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.'
