Morning Oregonian. (Portland, Or.) 1861-1937, January 29, 1906, Image 1

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    JW
TOIL. XXV.- XO. 14,085.
POBTIAIST), OREGON, MONDAY, JA-STJAItY 29. 190G.
PRICE FIVE CENTS.
II POINT IN
' THE INIITIVE
Conflicting Measures
May Be Enacted.
SEVERAL BEFORE THE VOTERS
Details of the Bills Show
Wide Divergence.
ALL COULD BECOME LAW
Special Session of the Oregon Legis
lature Would Then of Necessity
Be Called to Straighten
Out the Tangle.
TENDING AMENDMENTS.
The "Willamette Development League
measure to tax gross- earnings of tele
phone, telegraph and express compa
nies. Grange bill, on the fame subject,
with different provisions.
Grange bill to license tax on sleep
ing, dining, buffet, palace, oil and re
frigerator cars.
Development Ivague bill on name
subject, with conflicting: details.
The People's Power League would
put control of state printing in charge
of tho Legislature.
Amendment proposed by the Typo
graphical unions makes the .State
Printer a constitutional officer, with
a state printing office at Salem.
To enlarge the scope of the refer
endum. Power for municipalities to enact
and amend their own eharters.
Change In submission of a. consti
tutional amendment.
Against the granting of railroad
panscs. .
Elective franchise for worn on.
Plat salaries for state officers.
Change in local option law.
Purchase of Harlow wagon road.
I
SALiDM, Or.. Jan. 2S. (Special.) Tho 1
danger .arising from the multiplicity of
initiative measures, two of them in
some instances bearing upon the samo
subject. Is becoming: apparent to all
who give the matter consideration, and
tncre are many who fear the outcome.
It lias been asserted by one high In
authority that unless great care shall
be exercised, complications are almost
certain to arise which will make a spe
cial session of the Legislature neces
sary to straighten out some legisla
tive tangles. It is feared that because
so many initiative measures are being
proposed a great number of people ivill
not clearly understand the effect of
their ballots and that two conflicting
laws may be enacted.
The two measures which most seri
ously conflict In their provisions are
the bills drafted by the Grange and by
the tax committee of the Willamette
Valley Development League. Both
cover In their main features the same
general subject but differ In detail.
I'nder the Initiative plan, both might
be adopted at the same time and. both
becoming laws, there would be no way
to determine whicn must be observed.
A glance at the provisions of tho bills
will show the points of conflict.
Two Grojss Earnings Tax Bills.
jiii- unuiupmniu league nil! pro
vides for a gross earnings tax upon
telephone, telegraph and express com
panies, not ns a license tax, but as a
straight gross earnings tax, the rate
being 2 per cent upon telegraph ami
express companies and J per cent upon
telephone companies.
The Grange bill provides for a
license tsx upon these same companies,
the tax being based upon their gross
earnings, but the rate upon express
companies is fixed at 3 per cent, and
upon telephone and telegraph compa
nies at 2 per cent. The two laws differ
regarding tho statements to be fur
nished by the companies to the Secre
tary of State and in the penalties for
violation. If both laws should be
adopted, the companies could not know
by which one they should be gov
erned. The Development League bill pro
vides that railroad companies snail re
port to the state executive council,
composed of the Governor, Secretary of
State and State Treusurer. the number
of sleeping, dining, oil and refrigerator
cars not owned by said company but
used by It in operating its railways in
this state during each month of the
year, the value of each car so used, the
numbor of miles each car has been run
on said railroad each month and tho
number of miles each car has been run
each month in tho state.
The council must then assess for
taxation the average number of cars
so used by such transportation company
each month, and the assessed value of
said cars shall bear the same propor
Hon to the entire value thereof that
the monthly average number of miles
such cars have been run or operated
wltnin the state shall Tjcar to the
monthly average number of miles such
cars have been used or operated. Such
valuation shall be in the same ratio as
that of the othor rolling stock of such
railroads and shall be assessed to the
individual or corporation owning the
same.
Two Special Car Bills.
