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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Sept. 20, 1905)
VOX. XLV.- 3TO. 13,973.
PORTLAND, OREGON, "WEDNESDAY, SEPTEMBER 20, 1905.
PRICE FIVE GENTS.
jmimmir jag m
Where Nearly a Million of Policy-Holders'
MORTON SUES FOR RETURN
Turner Loans of $718,2 04 on
"Worthless Security Taken Off
Mercantile Trust Com
WHERE EQUITABLE MONEY
Prtirtpat Paul Morten ef the Kqult
afcte Uktc A?Mirance Society 1H en
4e&rw to recover funds of the jk
(Mt Illegally disbursed t the arawat
Thr WoMora National Bank in 1S04
bad loaned $601,461 tox George V.
Turner. KTtary to Louis Fitzgerald.
the proaMont of the Mercantile Trust
t Company, on cJ lateral w'hlch proved
J to fee of lUtle value. A bank exam-
Iner condemning the security, the
? Ion was transferred to the Mercan
I til True CwntMnr and was guaran
f teed by several financiers. including
t Wemy B. Hyd. The loan was Anally
1 transferred to the Bouttable. having
pro" to total of $71S.24. and that
7 cousfNuqr pM this sum to the .Mer-,
J oojrttle Trwc Company in two pay-
atoata. one of $21.244 on January
f St. and Ui other of 5S&0.O00 on
l"fenr- 4. IWM.
X "H. Alexander, the former proM-
f et of the XauttaMo. cortlfiod In
If thtU the Bootable wan pledged
to t protection of the Mercantile
TnM Company and Us guarantors
ft Ad tbf exocotlve oommlttee of the
i BautUiMe yawed a refutation gaar-
atlng protection to thm.
f Th BnuMaMe had a)e paid $38,609
to th Mercantile Trim Company on
j account of the mysterious loan of
$. wkkA the latter company
to IC hut all this mono,' has
bocM i ef aoded by Individual.
Mr Morton haa notified the Mr-
I raatlle Trwt Company that the
Equitable t not responsible for the
? Turner Ioom to the trust company
4 mad baa tnatruetod eouaeel to sue for
rcovry of the S71S.204 and HtOfpaU I
JOtW YORK, Sopt. 19. That the
Equitable Life Assuranoo Society paid
ent to the Mercantile Trust
Company la oonnoctlon with cortaln
Joan, known as the "Turner loans,"
and Utat these payments were without
authority, so far as the records of the
society disclose, became known today
when Paul Morton, president of the
society, made public a report on the
subject, submitted by him to the so
ciety Those transactions occurred In what
Sir. Morton rofors to as the "Turner
Joans." This loan. Mr. Morton's report
sot forth, was carried In 1894 by the
Woe era National Bank, which was
con troll od by tne Equitable Life As
surance Soolaty. The collateral for
the loan was objected to by a bank
examiner, and Honry B. Hyde then
agreed to transfer the loan and collat
eral to the Moroantlle Trust Company.
riling Up Loan on Poor Security.
At the time apparently the loans
amounted to $$81,491. George V. Turner,
In who name the loan stood, was sec
retary to Louis Fitzgerald, then presi
dent of the Mercantile Trust Company,
and a doeo business associate of Henry
1. Hyde. The loan was guaranteed by
Marcettus Hartley, John N. Searles. Louis
FHsgorald. W. N. Color. Jr.. and II. B.
Hyde. On March 21, 1S9S, the name guar
antors renewed their guaranty, the loan
having grown to $1,216,478. the increase
being due to attempts to develop the
property on which the collateral for the
loan was made. Part of this collateral
was givoa by John W. Young, and con
sisted of Salt Lake & Eastern Railroad
stock and other Salt Lake stocks. This
collateral proved to be of little value.
Other collateral consisted of contracts of
the Kontucky Mine & Timber Company
and the Amity Land & Irrigation Com
pany, of Colorado.
Attempts woro made to develop tho
Kentucky property and tho Colorado
property and large sums woro expended
for that purpose and by July 1, 1905, the
cost of the Kontucky property stood at
J618.0G7 and tho Colorado property at $2,-
Equitable Pays Others Bad Debts.
The Equitable Life Assurance Society
paid the Mercantile Trust Company $218,
I4 on these loans on January 21, 1900, and
JKO.0CO on February 4. 1904.
"The records of the society." said Mr.
Morton, ''disclose no authority whatever
for those payments and tho cash entries
In respect to them were very obscure."
