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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Aug. 29, 1906)
" ""I'1 , - . , , . p . - , .. , . VOL. XIVI XO. 14,266. PORTLAND, OREGON, WEDNESDAY.. AUGUST 29, 1 1906. PRICE FIVE CENTS. ITS MONEY LENT OH BAD SECURITY Big Philadelphia Trust Company Fails. DEAD PRESIDENT WAS A FRAUD Bank Owes $10,000,000, In cluding Church Funds. . CAUSE, REAL ESTATE DEALS Backing Adolph in Profitless Ven tures, President Hippie Deceives Other Directors, Then Dies. Presbyterian Church Suffers. PHILADELPHIA, Aug. 28. The Real Estate Trust Company, organized in 1S85, the depository for nearly a million dollars of the funds of the Presbyterian Church and holding J3O0.00O of the money of the City of Philadelphia and J175.000 of state deposits, today closed Its doors. The fail ure was caused by heavy loans made by the late President Frank K. Hippie to Adolph Segal, a promoter, on insufficient securities. A desperate effort was made to ave the institution by the board of di rectors through appeal to the Clearlng House Association, but that body declined to subscribe a guarantee fund of J7,000,000 because of insufficient security. The liablliltes are placed at JIO.OOO.COO, with quick assets of S3.5O0.00O and doubtful collateral amounting, to J8,000,000. Wrecked Bank, Then Died. Hippie was always regarded as a con servative financier, but, following his sud den death last Friday, an investigation by the directors developed the fact that his loans to Segal had been made regard less of proper security and that he had made false statements to the directors of the bank's condition. Friends of the pres ident express the belief that Segal exer cised a hypnotic Influence over Hippie. Although the cause of Hippie's death was given by his physician and the Cor oner as cerebral hemorrhage, it Is inti mated that he may have committed sui cide. Hippie, in addition to being president of the Real Estate Trust Company since its foundation, in 1S95, was treasurer of the board of trustees of the General Assem bly of the Presbyterian Church in the United States, and of several other church funds, and was a director of the Frank lin National Bank. Recently Hippie's ac counts of the Presbyterian Church were examined by certified accountants and found to be correct, but it cannot be stat ed positively tonight whether all the se curities belonging to the General Assem bly are intact. Presbyterian Church Heavy Loser. Dr. W. H. Roberts, stated clerk of the' General Assembly of the Presbyterian Church, who is at Mount Pocono, said that In addition to the deposits of the General Assembly the Real Estate Trust Company also had about t25.000 of funds placed there by him as stated clerk. The Presbyterian Hospital of Philadelphia and the Presbyterian Board of Relief, he said, also had sums of money in the failed institution. Dr. Roberts was asked whether he could say whether the securi ties of the General Assembly, amounting to $963,896, In Hippie's custody, wre in tact. He replied: "1 have no reason to believe other wise, but cannot say positively." "Were the securities In such shape that they might have been, hypothe cated or transferred?" "I do not know positively as to that, but I do not think that they were." Loans to Segal, the Promoter. For the loans to Adolf Segal, Hippie accepted as collateral securities of the Majestic Hotel, a big new apartment house operated by Segal, the Swedish Steel Company of Lancaster, Pa., and the Pennsylvania Sugar Refining Com pany of this city. The, steel company and the sugar refining concern have never been placed in operation. Segal says the 'collateral he gave is good and that be will meet all. his obliga tions. There are others to whom Hippie loaned money on insufficient securities, but their names have not been made public and the sums are not believed to be large. How far Hippie benefited by the loans made or whether he was merely the tool of others is yet to be deter mined. All the directors are remain ing silent on that point and also on the question of whether there will be any criminal prosecutions. Hippie's Method of Fraud. In order to hide the true cosditlon of the company and save himself. Hippie resorted to the falsification of his reports, which were accepted as true by the directors. He used what the receiver termed a "double system" iif making reports. When the State Bank Examiner called. Hippie pre sented to him good securities to off set the loans made and, when the rresident made his reports to the directors, he would show them a bundle of other securities and other papers and along with these he would exhibit the certificate of the Bank Examiner, which