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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (July 12, 1905)
YOL. XLV.-O. 13,913.
PORTLAND, OREGON, WEDNESDAY, JULY 12, 1K)5.
PRICE FIVE CENTS.
IRE OF WITNESS
Questioning Annoys B.
ASKED IF HE KILLED SHEEP
Also if He Sent Threatening
Letters to Van Gesner.
MAKES AN ANGRY DENIAL
Testimony Is Offered by Many Wit
nesses That They Were Induced
by Williamson and Gesner
to Take Up Claims.
ANOTHER VAX GESNER LETTER.
Dr. Van Gesner was confronted with
documentary evidence to hla discredit
lor the second time at the Williamson
trial of yeetcrday when the prosecution
Introduced a letter written to Chris
tian Feucrhelm asking him to relinquish
his timber claim. The writer laid the
blame for the troublo upon Malcolm A.
Moody and the Land Office at The
Dalles. The letter was as follows:
"Prineville, March 12, lf05. Chris
tian Feuerhelm: That timber claim of
yours and all the balance, I have got
to throw them up. I am sure we would
get Into trouble over them before we
got through with them, and then be
turned down on them. I know that
Mr. Moody and The Dalles Land Office
are laylnr for us. I do not want to
gej. Into trouble over them and don't
want any of my friends to get Into
trouble. Tou go "before Mr. Biggs and
relinquish your claim.
What promised for a fewNninutes to
have been a sensation in the Illiam-son-Gesner-Biggs
trial yesterday aft
ernoon before Judge De Haven,
dwindled into & emphatic -statement
that Dr. Gesner had a verbal agree
ment with at least one witness. From
the opening hour of the morning ses
sion until Just a few minutes before
adjourning, the trial droned along,
with witness after witness adding link
after link in the chain of evidence that
the Government is forging around the
During bis cross-examination, Henry
Hudson, no relation, by the way, to the
famous explorer, had furnished the
comedy scene that was tossed Into the ,
day's proceedings, and it was Ben F.
Jones, a retired cattle and horseman,
that furnished the mild sensation.
Jones had told on the witness stand
bow he and his wife came to fceke up
timber claims. He stated that he had
done this at the request of Dr. Van
Gesner, that Dr. Gesner had furnished
the money and that he had proved up
on his claim, and that his wife had
relinquished hers. His testimony was
in line with the ten other witnesses
that had been examined. He was a bit
more sure about certain events that
had occurred before and after be
had taken up his claim. He was turned
over to Judge Bennett for cross-examination,
and because the defense
thought that Jones, having been a cat
tleman, had been mixed up in the fight
against the sheepmen, that the incident
Witness Jones Grows Angry.
Judge Bennett had taken the witness
along until he reached the point where
he had sworn to the questions that
had been put to him when he made his
final proof. Counsel for the defense
pressed the witness very closely and
had gotten an admission from him that
when he had sworn to certain answers
Jn the papers of final proof that he
was swearing falsely, and that his
wife -had done the same thing; Dis
trict Attorney Heney had objected to
certain adjectives used by Judge Ben
nett when he was crowding the wit
ness on this point, and the objection
was sustained by the court. Jones ad
mitted that at the time he was sworn
that he was not. aware that he was
committing such a serious offense.
Judge Bennett had also tried repeat
edly to get an admission from the wit
ness that he had talked with Dr. Ges
ner and had assured him that there
had been no agreement between the
witness and Dr. Gesner about turning
over the timber claim to Dr. Gesner.
The witness denied that he had talked
with Dr. Gesner. Then Judge Bennett
asked him If he had ever written to
Dr. Gesner. Jones replied that he had
not, and before the answer was made
Judge Bennett was on his feet and
hurried over to where Dr. Gesner sat.
For a while it looked as If he was
going to spring the same surprise on
Jones as he had on Jefferson Evans,
who had been asked If he had signed
a note, and he declared that he had
not. Marlon Biggs, one of the three
defendants, pulled the note out of his
pocketbook and the witness was forced
to admit that the signature on the
note calling for $426.10 bore what he
thought must be his signature, but he
disclaimed all knowledge of having
signed tho paper. Many thought that
Judge Bennett was about to spring an
other note, but It wasn't a note, it
was a letter. The letter was not read,
nor was It given to the press, and un
doubtedly It will be sprung again on
tome other witness before the trial
closes. The moment Judge Bennett
handed Jones the letters his tone of
voice became threatening: and Impera
tive. He elicited from the witness that
he had been In the cattle and horse
business; then he asked him point
blank if he had not sent the letters
to Dr. Gesner. This letter must have
contained either threats' or warning,
similar to those which are said to
bave been passing back and forth be
tween the sheepmen and the cattle
men. -Jones denied, with some showing
of temper, that he had written the let
ters, nor would he admit that he had
attended any of the meetings held by
the cattlemen. When Judge Bennett
asked him if he had' ever killed any
sheep he became thoroughly angry.
