VOL,. XL.VI. XO. 14,039. rORTLAXD, OREGON, FRIDAY, XOVE3IBER 8, 1907. PRICE FIVE CEXTS. TUi LIGHT OH PAPER COMBINE Roosevelt Will Order Inquiry Made. FAVORS REPEAL OF TARIFF Publishers Tell of Extortionate Prices Asked. COURT-DECISIONS IGNORED After Pretended Dissolution, Trust Reunites and Enormously Raises Prices Sells Much Cheaper to Foreigners Than Americans. WASHINGTON. Nov. 7. President Roosevelt today indicated to members of the committee on paper of the American Newspaper publishers' Asso ciation, that he will recommend to Congress the abolition of the tariff on press paper; also that he will make a recommendation to the Department of Justice that it take Immediate steps to ascertain whether the anti-trust laws are being: disobeyed by the manufac turers of paper. The President's promise was ob tained after he had listened to the com mittee and to a petition from the Na tional organizations of printers, stereo typers, pressmen and etchers, set ting forth the evidence of a com bination of paper manufacturers for the purpose of controlling the output and Increasing the price and otherwise making hlndersome regulations gov srnlng the supply and delivery of pa per. The call upon the President was made In pursuance of resolutions by the American Newspaper Publishers' Association, Instructing the committee: What the Publishers Ask. Klrt That the authority of the existing statutes for repression ot trade combinations may be Invoked. Kerond That the defiance of recent Judi cial a.-imn prohibiting- participation In such combinations by certain Western mills may be punished. Third That the President may be put In possession of information which shall equlpp him to advise Congress of abuses of tariff favors by paper-makers. The resolutions also declared that the duty on printing paper should be Im mediately repealed. The committee which called on the President by appointment today In cluded John.Norrls. .of .the New. .York . Times; Medlll McCormick, of the Chi cago Tribune; George Thompson, of the Bt. Paul Dispatch; D. Smith, of the Indianapolis News; Walter Page, of Worlds Work; Dr. Albert Shaw, of the Revlewof Reviews; E. J. Rldgeway and presidents of the National organiza tions of allied' printing trades. The history and facts, were presented by Mr. McCormick. An , investigation of the so-called paper trust has been In progress for some time by the Depart ment of Justice, and the President will call for tho facts ascertained, to. the present time. Conspiracy to Raise Prices. The appreciation ot the association was expressed to the President at the action taken by the Federal Government last year in ordering the dissolution of the General Paper Company. His attention was then called to what was termed a "conspiracy" by which It' was alleged that the manufacturers of news print papers have arranged for an advance of J12 per ton upon the supply of that article for the current year and lor an addi tional advance next year averaging 110 per ton. This, It was explained, means a burden Imposed on , the , printing . im dustry of the country ot .10,000,000 for the present and 19,000,000 for the coming year. The excuse for these advances on the part of the paper-makers Is that the coBt' of wood and labor has Increased. This excuse was met In the argument to the President by the statement that the pub lished report of the largest- manufacturer of news print paper gives the increased cost of material and manufacture, Includ ing the expense of administration and sales, as about 64 cents per ton. First Got Tariff Raised. The President was told that the present plan of Increasing the price of paper had its Inception 12 years ago In a proposition to unite the paper mills Into one pool or corporation. The first step in The pro gramme ws, It was stated, accomplished when the promoters Induced Congress to tlx a tariff duty of $t a ton for new print paper. It is this tariff, It is said, that the President has promised to urge Congress to repeal. The next step, which has encountered many delays, the 'Presi dent was told, has Just been consum mated by the combination to exhaust the surplus stock of paper, to cause a paper famine and to raise prices. Working Around the Law. The President was further Informed that after dlsbandment cy order of court of the General Paper Company, various meeting of Eastern and Western manu facturers have been held to stimulate prices and to limit the contract period. A conference of Eastern manufacturers was held In New York during the first week of September when the advance in price was decided upon. Since that time manufacturers who had previously soil cited the business of various newspapers had