Organization Service Bureau, has of the Panama Canal Act of Aug. 24, been undertaken by the Chamber of 1912, which provides: Commerce of the United States for the purpose of facilitating the distribution of information relating to the most effective methods of organizing and operating commercial and trade organizations. It is proposed that the Bureau shall be assisted by a Special Advisory Committee consisting of commercial secretaries and business men. A bulletin service will be conducted for the benefit of commercial secretaries. It is also proposed to have the Bureau study the various forms of organization of commercial bodies throughout the United States, | the several methods of recruiting and holding members, the powers and duties of committees, and the method of financing and maintaining commercial organizations. (See also VII, Municipal Organizations.) Plans to Meet European Competition after the War.-Steps were taken by the National Foreign Trade Council at its second annual meeting to prepare this nation to meet the European competition which is confidently expected to become extremely active after the war. The purpose of the council, as explained in the last issue (p. 340), is to coördinate the nation's foreign-trade activities in an aggressive and systematic extension of American over-sea commerce. In accord with this object, the entire second session was given over to a discussion of plans which would enable our commerce and industry to meet the new conditions which are believed will confront us after the war. The principal feature of the meeting was the report of the committee on the tariff, which concludes that our tariff system should be flexible with a view to enabling the Government to negotiate trade agreements which will secure tariff advantages to American producers. Railway Steamship Lines on the Great Lakes.-In May the Interstate Commerce Commission ruled that the railroads operating steamship lines on the Great Lakes (viz., the Erie, Pennsylvania, Lehigh Valley, New York Central, and Delaware, Lackawanna & Western) must cease their connection with such lines. This ruling is the outgrowth of that section 1914, it shall be unlawful for any rail- fic, etc. passengers aforementioned lines the Commission In applying this section to the concluded: None of the several existing specified services by water is being operated in the interest of the public or is of advantage to the convenience or commerce of the people within the meaning of the Act, and that an extension [of time] of therein will prevent, exclude and reduce the respective interests of the petitioners competition on the Great Lakes. Leading Anti-trust Cases. — The year witnessed the rendering of six important so-called anti-trust decisions, in addition to the Chicago Board of Trade case, all of which will have a far-reaching effect upon the business community. While most decisions of this character in the past have been decided in favor of the Government, this is true of only one of the cases rendered in 1915. Briefly summarized, these decisions are the following: (1) The unanimous decision by the U. S. District Court at New York early in February dismissing the Government's anti-trust suit for the dissolution of (1) the lines compris ing the Brazilian Steamship Conference and (2) those composing the Far-Eastern Steamship Conference. The reasoning and conclusions of the court are similar to those followed in the North Atlantic Conference case, decided about four months previously (4. Y. B., 1914, p. 341). In both cases the Court found that the war had practically dissolved the combination under consideration, thus rendering the contentions of the Gov added, has been appealed by the Government to the U. S. Supreme Court. ernment largely academic; that the charge of excessive rates had not been shown; and that "in the mere initiation and carrying-out of the enter (4) The decision by the U. S. prise outlined we see no unreasonable District Court in New York on July or abnormal restraint of trade," like-21, in the case of the Great Atlantic wise "whatever restraints may have & Pacific Tea Co. v. Cream of Wheat resulted from the defendant's com- Co. Importance attaches to the case bination and conduct are merely the in that it is the first to apply Section usual normal and reasonable re- 2 of the Clayton Act, which makes it straints against which it has been unlawful for any person held that the Sherman Act is not di- engaged in commerce to either directly rected." In October the Government or indirectly discriminate in price beappealed the North Atlantic Passen- tween different purchasers of commodiger Conference case to the U. S. Su- ties... where the effect of such discrimination may be to substantially lespreme Court. sen competition or tend to create a mo(2) The decision of the District of nopoly in any line of commerce; proColumbia Supreme Court at Washing- vided that nothing contained [in the ton, holding that the Underwriters price between purchasers of commodities Act] shall prevent discrimination in Association of the District of Colum-on account of differences in the grade, bia is not operating in violation of either the Sherman Anti-trust Act or the Clayton Act, on the ground that the issuing of a policy of insurance is not a transaction of commerce within the meaning of the clause of the Constitution, which provides that Congress shall have the power to regulate commerce with foreign nations and among the several states. As the court states, there is nothing in