Hwnitij: jjj (BwgMim VOL. XL VI. SO. 14,422. PORTLAND, OREGON, WEDNESDAY, FEBRUARY 27, 1907, PRICE FIVE CENTS. 1 HARRiMAN TURNS HIS E0II5 All FISH Tells Cause of Enemy's Deposition. MISUSED FUNDS OF RAILROAD Boldly Declares World-Embracing Ambition. ADMITS SINS OF MAGNATES I11 Abont Rockefeller Ieal and JPelayed Dividend Asserts Right . to Buy Koad Wants More Regulation. EARNINGS STILI, INCREASE. OMAHA, Neb., Feb. 29. (Spe cial.) A continuance of the remark able prosperity of the Union Pacific and Its auxiliaries in Rhown by the official report of the earning of the road for the month of December, which records a substantial icaln over the corresponding- month of J AOS. The grots receipts for last December were 16.419,033.95, a Rain of $S43, R3n.:i over December, 1905. Ex penses and taxes were $:i,.",77, 916.44, an increase of tt5,R6r..4S, making a net increase of receipts over ex penses and taxes for the month of 1217.970.73. For the six months ending Decem ber 31, the report shows the receipts oror expenses and taxes were $1S, Si'.".inr,.12. as compared with J17.19R. M4.4:! in the corresponding; six monthB of 190S, showing a net In crease of f 1,613,3M.60, or nearly 10 per cent. NEW YORK, Feb. 26. An assertion by E. H. Harrlman that Stuyvesant Fish whs deposed from the presidency of the Illinois Central because of mis conduct as to the funds of the com1 puny was a leading feature of today's session of the Interstate Commerce Commission. Mr. Harrlman was the only witness of the day, the events brought out by hU testimony making the hearing a memorable one. Other features of Mr. Harriman's testimony follow: A continued refusal to answer ques tions relating to individual stock transaction. .Explanations of the transfer of 300,000 shares of Southern Pacific stock to Wllllnm G. Rockefeller dur ing the attempt of James R. Keene to secure control of the road, and of the delayed announcement of the divi dends on Union Pacific and. Southern Pacific. Attempts of the Government to show that the Union Pacific charges unfair rates, stifles competition in the ,,ast territory traversed by Its lines and its dividend of 10 per cent and Its ex penditure of $240,000,000 on better ments came from an unfair toll on Its patrons. Hold Academic Discussion. ! An academic discussion of railway regulation by high authorities on Ither side, that ran from a plea for legalized .combinations of railroads tinder "Government supervision to a suggestion that the Government con trol ratlway stock issues. A charge and an admission that the misconduct of the railroads created the popular anger that moves deter minedly for their regulation. A charge that no other country In the world Is so hostile to large trans portation Interests. An assertion that the purchase of the Southern Pacific by the Union Pa cific had given the Southwest ten years' advantage in development and that the failure of the Union Pacific to eecure the Northern Pacific left the N'orthwert ten years behind where it FISH BAROV. That salmon bill shortened our Ash ing, but stay; Before I sot done, it waa aafe put away. On Rogm or Columbia w sure are the stuff; We care not for hatching, just so we've enough. would have been if control had been J obtained. All this ended In a remarkable scene where the Government and the man stood confronted. The day's events gave a vivid and intimate realization of the problems of swollen wealth and railway regulation. It made a notable contribution to the financial history light and dark of the time. Mr. Har rtman's examination was conducted by Frank B. Kellogg of St. Paul, special counsel for the Government. Kxpluins Deposition of Fish. The statement of the witness as to Stuyvesant P'lsh came in the middle, of the morning session. Mr. Kellogg, in reference to the Illinois Central, spoke twice of the "squabble" be tween the witness and Mr. Fish. "One minute." exclaimed Mr. Harri man. "I will tell you how the presi dency of the Illinois Central was changed If you want to know." Mr. Kellogg remarked that It was en tirely immaterial, but Mr. Harriman was aroused and went ahead. I wish to prove to you that It had noth ing to do with the Union Pacific, that change in the management or change of the presi dent. That the change in the presidency of the Illinois Central occurred after the acqui sition of the Illinois Central stock by the Union Pacific was merely a coincidence. There has been no change in the management of the Illinois Central. If the Union Pacific had not . disposed of a certain