VOL.XLV. 2ffO. 13,798. PORTLAOT), OREGON, TUESDAY, FEBRUARY 28, 1905. PRICE FIVE CENTS. MEET TO D EFEAT Yamhill Will Invoke the Referendum ON BIG APPROPRIATION Large Sums Saddled on State Unfairly, It Is Said, PETITION TO BE PREPARED Enthusiastic Gathering of Citizens Organizes at McMinnville and Appoints Committee to Carry Out the Plans Proposed. LESSON FOR LEGISLATURE. " The argument generally advanced by thobe agitating the referendum on the (1,000.000 appropriation bUI, is not that the state would save any considerable sum of money thereby, but that it -would teach the Legislature a lesson and pre vent the normal school appropriations from being saddled upon the necccsary appropriations for state institutions In order to secure their passage. If the referendum should be demanded It "will bo because the normal schools -were not provided .for in a separate bill. MMIXNVILL. Or.. Feb. 27. (Special.) Ever since the adjournment of. the Legislature there has been talk In Tamhlll County of circulating a peti tion asking1 for the referendum on House bill No. 370, which carries an appropriation of over $1,000,000 for state penal, reformatory and charitable Institutions at Salem, the State Uni versity, Agricultural College and the Normal Schools. Interest in the movement has con tinued to grow and tonight culminat ed in a citizens' meeting, at which an organization was perfected for the ex press purpose of urging the defeat of the appropriation bill by the people. The meeting was held in the Court-house, and on motion M. B. Hendrlck was chosen permanent chairman and H. Im McCann, secretary. An executive committee consisting of representatives from each of the political parties was appointed and in structed to have petition forms print ed and to urge voters Jn all legitimate ways to work for the defeat of the bill. This committee consists of: M. B. Hendrlck. chairman; H. L. Mc Cann, J. C. Cooper, William Vinton, David Stout, W. C. Hagerty and B. Asbury. Discussion of. the Subject. Following the appointment of the committee, the meeting was opened for discussion of the step -under consid eration. W. C. Haggerty in response to a, request from and in the behalf of Dr. J. C. Calbreath, of the state insane asylum, stated that If the appropria tion bill should be killed, It would be a hardship upon and a positive detri ment to that institution. G. O. Holman then defined the finan cial situation of the state If the 're quisite number of petitioners should be secured. He also stated that, al tnough such condition might and prob ably would cause temporary inconve nience, Jt would be an effectual way of eliminating a system of biennial ap propriations which, are considered by many to be unjust. 7f W. W. Mickle, a farmer from the BellevUe section, also made a pointed speech In behalf of the petition. W. T. Vinton stated that he considered the matter of making appropriations un just and would support a petition for referendum on House bill 370, and xould do all he could to further the movement. Petition to Be Drawn Up. Before the meeting closed, It was agreed that the executive committee should meet at the call of the chalr jnan. At the comtng meeting a peti tion will be drawn up and an outline of campaign made. There will be no expense of circulating the petitions,' for volunteers are plentiful. It is the opinion of the committee that the re quired number of petitioners can be secured by simply reading the petition in stores and public places. As far as known the're Is no express opposition to the movement and the opinion of the Yamhill County taxpay ers is summed up In the reply of ex Dlstrict Attorney James McCain to a telephone message from B. S. Mulkey, asking who was back of the movement, to which McCain replied: "We are all In it." NORMALS CHIEF SUFFERERS. Popular Vote Could Cut Off All Money for These Institutions. SALEM, Or.. Feb. 27. (Special.) Agitation in favor of demanding the referendum upon the $1,000,000 appro priation "bill, passed by the last Leg islature has caused considerable dis cussion in Salem in the last few days and great Interest is being taken in the progress of the movement. Salem people are generally opposed to the referendum, for if the appropriation bill should be hold up no warrants could be drawn for services or .supplies at the state institutions and It would probably be necessary for employes and furnishers of supplies to discount their certificates showing: the amount due them. , The amount of the appropriation "bill