VOL. XLVI.-NO. 14,476. PORTLAND, OREGON, WEDNESDAY, 31 AY 1, 1907. PRICE FIVE CENTS. I TURNS TABLES DN II! Jerome Accuses Their Men of Fraud. FOUR ARRESTS MADE ALREADY Untermyer Says Thieves Are Crying "Stop, Thief!" TRYING TO OBSCURE ISSUE Forgery Alleged Against Policyhold ers' Committee Employes, Includ ing Scrretury Scrugham Dam aging Evidence by Women. XBV YORK, April 30. Sensational 're sults have quickly developed in the In quiry by the District Attorney's office into the recent election of directors of the New York Life Insurance Company. George Scrugham, manager of the Inter national Policyholders' Committee, which inspired the present Investigation, making grave charges . against those who con ducted the election, was himself arrested at Albany tonight, and put aboard a train for New York. Scrugham is charged with conspiracy, and he was the third man Identified with the International Policyholders' Commit tee to be taken into custody since noon today. The others are Charles Stirrup and Charles P. Carrington. These two were not members of the committee, but were employed as watchers from the committee at the election. Stirrup was a watcher at the directors' election of the Mutual Life Insurance Company, while Carringlon acted In a similar capacity at the New York Life election. Conspiracy and Forgery. They are specifically charged with hav ing "unlawfully conspired together for the perversion and destruction of the due administration of the laws of the State of New York with relation to the election of the directors of the New York Life Insurance Company.' Stirrup, it was al leged, was employed in the office of the policyholders' commltteee previous to De cember IS, and the offense with which he is charged was committed prior to that date. Barlier today Jacob Prank, a New York Life Company agent, was arrested, charged with forgery In the third degree. TYank had been summoned to explain the signatures of several policyholders to al leged forged ballots cast at the recent lection of directors of the New York Life. It is said Frank made a statement to Assessist District Attorneys Smith and Nowe. that will affect the prosecution of the ballot-box cases if any Is undertaken. Fought Adininintration Ticket. The policyholders' committee, headed by Scrugham as manager and Samuel Untermyer as counsel and with a mem bership of many distinguished persons in this country and Europe, fought the ad ministration ticket in the recent elec tions of directors of the New York and Mutual Life Insurance Companies. Scrugham was arrested while in Albany in connection with insurance legislation looking to the reform of insurance com pany elections. He was expected here to night, and was awaited by representa tives of the District Attorney's office on the train which reached the Grand Cen tral station at 10:10 o'clock. When he did not arrive, his arrest' was ordered in Albany. Cry of "Stop, Thief!" Samuel Untermyer. counsel for the policyholders' committee, gave out the fol lowing statement tonight: My attention was only called to the com plaint late tonight. During a considerable part of the campaign I was in t Europe, t know nothing about the subject of the complaint except what I have Just heard. Hut if looks on Its face very much Ilk. a cry of "Stop, thief!" on the part of the com panies. They know that the forgeries on the part of the companies ran into the thousands and that they would like to ob scure the issue. I have no doubt Mr. ScriiKham will he able fully to meet this lateyt move on the part of the companies to cover their tracks. Since the elections in both the New York and Mutual Companies on December IS, the District Attorney's office has been looking into the counter-charges of crooked work by the administration party and the policyholders' committee. Rep resentatives of both sides have been heard and many be Hots have been ex amined. Nothing definite was done, how ever, until after the official count was announced, showing the administration tickets to be the victors by large ma jorities in both companies. Wherein Crime Consisted. Carriugton, Stirrup and Scrugham were in the District Attorney's office yesterday and examined separately. To day four women clerks employed by the policyholders committee in preparing ballots were examined. Soon after that the complaint against the three policyholders' committee employes was drawn . up. Stirrup and Carrington could not secure- bail and were locked tip. The three prisoners will be given a hearing tomorrow morning. In