Jtfet mitw Jilt w0mmL
VOL,. XLVI.-XO. 14,640.
PORTLAND, OREGON, SATURDAY, NOVEMBER 9, 1907.
PRICE FIVE CENTS.
MAKE NEW YORK
T
Cortelyou Swings Club
Over Them.
WITHDRAW GOVERNMENT FUND
Transfer Deposits to Western
Banks if Needed.
BUT GOTHAM LOOSENS UP
Stock-Gambling Center Pinches the
West by Standing Off Demand
for Money Int-Enters La
bored Donial of Charge.
THE FINANCIAL 8TATVS.
WA8HINQTON-B.cr.Ury -'ort,lyou
will transfer Government funl
from Eastern to We.tern bank,
unless Eastern bank, repay loan,
to West.
NEW YORK Banks meet Western,
demands for currency and deny
I th.y have Ignored. o.u.,
I lhey have depleted re.erve. to
.hip money West.
Steamer J.usltanta arrive, with
I 12 38,1M In Fold from Europe.
! G-ld enablement. published
reach I4n.000.noo and other, prt
f vately made raise total to 148.
! S.IO.OoO.
I Plan to sell Panama bonds,
which would form basis of more
currency considered by Cortel-
you.
Great bulk of gold Imported .
t and to r-e Imported .hipped West.
! Nearly $12,000,000 within week.
BERLIN Imperial Bank of Germany
T raise, discount rate to JH per,
I cent. hlKhest ever known.
SAN FRANCISCO California Safe
Deposit ' ft Trust Company may
J reopen una.r agreement with
depositor..
f CHICAGO Clearing-house check, to
' I ' be Issued today. Bank, have lm-
I ported ,000.000 gold and gained
Treasury deposits. West richer
than ever through larger grain
J exports and higher price.. Farm
! era rich and hold wheat for rise.
t Few Western men lose by de
T cllne In stock..
WASHINGTON. Nov. 8. (Special.)
The West Is to receive all the assist
ance at the command of the Treasury
Department to meet the great demand
for money to move the crops. Secre
tary Cortelyou discussed the situation
with the President today and haa for
mulated a plan, which will be carried
into effect, unless the Eastern banks
rise to the occasion and-show less self
ishness. Mr. Cortelyou is of the opin
ion that the large importations of gold
and the house-cleaning which has been
done in New Tork, have placed the
banks there in a materially improved
condition. The Government no longer
feels the necessity of aiding the East
ern situation, but Is Impressed with
the Importance of meeting the situa
tion which exists in the West, where
there is preesure for cash for crop
moving purposes. The Western banks,
enjoying great prosperity, have large
Individual deposits, but are unable to
realise readily upon their assets for the
reason that a large part of their sur
plus Is In the East drawing good In
terest. The Eastern banks have not
been meeting with any degree of cheer
fulness the demands of the Western
banks for the return of this money.
The situation reached a stage during
the last few days to cause the Gov
ernment to decide that,' unless more
co-operation was shown by the East
ern banke, a large part of the Govern
ment deposits would be withdrawn
from them and placed with Western
banks to remain until the Eastern
banks return the funds borrowed of
the West.
The information which has reached
Treasury officials Indicates that prob
ably It will not be necessary to carry
out such a plan, and the opinion is ex
pressed by them that the West will
soon have abundant cash to meet all
legitimate demands for crop-moving
and Industrial purposes.
IIFKPS BKMAXDS FROM WKST
New York Ships Currency When
- Treasury Deposits Are in Danger.
NEW TORK, Nov. S. The leading New
York hanks are exerting themselves ac
tively today to meet the demands of their
country correspondents and depositors
for currency. They declare that the
suggestions made from several Western
sources that they are not meeting legiti
mate demands for currency from the
West are entirely unfounded, and that
they are. on the contrary, taking every
practicable measure to aid the West and
South. One of those large banks, with
several thousands correspondents, has
depleted Its reserve by about a quarter
during the last few weeks to supply cur
rency where It' Is most needed, and has
made large shipments- to banks in San
Antonio, Galveston, Memphis, Mobile, At
lanta and other Southern points.