was about $1,049,000, of which sum $300,000 was for the University. Agri cultural College, Normal Schools, new buildings, etc., not authorized by ex isting laws. It the appropriation bill should be held up by referendum petitions, the asylum, penitentiary, reform school, blind school, mute? school. Soldiers' Home, University and Agricultural College would continue to operate as they have in the past, except that certificates of audit would be issued in payment of expenses In stead of warrants. These certificates would not draw interest, unless the next Legislature appropriated money for Interest, but the .amount of the certificate would be paid. The University and Agricultural Col leges have standing- appropriations and all that would ho cut off from these In stitutions by the referendum on the appropriation bill would be the addi tional sums allowed for new buildings and Increased maintenance. With the appropriation bill held, up, the Normal Schools would receive' neither certifi cates of audit nor warrants, for they exist by no authority of law. Stated in a general way, the effect of demanding the referendum upon the appropriation bill would be to pre vent the incurring of expenses of about $300,030 in the next 'two years, while necessary authorized expenses to the amount of $750,000 would be evidenced by certificates of audit. Should the next Legislature allow 6 per cent in terest on these certificates, the accu mulated Interest would amount to about $45,000. Superintendent Calbreath, of the in sane asylum, says that holding up the appropriation bill would probably also have the effect of raising the price of supplies 5 to 10 per cent, for bidders would take discount into consideration In making prices. APPLICANTS ARE POURING IN Office of State Engineer Carries a Very Gcod Salary. SALEM. Or., Feb. 27. (Special.) Ap plications for appointment to the office of State Engineer are pouring into the Governor's office, notwithstanding the real appointing power is not vested in the Governor and the law authorizing the appointment will not be made for SO days yet. The salary of $200 a month and expenses is what makes the office attractive to men qualified for the po sition. The Governor is suggesting to applicants that it might be well for them to apply to the director of the United States Geological Survey. "A State Engineer, technically quali fied and experienced as an hydraulic engineer, shall be appointed by the Governor upon the recommendation of the director of the Unuca States Geo logical Survey and confirmed by the Senate," Is the provision of the irriga tion law. "He shall hold office for four years unless sooner removed by the Governor for cause and until his suc cessor shall have been appointed and qualified." The duties of the Slate Engineer are to have general supervision of all the measurements and records of appropria tion of waters of the state and of all surveys. and engineering work, in wWoh the state may be interested, and for which funds are proIded. and to per form all work In connection therewith. He must .not engage in private prac tice. The salary is fixed at $2400 a year and $5000 a year is appropriated for the payment of this salary, the expenses of the office and the compensation of as sistants. There is also appropriated by the law $3000 a year for hydrographic work and $5000 a year for topographic work,such appropriations, however, be ing contingent upon the United States Government expending a similar sum in hydrographic and topographic work in this state. This makes a total ap propriation of $26,000 biennially for ir rigation and geological work In this state. The chief purpose In "the creation of the office was to aid the Government In proposed reclamation work in Oregon, but the Engineer will serve the state in examining work done under the pro visions of the Carey act and in the con struction of the Portage- Road,' if any services be necessary In that connec tion. The appointment cannot be made until May 18, and will then be made upon the recommendation of Charles D. Walcott, director of the United States Geological Survey, Washington, D. C. PUSH ANTI-STAND AED EIGHT. Kansas Will Sell Refinery Bonds House passes Gas Bill. TOPEKA, Kan., Feb. 27. It was decided today that the bonds for the state oil re finery will be Issued within ten days. As soon as they are sold, work on the refin ery will begin at once. Miss Ida M. Tarbell, the magazine wri ter, will be here this week. She will thoroughly Investigate