VOL. XLVI NO. 14,473.
PORTLAND, OREGON, SATURDAY. APRIL 27, 1907.
PRICE FIVE CENTS.
PRESIDENT OPENS
' JAMESTOWN FAIH
Three . Centuries of
American Life.
SHIPS OF NATIONS REVIEWED
Hampton Roads Crowded With
Marine Monsters.
ROOSEVELT AVERTS PANIC
Crush of Spectators Checked at His
Word Speech Tells of First
English Colony and Present
American Problems.
NORFOLK. Va.. April 26. President
Rooaevalt, the diplomatic, naval and
military representatives of foreign na
tions and the Governors of a score
of states participated today In the
opening exercises of the Jamestown
Ter-Centennlal Exposition. The expo
sition Is far from complete, but this
was not allowed to interfere in any
way with today's celebration of the
SOOth anniversary of the first English
settlement In America, From the fir- J
inft of a sunrise salute of 300. guns
by the United States Army through
the picturesque review of the Inter
national fleet of war vessels anchored
in Hampton Roads, through the cere
monies of dedication, at which the
President spoke, and down to a late
hour tonight, when the chief executive
went aboard the naval yacht Sylph to
spend the night, the day was crowded
with incidents.
Roosevelt Averts Panic.
Notable among the day's events was
the aotion of the President in assum
ing command of tho situation In front
of the crowded grandstand from which
he spoke, when a panic seized the surg
ing throngs of spectators. Pressed
against the guardropes by thousands
of eager persons, the safety of those
who had the more favorable positions
was endangered. Mr. Roosevelt Iiad
Juat been Introduced by Harry St.
George Tucker, head of the Exposition
Company, when the diaorder and unrest
In the crowd reached its height and the
Civil Guards in front of the grandstand
seemed unable to stand to their posts.
The President Jumped upon the table
which had been placed in the speakers'
balcony and cried out to the men of
Virginia to live up to their traditions
of gallantry and cease the pushing and
crowding which was threatening the
lives of the women and children lit
the assemblage.
J'avalry Breaks Up Crush.
The crowd heeded the President's
warning, but, when he had settled
down into his speech, the Immense au
dience became uneasy again, and those
on the outside began to press forward
once more in their anxiety to hear. The
President was interrupted and mount
ed officers and men of the United
States Cavalry were called In to take
charge. They rode up and down along
the front of the crowd and gradually
opened it up and relieved the pressure,
which at one time threatened to hurl
an avalanche of humanity against the
President's stand and the boxes occu
pied by the diplomats. A detachment
of artillerymen also was called into
service, and the thousands of people
settled down Into a peaceful assem
blage. Apparently oblivious to the un
usual position he occupied on the top
of a somewhat shaky table, the Pres
ident made his speech.
Hevlcw of the Fleet.
The military encamped about the ex
position grounds began the day's cer
emonies with the firing of the three
century salute. Soon from across the
-waters of Hampton Roads came the
boom of guns signaling the beginning
of the review by the President of the
most formidable fleet of International
battleships and cruisers the world has
witnessed in many years.
On board ttie cruiser yacht Mayflower
the President was greeted first by a round
of 21 guns from each of the vessels, for
elgn and American. Then, as the May
flower steamed along the lane of ships.
he was saluted in turn by every battle
ship and cruiser. When his yacht had
anchored amidst the naval vessels, the
President received on board the flag and
commanding officers of the foreign fleet
and the flag officers of the home squad
rons. Among the foreign commanders
who called were Admiral Sir George Ne
ville, Great Britain; Commodore Kalau
von llofe. Germany: Commodore Her
man von Plescott. Austria, and the com
manding officer of the Argentine ship
Sarmien to.
Landing at Exposition Wharf.
