i
VOL. XLVI.-XO. 14,107. PORTLAND, OREGOy, SATURDAY. JUXE 9, 1006. ' Fit ICE FIVE CENTS.
. . . 4 fl I
001
BRYAN
CATCHES
CHICAGO
IIIinoisLeadersQuicklv
Quit Hearst.
CONSERVATIVES ALL LINED UP
Ownership Man Breaks Out in
Frenzy of Wrath.
DENOUNCES PARTY CHIEFS
Force, of Tidal Wave at First Took
His Breath, but Now He Battles
Willi It Dunne Known
as Hearst Man.
CHICAGO. June 8. (Special.) The Bryan
boom struck Chicago today. '-William Jen
nings Bryan for President in 190S" was
the theme wherever Democratic politi
cians gathered, and Republican leaders
paid the movement that has been making
itself felt throughout the country for sev
eral weeks means that the Republicans
will have a real battle on their hands in
the next National contest. Members of
the executive committee of the Iroquois
Club met during the forenoon and decided
that a banquet and reception will be ten
dered the Nehraskan upon his return from
abroad. A meeting of the committee to
take definite steps toward arranging the
affair will be called within a few days.
Will Swing Illinois Into Line.
Democrats throughout the state who
supported W. I Hearst for President In
1904 have been sounded by state organi
zation leaders, and it was learned today
that the verdict of the country districts Is
for Bryan for President in 1908. In .addi
tion to the former Hearst following. It
is now practically certain that Bryan will
have the cemontin,? power of the Hopkins.
9ullivan state organization and the com
pact and militant Harrison machine In
Chicago also behind him. It is the talk
on all sides of the political ramparts that
Bryan resolutions will be presented to the
Peoria state convention of the party Au
gust 21 and carried with a demonstration
that will make "good reading" throughout
the country.
Growth of Tidal Wave.
The recent rush to the Bryan standard,
in which Missouri, Arkansas, South Da
kota and Indiana have participated, la
compared by the political captains to a
tidal wave. On June 1 dispatches from
Indianapolis heralded the fact that the
Hoosier State convention would indorse
the Nebraskan. A day later Tammany
chieftains sent out word that the New
York City organization would be with
Bryan. On June 5 the Missouri state con
vention went for Bryan. Governor Folk,
who had been mentioned throughout the
country as eligible for Presidential hon
ors, was among the foremost leaders to
declare ' for the leader of 1896 and 1900.
David R. Francis, ex-Governor of Mis
souri, epoke of Bryan as "the world's
greatest private citizen." Arkansas and
South Dakota fell into line June 6. The
Arkansas resolutions were sprung as a
surprise. A speech was made lauding the
orator and the resolutions were passed
without a dissenting voice! The South
Dakota convention cheered every mention
of the Nebraskan's name, and passed ius
resolutions amid "a storm of applause."
The Democrats who assembled at In
dianapolis yesterday declared that
Bryan's policies had been adopted by
Roosevelt and bound the Democracy
to him for the next Presidential con
vention Insofar as resolutions can bind
a party. The friends of Chairman
Thomas Taggart, of the Democratic Na
tional committee, and the conservatives
are declared to have rivaled old-time
Bryan men In the applause.
Hearst at First Bewildered.
Observers see the unfolding of a
drama In the rise of Bryan and the de
cline of Hearst. Hearst is believed by
the politicians to have been prepared
to attack any other formidable candi
date whom the conservatives might
bring forward and was at a loss tosee
his way clear to strike at Bryan, whom
he has supported in two campaigns.
The Hearst men are known to have
boomed weak candidates, that the
forces so accumulated could be welded
into a cohesive body and united for
Hearst.
A few weeks ago there was a meeting
of prominent conservative Democrats in
New YorK. Among the conferees was
Roger C. Sullivan, of Chicago. It is sus
pected that the conservative leaders
then and there decided to support
Bryan.
Fours Wrath on Conservatives.
