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VOL. XLVI. XO. 14,493.
PORTLAND, OREGON, WEDNESDAY, MAY 22, 1907.
PRICE FIVE CENTS.
v.
.
-
CRISIS CONFRONTS
SAN
FRANC SCO
Labor on Strike and
Money is Tight
RETRENCHING ALL ALONG LINE
Constantly Rising Wages
Hamper Builders.
BANKERS RESTRICT CREDIT
Serious Condition Follows Logs of
Financial Independence Which
Resulted From Earthquake.
Trade Paralyzed by Strikes.
SAN FRANCISCO. May 21. (Special.)
Since the Are and earthquake of April,
3906. conditions In San Francisco have
been unsettled, and the sensational events
of the last few months have not been
coduetve to the rstoratlo of a ormal sit
uatlo. Occurrnces of the last few weeks
have greatly aggravated an already deli
cate state of affairs. The wide sweep
of the Kraft Investigation, niw Hearing
completion, the disturbances incident to
the streetcar strike, the complexity of the
Industrial situation, the threatened cessa
tion of work on several buildings and the
tightening of the money market have
brought about dlsposltlln to retrench, at
least for a time, in conservative quarters.
The effect has been to cause apprehension
as to Industrial and financial conditions.
While in some quarters there Is a dis
position to regard matters as extremely
grave, the general impression prevails
that the Ills which beset the city are passing-
In their nature and not likely tl con
tinue long.
Lost Financial Independence.
Rudolph Spreckeli stated to your corre
spondent today that he did not believe
there was any cause- for alarm. He said
there had been tlo ready a disposition to
exaggerate. Naturally the Industrial and
financial situation are interdependent.
The basic cause of the financial changes
may be traced back to the big fire. Be
fore that time San Francisco was finan
cially Independent It was not a bor
rowing city. On the contrary, its banks
had large balances in Eastern cities, par
ticularly In New York.
With the fire, however,- San Francisco
lost Its , financial independence. The de
struction of property worth $400,000,000
was responsible for this. Having lost Its
financial Independence, it has been In
cumbent upon large Investors here to
borrow in other cities. San Francisco
Institutions have never been In the
outside markets for loans and New York
financial Institutions, at this moment
pressed for money on their own account,
are not disposed to make loans In San
Francisco. As a result, there has been
a heavy demand upon local banks for
money.
The result of this has naturally result
ed In a tightening of the money market.
Before the fire, loans on good security
could be secured at 6 per cent and by
well-known Investors for 5 per cent.
These loans are now being called In and
new loans made at 7 and 8 per cent.
Why Money Market Tightens. .
A further factor in the financial situa
tion has been the vast amount of re
building. All of the large contractors
have been heavy borrowers and right
here is where the industrial and the
financial situations have crossed. Here
Is an example of conditions:
Smith, who Is a contractor, begins
the erection of a building to1 cost J100.000;
he explains his plans to his banker and
Is able to negotiate a loan of $60,000,
When his building is half completed the
stonemasons strike. There is delay.
Then the electricians strike. Labor Is
scarce and the contractor must pay the
price. His steel does not arrive. Thus
confronted with unexpected trouble, he
finds that his building will cost $25,000
more. The banker must extend the
credit or lose his original loan. After
a while the same thing Is repeated and
the banker must advance ' another
125,000. In the end the banker has made
a loan of $110,000 on a building which
does not greatly exceed in normal times
$100,000 In -value.
Retrenchment AH Along Line.
There was but one way to meet the
Ituatlon, and the bankers adopted It.
They decided to cut down their loans.
The effect of this of course was to bring
about a measure of retrenchment and in
turn an inability to meet the Increas
ing demands of labor. That Is where the
situation stands at this moment. There
have been new requests for increased
wages and Instead of the usual assent
there have been refusals. This Is the
sase not only In the building trades, but
in all I lines of industry. Deadlocks have
resulted with their paralyzing effect upon
trade. - '
Dissensions Among Citizens.
