Pages 17 to 24 Section Two PORTLAND, OREGOy, TUESDAY, JANUARY 1, VOL. XXV. 190 NO. 14,373. BANNER YEAR FOB RAILWAY BUILDING New Mileage in 1906 Greatest for any Twelvemonth in 18 Years. SOUTHWEST IN THE LEAD Paclflo States Come Second In Amount of Xcw Construction. Work Much Hampered by the Great Scarcity of Labor. More railroad mileage was built In the United States during the year Juat closed than for 18 years. The last 12 months have been the greatest period of railroad activity since 1888. Ad vance proofs of the Railway Age show that since last January 1, 6067 miles of track have boen laid on 388 lines in 44 states and territories. The record year of the United States in construction was 1887. when 13,000 miles of new main-line track was laid, and the following: year witnessed the completion of 7106 miles. In no year Flnce 1887 has there been so -"uch con struction under way as in 190o, and ex cept for the delays encountered in the scarcity of labor and the difficulty in securing rails and materials, the mile age accomplished during the past year undoubtedly would have exceeded that of 1887. At the first of 1906 careful estimates showed 13,000 miles of new railway was under contract, and since that time contracts for several more thousand miles have been lot. However, it was doubted if anywhere near that total would be constructed, because of the labor shortage. This prediction has come true. Kailway building was em barrassed by labor shortage and a scarcity of rails. The demand for more workmen has been almost universal, and much of the new mileage planned for completion In 1906 will not be fin ished before some time this year. In the new construction, the South western states come first, the Pacific states second and the Northwestern states third. The last-named group has 1,130.69 miles to Its credit. Texas leads In the new mileage, with 701. No new track is reported in New Hamp shire. Vermont, Rhode Island, Connecti cut, New Jersey or Delaware. Nearly 70 per cent of the new, mile age is west of the Mississippi, where 1906 construction aggregates 4190 miles, or nearly 70 per cent of the to tal. -k,. "The completed mileage In the extreme Northwest Is small." says the Railway Age. "considering the vast amount of con struction under way in that section of the country. But work on many of the important lines under contract has been largely of a preliminary nature and the track-laying stage has not been reached. In addition to the 363 miles of new track laid during the year in Oregon, "Washing ton and Idaho, over 1700 miles of new line are under contract In those three states, and preparations are being made to start work on several other Important enter prises." The longest line In the Northwest com pleted during the year was the Canadian Pacific s extension to Spokane, Wash., from the international boundary line at Eastport, Idaho, a distance of 141 miles. The labor shortage has been the worst drawback to construction In the North west. On many lines the camps could not be kept full, although higher wages were paid than ever before for similar work. Men were constantly coming and going, and the frequent additions of ned men to grading crews and the desertion of ex pcrienced men retarded the work materi ally. Whole camps were depopulated when harvest set In, the men preferring a change of employment. According to Poor's Manual, the main line mileage of the United States on Jan uary 1 last was 217.072.34 miles, and the S.OK7.4 miles completed during the past 12 months gives the country 23,139.74 miles of completed railroad today. ROADS CONTROL WATER LINES Garfield's Report Will Tell Cause of High Rates. CHICAGO. Dec. 31. A dispatch to the Tribune from Washington says: "That the country is in the monopolistic grip of the railroads is developed more clearly than ever by an investigation that Commissioner Garfield is making into the effect of water transportation on rail road rates. "The facts unearthed demonstrate that the railroads have their hands upon the water transportation, both inland and coastwise, and that a working arrange ment even exists with ocean steamship companies. The ability of railroads to 'maintain noncompetitive rates and to discriminate between different sections of the country thus becomes apparent." Old Management in Again. MOBILE, Ala.. Dec. 31. F. L. Dewey and J. L. Dantzler, who were recently appointed receivers of the Mobile, Jack son & Kansas City Railroad, were oust ed today from possession of the property on an order Issued from the Chancery Court. The old management, which was ousted Wednesday night last, has again assumed charge. JAPANESE NOT MOLESTED Advocates of Assassination Freer in America Than Japan. SAN FRANCISCO, Dec. 31. Shlgeki Oka, the Japanese who is attempting to propagate doctrines in this country which would cause his instant punishment if uttered In his native land, was not mo lested by United States secret service agents yesterday. Notwithstanding the Indignant protests of sensible