Appointment of a conservative advis
ory committee for the National Con
gressional committee, which Is a
Hearst body, aroused the full torrent
of Hearst wrath and on May 31 Hearst
formally broke with the conservative
Democrats and began a series of at
tacks upon them, denouncing Taggart,
Sulilvan, Guffy, of Pennsylvania; Mc
Graw, of West Virginia; Woodson, of
Kentucky, and others as tools of the
big corporations. If these men had any
doubt up to that time as to whether
they would be for Hearst or Bryan, the
Hearst onslaught Is said to have de
cided their course. The Bryan boom
now in full swing Is receiving any sup
port It majr cued from, the drilled and j
trained forces .of the conservative
Democracy that nominated Parker in
1D0-I.
When Mayor Dunne was asked his
opinion of W. J. Bryan today, he said:
"Mr. Bryan Is a great man and
ehould be go considered by all peoples
Irrespective of rarty or anything else."
The Mayor declined to talk about
Bryan as a candidate. It is known that
Hearst expects Dunne to support him
for the Presidency, if he decided to do
battle with Bryan.
WHYTE TO SUCCEED GORMAN
Governor Appoints Ei-Governor
und Ex-Senator to Senate.
BALTIMORE. Md., June 8. Governor
Edwin Warfield has just announced the
appointment by him of ex-Governor
William Pinkney Whyte, of this city,
to succeed the late United States Sena
tor Arthur Pue Gorman.
Ex-Governor and ex-Senator Whyte
will enter the Senate for the third time
and f-r the second time by appoint
ment to till an unexpired term. In 1871
he was elected Governor of Maryland
and In l!4 United States Senator. He
declined re-election as Senator in 1880
and was elected Mayor of -Baltimore
the following year.
Folk Will Welcome Bryan.'
JEFFERSON" CITY, Mo., June 8-
Governor Folk tonight telegraphed ac
ceptance of the invitation extended by
Harvey Walker, of New York, to pre
side over the meeting which will wel
come W. J. Bryan, when he returns
from his. trip around the world.
FIRE DESTROYS FOUNDRY
Hcacocli & Lawrence Iron Works
Burned Loss About $15,000.
Fire, originating from overheated cast
ings, destroyed the Heacoek & Lawrence
Iron Works, at East Seventh and Bel
mont streets, at 1:45 o'clock this morning,
burning property valued at $15,000. The
blaze was not discovered until some
time after the plant was on Are, and by
the time the department arrived the en
tire structure was in flames.
Houses which surround the iron works
were endangered, but the fire was not
allowed to spread. The machinery in
the rear of the works was completely de
stroyed, and the castings which had been
recently molded were rendered useless.
The. company values its holdings at $15,
000. and was only partially insured.
Two alarms were turned in for the same
fire, the first from East Morrison and
Grand avenue and the second from East
Twelfth and Ankeny.
Kef uses to Quush Indictments.
NEW YORK, June 8. Recorder Goff
today refused, a motion to dismiss the
Indictments for alleged grand larceny
and forgery found against Frederick
A. Burnham, president; George Burn
ham, Jr., vice-president and general
counsel, and George Eldridge, vice
president pf the Mutual Reserve Life
Insurance Company. The motion was
made on the ground that Illegal and
incompetent evidence was submitted to
the grand jury.
Broken Drum Causes Death. .
, OGDEN. Utah, June 8. (Special.) Her
bert H. Holbrook a drummer in the
Nichols Band, met death today as the re
sult of a broken drum. Some person
had stepped through the drum, and when
Holbrook attempted to get on a street
car later the broken head of the drum
caught on a brake lever, throwing hln
under the wheels, where he was killed
Instantly.
CONTENTS TODAY'S PAPER
t The Weather.
YESTERDAY'S Maximum temperature, 67
dt-fE. : minimum, 62 dee.
TODAY'S ijhowera; winds mostly southerly.
.Foreign.
Czar summons ministers and change seems
impending. Page 5.
Radicals causing split among Russian Demo
crats. Page 5.
Greece and Roumania sever diplomatic re
lations. Page 4.
Great naval review planned In England
Page 4.
National.
President llkley to win meat Inspection
fight, though opposition is strong. Page 1
Another committee indorses Nelll-Reynolds
report. Page 1.
President insists on radical reform at pack
eries. Page 4.
Crumpaeker denies authority of Congress to
require meat Inspection. Page 3.
Hitchcock again wants Sheldon Jackson's
scalp. Page 4.
Politics.
General stampede of Democrats to Bryan
continues and enrages Hearst. Page 1
Successor to Senator Gorman appointed.
Page 1.
