Morning Oregonian. (Portland, Or.) 1861-1937, March 20, 1907, Page 3, Image 3

Below is the OCR text representation for this newspapers page. It is also available as plain text as well as XML.

    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