' Complications other than the basic ones
noted above have entered Into the situa
tion. Patrick Calhoun of the United Rail
roads and William A. Herrln are in
terested In newly formed schemes which
sail for a citizens committee to take
sharge of municipal affairs. Rudolph
Bpreckles and Francis J. Heney have op
posed all these schemes and the merch
wU and business men have been inclined
to ally themselves with the so-calld citi
zens' movement.
NO ELISOR IN SCHMITZ CASE
Dunne Lets Sheriff Summon Jury.
Denies Charge of Judge.
SAN FRANCISCO, May 21. Unless the
present Intentions of the prosecution are
changed, an elisor will not have any
part in the selection of the jury which
will try Mayor Eugene E. Schmitz on
the five grand Jury charges of extortion
(with the assistance and by the con
nivance of Boss Ruef) of money from
keepers of local French restaurants. This
determination was expressed In a ruling
by Judge Dunne today, when he dis
charged from service all of the talesmen
remaining over from the late Ruef
venires and gave Into the hands of Sheriff
O'Neill the summoning of a new venire
of 60, returnable at 10 A. AL tomorrow
morning.
Whether It is the intention of the
prosecution to ask the court to order
Schmitz Into custody pending his trial is
not known. Assistant District Attorney
Heney has stated to the court that there
Is no such present Intention, but It is
gathered from Interviews with various
members of the prosecution that this may
be done a little later. .. . .
Judge Dunne today denied the motion
John E. Redmond, M. I., Lead
er of Irtnli ISntionallntm Who
Rejected Irish Council BI1L
of the defense for the substitution of
trial Judge, which motion was supported
by an affidavit charging that Judge
Dunne Is biased and prejudiced against
Schmitz and that Rudolph Spreckels and
those who are associated with him as
financial guarantors of the bribery graft
Investigation and persecution are carry
ing out a conspiracy to dethrone the
present municipal administration In order
themselves to assume the government
and secure valuable railway and water
franchises. In contravention of these
charges the prosecution filed counter-affidavits
denying any ulterior motives. It
Is expected tiat the impanelling of a
Jury will be begun tomorrow.
The largest crowd that has thus far
been attracted by any of the proceedings
was In attendance. Not only was the
courtroom crowded to Its utmost capacity,
but scores of people stood on the benches
in order to catch a glimpse of the defend
ant and lost no incident of the proceed
ings. Mr. Heney In reading his own affi
davit threw Intense feeling into his
voice and gestures. He denied, with
the greatest emphasis, that he or those
who are associated with him In the
prosecution have any ulterior motives
that they desire any political prefer
ment or municipal office or that they
have any purpose whatever beyond the
purification, of. . the . -municipality and
the punishment of those whom they
may accuse of corrupt practice.
MORE INDICTMENTS IX SIGHT
Gas and Electric Officials Before
San Francisco Jury.
SAN FRANCISCO," May 21. (Special.)
Eugene de Sabla John Martin, A. Hen
derson, wealthy directors of the San
Francisco Gas & Electric Company; G.
H. Umbsen a millionaire director of the
Farkslde Trolley Company,-and J. J. Ler
man and President Duffey, of the Board
of public Works, were before the grand
Jury today.. They were called to clear up
some of the doubtful points In the gas
and Parkside deals. If .present plans
carry, the end of ' the week will witnetv
an avalanche of Indictments.
TEARS MOVE THE JUOGE
BENSON A PITEOUS SIGHT IN
COURTROOM.
Ex-Member of Superior Bench
Pleads That He Be Not Fur
ther Disgraced.
SEATTLE. Wash., May 21 (Special.)
Ex-Superior Court Judge E. D.
Benson, accused of practices that mean
his disbarment if proven, pleaded with
tears In his eyes before Judge Morris
today that the charges be dismissed
and he be allowed to retire from the
practice of law with a clean record.
"I do not own a single law book,
and I will sooner chop wood for a
living than practice law again,"
pleaded Judge Benson. "Why should
you, as man to man, enter such an or
der if you arrive at that conclusion
when this case Is all gone? My name
has been heralded abroad and as much
barm as is possible has been done. It
does not seem to me that an order
forever barring- me from practising
law Is necessary. I have stood
enough."
