Morning Oregonian., May 14, 1902, Page 2, Image 2

THE MORKIKG OREGONIAN, WEDNESDAY, MAY 14, 1902.
HALFMILLIONVOTED
Senate increases Appropri
tion for Volcano Sufferers.
RAISED THE AMOUNT $300,000
Steirart, Discussing the Philippine
Bill, Warns the Minority Against
Continuing: Its Attacks on
the Army.
An additional appropriation of $300,
000 'was made toy tbe Senate yesterday
for the trtrlcken people of the French
"West Indies, In accordance with the
recommendation of the President that
$500,000 be appropriated.
The agricultural appropriation bill
was passed, and then Stewart, In sup
porting the Philippine bill, warned the
minority that no political gain would
accrue to them from their attack on the
Army.
The bill providing for the construc
tion at a union railway station in
Washington was under discussion.
T
WASHINGTON, May 13.-Soon after the
Senate convened today, Cullom, from the
committee on foreign relations, reported a
joint resolution appropriating $500,000, Including-
the $200,000 already appropriated, to
be expended under the direction of the
President in such manner as will most
promptly and efficiently relieve the
stricken people of the French "West Indies
and St. Vincent The resolution was
adopted without comment
Stewart chairman of the Indian affairs
committee, offered a Join resolution pro
viding that such part of the Indian ap
propriation bill recently passed as related
to the division of the northern district of
the 'Indian Territory into two districts
should take effect July 1, 1902. The reso
lution was passed.
At the request of Burrows, chairman of
the committee on privileges and elections,
the committee was granted permission to
sit during the sessions of the Senate.
Consideration was then begun of the
agricultural appropriation bill. All the
amendments were agreed to, and the bill
was passed without discussion.
Consideration then was resumed of the
Philippine Government bill, and Stewart
addressed the Senate in support of the
measure. He had listened to the debate
with surprise, he said, as It was more ac
rimonious than any debate he had ever
Kard. He could not understand why such
animosity had been excited, as our control
of the Philippines had been acquired
through the Spanish War, which was not
an act of any political party, but of
the Government itself, without regard to
party. Both parties were equally respon
sible. He did not believe in making prom
tees to the Filipinos. We had made prom
ises to Cuba that we ought not to haro
made.
"Cuba," he said, "ought to have been
ours as a result of the war. It will be
ours in time, without doubt I warn my
friends on the other side that there is no
political gain to be had from their attack
upon the Army."
Tillman inquired of Stewart why it was
Intended to give the Philippines the silver
dollar proposed in the bill to be coined.
Stewart said that from time immemorial
the Mexican dollar had been used as &
standard in the Philippines. The pending
bill simply provided the Filipinos with a
stable currency of a kind they had been
accustomed to.
Tillman twitted Stewart with a change
cf his views op the silver question. The
Nevada Senator warmly denied the impu
tation, and intimated that Tillman could
not understand the argument he had
made. His views, he said, had not
changed. For the present, at least the
silver question is deadr because the enor
mous output of gold has made good times.
If the Philippines were a great manufac
turing country, he said, he should hesi
tate to give them the coinage provision
Inserted in the pending bill, but in the
circumstances it was the proper thing
to do.
Lodge explained that the Philippine
committee, by inserting the free-coinage
provision in the bill, had made no change
in the monetary standard of the islands.
That standard was silver, the Mexican
dollar being the unit The islands were
in great need of a subsidiary coinage.
All that was attempted by the pending
bill was o substitute a dollar coined by
this Government for the Mexican dollar
now in use. The committee believed the
proposed dollar would perform the same
good office for our own commerce as the
Bombay dollar performed for English com
merce. Consideration of the measure providing
for a union railway station in Washing
ton was resumed, and it will be voted on
tomorrow.
The action of the House on the confer
ence report on the omnibus claims bill, in
declining further to consider the Selfridge
Board findings, and asking for another
conference on other items of the measure,
was discussed briefly, but finally went over
without action.
Cullom presented the conference report
on the Cuban diplomatic and Consular
bill. He explained that the House con
ferees had agreed to an amendment mak
ing the salary of the Minister to the Re-:
public of Cuba $12,000 a year, but that
they would not agree to the amendment
providing $2000 a year for the Minister's
bouse rent or for that making provision
for an additional Consul. The Senate
conferees therefore had yielded to these
two amendments. The reports was agreed
to.
Hoar inquired what title was given to
the Cuban Government In the bill.
"The Republic of Cuba," replied Cullom.
"I thought we had been told," facetious
ly remarked the Massachusetts Senator,
"that when the American flag once had
been rateed over a territory it would al
ways 'stay put "
The Senate at 6" P. M. went into execu
tive -session, and a few minutes later ad.
Journed.
IXCKEASE OF THE NAVY.
Chairman Foss Explains the Appro
priation Bill in the Home.
