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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Jan. 10, 1907)
VOL. XLVI. NO. 14,381. PORTLAND, OREGON THURSDAY, -JANUARY 10, 1907, PRICE FIVE CENTS. 'S Deny Union Pacific Is Through Line. NOT COMPETITOR OF SOUTHERN Stubbs Contradicted Dy Han- naford and Markham. CAN'T STAND LOWER RATES .MI Insist That Joint Ownership Does Xot Destroy Rivalry for BaMnesi . o Rate Redoc- Hon wuiiout Agreement. CHICAGO. Jin. !UTwo attorneys rep- rnentlntc the Government made deter mined efforts today to induce two traffic managers or transcontinental railroads to admit that a. concentration of ownership means the stlflinfr of competition in rail road traffic. The attorneys were C. A. Severance anfl F, B, Kellogg, ana the trafrtc managers were J. C Stubbs, of the Southern Pacific and Union Pacific eystems, and J. M. Han naford. of the Northern Facitlc Railroad, Both trarno men contended that, despite the consoli dation of Interests that has taken place bftween the Union Pacific and the South- cm Faclflc, and between the Northern raclflc and the Groat Northern, compe tition between the lines -which are under Joint ownership la as sharp today as It ever was, IT. T and S. I. Xot Competitors. The examination of Mr. Stubbs covered all points connected with the history and traffto arrangements of the Southern Pa cific. Union Pacific and many of the al lied lines which are now under the con trol of E. II, Harrlman. Mr, Stubbs as serted from first to last that the Union Pacific never had been an active com petitor of the Southern Pacific on Califor nia business, for the reason that it, had no outlet beyond Ogden over Its own rails direct to California, Such competi tion, he said, aa had existed between the two roan's in the past is still in exist ence. The Union Pacific, he said. Is but a link In the transportation between the Missouri River end California, and not a separate and independent line. In hfs opinion. It never had occupied the latter position, so far as through traffic was concerned. Mourns Over Lcnn Years. When asked If he did not believe that railroad which has a. lariare surplus and is paying. io per cent dividends is not in a position to fat;e the public with lower rates than It has In effect at the present time, Mr. Stubbs. with considerable feel ing, said that, If the "Union Pacific was 4rm road under consideration, he would urge the members of the Interstate Com merce Commission and their attorneys to remember that,, while the Union Pacific ' may be prosperous now, its stockholders had experienced, many "lean years," and that there was no human guarantee that the present satisfactory conditions in railroad traffic throughout the country would be Indefinitely maintained. Upon the subject of stifling competi tion, Mr. Stubbs declared that it was not possible for this to be done, no matter who owned the parallel lines under con sideration. Subordinates, with reputations to make or to sustain, would work for the interests of their lines against alls oth er lines, and competition would un doubtedly follow. He asserted that J. J. Hill, while probably the leading railroad man in the country, could not abolish competition between the Northern Pacific Hnd the Great Northern, because of the 5ersonal-spirit of the men whom he em- vtoys. Mr. Hannafonl expressed similar views xes-ardJnir tile stifling- of competition. The only other witness of the day was M, C. Markham. the traffic manager of the Missouri Pacific. Cmblnntlon Kills Competition. Mr. Markham w8s asked if the L'nlon Ipacifle and Southern Pacific were prior to heir consolidation competitors for trans continental business. He said they were. Before going to the Missouri Pacific. IMr. Markham was connected with the Illinois Central, and he said that both roads were extensive competitors for Pa- clflc CoaRt business originating along the l:ne of the Illinois Central. "Was there any . lessening; of compe tition after the consolidation?" "It was generally understood that the competition was less." Mr. Markham de clared that In his opinion the Union Pa- clflc was not a link in transconti nental transportation, as contended yes terday by the attorneys of Mr. Harrlman. but as long; as the Portland gateway is open, it is a Taciflc Coast line in itself. The witness said, that before the consoll. elation the Union and Southern Pacific lines were competitors for the California fruit trade, and for passenger business also. Mr. Markham was cross-examined by Mr. Mllbum. for the Union Pacific, who took exception to the statement made by the witness ' that he con sidered the Union Pacific an Indepen dent Pacific line: ' He asked the witness If the Southern Pacific, acting as an Inde pendent line, could not give to the Union Pacific a large or small amount of east tound traffic at Ogden- "I don't know whether It could or not 1IN HEN DEFEND HER There are influences at work which would prevent It." "But the Southern Pacific, as an Inde pendent line, might do this?" "It mlR-ht and destroy Itself."' Mr. Mllburn then asked if the Union Pacific via Portland to San Francisco was to be compared to a direct line west of Ogden. As Low Kate via Fortinml. The witness replied: "The rate settles those things, and rates can be made as low via Portland n Ran PrannlcnA oa hi? onv nthPf route." IV UUll A U" "J w.