Omaha daily bee. (Omaha [Neb.]) 187?-1922, June 01, 1910, Image 1
The Omaha Daily Bee. TIIE OMAHA DEE f ln moil powerful business Setter In tho twi, berausa It goes to to homoi of poor and rich. WEATHER FORECAST. For Nobrnska Fair. Frr Iowa Fair; ron'inupd cool. For wrailior report sro Paco 2. VOL. -XXIX-XO. OMAHA, "WEDNESDAY MOHNING, i JUNE 1, 1910 TWELVE PANES. S1NC1LE COPY TWO CENTS. CITY MUST BUY PLANT Omaha Compelled to Fay $6,263,295 for Water Company Property by Supreme Court. AFHUMS. COURT OF V'- ' Decision Supports Judgment iV Lower Tribunal. HID OF LONG, BITTER BATl'JV Litigation in Progress for the Last Five Years. APPRAISEMENT STARTS FIGHT First Conflict Arises Over Property to Be Included. SHIFTING OF VANTAGE POINTS Water Works Case Chronology February 2, 1903 Nebraska legislature passes law for Immediate compulsory purchase of water works by city of Omaha. March 2, 1903 Ordinance electing to purchase water works plant and fixing procedure. Appraisers later ap pointed: By Water Doard John W. Alvord of Chicago. By the Water Company George H. Uenzenberg of Mil waukee. By These Two Daniel W. Mead of Chicago. July 20. 1903 First meeting of appraisers. July 7, 1905 Water board enjoins appraisers from com pleting appraisement and asks the federal court for specific directions as to what should be Included. November 29, 1906 Judge Munger dissolves Injunction and directs appraisers to make returns as a whole, and also separately, for property in South Omaha, East Omaha, Flor ence and Dundee, and going value. July 7, 1906 Appraisement returned at $6,263,295.49. July 29, 1906 Water board rejects appraisement and by resolution asks appointment of new board of appraisers. Water company makes tender and sues In federal court for decree of specific performance. June 4, 1907 Judge Munger renders decision for city. Water company appeals. April 7, 1908 Circuit court of appeals renders decision for water company. June 1, 1908 United States supreme court on petition of Water board grants writ of certiorari. November 2, 1909 City votes $6,500,000 bonds to pay Judgment April 20, 1910 Argument on certiorari before United States supreme court. May 31, 1910 United States supreme court decides In favor of the water company. First Victor? to fttr, Thea Company Galas Declsloa Jumt Confirmed Ar(iiariti Held I.aat April la Washington. WASHINGTON, May 31.-The city of j Omaha will be required to purchase j the water works system of the Omaha ti Water Works company for $,263.29:.t9 under a deolslon of the supreme court of the United States today. The court affirmed the Judgment of the circuit court of appeals In the matter. The history of the purchase or the Omaha water works embraces a long series of liti gation in Us various phases, most of which has grown out of the act of the Nebraska legislature of February , 1903, compelling the purchase of the water works and pro v Id I tiff for the creation of the Water board, which should have charge of the adminis tration of the . water works when they became the property of the city. To comply with the mandate of this law an ordinance was pasted by the city coun ell ot Omaha, March 2. DOS, electing to buy the water- works plant under the pur chase clause, and directing the appolntmeo of a board of appraiser to appraise the -plant. A On. . of tha appraisers t pointed by the city, a second by the water company and the third to be selected by these two. The appraiser appointed by the City was John W. Alvord; by the water company, George H. Bensenberg, and these ' two Selected Daniel W. Mead as the third member of the board Under the so-caHed Howell bill inakln 1 compulsory the purchase of the plant, pro vision was aiso made for the creation of ' the water board to be appointed by th governor for various terms, two to be a p. pointed each year or until their successors 1 were ' elected. The first board, consisted of James E. Boyd, T. J. Mahoney, Milton Barlow, I. E. Congdon, J. F. Coad and Guy C. Barton. It was under this board that the appraisement was commenced, In May or June, 1903. Appraisement Long; Drawn Oat. The appraisement was long drawn out and Involved considerable controversy rela tlva to the procedure. Carl C. Wright, then city attorney, assisted by John Lee Webster, specially employed as attorney fur the Water