The President landed at the Exposition
grounds shortly after 11 A. M.. The im
mense Government piers undergoing con
struction are still many weeks from com
pletion and it was with some difficulty
that a way was cleared for even the light
launches In which the President and
naval officers of the several squadrons
made their journey to shore. Booming
cannon again greeted the President as he
stepped on the temporary structure,
which Is eventually to be a magnificent
water-gate known as "Discovery - land
ing." President Tucker, of the EjukmI-
tlon, personally welcomed Mr. Roosevelt,
who, with Mrs. Roosevelt, was driven to
the grandstand on the parade between
two lines of soldiers.
The center box on the grandstand was
assigned to the President and his family.
Large delegations from the foreign and
American squadrons were banked in a
solid square Just back of the President,
while to the right and left were the Gov
ernors of many Btates, surrounded by
their staffs. United States Senators and
Representatives also were there.
Ceremonies of Opening.
The ceremonies were brief, the feature
being the addresses of President Tucker,
of the Exposition, and President Roose
velt. The latter, at the conclusion of his
address, pressed the gold button which
formally marked the opening of the com
memorative enterprise. Then followed an
Informal luncheon to the President and
for the other guests In the Administration
building. The President later reviewed
a parade of United Btates soldiers and
sailors. A reception by the President In
the auditorium closed the day's events
at the fair grounds.
Tqpight President and Mrs. Roosevelt
were guests of honor at a dinner given
by Mr. Tucker, the other guests includ
ing Rear-Admiral Robley D. Evans, Gen
eral Grant, the members of the Presi
dent's Cabinet who attended the me
morial ceremonies. Governor Swanson, of
Virginia, and several Exposition officials.
At 10 o clock the President returned to
the Sylph and the yacht slipped down the
bay, ready to proceed early tomorrow to
the old Jamestown settlement up the
James River. The President's trip to
morrow will be private.
CROWDS CHEER ROOSEVELT
President Has Triumphal Procession
Through Exposition.
NORFOLK, Vs., ADrii 26. A distin
guished gathering received the Presi
dent and his party at Discovery Land
ing. It included President Tucker and
all of the general officers of the ex
position, Rear-Admiral P. F. Harring
ton, In charge of the naval programme
and Major-General Fred D. Grant, whe
arranged the military attractions
After an exchange of greetings, during
which the bands played patriotic selec
tions, the party proceeded in carriages
to the grandstand. The cheering
crowd pressed the outriders and
charged after the line of carriages
which took the most direct route
around the main auditorium building
to the scene of the Inaugural. The
procession was a triumphal one for the
President, but it was equaled later In
the welcome given him as he entered
the reviewing stand. Bowing to the
right and to the left his acknowledg
ments of the great public acclaims
spurred the crowd to renewed efforts.
The gathering In front of the grand
stand had started as soon as the choice
vantage points had become occupied
at the waterfront and when the cere
monies opened the audience extended
over the parade . grounds far beyond
the reach of the speakers' voices.
Songs Greet Visitors.
The formal programme opened with an
overture by the bands, "Jamestown
Dixie," which was composed especially'
for the occasion,' followed, by a selection
by the exposition chorus and prayer by
the Right Rev. Alfred Magill Randolph,
blsnop of the diocese of Southern Vir
ginia. After the chorus had sung the official
opening hymn a beautiful and appropri
ate work by Wilberforce G. Owst Presi
dent Tucker faced the multitude. A spon
taneous outburst of cheering greeted him
as a testimonial of approval by the peo
ple to the gigantic work that had been
done in celebration of one of the most
important events in the history of the
Nation, as well as of Virginia, Mr.
Tucker's address was of historical and
chronological character, and at its con
clusion he introduced President Roose
velt. When the president of the exposition-concluded
it was some minutes
before President Roosevelt could pro
ceed with his address.
Mr. Roosevelt began his address at
12:06 o'clock. That he might better b
seen and heard, he mounted a table
which held hlra high above the heads
of his audience. He was greatly con
cerned by the danger in the crowd to
women and children. To discourage
enthusiasm he said at the outset that
he should ask the audience "to make
the speech as much a monologue as
possible." Speaking directly to the
crowd which stretched across the
parade grounds, the President at the
top of his voice earnestly requested
that the people refrain from crowd
ing. He called attention to the fact
that there were women and children
in front and said:
"If there is one thing that marks a
body of Americans, and especially a
body of Virginians, it Is that they take
good care of women and children."