The Grange has a bill for the levying
of a. license tax upon Bleeping, dining.
buffet, palace, oil and refrigerator cars,
the amount of the license fee being
baspd upon the gross earnings. State
ments of gross receipts arc required,
together with othor information, and it
is provided that each company shall
pay a gross earnings license tax of 3
per cent. These two measures, -being
different in their plan of taxation, it
both arc adopted, both might stand thv
test of the courts, and the companies
be compelled to pay the double tax.
The Development League bill is very
long, and changes present laws in many
Important respects, but only in these two
particulars docs It conflict with the
Grange bill.
Two Printing OTficc Amendments.
Another instance of direct conflict Is
seen in the proposed constitutional amend
ments upon the subject of the office of
State Printer. The People's Power League
hasfc drafted an amendment which leaves
the subject of state printing Entirely In
the control of the Legislature, so that the
Legislature may let the printing out by
contract to the lowest bidder, or provide
for the election of a State Printer and fix
his salary or rate of compensation. This
amendment proposes to make the state
printing ofticc entirely a legislative office.
The typographical unions have pre
pared air amendment which proposes to
make the office a constitutional one, and
requires that all public printing be done
at the state printing office at Salem. This
would prevent cither letting the printing
by contract, or "farming" It out. by a
printer who was himself paid by rates,
and who let the work be done In part by
commercial printers.
This latter amendment would probably
make it necessary for the state to own Its
printing plant, whereas the plant is now
owned by private persons and rented to
the occupant of the office. It Is apparent
that these two proposed amendments are
in direct conflict, and there would be
confusion if both should be adopted.
Various Other Measures.
Besides these measures, which are con
flicting in their terms, there will be sub
mitted for the consideration of and the
adoption or rejection by the people, the
following proposed laws or constitutional
amendments: ,
An amendment proposed by the People's
Power League to permit the referendum
to be demanded against one or more
items, sections or parts of an act passed
by the legislature, and extending the
Initiative and referendum to cities so that
It can be exercised in municipal affairs.
An amendment preventing the Legisla
ture from passing charter bills and giving
the people of a municipality power to
enact and amend their own charters un
der the general laws of the state.
An amendment to article IT. sections 1
and 2. providing that a constitutional
amendment may be submitted to the peo
ple after being adopted by one legislative
sosslon, instead of requiring the adoption
by two sessions as at present, and also
providing that onlK a majority of the
votes cast -upon-tho. subject shall be re
quired, instead of a majority of all the
votes cast at tho election, as at present.
This proposed amendment also provides
that no constitutional convention shall bo
called unless approved by the people on a
referendum vote.
Against Railroad Pusses.
A law proposed by the People's Power
League, making it unlawful for any public-service
corporation to grant any pass
or reduced-rate ticket or transportation
to any person unless the same be upon
the same terms that arc given to the pub
lic generally, but this does not prevent
the giving of passes to officers or. em
ployes of the company or exchange with
other companies or the giving of passes
to persons attending shipments of live
stock. This measure requires railroad
and other public-service companies to
make an annual report of all passes or
roe or reduced service rates granted,
with the names of the persons to whom
granted and also requires all public of
fleers to make an annual declaration un
der oath that they have not recolved or
used any free or reduced-rate pass or
service from such a company.
An amendment to the constitution, pro
posed by the Woman Suffrage League,
extending the elective franchise to
women.
An amendment proposed by Tt. R. Ryan,
of Salem, fixing flat salaries for state
officers.
A law proposed by the Wholesale Liq-
uordcalcrs' Association, to amend the lo
cal-optlon law by Increasing the percent
age of signers requited to submit the
liquor question, and making the local-
option law effective by precincts only, so
that two or more precincts cannot be
grouped together.
A. law proposed by the owners of the
Barlow road, providing for the purchase
of the road by the state for $21,090.
How Con fusion May Itcsult.
The rear expressed is, that with so
many measures submitted, the voters, or
a large number of them, will not vote
against the measures they do not want.
and thereby two propositions upon
same subject might be adopted, or that
some to which full and careful attention
has not been given might become laws.
How two measures upon the same sub
ject could he adopted will be readily ap
parent There are, in round numbers,
100.005 voters In the state. A great many
do not mark their ballots for all officers,
and when laws or amendments arc sub
mitted, a still larger number fall to vote
upon these questions. A large proportion
of those who fall to mark their ballots
upon a given subject arc people who are
either opposed to the measure or are not
familiar with its provisions and do not
wish to express an opinion. The affirma
tive of the question therefore has a great
advantage in the balloting.
