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About Morning Oregonian. (Portland, Or.) 1861-1937 | View This Issue
VOL. XLV.-XO. 13,912.
PORTLAND, OREGON, TUESDAY, JULY 11, 1905.
PRICE FIVE CENTS.
BRINGS IN NAME
HELPED TO PICK HIS CLAIM
J. S. Watkins Says He Agreed
to Sell the Land.
MADE IMPLIED CONTRACT
To Avoid Illegality, He Desired to
Pay for Claim Without the
Aid of Williamson and
J. X. "Williamson felt the first direct
Dreath of the Government's case against
him yesterday afternoon, when John S.
"Watkins testified in the Federal Court
that he had met the Congressman In the
woods near PrJneville, and that 'William
son had taken his daybook from him and
entered in It the descriptions of the hmd
he desired him and his -wife and brother-in-law
to file upon under an Implied con
tract to deliver the claims to the firm as
Boon as patented. The witness further
testified to hlrf tacit contract with the
firm of Williamson & Gesner, and to his
intention to pay for" the filing fees and
other expenses incident to securing the
claim out of his own money, in order that
he might thus avoid illegality and keep
himself clear of the law. It was the first
tightening of the web which the prose
cution promises to weave around the
The rest of the session of the after
noon, delayed as it was by the argument
upon the Mitchell motion for n new trial,
followed the lines shown by the witnesses
of the preceding days.
Henry E. Beard, the mountaineer who
confessed on the previous day of trial
how he had perjured himself before
United States Commissioner Biggs in or
der to flic upon the claim as set tut in
liis Implied contract with Gesner, was re
called to the vtand for the reft of his
cross-examination by Judge Bennett The
evidence of the witness was a repetition
of that in his direct -examination brought
out under the crossfire of the defense.
This witness was followed by Frank
Ray, whose tale 'was similar to the others
already told. He had been induced to
take up a timber claim through Green
Beard, his father-in-law, who In turn
had been perauadod . by Biggs and Ges
ner. His ptory was in the mean a repe
tition of those told by the other wit
nesses. Ray was followed by Frank S. Watkins,
who brought the name of. Mr. William
son into the case for the first time, but
whose story was otherwise the same as
those that had been told before. He had
feen Biggs and had agreed to take up
claims and to Induce some of his relatives
to do the same. He had been forced to
relinquish and had been summoned to
appear before the grand Jury. That was
about the whole of his story.
Wllford J. Crane, a young man, was
before the eyes of the Jury when the
hammering of the property man in the
corridor forced the court to adjourn for
the day In hopes that the noise would
cease. Crane apparently has the same
story to -tell, of how he met Biggs, was
seduced by the promise of 575 and joined
the others in filing on timber land. His
tale commences the same as the rest of
those already unfolded and promises
AVILLIAMSOX TRIAL RESUMED
Witnesses Testify as to Their Trans
actions With Defendants.
The 'trial of Williamson and his asso
ciates was resumed yesterday afternoon
at 2:35. the delay being caused by the
overlapping of the argument In the Mitch
ell motion, which had been set for the
morning session, but had not been quite
completed. At the commencement, Henry
B. Beard was recalled for the remainder
of his cross-questioning by Judge Bennett.
The defence began the inquisition by ask
ing the witness about the money owed him
by the firm of Williamson & Gesner at
the time of his making the application for
his claim. Judge Bennett elicited the fact
that the man had about $100 coming to
him. and that he had been working for $35
a. month. Then the questioning was
lurfd ,to ,the contract the witness had
testified about in relation to his claim,
and he waa asked when he had first told
of the existence of such an obligation to
deliver hit? claim, and whether it had been
oral or implied, verbal or written. The
witness testified that he had first told of
the contract to Mr. Neuhausen a year ago
last May, when that official had been in
vestigating the status of the Prlneville
claims. Mr. Beard also stated that he
thought he had talked to Neuhausen and
to Heney and Burns before ho went into
the grand Jury room last Fall.
Judge Bennett tried to get the witness
to state that he had been threatened by
Indictment for perjury by the Govern
ment unless he had testified in the case,
and Beard said It seemed to him as though
something had been said in regard to the
matter. Neither had he been scared into
.giving any story to the prosecution.
"Well." said Judge Bennett, "didn't they
ask you leading questions, if this was so
and that was so and that was not so?"
The witness stated that Mr. Neuhausen
had asked him questions about what he
had- said to the officer when the latter
was out making his investigation.
continued the lawyer, "is it not
a fact that theyhave threatened you with
i2dl!?eni. s,J2fe yt?u have bee" here at
this triair The witness did not remem
ber anything about such a threat.
"Didn't they road over the statement
they claimed you had made to Neuhausen
and ask you if you remembered what vou
had said?" "Yes. sir."