the Sherman Act or the supplements thereto, approved Oct. 15, 1914, which indicates that the words "trade or commerce" were used as applying to transactions other than those which Congress has power to regulate under the provisions of the Constitution above referred to; consequently those acts cannot be held to apply to the business of fire insurance in the District of Columbia. quality or quantity of the commodity sold, or that makes only due allowance for difference in the cost of selling or transportation or discrimination in price in the same or different communities made in good faith to meet competition; and provided further that nothing contained [in the Act] shall prevent persons engaged in selling goods, wares or their own customers in bona fide transacmerchandise in commerce in selecting tions and not in restraint of trade. The Great Atlantic & Pacific Tea Co., the plaintiff, claimed that it had for years purchased heavily from the defendant and had had satisfactory business relations with it. Its business, comprising more than 1,000 stores, was so organized as to enable it to buy as wholesaler and sell like cision of the U. S. Supreme Court in a large retailer. Owing to the dethe Dick, R. H. Macy & Co., and other (3) The unanimous decision by the cases, relating to cut prices, the U. S. District Court at Trenton, N. J., Cream of Wheat Co. held itself out in early in June, holding that the U. S. printed circulars as selling only to Steel Corporation is not operating wholesalers and as refusing to sell in violation of the Sherman Anti- to consumers, retailers, or chain or trust Act. The ruling, although com- department stores. Notwithstanding ing from a lower court, has been re- the published sales plan, the defendgarded as of great importance, in that ant, although knowing that the plainthe Court has given its approval of tiff sold directly to consumers, sold the business methods of the largest cream of wheat to the plaintiff at corporation in the country. The case wholesale rates upon condition that has therefore been frequently referred in making sales over the counter no to as showing the tendency on the smaller price should be charged than part of the courts to protect large the small retailers had to ask in business interests if they do not vio- order to get a fair profit, viz., not late the anti-trust law when inter-less than 14 cents per package. Early preted in the light of the "rule of rea- in 1915 the plaintiff refused any son," as laid down by the U. S. Su- longer to observe this agreement or preme Court. The case, it may be request and openly sold cream of wheat at its stores for 12 cents per | owned wholly or partly by itself, unpackage. In his opinion, Judge Hough calls attention to the fact that in the Dick, R. H. Macy & Co., and other cases, relating to cut prices, the decision turned upon questions of copyright, patents and considerations not involved in this case. Here the article was described as "not one of necessity, is not patented, any one can make it who can get middlings, and the amount of the material annually required by the business of defendants is less than one per cent. of the amount produced by the millers of the United States." The Court therefore held in part (see also IX, Law and Jurisprudence): Section 2 plainly identifies the lessening of competition with restraint of trade (cf. the body of the section with the last exception). But price discrimination is only forbidden when it "sub less said article is necessary or intended for its own use as a carrier. To meet the situation the railroad company in this case organized a coal company with a title similar to its own to take over its hard-coal holdings. Facts showed, however, that this new company was owned by the individual stockholders of the railroad. Justice Lamar holds, in his opinion, that it is the purpose of the "commodities clause" to prohibit railroads from "occupying the dual and inconsistent positions of public carrier and private shipper." The opinion questions the good faith of the contract arrangement between the old and new companies, and practically regards the contract with the new company as "amounting to a sales agency." (See also XX, Rail roads.) (6) The decision of the U. S. Disstantially" lessens competition. Con-trict Court at Philadelphia in the struing the whole section together, the last exception reads in effect that a "vendor may select his own bona fide customers providing the effect of such selection is not to substantially and unreasonably restrain trade. How it can be called substantial and unreasonable restraint of trade to refuse to deal with a man who avowedly is to use his dealing to injure the vendor; when said vendor makes and sells only such an advertisement-begotten article as Cream of Wheat, whose fancy name needs the nursing of carefully handled sales to maintain an output of trifling moment in the food market, is beyond my comprehension. (5) The decision of the U. S. Supreme Court, in June, in the suit of the Government against the Delaware, Lackawanna & Western Railroad Co. The case, decided against the railroad company, involved the application of the "commodities clause" of the Hepburn Act, which prohibits any railroad from carrying across a state line any article or commodity suit brought by the Government against the Reading Company and its allied companies, the Philadelphia & Reading Railway and the Reading Coal and Iron Co., holding that the companies have not violated either the Sherman Anti-trust Act or the "commodities clause" of the Interstate Commerce Act. The court held the Philadelphia & Reading Railway and the Reading Coal & Iron Co. to be distinct and separate companies, whereas in the Lackawanna case the decision turned upon the fact that the Supreme Court ruled that the Lackawanna Railroad, the original owner of the coal, retained an interest therein, and as a consequence was prohibited from also transporting the coal. Contrasted with this situation the railway company in the Reading case was regarded as never having owned coal, nor as having any interest therein at present. XIV. PUBLIC FINANCE, BANKING, AND INSURANCE PUBLIC FINANCE FEDERAL FINANCE Appropriations of Congress.