r VOL.. XLVL-XO. 14,443. PORTLAND, OREGON, SATURDAY, MARCH 23, 1907. PRICE FIVE CENTS. ONERGAN TELLS HOW Workings of the Mind of San Francisco Grafter POOR A(iO NEEDED MONEY Never Asked for It, but Got "Indian" Information It Was Coming. DOUBLE CROSS FOR HALSEY Confessed Grafter Won by Af fable Telephone Official. MONEY DESTROYED IN FIRE Ilrmorsoful Supervisor Calls Loss Act of God "Big Jim" Gallagher Always Distributed Money Among . Ue Boys." i SAX FRANCISCO. March 22. -(Special.) Tlie whole story of the bribery of the Board of Supervisors was told today in graphic language by Supervisor Lonergan, who. before his appointment, drove a bakery wagon. . His confession follows: Confession of a Grafter. "Never since 1 have been In public office have I asked a man seeking a public favor, for a dollar. I have never held up ah Individual or a corporation in my life, but I have accepted bribes volun teered by many of the public-service corporations of this city and county, and liere let me say that the money received from the bribe-givers did me little or no good. When the fire came, most of my finances were burned up, for In nearly every instance the bribe money paid me was In currency. God knows I have paid dearly for accepting those bribes, and now, when I look over the happenings of the last few weeks. I wish I had taken the advice of my heart-broken wife :and remained on the seat of Foley's bakery wagon. "A sreat many people have an idea that the Supervisors got together and planned the looting of the public-service (corporations. Such is not the ease. In every instance the bribes were carried to the Supervisors. Gallagher Paid t'a-h Kxcopt Once. "There is also an impression that the board, during the Sunday night caucus, planned a scheme of hold-ups for the next week. That also is untrue. During the gatherings of Sunday nights the ques tion of extorting bribes from the big mo nopolists or accepting bribes "was never discussed. Who arranged the scheme for i-orrupting them as a board, 1 have never oefinltely known. Of course, I have my suspicions, just the same as every one rise, but so far as I know every job put through waa personally manipulated by Supervisor Jim Gallagher, who personally delivered the bribes. In saying always, 1 made a slight error. He did not handle the money in the case of the Pacific Plates Telephone Company's bribe. In th-it instance the money was handed over to the mem hers of the board by M r. Halsey. The transaction took place in his private office. Karb Committee Hat! Hold-l p. "I don't think Ruef ever Fnoke to me on money matters. While we were all of the Impression that he, in a general way, planned the hold-ups, when it came down to tho actual parsing of the money none of us knew any one nave Super visor Callagher. who was always referred to as the hig fellow. "Shortly after we went into office it was generally agreed that we constituted a happy family of IS members. In the old days and In the hoard preceding us we understood that the hold-up of corpora tions was left to" the various committees. For instance, the light committee would hold the gas trust and equally divide the loot among the members of the com mittee. Naturally th remaining mem bers of the board would stand In when it came to a final vote, it being understood that each separate committee was to take care of itself. But with us it was a case of one-eighteenth of the total revenue for each Supervisor. "Indian'' Knowledge of Loot. 'While these matters were never dis cussed in detail, there was a sort of 'In dian' knowledge, or understanding, that we were to play fa ir and squa re wi th one another. In the light of what has come to the mi r face, however, I know that many of us were double-crossed In the passing of the bribe money, and some Ui0 got large sums for doing certain WAS BRIBED things were not entitled to any more than those who received comparatively small amounts for easting votes to the same gang. 'I meant to be square when I was elected, but one day we seemed to un derstand simultaneously for the life of me I couldn't tell you who told me about it that the fight trust wanted a permit. While nobody ever said a word about money, we all seemed to realize that we were to be paid for our votes. You can call it intuition or anything you like, but I emll it 'Indian information. Well, the matter finally came up before the board and it was unanimously passed. A couple of days later Bib Jim Gallagher came to me and handed me 3500. Money Offered, Never Asked For. "This was my downfall. It looked like a lot of money to mc at the time and there seemed to be a mutual un derstarrdlirg" among all concerned that a rich harvest was to