r ; . . . . VOL. XLVI 0- 14,597. PORTLAND, OI1EGON, FRIDAY, SEPTEMBER 20, 1907. PRICE FIVE CENTS. OCTOPUS DEFIES IS OF TEXAS Again Does Business Under Alias. TILFORD TRIES TO HIDE FACT Rockefeller Owns One-Fourth Standard Stock. HISTORY OF EXTINCT TRUST Treasurer Shows How It Wiggled Through Laws and Court De cisions to Continue Existence Under Changed Names. SEW .YORK. Sept. 19. That the Stan dard OH Company is operating under the name of the Corslcana Refining1 Company ' In the state of Texas, which has forbidden the oil combine to operate within the state, was indicated today when Wesley H. Tilford, treasurer of the Standard Oil Company, under examination in the Gov ernment's suit against the company, noti fied that H. C. Folger and C. M. Payne, whom Mr. Kellogg, the attorney for the Government, states, control the Corslcana Company, are prominent in the conduct of the affairs of the Standard Oil Company. Mr. Kellogg sought to draw from the witness the information that the Corsl cana Company was really a Standard Oil Company and was operating In Texas be cause the anti-trust laws of that state would not permit the combine to operate. Mr. Tilford replied that as far as he knew the Standard Oil Company had no inter ests in Texas. He said 'that Mr. Folger and Mr. Payne were both officers of the Standard Oil Company, but he was not aware that they owned the Corsicana Company. , Tracing Changes of Trust. Mr. Kellogg spent a busy day tracing the various changes in development of Standard Oil from the time of Its Incep tion In 1SS2, when t,he trust was formed, tntil the trust was dissolved in 1889 and the Standard Oil Company of New Jersey was formed. Mr. Kellogg developed many of his questions from the trust agreement of 1SS3, which was contained in tha bill of complaint filed in St. Louis last December, when the present action was commenced. This trust agreement; which was entered into by John D. Rocke feller and 43 other oil interests, provided that the Standard Oil Company should be formed In Ohio. New Tork, Pennsylvania and New Jersey, and In other states whenever the trustees deemed advisable''. All the properties and assets of the em braced corporations and companies were to be turned over to the several Standard Oil Companies, which In turn issued their own stock In exchange. Under the terms of this trust agreement all stock was to be delivered to nine trustees, who issued to the depositing stockholders trust certifi cates equal at par value to the" par value of the several Standard Oil Companies. The nine trustees under the original agreement were John D. Rockefeller. O. H. Payne, William Rockefeller. J. A. Bost wick, H. M. Flagler, w. G. Warden. Charles Pratt, Benjamin Brewster and John D. Archbold. Trustees in Absolute Control. The trustees had absolute power In the control of the companies. They could purchase with the trust funds the stocks and bonds of the other oil companies on such terms as they deemed advisable, and could dispose of them whenever they considered it necessary. The trustees, who were elected to hold office three years, were balloted for by owners of trust cer tificates. The agreement further provided that the trust should continue during the lives of survivors of the trustees named in the agreement and 21 years thereafter. Mr. Tilford was questioned at length on the trust period between 18S2 and 3892, and the period of trust liquida tion from 1892 to 1899. Rockefeller Owns Over Fourth. Mr. Tilford, as secretary of the com pany, could give the povernment coun sel little information during the period of the Standard Oil trust, though he was a liquidating trustee. Mr. Kellogg finally asked Mr. Tilford if during the period of liquidation there had been ajiy real change In the management of the company, and the witness re- piled there was not. Another interesting development was the official statement made for the first time today ot John D. Rockefel ler's personal holdings In the Standard Oil Company. Just to what extent the reputed head was individually inter ested In the great concern has long been a matter of speculation. It was brought out today that Mr. Rockefeller owned 256,858 shares, br more than one-fourth of the total of 972.50D cer tificates of the Standard Oil Company. Based on the earnings of the company as placed on record Tuesday, It Is computed that Mr. Rockefeller's per sonal profits during the past eight years have aggregated almost $125, 000,000. At Tuesday's hearing it was testified that in the years 1899 to 1906 Inclusive the Standard Oil Company bad earned total profits of 1490.319,344. Wesley H. Tilford, treasurer of the tftJld&rd H Company, was questioned by Li Mr. Kellogg, In an effort to glean further facts and figures about the development of the- Standard Oil Trust and its subse quent liquidation into the present Stand ard Oil Company of New Jersey. Mr. Kellogg said today that the records of the liquidating trustees, which had been finally furnished by the Standard Com pany, were now being examined by the Government's counsel, and that It might be several days before the Information de sired could be produced in court. Mr. Kellogg also intimated that further wit nesses might be subpenaed as a result of the developments of the last two days and that the hearings would likely be pro longed for some time. Mr. Tilford was shown a copy of the agrement of 18S2, showing a list of com panies that entered Into the trust. "It appears that the Chess Carley Com pany signed that agreement; have you thought about that since I spoke to you last night?" asked Mr. Kellogg. Trust Still Kept Control. "No, I have not," replied Mr. Tilford, who yesterday testified that he had been ft ' K J- -? " f E. I.. F'olton. Brother of Senator C. W. Kulton, of Oregon, Elected Democratic Congress man From Oklahoma. a member of the Chess Carley Company, of Louisville, beforo he became identified with the Standard Oil Company. Mr. Tilford was asked when It signed the trust agreement. He replied that the stockholders were F. D. Carley and the Standard Oil Company, of Ohio. Mr. Tilford said that he became identified with, the Standard Oil Company, of Ohio, in 1S78. He was a liquidating trustee and one of the trustees under the trust agree ment, he said. Mr. Tilford testified that between 1S92 and 1899 the trustees received the dividends on the unliquidated stocks of the. subsidiary companies, and dis tributed the money to the holders of the trust certificates and the holders of the liquidating assignments. The trustees did not vote this subsidiary stock, as they had done before the company underwent liquidation. Prior to 1892, Mr. Tilford said, the trustees voted the stock and elected the directors of all the subsidiary com panies. Mr. Kellogg again asked? Mr. Tilford if it was not a fact that the liquidating trus tees during the liquidation period voted the stock of the subsidiary companies, whose stock., was still unliquidated. Rockefeller Owned One-Fourth. "I'm quite sure they did not," replied Mr. Tilford. "Then, who voted? The officers of these subsidiary companies?" asked Mr. Kellogg. "They were elected by individual stock holders of these companies," answered Mr. Tilford. Mr. Kellogg took up the method of liquidating a company and showed the witness a certificate of assignment made with John D. Rockefeller. "This shows that John D. Rockefeller owned 256,854 shares out of atotal of 972, 500 shares of trust certificates in 1892," said Mr. Kellogg. "Is that correct?" "I think so, according to the assignment here," replied Tilford. "Well, you, as counsel for the trustees, were one of the signers of the assign ment, were you not?" "Yes." "Then, when you made out this assign ment you transferred to Mr. Rockefeller his proportionate control of all the stocks of the subsidiary companies?" "Yes. sir," replied-Mr. Tilford. Mr. Tilford was asked If1, he could pro duce a record showing the amount of stock of the Standard Oil Company, of New Jersey, issued to John D. Rocke feller. The witness replied ' that he, did not know. Series of "I Don't Knows." Mr. Kellogg then called upon the wit ness to produce a record showing the amount of trust certificates held in 1892 by H. H. Rogers, William G. Rockefeller, H. M. Flagler. O. H. Payne, S. J. Hark ness and John D. Archbold: also the amount of the stock of the Standard Oil Company isaued to the same persons. These records would show, according to Mr. Kellogg, whether Mr. Rockefeller and his associates purchased or disposed of any of their holdings in the oil combine during the liquidation period. Mr. Tilford was asked who made up the plan to place the stocks of the subsidi ary companies fn the Standard Oil Com pany of New Jersey. The witness said he did not know. "You were treasurer of the new com pany, you- were attorney for the liquida tion trusts, and also a trustee?" said