"That wat a statement Neuhausen
wrote out, and not one you wrote V
The defense then questioned the witness
about his association with the Govern
ment officials since his arrival in the city
as a witness, and asked it he had seen any
of the defendants or talked to them. The
Prlneville man stated that he had seen
Neuhausen and Burns and had talked to
them, but he had not seen any of the de
The witness was turned over to the
prosecution at this point, end Mr. Heney
took him in hand for a SDelL
"Did you see Gesner and Graves, the
surveyor, yesterday in a saloon." ques
tioned jar. Heney, looking at a little pa
per he held. "No, sir." the witness re
piled, "I saw them on the street."
"That statement you made in Prlneville
to Neuhausen was taken down In short
hand and signed by you, was It not?"
This was objected to by Judge Bennett,
who asked that the evidence be stricken
out as Incompetent and the Jury be .in
structed not to consider it in its delibera
tions. The contention was overruled by
Paid Money Back to Gesner.
"Did you receive any notice from the
land oince as to what had been done with
your claim?" "Yes, sir. I got a letter
stating tnat it was in connict witn nc
Rae's." The prosecution Introduced the
letter from the department Inclosing a
voucher for 5410, the amount .paid upon
the claim. The letter stated that the
claim had been found in conflict with a
previous filing, and that the money waa
returned, while the claimant would be
given SO days in which to make appeal to
the Commissioner of the Land Office.
ThlB letter had ben sent to the witness
in care of Marlon Biggs, and had been
sent by Biggs to the local land office at
The Dalles, with a postscript added to
the register asking that te entry be
changed from the southwest to the south
east quarter In order to overcome the
conflict. The witness stated that a short
time after he had signed the voucher he
had received a check for the amount from
the kind office, and that he had taken it
to the bank, cashed It and taken it to
Dr. Gesner's office, where he paid It over.
"How long after you had the check
cashed did you see Gesner?" was
asked. "It was about five minutes."
"Did you see him before?" "Yes, I
asked him if he wanted me to indorse
the check and cash it or to indorse it
and have him cash it. He told me to
cash it, and I did and took the money
to him at the office."
"Did Boggs work for Biggs?" asked
Mr. Heney, reverting to the testimony
of the previous day. The witness an
swered In the affirmative.
"Did ho work for the County Clerk,
too?" "No, sir."
"Did you write the answers in the
affidavits you identified yesterday?"
"No. sir. Boggs wrote them."
"Was this question read to you by
Boggs. 'What "do you expect to do with
this land when you get title to it,
and did you answer and say. "'us it
for my own uso and benefit. Yes,
"Was the question, 'did you pay out
of your Individual funds the expenses
of filing and do you expect to pay tho
expenses out of your own funds?' and
the answer 'Yes, fixed by Boggs." "It
was aiready written."
reii me now tney nxca tnose pa
pers." "Boggs asked us our ages and
just wrote them in."
The prosecution here showed tne ap
plication of the witness which had
been altered to read, the southeast
quarter instead of the southwest as
was in the original. The witness stated
tnat he .Tiad not made tne alteration
and did not know that It had been
done for a long: time afterward.
Did you ever have a talk with Ges
ner about the change?1 tho witness
was asked. Yes, he said, he told
me that McRae had filed upon the
claim and that he 'had' changed my
claim from the southwest to the south
Prank Rae Testifies.
Frank Rae was the next witness
called by tho Government. He, like all
of the others who have yet appeared
wae a resident of tho vicinltr of Prmo-
vllle and -had known all of tho de-
been induced to file upon a timber
claim by Green Beard,, his father-in-law,
who had been won by Biggs to
do the same thing.
"Whnt did Green Beard say?" Mr.
Heney asked, but the defense objected
and the objection was sustained,
though Mr. Heney contended that tne
testimony showed Beard to have been
in fact a conspirator against the Gov
ernment. i"Well." asked Mr. Heney, tnking
another tack, "what did you do first?"
"I went, to see the land."
"Who was there?" "A number of
people: Doc Gesner, Charlie Graves,
"Wakefield "and several others."
The witness testified that he had
heard Gesner make a speech at the
sheep-sheuring plant in which the doc
tor had said that he had mention. -J
to somo of them about taking up tim
ber claims and that he now wanted
to talk to all. He had said that there
was a craze for timber claims at the
time and that Eastern people were
coming in which wbuld hurt the coun
try and kill off the range. He woulJ
therefore like to have those listening
to him take up claims and that he
would give $500 for -the claim when
it had been passed to patent, and that
he would furnish the money to make
the filings and prove up on the lands.
Gesner had also said that he woulJ'
pick out the claims and that he would
take the note and mortgage of the
claimants so that It would make
"Did he say anything about your
clearing anything on the claims?" the
witness was asked. "Yes. he said that
the claims would cost about 5416 and
that we would get the rest of the
"Did anyone show you the lands?"