withdrawn all quotations. Publi shers who apply for quotations realize that in some intangible way their supply has been pre-determlned and the price they are to pay also arranged for them. In each case, the statement says, the publisher receives bids, but the paper Is held at a prohibitory price. He also finds that he has no remedy against the supply of Inferior paper. Publishers who make inquiry of one' mill find that the others have been advised of that Inquiry. New selling agencies representing an aggregation of previously independent mills have merged the output of those mills. The source of supply of numerous news papers has been arbitrarily diverted from one mill to another without the consent of the publisher. Jobbers who apply to selling agents or to mills for quotations are forced to disclose the name of the customer and the purpose for which the paper Is to be used. When this disclosure Is made. Jobbers find that satisfactory quotations can be obtained from but one In the country. Mlllmen and paper salesmen have ad mitted that an agreed scale had been adopted. Fronts Are Exorbitant! It was reported .that Canadian mills can and do pay the J6 per ton duty and still find It profitable to sell In the United States. At the same time the American mills are selling abroad In competition with Canada, Great Britain, Germany and Norway. It was stated to the President that papermakers op erating falrly-equlpped mills have made large profits during the past ten years at prices averaging less than $40 per ton,' and that a selling prico of between $55 and $60 per ton, as now proposed, would mean a daily tribute of $45,000 paid by the paper-consumers to the combination. Evidence is ob tainable In Government reports. It was alleged, that paper mills In the United States and Canada are making paper at a cost of less than $28 per ton. - Much mystification had been attempt ed. It was asserted, to show that the cost of labor had greatly increased, but this was refuted by the statement that the entire cost of labor in the manu facture of a ton of-paper amounted to less than $2.40. Not one-twentieth of the advance In news print paper, it was stated, would go to labor. Methods Xot Progressive. The lack of progressive methods of manufacture by the International Pa per Company, which furnishes the bulk of the paper and fixes the price In the Eastern market, was pointed out. The export of 60,000 tons of print paper during the past season and the claim of the manufacturer that the domestic stock la practically exhausted, coupled with the shutting down of the mills on various pretexts, leads the publishers to the belief that an attempt Is being made to create a paper' famine. Many newspaper proprietors, it Is alleged, are unable to obtain any quotations for pa per for next year, and do not know where to obtain a supply. The President was told that in all the history of crimes charged against combinations and trusts, such a situa tion is unprecedented. Both the policy of the paper manufacturers to acquire large tracts of timber land, for which speculation. It is charged, the consum er of paper.- is obliged to pay, and the over-capltallzation of . the compa nies were objects of criticism In the presentation made to the President.; Evidence Is Ready. The committee on leaving the White House seemed highly gratified by the assurances from the President. Evi dence, it was said, for the action of the Department of Justice is being supplied, and it is believed that the methods of tho paper combine may soon be tested in the courts. ONLY SEVENTY SURVIVE Ivoss of Life by Karatagh Earth' quake Totals 3400. ST. PETERSBURG, Nov. f. A dispatch received today from Samark and by the official .telegraph agencies says that a special representative of a local news paper, who was sent to Karatagh In the Hlssar district of Bokhara, which was destroyed by a landslide following the earthquake of October 21, reports that 3400 persons perished and only 70 escaped. Petition Against Big Firm.' PROVIDENCE, R. I., Nov. 7. A peti tion In bankruptcy against the O'Gorman Company, proprietors of one of the largest department stores in the city, was filed in the United States Circuit Court here today by the Boston Dry Goods Company, Farley, Harvey & Co., and Jacob Dreyfus & Sons, all of Bos ton, and all representing themselves to be creditors of the O'Gorman Company. t : . ,m m i CIT1ZKN AND CIVILIAN, OWNED PAIR OF WHOLE OF EUROPE HUGGING ITS GOLD Discount Rates Reach Record Figures. BUT AMERICA MUST BE PAID Wheat and Cotton Exports Call for Mo!