VOL. XLV.- XO. 14,039.
PORTLAND, OREGON, WEDNESDAY, DECEMBER 6, 1905.
Jfl
SMS HOLD IIP
NSURANGE MEN
Graft Worked in Iowa
and Missouri.
MUTUAL RESERVE RICH PREY
Eldredge Tells of Blackmail by
ex-Officers.
LAWYER PROMOTES PLAN
Charges Against President for Pay
ing Exorbitant Commissions Used
Effectively Xo Graft Was
Paid to Payn.
NEW YORK. Dec. 5. Instances in
which the Mutual Rcsorve Life In
surance Company paid an aggregate of
about $20,000 in what Vice-President
George D. BIdregc of that company
called "hold-ups" were related to the
investigating committee by Mr. Eld
redge today. In one case, in 1898, Mr.
Eldredge testified, the company paid
515,000 to John McDonald, a Phila
delphia lawyer, who had been active
Jn organizing the policy-holders of the
Mutual Reserve Company Into a move
ment which charged President Freder
ick A. Burnham of that company with
mismanagement and demanded his re
moval. The charges also reflected upon
Mr. Eldrcdge's management as vice
president and threat was made to ask
for the appointment of a receiver for
the company.
Engaged in this movement of the
policy-holders also was J, s. lloffecker.
a former auditor of the company, .who
had been dismissed or who had re
signed. Before leaving the company
Hoffecker Informed Mr. Burnham that
lie resigned because their Ideas as to
common honesty differed so much and
because he knew of so many question
able transactions of which Mr. Burn
bam had approved. Mr. Eldredge de
clared that lloffecker was not dis
missed until he had demanded an in
crease In salary from $35 to $100 a
week and practically Said it was safer
for the company to keep him than to
let him go. In view of what he knew
about the company.
Held Up by Iowa Men.
"Another instance of a 'hold-up."
Mr. Eldredge said, "was In 1S90, when
Max Beehler. a so-called 'examiner"
of the Iowa Insurance Dopartmcnt,
came to New York with his son as
an assistant, examined the company
and presented to It a bill for J4S9"for
the examination. Rather than pay the
bill, the company withdrew Us busi
ness from Iowa, but later paid that
bill and another of $34G to Max Beeh
ler for a verification of his previous
examination, in order to get permission
again to do business in Iowa."
Mr. Eldredge told also how he tried
to secure a license for his company
to do business In Missouri In 1898 and
found that It would have to employ
"V H- Phelps as attorney before it
could do so. Phelps got the license
for the company In three days, and
was paid $3500 as "Illegal fees," Mr.
Eldredge fcald.
Xo Hold-Up by liOtiis F. Payn.
Mr. Eldredge testified also that he.
was certain there was no truth in the
statement made to a Canadian investi
gation committee by James G. "Wells,
ex-vlce-presldent of the Mutual Re
serve, that Mr. Burnham had told Wells
be had to raise $40,000 to pay to the
New York Insurance Dopartmcnt in
1899. when Louis F. Payn was Superin
tendent of Insurance.
The witness had previously stated
that a portion of a report made by
Isaac Vanderpool, an examiner of the
New York Insurance Department, after
an examination in 1S99, was eliminated
after a hearing before the Insurance
Department and before it was placed
on file. The part stricken out recom
mended that the company be not allowed
to call Its lease of the home office an
) asset and include It In Its surplus.
Mr. Eldredgo declared the Mutual Re
serve paid no money to the New York
State Insurance Department in 1899,
except for the examination.
Manager's Huge Commission.
He said that Morton D. Moss was
general manager of the agency depart
ment of the Mutual reserve In 1897.
The total commission paid to Mr.Moss
In 1897 aggregated $450,000. and In the
same year the advances to him were
$236,500. Mr. Eldredge said the com
pany had vouchers for all Moss ad
vances to agents.
In reply to questions by Mr. Hughes.
Mr. Eldredge said that Hoffecker. re
signed as auditor in 1S9S after having
refused to make an audit of a Balti
more agent's account as witness had
ordered him to make it. Mr. Hughes
read letters from Mr. Hoffecker to
Mr. Burnham in which Mr. Hoffecker
wrote that he would not audit as re
quested, that "our ideas of common,
honesty differ so much." and that he
knew of so many questionable trans
actions approved by Mr. Burnham that
he could no longer stay with the com
pany. Mr. Hughes asked If Mr. Hof
fecker was then dismissed.