members of the Japanese colony, arrangements are being made, it is said, by the publisher of the Revolution to Issue another copy of the paper. The charge that some Japan ese make that the writer of the article Is a beardless Japanese student residing in Berkeley is scoffed at by Secretary M. Oyama, of the Japanese Consulate. Sec retary Oyama declares that he can vouch for every on of the Japanese students at the University of California. None of them, he says, is in any way connected with the Japanese socialist party. If this paper, the Revolution, were published in Japan, it would be quickly suppressed and the editor would be pun ished severely," declared Oyama. Mexico Japan's Halfway House. CITT OF MEXICO. Dec. SI. A dispatch to the Herald from Guadalajara says that the migration of Japanese brought to this country under contract to work on the Manzanillo extension of the Mexican Central Railroad continues. According to the correspondent 150 of these men have arrived in Guadalajara and purchased tickets for El Paso. The story puts an en tirely new version on the affair, for it says that most of the men are well sup plied with money and are not laborers. Among their number are professional men, skilled artisans and students. Ac cording to the correspondent, it is the be lief of the railroad contractors that these men came to Mexico with the sole Idea of gaining transportation to the United States. On January 20 a 'steamer from Japan carrying 1100 bona fide laborers is expect ed to arrive and the railroad men hope this will relieve the stringency in the la bor market. ' CAN'T TRUST SERVANTS Shooting and Poisoning Cause Alarm in Texas Families. HOUSTON, Texas,' Dec. SI. A sup posed attempt to assassinate Mrs. L. H. McGregor, wife of Representative- elect McGregor, and the announcement that other members of the family of F. Charles Hume had been poisoned have led many housekeepers to dis charge their negro servants. A former negro servant in the McGregor home is under arrest, charged with shooting into the dining-room of the McGregor home. The bullet narrowly missed Mrs. McGregor's head. Mrs. McGregor had rebuked the negro's wife, who was em ployed as their cook. Call to Negroes to Celebrate. , NEW YORK, Dec. 31. From the pul pits of the negro churches there was read yesterday a proclamation issued under the auspices of a free American council, of which Bishop Alexander Walters is president and Dr. L. G. Jor dan ia secretary, urginjr negroes to assemble tomorrow in the churches and other meeting places to celebrate the 43d anniversary of the issuance of the emancipation proclamation. The call states: "We should tell of our material prog ress as is shown by the accumulation of personal and real property to the amount of more than $1,000,000,030. We should proclaim to the world our edu cational progress; tell how we have eliminated more than BO per cent of our Illiteracy, and we should cry aloud against the injustices that are being perpetrated against us by Jim Crow cars and disfranchisement laws in the South. We should let the world know what an Injustice has been done the race by the dismissal and condemna tion of innocent negro soldiers with out the process of law men who have fought for 40 years- in. defense of the flag and for the" honor -of the country. "Let us speak of our wrongs until they are righted." MOVE TO REVIVE BOYCOTT Canton Chinese Still Bitter at Being Excluded. HONGKONG, Dec. 31. Dispatches received from Canton report that over 1010 porsons were present at a meet ing held to discuss the American-Chinese exclusion act. The following reso lutions were adopted at the meeting: First To revive a boycott againBt American goods. Second That newspapers should not advertise American manufacturers. Third To dissuade laborers from proceeding to Panama. Fourth To petition the Viceroy, ask ing the Imperial' Government to nego tiate with America for a modification of the exclusion act, and lastly that these resolutions be placarded through out the country. Carrying Food to Hungry Chinese. WASHINGTON, Dec. 31. The offer of E. H. Harriman t" President Roosevelt to transport on his steamship lines all supplies delivered at San Francisco and Intended to relieve famine suffer ers in China has opened the way for the American Red Cross to make an appeal direct to the farmers of the country to provide corn and wheat. The appeal for money contributions has been effective, but it is believed the greater good would come from gifts of grain, now that the transpor tation question has been met. Already the Red Cross officials in this city have suggested to Governor Cummins, of Iowa, that he ask the farmers of that state to make grain contributions. The call upon the Gov ernors has not been general, for the reason that - the Red Cross officers were waiting to see whether it would be decided to use the Army transport service to convey grain to the Orient. Merciful to Poor Husbands. PARIS, Dec. 31. A case that Is inter esting husbands and