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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Sept. 25, 1911)
TTTE arORXIXG OREGOXIAN, MOXDAT. SEPTEMBER 25, 1911. BATTLE FORIVIAYOR RISE OF TOBACCO PEXKCIPAL OPPOSING CANDIDATES FOR MAYOR OP SAN FRANCISCO IN NEXT TUESDAY'S ELECTION. The latest product of the Victor Company IS TOLD 1 Primary Election May Settle Monopoly and Stock Manipu Contest In San Fran cisco Tomorrow. lation Have Enriched In siders, Says Report. Ul III lid - ' J - 4 ir ' enuine MAJORITY GIVES OFFICE "WATER" IS FREELY USED DEEAWING TO CLOSE 1 V , u t -- f Adherent of Both Rolph and 3Io Cmrtby TCarned by Election Of ficial That FYaud Will Bs Overtly Dealt With. PAN FRANCISCO. Sept. 14. The Mayor who will welcome the nations of the world at the opening of the ran- ema-Pacifla Exposition la 111 1 llke ly to be chosen at a pri-nsry city and county election here day after tomor row. The election ta the first nnder charter amendment. any Mayoralty candidate receiving a majority at the polls thereby being; elected, and la also the first election at which a Mayor la chosen for a four-year term. Mayor P. IL llcOarthy la running: for re election after serving; two years. James Rolph, Jr a bualnesa man. e Bis strongest opponent. The election officially Is non-parti san, but party orranliatlnns of the county have named their preference. the Union Labor party Indorsing; Mayor McCarthy, and the Republican and Dernocratlo organizations pro claiming tor Kolph. Ralph for Pablle Ownership. William McDevltt and Fred Slbert have the. Indorsement of the Socialist and socialist Laoor partiea respective ly for the Mayoralty. The registration Is the largest in the history of the city. A few arrests haTe been made on charges of literal registration, and It waa aatd that the Municipal Conference, a civic organisa tion. Is prepared to awear out war rants for about 49 more persona to morrow, on the same charge. Rolph advocates a new City Halt public ownership of publlo utilities. particularly the water system. Im provement of the waterfront, and preparation for the exposition. The Rolph people deny moot of Mayor alo- Carthy'a claims. Both men pronounce la favor of or- faalsed labor. Electloa Officials Warael Warning; to all election officials was irtven today by Thomas V. Cator, presi dent of the Board of Election Commis sioners, who addressed a tnaaa meet Ins; attended by nearly ail the precinct election officials, the other membere of the Hoard of Election Commission, the members of the irrand Jury, the 100 watchers appointed by the Municipal Conference committee, and many cltl sena president Cator eaya that the full force of the commonwealth, of California will be Invoked to prevent rraudulent voting; and to punish all In etancee discovered. The precautions to prevent It, he said, are the most complete la the his tory or the elty. "I have sent men to the state prison from this city for mUtallylne; votes and am ready to do It aeala If neces sary.' he concluded. St . V . ' .: -. - - t ..' .-v.';. ; -. . ... , - v w'X : -x - - v 'V Jaaseai Relph, Jr ReawbUeaa aael Deasocratle. MADEHO NOT HIPPY Prospect of Oe la Barra as Vice-President Worries. ELECTION IS PREDICTED Head of Mexican Ticket FVars Holder of Second Place Will Over shadow II Ira Interes Cen ters on That Port. if . - ?,-: i y -. - . ' " J 4 J "--., .' . " :- '"it' . '-;.' ;" ' i v ' v ; FOUR FIRMS UNDER FIRE Indictments Li k el j AcalnM Coast Business Men. SAN m A NCI SCO. Sept. 14. Four Pa- rlfle Coast business co-mblnatlona are under Investigation by the Government as being- In restraint of trade, and In dictments acalnat them are likely to be forthcoming within lit days according to advices received here today from Las Anselea A part of the Government's evidence. It la reported, already baa beea p re sell ted to the Federal grand Jury there by United States District Attorney Mo Cormlca. It Is understood that action also la contemplated In ban Francisco. Portland. Tacoma and Seattle. Joeeph Darling, who Investigated the so-called bathtuo trust, la working on the casea "I can say that we are looking Into four e pa rate combinations doing busi ness on the Coast and It Is more than likely indictments will be returned." he said today. HERO OF 1893 IS RETIRED Rear-Admiral Harbor Goes) Out of ArtlTO Service Iterao.ee of As"- WASHINOTON. Sept. It. ft ear Admiral Giles B. Harbor, a veteran of the Spanish war. saw the laat of his aetlve service ytstercay and has been placed on th retired llat because of age. Admiral Harbor Is a native of Ohio. With Commander Bchuetze he wi sent to t!berla to succor Chief Engi neer Melville and the ether survivors of the Ill-fated Jeannette polar expedi tion ta 1IS1 and to beatow upon the natives who assisted the Melville party presents from