board, represented the city in the litigation, At tne outset the question arose as to the l scope of the appraisement, the attorneys f tut tho city holding that it should only in clude such of the property of the wate company that lay within the city limits of Omaha. The Water board contended that the appraisement should embrace the entire plant, including the extensions to Dundee, South Omaha, over the property ot the East Omaha Land company, and the pumping station and filtration planu attd settling reservoirs at Florence. Tha question of the "going" value of the plant was also pressed by the attorneys for Uie water company. The attorneys for the Water Loard held out for the natural deterioration of the plant and Its Inade quacy to fulfil Its contract requirements With tha growing demands of the city, end tho disinclination of the water company to enlarge Us pumping and piping capacity, . Sahara Are Considered. - ""j"ni me ap- 40uiviit vuimtiucu uniu me matter finally got into the United States circuit Court and a decree was Issued directing that th board ol appraisers should proceed with the appraisement as a whole with separate findings for the plant as lying aithln the corporate limits of the city of Omaha; ot those (.ortlcns of the plant sup plying South Omaha, Dundee. East Omaha and the Florence plants and of the going aiua. (The board of appraisers finally submitted Its report on July 7, ISO, fixing the ap . , jjralsement ot the entire plant at K263.295.tt TT signed ny . tfensenberg ud . Mead. Alvord withholding concurrence by direction of the Water board's attorney. Immediately following the announcement of tha appraisement President Woodbury of the Omaha Water company made a formal tender ol the entire plant to the city of Omaha and rinmanila,. w. .... - wives, tor the amount of tha appraisement. The Water board went through the form "rejecting the appraisement and ordering " appraisement and then of employing xbrts to draw plans for a new plant On lus. Piesloent Woodbury brought suit in the United States circuit court for specific performance to compel the city and Water board to accept the plant under the appraisement and to pay for it. The Water board lawyers argued that the ap praisement was excessive, that the terms agreed upon by the contending parties were not complied with and that the finding was reached by only two of the three appraisers and should have been by all three. On June 29. 1907, a decree was entered by Judge Munger In the United States circuit court, dismissing the bill of complaint of the water company. An appeal was taken to the United States circuit court of ap peals by the water company, and on April 7, 1908, a decree was Issued from that court by unanimous action of all the Judges, re versing the decision of the lower court, de claring the appraisement valid and binding upon the city of Omaha and requiring the city to complete the purchase. The water board lawyers made applica tion to the supreme court of the United States for a writ of certiorari, which In appear irom the decision of the circuit court of appeals, and the same was granted. The case was recently argued before the United States supreme court by John Lee Webster for the water board and city, and by R. s. Hall and Howard Mansfield for the water company. While the case was still pending In the United States supreme aoiirt, the city t Omaha, on demand of the water board, voted $6,500,000 bonds for the purchase ot the plant and extensions. The water company lawyers scored an im. portant point by directing the court s atten tion to the voting of bonds as acquiescence In tha reasonableness of the award and recognition of the city's obligation tit buy. MUSILOWER THROUGH RATES Supreme Court Upholds Finding of Commerce Commission.' CUT FROM RIVER TO RIVER Decision Affects Tariff on Shipments from Points on Atlantic Seaboard to Points on Missouri Den ver Case Also Affirmed. LOBECK LIKES THE UECISIO.N Sayo It Will Be a Great Thine; for Omaha to Own It On Plant. City Comptroller Lobeck Is enthusiastic for the city taking over the plant Just as soon as possible. "Take It at once and operate It and make money for the city," says the comptroller. "In all cities where the municipality owns the water and other plants they are making money, and we can do It In