Mr. Eldredge sald.Jfoffecker was dis
missed after he demanded an increase'
In salary from $35 to $100 a week and
practically said that he knew so much
it would be safer for the company to
keep him. Mr. Eldredge said a brother
or cousin of Hoffecker in Delaware
organized the policy-holders and that
"one McDonald" in Philadelphia, and
Hoffecker in New York, were active in
the movement 6f the policy-holders
wnich threatened to move against the
management of the Mutual Reserve
to secure the appointment of a receiver.
It was In the nature of extortion'
said Mr. Eldredge, but we had to con
sider the expense and the interests of the
policy-holders. We chose the lesser of
tho two evils."
V ere tho cliarges, in effect, that
President Burnham had been guilty of
mismanagement, and should bo re
moved?" askod Mr. Hughes.
"There was a threat of a receiver,"
said Mr. Eldredge.
"Against your management, also?"
'l presume o."
i
Cliargcs Against Burnham.
yir. Eldredgo said the" charges espe
cially were directed against Mr. Burn
ham, on account of the large advances to
.air. .moss.
Mr. Eldredge said that at the end of
1897 the Mutual Reserve held Mr. Moss
liable for $150,000 advanced by the com
pany directly to the agents, and that the
company was reimbursed In full for that
by his making over to the company in
189S the commissions due to him on bus!
ncss he had done In 1S97. Mr. Moss re
ceived for himself over commissions to
agents in 1897 the sum of $92,000. Mr. El
dredge said:
"In 189S the company cancelled this
contract and made a new one with Moss
by which it paid him an overriding com
mission of 10 per cent above the commis
sions he had to pay to his agents, and
renewal commissions as before."
John A. Hyland. bookkeeper of the
company, was put on the stand, and tes
tified that at tho end of 189S Mr. Moss
owed the company 5S6.0O3 and was then
credited with $93,800. Mr. Hughes asked
many questions to ascertain where the
$33,800 came from and witness said it whs
cash due on commissions, but was In the
nature of an estimate.
Lobbyist Phelps' Hold-Up.
Mr. Eldredge then testified to the Iowa
hold-up and said there was an incident
of a similar nature In Missouri In 189S.
J. H. Chlldcrs and H. J. Orcar. exam
iners for Missouri, first examined the
Mutual Reserve company in 189S, and
then the Superintendent of Insurance,
Edward T. Orear, raised the question
whether the company had any right to
do business in that state under the Mis
souri assessment law. Mr. Eldredge went
to Missouri, and engaged as attorney Mr.
Clardy. counsel for a railroad, to bring
mandamus proceedings to compel the is
suance of a license to the company.
"Mr. Orear heard that we were In con
sultation with Mr. Clardy." said Mr.
Eldredge. "and notified us that he oould
not Issue the license."
Witness then went to Jefferson City and
saw Mr. Orear. who told him he had re
ferred the case to the Attorney-General.
The witness then went to see the At
torney-General.
"I had been beating back and forth
from the Attorney-General to the Insur
ance Department until I concluded there
was no intention of dealing with the sub
iwt'i -said Mr. Eldredge. "and I finally
mpde Up my mind to leave Jefferson City.
A.n employe of the department tncre told
me that in the person of Mr. Clardy we
were employing a man who was bitterly
hostile to the Attorney-General and the
Superintendent of Insurance, and sug
gested the name of a man. who, if em
ployed, would be able to secure the license.
I declined to employ the man and came
back to New York, but after considera
tion the attorney was employed and he
procured our license In about three days."
Mr. Eldredge presented the bill of this
attorney, which called for tho payment of
$3500 for legal services to W. H. Phelps.
The company paid the bill.
We have now made a clean breast of
every time wc were held up,' said Mr.
Eldredge.
The witness again stated that no money
had been paid by his company, directly
or Indirectly, to the Insurance Depart
ment of New York State. Ho said it had
paid $15,000 to Tracy. Boardman & Piatt,
attorneys, for legal services In connec
tion with legislation necessary to the re
incorporation of the company in 1900.
VAXDIVEK AFTER MUTUAL LIFE
Going to .New York lo Force Answer
to Questions.
JEFFERSON CITV. Mo.. Dec. 5. Super
intendent of Insurance Vandlver will
spend next week In New York investigat
ing me juuiuai j-die insurance company
and the Mutual Reserve Life Insurance
Company. It has now become known that
the Mutual Life officials were notified
through one of its representatives more
than a month ago that practically the
same demands would be nude upon them
that were made upon the New York Ufe
Insurance Company by the Missouri De
partment of Insurance, also that in pur
suance of this notice. Mr. Vandlver on
November 11. made formal demands upon
tho company for certain information.
stating in his letter that It was prelimi
nary to other Inquiries that would be
made looking to action that was to be
taken by the Missouri department.