-e Gold. SCRIP CURRENCY UNTAXED Question Decided hy Olney in 1803. Conservatives Sit on Manipu lators to Prevent Specu lative Rise in Stocks. THE FINANCIAL STATUS. LONDON Bank of England raises discount rate to 7 per cent, highest since 1873. France and Belgium advance rates and Germany will follow. NEW YORK High discount rates in Europe cannot prevent gold ship ments to pay for wheat and cot ton exports. Stock market declines, conserva tives discouraging rise to prevent pressure on money market and speculation. Gold engagements increased to 110,425.000. Scrip issues declared not subject to taxation. Attorney-General Ol ney having so decided In 1893. Stock Exchange seat sells cheap er than since 1904. WASHINGTON Senator Heyburn prof testa against Government depos its in New York banks until they pay Western banks" reserves in cash. Treasury Department rapidly Is sues more bank currency and saya worst of crisis over. BAN FRANCISCO Bankers optimis tic. Clearing-houee certificates ac cepted everywhere. Sub-treasury ' pays out $830,000 In gold. BRIDGEPORT, . CONX. Three large factories close on account of money stringency. NEW YORK, Nov. 7. The contest of the European money markets to retain their gold- resources was Indicated by the simultaneous action today of three of the large central banks of Europe and a, call for a meeting tomorrow of the governing board of a fourth. Tho Bank of England advanced its rate of discounts to 7 per cent, a rate which has not before been reached since 1873. The Bank of France advanced Its reg ular discount rate .from 3M per cent to 4 per cent, and fixed the rate for loans on securities at 4 per cent. The National Bank of Belgium advanced its rate of discount from BH per cent to 6 per cent, and Its rate on drafts to per cent, and Dr. Koch, governor of the Imperial Bank of Germany, called a meeting of the governing board for to morrow, which Is expected to advance the discount rate from 6 to 7 per cent. These movements In Europe are re garded as an indication of the ability of New York to command gold and the efforts of the European banks to pro tect themselves against this demand. Can't Keep Gold in Europe. Even these high rates of discount, however, are regarded as Insufficient to prevent the further Importation of gold Into this country, In view of the large credits which are being created by the, shipment of wheat and cotton. The high rate fixed by the English bank Is not expected to arrest entirely exports from London to New York, but Is THREE OF THE WINNERS AT THE PORTLAND HORSE SHOW BY H. W. TKEAT. OF BEAlTLKj W1NXEB6 HORSES DRIVEN TO RROIKiHAM. counted upon In London to equalize the distribution of the yellow metal among European money centers, so as to off set losses to America by imports of gold from other places. The fact that the Bank of France had advanced Its rate, although only to 4 per cent, Is considered a recognition of the severity of the pressure upon the bank's great gold resources. This action Is of spe cial significance, because It Is the con sistent policy of the Bank of France to afford commerce the benefit of a low and uniform rate of discount, and ;ven to buy gold at n loss unless conditions In the International money market make It necessary to protect the re serve. Hold Down Speculators. The stock market reflected the pressure for money by considerable declines to day, but these declines generally were expected by . bankers, who looked upon the rapid advance in quotations of yes terday as hardly Justified by the situa tion. There Is a strong determination among conservative Interests that there should not be a large speculation for the rise at the present time. They be lieve that such a movement would not only be artificial and likely to lead to disappointments, but that it would make calls upon the money market which can not well be met under present conditions. There are, no doubt, powerful speculators who would Use to undertake manipula tion In the market, but the influences ar rayed against them are so strong that if will require hardihood on their part to take any course which is opposed to con servative banking opinion. Gold Imports $40,425,000. The engagement of gold, today brought up the total importation on the present movement to $40,425,000, an amount which would permit a loan expansion of more than J15O.O0O.O0O If the legal reserves had not been already Impaired. The continuous arrivals of gold, which were swelled by $1,600,000 coming on the Teutonic today, are rapidly replenishing bank reserves and affording the basis for protecting credit. It is not anticipated that It will be necessary to Issue small scrip here,, as is being done In other cit ies, although wages in many cases will be paid in checks. The situation In regard to the trust companies is gradually becoming