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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Sept. 20, 1905)
xtwmvm. VOX. XLV.- 3TO. 13,973. PORTLAND, OREGON, "WEDNESDAY, SEPTEMBER 20, 1905. PRICE FIVE GENTS. jmimmir jag m EQUITABLE Pi BSD DEBTS Where Nearly a Million of Policy-Holders' Money Has Gone. MORTON SUES FOR RETURN Turner Loans of $718,2 04 on "Worthless Security Taken Off Mercantile Trust Com pany's Hands. r WHERE EQUITABLE MONEY WENT. ' 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 of $S.24. 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 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. 2 Account." 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 ton stated: "In case any other transactions of this character arc developed you will bo duly advised." 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 Kentucky. 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 lowing manner: 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.) TAKES WlESSftGE 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, In Washington. 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. Hardee. 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 Vancouver. 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 grounds. 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 be continued. 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 Socialist theories. 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 $15 weekly. 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 Fairbanks. 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. SHver-PlatcFactory Burned ST. PAUL, Sept. 19. The plant of the Anchor SHver-PJate Company was totally destroyed by fire tonight. Loss, $150,000i BUEF MEN START S BOUGH HOUSE Free-for-AII Fight in Repub lican Convention at San Francisco. 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 Democrats. Raef faction expected to walk out in the event fusion is agreed upon with the Democrats. 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 each other. 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 Democrats. 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 Congress, said: 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 possessions. 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 of 2.CC0.000. 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 ports. YELLOW FEVER IS DYING Decrease in Number of New Cases in Louisiana. NEW ORLEANS, Sept. 19. Official re port on yollow fever to 6 P. M. Tues day: New cases 34 Total cases to date 2S37 Deaths 4 Total deaths 345 New foci 5 Cases under treatment. 321 Cases discharged 1973 Konner reports three new cases and one death. 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 ber 24. 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 The Weather. YESTERDAY'S Maximum temperature. 70 dep.; minimum, 54. Precipitation, none. TODAY'S Rain. Cooler. Southerly winds. Foreign. 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. National. 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. Page 3. Important Issue Involved in Vartanian ease. Page 3. Judge denounces Chinese oxolusion law from bench. Page 1. Foreign steamer lines begin rate war in Philippines. Page 3. Domestic. 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. rollticH. Free-for-all fight at organization of the Re publican convention is San Fraaelaeo. Page I. Governor Hanley denounces Sherrlek as gambler and railroad lobbyist. Page 1. Sport. 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. Pacific Coast. Oregon Methodist conference is in session at Albany. Page 6. Oregon Development League will be called upon to consider maximum rate law. Page . 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. Page 15. Big wheat movement depresses Eastern prices. Page 15. Barley still advancing at San Franoiseo. Page 13. 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. Page 14. 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. Page 10. .Case of) Mrs. Hidden stirs Methodist circles. Pas 1H. GRHBLERS GET TSTE'S MONEY Governor Hanley Pours Volley Into Disgraced State Auditor. 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 gambler." 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 SHOOTING FOLLOWS. Coup d'Etat in Colombia Meets Re sponse in Revolution in. Several Cities. 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 rioters. 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, he said: "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 lombian finances. "If anything "of importance occurred, I would surely have been informed of It. I am sure there Is no disturbance In Co. lombla." 1 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.