This preliminary Information has not
yet been furnished and Mr. Vandlver to
day sent notice to the company's officers
that he would be in New York on Sat
urday, accompanied by an actuary, an ex
pert accountant and an attorney for tho
purpose of either securing answers to his
questions from the officers of the com
pany or entering upon detailed examina
tion of Its affairs as provided by law.
peabody; for president.
Banker and Insurance Man "Will
Head Mutual Life.
NEW YORK. Dec 5. The Herald says:
Charles A. Peabody has been selected as
next president of tho Mutual Life Insur
ance Company. Unless the programme
prepared by the trustees is unexpectedly
changed. Mr. Peabody will be elected at
a meeting of the board to be held to
morrow. According to this programme
Frederic Cromwell, now acting president
of the company, will be made vice-president,
and Emery McCllntock. the com
pany's actuary, second vIce-presidenL
Cromwell and McCllntock will replace
Robert Grannls and Walter R. Gillette,
respectively.
This announcement was made yester
day on authority of a member of the
Mutual's board of trustees, who has tak
en an active part In the recent move
ment" to reorganize the management of
the company. Mr. Peabody was said .to
have been a compromise between fac
tions in the board, each of which had a
candidate.
Mr. Peabody is well known la this city
as a banker and railroad man. He is
a director of the Gallatin National Bank,
the Bank for Savings, the National Bank
of Commerce, the Astor National Bank,
and is trustee of several other financial
institutions. Mr. Peabody is also' k di
rector of the Illinois Central. tne Union
(C-scu4t& cii -fact tj.
MESSAGE READ
TO CONGRESS
Both Houses Hear Annual Dis
cussion of Nation's
Affairs.
PANAMA CANAL BILL TODAY
House Will Take Action Unless Wll-
Hams Ucnews Objection Protest -Against
Illinois Member on
Ground lie Is Alien.
WASHINGTON. Dec 5. President
Jtooscvelf message to Congress received
the attention of the House for two and
r half hours today. Its reading was lis
tened to with marked attention and at Its
conclusion the document was applauded.
Preliminary stops were taken toward ap
propriating the needed emergency funds
for the Panama Canal and this matter
will be tho business for tomorrow.
Should unanimous consent be refused for
its consideration, a special rule from the
committee on rules will be available
which will put the bill on Its passage
after a limited period for discussion.
The House received and ordered re
ferred to one of the regular election com
mittees a protest from the Fifth Congres
sional District of Illinois stating that
Anthony Michalek. who was yesterday
sworn In as a member of the House from
that district, is not a citizen of the
United States. The protest was1 presented
by Mr. Ralney. of that state, who askod
for consideration of the matter by a spe
cial committee. This point was the only
one contested, it being suggested by Mr.
Mann that it was a matter for the proper
elecMono committee to consider and his
amendment to this effect was adopted on
a yea and nay vote.
Upon motion of Mr. Goldfogle. of New
York, a resolution was- read expressing
the sympathy .of the American people for
theh distressed Russian Jews. The reso
lution was ordered printed in the recent
and referred to the committer on foreign
affairs.
When the House met at noon there was
a full attendance of members prosoat.
and the gallerios were comfortably filled
In cnUclpation of the reading of the
message of President Roosevelt.
Representatives Humphreys (Dera
Mies.), and Kitchen (Dem.. N. C). pre
sented thomsclvos and took tho oath of
office.
icticary utpp.. .Minn.), reported as
chairman of the- Joint committee that
President Roosevelt had been notified
of the convening of Congress.
Pending .the receipt of .the Presi
dent's message, the Houso. afir ihi
reading of the journal, took a recess for
ten minutes.
The reading of the message was bgUH
at 12:5. it having been delivered at that
time by Mr. Barnes, assistant secretary
to the President. Printed copies were at
once distributed to members anrf th
reading was followed with attentive in
terest. Mr. Hepburn (la.) was recognized to
ask unanimous consent for the introduc
tion tomorrow or the bill making an ap
propriation of J16.500.W for work on the
iHiiama. canai. upon the statement of
Mr. Williams (Miss.) that he would ob
ject today, but might not tomorrow. It
was agreed that the report should be
made tomorrow. -
On the announcement of the doalh of
John M. Pinekney. late a member of the
House from Texas, by Stephen? of that
state, the House agrefd to ry..1!,1line
to his memory and adjourned at 4 o'clock
as a further mark of respect.
SENATORS HEAR MESSAGE.
Dcrotc Vlirce Hour to Hearing His
Rcwmmcndntions.
