VOL. XLVI.-XO- 14,625.
PORTLAND, OREGON, WEDNESDAY, OCTOBER 23, 1907.
PRICE FIVE CENTS.
RUSH FOR MONEY
CLOSES BIG BANK
KnickerbockerTrustls
On Rocks.
PAYS TILL VAULTS ARE EMPTY
Big New York Financiers
Hurry to the Rescue.
CORTELYOU PROMISES AID
Wall Street's Woes Aggravated by
Failure of One of Biggest Trust
Companies The Prosperous
West Is Unperturbed.
SITUATION' rs OTHER CITIES.
BAN FRANCISCO Abundant capital
for legitimate purposes. Western
banks are creditors. No failures.
CHICAGO Banks never so sound, ow
ing to Inspection by Cpearing
Rouse since failure of Chicago
National.
LOS ANGELES All' banks soil but
stringency has restricted loans
and general loans stopped to ac
cumulate surplus. No Important
failures, though soma lines of
business overcrowded.
SALT LAKE Financial condition
never so good. Banks have large
reserves. Volume of business in
creased. Slight decline In mining
stocks.
HELENA Financial condition never
better. Bumper crops, record
prices for wool and sheep and
cattle are higher. State banks
have unprecedented deposits and
reserved,
SEATTLE Bank deposits Increased
from $90,000,000 to- 72. 000.000
since January 1. Banks lend large
sums In East. Only depressing
alement Is reaction from real es
tate speoulatlon.
TACOMA Banks show unusual solid
ity, with great Increase tn de
posits. Good crops at unheard of
prices. .
SPOKANE Volume of business 20 to
25 per cent larger than last year.
No tightening In money market.
Clearings and deposits larger than
ever before.
DENVER Bank clearings steadily
Increase and mining men not af
fected by copper slump.
NEW YORK. Oct. 22. Credit, the un-dcr-the-surface
foundation of all busi
ness, troubled for a time today and be
fore confidence had been . restored New
York's Becond largest financial institu
tion had emptied its cash vaults under
the pressure of the biggest run exper
ienced here In a generation: a stock ex
change firm had failed for $6,000,000; Wall
street's principal securities had settled
from $5 to IS a share; call money had
risen to 70 per cent; and local bankers,
united to stem the tide of distrust, had
been forced to appeal for relief to the
Secretary of the Treasury at Washing
ton. Assurances of No Effect.
All this was !n the face of reassuring
statements by the Acting Superintendent
of Banks that the suspected bank was
solvent, declarations by prominent bank
ers that there was no true basis for
alarm, and assurances from Washington
that Secretary Cortelyou would not hesi
tate to act promptly In any situation
where legitimate business was threat
ened. Now that the first scare Is over
and the worst of the future discounted.
It Is believed that the local banking af
fairs will soon readjust themselves.
Mr. Cortelyou reached New Tork from
Washington at 9:30 o'clock. He was met
at Jersey City by Hamilton Fish, Assist
ant United States Treasurer, and the
two were in earnest conversation during
the ferry trip to New Tork. Upon reach
ing this city, they went at once to the
Hotel Manhattan, where several bankers
were later presented to the Secretary.
Pays $8,000,000 in Three Hours.
The Knickerbocker Trust Company, the
storm center today, paid out cash to de
positors at the rate of $44,444 a minute for
three hours and then closed its doors.
The directors had, as they thought, fully
prepared for a run, and caused to be
announced In today's papers that J8,000,
000 In cash was on hand to meet all
eventualities. At 9:30 a few depositors
withdrew their accounts, and an hour
later hundreds were In line to take out
their deposits at the main office at
Thirty-fourth street and Fifth avenue,
and at the Harlem and Bronx and down
town branches.
The SS.000.000 lasted until 12:30. when
Vice-President J. T. Brown announced
that the bank had no more cash availa
ble, and payments were suspended. Mr.
Brown said that the bank would open to
morrow and payments be resumed at
10:30 o'clock. The Knickerbocker, it was
announced, had ample resources to meet
all demands, was perfectly solvent and
It was only a question of raising the
cash, when all depositors who wished to
withdraw could do so.
Bankers' Committee at Work.