Omaha." A. W. Jefferls said, when he heard of the decision: "It is Just what I when you are compelled to buy a lemon at a fancy price, the only thing to do Is smile." councilman uurmester said: "Members of the council have no concern of any kind In the matter, other than their Interest as cltlsens. Apparently tli Water board Is the only body having any gay, either ad "' vr vuauiv. i recau with a good deal of satisfaction now the occurences In the council of 1S7, when. If myself and other members had prevailed, the Water company would now be In the position in which the city finds Itself, except that we would have had possession of the plant as city property for the last two years almost, or since September, 1908. The hue and cry raised at that time was frightful. dui events nave proved we were on the right track and fighting for a good and proper solution of the question." jonn i,ee weoster, attorney for the Water board, said: "I have nothing to say regarding the decision of the supreme court In the water works case at this time. I have not seen the telegram an nouncing the decision, and hence know nothing about it." WATEH LITIGATION IS COSTLY City Has Paid for Water Board lla 001 Before First of This Year. The Water board has cost the city, since Its establishment, $112,061.39, up to Decern ber SI. 1909. The cost so far In 1910, ai near as It can be figured. Is $2,613.45. Of the total the amount spent for legal services la $62,122.47. During the first three ears after the board was In existence the cost of legal services was $15,788.21. In 1907 th legal Item was I22.624.S1; In 190S, $15,753.75; In 1909, I7.77. The amount thus spent In 1910 Is yet to be determined. Since January L 1905, eleven hydrant bills have accuinualted, each one approxi mately for $47.6 covering a six months' period. Th total hydrant rental to date c'-almed by the water company Is $r.22,008.85. ot which the city has paid under Judgment of th federal court $123,983.80. Of this, 195.000, approximately, was principal and the balance. I3.K4, was interest. The city comptroller has not yet figured the Interest u from the city on deferred payments for (Continued on Second Page.) WASHINGTON, May 31. The long contested order of the Interstate Com merce commission, reducing the freight rate between the Mississippi river and the Missouri river as a part of the through rate on through shipments origi nating in the seaboard territory, was today declared to be valid by the United States supreme court. In so holding the court reversed the lower federal court, justice McKenna in announcing the opinion, said the court hesitated to be neve tne commission sought to divide tne country into rate zones and neld tnat the. record did not show that such had been done. The contwt began early In 1907, when shippers, Jobbers and wholesalers in Kansas City, St. Joseph and Omaha filed a complaint with the Interstate. Com merce commission alleging that the rates charged by the carriers operating between points on tne Atlantic sea board and Missouri river cities on traf fic originating at the seaboard and des tined to these cities were unjust and un reasonable. After many hearings and several parties had intervened, an order was issued by the commlsslo n rifrnptlno- the railroads doing business between the Mississippi river crossings and the Mis souri rW'a. .1 . . meir rates as a pan or tne through rate on shipments originating m Renboard territory rr. v. . , in ranroaas in the west and shin pers, Jobbers and wholesalers in tin east, but outside of tne seahrmrrf tor. rltory went into the courts. The clrm.it court or the United States for the north ern aistriet of Illinois entolnert th em mission from enforcing the order on the ground that It worked an unlimt dt.. criminatlon against the intermediate lo calities ana shippers. nn, . iiic vuiumiBslon and bus nesa men I Missouri river cities appealed from the urcision or we circuit court. ine autnorlty of the Interstate Com merce Commission In issuing the order u.reuung a reduction of the through .c.B..i raies rrom Chicago and from bt lo "nver, and the validity of that u.u. was toaay upheld by the suprem l" i tne united States. I , r 1 A "" U item fglgM 9.000,000 fff : IT ipifLr ' """" ' WICKEliSHAM FILES JIATE SUIT Attorney General Seeks to Enjoin the Proposed Kaise of Freight Tar iffs by Western Lines. CONFERENCE AT WHITE HOUSE Decision is Reached After Long Talk with President Taft. SHIPPERS PRESENT THEIR PLEA Large Delegation and Several Con gressman Call on Wickersham. LA TOILETTE HAS RESOLUTION tt Ucon.ln Senator, In Address, Say 1'uriMinr f Advance nvr I to Destroy Any Kffrrt Hiillroad Hill MlHht llai. HAXSIIUU Mo., .May Sl.