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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Dec. 6, 1906)
VOL. XLVI. XO. 14,351. PORTLAND, OREGON, THURSDAY, DECEMBER 6, 1006. PRICE FIVE CENTS. REGULATION BY STATE IS DEMANDED Grim Determination Marks Proceedings At Eugene. SHIPPERS TRIFLE NO LONGER Legislature Called Upon to Compel Railroads to Grant Needed Relief. . SPEAKERS FLAY MONOPOLY Reciprocal Demurrage Law Will Be Insisted On. MAXIMUM RATE BILL, TOO Elective Commission Plan Favored. W. 51. Klllingsworth Bitterly As sails Southern Pacific's Land Policy, I'rging Legislation. BY E. VT. WRIGHT. EUGENE. Or.. Dec. 5. (Staff Corre vpondence.) A number of years agt, during a. Legislative (session, I met in the lobby of the old Cheme keta. Hotel, at' Salem, -a. wall known Democratic statesman who in response to my query as to the rea sons for hia presence at Salem, said: "I am engaged In the creation of a slnti nient, not the kind that ye rade about In the poetry, but the kind that raises h 1 when ye get it agoin." The "creation of a sentiment" has been ' about the only task to occupy the atten tion of the Oregon shippers for several weeks, and they have certainly "got It agoln" to such an extent that at the meeting here today there was not a dis senting voice to the strongest anti-railroad talk that was made. It is a senti ment so rabidly antagonistic to the rail road companies that among some- of the more conservative delegates there are mild fears expressed that the remedies demanded will be so severe as to defeat the end sought. Most of the arguments put forth -were unanswerable, and had they been other wise the delegates were in no frame of mind to listen to more than one side of the story. They claim that they have teen listening to the other side for the last, five years and that their ears are tired. llailroad Men Out of Place. The railroad Interests were represented by W. E. Coman and H. E. Lounsbury, of the traffic department of the Harrl man system in Oregon. Both young men are well known and deservedly popular from one end of the Willamette Valley to the other, butT" peculiar conditions, or rather the culmination of peculiar con ditions, today were such that the pro verbial cat in the strange garret felt perfectly at home in comparison with these two innocent but helpless repre sentatives of a system which, from one speaker or another, received about all the opprobrious epithets that could be used without violating the laws govern ing the kind of language that can be transmitted lawfully by mail. Railroad legislation, drastic to the limit, seems to be the penalty that -will be inflicted on the Harrlman system for its failure to eupply cars to the Oregon shippers. The meeting today brought to gether, among other delegates, a number of men who have been practically ruined by the car shortage and many others who are hovering on the brink of bankruptcy.1 Meeting Well Attended. The meeting was well attended. Unlike the urual run of gatherings of this na ture, very few of the shippers, especially v lumbermen, were too busy to attend. Ia fact, most of them for several weeks have had nothing to do except to lie around in Idleness and curse the railroad com panies. Thls-sentlment of resentment, which was so pronounced, was at the beginning of the meeting reflected in the introduc tory remarks of Chairman L. L. Whltfon, president of the Eugene Commercial Club, when he stated that this meeting was not for the purpose of a heart-to-heart talk with' the railroad men. He declared that it was too late for any more con ferences and that the time had now come when the shippers must strike direct at the "head of the great octopus' by means of legislation which would pro duce results which time had proved It impossible to obtain through any efforts that might be put forth with local rail road men. It was a noticeable feature of the set speeches made, that m attempt was made to place the blame on local officials, those officials in nearly every case being men tioned in complimentary terms. A definite understanding as to just what kind of legislation would be sought at Salem was not reached. Reciprocal de murrage and maximum rate bills are al most certain to be demanded, and there Is considerable sentiment favoring a rail road commission bill. There is a differ ence of opinion, -however, as to the kind of commission .to be asked, and the ma jority of those favoring a commission are not in favor of allowing the appointing power to rest with the Governor, their contention being that the commission should not be in politics. Want Elective Commission. The extent to which this feeling per vades the shippers was shown this after noon during the reading of a letter of regret from Joe Teal, who was not pres ent. Many passages of