street took practipally the same view of the sit
uation and Northern Securities stock advanced.
James J. Hill said tho future course of the com
pany was uncertain, but that it would obey the
law. Bankers, railroad officials and corporation
lawyors who wore willing to discuss tho decision
wore almost unanimous in the opinion tnat in
outlawing tho Northern Securities company tho
supremo court at Washington had declined to ex
tond anti-combine principle beyond the case at
ISSllGf
IN THIS connection, the statement made by
David Willcox, president of tho Delaware
& Hudson railroad, are particularly interesting.
Mr. Wil cox, speaking to the Enquirer correspon
dent, said: "It is in reality a modification of tho
former interpretation or tho Sherman auti-com-bino
law. Justico Brewer, while concurring in the
decree that the Northern Securities holdings of
Northern Pacific and Great Northern was illegal
expressed very clearly his disapproval of any
broad interpretation of tho Sherman law. In his
opinion ho practically joined the tour justices
who constituted tho minority of the "court anS
r5o,?0UnH(I ,am011g th0 maJrity Mens merely
so far as the judgment was concerned. From this
it is evident that Justico Brewer would be 01 -posed
to declaring illegal any corporation unless
It conspired to absolutely restrain trade." it is
explained that Mr. Willcox and the gonial conn
sol of one of the other anthracite coal roads both
expressed tho opinion that the case now pending
in tho supreme court against tho anthracite rail-
s?cX?sir ay hQ aftecied by the
F R nii0 lfIobratel on March 21 the centen-
the ruins loft by tho revolution and wVoTamPied
tho greater part of Europe under his feet Th
writer in tho Philadelphia Ledger says- n
celebration is of great historical Tsignifince be
cause the legal system which it SS m? n
living force in tho world today, it wa . imVoScd
by Napoleon upon tho countries wUch canTmi
dor his sway, and still forms tho hail of "the i
not only of France, but of Belgium Holland
clyirT f, Switzerlad. most oFCsouth and
Central American republics, and even of our own
otate of Louisiana. Its Influence is K SSS
tn Germany, in Spain and even in Russia?"
tr
fT X 5h?2intefa, 0Ulhy thIs Bame authority that
1 .Giort tUe FrencU revolution there was
great diversity in the laws in different par ts of
the country and the establishment of uniformity
and slmplic y in the legal system was one of the
most urgent of the reforms demanded. Attempts
hi this direction wore made after tho fall of the
monarchy, but it was not until the t'mo of th
Kw l,nVr?8tod. "Je- work of codification to the
ablest jurists of France, and to his stimulating
deSineCnnfl3! dUe,th 8UcceSs of the S2tE
dertaking. it is not pretended that the code
but 'tSii18 nam was thG work of Napoleon;
on hE n w?'k (1Sn' and' ns a recont writer
on his life and times has said of the preparation
of tho code, tho first consul decided points upon
The Commoner.
which the jurists disagreed, 'and even the most
expert specialist rarely left tho council board
(council of state) without feeling that the marvel
ous pressure and power of elucidation of the great
intellect that had presided had deepened his own
knowledge of his particular subject.' Even when
the courts of justice and the council of state had
passed tho code, Napoleon had to 'reform' the leg
islature into docility to secure its final passage."
ST
IT I S further explained that the Code Civil did
not introduce much new law, but simplified
and effected a compromise of the provisions al
ready existing, and was framed "to provide all
with equal justice, equal privileges, equal oppor
tunities for advancement." It has required con
siderable judicial interpretation and some legis
lative amendment, but remains today substantially
as, promulgated. There were really five codes of
law enacted during tho Napoleonic era, between
1804 and 1810; but the first is that which is in
general parlance known by Napoleon's name. It
deals with family relations, property, ownership
and mortgages, etc. The later codes, promul
gated during tho empire, are not to be used by
the present government as an excuse for glorify
ing Napoleon as emperor. It prefers to take as
the special event for commemoration that which
occurred during the first republic, and thus per
haps forestall any possible demonstration in the
interests of the Bonapartift pretender.
IT JT
FOR some time the treasury officials have
maintained considerable anxiety concern
ing the canal payment of $50,000,000. These offi
cials have been anxious that this payment be ac
complished without creating a disturbance in na
tional affairs. The Philadelphia Public Ledger
says: The treasury department has arranged
for the payments upon the Panama canal pur
chase in a way that will cause a minimum of In
convenience, and under the advice of the attor
ney general the whole transaction will probably
SLaCCS?pliSl;ed quietly w,thIn a weeks or
Sn 5'nn n?re is no obstacle to tho payment of the
$10,000,000 promised to the republic of Panama
assuming the existence of a responsible govern!
540 onSnoenIV?It-Tlxo more ImPortat payment
thowiS ffnfrnthe ProPy and franchises of
the New Panama Canal company might be comnli
cated by pending suits in France, but the aTtor
ney eeneral evidently regards these as affectincr
only the distribution of the money and not thl
power of the corporation to transfer the title."
