MM
VOL. XXV.- SO. 14,046.
POItTIiAXD, OREGON, THURSDAY, BECE3IBER 14, 1905.
PRICE FIVE CENTS.
S
ON BALTIC COAST
Rebel Government in
Control at Riga.
SEPARATION FROM RUSSIA
Officials Killed, Imprisoned or
Driven Out.
CONCESSIONS TOO LATE
Peasants Rise Against Feudal Tyr
anny and Expel Barons Panic
on St. Petersburg Bourse.
Moscow Firms Bankrupt.
PIX)T TO DETHRONE CZAR.
LONDON. Dec. 14. (Special.) The
St. Petersburg correspondent of the
Times cables that n story Is current In
the Russian capital and Is Kenerally
believed that, but for the action of
Count Wltte In unmasking a plot
against the Czar, the Royalist ele
ment would have dethroned his ma
jesty and established a military dic
tatorship on Tuesday last.
Wltte. by means of his underground
connections, secured Information that
a plot was about ready to be consum
mated and he went to the palace and
Informed the Czar. The arrest o
Count Irnatleff Immediately followed.
It Is understood that In his posses
sion were found documents showing
that some at least of the Grand Dukes
were Implicated in the plot.
ST. PETERSBURG, Dec 12. Tuesday
evening, via Helsingfors, Finland, and
Berlin, Dec 13. Two messengers who ar
rived here from Riga today, having
walked about 130 miles to catch a
train at PJock, not only confirm the re
port that a provisional government has
been set up in Livonia, but they say that
many of the troops have gone over to the
insurrectionists. Dvlna Fori, command
ing Riga harbor, is in their possession,'
and the Governor and other Russian of
ficials aro prisoners.
The messengers add that the provision
al government exercises authority
throughout Livonia and part of Cour
land. The new government has declared the
separation of the Lithuanian people from
the Russian Empire. They have chosen
new local ofticials and have decreed the
closing of the spirit shops and breweries
and the annulment of contracts between
the peasants and landowners,
Uprising Against Feudalism.
There is a general uprising of the na
tive peasants who are traveling In armed
bands, attacking the estates and driving
off or killing their owners.
Some of the landowners have organized
volunteer battalions to protect their prop
erty, as the authorities are powerless to
afford aid, but the majority are fleeing
in terror. The peasants forbid the own
ers to soli grain or lumber, and formal
ly declare that the forests and estates
of those who have departed will be con
fiscated. The position of the peasants in these
provinces has been the most deplorable
of any In the entire empire. Conditions
almost approaching those of the feudal
system have been continued down to the
present time. They practically have kept
the peasants In a state of vassalage, plac
ing thorn at the mercy of the German j
barons, from whom they rent land and
purchase the right to cut wood and fish
In the waters of the gulf.
Killing: or Expelling Officials.
The Russian officials are being expelled
from the provinces and many of them
have been killed In the streets of the
towns. There Is a reign of terror at
Riga. Women and children are living In
the upper stories of houses, and foreign
merchants are winding up their business
or abandoning everything in order to es
cape .
It Is doubtful -whether the promise of
local self-government contained In today's
Imperial ukase will have much effect,
at least at present, but it furnishes am
ple proof that the government realizes
It is helpless to restore order without
granting heavy concessions. The partial
concessions granted to the people of the
Baltic provinces are bound to encour
age the Poles, Georgians and other bor
der peoples.
Little Is known of General Sollogub,
who. it is reported, -will be appointed
Governor-General of the Baltic prov
inces, but he is said to be a man of en
ergy with fairly liberal ideas.
Renewed Panic on Bourse.
The bourse again weakened on reports
of commercial failures everywhere in the
provinces, and also In sympathy with the
extremo panicky condition of the Mos
cow exchange. Runs on the savings
banks continue.
The League of Leagues has issued an
address declaring that the recent acts
of the government proved that there was
a determined attempt to suppress the
emancipation movement and demonstrat
ed that political freedom could only be
obtained by an armed struggle, in -which
all the progressive elements were Invited
to join.
Move to Oust Wltte.
The Nasha Shlsn claims to be In pos
session of Information to the effect that
at a conference of Grand Dukes and
court officials held at Tsacskoe-Selo It
was decided that Count Wltte had proved
a failure and that the time had arrived
REVOLUTION
WIN
for the adoption of Arm measure, whlrh
could be employed -with less opposition
under a man like Prince Svlatopolk
Mlrsky, ex-Minister of the Intrrlor. The
paper declare that a further conference
will be held tomorrow, at -which Count
WItto will not be preheat.