his letter where he dwelt qnthe Iniquities of the railroads and the necessity for relief were greeted with great applause! but not even a mur mur of approval was heard when he In sisted that the railroad commission should be appointed and not elected by the people, or chosen by the Legisla ture. The interest which the coming Legisla ture will have in the matter was shown by the presence at the meeting .today of the following: members: Senators Kay, of Marion: Miller, of Linn, Marion and Lane; Booth of" Douglas, Josephine and Lane: Mulit, of Jackson: Johnson, of Benton; Loughery, of Polk and Hodson, of Multnomah, and Representatives Rodgers, of Marion; Brown and Upmeyer, of Linn; Eaton and Edwards, of Lane; Jackson, of Douglas, and Jones, of Lin coln. Attacks Land Monopoly. The suggestion of W. M. Killlngsworth that something be done to break the strangle hold of the Southern Pacific on such a large amount of the public domain was received with wild applause. This same subject was reverted to later by Representative-elect Mulit, of Ashland, who asserted that one-half the land of Jackson County was owned by the South ern Pacific. He most emphatically stated that at the coming session of the Legis lature he 'would Introduce a bill provid ing that action couM be commenced against the Southern Pacific for Its re fusal to sell these lands at the price fixed by the Government. Falling in this, he said he would en deavor to secure the passage of a resolu tion calling on Congress to pass a law forcing the road to sell the land. " It will be seen from this that car short age legislation Is not the only trouble that will confront the Southern Pacific at the next meeting of the Legislature, and if the sentiment of the people remains at its present white heat until the Legislature meets, it will be comparatively easy to pass almost any kind of an antf-rallroad bill that may come up. The attendance at the shippers' meeting was so much larger than was expected that the original ..Intention of holding it at the Commercial Club rooms was, . abandoned and the large courtroom at the Courthouse was se cured. Even this was filled to over flowing, every seat being occupied at both afternoon and evening sessions. Promptly at 3 o'clock the meeting was called to order by Chairman Whltson, who, in a few words, stated its object. H. L Thompson was chosen secretary. The chairman then appointed as a com mittee on resolutions G. W. Grlflin, George M. Cornwall, T. K. Campbell, D. E. Yoran and George Kelly. AV. M. Kilingsworlh's Speech. W. M. Klllingsworth, of Portland, was the first regular speaker on the programme. In substance, he said: I am a friend of railroads; if for no other reason, because railroads are an absolute and indispensable necessity for state build ing. The building of a state depends on the wishes and exerted combined efforts of all her people. Men bend their backs only when rewarded with Just profits. If the products of farms, mines or forests cannot be worked or developed with profit. It never will be done. Hence as stated, railroads are indis pensable in distributing: profitably and cheaply the industrial energies of man. Now, as we have many new-comers to Oregon who should know all about the his tory of railroad building in the state from the bottom to the top; also that the old timer may refreshen his memory to the fact that the people of Oregon have large moneyed interests in railroads, let us then briefly turn backward 40 pases In the his tory of our state, and begin at the begin ning. On July afl, 1866. the' United States of America, in Congress assembled, granted to the California & Oregon Kailway Com pany, its successors or assigns, a charter for the purpose of building a railroad and tele graph lines within the titate of Oregon from Portland, Or., to the south boundary and dividing line between the States of Ore gon and California. They also gave a land grant of every alternate section of public lands, designated by odd numbers, to the amount of 20 alternate sections a mile (10 on each side of the railroad line), also the right-of-way through public lands. By this grant the railroad received 12,800 acres per milo. the entire distance from Portland to the California line, a distance of 362 miles, hence the enormous land gift for the con struction of this road was 6,248,000 acres, estimated at a low value of $5 an acre, gives a grand total of $26,240,000. -' Still Another Grant. Still further, from the public domain have valuablor properties been given for railroad building in our state. From Portland to Htllsboro, a distance of 21 miles, the build ers received 12.800 acres per mile, or 268, 000 acres. Fmm Hillsboro to McMinnvlllo, a distance of 20 miles, the Government con tributed B79.OO0 acres. Patents were issued for these