r
VOL. XIVjL-XO. 14,557.
PORTLAND, OREGON, MONDAY, AUGUST 5, 1907.
PRICE FIVE CENTS.
REPORT DAMAGING
TO
Corporation Commis
sion Reveals Methods
SHOWS RESULTS ON PROFITS
Proves Standard Has Absolute
Control of Industry.
DISPROVES ALL CLAIMS
Gives History of Oil Prices Since
1866 and Says It Has Used the
Worst Industrial Methods
to Mulct Consumer.
WASHINGTON. Aug. 4. Significant
revelations are made public today In a
report submitted to President Roosevelt
by Herbert Knox Smith. Commissioner of
Corporations, concerning the operations of
the Standard OH Company.
In a previous report the ways and
methods of the Standard were explained.
The present report sets forth the results
of these methods and the effect they have
had on the consumption of oil and on the
profits of the Standard OH Company.
Commissioner Smith says:
"The Standard OH Company is respon
sible for the course of prices of petroleum
and Its products during the last 25 years.
The Standard has consistently used Its
power to raise the price of oil during the
last ten years, not only absolutely but
also relatively to the cost of crude oil."
The Standard has claimed that it has
reduced the price of oil; that it has been
a benefit to the consumer; and that only
a great combination like the Standard
could have furnished oil at the prices
that have prevailed.
"Each one of these claims," says Com
missioner Smith, "is disproved by this
report."
The Increase in annual profits of the
Standard Oil Company from 1836 to 1904
was over $27,000,000. The report says:
"The total dividends received by the
Standard from 1SS2 to 1906 were $551,822,124.
thus averaging 24.15 per cent a year. The
dividends, however, were much less than
the - total earnings. It is substantially
certain that the entire net earnings of the
Standard from 1SS2 to 1906 were at least
1790,000,000 and possibly much more.
"These enormous profits have been
based on an investment worth at the
time of Its original acquisition not more
' than $75,000,000."
Standard Oil Rules Prices.
The report of Commissioner Smith shows
that the Standard Oil Company Is re
sponsible for petroleum prices for the past
quarter of a century because this com
pany has controlled the Industry. The
report shows the price history of oil
products since 1866, or practically since the
beginning of the Industry. This gives an
opportunity to compare the course of
prices during the earlier competitive
period with the course of prices during
the later monopolistic period. It also
shows that prices would have been lower
during this later period under normal
competitive conditions and in the absence
of any such overshadowing combination
as has actually' existed.
These prices show directly the efTect
that the existence of this combination
has had upon the consumer and also the
results that have accrued to the combina
tion Itself by way of profits. Just con
clusion can thus be drawn of the way the
Standard Oil has used its great industrial
power.
Commissioner Smith says in his report:
The statistical basis of this conclusion is
very broad, founded upon a vast number of
prices directly collected by the bureau
from thousands of retail dealers throughout
. the country as well aa from various other
sources, arranged ana averaged with the
utmost care, verified wherever necessary,
and in the final results apportioned or
"weighted" according to the amount of
business or quantity of the article Involved.
Very careful computations of the cost of re
fining, transporting and marketing have
been made, by-products have been Included
with carefully "weighted" prices, and. as
will appear by the body of the report Itself,
these conclusions, while briefly stated In
this letter of submittal, are the final results
from most elaborate and indisputable cal
culations. These results are given chiefly In the
chape of "margins"; that is, the difference
In cents per gallon between the cost of
crude oil which the Standard buys and the
prices of the products thereof which it sells.
These "margins" of course are the really
significant facts, representing that part of
th price for which the Standard Is re
sponsible. Prices of oil products may rise or fall
. slightly without affecting the profits of
the Standard because of a change In the
price of the crude oil, although the stand
ard also fixes within certain limits even
the price of crude. But the "margin," the
difference between the price of crude and
the price of the finished products, is always'
. true indication of price policy and profits.
Two Kinds of Crude Oil.
There are two varieties of raw material
of essential importance Pennsylvania crude
oil and Lima crude oil. The crude oils of
the other fields, both by reason of their
very recent development and by reason of
marked difference in quality, do not affect
in any significant way the prices herein
considered.
