PORTLAND, OREGON, SATURDAY. DECEMBER 29, 1906. PRICE FIVE CENTS. VOL. XLVI.-NO. 14,371. CUBA READY FOR NEW REVOLUTION Roosevelt Almost Hope less of Peace. FEARS WAR BEFORE ELECTION Moderates, Hungry for Office, Aching for Fight. 3REAT FLEET PREPARING Overwhelming Xaral Force, With 4000 Marines, Soon to Maneuver Off Cuban Coast and Formid able Army Being Gathered. WASHINGTON. Dec. 28. SpectaJ. Real trouble Is brewing In Cuba. The crisis may come sooner than has been expected. The situation that confronts our Government was outlined at some length in these dispatches last night, but today developments have been made known which give it an even more seri ous aspect. "War Is probably the only way out of the difficulty." The words quoted came from an ex ceedingly high Administration source and they were uttered today with a distinct view to preparing the American public for the extreme of what is likely to hap pen. The statement is warranted that President Roosevelt and those In closest touch with him respecting the solution of the Cuban problem have well-nigh de spaired of sottling the same amicably. It was stated, last night that grave fears were entertained regarding what might follow the coming elections in ' Cuba. Further investigation today develops the fact that trouble Is feared even prior .to the balloting. The trouble, it is an nounced, may be postponed some months and then again it" may corns in a few weeks and possibly any day. .. Moderates Do Not Desire Peace. No telegraphic advices from Cuba have been received either by the Secretary of War or the Bureau of Insular Affairs since December 24. and the War Depart ment is very much concerned as to late developments In the island. Mall received today, however, brought the Information that the elections, originally set for Janu ary, cannot be held until June, If then, as the commission charged with framing the election laws has only Just started with its work. There is more than a suspicion in Wash ington that the Moderate party in Cuba does not want a peaceful settlement of the pending differences. The Moderates were in power when it became necessary for the United States to intervene In affairs last Fall, and apparently the Mod erates cannot get over the thirst for power that at that time was being satisfied. General Bell's action In ordering troops to proceed to Santa Clara Province, whilo it is openly pronounced to have been for the purpose of giving the men marching practice. Is privately admitted by war officials here to be Intended as a move ment to give moral support to the doc trine of independence which our . Govern ment is bent on making known, . forcibly If need be. Will Send Powerful Fleet. The fear in Washington is that a single park may kindle the flame of revolution throughout the island. In view of this, preparations are being made to reinforce the military forces in Cuba at short no tice. Within a very few weeks one of the largest fleets this Government ever has massed will concentrate in Cuban waters, ostensibly for practice In maneuvers at sea. Every battleship in the Navy will be there. There will be 12 powerful bat tleships in Admiral Evans1 command, but the most significant thing is that the fleet, aside from its physical exterior prowess, will carry about 4000 marines, who could be landed at almost a mo ment's notice to meet any emergency that arises. The General Staff already has made preparations to rush a formidable army to General Bell's aid if another revolution breaks out. Quesada, the Cuban Minister to this country, haj been alarmed by the under-the-surface reports of the trouble that Is likely to occur in his country and Is taking measures intended to allay the feeling of distrust that exists there. SHOOTS NO WILD TURKEYS President Has Bad Luck While Hunting In Virginia. CHARLOTTESVIL.LE, Va, Dec. 28. President Roosevelt's hunt today across Hardware River a dozen miles from Pine Knot was fruitless as far as wild turkeys were concerned, the only trophies being a few birds which were encountered on the return trip. The party included the President. Surgeon General Rtocey, Joseph Wilmer, Kermit Roosevelt and Lieutenant Hammer. . . . . Last to Ratify Algeciras Treaty. MADRID, Dec. 28. With the arrival here of official notification today that the United States had ratified the Algeciras convention regarding Moroccon reforms, notices of ratification from all the powers concerned have been received. It was announced that