Averts Sunstroke on Jusscrand.
This had the effect of stopping the
danger for a time, but it was not long
before the enthusiasm again swept
away all semblance of order and Gen
eral Grant sent a squad of cavalry out
Into the throng. This move, it Is be
lieved, is all that saved the immense
(Concluded on Pane 4.)
GIVES S2.D00.0GQ
MORE -TO COLLEGE
Rockefeller's Donation
to Chicago.
TOTAL EXCEEDS $21,000,000
Large Tract of Land for Uni
' verslty Buildings.
MILE ALONG THE MIDWAY
Gray Stone Buildings Will Line the
Street Yra Both Sides Original
Plans Can Now Be Complet
ed In Entirety.
JOHX D. ROCKEFELLER'S GIFTS
TO UNIVERSITY OF CHICAGO.
May 15. 18S9
September 16, JS90
February 23. 1802
December 28. 1892
June 2. 1893
October 81, 1893
In 1894
October 31. 1895
In 1S99 -
December 6, lOOO
December 1.- ISOl
Deccmaer 18, 102
December 22. 1903.....
September 2. 1904
June 14. lBOfi
January 22. 1908
December 81. 1906
April 20. 1907
...$ eoo.ooo
. . . 1.000,000
... 1.000.000
. . . 1,000,000
... 150,000
... 500.000
876,000
. . . 3,000,000
... 425.000
. . . 1,500,000
. . . 1,250,000
... 1,281,000
... 1.967,922
305.000
95.000
. . . 1.450.000
... 2.917.000
, . . 2,000.000
Total $21,316,922
CHICAGO. April 26. (Special.) A gift
of land valued at $2,000,000 from John D.
Rockefeller to the University of Chicago
is announced today by university authori
ties with the filing of the deeds for
record. The last donation from the uni
versity founder Includes the entire front
age of the south side of the. . Midway
Plaisance-Xrom-iColtttse Grave avenue to
Madison avenue and will make possible
the tarrying out of the original building
plans of the late President Harper.
The gift is the third largest Mr. Rocke
feller has made to the university and in
creases the total amount he has donated
to the school in the last 16 months to
J6.367.000, and makes the total of his gifts
J21.416.922.
Line Midway With Buildings.
The university plans contemplate the
removal of Rush Medical College, wun us
enulnment to the new land. A large part
of the ground unoccupied by buildings
may be used for athletic purposes Dy
various university organisations. Fifteen
buildings are included in the transfer.
The university authorities have no plans
now In regard to the buildings. It is
not probable that any of them will be
torn down Immediately.
The original plat of the university made
soon after the founding anticipated the
entire frontage on the north of the
Midway and plans for the south side have
been in preperation for a number of
years. That a line of gray buildings
should extend for a mile on both sides
of the Midway was one of the pet
schemes of the late President Harper.
Women's Buildings Next.
The general building plans of the uni
versity on both sides of the Midway will
probably be hastened by the gift The
women's gymnasium and the women's
quadrangles east of the main campus are
among the next buildings to be erected.
The William Rainey Harper memorial
llbraryi to be built on the north side in
the middle of the south frontage, will be
the finishing touch for the university
groups. Classical, scientific and historical
buildings will be connected with the li
brary. Gives Magnificent Outlook.
It is the Intention of the university au
thorities to have the entire campus shut
in by gray stone some day, and as the
buildings are put up they will be con
nected on the side opening Into the street
by a gray stone wall.