WASHINGTON. Dec. S.-The Sonat
was in session for almost three hour, in-
day, and gave practically all of its time
to listening to the reading of the Presi
dent's annual message. Thim ,-,. .
large attendance of Senators, and the ral-
lerles were well filled, most of the time
with representatives of the general imb.
lie. The document receive in t.n.
tlon from both classes, many Senators
following the reading throughout with
printed copies In their hands.
The document was delivered bv Socrr-
tary Barnes, and followed upon an an
nouncement by Allison (Rep., la.), chair
man of the committee appointed to wait
upon the President and notify him that
Congress was organized and prepared to
transact business.
In making the announcement of tlw
committee's call at the White House. Al
lison said that the President had asked
him to extend his greetings to member
of Congress individually and collect! cly.
ine reading of the message was are-
ceded by the swearing in of Brandegee
(ep., conn.), and the retirement of Proc
tor (Rep.. W. Va.) from the commlttco on
military affairs.
CANAlAPPROPHIATION URGENT
Must Be Available to Meet' Payrolls
on December 15..
WASHINGTON. Dec 5.-25ecrctarv of
the Treasury Shaw sent to Speaker Can
non today .estimates aggregating J1S.WD.OD
for continuing the work on the Panama
Canal from December 1. J KG. to June 5).
1156. He sent with the estimates a let
ter from Robert Shaw Oliver. Acting Sec
retary of War. In which he urged imme
diate action, in these words.
The- truth li a in rent that this money
cxnld be appropriated not later than Decem
ber! 15 in order that the payrolls sad oct
aUndlng bUU hlch Have .bri ton traded and
which CDht to be paid should be made. It
I cMe Tcwalble that 'before the whole ap
propriation ie mad. Concm will Jelre to
have 4Ucus!on and bearlne before the com
XBltttM. Wt Vx Uuacciate ac-ccMity iue Uc
pa1n of tbe payrolki la order that the force
of 13,060 even now employed oa the Uthstm
stay be coattased and not broken op hardly
i nc HppTvpnauon win oe Km io ine
House before the committee has been ap
pointed, according to the present inclina
tion o Speaker Cannon. The urgency of
the appropriation makes it necessary that
immediate action be taken. Should pro
longed debate be excited, the committee
on rules, which was appointed yesterday,
will take the matter la band, and a. rule
placing the bill on its passage- after a
limited time for discussion will be brought
in ana adopted.
MOVES tENT TO OUST MITCHELL
1 '
Many Senators Want Ilia Seats oh
.Important Committees.
OREGONIANNEWS BUREAU. Wash
ington. Dec. S. A movement lt on foot
among certain Sena.mr3 to not oriTye-
prlve Senator Mitchell of the chairman
ship of thescjnal committee, but also to
tako from hurujila membership of the
commlttctvpn Judiciary. There is a loud
clamor araor.g the lawyers of the Senate
ivr puiccs wxi mc jtuiciary committee,
and Mitchell's place! much sought. It
remains for the committee on committees
to say what shall be done with Mitchell's
assignments.
Senator Hcybum is now a. candidate
for the commerce committee.
ASKS MILll'POR JETTY
MACKENZIE'S REPORT TO HAVE
ft;s. SUPPORT.
Effort to Secure Enough Money to
Continue Work Till Next Scs- '
slon or Congress.
OREGONIAN NEWS BUREAU. Wash
ington. Dec 5. TbeChIcf of Engineers
Is preparing a report to the Secretary
of War. In which he will strongly rec
ommend an appropriation of close to Jl.
(09,000 for continuing the extension of
the Columbia River Jetty. His recom
mendation will be Indorsed by Secretary
Taft and forwarded to the committee on
rivers and harbors. 1C may be sent to
Congress by a, special messenger from
the President, though this has not been
determined upon.
( The fact that General Mackenzie will
officially recommend an immediate ap
propriation for continuing work on the
Jetty and the fact that his recommenda
tion will be officially Indorsed and sent
to Congress by Mr. Taft. will help mater
ially in procuring the money so badly
needed. Under Mr. Taft's Instructions.
General Mackenzie will pare down
Major 1-aagfltt's estimate to the lowest
figure which he believes will meet the
emergency; in other words, to thellowest
figure which will keep work undir way
until the Spring of 1M7. when trfs. nl
river and harbor bill will pass, but he.
intimated today that" he believed nearly
$l.0 would bt required.
There is a possibility that Congress
will make a further reduction in the
amount, though Senator Fulton and his
friends will struggle to get the full
amount recommended by the department.
No action will be taken on Mr. Taft's
recommendation until after the- holidays.
