THE MORXIKGr OKEGOJOJUC,- .MTEDKESDAIT, FKBRTJABY 28, 19:
BUTTLE OF DRAINS
Morgan and Cromwell Have
Another! Combat.
SENATOR WAXES WROTH
Canal Lawyer's Refusal Xo Answer
Questions Draws Forth Thrcat
2 ofIaw Received 3fo Part
of. Canal Price.
"WASHINGTON, Feb. 27. William Nel
son Cromwell and Senator Morgan meas
ured legal minds all day before the Sen
ate committee on interoceanlc canals, and
in a drawn battle adjourned until tomor
row. Mr. Morgan pursued the witness re
lentlessly concerning his relations with
the Panama Canal Company, asking many
ekillful questions, which were as skill
fully evaded. Mr. Cromwell drew a line
between his actions since the transfer of
the canal property to the United States
.nd those before the transfer, and de
clined positively to answer any questions
concerning the earlier period. At the close
of the day. Mr. Morgan had brought out
a. scheme for the Americanization of the
Panama Canal Company, which promised
to furnish the subject for an Interesting
examination.
Mr. Morgan put into the record a letter
written by Mr. Cromwell to Mr. Wallace,
arranging for the Interview which took
place at the Hotel Manhattan in New
York,- when Mr. Wallace Informed Secre
tary Taft of his desire to resign his posi
tion as chief engineer.
Xone of Committee's Business.
Mr. Morgan demanded to know of Mr.
Cromwell what payments had been made
to him from the New Panama Canal
Company. 3Ir. Cromwell asserted that the
information was confidential and involved
the relations of counsel and client. Mr.
(Morgan insisted, and many sharp pas
sages ensued, .
Finally Mr. Cromwell said that, while
lie did not think it any business of the
Senators making the inquiry, lie would
state that the total payments made to
lilm would not -exceed 5300,000. That was
all he had received. Out of the
540,000,000 paid by this Government,
he had received nothing, but he added
that he had not rendered his account for
cervices. He said he had plenty of money
of his own, and had not gone to Paris
to see the company. He declared that
this (meaning the hearing) was the first
vacation he had bad in ten months. He
declared that there had been no under
standing as to the amount he was to
receive.
Continuing:, Mr. Cromwell said he
did not think the country could be in
terested in his private relations as
counsel to the new Panama Canal Com
pany. Morgan Threatens Cromwell.
"I think it is." said Mr. Morgan.
"You may monopolize the opinion of
the country, but I don't think you do,"
replied Mr. Cromwell, and then upon
hearing; repealed the question concern
ing: "funds ho had received from the
French Canal Company he declined
emphatically to answer upon the
ground that he would not divulge pro
fessional secrets.
Thereupon Mr. Morgan called for the
revised statutes and read the provision
Jn relation to protection of witnesses
called before Congressional oor"..u
tecs. Ho asked the witness if he per- i
sistcd in his refusal. Mr. Cromwell
- replied:
"It is beyond the purview of the
committee to make this Inquiry and I
decline to answer."
Mr. Morgan said he reserved the
right to determine the materiality of
the question and proceeded with the
examination.
Heading: questions which had heen
submitted to him to be propounded,
Morgan called upon the witness to
state what had been the gross sums
received from the old or new Panama
Company since the payment to J. P.
Morgan & Co. of the money involved
in the transfer Qf the property to the
United States", from syndicates, from
the United States, the Republic of
Panama or from any source whatso
ever. Objects to Compliments.
"I thank you for that question," said
"It involves a period since the trans
fer of the property to the United
States."
"I would be obliged to you if you
would forbear from complimenting me
in public," said Mr. Morgan.
"Senator, I think better of you than
you do of me," ald Mr. Cromwell, and
this provoked another outburst from the
Alabama Senator against the witness in
dulglng in compliments.
Mr. Cromwell" said ho had not received
one dollar of the 5(0,000.000 paid to the
new Panama Canal Company, but would
render his final bill in due course, and
that It would be substantial and would be
paid. He said he had not received from
the Republic of Panama a single cent,
and had received no benefit directly or In
directly .from the sale of the property:
that he had not been interested in the se
curities of either the old or the new com
panies, and that his whole relation to the
new canal company was that of counsel,
and that his sole compensation had been
as such. He stated that the answer was
meant to include the relations of Roger
X. Farnum, a clerk in his office.
Fees as Canal Company lawyer.