J. P. Morgan and .his partners were
in conference at their Wall-street of
fices until after 6 o'clock. Mr. Morgan,
when asked as to the situation, said:
"We are doing everything we can, as
fast as we can, but nothing has yet
crystallized."
He would give no Intimation as to
the plans under way to alleviate the
situation.-
George W. Perkins, Mr. Morgan's
partner, met a number of bankers and
trust company officials at the Union
League Club tonight, when the finan
cial situation was canvassed in an In
formal way. There was a meeting of
the Trust Companies' Association after
banking hours today, at which a com
mittee consisting of George 3. Young,
of the Windsor Trust Company; Otto
Barnard, of the New York Trust Com
pany, and Clarence H. Kelly, of the
Title Guarantee & Trust Company, was
appointed to confer with the officials
of the Knickerbocker, with a "view to
extending such assistance to the com
pany as Investigation would warrant.
The official statement concerning the
meeting said:
"The bank presidents of New York
and Brooklyn were present and a com
mittee to report on a plan, of closer
co-operation among the trust compa
nies was named."
Trust Companies Refuse Help.
A. Foster Higglns, who last night
s
.
Otto Kelaey, Superintendent of
Insurance of Kevr York State,
Who la Under Investigation.
was chosen to the presidency of the
Knickerbocker when Charles T. Barney
resigned, was present at this meeting
and laid before the others a statement
of the Knickerbocker's affairs. 'He
talked for the Institution and then
withdrew, hurrying cway to a meeting
of the directors of the Knickerbocker.
Later he said that the Trust Companies
Association wished to Inspect the
Knickerbocker's securities, and that
after the committee had done so the
association would reconvene at a late
hour .up town. Mr. Higglns was not
optimistic When asked If the other
trust companies' presidents were reluc
tant to help out his bank, he replied:
"Reluctant is no name for It," he re
plied. "Reluctant is no name for it.
They seemed to feel that they ought
to hold on to all the money they had.
One of them said to me: '
" We might have helped you out, but
here you have closed your doors.'
" You mean that you don't want to
ride a dead horseT I said. 'But I wish
you to distinctly understand that the
Knickerbocker is not a. dead horse, and
what are you going to do about H7 "
Mr. Higglns would not say what was
answered.
Can Meet All Obligations.
j
The committee appointed by the
Trust Companies Association made a
cursory ' examination of the Knicker
bocker's ; books- tonight. This was
sufficient. Chairman Geoifge W. Young
said, to establish the solvency of the
(.Concluded on Page 3.)
CONTENTS TODAY'S PAPER
The Weather.
YESTERDAY'S Maximum temperature, 68
degrees; minimum, 48 degreea
TODAY'S Fair; northerly winds.
Foreign
Moors set trap for French troops; but are
surprised and routed. Page 4.
National.
Roosevelt makes speech at Nashville, de
claring he will not change policy on ac
count of Wall street troubles. Page 1.
- . ..... Domestic.
Montana stage driver fights highwayman.
Page 2.
Opening of Civic Federation's Conference
on trusts. Page 2. -
Naval Board finds Button committed sui
cide under false impression be had
killed man. Page 1. ,
Signs of possible peace In Illinois Central
tight. Page 3.
Small continues fight and may .split Teleg
raphers' Union. Page 8.
-Chicago -clubs make war on tipping. Page 8.
Hearst accused of criminal libel. ' Page 3.
Harrlman controls funds of Mutual Life.
Page 4.
Failure of Knickerbocker Trust Company
of New York causes fresh slump in
stocks. Page 1.
Paclflo Coast.
Ford Jury completed and Heney epens
case, Ruef holding out for immunity.
Page 4.
State Federation Women's Clubs In session
at 6alem. Page 6.
R. C. Crosby, Dundee farmer, identified by
banker at Spokane as alleged swindler.
Page 6.
ports.
Balloons scatter east, north and northwest,
United States apparently leading all.
. Page 1.
Beavers lose to Oakland, 18 to 8. Page T.
Commercial and Marine. -
Steady movement in Oregon hop market.
Page IS.
Wall Street Jarred by Knickerbocker Trust
failure. Page 13.
Wheat loses another 8 cents at Chicago.