CONTENTS TOpAY'S PAPER
The lValber.
TESTEItDAVS Maximum trmp'raturr. 42
minimum. 33. Precipitation. OS2 of
an Inch.
TOUAYJ5 Cloudy with rain. Southerly
lndc
Kuttia.
Operatem renew decision to contlnuo strike
when Coawicka dliere. mutiny. PaRe 1.
Father Gapen tuxnp capital for law and
order and leads workmen away from So-
ciaUvts. Pace 1.
American marines guard enibawy- Pace I.
Czar practically a prisoner In hla palace
Tage 5.
Jrwirh massacre renewed at Odetsa. page 5.
ForelgB.
Campbell-Bannerrnan undertakes to form
cabinet In Ensland. Paice 4.
Powers accept Turkey new offer, while pre-
parinR to elze more porta. Page S.
Threatened riota In Bohemia. Page S.
National.
President Roosevelt' mwwte to Conj-reM
deal with many weighty question.
Page 14.
Fultn will oppose confirmation bt Marsha!
Iteed. Page 2.
Gtreral Mackenzie propose SI.000.00fl appro
priation for Columbia Jetty. Page 1.
Railroad Kate QvrHlon.
Pennsylvania railroad abolishes all free
passes. Page 4.
Elklns prop" a rate bill. Page -I.
IIMneis reduces all rates In state. Psge 4.
La FoJIette proposes radical measures in
.Wisconsin. Page 4.
Eleven persons drowned In shipwreck off,
Cape Breton. Page 3.
Official of Mutual Reserve Insurance Cast-
tany tells how It was blackmailed.
Page 1.
Mark Twain speaks at banquet on 70th
birthday. Page 4.
Sport..
Multnomah football eleven usdergoe hard
practice work to be ready to. meet the
Farmers- Page 7.
I'scMc Coast.
FeatUe. for years turned a. deaf ear to
charges of Alaska, miners. Page-1.
Marshal Harrington, of Piinevllle. arrrsted
for brutal assault on Yi. J. Craln. Page a.
Federal District Attorney at Seattle to move
against alleged trust of gralnbuyers.
Pace o.
Spokane saloon window to be" dressed by
fash tenable church pastor. Page 11.
Captain A. C. Baker, of cruiser Raleigh.
ay Chinese boycott is growing. Page 3.
Results of elections In Washington towns.
Page a
Commercial and Maxtor.
All nop market are quiet. Page 17.
Wheat strong at Chicago on Russian sews.
Page 17
New York stock market strong and broad.
Page 17.
Tex maay bananas at San Francisco.
Page 17.
Wool trading dull at Boston. Page 17.
Money in raising range horses In Eastern
Oregon. Page 14.
Schooner Annie M. Campbell encounters ter
rific squalls on way from San Francisco
and loses sails and main gaff. Page 5.
Pert land asd Viciaity,
Umatilla project will make the desert bloom.
Fax 7.
Oath of office taken by Judge Wolverton.
Page 10.
Sre America before Europe, motto of club
workers. Page 7.
Bruin and "his segmented force of sleuths
fall to stop .highway robbery. Page 10.
Talks at the White Temple - d arise the
Golden Jubilee. Page '9. '
Mayor 1-ane sufepene. as a witaes la poker
case. Page 18.
Japanese slayer oa trial for his life. Fag
-1ft. -Roreseatative
of JUaufcMsjaa tetlMi at--trsd
tore's- lm Very. pt sMfgf issns;
P 11.
MINERS" PLAINTS
FELLON DEAF EARS
Seattle Took No Notice Until
One of .Its Own Men
Was' Pinched.
INQUIRY ASKED. FOR YEARS
Fraud lit Assay OTflcc Has Driven
Trade Away That Can Xccr
Be Brought 'Back to the
Puget Sound Town.
SEATTLE, Waslu. Dec. 5. (Special.)
For more than three years Seattle heard
the complaints of Alaska miners that the
results from pold shipments to the Seattle
assay office showed an inexplicable dis
crepancy between the returns from those
consignments and the gold deposited at
the San Francisco mint or sold to pri
vate purchasers. And Seattle, sitting fat.
tnuff and contented In the richness of
the trade returns from Alaska, begrudged
the physical exertion involved in listen
ing to Assaycr Wing declaration that
the stories were Impossible.
One day a Seattle man was bitten. His
bank's gold showed losses and he. like
the Alaskans. Investigated and found
something wrong. A careful tabulation
of losses was made and then the Seattle
man went to mint and treasury authori
ties. Seattle woke up. Uxral interests
were suffering and It would never do.