The- country banks have been allowed
to draw down their balances to a point
' which affords in many cases hardly
END
GASH
IS
enough to meet the drafts sold in the
primary course of business. They have
brought paper for rediscount to their New
York correspondents In : large amounts,
and the principal difficulty of the New
Tork banks has come from the demand
for currency to be shipped against tha
balance created by these rediscounts. As
the rediscounts have been in the nature
of an accommodation and have not
brought a cent of currency to the dis
counting banks, they do not feel that
they should be called upon to supply cur
rency In large amounts under existing
conditions. .!..'.
Ships AH She Can Spare.
The best possible Judgment is used In
meeting these country demands for cur
rency. It is a not unusual experience in
special cases to ship all that Is asked for,
but a portion of what is asked for, rang
ing around one-half, is usually shipped,
the proportion varying according to the
A-
i -
- - ''I .K'
Governor Jnniea F. Smith, of the
Philippines, Who Gave Secretary
.Taft Farewell Banquet Yesterday.
cash strength of the bank calling for ad
ditional currency or the supply demanded
for legitimate purposes. Special favor Is
shown to the small interior banks, where
there is no clearing-house, because It Is
realized that they are not In a position to
count upon co-operation and th,e use of
clearing-house certificates, as in the case
of . communities having a number of
strong Institutions.
It is admitted that the cotton movement
is seriously checked by the lack of small
bills and silver to pay the small growers
and by the Inability of- the Southern
banks to handle the Immense volume of
business accumulating at Southern points.
The grain shipments are In- better shape,
owing to the gold se.ured by the banks of
Minneapolis and St. 1 aul, and arrange
ments for paying cash In New York on
grain bills. The New York banks feel
bound to retain a certain portion of re
serves to guard against possi.e contin
gency, because they fulfill In substance
the function which Is fulfilled In London
by the Bank of England, In Paris by the
Bank of France, as the ultimate resource
In emergency.
Over $40,000,000 Gold Coming.
The aid which Is being rendered to the
situation Is indicated by the fact that, the
total engagements of gold have ' now
reached 40,000,000. The total was materi
ally Increased today by the announcement
of several purchases which had not here
tofore been made public. Of the amount
engaged, the sum of $21,311,000 has already
arrived. Including $12,366,150, which was
laid down from the Lusltanla this morn
ing. This gold will afford the basis of
nearly $200,000,000 In loans, and will ma
terially assist the New York banks In
their efforts to meet the pressure for cur
rency throughout the country,
The fact that practically $60,000,000 In
currency disappeared from the New York
banks within a week, as Indicated by the
last bank statement, is considered suffi
cient evidence that the New . York banks
are doing their best to meet the demands
upon them. The total drain of last week
Is computed upon the basis of an actual
loss in cash of about $30,000,000, in face of
the fact that $0,000,000 of public money
had been poured into the New York
banks. It is not possible to determine
what proportion of this $60,000,000 went
west and what proportion, went into
hoards in New York. .It is estimated In
some quarters that about half . of the
amount was shipped to Western banks,
but other bankers put the proportion
somewhat lower, leaving the balance to be
accounted for by hoarding.
May Sell Canal Bonds.
One of the measures which have been a
subject of some consultation between Sec
retary Cortelyoii and leading bankers her.
has been the sale of a block of Panama
(Concluded on Pay 3. )
HARRY MURPHY
OAltjOM
Ferhaps.
3 I
!
fin
ft
(as
WEALTH
OF
Pi MIS INTACT
Richer Than Ever in
Available Capital.
NEED ONLY UNBLOCK WHEELS
Only Few Weeks Till Money
Will Flow Freely.
NO LOSS BY SPECULATION
Banks Push Sales of Crops, but the
Farmers Are ' Able to Hold for
Rise The West Refused to
Buy Watered Stocks.
CHICAGO,- Nov.. 8-r-The financial situ
ation of Chicago and the Northwest is
mainly a matter of unblocking. That Is
to say, the ordinary facilities of com
merce and the transaction of banking
business have been ourtailed by the short
age of currency. The bankers are taking
steps to return to normal conditions.
They did not consider It safe yet, how
ever, to begin the payment of currency
money whenever demanded and checks
on the clearing-house for small amounts
are now In preparation to be used as cur
rent money. It Is almost certain that
these checks will be iBsued on Monday
and several million dollars of them will
then be available.