the united ma ire Gov ernment During the Fpanlaa-Ame-rlran war Adm'.ral Harbor was executive officer on the battleship Teaaa. and his gal lantry in the battle of Santiago was recognised by Coagreia. lie has com manded both the Asiatic and Pactno Beets and Is now head of the naval ex amining and retiring beard. CONSERVATION WEEK IS ON Delegates Ftoregatber at Kansas City Congress. KANSAS CITT. Sept. It. Prom a doaea different states approximately four hundred delesatea registered here today for the third annual conserva tion congreaa. which opens tomorrow. According to Thomas IL 611pp. ex ecutive secretary of toe congreaa. the total registration of delegates will ap proximate I$0S. Among the noted arrivals was Theo dore Kryshtofovlch. who represents the Russian government. He la In thla country to gain Information that will benent the Russian farmer. Koottae bualneae and welcoming ad dreaees will occupy the greater part ef toe morning evasion tomorrow, in the afternoon Judge Ren R Lindsey of Denver will sreak on "The Country Child va, the City Chl'.d.- Prealdent Taxt alii speak at night. 1500 Socialists Protest. PARIS. Sept. IItI mais meeting of BoclaUtsts and lAborites to protest arainst a war with Germany brought sxu laWI fiersoas today. - MEXICO CITT. Sept. II Since the withdrawal of General Bernardo Reyes, interest In the presidential election October 1 now centers In the election of the vice-president. The election of Pranclsco I. Madero to the presidency Is a foregone conclusion. although there are persons who per sist In booming the csndldacy of Fran cisco de la iiarra. provisional preal dent, despite hla refuaaL n a plea to ita readers today. El Dlarlo again Insisted that the only sal vation of the cation Is the retention of Ie la Barra In office. What la worrying Madero and hla Immediate supporters, however. Is the vtce-presldsnUal question. Jose Pino Fuarea Is the official candidate on the Madero ticket, but Dr. . V. Gomes' following appears to be crowing stronger. L'e la Barra is the canal- date of the Catholic party. Popularly the race la supposed to be between Gomes and Pino 6 u area, and no newspaper of the cajttal haa pre dicted le la Barra'a election, but It became known today that the Me dero beadauartera Is more seriously alarmed over his chances than over thoee of Vasques Oomea. De la Barra Favor. One politician In the counsels of Madero expressed his belief that De la Barra would be named vice-president, but no: as a result of the popular vols next Sunday. Under the law a majority vote or the electoral college la necessary to elect. Falling in this, the choice Is made by the Chamber of Deputies. Since there are three candidates In the held, only one of which has the per sonal backing of Madero, one with the popular backing of the Insurgent ele ment of the revolutionary party, and the third that of the Catholic party. It is almost certain that none will re ceive the necessary 61 per cent of votes. The Chamber cf Deputies can be counted upon with reasonable cer tainty to name De la Barra. as a big majority of that body Is antl-Madero. Withdrawal May Bo Aaked. It will be no surprise If during the next seven days Madero or his sup porters appeal to the provisional pres ident to renounce bis candidacy. If they succeed the race will be between Vasques Gomes, Pino Suarea and one or two others. Close friends of Madero do not deny the ability of Do la Barra nor his fit nexs for the position. In fact, thetr opposition Is baaed on the belief that he will prove too atrona a man for the place and will overshadow Madero, thue weakening hla administration. The feeling Is growing In tbs Ma- deriata camp that a mlatake was made when the convention saddled upon the presidential nominee the burden of Pino buarea. (Speakers and party or gans ars finding It rather difficult to gain for Pino Suares ths good will of ths public but none Is working harder than Madero, in whose company Pino Suarea landed In Vera Crua yestsrday. r. B. McCarthy,' Caloa Labor. SUITOR SHOOTS NURSE Fleelnf EatonvHle Sfstn Una Battle With TACOMA. Wash. Pept. 14. Special.) Feoauee It Is believed, she refused his proposals of marriage, Frank Calvin twice shot and probably fatally wound ed Mrs. Vivian Irving, at EatonvHle. at t.ld o'clock tonight and then fled toward Tacoma In a livery rig. ex changing fualllads of shots with a pursuing posee half way betweea Eatonvtile and Roy. after he waa forced to abandon hla wagon Business troubles are also said to have had a place In the quarrel. Mrs Irving, who was a trained nurse and whose parents reside at Marysville, Wash- Is lying at the point of death In the EatonvHle Hospital, while Deputy ts-Hf( tromr Teooma, &o and laton- vllle ars scouring the oountryslde In pursuit of Calvin. Calvin hired a livery rig at Roy late Saturday night and drove to Katonvllle. At o'clock tonight Calvin came to the hospital and Mrs. Irving met him. They walked towards the La Shell River about a quarter of a mlie of the tomn. According to J. IM Brltton. pro prietor of the EatonvHle Laundry. Cal vin fired two shots Into Mrs. Irving from a revolver, which he kept In his right hsnd coat pocket. Both bullets entered her left side. . 