For three years Alaska had cried for
an inquiry and could not enlist Seattle's
help. When a Seattle man viewed the
assay office with suspicion there was re
sponse prompt and energetic.
Thcrv has been no lack of circumstan
tial evidence of fraud in the past. The
trouble was that no one In Seattle was
bcln? injured. What Alaskans lost was
not a matter of much moment to Seattle,
so long as Alaska continued to buy -and
sell here and the opportunity of adopting
pompous resolutions promising future leg
islative reforms In governmental relations
with Alaska Seattle was too complacent
when Its own Interests were not Involved
to llsen to the cry of fraud from the
Hortb.
Jobbed and Robbed at Seattle.
What Alaskans have claimed for years
was demonstrated In the Adams defalca
tion sufficiently to contlrm the beliefs
or some of the Northern miners and busi
ness men. Alaska has been protesting
almost since the time tho rush of 97
begun lhat they were being jobbed and
robbed here, but Seattle has given no at
tention' to the story. Seattle grew care
less and indifferent with opulence: came
to regard the Alaska trade and Alaska
Interests as something that belomc bv
right here and called for no co-operation
or help in return. ,
Why should Seattle listen to the re
iteration of charges of fraud at the as
say office? Seattle was not losing any
thing and Seattle found the Alaskans had
mon-y enough left to pay bills pVomptly.
it was so with the complaints of over
charging; or careless packing and almost
criminal action in dumping goods not
nttcd for sale elsewhere into Alaska. Th
charge of wrongful handling of the Alaska
trade has been made frequently bv Alas
kans, but It elicited no response.
Hooted at Words of Solner.
When X. "B." Solner came down from
Nome after selling his bank In that town
and reported the Injustices of Seattle
trade relations and the carelessness 'or
bunco of Seattle merchants, commercial
Seattle hooted at him. The Chamber of
Commerce was awakened from Its leth
argy and took the trouble to name an In
vestigating committee. In due course of
time Mr. Solner. cashier of a Seattle
bank, too, had exaggerated affairs and
Seattle was dealing Justly with the North.
In the past Seattle had not taken the
trouble to name an Investigating commit
tee, but had given complaints regarding
the assay office the same prompt denial.
The assay office frauds arc proven now;
before the Government's secret service
is through It will probably be shown a
quarter of a million In gold was stolen.
But the-e Is no way of enforcing an In
quiry on an honest basis Into the wrong
ful treatment of Alaska merchants by
local wholesalers.
It Is a fact acknowledged by local ship
pers that a wholesale firm now out of
business was "short-changing" Alaskans;
that goods unfitted for local sale were sold
In Alasku. where protests did not avail.
Facts That Were Kept Hidden.
If the Chamber of Commerce committee
that denied Banker Solncr'a story had
taken the trouble to do so. It could have
found a Seattle president of a big Nome
corporation was buying his supplies in
San Francisco because he was mistreated
here. It could have found that one of
the largest corporations n Seward penin
sula bought San Francisco supplies by
acclden. last Summer and then bought
from the same house In the Fall because
San Francisco methods had been proved
to be superior to those of Seattle. It
could have found there was truth In what
Mr. Solner said, but the committee went
to the interested Seattle shippers for thelr
testlmony. just as Seattle in the past had
asked the interested assay office men to
deny Alaska stories of fraud.
Robghly computed, the shipments from
Seattle to all Alaska, points will exceed
J10,W9,CC0 In value this year. Those fig
ures are accepted for their face value by
Seattle: The Chamber of Commerce and
the business saen.do not realise, what the
trassfttrtaticn company and Alaska bsy
ers know, thai those srure ted4e Ihhu
dmls of thoomads skipped by raH or
kleasatr frcss Saa Fraaci$co Fortiassd
Taconta. and other points to Seattle for
trans-shipment.
Seattle laughed at the story that gold
might no elsewhere as a result of un
satisfactory assay office returns. It Is
half-heartedly acknowledged now that
the Selby smelter In San Francisco,, the
Tacoma rotelter. the Philadelphia and
San Francisco mints and many -private
buyers have been taking gold from the
assay ofSce for three years.
Used to Winter In Seattle.
Seattle would not believe that the Alas
kans could spend the Winter anywhere
but In this city. For the first few sea
sons that was true and Seattle reaped a
harvest from the crowd that came out to
a more satisfactory climate. Then the
Aiarfcars began going elsewhere:' In
transportation circles they will show
you now that most of tho moneyed Alas
kans go East or South for the Winter.