Mr. Morton also sots forth th.at on Feb
ruary 14. 1900. tho legislative committee
of the Equitable Life Assurance Society
pawed a resolution authorizing the presi
dent to convey to the individual guaran
tors of tho Turner loans the assurance of
the socloty for their protection. On Feb
ruary 14. 1903, the president of the so
ciety. Mr. Alexander, made a statement
that the loans were mode In the Interests
of the socloty and assured the guarantors
that the society would see that the
amounts tbolr companies loaned would be
repaid with Interest.
Mr. Morton referred the matter to
epeci l counsel, who have assured him
that tho Equltablo Life Assurance So
ciety Is not responsible for the loans.
Mr. Morton has also notified the Mer
cantile Trust Company that ho will ex
pect it to ropay the $71S.2G4 paid to it
by the Equitable Life Assurance Society-Mr.
Morton found that $255,000 was paid
by the Equitable Life Assurance Society
to the Mercantile Trust Company on the
$GS8,000 loan, the nature of which loan has
nevor been explained. Counsel have been
instructed to begin proceedings for the
return of this sum. The loan was carried
on an account known as the 'J. W. A. No.
Mr. Morton also reported to the di
rectors that It would be necessary to
charge off $86,488' unpaid balance of a
loan to John E. Searles, who has gone
through bankruptcy. The collateral
against this $86,4SS. Mr. Morton do
olares. Is without value.
In the conclusion of his report Mr. Mor
"In case any other transactions of this
character arc developed you will bo duly
Mr. Morton said the Turner loans were
mado by tho Western National Bank be
fore the Equitable Life Assurance Socloty
became Interested in the bank. The loans
originally were as follows:
To John A. Young $113,057 on collateral
consisting of Salt Lake & Fort-Douglas
Railroad Company bonds and stocks. Salt
Lake & Eastern Railroad stock. Salt Lake
Book Company stock and Doming, Sierra
Madre & Pacific Railway stock.
To the Kentucky Mineral & Timber
Company, $368,394, the col la t oral being con
tracts on certain lands in Southeastern
To the Amity Land and Irrigation Com
pany, $S54,fiee. the collateral representing
a controlling Interest in certain irrigation
d! tehee in Colorado.
To the total $536,049 was added interest
of $25,443, making the total of $6Gl,4fiL
How Bank Got From Under.
The manner of transferring the loan
from the Western National Bank to the
Mercantile Trust Company, when the
bank examiner objected to the collateral.
Is thus described by Mr. Morton:
Henry B. Hyde, who was president of the
society at the time and also a director In
the bank, arranged to transfer the collateral
to the Mercantile Trust Company la the fol
The collateral was first assigned by the
bank to George V. Turner, secretary to Ifl
G. Fitzgerald, then president of the Mor
oantlle Tract Company. Contemporaneously
with tho assignment, Turner, on the security
of the collateral, obtained from the trust
company a loan of $061,401 (the exact amount
that the collateral stood at en the books of
the bank) evidenced by his note dated Novem
ber IS. 1S84; and this amount wan turned
over to the bank In payment for the col
lateral which It had assigned to Turner.
Upon Turner note there was Indorsed a
guaranty of payment by Marcellus Hartley,
John E. Searles. Louis Fltxgerald, "IV. jf.
Color. Jr., and H. B. Hyde, and upon all re
newals of the note the same guaranty was In
dorsed. These gentlomen were all directors
of the Western National Bank and held con.
lderaMe amountn of its stock. Mr. Hyde
also was president of this society, as atated;
Mr. Fitzgerald was president of the Mercan
tile Trust Company and a director of this
society and chairman ef Its nuance committee;
Mr. Hartley was als a director of this
clety and a member of its finance oommlttee.
Millions Sunk on Property.
It developed soon after the Mercantile
Trust Company assumed the loans, Mr.
Morton reports, that the collateral for the
loan flDUohn W Young was worthless,
and then it wag that an enormous sum
was spent In an effort to develop the
Kontuoky and Colorado properties. On
July 1, IMS, the cost of tho Kentucky
property stood at $619,067 and the cost of
the Colorado property at $2,803,638. The
cost of the Colorado property was as
sumed by the Commercial Trust Company
to the extent of $500,000; by the Western
National Bank (now the National Bank of
Commerce) to the extent of $309,000, and
by the American Deposit and Loan Com;
pany (now the Equitable Trust Company)
to the extent of $100,000 on certificates of
participation Issued to them respectively
by the Mercantile Trust Company on Jan
uary 23, 1900, and agreements were exe
cuted by Turner and the guarantors or
their representatives consenting to the
issue of the certificates and agreeing that
the collateral should apply to them
equally with the notes held by the Mer
cantile Trust Company. The Turner loans
were made by the Mercantile Trust Com
pany In 1S61, but Mr. Morton .finds that
the Tccords of the Equitable Life Assur
ance Sooiety contain no reference, prior
to 1S0O, to the Turner loans.