"Yes, Doc went out with us and point
ed out the lands and said that was
where he wanted us to file. Ho said
for U3 to go to town and see Biggs
and he would give us the numbers to
"At tho timo you signed the affida
vits." asked Mr. Heney. "did you in
tend to convey the lands to Gesner ns
soon as you had secured the titles?"
"Well. I don't know. That was the cal
culation. It was my understanding at
the time .that I was taking the land up
"You Intended "to do that?" "Yes, sir."
"Who paid the filing fees?" "I gave
Gesner a note and I guess he paid
"Did you sec Gesner?" "No. sir; not
that day. "Well. I will tell It tho way
It was. I saw Gesner the day before
and he told me that I would have to
pay the filing. I told him I would not
do it and next day he told me to go to
see Biggs and he would fix it up. 1
went up and Biggs fixed up the note.
I didn't have to talk to him about it."
"Whon did you have a second talk
with Gesner?" "It was December t,
19Tj2. It was in Prlneville and Geb
ner said that the best thing to do was
o relinquish my right. He said he
couldn't let me have the money and
that there was so much trouble about
the land frauds that I had better let
the claim go."
"Doc" Was Getting; Scared.
"When you went to Biggs to relin
quish, what did ho say?" "Ho said
that Doc. was getting scared and that
he might as well have gone ahead with
"Did you havo a talk with Biggs
before 3ou came to appear before the
grand jury? "Yes, he said that he
wanted me to say that there was no
contract between us."
On the cross-examination. Judge
Bennett sought to show by the wit
ness that Biggs had told the witness
at the time of filing that he could not
make a contract with Gesner or Gesner
with him. but the witness failed to
make the admission. The defense also
attempted to establish the fact that
the witness had contemplated taking
up a timber claim prior to meeting
Biggs, and had attempted to borrow
money for the purpose, but the wit
ness denied that he had ever contem
plated such action. Failing In this
(Coo eluded oa Pace S.)
IT WILL EXCEED
Great Registration of Dele
gates to Congress of Med-
PLANS FOR THE SESSIONS
Leading: Physicians and Surgeons of
the Continent Are in Portland
lor the Annual Meeting of
More than WOO pastencera hare ar
rived In Portland occupying Pullman
care alone since Saturday. Including
those coming on trains scheduled for
the -arly morning hours of todax. Two
special tralnt from Chicago, one from
Jersey City, one from Pennsylvania,
one from Kanea City, and one from
California and special earn from St.
Louis, Jacksonville. Nashville. Louis
ville. Denver and Los Angeles represent
a part of the total equipment bringing
guest to share hospitality of the Ro
City. Yesterday 134 Pullman cars were
received In th Northern Pacific ter
minal yards, 62 arrived Sunday and
60 are scheduled for tma morning
This total of 235 Pullman car?, aver
aged on the low basis of 25 persons to
each car would total 3900 pa?engers.
There has been no like movement of
travel to the North Pacific Coast and
only two or three occasions when Cali
fornia travel reached such large pro
portions. Transcontinental roads are
handling the traffic with dispatch sat
isfactory alike to the passengers and
officials of the railroads.
Delegates to the American Medical As
sociation to the number of almost 750
were registered at the headquarters reg
istration office at tho Armory yesterday,
and visitors to the number of as many
more, which is an exceedingly large ad
vance registration. In the opinion of
those having the best opportunity to es
timate the number It Is now conservative
ly calculated that the total registration
of delegates will be In excess of 1500. and.
that the accompanying visitors will be
fully equal to that number.
First Business Session.
This forenoon the first business session
of the general convention wlll.be called
to order by President John H. Musser. in
the great drjllroom of the Armory. There
will be assembledtbe largest"repre;enta-
tion of the men who saennce every tie
of Individuality to minister to the needs
of fellow creatures that has ever gathered
on this Coast, combining the giant intel
lects of one of the most scientific callings
that contribute to advancement of ' the
world and reveals means of diminishing
suffering and preventing contagion. Ad
dresses of welcome will be delivered by
Mayor Lane, on behalf of the city; by
Dr. George F. Wilson, on behalf of the
Oregon State Medical Society; by Dr. H.
W. Coe. on behalf of the City and County
Medical Society. Dr. K. A. J. Mackenzie,
chairman of the committee on arrange
ments, will present the report of that
committee. President-elect Lewis S. Mc
Murtry, of Louisville, will .be introduced
by the retiring executive. President John
H. Musser. of Philadelphia.
There will also be an evening session
at the Armorj'. at which Dr. Charles G.
Stockton, of Buffalo, will deliver an ora
tion on medicine and Dr. John Collins
Warren, of Boston, will deliver an oration
Great Interest Shown.