Judge Morris feelingly-off ered to al
low Judge Benson's attorney to make
an argument for blm, and put off the
final hearing Indefinitely. Benson is
accused of advising a client to violate
a legal contract and . aiding him In
dodging the law;
New Forest Gnards In Oregon.
OREGONIAN NEWS BUREAU. Wash
ington, May 21. W. L. Donnelly and C.
L. Hearson have been appointed forest
guards on the . Blue Mountain National
forest and Joseph A. Harris has been ap
pointed forest guard on the Imnaha Na
tional forest, Oregon.
FRANK TALK BY
HENEY'S BACKER
Spreckels Gives Rea
son for Action
COMMITTEE OF 7 "BUTTS IN"
Danger In Permitting Board to
Resign Office,
NO DESIRE FOR CONTROL
San. Francisco Millionaire Says No
One Is Authorized to Blow His
Horn Explains Why Commit
tee and Prosecution Farted.
SAN FRANCISCO, May 21. Rudolph
Spreckels, who occupies a prominent
place In the prosecution of municipal
corruption in this city, defined his po
sition in the peculiar condition of af
fairs arising from the "graft". Inves
tigation and the reasons which con
strained the prosecution from co-operating
with the late "Committee of
Seven."
Asked by the Associated Press
whether the edtorial statements pub
lished locally to the effect that the
Committee of Seven was endeavoring
by Its Interference In municipal af
fairs to snatch the f rults - of victory
from Rudolph Spreckels, represented
his sentiments, he replied:
"I do not need anybody to blow my
horn, nor do I thank any one for try
ing to do It. These editorial utter
ances, 'despite any opinion to the con
trary, were made without my knowl
edge, consequently they must have
been without my consent.
Composed of Good Men.
"As far as the Committee of Seven
Is concerned. I have this to say: The
committee Is r wa composed of
met of fine -standing In -the communty.
No one will Impugn theirmotlves; but
It Is perfectly apparent tha.t they, even
though without their knowledge, were
selected by corporate interests; and
they . were appointed by Mayor
Schmitz. ,
"Now I and my assistants have our
hands full In prosecuting bribers and
grafters. That Is enough for any set
of men to undertake. We are not
concerned at the present time with the
duties which the Committee of Seven
felt itself called upon to execute. We
did not ask ' them to confer with us.
But when the committee called upon
Mr. Heney and he told them frankly
that I did not see why they, repre
senting a body of men who had made
no effort to hold up my hands in the
Initial or later stages ' of ' the bribery
THE STRAW HAT "LADIES AND GENTLEMEN, I'M
THE PROGRAMME "
graft Investigation, should at this time
butt in with a demand that we permit
the Supervisors to resign.
To Head Off Schmitz. .
The resignation at this time of
the Supervisors,' 16' of' them self-confessed
bribe-takers, would mean the
appointment by Mayor, Schmitz of a
new board, which would be of course
in accord with any plans he might de
sire to carry out I neei'nof Vugge's't
what such plans might be.
"It was the Intention of the commit
tee of seven, as announced to us when
the conference I speak of was sought,
to secure the consent of the prosecu
tion to the removal of the Board of
Public Works, the police committee
and the Board of Supervisors, whether
by resignation or otherwise. I made
it very plain to the committee that It
was our belief that-the committee was
created through .the Mayor by ' the
United Railroads and Mr. Herrln, 'and
that we could have no dealing with
It.
Tt la certainly true that the situation
now existing lor San Francisco demands
relief through a change of municipal
Officers. But L myself, am concerned
only with the carrying out of the In
vestigation and prosecution of graft
and bribery." . . . , ,
Denies Wanting Control.
"The charge that I seek to control
the politics of the city or to admin
ister municipal affairs, is absolutely
falser My sole endeavor and my sole
purpose Is to clean out the corruption
that has infested all forms of munici
pal life, and thereafter to formulate
and put Into effect a system of munlci
pay espionage and control which shall
make at least Improbable the resump
tion of those vices which we are now
trying to stamp out.
