VOL. XLIV. NO. 13,745.
PORTLAND, OREGON, WEDNESDAY, DECEMBER 28, 1904.
PRICE FIVE CENTS.
VOTE . HILLS
Taxpayers Also Grant
New High School.
TEACHERS GET MORE PAY
Levy of .6 Mill Made to In
crease Salaries,
BOARD'S REPORT IS ADOPTED
Bond Issue of $100,000 Is Authorized
to Erect Stone High School
Building on the East
Side.
2CETT HIGH SCHOOL-Resolutlon In
troduced by Thomas Hyslop adopted
unanimously. Softool to be of stone,
costing f 100.000, and located on East
Sid, adjoining: Central School. Bonds
to be Issued to pay for building-.
TEACHERS SALARIES Board's sug
gertton of .0 mill to provide asked-for
increase accepted. Matter of distribu
tion left to board.
ADDITIONS AND NEW SCHOOLS
Suggestions contained In board report
accepted. One new building will be
erected and necessary additions built.
TAX LEVY Total tax levy for schools
Is 6.C mills.
The meoting of the taxpayers of District
No. 1 In the assembly hall of the High
School on Fourteenth street, last night,
was a most enthusiastic one and replete
with many lively debates jn which sar
casm figured conspicuously.
The question of granting the asked-for
Increase in salaries to teachers and the
provision for a new High School structure
were the only matters discussed at length,
but these were sufficient to lead many of
those present Into heated controversies.
The Introduction of ifr. Hislop's reso
lution for a $100,000 High School bond
Issue -was tba occasion for. much discus
Eton, end, although strongly opposed by H."
"Wittenberg, Jt was carried with much en
thusiasm. The .6-mill levy to Increase
teachers salaries was also carried.
The reading of the clerk's report opened
the meeting. This was followed by the
reading of the board report by Mrs.
Charles E. Sitton, who presided.
Champion Teachers' Cause.
Joseph N. Teal arose and proposed that
the report bo adopted. Ho was no sooner
seated when Samuel Connell took the
floor and proposed to raise the recom
mended tax levy of .6 mill for the purpose
of raising the teachers' salaries to 1 mill
making the total levy for the school de
partment 7 mills.
His suggestion called for much applause,
particularly from among the teachers and
their friends present.
Sir. Teal once more look the floor and
argued that the taxpayers should not take
such a preposterous move without care
fully considering the possible outcome. He
cited that the taxes were higher than
ever before in the history ofthe city and
that the police, fire and other departments
of the city were suffering dolorously when
they were really entitled to more consid
eration than was given them. Ho asserted
emphatically that the method of petition
ing resorted to by the teachers was not of
the best, and brought in this remark,
which caused a great wave of laughter:
"Why, the prettiest girl in the elrv
came to me and asked me to sign Xhe
petition, and I found it hard to refuse."
He then told of the great increase in
the cost of maintenance of the school de
partment, quoting that in a short period
of time the aggregate sum had changed
from $200,000 to 5670.000. which, with the
asked-for allotment of $30,000 for teach
ers' salaries, would amount to $700,000 or
more for the year of 1905.
D. J. Malarkey took the floor and proved
a great champion of the teachers cause.
He stated that the question before the as
semblage was not the cost of maintenance
of the department, and he did not think
it right that the teachers should be made
to bear that expense. He appealed to
those whose children were in the care of
the teachers, and asked If it was fair that
they should be forced to work for little
more than the average servant girl re
ceived, as monthly stipend.
Mr. Wittenberg then arose and stated
that he was there to prevent the carrying
of Mr. Connell's resolution, and that he
did not personally in any way approve
of the course pursued by the teachers in
asking for the increase. He hoped that
the taxpayers would not consider Mr.
Connell's proposal to raise the levy .4
mill when the Board had already. In Its
report, provided for an increase of .6
mill, which would furnish the requisite
$30,000.
Salaries Fair, Says Wittenberg.
"The teachers of Portland." he said,
"are all receiving fair salaries, and some
of them are receiving more than they are
worth, and I would not countenance a
horizontal increase to benefit the teach
ers indiscriminately, but only those who
are qualified to receive recognition for
their services and ability, and I will ven
ture the assertion that none of them are.