That the leading physicians and sur-
rrnn nt thi Amprifun mntlnunt am In
Portland for business was demonstrated
by the large interest displayed In the
sessions vfcsterdav of th hniKi nf rinin.
gates, and likewise In the Initial registra
tion at neaaquarters. ine nouse or aele
cate6 is the legislative branch, and It
session is the first hulnpK rprmnn tn
the organization. Numerous other organ
isations tnat meet annually at the same
nlao where the larcir nsrwlaf Inn
venes are merely affiliated through their
members representing certain divisions of
tne science or its application, being also
members of the American Medical Asso
ciation. This cvenlns: will be clven at th Vatr-
grounds a formal general reception to the
entire association and frinri at th
American Inn from S to 9 o'clock. At
tne close of the reception the guests will
retire to seats on the veranda and in
front of the caravansnrv vhr tii.
sive special decorations will have been
arrangea to witness a special display of
fireworks discharged from flnnla In tVia
lake. During the hour from 9 to 10 o'clock
an ooats ana launches plying on Guild's
Lake will be engaged for use of guests
of the association. From 10 tn 11 v.iv
supper will be served at the American
jnn. ana irom n to 12 the doctors and
their friends will witness a special per
formance of Klralfv Wnlrn tn vhUh
only guests of the association will be
Later serice of streetcars hn hn ar
ranged for in order that all may reach
xneir notejs ana stopping places after the
close of the evening's entertainment.
SECTION" ON' XARCOTICS.
Physicians WJio Study Effects of
Alcohol and Drugs to Meet.
The section of the American Medical As
sociation that deals nrlnelnnllv nMiVi
study of Inebriety, alcohol and other nar
cotics, will hold Its meetings Wednesday
and Thursday of this week. The section
will convene In the Atkinson School build
ing. President Dr. W. S. Hall, of Chi
cago, will deliver the annual address. Re
ports oi committees ana papers on the
sublects treated will be reaA v.- t
Madden, McNlcholi; Crothers, Stewart and
otners. Beginning at s A. M. Friday
there will be a memorial semlnn in v.
of the late Dr. N. S. Davis, of Chicago.
H.nu uiis oc wie continuation of a
similar meeting before the congress of
dele (rates. Addresses will h riitvAr v...
Drs. Hall. Webster, Crothers, Holllster,
ex-fresiaent uminss, -President McMur
trv. ex-President Musser. rtfh...
others. This meeting will be open to the
The objects of this, branch of the asso
ciation are to promote the scientific study
of alcohol and other narcotics, particu
larly the etiological, physiological, thera
peutical apd medico-legal relations, and
also the serological and clinical aspects
of this subject; to gather and formulate
all the" facts of the disease of Inebriety
and other forms of narcomanias and point
out the means of cure and prevention.
This Is an Important branch of the gen
eral association and numbers among Its
members some of the most noted physi
cians of the country. The officers of the
section are: President, W. S. Hall. Chi
cago; vice-presidents, L. D. Mason,
Brooklyn; T. A. McNIcholI, New York; F.
DeWItt Reese. Courtland, N. T.; secre
tary, T. D. Crothers, Hartford, Conn.;
corresponding secretary, C E. Stewart.
Battle Creek. Mich.; treasurer, G. W.
Webster, Chicago. Drs. L. D. Mason. T.
A. McNlcholi and T. D. Crothers com
pose the executive committee.
CALEB POWERS IS INNOCENT
CAUSE OP FIST-FIGHT.
Mayor and Jailer Quarrel About His
Quarters In Newport Jail, "Where
Federal Court Places Him.
CINCINNATI. July 10. In the cub
tody of the United States .Marshal, un
der orders of United States Judge
Cochran, who last week assumed ju
risdiction in his case, Caleb Powers,
charged with complicity in the murder
of William Goebel, at Frankfort. Ky..
In the Winter of 1900, was tonlgnt
lodged in the Newport jail, across the
river from this city, where he will be
held pending- a decision of the various
legal points arising out of his trans
fer from state to Federal Jurisdiction.
When Powers arrived at the New
port Jail at 7:50 o'clock tonight a con
troversy arose between Jailer Ploeger
and Mayor Hcmbold ns to what cell
the prisoner should occupy. The Mayor
insisted that the cell that had been,
prepared was not the proper ,pT3ce.
Ploeger and the Mayor finally came 'to
blows and the latter was knocked
down.' During the fight the furniture
in the cell prepared for Powers was
confiscated by unknowji persons. Sub
sequently Powers was placed In an
other cell with other prisoners, whero
he' will remain until Ploeger can se
cure other quarters for him.
For five years Powers has been in
Jail. He has been tried four times and
sentenced to death three times, but, as
he walked Into the Jail tonight, he ex
pressed hope of his ultimate acquittal
of the charge against him. He was
the only one of those charged with
conspiracy to murder William Goebel
to be convicted and sentenced to death.
His case is remarkable, and the attor
neys today expressed the belief that
three more years may pass before the
end of the present legal complications
will make possible the trial in tha Fed
eral courts for which he applied five
weeks ago at London. Ky.