amount of its holdings of securities and had the money to Invest in like securities, it never would have acquired the Illinois Central. In 1903, he said, he was approached by several directors of the Illinois Central, who asked him as to the advisability of reporting several acts of President Fish to the boardi with a view to having the board recommend his resignation. Mr. Harrlman says he took steps to smooth over the difficulty. It appeared, he said, that Mr. Fish had used his official posi tion to further his own interests, but he (Mr. Harriman) prevented any action at that time. Fish Used Illinois Central Funds. Mr. Kellogg started to resume the ex amination, when Mr. Knapp leaned over and addressed Mr. Harriman in a low tone. His question apparently related to the Fish incident, and Mr. Harriman said: "Yes, in 1903 Mr. Fish deposited over J500.000 of Illinois central funds with the Trust Company of the Republic. We, the directors. Immediately directed the secretary to withdraw this money and it was done." Mr. Harriman said that later in the same year Mr. Fish deposited with the Trust Company of America large amounts of Illinois Central funds to "pad the trust company's statement." Notwithstanding the board's action, continued Mr. Harri man, in 1904 Mr. Fish again began to deposit money of the Illinois Central with certain trust companies "in order to pad statements." Mr. Harriman went on: In addition to that, he loaned to himself a large amount of money during that Rum mer without the knowledge, I believe, of the board of directors, and it was based on these things that the matter was taken up with the intention of having Mr. Fish de posed. 1 interfered in the interests of Mr. Fish, loaned him f I.nti.uoo to take nip his obligations to the Illinois Central and let it remain with him for two years. He paid it back gradually until the securities which he had up appreciated in value and he could arrange for the matter somewhere else or dispose of some of it. The trouble with' Mr. Fish was that lie looked upon the Illinois Central as his per sonal property. He told how uIr. Fish hadl contracted for the construction of the Indianapolis & St. Louis railroad and committed the company without the consent or action of the board, when the board had pre viously expressed its disapproval. In explaining the sensational incidents, Mr. ' Harriman for the first time spoke with warmth. Refuses to Tell of Slock. Peals. There was a renewal of the objec tion to the Commission's right to in quire Into Mr. Harriman's private stock transactions, and the mattev took the same course as yesterday. The Commission ruled that the ques tions must be answered; then followe 1 a formal refusal and the record was formally completed. The first objec tion was to revealing the amount of holdings of Mr. Harriman and his as sociates in the Santa Fe. and the sec ond as to the existence of a pool or private understanding as to stock In the Illinois Central. The most Interesting objection was as to possible speculation in Union Pacific slock in July and August last, and par ticularly on the day the announcement of the dividend was held up. Mr. Harri man first testified that he knew of no speculation and explained that the direc tors of the road already held much of the stock. Commissioner Lane wanted to know If the witness had himself bought (Continued on Page 4.) THESE CITIZENS ATTENDED THE WATER BARON. Was I up at Salem? Well, rather; I guss. Without me my grabbing would be a sore mess. The streams are the public's? Oh, say now, get wise; Remember, I've got 'ca and look at my size. HERMANN LEAKED TO LAND THIEVES Informer About Frauds Was Betrayed. THREATENED WITH YENGEANCE Lumber Company's Methods Exposed in Vain. DEMAND FOR EXPLANATION Letters Between Hermann and La borer Who Believes in Ijhw Show How the Blue Mountain Timber Was Stolen. OREGON! AN NEWS BUREAU, Wash ington, Feb. 26. Interest in the trial of Representative Hermann was revived to day by the introduction in evidence of letters written him in 1901 by Benjamin T. May of La Grande, calling his atten tion to specific land frauds In Oregon and a later letter criticizing Hermann for omitting to make an investigation of the alleged frauds, and also for having made known to interested parties the name of the informer. Mr. "Worthinjrton for the defense fought the introduction of the letters on the ground that one of them bore the of ficial red letter headings used in the I-and Office as distinguished from the blue letterings of the