regulations governing the International police force in Morocco will be drawn up by the French-Spanish dele gates, the Swiss Colonel wHT Is to com mand the forces and the Moonsn Minister of War. PEACE WITH HERREROS Germany Ends Disastrous War In Southwest Africa. CAPT TOWN, Dec. 28. It is learned here from the German border that a. peace treaty between the German forces and the warring Herreroes has been signed in Damaraland. A serious uprising by the Herreroes broke out in Southwest Africa in Jan uary,' 1904, and has given great trouble for almost three years. The govern ment took the standpoint that the col onies were a National duty and that Germany's position In the world should be preserved by the. successful conduct of the Southwest African campaign. The dissolution of the German Reich stag December 13 occurred after the : v.-xss George w. Perkins, Partner of J. P.. Morgan, Indicted for Insurance Fraud. defeat, 117 to 16S, of the government's bill for a supplementary appropriation to support the German troops- in the field. The war In Africa has been de scribed in Germany as profitless, costly and Inglorious, and the refusal of the chamber to pass the supplementary credits of $7,350,000 of the war fund showed Its unpopularity. Germany has at present about 12,000 men in Southwest Africa. Had the supplementary credit been passed, the war would have cost the German treas ury a total of $176,500,000. RAISULI PREPARES FOR WAR Dismissed as Governor,' Gathers Hts Forces to Fight Sultan. TANGIER, Morocco. Dec. 2S. Accord ing to the best information obtainable, Raisull has refused to resign his Gov ernorship and has sent his harem to the mountains under the protection of a de tachment of Kabyles, and Is preparing to meet the forces of War Minister Gabhas at Zlnat. The War Minister entered the city In state today and went to the grand mosque, where he solemnly read a letter from the Sultan dismissing Raisull from his Governorship for causing Injury to the country. Raisull Is preparing to preach a holy war "against the foreign Invaders." MURDER TWO GREEK FAMILIES Bulgarians Then Burn Bodies and Destroy Homes. ATHENS, Dec. 28. A dispatch from Seres, European Turkey, 45 miles north east of Salonika, says that Bulgarian bands Invaded the village of Cleopona9ia and murdered two Greek notables, their wives and children, and afterward burned the bodies and destroyed the homes of their victims. Bulgarians have mal treated Greeks in other villages, the dis? patch continues, for refusal to adhere to the exarchate. Mexico to Buy Another Railroad. CITY OF MEXICO, Dec. 28. It was learned today from seemingly authori tative sources that the Mexican Govern ment had begun negotiations for the pur chase of the Mexican Railway from Mex ico City to Vera Crux. It is said that when the company Is formed to take over the holdings of the National and Central lines, the Mexican Railway will be In cluded In the same company. Bont's Last Election Valid. PARIS. Dec. 28. The Chamber of Deputies today decided that ' the latest election of Count Bonl de Castellane to the Chamber was valid. Teachers Favor Simplified Spelling. DES MOINES, Dec. 2S. The Iowa State Teachers' convention today adopted reso lutions favoring simplification of English spelling. Ttio Natural Overlooked Hood. Scenery Shouldn't Be This Would Help Mt. it k. ' - -I J MODERN BILLBOARD ADVERTISING l Y. Vnf Tiral Bi'hm BIu-Mh VIa And Wi ltnnm.l. Toll. Cftnlil Til, " BWummm ' H.. Tv. Hah In mu T hA IT I wll T"Wt T tM Kh.Fft T TOrtllUld till Hillhoard Art MST EUROPE GRIPPED BY ARCTIC WINTER Blizzard Causes Wreck in Scotland. SIXTEEN KILLED ON RAILROAD All Communication Stopped by Great Storm. MANY TRAINS SNOWBOUND Passengers Suffer From Cold and Hunger People Freeze to Death on Highways Swiss Vil lages Cut Off. LONDON, Dec 28. It has been many years since Central Europe generally has suffered so severely from an Arctic visi tation as it has this Christmas week. From France, Belgium, Switzerland, Ger many and Austria-Hungary the same tale Is repreated of heavy snow storms, inter ruption of vehicular, telegraphic and rail road communication, loss of life and gen eral discomfort. While Great Britain as a rule escapes Winter weather; she has suffered this year to an almost unprecedented degree. According to reports tonight from north ern points, the storm Is growing worse. The heavy snowstorms which began sev eral days ago continue. They are accom panied by violent gales