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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Oct. 17, 1907)
VOL,. XXVI yO. 14,620. PORTLAND, OKEGOi, THURSDAY, OCTOBER 17, 1907. PRICE FIVE CENTS. AUGUSTUS HEIfiZE CAUGHT IN VORTEX Montana Man Goes Against Wall Street. BANKING FIRM IS INVOLVED Holders of United Copper Call in Loans. TRIES TO RAISE FUNDS Millions of Money Figure In Big Manipulation Made by Man Who Undertook to Operate Against Whole Financial World. ' NEW YORK, Oct. 16. Disaster has overwhelmed the speculation in the United Copper Company and F. Augustus Helnze la making the fight of his life, not only against the Amalgamated Inter ests but against the world. Two days ago Helnze and his followers forced the price of United higher than Amalgamated and were highly elated over their success and their victory over the Standard Oil crowd. United Copper broke this morning from last night's close of S9 to 10, and the curb went crazy. Amalgamated, of course, has suffered as well, but the feeling of the street Is that Helnze Is feeling the gaff more keenly than his rivals. He went to Chicago last week to borrow halt a million dollars and nobody seems to know whether his trip was successful or not. Today Gross & Kleerberg, brokers of the Montana mining man, were forced to the wall, and the firm of Otto Helnze & Co., bankers and brokers, was unable to fulfill demands made on It by fellow members of the New York Stock Ex Change. Banks Call In Loans. One of the .stories of the street was that certain banks which are hoWIng considerable United Copper as security for - loans which they have made to Helnze, told the young plunger that unless prices were restored to their normal Jevel, loans would be called In. Today all his work was undone. United Copper preferred broke this morning from . 75 to 37, just one half, while the bottom also dropped out of the common stock. The street is waiting to see what will happen next. Helnze decided tonight to resign as president of the banking firm of Otto Heinze & Co., and he will be saved from going to the wall. Steamship Company Caught. One of the flrBt properties to feel the blow was Consolidated Steamship Com pany. This ' Is the property organized by Charles W. Morse, who is associated with F. Augustus Helnze in ' the Mer cantile National Bank. Bonds of the steamship company fell from 26 to 18. Davis-Daly and other curb mining shares wore violently agitated. The blame for the gtgantio collapse is laid at the door of Otto Heinze, brother afffthe Montana magnate. The mistaken Judgment bn the part of this man,' who had' fought Standard OH to a finish, staved off re peated disaster In the money market, in courts, in politics and in the copper fields of Montana, brought about the complete rout of his party. In pushing United . Coppier above Amalgamated, Otto Helnze & Co. ordered enormous purchases of stock.. The mistake was In not arranging proper banking facilities to pay for the incoming rush of stock. Many Conferences Held. It was a sleepless night for many of the big financiers. Conferences which be gan before the first failure continued until midnight. Heads of trust com panies and representatives of all the bankB attended. After the main confer ence it was announced that the liabilities of Otto Heinze & Co.' to . members of the Stock Exchange amounted to $1,700,000. It w8" further stated that $750, 000, when raised by members of the syn dicate, would prevent any trouble for the Heinze brokerage firm. Mr. Gross, of Gross & Kleeberg, said that his firm's failure had been caused by the "laying down of the Heinzes." HEIXZE BROKERS SUSPEND Collapse of United Copper Pulls Down Brokerage Firm. NEW YORK. Oct. 16. Following the collapse In United Copper today the Stock Exchange firm of Cross & Klee berg, known in the street as the per sonal brokers for the Helnze interests, suspended. No statement of the condi tion of the firm's affairs had been made tonight, and the, only authorized ex planation of the failure was the re mark of a representative of the house that its troubles were due to the re pudiation of orders by customers. The suspension was announced on the floor of the exchange JuBt- before the close of trading and after violent declines In the metals and affiliated stocks had been checked by the ap pearance of some buying orders. Cross & Kleeberg have been credited with managing a pool formed for the purpose of supporting the Helnze group. They bought heavily of copper lrt the face of the sensational break, yesterday and continued their purchases in the falling market today. "We bought a lot of copper stocks for the Helnze people today," said a repre sentative, "and when we came to de liver it they refused to accept it. As a consequence the firm was forced to suspend. The assignment was general and for the benefit of creditors." The liabilities of the firm could not be ascertained tonight. Tracy