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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (March 20, 1907)
THE MORMXG OREGOXIAX, WEDNESDAY, MARCH 20, 1907. LOUIS DETAILS DEAL WITH PUTER Was Paid for Hastening Ex amination of Claims in Oregon. LETTERS FROM HERMANN Former Special Agent Gives Up Cor respondence to Government. Got Immunity by Testifying for the Prosecution. WASHINGTON, March 19. Dr. Clark E. Loomls, who is under indictment in Ore Ron in what is known as the Hermann I'uter conspiracy case and also in a fenc. ihg case, was the principal witness in the Hermann trial today. Dr. Lioomis was produced by the Government and his tes timony was regarded as important to show, as United States Attorney Baker stated, that Mr. Hermann had reason to destroy the. letterbooks, for destroying which he is being tried. Or. Loomls said he had been a special spent for the Land Office in Oregon dur ing the administration of President Har rison and was reinstated soon after Pres ident McKinley was Inaugurated, having been out during the Cleveland administra tion. He was dismissed shortly before Hermann retired from the Land Office, ile identified about 25 letters which con stituted a correspondence between him self and Hermann. Admits He Held Up Puter. Nearly all the letters to Hermann, wit ness said, he had marked and regarded an. personal and confidential and learned for the first time today that ihey had been placed in the files of the Land Of-" tioe. The original answers from Mr. Her mann were secured by the Government from the papers of Dr. Loomls. A series of the letters related to alleged falsifica tion of accounts by Dr. Loomis and In one letter he begged to be allowed to re sign. Dr. Loomls admitted that he had "held up" S. A. D. Putcr for JTiOO with which to defend himself for certain reports he had made on 12 of Puter's homestead claims and that he had previously received alike amount from Puter as expense money for examining and reporting on these claims, i'uter has been convicted in the case which Is known as the "seven-eleven" case. He is now here to testify for the trovemment in the present cases. In cross-examination Dr. Loomis said he had not informed Hermann that he received this money. "I would not have dared to." he ex claimed. "I would have been glad enough not to let any one know about it." Negotiated for Immunity. In a series of questions by Mr. Worth Ington for the defense to ascertain if the witness had been promised immunity by the Government's attorneys for testify ing, it was ascertained that negotiations to this end had been carried on, but had coma- to nothing so far as the witness knew. He said an attorney named Hardy had appointed him in Oregon during the pendency of the "seven-eleven" cases and said he could "Hx It." Hardy saw the Government's attorneys and witnesses several times. Finally Hardy told Loomis that the Government attorneys "did not care a d about the 'seven-eleven' case, but if you can tell them anything about Mitchell or Hermann " Objection by United States Attorney Baker Interrupted the conclusion of the remark. It was moved to strike out the answer from the record, but Justice Staf ford allowed It to stand. However, when the witness began to detail conversations regarding immunity he had with Puter after the latter' a conviction, other objec tion were Interposed and the adjourn ment fur the day came before a decision as to admitting them was reached. The witness had stated he had received no promises in the present case. Correspondence "With Hitchcock. Mr. Worthington, for the defense, placed in evidence today certain correspondence , between Hermann and the Secretary of the Interior, dated I'M. in which Her mann, referred the question of creating several forest reserves to the judgment of the Secretary. Among these rserves was the Blue Mountain reserve in Oregon, which had heretofore appeared in the case. In referring the matter to the Secretary of the Interior, Hermann also transmit ted to him the recommendation regarding tlieso reserves from the Geological Sur vey. An attachment was issued today direct ing United States Marshal Hopkins to produce A. F. King, of Seattle, as a wit ness. United States Attorney Baker stated to the court today that King was served yesterday with a subpena, but in dicated his-rofusal to come to Washing ton to testify. CHECK ON JH1GH FINANCE (Continued From Firt Page.) S, Speyer, President Stlckney, of the Chi cago Great Western; B. F. Yoakum, chairman of the board of directors of the Chicago, Rock Island & Pacillc; E. . 