There arc more Alaskans- in California
now than in Seattle. There is more
Alaska- money Invested in I.os Angeles
-.ban In Seattle. They are beginning to
appreciate this fact here. The truth 0
the matter, that the men without means
make up the big percentage of Seattle's
Winter Alaska, colony. Is beginning to bo
understood. But Seattle has not been hit
hard enough yet to awaken.
The " assay office developments hnvc
itartlcd Seattle. A Seattle, man lost, and
that was an unbearable circumstance.
Alaska, might regard Its suspicions of
general graft as confirmed and that is an
cncomfortabla outlook. The assay office
l.as been one of Seattle's boyt trade mag
nets and advertising mediums. It mtsht
be last, ond that was another unbearable
condition.
Great Disgust of Alaskans.
There Is no question but that a great
proportion of Alaskans are disgusted.
They are bitter toward the assay office
and dissati&ficd with the manner In which
Seattle has acted. With a feeling of
unrest and dlssatlsfacttlon gowing for
years, the startling revelations In the.
assay office -have a tendency to confirm
suspicions of the past. Seattle fears it
may drive trade away, and Alaskans-
know that this city will have- to pay In
some measure for the wrongdoing.
If the assay office disclosures had no
other effect than to divert gold shipments.
It would be a blsr lofs. Just the money
that Alaskans fresh from the north spend
'ihcn accompanying their gold here is
a big item in the city's commercial return?-
Die profit in handling this, gold
for the miners Is considerable to the
banks which do business on a proper
basis. And then the feeling of satisfac
tion when this gold Is transferred from
miners to tradesmen and hotelkcepers Is
(.vcrpowering.
If the Alawcr. miners begin shipping
their gold elsewhere Seattle will not mean
much to them. If the go'd does not come
here there will not be any necessity for
maintaining an assay office. If the assay
office should be lost, one of the links that
i!er Seattle to Alaska would be broken
iind the city's chief advertising feature
lost.
Seattle's Only Hope.
In the meantime Seattle faces this
condition helplessly. The time for action
is gone by. Seattle has been defending
the aasay office too long to condemn it
row. and defense Is absolutely Impossi
ble. All that Seattle hopes or could hope
'2 that a complete cleaning out and the
appointment of new officials will restore
some of the lout confidence
It can r.ever make Seattle as strong as
the city was once, but It will help. And
that Is -why Seattle wants to shake off
the entire assay office force, reform
everywhere and go back to Alaska with
specious promises for the fulurc The
story of the past Is a nightmare the
city wants to be ridded of.
FINDS NDRTHWESTPflSSflGE
CAPTAIN AMUNDSTJX IS XEAR
HERSCHED ISLAND.
Norwegian Ship Gjoa Started on Its
Voyage Front the Coast
of Greenland.
SEATTLE. Dec. 5. Major Glassford in
charge of the Government cable office
here, received a message today addressed
to Nansen. the Norwegian explorer, at
Christlania. from Captain Roald Amund
sun, of the ship Gjoa at Fort Efebert.
Eagle City. Alaska, telling of a trip by
dog team from Herschel Island to Eagle
City. Major Glassford gave the message
to the press for publication. While the
message is Incomplete In details, it pur
ports to be from a member of an ex
ploring party sent out by Nansen and
states that the party Is safe with the
ship Gjoa. Wintering at King Point.
The message also states that the Amer
ican whaling fleet is held In the Ice In
the vldnlty of HerschelIsland. and that
all of the vessels were safe, with the ex
ception of one, which was wrecked on
the shore when Amundsun left Herschel
Island.. October 21. There are 12 of the
American whalers In all caught In the Ice.
Tho trip from Herschel Island to Eagle
City-was made up the Mackenzie Blver to
the Peel River and over the divide to
Fort Egbert through an entirely uninhab
ited country and a section that is prac
tically unexplored.
Captain Amundsun. who set out in a
small craft with a crew of but eight men,
found the north magnetic pole, whose
discovery Is originally accredited to Ross
In 1531. although many scientists doubt
that Ross really located this elusive guide
to the compasses of the world.
The north magnetic pole has been gen
erally assumed br- geographers as being
on Boothnia, the most northerly penin
sula of the American continent, and close
to King William Land. It Is supposed to
be a shifting sphere of influence, though
Its variations arc not great. Having gone
from Greenland to a point In the vlcinfty
of Herschel Island, it 'would seem as
though Amundsun at last found the
northwest passage for which Arctic ex
plorers have been searching for years.
Students Strike la Ended.
BELLBFONTE. Pa.. Dec 5. The un
precedented strike of the entire student
body at the Pennsylvania State College
was settled today, aad the students will
return to classes tomorrow. Both the
faculty aad Madents made concessions.
cych Ml Hers Stifled by Smoke.