be reaped during our term of office. Now. mind you, I never seriously thought of demanding money from anyone, for I was early convinced that the corporations had men hfred' for' the purpose of bribing Supervisors. "Shortly after the question of fixing the gas rates, came along, we all knew that the gas company had been held up In the past and that In all probabil ity it was to be held up again. The agents of the company appeared before the Board and told of their troubles due to the destruction of the big power house on Jessie street by fire. They explained to us that their losses had been very heavy and that it would be necessary for them ' to have a high rate fixed by the bfoard. Myself and . others who had pledged ourselves before election to vote for a 75-cent gas rate, decided to stand by our pledges. . His Second Bribe. "But the arguments of the agents of the company were so plausible and the damage and loss caused by the fire so far-reaching that we decided to grant the company an R5-cent rate. 'During all this time there never was a word said about a hold-up or bribe or corruption fund, or anything of the sort. But a week afterward 'Big Jim Galla gher came to me and handed me $750. I took the money and on my way home pondered over my second bribe. But I was a poor man with a wife and family and needed the money, and, as I knew all the others were taking it from the top to the bottom, I couldn't see why I shouldn't accept any money offered me. More "Indian" Information. "Maybe a month passed and again everybody seemed to think that an op position telephone would be a good thing. Now the merits of the Pacific States Tele phone Company were never discussed by us In caucus; but possibly a few of us might exchange notes when discussing the . local situation. But everybody seemed to have 'Indian- information about the nervousness of the Pacific States Telephone Company over the ap plication of the Home Telephone Com pany for a franchise. "After a few days a man named Krause called on me. He was very affffable and told nie that he wanted me to meet Mr. Ilalsey. Up to that time I didn't know exactly who Mr. Halsey was. I made some Inquiries and learned that Krause was Halsey's man-of-all- work, that he arranged interviews, meetings and things of that sort. Halsey's Delicious Luncheon. "Weil, he took me dowp and introduced me to Mr. Halsey, who. in turn, invited me to lunch with him at Delmonico's. I went to the luncheon, which was very de licious, and we certainly had a most en joyable afternoon. Nothing whatever was ; said about telephone franchises or any thing of the sort. Halsey explained to me that it was simply. a means of getting better acquainted. When we parted, he made me promise to come down and see him in his office. I did so. and there he made his firt overtures toward bribing me. Showed Him Telephone Plant. " Monergan. he said, 'all I need is your vote to kill the application of the Home Telephone Company for a franchise. I want you to come with me and look over our plant. I want you to realize the vast amount of money that we have put into machinery and electrical apparatus. I will also show you that the telephone business, that is, the mechanical end of it, is of such a peculiar nature than an opposition service is not feasible. "Well, after I looked at the machinery and the dynamos and the switchboards and all the complicated stuff that they hud in the suboffices, I quite agreed with Halsey that an opposition system wouldn't be a very good thing for the city. So back again we went to his office. Given $500 0 for His Trouble. " 'Now, Lonergan, he said when we were alone. I want your vote and I don't want it for nothing. 1 will give you $500 if you will vote against the Home Com pany's franchise, and next year I will give you an additional $2500. That will make $7500 in all for your trouble and really do the city a good turn. "I agreed to his terms at once, and he handed me the $5000 in bills. Now, mind you, I was assured by Halsey at that meeting that enough other members of the board had accepted his money to guarantee the defeat of the Home Company's franchise. 