WASHINGTON, May 13. The naval
appropriation bill which provides for two
new battleships, two armored cruisers
and two gunboats, and carries a total of
$T7,C5O,O00, was taken up in the House to
day. Representative Fobs (Rep., lit)
chairman of the naval committee. In open
ing the debate, sounded a note of warning
against the over-confident belief that our
navy is Invincible. He declared that our
victories at Manila and Santiago were
due to the fact that we were contending
with an effete and decaying, nation and
that our strength far outmatched Spain
Jn those contests. Rlxey also spoke for
the bill, most of his time being given to
the argument for Government construc
tion of warships.
Tho conference report of the omnibus
bill was rejected on the ground that
claims' not considered by either branch
of Congress had been Inserted in the
measure by the conferees, and the mea
sure was returned to conference. The
conference report occupied considerable
time at the opening of the House. Un
derwood (Dem., Ala.) made the point of
order again6t the report that the conferees
had Introduced matter not authorized by
either branch of Congress, and extended
discussion followed on the point of order.
In making his ruling. Speaker Hender
son said there must be no abuse of the
prerogatives of a conference committee,
as that would open the dangerous path
way for the usurpation of the powers of
Congress by a committee. He held that
three entirely new items had been intro
duced Into the omnibus claims measure,
apd he therefore sustained the point of
order. This had the effect of rejecting the
entire conference report
Mahon (Rep., Pa.), chairman of the com
mittee having charge of tho measure,
promptly appealed from the decision of
the chair, and Underwood moved to take
the appeal. Coming from the Republican
side of the chamber, an appeal from tho
decision of the chair caused some surprise.
On being appealed to by bis associates.
Mahon withdrew his appeal from the
Speaker's decision. The matter continued
under discission for some time In con
nection with the return of the omnibus
bill to conference.
The bill was sent back to conference,
but the debate was protracted by Under
wood's motion instructing the conferees
not to accept the Senate amendment cov
ering the findings of the Selfridge naval
board for balances due on vessels built
during the Civil war. The motion to in
ctructprevalled on a rising vote, 67 to 54,
whereupon a yea and nay vote was taken.
The vote resulted 113 to 70 In favor of the
instructions to the conferees.
Tho naval appropriation bill was then
taken tip. The measure is one of the most
important of the supply bills and the last
of the regular appropriation bills for the
House to pass upon, save the general de
ficiency. It carries a total of $77,659,386,
and Includes provision for two new battle
ships, two armored cruisers and two gun
boats, one of. the larger ships to be built
In a Government navy yard.
Foss (Rep., 111.), chairman of the naval
committee, explained the measure in de
tail. He said that while we have 138 ships
built and building, yet comparatively few
of them have any real fighting value.
Most of those now building are what are
termed peace boats. Continuing, Foss
.fiaid:
"I know that there are some who think
that Just because we whipped Spain In a
fight of 100 days and lost only a single
life, we could wipe out the fleet of the
navies of the world. There is an impres
sion that the American navy is strong
and powerful. Yes, it is, so far as it
goes. I believe we have better' officers-,
better men, and that our ships, ship for
ship, are better than those of any navy
in the world. But do not let us delude
ourselves with the thought that because
we whipped a little nation, which had
only a little navy, that therefore, we can
whip anything that comes along. It would
have been then to our everlasting shame
if our two fleets at Manila and Santiago
had not sunk both of the Spanish fleets.
Why? Because they were superior; they
had greater tonnage, each of them. I
have a statement showing the relative
comparison of the two fleets at the battle
of Manila and the battle of Santiago, and
while I would not for a single moment
disparage the bravery and the courage
of the American officers and men, and the
value of our ships, both In tonnage, in
armament and in armor, superior gun
ners and superior marksmanship will win
in the future as they have won in the
pastT
Foss. while supporting the propsed plan
of building one ship in a Government
yard, pointed out the difficulties to be
encountered In additional cost of Gov
ernment construction.
Rlxey (Dem., Va.) strongly supported
the plan of Government construction of
warships.
The Senate bill, making additional ap
propriates for the Martinique sufferers,
was referred to the appropriations com
mittee. At 5 P. M. the House adjourned.
THE SUGAR INQUIRY.
Cuban Grower Heard by the Senate
Committee.
WASHINGTON. May 13. Hugh Kelly,
of New York, extensively interested in
Cuban sugar growing, was before the Sen
ate Committee on Relations with Cuba to
day. He asserted that the sugar grow
ers would be the beneficiaries of any re
duction made in the duty by the United
States. He said the refiners could not
control the price, and the sugar-mlll
owners would not benefit from the reduc
tion, except in cases where they owned
the land. He showed that many Amer
icans owned fugar lands in Cuba, but de
clared that few options were now accept
ed by Cubans because they wanted to
make sales outright. If at all. He said
sugar growing had not been profitable of
late years, because of the low prices of
the product and the high price of labor,
working men receiving a dollar a day In
gold. He discussed at some length the
possibilities of sugar production in Cuba.