It Is reported that Prince John Obo
lensky, ex-Governor-General of Finland,
will succeed M. Durnovo as Minister of
the Interior.
ST. PETERSBURG, undated, via Eydt
kuhnen, Dec. 12. Twelves thousand Cop
sacks have been dispatched to ibe Baltic
provinces.
DICTATOR FOR BALTIC COAST
Wltte Plans to Crush Opposition.
Many Finns Are Bankrupt.
ST. PETERSBURG. Wedncfday. via
Eudtkuhnen, Dec. 34. (Special.) The
newly-created post of Governor-General
of the Baltic, which was established at
the ."suggestion of Count Wltte. slmply
means that a military dictatorship will
be established over that portion of Rus
sia. In tills manner docs Wltte expect
to secure the upper hand of tho who
are opposed to the iircscpt government
and overwhelm all opposition to the
Czar.
Three private banks suspended today
and the bankruptcyu of large arms, both
here and at Moscow, was announced be
cause of stagnation of business. There is
great private resentment over the passive
attitude of the government In the fact of
the financial crisis that is sweeping away
great fortunes, and this fact has greatly
weakened Count Wltte's Influence.
WITTE CONFIDENT OF VICTORY
Declares Army Will Remain Loyal
and .Republic Cannot Succeed.
LONDON, Dec 14. The correspondent
of the Dally Telegraph at St. Petersburg
in a further Installment of his Interview
with Count Wltte. the first part 4$ which
was published Tuesday, says the Premier
declared thut the army would remain
faithful, that the finances of the country
were sound, and that it was not his In
tention to resign.
The correspondent in a series of ques
tions presented numerous instances of
the disloyalty of the troops and marines.
The Premier, answering these questions,
insisted that in all cases the disloyalty
so pointed out was either temporary or
exceptional, and that It had never" de
veloped Into actual infidelity to the Em
peror. It could not be denied, he said,
that the revolutionary propaganda was
being industriously and assiduously
worked In the army and In the navy,
but It was not and could not be success
ful, because the national character was
fixed and the national traditions -were too
deep-rooted. So far as he knew the de
mands of the malcontents were altogeth
er of an amicable character. Troops were
accustomed to obey the Emperor Im
plicitly, and the Premier was unable to
concolve any transference of that alleg
iance. Says Republic Could Not Exist.
The correspondent suggested the pos
sibility of a sudden coup, by which the
Republicans would seize the reins of gov
ernment, to which Count Wltte replied
that the members of such party would
be ruthlessly cut down by the Imperial
troops. The Idea of such a republican
government existing for even three days.
the Premier said, could only be enter
tained by foreigners who had never had
an opportunity to study the Russian na
tional character or by thoughtless Rus
sians who were incapable of Interpreting
that character.
'Russian national life," said Count
Wltte. "is pivoted on loyalty to the Em
peror, and how deep-rooted and wide
spread and . fruitful is this principle will
be seen if the revolutionists should be
foolhardy enough to build upon a con
trary assumption."
Finances In No Danger.
Referring to Russia's financial position.
Count Wltte attributed all the rumors
of financial difficulties to the machina
tions of the revolutionists, who, he said,
fought with poisoned weapons and whose
statements were accepted because the
people were credulous.
"I am absolutely sure." the Premier
continued, "that Russian bondholders
have nothing moro to foar today than
they had six years ago. Certainly they
have no reason to fear that the Interest
on the bonds will be ourtalled. Russia
has never had recourse to such an ex
pedient, nor will it in this situation. I
am unable to conceive of Hussia be
ing reduced to an end when she will
fall to discharge her obligation to her
foreign creditors. Even In the lmpossi-,
ble event of the revolutionists suc
ceeding in establishing a government,
they would be bound to keep faith with
the bondholders."
Count Wltte argued that, unless her
finances were thoroughly ound, Rus
ia never would have stood the recent
ordeal the tnrowlng of securities on
the market, the runs on savings banks,
which were organized by the anar
'chists. and the like
Will Remain at His Post.
Regarding his own position. Count
Wltte said that certainly 'Ma health
had not Improved, but he was quite
strong enough to continue the dis
charge of his duties and was there
fore resolved to faithfully remain at
his post, since neither porsonal ambi
tion nor any motive but duty to the
Emperor and the fatherland had actu
ated his acceptance of the heavy re
sponsibilities attaching to his office.
In finally summing up the situation,
the Premier declared that the Russian
political parties were nearly all of
little consequence with the exception
of the Revolutionists, whose -single-mlndedncss
was exemplary, whose tac
tics were ingenous and whose energy
was marvelous.
CAPTURE FORTRESS OF RIGA
Rebels Gain Control Landlords Or
ganize for Defense.
