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About Morning Oregonian. (Portland, Or.) 1861-1937 | View This Issue
1 . ' if
Wj& VOL. XLV- NO. 14,067.
I MM HERMANN
Denied That He Is in
' FAMILY IS THE AUTHORITY
Attorney Gatley Does Not Know
Where He Is.
DAUGHTER GROWS ANGRY
Requests That She Be Not Bothered
With Questions Abont Congress
man, as They Were Becom
ing Annoying: to Her.'
Mil. HERMANN'S MOVEMENTS.
Kinder Hermann, accompanied by
Jlpt. Hermann, left Kopeburc for
"Washington, i. c., about Thursday,
December liC, expecting to travel direct
to Washlnrton. They wero duo at
their destination on Sunday cvenlnsr.
They did not arrive, and upon inquiry
it was stated by relatives at ItOfeburK
that Mr. Hermann had been ill in
St. Paul at the Hotel Ryan for sev
eral lny. It,, was ascertained that
Mr. and. Mrs. Hermann had registered
at tho hotol December 30, and had
loft January They were due at
"Wsphlnfrton, Friday, January 5.
Dr. Miller, of nosoburg. stated that
ho had received a telegram announc
ing arrival of the travelers at Wash
ington. Dr. Gatley, of "Washington, Her
mann's son-in-law, fays ho has heard
nothlnjr of Hermann, and that he Is
not in "Washington.
OREGONIAN NEWS BUREAU, "Wash
ington, Jan. 7. (Special) Mysterious dis
appearance of Representative BIngcr
Hermann Is exciting as much interest in
this city as in Oregon. As each day goes
iby and Mr. Hermann falls to put In ap
pearance, interest in his -case increases
Though lie -was due in this city last
Tuesday. Mr. Hermann lias not yot been
seen here and according to repeated,
statements made "by members of his fam
ily, he has- not reached Washington nor
"been heard from since he left Portland.
whether this information Is correct or
whether his family Is purposely conceal
ing him, for some mysterious reason,
cannot be positively stated. In fact. It Is
impossible to say with certainty whether
Hermann is in Washington, whether he
has skipped the country' or Is somewhere
between here and Portland.
Family Denies His Presence.
H. P. Gatley, Hermann's son-in-law
and his attorney, stated tonight that Rep
resentative Hermann is not in Washing
ton and that lie is not able to say where
he is. Gatley said he received a letter
from Hermann some days ago, in which
Hermann announced his intention to
come to Washington, but says he has
had no further information from him,
and has no telegraphic advices either
announcing his start for Washington or
explaining his delay.
Tet in spite of this fact Gatley is ap
parently not concerned over the fact that
his father-in-law is Ave or six days over
due and the caution with which he an
swers all question Indicates that Her
mann is either in this city or else Gatley
and the rest of his family know where
Time and again Mrs. Gatley. the daugh
ter of Hermann, has stated to The Ore
gonian correspondent that her father is
not in Washington and has repeatedly de
clared she did not know where he was.
In fact, she has denied all knowledge
of her father's intentions of coming to
Washington. She repeated, those state
ments twice today, once about noon and
again tonight, and when last asked about
her father displayed considerable temper,
asking The Oregonlan correspondent to
"stop bothering them about Mr. Her
mann, as his questions and Inquiries were
"becoming quite, annoying."
Daughter Is Very Angry.
When told that Hermann's family at
Roseburg had received a telegram an
nouncing his arrival here last Friday,
Mrs. Gatley said she knew nothing about
it. Told of the rumor that Mr. Hermann
had left the country she sarcastically
answered, "Is that so?" and abruptly ter
minated tho interview.
If Hermann is in Washington, that fact
is not known to either Senator Pulton or
Senator Gcarin. Both have been expect
ing him for several days, but neither has
had a wbrd from him or his family and
both are in total ignorance as to his
whereabouts. They share the growing
wonder over the mysterious disappear
ance of their belated colleague.
Francis J. Hcney, who is to conduct
the trial of Hermann in Portland, docs
not know anything about his whereabouts
further than that he left for Washington
and is several days overdue. Secret Serv
ice Agent W. J. Burns is also Jn the dark
and while Government men are not
alarmed over Hermann's disappearance,
they are curious to know what has be
come of him.
Gcarln's Secretary Delayed.