normal. The yomnrtttee of trust company presi dents Is satisfied that their assets are ample to meet all of their obligations, and will give them all the aid offered In case demands on them should con tinue. Plans for regaining their old vol ume of business are under discussion, but will require some time for definite con clusions. No Tax on Scrip Issues. The temporary scarcity of currency Is being met very generally, according .to reports reaching -New York, by the issue of printed certified checks or temporary interest-bearing notes and In some cases by scrip Issued ,by manufacturing, and other non-banking corporations. This resource was very generally re sorted to in" the panic of 1S93, and prac tically no trouble arose from any such Issues. Most of the scrip issued at that time was payable after a specified period, as 90 days or six months, but where Is sued by the banks with support of the Clearlng-House usually specified that the paper would be received on deposit at Clearlng-House banks. Some question arose at that time as ' to whether this paper would be subject to the tax of 10 per cent Imposed upon the issue of notes to circulate as money by Individuals or Institutions other than National banks. The question was settled by Attorney General Olney after the panic was prac tically over. In an opinion of November 21, 1893. The captions of that opinion pretty well express Its text that "the tax on state banks Imposed by the act of February 8, 1875, chapter 35. section 19, applies only to promissory notes and not to other negotiable or quasi-negotiable pa, pers." The test case was on a certificate of the Clearlng-House of Albany, Ga., which, stated that there had been a .de posit of securities to double the amount of the obligation to the bank which was responsible for the note, and that these securities were deposited for the payment to the bank or bearer In lawful money of the United States at six months from date or earlier at the option of said bank. The Attorney-General not only laid down a rule that such paper was not subject1 to the 10 per cent tax, but he also cited the general rule of law,, which will un doubtedly afford adequate protection for all such use In -the present case, "that. If there Is any doubt as to the meaning (Concluded on Page 4.) IN CLASS 10 PUTS QUIETUS ON TH1RU TERM TALK Visit to White House Works Great Change. PRESIDENT IS EVIDENTLY FIRM Exponents of Re-election As sume New Attitude. SENATOR SCOTT EXAMPLE After Consultation With Roosevelt, West Virginia Solon No Longer Predicts Renominatlon of Ex ecutive by Acclamation. OREGONIAN NEWS BUREAU, Wash ington, Nov. 7. It Is rather significant that a number of public men, after talk ing with the President since his return from his bear hunt, have left the White House with some remark which would Indicate that Mr. Roosevelt; had Im pressed upon them his Intention of retir ing from the Presidency in 1909, In ac cordance with his statement made four years ago. Not one of the men have said In so many words that the President told him that he would not accept an other nomination, but the fact that so many, who had positive views before they had seen the President, came away in a very unsettled frame of mind, seems to Indicate that something was said. A month ago Senator Scott, of West Virginia, who is anything but the mouth piece of the Administration, stated that the country had gone Roosevelt crazy, and he declared that the President would be renominated by acclamation. Senator Scott then went to Mexico on a business trip, and when he returned to Washing ton went to see the President. As he emerged from the White House he made the following statement: "If Secretary Root were to be presented by his own state he would be a formid able candidate for the Republican nomi nation for President.". ; .. .. :. . . Scott Advocates Delay! He then added that "So far as my own state is concerned I hope the people will not commit themselves to any candidate for many months. Of course the Presi dent stands first with us out there, but if he is not in the race, theYi we had better wait.".. This statement coming at this time from a man who only a month ago pre dicted Roosevelt's renominatlon by accla mation Is looked' upon as having more than unusual significance. What the President may have said to Senator Scott to make hlra change his mind has not been divulged, but the President must have said something, and If he did say it, he must have done so knowing that Sena tor Scott would have something to say for publication, for Scott is a man who never hesitates to speak his entire mind about . matters, whatever the conse quences may be. ' As to the