ST. PETERSBURG. Dec 12.-(Nlght.)-(Tuesday,
via Eydtkuhnen. East Prussia.
Dec IS.) Reports are In circulation to the
effect that the insurgents at Riga have
captured the fortress there. Inquiries
made at the Ministry of the Interior -re-
Ceclu4 a 4.)
MUTINY AMONG
WILLIAMS' MEN
Lamar and Shackleford De
nounce the Democratic
Leader Openly.
FRIENDSHIP IS AT AN END
Attempt to Secure Tarty Unity on
Rate Bill Aggravates Dissension.
Williams Is Repudiated as
Boss by Mlssourian.
WASHINGTON, Dec IX The "washing
of Democratic linen for the amusement of
Republicans." as Williams, the minority
leader, put It Monday, occupied the atten
tion of the House for more than four
hours today. The result accompusnca
was a "defl" thrown at the minority
leader by Lamar of Florida, and another
by Shackleford of Missouri. The com
plaint of both resulted from the failure
of Williams to recommend their reap
pointment as members of the committee
on interstate and foreign commerce. Both
made long speeches in which Williams
leadership was assailed from many points.
Will Urns replied to Lamar at some
length, and briefly to Shackloford. His
defense was that last session the Demo
crats on this committee were divided, and
he deemed It necessary for the good of
the party and the country that a united
minority report should be made on the
subject of railroad rate legislation.
At times there was high tension In the
debate. Lamar was particularly bitter In
his criticism, and openly declared that
his heretofore personal friendship for
Williams was forever at an end unless the
criticisms If himself were retracted. He,
however, would recognize Williams as the
party leader. Shackleford denounced all
bosses and placed himself entirely Inde
pendent of party leadership In the House
The subject under dlwmsslon was the
committee distribution of the annual mes
sage of President Roosevelt. At the con
clusion of the Democratic debate this had
not been accomplished and the House ad
journed. Insurance Causes Few Words.
Speaker Cannon announced the transfer
of Mondcll (Wyoming) from the commit
tee on military affairs to that of public
lands, and of Miller- (Kansas) I rum pttbMc
lands to military affairs. The transfer
gives the two members the same com
mittee assignments they had in the last
Congress.
Committee reference of the annual mes
sage of President Roosevelt was made
according to the subjects treated.
The question of Federal control of in
su ranee was assigned to the committee
on ways and means. In explanation of
this, Payne said that, in his oplatOR, the
only way the United States can deal with
Insurance companies is through the tax
ing power, and over this the ways and
means committee has Jurisdiction.
"What was done with that weighty sub
ject of election expenses?" asked Cock
ran of New York.
"It went to the committee on elect .on of
President. Vice-President and members of
Congress." replied Payne.
Reverting to the Insurance question.
Mann asked Payne If the committee on
interstate' and foreign commerce would
not have had Jurisdiction, should it be de
termlned that Insurance could be regulat
ed as commerce. This was for the House
to determine, replied Payne.
Objection to sending the Insurance ques
tion to the ways and means committee
was made by Hepburn of Iowa. Hepburn
maintained that the commerce clause of
the Constitution .gave Congress power to
control Insurance.
Lamar Proclaims Enmity.
Lamar of Florida was recognized, and
reverted to the question of committee ap
pointments he had referred to on Monday.
Williams, the minority leader, at once left
his seat and took up a place near Lamar.
Speaking of the, leadership of WilHaros,
Lamar said he would recognize him as
the party leader, but not personally, "un
til he relieves me of an unjust charge on
his part." Ho stated that he did not
agree with Williams that Republicans
would enjoin personalities between Demo
crats. Emphasizing this, he referred to
the personal debate of last session be
tween Sullivan of Massachusetts an
Hearst of New York. At that time, he
charged, the minority leader had made no
objection to the procedure.
Lamar reverted to the great Importance
of railroad rate legislation, and reviewed
the action of the House at the last ses
slon, which Included voting down the Da
vcy DHL proposed by the minority. The
Davey bill, he said, had first been adopted
by a Democratic caucus. The minority
leader, he said, was forced to amend the
Davey bill on the floor of the House or
sec It go out to the country In an taper
feet condition. If that caucus was bind
ing then, he challenged the minority
leader to deny the fact that no one could
have amended It. He conceded that the
minority leader should have power to
make committee removals as well as ap
pointments, but he must exercise that
power In the face of moral obligation and
reasonableness.
Lamar concluded with the statement
that he considered his removal from the
comment; committee an act absolutely
untenable, and an aspersion upon his pri
vate character. He said It had gone to
the country through the press that the
minority leader would not tolerate follow
ers of Hearst. He admitted that on Mon
day he was in the heat of anger, and glad
that he ba-1 been stopped. However, his
personal friendship for Williams had
ceased.