"It is true that we are keeping the
Board of Supervisors, the majority of
them self-confessed bribe-takers, in
office. We are doing this not by way
of political control, but for the purpose
of preventing the Mayor from naming
a new Board which would carry out his
orders and nullify to a great extent
our efforts for permanent reform."
On the statements made by' Mr. Spreck
els, President Calhoun, of the United
Railroads, dictated the following Inter
view: The action of the Board of Super
visors In regard to the forfeiture of the
franchise of the United ' Railroads is a
part of the actual Influence that caused
the Board to adopt the resolution threat
ening to forfeit the line of the Geary
Street Railway. Both of these resolu
tions were passed with the view of aiding
the striking carmen and in- furtherance
of the political plot to gain possession
this Fall through a new labor party to
be formed of the municipal government.
"Mr. Spreckels and his associates can
not escape the responsibility, for the
declaration of the mfessed -rimlnals
who compose the BoaiiS, of Supervisors.
When Mr. Spreckels ejd nfr associates
gave' these criminals immunity they
I guaranteed that these criminals would be
good dogs to do their bidding. The
prosecution cannot now treat these pup
pets as Independent officials. They have
said that they are dogs to do the bidding
of Mr. SDreckela and his confreres, and
now the masters must be responsible for
the bite of the dog."
Asked to Forego Closed Shop.
DENVER, May 21. Alderman Kenehan,
acting for Mayor Speer, and Max Morris,
of the American Federation of Labor,
tonight prevailed upon the striking mill
men and carpenters to forego their de
mand of the former for a closed shop and
meet the mill-owners tomorrow for the
purpose of settling the differences of the
millmen. The caroenters are on strike
I In sympathy with- the- millmen.
FOUR FORM FIELD
TO DEFEAT TAFT
Fairbanks, Knox, Can
non in Open
LARGE CROP OF FAVORITE SONS
Pennsylvania Will Spring Boom
for Knox Next Month.
ANTI-ROOSEVELT SCHEMES
Speaker Hobnobs With Standpatters,
AVho Fear Tariff Kevlslon Big
Interests Try to Smother Taft
With Many Political Rivals.
WASHINGTON, May 21. (Special.)
Four candidates for the Presidential
nomination now have burst from the
chrysalis stage and are attracting at
tention In the East- It is Taft against
the field, as the East sees It. The
three occupying the field who so far
have spread their wings are Fair
banks,' of Indiana; Knox, of Pennsyl
vania, and Cannon, of Illinois. The
list could be made larger, of course. If
It were to Include all who have been
mentioned or who are likely to be In
the field before convention times; but
It Is held down to those who at present,
have some real Impetus back of their
booms.
Cannon Getting Acquainted.
"Uncle Joe" Cannon's consplcuous
nes In the East, so to speak, during
the last few days, has aroused much
speculation among the politicians.
They see a good motive in the "getting
acquainted" conference with Governor
Hughes at Albany and yesterday's
visit to the headquarters of the Protec
tive Tariff League in New York City,
which has fluttered a great scare over
a renewed report that President Roose
velt may get busy with the tariff re
vision question In his message to Con
gress next Winter, as well as over the
prospect of concessions to Germany,
even if the general subject is not
tackled.
Mr. Cannon is expected . In Washing
ton tomorrow, after seeing his daugh
ter off for Europe from the metropolis,
and some of his Congressional . cro
nies are awaiting his coming In antici
pation of some heart-to-heart talks
on the Presidential situation. Sena
tor Hemenway of Indiana, who has the
Fairbanks boom In charge In hi state.
Is one of "Uncle Joe's" particular po
litical companions and is waiting at
the capital for him. The good feeling
that exists between the Fairbanks and
the Cannon boom and boomers is one
THE NEXT THING ON
of the striking features of the situa
tion at this stage.