"I am antagonizing a whole lot of
teachers, and I wish to say to those pres
ent," he continued, "that I shall oppose
every measure to grant an Increase to
those who are not worthy of it, but I
shall most willingly prpve the friend of
those teachers who demonstrate that they
are entitled to more than they are receiv
ing, f
"If this resolution is passed as Mr. Gbn-
nell desires, Portland will then be paying
the highest salaries on the Pacific Coast.
I make this appeal to you, and hope that
you will look upon It in the right light
from a business standpoint."
Mr. Teal took the floor in support of
Mr. Wittenberg's argument, and stated
that the teachers were receiving mini
mum and maximum salaries of $C00 and
$700 respectively. This was apparently
Mr. Malarkey's cue, who arose immedi
ately and asked the correct minimum
salary paid to Portland teachers.
Mr. Teal was not sure, but the chair
came to his assistance and quoted $550
for teachers of two years' vcxperience.
"Salaries Low," Says Malarkey.
"Five hundred and fifty dollars for
teachers of two years' experience," said
Mr. Malarkey. "Divide that by 12 and
you have something over $46 a month.
Take the maximum salary of $700 and
divide that by 12 and you will have $62.50
a month. Sixty-two dollars and fifty
cents a month for the women who must
devote two years of hard study In outside
institutions before they may obtain such'
a position. If there are teachers In the
omploy of .the department who are not
worth, as -Mr. Wittenberg says, what,
they are receiving,' I cannot understand
why they are allowed to remain (pro
longed applause and laughter).
"If I am not mistaken, Mr. Witten
borg. in the year of 1890 and prior to that
time, did not the teachers receive salaries
whicluwere even higher than tho present
ones If the asked-for increase was
added?" asked Mr. Malarkey.
"I believe so," answered Mr. Wltten
borg. "And Mr. Wittenborg," continued Mr.
Malarkey, "were the salaries at that time
tho highest paid on the Pacific Coast?"
"I can't say," replied Mr. Wittenberg.
"I would have to Investigate that because
I have no data with me."
"Ladles and Gentlemen," said Mr. Ma
larkey, "In the year of 1900 and prior to
that time, as I have said, salaries were
higher than the present desired salaries
would be with the increase. The salaries
wore reduced during the financial depres
sion following 1903, as were salaries In
every other mode of living. Since that
time, however, the depression has beon
superseded by prosperity and every kind
of salary but tho teachers' has been In
creased until salaries are as high as they
were previously, if not higher. The cost
of living 5s increased, and if we do noth
ing else, ladles and gentlemen, we should
grant this Increase.".
The subject was carried on with mo
notonous discussion and finally put to
question, as Mr. Teal first proposed:
Levy Finally Passed.
"That the levy be .6 mill and the mat
ter of distribution be left to the Board."
This resolution was passed, much to the
chagrin of some of the teachers present
and their supporters.
Thomas Hyslop then introduced his
resolution suggesting that the New High
School bo erected on the East Side by a
bond issue, and In the block adloinlnrr th
Central School, which was Durchasd
years ago fdr the purpose. "
Mr. Wittenberg arose, savine: "I nn.
posed the Increase In salaries for teach
ers. I am now going to make a fight for
the little children. I wish to talk to the
fathers and mothers and those who are
interested in the welfare of the little
ones.
"I am opposed to placing this school on
the block adjoining the Central School, be
cause it will rob the children of tho
breathing space they now have."
He went on to give several reasons'why
the school should not be orected there
and suggested that another block be.pur
chased. He was Interrupted by cries of:
"Boise. Boise."
Whitney L. Boise arose and said:
"Mrs. Chairman, Ladies and Gentle
men, the block designated in Mr. Hyslop's
resolution Js the most centrally located
for a High School on the East Side. Re
garding the breathing space, I know of
many schools where thousands of chil
dren have a common campus for their
recreation and they are none the less
healthful for it Of course, we of the
East Side would he flattered if another
block were purchosed so that the Central
School could retain its- large play ground.
All I can say, however. Is that, if you are
going to give us something over there, let
us say where it shall be located." "
Mr. Wittenberg arose again, saying:
"I cannot agree with Mr. Boise. In
building the proposed school upon that
block we would have to rob the little ones
of their playground, and If Mr. Boise could
only see them enjoying themselves, he
would say, 'For God's sake, let the school
be put elsewhere. We can obtain another
block for a few thousands of dollars, but
if this Is not possible, I would suggest
selling this block and purchasing another
with the proceeds of 'the sale. In my
opinion, a block further south would be
more centrally located."
