Image provided by: University of Oregon Libraries; Eugene, OR
About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (July 19, 1906)
Jj (topmfem ill PORTLAND, OREGON, THURSDAY, JULY 19, 1906. PRICE FIVE CENTS. VOL. XLVI.-NO. 14,231. FRANCHISE STEAL COMES TO LIGHT Political Jobbery Has Cost City Millions. SPOILS SOLD TO BIG MERGER Council, Charter Board and Legislature All "Worked." THEN THE GOLDEN HARVEST ,eivtf. Corbett and Ladd Families, Mills, Swigert and Campbell Profit Political Machine Pat Through Deal. Behind the sale of the consolidated Btreet-car system of Portland In May of last year for $6,000,000 to Eastern capi talists U a record, just coming to light, of political jobbery, costing the city mil lions of dollars, whereby the sellers, in cluding members of the Lewis, Corbett and Ladd families, and A I Mills, C. F. Swigert and H. C. Campbell, secured from the Council 30-year "blanket" fran chises, enabling them to consolidate the two main car lines; put through the Leg islature an act allowing them to sell the franchises, and three months later dis posed of them to Eastern Investors J. & W. Seligman. of New York, and EL Y7. Clark & Co., of Philadelphia, who have since merged their purchase with the Portland General Electric Company and the Oregon Water Power & Rallway Company In a $30,000,000 combine. All this was effected by by the aid of the Matthews-Carey political machine, which put the franchises through the Council, one in November, 1902, another In January, 1903, and organized the Legis lature in January, 1906, with A. L. Mills for Speaker, and secured the enactment of the law, which the Eastern buyers evidently wanted, before ,-tbey would pay the millions of dollars for the use of Portland's streets, to the men who had worked the enrichment scheme so cun ningly and secretly. The scheme covered a period of years. It Involved the framing of a new city charter, which would put on future fran chises restrictions not on those already existing this for the purpose of shutting out or discouraging the entrance of com petitorsand then the obtaining of blan ket franchises, free from such restrictions. Just before that charter should go Into effect; then extending to 30 years grants which, on the most valuable streets, had much shorter periods to run. Cleverly and Covertly Accomplished. All this was so cleverly and covertly accomplished tbat the secret purpose was not suspected nor was It fully realized until recently, when the public began to understand that In the free grant of franchises to the Portland Railway Com pany in November, 1902, and to the Oregon Water Power & Railway Com pany in December. 1902. and to the City & Suburban Railway Company In Janu ary, 1903. the city had given away for nothing privileges which plutocratic schemers capitalized and sold for mil lions of dollars, thereby putting on the city a long-time dividend and interest tribute, and depriving the city of the means of offering Inducements to future competitors. The great great public-utility fran chises thus niched from the city have been pooled in the Portland Light, Power & Railway Company, which to day rales all the street-car, electric light and power service Mn this city, and also the gas service, because the owners of the gas company are identi cal with those of the big combine. The use of the public streets for cars find wires and pipes is controlled by this one combine, which has capitalized its privileges at $30,000,000, putting upon the shoulders of every man, wom an and child who rides In cars or burns light the burden of paying dividends and Interest on franchise valuations which the city has permitted the hold ers to secure practically for nothing. Jobbery and Fraud. Within it all Is a record of Jobbery and fraud against the city such aa if unearthed by proper authorities and laid at the door of its perpetrators might work the forfeiture of the grunts, the disgorging of Ill-gotten gains, the return to the people of the use of their streets and lower prices for car rides and electric light and power. The story runs back six years to the time of the revolt against the Simon "machine'- in 19J0 and the suc cess of the Matthews-Mitchell-Carey element In the June election of that year, in electing its nominees to the Legislature. The Simon faction had carried things in Multnomah County with a high hand for many years, and had tampered with the charter In ways that aroused great popular antagonism. When Its opponents won the control of this county in the Legislature, they os tensibly set about rectifying charter evils and appointed a board of 33 mem bers to draft a new body of organic law for the city. Men on the Charter Board. On this board the franchise Interests were heavily represented by such men as A. L Mills, who was elected presi dent of the body; J. N. Teal and C. E. S. Wood, attorneys In the recent gas in- CHRON'OLOGY OF THE FRAN CHISE DEALS. Chronology of acts which led up to grant of 30-year blanket car franchise. In Portland and their sale for $4,000. 