and even thunder storms In some places, and have resulted In a serious railroad accident near Arbor ath, Scotland, In which about 50 persons were killed or suffered serious injuries. Railroads All Tied Up. Railroad traffic In the north of Eng land and especially in Scotland Is becom ing completely tied up. Large towns like Edinburgh, Dundee and Perth are almost Isolated. The telegraphic services are disorganized and would be completely useless but for the extension in recent years ' of 'the underground wires. . The snowstorms continue with equal severity in Northern Wales-and In Ireland. None of the trains that left London Thursday over the Midland Railway have reached Edinburgh, while other trains are snowbound and passengers are suf fering from cold and hunger. Relief trains are being embedded In the snow and the railroad companies have Issued official notices that it Is Impossible to guarantee traffic on schedule time, so far as Scotland is concerned. There has not yet been serious trouble in Central and Southern England. Wrecks Along Coast. The gales have caused many minor casualties along the coasts. Among the most serious disasters thus far reported is the wreck of the Japanese liner Awa Maru through the snapping of her anchor cable. No lives were lost, but the steamer, which Is on the rocks off Redcar, threat ens to become a total loss. In London snow continues to fall at Intervals and Is bringing much discom fort, besides involving the authorities in heavy expense to clear It away. Lon doners who live in the suburbs are in dulging in the unusual pastime of tobog ganing. Jflne Persons Freeze to Death. Nine persons have been found frozen to death on roads In England In the last 24 hours. Forty to 50 women had narrow escapes from death today owing to the collapse of the snow-laden roof of a Co vent Garden warehouse, but most of them were rescued from the wreckage with only slight injuries. In the mountain districts of France there Is much suffering from the heavy fall of snow and consequent floods are reported from the highlands of Ardennes. In Belgium drift Ice Is forming on the Scheldt and other large rivers and all communication with points In the Herto gen Forest is at a standstill. Swiss Villages Isolated. In Switzerland the weather is of un usual severity. The uplands already are And Multnomah Falls Could The Skyscraper The Very Dogs In the Streei Be BeMtifled Thus. Offers Higher Shouldn't Be Exempt. Ideal in - Advertising;. under six feet of snow and some moun tain villages are completely isolated. This state of affairs Is drawing renewed attention to proposed measures to keep the Swiss passes open all the year through. Thus far the government has declined to contemplate doing this because of the heavy expense. Austria and Hungary are also in the grasp of Wlntery weather. Traffic on some of the railroads In Gallcia has been suspended. In Buda Pest snow has put an end to street travel of all kinds on wheels. " Germany reports the heaviest general snowfall In many years and railroad traffic is considerably distorted. Ship Sinks Off Welsh Coast. The gale raged on the northwest coast of Ireland today. Near Rathmulten a three-masted schooner drifted to a peril ous position. A steamer went to her res cue and towed her to safety. Nothing further has been seen of the vessel that was reported to have founder-, ed off Phoscolyn Point, Wales. The life boat was out for six hours battling with Jnmn J.' Hill, Who Will Rotlre From Active Management of the Great Northern and Northern Pa cific Railroads. the storm. It returned at a late hour tonight. It Is said that the sunken ves sel struck a rock and went down. Sev eral other vessels are In distress in the outer road of Holy Head and grave fears are entertained for their safety. Clothes Freeze to Bodies. All further attempts to refloat the Bel fast steamer Orniiey, which Is stranded near Dover, have been futule. . A life boat stood by the Ormley for 50 hours. The life men suffered severely, their clothes freezing fast to their bodies. A numbr of tugs went out today to stand by the Ormley and the lifeboat returned. Several vessels have been assisted Into Dover. The steamer Eleanor, of Plym outh, reached port after having her sails blown away. The schooner Cambrian had a narrow escape from being blown ashore at Deal. The bark Regla. rtruct the Goodwin Sands Christinas day. The crew took to the boats and after much hardship reached Goodwin light. A large