Williams Defends His Coarse.
Williams was at once recognized to re
ply. "I n," he said, "about to perform
a very unpleasant duty, and one as to. the
wisdom, of which I have serious doubts.
The gentleman takes himself too serious
ly. He thinks Ire can make a National
Issue out of a committee assignment, but
he can't do it. He thinks he was re
moved, but he was not. There was no
committee." Williams asked If he would
not have been lacking In moral courage
in every essential ot a floor leader If he
had made up a minority membership of
the commerce committee which would
have been divided four to two on the ques
tion of railroad rates.
"My brother would "have gone off that
committee under slmjjar circumstances."
and ho added -that, if the Hearst bill had
received the minority support In commit
tee, he would have supported It In caucus.
The conversion to the Hearst bill ha
likened to the conversion of Saul on his
way to - Damascus. It was Inspired, he
declared. Applause followed Williams
when he said he had not allowed person
alities to Influence his transaction ot pub
lic service. He referred to the committee
appointments ot Hearst labor and Irri
gation ot arid land and admitted he did
not love Hearst.
"Why should I love a millionaire who
owns newspapers which he seems to be
devoting to tearing me downT" he asked.
Lamar Renews Attack.
Lamar at once asked for recognition, as
did Shackleford. but Lamar was recog
nized. He spoke with feeling, and charged
that the minority leader had called the
rate-bill caucus of last session because he
was angry at being turned down.jy his
colleagues on the Miles amendment. "It
was not a. caucus. It was a gold brick,"
he said.
Williams interrupted to caution Lamar
and to "prevent unpleasant things from
happening," adding that "the gentleman
is not permitted to use Insulting language
on the floor ot this House."
Lamar referred to a letter of criticism
of Hearst by Williams. The latter de
nied the criticism. During this denial.
Shackleford commended Hearst personally
and for his rate bllL He said he was too
glad to see that President Roosevelt In
his message "bad come around to the
Hearst bllL"
"The word of one Missouri Democrat
Is equal to two leaders." was a retort of
Shackleford to a statement of Williams
denying the use of certain language at
the St. Louis convention.
Shackleford Repudiates Bosses.
"In Missouri, we have raised the cry.
Down with the bosses.' " declared Shack
leford. who Insisted that the wishes ot
his constituents were much moro to mm
than the leadership ot Williams.
Continuing his denunciation of bosses.
Shackleford said It was the McCalls and
McCurdys who prevented the election
W. J. Bryan as President, and that If.
H. Rogers and J. P. Morgan would be
(Concluded on Paxe 4.)
CONTENTS TODAY'S PAPER
The Weather.
TnSTERDAT5 Maximum temperature. -t
dec.; minimum. 39. Precipitation, trace.
TODAY'S Cloudy atu cnx-ttlcd with prob
ably occaslcnal rata. SouUierly v,jnds.
Rat??.
Rbeis establish independent rovernment la
Ballle province asd drive out or kill
Octal.. Pin 1.
Czar appoint dictator for rebel province and
xrants concessions, rare I.
Plot to dethrone Czar Oiled by WUU. rare 1.
Many bank and batlnrm bouses fall. Pare L
Eyewitness tell of quarrel between Cxur
and Grand Duke Boris. Paxe 5.
Wltte confident army will support him
Pare 1.
fcurvivers rive details a; Oiei ruusacie.
Pas 3.
PoreljrB.
Castro appeala to South American nations for
aid to nest France, rase 7.
New Viceroy enter" Dublin. Pare 7.
Chinese refon to repair American ihlp. Pace
National
Lamar and Shackleford openly revolt aralnst
wimam in House, raxe l.
Chairman Burton will support Columbia Jetty
aasroprlaU&n. Pace 1.
Taft and Shonts expose Wallace's blundersJ
Root's plea for merit system In Consular sr-
vtee. Pa-e 3.
President withdraws Cannon's nomination.
Pais l.
Politics.
New York Court of Appeals declta Hearst a
recount and he will appeal to Legisla
ture!. Page 2.
Shaw speaks on currency reform. Pace 7.
Insurance Scaadal.
Sew president of Mutual Life. Pace 1.
Perkins resigns from New York Life. Pare 1.
Reform committee appointed by Mutual Lire.
Pace 5.
llarrtaan win answer Ryan's cbarrt. Pace 1.
'Store testimony about the I'rudenUaL Pace 1.
Domestic.
Former Portland man murders his stolen
wife. Pare 7.
