tmmt VOL. XjLVI. NO. 14,439. PORTLAND, OREGON, TUESDAY, MARCH 19, 1907. PRICE FIVE CENTS. ait. FRESH BUNCH IN GRAFT DRAGNET Astounding Exposures in Bay City. 100 COUNTS AGAINST RUEF Board of Supervisors Makes "Clean Breast.' DEALS UP.:. IN MILLIONS Traction Company . Mulcted, .of $450,000 Money Taken From Two Telephone ( Companies. Cnrly Boss Kept Hog's Share. SAN FRANCISCO. March 18. As sistant District Attorney Heney said a few daya ago, when asked for a candid personal opinion of his evi dence against officials indicted and about to be Indicted, said: ?'I have stronger evidence against these people than I had In the land fraud cases In Oregon where the jury convicted." i SAN FRANCISCO. March IS. (Special.) Before tomorrow morning dawns, Abra ham Rtief. fallen boss of San Francisco, now on trial lor extortion, will have been indicted' by the grand Jury on vari ous counts, aggregating nearly 100 In number, covering a period of many months and based on bribes running into hundreds of thousands of dollars. With him will, be .criminally Involved Mayor Schmits, almost a score of the officials of the city government and a number of millionaires of prominence in San Fran cisco and In the Kast. Seventeen of the 18 County Supervisors wtrtt before the grand Jury today and confessed in detail graft operations and their magnitude carried on during their -'-"Fnure of office. Principal: among these , wa the award of a blanket franchise to the United Railroads) to transform its cable lines into an overhead trolley sys tem, for which Ruef had mulcted Pat rick Calhoun, president of 'the company, in the sum of J45O.O0O. Grafts Aggregate Million Dollars. The confessions revealed, details ajo of the Home Telephone and Ocean Shorn ' Railroad franchise deals and others less extensive, but involving in the aggregate upward of 0,000,000. ' It is believed that the Supervisors who 'confessed have been promised Immunity from prosecution." ' In addition to these confessions it' Is understood that the grand ' Jury has' ob tained a nurnber of -others from 'present or former city officials, revealing- graft operations by the various municipal com missions under the direction of Ruef and Mayor Schmitx. Direct evidence was given of the payment of JM.OOO to Rucf by prizefight promoters for permits. Amors prominent names mentioned !n this) connection with today's revelation ere those of Patrick Calhoun and Thorn well Mullally. of the United Railroads, and J. Downey Harvey, of the Ocean Shore Railroad. The first witness called before the grand jury this afternoon was James L. Galla gher, chairman of the finance committee of the supervisors, one time Acting Mayor, and Ruef's direct agent In dis tributing bribes among his colleagues. He was followed by Andrew M. Wilson, busi ness man, former Ruef supervisor, and now State Railroad Commissioner. They were succeeded on the stand- Jby Thomas Lonergan and Colonel Charles Buxton, both prominent' supervisors. Then in turn the testimony of the other super visors, with the exception of Rea was heard. It is said that Rea was the only member of the board who had refused to participate in the grafting. Tales Told Are Astounding. The story given to the grand Jury and Prosecuting Attorney Heney Is almost unbelievable. Deals hitherto barely sus pected and deals absolutely unknown were divulged with an amplitude of ex planation and wealth of facts that amazed the inquisitors. First and most important, the purchase of the city by the United Railroads, through its president. Patrick Calhoun, is known. The price paid for the franchises which permitted the United Railroads to Inflate its stock Into the millions by turn ing its cable lines Into a trolley system was $450,000. Of this Immense sum the supervisors received but a small share, while the bulk went Into the pockers of Abe Ruef and Mayor Schmitz. Ruef demanded $150,000 from Patrick Calhoun to carry through the transaction, and this money was drawn by the United Railroads In Installments, calculated to be email enough to divert suspicion. Ruef specified that $85,000 of this was to go to a mysterious person whom he Insisted had to be "squared," $85,000 more was set aside for the Supervisors, and this sum was placed in the hands of Gallagher by Ruef. Gallagher retained S.E.000 for him self, $10,000 was given to Daniel Coleman, $10,000 went to Wilson and other Super visor received $00 each. Still