The newest thing-ill 'the way of a
boom to excite lively Interest Is the
Knox movement, at present confined to
the State of Pennsylvania, but which
Is expected by Its managers to make
headway In New England after It Is
formally launched at the state conven
tion at Harrlsburg. June 6. Senator
Knox will be endorsed for the Presi
dential nomination at that time and
there also Is likely to be some Inter
esting' action In connection with the
platform adopted on the same occa
sion. Administration and antl-admlnistra-tlon
circles are looking forward to the
Keystone convention with equal Inter
est, the former with desire to know
whether there will be a declaration
for the Roosevelt principles broader
than mere Indorsement of the Presi
dent, and the latter with hope that the
platform will be so adroitly worded as
not to commit the state uncompromis
ingly to a "candidate of the Roosevelt
type."
Antls Spring Favorite Sons,
Everybody has an eye to what may
happen in connection - with the re-
f.';'
s ? r si
V . . ": ST.
Aua-ustlne Blrrell, Chief Secre
tary for Ireland and Author of
Irish Council Bilk
spectlve state delegations when fa
vorite son candidacies dissolve, as
some of them must soon after the bal
loting begins, if there is not a ma
jority for some one to start with. If
anyone has a majority of the dele
gates to go In with. It will be Taft,
the way things stand at present. It
he falls short the fighting -will begin.
It is very significant to find all those
who want to prevent the nomination Af
any. candidate supposed to have the
vigorous backing of the administration
encouraging the favorite son move
ments wherever they appear. At the
same time It is amusing to observe
how every candidate who bobs up Is
declared to.be a man who Is or hais
been In accord with the general Roose
velt policies.
Robert Vansands Supreme Regent.
NEW YORK, May 21. Robert Van
sands of Chicago was today elected
supreme regent of the supreme council
of the Royal Arcanum.
CONTENTS TODAY'S PAPER
Foreign.
Irish convention condemns . Irish Council
bllL Page 4.
Odessa mob avenges murdered police by a.
.. aault on Jews.. Page' 2.
Revolution begins In Salvador. .. rage 4.
- National.
Eye witness says negro soldiers did Browns-
- vllle shooting. . Page 7.
. Politics.
Presidential race Is Tatt against the field.
Page 1.
Difficulties about Oklahoma election. Page 5.
Secretary Root points the moral of corpo-
- ration and land-fraud exposures. Page 2.
Majority of Manufacturers' Association for
tariff revision. Page 4.
' Domeetle.
Flv .persons burned to death on lake
-' steamer. Page' 7.
Presbyterian Assembly to have field day on
llquqr question. . . Page 5.
Negroes shoot at lynching mob and deadly
revenge la taken.
Pittsburg rises against public utilities mo-
. nopoly. Page 4.
Barling says St. Paul road to Coast will go
ahead and be finished this year. Page 5
Paclfle Coast.
Strikes and financial stringency cause se
rious crisis in San Francisco. Page 1.
Rudolph Spreckels answers Calhoun. Page 1.
Schmlts trial will be held by Judge Dunne.
Page 1.
Another venire called to get Haywood Jury.
Page 2.
Witness in Idaho land-fraud trial tells how
he was paid for use of timber right.
Page .
Earrlman makes no reply to fight for open
ing Portland gateway. Page 0.
Pendleton woolgrowers plan to protect
themselves against a combine of the
bidders. Page 6.
The) Weather.
YESTERDAY'S Maximum temperature, 70
degrees; minlmm, 45 degrees.
TODAY'S Showers, possibly with thunder;
. westerly winds.
Portlaad and Vicinity.
Thomas C. Devlin writes open letter to
John M. Oearln demanding proof of
charges made ra Armory speech. Page 10.
Portland sadly In need of some good hotels.
Page 10.
G. A. R. Veterans announce Memorial -Day
programme. Page 11.
Warm weather draws many ldjers to Plasa
block. Page 12.
Ralf-brother of Oeneral Lew Wallace goes
to Poorfarm. Page 16.
Knights of Pythias meet In annual session.
Page 12.
Boys' and Girls Aid Society closes year of
successful work. Page lO.
Spirit of harmony at monthly dinner of
Commercial Club. Page 13.
Commercial and Marine.
High opening prices on California aspara
gus. Page 17.
Sharp advance in wheat at Chicago. Page
17. ,
Heavy' unloading of stocks at lower prices.
