Watson's Magazine, Vol. IV, No. 2, April, 1906

Part 26

Chapter 263,638 wordsPublic domain

The Pennsylvania House of Representatives adopt a resolution that the Attorney General be instructed to inquire into the allegations that the Pennsylvania Railroad, the New York Central and the Buffalo, Rochester and Pittsburg Railroad companies, and their leased lines, are directly or indirectly engaged in the mining of bituminous coal, and if it be found that they are engaged in this business that he proceed against them.

Leaders of the United Mine Workers reach New York to hold a conference with their President, John Mitchell.

February 13.—F. Augustus Heinze, defeated in the courts, sells his Montana copper mines to the trust, ending the great Montana copper war.

John Mitchell and the wage-scale committee of the Mine Workers are working on the schedule of demands which will be presented to the mine operators.

The committee to which Thomas W. Lawson has turned over all his proxies of the Mutual and New York Life Insurance Companies agree to employ counsel to aid them in their efforts to oust the new managements of the two companies. Five members of Lawson’s committee are governors of various states.

Attorney General Hadley, of Missouri, who is conducting the State’s case against the Standard Oil Co., goes to Iowa and gets testimony from former officers of the Standard’s subsidiary companies. He states that he has made out his case against the Standard.

George W. Beavers, of New York, former Chief of the Division of Salaries and Allowances of the Post Office Department, pleads guilty to a charge of conspiracy, and is sentenced to two years imprisonment. Machen and others have already been convicted and are serving sentences.

The Bituminous Coal Trade League, of Pennsylvania, sends Congressman Gillespie, of Texas, a petition stating that Senators Elkins, of West Virginia, and Gorman, of Maryland have caused violations of the anti-trust laws. Former Senator H. G. Davis, of West Virginia, father-in-law to Senator Elkins, cousin to Gorman, and Vice Presidential nominee of the Democratic party in 1904, is also accused of being a party to these violations.

February 14.—The “housecleaning” committee of the New York Life Insurance Co. submits a report to the trustees of the company, showing that $148,702.50 has been illegally contributed to campaign funds in the last three elections. The committee recommends that suits for the recovery of the same be brought against John A. McCall and all other officers who had anything to do with making the contributions.

John G. Brady, Governor of Alaska, resigns.

The House of Representatives passes the appropriation bill for fortifications. The total amount appropriated is $4,383,993, $600,000 of this to be spent in fortifying the Philippines and Hawaii.

The Senate passes the ship subsidy bill. If the bill becomes a law it is estimated that $26,000,000, will be taken from the United States Treasury and paid out in bounties to vessel owners during the next ten years.

The resolution of Representative Sulzer, of New York, calling for an inquiry regarding the sale of the old New York Custom House to the National City Bank, of New York, passes the House by a unanimous vote.

February 15.—John Mitchell presents the demands of the miners to the mine owners. Committees are appointed to represent both sides.

Congressman Longworth procures a license to marry Miss Alice Roosevelt. The President attends Mr. Longworth’s bachelor dinner.

James W. Alexander is again stricken with paralysis and is in a sanitarium at Deerfield, Mass.

Officers of the beef packers again testify that Commissioner Garfield promised that no evidence they gave would be used against them. The testimony brought out these facts: First, Commissioner Garfield apparently took the word of Armour & Co.’s general superintendent that the Armour Car Company, which has been declared the tap root of the Beef Trust, was not owned by Armour & Co., and had nothing to do with the fresh meat industry, and made no further attempt to get information concerning the private car line monopoly. Second, Swift & Co. gave information reluctantly to the Commissioner of Corporations, and only after consulting counsel. At this conference attorneys for the other packers in the trust were present. The secretary of Swift & Co. contributed the information that he sought this advice of counsel because he “wanted it.”

February 16.—James W. Alexander, former President of the Equitable Life Insurance Co., is operated on. The physicians refuse to tell the nature of the operation, but give hopes of Alexander’s recovery.

Reports from Memphis, Tenn., state that more than fifty per cent of the Southern peach crop has been killed and the other fifty per cent is commercially worthless.

State Senator James Minton, of New Jersey, invites Thomas W. Lawson, Ida Tarbell and Attorney-General Hadley, of Missouri, to attend a public hearing on his resolution calling on Attorney-General McCarter, of New Jersey, to bring proceedings to annul the charter of the Standard Oil Company.

Stuyvesant Fish, a member of the “housecleaning” committee of the Mutual Life Insurance Co., resigns because Standard Oil interests obstruct a thorough investigation of the company’s affairs.

On account of the illness of Senator Tillman, the Senate postpones the vote on the railroad rate bill until February 23.

February 17.—Miss Alice Roosevelt, the daughter of the President, is married, in the White House, to Congressman Nicholas Longworth, of Cincinnati.