Commissioner's stationery. He said that the prosecution had not proved that a copy of such let ters was In the destroyed letterpress books. District Attorney Baker explained that it was Intended to show that Hermann had answered the first letter himself and that, when accused of bad faith in divulg ing the name of the informer, he had sent the letter to a division to be answered officially. Exposed Blue Mountain Fraud. After their identification by May, the letters were read to the lury. The first was from May to Hermann and informed him that sawmill owners were securing title to public land in the Blue Mount ains by fraud. Their plan was to get an employe to file on a certain tract and, when the claim was proved up, the em ploye was to deed the property over to them and receive $50 for his work. One firm kept a man employed to look out for the best timber land and to secure it in this manner for his firm. In the year preceding the writing of this letter May charged that this firm had placed on record about 60 deeds seeured in this manner. May concluded his letter with the statement that he was a poor laborer and had no ax to grind and only desired to keep out land-grabbers. Thanked and Betrayed Him. Hermann, replying to this letter. thanked May for the information and said he had been informed) that such violations of the law existed elsewhere in the conn try. He said that he had given Instruc tions to the officials of the local land offices to make investigations and had held up all entries where there were cir cumstances tending to indicate fraud. "It is my desire," wrote Hermann, "to see that the public land administration i3 kept free from blemish and that the laws are impartially enforced as to all." A characteristic postscript told May that he was sending him a map of Ore gon. "How Is This? Please. Explain." October 8, 1901, May wrote to Hermann as follows: I have come to register a kick this time, for I think that I have one coming. Little did I suppose when I wrote the former let ters you would betray me to the parties, but behold, on the 0th of this month. Rob. ert Hmtth. general manager of the Grand Ronde Lumber Company, of Perry, Or., came to me where I was working at the sugar factory and asked me why I had reported his company to you. He told n I was a poor man and that he would roaJta It hard for me to live in this part of the country, which is a fact, when I can't write FOOD BARON. We shave 'em on food, but that's our own biz. The Burns bill we fixed" in clever ways, viz.: "We shave 'em the same now as ever; you see, If buyers don' t know, who's wiser ? Te he! a letter to an official at Washington unless they report the same back to the parties here. ' Now. why did you do this? I thought you were going to Investigate land frauds, but how are you going to do It when you notify the parties first? If you had not given this away I could have convinced you of the facts in the case, but It is all off now, for Mr. Smith Informed me that I could do nothing but he -would find it out. How Is this, anyway? Please explain. In Strictest Confidence. To this letter an official reply was made, showing that Hermann had turned it over to a subordinate official to answer. It was denied that the office had made known to the lumber company the name of the person who had furnished the De- X Thomas Bailey Aldrlch, the Poet, Who Is Near Death. partment with information and it was stated that the Land Office held all such communications in strictest confidence. Richard Haufrhton, of Myrtle Point, Oregon, identified a number of letters that passed between him and Hermann relative to the adjustment of the claim of the Coos County "Wagon Road Com pany. The letters were innocent in char, acter and contained nothing of special interest, except to Haughton. Dr. Rcger, former assistant secretary to Herrmann, testified that Hermann bore an excellent character and had many friends. Elliott P. Hough, secretary' to Hermann, Identified a number of letters received by Hermann from various persons in Ore- (Concluded on Page 2.) CONTENTS TODAY'S PAPER Foreign. Grand Duko Nicholas of Russia narrowly fscapfn bfitvjf bTovn up. .Vf o. Nuncio' correspondence shown church med dled In French politico. Pap r. Stoessel called coward by General Smirnoff. Page 5- - . . . National. President rejects all canal bids, Stevens re signs and Goethals is mad chief engi neer. Page 3. House begins debate on ship subsidy. Page 5. Senate passes Aldrich financial bill. Page 3. Politics. Shaw announces he is still receptive candi date for President. Page 2. Domestic. Harrlman tells why Fish was deposed and " makes startling admissions. Page 1. Mrs. Thaw scores on Jerome again and evi dence discrediting her is shut out. Page 1. Letters produced in Hermann trial show damaging facts. Page 1. Hakin writes on great graduates of small college. Page 1. St. Paul road stops improvements till pop ular wrath cools. 