Gearin says Legislature must elect Bourne,
Page 5.
Domestic.
San Francisco unites to bring Insurance
. companies to terms. Page 1.
Another high official of Pennsylvania rail
road implicated In coal charges. Page 4
Hurricane does great damage in Southern
Ontario. Page 1.
Rival claimants for lost boy at Boonvllle.
page z.
Man who began as .telegraph operator re
tires a multl-mllllonalre. Page 5.
Feud In Polish church causes murder.
. Page 5.
Sport.
Portland wins from Los Angeles In five-
Inning ball game. Page 7.
Pacific Coast.
"Washington State Bar Association to meet
at Everett, July 12-14. Page 11.
A. A. Armstrong hanged at "Walla Walla for
murder of Robert Patton at Aberdeen.
Page 9.
Burglars loot five stores in Clarkston, Idaho;
three suspects arrested Page 0.
Seattle manufacturers plan invasion of Ore
gon markets. Page t$.
Thirty guests of fashionable Seattle board
ing-house poisoned by raspberry tarts.
Page 6.
Commercial and Marine.
Foreign hop crops are backward. Page 15.
Chicago wheat market makes further ad
vance. Page 15.
No outside interest in stock speculation.
Page 15.
Commodity prices highest In 20 years.
Page 15.
Stowaway on steamer Dulwich 1b allowed
to ship for home. Page 14.
American-Hawaiian steamships may call at
Portland. Page 14.
Portland and Vicinity.
Woman suffragists declare that their en
franchisement is not beaten, but merely
postponed, and that they will try again.
Page 16.
Corporations are squirming under tax laws
just enacted at the polls. Page 1.
Democrats of the Coast are boosting Cham
berlain for the nomination for the Presi
dency. Page 10.
Puter will soon be sentenced. Page 16.
Surveyors in the field for the Harrlman line
to Puget Sound. Page 13.
Court asked to give divorce decrees where
marriages have proved failures. Page 10.
Fire on East Side early this morning.
Pa A. ...
L
BEAT BEEF TRUST
Though House Com
mittee Opposes. .
PUBLIC OPINION BEHIND HIM
Will Secure Inspection of
Meat-Packing Houses.
ANOTHER ADVERSE REPORT
Agricultural Department Indorses
Main Charges of Neill and Reyn
olds in Exhaustive State
ment of Conditions!
OREGONIAN NEWS BUREAU, Wash
ington, June 8. In spite of the power
ful influence being brought to bear
directly and indirectly by the beef
trust. President Roosevelt will in all
probability be able to secure the flnal
enactment of the Beveridge meat in
spection amendment to the agricultu
ral bill or some legislation equally ef
fective. The current hearings have
shown that a majority of the House
committee is opposed to radical legis
lation and, unless there shall be a
change of sentiment, the committee
will report a substitute amendment
that will not be satisfactory or ac
ceptable to the President. However,
public sentiment on this, as on the rate
question, is behind Mr. Roosevelt, and
on a great issue of this character that
affects every American family, the
House of Representatives will naturally
legislate to meet the demands of the
general public.
Willing Servants of Trust.
Chairman Wadsworth and Represen
tatlve Lorimer, of Chicago, have shown
themselves to be willing servants of
the beef trust and throughout the In
vestigation have used every opportu
nity to discredit witnesses who have
advocated stringent Government in
spection of meat. Mr. Wadsworth's po
sition Is not generally understood, but
grows out of the fact that he himself
is a large stockralser and has been in
close touch with the trust. Mr. Lorimer,
while a member of the agriculture
committee, never attended Its meetings
until the beef investigation came up
since when he has been on hand every
day; has been active in the attempt to
discredit the Nelll-Reynolds report and
has shown up in his true light as a
direct representative of the Chicago
packers, who apparently control him
completely. The facts that these two
friends of the beef trust are leading the
fight against the President has a ten
dency to weaken the opposition.
Protests From Stockmen.
The beef trust has cleverly worked
up sentiment among the stockgrowers
of the West antagonistic to the Beve
ridge amendment, making it appear
that this legislation would injure the
stock industry. Hundreds of protests
against the amendment have been re
ceived by Western men from stock-
growers of their states, but these tel
egrams have comparatively little ef
feet, for many Western Congressmen do
not believe the Beveridge amendment
will work any great injury to the
stock industry. Moreover, they take
the position that the health of the en
tire American people is to be considered
above the interests of the stockgrow
ers.