Page 15.
German ship Slam clears with lumber for
Port Adelaide. Page 14.
Portland and Vicinity. .
Paclflo Northwest laughs at "rich man's"
panic Page 11.
Several corporations will resist assessment
of franchises. Page 14.
Few taxpayers visit Equalisation Board.
Page 8.
United Railways barred from local terminal
yarda Page 14.
Council committee reconsiders report on
garbage burner. Pace 10.
Detective force In row over Golden' s ar
rest. Page 10.
Land-frauds suits soon to be resumed.
Page T.
E
FROM HIS POLICY
Wall Street Can't Move
Roosevelt.
WILL PUNISH DISHONEST RICH
Better Pain of Operation Than
Ravage of Disease.
HONEST RICH QUITE SAFE
President Says Offenders Them
selves Are to Blame for Troubles,
' and Not He, Who Merely
Turned On the Light.
NASHVILLE, Tenn., Oct. 22. Never
before has Nashville so elaborately dec
orated herself as today, when welcom
ing: President Roosevelt Bunting,
flags, banners and pictures of the
President were on almost every house
In the uptown section 01 the city, which
was crowded with people from a radius
of 100 miles. The special train -entered
the Union Station amid 'the booming
of cannon, ringing of bells, shrieking
of whistles and the cheering of thou
sands. The street parade, led by the
Chief Executive, was a continuous ova
tion. The President's Speech
President Roosevelt in his. address
at the Auditorium said today:
There has been trouble In the stock mar
ket, in the "high financial world during the
last few months. The statement has fre
quently been made that the policies for
which I stand, legislative and executive, are
responsible for that trouble. Now. these poli
cies of mine can be summed up In one brief
sentence; they represent the effort to pun
ish successful dishonesty. I doubt If these
policies have had any material effect in
bringing about the present trouble, but If
they have, it will not alter In the slightest
degree my determination that for the re
maining 18 months of my term these poli
cies shall be persevered tn unswervingly.
If to arouse that type of civic manhood
In our nation it were necessary to suffer
any temporary commercial depression, I
should consider the cost but small.
Turns on the Light.
All we have done has been to unearth
the wrongdoing. It was not the fact that
it was unearthed that did the damage. All
I did was to turn on the light. I am re
sponsible for turning on the light, but I am
not responsible for what the light showed.
It is Impossible to cut out a cancer without
making the patient feel for a tevr days
rather sicker than he felt before. No ma
terial well-being can save this nation If it
loses the lift towards higher things.
I will permit neither the demagogue, upon
one side, nor the reactionary on the other,
to drive me away from the course or policy
WLLNOTSWERV
which I regard as most vital for the well
being of thiK nation. And the thing most im
portant to remember is that that policy has
two sides, it would indeed be an evil for
this nation if we ever permitted to grow
up a spirit which would discriminate against
the honest man who achieves business suc
cess. Honest Rich Man Entitled to Wealth, v
There Is nothing meaner than the hatred
of the man who prospers honestly simply
because he has prospered and J challenge
the spirit of every rood American when I
say that the honest railroad man. the honest
banker, and the honest business man who
makes a fortune because his exceptional
business ability enables him to render ex
ceptional service to the community, is en
titled to it
If ever there should be any temporary
gusts of popular feeling that demand what
is wrong, what Is unrighteous, the true ser
vant of the people is the man who disre
gards that temporary wish of the people to
do evil. (Great applause.)
No man will stand more strongly than I
will in the defense of property, so long as
It is honestly acquired and honestly used.
(Cheers.) I will stand against crimes of
brutal violence Just as I stand against
crimes of unscrupulous cunning.
Upholds Decalogue and Golden Rule.
There are certain gentlemen who say that
I have talked against men of wealth as such.
These gentlemen are blind If they see the
facts In that light. I will protect in every
6TATS BY HIS POLICIES.
My policies can be summed up in
one brief sentence: They represent the
effort to punish successful dishonesty.
I doubt if these policies have had
any material effect In bringing about
the present trouble, but, if they have,
It will not alter In the slightest degree
my determination that for the remain
ing 16 months of my term they shall
be persevered in unswervingly.