Buckingham, transfer agent of the United Copper Company, announced tonight that the order issued Tuesday stopping the transfer of a block of the certificates of the common stock, total ling some 17,000 shares, had been revoked by the company tonight. Mr. Bucking ham states a telegram to that effect had I' i . ,W r.A r f -cost' r F. Augustas Helnze Beaten and Al most Ruined in Fight With Stand ard Oil Men. been sent to the Stock Exchange of Bos ton. BEARS KEEP BUT OF WAY PRESIDENT'S DOGS CHASE BRUIX INTO IiAKE. Animal Seemed to Scent Danger and Went Directly Opposite to Roosevelt's Stand. BTAMBOUL, Xja., Oct. 16. If President Roosevelt had been stationed a few hun dred feet further south than he was yes terday, he would possibly have procured the bear he came to the Mississippi cane brakes to slay. .. That a fine specimen was discovered by 'Mr. Collier's dogs within a short dis tance of the President and within less than a mile of Bear LxUte was the news brought into Stamboul by Brutus Jack son, one of the members of the hunting party, and he says that the animal was enabled to make good his escape, going in a direction opposite to the President's post. Four dogs, unattended by any of the hunters who were trailing the bear, un avalllngly all day, struck a hot trail about 4 o'clock and within a trice were almost on the animal. He was aroused whAe feeding and with a snortt darted off. The campers say that thick as was the Jungle, bruin made rapid headway through it for the short distance he had to 'run W reach the lake. Arriving at the water's edge he unhesitatingly plunged in and was well away from shore when the dogs arrived on the scene. Some of the hunters came up a short time afterwards, but too late to get a shot. By this time the day was too far advanced to permit anyone to follow. RYAN TO BE FORCED OUT SEW YORK TRACTION MAGNATE RETIRES. Scheme for Rehabltatlon Eliminates Old Members of Syndicate Fathered by W. C. Whitney. NEW YORK, Oct. 19. In well informed Wall - street circles the belief is growing that, when plans now forming for the reorganization of interborough-Metropolitan affairs shall have become crystallized. It will be found rehabilitation is to be effected with the practical elimination of Thomas F. Ryan as the controlling factor In the Manhattan street railway situation. With the probable retirement of Mr. Ryan will also go Peter A. B. Wldener, Thomas Dolnn and all the remnants of the original Metropolitan Traction syndicate, which, under the Inspiration and guidance of the late William C. Whitney, began the consolidation and the unification of New York's surface railway systems. According to Wall-street reports, no difficulty Is expected so far as Mr. Ryan Is concerned In carrying out this programme for the elimination of Mr. Ryan as a factor In Interborough Metropolitan. Mr. Ryan and Mr. Widener both unloaded considerable quantities of their Interborough-Metropolitan stock holdings before the be ginning of the present slump In those and other securities. BINGHAM UNDER ARREST New York's Police Commissioner Is In Trouble. NEW YORK. Oct. 16. Police Com mls8loner Bingham was placed under arrest today, following the service upon him of papers in a civil suit In Which damages of $25,000 are asked. The complainant is ex-Police Com missioner James O. Reynolds, who yes terday was ejected from police head quarters where he had called to lodge a formal protest against his forced re tirement from the department The Qommissipner furnished, .bail fc'. N HARRIMAN TALKS T MARRIAGE Marry Early, Have Chil dren, He Says. REACTION, NOT PANIC IS DUE Discusses Success, While Lane Talks of Rebates. PROSECUTION IS POSSIBLE Commissioner Takes Harrlman's De nial as Confession That He Knew Subordinates' Action, Which May- Prove Troublesome. CHICAGO, Oct. 16. (Special.) "Marry early and have children, as many chil dren as you can take care of. Pick out a good woman, a co-operative woman, one who will Interest herself in what ever work you have to do." v This is Edward H. Harrlman's advice to young men, and he found time today, aside from the strenuous battle with Stuyvesant FlBh for control of the Illi nois Central, to discuss matrimony. He positively declined to discuss President Roosevelt or his policies. He Insisted there was no danger of panic and he said the flurries in Wall street meant nothing to the rest of the country. "Matrimony," said Mr. Harriman, "is not essentially a business proposition. In fact it should never be regarded as such, but, nevertheless, marriage often plays a highly important part in the race for what is commonly called suc cess. "I shall tell you what success really b. It Is the accomplishment of any task as well or better than1 the same task by another. To the young man who would be a success I would give these hints: Always be courteous, al ways be friendly, do the best you can under all .circumstances, -marry early and