Makes Equitable Liable.
Mr. Morton continues:
The Mercantile Trust Company, however,
has produced an Instrument rigaed by James
W. Alexander, president, dated May 11, 1W)0,
about a week after the death of Henry B.
Hyde, certifying that the Turner loan and
additional advances for the same account were
really made for the benefit of the society,
as It was the principal shareholder la the
Western National Bank and was practically
pledged for Its protection. On February 6,
1900, over Arc years after the guarantors had
Incurred their obligation to the trust com
pany. President Alexander addressed a let
ter to each of the aforementioned Individual
guarantors or their representatives, stating
that the Turner loans were made by the
Mercantile Trust Company at 'the request of
the sooiety and that it was at the rcqueat
of the society that the Individual guarantors
guaranteed the trust company against loaf,
and that therefore the society would hold
them (the guarantors) harmless from Xsa ea
account of their guaranty.
On February 14, 1000. the executive oom
mlttee of the socloty passed a resolution au
thorizing the president to convey to the In
dividual guarantors the asruraneea ' of th so
ciety for their protection. This resolution
is the only minute on the records ef any
oommlttee of the society or its board of
directors in respect to any connection of the
society with the Tumor loans.
On February 14, 1000, the president of the
society, Mr. Alexander, also wrote to the
officers of the three aforementioned corpora
tlono holding certificates of participation in
the Turner loans, "repeating that tbe leans
were made in the Interest of the society
and assuring them that the society would pee
that the amounts their companies loaned
would be protected.
"Will Sue Trust Company.
Am soon as 1 became aware of the facts
In regard to tilts transaction I referred the
matter to Wallace MacFarlane, special conn
ed, to ascertain what the society's legal re
sponsibility was in the case and he gives
roe as his opinion that- the Mercantile Trust
Company should look to Its guarantors for
the payment of the obligation and that the
society Is in no eense responsible to the
trut company, and it Is his opinion that It
Is very doubtful whVther the roclety 1b liable
to the guarantors. This, however. Is a mat
ter that can only be nettled by litigation.
I have notified the Mercantile Trust Cempany
to this effect and have urged that It proceed
against its guarantors. I have ateo notified
the trust company that we -would expect to
have repaid to the society $718,264 and in
terest, which I find the society applied on
these loans, and I have instructed counsel
to take the necessary proceedings for the
recovery of thla money. .
.1 have been unable to form a definite opin
ion as to the value of the properties by which
the Turner loana were secured. They cer-
CConcluded on Page 3.)
BI 1 AIRSHIP
Aeronaut Beachey Carries a
Letter From Exposition to
Vancouver Barracks. .
HE FAILS IN RETURNING
Wind Proves Too Strong and He
Sails With Current Seven Miles
and Lands Xcar Orchard,
A mossage by airship, the first In his
tory, was sent yesterday by Theodore
Hardee, assistant to the president of the
Lewis and Clark Exposition, to General
Constant Williams. Post Commander, at
Vancouver Barracks, nine miles away,
and the successful navigation of the air
was done to some purpose. For the past
two months the Exposition has been the
scene of numerous successful airship
flights, but not until yesterday was an
airship used as a medium for carrying a
message from one place to another.
The aerial messengor which performed
this unique feat was the airship "City
of Portland," using the gas bag of the
airship "Gelatine," operated by the dar
ing young aeronaut, Lincoln Beachey.
who has achieved glory and fame by hit
wonderful airship performances.
Message by Airship.
The message carried and faithfully del
ivered by Beachey follows:
Portland. Or.. Sept. 10. 1005.
General Constant Williams, Commanding
Department of the Columbia, Vancouver Bar
racks, Washington: Dear Sir I have the
honor to convey to you, by bearer, the com
pliments of the president of the Exposition,
Mr. H. W. Goode. and to express the hope
that thlfl uniquely transmitted roeeeage will
be delivered to you promptly and safely by
Aeronaut Lincoln Beachey, the pilot of Cap
tain Baldwin's airship "City of Portland.'