All I did was to turn on the light. I '
am responsible for turning on the
light, but I am not responsible for
what the light showed.
I will permit neither the dema
gogue on one side nor the reaction
ary on the other to drive me away
from the poftcy which I regard a
most vital tor the well-being of this
Nation.
I will protect the honest man of
wealth to the extent of my ability,
and in no way can I ultimately pro
tect the honest man of wealth so ef
fectively as by doing everything In
my power to bring to justice his dis
honest brother of wealth.
way in my power nonest property. I will
protect the honest, man of wealth to the ex
tent of my ability and In no way can I ul
timately protect the honest man of wealth
so effectively as by doing everything in my
power to bring to Justice his dishonest
brother of wealth. (Great applause.) Our
whole movement is simply and solely to
make the decalogue and the golden rule of
some practical moment in the business of
life of the community. (Great applause and
cheers.)
At , the Hermitage, the President
spoke briefly In eulogy of Andrew
Jackson. Shortly after he departed for
Chattanooga.
CROWD INTERRUPTS SPEECH
President Cannot Deliver Address
Because of Immense Throng.
CHATTANOOGA, Tenn., Oct. 22. Prob
ably 20,000 people were in danger -of- in
Jury tonight at the Central Station wheii
President Roosevelt's special train rolled
Into the shed at 6:10. It was a surging
mass of humanity that could not be con
trolled. The demonstration was so great
that it was impossible for the President
to speak. He made many attempts, but
finally gave up. The cheering was almost
Incessant, and in the wild rush to get
close to the President's car women were
carried off their feet and men had to
i . . , , i
(Concluded on Page 2.)
SHAKING HIM OUT.
AMEHIGAH' FIRST
TO TOUCH EARTH
Balloon United States
Has Landed.
TRAVELS 700 MILES IN AIR
German Balloon Pommern Still
Flies North.
AERONAUTS ALL SCATTER
Two liea dot's In Race Across Great
Lakes, Others Fly Eastward Over
, Indiana and Ohio and One
to the ' Northwest.
BT. LOUIS, Mo., Oct 22. The beginning-
of the end of the greatest balloon
ing race ever held in America, the sec
ond contest for the International aer
onautic cup, was signalled tonight by the
landing- of the American balloon United
States at a point 12 miles south of Ham
ilton, Ontario, near the shores of Lake
Ontario. The United States is believed
to have held the lead In the race at the
time of landing and in its 25 hours of
night from St. Louis had covered a dis
tance of approximately . 700 miles, meas
ured In an air line. .
The nearest rival to the United States
Is believed to toe the big chrome yellow
German cruising balloon Pommern, which
was last reported as whirling across Lake
Erie in the teeth of a 35-mile gale. The
Pommern passed over Cleveland during
the afternoon, and sent down a message
reporting "all well." It Is figured that
the Pommern was but A little distance
behind the United States during the after
noon and, if she is able to remain up after
crossing the lake, there Is a belief that
she may excel the excellent record of
the United States.
"With the exception of the United States
and Pommern, all of the other con
testants seem to be scattered tonight over
the state of Ohio, several of them near
the West Virginia border line. Dispatches
have come from Minnesota, from Wiscon
sin and from Northern Illinois, reporting
balloons m those localities, but they are
given slight consideration here by the ex
perts, who believe all of the cars must
have taken a northeasterly direction soon
after the start.
ST. LOUIS, Mo., Oct. 22. Scattered
through the State of Ohio, with one or
two trailing In the vicinity of the
Great Lakes and another last heard
from in Chatham, Ontario, all nine of
the big balloons participating In the
second International aeronautic cup
races were still In the alrtonight.
Throughout the afternoon reports of
balloons at various points In Ohio have
been coming In, 'while Detroit first sent
word of the contestant which after
ward passed over the Canadian border
and was last seen at Chatham.
The identity of only four of the bal
loons has been proven. McCoy and
Chandler first reported their presence
at Marlon, Ohio. The last message was
to the effect that the America would
descend on the borders of Lake Erie,
probably In the vicinity of Cleveland.
Pommern Passing Over Lakes.
The German balloon, Pommern, No.