It was evident the purpose of counsel
for the defense to show by the witness
that he was connected in some manner
with the range war that was going on
In Crook County. Jones denials were
emphatic and Judge Bennett pressod
him no further on this point, but swung
his Interrogations back to the alleged
agreement between Dr. Gesner and the
witness. The witness by this time was
thoroughly roused. His voice was
charged with anger, and he said: "Yes.
there was an agreement, a verbal
agreement, and I intended to sell the
'claim to Dr. Gesner." The witness was
still on the stand when court ad
journed. Witness Made His Will.
Henry Hudson was the German comr
edian of the trial. He was loquacious,
and when under Are of cross-examination
he furnished several laughs ani
was productive of many smiles. He
has a dialect that. If he were on the
stage, would be worth a fortune to
him. On direct examination he was
funny, but it was while being prodded
on cross-examination by Judge Ben
nett that he waxed merriest. Judge
Bennett asked him .about the wl.ll. he
made when he was summoned to Port
land to appear before the Pcderal
grand Jury. Counsel for the "defense
wanted him to admit that he made the
will because he was afraid. He would
not admit this, but said that at one
time he had been a sailor, sometimes
took' a cargo of wet goods aboard, an
between the uncertainty of train travel
and being in Portland he made the
will, so as to be on the safe side.
Judge Bennett also asked him if Mr.
Heney hadn't threatened him, and be
replied: "Mr. Heney treated me fine.
He iss a gentleman, and Mr. Bennett,
he treated me like a gentleman, I tell
WITNESSES TOOK UP CLAIMS
Many Testify That They Were In
duced by Williamson and Gesner.
The Williamson trial was resumed
vesterdav morninf?. with Wllford J.
Crane upon the stand. Crajie bad been1
called Just prior to adjournment on
the preceding evening, when court was
compelled to close owing to the noise
In the corridor, which prevented tne
Jury from hearing the testimony of the
The testimony of Crane was In large
nart the same as that of the previous
witnesses. He had taken up a timber
claim and had gone to the timber
to meet Williamson and ocsntr. Will
iamson had written the numbers of
tne claims in a book bolot.ging to
Watklns, the father-in-law of the wit
ness, and had told him that these were
the claims set apart for him to take.
Following this meeting he had gone
to the office of M. R. Biggs, in Prlne
vllle, and filed upon the lands set out
for him. He nad hesitated about sign
ing the affidavit, as he did not think
it read right, but Biggs had told him
It was all right and for him to go
ahead. After he had filed, and had
done no with the money furnished by
Gesner, he felt morally bound to sell
the claim to Gesner. as he had prom
ised to do. The witness had had a
talk with Gesner about relinquishing
the claim when Williamson was pres
ent and Williamson had read the ac
count In The Oregonlan stating that
Hitchcock was after the timber land
frauds and would make an Investiga
tion of the filings. Gesner bad said
he thought the witness had better re
llnqulrih for a time, though the trouble
would quiet down in a short times and
he could go ahead with his claim. He
had receive! a check from the land
office for the amount of his filing fees
and other expenses and had turned it
over to Gesner.
Felt Obligation Binding.
In the cross-examination Judge Ben
nett tried to show that the witness
had not made a contract with the
firm of Williamson & Gesner for the
purchase and sale of the land, but
the witness said that he felt under ob
ligations to sell to Gesner since the
doctor had furnished him the money
with which to tile. He was also ques
tioned as to his association with the
prosecution and asked how many times
he had boon In the office of Neuhausen.
though It was brought out on the re
direct examination by Mr. Heney that
the. office referred to as Nounausen's
was the office of the United States Dis
trict Attorney and nad been used as
a headquarters for the Government
witnesses during the trial.
In answer to the questioning by the
defenses as to whether or not the wit
ness nad seen any of the defendants,
and If the prosecution had not cau
tioned him to avoid them. Mr. Heney
asked a few questions.