In this connection permit me to my that if
this message reaches you, as we new have
every confidence it will, you will enjoy the
distinction of being the first one to have
ever received a document conveyed under sim
ilar auspices, and President Goode and myself
will share your honors in being the first to
transmit the name. Yours very truly.
(Signed.) THEODORE HARDEE.
Assistant to the President.
Heads for Vancouver.
Captain T. S. Baldwin, owner of the
"City of Portland," and" large crowd of
spectators watched the airship, as It
started on its strange mission, as a mes
senger through space, from the Exposi
tion ground? at Portland, on a journey
among the clouds to Vancouvor Bar
racks. It was 11:15 In the morning whon
the airship started on Its voyage. Aero
naut Beachey steered upward until he
reached a height of about 2000 feet and
then headed for Vancouver. A strong
adverse wind was encountered, but the
navigator of the air continued on his
journey regardless of Impeding winds,
reaching Vancouvor Barracks and deliv
ering the message In 40 minutes time.
Wind Proves Too Strong-.
Whon the airship landed at Vancouver
It naturally created somewhat of a sensa
tion and became the center of attrac
tion for the short space it remained there
before departing on Its return with a
message from General Williams to Mr.
Gracefully the airship rose high above
the barracks and for several miles battled
with the winds, which had changed and
were then blowing In an opposite direc
tion. Thus, the aeronaut encountered
strong head winds both going and return
ing. HIs progress was materially hin
dered by the force of the upper air cur
rents and Beachey was compelled to de
scend to oarth and make a landing. After
waiting awhile for the winds to subside.
(Beachey again started on his aerial voy
age, but when high up In the air he
found a stronger current than any which
he had yet encountered, and belng-power-less
to make any headway, he was com
pelled to fly with the wind until he could
make a safe landing, seven miles beyond
Lands Near Orchard.
After leaving Vancouver, the airship
City of Portland proceeded two miles
towards Portland, when a breeze blowing
at the rate of 36 miles an hour was en
countered, against which Aeronaut
Beachey found it Impossible to continue
hla course. The City of Portland then
drifted with the wind for about seven
miles and Beachey decided to give up his
attempt to return to the Exposition
The landing was made 'on the farm of
A. B. Gllmore, one mile north of Orchard.
Harry Stonehouse grabbed the anchor
rope which had been lowered and was
carried for several hundred, yards,- when
George Howard came to his assistance.
Together they managed to fasten the an.
chor to a fence and the City of Portland
was brought safely to earth.
Last night the airship was taken to
Orchard In a farm wagon and will be
brought to Portland today. It was entire
ly unharmed by the trip and will be
ready for another flight at any time.
When the weather permits Beachey will
carry a message to The Orcgonian office.
OPERATORS WILL RESIST
Baer Declares Against Eight-Hour
Day for Miners.
SCRANTON, Pa., Sept. 19. One of the
largest jcoal operators In this region,
who has had a conference with Presi
dent Baer, of the Reading, today de
clared unhesitatingly and for publica
tion, that the operators will not, under
any consideration, grant the demands
of the mlnqworkcrs for an eight-hour
day and that they proposed to agree
only that the present agreement shall
Announcement to this effect will be
made, he said, after the4 miners held
their convention on December H.
FARMERS MAY FORM UNION
Organizing In Middle States to Join
Federation of Labor.
CHICAGO. Sept. 19. (Special.) The
Farmers of Illinois. Wisconsin, Indiana
and other adjacent states may organize
and affiliate with the American Federa
tion of Labor at the coming convention
in November. The prdject is finding
great favor in Wisconsin, according to
J. W. Morton, the Chicago labor leader.
Morton say the farmers are enthu
siastic over the plan to organize and
control the price of their products.
Tho organization will be called the
American Society of Equity and Its
workings will bo along the lines of
Printers Win at Topcka.
TOPEKA, Kan., Sept, 19. The striking
, Union Job printers of this city have won
their demands for an, eight-hour day
from the local Typothetae. Heretofore
the printers have been working nine hours
daily and receiving $16 weekly. The new
contract calls for an eight-hour day and
Printers Win More Shops In Chicago.
CHICAGO, Sept, 19. Twenty-four
independent printing shops today
signed .contracts with the Typograph
ical Union for putting Into effect the
eight-hour day after January 1. A total
of 15S shops in Chicago have now
signed the agreement. f
Coast Man Officer of Carmen.
BUFFALO. Sept. 19. The Brotherhood
of Carmen In convention, here elected
L. L. Hanna, of Vancouver, B. C, sec
ond 'vice-grand chief. .