Cannon Against Roosevelt.
In this fight Speaker Cannon and
practically the entire Illinois delega
tion have lined up against the presi
dent and ordinarily the Speaker could
control the House, but the opinion pre
vails today that Mr. Cannon will be
overturned unless he changes his at
tltude and supports legislation accept
able to the President. The House in
vestigatton has been conducted in a
high-handed manner by Mr. Wadsworth
and Mr. Lorimer and the Government
representatives have been treated most
unfairly, while every consideration has
been shown the representatives of the
packers. This is proving another im
portant factor In forcing through
stringent legislation.
ANOTHER OFFICIAL REPORT
Agricultural Department Partly In
dorses Neill and Reynolds.
WASHINGTON, June 8. What is known
as the Department of Agriculture report
on packing-house conditions was sent by
the President to the House today. A part
of this report is a letter "dated April 5,
1906. from A. D. Melvin, Chief of the Bu
reau of Animal Industry,, in which he
says, commenting on the sanitary condi
tions:
'From personal observation I know
that sanitary conditions at abattoirs
where this bureau maintains inspectors,
while not always satisfactory, are much
superior to those at the average establish
ment without such inspection."
Further he says he knows that many
diseased animals are not shipped to mar
ket centers where inspection is main
tained. He advises the most rapid ex
tension of the Inspection possible, and
says the demand for inspection is much
greater than can be supplied.
"It might be well to state," he says.
"that in any slaughter-house, no matter
how sanitary conditions may be, there is
much that ia revolting to one not accus
PRESIDENT
WL
tomed to such eights, and one who visits
them must expect to witness scenes of.
blood and offal and to have his nostrils
offended by disagreeable odors, as well as
to see finely dressed beef and mutton and
tempting (lams and bacon. '
Will Improve Inspection. -He
says the report of the committee
of three officials of the department is
fully approved by the Bureau of Ani
mal -Industry, and that wherever
weakness In the system of inspection
has been indicated steps will at once
be taken to remedy the conditions. He
says he will obey the order of the Sec-
rretary that when proprietors refuse to
place their premises in a sanitary con
dition he will withdraw ths Inspec
tion. The report of the committee of
three, dated April 3, and signed by
Joan L. Mohler, Chief of the Patholog
ical- Division; R. P. Steddom, Chief of
the Inspection Division, Bureau of An
imal Industry, and George P. McCabe,
Solicitor of the Department of Agrl
tulture, accompanied the report.
The report consists of 143 typewritten
pages. The committee began its work in
Chicago March 12 and concluded March 22.
All abattoirs in Chicago having Govern
ment Inspection and two others were in
spected. System of Inspection.
The report deals' with eight subjects:
The ante-mortem meat Inspection service;
the Federal post-mortem inspection, in
cluding microscopic Inspection; the meat
inspection service maintained at Chicago;
the meat Inspection maintained by the
City of (Jhlcago; the Government supervis
ion of canned products; the sanitary con
dition of each establishment; the legal
phase of the question, and the conclusions
and recommendations of the committee.
The report begins with the Union Stock
yards, at Chicago, 500 acres, all but 50
acres of which is paved. "The drainage te
good," the report says, "and the pens are
kept as clean as the character of their
use will permit." The ante-mortem in
spection is commended, and the statement
says rejected animals are required to be
removed by their owners from the pens
and are disposed of under the law at an
official abattoir, under the supervision of
Federal, state and city officials. In 22 es
tablishments in 6hcago meat products
are inspected.
The committee entered every room in
the institutions visited in making its in
quiry regarding sanitation. The report
says :
The sanitary condition in some of the abat
toirs ia good; In some it Is fair and In others
It is bad.
Rats Gnaw One Carcass.
The dans-er of misstating an episode for a
nraettce is illustrated by an Incident whloh
the committee learned March 24 at abattoir
No. 1. In the cooler of thla plant two rats
were observed consuming the meat or a con
demned hog carcass. In no other abattoir
were any rats or rat excrement seen, although
the committee visited every room and cellar
of each abattoir. In many cases cats were
maintained in the abattoirs to exterminate rata
and other means of preventing th$ depr-jda-
tions of rats were also Observed.
