VOL. XLiVI XO- 14,596.
PORTLAND, OREGON, THURSDAY, SEPTE3IBER 19, 1907.
PRICE FIVE CENTS.
MORE LIGHT SHED
STANDARD
Profits of Indiana Com
pany 1000 Per Cent.
MUCH JUGGLING WITH BOOKS
Millions Transferred Between
- - Two Companies.
PROFITS OF SUBSIDIARIES
Kellogg Gets Figures on Seventeen
Tentacles of Octopus, Showing
Over 100 Per Cent Profit.
How Law Was Dodged.
PROFITS OF STANDARD Oil- CO.
Aggregate capital or IT subsidiary
companies. $:9,25o,2X.
; Aggregate dividends In 1!03, except
for three companies, figures for one
of. which are for JfC4. another for
1906. a third rot given. 47.9S,685.
Profits In J0O3. I62.92S.02S. .
Dividends In 1906. exceot Vacuum
Oil Company for which figures are not
given. ftl.918.6S9.
Dividends In 1f06. ."fi.025.S15.
Perctntr.ge of profits In 1903. 10C.2;
in 1906, 94.55.
NEW YORK. Sept. IS. More light
wag shed upon the remarkable earn
ing capacity of the various subsidiary
companies of the StandifM OH Com
pany today, when Frank O. Kellogg,
who l conducting the Federal suits,
succeeded In placing upon the record
the profits of -17 of the principal sub
sidiary companies In the years 1903
and 1906. The statement o earnings
of the Standard Oil Company of Indi
ana, which was recently fined $29,245,
000 by Judge Lan4is. of Chicago, for
rebating, disclosed that in 1906 the
company earned $10,516,083 on a cap
italization of 11.300.000, or over 1000
per cent a year. The Indiana com
pany In 1906 earned more than any
subsidiary company of the big com
bine. Queer Financial Juggling.
' Mr. Kellogg developed during the
J.y. while Clarence G. Fay, assistant
comptroller of the Standard OH Com
pany, was on the stand, a curious
problem of financial bookkeeping or
handling of accounts, which Mr. Fay
failed to explain. From figures sub
mitted, it was shown that the Stand
ard Oil Company of New York, in
1904. made a profit of $7,775.76:), and
paid as dividends to the Standard Oil
Company of New Jersey the total sum
of $32,998,430. This transaction re
duced the net assets of the New York
company from S40.423.9O0 to $15,179,
106, while the liabilities leaped from
$47,646,235 in 1903 to $91,395. 145 In
1804. an Increase of nearly $34,000,000.
The gross assets of the New York com
pany, however, increased from $88,
074.661 in - 1903" to $96,574,852 in 1934.
Meanwhile the accounts receivable of
the Standard Oil Company of New
Jersey grew from $19,345,041 In 1903,
to $$8.272.9?4.
Mr. Fay was closely questioned as
to the nature of the Increased liabili
ties of the New York company and
the Increase In the accounts receivable
of the Standard Oil Company of New
Jersey, but he said he could not tell
until he had examined the books of
both companies, which he told Mr.
Kellogg he would do.
Dodging Texas Anti-Trust Law.
Charles M. Pratt, secretary of the
Standard OH Company, recalled to the
witness stand, told how he had held for
the Standard Oil Company the stock of
the Waters-Pierce Oil Company at the
time when it was not permitted to
operate In the state of Texas. He Bald
that he held the stock as a matter of
convenience and not to avoid the anti
trust laws of Texas.
Mr. Pratt threw some Interesting side
lights on the Waters-Pierce Oil Com
pany, the stock of which was held for
a long period by M. M. Van Buren, who
was not connected with the Standard
OH Company. Mr. Van Buren purchased
the stock from Mr. Pratt and early this
year the Standard Company bought it
back. The nature of the transaction
showed that Mr. Van Buren received
from the Standard Oil Company exactly
what he paid for the stock and that
during the time he held It the dividends
were paid to the Standard Oil Company.
. Trust Agreement; Shut Out.
H. H. Tllford, treasurer of the Stand
ard OH Company, was called to the
stand late today and Mr. Kellogg made
an .effort to have spread on the records
a copy of the trust agreement of 1882,
but John O. Mllburn, chief counsel for
defendant company, objected on the
ground that auch an agreement was
prior to July 3, 1890, when the Sher
man anti-trust law went Into effeat,
Further efforts to obtain the records
of the liquidating trustees of the Stand
ard OH Trust, who effected the dissolu
tion of the trust and formed the pres
ent Standard OH Company of New
era?, were made by Mr, Kellogg,
5 FSf III AMIU2B! l'0U tt4
Income of the C. M. Pratt Investment
Company. He said that the Income
from this source in 1902 was $138,400,
and that the money was paid over to
the Standard Oil Company by C. M.