11. Harrlman, and Charles S. Mollcn, of the New York, New Haven & Hartford Hallway. All of those persons have made specific recommendations incorporating their ideas on the question whether the President should recommend additional railway legislation, and most of them have urged him to mako a statement defining his attitude In explicit terms with a view to allaying public apprehension. Gen erally there has been little unaminity in these recommendations. Inquires Into Capitalization. He has referred his callers who want information as to his attitude to his pub lic declarations on this subject and has told them that he means to be consistent with what lie has already said. The President says frankly that he Is learn ing all ho can regarding the railroa-1 situation, and that he intends to con tinue to consult with railwuy people and others on the subject. It Is understood he Is making Inquiries on some points pertaining to Federal supervision and control of the railroads; to the question of an appraisement of the physical valua tion of such properties, and to the matter of the issue of various forms of indebted ness. As to the last named, he regards it as perfectly proper, and he sets no objection to a proper issue of obligations for equipment, terminals and betterments, but thinks there should be a careful scrutiny to see that stocks or bonds are issued for such purposes. The President has not resolved on any linal determination as to whether he will make any recommendations to Congress for legislation on any of these matters. The President has made it plain to his callers that . he cannot be expected to outline his policy in informal talks with them, and that inferences as to his at titude must not be drawn from what he says In these casual talks. When he has made up his mind and is ready to tell the public Just what his attitude is on particular, questions, and specifically on the railroad issue, he will do so in a speech or in a message to Congress. Some expressions from him are expect ed on the railroad question during the next few months. The President is sched uled to make four speeches between now and the middle of June, and it is ex pected he will have something to say on the railroad question in one of these speeches. Mr. Mellen left for New England at 5:o0 o'clock this- evening. COMMISSION FOR COLORADO Regulation of Rates and Reciprocal Demurrage Main Features. DENVER, March 19. The Senate to day passed the railway commission bill, which had already passed the House. It now goes to the Governor. The commission is empowered to hear complaints in cases where the railroads are charged with discrimi nations and rebates, change the rates where they are found to be discrim inatory, but such order shall be sub ject to review in the District Court and later in the Supreme Court, should the railroads lose the case and appeal it to the highest tribunal. If the appeal has not been decided before then the order of the commission shall be come operative until a decision has been rendered. There is also a reciprocal demurrage provision in the bill, which allows the collection by the shipper of Jl a day from the railroad for failure to deliver cars within a reasonable time after they have been ordered. The railway is now collecting $1 a day from ship pers who fall to unload cars of freight to them after 48 hours. Another pro vision gives the shipper the right of action against the railroads for any looses that might grow out of fail ure of the common carriers to deliver cars within a reasonable time. These are the main features of the bill. ROCKEFELLER SAYS RAIL ROADS OVERCAPITALIZED. Declares They Should Be Stocked aO Real A'alue, Then AYould Attract Small Investors. PHILADELPHIA. March 19 (Special.) John D. Rockefeller on his trip north frankly discussed the railroad and finan cial conditions of the country and found much to criticise. "Do you think the railroads and other big corporations are at their proper capi talization?" he was asked. "No; they are vastly overcapitalized. That is not a healthy situation. One re sult of it I saw last Summer, while I was abroad. The American railroads needed $200,000,000 to carry on some of their. im provements. They could not get it in this country and they had to let their notes go abroad at about 6 per cent. That in terest must be paid, no matter what happens to" the dividends- the American public is expecting." "Do you believe it is a sound financial proposition to overcapitalize?" "I most assuredly do not. I presume I should not criticise In this respect, for some of those who have done It are friends of mine. I shall probably be called an old fogy for not agreeing with these new financial methods." "If the methods seem unsound to a man in your position, why are they followed?" "Why, I presume there Is a great deal of temptation to make money quickly, but, personally, even if I wanted to work a big stockjobbing scheme, I don't think that I would overcapitalize. The penalty