-fnlted .states I'lfttl.t .IikIk.' Dyer tonlnht innteil an or oer restraining rmin.art. members of the Wi-Hlerii Tmrflc association, from putting inlo effect it amoral Increase in frelaht r.i!i-;i. The petition, alleging an unlawful loml iiiallon and conspiracy . was filed by Frederick N. Judson, special counsel, and ICdiviiln I. (Jrosver.or. special assistant to Attorney Ueneral Wlckcrshntn. From the New York World. TIIE COST OF LIVING. CORPORATION TAX CASE SET Supreme Court Decides to Have it Re argued Next Term. FULL BENCH WILL HEAR IT History and Provision of Measure that Wa Drafted Along; Mnes that Were SoKBrsted by relde.r'I.ft. WASHINGTON. May Sl.-The suoreme court of the lilted States todav :et the corporation tax cases for reargument at the beginning of the next term before a full bench. This action Louisville Police Have Dragnet Out for Janitor i More Evidence Secured that Seems to Connect Him with Murder of Little Alma Kellner. Tl. ,. ... -up.eme courts upholding the order me interstate Commerce commission re ... iroignt rate between the Mis sissippi river and the Missouri river as a part of the through rate on through ship ments originating In the seaboard territory "... saving or about $140,000 a yeai to the shippers of Omaha. Sioux City St .IrtCAnlt anI .... . ........ sial,saa uny. Tms jg i.oiui ui attorneys ror the Jobbers A . . T V , . ""v..,., jonn iee Webster, who repre sonted the shippers at the hearw w the Interstate Commerce commission in Washington about six weeks ago, said that he does not wish to give out a statement v.,..... ...nit me matter until he hears direct '"Ph. .1.1 ... mwpptrs petitioned to the Inter- cuo commission," said Mr. """. io nave the rates reduced on ..-.s.n coming rrom Chicago to the Mis souri river and tho request was granted oy tne commission. This applied to all of ... ana tney in turn took the matter to the United States circuit court In Chicago, asking for an injunction to w.o ruling or the commission from going Into effect. The injunction was granted and th shippers and the Inter- vuMuunn-a commission aoDealerf ,h i u.i.iea mates supreme court asking that the Injunction be removed ... nnei telegram received by the rf--- it niiuiu seem that h .,... lip red tha ln,..H.. t . 1 ' . " lo oe declared null and void and the reduced rate, to go into ..v... uui m. inn not ten the rletaii. ,.. nl fl. I... """ ... nuiniauon irom Washington. .... .. i a noil in Tne nuinn., .. . l. i . Is Indicated by the telegram i. " a great saving to the me jussoun river section. Dur ng the hearing Edward B. Boyd, ssslstant .- ... p,eiaent or the Gould lines testified that If the reduced I 'i 1 allowed to go Into effect It would . saving of UtO.OOO to the shipper, of Omaha Sioux City. St. Joseph and Kansas City alone." W. W. Johnson, assistant irener.i ..iv.. agent for the Burlington road, did not care to discuss the decision. If .,,- a doesn t like to say any::. against our supreme court. At the sum. tim. - .. like to admit that they are rlh, i., ,v.. particular Instance, so our position is on the fence, and we prefer to say nothing." Attorney William l. Mcllugh. who rep resented th. railroads at the hearing In Washington, was anothep .n., ... He confined hlmelf to a single expression: haven t anything at all t . was announced fcv r-v.i Justice Fuller today at the conclusion of w., announcement of opinions. It will In sure the participation of Governor Hughes recently appointed a Justice, in the de termination of the cases. No reason was given for the reslgnment of the cases unless the statement, "for ar gument before a full bench," can be so Interpreted. The tax is required to be paid by July 1. As th constitutionality of the law will not have been passed upon by that time It Is believed many complications will arise. Hlatory of Measure. President Taft Is regarded as th of the corporation tax idea; as represented In this statue. He evolved it during