Mr. Kellogg. "Were you not prominent In the company?" "I hardly think it could be said I was prominent in the company," replied Mr. Tilford. "Can you tell me where the trust cer tificates turned over to your company may be found?" Inquired Mr. Kellogg. "I cannot," replied Mr. Tilford. As to whether the directors of the sub sidiary companies were elected through proxies held by the liquidating trustees, the witness had no recollection, nor could he tell how much stock the liquidating trustees held during the period of liqui dation as individual?. Mr. Tilford said he had been president i Concluded on rut i"lv,x LOSS OF MILLIONS COn HEALTH Secret Rogers' Break down Is Out. HALF OF FORTUNE IN RAILROAD Sacrificed $50,000,000 of Gilt-Edged Stocks.' ' HIS SUCCESS IS DUBIOUS Tidewater Railroad in Virginia Ab sorbs Vast Sums and Is Unfin ished He Recovers From Pa ralysis and Regains Speech. NEW YORK. Sept. 19. (Special.) Henry H. Rogers' physical breakdown is now attributed to the enormous financial losses ,he has suffered dur ing the last year. Mr. Rogers has in curred personal obligations to the amount of $40,000,(K0 in the construc tion of the Tidewater Railroad in Vir ginia. He has put $30,00D,000 in cash into the project, and has had to guar antee a $10,000,000 loan to provide fur-' ther funds to carry on construction. It Is reported that he will try to save what he can and quit active participa tion in finance.. . It appears that Mr. Rogers has tied up 35 or 40 per cent of his entire for tune in this one undertaking, and he has several others on his hands. Some bankers say the figure should be 50 per cent. His fortune has been esti mated at $60,000,030 to $80,000,300. This railroad has been a pet scheme of the oil magnate, and he has made great sacrifices to carry it through. Collapse Due' to Worry. Mr. Rogers' financial affairs, as may be easily, inferred, became badly in volved as a result of this venture, and it is believed that worry over this sit uation resulted in his physical col lapse. He suffered a slight apoplectlo stroke in July. Since then he has prac tically abandoned all business cares to his son and lieutenants, although he did come to New York once to show himself in Wall Street in order to avert a threatened crash. It is reported that he will not be able to resume his business place for two years, and in some quarters it is believed he will never again be an active force in the hurly-burly of the financial world. : Builds Road Through Virginia. Some five or six years ago, against the advice of his friends, Mr. Rogers started to build in West Virginia a low-grade road which would parallel the Norfolk & Western. His object was to carry coal and lumber to tidewater. The line was to be 443 miles long. Only 125 miles have been completed. - In order to meet ' the demands made upon him in connection with the construc tion of the railroad, Mr. Rogers was forced to dispose of a large amount of In vestment stocks at a sacrifice. All during the recent decline in prices, the vice- TWO INCIDENTS IN THE i i HEARST, THE INTERESTS' LATEST CANDIDATE "I DIDN'T MEAN A W ORD OF IT. FELLOWS, I HAD MY FINGERS CROSSED ALL THE TIME' . president of the Standard Oil Company sold gilt-edged stocks, such as - Standard OH, Consolidated Gas, Union Pacific and St. Paul. ... , Only a fewr months ago, in order to raise $10,000,000 for the Tidewater road, H. H. Rogers issued his personal notes, secured by $20,000,000 first-mortgage bonds; $10,000,000 stock and $10,000,000 dividend or interest-paying collateral. These 6 per cent notes were indorsed by H. H. Rogers personally. v Scheme Is Problematical. Railway officials, who have watched the construction of the road with intense interest from the beginning, say that the project, even at this stage, is more or less problematical. It is confidently hoped, however, that with the sacrifices already made in disposing of high-priced securi ties, Mr. Rogers is in a position to gain his end and to see the mileage completed. It was learned some months ago that the Standard OH man and his associates had bought all the available lumber and coal land in West Virginia. These pur chases amounted to thousands of acres, and will at some future time supply the Tidewater road with traffic. HEALTH IS MUCH IMPROVED Rogers Recovers Speech "and Paraly- sis Has 'Disappeared. NEW BEDFORD, Mass.