showed that the ac counts theExaminer bad investigated were correct. The directors, supposing the securities, shown them were the same, approved the reports. Among the directors are: Dr. S. Weir Mitchell, the eminent author; John H. Converse of the Bald win Locomotive Works and one of the most prominent laymen in the Presby terian Church in the United' States; John F. Betz, the millionaire brewer; William A. Patton, assistant to Presi dent Cassatt of the Pennsylvania Rail road; Ex-Superior Court Judge ,W. W. Porttr; R. Dale Benson, presi dent of the Pennsylvania. Fire Insur ance Company; Joseph D. Junkin, an attorney; Edward P. Borden. Samuel F. Houston, who is also vice-president of the company; Ex-State Senator J. Bayard Henry and Frank C. Roberts. Death Leads to Discovery. As, soon as the directors heard of the sudden death of Hippie they began an investigation of his affairs, and were shocked when they learned the true con dition of the company. This was after the close of business on Friday. A meet ing of the board was hurriedly called and it was decided to Instruct the offi cers of the bank that all deposits re ceived after the opening of business Sat urday morning should be set aside and deposited with the Franklin National Bank, in the names of the individuals presenting the money. This was done to absolve the directors from criminal pro ceedings for receiving money after they knew the trust company was insolvent. Monday more than $160,000 was deposit ed by patrons of -the bank, which was practically offset by withdrawals by per sons who had heard rumors of the com pany's condition. Money deposited since Saturday will, however not be returned to the depositors, but will lie in the Franklin National Bank until the courts have decided whether it should be paid back. Vain Appeal to Oilier Banks. While the depositors were supposedly placing their money with the Real Estate Trust Company, the directors were mak ing strenuous efforts to tide the institu tion over the difficulty. All day yester day they worked, but it became appar ent shortly after noon today that the crash was Inevitable. Application papers for a temporary receiver were prepared, and left at the offices of the trust com pany, after which the directors went to the meeting of the Clearing-House Asso ciation to make a last appeal for help. The newspapers were aware of the trend of events, and had men stationed at the bank building ready to flash the closing of the bank, if it occurred. Thej-e were probably 30 bank presidents at the Clearing-House to meet the direc tors of the trust company. The latter stated that they needed $7,000,000, but the best the banks could do was to guarantee $3,500,000. This was not enough, and, as all other means of raising money had failed, Vice-President Houston tele phoned to the bank to suspend business and send the receivership papers to court. In an Incredibly short time the story was on the street, and created great consternation. Hundreds of persons gathered about the building, clamoring for information, and the crowd grew so great that a detail of police was sent for to clear the street. There was no dis order, ' Receiver's Plan to Save Assets. The application for the receiver says the company has a paid-up capital of $1,500,000, an apparent surplus of an equal amount of deposits of about $10,000,000. The assets consist of real estate in Phil adelphia, loans on collateral on demand and on time and other securities. Hippie, the application says, "by false reports to the directors of the loans made by him, brought about the condition of the company, which was first discovered by the officers of the bank subsequent to the death of the president." The court then appointed Mr. Earle receiver, and he entered security to the amount of $1,000, 000. Hopes to Reopen Bank. After his appointment, Mr. Earle con ferred with the directors and officers of the company, and subsequently made a statement regarding its affairs. He said his knowledge of its condition led him to the conclusion that the receivership should not be continued any length of time. He would suggest a plan by which the depositors could re-ojjen the institu tion and preserve its large and valuable business. He asks depositors not to be discouraged. Thinks Church Funds Safe. John H. Converse was greatly shocked by the failure. He wa9 an intimate friend of Hippie and was associated with him, not only in business, but in the af fairs of the Presbyterian Church. Mr. Converse, who is chairman of the trus tees of the General Assembly of the Pres byterian Church, was asked for a definite statement regarding the fund3 and se curities of the church, but said he could