tiie complaint Mr. Howe declares that the alleged conspirators had In their possession on December 15, 1906, a large number of ballots for the pol icyholders' committee ticket, which were not at that time, according to the complaint, in proper form to be counted. The complaint further asserts that the SURANGE ANTIS prisoners "did conspire together to tam per with the said defective ballots and so altered and changed them without the consent of the policyholders who had signed them as to make them to be in due form of law and proper "to be counted at the said election." Signatures Forged on Envelopes. Many ballots, it is further complained, were not enclosed in envelopes which hud been signed by the policyholders, as required by law, that the insur ance inspectors of elections might be deceived and count for the policyhold ers' committee ticket a large number of ballots which were not valid and en titled to be counted. The complaint adds that the persons named caused a large number of the ballots "to be al tered. Including the forgery of names of policyholders and of witnesses," and had them delivered to the board of In spection. Mr. Howe makes charges on "informa tion and belief, which came to him from Miss Anna Mason, Miss Evelyn Miles and Mrs. Francis Goldsmith, who were em ployed by the policyholders' committee." Miss Mason, Mr. Howe says, told him that . one of the men under arrest had Instructed her on Sunday, December 16. to take certain ballots for the policy holders' committee ticket and to copy tne name of the policyholder and his address and policy number on envelopes, one for each ballot. She did so, and she added that in the previous few days she had seen a large number of the envelopes on which she wrote names as well as the ballots at the office of the inspector ..of elections. '". Imitate the Original, , Miss Miles declared that she was' In structed to Imitate as nearly as possible the policyholder's signature. The com plaint says Scrugham admitted he filled In certain envelopes and told the girls in the employ of the committee to fill in others. Carrington and Stirrup were released from the Tombs late tonight on bail. TURN'S ITS BACK ON' HUGHES Senate Committee at Albany Keeps Commissioner In. ALBANY, N. Y.. April 30. The judi ciary committee of the Senate today by a vote of 7 to 6 decided to report to the Senate without examination as to the removal of Otto Kelsey from the office of state superintendent of Insurance recommended by Governor Hughes on February 20. This vote Involved the defeat of a resolution intended to make it the Judgment of the committee, "That the recommendation of the Gov ernor be concurred in." E MISSES ITS MARK BLOWS CP CABRERA'S HORSES, NOT CABRERA HIMSELF. Ingenious Attempt to Kill Guate malan President While' Taking His Morning Drive. GUATEMALA CITY. Aprii 30. Estrada Cabrera, president of Guatemala, nar rowly escaped assassination today. He left his private residence at 7:30 o'clock in the morning for his customary drive, ac companied by his staff. While he was passing along Seventh avenue, an explo sion, at first supposed to have been caused by a. bomb, occurred, killing the horses attached to the presidential car riage, wounding the coachman and Injur ing several staff officers, including Gen eral Orellena. the chief of staff. The president, who was not injured, displayed great presence of mind. Alight ing from the carriage, he inspected the surroundings and then returned on foot to his residence. A careful examination showed that the explosion had been caused by a mine. The conspirators dug a tunnel from one of a group of houses rented by a man named Rafael Robil, placed explosives under the roadway and connected them by a wire with a bat tery in Robil's house and from there discharged the mine. Many suspects have been arrested. Peace prevails throughout Guatemala and the government officials say they have the situation well In hand. PAID ON PERSONAL NOTE Hint That Harrlsburg Boodling Is Done Under Cover. HARRISBURG. Pa.. . April 30. Testi mony involving the name of Congressman H. Bird Cassell. president of the Pennsyl vania Construction Company, was given today at the examination by the Capitol Investigating committee of ex-Representative Marshall Williams, of Pittsburg, who is alleged to have accepted $10,000 to keep quiet after he had been refused by John H. . Sanderson, of Philadelphia, general contractor for the Capitol -furnishings, a share of the $2,000,000 award for electrical fixtures for the building. Williams