Senator Piatt read a letter from Gen
eral Wood giving the last sugar crop at
756,000 ton6, instead of SS0.000 tons, accord
ing to a previous estimate. Of this
amount 160,000 tons had been shipped from
Cuba.
Mr Kelly gave the names of large Amer
ican companies which are producing su
gar in Cuba, giving the aggregate dally
maximum capacity of their mills at 1410
tons. Their actual output he placed at
not to exceed 81,000 tons annually, or
about 10 per cent of the yearly product.
He thought there were 115 mills In the
Island. Mr. Kelly said that every dollar
would go to the farmer from, the reduction
of the American duty on sugar. Most of
this benefit, he said, would go to the ten
ant farmer. In support of his contention
that the canegrowers would be the bene
ficiaries of a reduction, Mr. Kelly in
stanced .the condition in Porto Rico,
where, he said, cane is worth three times
as much as in Cuba. The witness said
that latterly the production of sugar in
Cuba had not been profitable. Reverting
to the benefits to be derived from a re
duction of the duty on sugar, Mr. Kelly
argued that the Cuban sugar planters
would be able to hold their product until
the refiners would have to buy it Mr.
Kelly said that free trade between the
United States and Cuba would mean a
trade of $300,000,000 each way annually.
"Do you believe," Senator Teller asked,
"that the United States could compete
with Cuba In the production of sugar with
Cuban sugar on the free list?'
"I am not in the sugar business, in the
United States. I only know that the beet
sugar princes, the Oxnards, announced
some time ago that they were In a posi
tion to so compete."
Presidential Nominations.
WASHINGTON. May 13. The President
today sent the following nominations to
the Senate:
Consuls Benamln Johnston. Iowa, at
Celba, Honduras: Samuel S. Lyons, New
Jersey, at Kobe, Japan; Alfred M. Moe,
New Jersey, at Tegucigalpa, Honduras,
William Martin, New York, at Nanking,
China; Henry H. Morgan, Louisiana, at
Lucerne. Switzerland. v
Consul Generals Hugh PJtcalm, Penn
sylvania, at Hamburg: Soren Listoe, Min
nesota, at Rotterdam; Jamce H. Worman,
New York, at Munlclu
Secretary of Legations Gordon Pad
dock, New York, at Seoul, Korea.
Revenue Cutter Service First lieuten
ants to be captains Frank G. Wadsworth.
Massachusetts; Walter S. Rowland, Mas
sachusetts; A. P. Kanks, Wisconsin; Will
iam Cusblng, New York.
Army (Infantry), captains to be majors
James B. Goe, Thirteenth; Hunter Lig
gett, Fifth.
First lieutenants to be captains Henry
M. Dlckmann, Seventh; Halsted Dorsey,
Fourth.
Post Quartermaster-Sergeant I
A.
Campbell to be Second Lieutenant
Retirement of Sternberg:.
WASHINGTON, May 13. The House
committee on military affairs today or
dered a favorable report on the bill to re
tire SuTgeon-General Sternberg, with tho
rank of Major-General.
Nominations Confirmed.
WASHINGTON, May 13.-ConHrmatlons
by the Senate: G. A. Robethan, Receiver
of Public Moneys, Blackfoot, Idaho; L.
R. Thomas, Register of Land Office at
Blackfoot, Idaho.
NOT GIVEN PROPER FOOD
EX-SOLDIER'S COMPLAIXT OF ILL
TREATMEX'r IK PHILIPPINES,
Found Xo Fanlt With His Rations,
Hovrever, When Served In the
Senate Restaurant.
WASHINGTON, May 13.-George G.
Boardman, formerly of the Twentieth- In
fantr continued his testimony before the
Senate Philippine committee today. He
said that the natives in Batangas, where
he was stationed, 'became very bold and
threatening after the Balanglga massacre,
and intimated that the troops would be
served likewise. It needed an order euch
as General Smith gave to make the na
tives realise that the United States meant
business. He said the men in the Philip
pines knew that "war was hell," and "the
boys were going to give the Filipinos
hell" while it lasted. He eald the sol
diers did not like Governor Taft, but did
like General Chaffee.
Mr. Boardman eald that before the order
of General Jacob H. Smith to kill and
burn, tho soldiers of his company, being
In euch constant fear of massacre, would
suddenly awake and in their fright ex
claim: "Get 'em, boys; get 'em!" After
UNITED STATES CONSULATE AT.ST. PIERRE,
DESTROYED IN THE MARTINIQUE DISASTER.
General Smith Issued his order, he said,
tho natives for tho first time understood
that the Americans meant what they said
and the troops felt safe. The difficulty,
he said, was because a certain order by
General Otis for the killing of outlaws
never was executed, and this made the na
tives boldin their resistance. They all de
plored the death of Luna, but hailed with
delight Agulnaldo's capture. The witness
said that Filipino prisoners were treated
too good so much so that they preferred
to remain prisoners to being sent back
among their people.