"Xow, didn't I tell you that you could
talk to tl-e defendants and their attor
neys?" he asked. "Yes. .sir."
"But that I thought It would be
better for you not to because they "
"I object." said Judge Bennett. "Well,
that 1 thought It would be better
for you not to?" finished Mr. Heney.
"Who was it that wanted you to
file?" continued Mr. Heney. "Watklns
was the man. I wouldn't have filed if
he hadn't wanted me to."
"Don't you know," Interrupted the
court, "why you filed on that timber
land: what you did It for?" "Yes. I
did it for what there was in it. Wat
kins told me thfre was $7 In It."
At the close of the witnesses testi
mony Mr. Bennett tried to show that
there had been a sharp war raging In
the neighborhood, while Mr. Heney
took the opposite stand. The witness
didn't remember whether there had
been or not.
Advised by Williamson.
George M. Gaylord was the next
witness called. He lived at Sweet
Home. Linn County, though he had
previously been a resident of Prlne
vllle. In 1902 he had been working
for Watklns and had been told by him
that Williamson and Gesner wanted
men to file upon timber land. He had
gone with tne rest Into the timber
and had there met Williamson and Ges
ner. who were out surveying. He had
agreed to file upon a piece of land,
and did so. He had expected to get
the money to file upon his land from
Williamson and Gesner and In turn In
tended to turn the land over to them
when deed had been secured to the
(Concluded on -Page lid
Reception and Fete at the
American Inn to -Honor
FINE FIREWORKS DISPLAY
OnQtof the, Most Brilliant Events of
the Exposition Season Is Held
to the Enjoyment of
BRILLIANT SOCIAL FUNCTION.
The most brilliant function of th
Exposition jwm was giren-iasi eve- t
nlng at the American Inn In honor of
the visiting members of the medical pro-
fessdon. Not Use than 2500 guests
were entertained In the inoU lavish
Social form, dignity becoming the high
profession of the guests of honor, marked
the general reception and fete given mem
bers of the American Medical -Association
and accompanying ladles at the American
.Inn last night. From 8:30 to 10 o'clock the
receiving hosts and hostesses of the func
tion faced a surging throng that had not
yet passed the pdrtals of the big parlor
when the reception committee was led
away to the vast dining-room, where cov
ers were laid for a thousand guests at
each sitting, and the chairs were twice
occupied, and several score served at third
tables, although hundreds hastened away
to other attraction? without entering tho
dlnlng-rooml During the reception hour
preceding the special display of pyrotech
nics on the water front It was a scene of
animation, that thronged the lobby, re
ception-rooms, parlors, writing-rooms and
banquet hall, such as has probably never
before been witnessed In Portland.
Dance to the Music.
Llberatl's band wan stationed, on the
veranda, playing a special programme of
classic, patriotic and inspiring selections
of the leader, while in the banquet hall
dancers tripped to the harmony of "Web
ber's orchestra, engaged for the season at
tlon, with Mrs. Goode. were the first In
the receiving line. Dr. K. A. J. Mackenzie
introducing the guests. Next in line were
Mayor and Mrs. Lane. Dr. William Jones
and Mrs. Jones, Dr. A. J. Glesy and Mrs.
Gicsy, Dr. George Wilson and Miss Wil
son. Dr. H. W. Coc and Mrs. Coe, Dr.
Tucker and Mm K. A. J. Mackenzie.
Jolly good nature was a predominating
characteristic of the multitude, and as the
movement was directed toward the In
viting doors of the parlors the crush be
came very great, as the vortex of the
maelstrom of courtler-like gentlemen and
beautiful, elegantly-gowned women eager
ly sought an opportunity to express a
word of appreciation of what was termed
a most pleasing social function. While
the reception line was still unbroken the
veranda and walk in front of the hostelry
was crowded with a mass of those who
had passed through the parlors and ob
served the magnificent display of fire
works fired from floats located at some
distance from shore.
Spectacle of Matchless Beauty.
Showers of fire made brilliant the spec
tacle of matchless beauty and peculiar'
charm with which Portland people are
familiar, and that never fails to charm
the visitor who beholds It for the first time.
Involuntarily, there were outbursts of ap
plause as particularly pretty pieces were
ignited to Illumine the waters, over which
glided launches and splashed the oars of
gondoliers, all of the craft being at the
disposal of the guests during the hour.