The report stste-s that it Is impossible
to make a general Investigation of sani
tary conditions, and, continuing the com
ment on this same abattoir, says:
Cleaning Up Killing-Room.
The wall and woodwork of the killing-room
are painted the height of ten feet and pre
sented a clean appearance. Above the paint
the woodwork ui whitewashed, but not re
cently. The timbers were wet, probably the
result of steam. There was dirt on overhead
rafters and beams. The windows of this
room were dirty. The natural light and ven
Illation were good. The visit of the committee
was unannounced and it was observed that
workmen were engaged in cleaning tne floors.
benches and variu portions of the machin
ery- The odor of chloride of lime was no
ticed. At the close of the day's work the killing
floor was washed with equal parts of caustic
soda and nine tar. -Hollowed by an application
of "hot. steaming water." Hot water was
also applied to the floor or the cutting-room.
The order of the superintendent, as report
ed by one workman, was, "No saving of soda;
make it clean.
Bad Steam Readies Meats
The water-closets for the workmen all open
Into a common shaft terminating In a trough,
through which a constant stream of -water
was flowing. In one of these closets a jet of
live steam was playing on the excrement and
the vapor was rising and being disseminated
across the rail, on which some carcasses were
being carried to the cooler.
The floors in some of the lower places were
an Inch deep In brine. Salt pork was In j.iles
on the floor without racks, except an order
from the "War Department, which was on racks
and cleared the floor by six inches.
The beefhouae was next Inspected from a
sanitary point. The coolers were in good con
dltlon. The retainlng-room was almost filled
with meat, part condemned by Federal in
spectors and the other part by city inspectors.
The Government room had good natural
light, but windows were dirty; the room had
a good brick floor.
Tripe-Room Is Filthy.
' The tripe-room was In a filthy condition and
full of steam.
The fat and bone room has little natural
light: otherwise it was In good condition.
The sausage cooling-room was commended.
In the sweet pickle cellars water was drip
Ding from the ceilings continuously, and in t
mall trimming-room adjoining water was
dripping on tables where women were trim
ming meat.
On the sheep-kllllng floor the general con
ditions were good. The water-closet opened
directly from the Rilling noor, and the parti
tlon did not reach to the celling. One em
ploye was observed urinating In the gutter of
the killing floor.
Where Conditions Are Good.
The smoke-room conditions were said
to be very good; also the dressing-room
of the beef-killing gang. The water
closet is located in a corner of the killing-
bediJ.
The sausage-plant department and
smoked-beel department were commend
ed. In the main tank-room a water-closet
is located which Is apparently not flushed,
and was found In an unsanitary condition.
Another canning-room was clean, light
and dry. In the chipped-beef department
the floors were old and wooden, but clean.
Tliere was some evidence of whitewash on
the walls and ceilings, and the lower
woodwork was painted.
The water-closet ' for men in the can
ning-room is separated and well flushed.
though poorly lighted.
Floor Crusted With Dirt.
The beef-extract department has cement
floors and clean windows, is nicely white
washed and painted, and ia generally san
itary. In the beef-cutting and trimming
room "the floor was crusted with dirt.
Artiflcial light."
Abattoir No. 2 was gone through with
the same detail, and the condition report
ed better In many -respects than in No. 1.
The cooking, stuffing and soldering room
in No. 2 was given this description:
Where Canned Goods Are Cooked
This room contains a -processing machine in
which the canned product is cooked In oil,
and the room is ventilated over this machine,
Concluded on Page 3. A
EXASPERATE CITY
BY LONG DELAYS
Insurance Men Defer
Paying Losses.
SAN FRANCISCO HAS UNITED
Sufferers by Fire Present
Solid Front to Them.
MILLIONS IDLE IN BANKS
All Manner of Devices to Avoid Pay
ment or Reduce Amounts Di
rectors May Be Sued Black
list of Procrastlnators.
BT P. A. SINSHEIMER.
SAN FRANCISCO, June 8. (Special cor
respondence.) Interest here has centered
in the Insurance situation. Business con
ditions remain uncertain and wait upon
the settlement of losses. The time has
come when the insurance companies must
positively declare themselves. The policies
held by San Franciscans call for the pay
ment of about $200,000,000. So far. but little
more than $3,000,000 has been paid, and al
most all of this was In small amounts.