-The grand total of regular, miscellaneous, and permanent appropriations for the fiscal year 1915-1916 amounts to $1,115,121,408. The total estimates submitted to Congress by the Secretary of the Treasury on Dec. 7, 1914, amounted to $1,090,755,134, or $3,392,962 less than the appropriations for 1914-1915. Supplemental estimates submitted during the session, however, brought the total up to $1,135,187,984. It appears, moreover, that even this figure should have been increased by an addition of $27,774,450 in the Post Office estimates. The Postmaster-General's estimate of $297,355,164, or $9,597,953 less than the appropriation for the year 1914-1915, was based on the assumption that Congress would enact legislation which he recommended with a view to effecting large economies, particularly in the rural free delivery service. These recommendations Congress refused to accept, with the result that the Post Office Appropriation bill failed of enactment, as did also the Indian Appropriation bill. Had the reports of the conference committees on these two bills been accepted, the total appropriations for 1915-1916 would have amounted to $1,127,711,776. To meet the emergency caused by the failure of these two supply bills, a joint resolution was passed during the closing hours of final session of the Sixtythird Congress, continuing in force the appropriations of 1914-1915. The appropriation in this way of $313,000,000 instead of $325,000,000 for the postal service will necessitate the passage of a deficiency act in the Sixty-fourth Congress. (See also V, The National Government.) 351 219,471,636 138,600,869 375,200,980 134,631,980 1 Pay warrants drawn on account of postal deficiency for the year ending June 30 amount to $6,636,593, as reported in the Treasury statement for The actual audited deficit of June 30. the Postal Service was $11,333,309. Internal Revenue.-The Commissioner of Internal Revenue reports the largest receipts in the history of the Bureau, the increase over 1914 being $35,660,982. This sum, however, includes an increase of $8,809,420 in the receipts from the income tax (including the corporation excise tax), $52,069,126 of emergency revenue collected under the War Revenue Act of Oct. 22, 1914, and $248,406 collected from the special tax on manufacturers, importers, or distributors of opium, under the anti-narcotic law of Dec. 17, 1914 (see I, American History). War Revenue Tax.-The revenue collected under the War Revenue Act (A. Y. B., 1914, p. 346) fell short less than two million of the $54,000,000, which it was estimated it would yield for 1914-1915. The Act was to expire on Dec. 31, 1915, but on Dec. 17 the President approved a joint resolution extending it for another year. The following table shows in detail the collections for the year ending June 30, 1915: Wines, champagne, liqueurs, cordials, etc.. Grape brandy used in fortification of sweet wines. Fermented liquors (additional 50 cents per barrel). Special taxes relating to manufacture and sale of tobacco, cigars, and cigarettes.. Special taxes, including bankers, brokers, etc.. $2,307,301.97 Public Debt.-The following is a 2s, Panama Canal Loan, 1906.. 211⁄2s, Postal Savings Bonds, 1915 United States notes (green- National bank notes (redemp tion account) Old demand notes. .$646,250,150 63,945,460 118,489,900 54,631,980 30,000,000 50,000,000 138,383.56 5,508,060 933,540 18,713,679.88 346,681,016 2,486,616.36 19,390,345 4,967,179.18 53,153 Schedule A (documentary stamps, etc.).. 901,620 Schedule B (perfumery, cosmetics, etc.)... Total... .$52,069,126.29 Fractional currency. Refunding certificates. Certificates and notes issued on Gold certificates.. ceased. Total debt bearing no interest.. 1,217,882,769 493,459,000 2,254,000 969,759,090 1,507,260 372,974,754 bearing debt, June 30, 1915.. 1,344,241,104 Certificates and Treasury Notes. 1,713,595,769 Income Tax Receipts.-Collections from the corporation income tax show a decrease of $3,983,211, while from the individual income tax an increase of $12,792,631 occurred. In making the comparison, however, it should be remembered that the revenue from individual income tax collected in the fiscal year 1913-1914 was levied on incomes for ten months only, i. e., March 1 to Dec. 31, 1914, while collections in 1914-1915 were from the incomes of the calendar year, 1914. Still, after making allowance for the longer period, the individual income tax shows a considerably increased yield; it is, in fact, the only important source of revenue which has not from all sources during the fiscal been more or less seriously dimin-year 1915 were estimated in Septemished by the European War. Gross debt.. Net balance in General Fund. The Treasury Deficit. ber, 1914, as follows: 3,057,836,873 1,713,595,769 152,977,037 82,025.716 19,390,346 1,967,988,868 1,089,848,006 Receipts |