After this reply had been made, Mr.
Morgan asked the witness why he ob
jected to making a similar statement of
his relations to the canal company prior
to the transfer of the property. The wit'
uess said he did not think it pertinent.
"Suppose the committee decides that it
is pertinent?" a6ked Mr. Morgan.
"I adhere to the .answer I .have made,
replied Mr. Cromwell.
Questioned concerning the manner In
which the 5200.000 had been paid, Mr.
Cromwell said the payments were a "small
matter of 510.000 or 515,000" a year, and
that the payments extended over several
years.
Asked what services he had rendered to
earn the 51500,000, Mr. Cromwell said pro
fessional secrets were Involved in .the in
qulry, and that he should be compelled to
decline to reply.
"Read that question," said Mr. Morgan
to the stenographer. "I will get an an
swer if I can."
"I am unable to specify the services,"
said Mr. Cromwell. "As I said, it ap
proximated 510,000 or 515,000 a year. I
called upon the company for money as T
needed It My clients are satisfied. '
"Were the payments for professional
services only?" Mr. Morgan asked.
"For professional services, office cx
penses and matters connected with their
business. I remember I employed an
engineer"
"What was his name?" interrupted the
senator.
"E. Zi. Corthell."
"CortheH, eh? I hai'e been expecting
ie wouia Drea m here somewhere," said
Mr. Morgan."
"He is an excellent engineer," began
the witneae. out he was stopped by Mr.
"Unrrfi n who KnlrJ sliamH"
"We're not asking you for any eulogies
on this man."
Continuing his Inquiry. Mr. Morgan asked
he witness what money he had in his
ce-atrol wklck feelege4 t tke Jtejrafelk:
of F&sasHL Mr. Crmwell ns4e a. 4e-
tailed statement cone raise his apjtttat
meat as Fiscal Cowsrfssl&ner for Pana
ma and the investment in New Yerk e-.
curities of about f,09,WS, which was set
aside by the Republic as a tmt XuM.
Mr. Morgan, sealnjr to question the
wisdom of the investment. Senator ICnox
asked Mr. Cromwell if It were not true
that the United States, feeling a. deep In
terest in the future of the Republic, had
advised the investment of thl nwicy in
securities equal to those authorized for
Investments of savings banks under the
laws of New York.
Roosevelt Advised Investment.
"That Is absolutely true," said Mr.
Cromwell. "It was you and the Presi
dent of the United States who advised
me to make this investment."
"I did not intend to bring this out,"
said Mr. Knox.
"Are you under bond as Fiscal Com
missioner?" asked Mr. Morgan.
"The Panama Republic does not feel it
necessary t put me under bond. I hope
you do not," replied Mr. CromwelL
"I don't," said the Senator. "I don't
think it would do any good if I did."
The witness then said he had declined
compensation from the Republic of Pan
ama, but that his firm had received
about 536,000 through the investigation to
titles to property In which the republic
had invested. These payments, he said,
were made by the owners of the property.
He was asked to describe the relations
between this Government and J. P. Mor
gan & Co.. by which the 540.O00.O09 was
deposited In the latter's banking-house,
and In doing so referred to the former
Attorney-General (Senator Knox) In send
ing Mr. Day and Mr. Russell, of the De
partment of Justice to Paris. Mr. Knox
interrupted, saying:
Knox Assumes Responsibility.
T object to the witness answering that
question." He looked directly at Mr.
Morgan and continued: "I take tho re
sponsibility for that action, ri willwan
swer that question Xtjiou "cafe to put me
upon the stand." '
"I will call you to the stand If you de
sire it," Interrupted Mr. Morgan.
"Don't," said Mr. Knox, "but as I am
responsible for that matter I do not care
to have another witness interrogated
concerning it."
Mr. Morgan explained that his intention
had been to bring out a statement from
the witness as to the necessity of Fending:
the money to Paris instead of paying for
the property by Government warrant,
Mr. Knox sold he had no .objection to
the examination of the witness on that
subject.
Distribution of $40,030,000. .
