Morning Oregonian. (Portland, Or.) 1861-1937, June 13, 1901, Image 1

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Morning Oregonian., June 13, 1901, Image 1

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Newspaper Page Text. " -UIBRAKY, B ..11 t . -yn:iana, - Ore Kpnm VOL. XLL NO. 12,637. PORTLAND, OREQON, THURSDAY, JUNE 13,. 1901. PRICE FIVE CENTS l!ll CIAAAAA,. SUfcLJk-4?2L4flm HW hu mj & "GARDEN HOSE" GOLD SEAL BADGER CONQUEROR INDIAN ELK i.a. ruftwnAouiu iic bUrUS IUU BECURB ONE Olv xtiXtOBi otxnmuo. GOODYEAR RUBBER COMPANY R. H. FCASB. President. P. M. SHEPARD. JR.. IreamrM. J. A. SHEPAKD. 8ecreUrjr. Shaw's Pure Malt America's ORIGINAL Malt WHISKY Without a Rival Today BllllliaUer "& HOC!., IOS and HO Fourth Street SHAYfS ffiHP Warm Air Furnaces FOR RESIDENCES, CHURCHES OR SCHOOLHOUSCS ON .THE' PACIFIC COAST. We have agents In all the principal cities of the Northwest; but if there's none in your town, write us, and we will mall you our latest catalogue. W. G. McPHERSON, Heating and Ventilating Engineer 47 FIRST STREET, PORTLAND, OREGON. HOTEL PERKINS Fifth and Washington Sts. . . . rORTLAND, OREGON EUROPEAN PLAN Pirst-Clns Cheelc Reitanrsnt Connected With Hotel. -1.DAV1E5, Pros. St. Charles Hotel CO. (INCORPORATED). FRONT AND MORRISON STREETS PORTLAND, OREGON American tnd European Plan. State Normal RESULT OFJACKSONVILLE FIRE New York Insurance Company Goes Out of Business. NEW YORK, June 12. As a result of losses sustained In the Jacksonville fire, one New York fire Insurance company retired today from. active business. When the Florida Ioes was reported, it was said that the Pacific Fire Insurance Company, of New York, had been hit hard, although the exact amount was not known. It de veloped today, however, that the com pany's losses as a result of ope fire ag gregated $S0.O00. and that late last night the company's risks were reinsured with the "Worcester Fire Insurance Company, of New York. The contract of reinsur ance went into effect today so that the Pacific, which ranked high among the smaller underwriting concerns, is no longer in business. The Jacksonville losses did not cripple the Pacific, for It had a surplus beyond all claims, but it re duced its marsInabo:ecapjtal tosuch an extent that the directors "decided to withdraw from, the field. The Pacific had more than $60,000,000 of Insurance in force, which will be protected under the terms of the reinsurance deal. ROOT FOR PRESIDENT. Mentioned as the Administration's Candidate. WASHINGTON, June 12. The action of President McKlnley relative to the third term has started a lot of premature Presidential gossip and more than half a dozen possibilities have been mentioned in the Eastern papers. Curiously, though, the man who Is most sure to be McKin ley's heir and who at present is looked upon as the Administration candidate for the Republican nomination is mentioned; this Is Elihu Root, Secretary of War. A man closer to the Administration than almost any other man in public life makes the positive assertion that Root is not only the candidate of the Administration but of the conservative element of the Republican party. He is regarded as the ablest man in the Cabinet, and the selec tion of one of the members of the present Cabinet would be further Indorsement of his Administration and would probably mean a continuance of the same policies and probably most of the present office holders. Governor Samford's Funeral. TUSCALOOSA, Ala., June 12,-Slmple funeral services were conducted over the remains of Governor William J. Samford today. The body was taken to Montgom ery on a special train and will lie in state at the capltol tomorrow. The inter ment will be at the Governor's home, Opelika, Friday. "GARDEN HOSE' TURTLE PIONEER ANVIL OBELISK NEPTUNE 73-7 FIRST ST. PORTLAND, OR. GOOD FROM END TO END. Beau Brummell THE BEST NICKEL CIGAR ON THE MARKET BLUMAUER-FRANK DRUG CO.. PORTLAND, OREGON Sole Distributers for Oregon Rooms Single 73c to $1.50 per day Rooms Double $1.00 to $2.00 per day Rooms Family 11.30 to $3.tK per day C T. BELCHER. Sc. and Trv American plan ........