"This latest gift of Mr. Rockefeller af
fords us a magnificent outlook for the
future," said President Harry Pratt Jud
son. "It will take care of our growth for
many years to come. Both sides of the
Midway Pialsance will be lined with
WHAT A PITY THAT THERE IS ONLY ONE PAIR OF SHOES
buildings, as was originally planned. I can
make no statement as to our immediate
intentions, as nothing is definite enough
to announce."
POSTAL CARS OF STEEL
Sample Is Satisfactory and More
Will Be Put to Use.
OMAHA, Neb., April 26. (Special.)
Superintendent West, of cbicago. Superin
tendent Stephens and Assistant Superin
tendent Lewis, of San Francisco, of Unit
ed States Railway service, and Superin
tendent Thrall, of the Harrlman railway
mail system, today - Inspected the new
steel-postal' car recently built in the
Union Pacific shops. The officials express
r
ill
themselves satisfied and recommended a
few minor changes In interior construc
tion which can be readily made and were
adopted. As result of the Inspection 36
of the cars , are to be built -as rapidly
a8 possible. It Is thought the entire num
ber will be completed In a year. These
cars will be put into service between
Omaha and Portland, and Omaha and
San Francisco. -
CONTENTS TODAY'S PAPER
The Weather.
YESTERDAY'S Maximum temperature, 61
degrees; minimum, 42.
TODAY'S Fair; northwest winds.
Foreign.
Russian peasant-disagree; on"1 petitions to
Czar. Page 3-
National. .
President Roosevelt opens Jamestown Fair
with great naval review. Page 1.
Domestic.
Douglas and Xennett believed to nave ex
posed great Wall-street conspiracy. Page
2..
Judge Hebbard wants Heney arrested for
libel. Pag 3.
Hermann case In Jury's hands; fierce wran
gle between lawyers. Page I.
Oregon University wins debate with Utah.
Page 6.
President Ingalls advises railroads to obey
- law and help to strengthen it. Page 1
Rockefeller gives another $2,000,000 to Chi
cago University. Page 1.
Law clerk's blunder may bring fortune to
Russell Sage Raphael. Page 5.
Ex-President of Delaware & Hudson Rail
road commits suicide. Page 8.
Haakln on General Grant. Page 2.
Sports.
Boat race for championship of Pacific Coast
todav. Patre T.
Riverside Driveway Association unable to
agree on candidates worthy of endorse
ment. Page JO.
Word of West- Side High School pitches hit-
less game against Allen "Prep" school-
Page 7, : ; ; , ;
Commercial and Marine.
Low prices may -'prevent proper cultivation
of hops. Page 17.
Wheat advances 2 cents at Chicago. Page IT.
Wall street relieved by President's speech.
Page 17. .
Prosperity of the iron trade. Page 17.
Two- vessels chartered to bring general car
go from Europe. Page 16.
Pacific Coast.
McManus case expected to go to Jury to
night.-Page 6.
Girl's escort egged by 11 young men. Page 6.
Moyer-Hay wood will ask for' change of
venue from Ada County. Page 6.
Portland and Vicinity.'
Coffey's refusal to agree to support party
nominee discussed ; by committeemen.
Page 10.
Freight congestion in the local terminal
yards is growing worse. Page 11.
Forgeries invalidate petitions of two would-
be Councllmen. Page 10.
Federal grand Jury begins probing Sellwood
and St. Johns Postofflce robberies. Page
1.
In refusing F. F. Smith a divorce Judge
Sears rebukes policemen for their Igno
rance. Paga 11.
Small property-owners on Fast GHsan street
win fight for 60-foot thoroughfare. Page
11. v
Deadly, strawberry pest Is attacking vines
in this county. Page 12.
(
Binger . Hermann, Whose Case Is Now f
in the Hands of the Jury. 7
!S CASE
RESTS WITH JURY
Signs of Long Night
of Deliberation.
FINAL CLASH IN ARGUMENT
Worthington Accuses Baker of
", Telling Falsehood.
COURT STOPS WRANGLE
Threat of Contempt Sentence Effect
ive Prosecutor Unsparing in His
Condemnation and Makes Mrs.