, Page IT-
NEGROES
DEFEND
COLORED
BROTHER
Deadly Volley Greets
White Posse.
VENGEANCE SWIFTLY FOLLOWS
Mob Shoots Woman and Son
as They Flee for Lives.
ONE WHITE MAN KILLED
Avengers of Assault on Woman Find
JTegro Family Can Shoot Straight.
Mob Takes the Prisoners Away
From the Officers.
CLAXTON, Ga., May' 21. Twi negroeg
lynched, one white man and two negroes
dead, and seven other persons Injured, Is
the result of an attempt to capture a
negro, who last night attempted a crim
inal assault upon Mrs. Laura Moore, a
widow living near Manasas.
The dead: '
John Hare, white farmer.
Sam Padgett, negro, and daughter, aged
10 years.
Lynched:
Padgett's wife and eon.
Injured: W. J. Plerson, shot In stomach
and arm, probably fatally; James 17.
Daniel, shot In eye, may die; Dr. J. L.
Kennedy, serious; son of Padgett, serious;
Flem Padgett, colored; two daughters of
Padgett.
Fifteen persons early today surrounded
the house of Sam Padgett, a negro, whom
they suspected of harboring a negro who
had criminally assaulted Mrs. Moore,
and demanded to be allowed to search
the' house. Permission was given, but
when crowd was within 30 feet of the
house those Inside the building open fire
oh the posse, instantly killing John Hare
and seriously wounding Barlow- Pearson,"
James Daniel and Dr. J. L. Kennedy.
The posse then returned the fire, kiiH
Ing Padgett and one of his daughters,
aged 10, wounding two other gir's, aged
and IS, and two of Padgett's sons,
aged 20 and 23.
The posse then retired for reinforce
ments. The news spread rapidly and by
10 o'clock 500 armed men were on the
scene and started in pursuit of the ne-i
groes, who had escaped. One of them
was captured and taken before Mrs.
Moore, but she failed to identify hlmj
The negro, however, was identified as
the man who shot Hare and he was
started for the Reidsvllle Jail, together
with Padgett's wife and son.
On the way the officers were over
taken by . about 75 men, who took the
prisoners from them. The woman was
told to run and she did so and was
riddled with bullets, her son being shot
to pieces where he stood. The negro
who assaulted Mrs. Moore has not been
captured, but it Is reported that he Is
surrounded and that In all probability
he has been killed.
MAYOR BUSSE TRANSFERS TEN
DERLOIN POLICE.
Chicago's New Executive Carries Out
Pre-election Promises to Enforce
Existing Laws.
CHICAGO, May 21. Mayor Busse In
an attempt to renovate the "tenderloin"
district of Chicago, today made the
most sweeping change ever made In
the local police department. He trans
ferred the entire police force of the
district from captain down, embracing
240 men, to other parts of the city
and appointed other men. It had been
charged that the police' In the dlctrlct
had countenanced violation of the law.
The move was hailed with acclaim
by reformers, but the Mayor non
plussed other reformers by a flat-footed
statement that, considering Chica
go's large foreign population, he would
not attempt to enforce the Sunday sa
loon closing law unless forced to do so
by the courts.
THE DAY'S DEATH RECORD
Founder of Foresters Dead.
CHICAGO, May 21. William Wolf,
an old settler In Chicago and one of
the organizers of the Catholic Order
of Foresters, died of pneumonia last
night at the age of 67. He was born
In Devonshire, Enc'-and, and after serv
ing nine years in the English navy
came to America in 186-1. In May,
1884, he, with William Thomas, or
ganized the Foresters, which now num
bers 127,000 members.
Eight-Hour Strike In Santiago.
SANTIAGO, Cuba, May 21. A general
strike for an eight-hour day. instigated
by the longshoremen and supported by
the workmen upon the electric railway,
new waterworks, Cuban railroads and
many smaller concerns, has been de
clared here.
The Chamber of Commerce has called a
meeting to devise ways and means to
transact business which in the mean
time Is paralyzed. The strikers are or-
derly.
J
r-