Presidential prospects of Sec retary Root that Is another question. No one doubts but that if Root was elected he. would make an Ideal President. He has all the necessary attainments and la as competent a man as ever filled the Presidential office, but Root Is not of the popular type that must be recognized by the Republicans next year If they are to win. The President himself has said more than once that Root would make a splendid President but a very poor candi date. And this sentence explains Mr. Root's position more fully -than would a two-column discourse. t In a word, Root Is not a vote-getter; he does not appeal to the common people. As a matter" of fact Secretary Root rec ognized some time ago that he was out COM HOKUM, OWNED BY A. C. FROOM; of the Presidential race, and his Intimate friends who have talked with him on the subject, know that he has no intention of being a candidate for the nomination because he Is confident that he could not secure It. It Is also to be remembered In connection with Secretary Root that his law practice has been with the cor porations. The Secretary of State is not a corporation man, and If he should be elected President, he would probably be as firm as President Roosevelt in re straining corporations. But the average voter would remember thaUMr. Root had been a corporation lawyer and would be prejudiced to him on that account. . It may be true, as contended by some, that the President prefers Root to Hughes. Perhaps from a point of ability he would regard Secretary Root as a bet ter man, but the success with which the Governor of New York has met with In his state, and the public approval which he has won leaves no doubt in the public mind that Governor Hughes is far the superior candidate and would stand a better show of election if nominated by the Republican National Convention. There Is no reason to believe that the Root boom will assume serious propor tions. The Secretary does not look for such a change and nothing has' happened recently to Intimate that any such change will take place. GIVE VIEWS OX THIRD TERM Positions Taken by Public Men Difrer Widely. OREGONIAN NEWS BUREAU, Wash ington. Nov. 6. As Senators and Rep resentatives drift Into Washington they are asked what they think of the political outlook. It is notable that a great m.tny men, regardless of their personal relations with President Roosevelt, report a strong sentiment In favor of his renominatlon. Sentiment, however, is far from unanimous. The following statements taken from re cent Interviews give some idea of the way opinions differ: Governor Frederick M. Warner, of Michigan I should say that fully 75 (Concluded -on Page 5- CONTENTS TODAY'S PAPER The Weather. YESTERDAY'S Maximum temperature, 68; degrees; minimum. 45 degrees. TODAY'S Fllr; northerly winds. Financial Situation. Four European countries raise discount rate . to stop gold exports to America. Page 1. Gold Imports will continue. In payment for crops. Page 1. Conservative financiers check stock specu lation. Page 1. Senator ' Heyburn protests to Roosevelt against gold deposits In New Ytk. Page 4. Two banks fail in Southwest. Page 4. Foreign. Gurko, Russian famine grafter, disgraced and fined. Page 5. National. Roosevelt promises publishers to Investigate paper trust and recommended repeal of ""paper ta-lff. Page 1. New Federal Judge for Alaska. Page T. Nlca.rsgus.ns seise American cltlsen on Amer ican steamer and shoot him as spy. Page 5. Politics. Roosevelt tells friends he Is still opposed to third term. Page 1. President's opinion of election results. Page 13. Postmaster-General speaks on postal savings banks. Page 2. Watterson attributes Kentucky result to Beckham's one-man rule. Page 13. Domestic Santa Fe Railroad fined $330,000 for rebat ing. Page 4. Well-known Belllngham man trapped while stealing gold at Goldfield and fatally shot. Page 4. Great Increase In deaths and Injuries by railroad accidents. Page 7. Chicago flooded with counterfeit bills. Page 7. Mutual I.lfe asks release from Fish's nols central injunction. Page 4. Steamer LAisttanla arrives wlth- gold beats her own record. Page 8. Pacific Coast. inl and Senator Heyburn's name dragged Inte Adams trial, .page 6. Governor Chamberlain hints that Treasurer Steel should resign if state school fund Is impaired. Page 10. Commercial and Marine. Hop trade at a standstill. Page 17. Wheat weak and lower at Chicago. Page IT. , Advance In Bank ot England rate hurts stock prices. Page 17. French bark Brlzeaut clears with a ruff cargo or nour ror Europe. Page 16. Portland and Vicinity. Best assets of wrecked bank assigned to preferred creditors. Page 10. Splendid attendance marks opening of