If, therefore, those who favor the
Grange gross-earnings tax measure vote
for it and do not vote against the De
velopment League bill, and those who
favpr the Development league bill vote
for it and do not vote against the Grange
bill, while a considerable number vote for
both bills, because they have attractive
titles, both might be adopted. With 103.
000 voters In the state, only 60.000 might
mark their ballots for these bills, and if
each received an affirmative voto of over
20,000 they would both be adopted. This
is also true of the State Printer amend
ments. Because there are so many measures
presented, and experience has shown that
people will not take the time and trouble
to study them carefully, there is .a fear
that conflicting laws will be adopted.
SEA WOLF HI'LEi
LOST IN BIG GALE
Goes Down With Crew of Six
When Fishing Schooner
Turns Turtle.
LAST SEEN IN DISTRESS
Daring Seal-Poacher Had Many Ad
ventures and Was Wanted by
Government for Ttaid on
Copper Island Rookery.
VICTORIA. B, C Jan. 2S. The fishing
schooner KHa G.. a small "pinkie
schooner of about 15 tons. Li reported
from Bamflcld to have been lost with ail
hands, six In number, having turned tur
tle in the southwest gale of Tuesday.
when the wind blew from 50 to GO miles
an hour. There were six men on board,
one of whom was the notorious dealer.
Alex McLoan, whose escapades with the
scaling schooner Carmenclta caused the
United States Government to order a rev
enue cutter to arrest the vessel.
The Ella G.. formerly owned in Seattle
and purchased by Victorians after being
taken from Clayoquot. where she was
wrecked three years ago, left Victoria
Saturday, the 20th. on a uniting crulee
off the Vancouver Island coaM in the vi
cinity of the entrance of the Straits. She
was seen Tuesday last by settlers at Car
manah Point, standing offBonllla Point,
27 miles to the eastward of Carmanah.
and according to those who then watched
her. she did not pass out, and appeared
to be acting strangely.
Ballast -May Have Shifted.
Last night there were rumors that jc
had been lost, a dispatch coming from
Bamlicld Creek to the effect that tho
schooner had turned turtle and all on
board wore lost.
The Ella G-, after she was salved from
the beach at Clayoquot. had a large
amount of ballast of cement and pig iron
removed, and It In not thought the ballast
was placod properly In the vessel again.
Captain Alex McLean, who was Inter
ested, with Captain Forest, a local fisher
man, and Mr. Winch, of this city, in the
ownership of the schooner, was a sealer
who has become notorious as a result of
scaling raids "and a recent illicit pealing
cruise to Bohring Sea in the schooner
Carmenclta. Jack London, the novelist,
stated McLean was the foundation ' for
the character of Larscn, "The Sea Wolf
of his "novol of that name, and he has
since been known on the Pacific Coaat
as "The Sea Wolf."
Daring; of the Sea Wolf.
With a brother. Dan McLean, who died
some years ago. McLean engaged In seal
ing on the Pacific Coast for many years
and on one occasion was seized by the
Russian cruiser Aleut, when sailing off
the Copper Islands with the American
schooner James Hamilton Lewis, and ho
then mct daringly tried to disable the
cruiser by throwing a cable about her
propeller. The attempt did not succeed
and he and his crew were imprisoned.
McLean was responsible for a number of
scaling raids, the last being In August of
1501. when he tried to raid Copper Island
and was driven off by shore guards, two
of his men being shot. one. Walter York,
afterward dying at Port Townrend. In
consequence of this the United States Se
cret Service men started to work, and
ordorH were given for McLean's arrest
when he was absent on his voyage last
year, with a crew of 31 men from San
Frsnclrco.
The owners at San Francisco were in
dicted and are now on bail, and a war
rant was issued for McLean, which was
never served, as he remained at Victoria,
where the Carmenclta. now In port, was
eold to pay debts. An effort was made by
the Washington Govcrnmont to have Mc
Lean arrested for illicit pen ling. . which
failed, and he remained here, engaging
In fishing until his last fatal voyage.
nRE JN HELLEVUE HOSPITAL
IS QUICKLY EXTINGUISHED.
Sheets of Asbestos In Laundry Build
ing Disappear Like Paper
Before the Flames.