$1.23, $1.60. $1.75 European plnn 60c. 75c. $1.00 School, Monmouth, Or. Demand for graduates. The demand for graduates of the Normal School, during the past year, has been much beyond the supply. Positions worth from $40 to $75 per month. State Certificates and Diplomas: Stu dents are prepared for the state exami nations, and readily take state papers on graduation. Strong academic and profes sional course. Well equipped training de partment. Expenses range from $120 to $175 per year. Fall terms opens Septem ber 17. For catalogue containing full an nouncements, address P. L. CAMPBELL, President. Or J. B. V. BUTLER, Secretary. NOVA SCOTIA COMMERCE. New York Capitalists Seeking: Control It. to NEW YORK, June 12. The Mall and Express says: Capitalists of this city are reach ing out to control the commercial and lndustt-lal interests of Nova Scotia. The Vanderbllt millions are behind a gi gantic financial scheme, which has been Incorporated under the name of the Do minion Securities Company with a capital of $1,500,000, This is the first step in the direction of permanent control. of all the Nova .Scotia Transportation & Industrial Company, and the establishment of a splendid steam ship system between this city and the seaport towns of Nova Scotia. Dr. Wil liam Seward Webb has been made presi dent of the comoanv. and the directors are J John Jacob Astor, S. R. Calloway, Edgar j D. Petton and Percy Clement. Representatives of 'the company are al ready on the scene of the proposed oper- i ations and the first stretch of tracks of 1 the Cape Breton Railroad Extension Company Is being laid. Within four years 600, miles of track will connect Cape Bre ton with the best mining sections of the country. The company has secured the franchises, right of way, concessions and subsidies which the Dominion of Canada and also the Province of Nova Scotia will grant upon the fulfillment of Its under taking. The road now building runs from Yarmouth, at the southwestern end of Nova Scotia, northeasterly to Halifax, and from Port Hawkesbury, on the Straits of Canso, to Loulsburg and Sydney. The company will control the traffic through a section where the 'Dominion coal, iron and steel plants, in which W. C. .Whitney has large holdings, are located. It was learned on good authority today that this enterprise is a move made by the Vanderbllt railroad interests, which will be telt all over the world. It will open a new line for American commerce and fill the great coal sheds of the entire New York section with the almost un limited supply from the extensive coal mines of Nova Scotia. Maine Central Trackmen. PORTLAND. Me., June 12. The griev ance committee of Maine Central em ployes is in receipt of an official com munication stating that Canadian Pa cific engineers who operate trains over about 60 miles of Maine Central tracks have notified their employers that they will refuse to pull a train over the tracks unless they are patrolled by competent men. There has also come to the atten tion of the committee arumor that the Order of Railway Telegraphers here Is making arrangements again to agitate their grievances, which they failed to ad just a year ago. ACCEPTED BY CUBA Piatt Amendment Now a Part of the Constitution. VOTE WAS SIXTEEN TO ELEVEN United States Troops "Will Probably Be Withdrawn From the Is land the Coming: Summer. HAVANA, June 12. The Cuban constitu tional convention today accepted the Piatt amendment by a vote of 16 to 11. The resolution to adopt was carried without discussion. Immediately after the open ing of the session, Senors Tamayo, Vll luendas and Quesada, constituting a ma jority of the committee on relations, sub. mlttcd, as a substitute for t the commit tee's former report, the Piatt amendment as passed by Congress, recommending that It be made an appendix to the constitution. In the vote on the resolution the 27 dele gates present divided as follows: In favor of acceptance Senors Capote, Vllluendas, Jose M. Gomez, Tamayo, Mon teaguedo, Delgado, Betancourt, Glberga, Llorente, Quesada, Sangullly, Nunez, Rodriguez, Berriel, Qullez and Ferrer. Opposed to acceptance Senors Zayas, Aleman, Eudaldo Tamayo, Juan Gual berto Gomez, CIsneros, Silvela, Fortun, Lacret, Portuondo, Castro and Manduley. Senors Rivera, Correrosa, Gener and Robau were absent. The latter two voted against acceptance in the previous di vision. Senor Ferrer voted with the con servatives, explaining his change of at titude by asserting that he believed the acceptance would be the best solution of the problem. The convention will now ap point a committee to draw up the electoral law. WITHDRAWAL OF TROOPS. Soldiers Will Probably Be Brought Home During the Summer. WASHINGTON, June 12. The news of the adoption of the Piatt amendment by the Cuban constitutional convention was received with general gratification here. The Administration officials all along have felt confident that its ratification would be accomplished when the Cubans real ized that this Government was firm In its attitude regarding the amendment, and that its acceptance would be necessary be fore the United States would consent to withdraw its supervision from the islands Now that the Cubans have demonstrated their good faith in the United States it is expected that a fairly speedy evacua tion of the Island will follow, contingent only upon the establishment