Merry laughter broke ever and anon upon
the nlKht air, and those who came back
to seek the dining-room after a trip across
the water spoke ecstatically of the de
lightful view had of the marvelous setting
of night at the Exposition.
It was after 10 o'clock when the hosts
and hostesses of the evening led the
guests Into the dining-room, and more
than an hour later when the last of the
guests had finished the repast served with
daintiness and freedom from confusion,
notwithstanding that seven score waiters
were necessary to perform the work.
From 11 to 12 o'clock, the theater of en
joyment was removed from the American
Inn to the other side of the west arm of
the lake, where the throng filled the vast
auditorium and adjacent wilks to witness
a special performance of Klmlfy's "Ven
ice." There were unusual lighting effects,
additional fire, and the gondoliers under
the shadow of St. Mark's and the Cam
panile sung with sweeter cadence as their
craft glided before the assemblage repre
sentative of the Nation's advancement
for tho benefit of the whole race. The
men of research were Just like other vis
itor In the manner of evincing their en
joyment, and the production was evidently
appreciated as a spectacle surpassing any
thing they had anticipated.
-Special cars of the Portland Consoli
dated Railway Company were In waiting
outside the gates to convey the visitors
to their respective hotels and homes. It
was an occasion that will go down as one
of the great social functions In the annals
of 1H6 at Portland's Exposition, and be
remembered by the visitors for Its bril
liance. French-British Naval Festivities.
BREST. France. July 11. The fes
tivities Ir nonor of the. United French
and Brltljh squadrons are proceeding
amid great enthusiasm. The squadrons
of the two nations are elaborately dec
orated with flags, presenting an im
The French Admiral entertained- the
British Admiral at a luncheon at noon
One hundred covers were laid and the
toasts expressed the cordiality of the
two countries toward each other.
SHE MOURNS HER JEWELS
Mrs. Oclrlchs Finds Diamond Tiara
and Other Trifles Gone.
NEWPORT, R. I., July 11. When
Mrs. Charles Oelrlchs returned to her
cottage here tonight, after an absence
of two hours, she discovered that Jew
elry valued at $ 10,000 had been taken
from her dressing case. The Newport
police were notified of the robbery.
Among the Jewels lost are a diamond
tiara and several pearl and diamond
It is said that entrance was gained to
the cottage through a window In the
south part of the house. During the
period of Mrs. Oelrlch's absence ijyee
servants were the only known occu
pants of the house. The jewels, with
their paste duplicates, lay on a dressing
case in Mrs. Oelrlch's chamber. The
Imitation Jewels were nottaken.
They Offer Desperate Resistance to
Posse In Kentucky.
MAYKIh'G. Ky., July 11. A desper
ate battle between moonshiners and
Federal officers was fought In the Elk
horn district today. Al Brlttin Potter,
Deputy United States Marshal, led the
officers in the raid.
On a lonely mountain the moonshin
ers, under the leadership of Calvin
Centers, opened fire on the officers. For
half an hour the battle raged. Centers
was killed and Henry Adams fatally
Injured. A man named Tucker received
a dangerous wound.
It is said that one officer was shot in
EDICT IS SET AT NAUGHT
Drivers of Delivery Wagons Ignore
Order to Strike.
CHICAGO. July 11. Tn spite of the
edict of the Teamsters' Joint Council,
the baggage and parcel delivery driv
ers refused to strike today, although
their employers made deliveries to the
boycotted houses. The defiance of the
Joint Council will be persisted In. and
no strike of the employes of the city
express companies will be called.
The Chicago Cartage Company, which
was organized by the city express com
panles. made the deliveries, which the
Joint Council tried to prevent. No ob
jection was made by the union drivers.
Explorers on Hudson's Bay.
ST. JOHNS, N. F.. July 11. The .whaling
schooner Neptune sailed today to embark
the Canadian party on Hudson's Bay. She
will be In the north three years, he
steamer Erlck sailtrf for Sydney -with, coal
supplies and a crew for the steamer
Roosevelt, which will Join her there.
The rival expeditions of Mrs. Hubbard
and Dillon Wallace started from North
west River Into the interior of Labrador
on June 23. Mrs. Hubbard leading by four
CONTENTS TODAY'S PAPER
TESTEROAT'S- Maximum . temperature. 72
des.: minimum. S3 dec.
TODAY'S Fair and warmer; northerly winds.
The War la tbe Far East.