There is one .little bit of evidence which
would seem to confirm the statement
made at Hermann's home. John E. Lath
rop, of Portland, was appointed private
secretary to Senator Gcarin. and about
December 2S telegraphed that he was I
leaving for Washington. Xathrop has not
PjMraf "YVsphlnston, Friday, January 5. 7
jt-fijjfcg 7 Dr- Millor, or Rosoburp. stated that I
gHK f ho had received a telegram announc- I
yet arrived, but two or three days ago
telegraphed Senator Gcarin he had been
delayed, first by a snowslidc and later
by a wreck in Minnesota.
Lathrop came East on the Northern
Pacific, and it is barely possible Her
mann is snowbound along with Gcarin'
secijctary. Lathrop has not been heard
of since Friday. He was expected here
today, but did not put in an appearance.
Senator Gcarin believes he will be here
in the morning.
If Hermann traveled on the same train
with Lathrop bin delay is explained, but
Hermann usually traveled on the Union
Pacific, which has been running on sched
ulc, as cvldonced by the regular arrival
of mails from Portland. This fact.
coupled with the secretive- manner of
Hermann's family, tends to confirm opla
ion that Hermann is in Washington, but
Why Should He Hide?
But why should he conceal himself? It
is true the Government will arrange to
try him here, early in February, if he
will consent; but he knew the Govern
ment's plans before he left home Fur
thermore his attorney has repeatedly ex
pressed the opinion that the Government
has no case against Hermann on the letter-book
Indictment and lias said that
Hermann has nothing to fear from that
Hermann himself repeatedly declared
that his indictment In this city was pure
ly persecution and was witlsfled, he
said, that he would never be convicted.
Then why should he hide? It has been
suggested that he Is coming to Washing
ton to get ills mileage and then to skip
out, but that seems hardly probable, be
cause it would cast reflection upon him in
the first place and secondly because such
a trip would net him little, since he Is
bringing his wife with him to Washing
Colleagues Little Joke.
Some of his colleagues who know his
characteristics have jokingly suggested
uiiiL nermann got as lar as cicau anu
then stopped because he could not get
a pass to Washington; but a week's stay
in Chicago with his wife would cost him
more than his fare to Washington, and
that explanation docs not fit.
There is no reason known why Her
mann should secret himself upon arrival
here, and no Hatlsfactory explanation is
found for the mystery injected into the
case by the Hermann family, who abso
lutely and on all occasions refuse to give
any information about his whereabouts
and who profess utter ignorance regard
ing his movements. It is utterly absurd
to think they do not know where he is,
but they do not tell what they know.
If Hermann docs not turn up pretty
soon, it is probable the secret service
will set their men on his trail and hunt
him down, if for no other reason than to
ascertain why he makes these mysterious
moves, and to find out what he is afraid
of. He has already brought fresh sus
picion upon himself, and the attitude of
his family Is not lending to turn public
sentiment in his favor. '
New York newspapers arc wrestling
with a similar mysterious disappearance
of Senator Dopew, and with no hotter
KENTUCKY IS HAMMED
BATTLESHIP HUNS AGROUND IX
NEW YORK HARBOR.
Alabama, Following, Hits a Glancing
Blow Before Her Course
Can Be Altered.
NEW YORK. Jan. 7. Whlln the battle
ship squadron under command of Rear
Admlr.il "Evans -u-hq nroeeedinjr In sra. 1 n
day, the battleships Kearsarge and Ken
tucky ran aground in the harbor oft he
West Bank lighthouse. The Alabama and
Illinois were following next In line and
before they could alter their course, the
Alabama collided with the Kentucky,
striking her a glancing blow. The Illi
nols just got clear of the tangle and pro
ceeded down the bay. anchoring outside
the bar with the flagship Maine.
The starboard side of the Kentuckv
above the water line was mill hnrili
damaged. She will come up to the Navy
yard tomorrow for repaire. The accident
occurred snortiy alter l x m. The Ala
bama stood by to render assistance to the
-K.ent.ucKy ana .Kearsarge and wireless
messages were sent to the Brooklyn
navy-yard for tugs.
At 2:4o o clock the Kearsarge and Ken
tucky were both floated and started for
sea, accompanied by the Alabama. The
jvenuicKy. nowever, was ordered, back
and returned to Tompkineville, where she
ancnored late this afternoon.