1 had' my suspicions of who the members were, but nobody said anything to me, so I kept my mouth shut. Again, it was a case of that 'Indian informa tion. Double Cross on Halsey. "One Krlday afternoon Jim Galla gher told me that the administration was for the Home Company's fran chise, and then I realized that some one was trying1 to double-cross us all. I said I didn't think It was right meaning that, when I accepted Halsey's money, I did It with the understand ing that I was really carrying out the wishes of the administration. "'Well, never mind, said Gallagher, 'The Home Telephone Company's fran chise is the dope, and it's got to go through. "Well, it was a pretty pill to swal low, but I swallowed It and held Hal- (Concluded on Pajce 33 HARRIMAN'S SCALP GREATLY DESIRED Roosevelt Anxious for Prosecution. EGGED ON GOVERNOR DENEEN Found No Illinois Law to. Cover Alton Deal. URGED ONE BE ADOPTED President Sets Bonaparte to Fine! Whether Evidence Enough for Prosecution Vnder Interstate Commerce or Sherman Law. WASHINGTON. March 22. (Special.) President Rem levelt is so anxious to add the scalp of B. H. Harriman to his col lection that at his personal direction the Department of Justice is looking into the question, although the final hearings on the Harriman merger will not bo held until April 4. Attorney-General Ponaparte is giving his personal attention to the matter, and i3 being assisted by an assistant Attorney-General and other experts. The 'Pres ident wants to know whether, on the evidence already submitted, he can make a case against Mr. Harriman. either un der the anti-trust law or under the inter state commerce act. The" President was greatly exercised at the time of the Investigation of the Har riman roads. He conferred with the Attorney-General and others as to whether the Government could prosecute Mr. Har riman for the- Alton deal. It was the opinion of the Government's lawyers at that time ihat any prosecution would have to be under the laws ot Illinois. It was this question that brought Governor Deneen and . Attorney-General Stead, ot Illinois, to the White House a week ago. The President wanted a pledge from them that they would prosecute Mr. Har riman. - Mr. Stead told the President that there was no law in Illinois under which Mr. Harriman could be prosecuted. The Pres ident expressed great surprise and asked the Governor to draw up and send to the Legislature a bill which would make a repetition of the Alton deal punishable by fine and imprisonment. To draw up such a bill and recommend its passage was among the Governor's first acts upon his return to Illinois. Sentor Cullom, of Illi nois, who had several conferences with Mr. Deneen and Mr. Stead while . they were here, confirmed their report to the President that under existing laws there could 'be no prosecution of Mr. Harriman. The facts gathered by the Interstate Commerce Commission on its Investiga tion of the Harriman roads are being made the basis of attention 'by Attorney-General Bonaparte. ANOTHER SLUMP IN STOCKS Erie Leads the Decline U HI and Harriman Lines Follow. NEW YORK, March 22. The stock market was again very unsettled today, the disturbing feature being the decline In the Eries on that company's announce ment of a suspension of all improvement and construction work in this State be- I : cause of the attitude of the Legislature at Albany. By noon. Erie common had declined 3 5-8. the first preferred 4 3-8 and the second preferred 6. The drop in these stocks brought them to a lower level than was touched in the panic of last Thursday. Cables from London intimated that trouble is expected there in the course of next week's fortnightly settle ments. In addition to the severe declines in the Kries. there were losses of between 2 and S or more in the Hill and Harriman stocks and Southern Railway, Canadian Pacific. Reading and other active issues-. About the only exception to the down ward tendency of the list during the early session was an advance ot 2 1-2 In American Smelting, but by noon this ad vantage was lost. In the early afternoop the weakness of the market increased. A, slump of .8 1-2 in Canadian Pacific in the last hour made the market weak and decidedly nervous at the close. Investigate ITtah Railroads. SALT LAKE CITT, March 22.-A Sena torial Committee of five members will continue, the Investigation of railroad conditions In Utah begun during the ses sion of the Legislature, and will report to the next General Assembly two years hence. Members of the committee say that. In the event the coal famine of last Winter is repeated next season, the Gov ernor will be urged to call a special ses sion of the Legislature to deal with the question. H0T1UTED HID KILLED TORTl'KE OK FRENCH SOLDIERS IX NORTH AFRICA. Moie for Inquiry Met- by Pit-quart With Rill to Abolish Discin Unary Battalion. PARIS., March 22. The entire session today of the Chamber of Deputies was devoted to a discussion of alleged atroci ties anri tortures, which. It is alleged, have caused permanent mutilation in many cases, and even death to many soldiers serving in the disciplinary bat talions in Africa, Pascal Cecil. Radical Socialist, and others demanded a commis sion of inquiry to allay the public anx