The average margin between Pennsylvania
crude oil and the Illuminating oil sold by
the Standard throughout the country, after
deducting freight costs, from September,
1697. to the end of 1801, was 5.3 cents per
gallon; from 1 900 to 1902. inclusive, 6 cents
per gallon; and from 1903 to June, 1905, 6. it
cents, or an increase of 1.3 cents durlnr
these eight years. When it Is remembered
that for 0.7 cent to 1 cent per gallon con
stitutes a good profit on the business, the
meaning of an Increase of 1.3 cents in the
last eight years covered by this report Is
evident, even as applied to Illuminating oil'
alone.
But it must be emphasised that a much
jrxoti iaeiess la, total joarglA baa taken
STANDARD
place In the case of the by-products than
In Illuminating oil, the most Important of
which are fin the case of Pennsylvania
crude) gasoline, lubricating oil, and paraffin
wax. Including the margins for these by
products with the margins for Illuminating
oil. so as to give a series of average mar
gins for the combined four products,
weighted according to the respective quanti
ties produced, the increase in margins for
this recent period is still more conspicuous.
Thus, the relative margin for the four
products combined for the years 1S9S and
1899 was 66 cents; for 1900 to 1!H)2. 7.7
cents, and from 1903 to June. 1905. 8.
cents, or an Increase of 1.8 cents.
Substantially the same conclusions as to
the Increase of prices appear In the mar
gins for Lima crude. The increase In its
margins is fully as conspicuous as for Penn
sylvania crude. The relative average mar
gin for the combined products of Lima crude
for the years 1S98 and 1S99 was 6.1 cents:
for 1900 to 1902, 7.1 cents; from 1903 to
June. 1905. 7.8 centa, or an increase of 1.7
cents for the eight years.
Enormous Profits of the Business.
The tremendous importance of the in
crease in margins oan be fully appreciated
only by consideration of the enormous out
put of the Standard. The average increase
In the margin for the products of both
Pennsylvania and Lima crude oil combined
taklng single years and not, as above,
groups of years) from 1S9S to 1904 was over
2 cents per gallon, and, allowing a very
liberal estimate of one-half cent per gallon
(25 per cent) for Increase In the costs of
production and marketing during this pe
riod, the net average Increase in profit dur
ing these seven years would thus be at least
t DISTRICT ATTORNEY WHO
CLOSED THE MILWAIKIB
GAMBLING HOCSE.
1.5 cents per gallon. If the same increase
In profit be applied to the Standard's entire
sales of all kinds of petroleum products In
the United States in 1904, 'he profits for
that year would be about $21,000,000 more
than they would have been on the basis of
the prices and costs In 1898. As a matter
of fact, the known Increase of profits on its
whole business, as stated hereinafter, was
more than this.
Similarly, for the year 1903, when the
prices of oil reached their maximum, these
prices would represent an Increase In th
Standard's profits on sales in the United
States that year of nearly $25,000,000 over
prices and costs in 1898.
These figures show conclusively the effect
of the domination of the Standard on the
amount that the public pays for its oil.
Naturally an Increase has also taken place
in the prorlts of the standard by reason ol
this price policy. The Increase in annual
profits from 1896 to 1904 was over $27,
OOO.OOO. The total dividends paid by the Standard
from 18S2 to 1906 were $551,922,904.50, aver
aging thus 24.15 per cent per year. The
dividends, however, were much less than
the total earnings. Exact information as to
these earnings' Is available only for the
years 1882 to 1S96 and for the years 1903
to 1905, Inclusive, an aggregate for these
years of about $714,000,000; but from these
figures the earnings for the other six years
may be estimated with some degree of cor
rectness, and it is substantially certain that
the entire net earnings of the Standard
from 18S2 to 1906 were at least $790,000,000,
and possibly much more.
These enormous profits have been based
on an investment worth at .the time of its
original acquisition not more than $75,
000,000. Big Growth of Profits.
Furthermore, the rate of profit on the
capitalization has increased greatly. From
18S2 to 1894 the net earnings averaged about
15 per cent on the capital stock or trust
certificates outstanding, while the average
net earnings for the period from 1&0U to
1905 were about 68 per cent yearly.