dressmakers has been decided by the courts. A fashion able dressmaker demanded several thou sand dollars for a score of gowns fur nished to a woman In two months and sued the husband. The court holds even though a husband gives the wife authority to purchase the toilettes, it must be pre sumed that he intends to be reasonable. It rules that it is the duty of the dress maker to inquire whether orders given by the wife accord with the husband's finan cial and social status. Tradesmen are also cautioned to show prudence -and re serve when apparently exaggerated orders are given. The court reduced the demand of the dressmaker almost to half. Last of the Rajah of Goa. THE HAGUE. Dec. 31. The famous Rajah of Goa, Island of Celebes, Dutch East Indies, who for many years caused trouble to the government au thorities, has been found dead in a ravine. A Dutch punitive force discovered the Rajah's stronghold Christmas day, but the chieftain fled with half a doz en followers. During his flight the Rajah and his companions toppled over a precipice into a ravine and the whole party were killed. Corey Will Xot Marry Actress. PARIS, Dec. 31. W. E. Corey, presi dent of the United States Steel Corpora tion, has arrived here. Any statement that he Is to be married to Miss Mabelle Oilman, In the Immediate future or dur ing his present visit to Europe, Is untrue. TAX LEVY OF CITY IS NUDE 5.7 MILLS Recommendation of Ways and Means Committee Indorsed by the Council. WILL PRODUCE $949,000 New Equipment Will Be Purchased for Fire Department, East Side Will Be Given Police Station and Police Force Enlarged. TAX PROBABLY 16.2 MILLS. According to the figures of County Assessor Sigler the total levy in Portland for all purposes will amount to 16.2 mills. Everything has been decided upon -with the exception of the state school tax and the county and county road tax. The County Commissioner have been waiting for the Council to make Its levy before taking action. The county will need more money than It had last year, but- pressure Is being brought to bear to keep the levy within- 16 mills. The levy, however, will probably be as follows: Mills. State 2. State school . l.S County and road 3-275 County library 125 Port of Portland 8 City school .... 2.6 City of Portland 8.7 Total 18.3 The Council yesterday morning made a tax levy of 5.7 mills. This is the levy that was recommended by the ways and means committee, and it was adopted yesterday without a dissenting vote, in round numbers the. levy on an assessed valuation of $166,500,000 will yield $949,000. , Mayor Lane, after the ordinance had been read, addressed the Council, and speaking for the executive branches of the city government, said that the money derived from the proposed tax levy would be judiciously and . economically ex pended. Councilman Bennett was one of the advocates of a 5.7 mills levy. He explained that several new engine houses had to be built and new equip ment purchased for the Fire Department and called .attention, to. the proposed new East Side police station, and the 25 ad ditional patrolmen to be added to the police force, terming these permanent improvements. He said that for 1906 the city got along on about $100,000 less than it should have had and dwelt on the proposed Increase of pay for the members of the police and fire departments. Councilman Sharkey largely confined his remans to quoting comparative statistics showing how much other cities derive from their city tax levy, and he declared that the expenses of the local government are exceptionally low. When the levy as recommended by the ways and means committee was put upon its final passage the vote was: Ayes Annand, Belding, Bennett, Dunning, Gray, Kellaher, Masters, Menefee, Pres ton, Sharkey. Wallace and Wills. Rush light and Vaughn were absent. The levy for the different departments and the revenue to be apportioned from the same on an assassed valuation of $166,500,000 is as follows: Fund- Mills. Revenue. Light 500 $ 83.aM.00 Fire. Department 2.250 S74.625.00 Police Department 1.075 ITS 9S7 50 Street repair S00 4S.95O.0O Library 125 20.812.50 Interest on bonds 650 108.225 00 Bridges 500 83,250.00 Totals 6.700 $943,060.00 FAVORS RAISING SALARIES Senate Committee May Restore Amendment House Rejected. WASHINGTON, Dee. Si. The sub-committee of the Senate committee on appro priations, which, for the last week, has been considering the legislative, execu tive and judicial appropriation bill, has considered the question of increasing the salaries of Senators and Representatives. and now It seems probable that the sub committee will recommend an advance of 60 per cent on Congressional salaries. The sub-committee is practically unanimous in the opinion that such an Increase should be made, but there is a general feeling that the House should have Inserted the provision. It also looks as if the committee would recommend that the provisions for in creasing the salaries of the Vice-President, Speaker and Cabinet officers should be eliminated, unless a corresponding In crease is secured for Senators and mem bers. Many members of the committee think the Senate should be given an opportunity to pass on the subject, and will advocate the incorporation of an amendment In the bill by the committee covering the entire suDject- NEW YEAR'S RECEPTION PLANS Order In AVhich President Will Re. fceive Dignitaries. WASHINGTON. Dec. 31. Arrange ments have been completed bv Secre tary Loeb and Colonel Charles S. Brom- well, the President's milftary aide, for tne president's wow Year s reception. The programme in detail follows: 11 A. M. The Vice-President, the members of the Cabinet, the Diplomatic Corps. 