of a,ct&bh government hvthe island; 'Just"toha't extent the United States will require prac tical evidence of this fact is not defi nitely known, but the officials here think that such steps should be taken by the Cubans as will demonstrate their ability to maintain vorder arid peace, so that the interests of all the people, native and foreign, shall be adequately protected. An effective police force and other meas ures necessary to the preservation of good order and sanitation are deemed essen tial prerequisites in the formation of the new government The mere physical ques tion of the withdrawal of the American military from the island can be 'accomp lished without much delay. One Cabinet officer, speaking of the matter tonight, expressed the opinion that If the other requirements are met, our withdrawal might be accomplished during the Summer and that Cuban Independ ence might be a reality by next Autumn. General Wood today communicated to the War Department officially the fact that the amendment had been adopted. It Means Cuban Independence. BUFFALO, N. Y., June 12. Secretary of War Root tonight was shown the Associ ated Press dispatch from Havana an nouncing the adoption of the Piatt amend ment by the Cuban constitutional conven tion. He said: "If the Cuban convention has adopted the Piatt amendment, It has done the wisest and most patriotic thing possible for Cuba. It means the independence of Cuba and all that is best and freest In Cuba will be backed by all that Is best in the United States." When Secretary of State Hay read the dispatch he said: "As an old friend of Cuban Independence for the last 30 years, I am most gratified to learn that the Cuban convention has done what Is so clearly to the advantage of the Cuban people." WILL BE SETTLED LOCALLY Question of Hours Not Acted on by N Metal Trades Asoclation.' NEW YORK, June 12. The convention of the National Metal Trades Association continued its sessions today. The closing hours of the convention were devoted to the completion of organization and the final arrangement qt plans to strengthen the hands of the mimnfn..- turers In their fight against the striking machinists. The sum of $500,000 raised by asessment is to be placed at the disposal of a strike committee to be used in behalf of the employers. That committee is con stituted as follows: William Schwanhaus ner, Brooklyn; John W. Young Milwau kee; S. W. Watklns, Milwaukee; Charles W. Bliss, Ansonia; N. B, Payne, Elmlra; W. D. Sayle, Cleveland; Thomas E. Dur ban, Erie; William S. Lodge, Cincinnati; H. E. G. Gilbert, Scranton. Asked as to the use of this fund, W. J. Chalmers, chairman of the press commit tee, said: "I suppose we will use it as the strikers do to support their fellows, pay pickets and meet other general expenses. We used $166,000 in the Cleveland strike, where we paid some men a bonus of $4 a day. There are millions more if they are need ed. We have Just received a telegram from the Pacific Coast pledging 114 out of 135 firms to membership. We haye dele gates from San Francisco, Seattie and Portland, and the West is with us and we are gratified to receive their support. We seek no trouble, but propose to protect our interests and industries. We are suf fering no loss arising from delay on con tracts which we were fulfilling at the time of the machinists' strike, as all our contracts contal a strike clause releasing us from liability." The convention decided to make no definite declaration as to the length of a day's work, leaving the question to set tlement locally. After discussing the mat ter all the afternoon the following resolu tion was passed: "The declaration of principles makes the question of hours and wages a local issue. Resolved, That this association will support any regular member in his endeavor te conform to said declaration of principles." "This is a victory for the declaration of principles enunciated at Chicago," said Chairman Chalmers, of the press com mittee. "We have stuck to that declara tion all through and are now for it still. The. question of hours will be settled lo cally." After passing the resolution the con vention 'adjourned' and the affairs of the association with regard to the machinists' strike are in the hands of the finance and strike committees named this morning, subject to the general supervision of the admlnstratlve council. Sympathetic Strike Possible. NEW YORK, June 12. The Herald to morrow will say of the machinists' strike and the National Metal Trades Associa tion's recent action: "At the headquarters of the striking ma chinists in this city yesterday a cable dis patch was received from the Amalgamated Society of Engineers in London, promising financial aid. This -society is the