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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Aug. 4, 1907)
w life Smttlaii llil tftkt Pages 1 to 12 VOL- XXVI XO. 31. PORTLAND, OREGON, SUNDAY MORNING, AUGUST 4, . 1907. . PRICE FIVE CENTS. I. STANDARD OIL FINED THE LIT Landis Exacts Total of $29,240,000 for Ac cepting Rebates. DOES NOT MINCE WORDS tireat Monopoly No Better Than Counterfeiters or Mail-Robbers. SAYS FINE IS NOT EXCESSIVE Only One-Third of Dividends During Period of Crime. PROSECUTE ALTON ALSO Grand Jury Summoned to Indict Railroad Standard Liable to Fines of $88,440,000 tinder Seven Other Indictments. CAN MAKE PCBLIC PAY. How the Standard Oil Company can exact payment from the public: Fine imposed by Judge Landis $29,240,000 Attorneys' feea (estimated).. 260,000 Total fine and costs 81,500,000 How It Can Be Paid. Present price (average grade) kero sene per gallon, 12 cents. . Proposed price, same. 13 cents. Gallons refined kerosene to one bar rel crude iwtroleum, 15. Number gallons to be sold at In crease of 1 cent per gallon over pres ent quotations to reimburse Stand ard Oil. 3.150,000. Number barrels crude petroleum, 210.000.000. Increase In dollars. $31,500,000. Capital stock Standard OH Company ot New Jersey. $100,000,000. Capital stock Standard OH Company of Indiana, $1,000,000. Wealth of John D. Rockefeller In ex cess of $1,000,000,000. (Exact fig ures not known to himself.) Rockefeller's interest in Standard Oil (27 2-5 per cent total capltaliza . tlon). $27,400,000. Flgurea based on one barrel crude pe troleum producing 35. per cent .kero sene and by-products, paraffin, lubri cating oils, etc. CHICAGO, Aug. 3.-Judge Kenesaw M. Landis today In the United States District Court fined the Standard Oil Company, of Indiana $29,240,000 for violations of the. law against accepting rebates from rail roads. The fine is the largest ever as sessed against any Individual or any cor poration in the history of American Juris prudence. The case will be carried to the higher courts by the defendant com pany. The penalty imposed on the company is the maximum permitted under the law bnd it was announced at the end of a long opinion, in which the methods and practices of the Standard Oil Company Were mercilessly scored. The Judge, In Tact, declared In his opinion that the of Bctals of the Standard Oil Company who were responsible for the practices of Milch the corporation was found guilty Rockefeller We,Il just run' up oil, on." were no better than counterfeiters and thieves, his exact language being: "We may as well look at this situ ation squarely. The men who thus de liberately violated this law wound society more deeply than does he who counter felts the coin or steals letters from the mail. The nominal defendant is the Stand ard Oil Company of Indiana,' a million dollar corporation. The Standard Oil Com pany of New Jersey, whose capital Is $100,000,009, Is the real defendant. This Is for the reason that, if a body of men organize a large corporation under the laws of one state for the purpose of carrying on business throughout the Uni ted States and for the accomplishment of that purpose absorb the stock . of other corporations, such corporations so ab sorbed have thenceforth but a nominal existence. They cannot Initiate or execute any Inherent business policy, their elimi nation In this respect being a prime con sideration for their absorption. So, when after this process has taken place, a crime is committed in the name' of such smaller corporation, the law will not con sider that the latter corporation is the real offender. And where the only pos sible motive of the crime is the enhance ment of dividends and the only punish ment authorized is a fine, great caution must be exercised lest the fixing of a small amount encourage the defendant to further violations by esteeming the pen alty to be in the nature of a license. Maximum Fine Xot Excessive. "The defendant argues that to hold It for 1462 offenses would be a violation of the constitutional prohibition against the Imposition of excessive fines, and It la urged that Congress could never have intended to confer upon the court such power. It is the view of the court that for the law to take from one of its corporate crea tures as a penalty for the commission of a dividend-producing crime less than one-third of its net revenues ac crued during the period of violation falls far short of the Imposition of an excessive fine, and surely to do this would not be the exercise of as much real power as is employed when a sen tence is imposed taking from a human being one day -of his liberty. "The law prohibiting preferential railroad rates was passed twenty years ago. Its adoption was preceded by vigorous opposition interposed by those who had been the beneficiaries of the vicious practices its enactment was designed to abolish. Immediately thereafter these persons set