have as many children as you can care for. "The country has been growing and expanding too fast," continued Mr. Har riman, "and this fact is ' realized on every side and, therefore, the country is ready for a reactionary period, which is undoubtedly' setting in. Owing to this view of the case, my outlook for the future is hopeful, because I see clearly a future In which we will move more slowly, but will be upon the sounder basis." DENIAL- MAY BE TROUBLESOME Lane Says Harriman Admits Knowl edge of Officials' Acts. WASHINGTON. Oct. 16. "I have been charitable enough to assume that Mr. E. H. Harriman and other high officials of the Southern Pacific were not aware that subordinates had been granting re bates," said Franklin K. Lane, Inter state Commerce Commissioner, when his attention was called today to an inter view with Mr. Harriman, sent out from Chicago, denying that the Southern Pa cific still is indulging in the old habit. "The records in the case have not been completed," continued Mr. Lane, who conducted the hearings at which evidence was produced, showing that the Southern Pacific has since the San Francisco earthquake granted numerous state and interstate rebates. "As soon as it Is, I will have a copy sent Mr. Harriman for his information. He will probably 'dis cover that some things have been going on in the Southern Pacific Company con cerning which he has had no advices. "I notice Mr. Harriman used positive language in his denial. He is quoted as conveying the idea that he Is cognizant of all the affairs of the company. If it is true that he has been aware of what his subordinates were doing, his denial that rebates have been granted cannot stand. Furthermore, If Mr. Harriman Is willing to assume full responsibility by admitting that he does know all that has been going on, the admission may prove troublesome when the records in the case reach him and he reads the evidence. 'lAs I have stated, I have thought Mr. Harriman and some of his associates, higher officials of the Southern Pacific, were not aware that rebates were grant ed. Mr. Harrlman's denial may there fore be classed as the utterance of a man not familiar with the facts." STRIVING TO LIVE IP TO LAW Harriman Denies There Is Willful Violation by His Roads. CHICAGO, Oct. 16. E. H. Harriman today, after reading the statement made by Interstate Commerce Commissioner Lane, to . the effect that the Western railroads are still paying rebates, said: "That statement is an exceedingly un fair one, and I am surprised that Mr. Lane should make it. I know that in all the railroad systems, and In all the rail roads in which I am Interested, there is no willful paying of rebates, nor la there any willful violation of the law. "Mr. Lane knows better than any one else that the present laws, both State and National, governing the railroads, are in chaotic condition, both as to in terpretation and as to application. It is exceedingly difficult for a railway man ager at this time to keep entirely within the law, no matter how ardently he may desire to do so. We are all striving, however, to live up to both the letter and the spirit of the Hepburn amend ment, and if there are violations under it, they have been purely technical, due to the lack of comprehensiveness of the law." BOOM HENEY FOR SENATOR ANTI-MACHINB REPUBLICANS CHOOSE PROSECUTOR. Though Democrat, He Is Considered -'" Best Available Republican to Succeed Perkins. SAN FRANCISCO, Cal., Oct. H. (Spe cial.) a story which was sprung today, and which Francis J. Heney refuses to discuss, has it that the well known pros ecutor Is being groomed for the United States Senate. The story has it that the Lincoln Roosevelt League, composed of the anti machine Republicans In this state, has looked over the field and has come to the conclusion that although a Demo crat Mr. Heney had better represent the principles for which the league stands than any available Republican. California will elect a Senator to suc ceed George C. Perkins in 1909. The can didates already in the field against Mr. Perkins are Secretary of the Navy Met calf, ex-Governor Pardee and State Sen ator Belshaw. THE PREDICAMENT OF THE MODERN ATLAS AMERICA POINTS FOB PEACE Permanent Court Adop ted at The Hague. OBAGQ DOCTRINE IS CARRIED Small Nations Stipulate for National Equality., ARBITRATION ALSO WINS Conference Votes to Make It Obllg' atory and Condemns Collection of Money Claims by Force Till Arbitration Fails. THE HAGUE, Oct. 18. The ninth plenary sitting of the Peace Confer ence held today voted upon the ques tion of establishment of a permanent court. There were 38 votes in favor of the project. Belgium, Denmark, Greece, Roumanla, Switzerland and Uruguay did not vote and Mexico, Bra zil, Greece, Colombia, Salvador, Persia, Guatemala, Haytl, Venezuela, San Do mingo, Paraguay, Panama, Ecuador, China, Bolivia and Nicaragua voted fa voring a permanent court, but with the reserve