The Maine. Illinois. Alabama and Kear
sarge remained oft the bar until 5:20
o'clock, when they welched anchor nnrt
proceeded to sea.
The squadron of hattleshins
for Hampton Roads, where the sevprni di
visions of the North Atlantic fleet In home
waters are to be assembled under "Rar
Admiral Evans, preparatory to sailing for
West Indian and South American waters
ror the annual Winter maneuvers. The
battleships had gathered In
harbor after undergoing extensive repairs.
some at Boston, and some at the Brook
lyn Navy-yard. The fleet had benn di
vided following the visit of Prince Louis
of Battenberg to New York.
The battleships anchored off Tompkins
ville, Staten Island, last nlsrhL under or
ders to proceed to sea today. It was near
ly i o-ciock this afternoon before the
entire squadron was under w- Th
flagship Maine, with Admiral Evans on
board, headed the column, the Kearsarge
and Kentucky following. These latter
were swept slightly out of their course,
and, being deep in the water, with heavy
suppues on ooara ana coal bunkers full.
grounuea just on tne west-bank light.
The navigating officer of the AioHan,
made every effort to swing wide of the
siuuuuca Biups, ut tne sweep of the
strong flood tide that was running car
ried, the Alabama into the Kent
a crash. Luckily, the blow was a glanc
ing one. it ten on tne starboard side
The Illinois barely mlased colliding with
ie iwo vc&seis aircaay in trouble.
There was a ranld exehanin. nf ,t-i.
the Alabama, which had not been serious
ly injured, bclnsr ordered in cond -k..
render assistance to the Kearsarge and
jveniucisy. wncn tne yara tugs arrived
the battleships were soon pulled Into deep
water, and both .started for sea. Admiral
Evans, however, ordered the Kentucky to
turn oacK ana proceea to tno Navy-yard
for repairs, which was done.
The Alabama. Maine. KcarxarrA and
Illinois should arrive in Hampton Roads
late tomorrow night.
As soon as the Kentuckv loins the ft
Admiral Evans will probabb order a court
PORTLAND, OREGON, MONDAY, JANTJARY 8, 1006.
IDAHO HAS GOOD
LAW UN BANKING
Washington Legislature Re
fused Same Measure De
FOUGHT BY WEAK CONCERN
Conservative Institutions Have-No
Objection to Proper State Super
vision, Snys.W. II. Latljiicr,
of Dexter, Horton & Co.
SEATTLE, Jan. S. (Special.) "States
with the population and business and of
the Importance of Oregon and Washing
ton should have a good, strong banking
act." said N. II. Latimer, manager of the
bank of Dexter. Horton & Co. Mr. Latl
mer headed the committee of state bank
crs that pleaded with the last legisla
ture to pass a state banking act and he
has been insistent during a dozen ycars
upon a Washington banking law.
The Washington State Bankers' Asso
ciation has annually indorsed a banking
act and as regularly as the Legislature
has meet a faction of the state banks has
fought tho- bill. They have been uniform
ly successful In defeating banking legis
lation. Aside from thhe act of 1503, which
prohibits new foreign banks from doing
business in this state, practically tho
only regulation of state banks In Wash
ington is one requiring an annual report.
There Is no supervision.
Nor Is there any supervision in Oregon.
In that' state banks are under no other
regulations than those which apply to
corporations and partnerships and indi
viduals generally. Any company or in
dividual can engage In the banking busi
ness, no matter with what resources or
capital, as did A. C. Probert, at Dayton,
Or., two years ago, who started a bank
and received deposits, without any sub
scriptions of stock, and when creditors
began to press for payment of their
money, skipped out with the funds of the
Institution. Th Li would have been im
possible had Oregon had a state banking
Conditions Alike in Two States.
Mr. La timer hesitated about discussing
Oregon banking conditions, but the situa
lion in Oregon ana wasningion is so
noarly Identical that ho commented upon
both states. He said:
The rtronr. conservative banks have no ob
jection to a mate banking act. In fact, the
conservative banks have insisted there should
"be nome protection for the public arauut In-
41tutlons that havo little or no capital and
are almost certain to collapse if & financial
stringency should occur.
It la very probable that bo matter how
radical banking legislation could be. the
strong, conservative banks would be even more
conservative and safe than the law demanded.