-- ------ Mr. Markham said that, while he was acting as assistant traffic manager of the xi unois Lenirai, i i was uuuci o.uuu -"" traffic originating west of a line drawn from Cairo to the vicinity of Cleveland was to go west via Ogden. traffic orig inating? east of that line to so via New Orleans. Mr. Milburn brought out the statement that In all Pacific Coast traffic origin- V "... J. C. KtuMw, Traffic Dlrwtor of Har- rjman Linn, Witness In the Har arJmaLn Inquiry. atlng on the Illinois Central that line and the Southern Pacific must be factors. his object being to show that, however the traffic went, the Southern Pacific was certain to be an element and could not In all cases be construed as a competl- tor of the l'nlon Pacific. . All Lines Are Competitors. Commissioner Lane asked the witness If he considered all transcontinental lines as competitors to the extent that the Canadian Pacific is a competitor of the Southern Pacific. The witness replied In the affirmative. Commissioner Clements asked when the Union Pacific and Southern Pacific were competing; for- Illinois Central traffic If the rates were identical by both lines "The published rates were the same" be replied. In answer to questions by Commissioner Knapp, the witness said that the only difference to the Illinois Central made by the combination of the two roads was that the Illinois Central was compelled to ship much of the freight via Omaha. which would have otherwise been taken by New Orleans, making a. loss to it of a 400-mlle haul a corresponding loss in revenue. Compete for Coast Traffic ' The next witness was J. C. Stubbs, the freight director of the Southern Pacific system. Answering many questions. Mr. Stubbs said that the rates from Pittsburg to the Atlantic, thence via the Morgan steamship lines and Southern Pacific to California, are the same as those via the all-rail route, but he believes very little freight from Pittsburg. Buffalo or Wheeling ever went that way. Asked whether his Chicago office could not route freight either via New Orleans or Ogden. witness said that the line on which the traffic originated dictated the route. Mr. Stubbs said there was strong competition In Chicago for Pacific Coast business. He was asked If Mr. Nehmeyer, the Chicago agent, was a competitor for this busi ness. He is." "Is he a competitor as between the Union Pacific and Southern Pacific?" 'As much as ever ho was." "That means be was never a compel- rtor?" "Mr. Xehmeyer has always been in structed to ship from this territory via Ogden. If he worked for any other road he violated his Instructions." Mr. Kellogg asked many Questions re- Brardins the competition of the Union Pa cific and Southern Pacific, designed to show that the roads were prior to 1S01, but are not riow, competitors. Mr. Stubbs - answers were not always satisfactory to the attorney. "I understand," said Mr. Stubbs, "what your Idea Is. but I am giving you the facts as I know them." I understand perfectly. Mr. - Stubbs," said Mr. Kellogg, "just exactly what you are giving me." , Tries to PI nr Down Stubbs. Mr. Stubbs declared that the attorney overlooked entirely the . fact that the Union Pacific is a connection of the Southern Pacific. "I don't overlook it at all," broke In Mr. Kellogg. "And." continued Mr. Stubbs. ' ignor ing the Interruption, "they are not com petitors for California t-usincss." "And never were?" "Not according to my theory." "How was It. then, when both roads were members of the pool .on Pacific Coast business, the Southern Pacific took 21 pr cent, and the Union Pacific 30 per cent of the business?" "There were other lines in that pool, you must remember." Mr. Stubbs was asked If earlier In his connection with the Southern Pacific, the Union Pacific had made higher rates to California from points west of New York than from New York itself because the Southern Pacific was compelled to as sume the eastbound haul to New York In order to connect with steamship lines. "That was done." said Mr. Stubbs. "We had to be consistent." He waa asked if at that time the (Concluded on rage 8.) ' If ? i : t , ; i s, . . My V PLEASES PEOPLE, IT Hughes' First Message Worries Old Guard. TRACTION TRUST IN TROUBLE Governor Proposes New Laws to Rule Railroads. GAS COMPANY IS HIT HARD rrospect of Fight Draws Strong Lobby to Albany Hughes Not Kxperlencrd Xa-wmal&er, but Gets What He Wants. N'EW YORK. Jan. 9. Governor Charles FZ. Hushes has started out bis term auspiciously. Hla admirable mess- age 1ms pleased the people and para- lyzed the politicians. , The interesting subjeet of discussion at present is bow many of the reforms which the Gov ernor has proposed will And a place on the statute books as laws. The old Guard at Albany is convinced that It will not like the Governor. "Me Is courteous to all,, but confiden tial with none," grutnbled one Senator. wtio has been accustomed to bavins his suggestions received with marked suc cess. . As was predicted in The Orejonlan some time ago, the Governor intends to devote a grreat deal of time to rem edy In the traction conditions In. this city, and the sugestions he has made on that subject show that he hag eare- fully considered conditions and rem edies. 