On Instructions from United States Dis
trict Attorney vLinaley. warrants were
sworn out late tonight for th arrest of
Mayor Helmbold for interfering with
United States officers.
DUEL FOR BLOOD FOUGHT
Lawyer and Newspaper Man Fight
"With Swords One Wounded.
PANAMA. July 10. A duel with
swords was fought this afternoon by
Eusebio Morales, a prominent attorney,
formerly fiscal agent of the United States
at Panama, and Julio Arjona. a well-
known newspaper man and Conservative
politician. The trouble arose because of
the publication of an article by Arjona
reflecting on Morales. Arjona was slight
Czar Gives Muravieff Audience.
ST. PETERSBURG, July 10. The Em
perer today gave an audience' to M. Mu
ravieff, one of the peace plenipoten
tiaries. CONTENTS TODAY'S PAPER
YESTERDAY'S Maximum temperature. 73
dep.; minimum, S3 drjr.
TODAYS Fair and warmer; northerly winds.
The War In the Far East.
Japanese drive Ruaslana before them in
Sabballn. Pace 2.
Czar waits anxiously or armistice. Page 2.
Peace conference to meet at Portsmouth,
N. H. Paje 4.
Reformers plan to elect new Cxar and Nicholas
will yield, to their demands. Face 5.
Details of mutiny at Llbau. Page 5.
Mutineers Kuttled Fotemkln before leaving 1L
Russia demands surrender of Potemkln's
crew. Pace 5.
Terms of Franco-German agreement on Mo
Roberta warns Britain she is not prepared
for Invasion. Pace 4.
Mine disaster in Germany. Pag 4.
Sven Hedln urges Sweden to prepare for war.
Bonaparte speaks to Endeavorers on religion
and politics. Page 4.
James Hamilton Lewis appointed to office-
In Chicago. Page 4.
Mayor Dunne receles Dalryraple's Teport
on public ownership. Pace 3.
BristoWa recommendations regarding Pan
ama railroad. Page 1.
Question whether fixers of cotton reports
will be prosecuted. Page 9.
Saloons blown up with dynamite In Kansas.
General Funston'a father arrested In connec
tion with Iola exploMon. Page 3.
Scott's special train runs far ahead of sched
ule time. Pace 3.
Caleb Power transferred to Newport all and
fight results". Page 4.
Terrific heat kills people in New York and
PltUburc. Page 1.
Receiver appointed for bank which was barred
from malls. Page 5.
More exposures about Equitable Life. Page 4.
Portland aad Ylcteity.
Editors of medical J oa rails guests at ban
quet. Pace 14.
-Commercial and 31arlae.
Oregon hop crop benefited by hot wetirw.
Stocks of fruit still Inadequate. PacelS.
California wheat too high for export. Paje 15.
Fluctuations tn wheat at Chicago. Page 15.
Profit selling gives stock, adrance a setback.
Flurry in cotton markets. Page 15.
Paseengers accommodations to San Francloco
overtaxed. Paxe- 5. -
TMBty-flrat ship of eason chartered tor Port
land. Paxe a.-
t ff '
on Policy of the Pan
fENPACIFIC MAIL DEAL
Advises Government to Open Pan
ama Route, Cancel Monopolist
Contracts and Establish
WASHINGTON. July 10. The report of
Joseph Li. Brlstow, who was appointed a
special commissioner to Investigate trade,
conditions and other matters affecting- the
Panama Railroad and steamship com
panies; was made public today. The re
port discusses from several points of view
the question of what pollcpr should be
pursued by the Government In the man
agement of the railroad, and makes a
number of Important recommendations.
Among these are the continuance of the
railroad as a commercial line, with Im
proved facilities for handling commerce,
including double-tracking and re-equip-pln'tbe
line with modern rolling-stock;
the enlargement of its port facilities, the
retention of the steamship line between
New York and Colon, the cancellation of
the contracts with tho Pacific Mall Steam
ship Company and the South American
lines, and the opening of the ports of
Colon and Panama to all steamship lines
on equal terms: and In certain contin
gencies the establishment by the Tallroad
of steamship lines between Colon and
Gulf ports and Panama and Important
United Suites Pacific Coast porta. It Is
recommended that In traffic connections
American steamship lines be favored as
far as consistent with the treaty obliga
tions of the United States.
Mr. Bristow spent sovcral months in his
Investigation, visiting the Isthmus of Pan
ama, Important ports on the western
coast of Central America, the Isthmus of
Tehuantcpec, Mexico, and the Pacific
Coast of the United States. His report
reviews the entire history of the railroad
and discusses allegations that its local
freight and passenger charges were ex
cessive and Its traffic contracts with
steamship lraesmonopollstlc, ,
Complaints Summed Up.