000. the sum of S2.000.000 being addi tional for physical properties, making S6.OUO.000 In all. June 4, 1900 Matthews legislatdve ticket defeats Simon ticket. February, 1901 Legislature creates charter board to draft substitute for Simon charter of 189S. Board elects A. I Mills chairman (afterwards president of Consolidated Car Company), now president of the First National Bank. Other active members, J .N. Teal and C. E. S. Wood, attorneys for Gas Company; F. V. Holman, attorney for General Electric Company; W. M. Ladd, of Ladd & Tilton, bankers. June, 1003 Charter approved in city election, vote U in 10.807 to 1283. January 23. 1903 Charter enacted by Legislature and goes In effect same day. Just before enactment franchises are. granted to Portland Railway Com pany (November 2i. 1902). Oregon Water Power & Railway Company (December 18. 1902). and City & Sub urban Railway Company (January 14. 1903). January 13 (day before franchise grant ed to City & Suburban) charter passed by House and on morning of next day by Senate, but held up, ostensibly for defect In title. January 19 (after franchise granted) charter passed again by House and on same day by Senate and ap proved January 23 by Governor. Under new charter, these franchises could not have been granted longer than 25 yeaTS (Instead of 30 years), "nor without fair compensation to the city therefor," and records and accounts would have been open to public view and Council could have compelled Joint use of tracks "for any distance not exceeding Ave blocks." New franchises give 30-year term, while old ones, surrendered In ex change, had only 16 or 17 years yet to run on most valuable streets. March. 1904 A. L Mills nominated for Legislature by Matthews-Carey fac tion (the same that controlled Coun cil when blanket franchises were granted). June. 1904 Mills elected. December, 10O4 Mills announced as T candidate for Speaker by Matthews Carey element, which pulls down A. A. Bailey. January, 1905 Mills wins speakership from T. B. Kay by 1 vote In Re publican caucus. February, 1905 Mills secures enact ment of bill to validate sale of fran chises; also bills to give larger privileges to car company (rejected at city election June, 1906), and to change method of securing City of Portland deposits, In Interest of large banks (which City Treasurer Werlein says will diminish Interest revenue to city between $2000 and $3000 below last year's). Under blanket franchises, Portland Railway Company and Crtty & Sub urban Railway Company consolidated October 1. 1904. May. 1906 Consolidated company and franchises sold to J. & W. Selig man, of New York, and B. W. Clark & Co., of Philadelphia, for $6,000,000 "cash." (Act validating such sale passed by Legislature in preceding February). Price paid for franchises $4,000,000. the other $2,000,000 representing value of physical properties, which had been paid for, however, by S2.f30O.000 bonded debt. 1 June, 1906 Merged with O. W. P. Company. Growth of capital stock City & Sub urban, $1,250,000; Portland Railway. $800,000; total, $2,080,000 Consoli dated Company, $4,000,000; after sale In May. 1906. $6,000,000; afterward raised to $7,000,000; bonds author ized. $5,000,000. vestlgation for the gas company; F. V Holman, attorney for the Portland Gen eral Electric Company; W. M. Ladd, W. F. Burrell, Tyler Woodward and others, The charter framed by this board put many restrictions against the grant of future franchises. It made up an elab orate body of law for regulation of such grants, limiting their duration to 25 years: ordaining that no franchise should be allowed thenceforward "with out fair compensation to the city there for"; compelling franchised companies to make report of their earnings to the city, and, if a car company, to allow to s competitor joint use of tracks "for any distance not exceeding Ave blocks' this to prevent one company from shutting