Dr. JosephI then arose. "Mr. Witten
berg's last statement," he said, "convinces
me that he is not as much interested in
the question as he would like us to be
lieve. If he is so anxious that the chil
dren should have their playground why
does he propose selling the plat?"
"I mean to say,' hastened Mr. Witten
berg, "that if no other means is possible."
"Your reply does not change the nature
of your stand in the least," answered Dr.
Josephi.
He then went on to point out certain
facts bearing on the history of the pur
chase, showing that through the efforts
of the late Professor Hawthorne the in
termediate street was included. This, he
thought, would furnish adequate breath
ing space.
Mr. Wittenberg attempted to speak
again, but was unable to get the floor and
in the tumult, the resolution was passed
as first read. The meeting then, ad
journed. KILLED ON SPECIAL DUTY.
Ominous List Published by Japanese
Navy Department.
TOKIO, Dec 28. (9 A. M.) The navy
department publishes a. list of the nine
officers and Co men who were killed while
on special duty. The time, place and cir
cumstances are not explained, and it is
presumed that another cruiser has been
mined and sunk or damaged.
List of Army Dead.
TOKIO. Dec. 28.-C9 A. M.)-The' armv
Pdepartraent publishes a list of 23 officers
killed "and 5S wounded, presumably at
Port Arthur. ' ' 1
WILL Til SEVEN
Grand Jury Files New
Indictments.
CONSPIRACY IS CHARGED
S. B. Ormsby, W. H. Davis and
C. E. Loomis to Face Trial.
ALL SAID TO BE IN LAND RING
George Sorenson, an Ex-Deputy Sher
iff, and Henry A. Young, Ex-Football-Player,
Are Included
Davis, Mayor of Albany.
INDICTED ON CHARGE OF CON
SPIRACY TO DEFRAUD.
Salmon B. Ormsby, of Salem.
"William H. Davis, of Albany.
Clark B. Loomis, ot Eugene.
Henry A. Young.
George Sorenson, of Portland.
John Doe and Kiobard Roe.
The Federal grand jury made Its second
public appearance yesterday afternoon, at
which time it returned indictments against
Salmon B. Orrosby, of Salem; William II.
Davis, of Albany; Clark E. Loomis, of
Eugene; Henry A. Young, George Soren
son, of Portland; John Doe and Richard
Roe. The charge is that the indicted men
entered into a conspiracy on December
29, 1901, having as their object the de
frauding of the Government of the United
States out of a portion of Its public lands
in township 11 south of range 7 cast,
and that by means of false and forged
applications, false and forged affidavits
and proofs of homestead entry and set
tlement, some In tho names of real and
some in the names of fictitious persons,
the Government was Induced to issue pat
ents to the lands.
It is charged that in furtherance of the
conspiracy William H. Davis swore to an
affidavit before S. B. Ormsby in which he
said b'; had resided upon thc. clalci txkmi
by him as by law required, and it is also
alleged that the conspiracy was a part ot
the one entered Into by S. A. D. Puter,
Horace G. McKlnley, D. W. Tarpley and
Emma L. Watson.
W. H. Davis Is Mayor of Albany.
In the indictment just returned William
H. Davis, Mayor of Albany and chairman
of the Republican County Central Com
mlttee of Linn County, is the central' fig
ure. Ormsby and Loomis, Sorenson and
Young have all been before the publla
from the opening of the land-fraud trial
several weeks ago, but Dr. Davis had not
been brought into the case by the Govern
ment until the latter part of the week Just
passed, when he appeared before the
grand jury by his own request.
The Government expects to prove by the
evidence against the Albany man that he
went into the conspiracy to defraud the
Government knowingly, and a year after
he had abandoned his claim as the result
of correspondence with the land office at
Washington.
The story shows that Davis went Into
the forest in 1S92 in company with William
Horn, a timber-locator, of Albany. Horn
located him on a claim and built a cabin
for him in the same year. The cabin was
afterwards destroyed by a tree falling
upon It and the- next year Horn built an
other. In 1893 Dr. Davis went to his claim
for a day or so, and again jn 1S93 he spent
a short time there while on a fishing trip.
He also went fishing in the vicinity
in 1S95.
Dr. Davis made his final proof before
R. B. Montaguo, of Albany, In 1900 and
swore that he had cultivated five acres of
ground each year since residing on the
land; that he had raised crops and had
made the place his residence except for
short periods In the Winter, when he was
compelled to leave to make a living for
himself and family.