He gives a summary of complaints, as
That the railroad's local freight and passen
ger charges were excessive.
That it had traffic contracts with the Paci
fic Mall Steamship Company, and with two
South American lines, that were monopolistic
In their character, and injurious to commerce.
That It had maintained a monopoly for Its
own eteamers on the Atlantic side.
That shipments via Panama were, carelessly
handled, resulting In heavy iou by damage
That owing to lack of facilities there waa a
congeatlon of freight on the Isthmus.
That commercial bualnee was made second
ary to canal business, greatly to the Injury
He says that a new schedule of local
rates adopted February 1 has removed
cause of complaint that they were ex
cessive. Contract With Pacific 3IaiI.
He then discusses the relations of the
railroad with the Pacific Mail Steamship
Company. Their contract gives the Pa
cific Mail the exclusive privilege of
through bills of lading to and from all
Pacific ports north of Panama, and that
company agreed to give through bills of
ladlng only by the Panama route. Both
parties agreed to co-operate In the mak
ing of rates and In protecting each against
competition from other steamship lines.
The Central American governments com
plained that the Pacific Mall rates are
excessive, that the contract Is an Impedi
ment to commerce with the United States
His conclusion on this point Is:
It appears that the service of that company
has been good, the rates reasonable, and that
the complaints of the Central American rep
resentaUves are not well founded.
Rates to South American Ports.
Mr. Brlstow next takes up the complaint
of Chile, Peru, Bolivia and Ecuador
against similar monopolistic contracts
with the Pacific Steam Navigation Com
pany and the Companle Said Americana
dc Vapores, relating to business with the
Pacific Coast of South America. He
quotes the rates to show that the greater
the distance from Panama, the lower tho
rates. Ho says the same system Is fol
lowed by the Euorpean lines, and con
cludes: It appears, therefore, that this Chilean line
and Its South American co-carrier are respon
sible for the excessive rates to New York, and
ptbe discrimination in favor of Europe com
plained of by the representatives of tho
South American countries.
Complaints !From Pacific Coast.
He then takes up "the complaints of
United States Pacific ports, saying:
Complaint U made by the Chambers of Com
merce of the Pacific Coast ports of the United
States that the Pacific Mall Steamship Com
pany is controlled by the transcontinental
railroads, and that It Ut operated so an to
discourage commerce via Panama between At
lantic and Pacific porta of the United States.
The Chamber of Commerce of San Diego
states that about S75 carloads of tha products
of that vicinity are shipped annually, and that
a large part of this freight could be success
fully forwarded via Panama, at rates lower
than thope charged by the transcontinental
roadfl. but that none of this commerce Is
moved by way of tho Isthmus because the
Pacific Mall refuse to call at that port.
Los Angeles Chamber of Commerce rnys
that there originate large amounts of freight
In the vicinity if that city for shipment, and
thae large quanUtles are received there an
nually. San Francisco la the only Pacific port of
the United States at which Pacific Mall steam
ers call. Seventy thousand tona of freight
moved via Panama, between New York and
San Francisco during- 1004: but many of the
San Francisco bustnesa men allege that this
quantity la small compared with what It
would be. If an effort were made by the Pa
cific Mall to secure business as against the
transcontinental railroads. The manager of
one of the largest fruit canneries on the
Pacific Coast eays that 35,000 tona 'of canned
ealmon. fruit and vegetables are shipped, an
nually to Liverpool and London, and that 'if
Improper facilities existed this trade could be.
noved via Panama at rates much lower than
those charged by transcontinental railroads
for-shipment to Europe via. New York.
The tame lack of facilities prevails at Port
land, Tacoma and Seattle as at Loa Angeles
and San Diego.
He quotes the report of a Congressional
committee which Investigated the rela
tions of the Panama Railroad and the
Pacific Mail In 1893. as saying":
That the organization known as the Trans
continental Railway Pool paid the Panama
Railroad $75,000 per month for the privilege
of fixing rates by that route; and further
stated that th United States should control
some outlet across tha isthmus IndependenUy
of all railroad connections, for the benefit of
Schwerin's Statements Denied.
Mr. Brlstow then continues:
"When in San FrancUco a number of citizens
called my attention to this report and stated
that the Government now has the opportunity
to carry out the recommendations of this
After carefully considering the statements
made by the commercial bodies of the Pacific
Coast, the statement of Mr. Schwerln and
other data, it clearly appears that the Pa
cific Mall Steamship Company haa made little
effort to develop business between the Pacific
and Atlantic ports of the United States. Mr.
Schwerln says that there- Is not sufficient
business at the porta other than San Francisco
to Justify ahlps stopping. This is vigorously
controverted by the shippers and chambers
of commerce of . these cities. At San Diego
It was stated that the week ending March 11
a vessel of the American-Hawaiian line
brought to that port via Magellan 3000 tons
of miscellaneous merchandise. Statistics fur
nished by the various chambers of commerce
show that there is a large volume of business
which could be moved by Panama If facilities
existed and rates were reasonable. The char
acter of? the Panama route la such that cer
tain articles can be shipped that way much
cheaper than by rail across the conUnent.