Preparing- for the peace conference. Page 5.
Japanese politicians propose high terma .for
peace. PaK 5.
Another victory for Japan on Sakhalin
Prefect of police of Moscow shot dead, rase 3.
Black Sea fleet th'reatens mutiny becatm
Potemkln crew la Imprisoned. Pace 3.
Plan of national assembly presented to Czar.
Fatal riots in Warsaw. Pace- 3.
France formally accepts Invitation to Morocco
conference. Page 4.
Germany will build porta In Morocco opposite
Gibraltar. Pare 4.
Danlm Prince offered crown of Norway.
Fight on church separation In French Sen
ate. Pare 5.
Great mine disaster in Wale. Paye 3.
Roosevelt appoints special commission to Ven
ezuela. Pace 5.
AttorneyGeneral takes up cotton report scan
dal. Page 4.
President confers with Senator Knox. Pajre 3.
Scheme for which Wallace left Panama Canal.
Many Mllwaukee'offlclala Indicted for bribery.
Governor Folk if aks on crafting- In Ne
braska. Pace .
Mayor Weaver trying to force indlclmmt of
political leader. Pace 4.
Scott rperial train beat record to Chlcaco.
Tale may call on Depew to resign on account
of Equitable scandal. Page 1.
Expore of rebates patd to Harvester Trust.
Steamer runs down yacht on Hiifiwn and crew
flee.. Pase 1.
Southern capitalist commit suicide because of
huge short's se In account. Page 1.
Elks elect grand officers. Page 4.
Pacific Costs t.
Mount Hood Is stormed on two eldes by Ma-
zamas. Sierras and Appalachians. Page 6.
H. H. Turner and A. T. Kelllher arrested
at Salem on perjury charge. Page 6.
I. R. Cornell indicted by Federal grand Jury
for land frauds In Idaho. Fage 0.
Seven candidates for Congree from tfc Flnrt
Oregon District. Pce 6.
Pacific Coast scores: Portland 4, Tacorea 1;
Oakland 3. Lo.Angels 1; San Francisco
4, Seattle 3. Pace 7.
Portlaad and Vicinity.
Judge Bennett'- cross-examination In William-,
ton case rouses Ire of wltnem. Page 1.
Box order Is far-reaching. Page 18.
Chautauqua Assembly hsv Interesting day.
Two thousand medical delegates meet. Pase 10.
Spicy testimony in Suesa dlrorc suit. Pace 0.
Methodlit Congresw begins Its work. Pag t.
Brilliant reception and fet at the- American
Inn In honor of the visltlnc physicians.
Lewla and Clark Exposition.
Admissions. 18.178. Pase 10.
Twenty-five cent rate to Exposition In v.
nlngs conceded to meet demand of conces
sionaires Page 10.
Congress will be aked to enact pure-fool law
by Food " and " Dairy Convention; Page 10.
Men ho originate catchy ideas . for sdrer
tlscments begin convention. Page 10.
Connection With Equitable
May Cause Removal From
CALL ON HIM TO RESIGN
Whole University Feels Discredit
Brought On It Ryan Reaches
Out to Capture Other Fi
NEW HAVEN". Conn.. July 11. (Spe
cial.) The disclosures made regarding the
connection of Chauncey M. Depew wun
the Equitable Life Assurance Society
have deeply shocked Tale men. because
Depew is a member of that sedate body.
the Yale Corporation ot university trus
tees, and, although the coruoration last
month swallowed a million of Rockefel
ler's "tainted money," the revelations
about Depew are likely to stick In their
A stout clamor went up today for
Depew'a resignation from the Yale Cor
poration. It Is practically certain that.
If he does not resign, he will fall of re
election next year. The prevailing Yale
sentiment In the matter is voiced tonight
In the following editorial In the New
Haven Evening Register:
"Every Yale man feels the discredit of
Depew's behavior, for repeatedly they
have elected him to the Corporation and
cheered "him when misunderstanding him.
His alma mater gave him the degree of
doctor of laws. "When his term expires
next year, unless he voluntarily retires. It
will be necessary to remove him from
the board of control. He should bexln
now to plan for an escape? from that
RYAN GETS ANOTHER COMPANY
Buys Control of Washington Tjlfe
With IievI Morton's Aid.