Pratt, who yesterday testified that he
held stock of the Waters-Pierce Oil
Company of Texas for . the Standard
Company, and that the Standard Com
pany held the stock of the C. M. Pratt
Investment Company In lieu of the
Waters-Pierce Oil Company stock.
Trade in Waters-Pierce Stock.
Mr. Fay testified that between 1899
and 1906 the stock of the Waters-Pierce
OH Company did not appear upon the
books of the Standard Oie Company of
New Jersey as an asset ' In 1899 the
latter company's balance sheet showed
ownership of 2747 shares of the Waters-Pierce
stoca,, valued at $3,067,892.
Mr. Fay was questioned about cer
tain Oi.tral Trust Company's certifi
cates, held by the Standard Oil Com
pany between 1899 and 1904. A state
ment from the company showed that
the stock of the National Storage Com
pany was sold in exchange for Lehigh
Valley Railroad bonds and deposited
with the Central Trust Company,
Frank B. Kellogg. Assistant United
States Attorney-Uenrral, Who Hal
Inearthed Inmost Secrets of Stan
dard Oil.
which issued certificates in exchange.
In 1905 these Central Trust certifi
cates were exchanged for $100,000 In
cash and, $500,000 worth of 4 per cent
bonds of the Lehigh Valley Railroad
Company. .
Show Income of AH Companies.
Mr. Kellogg asked Mr. Fay to produce
a statement showing -the capitalization
of all the companies in which the Stand
ard OH Company was interested. Mr.
Fay said he would, if possible. It was
agreed that Mr. Fay and an accountant
of the Government should retire and
check up the .income accounts from the
various subsidiary companies. The par
tial list submitted contained the names
of seventeen subsidiary companies. Mr.
Fay said that practically all the stock
of the original nineteen subsidiary com
panies was obtained by the Standard Oil
Company of New Jersey between 1899 and
1W.
Mr. Kellogg then asked Mr. Fay If he
had searched for the records ' of the
liquidating trustees during the period be
tween 1S92 and 1899. '.Mr. Fay said he
hunted last night and found several
Standard OH Trust ledgers, the contents
of which he had not examined and did
not know what they contained. He said
the company only kept the balance sheets
of recent date, and that he had made no
search for the "balance sheets ' previous
to 1899. Mr. Fay testified that he had
seen no balance sheets of the Waters
Pierce Oil Company.
'Why is it that your office, which has
Information of other companies, has no
Information of the Waters-Pierce Oil
Company?" asked Mr. Kellogg.
"I don't know," replied Mr. Fay.
Standard Gets Waters-Pierce Profits
Mr. Pratt took the witness stand this
afternoon. He said during recess that
representatives of the Government were
going over the ledgers of the liquidating
trustees and that information concerning
the liquidation of the trust was being
prepared for presentation in court.
Mr. Pratt was shown a statement show
ing the income of the Standard Oil Com
pany of New Jersey from the C. M.
Pratt Investment Company and asked If
the income was the total amount of divi
dends received from the Waters-Pierce
Company. He replied, that it was. Mr.
Pratt said that the certificates he held In
the Waters-Pierce Oil Company were in
dorsed In blank by H. Clay Pierce, of
St. Louis, the president. Prior to 1900
the Waters-Pierce Oil Company of Texas
had a capitalization of $400,000 and the
Standard Company owned 2747 shares.
Mr. Pratt said he paid out of his pocket
$475,000 for the stock and held it in the
Interest, of the Standard OH Company.
In May. 1905, the New Waters-Pierce
Oil Company was formed and Mr. Pratt
exchanged tne old certificates for the cer
tificates of the new company.
"Why did you hold this stock for the
Standard Oil Company?" asked Mr. Kel
logg. "As a matter of convenience." was the
reply.
"Now, as a matter of fact, did you not
hold this stock to evade the anti-trust
laws of Texas?"
"I do not know," was Mr. Pratt's an
swer. Bogus Bale of Stock.
Mr. Pratt said that in March, 1904, he
sold the Waters-Pierce stock to M. M.
Van Buren, who, the witness said, had no
connection with the Standard Oil Com
pany. Mr. Van Buren paid about $4,
000,000 for the stock, giving $150,000 in cash
and the rest In notes. The cash and
notea. Mr. Pratt said,, were turned over
by him to the Standard Oil Company.