out competitors from any dis trict of the city, such as the business portion. Restrictions on Future Franchises. These limitations and others on future grants did not apply to the franchises al ready given, which were held chiefly by the three car companies, the electric company and the gas company, whose representatives were members of the Board. The restrictions were extremely popular and mot a general demand. But in places where they could injure exist ing franchises they were wanting they gave the city no power to regulate gas or electricity prices, a power which could have been used now even in the present service. The popular demand stood well In the interest of the franchise interests represented on the Board; they shut the door against entrance of com petitors. The charter, as framed, was submitted to the voters of the city in the election of June, 1902. and approved by an over whelming vote of 10,810 to . 1253. January 23, 1903. It was enacted by the Locisla ture and put In operation the same day. No fight was made against it, for scarce ly anybody perceived its real purport. That was reserved for future events to bring forth, as the "working up" of franchises and their sale for $4,000,000 plus $2,000,000 more for physical properties, and the pooling of all franchise Interests in big combines. Mills Flops to Matthews. The plans of franchise holders had worked well. Their most prominent mem ber. A. L Mills, they had elected to the presidency of the charter board, through whom they organized the body and con trolled it. The Lewises, Corbetts and I.adds who dominated the banking and franchise interests of the city, were high ly pleased. They had a vision of several years later, selling out their franchise and lining their pockets with millions of the people's gold. But to do this several (Concluded on Page 5.) WED ON PROBATION SAYS PROFESSOR Radical Views of Mar riage at Chicago. HOLY ALLIANCES WITHOUT IT Man Beefy and Animal, Wom an Hysterical, Deformed. MOST PEOPLE ARE DIRTY Zueblln Caps Climax of Revolution ary Opinion and Draws Chorus of Protests Demand for Head for University. CHICAGO, 111., July 18.(Special.) Surprise and amazement following the lecture of Professor Charles Zueblln, of the University of Chicago, in which he advocated "probationary marriage," has given way to indignant protest and a demand that the dissemination of such radical and revolutionary views at the Midway seat of learning cease. Trustees of the university are being told on all sides that the delivery of the sensational lecture marks the point where the application of a curb is imperative, and emphasizes the im mediate necessity of the appointment of a strong head to succeed the late President Harper and guide the desti nies of the great school. A very different view was expressed by the secretary of the institution, who declared for free thought and speech. Startling Views of Marriage. Here are some of the things Pro fessor Zueblln said In his lecture: 'There can be and are holler alli ances without the marriage bond than within It-" "Marriages In the United States are nothing but property arrangements." "Women are merely dupes for men under the cloak of the marriage rela tionship." "Every normal man or woman has room for more than one person in the heart." "Our attitude toward Gorky and his wife was nothing but hydrophobia." "Our present attitude toward mar riage makes friendship impossible." Man and Woman Defined. "Man is beefy and animal; woman hysterical and deformed." "Most people are dirty physically, mentally and morally." "No clean-minded person can object to the nude." "Like politics and religion, we have taken for granted that the marriage relationship was right and have not questioned It." "Our society will not bear examina tion." "For the sake of the children, we must have a legal marriage." "A probationary marriage should precede all other marriages." "Motherhood is the chief interest of the human race." "Man bellows when he is hurt. "The luxuries of the rich Chicagoans correspond to the prizefights of the labor ers. "Man's dress is ludicrous. "Most Chicagoans have neither the op portunity nor the desire to remove the dirt. "Ignorance of the body is responsible for much uncleanliness. "The comment of the critics upon Shaw's plays have been positively inde cent. Gorky Much Married. "Gorky is much more married than many Americans. "We are much more concerned with the label than with anything