1'age !i. Sixteen children and teacher burned to death in Montreal school. Page 2. Pacific Coast. Hoisi and Senate at Olympia are at log gerheads; serious trouble will follow. Page 0. Governor Chamberlain continues to wield sharp veto ax. Page 7. Flag of Japan hissed in Seattle theater. Page 6. ( Efforts made to prove Adams was in the country when Tyler was slain. Page 6. Belllngham lumber, shippers promised relief by President Hill. t Page . Boise House reduces two-mile limit law one half and puts Governor in a hole. Page U. Portland and Vicinity. Caxadero power plant of Portland Railway, 3ight & Power Company put into oper ation. Page 10. Women driven out of notorious Paris House find new quarters. Page 14. United Railways project is not affected by failure of C. E. Loss. Page 11. Dr. I. D. Driver will publish his lectures tn book form. Page 5. Time for pruning roses and trimming trees has arrived. Page 5. Judge Frazer severely censures Charles Mays. Page Irt. W. T. Fenton resigns from Multnomah Bar Association and rumors of friction are rife. Page 10. , " ?! 1 OREGON SENATE WITH HIGHLY PLEASING RESULTS TIMBER BARON. We gobbled the timber and grabbed it when cheap. , The price we've advanced with many a leap. . It's part of the business for us to dodge taxes. That's why for the Beals bill we got out our axes. CAN NOT DISPROVE MRS.THAW'S STORY Jerome's Efforts to Dis credit Blocked. HUMMEL'S EVIDENCE BARRED Young Wife's Schoolgirl Diary Read in Court. WHITE'S MONEY RETURNED Mother Csed It. Daughter Did Not. Thaw Always Excited by Seeing White Embassy Secretary in the Limelight. NEW YORK, Keb. 26. Mrs. Evelyn Nesblt Thaw's long ordeal on the wit ness stand at the trial of her husband for the killing of Stanford White ended today. Mr. Jerome finished his cross examination, which had lasted thiough nearly five court days, at the morning session. The re-direct examination and re-cross-examination this afternoon were brief. The District Attorney will tomorrow morning begin his cross-examination of !Dr. Britton I. Evans, one of the de fense's alienists. Drs. Wagner, Deemar and Bingaman will be called In rapid order. The trial at last seems to be entering on its final stages. Got Nothing Out of Hummel. The completion of Mrs. Thaw's ex amination followed the unsuccessful effort of the prosecution to draw from Abraham Hummel certain facts relat ing to the affidavit which Mrs. Thaw is said to have made In Hummel's law office. In this affidavit it is declared there was an allegation that Thaw had beaten the girl while abroad in 1903, when she told him there was no truth In the story about her relations with Stanford, White. Mr. tielmas, for the defense, blocked practically every question put to Hummel. The witness got no further than to say he knew Mr. Thaw; that she came to his office October 27, 1903, and that he dictated to a stenographer while she was there. Collateral Evidence Barred. Justice Fitzgerald held that under the rules of evidence covering Mrs. Thaw's testimony the introduction of collateral facts was not permissible. The District Attorney Is not allowed to controvert her testimony in any way, but may test her credibility. Mr. Jerome said in open court that he realized that even If he could show Stanford White was in Europe the night Mrs. Thaw declares she was assaulted by him, he would not be allowed to intro duce such testimony. It was reported that Mr. Jerome has much testimony to offer in rebuttal, but, as It is nearly all collateral, he will not be allowed to place It before the jury. Mrs. Thaw today was given the op portunity to clear up the odds and ends of her story. Mr. Jerome intro duced in evidence her school-girl diary and read certain extracts from it. They caused many smiles in the court room, reflecting as they did the young woman's views of life during that period. Never Used White's Money. Mrs. Thaw denied again that she had ever used a penny of the letter of credit Stanford White gave to her under seal before she went to Europe with Thaw and her mother. She de nted that she had ever been mentioned In any way In connection with