At the afternoon session Mr. Cromwell
testified concerning the distribution of the
540.000.000 paid by the United States to the
French company and of the claims of
Colombia for payments on stock held by
that government to the value of i5.O0Q.O00
francs. Mr. Cromwell said that the French
government under its taxing system had
impounded that stock.
Under protest. Mr. Cromwell explained
at length the procedure under which the
directors of the Panama Railroad were
qualified to serve after the sale of the
property to the United States, upon small
payments to legalize the transaction, but
that these chares were held by the Treas
urer of the United States, and the Gov
ernment has the right to demand their
surrender In name as well as In fact any
time. Mr. Morgan asked a score or more
of questions concerning the appointment
of Roger L. Farnham as a director of the
road, but Mr. Cromwell insisted that the
appointment had "been made by the Secre
tary of War. and that he had not sug
gested it to the Secretary.
Mr. Morgan again took up the subject
of Mr. Cromwell's services to the New
Panama Canal Company and what he had
done to earn the 5300.000 he said he had
received. After refusing to answer ques
tions put to him In a -variety of forms, all
bearing on the same subject. Mr. Crom
well said that he did not think the com
mittee had the power tq go into the subject.
.'JOranizcd American Company.
Mr. Morgan then had read an asrrccmcnt
between Mr. Cromwell and the New Pan
ama Canal Company, which embodied a
plan for the Americanization of the Pan
ama Canal. This, was dated November 3.
1S99. Mr. Cromwell said that It was not a
contract, but merely a power of attorney
that had been given him, and a matter
that had not matured Into anything. Ho
declined to say whether he had drawn it.
Mr. Cromwell said that he did not want
to be harsh, but that he should decline to
go any further into a discussion of the
affairs of the Panama Canal Company.
Disregarding Mr. Cromwell's objections.
Mr. Morgan pursued the subject as to
whether Mr. Cromwell had incorporated
the Panama Canal Company of America
under the laws of New Jersey. He said,
after Mr. Cromwell had refused to an
swer, that he would produce the record
to show that this had been done and that
Mr. Cromwell was one of the incorpora
tors.
UK NIT EXTINCT
House Retains Title of Lieutenant-Genera!.
DEBATES ARMY EXPENSES
Question of Jurisdiction Between
Committees Raises Question W1k
Bought Flying: Machines.
Pass Ship Canal, Bill.
"WASHINGTON, Feb. 27. Military mat
ters held the attention of the House to
day, the Army appropriation bill being
itnfr nneliratlnn "for amendment. That
General Corbln and General MacArthur
might become Lleutenant-GeneniV, the
provision abolishing that rank wan ellmi
ntifl An a. nolnt of order raised bV GrOS-
venor, of Ohio, who substituted an amend
ment to abolish the grade alter tnes
officers had been proxnotea, out tnis too
met defeat. Members of the appropria
4 Inns r-nmmltim disnutcd the right of the
military committee to appropriate for an
apparatus ior lire conirui ui ucm
lery, but without success. Only eight of
the 50 tjatres of the bill were passed upon
when the House adjourned.
Tim vtaiica nnRRAi thn Talzrll bill char-
Hcring the Lake Erie & Ohio Ship Canal
Company with an autnonxea capnai oi
$0,000,000.
A bill was passed by unanimous consent
authorizing the disposition of the surplus
lands in the Yakima Indian Reservation
In the State of Washington.
On motion of Hull (Kep.l tne .rray
appropriatlon bill was taken up for con
sideration under the nve-mlnute rule.
"W1k BouRht Flying Machines.
The reading of the bill was interrupted
by Crumpacker. who raised an inquiry
which developed a "lively turn of debate.
Crumpacker had read in the papers the
charge that 530.000.000 had been wasted by
Army officers who bought useless appara
tus, scientific and otherwise, including
flying machines, telescopes, etc.
"I desire to say." replied Hull, "that
Lthe committee on military affairs has nev
er authorized nying macnincs. inai nas
been done by the great and good commit
tee on appropriations, not by the small
committee on military affairs. My recol
lection is that flying machines were spe
cifically authorized. I regard flying "ma
chines as absolutely absurd."
Hull continued the Incldenr with the
statement that no money had been wasted
In scientific or useless apparatus, although
much money had been spent, as it turned
out later, uselessly in buying supplies
which were allowed to waste from lack
of proper care, and in the depreciation of
equipment.