11:20 A, M. The Chief Justice and Associate Justices of the Supreme Court of the United States, the Judges of the Court of Appeals of the District of Columbia, the Judges of the Su preme Court of the District of Colum bia, the Judges of the United States Court of Claims, former members of t he Cabinet, Ambassadors and Ministers of the United States. 11:30 A. M. Senators, Representa tlves and Delegates in Congress, the Commissioners and judicial officers of the District of Columbia. 11:45 A. M. Officers of the Army, of- ncers of tne JNavy. officers of the Ma rlne Corps, Commanding General and General of Staff of the militia of the District of Columbia. 12 P. M. The regents and secretary of the Smithsonian Institution, the Civil Service Canal Commission, the In terstate -Commerce Commission, the Isthmian Canal Commission, Assistant Secretaries of the departments, the So licitor-General, Assistant Attorneys- General. Assistant Postmasters-General, the Treasurer of the United States, the Librarian of Congress, the Public Printer, the heads of bureaus In the several departments, the president of the Columbia Institution for the Deaf and Dumb. 12:30 P. M. The Society of the Cin cinnati, the Associated Veterans of the war of 1846-47, the Military Order of the Loyal Legion of the United States, the Grand Army of the Republic, the Medal of Honor Legion, the Union Veteran . Legion, the Union Veterans, the Society of the Army of Santiago, the Spanish War Veterans, the Army and Navy Union, the, Minute Men, the Sons of the American Revolution, the members of the Oldest Inhabitants' As sociation of the District of Columbia. 1 P. M. Reception of citizens. Straus Decides Hindoo Case. WASHINGTON, . Dec. 31. Secretary Straus today rendered a decision in the case of the ten Hindoos who applied for admission Into the United States at Van couver, B. C. He denied admission to six of them, who are diseased, upon the ground that they are liable to become public charges, and admitted the other four. The four admitted will locate in San Francisco, Farewell to Minister Dudley.' . LIMA, Peru, Dec. 31. At the fare well banquet given Saturday night by President Pardo to the retiring Ameri can Minister, Mr. Dudley, and the Papal Nuncio, Monsignor Bavona, who is also leaving Lima, the President said that the whole of Peru regretted Mr. Dudley's departure. THEIR LEADERS BETRAYED Revolutionary Leaders In Russia Ar rested and Documents Seized. ST. PETERSBURG. Dec. 31 Acting on Information furnished to the police by a traitor during the last few days, the police captured more than 100 leaders and mem bers of the St. Petersburg military organ ization of the Social Democrats, who were carrying on a propaganda among the army and navy. Among those taken into custody was the editor of a secretly published paper entitled the Barracks and 25 soldiers and several women. The po lice also arrested many members of an important group of Terroristic Social Rev olutionists, and captured, according to report, a list of 27 high officials who had been sentenced to death. Finally, it is asserted that the police accidentally ob tained Information which frustrated a plot to -blow up a number of persons at a conference which was to be held In the future. The recent arrests of members of the military organization which was respon sible for the Sveaborg and Cronstadt out breaks and the mutinies on board war ships of the Baltic squadron in August have been reported from various places In the Interior, notably at Moscow, to which city the central committee was transferred after the .police had twice broken up the headquarters at Vilna. Six officers, including Colonel Klopolt, who had distinguished themselves in their re spective services, were captured while holding a conference at Moscow. - Lieutenant Emil Jonoff, who was exe cuted at Sveaborg fortress In August for participation in the mutiny, also was a member of this organization. The propaganda in the army and navy is now the chief work of the' so-called majority faction of the Social Democrats, which, after the civilian insurrectionists of last Winter had been crushed by mili tary force, decided that the government could only be overthrown by subverting the army. The minority faction, which is now numerically stronger than the majority faction, has foresworn ven geance and