NEW YORK, Jan. 2S Eight hundred
patients In Bellcvuc Hospital were en
dangered by a fire In the laundry build
ing early today. Through the quiet and
effective work of the hospital brigade
and the regular firemen, who responded
with muffled bells, only a small num
ber In some of the outlying pavilions
were awakened. By prompt work the
fire was confined to the laundry and the
loss was only a few thousand dollars.
Spontaneous combustion is believed
to have started the fire, a remarkable
feature of which was that sheets of
asbestos, supposed to be fireproof,
burned like tinder, according to Stew
ard Philip H. Smith, chief of the hos
pital fire brigade.
BIG LOSS TO TRAINING STATION
Apprentices In Irons Have h Narrow
Escape From Death.
NEWPORT, H. L. Jan. IS. Seven build
ings, connected with tho United States
Naval Training Station at Coasters Har
bor Inland In this city, were destroyed by
fire tonight, causing an estimated loss of
$103.W. Tho buildings destroyed were tho
detection building, aacMse - skof paint-
EVENTS OF COMING WEEK.
Except for possible development In
the Franco-Venezuelan crisis, and
possible though unexpected, compli
cations In the Moroccan conference,
the week begins wKh tittle promise
of nrwj events of an unusual char
acter. The critical point In the
Franco-Venezuelan situation which
seemed Imminent has passed for the
moment, as France has announced
that she will await a "more propi
tious time" for taking such action
against Venezuela as she has decided
upon. It Is Intimated that her desire
is to await the concluilon of the
Algcclras convention before Involv
ing herself with Venezuela.
The Moroccan conference promises
very definite action, as the graver
problems It is to confront arc yet
mr way off- Though the alignment
of the delegates Is more marked than
a week ago, there is Kill a feeling of
uncertainty as to the outcome. It is
generally believed that the longer the
conference lasts th better will be
tfce chances for its successful termi
nation. The private discussions which
the French and German delegates
have had created an optimistic feel
ing among the other conferees.
shop, paymaster's storehouse, carpenter
shop and two small storehouses.
One of the burned buildings contained
all of the small boats and cutters used for
practice purpose. All were destroyed.
Several apprentices In singlo Irons were
confined In the detention building at the
time the fire 'brok out. Physical In
structor Joseph Klrby liberated them by
a heroic effort. When he reached the de
tention building he could not sec the
young prisoners on account of the smoke,
but they answered his call. Supported by
a line of men K'rby made his way to the
spot where the boys wero in confinement
and passed them hack one by one to the
mn behind him. and so out to the sea
wall. In passing over tho seawall two of
tho manacled boys fell overboard, but
wera rescued.
For a time the famous old frigate Con
stellation, which is used as a practice ship
at the station, was In danger of destruc
tion, but prompt work on the part of the
firemen saved the ship.
ORIS OUT NAKED WIFE
PEOKIA POLICEMAN GOES VIO
LENTLY INSANE.
Holds Up Police Station and Then
Barricades Himself In House
With Gun and Kcvolvcr.
PEORIA. 111.. Jan. SS.--Charlcs Har
w,tod;van cx-poliomau . now violently
insane, entered The police headquarters
this evening and with a revolver held
up several officers for 13 minutes, while
he vented his Insane wrath In a deluge
of curses. After threatening to shoot
the entire crowd and failing to shoot
because of a snapped cartridge, he
backed out of the station and made his
escape.
Within an hour after the hold-up of
the station. Harwood appeared near
his home, on Blgelow street, and en
tered tshp residence of a Mrs. Mont
gomery, whom he knocked down with
the butt of his gun. Taking a shotgun
and a revolver from his house, ho bar
ricaded himself in his own residence
and at 11 o'clock tonight was stand
ing off a squad of police who sur
rounded the house.
Saturday night he compelled his wife
to disrobf and then drove her into the
street and this morning he made an
attempt on his children.
At 1 o'clock Monday morning Har
wood suddenly appeared on the porch
of his house, clad In his underwear and
with a gun In ench hand. He opened fire
on the officer in front of the house and
the fire was returned but no shots took
effect. Harwood then re-entered the
house and the posse settled down to
a siege.
CONTENTS TODAY'S PAPER
The Weather.
YESTKRD.VT"? Maximum temperature. IS
degrees.