These rates of profit and their great in-
crease are strikingly confirmed by the
known profits of one Important Standard
concern, the. "Waters Pierce Oil Company.
The lowest rate of profit on Its Investment
was in 1896 23-3 per cent. It Increased In
nearly every year thereafter -until in the
first six months of 1904 the profits were at
the rate of 47-2 per cent per year. More
over, the rate of profit of this company has
Increased not only in proportion to Its in
vestment, but also per unit of products sold.
The average profit on illuminating oil to?
the years 1895 to 1899 was 83 cents per bar
rel, while from 1900 to June. 1904, the aver
age profit was $1-2 per barrel, with similar
Increase of, profits on the important by
products. A further verification of the profits of the
Standard was afforded by computation of
the profits of certain of its individual re
fineries. In 1904 the rate of profit on in
vestment in these refineries and in the mar
keting concerns distributing their products
was as follows: Refinery at Lima, Ohio. 37
per cent; Whiting, Ind., 45 per cent; Sugar
Creek, Mo., 35 per cent; Neodesha, Kan.,
35 per cent; Florence, Colo., 62 per cent; or
a weighted average of 42 per cent, about 2-3
cents per gallon of crude handled. This ex
cludes the profits on pipe-line business.
The foregoing facts as to the profits will
thus explain vividly what has become of
the increase In prices and margins on pe
troleum products during the regime of the
Standard since 1893.
Prices Not on Competitive Basis.
Very valuable additional information is
also shown in the report by the figures
going still further back and taking up
the course of prices since the beginning
of the Industry. Available prices for the
period preceding 1897 are much less com
plete than for the later period, and con
clusions here must be based largely - on
the course of export prices, which, as a
matter of fact, have never represented exT
actly the 'course of prices in this country,
but which probably corresponded to domes
tic prices much more closely in the earlier
periods than In the later ones. Making
due allowance for these considerations,
however, these longer series of prices are
Interesting because they cover both the
earlier competitive period and the later non
competitive or monopolistic period, and
allow a comparison between the two. They
demonstrate the falsity of the historic
claim of the Standard OH Company that
by reason of its extraordinary efficiency it
has brought prices to a point lower than
would have been reached had business re
mained under normal competitive con
ditions and In the hands of a number of
comparatively smaller concerns.
The industry may be said to have been
normally competitive from 1866 to 1874, and
during that time there was a fall In mar
gin between the price of export oil in
barrels and the price of Pennsylvania crude
of from 3.76 cents In 1866 to 0.02 cents
in 1874. This decline was much greater
than that which has taken place since.
FLEET SHOULD BE
READY FOR CHINA
Trouble Coming When
Empress Dies.
POWERS TO GET INTO GAME
Will Try Again to Partition the
Empire.
AMERICA HAS INTERESTS
With Strong Fleet In Pacific She
"Will Be in Position to Protect ,
Them Strongest Fleet Will
Have the Most Influence.
WASHINGTON, Aug. 4. (Special.)
It Is China, and not even remotely
Japan, that has aroused the concern of
the Washington authorities in connec
tion with choosing; the Pacific as the
next practice ground for a big battle
ship squadron, according to the deduc
tions of some Btudents of affairs iri the
Far East. China as an entity, it Is beT
lieved in certain circles, Is in a condi
tion as precarious as the health of the
Dowager Empress, and when the failing
health of the latter leads to its inevit
able end the empire will face a crisis
that will make it wise for the United
States to have a presentable naval
force within easy sailing distance.
Empress' Health Falling.
Little regarding the situation sug
gested by the above statements has
been spoken in official or diplomatic
circles, but commercial interests profess
to have been keen observers of what Is
going on. From sources connected with
the latter comes the report that some
time ago the administration was quietly
apprised that the health of the Dow
ager Empress was failing fast and that
when she goes to join "the guests on
high" China will become the prey of
plotters seeking to overthrow the Man
chu Tartar dynasty.
At the same time the powers are
deemed likely to take advantage of the
situation again by going In for a par
tition of the empire, the possible clos
ing of the open door that means so
much to America, and toward securing
which in the Far East American states
men have accomplished so much.