Mr, Pratt said . he did not know why
the stock was sold to Mr, Van Buren.
"The dividends the first year he held
the stock amounted to $1,800,000, and
sflnnrlnnWI ao Paga 4J
f kfy ';, ; '. Is
E
HIS CANDIDACY
Bryan Soon to Issue
Party Manifesto.
OUTLINE PLATFORM HE WANTS
Dictate Only Terms on Which
He Would Run.
EXPECTS FIERCE CAMPAIGN
braskan Would Rather "ot, bul
Would Yield to Demand Refer
endum, Revision and Extension
Federal T'ower His Issues.
WASHINGTON, Sept. 18. (Special.)
The most Important piece of political
news of the Summer reached Washing
ton today, to the effect that William J.
Bryan will, within a few weeks, issue a
statement announcing his candidacy for
WILL
PROFITS OF STANDARD OIL CO.'S SUBSIDIARY COMPANIES
NAME.
Standard Oil Co. of Indiana
Indiana Pipe Una Co.-.
Atlantic Refining Co
Buckeye ripe Line Co
Continental Oil Co
Eureka Pipe Line Co
Galena Signal Oil Co
National Transit Co
New York Transit Co
Northern Pipe Line Co ,
Polar Refining Co '...
Southern Pipe Line Co
Standard Oil Co. of Iowa
Standard Oil Co. of Kentucky
Standard Oil Co. of New York
Standard Oil Co. of Ohio
Vacuum Oil Co....,
Totals
1904. T1905. tNot
the Democratic Presidential nomination
next year and submit an outline of the
platform upon which he will run, ff his
party wants him to make the race.
This information was brought to, the
capital by close friends of Mr. Bryan,
who recently have conferred with him
regarding the approaching Presidential
campaign. Another and more formal con
ference between Mr. Bryan and some of
his most trusted advisers from various
sections of the country, for the purpose
of deciding upon details respecting the
course to be pursued by the Nebraskan,
originally was scheduled for September
15. For some reason, however, this con
ference has been postponed. But It Is
stated that Mr. Bryan's statement will
issue early in October and that It will
supply material from which Democratic
calculations and maneuvers will be con
structed throughout the period ending
with the National convention that Is to
name the Presidential ticket.
Mr. Bryan, It Is stated upon high au
thority, will tell the members of his party
that he would rather not again be ' a
candidate for the Presidency, but that
WHAT MIGHT BE DONE WITH THE STANDARD
, wnrr;r..
v O If 1
Would come In handy to pay the
depositors of that defunct bank.
Bishop Moore eould fit out those
lll-4lreaaed preachers.
Jn view of the fact that there seems to
be a. widespread demand that he be the
Democratic standard-bearer, he will ac
cept the nomination. If It be deemed best
to give It to him on the -terms he lays
down. He will be more or less speclflo
as to these terms.
There :a no positive information at
hand as to the important principles
or policies which Mr. Bryan will put
forth as his platform. It is assumed
that he will make reference to the Ini
tiative and referendum, but whether
the reference will be In the nature of
demanding the full consummation of
that idea at the present ttroe must re
main a matter of conjecture until the
Nebraskan has spoken. Undoubtedly
referenoe also will be made to the
question of Government ownership,
but, from Information available. It Is
safe to say that no demand In favor
of the Immediate absorption of public
service corporations (primarily the
railroads) will be exploited. The
Bryan belief that Government "owner
ship eventually will prove the only so
lution of the railroad problem may be
enunciated with the qualification that
the time for the change has not yet
arrived. In other words, it may be
sought to have It appear that Govern
ment ownership is not to be a.n issue
next year. Tariff revision. Federal
vs. state control, the centralization of
power, and various other matters that
have occupied the attention of Mr.
Bryan recently and which are familiar
to those who follow his teachings will
receive special treatment.
Expects Terrific Campaign.
The friends of Mr. Bryan who have been
apprised of his plans for submitting his
candidacy to the rank and file of the
party say that he believes that next year's
campaign for the party will be a terrific
one. He may make this point forcible In
his prospective statement. The 1908 cam
paign, Mr. Bryan believes, will. In Its
vigor and fierceness, parallel the cam-
Capita!..
$ l.ooo.nno
1.000,000
A. 000, 000
10,000,000
BOO.CKJO
S.OOO.Ooo
l.ooo.ouo
. 2.4.o.20u
- .... 6.7UO.000
1,000,000
Aoo.oftO
5.0OO.U04
l.OOC.ooo
1.000.000
15.oOo.000
3.300.000
2.500.000
$59,295,200
given.