1 accidentally shot her," explained Calvin. -Tou watch her, ril go get a tig and take her to the hospital.' He then ran towards the town, leaving Brltton with ths woman. Just before going to the hospital Cal vln had gone to the livery stable and ordered his horses to be harnessed. A few minutes after the shooting. Calvin came running Into the stable and Jumped Into hla waiting carriage. Goodbye boye." he called and drova out. lashing hla horaes and taking the mountain roads toward Tacoma. It Is believed that Calvin was pushing for Tacoma. but when searchers headed him off he was forced to the woods and Is now thought hiding somewhere be tween Roy and EatonvHle. FEVER TRACED 10 GIRL CHICAGO SnTKMAIT) CHARGED WITH TYPHOID DEATHS. Effort of Health Official to Have Her Returned to Farm Stirs Vp Outburst of "Protest. SPRINGFIELD, III., Sept. 4. (Spe cial.) Dr. James A. Eran? secretary of the Etate Board of Health, la trying what looks llks a dangerous experi ment on the health and perhaps the lives of Chicago milk drinkers. He wants Rossis B. PelL a young girl charged with being a typhoid fever carrier, returned to the farm of her step-father, Gilbert Boersma, who supplies milk to Chicago, She was banished from the farm when the Chi cago department, by sclentlflo tests, decided she carried typhoid germs. Health Commlaaloner Toung of Chi cago has written Dr. Egan that he be lieves "Miss Pell Is responsible for 0 odd cases of typhoid fever traceable to the Boersma farm." That was the Englewood epidemic which caught 61 victims in June and July, four of whom died. Dr. F. Gibson, health officer of Blue Island, also has written Secretary Egan that three residents of that suburb who drank Boersma milk had typhoid fever. One of these died. In addition. Dr. A. w. woods, health officer of Mora-an Park, has reported to Secretary Egan that Boersma in IsOt caused several epidemics of ty phoid fever with hla milk, and also was responsible for ths death of sev eral persona Ex-Health Commissioner Evans re port of typbold-.fever In Roseland In list, which garnered It victims. charged them to Boersma's milk. DEAD PREMIER SUCCEEDED T. X. Kokorsoff Takes Portfolio . Death 6tole From Stoljpin. ST. PETERSBURG. Sept. 14. The ap pointment of V. N. Kokovsoff as Premier haa been gazetted. He re tains the Ministry of Finance. The roiertv of the KnxUsh errn haa been marked with tae broad arrow from times eo erly that re one can bow ih when it was first od low UUS purpose skat was us saeaninsa Findings of Commissioner of Cor po rations Show How Control of Industry Has Concentrated Wealth in Few Hands. WASHINGTON'. Sept. It. The second part of the report upon the tobacco In dustry, dealing principally with the to. bacco trust, has been submitted to ths President by Herbert Knox Smith. Com I mlasloner of Corporations of the De partment of Commerce and Labor. Th report shows the enormous profits wnicn have sccrued to the American Tobacco Company end its subsidiaries through an almost absolute monopoly or cigarettes, "smoking tobacco" and snuff profits so great that common stock, originally all "water," made for tunes, and how the combine, by Its control of the Industry, was able to keep up the high prices of tobacco af ter the Spanish ar tax had been abol lshed. By manipulation of securities, the re port goes on to say, the bulk of the great earnings has gone to "insiders,' "who have waxed very rich on monopo llatlc proflta" Financial lde Portrayed. Thla part 2 of the report deala exclu- slvely with capitalization. Investment and earnlnga of the tobacco lnduatry. In a letter of submittal. Commissioner Smith summarizes his report In part as follows: "In 1890 the tobacco combination's earnlnga were over 18 per cent on the actual Investment, They rose In 1891 to more than SI per cent. It was then operating principally, and with a prao- tlcal monopoly. In cigarettes. Ia 1895 came expansion Into other branches. keen competitive struggle, and a sharp drop In earnings. But by 1900 the "com blnation's broad domination of the whole lnduatry took effective shape. Its earnings from tlrat date cover the great bulk of the lndus.ry. In 1901 they were 13 per cent. In 1908 over 18 per cent, and from 1904 to 1908 the av erage waa " per cent, or t31.200.000 yearly. -This was the earning power of substantial monopoly, the result of the concentration. "In particular branches appears, even