last two roads for 640,040 acres, which, at a low class value of $5, would make another grand total of 13,200,000 for only 50 miles of road. - Cnmhlnrng the acreage donated for rail road building within the State of Oregon, we have the enormous total of 5.888,000 acres. Placing this at the very low esti mate of $." an ncre. it makes tho sublime grand total of $29,440,000 for only 412 miles c-f railroad built and constructed by the three roads named in this state. But with all this princely gift for railroad building, what have tho citizens of Oregon today? Nothing In keeping with their investments. This large sum contributed. If it had been directed In its proper channels, would have furnished a network of roads to supply the needed wants of all the citizens of Oregon. That we may more fully. understand the full meaning of this assertion, this sum, repre senting $28,440,000, would give, for the con struction of each mile of, road, (71,455. While it Is true the railroads carried out part of their contracts by building the roads, as mentioned, we bad a reasonable right to suppose that the company would furnish adequate accommodations to the people to Induce them to settle on their own and other lands In Oregon. Forty Years of Waiting. On the contrary, they have not done so. But have seemingly placed every obstacle In the way of securing needed relief. Forty years we have waited. most patiently wait ed. The railroad corporations have monopo lised the outlets of our rich valleys and pro ductive lands. The districts of Tillamook, Coos Bay and Southern Oregon, in fact all T (Concluded on Pave R.. CAL1F0RFJ1A IS IN REBELLIOUS MOOD Resents Roosevelt's Words on Japan ANGER FANNED INTO FLAME Will Increase School Restric tions on Orientals. NEWSPAPERS VENT WRATH Delegation In Congress Will Demand Japanese Exclusion Attorneys Arrange Basis for ' Test Suits. ' Opinions of Leaders. SAN FRANCISCO. Dec. 5. (Special.) Popular sentiment In California, which has been smouldering quietly during the discus'slon of the Japanese question, lias been fanned into flame by Jhe heated declaration in the Presldenfs message. Resentment Is general. The impression prevails in both high and low places that Mr. Roosevelt has done the state and the entire Pacific Coast a grave Injustice. His 'flat assertion that the Japanese have been driven from the common schools; his inference of a low civilization; the refer ence to the discrimination as a "wicked absurdity," and finally his suggestion of the use of military force have made of a question which has heretofore excited but little Interest a burning topic. The proposal to grant citizenship to the Jap anese is roundly denounced by the press of the state. State In Passive Rebellion. California at the moment is in a state of passive rebellion. No action will be taken until the question has been threshed out in all its legal phases. Pro fessor Louis Hengstler, head, of the de partment of International and constitu tional law at the University of California, declared today that Mr. Roosevelt in his contention did "not liave a leg to stand on." Consul-General Miller, of Yokohama, who is in California on a visit, met this morning with the school board and re ceived full statistics on the, subject. United States District Attorney Robert T. Devlin, acting on instructions from Attorney-General Moody, at the request of Sec retary of State Root, conferred at length this afternoon with City Attorney Wil liam Burke In an endeavor to arrive at an agreement on the law Involved, with a view to a test suit in the state or Federal courts. Will Stiffen School Law. Governor-elect Gillett refused to discuss the Issue, but members of the Legislature which will meet in January are almost a unit in their assertion that the state law providing for separate schools for Japanese will be strengthened Instead of relaxed, and the California delegation In Congress will be instructed to redouble its efforts to secure the passage of a Jap anese exclusion bill. " Calls Koosevelt Insincere. Following are extracts from the state press: " San Francisco Chronicle This is an im plied .threat to use the military forces to put Japanese children into our schools, when he well knows that tie has no authority to do anything of the kind and that any such attempt could only lead to his own impeach ment. That expression will strike the coun try as an exhibition of impotent rage which it is very mortifying to see in a formal message of the President. But the worst of all Is the President's evident, insincerity. When referring to Hawaii, he says: Hawaii is now making an effort to se cure Immigration fit in the end to assume the duties and burdens of full American cit izenship." ' That language and the context show that the President recognizes that the immigra tion which Hawaii has been receiving is not i W at T J 7 A 0'"Vl Gar. A. B. Cummins, of Iowa, Lead er in Movement for Direct Elec tion of Senators. so fit. That immigration, however, has re cently been almost exclusively Japanese. v Subject for Khetoric. Call There is a good deal of excited rhetoric In the message, based on misinfor mation. We refuse to accept a rebuke that springs from misapprehension, and, as for these "mutterings" of which the President amusingly speaks, they take their rise In a sense thnt the American standard of living Is impossible In competition with the Jap anese. 