NO DELEGATE FOR ALASKA
SPECIAL COMMITTEES LATEST
SCHEME OF CONGRESS.
Legislators Who Visited Territory
Will Propose It Guarantee In
terest on Railroad Bonds.
OREGONIAN NEWS BUREAU. Wash
ington, Sept. 19. Those Senators and
Representatives who visited Alaska this
Summer, including Speaker Cannon,
wore not favorably impressed with the
Idea of giving that territory' a delegate
in Congress, but have outlined a sub
stitute plan which they will bring for
ward next session. They proposo treat
ing Alaska as Congress treats the Dis
trict of Columbia, appointing a special
committee in the Senate and House to
consider and. handle al legislation re
lating to Alaska.
This will place Alaskan matters In
the hands of men directly Interested In
the territory and. It la believed, will
produce better results than could bo
attained by a delegate. Tho committee
was satisfied that no ono delegate
could Intelligently represent the whole
of Alaska because of Its vast extent
and the varying needs of different sec
tions, and Congress would never con
sent to more than one delegate under
any circumstances. If the plan of these
men, which has the Indorsement of the
Speaker, shall be carried through, a
new committee on Alaska will be cre
ated In tho next Senate and House.
The Congressional party which vis
ited Alaska I also convinced that
Congress should do as much to aid rail
road building In Alaska as it has done
for railroads in the Philippines, and a
movement will be put on foot to pass a
bill next session under which the Gov
ernment will guarantee 3 per cent on
bonds Issued for the construction of
Alaskan railroads. The special pressure
at proscnt is for a road from ValJez to
More Land for Reclamation.
OltEGOXIAN NEWS BUREAU. Wash
ington, Sept,-19. The Secretary of the
Interior today withdrew from entry 12,
S6 acres of land In addition to those
already withdrawn for the Dubois irri
gation project in Idaho, It being the
belief of the Reclamation Servico that
part of sections 16 to 36, township 6
north, range 29 cast, can be brought
within the scope of that work.
Conference of Reclamation Men.
OREGONIAN NEWS BUREAU, Wash
ington. Sept, 19. A special meeting of
Reclamation Engineers D. W. Ross, D.
C Henny, anJ A. J. Wiley has been
called at Boise, October 18, to consider
and pass upon surveys and examina
tions made on the Boise-Payette project
during the Summer.
NEW HARRIMAN SLEEPERS
Sixty Sumptuously-Fitted Cars for
Overland Limited Trains.
OMAHA, Neb., Sept. 19. (Special.)
Sixty of the most elaborately-appointed
Pullman cars ever used west of the Mis
souri River have been put on the Union
Pacific overland limited to California and
Portland. Forty of these cars make the
run to California and 20 to Portland. The
new cars have ten sections each. Instead
of 14 sections, as was usual with the style
formerly used, and have two windows In
stead of one broad window to a section.
To Improve the ventilation electric fans
have been Installed. There has likewise
been a great Improvement In the lighting
facilities. Both gas and electric lights are
available in bronze chandeliers of artistic
pattern. The woodwork Is all of highly
polished mahogany and the upholstering
Is In old gold. .
There are a drawing-room and a state
room at one end of the car. These two
apartments may be thrown together and
converted Into one. At the other end of
the car Is another stateroom. The ap
pointments of the toilet-rooms are even
superior to the majority of those In the
flrst-dass hotels of the large cities.
ST. PAUL, Sept. 19. The plant of
the Anchor SHver-PJate Company was
totally destroyed by fire tonight. Loss,
BUEF MEN START
S BOUGH HOUSE
Free-for-AII Fight in Repub
lican Convention at
FIST BLOWS BRING BLOOD
Deputy Sheriffs and Police, Sum
. moncd to Restore Order, Take
Sides and Mix In the
Fray Reformers Win.
WORK OF CONVENTION.
Republican League candidates for
chairman and secretary elected by a
vote of 3 to 175.
Committees ea organization appointed.
Platform committee instructed at
once to provide for a fusion with the
Raef faction expected to walk out in
the event fusion is agreed upon with
SAN FRANCISCO. Sept. 19. (Spe
cial.) The Republican municipal con
vention was turned into a free-for-all
fight tonight. Delegates fought on the
floor of the big auditorium, on the stago
and In the ante-rooms. Great groups
of politicians wrestled on the floor,
driving their fists Into each other's
eyes and sprinkling the woodwork with
blood. To add to the turbulence the
Deputy Sheriffs and the police sum
moned to restore order fought with
The warring factions were the re
form "delegates and the followers of
Rucf. When the smoke of battle cleared
away, the reformers held the fort. After
quiet nad beon entirely restored the
reformers proceeded to put through
their programme, calling for fusion
with the Democrats and denouncing
Schmltz and Rucf In scathing terms.