Justice Rufus W. Peckham, of the United States Supreme Court, advises the “housecleaning” committee of the Mutual Life Insurance Co. to bring action against Richard A. McCurdy, ex-president of the company, before he leaves this country.

Fire destroys $1,000,000 worth of wheat at Duluth, Minnesota.

President Peabody, of the Mutual Life Insurance Co., refuses to give his consent for an investigation of the company’s board of trustees by the “housecleaning” committee.

February 18.—John A. McCall, late president of the New York Life Insurance Co., dies at Lakewood, N. J. His death was hastened by the recent insurance scandals. The New York _World_ sums up the result of the insurance investigation as follows:

John A. McCall, dead, fortune shattered; J. W. Alexander, mental and physical wreck; James H. Hyde, self-expatriated in Paris; Robert A. McCurdy, preparing to follow Hyde; Robert H. McCurdy, preparing to follow his father; Judge Andy Hamilton, on the Riviera; Thomas D. Jordan, in seclusion; Andrew Fields, in seclusion; Louis Thebaud, going to Paris; W. H. McIntyre, in seclusion; George W. Perkins, reputation smirched; Chauncey M. Depew, damaged in reputation.

John B. Stetson, the millionaire hat manufacturer of Philadelphia, dies at Gillen, Florida.

John Mitchell and his associates, representing the anthracite miners, complete their demands to the coal operators. They will be presented in a day or two.

President Roosevelt prepares to have the frauds in connection with the Indian affairs in Indian Territory investigated.

February 19.—Eight suits are begun by the Mutual Life Insurance Co. against the McCurdys, Louis A. Thebaud, son-in-law of Richard A. McCurdy, and C. H. Raymond & Co., for restitution of moneys of the company illegally spent. This includes campaign contributions, illegal salaries, rebates and illegal commissions.

President Roosevelt recommends to Congress a lock canal of eighty-five foot level across the Isthmus of Panama. The lock canal was also favored by the Canal Commission and Secretary Taft. A majority of the Board of Consulting Engineers favored a sea level canal.

The United States Supreme Court decides that it is illegal for railroads to sell commodities which they transport as common carriers. The decision of the Court bears directly on railroads that own or operate coal mines.

Congressman E. Spencer Blackburn, of North Carolina, is accused of accepting a fee for using his influence to obtain action by an executive department. The offense is similar to the one committed by Senator Burton.

The trial of the beef packers continues at Chicago. E. Dana Durand, chief assistant to Commissioner Garfield, testifies that the Department of Commerce turned over certain data obtained from the packers to the Department of Justice.

Sixteen miners are killed by an explosion at Maitland, Colorado.

A sub-committee of the House Committee on Interstate and Foreign Commerce takes action on the Tillman, Gillespie and Campbell resolution to authorize the Interstate Commerce Committee to investigate the connection between railroads and coal and oil companies. All three of the resolutions will be embodied in one and sent back to the House for passage.

The Interstate Commerce Commission orders an investigation of the rates and practices of the railroad carriers engaged in transporting oil from Kansas and Indian Territory to interstate destinations.

Representative Campbell introduces a joint resolution to authorize the Interstate Commerce Commission to immediately investigate and report to Congress from time to time whether any interstate commerce carriers own or control any oil or other products which they ship as common carriers; whether the officers of such carriers charged with the distribution of cars and furnishing facilities for transportation are directly or indirectly owners of companies interested in oil products; whether a combination in restraint of trade exists between the carriers and the shippers of oil products, and whether the officers of oil companies are officers, agents or members of the directory of any common carrier.

Congressman Mann, of Illinois, introduces a bill to make insurance business interstate commerce.

Senator Tillman introduces a bill in the Senate to prohibit corporations from making money contributions in connection with political elections.

February 20.—The McCurdys prepare to fight the suits brought against them by the Mutual Life Insurance Co. for the restitution of money illegally taken from the company. The McCurdys and Raymond & Co. also charge that other officials and trustees of the Mutual received rebates on their own policies.

Opinions of prominent lawyers show that the Supreme Court’s decision against railroads owning commodities which they haul as common carriers will prevent railroads from operating if not from owning coal mines. Most of the big coal mines in the country are either owned, controlled or operated by the railroads.

Commissioner of Corporations James R. Garfield testifies in the case of the Government against the beef packers now being tried at Chicago. He denies that he promised the packers immunity from prosecution or that all information given him would be regarded as confidential.

Pittsburg, Pa., follows the example of other cities and throws off the yoke of boss rule. George W. Guthrie, a Democrat supported by the independent factions, defeats Alexander M. Jenkinson, the Republican candidate of the Frick-Mellon-Cassatt combination.