Such banks cannot be hurt by banklnc legis
lation and they are not the ones to err oat
Just a abort time are an instance occurred
that illustrated the necessity for bank. legis
lation. A so-called bank was opened where
the only Investment was that required br the
first payment on & safe purchased on the in
stallment plan. Of course, the bank, failed.
There have been others of thete wildcat bank
schemes and the public Is entitled to a guar
antee of bona fides when a bank opens. There
should be more capital Inverted than that
shown In the rold lettering on the windows.
Put on a Safer Bnsls.
State supervision, the regular examinations
and reports and the safeguards that state leg
islation throw around banks, incorporated under
proper restrictions establish the banking bus
iness upon a firmer and safer basis. There
should be no objection to such supervision
It is not fair to say that all the opposition
comes from weak banks. But much of It
does and much of the fight in Oregon will
probably come from the same source. There
are always, where no state law prevents, a
number of lightly capitalized banks In small
towns accepting big risks and doing business
on unsafe lines. These banks naturally ob
ject to restrictive legislation. " So loor as
business lit prosperous they are safe, but there
should be a state guarantee that the banks
could weather a financial storm. It should
be regarded by tbe conservative banks as a
movement in their interest wben such a pro
tective law is proposed.
The bill we introduced at the last session
of the Washington Legislature was probablr
not as strong ax 1 would have Indorsed. But
we worked hard to secure Its naiuacc and
failed In the Senate, Just as we had done
two years earlier. But that same bill, re
jected here, was taken up in Idaho and
passed In identically the form we prooosed.
regard It as a good bill and one that would
afford protection to depositors and customers
as well as aid the banklnc Industry.
Law In Force in Idaho.
The Idaho law and the bill which failed
In the Washington Legislature last Win
ter provide for appointment of a bank ex
aminer or commissioner by the Governor,
to whom all private banks shall make at
least two reports every year as to their
resources and liabilities, such reports to
be published In a newspaper of general
circulation. The commissioner may call
for special reports at any time he deems
it necessary to obtain required informa
tion., but the special reports are not to
be more than five a year.
The commissioner is required' to visit
cacn name at least once a year, without
previous notice, and to make complete
examination of Its affairs. He shall have
authority to inspect all books, nancrs
moneys, notes, bonds or evidences of debt
of such bank. He shall a!sohavc author
ity to examine on oath tho officers, own
ers, clerks and agents of any bank touch
ing the matters he is authorized to Inquire
Into, and false swearing shall be deemed
to be perjury. The fees for examination
range from $15 to $30 a year, according to
A banking corporation cannot begin
business until it shall have conformed to
the requirements of law and received a
charter from the commissioner; and
should the commissioner find any bank
iolatlng Its charter or conducting its
business in an 'unsafe manner, he shall
order discontinuance of such illegal and
unsafe practices. Should the bank fail to
comply within 99 days, the commissioner
shall apply to the court for a receiver,
to administer the assets of the bank in
accordance with law.
Deficiency .Must Be Made Good.
Whenever the capital of the bank Is
reduced, by Impairment or otherwise, be
low the amount required by the act, the
commissioner shall require the bank to
make good the deficiency or reduce its
, Banks are required to have property of
felsh VHlnp SK ffillnu.- at fho onmmonrxi-
mcni ol ousincsx:
In cities of less than
No. Inhabitants. Value.
3.000 7 25.000
10.000 , 50.000
In cltios of more than S0,0 inhabitants,
At least SO per cent or the capital stock
shall be paid in before a bank shall be
authorized to begin business, and the oth
er 50 per cent shall be paid in within six
months, at the rate of 10 per cent a
month on the whole of the capital. Should
any stockholder become delinquent in such
payments, tho directors may sell his stock,
and if no buyer can be found, the money
previously paid by hint shUbc-forfrljcd
to the bank. If not JjTcn'iold within six
months, the stock Shall be canceled and
deducted from the capital of the bank.
Purchase of Ileal Estate.
Banks shall be .permitted to purchase
real estate, first, for a place in which to
do business, but not to exceed In cost 50
per cent of the paid-in capital, surplus
and undivided profits; second, such as
may be acquired in satisfaction of debts,
previously contracted in the course of
business; third, such as may be acquired
at sale under Judgments, decrees. Hens or
At least one-tenth of the profits of a
, . ...
bank for tho preceding half-year, or for
such period as shall be covered by a divi
dend, shall bo carried to a surplus, until
auch surplus shall amount to 20 per cent
of the capital stock.