The $200,000,000 Is needed to enable the peo
ple of the city to resume business. How
badly the money is needed may be gath
ered from the clearing-house figures. In
May. 1905. the clearances in San Fran
cisco amounted to $147,000,000. For May,
11)06, the clearances amounted to $50,000,000.
In other words, one-third, as much busi
ness was done last month as in the cor
responding month a year ago.
People Wait, Millions Idle.
The policyholders have become weary of
the dilatory tactics of the insurance com
panies. They have refrained from erlti
clKtn for six weeks, but now are Insisting
that their -claims be paid without further
delay. The policyholders of each com
pany have banded together for protection.
They have the support of the newspapers,
the commercial bodies and the Industrial
and commercial organizations of every
city on the Coast. They no longer deal
as single individuals with the Insurance
companies, but present a solid front which
is not to be repulsed. This organization
will save them in the end.
It is known that millions of dollars are
lying dormant in the banks of this city
and Oakland to the credit of the insurance
companies. The question naturally sug
gests Itself: Why do not the insurance
companies pay? The answer is that they
are trying to drive the best bargain they
can, hoping to bring'about a compromise
in the end. These are not pretty tactics,
but nevertheless they are used. - ...
Rich Men Dodge Liability.
Of course, some companies cannot pay
In full. These concerns will be allowed to
settle on the best terms they can. How
ever, the companies which are irritating
the local policyholders are those controlled
by wealthy men, who are able as indi
viduals to settle in full, but who are seek
ing to wreck their concerns and hold on
to their millions, which represent the pre
miums paid by the people.
One' company has already gone into the
hands of a receiver, 32 other American
companies have been forced to take some
special action owing to their losses, five
companies have reinsured In other corpo
rations, eight companies have announced
an increase in capital stock, 18 concerns
have taken steps to provide special funds,
either by stock assessment or otherwise,
and one company has suspended business
In California. Several foreign' companies
have also been forced "to take special ac
tion as a result of their losses. One hun
dred and seven" companies suffered losses
in the disaster, and from the foregoing it
will be observed that few of them will
weather the storm without some mighty
clever maneuvering.
Must Pay Dynamite Losses.
The companies, at a recent meeting in
New Tork, decided not to pay the losses
due to the earthquake, but left the ques
tion as to the dynamited buildings in an
uncertain condition. Indications are that
the companies will not be able to escape
payment for the structures blown up to
stay the progress of the flames. The best
legal opinion is on'fhe side of the owners.
It has been contended by the insurance
companies that the" delay In payment was
occasioned by the necessity of adjusting
In cases where the companies had rein
sured. A sort of insurance clearing-house
was established to deal with this phase
of the situation. All went well until the
announcement was made this week that
the decision of the insurance clearing
house was not binding. In other words, if
the loss is apportioned, those companies
which are pleased with the apportion
ment will pay, but those not pleased, will
not pay, and the policy-holder can whistle
for his money. It is positively known
that 781 large claims) have already been
adjusted in this manner, but there have
been no payments as yet.
Obstruct Removal of Debris.
Another source of trouble is the lack of
harmony among the insurance companies
In regard to the removal of the debris.
Some companies will allow it, and others
will not. Most of the large buildings
were Insured in more than one company.
Therefore. If some small company shows
an Inclination to be fuasy (as most of
them, jiave), the. debris must remain and
building operations cannot be begun.
These tactics stand in the way of prog
ress. .
The companies must show their hands
in no uncertain manner this week. The
loss of the California Wine Association
has been brought to a head. It repre
sents about $1,000,000. and several compa
nies are Interested. This adjustment
will be watched with keen Interest, as It
is the first of the big losses to approach
a settlement. If the settlement is not
prompt, affairs between the policy-holders
and the companies will begin to buzz.
Hot on Trail of Traders.
The means employed to force compro
mises of losses are interesting. The
Traders" Company, of Chicago, for in
stance, sent an attorney, Thomas Bates,
to the Coast to confer with the policy
holders. The Traders has done a big
business in this city, and the claims
against it .aggregate $5,000,000: This is
the company, by the way, which has
passed Into the hands of a receiver. Bates
met the policy-holders in this city during
the week, gave them a long talk about
the "square thing," told them that the
directors had left nothing undone which
could be done for the policy-holders, and
ended by offering to square all acounts at
60 cents on the dollar. The policy-holders
adjourned to take the matter under con
sideration. Then they placed themselves
In touch with Chicago, where the com
pany has Its main office.