horse show. Page 1. Physicians warn against danger of bubonlo plague. Page 11. . - Jobbers' testimony concluded on distributive rate hearing. Page 10. State Equal Suffrage Association holds an nual meeting. Page 13. WINNER IN CLASS 8. PORTLAND'S FIRST HORSESHDWOPENS Big Attendance Marks Initial Day. SOCIETY TURNS OUT. IN FORCE Fashionably Dressed Thou sands Witness Judging. SPLENDID EXHIBIT MADE Portland and Seattle Vie for Honors. Local Owners Carry Off Many Firsts Praise for the Hunt Club. Portland may well be proud of its first horse show, which opened yesterday afternooni Without question there has never been an event In the history of the city in which citizens of every rank were more keenly interested, and they showed It by the splendid attendance yesterday afternoon and night. Never during the Liewis and Clark Fair did the big Orien tal building have pass through its wlde portals a larger or a more smartly-"" dressed crowd, and from men and women who have attended horse shows at the Great Madison Square' Garden In New York, and at the Coliseum in Chicago, were heard expressions of surprise and congratulation for the marvelous show ing the members of the Hunt Club have made in their initial attempt to give a show of this character. Big Crowd at Matinee. The bright sunshine took to the Oriental building a remarkably-large crowd for the opening matinee, and at night the smart growns of the women who tilled the boxes, and all the reserved seats, made a sight daszling and beautiful. While society was out In force, with handsome gowns, Jewels and flowers, the horses too were on parade and the show ring from the beginning of the Judging in the afternoon until the close of the night programme, . which . ended with . some spectacular hurdle Jumping, was a sight that will live long In the memories of all who watched the difficult task" that was performed by W. A. Dobson and Dr. James Wlthycombe, the judges. , When the hour for the opening of the show came, not a detail making for the success of the affair had been overlooked, and though the judging seemed to drag at times, and the showing time of the classes went beyond the time limit. It was due to the fact that the competi tion between the rivals In most all of the classes was so close that It was an almost Impossible task to pick the winners. Judging a Difficult Task. In the harness classes and In the saddler class no show ring anywhere can boast of better horses or better appointments than the present Portland show, and all this made the task of awarding the rib bons a difficult one. Though some may criticise because each class was not Judged according to the schedule, tt must be remembered that the officials were Judging each class ' according to the horses and appointments that were shown, and not by the clock. Beginning with the spectacular exhibi tion given by Mountain Batteries A and B of the Regular Army, from Vancouver, there was something doing In the ring every minute. Portland exhibitors came In for their share of the blue ribbons. In the breeding class. A. C. Ruby, of Portland, and E. L. Martin, of Turner, Or., were 'the wjn ners. Both of these men, who are devot ing their time and money to the prac tical side of the business, made a splen did showing and one that Oregon may well be proud of. Treat Pair Geta First. In the harness classes the Juderes hid their work cut out for them, for the contest between the appointments owned In Portland and those of H. W. Treat and John W. Consldlne. of Seat tle, was keen. In the class for pairs to be shown to a brougham, the blua ribbon award was to Mr. Treat's hand some team. Five appointments as hand some as could be shown in any ring were brought Into the ring and It took the Judges some time before they de cided upon the winners. Mr. Consl dine's handsome pair of chestnuts was given the red ribbon, and E. L. Thomp son, of Portland, who sent into the. ring a pair of .bays that were bred In Oregon, was third. Perhaps no owner who was awarded a ribbon was proud er of the recognition than Mr. Thomp son. Seattle Horse Defeated. - Dr. A. C. Froom's fine high-stepper Conundrum took the blue over Busy Bee, owned by A. S. Kerry, of Seattle, In the runabout class, and the verdict of the judges was freely applauded. In the Shet land class, Kenneth Bartlett won with his 4-year-old stallion, and B. L. Thompson'a miniature yearling was also given a blue ribbon. James H. Reid's blue-ribbon pair of Shetland mares were given a blue rib bon. In the light harness claps Portland low- ' ered the colors of Seattle and the blue rib-' bon went to a pair of black horses as handsome as ever loooked through a bri- (Concluded on Page 12.)