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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Oct. 1, 1913)
The Commoner VOL. 13, NO. 30 F The Work of the President's Cabinet DEPARTMENT OF JUSTICE President Wilson, In the six months of his Administration, has accomplished moro in tho direction of tho solution of tho trust problem than republican administrations accomplished since the enactment of the Sherman law in 1890. For moro than twenty years the peoplo had their hopos aroused under republican adminis trations by tho filing of bills against trusts, only to have them dashed to tho ground when de crees wore entered leaving the control of the properties In tho hands of thoso who controlled and directed tho trusts which tho peoplo had been led to bolievo would bo dissolved. When Attorney General McHeynolds was in vited to take a portfolio In the cabinet, Presi dent Wilson know that he had sought in the American Tobacco case an effective dissolution of that trust, and that at tho head of the de partment of justice he would be able to carry out tho policy which he desired to inaugurate in tho tobacco case. It Is not generally known that Attorney General McReynolds haB In the Union Pacific Southern Pacific caso obtained a decree which Is of exceptional importance to the people, in that it has placed tho fact upon the record that the courts aro ready to apply in trust cases the effective dissolution remedy advocated by the attorney general. Ttie big offenders under the law, and those who are in the shadow land, directing large corporations, In fact, all those directly interested in promoting combinations of capital, are cognizant of the real situation, and aro fully informed that the trust policy of tho present administration will be fruitful of real results. Perhaps in no other department of the gov ernment Is there a stronger contrast between republican and democratic policies than is to be found in the department of justice. The three big dissolution suits of the last adminis tration were the Standard Oil, the American Tobacco and the Powder cases. It is only neces nary to contrast with these the trust cases of tho present administration to impress upon all the foundation for tho assertion. In all of the tTust cases under republican administrations the decree of dissolution placed tho various competitive units composing each combination found by the courts to be unlawful, largely, if not entirely, in the hands of one set of stock holders, so that in reality tho dissolution ac complished a change only in form with the same set of men continuing to control the various competitive units. A single holding company no longer continued in control, but the stock holders of that holding company did. In other words, tho same association of persons con tinued to control tho same competitive units, and, of course, competition between them could not be expected. Of the suits Instituted under this administra tion the most important are the Anthracite coal, the American Telegraph & Telephone, and the Kodak cases. In all of these the department of justice proposes to apply tho remedy adminis tered in the Union Pacific-Southern Pacific com- n,SS-0nVi BiUlts agaInst trusts under this ad ministration the courts aro asked to require that the stocks of the constituent companies composing the combination shall be disposed of to persons not stockholders or agents nor other wise under the direction or control of the parent company. This principle was first established in tho decree recently entered for the dissolu tion of the Union Pacific-Squthern Pacific com bination. It was the first time that the govern ment attempted to follow the distribution of the stocks of unlawful combinations into the hands of disinterested parties. Boforo becoming attorney general, Mr. Mc Reynolds, as counsel for the government In the American Tobacco case, attempted to introduce his solution of the trust problem by asking the court to require the distribution of the stocks of the parent company to persons not its stock holders or agents nor otherwise under its direc tion or control but in this ho did not succeed. For Attprney General McReynolds was re served the novel experience of dissolving two combinations In arranging a decree against one. This occurred In the Union Pacific-Southern Pacific case. Tho plan of dissolution in that case was designed especially with a view to avoiding the results in the Standard Oil and towedln Si08 ' Th0 CritIcIsm of P" fol lowed in those cases and it was a just criticism was that the various competitive units which had composed the combination were placed in control of practically one set of stockholders who were the same persons who brought about tho combination. Several plans of dissolution proposed by tho Union Pacific-Southern Pacific combination were rejected by Attorney General McReynolds for the reason that he did not con 'sider them adequate to guard against a result similar to that in the Standard Oil and Tobacco cases, and it was not until the defendants ac cepted the provision which did guard against such a result that the attorney general gave his approval. In breaking up the Union Pacific-Southern Pacific combination the attorney general has also succeeded in discontinuing the control of tho Baltimore & Ohio railroad by the Pennsylvania railroad. Tho plan approved by Mr. McRey nolds was that out of the total holdings of $126,650,000 of the stock of the Southern Pa cific company by the Union Pacific company, $38,292,400 should bo sold to the Pennsylvania railroad In exchange for its entire holdings of tho capital stock of tho Baltimore & Ohio rail road, namely, $42,547,200. Obviously that ex change helped to separate the Southern Pacific company from tho Union Pacific company and to break up tho unlawful combination between them. Furthermore, it divested the Pennsyl vania Railroad . company of a large amount of the capital Btock of an active competitor the Baltimoro & Ohio Railroad company and thereby remedied another highly objectionable condition. Nor was any new combination in restraint of trade created by the exchange, since the Pennsylvania system and the Southern Pa cific system are non-competitive and tho Union Pacific system and the Baltimore & Ohio system are non-competitive. It is difficult, If not Impossible, to conceive of any plan of dissolution which would more effec tually prevent the Union Pacific Railroad com pany or its stockholders who were parties to the combination from continuing to control the Southern Paclfio company. The policy of compelling real dissolutions has disturbed seriously great financial interests, as might well be expected, and accounts for the anxiety of some peopje who