America Should Be Ready.
Whatever happens, the possible at
tempt to seize the government by a
strong leader outside the present dy
nasty, or the exerting of the influence
of the same leader and others to re
store the descendants of the old Ming
family to the throne, the chances 'are
several to one that the powers will
find an excuse to get into the game to
subserve their own Interests. It has
been pointed out that when trouble
comes the nation that has the strongest
navy in Pacific waters will be likely to
to have the most influence with China.
Knowledge that a crisis might be
reached at any time, and In all proba
bility was not to be delayed beyond a
comparatively few months. Is believed
by many to have had a great deal to
do in determining the plans for sens
ing the battleship squadron to the Pa
cific as soon as possible. If this un
derstanding of the situation be correct,
it would be impossible, of course, to get
the Government authorities to admit
the real purport of the naval movement
at this stage of the proceedings.
That there Is sooner or later to be a
big mix-up over China is the Arm be
lief of those whose private business
affairs on a large scale embrace the
territory within the empire. America's
commercial interests will demand, when
such time comes, that it exert a strong
influence with the Chinese statesmen
and political leaders.
TRANSPORT BREAKS DOWN
Warren Forced to Put Back to San
Francisco for Repairs.
SAN FRANCISCO, Aug. 4. The trans
port Warren, which left Saturday with a
large contingent of troops and passen
gers, was compelled by a breakdown of
machinery to put back to port when 80
miles out at sea.
She had hardly got outside the bay
when the officers In the engine-room no
ticed that her machinery was not work
ing as it ought. Chief Engineer Donnelly,
of the Army Transport Department, made
an exhaustive examination of the War
ren's machinery and Is in hopes that new
condenser tubes can be installed by Tues
day. '
FIND MORE LAND FRAUDS
California Discovers Irregularities
in Imperial Valley.
LOS ANGELES, Aug. 4. The sudden
departure of. United States District Attor
ney Oscar Lawlor for Portland and Seat
tle Is considered significant, when taken
in connection with the recent disclosure
of extensive land frauds in the Imperial
Valley. When he left the city Mr. Lawlor
said he was called by Important business,
but would not give any Information as to
its nature. As the investigation is con
tinued into the Imperial Valley land
frauds it Is believed the names of promi
nent capitalists will be called with these
desert land entries.
A, Ri iobinsoot receiver 4a the local
EVENTS OF COMING WEEK
Important news events of the com
ing week will include the preliminary
steps by " attorneys of the Standard
Oil Company In their appeal from the
adverse' decision of Judge jLandis.
of Chicago, and the Imposition of
the most severe money penalty in
the history of the American courts;
the start of Commander Peary In his
latest expedition In search of the
North Pole; the meeting of the Ok
lahoma Constitutional Convention at
Guthrie, and the return of Secretary
Taft from his vacation in Canada.
Just what form the Standard Oil
appeal will take has not been de
cided upon definitely as yet, but un
doubtedly the attorneys for the de
fense, In addition to protesting:
against the penalty of the court as
excessive and contrary to the spirit
of the law, will protest against the
decision Itself as being unjust, and
they will declare that the company
Is not guilty of any contravention of
the statutes.
Commander Peary's preparations
will be completed early this week
and the steamer is expected to start
on the long voyage to the North at
an early date.
Two prominent American mar
riages will be celebrated this week In
foreign countries that of United
States Senator Beverldge, of Indiana,
to Miss Katherlne Eddy, of Chicago,
at the home of Ambassador and Mrs.
Tower, in Berlin, August i, and that
of Miss Katrlna Wright, daughter of
General Luke E. Wright, former
Governor-General of the Philippines
and retiring Ambassador to Japan, to
Charles Day Palmer, manager of the
International Banking Company, of
Manila, , at the American embassy,
at Toklo, August 10.
land office, said that the office has been
aware of the frauds for some time.
"Fraudulent and criminal entry on more
than 4000 acres of Imperial Valley land
haja been found," said the Receiver. "Gen
eral Prescott and myself made the discov
ery some time &go, and Secret Service
agents are now collecting evidence which
we believe will uncover a land fraud equal
In Importance to that m Oregon."