( Sept. 19. ( (Special.) Dr. C. A. Pratt, who has made daily visits up to within a week ago, now considers H. H. Rogers so much imprqved that he has ceased his calls altogether. The doctar said today: "Mr. Rogers looks immeasureably bet ter now than he did after his nervous stroke in New York, but he is not entirely well by any means. If he continues to rest, as he does not, there will ba no rea son for apprehension as to his condition. "He has entirely recovered the power of speech. The day after the stroke he was hardly able to speak a word. Gradually the paralysis disappeared, and there is now no trace of it." The millionaire has been taking quiet exercise each day with Indian clubs, and each morning after breakfast he takeB a stroll about his estates. Wrhen he recov ers his health, he will probably live in retirement. - ' Did Not Buy Rogers' U. P. Stock. NEW YORK, Sept. 19. (J. P. Morgan today authorized a denial that he or the banking house of J. P. Morgan & Co. has taken over 60.000 shares of Union Pacific Railway stock from Kuhn. Loeb & Co. supposed to be owned by Henry H. Rog ers, of the Standard Oil Company. WARRANTS FOR GRAFTERS BUILDERS AND ARCHITECTS PLACED UNDER BONDS, Fayhe & Weller, Builders, and Huston, Who Assisted Architect, Are to Be Hailed Into Court. PHILADELPHIA. Sept. 9. Warrants reached this city late this afternoon from Harrisburg for the arrest of George F. Payne, builder of the State Captol, Charles G. Weter, his partner, and Stan ford Lewis, an associate of Architect Hus ton, who planned the Capitol. Counsel for Payne and Wetter, waived hearings and bail for Payne was fixed at $10,000 and for Wetter at $9000. Counsel for Lewis accepted service in his behalf and fur nished $4000 bail for his client's appearance In court. Payne is said to be ill at Mount Clemens, Mich. Warrants for eGorge K. Btorm and John C. Neiderer, of New York, stockholders in a concern which manufactured the light ing fixtures of the Capitol also arrived here today. The men are supposed to be in New York and it is stated that unless they accept service, the warrants will be served in that city. THE RECENT HISTORY OE.THE DEMOCRACY. POPULAR "DEMAND" MB. BRYAN 18 YIELDING TO. IS Crowd of 20,000 Gath ers at State Fair. SALEM CAN'T FEED VISITORS Nobody Growls, However, and Are Happy Although Hungry. CAR SERVICE EXCELLENT Throngs Handled in- Capital City Without Any Difficulty Awards Made on Milch Cows Blue Ribbon to Holsteln. . SALEM, Or., Sept. 19. (Special.) Twenty thousand people, of whom 2500 came up from Portland on the excursion trains, visited the State Fair today and viewed the exposition at its best. It was the biggest crowd that ever gathered upon the fair grounds, and was also the best natured, else there would have been much complaining. Restaurants and lunch counters were crowded all day long, and sandwiches and coffee could not be served fast enough from a score of stands. It was impossible to feed all the people, but the crowd realized the situation and those who had to go hungry did so with good grace.' On' the return trip to Port land this evening the Southern Pacific trains were packed, but the passengers were happy and jolly when the train pulled out of the fairy grounds. Fortunately the streetcar service was excellent, and the crowds between the fair grounds and the city were carried without delay or mishap. The weather was ideal, and all indications are that It will be' perfect through the rest of the week. Gate Receipts Break Record. That the fair this year is a great suc cess is already apparent, for the gate receipts have been beyond all precedent. An innovation was established this year in the form of a 35-cent charge for .ad mission to the grandstand, but the grandstand has been filled nevertheless. It is evident that the fair will close with a large surplus on hand with which to make permanent Improvements. The chief events at the fair today were the awards for county exhibits and for milch cows. Benton County secured the blue ribbon for a magnificent display of products arranged by H. L. French, of Corvallis. The premium Is $300. Lane County took second prize, $230, on an ex hibit by E. M. Warren, of Eugene. Mult nomah came third, and its exhibitor, A. J. Miller carried off $200: W. J. Fullerton won fourth place, for his Columbia Coun ty exhibit, and C. 8. Dow, of Astoria, took fifth prize for Clatsop. The last two premiums were $150 and $100 respec tively. Blue Ribbon to Holstelns. Of course there Is the usual disagree ment as to the merits of the exhibits, but the Judges made more than a super PORTLAND RECORD SMASHER ficial examination and undoubtedly made correct awards. The Holsteins have again won the milk test, the blue ribbon having been award ed to Scappoose Lundo Dekol, a 5-year-old cow, owned by P. A.