not give one at this time. He did say this: The best I can say is that I believe the securities of the truateea are safe. The auditor employed by the company went over the trust funds and other securities of the company, which amount to more than $26, 000,000, and found them intact. The papers of the trustees of the church axe among those accounts. I would like It - understood that the funds of the truateea are all kept Inveated as far as possible and that very little cash is kept on hand. Whatever amount of cash was In the bank was small and will not be & serious loss, If a loss at all. Segal Securities "Watered. John H. Mlchener, president of the Clearing House Association, In an inter view tonight said that the failure of the association to subscribe the $7,000,000 guar anteed fund requested by the Real Estate Trust Company was due to insufficient security. The Trust Company, he said, offered $2,900,000 in gtitedged securities, a two-thirds interest in the Trust Com pany's building, valued at $2,000,000, and $6,300,000 securities from Adolph Segal, valued by the directors of the Trust Com pany at $3,000,000. The Clearing House Association did not consider the legal securities worth more than $1,000,000, and declined to subscribe more than a total of $4,000,000 unless the remaining securi ties were more substantial. Samuel F. Houston, vice-president of the company, said tonight that no other banking institution in this or any other city would be In the least affected by the failure. Giltedge securities were given for whatever money was borrowed from other banks. Church Has Million Tied Up. The board of publication of the Presby terian Church, which had between $18,000 and $30,000 on deposit with the Real Estate Trust Company, made an effort to withdraw the money, but its representa- ( Concluded on Pas .) HOW IT HATEQNEANOTHER Sample Epithets in New York Campaign. HEARSTMUD-GHNS TURN LOOSE Sprinkles Choice Names Over His Opponents. ROBBER AMONG MILDEST Despite Heartfelt Haired, Murphy Will Support Editor, Who Will Accept His Support With Disguised Resignation. NEW YORK! Aug. 28. There tias not been a real, old-fashioned mudslinglng campaign in New York State since Cleveland first ran for President in 1SS4. but we are going to have it this year. Although the primaries will not be held In New York City and Buffalo until Sep tember 18. while the convention is a week later, Jerome and Hearst have already "got busy," while Charles F. Murphy is hiding in a cyclone cellar, wondering if he has a friend in the world. Here are a few political bon mots which have already made their appearance: Mr. Jerome describes Mr. Murphy as "a political panhandler." Mr. Jerome describes Mr. Hearst as "intellectually sterile, socially vulgar and morally obtuse." Hearst's Roast on McClellan. Now It is Mr. Hearst's turn. In the New York Evening Journal he editorially assails his enemies in these words: "The Mayor's office is empty. The 'Mayor' is in Europe, enjoying himself, and drawing the salary of an office that he stole front the people of this city. "He sold himself to the trusts. He is their man. He took shamefully the office that they and their agents stole for him. He is the gas man. and he occupies the office of Mayor of America's greatest city.- . "Who is the principal representative of this 'wretched little office-thief? .He is a toady and hanger-on, named O'Brien. This man was put in charge of the Fire Department by the IMayor,' a depart ment that should be. managed sacredly in the interests of. the lives and prop erty of the people. What does this young gentleman do? He plans at once a scheme to obtain $2,000,000 in graft from his department. And he plans this scheme at the rack track of Saratoga, where he spends his time and the money that the people pay him. "The 'Mayor who stole his office is spending his days and his salary in Eu rope. And the Fire Commissioner whom he appointed is spending ' his time and his salary on the race track and that is a sample of New York City government. "Who Is the man of strength and self control that towers above McClellan and does the real work of the trusts in man aging politics in New York City? "He is a man named Timothy D., Sulli van. This man, the protector and asso ciate of criminals, with one member of his family the chief collector of corpora tion blackmail, and others engaged In exploiting dives on his behalf, is a pow erful trust factor in the government of New York City today. Is not that a dis grace to the city, the country, and all of the citizens who shall fail to protest and to vote against it? Compliments to Jerome. On the subject of Jerome, Hearst says : "You have seen all Summer the Dis trict Attorney's office empty. "You have known that the nervous, P THE RUSSIAN CALL FOR HELP r 1 1 ' ,Q0J-y - ' : I - - . . . .......... ....... . . . . . . 