The House Committee on Interstate and Foreign Commerce recommends a favorable report to the House on the bill for an investigation by the Interstate Commerce Commission of the relations between railroads and coal and oil companies. This is the resolution introduced in the Senate by Senator Tillman, with a few modifications of the Gillespie and Campbell resolutions substituted.

February 21.—President Roosevelt announces that he will not try to influence the Senate Committee’s action on the Hepburn railroad rate bill, but intimates that he will veto any bill that does not meet his approval.

John Mitchell declares there will be a coal strike in the bituminous coal fields.

The Senate passes a pure food bill by a vote of 63 to 4. The bill makes it a crime to ship from one state to another any article of food, drugs, medicines or liquors which is adulterated or misbranded, or which contains any poisonous or deleterious substances.

General Grosvenor, of Ohio, is defeated for re-nomination to Congress. Gen. Grosvenor has been in Congress twenty years.

The House of Representatives takes up the army appropriation bill. Chairman Hull, of Iowa, urges the need of preparing for an emergency, as there is fear of trouble with China.

John A. McCall is buried in New York City. McCall left no money and the suits for recovery of money illegally paid Hamilton will be dropped.

Because of his stand for an honest investigation of the Mutual Life Insurance Co., the trustees who fear exposure plan to oust Stuyvesant Fish from the presidency of the Illinois Central Railroad.

February 22.—John Mitchell, president of the United Mine Workers, has another conference with several mine operators on a new scale of wages to be paid after April 1.

Mrs. Minor Morris, who was forcibly ejected from the White House some time ago, issues a statement in which she denounces the President for her treatment.

Senator Knox, of Pennsylvania, introduces a railroad rate regulation bill giving the courts the right to review any order or action of the Interstate Commerce Commission. It is the intention of the railroad senators to add the court review clause of the Knox bill to the Hepburn bill.

In the report to the New York Legislature the Armstrong, or Insurance Investigating, Committee, makes the following recommendations.

Not only should stock corporations be permitted to give policy-holders the right to vote, but an opportunity should be afforded for conversion into purely mutual companies.

The law as to investments in securities should be amended so as to provide: That no investment in the stock of any corporation shall be permitted, except in public stocks of municipal corporations.

The statute should forbid all syndical participations, transactions for purchase and sale on joint account, and the making of any agreement providing that the company shall withhold from sale for any time or subject to the discretion of others any securities which it may own or acquire.

No officer or director should be pecuniarily interested in any purchase, sale or loan made by the corporation.

Contributions by insurance corporations for political purposes should be strictly forbidden.... Any officer, director or agent, making, authorizing or consenting to any such contribution should be guilty of a misdemeanor.

The company should be compelled to set forth in its annual statement to the Superintendent of Insurance all sums so disbursed (for lobbying), giving the names of the payees, the amounts paid and the specific purpose of the payment.

Limit the amount of new business; prohibit bonuses, prizes and awards; limit renewal commissions to four years and to, say, 10 per cent. of the first year’s premiums; prohibit loans and advances to agents; limit total expenses to the total “loadings” upon the premiums.

The companies should be required annually to file with the Superintendent of Insurance a gain and loss exhibit for the year in a prescribed form, showing the amount available for distribution, the amount of dividends declared and the method of calculation by which they have been determined.

Section 56 should be repealed and the matter should be left subject to the general provisions of the Code of Civil Procedure relating to actions against corporations.

In addition to requiring approval of the Superintendent of other than certain standard forms, provision should be made for the standardization of the new types of policies.... The issue of other policies than those thus provided for should be prohibited.

The committee recommends publicity of names and addresses of policy-holders and the giving them the right to verify statements and prosecute for falsity. The committee recommends requiring statements in elaborate detail covering all transactions, and favors giving the Superintendent of Insurance power to examine under oath.

February 23.—Stuyvesant Fish resigns as a trustee from the Mutual Life Insurance Co. and will head a committee of policy-holders to fight the present management.

Insurance men plan to fight the new laws recommended by the Armstrong Committee before the New York Legislature, and, if unsuccessful there, to carry the matter before the courts.

The Hepburn railroad rate regulation bill is reported by the Senate committee without any amendments. Through trickery of Senator Aldrich, the bill will be presented to the Senate by Senator Tillman as a Democratic measure.

The House of Representatives passes a resolution ordering an investigation of the relations between coal and oil carrying railroads and coal and oil companies.

Commissioner Garfield again testifies in the trial of the beef packers at Chicago. He admits that the Department of Commerce and Labor furnished the Department of Justice with evidence.

Johann Hoch, the noted bigamist, is hanged at Chicago.