is too great" 'What is your idea of the financial pol icy of a big railroad combination?" "I think that properties should be cap italized at only their legitimate value, and, if that were done, there would be such a feeling of security in them among the general public that we would find men witha little money holding highly profitable stocks Instead of alolwing it to remain at small interest in savings banks. Without public confidence in our corpo rations, of course, that system can be only a dream." A'ALUE OF XORTHEKX PACIFIC Controller ISays It Was $324,675,--186 on June 30, 1906. CHICAGO, March 19. H. A. Gray, con troller of the Northern Pacific Railroad Company, appeared before Interstate Commerce Commissioners Prouty and Harlan today to supplement the informa tion given yesterday regarding the value of railroad properties held by the com pany. He declared that August 31, 1896, when the railroad was sold under fore closure proceedings the total value of the property was J241.0CT.770, of which amount J22.0O5,:O7 was in equipment. There were then 4499 miles of railroad, costing Jo3.575 per mile. On August 30, 1906. the mileage, according to the wit ness, had increased to 60W8 miles, and the officials had expended 1S.231,857 for im provements and 2,O0S,596 for equipment, which had been paid for out of the in come account. When asked for a valua tion of the entire properties of the rail road, Mr. Gray said that he estimated it as being worth $324,676,488 on June 30, 1906. Inquiries regarding the earnings of the road brought out the information that for 15 years prior to 1SP6 the yearly earnings upon the outstanding capitalization amounted to five-eighths of one per cent but in the year ending September 1, 1906, the earnings were 4.6 per cent. Mr. Gray was asked a few questions re garding the -bond Issues of the railway company and the way interest on bonds was paid. Will Not Confirm Clark's Sale. LOS ANGELES. Cal., March 19. None of the officials of the San Pedro, Los An geles & Salt Lake Railroad were at the company's general offices in this city to day, and no official statement could be obtained in reference -to the reported sale of the stock by Senator Clark and asso ciates to E. H. Harriman. Men who are high in authority in the management of the road, however, denied that there was any truth in the report. J. Ross Clark, brother of Senator Clark, and second vice president of the road, left the city last night for Nevada to view the scene of the recent washouts which had tied up the through line completely for a month. KISER FOR SOliVEMR PHOTOS. Northwest Scertery Lobby Imperial. Good tea and coffee pay ten Uines over Schilling a Htmu FLOOD DAMAGE IS OVER A MILLION High Water in California Is Worst Experienced in Many Years. SCORE PEOPLE DROWNED Cities of Oroville and Stockton Are Almost Entirely Inundated Crest of the Flood Reached at Early Hour This Morning. SAN FRANCISCO, March 19. Reports tonight show that the waters of the San Joaquin and Sacramento Rivers are subsiding, but the situation is still grave. In a few places the levees have broken and lowlands are flooded. Much loss of property has resulted. Consid erable stock has been damaged and many bridges have been washed away. Local railway traffic and telegraph ser vice is badly interrupted. The town of Oroville Is still inun dated by water. The financial loss at Oroville and vicinity is estimated at $1,000,000. A number of Chinese are reported to have been drowned. Sac ramento reports the Southern Pacific situation unchanged. Stockton was flooded today from the overflow of the two channels that bring freshets from the foothills and at a late hour tonight only a section of the city along Main street and north of Poplar street was out of water. It is the greatest wetting this city has experienced since the great flood of 1862. In tne business section of Stockton the water is knee deep in places and in the southwestern part of the city the flood is from three to five feet deep. The power plant, lighting the city, has kept the machinery In operation thus far, being the only power plant in this section of the state that is operating. Reports from the hills are that the crest of the flood will reach Stockton before midnight. SEVEX DROWNED NEAR CHICO Whole Village Destroyed and Popu lation Roosts In Treetops. CHICO, Cal., March 19. Flood condi tions are still serious. The village of Dreadful, near Oroville, has been entirely destroyed by the Feather River. Over atO men, women and children were driven to take refuge in trees and tops of houses in which they were exposed to rain and cold for 4S hours. Small boats rescued many.. One boat engaged in rescue work was capsized and seven drowned. A relief train from Chico with boats, clothing and provisions was