Hermann Weep in Court.
OREGONIAN NEWS BUREAU. Wash
ington, April 26. The jury which Is try
ing Binger Hermann on the charge of
destroying Government records of his
correspondence while Commissioner of
the General Land Office, retired at 3:Z7
P. M. today after a stormy scene be
tween lawyers, during which the lie was
passed. At 10 o'clock the Jury was locked
up for the night, having failed to agree,
and no verdict can be returned until
court convenes at 9:45 A. M. tomorrow.
All evening Hermann and his wife wait
ed in the office of their aon-in-law,- H. P.
Galley, just across the street from the
court, hoping for a verdict. They went
home when the .Jury was locked up.
Lawyers Have Brain Storm.
The lawyers' verbal pyrotechnics were
fired oft during the closing argument of
United States District Attorney Baker
this afternoon. It was the first and only
sensational scene to mark the 12 weeks
of trial. The exciting scene was precipi
tated when Mr. Baker asked whether the
Jury had observed counsel for the defense
at the time Mrs. Hermann was asked in
crqos-examinatlon If she had talked' with
anyone In regard to her testimony.
"Does counsel by that say that I sig
nalled to the witness while she was on
the stand?" Mr. Worthington Interrupted,
rising; "because, if he does, only the
presence of the court .prevents me from
resenting such a statement as It should
be resented."
"No; but I do say that Mr. Worthing
ton blushed and appeared confused," Mr.
Baker retorted. '
"It Is a falsehood," Mr. Worthington
announced.
' "There will be no more of this col
loquy," Justice Stafford announced. "I
will treat as contempt of court any fur
ther reference of the sort.'
A few minutes later Mr. Baker conclud
ed his argument and Justice Stafford di
rected a recess.
Knew of Puter'g Frauds.
Resuming his argument this morning
Mr. Baker said:
"This man knew of frauds in the Puter
land cases," pointing an accusing finger
at Hermann. "He cannot come here and
say that Governor Richards, then Assist
ant Commissioner - of the Land Office,
passed the claims to patent and by that
means wash his hands of the whole trans
action and assert his innocence, now that
the frauds have been exposed. I will say
he chose the shrewdest way to cover his
tracks, but he had the papers on his desk
and as Commissioner and head of the
bureau It was his business to stop a
transaction In which he knew were de
fects." Referring to the Hyde-Benson cases as
they have cropped up during the trial, the
United States Attorney said the Govern
ment had proved the existence' of a con
spiracy. "Hermann was the paid tool of
Senator Mitchell and Mitchell was the
paid tool of the Hyde-Benson combina
tion,"' he asserted.
Befogs the Issue.
"The defense haa sought to befog the
Issue at hand. They knew they -could not
come hre and acquit this defendant of
the charge against him, so they made an
effort to try Harlan and Vaik, Land Offlce
clerks, who have admitted giving advance
Information " to the California syndicate.
Mr. Worthington has told you Valk and
Harlan are felons. Valk is a felon be
cause he expedited this class of cases;
Harlan is a felon because he expedited
HERMANN
this case. Hermann is Innocent of wrong
doing 'because he did the same thing."
"There is nothing in evidence to show
that the Hyde-Benson cases were fraudu
lent," Mr. Worthington Interjected.
"We differ about that," Mr. Baker re
plied. "I say that the cases were fraudu
lent if advance Information concerning
them was paid for. If they were expedited
for money, or if the prize at stake was
a Senatorshlp from Oregon."
"What reason did he give for destroy
ing the letter-press books?" Mr. Baker
continued. "He said he did not want to
pay freight on them to his home In Ore
gon. I aay he destroyed them to protect
himself. Ha destroyed them because he
saw tracks behind him and because he
wanted to cover the trail."
Might Break Vp Land Office.