Trial of Hummel hastened because e.Terts are
made to murder Dodce. Pas 3.
Another cane of haxlnr at Asaapoluv. Pare 4.
riport.
Pulllam defeats opposition in National
League. Page 7.
Pacific Xoast.
Washington Commission sires railroads 21
days tune to readjust rales. Pate 6.
Combination ot Seattle newspaper men at
tempt to blackmalL Psxe 6.
Fine library for Oreron lnsatics. but few
books for the convicts. Par 6.
Elmore Packing Company fined for Uleral
fishing at Tillamook. Pare d.
Eual suSrare Initiative petition Sa filed at
alea. Paxe C
Commercial a ad Marine.
Condition of local butter trade. Pare 15.
Liquidation weakens wheat and barley at
San Francisco. Pare 13.
Wheat turns weal: at Chicago. Pare 15.
Stock, market la professional control, rare
lv.
Two' French barks are chartered to load
wheat at Portland at reduced rates.
Pare 14.
Pertland-Atlatlc liner ArahU arrives from
Hontkonr via Yokohama. Paxe 14.
rertlaad and VtdsUy.
I F. Conn, of LsJterlew, says GOUI4 con
trols Nevada-California Oreron Railway,
bulldlnr Into Oreroa. Tare 11.
Judc Cameron lenient with men. bavins de
pendent families. Pace 11.
Judxe Sears rules that union hare power to
discipline members. Psre 0.
Fore f men clearinc richt of way for trad
ers en Waltula Pacific. Pare 14.
Jerry Phelps, charred with serious crime,
rosists arrest. Pare 10.
Tax levy in Portland will probably exceed
15 mills to raise necessary revenue, -pare
14.
United- States Senator John M. Oearin re
ceives cenrratstatlons; will take up du
ties at once, race 10.
Examination in Bruin case brinrs charie of
attempt. by city administration to Intimi
date patrolmen. Paxe 10.
Loss iry fire In wholesale house ot Wad hams
& Kerr Brothers arrrerates- JtOO.000.
Pare II.
Assessor Strain of Umatilla County would
make, radical reforms is taxation. Pace
14.
Committer of forty sets plans afoot for unity
of Republicans. Paxe
Governor Johnson ot- Mk48eotX4iadarses at
titude of Presldeat on- rata vestio.
rrc 7. ,
NOT AS COSTLY
AS AM'
Peabody Chosen President of
Mutual Life at One-Third
the Salary.
PERKINS QUITS OFFICES
Severs Connection With New York
Life Prudential Officials Re
veal Huge Profit on Indus
trial Insurance Lapses.
HARKIMAN WILL ANSWER.
N'EW YORK. Dec. 13. Edward H.
lUrrtraan today wrote to the lexlsla
' tlve Insurance Investigating; commit
tee asking that he be gives an oppor
tunity to go oa the stand and testify
rerardlnr hU attempt, as described
by Thoraw F. Ryan, to share la
Rraa's holding In the Equitable Life
Assurance Society.
The committee replied that his re
Quest would be granted. anS Mr. II ar
rimca may testify tomorrow.
NEW YORK. Dec IX Two Incidents af.
fectlnc; the life Insurance situation In
New Tork today overshadowed Urn legis
lative Investigation committee. While the
committee was Inquiring; into the conduct
of the Prudential Life Insurance Co
pany and the Metropolitan Life Insur
ance Company George Perkins resigned
the Yiceprcsldency and chairmanship of
the finance committee of the New Tork
Life Insurance Company. He was suc
ceeded as vice-president by Alexander E.
Orr. president of the New Tork City
Rapid Transit Commission, and as chair
man of" the finance committee by John
Claflln. head of the II. B. Clafiln Com
pany. Another important move In the situa
tion was the election by the trustees of
the Mutual Life Insurance Company to
day of Charles A. Peabody to succeed
Richard A. McCurdy as president of that
company at SZd.OX) a year. Mr. McCurdy's
salary was HJO.OCO. Mr. Peabody Is a law
yer, the American representative of Wil
liam Waldorf Astor and a. director In
several banks and other corporations; of
which one Is ihp Illinois Central Railroad
Company. Mr Peabody also was nomi
nated as trustee of the Mutual Life In
surance Company, to succeed Justice
Rufus W. Peckham. and Emory McClln
tock was nominated to succeed Ellhu
Root. They cannot be elected trustees
until the next meeting: of the board.
Prudential Under Fire Again.