iety on the subject. War Minister Picquart declared the rep resentaions from Africa were grossly ex aggerated and that much of the informa tion concerning the conditions in the bat talions emanated from unreliable sources. He declared that only soldiers who were known to have bad characters before they were recruited, were drafted into the dis ciplinary battalions. He admitted, how ever, that in a few instances the regula tions had been overstepped and abuses committed, the authors of which would be subjected to an investigation and eventual punishment, and promised to suppress some of the more severe forms of discipline. i The Minister' of War suggested ithe passage of a bill introduced by himsetf for the abolition of the disciplinary bat talions, lii i a rder tiiat all opportunity Tor tn$ .nnicuon ji try .iu-calleu Jioi- would cease to exist- By a vote of 426 to 132 the Chamber rejected M. Cecil's demand for a com mission of investigation. HOT IN EAST AND SOUTH Temperature of 90 Degrees in Wash ington City and Kansas. WASHINGTON1. March 22. Accord ing: to the United States Weather Bu reau, today was the hottest March day ever experienced in Washington. The temperature reached its highest point at 4 o'clock this afternoon, when the thermometer registered 90 degrees." KANSAS CITT, Mo.. March 22. The maximum temperature here today was 90 degrees. WHOLE FAMILY IS FROZEN New Brunswick Blizzard Slays Mother and Three Children. BATHURST. N. B.. March 22.-In the severe blizzard which swept over the eastern provinces late Wednesday night Mrs. John Comeau and three of her chil dren were frozen to death in a snowdrift at St. Simon, a small inland village. THE DEADLY GRIP THAT WON'T COME OFF PEASANTS SACK AND BURN CITIES Agrarian Revolt All Through Moldavia. THOUSANDS OF JEWS IN FLIGHT Armed , Bands Fight Battles . With the Troops. STRUGGLE AT PIATRIA Land Monopoly of Absentees Causes Desperation At Least 10,000 lews Escape Willi Nothing and Camp in Open Air. VIENNA. March 22. The seriousness of the situation in Northern Moldavia, growing out of the agrarian disorders, has not been exaggerated, according to tho latest telegraphic reports reaching here from Czemowitz. on the border. It Is estimated tonight that 400 farms In Moldavia have been devastated, 8000 fugitives have fled over the Roumanian frontier Into Austrfa and 10.000 Jews are homeless. The number of dead and wounded cannot be given accurately, but the reports of today give a total of about 85 men killed and about 150 wounded. Aimed Against Farm Trust. The outbreak seems today to have been partially suppressed. The Roumanian government is still sending troops Into the affected district. Practically the en tire province of Moldavia has been in volved. The movement Is more .really agrarian than anti-Semitic. The peasants are in revolt against the great farming trust, which has leased half the cultivable land in Moldavia. The absentee landlords who control the trust are Jews, and this fact brings the ire of the peasants down upon any: avf all Jews they meet and to this antipathy is added strong racial feeling arising from other causes. Volley Repulsed Rioters.. On Thursday BOO peasants tried to invade Michaelineu. despite the fact that there was a sufficient number of Roumanian troops in this town to stop the rioters. The peassnts at first got the upper hand, because the soldiers, acting upon the orders of the Prefect of the town, were not permitted by their officers to open fire. In the face of the menaces of the furious peasants, however, some of the soldiers did fire against orders. This volley killed 13 of the rioters and wounded 45, when the peasants withdrew. . Loot and Burn Another Town. A more successful attack was made at Vaslul. to the south of Tassy. "Here 2.000 peasants foreed their way into the town. The Prefect did not have suffi cient troops at his command to stop; the infuriated countrymen. He stood by. a helpless witness, while the rioters In an Incredibly short space of time plun dered practically all the buildings on the three principal streets of Vaslul an set them on fire. The peasants had looted freely, and then fire .'completed the destruction. The Prefect sent in a hurried appeal for reinforcements and the peasants, ig norant of this step, remained In the town until the soldiers arrived. Then ensued a serious fight. In which the soldiers won. Twenty rioters were killed and many were wounded. The commander of the troops. Major Calori, sustained serious injuries. Pitched Battle Fought. It is estimated that not less than 8000 fugitives have fled . to the Austrian province of Bukowina. where they are being cared for. The most serious fight of the day oc