the dlscusulon of tariff legislation and income and inheritance taxes in 1908-1909. As a result, congress Inserted the "corporation tax law" Into the Payne-Aldrlch tariff act passed by congress last summer. It be came section 38 of that statute. The law subjected to tho tax. In a general way, every corporation. Joint stock com pany, or association, organized for nrnfit and having a capital stock rem-esene,i h shares, and every Insurance company. The iax was obsignated as "a special excise tv with respect to the carryinir on or business" and It was provided that it should De equivalent to one per centum uoon the entire net Income" over and above is nnn recBivea irom all sources" during the year. j..riB were to De excluded from the In come, nowever, amounts received as dlvl dends upon stock of other organizations """'rv' u l" tax- .exempted from the tax were certain organizations, such as moor, agricultural, horticultural ternal beneficiary societies. One paragraph of tha law provided fn the publicity of the returns required a n oasis ot nxing the tax. The tax was to be paid on or before Ji.ka i ot eacn year and the returns for each year were to De made by March 1. It was and fra- (Continued on Page Two.) People who can get along very well with second-hand things, are watch ing the For Sale columns of The Bee daily. Every day someone Is advertl8-s lng an article that they do not need, and every day somebody Is snap ping up these articles. You have something about the bouse that you do not use? What is It? It has value. Somebody wants It and will pay for it. Call Douglas 238 and de scribe it to the ad taker and she will tell you what an ad j will cost to sell it. IX)UISVILLE, Ky.. May Tt.-Perslstent questioning of Mrs. Joseph Wendllng, who Is held at the police station here charged with having been an accessory to the mur der of Alma Kellner, the child whose mutilated body was found In a subccllnr of St. John's parochial school here yester day has failed to shake the woman's first declaration that sho knew nothing about the crime. She adheres to her stalcm-nt that a ring and pin found in a trunk at her home, both of which have been identified as tho property of tha murdered girl, were given her by a boy, and, further, than her admission that she has seen nothing of her husband, who was Janitor at the school, since his disappearance on January 14, when he drew $100 from tho batik, she will say nothing about him. Tho police are weaving a chain of cir cumstantial evidence about tho missing Janitor,, for whom they Inst nlRht began a wide search. Clothing which he is known to have worn bears numerous stains Which the detectives suld were traces of blood. A hat recovered from an old barrel, where Mrs. Wendling stated sho had thrown it about the" tlmo of the Janitor's flight, also bears similar discoloration. The trap door to the subcellar was so effectively hidden that Its existence could have been known to no one not most Intimately acquainted with the building. The keys to the school building, say the police, wero always in Wendling's possession, who was given em ployment one month before the disappear ance of Alma Kellner. Other carpet like that in which the body was wrapped for its hasty burial was 'found In the school store room. It is believed the girl was In the school chapel when seized on the morning of De cember 8, and dragged to a remote part of the building. The Kellner family tod.xy offered a re ward of 11,000 for the arrest and conviction of the murderer of Alma. Mrs. Wendllng was presented in police court today and her case continued until June 8. She denied all knowledge of the murder. The matter of ball was deferred until tomonow. DOXEYS HAVE TWO NAMES Physician and Wife Register at Hotel as Mr. and Mrs. Erder. MRS. D0XEY WILL TESTIFY TODAY Kvlrirm-o Shows that Defendant Had the Greater Part of Erdrr's laaurnnre Paid to Her Huauanil. FORMER GOVERNOR MICKEY IS STILL GROWING WEAKER Slight Bally Early Last Maht Succeeded by a H r-lapsp. I OSCEOLA. NEB.. May 31-(Speclal Tele-gram.)