United States Senator John F. Dryden.
of New Jersey, president of the Pruden
tial Life Insurance Company, again testi
fied before the investigating committee to
day and made a statement to the com
mittee giving: his reasons for favoring
federal supervision of life insurance com
panies through a National Insurance de
partment, which, he said, should have
high authority over them. This, he said,
would benefit both the companies and the
insured. "
The tendency of the holders of indus
trial policies In the Prudential and Met
ropolitan Life Insurance companies to
lapse was examined In great detail by
Charles E. Hughes, counsel of the com
mittee, who read a' statement by the
Prudential that S per cent of its indus
trial policies lapse within flvo years of
their Issue. Mr. Dryden declares there Is
much to be regretted from the standpoint
of the company, as well as that of the In
sured, and that the tendency now Is to
reward a greater persistency on the part
of the Industrial holders than formerly.
The Senator asserted that Industrial In
surance, even with high rates and tenden
cy to lapse, is the greatest economic force
now in operation In this country.
Buncoed by a Broker.
Just before adjournment today Haley
Flake, vice-president of the Metropolitan
Company, told of an incident in which
that company commissioned William A.
Read to buy 3333 shares of railroad stock
for the company. Mr. Flske said that Mr.
Read the same day sold the stock to a
company of brokers at $10 a share less
than the broker had sold it to the Metro
politan. Mr. Flske said he had tried to
get the money back, but Mr. Read re
fused to surrender it.
John K. Gore; actuary of the Pruden
tial, submitted a list of dividends paid
on Industrial Insurance business by 'his
company. It showed the payment In 1201
of 383.000 of "additional benefits." payable
In case of death of the Insured five years
after the Issue of the policy.
The total Industrial death claims paid
in 13M were J8.Sr7.OX). and the cash divi
dends credited the policy-holders In the
Industrial department in 13M amounted to
J31.0C0.
A statement Mr. Hughes read showed
that in the last five years the record of
the company's industrial department
was:
Received In premiums. 5 11043 TTX
Paid out to policy-holders. fZ3,ZG; of
this Cl-aSSjO) was for death claims; $2.
015.73 In cash surrender values, and J2,
513.571 In dividends.
Of the amount of cash surrender values,
Mr. Gore said Jl.S'CO.CCO was In paid-up in
surance. Tbo amount paid into the Prudential
Company In premiums since its organi
zation, witness said, is about CS7.O.0C0.
In the same time its earnings, apart
from premiums, he said, are $19)0.000.
It paid to policy-holders In that time
about and Its expenses, apart
from the amounts paid -to policy-holders,
have been n3).0COi)t
The assets of the company at the end
of 1501 were S&51L9. and Its liabilities.
Including reserve, JT3.1S7,:5- Of the pres
ent surplus of mj24.H7, witness safd,
was capital stock. He be Id t&at
over SO per cent of the remainder is held
to pay dividends to policy-holders.
Mr. Gore said industrial Insurance In
this country is still In the experiment
stage, and the company considered It nec
essary to hold large funds to meet possi
ble heavy demands.
Prctnlams and Losses Paid.
Mr. Hughes brought out from the wit
ness figures which. Mr. Hughes said,
showed that the Prudential wrote in the
last live years twice as much industrial
as ordinary insurance, but that the net
increase in each of the two departments
was about equal. Mr. Hughes also elic
ited the fact that in the last 30 years the
Mutual Benefit Insurance Company of
New Jersey has received from policy
holders H96.C00.0CO and paid them elOS,
(CO.CO0: that the Mutual Life Insurance
Company received $S3).CCO,000 from policy
holders and paid out to them $560,000.
CC0. and that In the same SO years the
Prudential received In Industrial pre
miums $S7.00O.0CO and paid its policy
holders of that department J92.00O.C0O. Mr.
Hughes asked why the proportion paid
back by the Prudential Is so much less
than those of the two others.
Mr. Gore said the rapid growth of the
Prudential and the great number of
lapses explained it.
Considering the lapses, the witness as
sented to Mr. Hughes statement that
there Is a great wa3te by the policy-holders
In the company, which at the end
of ISM was about $4 .500.000. Witness esti
mated that policy-holders In the Indus
trial department who had paid J2.5CO.000
in ISOf allowed their policies to lapse In
the same year.
Lapses or Industrial Policies.
Mr. Gore said that about 77 per cent
of the industrial insurance written by his
company in 1904 lapsed in the same year.
Senator John F. Dryden. president of
the Prudential, was recalled, and Mr.
Hughes asked htm about the apparent
waste of policy-holders through lapses.
He said that what his policy-holders
saved by Insurance they would save In
no other way. He agreed with Mr.
Hughes that apparently about two-thirds
of the Insured get nothing" back, and the
Senator added that this is regrettable
and unfortunate, but. nevertheless, he
asserted, that tho system. Is the greatest
economic force In the country today.