that such court and the negotiations In that direction should be conducted on the basic principle of absolute Judicial equality. The report of Baron Guillaume (Bel gium) on the, declaration of Count TourleiU (Italy) regarding obligatory arbitration was adopted unanimously with several reserves, including the United States and Japan, David J. Hill (America) saying that the United States would not depart from her tra ditional policy of non-interference In the affairs of other states. Drago Doctrine Adopted. The -next subject taken up was the proposal of General Horace Porter on the subject of collecton of contractual debts. The substance of the proposition Is that In order to avoid between na tions armed conflicts "of purely pe cuniary origin" caused by contractual debts claimed by the subjects of one country from the government of an other and also to guarantee "that all contractual debts of this nature which are not settled in a friendly manner through diplomacy shall be submitted to arbitration," it is understood that coercive measures shall ynot be taken until the creditor country offers arbi tration and the debtor country refuses It or leaves the offer unanswered or until after the decision of the arbitra tors Is not fulfilled by the debtor. The proposal was approved by 39 votes with five absent Belgium, Swe den, Roumanla, Switzerland and Vene zuela and 12 other American govern ments making reservations. The final session of the conference will take place Saturday. Thirteen Agreements Signed, Some of the superstitious delegates to the conference are of the opinion that it would be an 111 omen to hold the. last session Friday, principally In view of the fact that the conference will have signed an even 13 conventions. These conventions are as follows: First The peaceful regulation of In ternational conflicts. Second Providing for an International prize court. ' 1" - 'v?ev -"i t"""'wvyti)ii.ij)Li.i.jmWs " x r v 'i i f ! x w, "' ! . 3 ? U-f Vr - r Ft 7 'O 'i ; t v a s - , - ,"2 , v . David J. Hill. Minister to Holland, Who Spoke for the United States at Tbe Hague Conference Yester day. Third Regulating the rights and dup ties of neutrals on land. Fourth Regulating the rights and du ties of neutrals on sea Fifth Covering the laying of subma rine mines. Sixth Regulating the bombardment of towns from sea. Seventh In the matter of the collec tion of contractual debts. Eighth The transformation of mer chantmen Into warships. Ninth Regulating the treatment of captured criminals. Tenth Covering the inviolability of fishing rights. Eleventh The inviolability of the pos tal service. Twelfth The application of the Gen. eva Conference and the Red Cross to sea warfare. Thirteenth The laws and customs reg ulating land warfare. Seven Other Declarations. In addition the conference has conclud ed the following resolutions and declara. tlons: First That balloons shall not be used for throwing explosives. Second A recommendation In favor of obligatory arbitration. Third A recommendation regarding the establishment of a court of arbitration. Fourth A recommendation concerning the limitation of armaments. Fifth The convocation of the third conference. Sixth The prohibition of unnecessarily cruel bullets in warfare. Seventh The co-operation of all coun tries in the building of the Palace of Peace. Want Small States Excluded. It Is asserted also that before the con vocation of a third conference, Germany, Austria-Hungary and Great Britain will Insist, in view of the experience gained at this conference, that small states be excluded, but there Is actually nothing to Justify such a statement. Indeed, a ma jority of tbe delegates are of the opinion that It will be Impossible to return again to an arbitrary division of the countries, as at the first conference. HENEY WILL SUE ROGERS CLIMAX OF BITTER WAR WITH TIREY FORD'S LAWYER. Rogers Hedges on Charge of Using Undue Influence on Jury and Heney Calls Him. SAN FRANCISCO. Oct 16. (Spe cial.) Francis J. Heney announced to day that he Intended to bring suit for criminal libel against Earl Rogers, chief counsel for Tlrey U. Ford, the in dicted attorney of the United Kail roads. Mr. Heney will base his suit on. an article published over the signature of Mr. Rogers, in which the statement was made that members of the prosecu tion had used undue Influence upon C. W. Strange, a juror In the Ford case, who voted for conviction. Mr. Heney came out In this morn ing's papers with an open letter ask ing Mr. Rogers either to supply the proof of his assertions or to retract. This afternoon Mr. Heney summoned Mr. Rogers before the grand Jury, stepped out of the room and asked Mr. Rogere to lay his evidence before the jury. Mr. Rogers hedged and final ly said that he believed the grand Jury an unfair body and would not take advantage of Mr. Heney's offer. It was then that Mr. Heney made it known that he would sue. Mr. Heney and Mr. Rogers