else, as far as marriage is concerned. "Marriage is simply a machine for the propagation of the species. "The property idea is what has degrad ed marriage." Trustee D. G. Hamilton, when asked for his view of Professor Zueblln's ex pressions, said: Trustee Amazed and Shocked. "I Just now saw the quotations from the lecture by the professor, and am amazed. No right-minded man can agree with statements impugning the integrity of the home. For myself personally, I frown upon such attacks. As a trustee of the university, I frown upon the use by any man of his position as a professor in the University of Chicago, and the weight the position carries to dissemi nate statements Inimical to the sanctity of the home, such as those quoted to day." PACIFIC WIRELESS WORK Few Stations May Be Finished This Year, Flatten' First- OREGOXIAN NEWS BUREAU, Wash ington, July 18. Under the appropriation made at the last session of Congress the Navy Department is preparing to erect wireless telegraph stations at North Head. Cape Flattery. Cape Blanco and Tsible Bluff, on the Pacific Coast, to cost In the aggregate not over J60.000. Work will be pu&ned on the Flattery station ahead of the others, because of Its prom inence and the large amount of shipping passing that point, but an endeavor will be made to complete all four stations this season. Few New Army Buildings. OREGON IAN NEWS BUREAU. Wash ington. July 18. The War Department does not propose erecting any new build ings at Vancouver Barracks this year, other than those now under contract. No allotment has been made for this post out of the appropriation made last ses sion. Indeed, very little new work has been authorized at Northwestern points. Fort Worden will get administration, office and school buildings; Fort Lawton. quar ters for civilian teamsters, and Fort Flag ler a root cellar. At Boise Barracks the department will erect one double cavalry barracks and quarters lor officers of two troops of cavalry. Orders to Army Officers. OREGONIAN NEWS BUREAU. Wash ington. July IS. First Lieutenant Gran ville Sevier, artillery corps, in addition to his other duties, will assume charge of construction work at Fort Casey, reliev ing First Lieutenant Harry McCauley, artillery corps. First Lieutenant Arthur S. Cowan, Four teenth Infantry, is detailed as recorder of the examining board at Vancouver Bar racks, vice First Lieutenant Arthur Fer guson, Fourteenth Infantry, relieved. DID BEIT LEAVE WIDOW? LIFE INSURANCE PAYABLE TO HIS "INTENDED WIFE." South African Millionaire May Not Have Been Bachelor, as Sup posed Estimates of Wealth. NEW YORK. July 18. Speculation as to whether Alfred Beit, the South African financier and millionaire, who died in London Monday, left a widow was aroused today by the discovery that in making an application to an American insurance company for insurance on his life in 1890 Mr. Beit named as the bene ficiary of his policy "My intended wife, Elizabeth Bennett Beit." Whether this stated intention of Mr. Belt was ever carried out was not stated in the statistics furnished the insurance company, which showed that at the time he submitted to a physical examination before receiving his policy Mr. Belt was unmarried. Althougn 16 years have elapsed since the policies were taken out in favor of Elizabeth Bennett, and dur ing that time Beit has been constantly brought to public notice, he has always been regarded as a bachelor. BEIT'S FORTIXE EXAGGERATED Probably About $50,000,000 Edu cation Will Get One-Third. LONDON. July 18. Those who are real ly in position to give authoritative in formation regarding the amount of the fortune of the late Alfred Beit, the r.outh African financier, and the terms of his will, have not yet given It to the newspa pers. The pronouncements of the latter, therefore, are purely speculative. Esti mates ranging from $125,000,000 to $625,000, 000 have been published, but it will prob ably be found when the terms of the will are given out that Mr. Beit's fortune was somewhat below $50,000,000. About one-third of this amount. It is expected, will be bequeathed to national purposes in Great Britain and South Af rica, mainly of an educational character, as was a great part of the fortune of his most Intimate friend, the late Cecil Rhodes. Mr. Beit had several married sisters in Germany and Austria, and pre sumably these, as well as his mother and brother, will inherit considerable amounts. CONTENTS TODAY'S PAPER Tho Weather. TODAY'S Fair and slightly wanner; north west winds. YESTERDAY'S Maximum temperature, 7S deg. ; minimum. 