The Important gulf ports of Pensacola. Mo
bile. New Orleans and Galveston have never
had opportunities for the movement of com
merce by Panama to and from the west coast
of the United States, Mexico, Central and
The Panama Railroad Company operates a
steamship line between Colon and New York
and has refused to allow the use of the Isth
mus to any competing: line on the Atlantic
side. The gulf ports complain bitterly of
the refusal of tho Panama Railroad to give
them facilities by way of the Isthmus, and
state that as a result their commercial de
velopment has been greatly Injured.
Keep Boud Open to Commerce.
He then discusses three alternative lines
of pollcy"for the Panama railroad Should
it be closed to commerce and used only
for canal construction? Should It be used
for commerce as secondary to canal
work? Should It be used both for canal
work and for commerce to its fullest ca
pacity? He calls attention to the Im
portant place the road haa filled in com
merce for 50 years, and continues:
The third proposition, that, since tho Gov
ernment la required to operate this road as
a commercial line. It ought to Improve Its
facilities so as to make it of the greatest
possible benefit to commerce. Is the one moat
generally approved by the shipping publla.
The relation that tho Panama JCllroad
scatalns to commerce Is different from that
of any other transportation company. The
United States Government Is constructing a
canal across tho Isthmus of Panama at very
heavy expense, and the benefit that will ac
crue to commerce Is one of the principal
reasons for undertaking this great enterprise.
It the United States la Justified In expend
ing a large amount of money for the con
struction of a casH--for ?I benefit of com
merce, then It Is Justified, pending the con
struction of the canal. In operating this rail
road for the same purpose. And since it is
necessary to operate the road. Its facilities
should be Improved so as to enable -it to
handle commerce In the most efficient manner.
It la estimated by the engineers that it
will be from 10 to 15 years before the canal
can be opened for use, and. In the mean
time, the railroad must perform. In so far
as & railroad can, the commercial functions
of the canal. The operation of this railroad
Is no more In competition with private en
terprise than tho construction and operation
of the canal are In competition with private
enterprise; and, if product can be transport
ed between the Atlantic and Pacific coasts
at lew cost by this line than by any other,
then commerce should receive the benefit of
Transcontinental railroad schedule ratea
plainly show that heavy shipments could
be made from the Gulf porta to the Pacific
Coast, and that thousands of tone of canned
fruit and other products of the Pacific Coast
could be shipped to the Atlantic seaboard
cheaper by Panama than across the continent
by rail. e
Can't Favor American Shipping.
Ie says that not only the interests of
commerce but those of the Government
require the establishment of a regular
steamship service between Gulf ports and
Colon, as a large tonnage of Mississippi
Valley products will be used In canal con
struction, and It Is cheaper -to move them
from the Gulf porta than via New York.
An effort should, therefore, be made to
induce some American company to establish
a line of freight and passenger steamers
between Gulf ports and Colon.
He quotes Mr. Schwerln as stating that
it costs more to operate an American than
a foreign steamship line, on account of
greater cost of hibor and construction,
and says Mr. Schwerln asks tMat only
Amerlcan ships be given through bills of
lading north of Panama. On this he com
ments: I would be glad to ee American ships
favored when It can consistently be done, but
the treaty by which the canal Is constructed
provides that there shall be no discrimination
against the vessels of any nation in respect
to conditions or charges on traffic or other
wise, and. upon, the theory that the railroad
la performing the functions of the canal. In
so far as a railroad can do so. it does not
appear practicable to show any discrimina
tion in favor of American ships at the ports
of Colon and Panama.
It la very Important that a schedule steam
ship service be maintained between the Paci
fic Coast ports of the United States and
Panama. The Government Is Interested In
having ample facilities for the transporta
tion of malls, passengers and supplier from
the Pacific Coast to the Isthmus during the
period of canal construction.
Recommendations Summed Up. '
He closes with the following recommen- i
That the Panama Railroad be continued ss
a commercial lino; that Its facilities for han
dling commerce be Improved at once; that
It pe double-tracked and re-equlpped with mod
ern rolling stock; that Its port facilities be
enlarged by the construction of additional
wharves and that modern facilities for han
dling cargo be provided.
That a schedule of rates for through busi
ness be provided, fixing the charges at tho
minima which tho payment of operating ex
penses and a fair dividend on the investment
of the Government will permit. The coat of
handling freight with Improved facilities, and
not what It has cost In the past. should be
uted as the basts In fixing rates.
That the present policy of charging a per
cent of the rates on through business, sub
ject to certain minima, be adhered to.
That the steamship Una between New York
and Colon be retained.