strongest trades union in the world, and is said to have over $8,000,000 in its treasury. The American Federation of Labor, It was de clared, will tax its 2,000,000 members 10 .cents each for the striking machinists. Furthermore, it was announced last night CONSPICUOU3 CHARACTERS AT THE CAPITAL OF WASHINGTON. . ,'Y (fflL'Y" by thestrlke wSmmUteeof the NewYork; district lodge .of machinists that 'the lron molders, electrical workers, pattern-makers, toolmakers and metal-workers In gen eral had promised to go to the assistance of the machinists in the event of a com bination of manufacturers against the v strikers. It was asserted that a general J sympathetic strike of machinists on all railroads in the United States and Canada was among the possibilities. Strike Riot nt Rochester. ROCHESTER, N. Y., June 12. About 1000 men who recently struck work on i street improvement contracts paraded the streets today and attacked a gang of men who had taken work at the old rate of wages. Policemen drove off the rioters, who resumed their march and . caused the suspension of work on other , contracts. SUMMARY OF IMPORTANT NEWS, i Federal Government. Commissary frauds have been discovered at San Francisco. Page 1. The battle-ship Illinois is the fastest ves sel of her class afloat. Page 2. The Oregon has arrived at San Francisco from the Orient. Page 2. Philippines. Lieutenant Mitchell, of the Forty-third, was arrested for embezzlement. Page 2. Callles refuses to surrender, except on his own terms. Page 2. General MacArthur reports the Llpa en gagement. Page 2. Foreign. The Cuban convention accepted the origi nal Piatt amendment. Page 1. Extension of German Influence in Yangtse district alarms British press. Page 1. The Austrian Emperor visited Bohemia. Page 5. Domestic. Addresses and reports were read at th International Y. M. C. A. convention ! at Boston. Page 2. Testimony Important for the defense was ruled out in the Kennedy murder case. Page 3. The Shrlners will meet in San Francisco next year. Page 5. Sport. Portland won from Seattle, 8 to 5. Page 3. Tacoma shut our Spokane, 2 to 0. Page 3. Americans were 'again successful In the International trap shoot. Page 3. The Independence concluded her series of sail trials. Page 3. Pacific Coast. Washington Legislature adjourned after , amending capital punisnment law and passing three vetoed bills. Page 1. Eleven hundred butchers went? on a strike in San Francisco. Page 4. TifinalH AfpPhlnl. nromlnpnt 'EflJBtern Ore gon sheepman, was found dead by road- i side. Page 4. Thirty-four students graduated from Ore gon Agricultural College. Page 4. Commencement exercises of Whitman, Wash.; College. Page 4. Commercial. Portland market quotations. Page 11. Domestic and foreign commercial news and transactions. Page 11. New York stock market transactions. Page 11. Marine. High wheat freights cause an advance in nitrate freights. Page 10. Sailors scarce in San Francisco. Page 10. Two transport's coming to Portland from Manila. Pagell Chicago's trans-A"tIantic line a success. Page 10. r Portland jand Vicinity David McLouKhllh. ,'son of Dr. McLoutrhl lln, visiting Portland after 49 years ab- i sence. r age iz. - , W. E. Grace, oi',Baker City, elected grand master of Oregon Masons. Page.8. Collectors of bicycle tax dismissed'. on grounds of economy. Page 10. v ' Proposition to build railroad" rom Hepp ner to a coal find. Pgel0! r I Nattve Sons of Oregon in session. Pago 7. LEGISLATURE ENDS Three Washington Bills Passed Over Vetoes. SESSION LASTED TWO DAYS Most Important of New Laws Is That Abolishing; State Uniformity of Text-Books Capital PhhIs- ment Law Amended. OLYMPIA. Wash., June 12. The special session of the Washington Legislature ad journed this evening, after transacting considerable more business than that for which It was called, viz., the amendment of the capital punishment law. The most important feature of today's session was the passage of three bills vetoed by Gov ernor Rogers subsequent to the adjourn ment of the regular session last Winter. The Governor vetoed five bills altogether, and the Senate passed all of them over his veto. Two of the five failed of passage In the House. Without question, the mo3t important of the bills thus passed Is the Gunderson school-book bill. As has been explained in The Oregonian. this bill abolishes state uniformity of text-books, and provides for county uniformity, with the proviso that districts supporting a high school shall have the privilege of adopting their own books, not only for the high school Itself, but for grammar and primary grades as well, irrespective of the county adoption. Primarily, this bill is designed to break the contract held by the West land Publishing Company for