SB If
TH E payment to Panama Is In the way of a
bonus or bounty. Th3 payment to the caua
company is in exchange for all its property mi h
iPt,SnwSln 'If rigUts' Pvileges and franchises
L? valuaon of which was in excess of Sinn'
000,000. The Ledger writer says: ''The present
company was organized in 1894 unon th Z
with a capital stock of 650,000 shares of 100 fran
each-an aggregate of $13,000,000. Fi?tv thousand
ever, that there will be any obstacle to XV0W"
fer, though Colombia mav SKm - ll tUe trans"
proceeds. The nominal TcaniS S of the
ma Canal company does not it l New Pana"
its financial obligations hfc . ?6' rePreint
heen agreed upon is sunnn ne Price that has
present value of its SW aPProimate the
of these is the stock-S nnTh? Tat imPortant
of the Panamltatoa & ThT shares
held an exclusive concessTorPfrom tho lrmy
government for all transit woS?h?kiS0lombIau
tho grant under which the can ni ! isthmus. and
was subject to these rtehte A Jndertaken
therefore, for tho original 1 canal oZ necessary,
quire tho railroad comnanv't Lmpany to be
held in trust and are ?ncluded in'3'. ,Wh,cU ar
transfer. When the trSctL Q presnt
Pleted, tho United Stated w h,?al b(J co"
actual owner of the PanamlpalSj? i eCOme the
of the Panama canal existiL . 10ad aa weil as
of a strip of land m1f wide 5SPtea and
from sea to sea, virtually eontro ff thulr COurse
transportation routes. P1& Sf al1 Possible
great price for such a proportf tT is Uot a
cost of completing the canaiY i,?ho estimated
extended, probabfy, WJOO, toS
in the Northern Securit eSrifiS
; . .'" 'VOLUMES, NUMBElUot
of that great merger will be at fMa
ularly interesting. A writer 2 the bSSi, parl
gle says: "The Northern SecurltS! ro1 IS.
incorporated on November 13 1901 iimi)ny
of New Jersey, with a capital SjLS f the las
000. The incorporaTet '
his friends, who controlled the maiorifv ana
stocft of the great Northern Lnwav I tho
and J. Pierpont Morgan and his friS C0,mpan'.
trolled the majority of thfstock of the n"
Pacific Railway company. MrHillw Nor"lera
president of the company The avmve6 tho
of the incorporators was to confrowi purposa
great competing railway systems an 'f Uvo
them for the benefit othe7 stockhoh?4 Tit
security holding company." ln lho
AT JB time of th0 Corporation of ih
Northern Securities company, accord L
the writer in the Eagle, the two railway ?&
were the only trans-continental lines extend
across the northern tier of states from the ia
cific ocean to the great lakes. This writer saw
Together with leased, controlled and owned
these roads aggregated about 20,000 miles and the
iSy?iemS Were in ctlve competition, SStinJ
frnC,?the at eVery poInt for an advantage u
freight and passenger rates It wlis alleged by tho
government that by the merger which it contend
ed ?iSiedhen' two & Principally Vm
S0U,f t?!he comination that organized the Se
curity holding company-the virtual consolidation
of the two great systems for a monopoly of freiclit
and passenger traffic by the suppression oi com
petition and the eliminaticn of the individual
but particularly the minority stockholders of both
companies, who would no longer have voice in
the management of the affairs of either company
having ceased to be stockholders in the railway
companies to be stockholders in the merger. The
late railroad magnate, Collis P. Huntington, is
accredited with being the first to use the security
hold ng company, which later found its highest
development and perfection of organization in that
of tho Northern Securities company."
J 9$
AN EXPLANATION of tho method by
wnich such a company operates is given by,
this writer m this way: "The majority stock
5S ?B thS Great Northern Railway company
join hands with the majority stockholders of the
2 nSLi? fPiflcPailway company. The merger
?nffpIeted by tne incorporation of the security
holding company, which, in this case, was tho
SSS. Securlties company. To maintain con
Sowif ser it follows that these combined
majority stockholders must partition among
nelVefthe ma3rity ot the stock of the se
nrfliLi i11?,5 comPan7 in exact ratio to their
Sinfl;? h0as- rn this way the holders of a
my L tne stock in the Northern Securities
S?I57,the Yhole asset f-which is a majority
contrni ? Ufed ver to Jt Y the same men who
rauSSr 1 nf e AW0 raIlroad still control these
tro ?hf aner t1he mefSer- " follows that to con
raiJinS . Jroadf seParatdy as individuals would
i?K aa invetment of fully double the amount
secu??tvWhoithe tW0 are mersed toSether ln a
the idon alnF comPany. By an extension of
the Nnrhichols contained in the incorporation of
ilv anSJSf? ?TUTiUe3 company, it can be read
dJvSPSSne? t0 what enormous proportions tho
ceivaLCfU,ibG made to attain It is even con
canlteifiJ uat aAreat security-holding company,
of smnfil WeH int0 the oiiiions, could be formed
roilrondi nme,!s?r8 and tk(r control of all the
of man J"8 the hands of a small group
stock SnM C0Uld dispose of nearlyhalf of their
aTemoS? r ff and sti11 retain control of tho nian
ffM the railways thus merged. A signif
Northirn i.U co,nnectIon with the forming of the
was thn iSeCUrIt1?8 coPany in .November, 1901,
the ilZP0mti0n hardly two montns later in
Uflcatfl o te of four otlier companies, the cer
parenelv0Lincorporatlon the first having ap-
Southern ? U,Sd as a modGl- Thes werc the
Securitipc 5nCUrities cmpany, the Southwestern
pSy Mid rS1!' th0 Mexica Securities com
1 ny aud the United Securities company."
PromLSi7nir a that some of e "leaders" havo
Hill wU d0JiVGr thG Indiana delegation to Air.
iana deloJitin 1 lt comes to delivering the Iud
betweon SS there Is a eat deal o:f .difference
will not tZ h6 Performance, or the voters
1 not take hindly to the scheme.
the rennuwS?nt 0f4 thJea7 approach of election
Sin the de nX fmHrity ,n conGSS wil1 soon be"
iprocitv trinHtful task of trotting out a few rec
light until naflSSand keePInS them in the spot
to tL drLa?ter the vtes aro counted; Then hack
0 tne dressing-room for the treaties
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