Wrote to Binger Hermann.
In 1901 C. EL Loomis came to Albany to
make a report on the claim of Dr. Davis
in connection with about 45 other claims
held up by the department. It is said that
the doctor became uneasy about this time
and wrote to Binger Hermann, then com
missioner of the general land office, ask
ing hia advice in regard to his filing. He
also asked Mr. Loomis to write to the de
partment in regard to his claim.
Under date of March 11, 1901, Loomis
wrote a personal letter to Mr. Hermann
asking his advice In relation to the claim.
He stated that Dr. Davis was In trouble
over It; that he had dropped the land
upon Its being put into the Cascade forest
reserve, but that he had later, upon the
advice of Colonel Bob Miller, made his
final proof. The Colonel, so said the let
ter, had advlspd Dr. Davis to the effect
that all the time elapsing since the crea
tion of the reserve and the date of actual
entry and since the survey had been
made would be recognized by the depart
ment as residence. The letter closecKw.Ith
the statement that Mr. Loomis would be
glad to gain any Information which might
be of use to "some very good friends" of
Mr. Hermann's in Linn County.
This letter was given to George R. Og
den, a clerk In the department, by Mr.
Hermann, who replied March 26. 1901. Og
den called attention to the fact that the
doctor had sworn to his cultivation and
residence in his affidavit and said that if
it appeared from the facts that the claim
had been abandoned Such affidavits would
make Dr. Davis, or any other persons,
liable to prosecution for perjury.
Ormsby Sent to Investigate.
Upon receipt of this letter Dr. Davis
abandoned effort to secure the claim and
nothing more was done about it until May,
1903, when Ormsby was sent to make a re
port on the lands. Some of the claims
had been recommended for cancellation by
LoOmis and among them was the Davis
claim. D. W. Tarpley came to Davis about
this time, so It is said, and made a propo
sition to him Which ho accepted. Davis
was to secure $200 each from the men who
had filed upon the claims and afterward
abandoned them. Tarpley was to receive
a share, and so "was Ormsby, who had
J, been sent by the Government to, mike his
report Through Ormsbp it was expected
that the claims could be passed to patent.
Dr. Davis, it is said, then secured
pledges from 14 men, each of whom prom
ised to donate $200 toward securing pat
nets to their old and abandoned lands. Of
this sum the doctor is said to have raised
$1390. He gave $G00 of the sum to Tarpley
and the rest was to have been divided be
tween Ormsby and a firm of Washington.
D. C, attorneys, who were to be employed
to look after the securing of the patents
at the General Land Office.
The report of Mr. Ormsby was favorable,
In spite of the fact that Loomis had once
reported against the claims, and in Octo
ber, 1902, patents Issued to the lands.,,
Henry Young Is WeUN Known.
Henry Young, another one of those in
dicted, is Well known in Portland and In
the Willamette Valley as an athlete. He
came from Astoria and was given a clerk
ship In the Secretary pf Slate's office by
Frank L Dunbar during the early part of
that official's first term. Young how
ever, drank to excess and was discharged.
He later was entangled' with the law for
having collected money from, various per
sons in Salem under pretense of represent
ing a firm with which he had no connec
tion and is supposed to have left the state
under this cloud. He was at one time a
member of the Multnomah football team
and was known as '"Spike" Young.
Young represented himself as George A.
Graham before Judge Galloway, then ot
the Oregon City Land Office, and also
made affidavit before R. B. Montague as
Henry Young.
Young is now in tho East, but the Gov
ernment does not have any great desiro
to apprehend him, as he is of too little
moment, at the present time. As the of
fense for which' he is indicted is not
extraditable, it is thought that Young
will not he one of those to attend tho
trial. '
Sorenson Once Deputy Sheriff.
George Sorenson Is also a well-known
wmam
Ml
M8B
W. 21. Davis, Mayor ot Albany, In
dicted In land fraud cases.
I?U&nd characters lie was "at one' tints"
a Deputy Sheriff of Multnomah County
under Sheriff Frazler and was charged
with grafting Chinamen and was dis-r
charged. He then went into the real es
tate business. He has been implicated' in
many things In Portland not to his credit,
and about a month ago, when tho land
fraud cases drew near, left the city. He
is now supposed to be In Missouri.