was asked by Senator Dewalt to repeat the name of the party or parties who had given the $10,000 in question. Williams refused to admit that the money was presented to him. He declared that he had secured it from a person in New York on a note which he had gi-en last August, and which he declared is due in August. GIVE NOTICE BY WIRELESS Earthquakes Cause Machine to Vi brate Hours Before Shock. MANILA. May 1. Earthquake experts believe that it is possible to "be warned by wireless telegraph eight or 12 hours in advance of the shock. Tests are now in progress at Manila as the result of observations made at the time of the last temblor. At that time vibrations in the wireless were noted eight hours before the earthquake was felt. The phenomenon can be explained on no other hypothesis. Sew Head of Telephone Company. BOSTON, April 30. F. P. Fish has resigned as president of the American Telephone & Telegraph Company. Mr. Fish will be succeeded by Theodore N. Vail, who was the first vice-president ol the company. Mr. Flsii resigned owing to his health. SLUMP STOCKS SQUEEZED GATES Greatest of Brokers Quits Business. DEBTS OF FIRM $90,000,000 Sacrifices Gilt-Edge Stocks to Carry Loans. PARTNERS ATTACK GATES Famous Plunger Unable to Carry Immense Load and Cannot Sell Without Starting Another Big Panic in Wall Street. FIOl'RES ON GATES' FORTl'XK. John W. 100.1. . . Gates' fortune. .$50,000,000 John W. Gates' fortune. 1807 10.000.000 G. W. Gates A Co.'s lia bilities In March 80,000,000 John W.'s Investments in firm. . . .' l.ooo.nno "C. G.'s" investment 2,1)00,000 Rent New York office, per annum. : 100,000 .CHICAGO, April 30. (Special.) The largest brokerage house In the world, Charles G. Gates & Co., is to go out of existence.. Partners of the firm acknowl edged today that they had decided to quit business. Rumors to .he effect that Gates & Co. intend to retire had been heard for some time, but the members of the concern had denied the reports In an emphatic manner .every time the ques tion was put to any of them. The past denials and today's confes sion of liquidation are- explained by the remark that, when the reports were first heard, the firm's liabilities were so heavy that an acknowledgment of dissolution would have meant ruin to the house and a second panic on the Stock Exchange. i- . vBig Peht Cbiisos "Dissension. Charles G. Gates & Co. owed approxi mately $90,000,000, All of which represented Wall-street deals. These staggering lia bilities were accentuated by the fact that grave dissensions had broken out among the 12 partners. Several of the latter ob jected, not only to the enormous obliga tions the firm had incurred, but to the manner the debt had been piled up. It was charged that the. chief special part ner, John W. Gates, was responsible for one-half of these liabilities, and it was In sisted that this be reduced, It not liqui dated, at once. The determination of three of the general partners to have this settle ment was the beginning of the end. The New York banks scented trouble and demanded that the firm take up its loans. The larger part of these obligations consisted. of loans on Ten nessee Coal & Iron Company shares, THE SENATOR FROM OREGON I ' " '''''' . ! ' ' " "aJ' .1. .......... : i stock of the United States Realty Com pany and huge blocks of the shares of the Republic Iron Steel Company corporations-which John W. ' Gates con trolled directly or irv which he had a large Interest. The market for Ten nessee Coal and for Realty was such that the lines could not be sold. A test was made at the time with Tennes see. 'Awful Sacrifice of Stocks. A thousand shares felled the issue 14 points. . It was understood that part of the loans were thereupon transferred to private individuals, while the other part was remargined to a comparative ly safe level. But to supply the addi tional margin the firm was said to have sold gilt-edged securities at more or less of a sacrifice. Stock of the Parmelee Bus Company, paying 17 per cent per annum, was disposed of at a 17-rinee von Buelow, German Chan cellor, Who Tells Policy on Limit ing Armaments. heavy concession. The transaction is said to represent about one-fifth of the total capital Issue of the company. Gates also is said to have relinquished liberally of his holdings of Chicago bank shares, among them a block of Illinois Trust & Savings Bank certifi cates. CUBANS MOB U. S. SAILORS On Way to Cruiser Tacoma Are 'At tacked and Injured. NEW YORK, May 1. A dispatch from Havana to the Herald reports that a num