1 7 . Under the present law, authority and responsibility are divided, the pub lic Is Ignored and the traction com panies run. as many or as few cars u they please. The surface and elevated lines are under the nominal control of the State Railroad Commission, a board consist ing: of five jTiembers. Each receives a salary of $8000 a year, and the ex- penses of the Commission are assessed pro rata upon the railroads' -of the state. The real value of this hoard, except as a comfortable resting place for party hacks, has never been discov ered by the ordinary citizen. It holds frequent investigations into the traf fic conditions of different cities, care fully pores over the evidence and gravely recommends needed reforms. But here is the surprising thing. It has no power to enforce its recom mendations, and consequently the rail - T f t . ttf? vVWi n ' ! ' ' ' roads obey them or not, just' as they see nt. , ". For example, the Railroad Commis sion held a long series of hearings in Brooklyn last Summer. Many " wit- neBses were examined and it was finally decided that the Brooklyn Rapid Transit Company should run more cars. The numbers 'to be added to the different lines at "different hours were carefully specified, and the ordinary strap-hangers expressed great satisfaction. But the railroad com pany paid" absolutely no attention to the orders. of the Commission. And It was not necessary that it should, for the state board had no power- to en force its alleged orders. The control and direction of; the present subway, and those which may heron, iter be constructed, rests in the hands of the Rapid Transit Commis sion,; the only self-perpetuating polit ical body in the state. When the 9 J "X-Jtfr X- V mmx. i J, 31, Hannaford, Second Vice-President of Northern Pacific Railroad, Who TeaUflad In the Hurimm original board was named. It was pro vided In the act that the original members should fill all vacancies that mlgrht occur. And they have done so religiously." The complaint made Is that the members of the board, being In no wa y responsl ble to the people. pay little attention to what they want. Governor Hughes showed himself a diplomat by refraining from throwing rocks at the commission, but he won popular approval by suggesting; that It be hurled out of office. Governor Hnebes' Remedies. .Through members of the - Iegisla ture n-ho re in sympathy With Uiim, the Governor haB prepared a number of bills, designed to carry into effect the reforms upon which he has de cided, lie will not admit that they are his own measures, for he believes that executive, legislative and judicial functions have each their own orbit. But to all intents ana purposes they represent the wishes of Charles K. Hughes. Here they are, so far as they have been introduced or drawn up to date: A bill abolishing the Railroad Com mission and the State Gas Commission, and providing for a new three-headed board to take its place. Abolishing the Rapid Transit Commis- r Concluded on I'brt a. . AN EXPLOSION ABOUT DUE E FIGHT Roosevelt- on Verge of Open Conflict. FOR CONTROL OF COMMITTEE Vice-President Wants Scott, Not New, as Chairman. HIS MAIM HATES ROOSEVELT Fairbanks Trie's to Force Meeting of Xa 1 1 on a 1 Co mm 1 1 tee Rooseve 1 1 Opposes Him as Friend of Corporations, OREGONIAN NEWS BUREAU. Wash ington. I. c?., Jan. 9. There Is a pos sibility or an open break between fresl- (lenl Roosevelt and Vice-President 'Pair- hanks growing out of the fight beinjr made on the deRlgnatlon of Harry S. K"ew as acting chairman of the Republican Xa- tlonal Committee. Senator Soott of West "Vine In la. senior member of the com mittee. Is making a vigorous fight to have the committee called together to elect a successor to G. B. Cortelyou. It being hla belief that such an election would re sult: In his favor, but Scott Is" a rabid an tl-Roosevelt Republican. Scott Is Fairbanks Man. It developed today that the Vice-president has taken off his coat and gone to work to aid Scott, It being his belief that Scott can be landed In chairmanship. The Fairbanks presidential boom would thrive and prosper far better 'than it would with N'ew at the head of the com- mlttee. notwithstanding that New is an Indiana man. F'airbanlca tva anxious to bring about the election- of Scott am chair man in 1S04. but he found himself unable to fore a man into that office who was not acceptable to Roosevelt. 