Ormsby is supposed to be at his home
In Salem, while Loomis Is in Eugene and
DaviB Is at Albany. The court .fixed the
bonds of each of the men at $4000 and
they will be served with the indictments
and placed under bonds at once.
HIS TACIT CONFESSION.
Horace McKlnley Admits He Figured
In Land Frauds.
SEATTLE. Wash., Dec. 27. (Special.)
Horace G. McKlnley, Here to meet an
Oregon tlmberman registering as George
Sorenson, of St. Paul, acknowledged to
day that Oregon timber lands had been
secured by fraud; that he hadi a part
In the deal; but he denied that United
States Attorneys Hall and Heney had
promised him immunity from punish
ment, and predicted the indictment of
Senator Mitchell and Congressman Her
mann. Said Mr. McKlnley, In answer to
a question asking how he became In
volved in the frauds:
"It's a pretty long story, but oh, well,
you know. Land laws were pretty lax
down there, and, well, anyway you can
safely put a bet down that frauds have
been committed, all right, and Just be
tween you and me, indictments are apt to
be returned against Mitchell and Her
mann." "How extensive were these land
frauds?" asked the reporter.
"They reached out pretty extensively,
I tell you," declared Mr. McKlnley.
"They have been going on there, you
know, for years, and some people you
would never suspect, would never dream
of, have been getting the long, end of it
right along. Those very same people
should have protected us, but instead
they endeavored to make us the scape
goat, and that, you know, doesn't always
pay.
"This thing will shako things up politi
cally In great shape. If they Indict
Mitchell and Hermann, and the Govern
ment officers say they certainly will, then
that means the end of the Mitchell party
in Oregon, as the Senator has controlled
politics there for years. And I notice, as
a general thing, that when the Govern
ment starts out to do a thing, it gets
away with it."
"Well, how do you expect to get out
of the trouble?" asked the reporter.
"That Is something hard to tell, of
course." he replied slowly.
"The prosecution said they would ap
preciate any Information we would give,
and that's all they did say, and to tell
the truth, we don't know how to bank
on It. The Portland papers declare we
have been promised Immunity from
prosecution, but that Is not so. The Gov
ernment has not promised us si single
thing."
"If Messrs. Mitchell and Hermann will
be indicted, when do you think It will
come?"
"Right away.. It would not surprise us
at all If they were tried during the next
term of court."
Steamers Walt for Fog to Lift.
NEW YORK, Dec. 27. So dense was
tho blanket of fog which hung over the
harbor all day that business at the Gov
ernment quarantine station was almost
entirely suspended. Not a single steamer
arrived. A little puff of wind from the
West this afternoon tore a hole in the
fog bank, revealing four steamers which
had come in during the night and found
an anchorage off the station.
Several steamers were due from foreign
ports today and It Is supposed they are
lying off Sandy Hdok waiting for the fog
to lift before attempting- to come Into,
the harbor.
N AND
Great Storm Rages East
of the Rockies.
GALE WITH INTENSE COLD
Telegraph Lines Disabled and
Railroad Trains Delayed.
TWO LIVES LOST IN CHICAGO
Territory From the Mountains to New
York, and From Winnipeg to
New Orleans Is Visited by
Severe Weather. '
CHICAGO, Dec. 27. One of the severest
storms of recent years has raged through
out the 'territory lying between the Rocky
Mountains and the Great Lakes since
early this morning, and lias caused much
trouble to street-car companies, railroads
and telegraph companies. The latter were
the greatest sufferers from tho blizzard.
which swept through the West and North
west during the last 24 hours, and which
was preceded by a heavy fog and driz
zling rain, which made the wires almost
unworkable.
Tho Intense cold and terrific gale that
followed close upon the fog coated the
wires with Ice, and later In the day threw
poles to the ground, crippling the com
panies badly. Railroad trains were bad
ly delayed all through the West, "some of
them being 24 hours late. Street-car
traffic in all the cities of the West and
Northwest was .practically at a standstill
at some time during the day.
In Its extent the storm was the most
widespread of any during the last 15
years. Counting the fog 'as a component
part of the storm. It stretched from the
Rocky Mountains to New York, and from
Winnipeg to New Orleans.
Deaths in Chicago.
The only fatalities due to the storm in
this city were:
Alexander Stelnert, a teamster, killed
while unloading coal. A chute was blown
from its fastenings and, striking Steiner
on the head, killed him instantly.