"Why, I tell you, gentlemen of the jury,
if any one could have taken any letters
he chose of the correspondence - of the
General Land Office, answered them and
called the answers "personal," or could
have called them official,' as he chose, he
could have broken up the Land Office. Yet
that Is what you are asked to believe this
man did and to reconcile that with his
declaration that his letter-books were per
sonal. "We have shown he diverted all mall
from Oregon to his own desk and that
the answers were copied Into books and
later destroyed. Thus he took one block
of mail and answered It and called It
personal, and at the same time letters
of similar import from other states were
being answered In divisions of the Land
Offlce and copied Into division books."
Fines Might Hun to Millions.
Mr. Baker also laid great emphasis
upon the fact that the defense had not
Introduced one division letterbook con
taining a copy of a .letter written by
Hermann on the blue letterhead of his
private offlce. He read Illustrations from
the letterbooks of ex-Commissioners
Carter and Stockslager to prove that of
ficial letters were copied into those "per
sonal" books and Indicate the habit of
commissioners of the Land Offlce to per
mit official letters to be copied not into
division books exclusively. Mr. Baker
gave an illustration on a blackboard
showing- that If the defendant had used
penalty envelopes to the extent claimed
for carrying "personal" letters through
the malls, he would have been liable to
fines aggregating J5,400,000.
"If Hermann was here on trial on
the charge of using penalty envelopes for
private purposes, can you believe the
claim would not be that the letters they
carried were official, written by the com
missioner by reason of his position in the
Land Office?" Mr, Baker concluded.
Harsh Words for Hermann.
Taking the incident In the Portland
restaurant testified to by Messrs. Ritten
house,. Hough, Muller and - Hermann an
his final point, the United States Attor
ney asserted that Hermann and Hough
had deliberately lied, that Muller had
given mistaken testimony solely because
Hough had argued him Into it and that
only Rittenhouse told the truth.
"Binger Hermann has told -you from
the stand that he asked Rittenhouse and
Hough on that occasion whether they
had preserved their stenographic note
books," Mr. Baker said, "and that, re
ceiving an affirmative answer from Rit
tenhouse and a negative from Hough, he
replied: "I wish you boys had your books,
because then I could show the world
what was In those letterbooks. I can
prove to you that the conversation never
occurred as narrated by the defendant.
If he did say It, why did his counsel ob
ject and prevent us from reading the
contents of the stenographic notebooks
when they were produced here In court?
I say he has shown a fatal inconsist
ency."
Mb, Worthington strenuously objected
to the form of Mr. Baker's reference to
the notebooks and a moment later de
clared the statement by the United States
Attorney that "Worthington seemed con
fused and blushed during the cross-
examination of Mrs. Hermann," to be a
falsehood.
The United States Attorney closed his
argument with an appeal to the Jury to
send out a message of justice to the
country.
Judge's Charge Very Fair.
Justice Stafford began his charge to the
Jury at 11:60; he concluded at 3:28.
Throughout he was manifestly fair so
fair that this fact was commented upon
in court by counsel for the defense and
no exception noted. This is the only big
criminal case tried In Washington in late
years in which no exception was noted
to the charge of the Judge. If there was
any bias in the charge, it was in the di
rection of the defendant, for Judge Staf
ford took particular pains to indicate to
the jury that It must return a verdict of
acquittal unless convinced beyond all
reasonable doubt that Hermann was
guilty on every point In the Indictment,
Several times today, while Mr. Baker
was arraigning the defendant, Mrs. Her
mann, who sat at her husband's side,
broke down and cried. Herknann himself
(Concluded on Page 2 )
LET RAILROADS
TO
Ingalls Says the People
Are Supreme.
DEFIANCE PROVES HOPELESS
Big Four President's Advice
to Railroad Men.
TELLS BLUNDERS OF PAST
Advises Strengthening of Interstate
Board and Co-operation "With It.
Believes That Popular Anger
Will Soon Pass Away.