the Kansas' oil fields and the events leading up to the fight on the Standard Oil Company, and from the material thus gained write a series of articles for an Eastern publica tion. The House today passed the Holden antl-pumplng-of-gas bllL It will now be come a law. The bill prohibits the use of pumps on gas wells, but permits com pressors on pipe lines. The antl-dlscrlmlnatlon bill will prob-"" ably be considered by the House tomor row. ANTI-TRUST LAW SUSTAINED Cotton Oil Trust Finally Driven Out of Texas. WASHINGTON, Feb. 27. The Supreme Court of the United States has decided the case of the National Cotton OH Company vs. the State of Texas, Involving the Texas anti-trust law. The state court found the company guilty under that law and held that it had forfeited its right to do business? in the state. The case was appealed to the Supreme Court on consti tutional grounds. That court, however, in its opinion today, which was delivered by Justice McKenna, field that the claim was untenable and sustained the verdict of the court below. Anti-Salt Trust Measure Killed. TOPEKA, Feb. .27. A House, concurrent resolution calling for an investigation of the salt trust was defeated by a vote of 57 to IS. It was necessary for the resolu tion to receive a two-thirds vote, or 63 votes. Appointed by the President. WASHINGTON, Feb. 27. The President today sent the following nominations to the Senate: Consul-General at Panama Joseph W. J. Lee, Maryland. Postmasters George L.-J-. Morgan, at Mackay. Idaho; Charles Hi Crete, at Sil ver City, Idaho - AIM ST MUKDEN Japanese Striking De cisive Blow. HAVE CAPTURED TALIHC That Pass Is Pronounced Gate way to the City, 0YAHA ORDERED TO ADVANCE Must Act Before Snow Melts Posi tions He Has Taken Are Im portant, Despite Denials by the Russians. SPECIAL CABLE. . TOKIO, Feb. 28. Following the custom of the Japanese government, the officials at the War Office refuse to discuss the present movements In Manchuria, but there Is a general air of confidence among the higher officer?, who are absolutely posted on the situation, which Is believed to Indicate that General Kurokl has again scored a complete success and that offi cial announcement may be expected very soon. Up to midnight Monday no particulars of the fighting had been given out, but it was stated that, so far as was known, only the right and center of Marshal Oyama's army had been engaged and that the conditions on the left are unchanged. Regarding the announcement from St, Petersburg that only a comparatively small force of Russians have been en gaged and that tho capture of Tslnk hetchen was of no consequence, an officer of the general staff said last night: Lost Position Was Important. "That is not so. General Kuropatkln certainly would not have spent two months fortifying a temporary position, if he had Intended to abandon It at the first attack. It is hard to reconcile the views of the Russian staff with the re port of their commander at the front, who stated that the Japanese were only able to occupy the position after desperate bayonet charges and after the Russian "po sition hadbcen shelled for hour?. Thai,, hardly sounds to me iJke the report a man would make of the lo'ss of a position of .minor importance. "For obvious reasons L of course, can not say why the position was necessary to our troops, but if you wait a few hours you may learn." Mukden May Be Captured. It Is the general opinion among the best informed experts in the Japanese capital that the present movement, before it ends, will result in the capture of Muk den. It Is known that orders have been sent to Field Marshal Oyama, telling him that the time is ripe for taking the Rus sian main position, as, . if the action is postponed much longer, the Spring thaws, with their resultant floods, will be upon him and it will be Impossible to do any fighting until the roads dry up. The weather at the front, which had been somewhat mild for a fortnight, has again changed, and the mercury is hov ering near the zero mark, while heavy squalls of snow are causing great suf fering to the troops. Medical officers de clare that the large percentage of killed reported from unofficial sources Is due to the fact that tho weather Is so bad, and say that the sufferings of the wounded must be terrible in the extreme. Vladivostok to Be Cut Off. There is, of course, a possibility that the present movement may have for Its object, as well as the capture of Mukden, the isolation of Vladivostok. In view of the recent reports that the port was be ing blockarded by sea by a Japanese squadron of torpedo-boats and protected cruisers, there can be little doubt that, If Kurokl crushes the Russian left, such troops as can be spared will be assigned to a special campaign against the Siberian tronghold. A report was In circulation late last ".'