VOL. XLVIXO 14,513. PORTLAND. OREGON, THURSDAY, JUNE 13, 1907. PRICE FIVE CENTS. DIVIDED HIS GRAFT WITH THE MAYOR Ruef Directly Contra dicts Schmitz. PAID HIM THREE AMOUNTS Dethroned Boss Admits Prom ise of Leniency. MANY TALKS WITH BURNS Trap Into Which Schniltz Jumped Is Sprung on Him Argument Be gins and Extortion Goes to the Jury Today. I kvk: SA KVF.N BETTING OX CONVICTION. SAN FRANCISCO. Juno 12. (Special.) In the poolrooms and other resorts In Fillmore atreot to night beta were made at even money and 10 to 0 that Mayor Bchmits would be convicted. Mr. Heney and Mr. Burns are genuinely confident. SAN FRANCISCO, June 12. This was an carburning day for Mayor Schmitz. Rented1 at the counsel table before the altar In the Jewish synagogue on Bush street, ho heard Abe Ruef, his former politi. nl friend, philosopher and guide, practically call him a perjurer to the jury, and with that same burning he listened to n scathing denunciation of himself nt the hands of Special Prose cutor.Hlram Johnson. And if there was balm for scourged feellnyrs in the speech that closed the day, the speech of his own attorney, Mr. Barrett, he took no open heed. In deed, during most of the two hours and 2.1 minutes Mr. Barrett was speaking, the Mayor was either glancing over newspapers or burled deep in typewrit ten pages of testimony. But no word tf-tlio prosecutor's address escaped his sensitive ears. Ruef was, of course, the sensation of the day. His appearance on the stand as a witness in rebuttal for the prosecution is now credited to the tac tical error of the defense In letting the Mayor testify, for it was to refute the Mayor's denials under oath that he had participated In Ruef's "fee" that the prisoner's ex-boss was called. Says He Gave Schmitz Money. Ruef told the 'jury that he went to Schmitz' former residence and there handed to the Mayor at stated Intervals one-half of the "fees" of JoOOO and paid him by the proprietors of the five foremost French restaurants of San Francisco before the fire. '1 said substantially this: 'Mayor. I have received the $5000 from the French-restaurant men and I would be glad to hand you half." Then I handed htm $2500 in currency," is the way Ruef put It to the jury. This was after the defense had exhausted Its best efforts to shut botn quesion and answer out on the ground that the former was not properly rebuttal because in his direct examination no such matters had been broached to the Mayor. Judge Dunne decided that the pertinency of the question could not be doubted. Arguments Are Begun. The opening address for the prosecu tion by Hiram W. Johnson, son of ex Congressman Grove L. Johnson and one of the foremost criminal lawyers of the state, occupied one hour and 15 min utes. It was masterly In argument and in eloquence. Mr. Johnson avoided anything like an attempted resume of the evidence In all its voluminous de tail. He selected rather the main peaks and, steering by them, endeav ored lo pilot the jury over a short course to conviction. Mr. Johnson was followed by J. J. Uatrett, who spoke for two hours and one-half In behalf of the defense, mak ing much of tho argument that, had the court permitted Ruef to tell the whole story, he would have testified that the restaurant men came to Ruef and be sought his services as an attorney, and that no threat was made to or held over them that they would lose their licenses If they did not pay him money, and that Ruef's contention would have necii that he did not exercise any con trol over the license board. Mr. Barrett told the jury that under the testimony adduced the most that might he proved was that money was extorted by Ruef from the French res taurant men by threat to close the bed rooms on their upper floors. "The indictment," commented the Mayor's attorney, "charges this defend ant with extorting this money by threat to take away their licenses to sell liquor. You cannot, gentlemen, ac cuse a defendant of one crime and con- it t hint of another. Remember that." When Mr. Barrett concluded the court adjourned for the day. The fol lowing arguments will be made tomor row a:id the case will probably reach the Jury before night. Ruef Ordered to Answer. When the trial was resumed Judge Uunne's temporary courtroom was crowded from gallery to altar, as It was recognized that this was the cru cial day In the trial. Ruef looked pale and a trifle apprehensive as he took the witness stand. He had