ber of sailors from, the . cruiser Tacoma were wounded in on affray with the po lice of Santiago yesterday. Commander Tappan. reporting the affair, says: "About 2 o'clock this morning a small party of men from the Tacoma. were at tacked by the police of Santiago while on their way down to the wharf. Ensign Brisbon, who was present in civilian clothes, was also attacked by the police. Nine others were injured or bruised, one man having his arm fractured and Henry Lee wus shot in the lungs." Governor Magoon has telegraphed to in vestigate the trouble and report to hlra. No political significance is attached to the encounter in Havana. ' Will Parade Despite Kefusal. MONTREAL, April SO. Mayor Ekers has refused the requests of the Social ists and anarchlses to parade on May Day, giving as his reason the -excitement caused, by the parades last year. The heads of the two organizations have announced that they Intend to parade, notwithstanding. PAYS HIS RESPECTS TO THE WORLD NOT READY TO SHEATH SWORD Von Buelow Answers Germany's Critics CONDITIONS ARE TOO DIVERSE Has Not Found Basis for Lim iting Armaments. STILL DEVOTED TO PEACE Will Not Try to Prevent Discussion at The Hague by Other Powers. Keichslag Resents Speech Maild ' by ' Carnegie. BERLIN, April 30. There was a general debate in the Reichstag today on Ger many's foreign relations. Incidentally Andrew Carnegie's recent reference to the decision of the issue of war and peace as being in the hands of Emperor Wil liam was criticised and classed as a dis tortion of facts. Speakers of - various parties suggested to Chancellor von Bue low that Germany should take no part In the discussion of the limitation of arma ments at the Hague peace conference. The Chancellor replied that Germany did not object to letting other powers discuss the matter, but would hold aloof. Prince von Buelow referred to the recom mendation of the first peace conference ut the Hague that the powers study the question of the limitation of armaments. He added: No Formula for General Treaty. Germany has complied with this recommen dation, but has not found a formula which takes into account the great diversity in the georraphlcai, economic and military condlttous of the various states or one which would be calculated to remove these diversities and serve aB a basis for a treaty. So lonr as there is not even a hope for a satisfactory solution of this question and no method for Its rmctical apvlieatioji ex!K v cani.ot -expect anything from Its discueaion at a confer ence. . The Chancellor said the mere prospect of a discussion of the question of the limitation of armaments had a disquieting effect upon the international situation. He continued: . Peace by Readiness for War. Germany's abstention from -.the . question does not mean that she cherishes a secret de sire for war or that she is actuated by mili tary ambition or other selfish motives.- Other powers feel the same as Germany regarding the limitation proposition, and many friends of peace in France, Great' Britain, Italy and the United States think it would not serve the cause of peace to give way to illusions and lose sight of realities. Germany hitherto has secured peace by keeping in readiness for war. This policy has been proven wise. We never once misused our military strength and never will. Many persons have advavd us to take part in the discussion of the limitation of ar maments in order to show Germany's good will, since nothing can come of the matter in any way. But Germany's peaceable policy SENATOR FROM WISCONSIN has been m sufficient answer to all the asper sions. "Germany does not wish to prevent other powers from discussing the limita tion of armaments, if some practical re sult is reached by such discussion, Ger many will conscientiously examine whether It harmonizes with the protec tion of her peace, with her national In terests and with her special situation." Indorse Efforts, for Peace. The Chancellor reminded the Reichstag that his position had been Indorsed by speakers representing all the parties in the house, and added: "Supported by this unanimity, Germany will show by her course at The Hague that she sincerely indorses all efforts cre ated practically to promote peace, civili zation and humanity." The Chancellor discussed other phases of Germany's foreign relations, endeavor ing to allay the nervousness In Germany respecting King Edward's visits to Presi dent Fallieres, King Alfonso and King Victor Emmanuel. Answer to Carnegie. Andrew Carnegie's recent utterances to the