..-'" ... '." "i-Jt'-- . . night that the Japanese had routed the Russians and entered Bomapudz. As yet this is not confirmed. SECOND LINE IS MAINTAINED Russians Repulse Japanese Attack In Desperate Fight. SPECIAL CABL2. ST. PETERSBURG, Feb. 28. Several reports have been received from General Kuropatkln slnco Monday noon dealing with the fighting la Manchuria.' Only a small portion of them have been made public,, but these demonstrate that the fighting still continues and that the Jap anese have scored some mall successes. The Russian commander-in-chief Insists, however, that tho "Russians are holding their own and have In several. Instances repulsed tho Japanese attacks. Moving from Tslnkhetchen, which thev captured late Saturday, the Japanese ad vanced against tho front of the second ary Russian position, which was held by a strong force, among Yhlch were several regiments of the Siberian division. The Japanese first shelled the Russians with heavy siege artillery, following this up with an Infantry, attack, This was of a most desperate character, but was re pulsed and the Japanese were compelled to retire, leaving muny dead and wound ed behind. The Russian loss was not great. Among tho wounded is Colonel Gorsky. Japanese attacks were also repulsed at Tangu, Brldallng- and Bomapudz, but were renewed against the latter place, and the fighting was still In progress at last accounts. It Is reported at the War Office, but not officially confirmed, tljat General Kuropatkln has been compelled to withdraw some of his troops from the right center to reinforce those who aro opposing the Japanese turning movement. PASSES TAKEN BY JAPANESE They Capture Taling, Which Is Gate way fo Mukden. MUKDEN, Feb. 23. The Russians re port that the Japanese are in possession of Taling, and also the pass between Taling and KatoUling. The possession of Taling threatens Fusharnk, Tlepllng and Hlegcsway. Taling Is regarded .as of the same con sequence to the Japanese in their opera tions against Mukden as was Motlenllng in relation to Llao Yang. In case tho Japanese push- on to the southeast, their operations will be among the hills. JAPANESE CROSS THE SHAKHE Advance Is Checked by Russian Sup ports Attack on Center. MUKDEN, Feb- 27. Tho Japanese crossed the Shakho River last evening-, having driven in the pickets of the Russian vanguard. Russian supports came up and stopped the Japanese ad vance. v On the right flank all is quiet, but movements -of thn Japanese Indicate an intention o'f allacjsvtiiii Mu.?14rr-aen-ter, at least? in. tho way of 'a demon stration. Heavy firing continued today to the eastward. The soldiers of the Tslnkhetchen di vision are In good spirits, in spite of the heavy losses they have sustained and the necessity which compelled them to retreat. They are encouraged by the execution . they wrought upon the Japanese, whose bodies were piled. In heaps outsido tho redoubts at Beresneff Hill and the trenches at Tslnkhetchen. Yesterday afternoon there was a violent storm of heavy, wet snow. The temperature during the night moder ated. SHELLS DROPPING IN MUKDEN Japanese Execute Turning Move Far to the North. NIU CHWANG, Feb. 27, via Tien Tsin (6 P. M.). Acordlng to a person who has just returned here from the front, the Japanese are shelling Mukden with 11-inch mortars. The bombardment which was recently commenced is further re ported to have caused great damage far behind the Russian lines. Advices from Chinese sources say that a general engagement is in progress all along the line. The heaviest fighting Is reported to be occurring on the Japanese right, and General Kurokl Is said to be sweeping far north and threatening to crumple the Russians back on the rail road. A special force Is reported to be mov ing from the south and east, with the in tention of cutting off the Russians com munication by railroad from Vladivostok. Russians Still Bombarding. TOKIO, Feb. 27 (b P. M.). The only an nouncement made today from the head quarters of the Japanese armies In Man churia, was a brief statement to the ef fect that the Russians continued a bom bardment, Saturday and Sunday; that the weather Is very cold, and that It Is