him self apparently well under control, however. Schmitz looked better and seemed in better spirits than at any time since the trial began. As soon as court had fairly well opened argument as to the admissibility of the pending question was begun, Mr. Campbell, of the defense, arguing against Its admis sion, and Mr. Heney, of the prosecu tion, arguing for it. The question was: "Did you in January, 1905. in the house at 2S4H Fillmore street, give this defend ant, Eugene E. Schmitz, $2500 In cur rency?" A When the court ruled in favor of the state, Ruef in a hush that was almost painful answered the question clearly and distinctly: "I did." "How much?" asked Mr. Heney. "Twenty-five hundred dollars in cur rency," was the reply. "What did you say when giving him the money?" "I said I had received $3000 from the French restaurants and I would be glad to share It with him and then 1 gave it to him." Second and Third Payments. "Did you in January, or February, 190S, give Mayor Schmitz at his house any money, and If so, how much and at what time?" "Some time after January, 1906, 1 hand ed him $1500 In currency at his home at Vallejo and Pierce streets. I told him that the French restaurant keepers had paid me a second installment of $3000, which was $2000 less than they had agreed to pay. I gave Schmitz $1500 in currency." "Did you at any time give Mayor Schmitz any money you received from what is known as the little French res taurants?" ' "I am not positive. My recollection is that I gave him $250." Ruef said that he did not recollect having given Schmitz one-half of the $500 paid him by the proprietors of the old Poodle Dog, Jack's and Frank's. ''Take the witness," said Mr. Heney. "Mr. Ruef," asked Mr. Campbell, without a moment's pause, "where do you reside now?" A ripple of laughter ran through the room. "In San Francisco," was the Imper turbable reply. His Temporary Abiding Place. "But In what particular place?" "My temporary abiding place Is at No. 2849 Fillmore street," he answered, with a half smile of amusement. Again the audience tittered. "And how long," persisted Mr. Camp bell, "has that been your abiding place?" "Since Elisor Biggy selected it as the place for my detention," said Ruef. "Now, Mr. Bailiff," declared Judge Dunne sternly, "if there Is any more disturbance here, I will adjourn court In order to allow you to clear the room, then we will proceed." This put a quietus on the risibilities of the big crowd. "And how long has that been?" asked Mr. Campbell. "Since the latter part of March of the present year." "Do you know Detective William Burns r." Frequent Talks With Burns. "I know him." "Have you met him frequently since you became an inmate of Mr. Blggy's house?" "Yes, and before that at the St. Fran cis as often as twice a day." "Do you know what relation he has to this case?" "Yes." "Kindly statei what It is." "He is employed in securing and at tempting to secure evidence to assist the prosecution." "Do you know by whom he is em ployed?" "Not of niy own knowledge," said Ruef. "As a matter of fact, do you know that he is employed by Rudolph Spreckcls?" Mr. Heney objected to this. "The witness says he doesn't know," re minded Mr. Heney. "Ah, yes," responded Mr. Campbell, "but I'm not bound by his answers. Addressing himself to Ruef, he asked: "How frequently have you seen Wil liam J. Burns in the last 60 days?" "Do you mean how many times he has visited me?" "Yes." "Probably one hundred and fifty times." "What has been the character of those visits in regard to the testimony to be given in this case?" The objection of the prosecution was overruled. "lo you mean." asked Ruef, "what has transpired at those visits?" "Y.-i, sir." "I have spoken to Mr. Burns about this case, but only two or three times." Long Talks Before Testifying. "Where were you last night?" de manded Mr. Campbell, sharply. "At home," answered Ruef, calmly. "In whose company?" "In the company of William J. Burns from 5:30 to 7:30 P. M., and from 8:30 to 11 P. M." "What was said last night about the testimony you would sive in this case?" "Nothing." "Anything said Sunday night?" "Yes Sunday or Monday." "All right; Burns was with you that night until 3 o'clock In the morning, wasn't he'?" "No, I think he left between 1:30 and 2." "You were talking to him about the testimony?'' "It was being discussed, yes." "Mr. Ruef." asked Mr. Campbell, com ing about abruptly on a new tack, "you