On file In the Land Office are 14 affi
davits charging fraud in desert entries.
Many similar affidavits will be filed this
"week, it Is said.
ALSO Iff STYLE
FOLLOWS FAIRBANKS' EXAMPLE
AXD DOES RESCUE ACT.
Finds Covple Lost in Woods at
Nigbt ilrales Forest Reserve
on Mount Rainier.
t ....
TACOMA, Aug. 4. Secretary Wilson
and son, Jasper. wVio Is his private sec
retary, left here for Portland this morn
ing. While at Reese's hotel, on Mount Rain
ier, a mountain guide notified Secretary
Wilson and party Friday night about 8
o'clock that a young man and woman
were lost In the woods. Several search
ing parties were organized among the
tourists at and about the hotel and all
went to rescue the lost ones. It fell to
Secretary Wilson to discover the young
people. They were off the trail and In
the dense woods about a mile and a half
from the hotel. As It was bitter cold
and a thick fog added to the blackness
of the night. It is a question whether or
not the young folks would iiave suc
ceeded In surviving the exposure had not
the distinguished cabinet official led the
party to their rescue.
'One of the most magnificent forest
reserves in the state is that on the slope
of Mount Rainier. It shall receive the
greatest of attention from the Federal
Government. Some changes may be
made in the manner In which it is being
cared Tor, but these Innovations I am
not ready to discuss."
In these statements Secretary of Agri
culture James Wilson summarized the
impressions derived from a day spent
on horseback, roaming through the Na
tional Forest Reserve and tue National
Park on Mount Rainier.
CONTENTS TODAY'S PAPER
The Weather..
TEPTERDAT6 Moxlmnra temperature, 72
degrees;, minimum. 67.
TODAY'S Fair and warmer; northwest
winds.
Foreign.
Death of Dowssw Empress of China will
make presence of fleet in Paclflo neces
sary. Pass 1.
Bandit Ralirull still at large with Cadi
EIr Harry MacLean. Page S.
National.
Financial report shows need of capital to
Invest to strong-then the bond market.
Pace 2. f
Report of Commissioner of Corporations
Knox Is damaging to Standard OIL
Page 1. ' '
Richard Mansfield's Illness serious. Page 2.
Criminal disturbances continue in New
Tork. Page 1.
Haywood recelTed at Denver with cheers.
Pace 2.
Owners of oil wells fear Standard Oil will
reduce price of crude oil and get back
amount of court fine at their expense.
.Page 8.
Sport.
Los Angeles whitewashes Portland on local
grounds, 2-0. Page 5.
Seattle crowd breaks down banister In at-
tempt to mob umpire. Page 5.
Pacific Coast.
Plans completed for 15th Irrigation Con
gress at Sacramento. Page 3.
Albany girl runs away to be hobo. Page
12.
Hop crop promises to come up to last
year's total. Page 8.
Farmer takes hh life by ujslng carbolic
acid. Page 8.
Portland and Vicinity.
Mllwaukle mourns defunct gambling club
as a public benefactor. Page 1.
Secretary of Agriculture Wilson reaches
Portland. Page 4.
City - Council committee resolves to recom
mend Eclipse fender for streetcars.
Page 3.
City Councilman says that body cannot
take up steam heat franchise. Page 4.
Rev. Everett M. Hill says unlimited am
bition Is an evil passion. Page 8.
Rev. E. S. Muckley - pleads for law-enforcement
against rich and poor - alike.
m a. .
(ME DONS
MDUBNNG
Gambling Resort Was
City's Meal Ticket.
CLOSING ORDER IS RESENTED
Citizens Are in Despair Over
Action of County Officials.
PROSPERITY AT AN END
Little Municipality, After Three Fat
Years, Supported by Tainted
License Money, Faces Knotty
Problem of Existence.
OREGON' CITY PASTORS HAVE
NO PRAISE FOR OFFICIALS.
District Attorney Hedges, of Ore
gon City, announced yesterday that
the Mllwaukle Country Club would
remain closed. The managers of
the resort, he said, were notified
by Sheriff Bates to close a week ago
and had been allowed one week In
which to comply with the order.