printing the state's books. This contract runs for about four years more. The Gunder son bill does not seek to break this con tract directly, but provided a way by which the existing course of study may be supplemented, and that in certain cases substitutions may be made. Next in importance to the Gunderson bill was the bill taking the appointment of the state printing expert out of the hands of the Governor and vesting it io the State Printing Board, consisting of "the Governor, the State Auditor and the Secretary. Frank T. Houghton, of Taco ma, is the present printing expert. He is a Democrat, and was appointed by the Governor. His successor will be a Repub lican, as the Auditor and Secretary of State, constituting a majority of the board, are Republicans. The third bill passed over the veto was the one exempt ing vessels registered in this state from taxation. One of the bills which failed to pass over the veto was an amendme'nt to the pro bate law aimed at the Sullivan estate In Seattle, and the other was a minor change In the law relative to the collection of de linquent taxes. A curious fact in connection with the passage of the bill over the executive veto was that In many Instances they re ceived a less vote than was required to pass them originally. On the original pas sage of a bill it must receive an actual majority of all the votes in each House. In the Senate this Is 18 votes. On tho ofher hand, the constitution requires that a, bill to be passed over the Governor's veto must receive the votes of two-thirds of those present. Thus, the shipping bill was passed over the veto today by a vote of 17 to 7, whereas had the vote been on the passage of the bill originally, it would have lacked one vote of the requisite num ber. Despite this condition, however, no one has thus far questioned tho validity of the passage over the veto. It is said, however, that if the printing board re moves Expert Houghton, he will seek to retain his office by raising the point that tho vote on the passage of the bill over the veto was not large enough. In the main, the vote on the passage of the bills was on strict party lines. A bill was passed by both houses strik ing out all reference to the women com missioners in the Pan-American Exposi tion bill. If Governor Rogers signs this bill, it will effectually end the litigation now being carried on by Mrs. S. E. Barr, of Olympla, and Mrs. M. L. D. Hidden, of Vancouver, to enforce their recogni tion as commissioners of the exposition. The amendment of the capital punish ment law for which the session was orig inally called, was successfully accom plished. The Rands law was first repealed and then re-enacted with a saving clause which will permit the execution of crim inals whose crimes have been committed heretofore, and who are under sentence to be executed under the old law. Jn id 'ditlon to this, a general "saving clause" law was passed, which expressly provides that hereafter when any criminal statute is amended or repealed by implication, that such amendment or repeal shall not apply to offenses already committed. An amendment to the Jury law was also passed, which is aimed to correct the workings of that act in the larger coun ties of the state. . The bill to pay the expenses of the ses- slon was also passed. It carries an appro, prlation of $7500. Nearly all the members left for their homes on a special train tonight. GERMANY AND THE YANGTSE British Press Afraid She Will Extend Her Influence. BERLIN, June 12. The German Foreign Office does not desire to express an opin ion on the bitter tone in which the Lon don papers comment upon the fact that Germany will leave 00 men to garrison Shanghai, but the German press today unanimously disapproves of the British criticisms. "The hopes excited by British news papers will soon quiet down," says the Vosslsche Zeltung. "Their fear that the Germans will attempt to win as much trade as possible, not only along the Yangtse Klang. but everywhere else In the world. Is, however, correct. Do the British act differently? Is there not room enough In the world for all commercial nations?" "We understand the British astonish ment the less," says the Kreuz Zeltung, "because German troops have been In Shanghai 'all along, and because Ger- SENATOR ttLCj'-tR PREblDfcMT PRO TE.