Row Between Committees.
A sharp dispute arose over committee
jurisdiction between the appropriations
and military committees. IJtlauer of
New York -made a point of order against
the provision for fire control for field
guns, on the ground that the appropria
tions committee had jurisdiction over
coast and field artillery in tho fortifica
tions bill.
Emphasizing the importance of the ques
tion, Tawney, chairman of the appropria
tions committee, said the present bill car
ried an appropriation for a cable ship and
for submarine defense at San Francisco,
"both of which propositions were sub
mitted to the committee on appropriations
and rejected. They were subsequently in
serted 5n this bill by the military commit
tee. The line between the two committee
SAYS "WORK IS BEING DONE
Harrison Returns From Panama
Praising Canal Officials.
NEW YORK, Feb. 27.-Ex-Congrss-man
Francis Burton Harrison returned
to New York yesterday after a trip of
six weeks through Central America. One
week of that time he snent in Invest I rat
ing the work of digging the Panama
anai. He js convinced, he says, that
the administration ought to be upheld in
its task. Mr. Harrison found that, al
though a Democrat, the officials engaged
in the canal work were eager to Inform
him about it. They seemed to have
nothing to conceal, and they had work
there, he said, to show for their efforts.
He found esprit de corps among the
higher officials, and he continued:
"Mr. Stevens is working to establish it
all along the line. With the minor of
ficials, who arc appointed by the civil
service, there ls little of the spirit nec
essary for the right kind of work. They
seemed to fear that Wjirhinston will
change the plans and change jobs. I
tninK mat tne canal commissioners
should be there on the ground. It would
help a vast deal Not all of them would
be necessarytwo or three might do.
More work would be accomplished."
Mr, Harrison was asked if he approved
of the plans for the building of the canal.
"I think it would be folly," he replied,
"to array any party against such a work.
Criticism might be all right, but not as
partisan criticism.
"I believe the canal is being dug hon
estly, efficiently, and with earnestness
and Intelligence. Any observant traveler
could offer minor criticism as to what
has been done and what has been 'left
undone, but we are not dealing with
trivialities there, nor Is the Canal Com
mission to be held accent-table like the
house committee of a social club. We
arc building a great canal, and it ls
going to be built."
It is oar privilege and pleasure to
give yew a pisk in. tfee right direction.
If yo are net a bank iepoaitar, bc
cme one Vita any good bank of
course, we prefer it should he ours.
You'll thank ts some day for this
advice if you adopt it.
WE PAY 4fc INTEREST
OREGON TRUST &
SAVINGS BANK
General linking Business Transacted
OFFICERS.
W. H. MOORE. President.
EL E. L.YTLE. Vice-President.
"W. COOPER MORRIS. Cashier.
DIRECTORS.
TV. H. MOORE. E. E. LYTLE.
LEO FRIEDE. II. A. MOORE.
W. COOPER MORRIS.
should be so marked that, when they
come before oner committee and arc re
fused, they cannot return to another com
mittee and claim that that committee
has Jurisdiction of the subject-matter."
Boutcll of Illinois. In the chair, over
ruled the point of order with reference to
the lire control apparatus.
A point of order made by Littaucr was
sustained, which eliminated a provision
that the receipts of the Alaskan cable
during lOT shall be used for military ex
tension of the line.
"What Mlplit Hare Been.
Grosvenor made a point of order against
the provision abolishing the grade of lieutenant-General.
An interesting review of that rank was
made by Clark of MissourVwhOrsald poll
tics had always enterejMnto the question.
Thomas H. Bcntonne said, came near
having that rankreonferred on him as the
Democratic hero" of the Mexican War. If
It had been 'done, and it failed only by
three votes in the Senate, Benton would
have been elected President twice and the
Civil "War would not have been.
Grosvenor announced that he should of
fer an amendment to abolish the rank at
a. future time, so as not to exclude from
promotion General Corbln and General
MacArthur.
After Home further debate. Groavenor's
point of order was sustained. He offered
an amendment abolishing the rank after
It shall become vacant after January 1,
JS07. Butler of Pennsylvania made a point
of order against this amendment, which
' defeated It,
Metcalf Dines the President.