But meanwhile the coffers of the banks
and the pockets of Individuals have been
somewhat replenished by the Importa
tion of over $6,000,000 ot gold, and the de
posits of the United States Government In
National banks have been increased sev
eral millions. Seemingly, It is a question
of a few weeks at . the , longest when
money will be freely in circulation.
- West Richer Than Ever.
There is no manner of doubt that the
Northwest Is richer -now than ever be
fore, not merely .in- Axd assets but in
immediately available . .capital. As a
small Illustration, It may be mentioned
that the shipments of wheat and flour for
19 weeks of the crop year amount to 82,
853,000 bushels against 68,666,000 the cor
responding period last year, and the
amount of money received for this pro
duct Is much greater per unit than last
year. It is - to - be assumed that ship
ments from this time on .will be . less
active than heretofore, because the sup
ply of currency Is small' and many of the
farmers refuse to. acoept. checks.
This very fact, however, shows that
the producing class is financially strong
enough to sell when It gets ready. The
country banks have more currency than
ordinarily at this time of the year, but
are holding It for fear It will be hoarded
by individuals If paid out The excess of
shipments of currency over receipts in
Chicago during October was $24,711,510,
against $16,765,000 the corresponding
month last year. The banks In Chicago
are treating country banks as they do
individuals, that is, giving them the little
currency they must have and holding the
remainder for future needs.
The banks in Chicago also have been
calling loans to grain men to some ex
tent . In order to force the produce to
market. The consequence has been a de
cline in the price of agricultural prod
ucts. - The amount of money that can be
realised to the West from agricultural
products Is well indicated by the fact
that the visible supply of wheat in this
country is now over 43,000,000 bushels, as
against 37,000,000 bushels a year ago,
while the price is materially higher.
West Did Not Buy Stock.
The situation in the West generally Is
better than in some other parts of the
country, by virtue of the fact that spec
ulation has been on a very small scale
for two or three years past. As long
ago as the Fall of 1905, and again In the
Autumn of 1908, the strongest appeals
were made to Chicago and other parts
of the West to buy stocks at the high
prices then prevailing. These appeals
fell on deaf ears. There was no buying
except ' of the smaller sort. When the
CASTS A HOROSCOPE
iT0-Ajir,MT
"My
IN TmF
U.S.
sen mil
invite 0.
Hare to Happen.
WEST
break of last March came, therefore,
and again during the collapse of last
month, few losses were Incurred in the
West. There has not ben a whisper of
danger to any of the well-known broker
age houses in Chicago, and the extent
of the losses in stocks from a specula
tive point of view is measured by the
misfortunes of two or three i capitalists
and the common run of 100 share op
erators. West's Position Strong.
The situation is therefore a very strong
one, and the Immediate future depends
only on the skill and luck with which
the banks steer this section of the coun
try out of the maze of clearing
house checks and payroll checks
Into the normal condition when
current, money will be as abundant
as It was before the panic came on.
Thus far the affair appears to have been
t j
! i x ? - t I;
m ' iT. c - mm
v i
Senator W. H. Heyburn, of Idaho,
Whose Protest Ajrnlnst Monopoly
of Government Deposit, by New
Tork Bank. Has Caused Them to
Nend Money West Vnder Threat
From Secretary Cortelyou.
managed with much ability and with dis
cretion. BANKERS MAY BE PROSECUTED
District Attorney Admits Inquiry,
but Has Not Decided. -
NEW YORK, Nov. . 8. Reports that
criminal prosecutions, as a result of
conditions disclosed by the present bank
ing situation in this city, are imminent,
gained widespread circulation in finan
cial circles today. It was eald that rep
resentatives of the Controller of the Cur
rency, who have thoroughly investigated
the affairs ot twoNtUional banks, which
have been prominently mentioned In con
nection with the present trouble, found
conditions which led them to make un
usually minute reports, the precise na
ture of which has not been disclosed.
When United States District Attorney
Stlmson was asked about the matter,
be said that no decision has yet .been
reached to prosecute any one In connec
tion, with the recent bank trouble.- He
said also that any such decision would
be made here, and nt In Washington.