& many, by the terms of the agreement with Great Britain, is simply fulfilling a duty If she furnishes a part of the troops for the pacification of the Yangtze district. One would think that the Brit ish press had grounds for expressing thanks to the German Government for such a measure." "The British Press," says the Berliner Tageblatt, "seems to have forgotten the Anglo-German Yangtse agreement, by which terms each power Is mutually bound to exercise no exclusive rights In the Yangtse Valley, but to maintain the prin ciple of the open door. Therefore the ter ritory Is not a sphere of British Interest any more than of German interest." CHINA'S SPECIAL EMBASSY. Sending of Chun to Berlin Only Re cently Agreed Upon. BERLIN. June 12. The correspondent of the Associated Press is authoritatively informed that the sending of the special embassy, headed by Prince Chun, to Ber lin, formally to express Emperor Kwang Su's regrets at the murder of Baron von Ketteler, was only definitely settled upon during the last few days between the Chinese court "and the German Minister, Dr. Mumm von Schwarzenstein. The pre cise time the special embassy will start has not been decided upon. It certainly will not start tomorrow, but Its leaving China depends on when a steamer starts for Europe on which Dr. Mumm von Schwartzensteln will be able to secure accommodation commensurate with the rank of Prince Chun and the six members of his suite. The Lokal Anzelger today prints a spe cial dispatch from China which says: "Count von Waldersee Has changed his plans. He will return from Shanghai di rect to Hamburg, landing there during the first week of August. Thence he will go direct to Hanover. The Countess will spend July In Switzerland, and will meet her husband at Hamburg. Count von Waldersee's health Is excellent." The Only Practicable Scheme. WASHINGTON, June 12. Mr. Rockhill's proposition to submit the Indemnity ques tion to The Hague tribunal. It is now learned, carries with It the adjustment of tho total indemnity. Through a misun derstanding which, perhaps, was purpose ly created by some of the powers, the sum of 450,000,000 taels was supposed to have been agreed by all the powers as the total of the Indemnity to be demanded from China. As a matter of fact, there Is nothing official to show that the pow ers, or, Indeed, a majority of them, act ually made this n matter of formal agree ment. It Is true that China undertook to pay an Indemnity of 450,000,000 taels, but It Is equally true that this undertak ing, doubtless based upon the misunder standing above referred to, was at least in advance of a formal agreement among the Ministers themselves. Hence, Mr. Rockhill's proposition to Include the total of the indemnity in the matters to be submitted to The Hague arbitration. European criticisms based upon the idea that Mr. Rockhill's proposition as to arbi tration concerns only the method of pay ment are, therefore, founded on error. Tho hope that the arbitration plan will prevail Is based upon the belief that no other scheme so far brought forward Is sufficient. ' No Hitch Has Occurred. BERLIN, June 12. Contrary to news paper statements that a serious hitch has occurred in Pekln regarding the Indemnity question, It Is asserted In authoritative quarters in Berlin that negotiations are making satisfactory progress, and that there is nc doubt of an agreement being reached between the Ministers of the powers themselves and between them and the Chinese plenipotentiaries, even If the negotiations should be prolonged for a week or two more. Von Waldersee's Movements. YOKOHAMA, June 12. Count von Wal dersee will go to Nlkko Friday and come to Yokohama June 18, leaving the follow ing day to rejoin the German cruiser Herta at Kobe. MORE ARMY FRAUDS Shatter and Maus Unearth a Scandal at San Francisco, OFFICERS, HAY BE INVOLVED Commissary Stores in Great Quan tity Found in Second-Hand Estab lishments Arrests Made and Slore Expected. SAN FRANCISCO. June 12.-General Shafter and Colonel Maus. Inspector-General of the Department of California, and the Federal grand jury are. Investigating the many reports of fraud committed in the Commissary branch of the Army serv ice In this city. That the reports seem to be based on something more substan tial than Idle rumor Is evidenced by the disclosures following the arrest of Louis Abram and his son. dealers In second hand clothing. The extent of the alleged frauds has not been determined and then? Is a diversity of opinion on the subject. Captain Seymour, of the local detectivo force, who Is assisting the Federal grand jury, said today: "The Government has unquestionably been robbed for a long time past, and I believe the amount of the losses sustained by Uncle Sam through the treachery and dishonesty of some of his Army officers and others will reach Into the hundreds of thousands of dollars. The Federal grand jury has the matter of prosecution In its hands, and the secret service men are doing Its bidding, the police merely rendering assistance when such Is found necessary, and Is called for. I believe that arrests will be made, probably by tho Federal officers, that will