effect that the decision of war or peace lies In the hands of the German Emperor called out a decided protest by Baron von Hertllng, Clerical. He said he recognized the fact that Mr. Carnegie's speech was thoroughly friendly to Ger many, but It was "an illustration of the misconceptions entertained abroad re specting Germany as being an autocratic ally governed country." Germany was headed by complicated political, mechanism, . in which a foreign policy which opposed the will of the Ger man people was Impossible. Dr. Winckler, Conservative, took excep tion to Baron von Hertllng's recognition of the friendly character of Mr. Carnegie's words, which the doctor regarded as a distortion of facts, adding: "It Is a singular idea to represent Ger many and the German Emperor as dis turbers of the world's peace." THREE ALLIES WILL CONFER Austrian Minister to Visit Von Bue- , low and Tittonl. ROME. April 30. Negotiations are in progress looking to a meeting between the Italian Foreign Minister. Signor Tittonl. and the Austro-Hungarian Foreign Minis ter, Baron von Ahrenthal, at Venice In May. King Victor Emmanuel will be In Venice at 'he time. The meeting be tween Signor Tittonl and German Chan cellor von. Buelow at Rapolla and King Edward and King Victor Emmanuel at Gaeta and the coming meeting at Venice confirm the supposition that an important decision will be taken regarding the Hague peace conference and the triple alliance. VIENNA, April 30. Baron von Ahren thal, the Austro-Hungarian Foreign Min ister, tinight departtrij for Berlin, taking an autograph letter from Emperor Fran cis Joseph to Emperor William. Baron von Ahrenthal will Interview Chancellor Prince von Buelow. After his return he will visit Venice, where he will meet King Victor Emmanuel and Signor Tit tonl, the Italian Foreign Minister. Porter on Way to The Hague. PARIS. April 30. General Horace Porter, ex-Un!ted States Ambassador to France, arrived here today on his way to The Hague, as one of the American delegates to the peace conference. CONTENTS TODAY'S PAPER The Weather. YESTERDAY'S- Maximum temperature, 67 degrees; .minimum. 41. TODAY'S Fair; northwesterly winds. ' Foreign. Chancellor von Buelow declares German policy on limiting- armaments. Page 1. Russian Dounia saved by passage of army bill and apology for Insult. Page 4. Caurc of revolt in Montenegro. Page 8. Attempt to blow up Guatemalan President. Page 4. National. Summary of appropriations by Congress. Page 8. President disposed to pardon January. Page Politic McCIellan refuses to remove Police Com missioner Bingham. Page 3. Only Republican chairman asserts Inde pendence of committee. Page 3. Domestic. Haskin on communist colonies which failed. Page 5. Chandler and McCoy start balloon voyage from St. Louis to Washington. Page 2. Transport Buford sails with flour for- Chi nese famine sufferers. Page 4. Ruefs lawyer suppressed by both Judge and prosecutor. Page 3. John W. Gates' brokerage house fails. Pago 1. Hill and Harrlman roads provide against another coal famine. Page li. Independent theater men say merger docs not affect Shubert's shows. Page 5. Employes of policyholders committee ac cused of fraud in insurance elections. Page 1. Rescuers reach Imprisoned miners, but can not get them out yet. Pagu 1. San Francisco carmen voting on strike question. Page o. Pacific Coast. Second victim adds to mystery of Woodland murder case. Page 6. Owing to error in law money and credits will not be exempt in Washington. Page i. Editor McManus acquitted of Bates mur der. Page 6. Commercial and Marine. ' End of the Coast sugar war. Page 17. Wool lower In London. Page 17. Further decline In Chicago wheat market. Page 17. Stork market manipulated to sell Union Pa cific. Page 17. " Large wheat, lumber and flour shipments -during April. Page 7. Portland and Vicinity. - Southern Pacific Ignores opinion of Oregon Railroad Commission that lumber rates to California are unjust. Page 32. Pink domino burglar to plead guilty and take medicine. Page JO. ' Candidates Indorsed by the Municipal As sociation. Page 10. George H. Thomas challenges Mayor Lane to fair combat for Mayoralty. Page 11. Portland bank clearings for April show 74.4 per cent increase over same month of 1006. Page 5. Multnomah taxpayers pay taxes with unpre cedented promptitude. Page 16. Streets committee of Council passes over application of United Railways for fran chise extension. Page 16. Ice manufacturers raise prices 40 per cent. SEVEN STILL LI; PENNED BY WATER RescuersReach Miners at Foustwell. BUT