steamer is reported in distress off Scar borough. The sea is so rough that It is impossible to launch a lifeboat. There is very heavy weather In the Irish Sea and the great waves are break ing over the breakwaters. The Irish mall service Is conducted with diffi culty. TRAINS COLLIDE IN SNOWDRIFT Sixteen Killed and Thirty Injured in Scotch Railroad Wreck. DUNDEE, Scotland, Dec. 2S. In a rail road collision today, caused by the heavy snowstorm, 16 persons were killed and more than 30 Injured. The accident oc curred near Arbroath, on the North Brit ish Railroad, between Edinburgh and Aberdeen. Among the injured is Alexander Will iam Black, member of the House of Com mons from Bannockshire, Scotland. Owing to the heavy fall of snow, trains from London for Aberdeen were held up at Arbroath. During the afternoon the line was' cleared and one train proceeded for Dundee. It had stopped at Elliot Junction and the danger Signals were thought to have been set. They failed to act, however, being clogged with snow, and an express train dashed into the rear of the waiting train. It Is recalled that the Arbroath accident occurred on the anniversary of Scotland's worst railroad accident, the Tay bridge disaster of 1879. and within 60 miles of the scene thereof. In that wreck a bridge collapsed and precipitated a train with more than 70 persons into the river. No one escaped. Spanish Steamer and Crew Lost. CORUNNA, Spain, Deo. 28. The Span ish steamer Primero has foundered in a storm. All of her crear were lost with the exception of one. INDICTS PERKINS Grand Jury Charges Them With Forgery. IN NEW YORK LIFE'S AFFAIRS False Entries in Books Re garding Prussian Loan. CHARGE ONLY TECHNICAL Accused Got No Benefit, hut Policy- holders Got Much, Says Grand Jury Inquiry Will Con tinue Next Month. NEW YORK, Dec. 28. The grand Jury which has been Investigating the New York Life Insurance Company today re turned Indictments charging forgery In the third degree against George W. Per kins, formerly vice-president of the com pany and a member of J. P. Morgan & Co. and Charles S. Falrchlld, formerly Secretary of the Treasury, president of the New Tork Security & Trust Com pany and a member of the finance com mittee of the insurance company. Mr. Perkins entered a plea, of not guilty and gave bond in the sum of $10,000, his sureties being J. Pierpont Morgan, Jr.. and Cleveland H. Dodge. Mr. Falrchild is in Europe. The court assured Mr. Per kins that a double surety was not neces sary, but he replied that he preferred it. Six indictments were returned against each of the two defendants, but all are based on the transaction known as the Prussian "loan," the specification as to forgery being alleged falsification of book keeping entries. It is asserted that cer tain railway stocks were transferred by the insurance company to the Security & Trust Company in order to comply with the Prussian law, but that the transfer was not bonaflde. Got No Benefit From Forgery. ' - The grand Jury coupled with the Indict ments a presentment In which It places Itself on record as convinced that Messrs. Perkins and Falrchild were "Influenced by a desire to benefit the policyholders." The grand Jury further says the Indict ments were returned only under a strict Interpretation of the law as laid down by Distriot Attorney Jerome. The statement to Recorder Goff follows: "The grand Jury respectfully presents that, in filling a bill of indictment against two persons for offenses committed In connection with the affairs of the New Tork Life Insurance Company, accepting the law of these cases as advised by the District Attorney,' they feel constrained to find the indictment this day filed. The grand jurors, however,- desire to record their conviction that In doing the acts charged the defendants were Influenced by a desire to benefit the policyholders pf the New York Life Insurance Com pany; that the defendants themselves neither did nor could in any way per sonally profit from the acts done and that the evidence conclusively showed that a large pecuniary benefit was de rived by the policyholders as a conse quence of these acts." This statement was an official conflrma tion of the reports which had spread about the building where the grand Jury was In session that the jurors were not at all convinced that a crime had been committed in the "Prussian loan" trans action. The matter was pressed by Mr. Jerome, however, who appeared before the jury on a number of