Mr. Dryden again took the stand after
recess and Mr. Hughes read a letter
from an agent of the company who com
nlalned azalnst the regulation of tho
Prudential Company which required an
agent to provide another policy-holder
without a commission when an old one
lapses. The Senator said the company
had been unable to find any other plan
that would protect both policy-holder and
the company, and still be remunerative
to the agent. The Senator said he could
not maintain, the energy of the agents
by any other plan, and that otherwise
in a short time the company would have
no business.
"If agents were not held responsible
for laDses " the Senator said, tne aaat
tlonal coat to the company would be so
exeat that It could not do business.
The Senator said that Peter Egenolf.
a New Tork agent of the Prudential,
gets 5541 a week. Out of that be has
to nay clerk hire and some other ex
penses. Eight or 10 of the agents get
more than 510.CO0 a yean
Buy and Sell to Themselves.
Mr. Hughes went over with the Sen
ator the sale of SSCO.0CO bonds of the New
ark Consolidated Gas ConrpHTriVa.niT
brourht out that the Fidelity Trust Com
pany was a member of the syndicate
which underwrote the bonds and got
stook of that company as a bonus. Sub
sequently, the Senator said, the Pruden
tial Company bought DOtn siock ana
horuis from tho Fidelity Company at tho
market price. Mr. Dryden declared that
the Prudential does not go Into under
writing syndicates and that It will not
rfoixwtt monev with the Fidelity Trust
Company for the purpose of enabling It
to engage In syndicate underwriting. The
Fidelity Trust Company did not under
write the stock of the fuduc service tor
poratlon. Dryden said he Is a member
of the committee of the Fidelity Trust
Company which sell3 securities to tn
TH-Miantfal Comnanv and also of the
Prudential's committee which buys them
Some other roer. he said, are members
of both committees. He said when the
Fidelity Trust Company bought stocks or
bonds It did not Know wnetner ine pru
dential could take them or not- The Pru
dential holds Itself so Independent that
it Is unbiased, the Senator aaaea.
Favors Federal Supervision.
-vf- -troche nslcpd the Senator his
on th Question of Federal super
vision of Insurance corporations, and he
replied:
I have felt It would be a rreat advantage
to policy-holders and companies to hare Fed-
i iwnn. T advocated It tn w speech
in Boston. I think those for and aralnst
Federal control sre divided Into parts by the
constitutional part of the question. 1 ano
.CT rr ennrress under tho Thomas
.i..... .-iiiat Insurance Is debatable.
know the Supreme Court's decisions are that
insurance Is not uuersiaie. wmuinvt.
such decisions have been on state laws. 2o
Federal law has raised that point. If send
lnr a telegram from one state to another is
interstate commerce. It Is CltTIcult for a lay
man to understand why Insurance Is not
interstate commerce. Federal control of in
surance would assure, protection of compan
ies dolnr buslnew in forelrn countries. An
other effect would be to- ruard axalnst the
co r petition of worthless and irresponsible
companies, particularly fire Insurance compan
ies in the West. Such an attempt was made
In the last session of Conxres. I Introduce
the bill, hut the fire Insurance men opposes
it on the xround that It would make honest
companies suffer with the dishonest- A Na
tional department could cross state lines and
pursue theee companies wherever they xo.
One of the xreatest. benefits of a Katlonal
department would be the establishment o
a code ot laws which would be persistent.
rr. of the evils of the business Is the multi
plicity of laws differing- la the various states,
and the Tesult la the companies do not know
with what law they must comply.
He would confer upon the National de
partment absolute authority to Investigate
the companies. This Investigation, he
said, would lead to more effective super
vision. He agreed with Mr. Hughes that
the state is in a position effectively to
supervise, but added that there is no rea
son why there should be 0 such state
supervisions.
Limit on New Business.
Mr. Hughes asked his opinion as to how
much the insurance companies should be
allowed to increase their business. The
Senator said ho had no objection to a
limit, but not one which would discrimi
nate among the companies, some of which
are far ahead of tho others.
Halsey Flske. vice-president of the
Metropolitan Life Company, was next
called. Mr. Hughes asked him about the
contributions from the John Hancock and
Prudential Companies for legal expenses.
Mr. Flske said that at the end of the year
he makes up a atatemcnt of what he has
expended outside of New Tork State and
Canada. In which there is no division of
expenses. Mr. Hughes asked him what he
did with the contributions of the two
other companies, and Mr. Flske said the
sum of all the "contributions was divided
equally.
Mr. Flske. dd he had expended about
jmU in opposing an anu-cnua insurance
WU in Pennsylvania.