TODAY'S Rain; southeasterly winds.
North Coast I)Iatrr.
S'awoir McLean perishes whn fishing
schooner turns turtle, rase 1.
French bark Amlral Courbet may b
wreck on Vancouver Island. Page 2.
Nineteen bodies have been found near the
wreck of the Valencia. Page 5.
Investigation of Valencia dlraster Is begun
at Seattle, rage 5.
Domestic.
Chlrage. Is waging battle for ...-cent gas.
Page 1-
Funeral of Genfral Joseph Wheeler held In
Xew York with Imposing military pa
geant. Page 4.
Attempt to bribe Indianapolis Mayor to per
mit kidnaping of ex-Governor Taylor, of
Kentucky, rage 3.
Congress.
Chinese boycott, the shipping bill and the
fttatchood bill are before the Senate,
Page 4.
Members of the House will, discuss the rail
road rate bill with restriction, rage I,
Foreign.
War Cabinet In Japan returns as result of
popular demand. Pace 3.
Armed uprisings' in. Russia, have temporary
success. Page
King Alfonso escorts! Princess Kna. to San
Sebastian in an automobile. Page 2.
Pacific Coatt.
Danger of conflicting- measures being enacted
under the Oregon Initiative law. rage 1
Postmaster W. T. Cavanaugh. of Olympla.
accidentally shoots Dr. J. W. Mowell while
hunting. Page 3. -v
Oregon bopgrowexs form corporation at Sa
lem. Page 5.
Liquor men of Oregon City will oppose local
option amendment. Page 3.
Body of suicldo found near Bear Creek, in
Clackama , County. Page 5.
Portland asd Vicinity.
Bankers of Statejof Washington demand
law -which will arovlde for inspection of
banks. Page 9.
Clergymen denounce Richards' establishment
from the pulpits. Page 8.
Fair grounds closed- today to the public
Pago S-
Drohn. who claims he was buncoed by young
woman whom he had arrested for em
bezzlement, disappears. Page 7.
Business in alt lines his Improved since Ex
position closed. Page 1. .
Commissioner and Mrs. Kllbey lead rousing
, Salvation Army meetings. Page 9.
Labor unions decide to-put. full ticket In the
field. Page 14. '
Masked thugs assault 'and attempt to chloro
form Mlsa Ma4 Shcek aa-hsr Oadoer
atcp. Pagans. " - . -
75-CENT GAS IS
SSUE IN CHICAGO
City
Council Will Cut Price and
Save Consumers From
Greedy Graft.
PORTLAND PRICE TOO HIGH
Expert Testimony Shows Profits In
75 Cents- In Illinois and Indi
cates Cheaper Manufac
ture in Oregon.
CHICAGO, Jan. 2S.-(SpeciaI. The City
of Chicago, through Mayor Dunne and
the Municipal Council, is waging a tight
for i-cent gas. Representatives of the
gas companies have told the lighting
committee of the Council that gas cannot
be produced and sold In this city at that
price. The rates arc now cents and $1.
and the most prominent experts In the
United States declare that 7a cents is a
generous price to pay. One university
professor, who has made a study of the
question, challenges the companies to
contradict succcssfuHy his statement that
the companies could make a fair profit
by selling gas to Chicago consumers at 53
cents.
In the light of the expert testimony on
the gas question in this city, the 60-ccnt
rate, offered In Portland. Or., for a new
franchise, would be fair to the public and
would afford a profit to the manufac
turers, owing to the much cheaper price
of oil on the Pacific Coast and to the fact
that capitalization and bonded Indebted
ness have not yet been inflated to the
limit in Portland, and rates do not have
to be high In order to pay consequent div
idends and Interest.
Chicago gas is made from crude oil. the
same as Portland gas; therefore, apt
comparisons can be made between the
rates of the two cities. Many other East
era cities use oil for gas manufacture.
and though they pay much more for oil
than do Pacific Coast plants for the Cali
fornia product, the rates to consumers
arc universally less than n Portland, even
In cities which make gas out of coal a
much more expensive process as In Cin
cinnati and Cleveland, where the price
to consumers Is 75 cents, or 40 cents less
than In Portland. Coal gas Is the name
of the product In tboac cities; where oil
is used, the product is called water gas,
The situation here Is more favorable
for consumers than at Portland, Or., in
that the Legislature of Illinois has given
City Councils the right to fix the price
of gas In this and other cities in the state.
while the Legislature of Oregon has not
done so for the cities of Oregon. Conse
quently, while the people of Chicago can
force fair rates for gas. through their
City Council, the people of Portland have
not this recourse and will not have It un
tH the Legislature of Oregon shall grant
the Portland Council the power.