- Frakes. The awards were made upon a test of both skim milk and butter fat, the skim milk being valued at 2Q cents per hundred pounds and the butter fat at 25 cents a pound. This is taken as an .average val uation, though it Is a little below the average valuation of the past two years. The rate Is equitable, however, for it applies to all alike. The blue ribbon win ner, in the test covering two days, showed skim milk worth 17 cents and butter fat worth J1.0S. total $1.23. Second place went to a Jersey, Line May, owned by Charles Cleveland, and giving skim milk to the value of 16 cents, butter fat $1.03, total $1.10. Third money went to an Ayrshire, Bonnie Lad of Bandon, en tered by Gilbert McMillan, of Walla Walla, and giving milk 17 cents, butter fat 83 cents, total $1. A Holstein, Stan hope Belle, owned by Frank, was fourth, yielding a fraction less than $1 total. Bor- Henry Burd Comet, Congressman From Pennsylvania, Arrused of Conspiracy In Connection With Capitol Frands. chesi Jennie Gray, seventh, an Ayrshire, entered by McMillan, took fifth prize, with a total of almost W cents. Excitement Over Awards. There was intense interest over the milk contest and a sensation was sprung when first premium was awarded to a Bed Polled or dual purpose cow. Later it was found that a clerical error had been made In transcribing the recoiyis and tha Red Polled gave place to a Holstein. Naturally the Holstein breed ers are jubilant. The single farm products contest was decided today In favor of W. H. Hulburt, of Albany, Mrs. F. A. Wolf, of Polk, getting second prize. SENTENCE COMES QUICKLY Man Who Robbed Tiffany's London Store Gets Five Years. LONDON. Sept. 19. The trial of Arthur P. Greene and Charles Rorer, two Amer icans extradited from New York, charged with robbing the TifTanys' London store, on Bond street, of Jewelry and gems x'alued at $25,000, was concluded today. Rorer was discharged, but Greene was sentenced to five years' penal servitude and recommended to deportation at the expiration of the sentence. ' . CONTENTS. TODAY'S PAPER The weather. YEST KRTA Y S Maximum temperature. 8tf degrees; minimum, S2 degree. TODAY'S Fair and warmer; northerly winds. Foreign. Hagu . delegate unanlmoun for regular peace conferences. Page 5. Pope fears anti-clerical outbreak In Italy today. Page 5. Japan may. annex Corea to1 end rebellion. Page 4. National. Garfiold gives cold comfort to speculators on irrigated land. Page 5. ' Domestic. Standard Oil case exposes notation of Texas law and extent of Rockefeller's wealth. Page 1. H. H. Rogers' breakdown due to Immense losses on new railroad. Page 2. Ralnroad wreck near Mexican boundary causes over 30 deaths. Page 4. Striking operators seek Roosevelt's Inter vention. Page 1. Paul Morton says prosperity Is everywhere. Page 7. American theopophists rebel against Mrs. Besant. Page 4. More arrests for Pennsylvania capltol graft. Page 4. Sawyer, of Oregon, arrested in Denver for embezzlement and bigamy. Page 5. Drest wins victory in famous Cameron dam fight. Page 4. Pport. Kelly tells why ho lost race at Jamestown. Page 7. Sir John S., California, makes new North Pacific record and wins $5000 purse on Salem track. Page 9. Pacific Coast. Portland Day at Salem fair is record breaker. Page 1. Japan stands pat behind treaty rights In dealing with Canada. Page 6. County division fight in Chehalis involves state issues. Page 6. Commercial and Marine. Firm position of canned goods market. Page 19. December wheat passes dollar mark at Chi cago. Page 19. Stronger undercurrent in stock market. Page 19. Two steamships chartered for outward load ing of grain. Page 18. Portland and Vicinity. Mrs. C. H. Reynolds tells story of her shame In murder trial. Page 12. Dark pages In Gus A. Low It's record come to light. Page 15. I Mutual and cooperative insurance com panies succeed In Oregon. Page 14. Water Board will hold- up construction of new mains pending bond -decision. Page 13. Portland defeats Is Angeles at baseball, i 64. Page 9. president Moore says he does not cara to be president of reorganized bank. Page 1. Test suit brought to determine validity of water, bonds. Pace 