startle the com munity." Major-General Shafter said that the matter has not been fully Investigated, but admitted that thefts of clothing have beenjjoing on. He claimed there was no shortage In any department, however. Ho continued: "I have no personal knowledge of this trouble, but it does not seem to amount to a great deal. Reerults, perhaps, or soldiers, being hard up, have sold to these peddlers about the camps shoes, blankets and other stores Issued to the forces by , the Quartermaster's department. It Is a military offense for soldiers to sell these stores, and a crime under the statutes for the peddlers to buy tnem, but the petty illegal traffic goes on. I am glad these fellows have been caught. If they aro guilty, for an example Is needed to stop the traffic." For months past various stores about tho city have been exhibiting signs: "Gov ernmentjsoods for sale here," and adver tisements have even been crowded Into tho dally newspapers. As late as this morning the following advertisement ap peared: "Wanted 1000 men to wear Government shoes; $1 a pair; 923 Howard street." Inspector-General Maus and a number of local detectives began some days ago the Investigation which resulted In tho arrest of Abram and his son George for buying and selling Government supplies. Their examination has been s"et for next Tuesday afternoon. Their ball was fixed at $500. Both Abram and his son deny the charge, but a second-hand dealer, Jacob Steveler, states that Abram sold him 20 pairs of Army shoes. Three big wagon loads of goods have already been taken to the Hall of Justice, and In every Instance the men from whom they were seized have admitted buying the goods from Abram and his son. From a statement made today It would appear that the frauds were not confined to clothing alone. It was stated that upon lnvesigatlon of the supplies furnished for the Army horses. It was found that the "rake-off" some people secured amounted to 200,000 pounds of grain. The Army offi cials are now making every effort to learn who profited by this extensive fraud. Late this afternoon Captain Seymour stated that the Government's officers had dlscovored large quantities of goods stolen from the Government. The goods were stored In a warehouse south of Market street. The property consisted of all kinds of military supplies. Captain Sey mour would not give the address of the warehouse. AFFAIRS IN NICARAGUA. New Water System May Be Provided for Managua. MANAGUA, Nicaragua, May 22. Bills of exchange on New York, which had been at a premium of 300 per cent in Nicaragua during April and up to May 12, have fallen to 210 per cent premium. There had only been a few buyers at the higher rate. The usual rate is from ISO to 190 per cent p'remlum. Christian Barrett, of the United States, Is here negotiating with the municipality of Managua for the Introduction of a sys tem for supplying the city with puro drinking water. The present water com pany pumps the fluid into Its reservoirs from the western margin of Lake Ma nagua, where it Is received by the flow of rain water, the filth washed from tho yards and streets of the city, even -the remains of dead animals, such as pigs, cats and rats being thus conveyedflnto the lake. Yellow fever is epidemic at Liberia, In Costa Rica, near the southern boundary of Nicaragua, and the government of tho latter country is taking measure's to pre vent spread of the disease to Jtivas and San Juan del Nofte (Greytown), Nlcar agua towns near Liberia. - Newspapers here declare Jrhat the Gov ernment of Nicaragua has Issued a de cree, not yet made public," permitting the Maritime Canal Company, of Nicaragua, "to collect at San Juan.'del Norte (Grey town), and San Carlos, All its utenslle and provisions before paying the duty on the articles." This decree evidently refers to the Isthmian Canal Commission, to which Nicaragua granted the right to in troduce, free of duty, all machinery, ma terials and supplies of food needed for the engineers and laborers. The surplus now In Nicaragua is to be collected at tho places named, "examined, listed and sold, after the duty Is paid, so that the Canal Commission can have a legalized list of the surplus In Nicaragua and a reliable sale of that surplus to report to tho United States Government. When the de cree Is published the name "Isthmian Canal Company of the United States" will appear instead of the "Maritime Canal Company of Nicaragua," referred to by the Managua newspapers. The Supreme Court of Nicaragua has decided that the London Bank of Central America has no legal standing in Nica ragua. The German bark Otilde, Captain Plate, has been wrecked on the rocks In Glgante Bay, near San Juan del Sur. The officers and crew were saved.