dispatched over the North ern electric road, reaching the scene after some difficulty. Fifty people are yet on the Island, anti there is much suffering among the women and children. TWENTY CHINESE DROWNED In Oroville Property Loss. Will Ag gregate $650,000. OROVILLE, Cal., March 20. It is es timated that the loss occasioned by the flood in Oroville will be not less than $650,000. The water is now falling as far as Montgomery street. All the busi ness houses on this street are under six feet of water and the Individual losses range all the way from $10,000 to $25,000. A telephone, office has been established In the second story of the Union Hotel, and this is the only method of commu nication with the outside world. A rescue party is talcing out the 20 Chinese, who were drowned in Chinatown, although there is eight feet of water in this part of the city. LOST BRIDGES STOP . TRAFFIC Child Drowned in Creek Fruit Crop Is Ruined. SAN JOSR. Cal -Vtonl. on ' .1L1 -V. .IlUlt damage has been done by floods in the tlcaRO " "mi nours tnan in the P' years. tub washing out of bridges, notablv the the Almaden branch, will stop all traf fic from San Jose to Los Gatos by way of Campbell for weeks. The damage in the vicinity of the latter town will reach intuit Liiuuaiia uoiiars. Fruit farmers ceneralK- nr v, opinion that there will be light crops this year. If some do not prove utter failures. The rains are believed to have washed out much of the pollen, which will prevent the blooms maturing into fruit. At San Martin. Harold Bole, the 5-year-old son of a well-known rancher fell Into the swollen Lagas Creek and was drowned. At Santa. Clara several families were driven from their homes by the overflow of the Guadaloupe Creek. NOT DRY SPOT IX TOWX. ' Flood Reaches Crest at Early Morn ing In Stockton. STOCKTON, March 20. At 1 o'clock this morning the flood had reached Us highest point and the water commenced slowly to subside in the city, but there is still a great rush of water through the streets. There is not a dry spot in town unless it Is some high garden ter race. Water is in most of the stores and the reclaimed lands are in great danger, though no levee has broken yet so far as is known. Water in the streets in the business section of the city is from three to four feet deep, but is flowing fast westward. BLOCKS SOUTHERN' PACIFIC Landslide AA'ill Close Main Line for Four or Five Days. LOS ANGELES, March 20. The coast line of the Southern Pacific has been completely blocked by a landslide that has closed the Santa Margarita tunnel, one of the longest on the division, located in the mountains north of San Luis Obispo. Local railroad officials are ad vised that the line must remain closed to traffic for at least four or five days. TWO PEOPLE ARE DROWNED Man and AVoinan Fall From Launch in San Joaquin. STOCKTON, Cal., March 20. A report from Venice Island, in the San Joaquin River, says that two persons were drowned there last night. Mrs. Maud MeneXce and George Eastman, who were Marie Antoinette Mail Orders Promptly Filled New Spring Catalog Sent on Request GEEATSS Beginning this morning comes this extraordinary bargain sale of New Spring 1907 Women's White Shirtwaists. You will find on sale thousands of dozens of the choicest Waists produced, made from dainty white materials, offered at prices that no other store can duplicate, and very unusual even at this establish ment. Many styles are limited in number. Come early the earlier the better for you. Owing to this large purchase we are able to offer you $1.50 waists at Really exquis itely trimmed Lingerie Waists with new 34 sleeves $2.25 value for $1.58 for Regular $2.00 Waists ALL POPULAR PRICES passenprers on a launch, fell from" a small boat while making: a landing. IS FLOODING THE COMSTOCK Electric Company Concentrating Ef forts to Keeps. Pumps at Work. REXO, New, March 19. The water in the mines of the Comstock, at Virginia City, threatens to flood the lower levels, as it is rising at the rate of ten feet an hour. To save them, the electrio com pany, which is short of power, owing to the washing: out of the flumes by the Trurkee flood, has notified the Reno resi dence sections and the streetcar company that no light or power for cars will be furnished until tomorrow noon. Carson, too. is in darkness, and the power thus gained is being used on the Comstock pumps. The first trains since Friday are mov ing again, the first from the west reach ing here at 7 o'clock tonight. The limited, westbound, left here at 7:15 tonight. Trains make only four miles an hour over the mountains, owing to soft tracks and landslides. SALT LAKE IS ISOLATED. Floods Shut Off All Railroad Com munication to the West. ' SALT LAKE CITY. March 19. Washouts on the Southern Pacific and on the San