The general course of conduct of Amer
ican officers and men toward peaceful
Filipinos, he said, was humane. The men,
however, were discouraged on account of
the food they got, and officers would not
object, when the men were hungry, to
their going into a house and taking food.
"The whole tendency of the Army," said
the witness, "was to make the men any
thing but pleasant toward the natives.
They used tho gun to shoot rather than
to preach the gospel with."
Senator Beverldge created a flurry by
asking the witness If he had talked with
any Senator since he was last on the
stand. Senators Patterson and Carmack
vigorously objected to what they termed
an uncalled-for reflection on the minority.
"When there is an imputation made by
me, it will be made directly," answered
Senator Beverldge.
The witness declared that he had talked
with no members of tho committee, and
the matter was closed.
Responding to a question by Senator
Carmack. the witness said that hard and
continuous service in the Philippines and
the poor food the men received made them
morose and In a vindictive temper.
"As for myself," eald he, "I will say I
have less u?c for the United States Army
than I ever had before, because of the
way I was treated."
He then threw on the table a can of
salmon and a can of condensed food tab
lets, which, he said, had been Issued to
him as his meat Just before leaving the
Army, which he eald he refused to eat
becaure it was spoiled.
In one case of wuter cure which he had
witnessed in Batangas, In 1S01, he said,
the natives received no harsher treatment
than being badly scared, and the treat
ment had the effect of making them
promptly give information regarding Che
whereabouts of guns. k
The witness described the receipt of
counterfeit dollars in the Philippines from
a Hong Kong financial concern, but flatly
refused to say that the bank knew the
money was counterfeit He declared that
there was an order that men who passed
counterfeit money wore to be arrested, and
that two natives had been arrested. He
said he took money to the bank referred
to, to be changed, and received two coun
terfeit dollars- "You can call it 'passing'
counterfeit money if you want to," he
said, "but I received the two dollars."
Questions by Senator Beverldge devel
oped the fact that the witness had de
clined, after his discharge, to raturn to the
United States on a transport, but had
made the Journey homeward via the Suez
Canal. "In order to see the country." His
claim for reimbursement was disallowed
by the War Department,
After Mr. Boardman had concluded his
nHmnnv R-Titn THt-frVi tt Viv wm
testimony, Senator Dietrich, of the com
mlttce, sent the two samples of food which
Boardman had left In the committee
rooms, and which he had declared he
would not eat under any circumstances,
to the Senate restaurant, requesting that
they be prepared for the table. The
canned salmon he had made into a salmon
salad, and the prepared food was used in
the preparation of a soup. Mr. Boardman
then was invited to luncheon with Senator
Dietrich, Senator Beveridg being the sec
ond guest The salmon salad and soup
made of the compound supplied to tho
Army wcro the two principal articles on
the bill of fare, and both appeared in
very tempting form when upon the table.
Senators and soldier-guest were all helped
equally and bountifully to both dishes, and
all ate heartily cf them. The Senators
kere, of course, familiar with the Ingredi
ents, bin Mr. Boardman did not know
so much, nor has he yet been told the
secret of his invitation to lunch with the
two United States Senators: The Senators
declare the food was very palatable, and
they agree that Mr. Boardman's objec
tions to the ration appear to have van
ished when the food was served. to hlra
today. -
A Wholesome Lesson.
WASHINGTON, May 13.-General Chaf
fee, has made the following cable report
to the. War Department of the progress
of fne negotiations with, tho Dattos in
Mindanao:
Manila. May 13. Been here past three
days studying situation with Brigadier
General George W. Davis. Think, two
battalions should come If they can be sup
plied. Genassl trail very difficult but an
other trail promises much better. Think
withdrawal from lake would seriously
Jeopardize safety of weaker Dattos; would
have given friendly assistance, but be
lieve that if we remain the more power
ful dattos will come In when it Is appar
ent our mission is friendly. From pre.ent
indications, further hostilities will not be
nccessaryi unless provoked by Moros.
Bayan caused much astonishment; was
extremely neccesary as wholesome lesson,
which do not think will have to be re
peated. Some Dattos very suspicious and
offensive.
"The lake country is beautiful, and more
suitable for the occupation of Americans
than any part of the archipelago. Eleva
tion and climate perfect, comparing favor
ably with any valley of the Alleghenles."
FIENDISH CRUELTY.
Ontlnvrs Tortured and Killed Three
Members Philippine Constabulary
VICTORIA B. C, May 13. A band of
50 outlaws, armed with rifles and bolos,
attacked five members of the Philippine
Constabulary (natives) on the main road
between Bulusln and Barcelona, In the
Province of Sorsogon. The Inhuman
wretches, reports the Manila Times, cap-
tared three of the constabulary, tied them
hand and foot gouged out their eyes
with sharp wood sticks and then, placing
them in the burning sand, with the sun
kbeating Into their eyeless sockets, com
mencing at their feet cut them into
small pieces with bolos, adding every pos
sible feature of barbaric torture except
burning. The other two members, of the
constabulary escaped to, Sorsogon. when
nearly dead from an awful rice of 10
miles.