has adopted resolutions In fa vor of purely political activity, as in Germany. The two factions now are vir tually Independent. Factions Shed Blood at Lodz. LODZ, Dec. 31. Skirmishes resulting In occasional fatalities continue be tween the Socialist and Nationalist fac tions. During last night six persons were killed or wounded.. A procession which was escorting the bodies of four murdered Nationalists to the cemetery today was attacked by a Socialist, who shot and killed one mourner, wounded two others and dispersed the cortege. An appeal of Socialists to French la bor unions to help the unemployed elicited the reply that owing to the lack of funds the unions were unable to be of any assistance. People Don't Swallow Promises. ST. PETERSBURG, Dec. 31. The electoral campaign of the government, according to Information available here. Is making but poor progress. The Provincial Governors report that they are making no headway in their efforts to placate the people with the promises of Stolypln, Minister of the Interior. The leader of the Moscow Conservative party expects that the Douma will contain a social revolutionary element which will make the career of the house impossible beyond a few weeks. Whole Socialist Committee Bagged. KIEV, Dec. 31. The local committee of the Social Democrats, consisting of 40 men, was arrested here today. Livestock Convention Called. DENVER. Col.. Dec. 31. A call has been issued to all live stock associations, live stock producers and members to at tend the tenth annual convention of the American National Livestock Associa tion, to be held at the Broadway The ater, Denver, Col., January 22 and 23, 1907. Many important questions are to be considered, among them inferior railroad service, from which shippers have suf fered so disastrously and for which the association has already taken vigorous steps to relieve. The question of securing access to the markets of Continental Eu rope for the surplus of livestock products will also come up. The subjects of for est reserves and grazing lands are also to be considered. Other matters to be discussed are meat inspection, sanitation, better service from stockyard companies; the suits now pending before the Inter state Commerce Commission relative to certain livestock rates and numerous other subjects of interest will be fully debated. All railroads have granted re duced rates. Japanese Craze for Picture Postals. HONOLULU. Dec 31. Fifty thousand Christmas postal cards have been mailed to Japan. . t GREATEST YEAR IN STEEL Chicago Forging to Front as Chief Center of Production. RAW MATERIALS AT HAND Though 19 0 0 Has Been Record Year Prosperity Shows No Signs of Abating Great New Plants Are Going Up. By Geo. H. Griffith, Associate Editor Iron Trade Review. Associate Editor Iron Trade Review. From every standpoint 1906 was a most remarkable year. Superlatives are Inade quate to express the conditions that have prevailed. In no previous year within the memory of the present business genera tion has there been such a movement. To Iron and steel makers it has been an especially fast pace. Though prosperity may seem at Its flood tide, the "grand stand finish" is not yet due. Plants groan under the weight of their orders: production records are being broken with an abandon never before dreamed of, but all over the land Is still heard a cry for more tonnage. Perhaps the most significant develop ment of the year In Iron and steel pro duction is the great extension of the basic open hearth -steel process over the Bessemer steel process. Every since the manufacture of basic open-hearth steel attained important proportions It passed the mllllon-ton mark in 1897 it has been pushing the Bessemer steel process. Open Hearth Surpasses Bessemer. In 1905 we made substantially 20.000,000 tons of steel, with nearly 11,000,000 tons of Bessemer, and nearly 9.000,000 - tons of open-hearth. But with the completion of the. new open-hearth construction au thorized, the relationship between the two processes will be changed. During 1906 21 open-hearth furnaces were com pleted, with an annual capacity of 873,600 tons. There are 47 furnaces now under construction, of an annual capacity of 2.189.360 tons;' while 71 open-hearth fur naces are known to have been author ized with an annual capacity of subr stantlally 4.500.000 tons. The only import ant Bessemer plant completed in 1906 is that at Youngstown, Ohio, having two 10-ton converters, with an annual capa city of ouo.000 tons. Chicago Strides to Front. Chicago has outdistanced all other sec tions of the country in the amount of new construction undertaken during the year within Its confines or contiguous to same. The iron and steel interests have out grown Pittsburg, and the southern ex tremity of Lake Michigan has been chosen for the future development of the Industry. Tills district possesses resources more than offsetting the economic advantage of Pittsburg In Its proximity to the Connellsville coal fields. ' Conclusive demonstrations