others were given as little as $3000. A few may have received nothing. After subtracting the $$$.000 for the Supervisors and the $83,000 for the person Ruef insisted must be taken care of, but who may never have received the money, (4MW0 was laft fo be di Tided jxweun Mayor Schmitz and Ruef, each of them receiving about $140,000. Ail this boodllng was carried forward while the city was yet In the throes of the social convulsion following the earth quake, and while the very existence of San Francisco was still threatened. The proposal, came directly from the United Railroads, and Patrick Calhoun, presi dent of the corporation, while he did not personally appear In the negotiations by which the money was delivered, engi neered the purchase himself. ' ' But the corruption surrounding the history of the franchise granted to the Home Telephone Company was even more damnable, and explodes the cher ished proverb that "there is honor among thieves." The Board of Super visors was bought twice, once by the Pacific States Telephone Company, which wished to keep the rival cor poration out of the city, and once by the Home Telephone Company, which was fighting to get an entrance into the city. The Pacific States Company paid the most money even hired a suite of apartments in which the 5 Adolplx Sprockets, Who Tetia-d Be fore Grand Jury In Graft Inquiry' Yettterday. boodle was griven but the franchise went to the Home Telephone people. This was brought about by the pur chase of Mayor Schmitz and Abe Ruef by the foreign concern, and they, with their pockets well lined, cracked the whip over the Supervisors and forced the granting- of the coveted privilege. Most of the Supervisors had grot $5000 apiece from the pacific states Com pany. A little later the Home Tele phone agents paid a number of the Supervisors $3000 each, but Ruef and Schmitx, having been seen meanwhile, the sum was considered enough to com plete the transaction. Another transaction, which was sus pected, but never proved until today, on the sworn testimony of the Suvervisorial witnesses before the grand jury, is the (Concluded on Page 2.) CONTENTS TODAY'S PAPER The Weather. YESTERDAY'S Maximum temperature, t 51 degrees; minimum. 40. TODAY'S Showers; wlfids mostly southerly. Railroads. Signs that Roosevelt and railroad presidents will reach understanding on new laws. Page 1. President Yoakum interviews Roosevelt and Mellen. will meet him today, page 1. Ripley, of Santa Fe, says Roosevelt is to blame for anti-railroad agitation. Page 1. Hearing begins In Spokane rate case. Page 3. Harriman buys Salt Laice Railroad. Page 1. ' Foreign. Three Emperors willing to discuss disarm ament at' The Hague conference. Page 5. Shah dismisses two ministers at demand of National Assembly. Page 5. Salvador Joins Honduras .axainst Nicaragua. Page -3. ' - r 'ationaV . ' Experts give strong evidence against negro rioters. Page 2. - ; ' Land Commissioner v Balllnger- makes changes among officials. Page 2 .. Domestic. Mrs. Thaw's affidavit read in court;: evi dence to be finished today. Page 1. Haskln tells ' adventures of the Pearcy brothers, page J. . Gold field employers tell reasons for war on Industrial Workers. Page 3. Land Office clerks give' strong - evidence against Hermann. Page 3. Sentence on rich Nebraska land thieves. Page 2. - Governor Hajtrerman, 'of New Mexico, ac cused of land frauds. Pag 4.. Brisbane to start Socialist colony in New Jersey. Page 4- , Pacific Coast. Graft cases, overshadowing all that have gone before, uncovered in San Francisco last night. Page 1. Motion to dismiss M oyer-Hay wood cases be cause of delays dismissed by Judge Wood. Page 7. Washington's State Auditor will withhold Increase In pay to appointive officehold ers. Page 6. Heavy rain storm in Southern Oregon. Page e. T scr ma Cooks and Walters Union demand Japanese employes In restaurants be dis charged. Page 3. Local athletes leave for Spokane tonight. Page 10. Stanford track team will meet Oregon at Eugene. May 3. Page 10. Commercial and Marine. Sharp advance in canned salmon predicted. Page 17. Low record price In Chicago wheat market. Page 17. Wall street calms dowa. Page 17. Portland & San Francisco steamship j.neto cut running time of steamers ten hours. Pago 16- Portland and Vicinity. Scheme on foot to buy rich tidelands on Columbia River above Tongue Point, at low rate. Page 12. Council water committee plans to assess