The closing of the Club was dis
cussed briefly from Oregon City pul
pits yesterday by the pastors of the
Congregation, Baptist, Presbyterian
and Methodist Churches who waged
war on the resort and demanded
that the officers suppress it. Rev.
John M. Linden, pastor of the Bap
tist Church, charged that the officers
had acted only under pressure after
having read the statute which
makes It a crime for publlo officers
to refuse to perform their sworn
duty.
Rev. E. Clarence Oakley, of the
Congregational Church, said the
closing of the Club had the ap
pearance of an agreement between
the District Attorney and the
Sheriff of Clackamas County, and
the management of the resort. He
said ht la all probability the
suppression of the Club would be
but temporary.
The Congregational Church com
mittee that was appointed to force
the officers to close the Club was
continued, and will renew Its la
bors if any attempt Is made to re
open the resort.
Hlc Jacet Mllwaukle Club.
Rcquiescat In Pace
Ds Mortlus nil nlst Bonum.
Milwaukie has lost Its meal ticket, and
its citizenship of 700 souls is bowing its
head In sackcloth and ashes, as Is full
seemly. For three prosperous years It
has fed from a well-filled hand that is
now withdrawn and stilled by the cruel
mandate of the law. The benefactor that
made seven arc lights glow in the streets
where none had sputtered before has
been compelled to withhold his further
bounty, and among other things a half
finished city hall henceforth will .stand
as a dismal monument to a generosity
that is no more.
The Milwaukie Club is dead. Its
requiem was sung on Saturday night by a
disgruntled District Attorney and a re
luctant Sheriff, who were goaded into
taking action and who have made. Invol
untarily, a pretty little city sad.
Helped Upbuild Town.
A marvelously Intimate relationship
has existed for several years between the
corporation of Milwaukie and the Mil
waukie Club, an institution which,
though vicious in its nature and corrupt
ing In its moraf influence, has done more
for the upbuilding of the thriving little
town on the banks of the Willamette,
Just south of Portland, than all the other
institutions within the corporate limits
of the town put together. This is admit
ted without mental reservation by every
citizen and taxpayer and every official
connected with the present city adminis
tration. What will be the fate of the community
now, in Its endeavors to keep step with
the strides of progress that are being
made by other neighboring communities
is a matter of conjecture. No man is
willing to vouchsafe a prophecy.
City Free From Debt.
Nobody can gainsay the statement that
Milwaukie today Is able to show a cleaner
bill of health in the administration of Its
civic affairs than any other Incorporated
community In the State of Oregon. From
Milwaukie's Mayor down to the humblest
citizen of the town, this is emphatically
Insisted upon, and with equal emphasis
it is admitted that the defunct Milwaukie
Club is responsible for this satisfactory
state of financial affairs.
Indeed, It has long ago become a mat
ter of civic pride that Milwaukie has not
a municipal obligation staring it in the
face, and that It hasn't had Its record of
civic virtue blighted for four years by
the arrest of a law-breaker. Its town
Jail has become a storehouse for fire-hose
and other paraphernalia of like nature,
and dust and cobwebs have accumulated
upon the books wherein the record of
crimes are kept.
For these and many other reasons, the
interference of the District Attorney of
Clackamaa County with the administra
tion of the affairs of Mllwaukle is con
demned with all the vehemence of out
raged authority on the part of the Mll
waukle officials, and contumely unre
strained ia iieaped, la well-rounded, meas
ure on the heads of the Interfering county
officers by the entire populace of the
town. '
Citizens Vent Spleen.
The men, the citizens, the tax-payers,
vented their wrath in a petition signed
by nearly 90 per cent of the male popula
tion of the town, which petition was pre
sented to Mayor Sehlndler, Saturday, and
which entirely approved of his policy of
allowing the rampant tiger to stalk un
bearded in his picturesque lair. The
women, yesterday, going home from
church w;th Bibles under their arms, and
fresh from prayer, added to the resent
ment expressed against the "Oregon City
Invasion." Milwaukie, "purged and puri
fied," Is bearing its heavy yoke of "moral
reform" with ill-becoming grace. It most
emphatically does not want such "ethical
spasms" inflicted upon Its quiet, easy
going existence. It fears civic apathy
and municipal stagnation, evils devoutly
to be shunned.