56. Fair. Domestic. Chicago professor advances radical ideas on marriage. Page 1. Lawyers have furious row in. Hartje case. Page 3. Elks revise constitution and ritual. Page 4. Thaw refuses to take mother's advice. Page 4. Row between administration and policy holders in Mutual Life. Page 1. Earthquake wrecks Socorro, N. M. Page 2. Deafmute maniac kills two women and mortally wounds man. Page 1. Foreign. Russian crops may be ruined by peasants' strike. Page 1. Russian soldiers threaten death to Colonel and he flees. Page 1. Thousands killed by flood In Japan. Page 4. Earth oldt tells plan for world's congress of parliaments. Page 8. Death of Lady Curzon. Page 3. Alfred Belt may have left a widow. Page 1. Japan makes great strides to Socialism. Page 2. Government and the Trusts. Arkansas attacks cottonseed oil trust. Page 3. . Attorneys work up case against Standard Oil. Page 3. Politics. Dubois says Mormons hold balance of power In Oregon. Page 4. Justice Brewer champions honesty in busi ness. Page 2. Labor Federation questions candidates and blacklists opponents. Page 5. President of Manufacturers' Association de nounces Federation scheme. Page 4. Pacific Coast. Hill threatens to make Seattle sorry If fran chise Is given Harriman. Page 1. A. Justus attempts rescue and Is burned with three children in Idaho ranch house. Page 6- i Castle Rock will not be blown up to make building stone. Page 6. Losses of insurance companies in San Fran cisco disaster are growing. Page 6. Engagement of Francis J. Haney and Mrs. Rebecca Belvln is announced. Page 5. Sport. Giants bat Vlckers out of the box and win by 8-to-l score. Page 7. Commercial and Marine. Wholesale grocers want more steamers on Coos Bay route. Page 15. Further advance in bop contracts. Page 15. Selling checks advance in stocks. Page 15. Steamer Kitsap makes a splendid showing. Page 14. Portland and Vicinity. Details of the franchise steal which cost the city millions comes to light. Page l. Nonunion street-car employes decide to stand by company If strike Is declared. Page 1. Council amends McCusker and Colson gas franchises. Page 10. Kincart pleads guilty, leavlntr onlv Wne-- and Nlckell to face music in first of lana-rraua triais. r-age 1U. Judge Hunt overrules demurrer to J. H. Booth. Page 10. C- E. Loss buys stock holdings of J. Wnyie Evans and J. B. Yeon in United Railways i ompn.il. . riigr ,j. "Big crowd attends grocers' picnic at Bonne ville. Pace 4. E Peabody Is Accused ot Sharp Practice. STEALS REFORM CANDIDATES Mutual Life Administration Ticket Protested. IS CALLED GRAFT TICKET Four Members of Policy-Holders' Committee Named, But They All Object Peabody Questions U ntermeyer's Mandate. NEW YORK, July 18. Four members of the International Policyholders' Commit tee of the Mutual and New York Life In surance companies, who were yesterday included in the New York board of trus tees named by the Mutual Life Insurance Company trustees as "an administration ticket," declined today to permit the use of their names in this city. On their be half a protest was forwarded to Otto Kelsey, State Superintendent of Insurance at Albany by Samuel Untermyer, counsel to the policyholders' organization. Despite this protest, however, it was stated by the counsel for the Mutual that the trustees had a right under the laws to nominate whom they desire and re quests for withdrawals would not be re ceived after the men had once been selected. Named Without Their Consent. Among the policyholders' committee are Judge Gray of Delaware, General Tracy of this city. Colonel Shook of Tennessee and H. N. Higginbotham of Chicago. All of these gentlemen sent telegrams to Mr. Untermyer today declaring that they were nominated without being consulted and without their consent. Acting for the policyholders organiza tion, Mr. Untermyer sent a protest to Aloany today against the manner in which the lists of policyholders in the various insurance companies have been filed. He says the companies have failed to give the proper addresses In many in stances and have been guilty of wilful evasion. Mr. Untermyer declared that the obvi ous purpose of the nomination of those men is to lead policyholders into the belief that the ticket Is nominated by the policy holders. Their names were used, he said, without tholr knowledge and declared it constituted an evasion of the law and a gross