February 24.—The House Committee on Immigration unanimously agrees on a bill to amend the immigration laws. The new bill will make naturalization uniform throughout the United States, and confines the issuance of citizenship papers to United States Circuit and District Courts, and to the highest court of original jurisdiction of each state. The bill further provides that an alien must be able to read, write and speak English before he can become a citizen.

Since Senator Aldrich’s trick of having Senator Tillman, of South Carolina, report the Hepburn railroad rate bill, which makes it a Democratic measure, Washington despatches state that the long standing feud between the President and Senator Tillman will end.

February 25.—C. Augustus Seton, who is under arrest in New York City, confesses to forging $4,300,000 worth of Norfolk and Western Railroad stock certificates.

Coal mine operators give out statements saying there will be a strike, as they will refuse to grant the miners’ requests. T. L. Lewis, vice-president of the United Mine Workers, declares there will be no strike and that the operators will grant the requests of the miners.

Harry Orchard, who assassinated the late Governor Steunenberg, of Idaho, confesses to taking part in 26 murders.

Ex-Speaker David B. Henderson dies at Dubuque, Iowa. Mr. Henderson served two terms as speaker, succeeding the late Thomas B. Reed. He was elected in 1883 and served continuously until the end of the Fifty-seventh Congress.

February 26.—The Missouri Supreme Court hands down a decision which it is believed will influence the Supreme Court of New York to order H. H. Rogers to answer the questions asked him in the Standard Oil investigation. At the time Attorney-General Hadley, of Missouri, was taking depositions in the case in New York City, Rogers was put on the witness stand. He refused to answer certain questions and expressed his contempt for Missouri Courts. Mr. Hadley went before Justice Gildersleeve, of the New York Supreme Court, and asked for an order forcing Rogers to answer or be held in contempt of court. The order was refused on the grounds that the questions involved had never been passed upon by the Missouri courts. Now comes the Missouri court with a strong decision which covers every point at issue.

President Roosevelt intervenes to prevent the threatened coal strike.

In accordance with a decision handed down by the Supreme Court of Texas, the Pacific, the United States, the American and Wells-Fargo Express Companies, and fifty of the principal railroads of the state, will have to pay $5,225,000 in penalties for violating the anti-trust law. The court holds that when a railroad company enters into an agreement with an express company which excludes other companies from doing a business on its lines, it restrains trade and stifles competition, which is prohibited by the anti-trust law.

The supposed shrewd trick of Senator Aldrich in having Senator Tillman report the Hepburn railroad rate bill now has the Republican Senators embarrassed. The Senate seems to be in favor of the bill and the Republicans dare not let it pass as a Democratic measure. Realizing that something must be done, they appeal to Senator Spooner to draft a rate bill that will suit all factions of the Republicans and be put through the Senate as a party measure.

William Nelson Cromwell, the New York lawyer who unloaded the Panama Canal property on the United States, and who has since acted as counsel to the President and Secretary Taft on Panama matters, appears before the Senate committee. He denies that he was the cause of ex-Chief Engineer Wallace’s resigning. When questioned as to his dealings with Secretary Taft he refused to answer.

February 27.—Steel Trust officials and George Gould order the bituminous coal mine operators to make peace with the miners and prevent a strike.

The Insurance Commissioners of Kentucky, Minnesota, Wisconsin, Tennessee and Nebraska ask the New York Insurance Department to co-operate with them in making an investigation of the Mutual Life Insurance Co.

William Nelson Cromwell again appears before the Senate Committee on Interoceanic Canals. He continues to refuse to answer questions as to his dealings with Secretary Taft and the amount of his fees. Senator Morgan, of Alabama, produced a copy of Cromwell’s contract with the French company, or Panama Canal Co., which gave Cromwell the power to organize companies, issue stock, bonds, etc., and finance any and all sorts of organizations to further the idea of selling the canal to the United States.

February 28.—It is reported from Pittsburg that the United States Steel Corporation, through President W. Ellis Corey, has demanded of the Pittsburg Coal Company, with which it has a twenty-five-year contract for coal, the minimum for each year being set at 8,000,000 tons, that there be no strike in the Pittsburg district. At the same time the Gould interests, so heavy in the West and Southwest, have ordered peace. As a result there will be no strike of the bituminous miners, who will receive a satisfactory advance.

It is reported from Springfield, Ohio, that local militia, called out to check a race riot caused by the shooting of M. M. Davis, a brakeman, by a negro, has been unable to stop the riot. An appeal has been made to the Governor to send more troops. Early this morning houses were burning in the negro quarter, and the authorities are powerless.

Yesterday the President signed the Urgent Deficiency Bill, which contains an appropriation of $118,000 for New York State to pay its claim for money to equip Government troops during the War of 1812.

Five hundred delegates of the Independence League, guests of William R. Hearst, appeared yesterday at Albany to plead before the Governor and the Legislature for the passage of measures in which the league is interested.