Mr. Stlmson said:
"Since the bank troubles In this city be
came acute In the last three weeks, my
office has followed them with the same
care that it always tries to give to all
matters within its Jurisdiction. . As yet
there has been no decision or determina
tion arrived at to prosecute any indi
vidual whatever, and any statement to
the contrary, whether In a newspaper or
elsewhere, is wholly false."
ONLY ONE FIRM RESISTS
Stafford Manufacturing Company
Denies It Is In Trust.
CHICAGO, Nov. 8. Pleas of not
guilty of violating the Sherman anti
trust law were entered In the Federal
Court today by the E. H. Stafford Man
ufacturing Company, E. H. Stafford. Its
president, E. M. Stafford, treasurer, and
G. B. Entley, a director. Trial was set
for January 5.
The company is the only concern
fighting the allegations that a school
and church furniture combine existed.
All the other concerns pleaded guilty
and were fined.
llorgan Wins Billiard Match.
ST. LOUIS, Nov. 8. John G. Horgan de
feated Thomas A. Houston, 50 to 47, In to
night's game of the National three-cushion
billiard tourney. Horgan's high run
was 5. average .87; Houston's high run 4,
average .861. Jesse Lean defeated Frank
Day, 60 to 85.
TELLING WHAT WE
We Hope Bo.
mmmmmsi
EIRE IT SUPERIOR
ENTAILS BIG LOSS
$2,500,000 Damage
on Lake Front.
ELEVATORS AND MILLS BURN
Intense Heat Thwarts Efforts
of Four Fire-Tugs.
GREAT GRAIN DESTRUCTION
Flames Originate in Great Northern
Storage Plant, Containing 600,
000 Bushels of Grain, Which
- - Is Entirely Consumed.
DULUTH, Minn., Nov. 8. Fire of an
unknown origin tonight destroyed the
Great Northern elevator "A" in Superior,
together with 800,000 bushels of grain,
principally wheat, all of which was fully
covered, by . Insurance. The elevator was
owned by the Great Northern Railroad
but was leased to the A. D. Thomson
Company of Duluth.
The sparks soon Ignited the Grand Re
public Mill. on Tower Bay slip, the Great
Lakes Dredge & Dock Company's dock
and the Duluth-Superior Storage Com
pany, which contained the finishing plant
of the Webster Chair Company. At mid
night It looked as though all would be
completely destroyed, entailing an esti
mated loss of $2,000,000.
Fire Gains Headway.
The fire started at the southwest corner
of the elevator dock, ' and before it was
noticed had communicated to the eleva
tor. An alarm was turned in and four
fire tugs responded, but owing to the
intense heat they were driven out of the
slip and devoted all their energies to
saving the adjoining properly.
The steamer W. A. Parent and W. A.
Rogers -were In the elevator slip loading
wheat- and -the latter was to take out
800,009 bushels of wheat tomorrow. The
steamers TJtlca, Alva and ChlM. were on
the opposite side of the slip at a mer
chandise dock and were pulled out by
tugs to save them from destruction.
Check Spreading Flames.
The Globe elevator, owned by the
Peavey Company, was on fire, and for a
time It- looked as though It would go,
but the firemen succeeded in extinguish
ing the flames. The flames also spread
to the -sawmill property' of the Briton,
Kimball & Barber property, but this
likewise was extinguished before any
serious damage was done.
At 1 o'clock the fire seems to be under
control, although still burning fiercely
In some of the burned districts. , The
combined departments of Duluth and Su
perior are combating the conflagration.
The property destroyed at this hour 6
as follows :
Ijist of the Losses.
One Great Northern elevator, Manka
tou flour mill and elevator, Freeman
mill and elevator. Grand Republic mill
and elevator. Commander mill and ele
vator, 20 dwellings and several small
warehouses lining the bay front The
flames have communicated to the St.
Paul & Western Coal Company's dock
and the office of the shipbuilding com
pany is destroyed. It is now estimated
that the damage may reach $2,500,000.
KESWICK IS SWEPT BY FIRE
California Town Loses Hotels, Sa
loons, Stores and Dwellings.
REDDING, Cal., Nov. 8. Fire shortly
after midnight, at Keswick, burned tha
Gillespie House, the Kalamazoo House,
the Holllster House, the Opera-House,
three saloons, L. Maxxtnl's large general
store and half a dozen or more dwellings.
Total loss $60,000; Insurance very small.