Thomas Walsh, a laborer, struck by a
heavy .board while" entering a new build
ing at Green street and Washington
boulevard. The board almost cut his
head off.
At 10 o'clock tonight the storm was re
ported as subsiding at Kansas City and
other points in a north and south line
from that city, but it will be several days
before normal conditions are restored
throughout the entire section.
At Chicago and east of here the storm
was still raging with great violence and
was expected to continue throughout tho
night, the center of the storm being be
tween Chicago and Cleveland. Reports
from Kansas City early In the day were
that the storm extended from the middle
of Missouri as far south as Indian Ter
ritory, and was accompanied throughout
its entire extent by thevheavy winds and
snow which on the level would have
been about one foot deep. It-was drifted
so badly by the gale, however, that in
nearly all the cities of Nebraska, Kansas
and Western Missouri, street-car traffic
was at a standstill by noon.
-Mercury Drops at St. Louis.
The storm by noon had reached East
ern Missouri and the temperature in St.
Louis went down 20 degrees in two hours,
while tho wind, blowing 40 miles an hour.
piled the snow up In the streets In great
drifts. It was found possible to keep
the street-cars running, although great
havoc was wrought with the telegraph
and telephone wires. I
At Omaha and Des Moines conditions
similar to those in. Kansas City were
reported and both places were In bad
shape early In the day. Before daylight
most of the down-town electric light cir
cuits in Omaha were out of business and
the outlying districts were without light.
All over the Western States the storm
increased in violence throughout the
morning and at noon was raging with
great fury. All trains In this section
were reported from one to six hours late
and constantly losing time.
In the Northwest the storm was even
more violent than throughout Missouri
and Iowa. In St. Paul the snow com
menced falling early last night and grew
heavier all through the night, while the
wind increased until it was blowing at 50
miles an hour. The heavy snow and the
gale worked havoc with the railroads and
some of the passenger trains from the
Pacific Coast were reported tonight as 24
hours overdue and making slow progress,
Very Violent In Northwest.
The storm reached westward from St,
Paul until It covered almost the entire
Northwest, and from the Dakotas, East
ern Montana, Wyoming, Northern Michi
gan and Wisconsin the story was the
same. Tho wires In all directions were
down, the snow was, filling the streets and
railroad cuts so. tightly that street cars
were for the most part compelled to stop
running and all trains were far behind
time.
In the South conditions were somewhat
better, the snow in many places being
changed into a heavy rainfall, preceded
by thunder and lightning and followed by
heavy winds. Nashville, Louisville, New
Orleans, Montgomery and Memphis all re
ported exceedingly heavy rains, a rapidly
falling thermometer and terrific winds. In
the Ohio River Valley the first heavy rain
In five months commenced falling early
In the day and continued throughout the
night. The storm was appreciated "by the
boatmen along the Ohio and its tribu
taries, for the stage of water in those
streams has of late been very low and
navigation was difficult In many places.
Wind of Terrific Speed. j
The storm struck Chicago soon after
noon and increased with great rapidity
until it had assumed hurricane violence
at 5:30, when the wind tore through the
down-town streets at the rate of 72 miles
an hour. It fell away after that, and by
7 o'clock had dropped to 50 miles an' hour,
where it remained throughout the night
with occasional gusts that would howl
through the streets with the force of a
cyclone, tearing down signs, smashing in
plate glass windows and in many sections
of the down-town districts hurling pedes
trians from their feet and overturning de
livery wagons.
In all parts of the city chimneys were
blown down. There were numerous in
stances of people being' bruised by
being- blown from their feet while pass
ing some of the high buildings of the
downtown district, and in several places
police were stationed to turn back light
delivery wagons, which would infalli
bly be turned if they attempted to
pass the corners ahead of them.
Between noon and 7 o'clock in the
evening- the mercury dropped from 34
to 11, and was still falling.
Great Damage In Wisconsin.
The late reports from Wisconsin are
that tho storm was the most severe
ever known in that section. Damage
in Madison is estimated at $100,000.
In Indiana the damage by the storm
is estimated in the hundreds of thous
ands. The damage was especially
heavy in tho oil fields where fully 500
derricks were blown down and all op
erations suspended. Near Muncie, Frank
Kavanaugh was killed by a falling
derrick. The loss on derricks alone In
the neighborhood of Muncie is placed
at $200,000.
Late dispatches from Nebraska state
that the storm was tho most severe in
many years and that all trains were
delayed from two to 12 hours.