Dividend
1903.
$ S.401..VO
S. 79.1. 000
S. 469.8.10
1.499.953
40S.0OO
2.049.44O
1.125.GMO
2.543.105
3,949.29
79.90S
1,438.1.1
539. HSH
fO 10,000
997. 2K
10.49S.U5O
174,070
t
$47,698,085
paign of 1896. In the 1896 campaign tb
country was agitated as it had not been
in years and years. Mr. Bryan suffered
overwhelming defeat, but up to the count
ing of the ballots he had his opponents
on edge. The chance for Democratic suc
cess, Mr. Bryan declares, will be better
next time.
The latest news changes the aspect of
affairs considerably. Instead of waiting
to see what the Republicans may do, Mr.
Bryan apparently has decided to, outline
what he thinks ought to be the Demo
cratic plan of campaign and let the rank,
and file of his party thresh out the whole
matter and reach a conclusion regarding
the acceptance of his views and ef his
own availability as the man to lead the
fight.
PREFERS TO STAY CANDIDATE
Clever Satirist Represents Bryan as
Not Desiring Election.
NEW YORK, Sept. 18. (Special.)
Will the old-time. Cleveland Demo-
JConclufled on Page 2.)
Our 14-dollar-a-raonth ao Idlers could
find a place for it.
It would enable the over-worked
clerk to sleep mornings.
T
ROTTING
RECORD
AT
R. Ambush Goes a Mile
in 2:11 3-4.
ACCIDENTS CAUSE SENSATION
Horse and Driver Turn Com
plete Somersaults.
SURPRISE IN. BIG STAKE
Ambush. Driven by Owner, 'G. . W.
Bonnell, Captures $5000 Purse
In Three Straight Heats Run
away Adds to Excitement.
BY WILL, Q. MAC RAE.
SALEM, Or., Sept. 18. R. Ambush, G.
W. Bonnell, of Redlands, Cal., won the
Lewis and Clark $5000 stake this after
noon in three straight heats, affording
Proflts
1903.
$ R.7.M.410
4. 190.604
9.794.190
4,592.147
S.NR.900
3.118.31(5
l.82.2Tl
5.340.042
3.035,030
80.522
1.120.4BO
1.139.II1H
1.0K9,418
1.772,173
14.391.040
900. 1R4
1.814.401 '
Dividends
10OK.
$ 4.4O5.500
2.179.340
2.249.9.15
5,799.798
4O.1.0OO'
3.949.634
1. 377.2O0
5.l90,3:J
2.099.958
2.0OO.O0O
449.400
4.599.938
3.9O4.09S
1.994.400
1.149.090
174,900
' t
Frofi
1900.
$10,518.
2.314.
5.506.
7.023,
' 575.
2.433.
2.S0.1.
1.029.
2.343.
1.591,
1.2.13,
4.639.
B73,
1.307.
9,556,
1,01:9,
1.449,
rs
OR2
5S3
237
362
043
140
056
767
2S2
014
519
306
990
,750
031
526
.527
'$62,928,028 $41,918,859 $66,025,815
the thousands who filled the grandstand
and Infield at Lone Oak track a gen
uine surprise. Driven by the owner,
R. Ambush captured the rich stake, but
in each heat Bonnell was forced to
drtve for the best that was In the
horse. r
Overlooked entirely by the gossip
for there is no betting here Ambush
went to the post unspoken of. Wise
harness men and a host of others, who
think 'they follow the doings of the
light harness brigade, talked of noth
ing but Freddie C., North Star, Carla
kin and Satin Royal.
Nine Start In First Race.
Nine of as high-class harness horses
as ever faced a starter caught Judge
Wood's eye as they scored for the Bret
time. There were cheers for North
Star, cheers for Durfee and Carlakin
and for Satin Royal. All the time a
venerable gray-headed man, seated be
hind a big brown horse, watched only
the pole horse and was ready" to go
away at the word. There was tiresome
scoring, but at last the fle.d was off
OIL'S HALF BILLION
Central Oregon could get along
without Harrtman.
Mr. Average Cltlzea would welcome
it ahont the first of the month.
BROKEN
SALEM
to a perfect start. From third position
Bonnell soon got clear of the field and
took the lead into the back stretch
with North Star at his flanks. The
pair raced this way over the Journey
and when the struggle a 16th from
home came, the crowd yelled "North
Star wins," but he did not, for Bon
nell shook his whip at Ambush and
daylight separated the pair as they
dashed under the wire.