frontage tax for extension of water mains. Page 10. Senator Miller defends Governor Chamber lain for attitude on normal school situa tion. Page 11. Kelly Butte gang must return to work or starve. Page 13. Railroads are entirely unable to handle the immense business now heading toward Portland. Page 16. Peter Garrets will be charged with murder In first degree. Page 11. Great floods in Truckeo and Sacramento Valley Page , - 1 LASHED y Evelyn Thaw's Charge Read Before Jury. VICTIM OF THAW'S FRENZY Case Will Probably Reach Ver dict Friday Night. FINISH EVIDENCE TODAY Delmas Finally Admits Affidavit Hummel Says Mrs. Thaw Made.' and Offers Evidence Thaw Was Insane After Ills Arrest. NEW YORK, March 18. When the Thaw trial was adjourned today, there remained but four expert witnesses to be examined before the taking of evidence closes. Three experts were disposed lit today in a little more than an hour, so it is generally believed the last word of evidence may be entered In the famous case tomorrow. In that event the sum ming up for Mr. Ielmas for the defense ,wlll begin Wednesday morning. District Attorney Jerome will reply on Thursday. Justice Fitzgerald may proceed immedi ately with his charge to the jury or- he may defer It until Friday unless the un expected happens, there, should be a ver dict by Friday night. Beaten Worse Than Supposed. The case for the people was finally closed today by the Introduction of the much discussed Hummel affidavit, which, with the consent of the defense, was read in full to the Jury. The affidavit proved a surprise only In the alleged severity, of the . assaults Harry K. Thaw Is said to have made upon Evelyn' Nesblt during their trip through Europe, in 1S03, when, according, .to. the, testimony, of Abraham Hummel. Miss Nesblt would not sign statements which Thaw had prepared accusing Stanford White of having drug ged her and ruined her. It is said the action contemplated - when- the - affidavit was made was the recovery of certain property which It was alleged. Thaw had wrongfully taken from the girl. Indicat ing the affidavit. Hummel referred to himself as Miss Nesblt's attorney, she be ing reported to have said: "I have received certain letters and cablegrams from Thaw which I have turned over to my attorney, Abraham Hummel." Thaw Crazy When Arrested. When Mr. Delmas began introducing testimony in sur-rebuttal he put upon the stand three persons who saw Thaw, the night of the tragedy and early In the morning after, and they all declare that he either loolted or acted irrationally. To two of them he complained of hearing young girls' voices. The witnesses ad mitted on cross-examination that there were seven women In the station the night Thaw was there and they were making considerable noise, but could not be heard from Thaw's cell. After this testimony had been presented, Mr. Del mas passed Into the final stages by in troducing seven alienists for the defense. UNCLAD Tomorrow's experts will be Drs. Wag ner and Evans, who have heretofore tes tified for the. defense and who will now be asked to give an opinion on Mr. Jerome's long question, and Dr. Charles W. Pil grim, of Poughkeepsie, N. T., president of the New . York Lunacy Commission, and Dr. Miner Gregory, superintendent of the psycopathlc pavilion at Bellevue Hos pital. , .... .. AFFIDAVIT PIT IX EVIDENCE Delmas Gives Vp and Calls New Batch of Alienists. NEW YORK. March 18. When the pro ceedings in the Thaw trial began today District Attorney Jerome offered In evi dence the broken pieces of a photographic negative of the last, page of the famous Hummel affidavit, bearing the signature of Evelyn Nesblt. Mr. Delmas objected to its introduction and began an argument upon the point. - Justice Fitzgerald overruled the objec tion. Mr. Jerome then offered in evidence a photographic, print from the negative. . Mr. Delmas objected to the introduction Sylvester R. Rush, Special Assistant to the Attorney-General of the L'ni-ed States. of the print also, and another long ar gument ensued. Mr. Delmas said the photographic copy of the affidavit could not be introduced to contradict Bvelyn Thaw, for she was not shown the copy on the witness stand and had no opportunity to affirm or deny her signature. Mr. Delmas argued that the copy of a paper was not competent evidence on which to contradict the witness. Mr. Jerome went to some length in ex plaining that the original of the Hummel