Pedro, Los Angeles & Salt Lake roads, have isolated Salt Lake City temporarily from the Pacific Coast. The iron bridge at Verdi, 20 miles west of Reno, Nevada, is out and a wagon bridge over the Truc kee River at the same point is also down. No trains have arrived In this city or in Ogden from the Coast since, yesterday morning. More Floods In Obio Valley. PITTSBURG, March 19. The Monon gahela, Allegheny and Ohio Rivers are rising rapidly tonight on account of heavy rains throughout Western Penn sylvania. Many small streams in this vicinity are already overflowing their banks. Forecaster Penny forecasts a. 24-foot rise by tomorrow noon. Successful Train Hold-Up. YEKATERIXOSLAV. Russia. March 19. Ten armed men held up a train on the outskirts of this town today and secured V-yi In cash, with which they made their escape. Apply Satin skin cream to wet skin, wipe dry.' Secures satiny smooth skua. 23c. m -3 7Q mKs IV sale p- TO Waists Thursday Good Merchandise Only Quality- Considered Our Prices Ar Always the Lowest T of all WAIST -jyvr ) ' ' ! J values are really MIll YMJik,M worth a dollar more $1.98 for Regular $2.50 Waists $2.15 for Regular $2.75 Waists IN.THIS SALETHE WAIST YOU WANT AT THE PRICE YOU WANT TO PAY LUMBER YARD IS BURNED FIRE DESTROYS - SIT. SCOTT COMPANY'S STOCK. Telephone Alarm Calls East Side Ap paratus to Forty-ninth and Division Streets. All the fire apparatus on the East side was called to Forty-ninth, and Division streets by a telephone alarm at 2:30 o'clock this morning to extinguish a blaze in the Sit Scott Lumber Company's yard. "Send all the engines you've got right away. It's getting too hot for me here," was the laconjc message that came over the wires to fire headquarters, presum ably from some employe In the office of the company. At 3:15 o'clock no further report had been received from the scene, but the blase could be plainly distinguished from the city and it is probable that the entire plant was destroyed. Inasmuch as the apparatus could hardly have arrived in time to be of much service. The stock of lumber and buildings are valued at about $10,000, it is said. BETTING MEN GATHERED IN Reformers Force Fight on Race Track at Hot Spring's. HOT SPRINGS, Ark., March 19. Under the leadership of Constable Golden, of Hale township, and J. B. Wood, a mem ber of the lofal reform organization, a posse of 16 armed men forced an entrance to the Oaklawn track this afternoon and arrested several alleged violators of the Amis anti-betting law. Injunction proceedings were Instituted tonight against the leaders of the posse. The men arrested have instituted habeas oocFs Ite standard blood-purifying medicina. In usual liquid or new tablet form. Sarsaparilla Is Linen Day -Watch for Bargains An $235 for Regular $3.00 Waists $2.95 for Regular $3.75 Waists corpus proceedings to avoid their appear ing before a magistrate in Hale township tomorrow. WILL HE HAVE ENOUGH? Bryan Expects to Be In Five More Presidential Fights. CINCINNATI. March 19.-W. J. Bryan tonight was the guest of the Cincinnati Democratic Club, where he made an ad dress. Mr. Bryan called attention to the fact that he was spending the 47th anniversary of his birth in Cincinnati, concluding with the remark that he expected to live through five more presidential campaigns. "I went Into politics by accident and t SILVERFIELD'S FURS Corner Fourth and Morrison Streets THE LARGEST AND LEADING FUR MANUFACTURERS AND DEALERS IN THE WEST j 4U per cent Mm Now Done at Prices and We pay the highest prices for raw furs. By selling direct to manufacturers such as the Silverfield CO. you save the middleman's profit Artistic Picture Framing by Expert Framerm at Special Low Prices SALES Immense selection of new dainty Waists that sell regularly for $1.75, at $3.55 for Regular $4.50 Waists stayed in by design," be added. "When the fighting is hot in the next campaign I- want to be on the firing line, where Uie firing is the hottest. Put me in the next fight." Haftermon Is Not Guilty. SANTA FE, N. M., March 19. It was shown conclusively today that the 21 deeds to territorial timber lands In the Mfinra.no mountains, purchased at $3 an acre by the Pennsylvania Development Company in evasion of a Federal statute, were signed and executed in the admin istration previous to that of Governor Hagerman and that their delivery and seal by Governor Hagerman were nomi nal. The Department of the Interior had in a previous Investigation of this matter completely exonerated Governor Hager man from all blajne. Corner Fourth and Morrison Streets Fashionable Furs for Easter Our factory has turned out some beautiful small Neckpieces and Ties, in all the fashion ' able furs, suitable for Easter wear, on sale at less tnan winter prices. Remodeling Furs Greatly Reduced STORED FREE