1 neurotic, feeble creature who deceived the people into voting for' him "under false promises has been away con stantly, "resting." "This man, elected on promises that he never.meant to keep, and elected with a campaign fund supplied by the very men whom he promised to prose cute, is In charge of the prosecuting department of the city of New York. "This man, with the shaking hands, the uncertain. Inflamed mind, the al most lunatic conceit and arrogance, what part does he play in the govern ing of the country's greatest city? "He is the man who has made it safe for the big criminal to rob the millions of small people. "He is the man who has refused to Indict any criminal with money in his pocket. He is the man who has pro tected the ice trust, who has protected the insurance thieves, who has not only laughed at the solemn promises that ho made, b".t who has the impu dence to ask of the people now another office. "Who are the men back of the pre posterous pretensions of Jerome? They are, primarily, McClellan, the office thief, and Sullivan, the king grafter, and the trusts that stand behind them, pay them, own them, and direct them." And it is a mighty hot Summer in New York, too. He Wants None of Murphy. Kearst has publicly refused to have anything to do with Murphy. "I have no Interest whatever In the factional disputes of Tammany Hall," he states. "These declarations for or against me are nothing more than at tempts to influence votes in the pri maries. I am absolutely and unalter ably opposed to the Murphys, the Mc Carrens, and also to the McClellans and the kind of politics that they all represent." All the same, it is a safe proposition that the Hearst men who are enrolled as Democrats will cast their ballots at the primaries for the Murphy candi dates, in an effort to head off Jerome. One politician who Is convinced that the Hearst men combining- with Mur phy will control the primaries, figures it out in black and white as follows: But Will Combine With Tammany. "The vote for Mayor in Manhattan and The Bronx last year was: Mc Clellan. 140,264;' Hearst. 126,157. and Ivins, 64,280. In 1903, when party lines were fairly well drawn. McClel-n had 188.681 and Low 132,178 in the same territory. Thus Ivins lost 67,898 men who voted for Low, and McClellan got at least 35.000 of these, for hundreds of good Republicans flopped over to him as the only way to" beat Hearst. Had McClellan held his 188,681 of 1903, his total would have been 223,681, but he only had 140,264. This shows that S3. 681 Democrats who were for Mc Clellan in 1903 voted for - Hearst in 1905, and practically every one of them Is enrolled as a. Democrat today. "It will be seen that Murphy need only contribute the small number of 28,292 votes to place the combination in a majority. "Of course, Hearst says he doesn't want to have anything to do with Murphy, but the reason for that is that he fears it would injure him with the Independent voters. But just the same his friends will Join with Murphy in the primaries." , Effective Campaign Picture. Campaign literature is already in course of preparation. The Hearst men intend to scatter broadcast 1,003,000 copies of a postal ' card ornamented with the .photograph of William Trav ers Jerome asleep in the District At torney's office. They expect it will be one of hte most striking features of the campaign: CALL FOR MINING CONGRESS Ninth Annual Session to Be Held October 16-19 at Denver. DENVER, Aug. 28. A call for the ninth annual session of the American Mining Congress, to be held in Denver October 16 to 19 next, was issued to day by J. H. Richards, president, and James F. Galbreath, Jr., secretary. The President of the United States, the chief executives of foreign nations and the Governors of state ana territories are Invited to appoint . 10 delegates each, and Mayors of cities and towns. Boards of County Commissioners, Boards of Trade, Chambers of Com merce, mining bureaus and exchanges, miners' organizations and scientific so cieties two delegates each. RULES OFFICE Ifl OWN SWEET Will Postmistress at Gold Beach in Trouble. OPENS AND HOARDS LETTERS Fails to Forward Registered Remittances of Currency. FAVORED FEW GET MAIL Holds Up Complaints and Defeats Inquiry for Months Resents In trusion of Government Postal Inspectors. No tale of fiction cou'td possibly pres ent more mystifying features than sur rounds the story that comes from the little hamlet of Gold Beach, countyseat of Curry county. In Southern Oregon, wherein Miss Lizzie Caughell, the