more strikingly, the earning power of concentrated control. In the snuff busi ness the combination has an almost complete monopoly 96 per cent of the whole business. From a rate of less than 9 per cent In the first year (1901) the earnings rose In 1903 to 15 per cent. and In 1908 to over 22 per cent. The common stock of the snuff company. originally all "water,' paid 10 per cent dividends In 1908 and 17 per cent in 1910. "Smoking Profits Big. "In the highly controlled 'smoking tobacco' business the average earnings of Its Important subsidiaries Increased from 17 per cent In 1900 to 65 per cent In 1908. Conversely, the subsidiaries engaged In the flat-plug business, with more sctlve competition. In no year earned 19 per cent, in ltOS less than 8 per cent. Finally, In the cigar business, ot which ths combination controls not over IS per cent. Its rste of earnings has never exceeded . ( per cent, and from 1904 to 1908 averaged less than 8 per cent. This business, moreover, showed exceedingly heavy loaaes in 1903 and 1903. Here were severe com petition and low earnings. The combinations rate of earnings haa far exceeded that of Its competi tors. Its rate In 1908, representative year, was about two and one-half times the average rate for 43 of the most Important Independent manufac turers of smoking and chewing tobacco and snuff. The earnings of those In dependents, moreover, fairly represent the average rate In" the tobacco busi ness before the formation of the com bination roughly speaking, the 'com petitive rate.' In other words, the com bination has more than doubled the average level of earnings on Its share of ths business. , War Level Maintained. "Ths results of the Spanish War tax upon tobacco products especially Illus trate the monopolistic power of the combination. When that tax waa Im posed, in 1898, prices were generally raised. In 1901 and 1902 the tax was reduced to its former basis, but the combination was powerful enough to keep ltei prices on the higher level, rt thus absorbed practically all the ben efit of the reduction, ad dinar millions yearly to Its Inoome. This episode shows the unforeseen results of fiscal legislation affecting monopolistic con ditions not fully recognized. The tax reduction, of course, was Intended to benefit the consumer. As a matter of fact. It benefited almost solely ths controlling Interest In the Industry. "The combinations capitalization (exclusive of intercompany holdings) Is much greater than Its actual Invest ment. The difference lies In the value attributed to 'good wllL' The tangible assets (plant and working capital) havs usually been entered on Its books at approximately their true valua tions. But the 'good will' In Its domes tlo business alone stood on the books In 1908 st. roughly. 8148.000.000, where as the Bureau, after careful analysis. has computed its actual cost (not present value) at 884,000.000, or 85 per cent of the entire Investment. In this allowance of - $64,000,000 the Bureau clearly recognizes the great value of 'good will (chiefly brand value) In the tobacco Industry. Over and above this, however, at almost every Important step In ths expansion of ths combina tion, there have been laaued against that good will great blocks of new securities representing nothing but overvaluation. or capitalization of monopolistic power. Few Inside Coaix-ol. "Through adroit and frequent adjust ments of the securities of ths Combi nation, a vsry large part of Its great earnings have gone to a small group of Insiders, who havs throughout retained substantia voting control. These In siders In 1901 Induced tho- common stockholders of the old American and Continental companies to surrender their stocks for four per cent bonds of the new Consolidated Tobacco Com Pny, thus securing for ths common stock of the Consolidated (most of which the Insiders held) the great In crease In earnings, which they foresaw, from the reduction In the war-revenue tax. This Increase the rank and file of stockholders of the older concerns did not foresee. "In the reorganization In 1904. the advantage of the Insidsra was perpetu ated. Of the book profits of the new American Tobacco Company In 1910 0ot Lha 'sarglngi' as xerlsed hjr h j Vi dor- ictrola . Victor-Victrola IV, 15 Equipped with all the latest Yicio .1111,.., including Exhibition sound box, t tapering arm, "goose-neck", ten-inch turntable and concealed sound-amplifying features The fact that this instrument bears the famous Victor trademark and is a ge?iuine Victor-Victrola guarantees to you the same high quality and standard of excellence so well established and recognized in all products of the Victor Company. There is no reason on earth why you should hesitate another moment in placing this greatest of all- musical instruments in your home. All