They learned that the Traders company
was controlled by a group of men at the
head of which are: John J. Mitchell, T.
J. Lefens, Clarence Buckingham, B. A.
Hamill and Charles L. Hutchinson. The
Individual fortunes of these men will
reach $50,000,000. Lefens is the wealthiest
German in Chicago, and the other men
are bank, presidents or vice-presidents.
The organization of the Traders was also
Inquired into. It had a capital of $300,000
and a surplus . of $1,300,000, and had writ
ten, policies throughout the world to the
amount of $160,000,000, and yet, when It
was hit to the tune of $5,000,000 in San
Francisco, It threw up its hands and de
cided to let the policy-holders go hang.
However, there is a little law on the
-statute books of San Francisco which
has been there so many years and so lit
tle used that people had forgotten about
it. It provides that the policy-holders
may hold the Individual directors of a
fire insurance company responsible for
claims against the company. When this
was brought to the notice of. the million
aire directors In Chicago and suit threat
ened, they called for their attorney to
come home, and announced that they
would make another effort to satisfy the
policy-holders.
The case was aggravated by the action
of the company in refusing to agree to a
proposed assessment of $300 a share to
meet the San Francisco obligations. The
assessment was favored by some honest
men In the directorate, but others' refused
to contribute from their private fortunes
to fulfill their obligations, and the plan
fell through.
This is but a. sample of the methods at
tempted. It must be said that the local
agents are fighting bitterly against these
tactics. They feel that they have betrayed
their friends, whom they have induced to
insure. The resident agent of one of the
largest companies in the United States
resigned in disgust last week because his
company insisted upon shaving all claims
against it.
How the Shy locks Work.
A typical case is the following. A lady
called upon her agent to collect $500, the
loss sustained through the destruction of
her piano. The agent made a deep study
of his papers.
"I should like to collect the money as
soon as possible," said the lady, "for I
fear we shall need It very soon."
"Oh," replied the agent, "why, it will
take a long time to adjust this."
"How long?" inquired the woman.
"Oh, about a year I should say."
"As long as that?"
"Yes, that is if it goes through the reg
ular channels. . However, if you wish to
expedite it, we may be able to make some
other arrangement."
"What would you suggest?"
"Well, we can pay you $300 at once If
you are willing to take It in full settlement.-
Personally, I should advise you to
do that. We have any number of big
claims to settle, and it is a question if
we will be able to pay any of the small
claims when we get through with those."
The woman In most cases would accept
the $300, but this one did not.
This same method Is pursued with the
larger claims, but the Incident cited came
under the observation oT the writer and
is given as a sample.
Will Blacklist Crooked Ones.
Some unexpected factors have appeared
this week to improve the general outlook
for the policyholder. The Chamber of
Commerce has announced that it will pub
lish a list of ah the companies which deal
unfairly with the policyholders, and it has
received the assurance of the leading com
mercial organizations in the largest cities
of America that they will see that the list
circulates through their districts. The
Credit Men's Association, which has
branches in every city of any size in the
United States, has resolved upon similar
action.
The State Legislature has determined
upon a statute extending the time to file
proofs of losses and another requiring
every Insurance company to file with the
State Insurance Commissioner a list of its
policyholders In California, with the
amounts. This last is a very important
measure, as hundreds of persons had lost
their policies and could not remember for
what amount or in what company they
were insured.
Play for Time to Compromise.
In general, it is the plan of the recalci
trant companies to tire the policyholders
until in desperation they will be willing
to accept a compromise. Day after day
they play for time, making appointments
to adjust claims, then throwing a maze of
technicalities in the way. It must be said,
however. In justice to some of the larger
concerns that they are showing a disposi
tion to be just, but are hampered by the
other concerns, whose only hope is in de
lay and compromise.
SQUARE COMPANIES WILL PAY
They Cut Loose From Those Which
Play for Delay.