are under indictment, are you not?" The witness said he was. "About 100 times, eh?" "Well, a very large number of times." Responding to other questions by Mr. Campbell, Ruef said that during the last 60 days he had been guarded in the Fill-more-street prison house by Elisor Biggy and eight guards. Promises of Leniency. "Did Burns say to you that if you testified in this case it would go easy with you?" "He did not put It that way. He said if I would make a full statement, he would do what he could to secure lent- (Concluded h Paju AV L GERMAN ROYALTY Kaiser Banishes His Cousin Frederick. VILE ORGIES AMONG HIGH-BORN Zu Eulenberg Slapped by the ' Kaiser and Dishonored. SYBARITIC ROUND TABLE Daughter-in-Lav of Von Moltke Starts Exposure, Which Stains Names of First Families and Convulses the Empire. BERLIN, June 12. (Speeial.) Court cir cles and the entire empire are shaken to the foundations by the Eulenberg scan dals, the most recent development of which Is the degrading of Prince Fred erick Henry of Prussia by the Kaiser, who has ordered him to remain out of Germany forever 'because of his extreme Immorality. When undisputed evidence of the Prince's guilt had been presented, the Kaiser summoned his cousin to the pal ace. There the charges were read to Frederick. Emperor William personally tore from his relative the orders and decorations he wore, struck him in the face and or dered him to leave Germany and never return, under penalty of being thrown into prison. ' . . . . In tears Frederick departed and is now on his way to Egypt. Sybarite Affected Piety. ; The scandal is all the greater for the reason that Frederick has always posed as a pious man and was reputed- to be the most moral member of the imperial family. He Is the son of the late Prince Albrecht, regent of Brunswick, and In herited $7,000,000. Frederick's younger brother, Prince Joachim, recently figured in a scandal when he proposed to marry Marie Sulzer, a music-hall singer. He was banished to Africa to prevent him from carrying out the plan. The scandal which has resulted in the social ostracising of several of the lead ing young men of the German seml-royal nobility, a couple of divorces, a suicide and the dismissal from the army of a young officer whose name is famous in the military history of the empire, Is known as "Prince Phillip zu Eulenberg'8 Round Table," and was first exposed by Maximilian Harden, a Berlin editor. The story reveals tm unparalleled condition of sybaritic debauchery practiced by a cheque of men whose names are proudest In the empire and whose circle includes as Its dupes and prey the Emperor him self. How Scandal Came Out. Berlin is ringing with accounts, ex travagant and distorted in many in stances, of the black rites and excesses SGANDA AMONG PUGET SOUND SEES AT LAST THAT IT IS EASIER TO GO AROUND A HILL THAN OVER practiced by Zu Eulenberg's "Round Ta ble." as the coterie was known. The climax of the revelations comes In the assurance that the information which has crept into the newspapers and so inflamed the country Is given by a lady of nobility, who divorced her husband, one of the. Round Table Knights, for the species of offenses against his marriage vows which does not figure in ordinary court records. The tirst breath of trouble came on November 24, 1906, when Maximilian Harden, a noted publicist and friend of 'Bismarck, published in his paper, the Zukunft, a cryptic dialogue, veiled to the uninitiated, but sufficiently il luminating to the Round Table Knights to strike terror to their hearts. Crown Prince Informs Kaiser. No one else had the courage to broach the matter to the Emperor, and finally the Crown Prince brought the matter to hts father's attention. The Emperor believed . that Harden was actuated by personal malice against Zu Eulenberg until within the past few weeks, when his eyes were opened to the practices of his associates. A few days ago Kuno von Moltke, dismissed from his position, challenged Harden, who refusod to fight him. Von .......................... i : h ft 11 Abe Ruef, Whose Testimony Clinched Charge Against Mayor Schmits. Moltke then applied to the public prose cutor to prosecute him for criminal libel. The prosecutor refused on the ground that it would involve other im portant people. All Denounce Round Table. The newspapers then grew more ex plicit. The Berliner Tageblatt and the Cologne Qazette, the most powerful semi-official