have been made that by-product coke Is excellently adapted for blast furnace operations. It Is used exclusively In the Zenith furnace at Duluth as well as in the blast furnaces at Detroit, and has been more or less used in the merchant furnaces in the Chicago district. The by-product coking plants at South Chicago and Milwaukee have been Increased during the year to a total of 330 ovens, with an annual capa city of 360,000 tons of foundry and furnace coke. The fact that their entire output for 1907 Is already sold testifies to Its popularity. Coke Plants in Illinois. The United States Steel Corporation has made provision for the ultimate' erec tion of a large by-product coking plant at Gary while a number of Eastern capitalists are reported to have recently Dougnt is acres or land in Hammond Ind., with a view to the erection of a mammOLii coKlng plant there. The erection of a plant at Jollet, 111., for the manufacture of. silica fire brick has removed the only other physical disability toward the development of this district as an iron and steel producing center. Here tofore all the refractory materials for iron and steel-making operations have come from Pennsylvania and Kentuckv. but the discovery of a quartzlte formation in Wisconsin that can be manufactured into a high-grade refractory that will stand the severe usage of open-hearth practice not only will make the West In dependent of the East for this product but threatens to change the center of operations In this Industry. The American Refractories Company, of Jollet, has a capacity of 60,000 brick a day. but when the additions now authorized are complet ed, tnis output will be doubled. There is an unlimited supply of the raw mater ial in Wisconsin. Source of Supply ' and Distribution. In railroad communication the territory to the south of Chicago Is unrivaled. Six trunk lines pass through it and four belt railways connect with It. There is also unlimited room for switching yards and storage tracks, as well as for the expan sion of plants and towns located within It. Chicago has long been the foremost Iron and steel distributing center of the country, and the manufacturers of these products have not overlooked the time and expense represented in the haulage from Pittsburg that will be saved. It Is also nearer to the ore ranges than any of the Lake Erie ports by several hun dred miles, and by the location of all the blast furnaces at the water's edge the practice at South Chicago and In Lake County, Indiana the great expense involved in transshipping the ore from the docks to the blast furnaces miles distant, as is the custom at Lake Erie ports. Is saved. : The Gary plant overshadows all other undertakings In this district. In its com pleted state. It will produce annually, in round figures, 3,000,000 tons of steel. Other Industries Follow. The enormous Increase of productive ca pacity represented in the schedule of ex tensions in the district south of Chicago assumes a place of almost secondary con sideration when compared with the con suming and fabricating Interests it will Invite to Chicago. The tide has already set in. The Standard Steel Car Company, of Pittsburg, has decided to locate at Hammond, Ind.. and has In course of erection an Immense plant there, while the Western Steel Car and Foundry Com pany, of Chicago, will build a model man INDUSTRY ufacturing town, to be known as Burn ham, on the Calumet River, of which its new works will form the nucleus. The Pullman company has also decided upon the erection of a new plant at Pullman for the manufacture of steel and wooden freight cars. Many other manufacturers are also considering location in this dis trict. . ARMS SHIPPED TO CUBA Secretly Smuggled and Troops Are Searching for Tlicm. HAVANA, Dec. 31. A statement is made here that several thousand rifles and machine guns represented to have been landed recently in Plnar del Rio Province and hidden In the woods near Mariel, have been as secretly taken away. The recent movement of troops and po lice, which was considered mysterious in the light of Governor Magoon's state ment that there was no fear of rising in Cuba, is explained by this announcement, as It Is known that the movement was in the nature of a search for these arms. The possibility of a clash between Cubans and American troops is considered re mote, as their relations are good. The natives, however, are plotting against one another. Just who Is responsible for the ship ment of the arms . Into Cuba Is not known. One theory Is that the arms were purchased by the former liberal junta in New York and shipped too late to be used in the last movement. It Is feared that the arms are now. In the possession of the negroes In the prov ince. There are indications that it Is going to be difficult to repress disorder by the growing bands of negroes, who are burning cornfields and tobacco barns, robbing estates and stealing cattle. EXPOSE CHICAGO POLICE Y. M. C. A. Collects Evidence of Partnership In Crime. CHICAGO, Dec. 