Tricks ot a Stockbroker.
"Mr. Hughes asked Mr. Flake why the
Metropolitan Insurance Company had
feougfet 308 shares of Lake Shore St Mish-
4CKl4ea oa Pe 5.X
B
lira to i
FOR JETTY FUND
Pledges Help to Colum-
bia River Men.
MAKE UP OREGON'S LOSS
River and Harbor Chairman
Valuable Ally. .
GOOD BACKING IN' SENATE
Taffs Estimate Will Be Cut, but
Emergency River and Harbor
Bill Is Likely to Pass.
Jones on Committee.
OREGONIAN NEW 3- BUREAU, Wash
ington. Dec. 13. Chairman Burton", of the
House rivers "and harbors committee, is
not only in favor of making an appro
priation this session for continuing the
Improvement at the mouth of the Colum
bia River, but he will, at the proper time.
take off his coat and go to work to get
sufficient money to keep work In prog
ress until another rivers and harbors bill
can be passed. How he will strive to ac
complish this result. Mr. Burton has not
decided, but In conference today with Sen
ator Fulton he expressed his friendship
for the project and said he was fully
aware of the necessity for making an ap
propriation this "Winter.
Will "Work "With Double Energy.
Chairman Burton, who is in a position
to do more for the mouth of the Columbia
River than any man m the House or.
Representatives, will work In behalf of
that project with double energy in view
ot the fact that Oregon has no represen
tation in that body to look after her In
terests. He will not let the Columbia
go. because there Is no one from Oregon
to press Its claim, but will " himself
shoulder the burden which would have
fallen on the Oregon Congressmen had it
been possible for themrto-attetld this ses
sion. He will have the hearty co-o?ra-tlon
of Representative Jones, ot "Wash
ington, who Is also on the rivers and har
bors committee, and who is anxious to
aid in procuring an appropriation for con
tinuing -work on the Jetty.
Six Senators Interested.
Senator Fulton will work Un harmony
with Mr. Burton and will have the aid of
Senator Gearin and the Senators from
"Washington and Idaho. He will see to it
that the Senate is at least as liberal as
the House Ir .Its treatment of this project.
If possible, the amount appropriated by
the House will be raised In the Senate,
but it may be impossible to bring this
about. Much depends upon how the mat
ter Is presented to the Senate.
Mr. Burton has as yet received no letter
from Secretary Taft regarding the neces
sity for an immediate appropriation and
Is unable to say how much money will be
asked for. It Is probable, however, that he
will cut the department's estimate, partic
ularly If that .estimate is extremely liberal.
It seems absolutely Impossible to get
enough money at this session to complete
the Jetty, but In view of the attitude
of Mr. Burton. It seems quite probable
that some appropriation will be made.
Emergency Rivers and Harbors Bill.
There is a possibility that an emergency
rivers and harbors bill may be framed and
passed this session, making an appropria
tion for the mouth of the Columbia, and
a very few other projects which will suf
fer unless more money Is made available
immediately. Such a bill was passed two
years ago. carrying only a few millions
altogether, and that may be the method
decided upon this year. If this cannot be
done without building up a large rivers
and harbors bill, recourse will probably
be had to an amendment to the sundry
civil bill. This, however, is a detail to be
determined later on.
"WITHDRAWS CANNON'S NAME
President Heeds Protest of Washing
ton Senators Against Action.
OREGONIAN NEWS BUREAU, "Wash
ington. Dec. 13. At the request of the
"Washington Senators, the President today
withdrew the nomination of Miles Cannon
as Register of the North Yakima land
office. The President stated that he had
sent in the nomination on the recommen
dation of Secretary Hitchcock, and with
out giving it any personal attention. The
Secretary, who bcllevea Congress Is going
to abolish the office of Receiver of local,
land otflccs, wanted ta retain Mr. Cannon
at North Taklma, and asked for his trans
fer to the Reglstershlp. now vacant. But
the Senators do not like this method of
filling offices In their state without con
sulting them, and they said so.
"When tho President understood what
had been done, he promised to recall Mr.
Canon's nomination, and did so. He fur
thermore asked the Senators to file their
recommendations.
Mr. Cannon, It appears, had planned to
retire when his present term of Receiver
expires, next May, and he will be suc
ceeded by some man from Kittitas Coun
ty, not yet chosen. Had his transfer been
confirmed by the Senate, the Senators
could not have disturbed him for four
years. In case he should undergo a change
of heart and care to retain his new office.
It Is understood that Z. 7. Coleman, of
North Yakima, will be recommended for
Register within a- short time, and it is
Concluded, oa Pare 7.).