curred near Piatrla, a town about 60 miles southwest of Jassy. Several thou sand peasants marched against this town, where an entire regiment of infantry was stationed. The soldiers charged the peas ants with fixed, bayonets. The peasants replied -with rifle and revolver fire and then the troops began shooting back. The fighting lasted over an hour before the rioters retreated. They had 42 men killed, b7 wounded and 250 of their number were captured by the soldiers. The troops hod eight men killed and 27 wounded. Thousands or Jews Homeless. The estimate of 10.000 Jews without homes Is considered here conservative. Most of these fugitives saved absolutely nothing, escaping with their lives luckily. Four thousand Jews fled to Bucharest, where the authorities are now making every effort to assist them, but practi cally all are obliged to sleep In the open air. SACK AND BUKN WHOLE TOWNS Roumanian Peasants Start Terroi Among Landlord Class. VIENNA. March 22. According to the news received today iti Budapest' from Moldavia, the peasant movement in Rou mania Is spreading. The town of Boro goi has been sacked and burned by the peasants. The Inhabitants were compelled to flee for their lives. At Cucutenl, where many Hungarians live, a fight occurred between Hungarian and Roumanian inhabitants. Four Hun garians are reported killed and 30 wound ed. Fourteen peasants were, killed In a col lision with troops at Belgestle. while In Folkshall the people are in revolt against the authorities. The village of Sulice was destroyed by peasant rioters. The fate of the inhabitants Is not known. REVOLT ALL OVER MOLDAVIA Peasants Attack Troops, Who Shoot Down Many of Them. BUCHAREST. March 22. The Agra rian revolt, which was at first cen tered around Botoshanl, has now spread over practically the whole ot Moldavia. A serious encounter -between troops and raiders occurred at Blegesti. In th'i district -of Bacau. The peasants attacked the troops, who opened fire, killing 14 of the raiders. In tho district of Vaslul yesterday, 20 peasants were killed and scores were wounded. Northwest Postal Affairs. OREGONIAN NEWS BUREAU. Wash ington. March 22. August R. Motz has been appointed postmaster at Klberton, Wash., vice William Renfrew, resigned. Rural free carriers appointed: Oregon Estacada, route 1, Abraham Demoy carrier, Frank Thurstan substi tute. Washington Georgetown, route 1, George T. Hlxon carrier. George Hixon substitute. CONTENTS TODAY'S PAPER The Weather. TB-STBRDAT'S Maximum temperature, 44 degrees; minimum temperature. 36 degrees. TODAY'S Occasional rain, possibly part snow; warmrr durinK the afternoon; high southwesterly winds. . Foreign. Whole of Moldavia ravaged by rebel peas ants. Page 1. Charge of torturing French soldiers in Af rica. Page 1. Rayner sentenced to hang for murder of Whiteley. Page u. National. President disapproves acquittal of Captain Koehler for disrespect to General Wood. Page a. Major Goethals appointed on Canal Com mission. Page 8. Senator Fulton and Secrctars- "Wilson dis agree on grazing in forest reserves. Page . President Roosevelt anxious to prosecute Harriman. Page 1. Root warns Central American states to stop war; Honduras at Zelaya's mercy. Page 2. Domestic. Senator Burton, released from jail, prom ises to publish his story. Page 4. Haskin on American ingenuity's success. Page 1. Evidence of Thaw's insanity given by Je rome. Page 4. . President of Manufacturers' Association proposes federation of employers and peace with labor unions. Page 2. Alaskan kills Polish Count who won away wife's affections. Page 4. Hudson Maxim discovers wonderful new explosive. - Page 3. I'acltic Coast. Supervisor Ixmergan's confession of graft ing in San Francisco. Page 1. Why Board of Supervisors is not removed, rage 1. . Boise grand Jury returns four Indictments. Page 6. Dusky spouse at Aberdeen elopes with first love. Page 6. Four feet of snow south of Ashland. Page 7. Effort to wrest control of Idaho Democracy from Dubois. Page ft. Astoria united for legal battle to break Port of Columbia act. Page 10. Commercial and Marine. Potato famine at San. Francisco. Page 17. Wheat strong and higher at Chicago. Page 17. Slump in Eries weakens stock market. Page 17. General retail trade Is heavy. Page 17. Portland Asiatic steamship Arabia bring record shipment of 'firecrackers. Page 16. Portland and Vicinity. Democrats ready to tag G. H. Thomas with - Mayoralty nomination. Page 12. Opposition to building of electric railway on Section Line road develops at Court house mass-meeting. Page 10. Street Railway Company refuses petition of striking carmen for reinstatement. Pace 12. Chinese In mass-meeting hiss name of Con- , sul Moy Bak Hln. Page 16. v OF Success Due to Violat ing Precedent. ALWAYS READY FOR NEW IDEAS How Chicago Drummer Pushed Wares in Asia. MAKING CARPET IN INDIA Fortune In Old Pine Stumps Xon Hefillable Bottle Made of Wood Greatest Pea Gar den on Earth. BY FREDERIC J. HASKIN. ' WASHINGTON. March 17.