about to. devise means for Its evasion. The records of the court and of the Inter state Commerce Commission show the employment of a large variety of schemes' to accomplish this result. Dur ing the period since 1887 Congress has repeatedly endeavored to effffectively amend the law with a view to the ac complishment of Its great object. No Sooner Made Than Broken. "Finally, in 1903, the Elkins law was passed. The court recalls that at that time the earnest hope was very gen erally entertained that at last a means had been devised t..at would put an end to preferential railroad rates, and yet a few months thereafter the Stan dard Oil Company procured 1900 car loads of property to be shipped at an unlawful secret rate. And for this of fense the Elkins law authorizes pun ishment only ' by fine an obvious de fect, remedied, however, by the present law, which prescribes imprisonment in the penitentiary for like offense. How ever, It is the business r' a Judge to administer the law as he finds it rath er than expatiate on the inadequacy of punishment authorized for Its infrac tion. "It is the Judgment and sentence of the court that the defendant, the Stand ard Oil Company, pay a fine of $29,240,000. Punish Alton Road Also. "One thing remains. It mutt not be assumed that in this jurisdiction these laws may be Ignored. If they are not obeyed, they will be enforced. The plain demands of justice require that the facts disclosed In this proceeding be submit ted to the grand jury with a view to the consideration of the conduct of the other party to these transactions. Let an or der be entered for a pr.nel of 60 men returnable at 10 o'clock on the morning of August 14. The United States Dis trict Attorney Is directed to proceed ac cordingly." Under the seven' indictments still pend ing against the Standard Oil Company, an additional fine amounting to $88,440, 000 may be levied against the company. If It is found guilty on trial. There are in these seven indictments a total of 4423 counts, and the maximum fine on each count would be $20,000. President Much Interested. OYSTER BAY, Aug. 3. President Roosevelt received with great interest (Concluded on Page 5.) the price of Filipino "I don't think I want Uncle 8am to cll me to those Japs." P STANDARD TRUST Youngest Son of Noted Landis Family. HE FEARS NOT GREAT POWER Once Lawyer for Corpora tions, Now Their Judge. BROTHERS GAINED FAME Made Reputations as Congressmen by Fearless Course Judge Came to Front as Gresham's Private Secretary. CHICAGO, Aug. 3. (Special.) Kene saw Mountain Landis, Judge of the United States District Court for ' the Northern District of Illinois and the man who laid out the first stick fly-paper for Standard Oil, came into Chicago from Indiana. He is a native of Ohio, Seven mile, near Mlllville, being his birthplace. He migrated to Indiana when seven .years old. He was born November 20, 1S66, Just after his father had returned from the Civil War. carrying in his body Southern lead received in the battle of Kenesaw Mountain, hence the name of the youngest of seven sons. Two of these brothers were members of the Indiana delegation in Congress simultaneously Charles B. Landis and Frederick K. Landis. Both made rep utations in Washington for fearlessness in debate and regardlessness for the cus toms, doing things at the National cap ital. This is the family trait which has pe culiarly distinguished Judge Landis dur ing the course of the Standard Oil trial, In the opinion of those ' who have watched the proceedings. When"T3rover Cleveland became Pres ident of the ' United States and Waiter. Q. Gresham became his Secretary oft State, Secretary Gresham made Mr. Landis- uis private secretary and for two years until the death .of Mr. Gresham, Mr. Landis was one of the forceful and striking figures In the of ficial life of Washington. When Mr. Gresham died, Mr. Landis returned to Chicago, re-entered the prac tice of law, and incidentally adopted politics as a side line. Mr. Landis was attorney for several leading corporations at this time, among then) being the Grand Trunk Railroad and the Calumet electric line. He was appointed in 1905 to the Federal bench. E THE L GARFIELD SAYS LESSOX IS TAUGHT BIG CORPORATIONS. Government Can Surely Collect Fine and 10,000 More on Similar Charges. RIVERSIDE, Cal., Aug. 3. In an ad dress delivered tonight before the Cham ber of Commerce, James R. Garfield, Secretary of the Interior, alluded to the fine Imposed upon the Standard Oil Com pany at Chicago today. In the course of his speech he . said: "The decision and fine are the end of a long fight and will teach people of this country that no man, big or little. Is above the law. The Standard Oil Com pany and others like that great corpora tion have gone ahead on the theory that they were so powerful that they could do things the ordinary citizen could not. We are showing them that they cannot." Asked if