occasions and made arguments. Mr. Jerome was with the Jury until late yesterday evening and again early today. Surprise to Falrchild. The trial of W. D. Mann, the editor of Town Topics, on a charge of perjury be fore Recorder Goff was interrupted in order that the grand jury might report. Mr. Perkins, accompanied by his counsel and prospective bondsmen, was In court some time before the grand Jury ap peared. It had been an open secret for Jjtt the Empyrean Do Its Share. two days that Mr. Perkins would prob ably be indicted and his counsel had had several consultations with the District Attorney. The Indictment of Mr. Falrchild came as a surprise, for he had not been pub licly connected with the Investigation. The New York Security & Trust Com pany, of which Mr. Falrchlld was presi dent, was at the time of the "Prussian loan" controlled by the New York Life Company. The railway shares were trans ferred by the New Tork Life to the Se curity & Trust Company, and it Is con tended that. If a crime was committed, Mr. Falrchild must have been cognizant if It and a party to the transaction. It Is said that the discharge of the De cember grand Jury, which followed 'the presentment of the insurance Indictments, does not end the inquiry into the New York Life. The statement that the stat ute of limitations becomes effective Jan- Charles 8. Falrchlld, ex-Srrretary of the Treasury and Now President of New York Hecurlty & Trust Com pany, Indicted for Insurance Frauds. uary 1 with regard to any irregularities developed in the company during the Armstrong Investigation is erroneous. The Inquiry will probably be continued by the January grand Jury. Prussian Loan Affair. The "Prussian loan" matter was de veloped during the Armstrong Investi gation. Some years ago the Prussian government adopted a law which ex cluded all American Insurance com panies from doing business in that country. American life Insurance com panies were active there and the law was a serious blow. They at once made an effort to re-establish them selves by complying with the new law. As- a result a Prussian commission came to this country to investigate various companies. Among these was the New York Life. The- commission returned to Prussia with the recom mendation that the companies be aatn permitted to write insurance, provided they sell all stocks held as securities, it being a fundamental principle of Prussian law that no insurance com pany should "hold as collateral any stock. Only bonds were permissible. To meet this demand, the New Tork Life agreed to sell 10,000 shares of Chicago & Northwestern preferred and 6300 shares' of Chicago, Milwaukee & St. Paul preferred. It Is now charged that, instead of selling these stocks outright, the company merely trans ferred them to the New York Security & Trust Company, a subsidiary con cern, where they were held in trust, not being actually disposed of until about one year later, when they were sold on the stock exchange at a profit to the company of $155,000. The Chicago & Northwestern brought a profit of )250, 000, while the Chicago, Milwaukee & St. Paul stock showed a loss of f95,000. Charge in Indictments. The indictments against Messrs. Per kins and Falrchlld set forth that "the defendant, with Intent to defraud, did feloniously make In a certain book of accounts called 'the old dates cash book,' belonging to and pertaining to the business of said corporation, cer tain false entries." The entries on the first indictment appeared as follows: "B. & S., 2000 shares Chicago & Northwestern preferred at J 2 3 5 1470, 000. "B. and S. 300 shares Chicago, Mil waukee & St. Paul preferred at $190, J57.000. "Which false entries," . the Indict ment relates, "then and there pur ported to set forth and 'indicate, and did in substance and effect then and there signify and declaj-e that the said (Concluded on Page 4.) In Portland the Billboard Art May Be Said to Be in It Infancy Till We Get Something Like This. HILL WILL RETIRE ON HIS LAURELS His Son Will Be Great Northern's Head. CHANGE COMES JULY 1, 1907 Railroad King Announces His Plans in St. Paul. SPEND LAST YEARS IN REST Louis W. Hill, Already In Actual Charge of Affairs, Will Become llecognized Head Inher its Father's Ability. ST. PAt'L, Minn., Dec. 2. (Special.) President James J. Hill, of the Great Northern Railroad, the envplre-builder of the Northwest, will retire from the active management of his mammoth enterprises July 1, ISO". The announcement Is cred