Angered by Interference.
There is no need for equivocation. The
people of Milwaukie are consumedly en
raged at every influence that added its
weight to successful performance of the
recently and well-said obsequies over the
K'i'yg w& - ;
t Herbert Knox Smith, Commissioner I
Herbert Knox Smith, Commissioner
of Corporations. Who Reports to
President Rooeevelt That the
Standard OH Has not Benefited
Consumers, and That It Has
Charged Extortionate Prices.
Mllwaukle Club. And there is good reason
for this general state of mind.
In the first place. The Oregonian's rep
resentative asked Mayor Sehlndler point
blank, yesterday afternoon to name a few
Mllwaukle citizens who wanted the club
put out of business. Ho shook his head. -
"There Is not one so far as I know,"
he said. The same question In. as few
words was put directly to Philip Streib,
president of the Common Council, and he
didn't know of a single one.
"Well then, who is to blame for closing
up the club?" was asked.
Outsiders Are Blamed.
"Outsiders," was the nonchalant reply
in both Instances.
Walk up and down the streets of Mil
waukie and ask one, two, three, half a
dozen, a score of citizens If they are op
posed to permitting, the club to' remain
open In their town, and every mother's
son will reply:
"No, the club has been a good thing,
one of the best things we ever had in
the town." .
"Well, why?" one asks and here ia the
Bum and substance, the gist of their
reasons for approving of such an institu
tion. There la no sophistry in their ex
planations, no specious argument in their
frank admissions. Just the plain, bald de
claration that the town can't live without
the club.
The Mllwaukle Club, In the first place
has paid Into the treasury of Milwaukie
11200 annually as a license. In addition it
has paid an annual liquor license of 3600.
This with a JS00 liquor license collected
from another saloon makes the total of
public revenue the town receives. With
It, it has been able to wipe out all out
standing debts; It has been able this year
to tell its tax-payers there would be no
levy of taxes on their property.
Built New City Hall.
The Mllwaukle Club has enabled the
ktown to spend KK00 for a new City Hall;
the Milwaukie Club gave the local grange
$100 toward Its handsome new building; It
erected a commodious waiting-room at
the O. W. P. station after the railroad
company had repeatedly refused to give
the town such a convenience;' it enabled
the town to install an arc-lamp system of
street lighting and to build long stretches
of sidewalks, to repair, grade and other
wise improve the public streets.
It has every year of its existence in
Mllwaukle given rent free to scores of
families living on various parts of the
12-acre tract it owns in the town; It
recently bore the brunt of the expense for
the biggest Fourth of July celebration the
town has ever known. It gave the people
of Mllwaukle, 700 of them, together with
the nearly 2000 other commuters in that
district a 15-minute car service to Port
land, where a 35-minute service was the
best the streetcar company would give
before.
The club bas supported 25 families be
longing to Its employes. The restaurant
in connection with the club has put an
average of $50 a day Into circulation In
the town.
Good Words for Dead.
"Do mortles nil nisi bonum." And plenty
of good things were said of the club while
It lived. It even went so far as to sup
port the local Milwaukie paper, giving It
fine quarters rent free, and they say
"Ike" Gratton has headed every public
subscription list that has ever been passed
around with the biggest contribution, and
that he gave a large sum when the people
of Mllwaukle decided to take their 5-cent
fare fight against the street railway com
pany before the State Railroad Commis
sion. That is the only kind of talk one could
hear in Milwaukie yesterday. The lugu-
... Concluded oa Pag S.
T OF
1
STILL KEEPS UP
New York's Foreigners
Easily Aroused.
5000 ARE IN FIGHT AT ONCE
Race Riot Starts Over Bet on
Ball Game.
TWO SUFFER FROM MOB
Another Woman Assaulted by Ital
lan Who Becomes' Frightened and
Makes His Escape Police Can
not Cope With Disturbances.