31. The Tribune today says: A report on police conditions in Chicago, similar to the one with which Captain Alexander Piper electrified the New York department two years ago. is being prepared for the Young Men's Christian Association. As a result the department has been threatened with a shake-up. From statements made by one of the Investigators the nature of the filed charges became known. The alleged Inef ficiency of the department and Its con nection with vice form the ground work of the report. Detectives brought in from other cities have been working quietly In Chicago for the association for more than a month and no suspicion of their pres ence in the city leaked out. The work has been confined principally to the South and North Sides with some Investigation of the downtown districts, particularly the disorderly hotels. The startling na ture of the report promises to be an ex pose of the First Ward levee syndicate, leading up from police non-interference and regular graft to the dlvekeepers and politicians who head It. RAILROAD ISJI0T LIABLE Employers' Liability Act Declared Contrary to Constitution. LOUISVILLE, Dec. 31. Judge Walter Evans, In the Federal Court today, de clared the employers' liability act un constitutional. The decision was given in the case of the administratrix of N. C. Brooks vs. the Southern Paciflc Rail way, and Is believed to be the first handed down in connection with this act. ' The alleged cause of action occurred in Kansas. The husband plaintiff was killed In a railroad accident and suit was brought under this act for 925.000 damages and an amount sufficient to cover the cost of expenses Incident to death. The court holds that the act in effect would regulate commerce within the state as well as interstate commerce and Is there fore unconstitutional. The demurrer of the Southern Pacific Railroad to action for damages Is sustained. Guardian of Thomas Palne's Grave. NEW YORK, Dec. 31. Fearing that he would die alone. Captain George W. Lloyds, for 50 years caretaker of Thom as Palne's monument In New Ro-helle, took up his residence at the County House at East View yesterday. He Is not a pauper, and will pay his board to the county of Westchester. His wife died two years ago, and shortly after his sister, who lived with him, became deranged and was committed to an In stitution. Fearing death might over take htm any day, he wanted some one at the end. as he has something im portant to reveal before he expires. In timate friends have tried to extract his secret, but have failed. For more than half a century Cap tain Lloyd guarded the tomb of Thomas Paine. There was no pay attached to the position, yet he visited the grave of the frco thinker regularly during all the years, to see that it was not dese crated by religious fanatics. In the years which Captain Lloyd spent in charge of the monument he became widely acquainted with the free-thlnk-lng clement throughout the country, and sent many of them Inkstands and souvenirs which he .carved from the wood of trees which grew near Palne's grave. Iroquois Victims on Law's Delay. CHICAGO. Dec. 31. Defects In the present system of enforcing the law, by which the persons held as respon sible for the Iroquois disaster have for three years escaped trial, and the need of a personal interest In public affairs on the part of the Individual, were pointed out by the speakers at the memorial service held by the Iroquois Memorial Association yesterday. A note of discouragement crept into the address of J. E. O. Pridmoro, the newly elected president of the associa tion, because of the failure of the per sons to whom the association has looked for assistance in the further ing of the chief aim of the organiza tion that - of building a suitable memorial for the Iroquois dead. America's Diamond Imports. NEW YORK. Dec. 31. Upward of $43. 000.000 has been paid for diamonds and other precious stones imported at New York in the present year, as shown by figures compiled by the customs authori ties preliminary to the annual report to be sent to Washington. This exceeds that of the last calendar year by $6,000,000. Since 1868, when the first gem was ex ported from the Cape of Good Hope, the United States has paid, according to fig ures just compiled, about $325,000,000 for diamonds, and this is one-half of the amount of cash which South Africa has obtained for Its entire supply of precious stones sold to all parts of the world. The figures represent what the importers pay. HAVE YEAR Freight and Passenger Traffic on All Lines Greater Than in 1905. BUSINESS STILL GROWING Traffic Handled by Portland Term inal Yards 10 to 15 Per Cent Heavier Than In Lewis and Clark Fair Year. The year Just closed has been an un usually prosperous one for tlm rail roads entering Portland. As the sys tems centering here only reflect the general prosperity of the territory served, the statements of officials of the record traffic of the past 12 months form a striking commentary on Indus trial