the prosecution could collect the fine, Mr. Garfield replied:. "You may be assured we can. There EVENTS OF LAST J 1mm j- Britt -"They tell me this Is the best way to fight that nigger Gana." U GEM NED are 10,000 more counts hanging over them, in which similar fines can be administered." PRODUCT OF ONE MASTER MIXD Standard Oil Company Most Perfect Business Machine. CHICAGO, Aug. 3. (Special.) Standard Oil A synonym for financial hypnotism is the product of one master mind. John D. Rockefeller and his associates have evolved from a beginning of nothing the most complete, most perfectly organized and extravagantly successful piece of business machinery the world has ever known, an organization which leaves the East India Company, a marvel in its day, a mere bagatelle. , The Standard OH Company faced a master for the first time In its career of 41 years when It was haled before Judge Landis and mulcted to the full extent of the law. From the time four young men Joined resources of less than $100.000 . In the r 'A ;a ' ..jrfr v3S Governor J. J-Tank Hanley, of Indi ana, who booms Fairbanks for President. formation of the original Standard Oil Company to the last dividend-declaring period of 1907, which marked the distribu tion of nearly $50,000,000 in profits for less than one year. Standard Oil has con quered all that stood in Its way, mastering all obstacles, relegating the law of supply, and demand to the dead letter statutes and sweeping all before it through the very force of Its matchless system , of business organization. John D. Rockefeller, William Rocke- I Wj r, Henry H. Rogers, John. D. Arch il m, Henry M. Flagler, Oliver H. Payne i Jrcle h iTl Charles M. Pratt comprise the Inner of kings and princes 9f Standard VIRGINIA ROADS GIVE fN Grant Two-Cent Rate Pending De cision by Courts. RICHMOND, Va., Aug. 3. Shortly be fore midnight tne state officials re ceived a teiegram from the attorney of the Virginia raiiroaas to the effect that the 2-cent rate would be put into effect on or before October 1, on condition that the matter should be taken to the courts for a final decision as to its legality. The statement given out by the rail roads Is that they . nave determined to give In to the people and to end the conflict. MAGILL AND WIFE BAILED Couple Charged With Murder Re leased by Court. CLINTON, 111., Aug. 3. Fred Magill and his wife, Mrs. Fay Graham, Magill, Jointly indicted, charged with the murefer of Mrs. Pet Magill, the first wife of Ma gill, were released from jail today on bond in the sum of WOW each. Circuit Judge Cochran announced that on next Friday he will set the day for the trial of the couple. JURY; MAKES FOUR COUNTS Missouri Pacific Indicted for Non Compliance of Law. JEFFERSON CITY, Mo., Aug. 3. The grand jury today returned four indict ment against the Missouri Pacific Rail road, charging that the company has not compiled with the eight-hour tele graph law passed by the last Legis lature. The railroad company has con tended the law Is unconstitutional. WEEK AS VIEWED BY i 1 ! - V f L ' ' ' ' 1 i Sheriff and District Attorney of Clacka mas "How do we know there Is gambling at Mllwaukle unless you bring evidence." 1L1UKIE CLUB FORCED TO CLOSE Clackamas Authorities Compelled to Act. PRESSURE GROWS TOO STRONG Gamblers Do Not Expect to Reopen Their Games. POOLSELLING IS STOPPED Betting on Horse Races Conies Under Ban With Other Pastimes. Town Loses Principal Source of Its Revenue. Acting under instructions from District Attorney Hedges and Sheriff Beatie, of Clackamas County, the Mllwaukle Country Club closed its gambling games last night at 9 o'clock. This order, said J. E. Cul lison, manager of the club, was Issued by the two officials a week ago, but the club management did not make up Its mind to obey until last night. Whether District Attorney Hedges and Sheriff Beatie gave an additional order last night for obedience to their mandate, the man agers of the" club decline to say. ( The order If issued a week ago was con cealed from the public and the club did not feel obliged to obey it at once. It seems evident that public clamor became so loud that District Attorney Hedges and Sheriff Beatie felt the need of sup pressing the unlawful business. The gambling included pool-selling on horse races and games of faro, roulette, craps, draw and stud poker and black Jack.' Do Not Expect Reopening. It was announced last night that the employes numbering some 25 will have no further employment. The bar, however, will run as usual. The managers of the club say that they expect the closing to be permanent. The campaign against this club has been waged vigorously. The resort was estab' ltshed as a refuge for gambling when games of chance were put under the ban in Portland. To It. flocked the refugees from the reform wave in Portland. They were welcomed by the people of Mll waukle under an agreement whereby they were to pay tribute