Galleries Were Packed.
Thsre was a rumor early in the day
that Ruef had planned to carry tho
convention by force. He controls one
wing of the party and seeks to use it
to further the cause of Mayor Schmltz,
who has been nominated, by 'tha Union-
Labor party for another term. Ho
marched into the convention with 175
delegates. Opposed to him were the re
formers who had 223 delegates. Ruef
had packed the gallery and as soon as
the oonventlon assembled It was evi
dent that trouble would break.
Everything went smoothly until E.
E. McGushln, a Ruef delegate, obtain
ing the floor tried to upset the pro
gramme. He was declared out of order
by Temporary Chairman Sontag, but re
fused to leave tho stage. Sergeant-at-Arms
McGee was told to escort Mc
Gushln to his seat. As McGee attempted
to carry out his orders, friends of Mr.
McGushln rushed to his assistance.
Gus GUfoather, a " Rueflte. struck
the sergeant-at-arms across the face
with his fist and then the general melee
started. There was a wild rush of dele
gates from all parts of the auditorium
to the stage.
Women Shriek in Terror. .
As they reached the point of combat
they threw" themselves into the fray.
Soon the entire hall was a mass of strug
gling politicians. Women, who had been
provided special seats In the hall, added
to the pandomonlum by their screams.
Whtlo the fighting raged a squad of
bluecoats arrived to restore order. At the
same time a detachment of Sheriffs dep
uties In plain clothes entered tho hall.
There was a clash of authority, and the
policemen and the Sheriff's men. instead
of trying to restore order, fought with
each other. Tho policemon are under the
control of Ruef, while the Sheriff stands
in with the reformers.
Fusion With Democrats.
Finally order was restored. Daniel A.
Ryan, of the reformers, was mado per
manent chairman of the convention, and
it was after midnight when the conven
tion got down to work. A resolution fa
voring fusion with the Democrats on the
city ticket was put through.
The nomination for Mayor will prob
ably take place tomorrow. John S. Part
ridge, a young Republican, will be named
and will receive the Indorsement of the
DENOUNCES HIS OWN ACT
Judge Condemns Exclusion Law
Which He Supported in Congress.
WHEELING, W. Va.. Sept. 19. Today
in the United States Court Judge Dayton
discharged from custody Yee Gee Vu, a
Chinese laundryman of this city, who had
been Indicted for violation of the Chinese
exclusion act. It was shown that he was
a merchant In Boston before coming here
and not a laborer. In giving his decision.
Judge Dayton, who was recently appoint
ed to the bench after serving ten years In
It was largely a question of present ex
pediency, to meet tho demands of the west
ern country to shut out the Chinese, that
the exclusion -laws were passed. We might
as well admit that some as bad legislation
gets upon the statute books enacted by Con
gress as by our State Legislatures. There
cannot be any question about the propriety,
and I always felt the necessity, of passing
laws restricting certain classes of foreign
Immigration, but never could understand
why that restriction should be placed upon
the Chinese and not be placed upon Italians.
Slavs. Hungarians and the south of Kurope
laborer. Just as obnoxious to this country as
the Chinese. And while the Chinese ex
clusion laws are upon the books, our gates
have been opened to those other classes of
laborers. Thla court, as far as he can. pro
poses to construe for the Chinaman and
against the Government because he thinks
It la an unjust discrimination.
I think I have said that there are two
thing in my Congressional career that I
was ashamed of. One was votlae tar th
oleomargarine bill and the other was vot
ing for thla Chinese exclusion law.
SING BOYCOTT ON STREETS
Blind Minstrels Tell Wrongs of the
Chinese In America.
VICTORIA. B. C Sept. 19. Mall advlcos
from Canton state that songs dealing with
the boycott are composed throughout
Kwangsl and blind singing minstrels,
numerous In that district, are being sent
to entertainments to sing them. European
trained doctors Have pledged themselves
to buy no more drugs In America.
Labor Federation for Exclusion.
WASHINGTON, Sept. 19. A resolution
was adopted at today's meeting of the
executive council of the American Feder
ation of Labor expressive of the desire
of the workmen to thwart any effort of
those Interested In any change of the ex
isting law excluding Chinese laborers and
coolies from the United States and its
Secretary Morrison submitted a financial
report for the past 11 months, whkh
showed a balance on September 1 of $Wt,
323. The report of the American Federa
tion of Labor shows 26.000 local trade
unions and a membership approxlmately
Orders Placed Before Boycott.