1. OPERATORS SEEK ROOSEVELT'S 1 Union Leaders Visit Him at Oyster Bay. THEY PROPOSE ARBITRATION Spirits Revive With Hope of End to Strike. COMMITTEE SEES NEILL Suprest Arbitration Board With Roosevelt as l inplrc Clowry Still Says That Western I'nlon Will Jfot Accept Arbitration. NEW YORK. Sept. IS, (Special.) Direct negotiations . with President Roosevelt have been started looking toward a settle ment of the commercial telegraphers strike and, while knowledge of the fact was denied by strike lpaders and officers of the companies tonight, it Is known that Percy Thomas, deputy president of the 'National union, and Daniel Ij. Russell, ex president of the New Tork local, had a two-hours' talk with the President in Oyster Bay yesterday, and that this con ference was by appointment. On their return to union headquarters In New Tork there was a marked revlvil of spirits among the strikers, and trusted men were sent in varioiw directions on secret and important errands. Colonel Robert C. Clowry, president of the Western Union Telegraph Company, declared tonight that his company would not arbitrate. WASHINGTON, Sept. 19. (Special.) Negotiations aiming at a settlement of the telegraph strike were begun here to day. Charles P. Nelll, Commissioner of Labor, held a conference with Thoma Mahon and Arthur Douglas, union mem bers, who came here specially from New York to explain to the Commissioner that they represented the dominant sentiment of the union telegraphers, and that they wished to make this proposition for set tlement: A jury of six to be appointed to settle questions under discussion and, providing they could not agree, a seventh to be ap pointed by President Roosevelt. XEGOTIATE WITH ROOSEVELT Operators Seek Arbitration Rumors of Dissension In Ranks. NEW YORK. Sept. 19. Conflicting re ports regarding the possibility of an early settlement of the telegraphers' strike were current tonight. From one unoffirial source it was given out that direct nego tiations had been opened with President Roosevelt, seeking his aid to bring about arbitration. According to this authority. Percy Thomas, of the National Union and Daniel L. Russell, ex-president of the New Tork local, had a two-hours' talk with the President, at the latter'a home In Oyster Bay, on Wednesday last. This could not be confirmed tonight, but Mr. Russell did say: ."The most Important action taken in connection with the strike was made on Wednesday, and we are satisfied that it will bring a speedy and satisfactory set tlement." Mr. Russell, who is also chairman of the local strike committee, added that word had reached him late tonight that two members of the union had gone to Washington to see Labor Commissioner Neill and to express to the Commissioner dissatisfaction with the conduct of the strike. If the report was true, Mr. Rus sell said, the men who had gone to Washington were not authorized to speak for the strikers, and that their action was unwarranted. No dissension, he said, existed in the- New York union, and res olutions setting forth that the members were In perfect accord would be adopted at a meeting of the union tomorrow. Small Going to Chicago NEW YORK, Sept. 19. It was said to night that President Small of the Tele- ' graphers' Union would leave for Chicago tomorrow morning. The illness of a mem ber of his family. It is understood, has made necessary the trip. MESSAGES XO MORE DELAYED Western ITnlon Withdraws Strike Reservation in East. NEW YORK, Sept 19. Superintendent Brooks of the eastern division of the Western Union Telegraph Company to day issued instructions withdrawing tha reservation "subject to delay," which was placed on telegraph messages dur ing the strike. The withdrawal extends to the territory east of Buffalo and Pittsburg and north of Washington and Includes the entire East. Fined for Comment on Trial. WALLACE. Idaho. Sept. 19. (Special.) Henry G. Coats was fined the costs ol on action of contempt of urt this af ternoon by Judge W. W. Woods. Coats is editor of the Mullan Miner and had published a red-hot editorial on the Hicks trial, after instructions concerning this sort of thing had been Issued by the Court. Coates defended himself by plead ing that he was unaware of the law dealing with these matters, and thought It one of his privileges. He had not been long in the newspaper business and had simply followed the lead of the papers In the district in connection with this and other cases.