1 In the race, passed over Cleveland
late this afternoon, and Pilot Erbslohe
dropped a note saying:
"Open water ahead. All well." The
Pommern had been reported earlier In
the day in the Interior of Ohio.
A note dropped during the morning
at New Augusta, Ind., near Indianap
olis, conveyed the Information that the
8k 1
Charles A. Peabody, President of
Mutual Life Insurance Com
pany, Who Lends Harrlmaa
Millions on Demand.
balloon passing' was the Lotus II, the
only English entrant In the, race.
The French balloon Isle do France,
dropped a message for the Associated
Press at Columbus, O.
United States Seems to Lad.
There has been . much speculation
here as to the identity of the balloon
which passed over Into Canada with
apparently a big- lead In the big race.
The balloon Is reported to have flown
two American flags, and this fact Is
accepted as proof that the balloon
is the United States, with Major Henry
B. Hersey, of the United States Weath
er Bureau, as pilot. The "Jnited States
was the winner of the International
race of 1906. The balloon . carried two
American flags, but all of the contes
tants were decorated with flags and
bunting, and there Is a chance that
the theory of the leader being the
United States may be upset. The Aero
Club officers are Inclined to believe,
however, that there can be no mistake
of the Identity of the leader, and are
freely predicting that Major Hersey
will be the winner of the contest. The
balloon reported at Detroit and later
at Chatham, evidently had followed the
course which Major Hersey forecasted
he would take.
All Beat Last Year's Record.
There seems no doubt that the record
made In the race from Paris last year,
402 miles, will be exceeded by prac
tically every balloon In the present
race. Nearly all of the balloons re
ported tn Ohio have covered more than
that distance, while those on the Great
Lakes are more than 100 miles ahead
of the record.
AH of the balloons have gone to the
east and northeast. One vagrant car
was reported at 7:45 o'clock tonight as
passing Waukegan, 111., Just north of
Chicago, on the edge of Lake Michigan.
The balloon America reported to
the Associated Press that it had been
in sight of three other balloons during
most of Its Journey. One of them un
doubtedly was the English Lotus IL
and another the Isle de France. The
race among the four Is being watched
with great interest.
POMMERN MAKES FOR LAKES
German Balloon Sighted on Way to
Lake Huron.
SPRINGFIELD, O., Oot. 22. A bal
loon which passed over this city at
noon, dropped a letter stating that It
was the "Pommern,' and said also that
the aeronauts had used 30 bags of
ballast sand and had 2000 pounds left.
DETROIT, Oct, 22. A dispatch from
Arrian, 60 miles southwest of this city,
says a balloon passed over that city
about 2:40 P. M. headed northeast.
CLEVELAND. O., Oct. 22. The Ger
man balloon' Pommern passed over
Cleveland this afternoon, being the
first of the balloons from St. Louis to
be seen here. A note dropped from the
Pommern, timed 3:10 P. M., reads:
":10 P. M. Open water ahead Lake
Erie. Wind north-northwest, a quarter
north. All well.
"OSCAR ERBSLOHE."
The note from the balloon came down
on Euclid avenue in a crowd of several
hundred persons, who had been watch
ing the balloon in its flight over the
city.
The note dropped from the Pommern
was securely wrapped with a small bag
of sand. The altitude attained by the
balloon at the time it was dropped was
9297 feet. The wind here tonight is
from the southest, and, according to
the local Weather Bureau, Its velocity
is 42 miles an hour. This should bring
some of the balloons besides the Pom
mern in the vicinity of Cleveland.
AMERICA CROSSES INDIANA
McCoy and Chandler Drop Messages
Announcing Course.
CHICAGO, Oot. 22. The following mes
sage was received this afternoon:
"Marion, Ind., Oct. 22. To the Asso-
( Concluded on Page 4.)
TRAGIC DEATH OF
N.
Suicide in Belief He Is
a Murderer.
ACTS ON MOMENT'S IMPULSE
Evidence Before Naval Board
Brings Out Story.
MANY SIGNS OF INSANITY
Quarrel Ends in Threat to Shoot Up
Camp Knocks Officer Senseless
and Believing Him Dead, SuU
ton Then Kills Himself.
OREGONIAN NEWS BUREAU, Wash
ington, Oct. 22, The report of the
Naval Board of Inquiry that examined
Into the death of Lieutenant J-mes N.