breach of propriety. Peabody Answers Untermeyer. "When Mr. Peabody, president of the Mutual Life Insurance Company, was shown Mr. Untermyer's protest he said: I am not surprised, but I am afraid the gentleman has let the cat out of the bag. Perhaps his solicitude that there should be a good board Is not as great aa his solicitude that the control of affairs shall pass out of his hands. I certainly shall not go to him for information on the subject of propriety. We believed that Judge Gray, General Tracy. Colonel Shook and Mr. Higginbotham, not withstanding their criticism of our adminis tration, were men well flt for trustees. They had signified their desire for a change and expressed themselves freely as to the char acter of that change and we felt and still feel that we had a perfect right to place their names upon our ticket. To speak of our doing so aa a breach of propriety is nonsense. Untermeyer Has No Mandate. The trouble In my Judgment Is that Mr. Untermeyer Is not altogether the disinterested public benefactor he would have the policy holders understand. He made up a list, call ing them by the big-sounding name of the international policy-holders' committee, and asked them to meet In New York. It Is absurd to eay that they were delegated to do his work by the policy-holders. No one could by any possibility have reached the policy-holders in such numbers aa to secure any proper mandate from them. We know perfectly well that their commission came direct from Mr. Untermeyer, who personally solicited them to accept places on the so called policy-holders' ticket. The gentlemen upon the committee undoubtedly were moved by high purposes and felt that they were doing their duty, but. when I tell you that of the 28 members who constituted the com mltee no more than ight were policy-holders in the Mutual Life Insurance Company it is clear that they are subject to the charge of aftending to some one else's business. Ticket of High Grafters. John DeWitt Warner, of counsel for the international Pol icy hoi dens Committee, said today that the administration ticket is a "to-hell-with-reform ticket" and about the most deserving of defeat and easy to beat that could have been named. "As it stands,' he said, "it embodies the high graft contingent of the McCurdy regime, while It shows the white feather by suppressing Rogers. "A full opposition ticket will promptly be selected and a campaign commenced to restore the Mutual Life to its position as a great insurance company and stop Its career as a financial pool for the system." FREE TO PROSECUTE GUILTY Kelsey Answers Criticisms on Lists of Policy-Holders. ALBANY, N. Y., July 18. Superintend ent Otto Kelsey, ot the State Insurance Department, today received the two pro tests signed by Samuel Untermeyer, gen eral counsel of the international policy holders" committee, against the action taken by the Mutual and the New York Life Insurance Companies. He said to night that he had no authority to strike any names from the list ot members filed N WH BREAKS OUT ANEW with him. His understanding was that these names were filed with the depart ment as a matter of record. As to the complaint against the form In which the lists of policyholders were filed, he said he had not yet had time to exam ine It particularly, nor had he examined the lists themselves; he would await a more specific complaint as the work of copying progressed. If it should appear that the companies had not in good faith complied with the law, he would take such steps as he considered to be within his duty. "Violations of the Insurance law," said Mr. Kelsey, "are misdemeanors subject to criminal prosecution, and there Is nothing to prevent any of these gentle men from beginning such prosecution, if they think it warranted by the facts." NORTHWESTERN MUTUAL GAINS Re-Elects Old Officers and Makes Good Business Showing. MILWAUKEE. Wis., July 18. The an nual meeting of the Northwestern Mutual Life Insurance Company was held at the home office In this city today. Henry L Palmer, who has been president for the past 30 years, was re-elected, as were all the remaining officers. A. S. Hathaway was elected secretary In place of Charles Michaels Watson, deceased. The report of the board of trustees shows the present assets to be 1215,0000,000, an Increase of $13,000,000 in the last fiscal year. The amount of new business dur ing the year was tlll,000,000, of which 157, 679,262 was written In the past six