When the attack was first made the
constabulary hurried a hot fire Into tho
band. Several outlaws were seen tb fall
and they were held in check for several
minutes, but tho force spon realized thit'
thoy had only one chance to rave their
lives, with such overwhelming numbers
against them that of flight Only two
were equal to the emergency, and they es
caped only by leaving their arms and am
munition. A detachment of the constab
ulary left Sorsogon as soon as the men
reached there. On reaching the scene of
the attack, the only evidences left of the
struggle were small pieces of human flesh
and bone, bearing a mute record of the
awful fate of their companions In arms.
Disposition of Philippine Troopa.
WASHINGTON,1 May 13. Adjutant-General
Corbln has received a cable message
from General Chaffee in regard to the dis
position of the troops now in the Phil
ippines. It shows that the army is dis
tributed at 5 stations, averaging a little
more than me company to a station,
whereas. Ma; 31. 1901. there were 463 mil
itary station j In the archipelago, averag
ing less tlw.n a company to the station.
Tho recent withdrawal of troops from the
Philippines Is indicated by the statement
that there are now only 271 companies at
245 stations, as compared with 40S com
panies of troops at 469 stations in May of
last year.
Petitions Aftalnst TVIthdraxral.
MANILA. May 13. Within the last few
days petitions against the removal of
American troops have been received from
16 towns and villages. The reason for
these petitions is said to be fear of ban
dits after the troops have left It Is be
lieved In some quarters that the petition
era are more probably influenced by a
d"6re to retain the trade of the American
soldiers in the places in question than by
fear of robber depredations.
THREATENS TO RESIGN.
Nixon "Will Give Up Tammany Lead
ership f He Cannot Direct Affair.
NEW YORK, May13. Lewis Nixon de
clared in an interview with an Evening
iPost reporter today that he will resign
the leadership of Tammany Hall If he is
not permitted to direct affairs of the or
ganization in his own way. The declara
tion was made In a talk about the action
of the Tammany Society's Sachems last
night in dividing on the question of al
j lowing the prand sachem, Mr. Feltner, to
, hold over for another year. Mr. Nixon
had recommended that Feltner be kept In
office, but six of the twelve cachems pres-
. ent, headed by John F. Carroll, would not
I .. tt.-, -.. ' . i
accept Feltner. Action was postponed
for a week. Questioned today about the
matter, Mr Nixon said:
"I favored the retention of Feltner as
grand sachtm. I believe that no change
should be made in the organization of tne
Tammany Society. I am doing my best
for Tammany. I want to restore the or
ganization to power. If I find I cannot do
what I think best, then there is only one
thing for me to do to go."
Will Report on the Disturbances.
ANN ARBOR, Mich.. May 13. Professor
Israel C. Russell, of ' the geological de
partment of the University of Michigan,
has been appointed by the board of mana
gers pf the National Geological Society to
go to Martinique to make a report on
the seismic disturbances there He will
be one of a party on the cruiser Dixie.
The Bent Liniment.
'I have derived great benefit from the
use of Chamberlain's Pain Balm for
rheumatism and lumbago," says Mrs.
Anna Hagelgans, of Tuckahce, N. J. "My
husband used It for a sprained back and
was also quickly relieved. In fact, it is the
best family liniment I have ever used. I
would not think of being without it I
have recommended it to many, and they
always speak very highly of it and declare
Its merits are wonderful." For sale by
all druggists. .
VALUE OF BRANCH BANKS
DISCUSSED BY FINANCIERS' COX.
VENTION AT KANSAS CITY.
Horace "White' Arjrument In Favor
of the Policy H. W. Yates, of
Oniahn, Speaks Against It.
KANSAS CITY, Mo., May 13; The
Bankers' Association cf Kansas, Missouri,
Oklahoma and Indian Territory met in
Joint convention here today, and with
many Eastern financiers of note present.
listened to addresses on various topics.
FJve hundred delegates attended the ses
sions, which will be continued tomorrow.
Thomas B. Patton, of New York, editor
of the Banking Law Journal, delivered an
address before the Mlssourlans on "The
Evolution of Banking Law."
Banking: Law.
Mr. Patton spoke on the laws which
govern the business dealings of bankers
not so much the laws which govern the
organization and powers of banking cor
porations, as those laws which govern
the Instruments of trade in which bank
ers deal; the bills, notes, checks and other
instruments representing money and the
documentary securities representing prop
erty values which constitute the bone and
the sinew of the mercantile wealth of the
country, and which It is 'the peculiar of
fice of the banker to deal in and to make
effective. He showed that the formation
of the law governing bills, notes, checks
and the dealings of bankers is the result
of a peculiar process; It consists of a body
of rules which have been built up piece
meal by Judicial decisions founded on cus
tom. It has been tleveloped out of the
disputes of men. The process originated
in England and has continued in the var
ious states slrce the American Revolu
tion. At occasional periods In this process
of Judicial rule-bulldlng, there have been
statutory enactments providing rules on
this or that particular point of commer
cial law.