affidavit had been traced to Mrs. Thaw's hands, and she had said no such .Vper exlsted. Under thee clr.ctin-.Stanoes. he s.id, It should hot b allowed to Introduce secondary evidence. The evidenclary value or photographic copies; he contend ed, had frequently been sustained . by courts. . ..... Delmas Withdraws Objection. Mr. Delmas concluded by saying that if Mr. Jerome would put Evelyn Nesblt Thaw upon the stand and let her say whether she knowingly signed the paper. he would offer no objection to the affidavit going in evidence. For the purpose of argument, Mr. Je rome joined the offer of the carbon copy of the affidavit in evidence with the photographic copy, and Mr. Delmas said his offer to withdraw objection to the af fidavit after it had been shown to Mrs Thaw on the stand referred to the carbon copy also. Mr. Jerome started to reply to Mr. Delmas. when the latter said: "Oh, well, let the whole thing go in. 1 withdraw all objection." Mr. Jerome then read to the Jury the carbon copy of the affidavit. In the affidavit 'Miss Nesblt said she was 18 years of age. During June. 1H03. she went to Europe with her mother at the request of Thaw. They remained in Paris for a time and then went to Bou logne. Miss Nesbit and her mother re mained there while Thaw went to Lon don. He returned for them and they went to London. Then Thaw and Miss Nesblt made a trip to Holland and Germany, (Conclude d on' Page 5. ) !.................... ml ?m - 4 t . - i f i f WrsifritAiwiw-',a f ! SELECTING A MAN TO BELL THE PRESIDENT GROW TO TAKE MEDICINE Railroads May Agree With President. . EXTRA SESSION IS POSSIBLE Roosevelt Working for Better Understanding. HEAD OFF RADICAL ACTION Transportation Kings Eager to Have Legislation Passed Lest the Gov ernment Ownership Craze Grow Irresistible. Confers With Mellen Today. WASHINGTON, March 18. Presi dent Charles S. Mellen, of the New York, New Raven A Hartford Rall . road, arrived here tonlKht and to morrow will confer with President Roosevelt on the railroad situation. Mr. Mellen went Immediately to his hotel apartments and denied himself to interviewers t- 4 WASHINGTON. March IS. (Special.) There are unmistakable and multiplying indications that a "better understanding' between the Government, the railroads and the people, of which so much has been heard pro and con for a consider able time, is approaching realization. Railroad magnates swallowing with some bitterness, naturally, a certain pride that has characterized them, are beginning to knock at the White House door. Some of thenx have had audience with Presi dent Roosevelt already, and, the Ice once broken, they find it not eo hard to seek admission again. President Mellen, of the New York, New Haven A. Hartford Railroad, to to. have his conference to morrow afternoon, and after- that it is likely that other railroad presidents who previously were scheduled to visit Wash ington by arrangemeat of J. P. Morgan, and some more in addition, will .trail aleng during the coming week. Strong Game of High Politics. President Roosevelt Is playing one of the strongest games in the Seld of high politics that ever has been carried on by an American President. The depth and importance of it all will unfold a little later. B. F. Yoakum, president of the Rock Island road, paid his second visit within a week to the White House today. The exact nature of his interview with the President is a secret and possibly there will be more or lese secrecy regarding tho conferences with other notables of the railrqad world, for a time at least Extra Session. for Quick Action. In all seriousness, the suggestion has been made within a. day or two that, if further legislation Is to be had sooner or later, the quicker it comes the better, so as to restore confidence and let the rail roads get the financial aid they require to make improvements. It is believed that men who a year ago sneered at Mr. ANXIOUS Roosevelt and his policies will even go so far aa to urge the calling of Congress in extraordinary session to meet the present situation and clear .the atmosphere. Information has come' within a day or two from men who abhor the very thought of Government ownership that they fear the result of the agitation now rampant in the 'States and the grievances that shippers complain of in the matter of being afforded adequate facilities of transportation will make Government ownership a popular iasue in the