PORTER IS TO RETIRE.
Meyer Will Succeed Him as Ambas
sador to France.
NEW YORK. Dec. 27. The Herald will
say tomorrow: It has been definitely de
cided that General Horace Porter, of New
York,' shall retire as Ambassador to
France and he will have his resignation In
the hands of President Roosevelt before
his inauguration. This announcement was
received by the Republican State leaders,
General Porter's successor to Paris will
be George Von L. Meyer, the present Am
bassador to Italy.
FAIRBANKS IS A MASON.
Great Gathering Sees Initiation Cere
monies at Indianapolis.
INDIANAPOLIS. Dec. 27. Senator
Charles W. Fairbanks Vice-President
elect, was initiated into the secrets of
Masonry today. The initiation was made
the occasion of one of the most notable
gatherings of Masons ever held in In
diana. CONTENTS OF TODAY'S PAPER
The- Weather.
TOD AT S Rain or mow; warmer; brisk to
high southeast winds.
YESTERDAY'S Maximum temperature, 40
dee.; minimum, 30. Precipitation, none.
Great Storm in East.
Severest weather in years visits country lying
east of the Rockies. Page 1.
Bitter cold wind follows fog, causing great
damage. Page 1.
Storm Is still raging at Chicago and to the
east of that place. Page 3.
British steamer ashore on Fire Island bar to
breaking to pieces in fierce seas. Page 3.
Russia.
Minister Svlatopolk-Mlraky given credit for the
Czar's manifesto. Page 4.
M. "VVltte is a cower behind the government
programme. Page 4.
Zemstvos will proceed, despite warning Issued.
Page 4.
Suit Against Paper Trust.
Suit begun by the United States against the
Paper Trust, at St. Paul. Page 1.
.Attorney-General Moody says special attorneys
have made careful examination. Page 1.
National.
Congress will have to buy silver bullion to
make much-needed small coins. Page 3.
President is presenting his ideas on railroad
' freight rates to Congressmen personally.
Page -1.
Domestic.
Presentment Ot case against Bishop Talbot.
of Pennsylvania. Page 12.
Nude young woman leaps to death from the
third-story window of New York hotel.
Page 4.
District Attorney Jerome in search of evidence
in Morse-Dodge divorce tangle. Page 4.
Political.
Certificates issued to contested Democratic
Senators would result in tie in Colorado
upper house. Page 4.
. Commercial and Marine.
Pugct Sound salmon pack of 1004. Page 12.
Potatoes and onions weak at San Francisco.
Page 12.
Argentine wheat damaged by frost. Page 12.
Money unusually easy In New York. Page 12.
Captain Samuel Colson, veteran pilot, stricken
with paralysis. Page 12.
TacUlc Coast.
Superintendent Chalfcroft, ot Chemawa School,
plans unique Indian exhibit at Lewis and
Clark Fair. Page 5.
James Nelli and wife discharged from Seattle
Theater by manager. Page 5.
Attorney-General Crawford may file suits In
equity to recover lands obtained by fraud.
Page C. '
Portland -and Vicinity.
Multnomah legislators will meet tonight to dis
cuss their course In election of President
and Speaker. Page 8.
Federal grand jury returns five more Indict
ments In land-frauds case; W. H. Davis,
Mayor of Albany, included In list. Page .1.
Leading timbermen plan to confine destructive
forest fires. Page 7.
Sheriff raid3 hand-book poolroom, arresting
proprietor. Page 10.
Persistent rumor that B. E. Calvin is to suc
ceed C. H. Markham as" manager of South
ern Pacific. Page 8.
Lecturer declares that dying Russian soldiers
curse the country they have fought for.
Page 0. '
New City Engineer goes through Tanner-Creek
sewer with retiring official. Page 8.
State Horary workers form state organization
and elect officers. Page 8.
State grand Jury investigating Chief Hunt's
payrolls. Page 7.
Taxpayers of District No. 1 vote for new High
School and raise of salary for teachers.
Page 1.
City Engineer Elliott aver? that Morrison
bridge is good bridge and not too 'costljt.
Page -10. , I '
TRUST IS SUED
Action Against Paper
Company at St Paul
FILED BY GOVERNMENT
Unlawful Combination to Con
trol Sales is Alleged.
PRICE OF PRODUCTS INCREASE
Attorney-General Moody Acts for the
United States Through the Dis
trict Attorney and the
Federal Court.