Council Studies Gas Cost.
The Council of Chicago has proceeded
to avail itself of this right, and. in order
that the legislative body of the city may
deal fairly with the gas companies and
may not be charged with confiscation of
property, it has undertaken an exhaustive
Inquiry Into the cost of manufacturing
and distributing gas to consumers.
Much data has been procured from other
cities concerning the price now paid for
gas. Here are the figures for the munlcl
palitles named:
Chicago fl.OO
Jew York 1.00
St. Paul 1.10
Philadelphia, ' 1.00
Boston 90
Duluth . 00
Cleveland
Cincinnati
Terre Haute
Wheeling
The cases of Cincinnati and Cleveland,
being cities of nearly population.
arc died by the advocates of cheaper
gas in proof of the fact that 73-cent gas
Is not unreasonable. The gas companies
on the other Itaml, declare that while the
cost price of gas In the cities named Is
less than it is here, the quality of the
gas offered is Inferior to Chicago gas
that It Is coal gas and is of smaller
candlepowcr. The authorities do not ac
ccpt the word of the gas men, who
while proclaiming that u-ccnt gas is
a commercial impossibility, have stead
lastly refused to permit a detailed ex
aminatlon of their books or to furnish
figures of their own In refutation of the
contention of the city.
The Ogdcn Gas Company has submitted
to a partial scrutiny of its accounts, but
the People's Gas Light and Coke Com
pany has pleaded that "It would be giv
ing away its own hand to throw open
its books to the athorities."
73 Cents a Fair 'Price.
it is admitted by the Council Investi
gators that local conditions must be
taken Into consideration in fixing upon
a fair and reasonable price for gas. The
cost of fuel and labor and other ex
penses In a given city, as compared with
another city, must be reckoned with. So
also is it necessary to take into account
the kind of gas furnished, its candle
power and sustained quality. It is in
t cresting, therefore, to know the ex
pcrts declare that gas of Zi candlepowcr
ought to be furnished to Chicago con
sumcrs at 75 cents, and this whcre the
price of labor Is reasonably high.
That dollar gas Is entirely too high
every gas company In Chicago has vir
tually admitted. The Ogden Gas Com.-
pany Is now furnishing gas for SO cents
and James F. Meagher, general counsel
for the People's Company, has made an
offer to the city to reduce the price from
51 to SO. cents, suggesting, hut not de
manding, -that the company be given a
five-year franchise on that basis.
Mr. Meagher naively declared that this
-offer was made because he did not wish
.the city to fix a price that would, meant
confiscation- and drive the company Into
the courts for self-protection. Litigation,
he suggested, would run along for three
or four years and cause endless fric
tion. The lighting committee, reading
between the lines, decided that if Mr.
Meagher would volunteer a reduction of
10 cents a thousand cubic feet there was
good reason for believing the company
would still have a good thing. If It ob
tained only 73 cents. The preliminary
expert testimony employed by the city
bears out this belief.
Bcrals Defends 75-Cent Rate.
Professor E. "V. Bemis. of Cleveland,
acknowledged to be one of the best au
thorities in the country on the cost of
producing and distributing gas In large
cities, has submitted facta and figures to
the Council demonstrating that a 75-ccnt
rate In Chicago 13 reasonable. His com
putation, as a matter of fact, makes the
topmost figure, 74 cenbs, after allowing a
liberal margin of profit to the companies.
In making his estimates Mr. Bern!? had
used the figures of the Ogdcn Gas Com
pany on the cost of manufacture and
those of the People's Company on the
co3t of distribution. He refused to take
into consideration the over-capitalization
of the People's Company. He allowed the
companies t per cent profit, or interest.
on their actual investment, the structural
value of the plants alone being taken as
the basis. His figures in detail follow:
Cents.