OAKLAND, Cal., June 8. The Board of
Underwriters at a meeting held here to
day adopted sweeping change's in Its pol
icy toward loss adjustments with the
passage of the following rule:
Beginning with next week, the sub-committees'
reports on losses will b filed with
Concluded on Page. 2
GORPDRAT IONS
M. SQUIRMING
Are Looking Around for
. Escape Holes.
WILL FIGHT THE TAX LAWS
Could Not Beat Them at the
Polls.
USE TECHNICALITIES NOW
Not Disposed to Pay Their Share)
Towards Maintenance of the
State Government, They
Will Employ Lawyers.
Squirming under the gross-earnings tax.
enacted at Monday's polls, attorneys for
the corporations involved are searching
for escape-holes. One law puts a 3 per
cent state toll on the receipts of express
companies and a 2 per cent toll on the re
ceipts of telephone and telegraph com
panies; another imposes a 3 per cent
charge on the gross earnings of oil com
panies and sleeping-car and refrigerator
car companies.
These two laws were enacted under the)
initiative last Monday by majorities esti
mated at between 25,000 and 30.000. Seeing
the futility of fighting them, the corpora
tions put forth no effort to beat them,
because, as several of the corporation at
torneys said yesterday, "It was no use.'"
Trying to Pick Flaws.
But. now that the acts have been or
dained by the people, the attorneys will
doubtless endeavor to pick flaws in them.
The 2 and 3 per cent tax, they say. is
excessive, and beyond the power of the
companies to pay. The attorney for an
express company said yesterday that the
toll would consume one-third of the earn
ings of his company in Oregon. The-man-ager
of a telegraph company said It was
foolish to think of paying the charge.
Asked how he expected to get out of pay
ing, he responded:
"I guess there are enough corporation
lawyers to find a way."
Speakjng for the Standard Oil Com
pany, an attorney remarked:
"The Standard Oil is not a public-service)
corporation in the sense that telephone,
telegraph and express companies are
such. That is, it Is not a common car
rlr; it has not the power of eminent do
main and enjoys no special franchise, no
corporate privileges from the public. It
sells Its product In Oregon as many other
companies sell their commodities, or as
you or I would do."
All Squirm at Tax.
In similar vein spoke the representative
of an express company. In his view, his
kind of companies should be exempt, or
should have a lighter tax, because they
had no power of eminent domain nor any
franchises. On the other hand, the tele
phone' and telegraph companies say that
they pay so many other kinds of charges
franchise tax, corporation tax and occupa-
tion tax, in addition to the regular prop
erty tax that tliey ought not to be sub
jected to an earnings tax.
"If these companies had only submit
ted to a light earnings tax in the Legis
lature of 19u5." said a prominent corpora-
tion attorney yesterday, who was en
gaged with them in their opposition to it
at Salem at that time, "they would not .
now be subjected to this extortionate
charge of 2 and 3 per cent. I advised
thenr to accept a bill for 1 per cent, but
they would not. and now they've got
something very much worse."
Call the Laws Fierce.
That the two laws are very "fierce"
is the common assertion in the ranks of
corporations concerned. Their representa
tives assert that they will give Oregon
a black eye before the investment world,
of capital, and that many dollars which
otherwise would seek Oregon for invest
ment will now dodge this state.
The corporations made no effort to beat
the bills at the polls. Public opinion,
they saw, could not be thwarted In Its
demand for such legislatlorl. Before the
election, conferences were held by their
representatives, to consider what was
the advisable course to pursue. It was
then decided that powder fired would be
wasted and that the safe and sane method
was to take to the cellar until after the
cyclone had swept by and then to see
if the courts would not help make re
pairs. Go Into Erfect In July.
The two tax laws, together with the six
other acts passed at the polls, are to go
into effect next month, after the offi
cial canvass of the county returns shall
have been made by the Secretary of State
and they shall have been proclaimed by
the Sectetary of State.
"It shall be the duty of the Secretary
of State," runs the law regulating the
enactment of initiated measures, "in the
presence of the Governor, to proceed
within 30 days after the election, and
sooner if the returns be all received, to
canvass the votes given for each meas
ure, and the Governor shall forthwith is
sue his proclamation, which shall be
published in like manner as other publi
cations herein provided for, giving the
whole number of votes cast in the state)
for and against each measure and ques
tion, and declaring such measures as are
approved by a majority of those voting
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