Mr. Patton traced in detail the evolution
of this process from its starting point In
England, in the customs of merchants es
tablished 600 pears ago, and showed how,
when this country came to be established
Into a Nation of Independent states, the
process was continued independently in.
each of the states and territories of the
Union. The result has been the establish
ment of many Independent systems of
state laws, statutory and Judicial, gov
erning banking and the Instruments of
commerce, whereas the subject governed
is not confined to state lines, but is Na
tional in its scope. The speaker pointed
out many Instances of conflict of state
laws and showed, as the result of the
present condition of the law, made up so
largely of Independent and antagonistic
state rules, that great losses are caused
to the mercantile and banking community
and that commercial transactions between
the states are hampered.
Of late years the condition of the law
governing bills, notes and checks, when
used In interstate dealings, has been Im
proved by the enactment of the uniform
negotiable Instruments law, which, up to
date, has been enacted In 17 of the states
and territories, besides the District of
Columbia. The Improvement and unifica
tion of the law, which enter Into the In
terstate dealings of bankers and mer
chants, must be hoped for In the course
of time, when all the State Legislatures
act in uniform accord, and when all the
Judges come to think alike.
Branch Banking'.
In the afternoi) all the associations met
In Joint session on the Missouri side. The
topic considered was "Branch Banking,"
and Horace White, editor of the New
York Evening Post and Henry W. Yates,
of Omaha, president of the Nebraska Na
tional Bank, were on the programme for
addresses. Mr. White said in part:
"There is a wide diversity of opinion in
this country as to the advisability of
branch banking, and this diversity exists
largely among bankers themselves. The
doctrinaires, tho college professore, tho
economists, are generally in favor of
banking. They are not, however, so far
as I know, In favor of forcing that sys
tem upon the National bankers against
their will. Patriotism is not concerned In
promoting it. Some people think that
patriotism is concerned in opposing it. and
that branch banks, if permitted to exist,
will destroy American liberty. SUch per
sons do right to oppose it .
"Those who think that it would be, on
the whole, a wise policy for the country,
agree that they have no special claim
unon the nubile attention, and I for one do
not believe that branch banking will ever
be adopted by Congress until the ma
jority of bankers acquiesce in it Never
theless. I believe that It will come, be
cause I believe that it will be economical
and profitable to all banks In both city
and country, and that It will extend and
enlarge instead of crippling their business,
and that after trying it they will wonder
why they were ever opposed to It"
Mr. White th. n reviewed the branch
banking system in the early United
States, In Canada, Scotland, France ana
Germany. He continued:
"It may be said that if branch banking
were permitted, the. large banks would
open branches In the small towns and
take away the business of existing banks.
They could do so only by offering loans
at lower rates to the business commu
nity, or by giving them better terms in
exchange for their deposits. Competition
is always Insolvent, and we need not ex
pect to make It look attractive to any
class, whether bankers or others, but
competition is not to be avoided by pre
venting branch banking under the Na
tional system. New state banks are start
ing up all the time In places where Na
tional banks exist
"This, however, is only a symptom of
mightier development In the way of bank
extension now golnp on. During the pa;t
six months, there has been much quiet
absorption of small banks In New York
City by largo ones, but latterly the pro
cess has been extended to banks outside
of the city and outside of the state. Not
only so, but some banks far distant from
each other have been exchanging shares
through the persons of men who own con
trolling Interests In each.
"I presume that branch banking In this
shape.ls robbed of much of Its terrors to
the small banks. The next thing that will
happen, probably, will be that the little
banks thus cheerfully converted into a
branch will establish an office In some
small place which now has no banking
facilities at all.
"An objection urged against branch
banks Is that they will draw away all
the money from the small towns and use
it In large cities. This objection Is not in
harmony with the one which says that
the large city banks will send so much
money Into the smaller towns through
the branches and will lend at such ,low
rates that existing banks cannot make a
Ihlng. We might leave these two classes
of objectors to neutralize each other, but
my opinion Is that the flow of capital to
and from the small town under the
branch system will bear pretty close rela
tion to the demand: drawing awiy money
from the small town when there Is a local
use for it would soon bring tho branch tc
an end. My belief is that more monev
would go from the large city to the small
town through oranches than does now In
the shape of rediscounts of the paper cf
Independent banks.
"A third objection against branch bank
ing "urged with some plausibility Is that if
It is permitted, all the banks will be con
solidated into a gigantic trust, sothat no
body can get any money except on terms
dictated by ft few powerful magnates. In
reply to this, we might point to the ex
amples of other countries where branch
banking has. full swing, and where there
Is not the smallest sign of a 'money trust,'
although trusts and monopolies In other
trades are plentiful. On the contrary,
the sharpest rivalry exists and the rate of
Interest there tends downward rather
than upward. This happens, toe, In coun-
. . ,.. T
uics wnero note issuing is a mauuiju,j
by law. Money cannot be monopolized.