SEATTLE, Wash.. Sept. 19. (Special.)
It Is authoritatively announced today
that cotton piece goods mills have Chi
nese orders booked which will keep them
busy until July. These were placed be
fore the boycott against American wares
was pronounced. Since that time there
has been no effort to place orders here,
and unless the causes for the boycott are
withdrawn the trade will be lost at tne
beginning of the next Summer. The ex
tent of this business Is Indicated by the
fact that on the Dakota alone 2500 bales
of cotton sheeting will go to Chlnosa
YELLOW FEVER IS DYING
Decrease in Number of New Cases
NEW ORLEANS, Sept. 19. Official re
port on yollow fever to 6 P. M. Tues
day: New cases 34
Total cases to date 2S37
Total deaths 345
New foci 5
Cases under treatment. 321
Cases discharged 1973
Konner reports three new cases and
Bayou Natchoz reports four new
cases and one death; Tallulah, six new
cases and one death; Patterson, six
cases and two doaths.
Preparing to Receive President.
NEW ORLEANS. Sept. 19. While no
word has yet been received by Mayor
Behrman from the Arkansas authori
ties as to whether the train of the
President would be permitted to enter
that state after having vlsTted hare, it
ts expected the' answer will be favor
able, and the local commltte.esara to
go on with their ,irra1fgeme's1fr"tne
President's reception" here' on Octo
More Cases In Mississippi.
JACKSON. Miss., Sept. 19. (Special.)
A total of 11 new cases of yellow fever
was reported from various Infected points
In the slate during the last 24 hours, as
follows: VIcksburg 6. Mississippi City 2.
Natchez 2, Gulldport 1, Pearllngton 0,
Handsboro 0. No deaths at any point.
CONTENTS TODAY'S PAPER
YESTERDAY'S Maximum temperature. 70
dep.; minimum, 54. Precipitation, none.
TODAY'S Rain. Cooler. Southerly winds.
Japanese peace commission starts for Japan
with treaty today. Page 4.
Several points unsettled In Karlstad confer
ence. Page 1.
Reyes starts revolution In Colombia, Pago 1.
Roosevelt's call for Hague conference stands
and Cxar accepts Invitation. Page 4.
Proposed plan for governing Alaska. Page 1.
Iitlss Roosevelt enters Seoul in state. Page S.
Bennington court-martial Inspects ship.
Important Issue Involved in Vartanian ease.
Judge denounces Chinese oxolusion law
from bench. Page 1.
Foreign steamer lines begin rate war in
Philippines. Page 3.
Morton exposes robbery ef nearly $1,000,000
from Equitable Life. Pa'ge 1.
Wholesale fraud- in Chicago insurance com
pany. Page 4.
Man causes panic at dressmakers' conven
tion. Page 3.
Free-for-all fight at organization of the Re
publican convention is San Fraaelaeo.
Governor Hanley denounces Sherrlek as
gambler and railroad lobbyist. Page 1.
Multnomah takes three and Olympic two of
the wrestling matches. Page 7.
Pacific Coast League scores: Seattle 2. Ta-
coma 0; San Francisco 3. Los Angeles 2;
Portland 7, Oakland 4. Page 7.
Oregon Methodist conference is in session at
Albany. Page 6.
Oregon Development League will be called
upon to consider maximum rate law.
S. Branning. of Salt Lake,, is drowned in
the Snake River. Page 0.
Centralla and Chehalls to be connected by
trolley line. Page 0.
Immense copper deposits are found in
Alaska. Page 6.
Commercial and Marine.
No further transactions In local hep market.
Big wheat movement depresses Eastern
prices. Page 15.
Barley still advancing at San Franoiseo.
Captain Potvllle loses license for neglect
ing to answer signals of distress. Page 5.
Steamer Bremen breaks shaft at sea. Page 5.
Chief Inspectors sustain local Inspectors in
part In Spencer-Scannon case. Page S.
Marine notes. Page 5.
Lewis and Clark Exposition.
Admissions. 22.104. Page 10.
Livestock rhow Is a great success. Page 10.
Airship takes message from Exposition to
General Williams at Vancouver, but re
turn trip falls and Aeronaut Beaehey
lands near Orchard. Wash. Page 1.
Portland and Vicinity.
Samuel leaves the Equitable and wilt or
ganize Insurance company in Oregon.
Page 0. .