months, as against $51,081, 638 during the same period last year. MUTUAL DROPS M'CURDY CASE Nature of Suits Against Old Man agement Kept Secret. NEW YORK. July 18. The Tribune to morrow will say: The Mutual Life In surance Company has decided to drop three suits begun against the former MrCurdy management and it is expected that counsel for the McCurdy's and Ray mond & Co. will accede to the Mutual Life's request. All the suits against the McCurdy management and it is expected February 19 by the service of a copy of the summons. In none of these suits has a copy of the complaint been served. The nature of the three suits therefore, is likely to remain unRnown Making Lists of Policy-Holders. ALBANY, N. Y., July 18. Interest in Insurance matters came to the front here last night for the first time since the adjournment of the Legislature, In the preparations for the copying, beginning today, of the lists of the policyholders of the New York state mutual insurance companies, which under the law passed last Winter must be available today in preparation for the annual elections of these companies next Fall. Two copies as required by the new law, of the lists of policyholders, were received yesterday by the State Insurance Department from the Mutual and the New York Life In surance Companies. One hundred and fifty copyists, representing accredited pol icyholders, began today the copying of the lists, and It Is figured that this work will take at least nine days. Superintendent Otto Kelsey, of the State Insurance Department, said last night that he did not understand why the rep resentatives of the international policy holders' committee seemed to fear some kind of obstruction to their copying of the lists. No one, he said, has thus far made any request for facilities for copy ing" the lists, except the company which is to copy them for the international com mittee. Even If other applications should be made now, he said, the representa tives of the international policyholders committee has the first access to the lists. POLISH MANIAC RUNS WILD DEAF MUTE KILLS TWO WOMEN, WOUNDS HIS KEEPER. Armed With Amputating Knife, He Stabs and Slashes Right and Left In Hospital. SCRANTON, Pa., July 18. Ignatz Krew seyp, a deaf and dumb Pole, ran amuck at the Hillside home this afternoon, and before he was overpowered had killed two women patients and mortally wounded one of the keepers. Krewseyp rushed Into the doctor's of fice during the momentary absence of the keeper and seized an amputating knife with a blade ten inches long. Keep er Davies ran after the maniac and was stabbed through the chest. Krewseyp then ran up stairs and stabbed and killed two women patients before the knife was knocked from his hand. GOURDAIN BEGINS EATING Lottery-Dealer Wires Wife That He Is Determined to Go to Prison. WASHINGTON. July 18. Louis A Gourdain, the Chicago and New Orleans lottery dealer, who is seeking, by means of a WTit of mandamus, to frustrate ths efforts of his attorneys to keep him out of the penitentiary at Joliet, 111., made an unsuccessful effort to day to file his petition in the Supreme Court of the Uni ted States. When he appeared at the of fice of the clerk of the court he was told by Deputy Clerk Maher that the petition could be acted upon only by the court In open session. He then announced his in tention to make an appeal to an individ ual Justice of the court, either in New York or Canton, O. Gourdain, the would-be convict, was the center of attraction here today. For the first time since leaving Joliet Monday, he partook of food today, having been re leased from his determination not to eat or drink until some official action had been taken in his case. Pathetic appeals by telegraph from his wife to return home reached him today, but Gourdain wired her that he is In good health and spirits and says he will do his utmost to carry out his purpose of getting behind prison bars. Gourdain says it Is his purpose to make restitution of the vast sums of money he was convicted of obtaining by fraudulent means. Heppner He serve Proclaimed. OYSTER BAY, July 18. (Special.) President Roosevelt today signed proc lamations creating the Heppner forest re serve In Oregon and the Binnacles forest 1 reserve in California. SEATTLE WILL BE SORRY, SAYS HILL Plans Retaliation for Defeat by Harriman. EVERETT TO BECOME TERMINUS Great Northern Steamships May Land There. SOME PLUMS FOR TACOMA Railroad Guardian of Puget Sound, City Expected