WASHINGTON, Feb. 27. President and
Mrs. Roosevelt were entertained at din
ner tonight by Secretary and Mrs. Met
calf. Senators Aldrich and Crane were
among the other guests.
Hopkins Again Appointed.
"WASHINGTON, Feb. 27. The President
today nominated Charles B. Hopkins to
be Marshal for the "Western District of
Washington.
CASTOR I A
Tor Infants and Children.
Tki Kind You Win Always Bought
Bears the
Signatar of
Northwest Postmasters Confirmed.
cWASHIKGTO D- C Feb- 27The
benate In executive session confirmed the
following nominations of postmasters:
Idaho-V. c. Fen ton, Boise: Montana
a & ?wers' City- Washlnjrton-
Packman. Snohomish; E. L. Brun
ton. Walla Walla,
NOTES FROM THE ' CAPITA Ii
The Senate committee on finance hus ap
pointed a isubcommittee conairtinc of Bur
rows. Spoonpr and Salley to lnvntlicat
charsca against w. U Vernon. o Kanaar.
named for Register of fee Treasury.
The Pre-Went aaa atraeA the ttrtent de
ficiency bill. .
The Home committee an ixEta an post
roads win report favorably the Crumpacker
resolution rcqulrlnr the Poatntaster-General
to furnish the House full Information con
cerning the fraud order Issued aralnst the
People's Bank of SL Louis.
Women, from their sedentary habits, are
often subject to headache aad constipa
tion. These are quickly removed by Car
ter's Uitle Liver jPflU,
T--22ZMMMmM
THE WOMAN'S STORE
Ladies Outfitters . Leading Furriers
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DISTINCTION IN DRESS.
We extend to you a cordial invita
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0
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artistic
PICTURE
FRAMING
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Merchandise Bought on Credit Today Will Be Charged on Your March Account
88.75
Wonderful Values in New
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Compare any black silk petti-'
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Description New model, finest quality black
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An Avalanche of New,
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Beautiful Wash Fabrics from all parts of the
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ANOTHER SHIPMENT OF THE MUCH
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SWELiEST TAILOR-MADE SUITS HERE
Superbly tailored; full of the distinctiveness that
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of a smart, new, tailor-made suit, and the Lipman
"Wolfe stock contains all the beautiful styles that
particular women will be most proud to wear.
Every fabric and color that is favored by fashion.
The fit, finish, workmanship the best that money
can provide. "We will make a special exhibit to
day of models ranging in price ffTA ff
from $22.50 to fiV.UU
New Trimmed Hats $4.95
Dress Hats of Hair and Peroxaline
Braids; Leghorn, Milan and Chip
Straws; in fact, every one of the sea
son's choice materials are represented
in this line. A profusion of attractive
styles and shapes; also an endless ar
ray of new colorings, as old rose,
crushed raspberry, pale blue, pink,
Alice, reseda, lilac, etc.; qA.CiZZ
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New Colored Dress Goods
SALE OF POPULAR NEW 5Cc DRESS GOODS
ssjr V 4 Shepherd Plaids, all volorji.
f M m J riald nnrf Shepherd Plaid Mohnlr.
I f If W Mm Xevr Plaid vrltk colored dotn.
mM Mm W J I II AlJ-Woel French Challle.
. Mm. M-lach KajcHh Mohair SIclHna.
ft. M 1 f 1 M 111 II Taller SuItlnRn la New .Mixture.
v m w" All-rrool Albatross aad Nnn's YeUlaKs.
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56-inch Cravenette Coverts; new colors, per yard $1.75
Novelties In Gray Dres3 Goods: We show- the latost weaves and newest
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NEW BLACK DRESS GOODS
4-inch Black Tropical Panamas; a new weave; light weight: CI QQ
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42-inch Black Wool Taffetas; per yard. 85e to l.oo
44-lnch Black Shadow Check and Plaid Telle; very stylish and tfj-l O tr
new; per yard. 51.00 and ;
44-lnch Black French Voiles; $1.00. $1.2 and
44-inch Black Shadow Check Sicilians irv'iH
44-lnch Black All-wool Melrose. Cupclla, Arlzola, Prunella. Peau J-1 nc
d'Sole. Solid Convent Serge, etc. per yard... ZT
44-lnch English Mohair Sicilian, high luster; uOc quality; 49C
per yard -
SALE OF SUIT CASES
Suitcases: x shirt fold and
strapped all around: spe
cial 3.75
Suitcases; shirt. fold: heavy
locks; special $3.25
Pegamond Suitcases; solid
frame; shirt fold: spe
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C o w h i d e Suitcase ; solid
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On sale in om Sheet Music
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HOW TO IKE WHISKY
WHiEY GIVES HOUSE COM3I1T
TEE SOME POINTERS.