"All right for the first heat." said
the crowd. "Wait for the second heat."
They did. and what they saw was
Bonnell, after standing a drive for
half a mile with Ambush, not only win
the heat, but lower the Lono Traok
record for half a mile, and as an added
glory the mark of 2:11 Is the record
for Oregon, Washington, Montana,
Idaho and. In fact, of the entire North
west. The second and third races furnished
thrilling accidents. In the second heat
of the Valley stake. Sam Casto, one of
the best-known of the Oregon drivers,
received a fall right under the grand
stand in which he sustained a broken
leg. He was driving Vingora in the
second heat of the three-year-old pace
; I? J
lb ff V
CongreaamaB John Dalzell, Chairman
of House Rules Committee, Moat
Recent Convert to Tariff Revision.
when Vingora, who was under a ter
rific drive, choked and fell. The horee
turned a complete somersault, throw
ing Castro clear off the bike sulky.
The old man, while In the air, also
turned a somersault. At first It was
not thought he was Injured, hut when
he endeavored to stand ur It was dis
covered ' that his left leg was broken.
While the concern of the crowd was
for the driver, there were cries of hor
ror for the- horse who, when she fell,
landed with her neck and head undor
her body.
Chappell was the other driver who
came near meeting with a serious ac
cident. In the first heat of the 2:20
pace. The Prince, whom he was driving,
broke down the back stretch and when
Chappell attempted to pull him up, the
bridle gave away.
The moment The Prince found him
self without a bride, he broke Into a
wild gallop and but for the fact that
he was well up In the front division.
(Concluded on Page 6.)
CONTENTS TODAY'S PAPER
The Weather.
TEPTERDAT'S Maximum temperature. 64
degrees: minimum temperature, 50 de
grees. TODAY'S Fair; westerly winds.
Foreign.
British government to use fuel oil on war
. aljlps. Page 4.
King LeoDold feara arbitration of Congo
affaire. Page 4.
Brltieh doctor scoffs at Maurier for growing
thin. Page 4.
National.
Secretary Garfield will not let up on land
frauds. Page 5.
Congressman Jonea may be chairman of
rivers and harbors. Page 5.
Balllnger Ignores political pull In ln& Of
fice. Page 4.
Census bulletin on shipbuilding. Page 4.
Bonaparte declares policy regarding trusts.
Page 3.
I Politics.
Bryan will declare his politics and expound
his policy. Page 1.
Clever satire on Bean's political methoda.
Page 1.
Oklahoma swept by Democracy with big
majority for prohibition. Page 4.
Anti-saloon men demand action by Con
gress In support of prohibition. Page 2.
Strong movement started against blue laws.
Page 2.
Senator Fulton declares for third terra.
Page 4.
Domestic.
Government exposes standard Oil's proflts
and tricks to evade law. Page 1.
Whoieaale arrests of Pennsylvania 'Capitol
grafters. Page 1.
Miss Tolan's double appears and solves mys
tery. Page 3.
Associated Press approves fight with oper
ators. Page 2.
' Pacific Coast.
Northwest record broken at Palem race.
Page 1.
Oregon brood horses receive many premiums
at State Fair. Paga 6.
Hoqulam murder mystery proves baffling.
Page 6.
Vancouver enjoys era of prosperlt. Page 6.
Sports. ,
IjOs Angeles defeats Portland, 8-2. in hard
fought ball game. Page 12.
Commercial and Marin.
Oregon potato crop larger than last year's.
Paga 17.
Chicago wheat market closes shade higher.
Page 17.
Advance In stock prices is checked
Page IT.
Oil-tank steamer W. S. Porter performs
, novel feat In towing. Page 16.
Portland and Vicinity.
Gus A Lowlt. of Eagle Department Store,
revealed as Portland's champion bor
rower. Page 10.
Increase In school attendance now 89T.
Page 11.
Saturday Evening Post staff man pays
Portland many compliments lnartlcle.
Page 10.
Brooklyn church seeks to retain Dr. Dyott
as pastor. Page 11.
Passionate love letters of Mrs. Beynolds
to paramour read to murder trial Jury.
Page 18.
Committee recommends makeshift building
ordinance for passpga. Page 10.
PToperty-owners complain against Paclflo
Coast insurance combine. Fagf 10.
KEYSTONE STATE
AFTER GRAFTERS
Fourteen Charged With
Conspiracy.