CHARLESTON". W. V.. Dec 5.-At Hor
toft. last eventeg. seven coal aataers were
swSeeftttd. Tkey were working- in a drift,
when a -smotfen staelc of tke ventitatiwr
farnacs envg-nt ire and tos concwaed.
EN
HEIST REDS
Reaction Against the
Strikes in Russia.
OPERATORS STANDING FIRM
Cossacks' Raid on Meeting
Stiffens Their Resolve.
AMERICAN MARINES LAND
Armed Guard From Cruiser for Em
bnssiy Socialists Deserted by
Gapon, Who Joins Ijaw an'd-
Order . Iarty.
GUARD FOR AMERICAN" EMBASSY.
ST. PETERSBURG. Monday evenlnr.
Det 4 (via Eydtkuhnen. Dec 5). A
cuard for the American Embassy, con
sfctlnK of marines under a petty of
ficer from the tntted States cruiser
Minneapolis, arrived here today.
ST. PETERSBURG. Dec. 4.-(Monday
Evenlng. via Eydtkuhnen, East Prus
sia. Dec. 5.)-AIthough there appears to
be no foundation for the prevailing fears
that an outbreak is Imminent, the popu
lation continues In a state of anxious
suspense.
The garrison has now been reinforced
by 42 battalions of infantry. 15 squadrons
of cavalry and 12 machine gun batteries.
The city Is divided Into four districts,
under Generals Osaroff, Dubenski. Ster
ma and Trodski. respectively.
The government, it Is reported, narrow
ly frustrated a. plot whereby a band of
armed men had planned to raid the state
treasury. One of the conspirators. It Is
said, betrayed his fellows, whereupon the
leaders, knowing that their attack could
be repulsed by the troops with great
slaughter, abandoned It. Tho existence
of this conspiracy led to a report that
martial law would be proclaimed tomor
row. Tuesday, but this is authoritatlvely
denied.
Strike May Cause Panic.
The extension of the strike of the tel
egraphers to the postal system is com
plete, and the paralysis of business Is in
creasing the danger of a financial crisis.
The strike of the Moscow telephone op
erators, who cut the wires and tore down
the poles, has severed the last means of
communication with the ancient capital.
The present conditions are unbearable.
Sympathy with the poorly paid post and
telegraph employes Is now turning Into
indignation against the strikers, and the
public is supporting a formidable move
ment which has been started by all
classes to throw oft the yoke of the revo
lutionaries. The government is undoubt
edly encouraging the organization of the
forces.
Gapon for Law and Order.
The "Law and Order party" took the
lead, which is now being- followed by the
"Society of Strike-Brcakers," but the
most Important movement has been
started under the leadership of Father
Gapon. the former idol of the workmen,
who since bi3 residence abroad has be
come convinced that Russia Is not pre
pared for a republic, and is appealing
to his old comrades to cut loose from the
revolutionary agitators. The latter al
ready charge that Father Gapon has
been bought and that he is a traitor to
the cause of the people. Father Gapon.
however, is sincere, and his Influence un
doubtedly is great.
This being a holiday,' Father Gapon at
tended meetings of all of the organiza
tions which he controlled before January
22. "Red Sunday," at which his words
were cheered to the echo. At these meet
ings the Socialist orators were howled
down and In some cases forcibly ejected.
If this movement 3houId grow and
an effective split among the workmen
be thereby creSted it will prove of
Immeasurable service to the govern
ment in tiding things over until the
meeting of the Douma. .
Terms orfcred by Zemstvoists.
M. Petrunkevitch and M- Kokoshkin,
members of the delegation from tho
Zemstvo Congress. Informed the Asso
ciated Press today that they were
ready to accept universal suffrage,
direct in the cities and indirect in the
country districts, with the addition oC
election laws guaranteeing the four
liberties, press, assembly, speech and
person, which it Is understood are prac
tically ready for issuance.
Neither newspapers nor letters have
arrived from abroad for three days.
Socialists Husband Strength.
The Socialistic workmen's organiza
tion has definitely resolved to remain
spectators of the present struggle un
less the unexpected happens. One of
the leaders explained to the Associated
Press that the organization was hus
banding Its resources and strength for
a final struggle, which, he expected,
would take place about the first of the
year, and in the meantime' it was bend
ing all its energies to spreading its
propaganda among tlje army through
out the empire. He said that a gen-
Lcral congress of Socialists affiliated
with the revolutionary organizations,
would be called later la December,
when he declared, they weald be ready
W II
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