next campaign. United States Senators and other officials have seen the seriousness of the situation. The shrewd persons who manage great railroad properties, no matter how blind they may have been to public sentiment in the past, are begin ning to appreciate it also. Driven to Ownership by Dlsgnst. . It is declared that the spread of the Government ownership idea is not likely to be based on any analysis of what it really means or consideration of Its fea tures in any respect, but merely upon disgust over car shortage and various Patrick Calhoun, President of United Railns-! Company of su Fran cisco, Accused. f Bribing Abe Ruef. v other troubles which have confronted the country. The people, it is declared, are growing vindictive and may 'rush to the Government ownership . standard out oC pure ill-feeling against the railroads. rather than as a result of reasoning upon the economic questions underlying. BPS HUT CLARK STOCK HARKIMAX ADDS ANOTHER ROAD TO HIS MERGER. . Salt Lake Line Removes Only Com petitor Across Nevada Clark - Syndicate Retains Bonds. SAN FRANCISCO, March 18. The Call will say tomorrow: "Senator W. A. Clark, of Montana, and his associates are out of the San Pedro, Salt Lake & Los 'Angeles road, and E. H. Harriman is the owner of their stock. The story given out in financial circles today says that Harriman has purchased all the shares In the Salt Lake route held by W. A. . Clark.. R.. C. Kerens, David Keith and Thomas Kearns. The quartet of., millionaires retains pos session of $35,000,000 of the road's bonds. of which Clark holds '130.000,000, Mr. Ker ens 3,000.000, Mr.. Keith 11,000,000 and Mr. Kearns .1,000,000. .. . , SAYS MARKET WILL IMPROVE Harriman - Ridicules Idea Union Pacific Has Sold Stock. NEW YORK, March 18. E. H. Harri man returned to this city today from Vir ginia. In reply to "the question whether business of any urgent nature' had called blm back, he said: "No, I returned here because the muddy roads down In Virginia made, employment Impossible. Vv bat do I think of the finan cial situation? I believe it is going to improve from now on. "The decline in the stock market was due to a combination of circumstances a combination of men and circumstances. Some of these men have made a lot of money as a result, but I don't think It will do them much good In the end." Mr. Harriman laughed at the report that during the Tecent liquidation of stocks the Union Pacific had disposed of large quantities of Its stock holdings in other railroad properties. He said there was no foundation whatever for " the story. , SAYS ROOSEVELT DID IT ALL Ripley Blames Him for Panic Santa Fe W1U Retrench. LOS ANGELES. Cal., March 18. In an interview In an afternoon paper. Presi dent E. P. Ripley, of the Santa Fe, who is now at Santa Barbara, is quoted as, saying that President Roosevelt is re sponsible for the present uncertain con ditions In Wall street, and attributes the recent semi-panic to a "brush fire which the President started." Mr. Ripley said that, because of the general antl-rallroad sentiment, the Santa Fe was prepared to Inaugurate a policy of strict conservatism. In the matter of expenditures and that many contemplat ed Improvements in the company's prop erty would nave to await more favorable conditions. Mr. Ripley is also quoted as saying that he believes it Is likely that President Harriman. of - the Union Pa cific, will retire from active railroad life within a year. Mr. Ripley is quoted in part as follows: Z can see no good to come from a meet Ins with President Roosevelt such as has been proposed br J. P. Morgan. If the press dispatches on the subject are correct. The President -must be held responsible for hav ing. started a brush fire that-now apparently has become a conflagration and. while I always have felt his motives to be . of the best, it appears to be too late to stop the fire that now is pretty nearly burned out. Going- back to the subject of the apparent Concluded on- Page 2.) i SBMWWV' ij a. CAREERS 0OT0O E Pearcy Brothers Rulers of Isle of Pines. ADVENTURES IN MANY LANDS Samuel Pearcy's Conflict With Cuban Republic. TREATY HELD UP IN SENATE Josiah Ji.' Pearcy, Explorer' of Co lombia, Father of Ku Klnx Klan, Buyer of Canal Route From the Indians. mm BT FREDERIC J. HASKIN. WASHINGTON, March 13. (Special Cor respondence.) There Is as much Incident in the life story of Sam H. Pearcy and his brother. Captain Josiah