NEW YORK, July 11. The Evening
Post today says that Thomas F. Ryan
In addition to hi? purchase of the Hyde
stock of the Equitable Society, also con
trols, with his associates, another life
Insurance company. It says:
"Since January 1 of the present year the
affairs of the Washington Life Insurance
Company have been managed entirely In
accordance with the desires of Mr. Ry?n
and others who were associated with
him in the Equitable purchases. From
the time mentioned it has had as presi
dent a former official of the Mutual Life
Company, who was given 'leave of ab
sence for three months by President Mc
Curdy of the Mutual when It was ex
plained where he was to go, and by a
vlce-presldent who happens also to be a
vice-president of the Morton Trust Cora
pany, which, to say the least, has Mu
tual Life affiliations.
"In February last general attention was
attracted to the affairs of the Washing
ton Life by the report made to District
Attorney Jerome by State Superintendent
of Insurance Hendricks, who declared
that the mismanagement of its affairs
bad been simply Incomprehensible.
"One of the first discoveries made by
the investigators was that the company
not only was Involved to the extent that
its surplus was wiped out. but Its capital
stock was Impaired. However, under Its
charter It was possible for the capital of
the company to be Increased to $500,
000. and this was done, the company thus
being given $373,000 worth of stock to offer
The Increased stock was offered for sale
at $200 a share, but no purchaser ap
peared. Continuing the Evening Post
"It was when things were In this con
ditlon that Levi P. Morton, one of tne
oldest directors of the Washington Life,
requested an option on the control of the
stock (the existing $125,000) at par or $30
a share. A a director Mr. Morton, presi
dent of the trust company that bears
his name and of which Thomas F. Ryan
is vice-president, knew exactly what the
details were which had been disclosed by
the Insurance department's examination.
With this knowledge he made his offer
during the month of December, and al
most Immediately the offer was accepted
and the resignations of the executive of
ficers of the company were placed In his
hands, and later those of the Equitable
officials were placed In the hands of Paul
"On December 30 an offer was made by
Mr. Ryan and associates for the purchase
of the $375,003 worth of new stock for
$35,250. Of this amount Thomas F. Ryan
contributed $215,750: Levi P. Morton. $21$,
750 and Harry Payne Whitney, another
director of the same company, $21S.750.
By noon on the same day, the sale hav
Ing been ratified, the money was de
posited with the company of which Mr.
Ryan Is vice-president. Th usual deposi
tory of the Washington Life has hitherto
been the Chatham National Bank.
"The company had balances In four
New York banks of over $1,000,000 at the
end of December, 1904. or nearly 17 pr
cent of all Its assets. Shortly after- tho
purchase by Mr. Ryan and his associates
of the new stock the bulk of this sum
was transferred to the Morton Trust
"Having thus secured the control of the
company through the new stock. Mr.
Ryan Immediately exercised the option
given to Mr. Morton respecting the pur
chase at par of the Brewer stock, which
formerly had controlled the company.
"Owing to the connection which the
Morton Trust Company hap with the
Mutual Life. It was perhaps not surpri?
Ing that Mr. Ryan should have looked In
that direction when he came to choose
a president for his new concern. He pick
ed out then John Tatlock, associate act
uary of the Mutual Life, to whom Presl
dent McCurdy promptly gave a leave of
abeence for fO days. For vice-president
he chose Charles F. Allen. ex-Governor
of Porto Rico. Mr. Allen was then and
Is now the vice-president ot the Morton
WOULD .REGULATE INSURANCE
Odell Would Cut Off Subsidiary Com
panics and Restrict Investments.
NEWBURG. N. Y.. July 11. Ex-Gover
nor Odell. upon being asked whether he
had seen the evidence secured by Superin
tendent Hendricks in the Equitable mat
ter published In the New York World to
day, replied that he had. When his at
tenilon was directed to an editorial in
HOCK ME MEN
the same paper, he said that any Infer
ence that he had been concerned In the
preparation of the report was absolutely
withqut foundation. Continuing, he said:
At a. meeting' with the Governor In Albany
Just prior to the preparation of his measago
to the extra session of the Legislature, this
subject was discussed. I believe that ths
people expect legislation which will remedy
the existing- evil- and restore the confidence
of the policyholders who have so muca at
stake. My observation has led me to believe
that tho connection of the Equitable Life and
other -insurance companies with subsidiary
corporations, such as trust companies and
banks, la dangerous, and that a necessity
exists for a divorcement between the: In
terests. Then the connection ot Insurance offices
with other institutions leads them to disre
gard the obligations which are Incumbent
upon them as officers of Insurance companies
for the purpose of advancing the interests of
such other companies and syndicates, through
which reat estate and other speculative
schemes are worked, and I believe that legis
lation should be framed and enacted to pre
vent such, acts on tbepsrt of insurance of
ficials In the future.