ST. PAUL, Dec 27. Attorney-General
Moody, for the United States, through
District Attorney Haupt and Frank B.
Kellogg and James M. Beck, special As
sistant Attorney-General of the United
States, today filed a petition in the United
States Court in which he makes the Gen
eral Paper Company the principal defend
ant and Its numerous constituent com
panies party defendants in a suit to en
join them and restrain them from doing
business through tho General Paper Com
pany as sales agent, in violation of tho
provisions of sections 1 and 2 of the act
of Congress approved July 2, entitled "An
act to protect trado and commerce against
unlawful restraints and monopolies."
The petition alleges that the defendants
entered into an agreement to combine and
control the sale of the product of the dif
ferent companies through the General Pa
per Company, in that the General Paper
Company regulated the prices, sales and
shipment and territory for the sale of the
same, and, after deducting operating ex
penses of the General Paper Company, di
vided the surplus among the members of.
the corporations.
The petition recites that the General
Paper Company was organized under tho
laws of "Wisconsin, May 26, 19C0, with a
capital, stock of 5100,000, divided into 1000
shares, which were distributed among and
are now held by certain of the defendants
named, and that later the others were
taken .1' "fiblne, naming tfcenl rr
the order In "which they entered tho trust,
and goes on to state that the Geiieral
Paper Company became the exclusive sell
ing agent for the defendants, with abso
lute power to control the output of tho
various mills, fix the price of all the paper
sold and to whom and upon what terms
and conditions the paper should, be sold;
and into what states and places it should
be shipped and what publishers and other
customers each mill should supply.
Tho petition alleges that in consequence
of the combination all competition in tho
manufacture, sale and , distribution of pa
per has been restricted and the price of,
all paper products greatly Increased, par
ticularly that of news print pape.r, which
has been increased about 50 per cent. It
further states that no dealers or newspa
pers or other consumers in the territory
west of the Mississippi, with the exception
of certain newspaper publishers In St.
Louis and Chicago, can purchase any pa
per except directly through the General
Paper Company, and then only upon
terms dictated by the latter.
The court Is asked to declare the al
leged combination unlawful, and that tho
defendants be perpetually enjoined from
doing any act In pursuance of the same;
that 'the General Paper Company be en
joined from acting as sales agent for the
other defendants, and that the latter be
enjoined from continuing their arrange
ment with tho General Paper Company.
The court Is also asked to direct the de
fendants to come into court and answer
all questions relating to allegations of
the petition as may be necessary.
MOODY MAKES STATEMENT.
Suit Begun After Careful Examina
tion by Special Attorneys.
WASHINGTON", Dec. 27. Attorney-General
Moody tonight gave out the follow
ing statement regarding the suit insti
tuted at St. Paul today by the Federal
Government against the paper manufac
turing companies:
"On the complaint of many newspaper
publishers last Spring that a combination
in restraint ot commerce existed among
manufacturers of paper to control the dis
tribution and sale of their products among
the states of the Union, the department
began an investigation of that subject,
and to further the department in that
respect the Attorney-General appointed
F. B. Kellogg, of the St. Paul bar. and
J. M. Beck, of the New York bar, as spe
cial attorneys to collect the evidence and
make a report thereon.
"These gentlemen, after an exhaustive
examination of the matter simultaneously
wlth that conducted by the Department of
Justice, have reported to the Attorney
General that in their opinion the facta
ascertained support the complaint and
justify, in the public interests, the filing:
of a petition to enjoin the operations of
the General Paper Company, a corpora
tion of Wisconsin, which Is the instru
mentality through which the, alleged com
bination to control the price's and distri
bution of those products In the Western
States Is conducted. In this opinion tho
Department of Justice concurs.
"The Attorney-General today directed:
that a petition be filed against the Gen
eral Paper Company and the 24 paper
manufacturing companies located in the
States of Minnesota. Wisconsin and Michi
gan, which it represents, to have such
combination declared to be an unlawful
restraint upon interstate commerce and a
monopoly. The petition will be filed In the
United States Circuit Court for the Dis
trict of Minnesota as soon as the neces
sary papers can be prepared."
Attorney-General Moody and William
A. Dain, the assistant to the Attorney-
General, called at the White House to
night. They spent several hours in con
ference with the President, presumably
dlscussing the proceedings instituted to
day against the paper manufacturers.
J