L. Pearcy, as ' one would find in the most thrilling fic tion of adventure. Sam H. Pearcy Is the head and front o'f the revolutionists "of the Isle of Pines, that band of Americans which has Insisted that President Mc Klnley and Secretary Hay were correct when they decided that thp island was American territory and that President Roosevelt and Secretary Root are wrong In their decision that it Is Cuban terri tory. Mr. Pearcy has led the fight, against the treaty which gives a quitclaim deed to the island', and for four years has suc ceeded in preventing its ratification by the Senate.. Sam Pearcy was a youth in Tennessee when the Civil War broke out and he joined the Confederate army. He served with Dr.' T. J. Thomas, also a Tennes seean and, when the war was over, they. went to Mexico, where both of them learned to speak Spanish. After two years they returned to Nashville and Mr. Pearcy married Dr. Thomas' daughter. Dr. Thomas' wife died and he went to Spain. At Madrid he set up in the practice of dentistry' and In a little while became the royal dentist to Queen Isabella, and after her abdication to Alfonso XII. Two years after he went away- a message came to Tennessee that Dr. Thomas had died of cholera. Thomas Returns From Death. Twenty-five years later an old man came to the door of the ' warden's house of the Tennessee State Penitentiary. Cap tain Josiah L. -.Pearcy, brother of Sam, was then warden. ' The old man asked: "Joe, don't you know me?" It was Dr. Thomas, whom they had ' thought dead for. a quarter of a century.' The old man asked for his daughter and Sam. and In the course of time took the . whole family back to Spain. They visited Balboa, Madrid and other scenes where the doctor had amassed a large fortune. He is now 82 years old. As soon as the war with Spain ended in 1898, Sam Pearcy went to Havana and opened a commission house, dealing large ly in agricultural implements for the de vastated plantations of the Island. The Spanish people of Cuba feared they would be despoiled of- their property and there was a general exodus to Spain. The Isle of Pines was owned largely by those who ' wished to go back to Europe, and Pearcy obtained options on 80,000 acres, went to New York, organized a company and got ' the money In one day to buy the land for the Isle of Pines Company, of which" he is now vice-president. The company has since increased Its holdings to 160,000 acres, about one-fourth of the total area of the island. - Struggle for Isle of Piues Sam Pearcy early came Into conflict: with the Cuban government- He baa " been arrested not less than 60 times for trivial violations of Cuban regulations. His yacht was taken away from him and he has been harassed in every possible manner. Nevertheless, he has kept up his fight and is still contending for the little ."Treasure Island" to be declared a part of the territory of the United States r according to the interpretation originally placed upon the Treaty of Paris by the State Department. In this work he has been ably as sisted by his brother. Captain Josiah L. Pearcy. It was through the latter that Representative James D. Richardson, then leader of the minority in the House, became Interested in the Isle of Pines matter and Induced Senator Morgan to take up the fight in the Senate. Mr. Morgan has been successful In preventing ; any action whatever, and the opposition to the treaty says it is increasing in i strength all the time. Captain Pearcy was an artillery officer in the Confederate Army, serving for a while as Captain and Inspector on the staff of General John O. Breckenridge. After the war he went to Pulaski, Tenn.. i and was one of the nine men who formed the original Ku Klux Klan in the ruins - of the old Carter mansion near Pulaski. At that time there was no' political sig nificance attached to the order, it was merely a Greek secret society modeled . after the Greek letter fraternities of the colleges. . Origin of Kn Klux Klan. When the Ku Klux Klan Initiated its . first new member, it rode through town -in a fantastic masque. The negroes were : thoroughly frightened and thought the world was coming to an end. That was the cue and the Ku Klux spread all over the South. Captain Pearcy has a copy of the original prescript of the organize , tlon, showing, among other things, that the members were compelled to take an oath to loyally support the United States i'S oSd uo ppniouo)