young and pretty postmistress, sole manipulator of the telephone exchange, and about everything else that is in teresting in that neck of the woods, is involved in numerous violations of the postal laws, and Is liable to arrest at any moment for her misdoings. It is alleged that Miss Caughell opened and hoardkd letters that reached her hands, and that she failed to forward registered re mittances . of currency, later de livering forged registery receipts to the senders. It is said that letters bearing the heading of a Seat tle firm, and addressed to many per sons &t Gold Beach, were allowed to accumulate in the office. She is said to h'ave violated about every regula tion intended for the administration of postoffices such as she rules over. Only a favored few got their mail. Miss Caughell seems to possess the In stincts of a "wood rat, as almost every Jetter that came within her reach she held on to. Miss Caughell is a sort of female Pooh-Bah In the little village, and as mistress of the telephone, she has for the past 36 hours successfully re sisted every effort on the part of news gatherers to obtain any information concerning her alleged misdeeds; and as keeper of the postal affairs, she has likewise been in a position to bead off inquiry through that source, as she has no hesitancy in opening any letter that Intuition tells her has 'any per sonal reference. Numerous complaints having reached the postoffice authorities here having for their basis the non-receipt by dif ferent persons of letters containing money, PostofTice Inspectors Riches and Camp were dispatched to the scene of her alleged transgressions, and their report to Assistant United States Dis trict Attorney James Cole, who is handling the case for the Government, forms one of the strangest chapters in the criminal history of the Postoffice Department. Investigation Is Ordered. Two years ago, then but 20 years of age. Miss Caughell was appointed to her present position, and almost from the time she assumed the duties of the Federal office, there has been more ,or less complaint relative to the manner in which - she conducted its affairs. On account of the prominence of her family, however, a great many of her alleged delinquencies have been overlooked.. Recently, however, mat ters reached such a stage that they could not be hushed up any longer, and the two. postoffice inspectors were sent there to Investigate, on a charge that she had opened letters addressed to J. N. True, of that place. Upon being confronted with the ac- cusation, Miss Caughell innocently in formed the Government officers that Mr. True had authorized her to open his mail. Not to be daunted by any such efforts tollay suspicion, the in spectors brought Mr. True face to face with her, and unon his flat denial that he had vested her with any such authority, she nonchalantly replied, "Well, I must have opened them be cause I wanted to," which was the measure of the Information that could be obtained from her in that respect. An audacious feature of the situation was developed when It was ascertained, upon inquiry, that when True complained to the postoffice authorities about her, she is known to have opened the answer that came to him bearing upon the sub ject of her own criminality, and in this way kept posted as to what was going on. Some time ago Mrs. Martha McVey, of Gold Beach, deposited a letter in the postoffice there addressed to Mrs. Mary A. McVey, care of J. P. Hart, 2S00 Cali fornia street, San Francisco, containing two $20 bills. This letter was properly registered, and in due course of time, the sender not having received the return card, became anxious about the matter and made in quiry of the postmistress. The latter ap pears to be a past master in the art of inventing plausible excuses regarding the nondelivery of mall matter, and promptly told Mrs. McVey that the earthquake probably had something to do with the delay. This seems to have had a tem porary soothing effect upon any appre hensions that might have been entertained by Mrs. McVey, but, time continuing to run without any response to her inquiries regarding the registered letter, she again sought the young postmistress for an ex planation. ' Forges Registry Receipt. This time Miss Coughell appears to have been prepared for just such an emergency, as she smilingly handed Mrs. McVey a card that purported to have been the return of the registered letter, and which bore the signature of J. P. Hart. It has since transpired that Hart's signature was forged, and subsequent in vestigations indicated that this particu lar letter, along with numerous others that had been registered by her, was till in the postoffice. with