to Gridiron Disput ed Tideland With Tracks to Serve Factories to Be Built. SEATTLE, Wash., July 18. (Special.) If Seattle Grants Harriman a fran chise on streets east of the Hill yards. President James J. Hill, 6f the Great Northern, will retaliate against the city. If Seattle does not grant Harriman such a franchise, the depot terminal grounds, purchased by the Harriman interests at a cost of several millions, will be valueless to the railroad and Harriman will be prevented from ever tunneling under the city to give him constant access to the water front In the north end. Hill's retalllation for his defeat hero will probably result in the diversion ot wheat shipments to Tacoma and Everett, The threat Is made that the terminus of the Great Northern steamship lines may be transferred to Everett, Hill has said In so many words that he will make It a sorry day for Seattle if Harriman gets permislson to utntse property lying east of the Hill yards. Ever since he came the first time to apply for a franchise. Hill has been tha railroad guardian of Seattle. At the out set he had but this single port and his interests had to be centered here, Seattle has followed his lead at all times. He has had replats of an entire section of the city,, regrades, street vacations, tun nel franchises and permits to use the streets for his road. He has never been turned down In a request. Hill advice has gone a long ways with Seattle in the past. Running Arter Strange Gods. Among Hill's friends it is known that he Is disappointed at the alacrity with, which the city turned to welcome the St. Paul and the Harriman extension. To him it looked like running after strange gods and it was even woree that Harri man should be one of those welcomed to a field hitherto strictly controlled by Hill. Now come telegraphic reports and Hill's own New York information to the effect that an alliance between the St. Paul and Harriman in the West Is very probable. It adds to the uneasiness of Hill. In Seattle Hill's plans had contem plated dotting the tide lands which Har riman proposes to cross with a number of small factories, warehouses and whole sale concerns. He had planned to grid idon this district with switching tracks to serve It, and two years hence this plan would have commenced to work out, for by that time it is estimated the tldai lands would have been filled. It was bad enough for Hill to see Har riman headed north, but to perceive the city prepared to discard the Hill pro gramme of improvement and permit Har riman to cross what Hill believed to be his own field of exploitation was worse. Not Merely to Embarrass. Had Hill sought merely to embarass Harriman he would have told the Coun cil committee Monday that he would agree to grant a railroad right of way up Fifth avenue south, attaching a few minor considerations. It was absolutely Impossible to open Fifth without the pur chase of extra property and without Im posing charges for filling. Yet Hill's suggestion to that effect would have been accepted by the council and the property owners. Harriman could not have accepted such a right of way and would have been shoved aside for an Indefinite wait. Hill could have complicated the situation with a few words so as to cause Harriman in estimable embarrassment. It Is known that all of Hill's local ad visers urged him to make some slight concessions, with an air of liberality, and to solidify himself with property inter ests and at the same lime embarrass Har riman. But Hill would not listen to his own men or to local advice. He brushed all this aside and demanded that no oth er line be allowed to enter the district east of his yards. He went before the Council committee and repeated this de mand. Plans Made for Retaliation. Hill did not say so publicly, but It Is known that he left behind a plan for vigorous retaliation if the city refuses this time to take his advice. He will start a fight that will hurt- H1U wants Seattle to remember what he has done and go to him for attentions. If the past will not accomplish this he proposes to make a grim future do it. When Hill first came here he only had the port at Seattle. Now he reaches tide water at Tacoma, and when the north bank road is completed he will have Port land to choose from. He can utilize prop erty at Everett, too. With four ports. Hill can punish Seattle if he wants to. and that is what he has said he will do. In so far as the wheat trade Is con (Concluded on Fags 2.)