to that town In the form of fines amounting to $100 a month. Mllwaukle citizens were glad to get this money for it lessened the burden of taxes and enabled them to make public im provements Including the building of a City Hall which they would have been unable to obtain without the gamblers' money. Resented Any Interference. Efforts to dislodge the resort by resi dents of Portland and Oregon City proved futile. The people of Mllwaukle stood by the club and resented outside Interference. They elected a Mayor and Councllmen pledged to continue It on the fine system and rejected reform tickets in the city election by large majorities. They are now unable, however, to cope with the state law which they find carries an authority superior to that of their city. CITIZENS FLY TO THE RESCUE Say Mllwaukle Tiger Is Harmless Beast and Is Their Pet. Mllwaukle men do not want their pet tiger caged by the officials of Clackamas County, nor the reformers of Oregon City. They think it is no business of Portland citizens, either. If the town of Mllwaukle desires tf retain the striped animal. More than 100 residents of the town have signed a statement, taking to themselves entire responsibility for existence of the club. It will be re membered that Mayor Shlndler was elected on a platform which promised to allow the club to run. The same Is true of members of the town Council. Mllwaukle is proud of Its new City Hall, built from money collected from the gamblers in fines. It is plain that HARRY MURPHY The first locomotive has arrived In Tillamook, many citizens there never having seen one before. Perhaps this Is the way they expected It to look. the people of the town approve this system. Their statement is as follows: To William Shlndler. Mayor. Mllwaukle, Or. : We .the undersigned .residents, voters and busi ness men of the city of Mllwaukle, desire to say that we have read the howl that has manifested itself through the Portland papers In regard to the Mllwaukle Club, situated In this city. We desire to bear witness to the fact that this criticism In the newspapers Is uncalled for and unwarranted by the facts, and Is not Indorsed by us. As the Mllwaukle Club Is conducted and managed It Is not offensive to good morals, nor doc it In any way injure the social, moral or business life of this com munity. We indorse your course as Mayor of this city and the other city officials of Mllwaukle In the manner and way in which you have permitted this club to exist within our city limits. (Signed:) John X. Aright. Archie Manoer, Percy G. Harlow. P. Kennedy. Eugenie Aright, w". H. Scott. Leo Johnson. Fred F. Pelner, D. T. Davis. C. Kohn. G. E. Kornlck. A. H. . Dowllng. Charles K. Ballard (postmaster), A. Bmerlch. John Deardorft. John M. Snyder, G. Keller. Fred Roberts, C. T. Stockton. J. A. Dowllng. G. A. Gledhlll. A. Davis. W. A. Sellwood. T. R. A. Seflwood, W. H. Lehman. J. M. Stueky. FJ. A. Patterson, T. Ham. C. F. Frey. R. F. Johnson. E. T. Elmer. B. Tschar sur. J. W. Philips. J. W. James, J. Prschka. Henry Philips. Charles E. Hlvely, F. C. Har low. Jr., T. C. Swaggert, E. Paetsch, R. B. Davis. Philip Baker. Albert Stewart. EM Murphy, R. Tallon, F. C. Harlow. C. A. Iikln. W. H. Relnfcart. R. McGetchle. Frank van Dusen, Daniel Mass. Henry Scott, C. S. Self ridge. Matt Schueiger. A. Hick. B. D. Wurser. Henry E. Stevens (ex-County Re corder). Caaper Kerr. Charles Loedlng. Charles (Concluded' on Page 2.) CONTENTS TODAY'S PAPER The Weather. YESTERDAY'S Maximum temperature. TO degrees; minimum temperature, 60 de grees. TODAY'S winds. -Fair and warmer: northwest Standard OH Prosecution. Judge Landis fines Standard Oil Company maximum sum of $29,240,000. Page 1 Section 1. His decision scores company without mercy. Page 1, Section 1. - Grand Jury ordered to act on Alton road's complicity in crimes. Page 1, Section 1. Other Indictments pending under which Ones of over $88,000,000 may be Imposed. Page 1, Section 1. Amount of fines would build five battle ships. Page B, Section 1. How Standard can make public pay the fines. Page 1. Section 1. Garfield says fines will be collected. Page 1, Section 1. Foreign. Moorish fanatics continue attacks on Euro peans, who flee rtom Casa Blanca; France hurrying to relief. Page 2 Sec tion 1. Great British fleet reviewed by King and Queen. Page 2. Section 1. Kaiser and Cxar hold long conference. Page 2, Section 1.. American plan for permanent court adopted at The Hague. Page 2. Section 1. National. Nationalists win majority in Philippine As sembly. Page 1. Section 2. A. Boothe A Co., flan trust. Indicted for taking rebates. Page 3, Section 1. Canadian militia seize American Island in Lake Superior. Page 8, Section 1. Politics. New York opinion on Taft's chances. Page 1, Section 2. . Williams wins Mississippi Senatorial fight. - Page 1. Section 2. Domestic. Augustus St. Gaudens, the sculptor, dead. Page 2. Section 1. Railroad men scoff