The owners or officers of an insolvent
bank, who shall receive deposits fraudu
lently, shall be deemed guilty of felony.
AH these provisions arc now absent from
the statutes of Oregon and Washington,
and their absence shows the need of
banking legislation in the two states, for
protection of depositors.
FORGOT HIS ORDERS.
Engineer Causes AVrcck, in Which
Three Men Arc Killed.
CORRX. Pa.. Jap, ,7. To an cngineman's
failure to FeV& t"rs Is attributed
the wreck on the 'Xmadclphla &. Eric road
last night, when three men were killed
and 20 persons injured. Engineer Kava
naugh. engineer of tho- locomotive that
crashed Into the passenger train, when
asked today how he happened to be on
tho main track. Is alleged tonave ex
"CAy God I I forgot all about the passcn
It Is believed all the injured will recover.
CONTENTS TODAY'S PAPER
The Weather. .
TESTEItDAT'S Maximum temperature. 45
deg.: wind, southeast.
TODAY'S Cloudy, with occasional rain; wind
Binger Hermann's family declares he has not
appeared In Washington. ' Page f.
RepreiKntative Bibcock organtzen Insurgent
uprising In House against Philippine and
statehood bills. Pace 1.
Ilclatlons between United States and Santo
ItominKO to be considered in the Senate.
Philippine tariff bill has the light oc way -In
tne House. Page 3.
Germany Is second In importance la foreign
trade of the United 'States. Page 4.
Trustee Marshall says politics In pulpit pre-
rentea can or Dr. wise. Pare 4. -
Battleship Kentucky runs aground In New
York harbor and Is rammed by Alabama.
Severe earthquake chock Is felt In Missouri,
Kansas and Nebraska. Page 3.
El Crane Wilson, wealthr Cbicazoan. kills
himself at Colorado Springs. Page 4.
Strenuous Bachelor Longworth had advantage
or wny iMcower Beveridge. Page 2.
President of Western FruIMobbers' Associa
tion refutes Armour's defense of private
car system. Page I.
Premier Campbell-Bannerm&n scores nre-
cedlng government In unmeasured terms.
France Is feeling lei uneasiness over the Mo
roccan affair. Page 4.
Czar presides at Christmas tree at the palace.
Minister of Finance explains reasons Tor ne
gotiating a foreign loan. Page 1.
Idaho has a good banking law that Washing
ton Lsuiture would not pass. Page 1.
Fight of Western Paclnc for Oakland water
front. Page 5.
Klamath. Falls may have .street railway br
July. Page 3.
A. J. Hexabree denies cremation of wife and
daughter at Sand Lake. Page 13.
James Sullivan will not defend Steunenberg
muraerer. .rage js.
Mysterious engineer plans trans-continental
line through Central Oregon. Page 3.
Mutinous crew of French bark Bretaxne sue.
ceed In having officers removed, and peace
is declared. Page 13.
PertlsBd aad Ylclaltr.
Wayward wife takes poison and dies when
husband seeks, to get her to return home.
Greed of Gas Company will be fouiht
- Page 1.
Forestry building may be saved, and offer
of sum to build concrete foundation Is
made. Page 10.
Democrats will bold war council today.
Councllmcn urge the initiative to take away
perpetual franchise from Gas Company.
Charles Ladd, 111 and penniless, cuts his I
throat.. Page 8.
Clergyman sees only failure In Chapman re
vival methods. Page &
Goes to his old home to die. 'Pace 9.
If Hill . rets' Astoria. & Colwabbt River road,
he may extern- Use to THJaaaook. Pare 8.
Belasco Theater-closes Its doors aad stock
company 1 dfoWsda. Faxe 9.
Greedilntss resvked. ta.forcefal zeratos. by Jlev. '
FaUr Taewpsea. Page '8.
ARMOUR TO TASK
Flays Author of Article in De
fense of Private Freight
GROWERS ARE OPPOSED
President of Western JFrtilt Jobbers
Association Prepares Statement
Itcfuting: Packers' Story
Says Public Is Misled.
WHAT J. O. AR.MOUR "WTUTKS.
J. Ogdcn Armour discusses the pri
vate car system In the Saturday Eve
ning Post of January 0, in which he
tells of the inception of the plan and
what It has accomplished.