'We commend that to the President as a subject worthy of hia eloquence. Sacramento Union The President has dealt with this matter impetuously: he has argued from wrong premises and he has reached wrong conclusions. Not even the big stick is big enough to compel the people of California to do a thing which they have a fixed determination not to do. LAWYERS AGREE OX TEST SUIT Validity of School Law to Be Tried by Government. SAN ' FRAXCISCO," Dee. K In accord ance with instructions received from Attorney-General Moody, United States Dis trict Attorney Robert Devlin this after noon held a conference in his office with President Aaron Altman, of the Board of Education; City Attorney William G. Burke and Assistant City Attorneys Will lam Bagget and John Williams to' discuss the exclusion of Japanese from schools attended by whites, with a view to ar ranging a suit to test the state statute which requires the segregation of children of Mongolian parentage in separate schools. Proceedings,- technically known as a "controversy without action," will be brought either In the Supreme Court of California or In a Federal court. ' Agree on Disputed Points. The points in dispute were practically agreed upon at today's conference, but the drafting of the statement of facts was postponed until Friday by unanimous consent. Mr Devlin in the meantime will (Concluded on Page 4.) THE MAYOR PLAYS THE LIMIT IT 1 A f V )T7 , J TRYING TO UNLOAD UNITED US Loss Seeks Riddance -of White Elephant. ITS FINANCES IN A BAD JWAY Company Burdened With Debt; Assets Are Only Nominal. CARNIVAL OF HIGH FINANCE Half a Dozen Promoters., Make Fat Stakes, While Men Who Put l"p Money 'Hold $450,000 Bonds of Questionable Value. v, HIGH FIXAXt'K OF UNITED RAILWAYS. Liabilities. Assets. Capital stock $3,000,000 Bonds 4ro,uoo Interest on bonds... 11.250 ...... Claims 116.000 ...... Judgment to George W. Hazen 3,500 Track built by Ore gon Traction Co .". $30,000 Track built by United Rys 45,000 Totals 13.580, 730 $75,000 Kxcess of liabilities oer sJwets, $3,605,750. Assets are all attached by claimants Tracks on Stark. Twelfth and Pet tygrove streets must be finished next April; on Front, Flanders, Seventh, .and Taylor,, next June. A. franchise bubble the United Rail ways Company of Portland Is offered for sale by its possessor, C. E. Loss, who Is trying to unload it on somebody ere it shall burst. The company has only about two and a half miles of track, which is practically its sole asset, yet is freighted with a debt of $450,000 bonds and some $120,000 other claims and has a fu'l stock issue of $3,0ik.0MV for which little or nothing was paid In, save in promoters' "services." The promoters Invested $100,000 in the Chamber of Commerce building and $15,000 in a piece of waterfront land, ostensibly making these properties assets of the company, while In fact they were kept in separate ownerships. The cash outlay for the United Railways itself, probably did not sum up more than $25,000, by means of which smallamount of money the scheme, inflated with "high finance" and plausible promise, secured 25-year franchises from the city last June on Frmit street, Flanders, Seventh and Tay lor, agreeing to finish the road in the city within a year, and to Salem within two years, or to forfeit a $100,000 bond, given by prominent local citizens, who were Indemnified by surety company and C. E. Loss, in twice their liability. It the city should look to the bond, it is said to be full of loopholes of escape for the bondsmen. The sale of the franchises by Loss, their present possessor, is hampered by the short six months remaining to finish the city lines, but more by the heavy debts which cannot be disposed of for less than $130,000, according to the statement of Loss' agents. Such a -carnival of high finance as has been carried on in Portland in the past year by the United Railways schemers, this city never :ta before. As usual In such affairs, those men who put up little or no money have come out best. Loss himself has cleaned up about $35,000, and is trying to pocket that much more by selling out.' H. St. John Dix, the busy agent of Loss, has put away some $12,000 and put off to London, Immediately