their contents intact. The inspectors also discovered that Miss Coughell has paid out thousands of dol lars on money orders, the letters of ad vice for which have never been opened, and great stacks of which are still piled up in the office awaiting attention. Nu merous letters from the Brown-Osborne Lumber Company, of 327-8 Pacific block, Seattle, addressed to various well-known persons in Gold Beach, were also found to have accumulated in the postoffice. In fact. It eventually developed into a sort of dispensation of Providence for anybody at Gold Beach to hear from friends through the United States malls. Although large sums of money are in volved by the young woman's strange ac tions, it does not appear that she has profited to the extent of a dollar by the operation, and, outside of certain curiosity-seeking episodes connected with the matter, wherein she seemed to have a penchant for opening letters, for no other purpose than finding out what was going on in the community, her so-called crimes are of striking insignificance unless some feature should be developed that does not now appear upon the surface. ' When the Postoffice Inspectors first put in an appearance, she resented their in trusion upon her domain with a spirit that betokened deep offense at their as sumed rudeness, ordering them from the (Concluded on Page 3.1 CONTENTS TODAY'S PAPER , The Weather. YESTERDAY'S Maximum temperature, S3 deg. ; minimum. 59. TODAY'S Fair. Northwest winds. N Great Bank Failure. Real Estate Trust Company of Philadelphia fails, ahort $7,000,000. Page 1. President lent money on bad security to hypnotic promoter, then committed sui cide. Page 1. Funds of Presbyterian Church to amount of $1,000,000 In bank. Page 1. Meteoric career of Segal, to ihom money was lent. Page 4. Foreign. Cuban rebels stow to take advantage of am nesty and more troops go out. Page 5. Stolypin refuses to meet terrorism with terrorism In Russia. Page 5. National. Interstate Commission gives first "hearing un der new rate law. Page 3. Spelling reform to be adopted In all Govern ment departments. Page 3. - Minister Barrett to negotiate new treaty with Colombia. ,Page 4. Politics. s. Hearct and Jerome hurl floods of abuse at one another. Pag 1. Political attitude explained by Hearst and Jerome. Page 2. Tillman's enemy wins Governorship in South Carolina. Page 3. Programme for Bryan reception completed. Page 4. Domestic. Walter Wellman abandons trip to North Pole till next year. Page 1. Movement at Press Club convention to ex tinguish stage reporter. Page 5. Wisconsin labor unions ordered to pay dam ages for. boycotting. Page 4. Police raid disreputable hotels in Chicago and owners prove to be high in society. Page 5. Sport. All disputes ended In Gans-Neison match. Page 5. Clothier wins tennis match wlfis, Behr. Page 7. Portland wins opening game from San Fran cisco, 4 to 1. Page 7. Duck season opens next Saturday. Page 7. Close tennis matches in Irvlngton tourna ment. Page 7. Pacific Coast. Farley starts more strikebreakers to San Francisco. Page 5. Champion Jim Jeffries and party start on hunting trip to the McKenzie River coun try. Page 6. James T. Ploane, pioneer Spokane merchant, murdered by 17-year-old son. Page . San Francisco must act quickly if it accepts plans for beautiful city. Page 3. Striking carmen at San Francisco will not return to work on vague promises. Page . Locomotives start many brush fires between Portland and Tacoma. Page 6. Commercial and Marine. Mixed lot of Oregon fruits shipped, to Si beria. Page 15. English "hop acreage. Page 15. Boston wool market improves. Page 15. Chicago wheat weak most ot day. Page 15. Reaction in stock market. Page 15. Captain Merriam of steamer Kilburn says Coos Bay is booming. Page 14. Passenger on steamer Roanoke dies on way up the river. Page 14. , Portland and Vicinity. Postmistress at Gold Beach, Or., accused of violations of postal law in methods of conducting office. Page 1." Local Democrats cast about or candidate for Mayor. Page .10. County Clerk receives bids for feeding pris oners. Page 14. Detectives accept dismissal and will make no fight, Paye 10. Auditor Devlin makes demand on franchise holders for statement of business trans acted. Page 11. . Dr. C. H. Raffety, of Water Board, says Bull Run - pipe tine is threatened witli electrolysis. Page 0. Oregon will send 200 delegates to Boise Irri gation Congress. Page 10. Chamber of Commerce Inquires into causes of freight congestion. Page 10. Attorneys called to testify against their clients in land-fraud trial. Page U. WELLMAN DEFERS E TO POLE Series of Delays in Building Airship. ALL WILL BE READY Ifl SPRING Blunders of Somebody Waste