organs in Germany, re ferred to the Round Table in vigorous terms. Following this General von Poenau, of the Round Table, a blood relative of the Emperor, being the son of the Emperor's youngest brother by a morganatic .marriage with Rosalie von Rausen, handed in his resignation. But the most striking of all was the resignation of Zu Eulenberg, who, since his return from Vienna, has remained a member of the diplomatic corps with an ambassador's salary. Von Moltke's divorced wife, now Frau von Elbe, is credited with being Harden's informant. A great beauty and the daughter of Herr von Hayden, of ' Butsow, a wealthy landed pro prietor, she took Von Moltke as her second husband. Wholesale Execution at Kiga. RIGA, Russia, June 12. Eight politi cal prisoners were executed here today for participation in the recent disorders In the Central Prison, which was the subject of an interpellation in the lower house of Parliament regarding the tor tures inflicted on prisoners at Riga. HAYWOOD'S CASE HURT BY LAWYER Richardson Injures His Own Theory. STILL PRODDING ORCHARD Scheme to Kidnap Children of Wallace Mineowner, C0ATES DRAWN INTO CASE Ex-Lieutenant-Governor of Colorado Implicated by Assassin Direct Evidence Coming That Petti bone Supplied the Money. FEABODY RKABV TO TESTIFY. BOISB Idaho. Juns 12. Ex Governor Peabody of Colorado, who will be a witness for the state, ar rived In Boise tonight. Mr. Pea- . body declined to discuss th case at t the present time, preferring to watt J until he la put upon the stand. BOISE, Idaho, June 12. (Special.) Again today the almlessness of the de fense In the Haywood case was illus trated on several occasions. It has been apparent all through the cross-examination of Orchard and has been commented upon by all observers that Mr. Richardson flounders around sadly and leads into contradictions. This afternoon, when he was asking Orchard about the plot to kidnap the Paulson children at Wallace, one of these blunders was made. Orchard had nar rated that the enterprise had been sug gested to him by Coates and Slmpklns. Finally Mr. Richardson asked if It were not a fact that he had suggested it to Coates and afterward to Simpkins and that the latter warned Mr. Paulson. Or chard answered, "No." Yet in a short time Mr. Richardson asked if he had not borrowed money from Mr. Paulson on which to leave town and Orchard said he had. According to conflicting theories, Mr. Paulson loaned Orchard money after he had been warned of the plot to steal the children Richardson's Dates Mixed. Again, at his climax, Mr. Richardson asked Orchard If he bad not conceived the plan of murdering Steunenberg after revisiting his old friends at Wallace, and finding Mr. Paulson and others had grown rich out of the Hercules mine.v in which he had owned an interest; whether he had not then become Imbued with a desire to kill the man who had forced him to. sell out and leave the country. The fact is that, earlier in the cross-examination. Mr. Richardson brought out the fact that Orchard sold his interest In the mine long before the outbreak in 1809. . He could, therefore, not hold Steunenberg responsible for it. When Mr. Richardson brought out from Orchard the story of having been Invited to spend a month at Pettibone's house as a companion, he made a blunder. At that time the federation officials knew j that Orchard had the dealings with the j detectives which have been testified to here, and they knew he was accused of blowing up the Independence station at the instigation of the mineowners. ac cording to another theory of the defense. Yet this agent of the mineowners was an honored guest at the home of Pettibone. Hull McClaughy, assistant postmaster of San Francisco, Is here with the record of the receipt of the registered letter which Orchard says he received with money from Pettibone. The Denver rec ord of sending will also be set forth be fore the jury. Further, th Postal Tele graph Company has found the record of the transmission of the money which Or chard saysj he received In that manner from federation headquarters while he was in San Francisco. Some correspond ence will be introduced showing that Moyer and Pettibone agreed to send money to Mrs. Orchard while Orchard was on that same trip. Finish With Orchard Friday. There will be about three hours of the redirect examination of Orchard on Friday morning, according to pres ent plans, but it may require