snowing. BELIEVED TO HAVE CAUGHT FIRE ' I its- 9 . STEAMSHIP OREGON. N FIRE AT SEA Listing Steamer Seen Off Crescent City, CaL PROBABLY-THE OREGON Passengers Are Transferred to Collier and Tug. CANNOT MAKE PORT AT. NIGHT Vessel Was at First Supposed to Be The Columbia, but She Arrived In San Francisco Harbor Lata at .Night. CRESCENT CITY, Cal.. Feb. 27. Late this afternoon two steamers, supposed to be the steamer Columbia. and a collier, arrived off this port. The vessel, which Is supposed to be the Columbia, had a heavy list and presented the appearance of being on fire. The passengers were transferred to the collier and to . the steamer Del Norte, which went out from this port. The collier put to sea today and will probably be followed by the Columbia. The Del -Norte will come Into this har bor In tho morning when particulars will be obtainable. COLUMBIA ARRIVES ON TIME. Passed Into Port at San Francisco at 9 in the Evening. SAN FRANCISCO, Feb. 27. The steamer Columbia passed Into port at 9:15 o'clock tonight. Her arrival places an other phase on the dispatch from Cres cent City, Cal., tonight and shipping men are endeavoring to discover the Identity of the steamer reported to be in dis tress off that harbor. BELIEVED TO BE THE OREGON Vessel for Northern Ports Due Off Cresent City About Same Time. SAN FRANCISCO, Feb. 27. It is be lieved at the Merchants' Exchange in-thls city that the Bteamer reported in dis tress at Crescent City this afternoon la the steamer Oregon, which left here yes terday at 4 P. M. for northern points. The Oregqn was due off Crescent City at about 1 o'clock this afternoon. She resembles In many ways the steamer Col umbia and might readily be mistaken for that vessel. It Is thought that the collier mentioned is the Meteor, coming here from Oyster Bay, Alaska, and due here tomorrow. It has been learned that the transfer of passengers took place some distance out side of Crescent City harbor, hence the Inability of the people ashore to ascertain the identity of the disabled vessel. The failure of the steamer Del Norte to return to the port of Crescent City tonight Is explained by the dangerous condition, at times, of the bar there, and the hazard of attempting to make port at dark. MUNITIONS HAVE GONE ASTRAY Steamer Carlisle, Bound for Port Ar thur, Interned at Manila. MANILA, Feb. 27. The British steamer Carlisle, which was chartered by the Russian government and which, when 300 miles out from Vladivostok, lost her propeller and resorted to sail, which carried her by contrary winds and currents to the Philippines, where she anchored In San Miguel Bay, off the south end of the Island of Luzon, Febru ary 10, was towed Into this port today. At the time of her arrival In San Miguel Bay the vessel was 85 days out from Vladi vostok with supplies for Port Arthur. A Russian supercargo Is now in charge of the Carlisle, the cargo of which consists of powder, shells and other munitions of war. The customs AT SEA- authorities here have sealed down the hatches and 'the Carlisle will probably be detained until the conclusion of the war. ATTACKS ON PASSES REPULSED But Japanese Have Gained Advan tage at Several Points. MADYADANI, Manchuria. Feb. 27. After fighting of the most desperate nature, the Russians remained Sunday evening in possession or Che and Da Passes, against which the Japanese had been flinging themselves madly from noon until dark- The Russians, who were greatly outnumbered, sustained repeated attacks,- some units losing as high as 70 per cent in killed or wound ed In hand-to-hand fighting with the bayonet, to which they were reduced owing- to their having fired their last bullets. In order to hold Da Pass, the last reserves were sent to the firing lino. ' The Japanese turninsr operations In -the region of the Cauto Pass were checked by a battalion of Russian In fantry and several squadrons of cav alry, who repulsed the Japanese with heavy loss. The Japanese also tried to advance on Nangou and Vanupudzl, but were repulsed. The present operations commenced February 19, when the Japanese made a night attack on Haba Pass, seven miles south of Tslnkhetchen. February 20 they attacked Vanze Pass, seven miles southeast of Tslnkhetchen, post tions which themselves are far in ad vance of the general front of the army. The Russians made a counter attack February 21, and temporarily gained ground, but in the evening of Febru ary 22, in the face of superior numbers, they were flanked and retired on the fortified line at