Historic Church Burns.
MONTREAL, Nov. 8. The Roman Ca
tholic Church at Longue Points, probably
the oldest 'church in the Province of Que
WILL BE TALKING ABOUT NEXT YEAR
name Old Question.
bec, having been erected in the 18th
century, was burned to the ground last
night. Loss $75,000, with $16,000 Insurance.
KLINE DIES OF HIS WOUNDS
Robbers of Reduction Works . Be
trayed by Penitent Pal.
' GOLDFIELD, Nev., Nov. 8. V. L.
Kline, who was shot and fatally wounded
Wednesday night While in the act of
stealing amalgam at the Nevada Gold
field Reduction Works, died at the
County Hospital this morning without re
covering consciousness. Gippel, Kline's
accomplice, Is said to have made a com
plete confession to the Sheriff, in which
he gave the names of the two men who
robbed the Gardner mill a week ago.
He declares that neither .he nor Kline
had anything to do with that robbery,
but his familiarity with the circumstances
and knowledge of the identity of the rob
bers leads the authorities to doubt 'his
Joseph H. Choate, Ktacted President
of National Civil Service Reform
League.
previous statement that the attempt to
rob the reduction works was his first
fall from grace.
CONTENTS TODAY'S PAPER
The Weather.
YESTERDAY'S Maximum temperatura, 61
dejrrees; minimum. 4-4 dgre.
TODAY'S Fair; easterly winds.
- Financial Situation.
Cortelyou threatens to transfer Government
deposits to West unloss Eastern banks
pay dobts to West. P&a-e 1.
New York bankers say they are sending
money West aa fast as possible. Pace 1.
"Wealth of West Insures quick recovery from
Stringency. Pag- 1.
Foreign.
Trial of Prucs contest for DukeAom . .of
Portland begins.. Pas 2. . -
Berlin Hipper, found In asylum, makes con
fession. , Page 3.
Hurricane causes havoc In Marseilles, kill
ing; many persons. Pave 8.
National,
Secretary Taft given farewell reception at
Manila and starts for Vladivostok today.
Page 4.
politic.
Plana of third-termers and growth of Presi
dential booms. Page 4.
Tom Johnson to be star of Bryan banquet;
Chandler will stay away. Page 1.
W. C. T. U. convention rejoices over Pro
. , hlbitlon victories in South. Page 6.
Domestic.
Earthquake In Aleutian Islands swallow
whole mountain. Page 2.
Missing son of Ohio millionaire found in
San Francisco. Page 3.
Mexican engineer sacrifices life to save
- town from destruction. Page 5
Formers of clearing-house certificates caught
at EI Paso. Page 4.
Great fire at Superior. Wis., destroys Great
Northern elevators and other buildings.
Facia c Coast.
Southern Orejron's protests Increase against
removal of trains 11 and 12. Page 6.
Yoncalla Marshal kills one desperado and
captures two more. Page 6.
Sports.
Portland Academy and Hill Military Acade
my play scoreless game. Page 7.
Seattle and Portland break even in exciting
athletic dub meet. Page 5.
Idaho - beats Washington at football by
score of 5 to 4. Page T.
Horse Show again attracts big crowds.
Page 10.
Commercial and Marine.
Heavier offerings and lighter demand for
hides. Page 17.
Ieas pressure to sell wheat. Page 17.
Better tone in stock market. Page IT.
General trade reports show improvement.
Page 17.
Local inspectors Investigating' the sinking
of the dredge Portland. Page 16).
Portland and Vlclnitr.
Officers of wreeked bank to be arrested to
day. Page 11.
Distributive rate hearing goes over pending
production of additional testimony.
Page 13.
Valley millmen send complaint to Interstate
Commerce Commission. - Page 9.
Federal Court hears mandamus suit against
County Clerk. Page 18.
Local merchants say trade is little affected
by mon?y shortage Page 13
"Remember that panic we had last
November T"
"Yes. Hal Ha! Ha!"
! - -
3
BREAD
WITH HIS RIVAL
Chanler Will Not Be at
Bryan Dinner.
TOM JOHNSON IN HIS GLORY
Will Delight to Follow Bryan,
Not to Lead.
CHANLER STILL CANDIDATE
Only Possibility of Surprise Would
Be Peerless One's Declining and
Passing the Honor Along to
a Man More Modest.