Mr. Armour contends that the storm
center of the whoK? controversy lie
in the fruit and produce car, but
that tho meat-car was the pioneer in
the private car business. The first meat
rcfricerator car was bulit by Ham
mond, of Detroit, In 1S71.
Philip D. Armour saw the advan
tages of the refrigerator car in other
lined besides meat, and ordered the
construction of 1000 of the cars. He
became vitally interested in the busi
ness of fruit shipping and was instru
mental In winning the growers to the
oystem of refrigerator ears until the
business has grown so large that 12.
000 fruit-cars are now In use.
As a result of this, Mr. Armour con
tend, fruitgrowing has risen from a
gamble to a business' of National Im
port. He states that the whole agita
tion is caused by the commission men
and not by tbe k rowers. These men
are trying to put the car linen out
of business by fostering the Idea that
a fight (or fair profits Is being waged
in behalf of the growers.
Mr. Armour holds that the growers
arr mtlsfied with the private car, the
bcrvlee and the system.
DULUTII, Minn., Jan. 7. (Spccial.)-E.
M. Ferguson, president of the "Western
Fruit Jobbers" Association, has prepared
an article commenting on the leading
statements by J. Ogden Armour. In his
defense of "The Private Freight Car
System." appearing In the Saturday Even
ing Post of January 6. The Buluth man
characterizes the packer's article as a
dangerous one. "Timed." ho declares, "as
It Is. just at the opening of Congress.
it is manifestly intended to mislead tho
public and relieve the pressure that Is
now being brought to bear upon Congress
for legislation designed to protect the
public against the further encroachment
of the car line system." Mr. Ferguson
"He talks blandly about liberating the
fruitgrowers. The kind of a liberation
' referred to was accomplished years ago
for the cattlcraisers, who, during tho
past two years have expended nearly $30.
CCO in a single legal proceeding In an ef
fort to be freed of the liberation be
stowed upon them by the Armours.
"Mr. Armour would have the public
believe that had there been no Armours
we would now havencither refrigerator
cars nor service. His statements in this
connection. I think, will not arrest the
serious attention of any thinking person;
yet, unless ho can make good on such a
proposition and the further proposition
that the carriers are under no obliga
tions to the public to furnish this serv
Ice, his whole argument falls flat.
Is Feat of Perversion.
"For perversion" of facts, his article
Is certainly a masterpiece. I call atten
tion first to his allegation that the fight
against the private car lines is one In
which the commission men only have
interested themselves, and that their op
position to It. he alleges, is because of
the Armour car line system, having op
erated to prevent the commission, men
from robbing the growers, which, he
states, had been the common practice
before the advent of the allegedly benevo
lent Armour system. Almost In the same
breath he claims there was no fruit
business to speak of prior to the opera
tion of the Armour cars.
"In this connection I state (and unquali
fiedly so), that Armour's principal houses
are also engaged in the commission busi
ness and solicit consignments on a com
mission basis of 3 per cent. In a circular
letter to shippers, of which I have a
copy In my office. It is pointed out that
Armour's commission Is 2 per cent under
the regular commission charged by Chi
cago commission merchants. The fruit
dealers who have been particularly active
against the Armour car line system are
commission merchants only in a limited
way; they purchase outright, at the least,
75 per cent of the commodities they
nandle. They buy their goods at ship
ping points and are compelled to use the
Armour car In making shipments and pay
the Armour price therefor, a portion' of
which oftentimes rebates to favored
shippers, as is now being done on all
shipments of deciduous fruits from North
Growers Do Protest.
"Armour alleges growers are not op
posed to the system. Thousands of
growers throughtout the country who are
not able to stand the expense of a trip
to Washington halve sent their written
protests, but of these the public never
hears. The records of the Interstate
Commerce Commission are filled with
"For the! Information of the public, the
California Fruitgrowers' Exchange Is
purely and entirely an association of
fruitgrowers through which the products
of the growers are marketed on a co
operative plan, the ofSccrs of the ex
change being elected by the growers and
serve as salaried egaployes only, afore
than 50 per cent of all the fruitgrowers
in Southern California are embraced in
this organization, which has publicly de
clared against the car line system, and.
according to the statements of its man
ager, he expended more than 55000 of
growers money In an effort to obtain
relief from the burdens imposed upon
the growers by the Armour car. lines.