Further, It seems to me that the scope of
Investments should be regulated and restrict
ed. There is no reason why Insurance com
panies should not be safeguarded In the
same, or a similar manner, oa savings banks.
I am confident that. If Insurance investments
were restricted and safeguarded, there would
come a great volume of money for legitimate
real estate investment, and it would be Im
possible for- a loss to occur to the Insurance
company, such as the so-called Depew land
Investment oi the Equitable Lite.
I believe further that It would be a great
mistake on ths part of the Republican or
ganization and the majority In the Legisla
ture to refuse such relief as seems to be
demanded by the present condition ot affairs
In the insurance world.
ALL VACANCIES ARE FILLED
Equitable Trustees Select Men for
Directors Tarbell Retains Office.
NEW YORK, July 11. A sufficient num
ber of directors to carry on the business
of the Equitable Life Assurance Society
after filling all the vacancies were select
ed today at a meeting of the three trus
tees of the majority stock. The names
will not be made public until after they
have been presented to the board for for
Much comment was caused by the pub
lication of the testimony taken at tho
Investigation by Superintendent Hen
Ex-Governor Odell, In an Interview at
Newburgh, stated that he had seen none
of the evidence until its publication, and
offered important suggestions for reme
dial legislation at the present extra ses
sion of the Legislature.
That the services of Second Vice-Presi
dent Gage E. Tarbell will be retained
was announced by Chairman Paul Mor
ton. who declined to discuss the disclo
sures In the Hendricks report.
No official copy of the testimony has
yet reached District Attorney Jerome, in
spite, as he said today, of efforts on his
part to secure a copy.
Mr. Morton also said that the resigna
tlon of Archibald Haynes, local agent of
the Equitable, will not be accepted.
RUN DOWN YAGHT AND FLEE
CREW OF UNKNOWN STEAMER
Learning That None Survive, 3fen
Hurry Away by Train Three
Persons Are Drowned.
NEW YORK, Ju.ly 11. Police head
quarters received Information tonight
that an unknown yacht had been sunk
off Dobbs Ferry by; a steamer flying
the Swedish flag. It was learned tnat
about 9 P. M. a small yacht, brilliantly
llumlnated, anchored off a Jock at
Dobbs Ferry and had hardy stopped
when this 3teamer ran Into It. Tho
lights on both went out, and the yacht
turned turtle and sank.
Fifteen minutes later three men
rowed In and asked If any survivors
had come ashore from the sunken
yacht. Upon learning that none had
come ashore, tho three men pulled
their boat up on the beach and took
a train for New York. They declined
to say who they were or give the
name of their steamer and. after they
had taken the train, their boat con
tinued up the river.
The Dobbs Ferry pilot reported that
several persons were drowned.
Another version of the story Is that
the vessel sunk was a houseboat and
that the steam- which ran her down
was a. yacht, some of the members of
the crew of which came ashore to make
Inquiries nnd then took a train to New
York. th vessel from which they came
proceeding down the river.
Owing to the darkness It was impos
sible to determine definitely the char
acter of the boat whloh was sunk.
Whether any lives were lost Is un
known. A man who said his name was, Budd
reportod at the Yonkers Police Sta
tion tonight that the launch Norman
dle, owned by a man named Dumont,
of Brooklyn, had been run down by
a tramp steamer near Dobbs Ferry
whlle on her return from a trip to
The pilot, engineer and a woman
are missing and are supposed to hav
ALL BRIDGES WASHED AWAY
New and Salton Rivers Spread Over
CALEXICO. Cal.. July 11. The flood sit
uation here Is serious, but improving.
Both the New and the Salton Rivers
have spread In great streams over the
valley. There has been much damage
to crops, ditches and other property.
No publiq bridges are left in the alley
and the water Is about one foot below
the Southern Pacific Railroad tracks.
The railroad company Is placing- 20.000
sandbags to protect the track and Is
oiling the water to stop Its dashing
against the embankment.
Considerable grain has been destroyed
In the fields and some people have -been
driven from their homes. The danger
appears to be past as the water seems
to be receding though still threatening
at Salton Sink.