WASHINGTON, Nov. 8.-tSpeclal.)-Mayor
Tom L. Johnson, of Cleveland,
will, and Lleutenant-(3overnor Louis
Stuyvesant Chanler will not, be a guest
at the Bryan dinner to be held here
November 26. The dinner la being boomed
to the limit with beating of tom-toms
as the greatest political feast that ever
haa been perpetrated. The sponsors for
the affair are doing their utmost to have
it understood that some great message
will be delivered to the country by Col-'
onel Bryan on the forthcoming occasion,
and they are raking the country with a
fine-tooth comb to gather In Democrats
of National prominence to deliver Bryan
speeches and make it appear that the
National Convention need be only a
formality.
Only One Sensation Possible.
The only thing that really' could causa
a sensation at the dinner would be to
have Mr. Bryan decline the nomination,
and name his legatee. The funny thing
about the programme Is that In the list
of National leaders who are to attend,
according to the announcements, are
found some statesmen and politicians who
are known to be nauseated with Bryan-:
Ism, but who think Mr. Bryan must be
nominated again to get him out of the
party's way In the future.
Mr. Johnson has been coddled by Mr.
Bryan, but against the possibility that he
may be favored by the Nebraskan, If the
latter does not want to run. Is the balanc
ing statement that Mr. Johnson does not
desire to make the race. Mr. Johnson,
it is believed. Is sincerely for the "peer
less leader."
Chanler Thinks He's Candidate. .
As to the case of Mr. Chanler, who Is
reported to have declined an Invitation
owing to a "previous engagement," It Is
declared that he takes his own Presiden
tial boom seriously and could not consis
tently, as a candidate for the nomination,
break bread with Bryan boomers and ap
plaud the proffering of the leadership to
his rival. The New York Democrats will
be conspicuous by their absence at the
dinner. They are bent on defeating Mr.
Bryan for the nomination next year, but
the serious-minded New Tork leaders re
gard their own Chanler boom as a
fatuous makeshift.
BREAK RECORD FOR 1906
Harrlman. Lines Did Big Colonist
Rate Business to Oregon.
Colonist rates from Eastern points to
the Pacific Coast expired October 30.
These rates were JS3 from Chicago to
Oregon points and $:5 from Missouri
River points. The general passenger de
partment of the Harrlman lines In Oregon
received yesterday the report covering the
last week in October and were able to
give figures for the month, with the ex
ception of the sales made on the last few
days. John A. Scott, assistant-general
passenger agent, said that these sales
might run up to several hundred, many :
persons delaying their Journey for various
reasons until near the expiration of the
time limit.
According to the report there were 2017
reduced rate tickets sold at Eastern
points to Oregon territory or points ad
jacent thereto. In the corresponding
month last year there were 1373 colonists
to coast points, showing a gain of 64.
For the months of Septem'ber and Octo
ber, not counting those still uncollected
or at least not reported, the number of
colonists arriving was 4229.
In October colonist tickets were sold
as follows: To Portland 620. to points In -Oregon,
south of Portland, 301; Hood
River 13, The Dalles 13, Pendleton 11. La
Grande 18, Baker City 14, Walla Walla 36,
Lewiston 15, balance scattering.
PROSECUTE SANTA FE AGAIN
Rebating Railroad to Be Tried on
Another Indictment.
LOS ANGELES. Cal., Nov. 8. Follow-,
lng close upon the heavy fine imposed
upon the Santa Fe Railroad Company by'
Judge Wellborn in the Federal District'
oCurt yesterday. U. S. District Attorney"
Lawler announced today that he would:
proceed at the coming January term of,
court to prosecute the road upon the re-,
malnlng Indictment of ten counts charg
ing rebating.
Santa Fe attorneys are busy preparing;
their appeals of the cases upon which the
company was sentenced yesterday.
Xew Oregon Postmasters.
WASHINGTON. D. C, Nov. 8. (Spe
cial.) Postmasters appointed: Oregon
Tule Lake, Jennie Dunn, l-lce M. R. Bas
set t. resigned.
Washington Julia, George W. Kllse,
vice E. W. Craig, resigned.
Edmonds Samuel F. Street, vice L. L.
Austin, resigned.