conditions. Perhaps the great Increase In ton nage handled by Oregon railroads has been most apparent In the yards of the Northern Pacific Terminal Company, which have been congested to the limit for months. There has been a great Increase In the cars handled there dur-t Ing the year over last year's business.' The number of freight cars entering the local terminal yards during the -past year is probably from 15 to 20 per cent greater than during 1905. Figures are not yet available for the year, but the Increase has been such as to embarrass the management. Dur ing the next few months it Is expected to have additional tracks, freight sheds and sidings that will provide for any reasonable Increase In traffic during the next few years. The terminal company has Just put a new 140,000 pound switch engine to work, which was built by the American Locomotive Works, and cost $14,000. Two similar locomotives have been ordered for de livery In August. The lumber business has made the greatest advances in the tonnage rec ords of the railroads. While the Southern Paciflc reports that castbound traffic has increased about 50 per cent over last year, the lumber business has gone ahead until the increase amounts to over 70 per cent. Growth of Traffic Remarkable. "The growth of general traffic dur ing the year Just closed has been re markable," said W. D. Skinner, assist ant general freight agent for the Har riman lines. "Unquestionably the growth of Oregon during the coming year will be greater than during any previous 12 months. I think it Is fair to anticipate a greater proportionate growth than any other State. To my mind 1907 brings the brightest pros pects of any year in our history. "The outlook is very good for gen erally continued prosperity and an In creasing volume of business in all lines, but particularly In the lumber traffic and other construction ma terials." Despite the very large passenger travel during the Exposition year. 1905, the past year has surpassed the travel then, according to William McMurray. head of the allied Harriman lines in this territory. "The past year has been the record one for the passenger business In the Northwest." said he. "The present great prosperity for this section has been brought about largely by the Im petus given by the fair and the large amount of special advertising this ter ritory received. The Exposition called the attention to this part of the coun try of people from all over the world. These effects will be felt for years to come. The very low rates made by the railroads and the follow-up advertis ing helped materially. "Another factor that Is helping the Coast Is the effort of the railroads and the commercial bodies to organize and secure conventions of various kinds for this part of the country.. There is no advertising better than these gather ings, for people who attend go back homo and speak enthusiastically of what they have seen. I was surprised during my recent visit to the East at the amount of inquiry about Oregon. The coming year will undoubtedly bring even a greater business to all lines coming to the Coast." Record for 1905 Surpassed, The Northern Pacific passenger de partment reports greatly Increased business in both passengers and freight during the year Just closed. In speak ing for the passenger business, A. D. Charlton, assistant general passenger agent, said: "The business of 1906 surpassed that of 1905 and this is significant when the huge fair business is taken into ac count. The prospects for the coming year are very bright." C. W. Stinger, city passenger agent for the Harriman lines, said more tick ets have been sold from his office dur ing. 1906 than in 1905. This did not look to him as if there has been any slump following the Exposition. The whole year shows an increase in busi ness, and the outlook was never so fa vorable. William Harder, general agent for, the Great Northern, says the business of his company out of this territory has Increased 30 per cent during the past year. "Every month of 1906. shows an Increase over the same months of 1905." said he. "The outlook Is ex tremely gratifying." The passenger business on the North ern Pacific has grown to such propor tions that If it continues as It has, a new passenger train between Portland and Seattle will be put in to supple ment the service given by No. 7, ar riving at 4:30 P. M., and No. 8, leaving at 8:30 A. M. , In addition to the Initial .lines, a much larger business for 1906 than during any previous year In reported by all the intermediate roads. Fanning's Murderer Got Large Sum: KANSAS CITY. Mo., Dec. 31. The po lice today profess to believe that the mur derer of Thomas W. Fanning, the aged recluse, who was found dead in his home in the southeastern part of the city here yesterday, took $20,000 In Government se curities or currency and gold, supposed to have been kept in an old chest. It Is known that Fanning never placed his money in banks. No clew to the mur derer has been found. RAILROADS PROSPEROUS