after securing $2500 from Loss on a promissory note. J. Whyte Evans, original head of the company, . has gained perhaps less than $10.000 , and W. L. Benham. now president of the enterprise and possessor of one share of stock, has made a stake of something like $5000. The men who ad vanced $100,000 on the Chamber of Com merce purchase, and did the heavy Invest ing, have nothing to show for It but $450,000 bonds, which Loss forced them to take at the time he assumed control. Franchise of Oregon Traction. Tied up with 'the United Railways is the franchise of the Oregon Traction Company, on Stark, Twelfth and Petty grove streets the line projected to Hills boro. The United Railways, on taking over this franchise. March 15, 1906, agreed to assume the $36,000 debts of the Trac tion Company and pay its stockholders for their stock, a sum probably about $40,000, thus indefinitely named because the United Railways had already secured the stock of a number of the Traction Company stockholders. This $40,000 has not been paid, although the stock has been delivered. Nor have the $36,000 debts been discharged, al though their payment is secured by a check, certified by the Merchants' Na tional Bank, payable to W. T. Muir, trustee for the creditors. This check Is based on a note, signed by J. Whyte Evans, W. D. Larrabee, II. W. Lemeke, George Lemcke and Wilmot Griffiss, original promoters of the United Rail ways. The Oregon Traction stockholders have brought' suit against the United Rail ways, stock and bond holders, through L. Y. Keady, one of their number, for ' $40,000, money t which they allege the United Railways agreed to pay for the Oregon Traction stock. Suit by the credi tors of the Traction Company is threat ened against Muir and the Merchants' National Bank. Suit already has been begun oy L. Y. Keady and Thomas Mc Cusker, fpr $13,000 for services lasting through last Spring and Summer and an additional suit similar to the one for $40,000 is to be brought by Keady for between $10,000 and $18,000 for aceumulat ing claims of Oregon Traction stork- holders. ' Two Sr-ts of Financiers. Two sets of financiers have had the United Railways in hand the first be ing a bunch of Los Angeles men, head ed by Evans, who carue to Portland last January; the second being those led by Loss, a railroad construction contractor, builder of several railroads in California and contractor for a divi sion of the Drain-Coos Bay line of the Southern Pacific. He took hold last June, after the job grew too heavy for the first crowd. The Evans bunch contained Wilmot Griffls. R. H. Phllllpps, T. H. Dudley, H. W. Lemcke, George Lemcke. E. C. Herlow, W. D. Larrabee, J. W. E. Tay lor and M. H. French. The men who put up the most of the money were the Lemckes, Griffls, Phillipps, Dud ley and Herlow. They all advanced some $125,000 in cash, only a few thou sand of which went into the railway project. For the Chamber of Commerce building purchase, they put up $100, 000, and for a piece of waterfront land. $15,000. These payments made it appear that the company had big supplies of money. The promoters said they could finance the lines through the city and to HUIs boro and Salem without a stagger. They asked for franchises on Front street, Flanders, Seventh and Taylor, which the city granted May 23, 1906, and the Mayor allowed to go into force June 6. That same night, Evans de clared that the company had $5,000,000 for construction. On or before July 3 the company was to give $100,000 bond, as guarantee of good faith toward the city, and of construction of the city lines within one year and of the Salem line within two years. Money Runs. Short. Difficulties ensued, in giving the bond. The promoters ran short of money. Obligations pressing on all sides and time running short for sign ing the bonds made things strenuous. Then "nove in sight H. St. John Dix, a plausible chap of confidential manner, who six years ago was convicted (it is said unjustly) for irregularities In a bank at Bellingham, Wash. This fact was hushed up, for it was said that Dix represented moneyed men, was a person of responsibility and was innocent of blame for the Bellingham troubles. Dix brought to Portland from San Francisco, C. E. Loss. ' The Los Angeles financiers had" put on big display up to this time. They obtained possession of the franchise of the Oregon Traction Company (Hills boro line), and merged that company with their own, without payment of money. They competed with the Wil lamette Valley Traction Company, now building to Salem, for a franchise on Front and" Flanders streets, and won after a long tussle. They announced before obtaining the franchises 'and immediately afterward that they would begin construction at once. They declared war on the Portland General Electric Company