much less time. Most everything has been brought out in the cross-examination that the state wants, but the relations of the witness with the Cripple Creek deectives will be gone over to some extent, and several other matters will be fully explained which have been only touched upon by the cross-examination and were not gone into on direct examination. ' ORCHARD TELLS MORE CRIMES Desperate Kidnaping Scheme Attrib uted to David Coates. BOISE, Idaho, June 12. The defense to day carried the cross-examination of Harry Orchard down to the actual crime charged against William D. Haywood the murder of Frank Steunenberg and as it progressed, assailed the testimony and theory of the state resting upon it. The Steunenberg crime was reached at mid day and counsel for the defense directed their efforts to an attempt to cloud the earlier purposes and movements of Or chard with uncertainty and lndeflnlte ness. Then they emphasized the aban donment of all effort to kill after Orchard first tracked Steunenberg to a hotel in Boise and with a skeleton key had gained entrance to the very room In which the Governor was living. Here they delayed for a moment to prove that Orchard twice wrote and once telephoned to Bill Easterly at Silver City to urge him to come and Join in the crime, and the di rect Implication was that Orchard was endeavoring to Inveigle another Federa tion man into the crime, which would bring discredit and dishonor to the or ganization. Plot to Kidnap Children. Then the Steunenberg crime was tem porarily thrust Into the background and the witness was carried over his long diverting Journey into Northern Idaho and his crimes there, including the dark plot to kidnap and hold for ran som the Paulson children, were forcefully emphasized. . Orchard swore that David Coates. ex-Lieutenant Governor of Colorado. and then a publisher in Wallace, Idaho, first sug gested the kidnaping to Pettibone and himself at Denver. Paulson, once a poor miner, had made a fortune in the Her cules mine, in which Orchard held, an Interest when the property was valueless, and it was believed that, if his children were stolen, he would "come through" with $50,000 or $60,000 in ransom. Orchard said that, when he went to North Idaho, he got Jack Simpkins to come in on the plot and together they went to Coates to renew the scheme. Coates, who was in court, was asked to (Concluded on' Page 5.) CONTENTS TODAY'S PAPER Tho Weather. YESTERDAY'S Maximum temperature, 61 degrees; minimum. 40. TODAY'S Showers, followed by fair and warmer weather; westerly 'wind. Foreign. Kaiser disgraces Mb cousin for Round Table orgies, and Germany la convulsed. Page 1. Salvadorean rebels backed by Nicaragua severely whipped. Page 2 Deadlock In Prance caused by winegrowers' strike. Page 2. National, President goes to Oyster Bay for Summer. Page 4. Suit begun against anthracite coal roads. Page 4. Japan clamors for redress for San Francisco disturbances. Page 3 Politics. What may happen if Roosevelt goes to Senate. Page 3. Result of primaries In Oklahoma. Page 3. Domestic. Hearing on opening Portland gateway shows Hil I and Harriman divide terri tory. Page 1. Search for missing middles and sailors proves vain and Evans gives them up. Page 4. ra rifle Coast. Richardson continues cross-examination of Orrhard and develops kidnaping plot. Page 1- Ruef testifies be paid graft money to chmlts and evidence Is closed. Page 1. Million-dollar rain In the wheat belt. Page 6- Large class graduated from Agricultural College. Page 6. Heavy Increase In land value since rail ways were built In Washington. Page 6 Commercial and Marine. Hopholders firm In their views; good prices paid at Shaniko wool sales. Page 17. Wheat prices break sharply at Chicago. Page 17. New York stock market stagnant. Page 17. Shlnudzy now a port of call for Portland bound steamships. Page 18. Portland and Vicinity. Portland merchants to hold pure-food show next September. Page 12. Graduating exercises held at Columbia Uni versity. Page 12. Masons elect new grand lodge of fleet a Page 10. Cornerstone of1 new Commercial Club build ing laid by Masons. Page 10 Score of furniture trust members fined. Page 11. Idaho man tells about trial of Harry Or chard. Page 11. Thomas McCusker talks about conditions in East. Page 16, PARCEL OUT U 1 LIKE EMPERORS Hill and Harriman Di vide Territory. OREGON GETS WORST OF II Car Shortage More Acute Than in Washington. SEATTLE