NEW TORK, Aug. 4. The dangerous
temper of the people, particularly in the
foreign quarters, who have been aroused
by the reports of attacks upon women
and girls, wus exhibited tonight in re
peated instances. A cry that a stranger
had passed a child with familiarity was
enough to start a mob.
Sadie Hamburger, aged 8 years, playing
In the hallway of her tenement home In
East Ninety-fifth street, this evening,
cried out that a man had seized her. The
child's mother seized George Keshner, a
Russian bookbinder, by the throat. The
excitement attracted 500 men and women,
who fought with each other to get a
chance at the Russian. Thirty policemen
rescued Keshner, bleeding from a score
of wounds, and all his clothing but his
shoes had been torn from him. The po
lice wrapped the prisoner in a blanket
and hurried him away. Sadie's sister
corroborated the story of the attack, and
the father says he saw his daughter . in
the grasp of the Russian.
Palmist Nearly Loses Scalp.
About the same time Hylo Saloda, an
Indian palmist, nearly lost his scalp in
Thirty-fourth street. He was accused
of giving pennies to a girt of 12 year.
The father wanted to know why, and Sa
loda showed fight. He slashed about
him with a penknife and then knocked
down a policeman. A crowd of perhaps
a thousand persons attempted to remove
Saloda, but were frustrated.
Mob Gets Wrong Man.
Louis Conconcella was the victim of cir
cumstances. A couple quarreled in One
Hundred and Seventeenth street and their
youthful daughter went out to the side
walk and wept. A passing boy slapped
her and ran away. The girl's cries and
the running boy aroused the neighbor
hood, who chased the lad. The boy es
caped, and Conconcella, who had out
footed the other pursuers, was mistaken
by the mob for the girl's assailant.
Overtaken at last, Conconcella was set
upon, knocked down and kicked until
nearly dead. The police rescued him
after he was dangerously injured.
Another Woman Assaulted.
When John Bulger returned tonight to
the flat he and his widowed mother, Mrs.
Ellen Bulger, occupied, according to the
story he told the police, he found his
mother lying unconscious upon the floor.
He revived . her, and she told him that
Bhe had been assaulted by an Italian,
who had escaped. Mrs. Bulger said that
she was seized from behind by a man,
who, she thought, came down through
the roof. This man, Mrs. Bulger said,
knocked her half senseless and attempt
ed to assault her. Noise in the flat be
low frightened him and he fled. Later
it was said the woman would probably
recover.
Kace Illot Starts.
The fighting element among the whites
and blacks in the vicinity of One Hun
dred and Thirty-sixth street and Fifth
avenue lined up according to their racial
prejudices again today. thi3 time to set
tle a baseball dispute. When the argu
ment was ended 60 persons required med
ical treatment and of that number two
will die. Probably 5000 persons took part
in the fight, but the 300 policemen who
dispersed the mob after everyone was
fought out, got only nine prisoners, and
of these two were women. John McCue,
a truckdriver, 32 years of age, and Mat-
thew Murtha, aged 35 years, an Iceped
dler, received fractured skulls and were
removed to a hospital In a dying condi
tion. The injuries of the others ranged
from broken ribs to serious razor cuts.
Everybody Joins In.
The trouble started at a ball game,
when a white man and a colored man
had made a wager and subsequently
quarreled over the payment. Presently a
gang of white men and a colored fighter
started a general row, the crowd being
about equally divided In color. Every
sort of weapon was used, and for blocks
the constantly augmenting mob surged,
while the police reserves from eight pre
cincts hammered away with their clubs
to break the tangle. Occupants of homes
along the line of battle were not content
to be spectators only of the strife," and
from windows and points of vantage on
the roofs every piece of crockery and
furniture that could be spared was hurled
down upon the heads of the rioters with
reckless Impartiality. Even women and
children Joined In the fray.
It was two hours before the police con- '
trolled the situation, and then patrol wa
gons and ambulances picked up those
who were too seriously worn out to get
away. The most harmed were taken to
hospitals, and the prisoners were locked
up charged with Inciting to riot. To
night several hundred officers patrollet
the disturbed tLeihborbood, .. .