have been engaged In a bitter personal war and more than once It has appeared as though nothing short of a hand-to-hand encounter could settle their differences. The animosity has grown during the last week and reached its climax to day. Mr. Strange himself was called before the grand jury and said that he had not been communicated with by the prosecution, but, on the other hand, he said that he had learned that efforts had been made on behalf of the defense to get into communication with him. E OPENED TUFT Speech Fails to Satisfy Residents. OSMENA CHOSEN PRESIDENT Members Swear Allegiance to America. SMITH GIVES GRAND BALL Secretary Tells People Their Own Actions Will Decide Future and That Misbehavior Means Aboli tion of Home Government. MANILA. Oct. 16. Secretary Taft formally opened the Philippine Assem bly in the National Theater at 11:15 this morning, in the presence of a large crowd of people. At. the close of his address Mr. Taft formally called the Assembly to order. A short prayer was read by the only native Catholic bishop In the Islands. The Assembly then took a recess until 5 o'clock this afternoon. Upon reassembling at' that hour the first business was the selection of a president, and Sergio Osmena, Nation alist, who formerly was Governor of the Island of Cebu, was chosen. Senor Osmena is a young man and had no part in the revolution. He la hM In high esteem by the Government and his own people. He was nominated by Manuel Quesen and seconded In an elo quent speech by Don Mador Gomes. Members Sworn In. All the Assemblymen, including Senor Gomes, whose election is to be contested, were then formally sworn in. The oath Included acknowledgment of sovereignty and allegiance to the American Government. The afternoon session lasted for three hours. The only business transacted was selection of a secretary. The delegates showed they had no understanding of parlia mentary law and procedure. The principal feature of the session was an address by Senor Gomez, who declared -against bringing politics Into legislative business and asked the dele gates to show their patriotism by for saking party affiliations and legislat ing for the benefit of the Filipino peo ple. Guests of Governor Smith. The new Assemblymen and the Pro vincial Governors were the guests of Governor-General Smith at a grand ball tonight SecretaryTaft failed to satis fy some of the American residents of Manila regarding the policy of the American Government. The general Impression is that his speech was placatlve. He 'intimated that misbe havior would result In the abolishment of the Assembly, but It Is declared that this contingency Is not expected. As for the Filipinos, they expressed no opinion of Mr. Taft's speech one way or the other. CONTENTS TODAY'S PAPER The Weather. TBPTERDAT'B Maximum temperature. 60 de-rw; minimum. 60 degrees. TODAY'S Fair; northeasterly winds. Foreign. Hague Conference adopts three moat Im portant American proportions. Pa ire i. Crown Prince of Japan visits Cores. Pa (re a. National. Secretary Taft opens first Philippine As sembly. Page 1. Standard Oil prepares elaborate defense against Government charges. Page i Government to start steamer Una front Panama along Pacific Coast. Page 3. Politic. Heney groomed for Republloan candidate) for Senator. Page 1. Domestic California professor- forbids publication of lectures, rags 2. Commissioner Altchlson tells what Railroaol Convention did. Page 4. Miss Henrloi decWea to marry Army sur geon on eve or sailing for home. Pajra a. Death list in Fontanet explosion fixed at 8& page z. Belnze almost ruined In battle with Stand ard on wall street. Page 1. Harriman advises men to marry and have cnnciren. Pago l. Lane saya Harrimvi assumes responsibility lor reoaung. page jl. Fight for Illinois Central deferred till today. page o. Roosevelt almost shoots a bear. Pago t. Sports. Colin wins twelfth consecutive raoe and is z-year-oia cnampion. Page 7. Beavers dofeat Seals badly In ninth inning rally, rage f. Heney will sue Earl Rogers for slander la gran controversy, page 1. Columbia University and Hill Military jfceauemy piay lie xooiDau game. Page T. Pr-clflo Coast. Monkey throws baby from carriage and bites savagely. Page 6. Threats made against detectives working on Albany liquor cases. Pag 6 Baptlsts in session at Salem report full treasury. Page 6. Commercial and Marine. Facts about the world's fur trade.' Page 15. Eastern and foreign wheat markets lower. Page 15. Quick changes In New Tork stock market. Page 16. British steamship Indian Monarch clears with cargo of wheat valued at $210,000. Portland sad Vicinity. Police scandal aired before City Executive Board; Captain Bruin Is upheld. Page 5. Coon gang members offer their defense. Page 5. Fund for Rose Festival Is one-fourth sub scribed. Page 9. Greaham Fair, opened with large attend ance. Page 11. Oregon horigrowers to form a combine. Page 14. ISLAND MBLY