That the contracta with the Pacific Mall
Steamship Company and the South American
lines be cancelled, and the ports of Colon
and Panama opened to the U9e of all steam
ship lines on ecual terms.
That If. within a reasonable time, a reg
ular steamship passenger and freight service
la not established between Colon and the Gulf
ports, a line be established by the Panama
That if the Pacific Mall Steamahlp Company
Concluded on Page 4.)
HEAT KILLS TEN
Sun's Rays and Excessive Hu
' midity Prostrate Crowded
STORM COOLS ATMOSPHERE
Fall of Temperature Accompanied by
Deluge Which Converts Streets
Into Rivers and Almost
Stops Subway Traffic
NDW YORK. July 10. Ten. deaths and
moro than a score of prostrations result
ed today from the intense heat wave
which visited' the city. A grateful breeze
from the sea served In a measure to tem
per the torrid temperature and excessive
humidity, but tho suffering, especially in
the swarming tenement-house quarters
was Intense, and throughout the day the
ambulances were, kept busy removing sun
stroke patients to the various hospitals.
At 1 o'clock the thermometer registered
S9 degrees higher than yesterday, and re
mained at this point until 8 o'clock, when
a heavy thunderstorm with a deluge of
rain descended on Brooklyn, the lower
portion of Manhattan and suburban towns
In New Jersey. The storm brought a
startling fall in the mercury, which,
dropped 13 degrees within half an hour.
This evening the cool breeze continued,
with every prospect that it would hold
during the night.
The rainstorm almost attained the pro
portions of a cloudburst In the lower sec
tion of Manhattan, and within ten min
utes many of the downtown streets were
flooded to the level of the sidewalks.
Broad street in the vicinity of the Stock
Exchange was rendered Impassable, and
the brokers on "curb" were compelled to
hasten the close of the market and flee
before the rising flood. A torrent rushing
down Broadway, Whitehall street and
State street, poured Into the new subway
station at South Ferry, flooding the tracks
nearly to the level of the third rail and
for a time threatening to interrupt traffic.
"Within half an hour the flood subsided.
During the height of the storm the, Ad
ministration building on Ellis Is.'and,
where there, were 2000 iaunlgrantsyflraa
struck twice by .lightning, but jLb ta.ned
only trifling damage.
A man believed to be J. R. Daniel, of
Los lAngeles, was overcome by heat and
drowned while bathing his face In tho
raceway to the Morris sawmill at Bloom
fleld, N. J., today. The water at that
point is only about 12 inches deep, but
Daniel fell so that bis face was buried
In the stream.
SEVJ3X DEATHS IX PITTSBURG?
Two Caused by Heat, Five by FIee
ing to "Water for Relief.
PITTSBURG. July 10. The Intense
heat was responsible during- the last
24 hours for seven deaths, two of them,
caused directly by the heat, and the
others by drowning-, the result of in
experienced swimmers seeking relief in,
Four Deaths on Sunday. r
NEW YORK, July 10. During the 24
hours ended at midnight there were four
deaths from the excessive heat In this
city, whllo a large number of prostrations
JAMES HAMrLTOX IiEWIS COMES
TO THE FRONT AGAIX.
Pink-Whiskered Statesman Is Ap
pointed Corporation Counsel by
Chicago Democratic Mayor.
CHICAGO, July 10. James Hamilton
Lewis. ex-Congressman from the State of
Washington, and now a resident of this
city, was tonight appointed by Mayor
Dunne to be Corporation Counsel for the
City of Chicago.
Mr. Iewls Is known throughout tha
Northwest as the plnk-whlskered states
man. Ho came out to Seattle from North
Carolina In the 'SOs, In a condition of
abject poverty, and for a few weeks
worked on the wharves as a longshore
man. He finally opened a law office,
and by persistently advertising himself
In all manner of artful ways, got before
the public and kept there. He took, up
criminal law, and probably saved from
the gallows more murderers than any
other man In Seattle. One of his famous
cases was that of Nordstrom, a Swede,
who was decidedly attenuated when he
went to Jail In -1S91, but grew so fat while
awaiting the law's delay that, when he
went to the gallows ten years later. It
almost reeulred a block and tackle to
Mr. Lewis shone most as a politician.
He Is a clever manipulator and by his
Inexhaustible volubility built up a repu
tation as an orator. He made great
political capital out of the fact of his
having oncJ been a longshoreman. He
made repeated attempts to get nominated
for Governor, but had to be satisfied with
the nomination for Representative In Con
gress In 1S96. and went In on the Bryan
landslide. He continued to attract atten
tion there as he had at home, and during
the debates on the Spanish war in 18S8
got talked about all over the country
by making a violent attack on the Army.
When his term expired he soon with
drew from Seattle and settled In Chicago,
where he ha3 practiced law and probed
himself to the front by the same energy
as In Seattle.