the James Garland divorce ee. She said Stanford White paid all lir brother's school expenses and Identified . receipts and checks signed by her mother, showing that the latter drew more than $3000 from Stanford Whites funds during the year rrom May, 1902, to May, 1903. Evelyn was at school during most of this time. Just before Harry K. Thaw was GAS BARON. -My franchise, 'tis true, is some fifty years old. But think of the gas In that time I have sold! The cusses of Adams we muzzled up fully Joe Teal and Sharp "Linthy" and Swigert served bully. taken out of the courtroom, he handed the reporters the following note: "Mrs. Thaw and Lady Ashburton, formerly Frances Belmont, were not friends. They were simply acquain tances when both were playing at the same theater." JEROME BLOCKED EVERY TIME Efforts to Discredit Mrs. Thaw End In Failure. NEW YORK, Feb. 26. When the Thaw trial was resumed today. District At torney Jerome called the attention of Jus tice Fitzgerald to a letter he had received from J. D. Lyon, vice-president of the Union National Bank of Pittsburg, who was a witness two weeks ago. Mr. Lyon had custody of the Thaw will. He was requested to send all of Thaw's letters and papers he had in his possession. To day the District Attorney said he had a letter from Mr. Lyon stating that Mr. Hartridge, of the defense, had written him saying no letters or papers of date subsequent to June 25. 1906, were desired. Mr. Jerome asked Justice Fitzgerald to make an order directing Mr. Lyon to send all the papers. Mr. Hartridge rose to make the statement that before writing to Mr. Lyon that he did not want papers after the given date, he had a conversa tion with Mr. Jerome and the latter said distinctly that he did not care for the letters and papers aiter June 25, last. "It is very unfortunate that we have these continual misunderstandings," re marked Mr. Jerome. "It is unfortunate," replied Mr. Hart ridge hotly, "but it is a fact that I wrote to Mr. Lyon relying on your statement." Justice Fitzgerald said he had no au thority to Issue an order to the witness, who is now out of the court's jurisdiction, "Unless he returns for cross-examina tion," said Mr. Jerome, "his direct test! mony will have to be stricken out, and with it the will and the codicil of the de fendant." "I'll stand under oath that the District Attorney told me he did not want the let' ters," again interposed Mr. Hartridee. After further argument, Mr. Hartridge declared the court s time was being wast ed, for if Mr. Jerome how wanted all the letters the defense would so instruct Mr. Lyon. Hummel's Memory Refreshed. The matter of the letters having been disposed of, Mr. Jerome directed that Abraham Hummel, the lawyer who drew up the affidavit to which Evelyn Nesbit is said to have sworn and which chared Thaw with cruelties during their 1903 trip to Europe, take the stand. "Do you know Evelyn Nesblt Thaw?" "Yes." "When did you first see her?" "Sometime in 1901 or 1902." "Where?" "I don't remember exactly." "Was it at your office?" "Not the first time." "You knew her before that?" "Yes." "Did she go to your office on Octo ber 27, 1903?" "She was there late in the year 1903, I don't remember just when." He was shown the photographic copy of the last page of the famous affidavit, which Mr. Hummel said re freshed his memory so that he ' could state positively that the date on which Evelyn Nesblt called at his office was October 27, 1903. Mr. Delmas objected to the use of the photographs, but the court allowed the questions. Dictated Miss Nesbit' Statement. "Did Miss Nesblt have a conversa tion with you in your office?" asked Jerome. Mr. Delmas objected, but was over ruled. "Yes," said Hummel. "Did you dictate to a stenographer while she was present? Mr. Delmas again objected, saying the purpose of the District Attorney appar ently was to contradict Mrs. Thaw, and he could not properly interrupt her cross- examination for that purpose. Mr. Je rome argued the point at some length particularly in answer to Mr. Delmas statement that collateral testimony was not permissible in testing the credibility of a witness. "If I could prove Stanford White was in Europe the night she says she was drugged by him, declared Mr. Jerome, "that would be a collateral fact, and I would not be allowed to put it in evi dence. But if she told Thaw In Paris that there was no truth In her statement about Stanford White, then that would be a material fact, and I should be allowed to put it in." The affidavit contains the allegation