PITTSBURG, April 26. The personnel
of the Interstate Commerce Commission
was. criticized by W. A. Terry, general
freight agent of the Pittsburg & Lake
Erie Railroad, In an address at the an
nual dinner of the Traffic Club of Pitts
burg. Mr. Terry thought it queer that a
body should assume to regulate the rela
tions of railroad and shipper, and yet not
have In Its membership a single repre
sentative of either interest. In any event,
the commissioners should, he said, have
associated with them in an advisory ca
pacity a man who could supply the neces
sary knowledge.
Another address was given by M. E.
Ingalls, chairman of the board of direc
tors of the Big Four System.
Origin of Public Control.
. Mr. Ingalls began by saying he would
tell "a plain unvarnished story of
events in which I was interested with
many of you., and, whatever there may
be of criticism of what was done In the .
years in the past, I assume my full re
sponsibility as one of the principal actors
in tha scam."- .- . .
He then proceeded to tell of the craze
for railroads immediately after the dis
covery of steam locomotion and how
states, cities and counties gave land and
bonds without stint. The contractors sold
out their bonds and stock and new own
ers took control and tried to earn divi
dends and interest. He continued:
The people saw that they had given away
valuable privileges without any limitations
and the result was the Grange legislation.
In which the people took the ground that
owners and managers claimed that they
were like private corporations and could
be managed independent of public control.
In the end the decisions were in favor of
the people th.at the railways were public
Institutions and could be controlled by leg
islation. Mr. Ingalls told of the alarm of East
ern investors at these decisions and con
tinued: And yet, after the people secured th
power they sobered up and the persecution
ceased. The corporations made money and
there was nothing of the ruin that was
threatening.
Anti-Pooling Decision.
He next described conditions prior to
the passage of the interstate commerce)
act of 1886, how it was considered proper
for railroads to make secret contracts,
selling their transportation to wholesale
bidders at the best prices possible and
how when competition got too severe,
pools were made by which the business
was divided and the rates secured. He
continued:
When the interstate commerce law was
passed In .188(3, prohibiting pooling, such
arrangements were all ended and the rail
ways endeavored to conduct their business
by agreement under that law. This went on
very well for a year or two, but gradually
the competition for business Increased. One
line would endeavor to get more business
and in retaliation another line would pay
somewhat more, and the result was that
the system of rebates grew Into tremendous
proportions. Published tariffs were disre
garded and it was a struggle for existence
among the different lines.
This condition brought some roads to
the verge of bankruptcy In 18,, when the
Eastern lines held a meeting in New York
to consider measures to avert disaster.
The result was the Joint Traffic Asso
ciation agreement to maintain rates, but
this agreement was declared in conflict
with the Sherman law. Mr. Ingalls con- .
tinued:
Advice to Obey Law Scorned.
This fell upon all of us like a bombshell.
The question was, what to do? . My own ad
vice at that time, in which I stood almost
alone, was that we should meet the can
squarely say to the Government that the
railways could not be conducted without some
right to make an agreement and that this
decision had produced anarchy; that every
association should be dissolved and each man
should manage bts railway in the beat man
ner possible, and use all his Influence with
Congress to secure Just and proper legislation
that would enable us to conduct our business
according to law. The answer to -that was
that it was dangerous that different rates
would be made and panic would be produced
and there would be more bankruptcy and more
receiverships. It Is a pity that we did not
have them then, and be done with them.
Then various secret agreements were
made, but each road tried to get aa much
business as possible and more business
was done under secret rebates and con- -tracts
than under published rates. Millions
of dollars were paid out without voucherr
or receipt, But there were no defalcations.
He went on;
Community or Interest.
In the meantime, the securities of the rail
ways had drifted to Wall street and were
controlled by cliques who used them perhaps
Dot for investment so much as for counters
in the great game of speculation that they
were playing.
Then cams in 1899 'the device of com
munity of interest, six or seven men buy
ing control of practically all railroads
and maintaining rates by joint ownership.
The Northern Securities suit followed, of
which Mr. Ingalls said:
If It had not been for that suit a few men
(Concluded on Fags .)
SUBMIT
LI