would like to see Attorney General McReynolds retire. Why should a man seated in a Southern Pa cific train crossing Texas, or in a Union Pacific train in Utah, or in the east upon a train on tho Pennsylvania railroad, or on the Baltimore & Ohio, smoking a cigar and looking out of the window at the oil tanks along the track have forced upon him the thought that he as the purchaser of a railroad ticket Is more fortunate than as the smoker of tobacco or the user of oil. It Is all because of the difference in the democratic and republican trust policies. As the purchaser of a railroad ticket upon the lines named he enjoys all the benefits which follow the dissolution of the Union Pacific-Southern Pacific combinations, which incidentally has also broken the control of the Baltimoro & Ohio railroad by the Pennsylvania through stock ownership. This dissolution Is so thorough and complete that tho combination is to end. But when he smokes a cigar or uses tobacco in any form, sees an automobile or an oil tank he is reminded of the failure of republican adminis trates to effectively dissolve the Standard Oil or Tobacco or any other trust DEPARTMENT OF COMMERCE The bureau of foreign and domestic com- SnfAfTOf 0Ut lts functIas of collect ing and distributing useful trade information is devoting special attention to an investigation of the pottery industry in all Its phLes Com plete and authentic information regarding all Phases of an industry has often been lacking as shown again and again In the past. This inl yestigation, it Is hoped, will bring very impor tant and useful results and It Is believed that the report will be not only interesting to the public and to congress, but will serve an instruc tive and promoting effect on the industry itself Tn fact, the. Investigation has progressed far" enffi to mako this practically certain. With the approaching completion of thfi Panama canal, the bureau is planning tn ex ploit particularly our trade with the LatinI American countries, which include South America (except the Guianas), Central Ameri can republics, Mexico, Cuba, Haiti, and Santo Domingo. When it is noted that the vnln the exports from the United States n L countries in the fiscal year 1913 was 3n.,. ? dollars against 108 million in 190? an C " of nearly 200 per cent in thirteen vear, ?BJ this without tho use of the Panama canal' iM very evident that special attention given to ti, ! part of our foreign trade will bo very rename? two to American merchants and manufacture Ihe most recent statistics published in thP bureau respecting the imports and eio,t f the United States show that in the zZil our foreign trade continues to increase' Th value of imports for the month of August' isi was in excess of $137,000,000, or SnVvuofo less than for August, 1912, but the value of p. ESaa?1, the same moth was almost $HS. 000,000, or $20,000,000 more than for tho oo' responding month of 1912. Imports for tho eight months ended with August, 191:1' amounted to more than $1,156,000,000, a de crease of about $31,500,000, as compared with. the corresponding period of the preceding year while exports in the same time amounted to more than $1,515,000,000, an increase of about $98,700,000 over the corresponding period of j. y x u, , There is in the course of construction at Thimble Shoal Light Station, Va., a modem lighthouse which is expected to withstand tho accidents that have destroyed former structures at various times. This station occupies an ex posed site in the Chesapeake bay off Old Point Comfort. It has been rammed on four or fhe occasions and has been burned two or threo times. On December 27, 1909, it was destroyed by fire due to a collision with a passing tow, leaving nothing but the distorted iron woik of the substructure standing. The old structure was of wood, supported a cast-iron fourth order lantern, and rested upon seven wrough' iron screw piles. The new structure will con sist of a massive cast-iron pier filled vith con crete and will support a conical three-story dwelling of cast-iron and a circular helical bar lantern of the same order as on the old struc ture. Tho pier contains a cellar, with cisterns and various rooms for the fog-signal machin ery, oil, coal, wood, provisions, etc. Two large cargo doors in the sides furnish easy access for the heavy fog-signal machinery. On top of the pier, reached by two landing ladders, is a large covered veranda providing space for the keepers to walk and for housing the boats. The three stories of the tower will provide quarters for three keepers with a kitchen and living room on tho first floor. An enclosed circular cast iron stairs runs from the cellar to the under side of the lantern floor. The work will prob ably be completed about October 4, 1914. During the next fortnight the bureau of navi gation, In addition to its regular work, will givo special attention to preparations for the inter national conference to be held at London on November 12, ,to consider the broad subject of safety at sea. This conference is an outgrowth of the loss of the steamship Titanic. Its con clusions will embody the results of over a year's careful study by tho leading maritime nations of the world of the many problems suggested by that disaster. President Wilson and Secretary Redfield have had several consultations receutly concerning the American delegation to the con ference and Its members will doubtless bo ap pointed within a few. days. Under the secre tary's direction six committees of experts have been studying the subjects of hull and bulk head construction, radiotelegraphy, efficiency of officers and crews, lifeboats and davits, ocean steamship lanes, searchlights, and aids and perils to navigation generally. These reports aro now being assembled In the bureau of navi gation and will bo available for the study of the American delegates. Although only six passenger steamers fly tne American flag out of upwards of 300 which cross the Atlantic, the results of the conference will be awaited with Interest throughout the United States. The states of the middle west and west furnish as large a proportion of, ocean travelers as do the seaboard states. Approximately r 000,000 ocean passengers arrive in or depart from tho United States annually while only about 250,000 go through the Suez canal wnicn Is the junction of the two parts of the next greatest route of ocean travel. Tho great ma jority of transatlantic cabin passengers aro American cltizenB and the vast majority oi transatlantic passengers In the steerage ore destined to become American citizens, uur public interest in the safety of transoceanic travel is thus greater than that of any otner nation except perhaps tho British empire a - i 1 mu Amana.'