for alleged refusal to supply them with electric power. They made It appear that they were about to open an era of unpre cedented progress for Portland. They evidenced their confidence in Portland's ! grrowth by purchasing the Chamber of Commerce building, making thereon a payment of $103,000., But aa the time approached for sign- i (Concluded on Page 8.) j ' OF L Broke Arms and Legs of Negroes. BECAUSE SHEA ORDERED IT Schultz Reveals " Brutality of Teamsters. ACID THROWN. AT HORSES Squirted From Syringes to Make Them Run Away or Thrown In Eggs Bricks Thrown at Strikebreakers' Teams. CHICAGO, Dec. 5. A startling exposure) of the methods employed in the teamsters' strike was given in the trial of Cornelius B. Shea and his fellow labor leaders be fore Judge Ball In the Criminal Court to day, when Joseph Schultz, an alleged slugger, who with Albert Young turned state's evidence, was on the stand as a witness for the state. Schultz declared that Shea had told him to break the legs and arms of the strike-breakers and espe cially to attack the negro strike-breakers. When this means of bringing about de cided results did not work satisfactorily, Schultz asserted that Shea ordered th hired pickets to throw eggs filled with acids at the horses being driven by non union men. Break Legs and Arms. After Schultz had been on the stand sev eral hours he was asked by Assistant States Attorney Miller: - "What did Mr. 9hea say concerning tho negroes?" ''He said break their legs or arms, so they won't be able to work." "Do you remember in the early part of April, 1903. seeing the negroes coming out of the alley back of the store of Mont gomery ."Ward & Co?" "Yes," replied Schultz, "I saw the men and Shea was there. As they passed us, Shea said to me: 'There Is one of the finks. Get him when he gets a little further." We caught blm a block away and slugged him. A man named Scully was with me." . Beat Xegro With Car Brake. ; "After that where did you go?" "I went down to South Water street. We saw some more finks and followed them to a streetcar in Wabash avenue. I saw Jerry McCarthy, the business agent (Concluded on Page 7.) CONTENTS TODAY'S PAPER Tho Weather. TESTIER DAY'S Maximum temperature 48 degrees; minimum, TODAY'S Occasional rain; southerly winds. Foreign. Xebegatoff and "his officers on trial. Page S. Man who caused Bialystok massacre assas sinated. Page 3- National. California inflamed with anger at Roose velt's message on Japanese. Page 1. Secretary Shaw reports on finances and rec ommends elastic currency. Page 2. House passes bill allowing- Natlonal-banlC loans on real estate, page 2. Taft defends discharge of negro troops. Page 4. No tariff revision likely till 1909. Page 3. Fulton attributes attacks on him to Hitch cock. Page 4. politic. Organization starts to elect Roosevelt for third term. Page 7. Des Moines conference will propose consti tutional conventlcn on election of Sen ators. Page 3. Domestic. More evidence of rebating In Colorado. Page 3. Clifton In ruins through flood. - Page 3. Lionel Stagge arrested In Washington. Page 4. Labor slugger makes confession In court, Page 1. Good roads convention in session. Page S. Sports. Trotting Board dismisses c'nargs of doping Lou Dillon. Page 7. Pacific Coast. , Portage railway on Columbia may be shut down. Page 6. Idaho Sheriff shoots citizen caught steal ing coal from railroad. Page 6. Brother of Mayor Behmltz Involved In San Francisco graft. Page 6. Seattle Bar Association will probe Insanity Commission scandal. Page 8. University of Washington forbids students to appear in light opera. Page 7. Commercial and Marine. Expect1, advance occurs In sugar market. Pagtr 15. Further decline In Portland stock market. Page 15. ' New York stocks hold up, despite tightness) of money. Page 15. Wheat closea higher at Chicago. Page 35. Pilot Olney of steamer Lurllne found a fault and suspended by inspectors. Page 14. Grain strike narrowly averted on East Side docks. Page 7. Portland and Vicinity. C. E. Loss seeks purchaser of United Rail ways, but debts and short life of fran chises hamper deal. Page 1. J. M. Long accuses defense In damage suit of attempting to pack jury; Judge finds charge baseless. Page 11. Important ordinances to come before Coun cil for passage this afternoon. Pa-ice 10. Hop dealers meet in Portland to discuss remedy zor car shortage. f&Ko . Forgery of name on street petition In made in council, but disproved, .fag jw. H. 8. Winn, accused of being vagrant by minister, goes free. Paga 10. Mrs. Simon Harris says Jews have already reached the promised lana. fage v. J. H. MeClung and J. R. Wetherhee to erect family hotel In Nob Hill district at cost of $17G.OOO. Page 31. Tom Rlchardpnn. manager of Portland Com mercial dun. returns from Clue ago and U Louis. Page 14. CONFESSIONS