at Harriman's gasoline cars. Page 2. Section 1. Young Giant and young Sheridan rivals for Miss Root's hand. Page 3. Section 1. ler: one suspect arrested. Page 2, Sec tion 1. Sport. Charles Edward wins the J 15,000 Brighton Derby. Page 10, Sectton 1. Chief of Police Grltzmacher takes steps to curb automanlaca. Page 8. Section 3. Los Angeles beats Portland, 6 to 0. Page 3, Section 4. Pacific Coast. Dynamite explosion and fire wrecks town of Winona, Wash.; one dead. Page 10. Section 1. Seattle Judge says he grants 90 per cent too many divorces. Page 4. Section 1. Aberdeen builness men to give Sunday clos ing law thorough test. Page 4, Section 1. Commercial and Marine Melville Dollar will take cargo of 33.000 railroad ties for Mexico. Page 11, Sec tion I. Wheat prices will be on export basis. Page 7, Section 1. Stock market in lifeless condition. Page 7, . Sectton 1. Reports of frost send up wheat at Chicago. Page 7. Section 1. Portland and Vicinity. Another land fraud suspected In Deschutes Irrigation project. Page 1, Section 1. Mllwaukle gambling club closed by Clacka mas County officials. Page 1, Section 1. Lafe Pence will purchase fair grounds for 1:100,000: plans extensive Improvements. Page 8. Section 1. Lumbermen resolve to fight advance In transcontinental rates. Page 1, Section 4. Traveling men win fight for mileage books on Harriman lines. Page 8, Section 4. Mayor Lane demands revocation of P. R.. L. A P. Co.'s steam-heat franchise. Page 10, Section 2. Little girl mangled by streetcar at Sunny side. Page 8. Section 1. Grand Master Scott apologises to Oddfellows for corner-stone Incident. Page 6, Sec tion 3. Mulkey and now let tts have 4TB. t L L Deschutes Project Is Under Suspicion. GOVERNMENT TO INVESTIGATE First Terms of Grant to Com pany Already Violated. . PRICE OF LAND IS RAISED Fignre of $10 an Acre Set Originally Advanced With Consent of the State Land Board to $2 5. Mllllons in It. Are the colossal land grant grafts of a generation ago In Oregon to be imitated In the Deschutes country, where 140,717 acres of land have been granted by the National Government under the Carey law. for reclamation by irrigation com panies? Three years ago, two companies were authorized by the State of Oregon and the National Government to reclaim land near Bend for an average of $10 an acre, tnls money to be paid by settlers for the work and $1 an acre per year for water service. But recently the State Land Board Its new members being Secretary of State Benson and State Treasurer Steel au thorized the successor of the two compa niesthe Deschutes Irrigation & Power Company to raise the charge frCm an average $10 an acre to an average of $35 an acre, thereby more than doubling the cost of reclamation to settlers and. as Is alleged, giving into the hand of the lrrl- gation company a graft of $2,000,000 or thereabouts. Government to Investigate. That Secretary Garfield and Commis sioner Balllnger heard of this matfer when In Oregon Is evident. The Depart ment of the Interior Is reported contem plating an Investigation. T. B. Neuhau sen, special inspector of the Interior De partment, and Oswald West, Oregon Railroad Commissioner. representing Governor Chamberlain, and 1 formerly State Land Agent, will visit the site of the Deschutes project, to learn tTie cost of installing the water system. The gen eral belief Is that the new price Is too high, and members of the State Board are not prepared to deny that this Is a fact. Besides, sufficient security does not appear to have been exacted of the com pany to guarantee maintenance of the water system until It shall be turned over to the settlers. The company insists that the new charge is just, because the original con tracts named too low a figure. They aver that cost of labor and material has so advanced that It Is Impossible to com plete the projects at $10 an acre. They cite that the Government will not be able to reclaim the land In Klamath fvr less than $40 an acre. It Is answered that the Government always spends more on ir rigation works than private companies, largely because aiming at greater per manency. Wagon and Railroad-Grant Grabs. Vast land grabs have been made in Oregon in the past by five wagon road companies and three railroads, which secured free gifts of the public domain. In not one case did the grantees keep faith with the Govern ment. They all used the land for their own enrichment, regardless of their pledges to the Government. The most conspicuous of them Is the Oregon & California Railroad Company, which obtained 6,000,000 acres, agreeing to sell It to actual settlers at $2.50 an acre. Ever since it hits denied the right of settlers to buy at that price and now refuses to sell 3,000,000 acres remaining of the grant. It Is now charged that similar tactics have been adopted by the Deschutes (Concluded on Page 2.) othe "Yon bad Fairbanks, Charlie; Taft NEW ID GRAB emu OREGON