You never could get an agreement of
bankers to attempt it but If they did so,
the combination would not last a meek.
"Within a comparatively brief period
the bonded debt of the United States in
all probability will have been wholly re
deemed and cancelled. It Is not likely
thnt the Nation will continue for an In
definite period to pay interest on a debt
of which It might easily pay the principal.
Such a policy would be unjust to the tax
payers and could not fall to meet public
condemnation. So the problem Is not
merely how to make notes Issuing under
the present system a little more profitable,
but how to keep the system going at all.
It cannot be done except by using other
securities than United States bonds. To
use Inferior securities, like municipal or
railroad or 'Industrial' bonds, would re
quire the exercise of discrimination on
the part of the public officers in the se
lection of them, and would thus open the
door to political Influence in making the
selection. Moreover, the best Judgment
of the most impartial Controller of the
Currency would at times be at fault, as
was frequently the case under the state
system of boid-secured currency before
the Civil War.
"How to meet the approaching crisis is
the chief banking problem of the present
day. Any plan for obtaining a real credit
currency a currency based upon the as
sets of the banks must have regard to
the traditions, habits and exporlence of
the American people. The smallest change
consistent with the end to be achieved
will be the one most likely to succeed.
"The advantages of branch banking are
briefly theser Other thing3 being equal.
two banks Joined together are stronger
than one, and three are stronger than
two. For this reason the public will have
greater confidence in a union of banks
than In the same number of banks taken
separately. Eranch banking would, there
fore, Improve the credit of the banks so
allied and increase their deposits. Branch
banking Tkould reduce the expense of
banks and accrue to the customers In the
form of lower rates of Interest; it would
tend to uniform Interest rates; It has the
advantage of extending to small places
the security assured by the strength of
the parent institution; it affords facilities
for communicating knowledge of the rela
tive needs of business In the different lo
calities. Branch banking 1b bound to
come; you cannot stop it"
Faults of the System.
Henry W. Yates, of Omaha, spok In
opposition to branch banks, saying in
part:
''We are all conscious of the weaknesses
which prevail in our banking system, and
we axe desirous of having them, removed
and the system strengthened and Im
proved In any manner that good Judg
ment and wise experience will dictate.
But it does not follow from this that we
should conclude that our banking system
is so utterly bad that the only remedy for
tho situation is its entire extinguishment
and the creation In its place of another
system. This ig what I believe would re
sult from the passage of a law which
would establish among us the monarchical
British and continental systems of large
central banks, with numerous branches.
"Two features of the bill reported by
the banking and currency committee of
the House freedom from capital and
from taxation would seem to settle the
question against the Independent banks.
Tho system, as proposed would destroy
them.
"Judging by the actual work performed
and service rendered, the conclusion is in
evitable that" the American system of
banking, notwithstanding It Is admittedly
Imperfect, has shortcomings and weak
nesses whloh In time may all be remedied,
is superior to any system of banking in
the world. This so-called reform in bank
ing is proposed and urged by well-meaning
men, but men who In almost every
case will be found to be guided solely by
their environments and not by any experi
ence obtained along the lines of this
strenuous life, to which is due the exist
ence of our American banking spstem.
"The passage of the pending bill, by
destroying the harmonious relations which
now exist In our banking world, and by
threatening the existence of our present
organized banks, would not only be disas
trous to the banks concerned, but it would
be a National calamity."
Following these papers there was a gen
eral discussion on the subject, Dennis T.
Flynn, vice-president of the Noble County
Bank. Perry, O. T., being among those
who took part Tonight an elaborate re
ception was tendered at Convention Hall.
Judge John F. Phillips, of the United
States District Court, delivered the address
of welcome.
OFF FOR THE PRESENT.
Danish Parliamentary Committee
Deadlocked on Treaty.
COPENHAGEN, HSfay 13. The indica
tions are that the conference committee
of the Danish Parliament, which is con
sidering the Danish West Indle3 treaty, is
now hopelessly deadlocked, the opposi
tion refusing the utmost concessions which
it is possible for the Ministry to offer.
The disagreement .continued throughout
the meeting of the committee tonight,
and the matter will necessarily go over
until September. . This will necessitate an
extension of the ratification time limit,
which expires July 24. Much indignation
has been aroused by the obstructive meth
ods of the Landsthlng.
Delarey's Forces Reduced.
LONDON, May 13. The weekly report of
Lord Kitchener received today shows that
19 Boers were killed, six were wounded,
S2 were made prisoners, nine surrendered
and 60 rifles, 157 wagons, 400 horses and
4300 head of cattle fell Into the hands of
the British.
General Ian Hamilton's columns have
arrived at the Western Railroad, after
sweeping the Llchtenberg district of the
Southwestern Transvaal. These troops
brought In 357 prisoners and practically
all the wagons and stock of the Boer
commandoes in that district This makes
a reduction In General Delarey's forces
of SCO men since he defeated Major Paris
at Rovleralnsfonteln, March 8, and cap
tured General Methuen.