9cott is a died-ln-the-wool Hanna man and In the days when Hanna was chair man of the National Committee Scott waj a. power. Under Oortelyoti, however, he was completely mussled and shorn of all authority. When he resigned, Cor- telyou took care' to see that there was no possibility whereby Scott might suc ceed to the chairmanship. Hut in spite of this precaution and in spite of the President's well-known aversion to Seott, Fairbanks is doing his utmost to get the committee together and then force the election of Scott over the President's pro test. Jtooisevelt Against F'alrbankP. Getting down to bottom facts. Roose- velt does not want to see Fairbanks nomi nated in 1&06, and he Is therefore op- PITH posed "to any move , that will help the Fairbanks hoom. The President knows that Fairbanks would drop all the re- forms that have been Inaugurated In the past five or six years, would relent in the prosecution of corporations, would ease up in the land fraud cases and jn fact would have & kindly interest in see ing that corporate interests everywhere were not injured in any way. Fairbanks is the last man .Roosevelt would like to see In the' White House, because he is the last man among: all the candidates who would carry on Roosevelt's work, This fact being recognized, it is easy to predict that Scott will not -become chairman or the- National Committee, even though he has the support of Fair banks. Heybarn Swings His Ax. Incidentally. It is noted that Senator Heybum of Idaho Is helping Scott to the extent . that he is demanding a call of the committee In order that a successor Colonel Harry S. New, Whow Sue- reslon . to Chair of TfatlonaJ Re pobllcan (omnilllrrr )Iay Catue Quarrel Between Roosevelt and Fairbanks. to Cortelyou may be regularly elected. Heyburn insists that Cortelyou had no authority to designate rt? w u acting chairman and makes the point that no one can act io that capacity until elected by the committee. Nevertheless. New will continue to act until the committee "does meet and, when It gets together, Soott will not be elected to succeed Cortelyou, nor will any other Fairbanks man. If Xew himself Is not chosen, some man acceptable to Roose- velt will be sleeted. CONTENTS TODAY'S PAPER The Weather. TODAY'S Fair and continued cold; east winds. TESTERDAT'S Maximum temperature, 38 degrees; minimum, S. Railroads. Interstate CTomm-rce rommiwilon hear evi dence on Ha rrlman roadu' competition. i'age 1. Minsouri heirjnj suit to dissolve Gould mer ger. Page 4. Santa nnrt L Angnlei shipper Indicted for rebating. Page . foreign. New Shah of Perula arknowledd and sup ported by Britain and Russia. Pag 4. Jso ncillRt ion of the Ma.rlboroughB pos sible. Fafte 5. Assassin of PavlofT runs amuck In attempt n vei National. House .passes appropriation for militia en campment despite criticism. Page 4. Senate debater limitation of railroad men's hours.' f'ag U. Senator Oarter proposes to prevent Hitch cock's suspension of land entries and Senate committee condemns Hitchcock, Page 3. Politics. . Feud probable between Roosevelt and Fair banks about chairman of National Com mittee. Page 1. Searching investigation Into TBailey'a record proposed In Texas Legislature. Page 5. Senators Gamble and Burnham renominated. Paso X Republicans ballot for Senator in Michigan wlthjut repult. Page 1. More lawsuits grow out of New York mayor alty contest. Page 3- Hughes message pleases people, but angers politicians. Page 1. Domestic Explosion of Pittsburg Iron furnace burns 34 workmen to death. Page 1. Iowa town lynches murderer. Page 5. wiiiara deer and Sophie Wolf married, Pag S. Kport. Young Corbett badly beaten In light with Tommy Murphy. Page 7. Illation a 1 Baseball Amorlatlon makes con cessions to Cot Luiigua. l'age T. Pacific Coast. Idaho Legislators vote to accept free tele phone service- from Sunset Company. Page . Oregon will have new truant law. Page S. Eighth annual Angora goat show opens at Dallas, Or. Page 8. Northern PaHfle may sue authorities at Yakima. Wash., for value of stolen coal. Page O. Seattle lawyers father law for imprisonment of murderers, who plead Insanity. Page U. Oil explosion destroys part of Southern Pa. cine passenger train at Junction City, Or. Page 6. Commercial and Marine Good California demand for Oregon onions. Page 10. Cold wave does slight damage to Eastern crops. Page 15. Selling pressure In New York stock market decreased. Page 1&. Portland .to have two itock exchanges. Page 15. UruKana Mani chartered to load flour for the Orient. Page Portland and Vicinity. Subjects of great Importance discussed at annual meeting of Chamber of Commerce. Page TO. Three l.lnn County Representatives will choose today between Davey and Vawter for Hpeaker. page 7. Hood River carries off the honors in apple display at State Horticultural Society meeting. Page t. Police in Johnson case