Manufacturing and putting In holder. . .2C.SU
Cost of distribution 21.71
Repairs, renewals and reserve fund.... 3.33
Six per cent Interest 19.20
Total 71.10
He admitted In the case of the Peo
ple's Gas Company, when questioned by
Its representatives, that the cost. Includ
ing a fair profit, might be between 72 and
74 cents, because that company Is required
by ordinance to furnish 2l-candlc power.
"I believe my estimate Is correct," said
Professor Bemis. "as we have no other
recourse than to figure interest on the
tangible value or on what the gas plant
could be duplicated for. "When a gas
plant costs $33,000,000 and the capitaliza
tion is iSS.OGO.OOO. I say it Is right to make
the estimates on the actual values. If
the people buy the securities they take
their own risk. The public should not be
compelled to pay higher prices for gas
Just because investors may or may not
have made an error in judgment."
Profit In 59-Ccnt Hate.
Professor John E. Webb, of the Uni
verslty of Chicago. Is authority for the
statement that gas cah be sold profitably
in Chicago for 59 cents a thousand cubic
feet. He says:
"Those who know the general and spe
cial facts with reference to the Items of
cost say 26 cents would cover the cost of
furnishing all the raw material, of putting
the gas in holders and of paying for all
repairs on the plants and all labor and
office expense Involved in. the process of
manufacture. Fifteen cents," lie declares.
"would pay for distribution. Including
leakage, bad debts, cost oi meters, repairs
to mains In the streets and all labor and
office expenses connected with distribu
tion and collection.
"These figures are known to be high
under an extravagant management, but
for the sake of safety in the calculation
they may be accepted. Five per cent on
the actual investment would equal 12 cents
more per thousand cubic feet, thus mak
ing a total of 53 cents as a fair price.
but make it u9 cents and In no court could
evidence be adduced showing that that
price Is not rcasonablz and very generous
In this citj"
St. Louts Upholds S8 Cents.
E. G. Cowdcry, general manager of the
La Clcde Gas Company, of St. Louis, has
submitted figures to the Council commit
tee for consideration. He volunteered the
information that a voluntary reduction
In the price of gas In Milwaukee resulted
in greater consumption and a consequent
Increase In the receipts of the company
Involved. He also brought out the im
porta nt point that the production of water
gas docs not require the same amount of
labor entailed In the manufacture of coal
gas. The candlcpower of coal gas. he
said. Iapnly IS, while that of water -gas
Is 24.
He differed, however, very materially
from Professors Bemis and Webb on the
cost of gas In Chicago- In this city he
thought the kind of gas furnished at
present by tho People's Company ought
to be worth S3 cents. Ho made the di
vision of expense as follows:
Cents
Cost of manufacture
Reserve fund
Cost of distribution
Interest on capital and dividends.
. . ..".0.00
...10.00
...23.75
. . .25.00
Total
.88.7
It will be readily noted that Mr. Cow
dcry. unlike Professor Bemis, took into
the equation the factor of overcapltal
izatlon. Professor Bemis allows 3.SD cents
for repairs, renewals and reserve fund,
Mr. Cowdcry allows 10 cents for reserve
fund alone. Professor Bemis allows 19.20
cents for Interest on Investment and Mr.
Cowdery 25 cents for Interest and divi
dends. He makes the cost of manufac
turc 23 cents higher than Mr. Bemis and
the cost of distribution about 2 cents
higher. The Council committee is not
disposed to look upon Mr. Cowdcry's fig
urcs as absolutely Impartial, because he
Is In the gas business himself.
Fair Profit In 60 Cents.
H. 31. Ashton, special attorney for the
city on gas and electric lighting. isone
who believes the word of the gas com
pany officials counts for little.
"The sooner we realize that we cannot
get 75-ccnt gas without a fight," he said
"the better off we shall be."
Mr. Ashton said he had evidence from
various cities showing that gas could be
produced at a profit at GO cents or even
less. He recalled the famous Cleveland
gas suit of 1862. "In that suit," he said
'The officials of the company reported,
that the cost, aside from depreciation
and profit, but including taxes, was CS
cents per thousand cubic feet at the
burner. In the report that two Chicago
companies mado to the New York Stock
Exchange when it was desirable to show
how valuable were tho securities, the
total coat of gas, including piping, main
tenancc taxes, etc.. was said to bo 49
cents this not including profit."