Did Not Find Rebel Fleet.
PANAMA, Colombia, May 13. The Co
lombian gunboats Boyaca, Chlculto and
Clapet, commanded by General Jeffrlee,
a native of the United States, which sailed
May 5 from this port, returned here this
morning with a few prisoners captured
at Montijo Bay. Jeffries caused the coast
from Panama to Chirlqui to be searched,
but found no signs of the revolutionary
fleet.
Conirrefwional Nomination.
CHICAGO, May 13. Philip Knopf, Clerk
of Cook County for eight years, was nom
inated Republican candidate for Congress
from the Seventh District here today
FORT DODGE, Iowa May 13. J. P. Con
nor, of Denlson, was nominated for Con
gress by the Tenth District convention to
day. Revolution Promised In Ecuador.
PANAMA. Colombia, May 13. It is re
ported here that General Alfero, the ex
Presldent of Ecuador, is preparing a rev o
lutlonary movement against President
Plaza, of that republic
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MAY SAVE RATHBONE
PRESIDENT
ORDERS REVIEW 'OP
HIS CASE.
Cnban Criminal Law Will Be Amend
ed Before the Transfer to Per
mit the Proceedings.
WASHINGTON, May 13. The President
has directed Secretary Root to confer
upon the Cuban Court of Appeals the
right to review the testimony In the case
of Estes G. Rathbone. convicted of com
plicity in the Cuban postal frauds, with
authority to take additional evidence if
It so desires. This authority will .be im
mediately conferred and It is presumed
the court will act at once.
There Is not now, under the Cuban law,
means of taking an appeaMo the Supreme
Court In cases where- there has been an
error in procedure in the lower dburt To
make it possible to review Rathbonc's
case, therefore, General Wood has been
ordered to promulgate a special modifica
tion of existing law, which, by the way,
also will fit the cases of any other persor3
.convicted under conditions similar to that
of Rathbone. By promulgating this law
now, and before the Cubans assume their
own administration. General Wood will
cause it to become the law of the land,
under that section of the Piatt amend
ment which continues in force the laws
as they are left by the American military
administration. In his order to General
Wood, Secretary Root reviews the state
ments made by Rathbone's attorneys in
their petition for a new trial, and says:
"It has been found Impossible as yet to
give the full consideration require by the
arguments presented, but In view of the
fact that the Constitution of Cuba, about
to take effect, will exclude the President
of Cuba from the pow er to pardon 'public
officers who have been convicted of crimes
committed In the performance of their
duties,' the President deems it desirable
that no doubt should be left of the -power
of the Supreme Court to review convic
tions in such cases upon all questions af
fecting the defendant's substantial rights.
It is the general rule In this country that
a defendant In a criminal case shall have
at least one full review of such questions
by an Impartial tribunal other than the
trial court, and the practice should be
embodied in the law of Cuba before we
leave the Island, particularly In view of
the fact that citizens of the United States
may ba left there subject to convictions
to which no such review has been had,
and to which there may result no par
doning power. You will, accordingly, pro
mulgate an amendment of the law of crim
inal procedure, substantially in accord
ance with the draft enclosed herewith,
providing for a full review by the Su
preme Court In such cases of all questions
of law, fact and procedure, and authoriz
ing In broad terms such Judgment by the
Supreme Court as Justice may require."
The amendment to the law of crlmlnil
procedure which the order submits pro
vides for review by the Supreme Court of
all questions of fact, law and procedure,
and confers authority either to confirm the
sentence, dismiss the proceeding, award
a new trial or make such other Judgment
or order as substantial Justice shall re
quire. The Supreme Court is further au
thorized to take any additional evidence
which it deems necessary in the Interest
of Justice.
AIRSHIP FLIGHT.
Long-Distnncc Race Front St. Louis
to Wanhington.
ST. LOUIS, May 13. A long-distance air
ship flight from St. Louis to Washington
will be one of the features of the aerial
tournament at the World's Fair. This
fact was made- public tonight as a part
of the programme which has been ar
ranged by the committee. The prize will
be awarded to the airship which makes
the first landing nearest a fixed point In
the Nation's capital. This test Is Included
within the list of subsidiary events cov
ered by the appropriation of $50,000. The
grand prize of $100,000 will be contested
over a figure "S" course, not less than 10
miles, nor more than 15 miles In length.
Service on Packing Compnnles.
KANSAS CITY, Mo., May 13. R. K.
See, Marshal of the Missouri Supreme
Court, has obtained service on the Ar
mour Packing Company, of Chicago, In
the quo warranto proceedings which are
to be heard in the Supreme Court at Jef
serson City soon. Marshal See today also
got service on the Cudahy Packing Com
pany, Swift & Co., the Hammcnd Packing
Company and the Henry Krug Packing
Company at St Joseph.
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improper feeding and a typi
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It is these things that ac
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