-Ex-Govemor Mickey's condition is rapidly getting worse. He has been grow ing weaker since 11 o'clock last night, and the doctor says he can hardly be expected to live through tne day. He rallied some what at about 7 o'clock last night, but n, Indications of any change for the better were but slight. He does not recognize any of the family now. ai. liOnn, May 31. How Mrs. Dora E. Uoxey and her husband. Loren Ji. Doxey, stopped at the iloser hotel under the names of "L,. B. Krder and wife" and received mail under the narres of both Erder and Uoxey within a few days after Mrs. Doxey hud received 12,500 Insurance on Krdcr's life and had given Doxey $1,8.10 of it va told by Clerk Harry Thomure today to the Jury in Mrs. Doxey's trial for murder. I suppose," the hotel clerk quoted the defendant as having said to him, "that you clerks think it funny that we register un der the name of Krder and receive mall under the mime of Doxey. We did that because we did not want some people to Know our business." Mrs. Theresa Schwartz, who nursed Mrs. ""rJ oner f.ruw a ooatn, said she was taken to Mrs. Dcxey's room at the hotel by Dr. Doxey, whom Mrs. Doxey said, ac cording to the witness, was her cousin. Children Are Kxelutled. Judge Grimm, at the beginning of the ses sion, enforced a ruling which bars children and young girls from the court room.. Mrs. Dora 10. Doxey will be a witness in her own behalf, probably tomorrow, accord ing to an announcement made by her chief counsel, former Lieutenant Governor Charles P. Johnson, today. She will testify, said the attorney, that she was a slave to morphine, as .the result of the administra tion of the drug to her by her husband, Dr. Loren B. Doxey. She will further declare that she knows nothing of the arsenic found In the stom ach of William J. Erder, whom sho Is ac cused of having murdered by poison after bifnamoiauy marrying him. for tho purpose of collecting his 12,500 insurance. "Her testimony will show." said Johnson, "that she loved Erder. If Erder had only set his foot down when she first talked of going away and had forbidden her to go, uuiigs mignt nave resulted very differ. ently." T.... A . . . . . . uut.uia irom Loiumiius, Neb., will testiry ror the defense as to Mrs. Doxey's subjection to the morphine habit.. llr. Doxey Get Money. Mrs. Doxey got for herself im of Eider's 2,U0 Insurance, as -Was shown today by witnesses. The balance was shown to have been put Into the form of checks payable to Dr. Doxey. The additional sum of fcuO colleet.i k.. Mrs. Doxey on the affidavit that she was iMuers widow rfas paid because death of Krder's sister. Henry Nleman, cashier of a bank where Mrs. Doxey obtained the checks, said Mrs Doxey returned to the bank the next day a"d np che.k made from one she of th. (Continued on Second Page.) Long Search for Sugar Men "Higher Up" Bearing Fruit NEW YORK. May M.-Wlth three fendants eliminated, but with the Interest In the proceedings heightened rather hn diminished by their withdrawal, the resump tion tooay or tne sugar conspiracy trial in the United States circuit court was ac companied by rumors that the irv.m. merit's long search for men still "higher up" In the alleged conspiracy might shortly be rewarded. The rumor arose rhieflv 'nut of developments said to have followed the arrest ot Jamrj O. B. Hirerenskl th. former special treasury agent, on a charge of perjury In connection with the suuar cases. As the result of pleas of guilty last Fri day by the three government checker, on trial, there remained the big man In the case. Charles It. Helke, secretary of the American Sugar Refining company, and two of bis former subordinates, Ernest W tierbracht. superintendent of the company. llllunisburg refinery, and James F Jten dernagel. the refinery cashier. Motions "f their counsel to dismiss the Indictments were denied t.y Judge M.rtln after tn. u ' had been excused on the adjournment over t. today and the taking, of testimony n their behalf followed formal opening by the defense was expected to be well under way btfoie the day's sekslon was over. WASHINGTON. May ill. A decision at a W hite Hdise conference this mornliix be tween the picrlilent inn! Attorney Ueneral Wickfi-slmm to Institute nt once Injunc tion proceedings, probably at St. Louis, nsainst the Western Traffic association to prevent a get etal Increase In freight rates tomorrow preceded by but half an hour the Introduction In the senate a resolution by Senator Lu Kollette declaring It to be I he sense of that body thut such an In junction Milt should be brought. iN'iie of the