we ask is that you go to any music store and hear this new Victor-Victrola. Victor Talking Machine Co., Camden, N. J. Other styles of the Victor-Victrola $50, $75, $100, $150, $200, $250. Victors $10 to $100. (Si) VISIT our VICTOR department and hear the new $15.00 Victrola ML Sherman Ray & Co. Bureau), namely $33,000,000, only about 15.300.000 went to the holders of the S104.000.000 bonds, S4.70O.0O0 to the holders of the 379,000.000 preferred stock, leaving no less than 325,000,000 for ths comparatively small number of holders of the $40,000,000 common stock. which alone has voting power. This was over 60 per cent on the common stock In one year, not including extra dividends of subsidiary companies. In hort. ths bulk of the earnings of this great Combination, Increased by monopolistic power, has, br clever ar rangement of capitalization, been more centered In a very small group of In dlvlduals. There must also be considered here the profits arising from the inflation ot the Combination a securities. For ex- ampls, one of the constituent busi nesses was valued In 1885. under com petition, at 3250.000. Five years later, at ths organization of tbs old American Tobacco Company, It sormed the basis for ths Issue of $7,500,000 stock. By 90s, due to various readjustments, the securities based on this business had Increased to $22,000,000. Meantime, cash dividends and Interest thereon had amounted to $16,900,000. Thus, the total par value of theae securities (the combined market value being substan tially the same), plua the dividends and interest paid up to 1908, amounted to nearly $39,000,000, or 16S times the value of . this particular business In 1885. The Combination's history, there fore, shows these foremost facts: The earning power of a monopolistic posl- on in a great industry, excessive capi talization, and remarkable concentra tion of the resulting wealth In a few hands, through control of the voting security Issues." WILD MAN'S HEART BREAKS Eighteen Months of Civilization Brings Death to Cave Dweller. UK 1 ATT, Cal, Eept 24. Amedo Besco, a wild man. was tound desd today at the entrance to his cave near Hopland. Eighteen -months of civilization which had been forced upon him, broke his heart. Sesco lived off the country and kept It In a state of terror for many years until in 1909, he was taken unawares while sunning himself on a rock and was captured after a bitter fight. Investigation disclosed a cave with many outlets, in which was piled plunder accumulated In many pillaging expeditions. An Insanity commission sent Eesco to the state hospital for the insane at Napa, from which he waa released recently. He returned to his cave, but showed no further Interest In life. Bankrupt Cevlled to Court. VANCOUVER. Wash., Sept. 24. (Special.) Morris Josefowitz. bank rupt, will be required to show where goods to the amount of $5225.92 went, or be In contempt of court, by v'rtue of aA order, from George B. Simpson, , ALL THE NEW .VICTOR RECORDS ALL THE NEW COLUMBIA RECORDS ALL THE NEW EDISON RECORDS are to be found in the beautiful new salesrooms of the new. The Nation's Largest Dealers, Now at Seventh and Alder Wholesale and Retail Dealers.. Graves Music Co. Ill Fourth St. . Direct Factory Agents. Talking Machines AND RECORDS Why Not Come to Headquarters t Most Complete Stock on the ' Coast. referee In bankruptcy for this district. Issued today. Josefowitz operated a store here, and at the time he applied by petition for bankruptcy July 15. 1909, be had goods In the store to the amount of $6000. After that time, and until he was declared bankrupt, he bought $15,000 worth of goods, but paid no bills, which left about $7000 he could not account for. Centralia Depot Site Surveyed. CENTRALIA. Wash., Sept. 24. (Spe cial.) A party of aurveyora arrived In Centralia yesterday and surveyed the site of the new passenger depot. Chief Engineer Cook, of the Northern Pacific has already made a requisition for ma terials and they are ready to be shipped. OakTlIle to Hold Pair. CENTRALIA. Wash.. Sept. 24. Every Indication, points to a most suc cessful exhibit and a large attendance at the Oakvllle fair, to be held there Thursday, Friday and Saturday of this week. Governor Hay will deliver an address Saturday. Portland Printing House Co. J. t Wright, pres. and Gen. atanager. Book. Catalogue and Commercial . PRINTING Rsjjtinr. Bin din and Blank Book PbosM: Main 6201. A 2281. XvaUi and Taylor StrMta, Portland. Ore ton. UUA T Q Women mm well aa men ar VY XIV- XkJ made miserable by kidney and TO bladder trouble. Dr. Kilmer., Swamp-Root the great kidney Bt IMC remedy promptly relieve At UAl'lL druggiita in flfty-cnt anj dollar eirea Tou may have a sample bottle hv mall free, also pamphlet tailing all abou It. Address Dr. Kilmer A Co.. B 1b go am too. 1