that Thaw whipped Miss Nesbit when she told him there was no truth in the statement about White and refused to sign papers making the definite charge against the architect. "I am not endeavoring to impeach the witness, but I want to prove the exist ence of an original affidavit in order to introduce the copy and Intelligently con tlnue my cross-examination," said Mr. Jerome. Justice Fitzgerald overruled the objec tion and Mr. Hummel said he did dictate a statement in the presence of Miss Nes bit. "On the next day, did Jacob Snydecker give you a paper? "Yes." A document was shown the witness and he was asked if it was not a carbon copy of the paper referred to. Mr. Delmas ob jected, and was sustained by the court. Mr. Jerome asked Hummel several oth er questions, where he gave the paper to Concluded on Page 5.) LAND GRANT BARON. We sell at two-fifty an acre? You're crazy. The law says we shall, but I think It hazy. Those bills -for the people we found just as easy! Don't ask how we did it, but see how they please me? JL9. Mini 9JL mm GREAT-MEN FROM LITTLE COLLEGE Famous Kentuckians From Centre. HAS BRED MANY STATESMEN Senator Blackburn Veteran ot Many Debates. STEVENSON ALSO STUDENT John Young Brown. Who Crossed Swords With Butler Greatert Woman Llngnist in the World. Ike Collins and Vanderbilt. BY FREDERIC J. HASKIX. WASHINGTON. Fro. 21. (Special Cor respondence.) Centre College at Danville, Ky., now a part of Central University, is not one of those- great schools which are in the headlines every day by reason of their football teams or the latest gift from a trust magnate, but It has a proud history for all that. Along in the fifties it turned out a class or boys nearly all of whom became famous men. Among those gifted youngsters was J. C. S. Blackburn, who will retire from the Senate next week. Senator Black burn typifies all that Is most picturesque and admirable In old Kentucky life. He was first sent to Congress In 1S74 and was a member of the first Democratic majority after the Civil War. This was the Congress which devised the Electoral Commission as an extra-constitutional method of deciding yie Hayes-Tilden con test for the Presidency of the United States. Mr. Blackburn Immediately came into prominence, and the speech he made against the commission bill at 2 o'clock one morning In 1S76 is admitted to be the best of his many able efforts. Blackburn on Brownsville. Mr. Blackburn's recent cup in the Brownsville episode in the Senate brought him into the National eye. He is also a member of the military affairs com mittee of the Senate which is examining into the Brownsville riot. After 17 of the negro soldiers had testified, all of them attempting to prove that the sol diers were absolutely innocent of shoot ing up the town, someone asked the Senator what impression their evidence had made on him. "My mind has been changed." he said. "After hearing the testimony of these men I am convinced that the man who was killed committed suicide, that the horse which was killed kicked himself to death, and that the policeman who lost an arm bit it off himself. I am beginning to doubt if there is such a place as Brownsville, and am absolutely certain that there was never a United States soldier there." James B. McCreary, the other United States Senateor from Kentucky, is a few months older than his colleague, with whom he was a classmate at Centre College. He has had a most distinguished career, having been in public life almost since boyhood. In 1S75 he made a famous race for Governor of Kentucky, defeating John M. Harlan, now Justice of the United States Supreme Court, after a bitter contest. Mr. Justice Harlan is also an alumnus of Centre College, having been graduated in 1S50, seven years be fore Mr. McCreary. Other Noted Centre Alumni. Adlai Stevenson was a student in Cen tre at the same time, but left before his graduation. He was a room-mate of Mr. McCreary and has always kept up his college friendships. Mr. Stevenson was elected Vice-President of the United States on the ticket with Grover Cleve land and later met defeat for the sama office with Mr. Bryan. While Vice-President Mr. Stevenson gained the reputation of being the best story-teller In Wash ington. One of the most brilliant men of that group of schoolboy friends was John (Concluded on Page 3.) ss FRANCHISE BARON. Perpetual franchises feed me with gold; They've done It o long that I'vej grown very bold. That's why up at Salem I played very slick. And here on the top I am, with my big stick.