"Mr. Armour states that his company
has constantly reduced the charges for
refrigeration. In this connection, I ad
mit that in some instances Armour re
frigeration charges have of necessity
been lowered from what Armour's refrig
eration charges were several years ago,
such instances being at points where re
frigeration has alwajs been performed by
cither Armour car lines or some pri
vately owned cars, and may be likened
unto freight rates 20 years ago compared
with present rates. In no instance, how
ever, and I challenge the car lines to
point out the contrary, have the car
lines lowered the refrigerator charges be
low what they were when the carriers
themselves performed these services, but
on the contrary, in all such instances
where the duty of performing the icing
services has been transferred from the
carrier to the car lines. I repeat that the
charges have advanced from COO to 500
EMPEROR US SMITH CLRUS
NICHOLAS PRESIDES AT CHllIST
3IAS TKEE AT PADACE.
Ideal "Weather for the Day In Rus
sia and Dissension Ceases
for a Time.
ST. PETERSBURG, Jan. S. A fine
snow is sifting down from a cold sky
and furnished an ideal Russian- Christ
mas, so far as St. Petersburg was con
cerned. AH the theaters and other places
of public amusement, even the restau
rants, were closed, and the day was
given up to the proverbial Russian hos
pitality. The dissensions which have
torn . and distracted the country seemed
to have disappeared for the moment, and
even the radical newspapers, animated
by the sentiment of peace and good will
to all, silenced their guns.
The day passed quietly, and without
untoward incident. The churches were
largely attended. At the palace at
Tsarskoe-Selo the Emperor himself
presided at the Christmas tree. Later,
accompanied by the Imperial children, His
Majesty visited the quarters of his Im
perial Cossack escort, to the members
of which he distributed presents.
REASONS FOR ASKING A LOAN
Russian Minister of X'lnoncc Says
Country's Credit Is Unimpaired.
PARIS, Jan. 7. 51. Kokovsoff, ex-Rus
sian Minister of Finance, who came here
to negotiate another Russian loan, prac
tically confirms the statement made in
these dispatches yesterday that the loan
having been postponed. French bankers-
are now considering the making of tem
porary advances in order to support the
stability of Russian finances. In the
course of an interview today, M. Kokov
soff made a statement in relation to Rus
sia's real financial position. He said:
"The budget for 1006. which is about to
be presented to the Council of the Em
pire, comprises an extraordinary budget
of $215,500,000, of which only $5,000,000 is
covered by the excess of revenue rom
the ordinary budget. Thus $241,500,000 re
mains to be provided. Three of the heav
iest Items Included therein are provisions
for the repatriation of the troops in the
Far East, their maintenance until their
return to Russia, and the reimbursement
of Japan's outlay for the Russian prison
era of war. Other smaller extraordlnary
cxpenses include the maintenance of the
families of the reservists, succor for the
victims of distress, railroad construction.
the mobilization of troops, owing to the
strikes, and subventions for the naphtha
M. Kokovsoff said Russia could without
difficulty issue an Internal loan to meet
these expenses, but It was considered
preferable not to float it until the second
half of the year, in order not to affect
the proper administration of the National
resources. Therefore, he said, it was
thought desirable to arrange for a for
eign operation similar to that Indicated
yesterday, which would be of quite a
normal character. In conclusion, M. Ko-
"The difficulties through which we have
Just passed, though grave, were never
sufficiently serious to affect Russian
BUYING ESTATE IN DENMARK
Denied That Dowager Empress Will
Not Return to Russia.
COPENHAGEN. Jan. 7. The Dowager
Empress of Russia is purchasing a
beautiful estate in Denmark with a
view to a lengthy residence, but the
rumor that has been circulated that she
will not return to Russia is without
Revised Russian Budget.
ST. PETERSBURG. Jan. 7. Aworfl-
Ing to the Novoe Vremya the revised
budget as submitted to the Emperor
makes the revenues for 190S $1,014,000.
000, as against $1,027,000,000 for last
year. The expenditures are estimated
at $1,009,000,000, as against $1,200,000,-
uuu ror last year.
Damages to American Property.
ST. PETERSBURG. Jan T i
Meyer, the American Ambassador, has
received from the Consuls n vnoi.
and Odessa detailed reports of the In
juries suffered by American property
uunng me recent riots, a statement
of the damages claimed will a f re
warded by Mr. Meyer to the state de
partment for Instruction.
OLD SOLDIER WAGES WAR
Hits Commandant of Home In Bead
With Lead Pipe.