-(SperlaI tor. respondence.) The American business NGENUITY AMERICAN W 5 man is never bound by precedent, and to this feature of his methods the United States largely owes Its present position as the greatest business Nation of the world. The progress of science is no more rapid. than the Yankee application of Its discoveries to business: our people ... ... not only manifest extraordinary Ingenuity : In solving commercial problems, but they do things on a scale the magnitude of which Is astounding to the more conser vatlve nations of the old world. ' ; A short time ago a conslgnme.nt.o5 streetcars was made in Bast St. Louis for use in Los Angeles, Cal. The custom 'la to load hew rolling stock of this kind ont flat cars for shipment. "Why not run them out to Los Angeles on their own wheels?" suggested the venturesome spirit of Ingenuity. "Such a thing has never been done," replied cautious Precedent. "That's no reason why It can't be done," replied Ingenuity," and the cars were made ready. They were fitted with a temporary equipment of couplers( and air-brakes and a train of 22 cars and a caboose was started. Oilers rode In the caboose to watch for hot boxes and the -scheduled speed of 15 miles an hour was maintained. This was the first instance where streetcars have been run on a rail road track. He Showed the Asiatics. Makers of American agricultural imple ments have been more aggressive than almost any other class of Americans in pushing their wares into foreign markets. One Illinois concern sent a man to Asia ,; Minor with Instructions to stay there tin- ., til he opened the market. Catalogues, samples. much talking nothing could overcome the precedent of two or three thousand years of plowing with bullocks , and a crooked stick. After three year, of failure. te Illinois man got it into his head that these Asiatics were closely re. lated to the Inhabitants of his neighbor ing State of Missouri and would have to be shown. He showed them. He rented a piece of ground and divided It In halves. One side he plowed with an Illinois plow, harrowed it with an Illinois harrow and planted 20 pounds of wheat with an Illinois wheat drill. The other half was plowed with native bullocks and a crooked stick, , wasn't harrowed at all, and was planted with 66 pounds of wheat sowed broadcast. Bvervbody waited for the harvest. The Illinois half produced a 10 per cent greater yield and the Asiatics were reminded that less than one-third as much seed had been sown on it. After that Asia Minor be came a good market for Illinois agricul tural machinery. Liquid Air Supplants Ice. Boston threatens to break loose from the grip of the ice trust. The owner of a soda fountain in the Hub Is now serving little science with every drink bougnt in his place. In a way that is as matter- of-fact as oysters and frankfurters are provided In other drink establishments of cities less erudite. When a customer or. ders a lemon phosphate or some other soft drink, the soda-Jerker pours a few drops of liquid air in the glass and the beverage becomes as cool as the North Pole. Americans like to buy East Indian rugs, but the native designs have not- proved particularly pleasing to Yankee tastes. Therefore a company of American carpet makers went to India, bought 10 large factories employing 16.000 workmen and began the business of making Indian rugs with American designs. The material used, the dyes and the methods of weav ing are all Indian. Last year JWO.0O0 worth of rugs were made In these Amer- lean factories in India and sent to the home market la this country. . AVhere Each Helped Other. One day last Summer two business friends were, chatting at a club In a manufacturing town In the Middle West. One of these men was a manufacturer of furniture and the other was a buyer for a chain of 10-cent stores located in, prosperous towns In the Mississippi Val ley. The furniture manufacturer ' was lamenting the fact that the dull season was upon him. that many of his expert workmen whom he would have to lay off would drift away where he could not locate them when the rush came on a few months later. The buyer scent ed a business opportunity and asked tiie other if he would be willing to turn out stuff at cost In order to keep his organiz ation Intact. The manufacturer said he would, and they figured all over the f back of the bill-of-fare. Result an order (Concluded on Page 4.) -jm 108.0