WANTS ALL TRADE Seeks to Vse Oregon Bond to Invade Portland Territory Relief From North Bank Koad Cotton Offers Reciprocity. OREGONIAX NEWS BUREAU, Wash, lngton, June 12. From evidence given to day before the Interstate Commerce Com mission It is very plain that J. J. Hill and B. H. Harriman have mapped out the Northwest, each taking a distinctive territory, from which the other is ef fectively barred. Particularly Is this true of the lumber business. It is . practically impossible, under the existing freight rates and ar rangements, for Oregon lumbermen to compete with Puget Sound in markets tributary to the Northern Pacific and Great Northern, and likewise Impossible for Puget Sound manufacturers to Invade territory tributary to the Harriman lines. Both Systems Are Swamped. I And so far as the respective railroad systems. are concerned, neither has any desire to Invade the other's territory. Both acknowledge their utter incompe tency to handle the business that Is of fered them and each objects to being compelled to take care of the surplus of the other. Oregon lumber manufacturers.' while suffering intensely because of the Inability of the Harriman roads to get their produce to market, are apparently content to hold the markets open to them. If they are only enabled to supply these markets with dispatch. Puget Sound, which now has three cars to one at Port land, is eager to invade Portland terri tory and is clamoring for a joint rate In this way to dispose of its surplus pro duct. Seattle Wants the Earth. , This fact was brought out yesterday, but was even more strongly emphasised at today's hearing before the Interstate Commerce Commission. It was merely an exemplification of Seattle hoggishness. Not content with three transcontinental roads as compared , with two In Portland, Puget Sound wants to secure further ad vantages by having an equal right with' Portland to the use of the O. R. & N. and connecting lines in order that it may ship its entire lumber output, cognizant that any such concession will still further re strict Portland's market 'in proportion to Puget Sound's gain. The hearing on Puget Sound's petition for a joint rate will conclude tomorrow morning, after W". W. Cotton, has had one hour for argument against the is suance of a joint rale. Oregon's Plight Worst. A. C. Dixon, vice-president of the Ore gon Manufacturers' Association, proved the best witness who has yet testified in this case. He described the damage that has resulted to the lumber business of Oregon in consequence of car shortage, which he declared had been more acute since January 1 than ever before. He de clared that Oregon mills were being sup plied with only 23 to 50 per cent of the cars they ordered and could have used. The officers of his association had made a careful investigation of the lumber ' Industry in both Oregon and Washington, and found the Oregon mills In much, worse shape, largely, he declared, because three cars were being supplied the Wash ington mills where one car is being fur nished the mills in Oregon. Smaller mills had been forced to suspend, while the larger mills were operating on bor rowed money. Would Paralyze Oregon Mills. Mr. Dixon was decidedly opposed to granting a joint rate ' on Puget Sound lumber, because it would mean the diver sion, to Puget Sound of many cars now supplied to carry Oregon lumber to mar ket, and it was his opinion that the es tablishment of such a rate would produce financial paralysis In Oregon lumber circles. He said Oregon mills now have on hand more lumber than the mills of Washington, due solely to the fact that fewer cars are furnished to transport lumber to market. Mr. Dixon believed the car shortage was partly attributable to lack of competition. Philip Buehner, of the Eastern West ern Lumber Company of Portland. f.'fl next put on the stand, but was not given . much opportunity to be heard, as his testimony in the main was Intended to corroborate what had been said by Mr. Dixon. He said Portland was shipping very little lumber by the Northern Pa cific, because it could not get cars. It was apparent that the road was reserv ing the markets tributary to Its line for Puget Sound mills. He contradicted statements made yesterday by the pe titioners to the effect that Oregon con trolled the lumber market of the Middle West, insisting that In Denver alone 75 per cent of the lumber was purchased on .(Concluded on Pase )