Long, an inmate of the State Soldiers'
TTnm watt TAafanl4i . . - .
o- .."o wiuun uoaaara,
commandant of the home, with a piece
of lead pipe. Interference by another
inmate of the home saved the command-
anl Mf TM.b la alA . t ...
- w -Lnju& sec
ond attempt oa the life of Colonel God
PRICE FIVE CENTS.
BABGQCK PLANS A
and Statehood Bills.
SPEAKER GANNON DECEIVED
Wakes to Situation and Will
Put Up Big Fight.
DEAL WITH DEMOCRATS
Republican Insurgents Would Pre
vent Admission of Arizona and
New Mexico and Increase
Philippine Sugar Duty.
"WASHINGTON, Jan. 7. (Special.)
A great insurrection among Republican
members of the House has been organ
ized by Representative Babcock. of
"Wisconsin. It is probably the greatest
insurrection that has ever threatened
the discipline of the Republican party
In Legislative affairs. It was not until
yesterday afternoon that Speaker Can
non was Informed of the serious as
pects of the situation.
Lulled into a feeling of security by
the report which had been brought him
by Representative Watson, of .Indiana,
the whip of the Republicans, the Speak
er has been confidently predicting the
passage of the Philippine tariff and the
statehood bills by a safe majority. He
has been awakened to a full realization
of the serious problem which has been
prepared for him by Representative
Babcock. and has taken off his coat.
Work Cut Out for Them.
"When the Speaker gets to work some
thing is certain to happen, and before
the smoke of battle raises Mr. Babcock
and his lieutenants will appreciate
what it means to rebel against the
President of the United States, the
SDeaker of the House of Representa
tives and their own pj. "Ss
There are 249 Republican anrfJy?
Democrats in the present House. Two
of the Republican members, those from
Oregon, are under indictment and are
not participating: in legislation. There
fore, with a full attendance on both
sides, the Republicans have a majority
of 110. For the Democrats to control
the House on a full vote, at least 53
Republicans must desert their party
and join them. "
To Join Forces With Democrats.
Representative Babcock claims that
67 Republicans have agreed to form a
coalition with the Democrats to defeat
the Philippine tariff bill and the state
hood bill as agreed upon by the Repub
lican caucus. The agreement which
the insurgents have offered the Dem
ocrats is this:
Enough Republican votes will be pro
duced to control the House, with the
support of the Democrats, to amend the
statehood bill, so as to give the people
of Arizona and New Mexico a separate
vote upon statehood, to determine for
themselves whether the two territories
shall be united and admitted into the
Union as one state, and to increase
the duty upon Philippine sugar and re
duce the differential upon refined sugar
coming into the United States.
The real object of the insurgents
that is. the object of Mr. Babcock and
the other leaders in the insurrection
Is to prevent the admission of Arizona
and New Mexico to statehood. They
want the present system of territorial
government continued indefinitely.
Grumblings In Caucus.
"When the caucus on the statehood
bill was held there was loud grumbling
over the alleged unfair methods of the
House leaders to fasten the Hamilton
bill upon the party. At that time there
was talk of an uprising, but Mr- Bab
cock and his assistants cunningly
nursed the resentment without fanning
it into open rebellion. They were con
scious that their strength was not suffi
cient. Then the Philippine bill came along.
About 12 Republicans opposed it. The
three members from Colorado, Mondell
of "Wyoming, McLachlan of California
and Fordney of Michigan, were the
only Republicans courageous enough to
come out into the open In opposition.
But the Philippine bill was the op
portunity Mr. Babcock had been waiting
for. He at once quietly commenced an
organization, and it was only within
the last 24 hours that the formidable
proportions of his insurrectionary
movement became known to the
Powerful Anti-State Iiohby.
The lobby to prevent the admission
of Arizona and New Mexico is powerful
and unscrupulous. Mining stock has
been widely distributed among the Con
gressmen. It is not asserted that It
has been made a bribe, but Congress
men have been Induced by prospects
of lucrative returns to make invest
ments and in violation of their oath
of office these men will soon be called
upon to vote on a proposition in which
they are personally interested..
The Democrats who favor free trade
with the Philippines look upon the pend
ing tariff bill as a step in the right
direction, but they have agreed to join
Mr. Babcock and his insurgent band to
prevent the duty on sugar being; cut
Ctmcluded on page 3.)