CANNOT BRING THEM OUT Swimmers Carry Food and i Drink Underground. MIKE BOLYA THE LEADER Leads Companions to Safe Plare- in Mine and Causes Husbanding of food and Light They Cannot lie Rescued as Yet. JOHNSTOWN. April 30. After being; en tombed since last Friday noon in the Berwin-White Coal Company mine No. 3S, at Foustwell, m-ar here, the seven miners who were shut off from the world by a sudden rush of water caused hy the breaking of a wall of an abandoned mine, were rescued at 10 o'clock tonight. The men were greatly exhausted. Owing- to their weakened condition. It was decided not to bring; them out until after the mine had been drained. The men were reached at 10 o'clock by Stiney Rodon and Charles Ream, who made a dash through 50 feet of water filled headings. Early in the day John Bolya, brother of one of the' imprisoned men. and three comrades made a futile attempt to reach them. Second Rescue Party Wins. They came back half-drowned! and reported that portions of. the'. head- ' Ings were still completely tilled', with water and that more pumping would have to be done before the impris oned men could be reached. The ef forts at pumping were then redoubled. At 10 o'clock the water had o fr gone, down that it was resolved to make on.o more attempt to break through ta the overcast, where it was believed the men were still alive. Rodon and Ream volunteered for: the service. Over an hour elapsed before either man was heard from and then Ream came swimming back through' the heading, bringing the first newa from the imprisoned seven. The trip nearly . ex- ' hausted Ream. He reported that the. seven men were alive and all in good condition, but that until more pumping was done the passage to the place where they had taken refuge was Impassable to those who could not swim. Then It was resolved to allow them to remuln where they were until the heading had been pumped out. Husband Food and Light. Ream and his comrade carried to the imprisoned men simply a Mask of brandy and a little water. He reported that Mike Bolya had, since the breaking of the walls between the abandoned workings, been in charge of the movements of his comrades. Bolya . is acquainted with every turn of the mine. When the Hood broke out. he led his comrades to the furthest point .in the heading, where the "overcast" was situated. Under Bolya's direction each man before fleeing seized his lunch basket. When they arrived at the "overcast" every lamp but one was extinguished and one by one the lamps were each burned out until, when they were reached by Rodon and Ream, there was but a single light remaining, and that in danger of running low at any time. Afraid to Drink Mine Water. When stock was taken of the available supply of provisions, it was found that three baskets were but half emptied. This scanty store of rations was hus banded until Monday morning, since when the men had had nothing to eat. During the whole time they had gone without water, fearing to drink the water from the abandoned workings. Read said that at the place1 where the men had sought refuge there had been a supply of ties left for track-laying pur poses. With these Bolya and his com rades had bui't a platform upon which they had sought refuge and, when found, they were not only high, but dry. After-Kffects May Be Serious. Shortly after 12 o'clock Delaney made his way to the place where Boyla and his comrades had sought refuge and returned with more details concerning: their condition and experiences. With in a short time after the flood broke loose, according to Delaney's story, Bolya and his companions had rigged up a pump, wliUh they found and be gan to pump the water that lay be tween them and the pit mouth. Into, a dip on the other side of th'm. At 1 o'clock this morning the men had not been brought out of the mine, although a special train was ready to take the party to the hospital. Although tiie seven men am now in good spirits and in apparently good condition, th? doctors at the pit mouth fear that, when they are brought out into the light, the after-effects may prove serious. Great Northern Train Off Track. ST. PAl'U April 30. A report re ceived at the Great Northern Railroad headquarters here Bays that passenger train No. 1 was derailed at 8:45 o'clock last nl?ht two miles east of Midvale, Mont. The entire train with the ex ception of the engine and compartment caf was derailed. A mail clerk and several children on the train were slightly Injured. The cause of the ac cident la not known here. -VI '1 VTc7 linn