CONGRESSMAN AMONG THEM
State Officers, Past and Pres
ent, Involved.
WILL SUE FOR MILLIONS
Only Four of Men Accused by In
vestlgators Escape Accusation.
Architect, Contractors and
Manufacturers in Net.
HARRISBURQ. Pa.. , Sept. 18, The)
long-expeeted arrests of those held to be
responsible for the frauds committed In
the furnishing and decorating of Penn
sylvania's $30,000,000 Capitol were made to
day, the Attorney-General causing war
rants to be Issued for 14 of the IS' per
sons and firms named by the Capitol In
vestigation comminslon as being involved
in the scant" -I. Those for whom warrants
were Issued are: )
Joseph H. Huston, architect, and his
active assistant, Stanford B. Lewis,
both of Philadelphia; John H. Sander
eon, Philadelphia, chief contractor for
furnishings; Congressman H. Burd
Cassel,. Marietta, Pa., treasurer and
executive officer of the Pennsylvania Con
struction Company, contractors for steel
filing cases; James H. Shumaker, Johns
town, Pa., former superintendent of pub
lic grounds and buildings, who receipted
for the furnishings; George F. Payne and
his partner, Charles O. Wetter, both of
Philadelphia, builders of the Capitol and
contractors for $303,000 attio; William P.
Snyder, Spring City, Pa., former Auditor
General, who approved the warrants of
te contractors;. William L. Matthues,
Media, Pa., former State Treasurer, who
paid the bills1 of the. contractors; Charles
P. Kinsman, Wallace Bolleau, John G.
Nelderer,- and George K. Storm, all of
Philadelphia, stockholders in the Pennsyl
vania Bronze Company, organized by San
derson for the manufacture of the 12,000,
000 lighting fixtures: Frank Irvine, au
ditor In the Auditor-General's office, who
audited the accounts of the contractors.
The men for whom warrants were Is
sued include all of tho 18 persons and
firms mentioned by the investigation com
mission in its report to Governor Stuart
as being Involved in the Capitol contract,
with the exception of Frank G. Harris,
former State Treasurer, and Edward B.
Hardenberg, former Auditor-General, both
of whom were members of the board of
grounds and buildings that awarded the
Cassel contracts; George C. Kelm, book
keeper In Shumaker's office, and the pres-'
ent deputy superintendent of grounds and -buildings,
and the International Manufac
turing & Supply Company, an alleged
"dummy" bidder against Sanderson.
Nearly all the defendants appeared dur
ing the day, waived hearing and entpTed'
ball for their appearance in the Dauphin
County Court. Several were unable to ap
pear because of Illness. The principal
defendants were held In $60,000 batl. which
was furnished In every Instance by surely
companies'. ;
All of tho defendants are charged with,
consp.raoy to cheat and defraud the stata
by making false invoices, which were ap
proved by Huston and Shumaker. Charges
of obtaining money by false pretenses
were also entered against Sanderson, Cas
sel, Payne and Wetter, it being alleged
they furnished fictitious bills for a great
er amount than they were entitled to re
ceive under contract.
WILL SUE FOB STOLEN MOSEX
State Will Seek to Recover $9,000,-
000 From Swindlers.
PHILADELPHIA, Pa.. Sept. 18. The
arrests are based on the report made to
Governor Stewart by the commission cre
ated by the Legislature to investigate the
Capitol scandal. They will be followed by
civil suits for the recovery of a portion of
the $9,000,000 collected by contractors for
the furnishing and equipping of the Capi
tol.
In its report made public about a month
ago the commission named 18 persons and
firms as being Involved In the Capitol
contracts, and recommended prosecution
of any and all persons concerned in the
fraudulent transactions, named specifical
ly, and all persons who may be directly
or indirectly involved.
John H. Sanderson and Joseph M. Hus
ton, of this city, left for the state capital
at 10:30 this morning to appear before a
magistrate. Both were accompanied by
counsel. Both had spent the Summer
away from home during the investigation
of the fraud charges, and returned to this
city only yesterday to await the sum
mons. Huston's commissions as architect for
the Capitol Commission for the construc
tion of the building and of the Board of
Publlo Grounds and Buildings, by which
it was furnished and equipped, amounted
to $525,000. Huston collected all of his
commissions except $104,000, which the
State Treasurer refused to pay on the
ground that there was evidence of fraud
and collusion in his transactions with the
board. Huston was one of the foremost
architects of Philadelphia.
John H, Sanderson, of Philadelphia,
collected more than $3.Id0,000 for lighting
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