have established neither murder nor suicide theory. Page 10. . Engineer Clarke recommends extension of citv water system to Portland Heights, Page 10. C. H. Gram is re-elected president State Federation of Labor. Page 11. karrlman lines are short of fuel. Page 14. President Hoge reviews notable achievements of Chamber of Commerce during 1906. Page 10. Voters in June election will psss on pro posed bond Issues of 4,125,U00. Page 11. Oregon Assessors favor abolition of state poll tax and would add sum to road tax. Page 7. pori land lawyer frames bill making com pulsory giving of passes by transporta tion companies to all public officials. Pace 11.. MOLTEN IS Race for Life at Pitts burg Furnace. THIRTY-FOUR BURNED ALIYE Burning Stream Overwhelms Most of Workmen. 5 EVEN Of THEM STILL LIVE Explosion Senders Iron, and Men Wit ti I-'lu mlnjc: Clothes 1 1 and "I'erl.-sli Storv of the Sole I' n injured Man. PITTSBURG, -Tan. !. Three worKmen were K i 1 1 ri. h o v -n fntaHy Injured and 24 are missing? as the result of an ex- plosion tonight fit the Eliza furnaces of the Jones & Iauerhlln Steel Works. Gii8. accumulating at the base of the furnaces, became ignited. jn the re- Sllltlng explosion tons of molten metal were showered around the furnace for a radius of 40 feet, overwhelming? the - workmen in a fiery flood. John Cramer. Andrew Featherka and Gustave Keasler were killed. The seven Injured are In hospitals. only one or H Return?, While the mill officials are inclined to believe all of the minnlns men were not cremated in the molten metal, no thing definite Is known as to tMv whereabouts. Only one man. George Knox, has appeared mince the explosion. Ho says- everything; happened ao quickly tli at he doubts whether the men es caped. Chief Peter Snyder, of the Fourth Fire otstrlet, was seriously Injured while directing the firemen to extin guish the- fire wrtleh followed the ex plosion. Snyder " fell from a trestle 30 feet high and received internal in juries. "While responding; to the alarm, a hose- carriage was struck by a street tar, seriously injuring two of the fire men. The windows of the car were shattered. Two women were Injured. Women Fight for Entrance. The scenes about the entrance to the mill were pathetic when the families of the victims learned of the disaster. Women, men and children gathered before the gate and made frantic ef- forta to gain admittance. Several of the frenzied women rushed upon the officers and tried to fight their way into the mill. Children ran throua-h the streets crylnjt that "Father Is dead." Later it became necessary to call additional police, forcibly to escort the women and children to their homes. The officials at the mills refused to allow anyone to enter the yard where the furnace is located. Information- was refused to newspaper men, tire officials saying: that later they might Issue a statement. A heavy guard of foreign workmen was placed at the yard entrance and even the po lice were powerless to Ret past. Kace With Molten Metal. Georfre Knox, the only man believed to have escaped uninjured, said to the correspondent of the Associated Press: 4'The furnace Is one of the Improved. style and 35 of us were working about, never thinking of an explosion. Sud denly there was a terrific roar and molten metal was thrown every place. Streams of it were running in all di rections, and I was confronted with an awful death unless could run faster than the melal could travel. I don't know what happened to the other men. I did not see any of them after the explosion. If they did not run .Quick and fast, all are buried under six feet of molten metal. Charles Bennet, a yard brakeman, who was passing near the furnace on a freight train when the explosion oc curred, gave a graphic description of the disaster. Fall and Meial iiuries Them. "Our train was right near the fur nace," said Bennett., "When the metal poured out of the furnace over the ground, I saw the men running for a place of safety. To the rlfrht . of thn furnace I saw a party of lO men. all of them running wildly, and their clothes a mass of flames. Apparently some of them had "been Injured when the explosion occurred, as they could iiardly run, and several of them tripped and fell. The hot metal ran over them Jn a moment. . "Jui-t at this time, a second explo- slon occurred, and I asaln looked . to the right of the furnace for the men. but I could not see any of them, and I believe all were burned to death. My tralrt wag In the path of the metal, and I was compelled to uncouple th train and signal the engineer to pull ahead." Must Guard Auto Kace Course. PARIS. Jan. 9. Premier Clemenceau has authorised Baron De Zuylen. presi dent of the Automobile Club, to organize a long-distance motor-car speed contest In 19OT on condition that the rare be held over a properly guarded course. The regulations stipulate that not more than 30 liters of liquid fuel foe consumed in a run of 100 kilometers. HEDOH