Action in Illinois Postponed.
CHICAGO. July 11. United States Judge
Bethea yesterday postponed bank
ruptcy proceedings in Illinois against C.
J. Devlin, head of the First National
Bank of Topeka, Kan., until It was
shown that Devlin owns stock in Illinois
coal mines, and an attempt will be made
to have the same receiver appointed as In
BIG REBATES Pi
Discontented Stockholder Ex
poses Operations in Suit
MILLIONS PAID ILLEGALLY
Rodney B. Swift Shows How Rail
roads Evade Law and Exposes
Enormous Profits Made by
Company and Agents. '
CHICAGO. July 11. Another attaclt
was made this afternoon upon the Inter
national Harvester Company by Rodney
B. Swift, formerly head of the experi
mental department of the McConnlck
branch of the company. Swift's connec
tion with the company was severed some
months ago and suit commenced against
him by the officials of the company, who
alleged that he had defrauded them In
the sale of a patent.
In his bill filed this afternoon, Swift, as
a stockholder, demands an accounting
from the company and that the court
force the company to cease taking re
bates from railroad companies, and also
compel the company to return to the rail
roads moneys said by Swift to have been
illegally exacted from the railroads la
Millions in Rebates.
Swift declares that tjp to September SO,
1902, the McCormick branch of the har
vester company alone forced the railroads
to pay It, through rebates and the opera
tion of the Illinois Northern road, a sum
in excess of $3,000,000. Up to the same
date the money received In rebates by
the Piano branch of the harvester com
pany through the agency of the Chicago.
West Pullman & Southern Railroad
amounted to $500,000. Since September 30.
1902, It is declared, nine other railway
companies have been making payments
ot rebates to the International Harvester
Company, under the guise of an alleged
division of freight rates with the Illinois,
Northern Company. Swift "asserts thp.t
the alleged Illegal rebates made to th,e
International. Harvester Company sines
1902 amount to more than $1,000,000.
Fat Profits in Business.
Swift goes into the details of the or
ganization of the International Harvest
er Company, declaring that shortly after
Its formation an arrangement was made
among President Cyrus H. McCormick.
Charles Deerlng, George W. Perkins and
William G. Lane to the effect that all of
the stock of the International Company
should be put In charge of the first-0
named three men as trustees for voting
purposes until 1312. Swift demands that
the voting agreement be terminated by
It Is furthe declared in the bill that
the business of the International Har
vester Company 13 of an extremely prof
itable nature. He asserts that harvesting
machines can be produced and delivered
by the company for $57; tho company re
ceives $85 for them from agents, who In
turn sell them for $125. Swift says that
all his demands for an examination of
the company's books have been refused.
GOVERNMENT READY TO ACT
Will Prosecute Railroads for Grant
inp Rebates This Week.
CHICAGO. July 11. Plans for the proa-
ecution of railroads for the granting of
rebates to large Industrial individual cor
porations in violation of injunctions is
sued by the Federal Courts here and In
Kansas City, have been completed and
the first steps In the attack of the Gov
ernment will be made In Kansas. City
before the end of this week
Assistant Attorney-General Purdy, who
has charge of the prosecution, left here
tonight for Kansas City. He announced
that the first proceedings would be
charges of contempt ot court for the
violation of the injunction ot Judge
Philips of Kansas City.
LEAVES HUGE DEFICIENCY
FORMER HEAD OF COTTON OlTj
COMPANY TAKES POISON.
Property Is In Receiver's Hands and
Rumor Says Shortage of Seven
Hundred Thousand Exists.
CHARLESTON. S. C. July 11. A spe
cial from Darlington tonight says that R.
Keith Dargan. ex-president of the Inde
pendent Cotton Oil Company and the
Darlington Trust Company, committed
suicide about S o'clock by drinking car
bolic acid. He left a note which the
Coroner has taken, in which he mentions
financial troubles and states he Intended
to kill himself.
The oil company was capitalized at
$1,000,000 and it la rumored that the de
ficiency may reach $700,000.
The properties are in the hands of re
ceivers and startling developments are
Blgelow's Debts and Assets.
MILWAUKEE. Wis.. July 11. The ap
praisers of the assets of F. G. Bigelow
made a partial repprt today. The real es
tate, stocks and bonds appraised cover
the greater part of the assets. The total
appraised value Is $2S3,W4. while the claims
which have been filed and approved foot