First day of the defense In land-fraud eases.
St. John predict that Roosevelt and Bryan
will Join the ProhtHltlonlsts. Page 10.
Temblor shakes the Democracy. Page 11.
Grltzmacher suspects Bailey. Page 14.
Fremont R. Chase Is released. Page 11.
Joseph Teal dies. Page 1L ,
Record of a day in the Municipal Court.
.Case of) Mrs. Hidden stirs Methodist circles.
Governor Hanley Pours Volley
Into Disgraced State
CALLS SHERRICK GAMBLER
Indiana's Chief Executive Reveals
Auditor's Relations With Gam
blers and Railroads Dis
' tributor of Passes.
HAMILTON. Ind.. Sept. 19! In an ad
dress at the reunion of the Thirtieth In
diana Regiment, Governor Hanley, the
principal speaker, made public his reasons
for his action in the case of David E.
Sherrlek, ex-Auditor of State, whose res
ignation was forced by the Governor.
Facts and figures were used to show what
became of the money belonging, to tha
state and that was lost by "David B.
Sherrlek. Auditor of State and common
The Governor charged that $10,000 of. tho
state's money "went by check Into the
hands of the gendeman who was then
operating the Casino" at French Lick.
The Governor then enumerated a list of
what he calls "wildcat securities" aggre
gating a face value of $75,000, Into which
the state's money went.
Carousal at Gaming Tables.
Following this, he charged that Sher
rick's continued absenco from the sessions
of the State Board of Tax Commissioners
"was occasioned by drinking bouts and
"midnight carousals around the gaming
table, from which he could not recover In
time to meet with tho commission."
Ho charged that Sherrlek, at the time
tlie Monon Railroad came up for assess
ment, urged that the assessment bo al
lowed to remain at JIS.WO, because in that
case a friend of his, to whom he was
under great obligation personally, could
get permanent employment with the com
pany. The Governor continued:
Distributor of Free Passes.
"Before my Inauguration I received
trustworthy Information that he had
written to tho management of several
railroad companies In tho month of De
cember, 1904, over his own slgnatureas
Auditor of State, asking them to fend
some pasees lntende'1 for members of the
General -Assembly, then about to con
vene, stating In substance that he ex
pected to have some legislation of per
sonal Interest to himself before that body,
and. If they would send their transporta
tion to him for distribution, he would see
that their Interests and his were cared
for at the samo time. For three weeks
the office of the Auditor of State was
made a broker's office for tho distribution
of free passes to such members of the
General Assembly as would receive them.
Railroads Would Raise Money.
"On the evening of the 13th of Scptem
ber I was Informed by one who had been
aiding him and In whom I have confi
dence, that he could not make a payment
on the 15th. I then sent him a verbal de
mand for his Immediate resignation. The
next morning his resignation did not
come, but some of his friends did coma
and informed ma that the money could
be raised only upon condition that tho de
falcation be kept a secret and that he bo
retained in office. Upon inquiry I learned
that some of the men who were to furnish,
the money were tho representatives of
large railroad interests in the state; that
Mr. Shorrick and his friends were de
pending upon their assistance. I could
make no such bargain a3 that."
REYES BECOMES DICTATOR
3IOB ATTACKS HIS PALACE AND
Coup d'Etat in Colombia Meets Re
sponse in Revolution in.
PANAMA, SepC 19. Unconfirmed re
ports reached here today to the effect that
General Rafael Reyes, President of Co
lombia, declared himself dictator on Sep
tember 16 and imprisoned the members of
the Supreme Court at Bogota. Mobs, an
gered by this action, attacked the Presi
dential palace and were fired on by the
troops, who killed or wounded many of
The reports say that revolutions have
been started In Antloquia and Santiago.
3ILNISTER DISCREDITS STORY
Last News From Bogota Is Country
in Absolute Peace.
NEW YORK. Sept. 19. Diego Mendoza,
Colombian Minister to Washington, Is
staying at present In thlsclty. When in
formed of the Panama despatch tonight,
"I don't believe there Is a word of truth
In the report. I received a cable dispatch
from Bogota two days ago and it said
that the country was In complete and ab
solute peace, and that President Reyes
was engaged In the reconstruction of Co
"If anything "of importance occurred, I
would surely have been informed of It. I
am sure there Is no disturbance In Co.
Painter Lost in the" Alps.
ROME, Sept. 19. A prominent paint
er, Francesco Vitallni. who has been
spending his vacation in the Alps, has
disappeared, and It Is feared that he
ba3 been killed In an accident.