He said the average price of gas in the
municipally owned plants in Europe, is
XCoacludeiJ oa page .2.
BUSINESS BETTER
SINCE THE HUB
'redicted Slump Fails
to Materialize.
ESSIMISTS POOR PROPHETS
City Never More" Prosperous
Than at Present Time.
EVIDENCE IS INDISPUTABLE
Bank Clearings, Postoffice Hecclpts,
Building Permits and Heal Es
tate Transfers All Show
Gains Over 19 04.
Those who had the foresight and good
judgment to predict that the Lewis and
Clark Exposition would be followed by
no aftermath of business depression in
Portland and the State of Oregon are
now reaping their reward, especially if
they backed up their opinion by Invest
ing in local real estate, while those who
confidently sounded the warning of a
coming slump are now denied even the
satisfaction of uttering the time-honored
phrase, "I told you so." Conditions in
all lines of business in Portland were
never better than at present, while tho
prospects for the future arc rainbow
hued.
When the Exposition was but in the
formulative period, a class of people, al
ways ready to see the dark side of
things, began talking about the bad ef
fect it would have on all lines of business.
When the Fair was In progress and Its
success as a great public enterprise was
unassailable, these pessimistic forecasts
were continued. Now that the gates of
the Exposition have been closed a suf
ficient time to permit of a definite con
clusion being reached. It Is admitted by
everyone and proved by statistics that its
effect was for the good and that every
kind of business Is more prosperous than
at the corresponding period of previous
years.
The present prosperity of Portland,
however, does not bear any of the car-
marks of a boom. Whenever a boom oc
curs in any city it is pretty generally
followed by a relapse and stagnation of
business, but In the case of Portland it is
just a healthy, steady growth In all
lines. There Is every reason to believe
that the present rate of progress Is to
be eclipsed in the Immediate future.
A comparison of the bank clearances for
the months following the Exposition and
corresponding months last year shows a
substantial increase. During October.
1905, half of which belonged to the post
Exposition period, the clearings of the
Portland Clcarlng-Housc Association
were S2I.433.17S.41. In October. 1P04. the
clearings were $21. 627.106.89. The Novem
ber and December clearings of 1P05
amounted to $42,43S.S36.9S. and for the
same period the previous year to $C6,
666,817.79. Indicates a General Growth.
That this advance Is simply a step in
the general growth of the business of the
city, is shown by the fact that the clear
ings for these two months In 1S93 were
only $10,762,530.32. Of course the figures
for the present year are not available,
but indications are that they will bo
well in excess of those of the opening
month of other years.
"Conditions were ".ever better in bank
ing circles?." says A. L. Mills, president
of the First National. "Instead of any
depression after the close of the Exposi
tion there has been a steady Increase in
business, and of course an increase in
the transactions of the banks means gen
eral progress. The outlook was never
more favorable."
J. Frank Watson, president of the Mer
chants National, gave similar testimony.
"One feature that Is worthy of notice
is that there is more outside capital In
the banks than ever before," he said.
"This capital is here to be invested In
Portland property and Portland business,
eo it shows what strangers think of our
city. Practically every business enter
prise in the city is doing more than it
was one year ago. The merchants all
testify to the activity and the figures of
the banks bear out their statements.
"We can confidently expect great things
to follow the building of the north-bank
road. As soon as the opposition to build
ing the bridge over the Willamette and
other obstacles are removed we shall
feel the effects of Its entrance to this
city even more than we have already."
Another criterion of a healthy condi
tion of business in Portland Is the in
crease in postal receipts. There was a
wonderful Increase In these figures dur
ing the Fair period, and people were in
clined to think that it was due to the
Influx of visitors at that time. Doubt
less a portion was. but subsequent de
velopments 'Indicate that the largest part
was due to the growth of the city and
the growth of business. The sale oC
stamps did not diminish to any appreci
able extent after the close of the Fair.
The receipts for November and Decem
ber reached a total of $$.648.23. This Is
an increase of $9,153.34 over corresponding
months of 1904.
Postoffice Receipts Larger.
According to Postmaster MInto, 1905
has opened just as encouragingly.
"When completed, the January salest
statement will doubtless show an Increase
over one year ago fully as great' as De-
CConcluded on Page 13.)