senators in the chamber when Mr. l.a Kollette put In his resolution new ,.f the decision already reached. enatnr Crane of Massachusetts, who saw he president at the conclusion of the con leunce with the attorney general, was the fart to take the news to the capltol. Stnator l.a Kollette was prevented from making a peech In support of his resolu tion by the determination of Senator Elklns to call up the rallitad bill for Immediate consideration. Attorney Central Wlekershnm, after at tending tho sitting of the United States supreme court, had a scries of conferences with senators and It was decided that Sen ator Curtis of Kansas should make the re ply to Senator La Kollette, If tho resolution mould again be called up. Shippers See Wickersham. The decision to Institute Injunction pro ceedings followed a conference In this city yesterday between Attorney General Wick ersham and committee representing ship pcis, consumers and producers In the terri tory affected by the proposed Increase In rates. This committee was accompanied to the lepartment of Justice by Senators Clupp of Minnesota. Cullnm of Illinois and Warner of Missouri and Representatives Nye of Minnesota, Hitchcock and Norris of Nebraska, Hubbard of Iowa, Madden of Illinois and Stafford of Wisconsin. The committee protested vigorously against the proposed Increase. TIih Wisconsin senator presented his first resolution, which was a mere declaration purporting to give the views of the senate. It went in as a part of the routine busi ness, but when he requested Dresent en,,. siderutlon of It, objection was voiced by Senator Elklns. ' Mr. l.a Kollette'a Ite.olnt Ion. Tim resolution recited that the rn. had announced a general advance In all class and commodity rates, and after nr. senting several other considerations by way of preamble, proceeded: Resolved, Thut It is the sense at .h. senate that tho attorney general should proceed at once to institute actions enjoin ing such advances as hua been o.,h u. filed with the Interstate Commerce corn mission, and should also Institute prosecu tions f lh. ,.alroads mng lK,h being In violation of the act of m... approved July 3, lsyq, . entitled an act to protect trade and commerce against un lawful restraint and monopolies." Senator LaFoliette said 1, h,r '- duced hi rate resolution because the In creases to bo made by tho-railroads, rang l"g, according to his estimate, from 6 to M) per cent, would impose Intolerable burdens on the people. He declared that the ex cush that the Increases wer,. mu.. k ----- uuv uct d u of advanced wages umounted to "mere nre- icnso and the l.iirhnr -,,,. - nuuia result annual profit to tho -.! . . from mom. tn WIO.000,000.. He believed that the notice that the rates woM .., ffect tomorrow was for the purpose of beating ouf the railroad Ml. ... probabl proMbftlon airaln.t ...... L. 8 advanced without the ,....., . te state Commerce commission. Will He Hied l LouU. It is generally believed the suit against the railroads will bo Instituted at . S z iTr cen,rai point-T,e the legal proceedings wero left by th. president entirely In the hands of Attorney Ueneral Wickersham and the Department of Justice officials. Mr. Wickersham'. ference with the president was . hurried one. but It is understood the matter w d scussed at some length by tha president at the cabinet meeting this morning ' l'.eside.,t Taft regards this situation a. r '" ",B aominiHiratlve railroad i.im now n.,i.n.w . . . ui.i ," ' -""Kiess, winch If enacted will Kive the interstate Commerce commis sion the right ,o suspend for sixty any proposed Increase in railroad rates MINNEAPOLIS BANKER IS CHARGED WITH SMUGGLING It. It. I. yon . Aetueed of Attempting to Ciet Jewelry Past lot. louts t'ollccior. .V0.UKl. M"-- a Lyon, who ,., U1P presuient and vie presi dent of several bank, and corporation, , Minneapolis. Minn., was held today on the rhnrge of smuggling two pearl necklace, a brooch and gold wutch. Mrs. f uler Leave for Ml.1,1... NEW Y. Hk. May 8I.-M,,. Elisabeth It ( iiMer, widow of CeneraJ Custer ,1. famous Indian fighter, will leace town to nlifl.l f,,v M,. ,.,... .... .: . wn '" i,... I,," .... .. :.V "e """"place of her husband, where a monument in i.i. memory will be unveil. ,1 by ber ,loxt unlay. President Taft wrll ..tend Um ccivmony and will muke an addiasa.