Sutton, of the Marine Corps, at Annapo
lis, leaves no doubt whatever that the
young officer deliberately took his own
life, but the report makes It equally
plain that at the time of the tragedy
he was not mentally responsible for his
acts. The report of the findings of
this Board was shown to Mrs. Ross
Parker, sister of the de. i lieutenant,
when she went to Annapolis to take
charge of his body, and in view of its
positive terms, no further inquiry is
likely.
After quoting the testimony of all
persons having personal knowledge of
the shooting, the Board finds as fol
lows: The Board from a view of the body and
thorough Investigation and from the evidence
before it, which It believes is all the evi
dence procurable and Is perfectly reliable. Is
unanimously convinced that Second Lieutenant
James N. Sutton committed suicide by shoot
ing himself In th head with a revolver about
1:20 A. M. in the vicinity of the of (leers'
quarters. Marine Barracks, Annapolis, Octo
ber 18. The Board is also convinced that no
other person than the deceased was In any
way responsible for his death, that no other
person concerned Id this Investigation was
armed and that there was not sufficient rea
son for the deceased to carry arms Immediate
ly before his death. The Board has care
fully looked Into the case and In Ita opinion
the death of Lieutenant Sutton was not oc
casioned by any act of duty by which ha was
engaged when It occurred.
Quarrel Over An to Ride.
Sutton's felloV officers, with whom
he quarreled, and those who endeav
ored to prevent trouble, were all sum
moned before the Board, and on all th
essential facts their testimony coin
cides.' The testimony shows that, fol
lowing a dance in Annapolis, Sutton
hired a large automobile and Invited
Lieutenants Osterman, Utley and Adami
to ride to oamp with him. They ac
cepted, but on the way Sutton grew
quarrelsome, because his companions'
did not want to take the automobile
through the camp pnd arouse the sleep
ing officers, and. sought to engage Mr.
Osterman In a fight. The automobile
was stopped near camp and the offi
cers alighted.
Sutton then said he would not en
gage in a fist fight with Mr. Osterman,
but in anger started for his tent,
threatening as he went to "shoot all
three of you before morning." To avoid
trouble, one of the officers went to
notify the officer of the guard, whila
the others proceeded toward their tents.
The officer of the guard rushed to
Sutton's tent and found him standing
with a revolver In each hand. The
officer told Sutton he was under ar
rest, but Sutton disregarded the orders
and rushed out of the tent and down
the company street, where he overtook
Lieutenants Adams. Roelker, Utley and
Sergeant Dehart.
Shot Two Other Officers.
He shouted to them to halt and, when
they paid no heed, fired directly at them.
Mr. Adams rushed in and grappled with
Sutton, having the middle finger of his
left hand " shot off as he did. so. The
others closed In and Sutton was thrown
to the ground, but, as he fell, fired
another shot which struck Roelker in
the chest, knocking him senseless.
Miraculously, the last cartridge was de
fective, and the bullet, penetrating Roelk
er'a clothing, dropped Inside his under
shirt without breaking the skin. The Im
pact, however, was stunning. When Sut
ton was thrown to the ground, he fell
race down, and Mr. Utley and Mr. De
hart sat upon him to prevent further
trouble, meantime taking away the re
volver, which he held in his left hand,
his right arm curled under his body.
As the officer of the day and Lieutenant
Osterman arrived. Lieutenant Adams,
who had been bandaging his wounded
hand, espied the prostrate body of Roel
ker and exclaimed:
"IMy God, Roelker Is killed."
. Suicide at Thought of Murder.
At that Sutton, who had lain apparently
unconscious, suddenly Jerked his right
arm from under him, aimed the revolver
at his own head and fired before any one
could prevent It.
" It was testified by several witnesses
that Sutton had been morose and morbid
for some days prior to the shooting, that
he had frequently talked of his Intention
of "shooting up the camp," and on one
occasion had discharged his revolver
wildly without apparent provocation, be
ing disarmed by Major Fuller before any
damage was done. The evidence tended
to show that earlier in the evening Sutton
had been on friendly terms with his fel-
ME
SUTTON
CConcluded on Page 8.)