ited to Mr. Hill himself in a conference held with Twin-City business men. Mr. Hill's successor will be Louis W.. Hill, vice-president of the Gcrat North ern, who in reality has been In active charge of the road for the past three years. L W. Hill possesses to a consid erable extent the remarkable genius of his father, as has been demonstrated on more than one ocacsion. He has also been carefully trained In the ways of his parent, and, besides possessing natural ability. Is thoroughly posted as to the Hill methods and policies. Rumors have been current at the begin ning of the paBt few years that Mr. Hill would retire, but the magnate has kept as hard at work as ever. Despite his 67 years, he is as strong Inteleetually as 20 years ago, but he feels that he is entitled to a rest from his hard labors. In a pub lic speech delivered some time ago he said that he was preparing to lift some of the burdens from his back. He said he hoped that he would devote consider able time to reading, a pleasure which he has not been able to pursue as much as ho would like, although he Is the best posted man on special and general mat ters in the country. Regarding the announcement that he would retire July 1 next. Mr. Hill said: "1 have planned to retire as soon as I could safely do so. By that time I shall be abe to leave the work of a lifetime, the business here, on a safe, sound basis that will endure." CONTENTS TODAY'S PAPER The Weather. V EST K R DA YS M ax I mil m temperature, 42 degrees; minimum, ;i7. TODAY'S Cloudy; nouthwest winds. Foreign. Terrfnc blizzard throughout Europe blocks railroads, causes nhlpwrecka and freezes many to dtath. Page 1. Railroad collision In Scotland costs 16 Uvea, Page 1. Governor of Russian province assassinated. Page 3. French Senate approves separation bill and Briantl cries "no quarter." Page 2. Horrible details of Yaqul outbreak. Pace 3. Nat ional. Serious fears of revolution In Cuba. Pago 1. Root pledge action with Britain against Congo outrages. Page 8. Britain worries without cause over Br)'Oi'i appointment. Page 4. Politics. Beverldge speaks on child labor bill. Pes; 4. Oomestlo. Perkins and Falrchlld Indicted for insur ance frauds. Page 1. J. J. Hill announces Impending retirement from railroad business. Page 1. Another outrage by negro soldiers stirs up El Reno. Okla. Page 2. President Cassatt, of Pennsylvania Railroad dead. Page &. College professors discus effect of athletic on study. Page 4. Vain effort to settle firemen's strike. Page 4. Sport. Rubs Hall, of Seattle, said to be negotiat ing for the Butte baseball franchise Page 5- James J. Jeffries signs article for fight for heavy-weight championship with William Squires, of Australia. Page 5. Fav.no Coast. Mrs. Sarah Ayers la mysteriously murdered at her farm home at Warren, Columbia County. Page 5. Baby Is thrown Into locomotive smokestack and burned to death In rear-end collision near Olympla, Wash. Page 6. Harrlman-Hlll battle is transferred to North Bank route to the sea. Page 0. Dr. T. M. Gatch, president of the Oregon Agricultural College elected to privileges of Carnegie foundation for the aid of teaching. Page . J. Key. of Hoqutam, while Intoxicated, shoots Into crowd and Is fatally wounded by officers. Page 5. Commercial and Marine. New Oriental flour mills about ready to operate. Page 15. Eastern wheat markets decline. Page 15. Break in Hill stocks. Page 15. Christmas week's trade breaks record." Page 15. Old-time American ships are drafted for Coast lumber trade. Page 14. Sailing of the Oriental liner Arabia post poned. Page 14. Portland and Vicinity. Co-Workers' Fraternity, of Boston, plans to establish colony and build model city in Oregon. Page 14. Annual report of Southern Pacific makes remarkable showing ns to Increased earn ings and lower coat of operation. Page 11. Five of Multnomah County Representatives to Legislature announce that they will ' support Davey, of Marion for Speaker. Page 11. Representative Drlscoll chosen to head Mult nomah delegation in Legislature. Page 4. Democrats plan welcome to Bryan. Page 10. Divekeeper plans crusade on vice. Page 10. Mayor Lane talks to carmen. Page 9. Auditor Sterling, of O. R. A N. Co., Is transferred to 'Omaha. Page 11. Mrs. Julia BIgnam! is stain by G. Savlg i.oni, who thtn commits suicide. Page 10. Portland Women's Club will contribute to fund to educate poor girls. Page 14. Water Board, in order to lower -water ratesj must amend city charter. Page 10.