Tslnkhetchen. The Japanese stormed Bosneff Hill throughout February 23, simultaneous ly enfilading the Tslnkhetchen position with artillery, and outflanking the Russian Infantry. The Russians evac uated Tslnkhetchen February 24, and retired fighting a stubborn rear-guard action, and halting at Da and Che Passes. JAPANESE ADVANCE GOES ON But Kuropatkln Says He Repulsed Them at Several Points. ST. PETERSBURG. Feb. 27 (7 P. M.). A special dispatch from General Ku ropatkln, dated February 26, says: "The enemy is continuing the offen sive against the front of our Tslnk hetchen detachment, and has "turned both its flanks. "The Japanese have also advanced against Kantle Pass, turning our left flank, but all his attacks on Tangu and Beydaling have been repulsed. His of fensive movement against Bomapudz has also been repulsed. At some posi tions our riflemen forced the Japanese outposts to retire. "Colonel Gorsky was severely wounded." Japanese Cannonade the Passes. ST. PETERSBURG, Feb. 37. General Kuropatkln, In a dispatch dated February 25 announced that the Japanese have commenced cannonading In the direction of Gauto and Wanfun passes. CONTENTS OF TODAY'S PAPEB The Weather. TODAY'S Showers and cooler: winds mostly southerly. TESrEIUATS Maximum temperature, 64 deg.; minimum, 40. Precipitation, none. The War In the Far East. Japanese have 'begun movement to capture Mukden. Page 1. Tstnketchln taken after desperate battle; also Taling .the key to Mukden. Page 1. Renewal of cold weather and snow storms cause great loss and suffering. Page 1. Officers who broke parole ordered back to San Francisco. Page 1. Affairs la Russia. . Peasants join strike movement In Poland and burn saloons. Page 0. Gorky Is released and re-arrested, to be exiled from St. Peterurg. Page 5. Strikers in Warsaw murder policemen. Page 5. Government takes strong measures to keep rail roads in operation. Page 6. National. Senate acquits Judge Swayne on every charge. Tage 3. President's policy regarding Navy and Monroe Doctrine attacked by Democratic Senators. Page 4. Final setUement of Klamath irrigation scheme postponed till April. Page 4. Panama Canal Commission violates law in buying supplies. Page 4. Senate will not Increase Columbia River ap propriations. Page 3. Burton wins victory over Hemenway in the House. Page 3. Domestic. , Gates abandons wheat corner and rakes in a fortune. Page 1. Death of ex-Secretary Boutwell. Page 4. Eleven negroes killed and many injured by col lapse of a church. Page 5. Chicago policeman murders an actress and commits suicide. Page 4. Politics. Decision of Colorado contest depends on rail road charter fight. Page 4. Nledrlnghaus withdraws from Senatorial light in Missouri. Page 4. Kansas attacks salt trust. Page 1. Commercial and Marine. Increase In Imports of tropical produet. Page 15. Heavy dealings on Stock Exchange. Page 15. Break in wheat at Chicago. Page 15. Ban Francisco wheat market unsettled. Page 15. Cargo ship Lonsdale arrives from the Tyne. Page 7. Pacific Coast. Unknown steamer sen to be aflre off Crescent City, Cal.; passengers taken off by Del Norte. Page 1. Judge MoBrlde makes Important decision In logging case. Page 8. Senators Bunkers, French. Wright and Em mons expelled from the California Legisla ture. Page 0. Seventh satellite of Jupiter discovered at Lick Observatory. Page 6. Pacific Coast Legislatures. Tejnhill citizens start petition for referendum on $1,000,000 appropriation. Page 1. Governor Mead vetoes the capital-removal bill; concurrent resolution will be introduced." Page T. Railroad Commission men confident of earning measure through the Senate. Page T. Portland and Vicinity. Politicians discuss retirement of W. F; Mat thew as political leader and his probable successor. Page IS. G Ev S. Wood blames stupid laws for land fraud. Page 12. School Board has & llvly wrangle aver the merit system and the prospective raise In teachers' salaries. Page 14. High School student grills the frats. Page i. Man who fights codicil of father's wilt likes to do fancy needlework. Page 10. Prelude to evangelistic work in Portland will be cottage prayer meetings. Page 10. Applicant for permission to conduct a saloon Is given the lie and a license In the Council meeting. Page 0. Sermon against saloon stirs city fathers of St. Johns. Page 10. Club women and surgeons discuss, the ethics of staying children who are defective. Page 9. Chamber of Commerce will see that the law is enforced against unsightly billboards and rubbish piles. Page 10. - El U Gates Causes Sudden Tumble in Wheat. MAKES LARGE PROFITS Panic Averted by Intervention of Armours, GATES WILL CORNER CORN Wild Stampede to Sell Follows An nouncement That Gates Has Abandoned Corner Great Slaughter of Lambs. FACTS ABOUT GATES WHEAT CORNER. Corner begun in October, 1004. Collapsed February 27, 1905. Total holdings (estimated). 