Whole Summer. MANY OBSTACLES ARE MET Expedition Now Installed on Danes Island and Will Work All Win ter in Perfecting Airship. Five Will Make Trip. CHICAGO. Aug. 28. (Special.) Tha American flag Is not to be pulled to the peak of the North Pole this year by the Wellman-Chlcago Record-Herald polar expedition. Obstacles feared and not wholly unforeseen and the haste with which Winter came to the Dane's Island party of Arctic explorers compelled the final decision of Mr.' "Wellman to post pone the final dash to the pole until the Summer of 1907. The superhuman energy with which the beginnings of the expedition were laid in substantial foundations, the persever ance which conquered delay after delay and the able generalship which has made everything practically ready for the last stage of the northward journey betokens success in 1907. Not until absolute physical inability to rig up the huge airship which is to fly northward with the explorers had demon strated that the Arctic mid-Winter was to preclude the possibility of the voyage this year did Mr. Wellman officially give up the attempt. The Fritjhof sailed into the Dane Strait at Dane's Island July 9 and the airship and cargo were unloaded. Major Hereey's detachment had construct ed the camp and all was in readiness, so Mr. Wellman believed, for the final stage of the Journey. Where Somebody Blundered. It was necessary to construct a balloon house in which to house the airship dur ing the time that the mechanics were assembling the parts. Orders had been given that the house was to be construct ed before leaving Norway, taken down and all ready to be set un again im mediately upon landing. Here was where the first -reat delay nunc in. Instead of having a finished house on board, the ex pedition found itself with the rough tim bers, and. instead of getting this im portant feature of the headquarters in shape in a fortnight, as had been an ticipated, the house was not completed until last week. Mr. Wellman was in Paris keeping a close watch on. the construction of the airship while his subchiefs were looking after the balloon-house and other fea tures of the supplies. In the midst of the work on the airship the mechanics struck and for a time it seemed that all hope of making the flight in 1906 would have to be abandoned. .The strike was finally settled, but the important phase of getting the balloon-house into shape was overlooked. Misfit Farts of Motors. Mr. Wellman had expected to keep In constant communication with the Record Herald by wireless telegraph and took with him a thoroughly equipped appa ratus. Three wireless messages were re ceived from Dane's Island at the Ham mcrfest Station In Norway, dated July 21, 22 and 23. Lack of power at Hammer fest is given as the reason for failure of this communication. Difficulty in assembling the parts of motors gave additional occasion for de lay. Necessary pieces of apparatus had been misfitted or were missing, accord ing to reports mude by Mr. Wellman. In the party, however, are men who can make almost anything in the mechanical line that is necessary, if given proper time. They went td work to surmount this trouble and succeeded, but at a cost of . many preciouB days. The balloon-house la now completed, there is installed a perfect a machine shop as could be wanted or used and the headquarters and provisions for the force are ample for the Winter. All that re mains now is for the final touches to be placed upon the big airship, for -which the expert machinists will now have six months. Five to Make Dash Next Year. Fifty men have been in the Wellman-Record-Herald camp this Summer,- but five only will make the final dash.- Be sides Mr. Wellman there are Major Henry B. Hersey, representing the United States Government; Gaston Hervieu, aeronaut-ln-chief : Maxwell J. Smith, wireless telegraph expert, and Paul Colardeau, expert mechanic in charge of motors. The balloon part of the airship Is 161 feet in length and greatest diameter 52i feet. Its surface is 21.0P8 square feet, capable of containing 224.225 cubic feet of gas, with a lifting power of 16.000 pounds. The car to be attached to the balloon is built entirely of steel tubing and is 32 1-3 feet long. It contains the engine-room and cabin for the crew. Below this struc ture is the basket which carries the gaso line, which is also the ballast for the air ship. There are three motors, one of To. another of 25 and the third of five-horse power. The airship is built wittt the idea of making an average of 12 miles per hour In a quiet atmosphere and of l'J miles per hour with all three motors working. The steering apparatus is simply managed from the cabin of the vessel.