Cheap Whisky Made With JliRh
Wines Famed Scotch Highballs
Xot. 3Iadc of Scotch Whisky.
WASHINGTON. Feb. 27.-Dr. H. W.
Wiley, Chief of the Bureau of Chemistry.
Department of Agriculture, appeared be
fore the House- committee on interstate
and foreign commerce again today. The
diet of Dr. Wiley's "poison squad." on
which he tested the effects of borax ad
ministered at the rate of 7 grains a day,
iras discussed at length. The high quality
of the food and the great variety in the
bllls-of-fare as explained by Dr. Wllcy
cauaea considerable levity, and Dr. ney
admitted that he was the "keeper of the
beat boardlngr-house In the world."
Mr. Mann asked Dr. Wiley: Can't you
extend your boarding-house and come up
here to the House and serve out lunch
eons?" Chairman Hepburn discouraged all jok
ing and urged that the scientific investi
gation of the effects of preservatives was
of too great Importance to be treated
lightly.
Dr. Wiley discussed the manufacture
of whisky by the use of high wines, and
made for the committee an Imitation
whisky. He said that high wines could
be had for 13 cents a gallon, plus the In
ternal revenue tax. and urged that it was
unfair to allow mixed whisky to be sold
as straight whisky. Dr. Wiley said blend
ed whisky may be better than straight
whisky and less Injurious, but he insisted
that it should be sold for exactly what
It was. He expressed the opinion that no
real Scotch whisky Is sent to this country
for consumption. Maize Js used, he said,
in the manufacture of the Scotch whisky
sent here.
was a party to the ruin of an American
mining: company by a bond Issue alleged
to have been fraudulent and a foreclosure
sale without notice to American owners.
It was alleged- by Mr. Gage that mining
property worth millions was sold In an
out-of-the-way place without proper no
tice for 39,00O.
KAXSAX'S RECIPHOCITX BILL
Proposes Reduction of Twenty Per .
Cent on Dlngley Tariff.
WASHINGTON. Feb. 27. (Special.)
Jtepresentativc Curtis (Rep., Kan.) today
Introduced a bill in the House directing
the President to enter Into commercial
agreements with a view to securing re
ciprocal trade with foreign countries.
Any foreign country entering; -Into a trade
agreement with the United States, ac
coralngr to the provisions of the bill,
can,, by executive order., enjoy a reduc
tion, of not exceeding- 30 per cent of the
Dingley rates on its products when Im
ported into this country." '
MOVE TO CUT OFF SEED GRAFT
House Committee Condemns Appro-
prlation for Free Distribution.
WASHINGTON. D. C. Feb. 27. The
House committee on agriculture today de
cided by a vote of 8 to 7 not tp recommend
any appropriation to buy seeds for free
distribution by the Department of Agri
culture. This means a saving- of about
52),C0O annually. The only seeds pur
chased by the departments hereafter. If
Congress sustains the committee, will be
unusual varieties for use at experimental
stations.
New York The proposed vWt of the Qaeen
Dowager, Uarghaxlta of Italy, on an auto
mobile trip to this country, may be deferred,
on accocnc of certain anarchistic meetings
held recently In th! and neighboring- cltl.
CHARGE AGAINST
SORESBY ;
I
House Committee Urged to Investi
gate Minister to Bolivia.
WASHINGTON, Feb. rr. Otis S. Gage,
of New York, and N. T. Cn-tchfleld. of
Louisville. Ky.. today urged the House
committee on fotclgn affairs to make a
favorable report on the Gilbert resolu
tion to Investigate charges agslnsc W.
B. Sorcsby, the "United States Minister
to Bolivia. Mr. Gage, wh was associ
ated with Mr. Soreaby In mining develop
ment In Ecuador, charged that Soresby
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