30,000,000 bushels. Total profits (estimated), $3,000,000 to $s.ooolooo. CHICAGO, Feb. 27. (Special.) The Gate3 corner In May wheat collapsed to day with a terrific bang. Millions of bush els of the cereal were thrown onthe local market by tho clique houses, causing prices to fall with a crash. The slump caused a panic among smaller holders, who had been following the bull leaders with tnc innocent faith of the lamb being led to the shearing pen. The price of May wheat fell to $1:14. Less than two weeks ago It sold at 5L21. The closing price Saturday was $L1S. The trade was caught unawares by the severe break, and wheat bought by out siders at fancy prices was sold out at a tremendous loss. Gates Starts Stampede. Word went out at the close last week that the Gates party was ready to throw up the deal, having even at that time dis posed of a. large portion of its line. How ever, brokers were skeptical, and, when tho market opened a trifle higher this morning, the belief generally prevailed that such reports were without founda tion. Trade proceeded In the usual way for about' half an hour, when without warning the market suddenly started to tumble. "Gates has thrown up the sponge." bro kers shouted, as they Baw prices giving way, and some of the bears gave vent to their enthusiasm by frantically waving their hats In the air. The demonstration, however, soon took a "more serious turn. Commission-houses were loaded up with wheat on which margins were fast disap pearing, and selling on stop-loss orders threw the market Into a fever of excite ment, which quickly spread to all parts of the floor, then to commission offices throughout the down-town district. It is difficult to say how far-reaching the panic might have become If Armour had not come to the rescue of the market. That Interest bought heavily around tha low point. Other big houses also cams to the support of the market. Short -wheat was covered in large quantities. These purchases effected a partial resto ration of confidence and brought about a rally, which landed the May price at 51.16'J- After this the market quieted somewhat. Corner Made Millions. Besides John W. Gates, Jame3 J. Hill and other big Wall-street speculators are said to have been Interested in the deal. They controlled a line of May wheat at one time, it Is conservatively estimated, aggregating 30,000.000 bushels. Most of this wheat was bought between 51 .OS and 51.15. The same wheat is supposed to have been mostly sold out at prices rang ing between $1.13 and $1.20, and It Is fig ured out that between $5,000,000 and $8,000, 000 has been taken out of the market by the Gates party. Will Corner Corn Next. It is the belief among the traders that the Gates party, having disposed of most of lt3 wheat, now Intends to boost the price of corn. Large purchases of the latter cereal have been made of late by houses reported to be trading on orders for the "big fellows." The market was well sustained today, and late in the ses sion made .a remarkably strong showing. May corn closing at 48 cents, or 1 cent higher than last Saturday. ORGANIZING CHINESE BANDITS Japanese' Movement in Mongolia Is Aimed at the Railroad. MUKDEN, Feb. 27. A correspondent of the Associated Press, who has lust re turned here after a trip westward to In vestigate the reports of the presence o Japanese in Mongolia, shows them to bn exaggerated. The Japanese there are In small numbers and are partly engaged in inciting the Chinese against the Russians, and In gathering bread grain. They are sending south great Quantities thereof. Others are organizing and training bands of Mongols and Chinese bandits, which are Intended to attack the railroad. The Japanese number 600 and the Chinese bandits 3000, scattered about Mongolia. The larger bands are reported to be gcing to Bouhedoou and Taltslkar, In Man churia, and the smaller bands are pene trating further north into Siberia, in tending to attack the railroad somewhere near Baikal. The repotted turning of the Kusslan right was- largely Imaginary, but affairs on the left flank, where the Japanese have no lees than several divisions con centrated, remain, serious.