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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Dec. 24, 1907)
VOL. XL.VJ.-XO. 14,678. PORTLAND, OREGON, TUESDAY, DECEMBER 24, 1907. PRICE FIVE CENTS. ii HE tIED TO RUE," Chamberlain's Sharp Reply to Steel. FALSE REPORT ON FUNDS State Treasurer Accused of Careless Methods. . WHY HEAVY BOND NEEDED Executive Replies to Criticisms That He Is "Playing Politics" Re fuses Longer to Bear Ugly Slings In Silence. SALEM. Or.. Dec. 23. (Special.) "State Treasurer Steel lied to me twice, about the state funds In his hands and I see no reason why I should credit him now when he says he has but $230,000 on hand," said Governor Chamberlain tonight. In dis cussing the criticisms aimed against him by friends of Steel, in an article published In today's Oregonian. "It Is my duty to see that the State Treasurer gives a good and sufficient bond. I have asked him to furnish a bond in the sum of $600,000 and Steel's friends say I am trying to force him out of office for purely political purposes. The Treasurer's semi-annual statement last July showed (900,000 on hand, and yet he had given bonds to the amount of only (300,000. I called for an Increased bond, as It was my duty to do, and Steel pro tested that the sum on hand had been greatly reduced and that he had ample security' for all the funds he had In the banks. On that showing I consented to let the bonds stand at a total of (600.000. When the Title Guarantee & Trust Com pany failed It was found that Steel had nearly $300,000 then without security." Yet Steel tola me in a letter which has al ready been published that he had taken security for everything. Not Taking Chances. "On November 12 I asked him for a statement of funds on hand and he gllie me a carefully prepared statement, which I now have. It showed $495,541.19 on hand. I told hltn It did not look right to me, and he took it back and added $60,000 to It. He lied about the funds the first time, and I have no means of knowing whether the $60,000 he added covers every thing or not. Since he lied to me .twice, I don't Intend 'to take any chances with him. "'Steel's friends say a $600,000 bond Is too much. But his bond Is to run for several years. Last June he had $900,000 on hand, and I see no reason why he shouldn't have as much next June. His report of a month ago shows $555,000 In his control, or only $45,000 less than the amount of th bond I ask. "Steel's friends say that demanding a $600,000 bond is 'playing politics.' If that , Is "playing politics," I am willing to plead guilty. Treasurer's Loose Methods. "Steel's friends try to excuse him by saying that he did not know how much money he had In the bank of the Title Guarantee & Trust Company. That Is the best reason I could have for demand ing a good bond. The statements he has made to me and the public indicate that Steel knows and cares very little about the funds and securities In his hands. Is it "playing politics' to demand a reason able bond under such circumstances? "In answer to the charge that I am trying to force Steel out of office, It Is only necessary to say that I gave him 20 days In which to get the bond when I could, and by rights should, j.ave de manded It once. During this 20 days the Treasurer Is without a bond and the state Is taking the risk of loss. Experience shows It is something of a risk. "In the article In today's Oregonian, Steel's friends are quoted as expressing the belief that I will refuse to accept some of the sureties on Steel's new bond. I do not now know a single name that is on that bond. "When the document is presented to me I shall appoint a competent and disinterested citizen of this state to investigate the financial standing of the sureties. If they are good they will be approved; if they are not good they will be re jected. If that Is "playing politics." then I am guilty. Strikes in Seir-Defense. "'In their statement In today's Ore gonian, Steel's friends admit that some of the men on his present bond are in solvent. Yet they accuse me in ad vance of being over-exacting regard ing his future bondsmen. If his sure ties liuve proven insolvent in the past, is not that the more reason why I should be careful whom I approve In future? Bonds are not mere formali ties to be lightly given and carelessly approved. It is made my duty to ex amine the treasurer's bond and that duty will be performed without fear or favor. "I have no desire to injure Mr. Steel or hinder him In procuring his bond, but when he lies to me about the state funds and tiien goes out and abuses me for asking that a reasonable bond be given within a reasonable SAYS GOVERNOR time, I do not propose to bear it in silence. NOT ANXIOUS TO OUST STEEL Governor Would Be Embarrassed With Democrat in the Office. SALEM, Dec. 23. (Special.) Though It has been several times reported, and Is generally believed, that Governor Cham berlain would like to have- State Treas urer Steel resign in order that he, the Governor, might appoint his successor, and thereby control the . political pat ronage of the state boards, It Is said by close friends of the Governor that this is not the case. On the other hand, it is declared that the Governor would be greatly embarrassed If he should have the appointment of a Treasurer. The Governor is on record as favoring the retention of present incumbents in state institutions as long as they give satisfactory service. If the Democrats should have control of the governing boards it Is said that' there would be such a rush of Democrats to the pie counter that the Governor would find It necessary, to go back on his principles or make enemies of many of his party supporters. So far as he has opportunity, the Gov ernor has filled most of the important offices with -Democrats, and the Demo crats will expect him to oust a Repub lican and put In a Democrat wherever he shall have a chance In 'the future. If he should have opportunity to ap point a State , Treasurer, he would be expected to appoint a Democrat, and then the Governor and his appointee would control the asylum, reform school, tlsh commission, mute and blind schools, and several other boards and commissions. Democrats have had small opportunity at the pie-counter for many years, and are said to be exceedingly hungry. If forced to acquiesce In their demands, the Governor would lose many Repub lican friends, upon, whim he depends for the votes necessary In an election in such a strongly Republican state as this. It is this circumstance, so friends of the Governor say, that makes him de sirous of avoiding the appointment of a State Treasurer. DEEDS SUfIC BY KIPLING SURVIVORS OF MUTINY CELE BRATE THEIR JUBILEE. Of 1200 Veterans Living, Only 700 Attend Reunion Roberts Heads Venerable Host. LONDON, Dec. 23. "The remnant of that desperate , host," as Kipling; de scribes the veterans of the Indian Mu tiny, gathered this afternoon in Albert Hall to the number of more than 700 to commemorate the golden jubilee of the struggle which ended In the Indian Empire being saved t Great Britain. On the pension roll in the War Office are the names of 1200 survivors of the mutiny, to each of whom an Invitation was sent for the reunion, but old age prevented many from attending. Lord Roberts, who presided, read a telegram from the King, who expressed the ap preciation of the whole empire for the service rendered by the army of which the veterans were members. Lord Curzon, chancellor of Oxford University, gave the toast, "The Sur vivors of the Indian Mutiny," and Lewis Walter, the actor, recited verses espe cially written by Rudyard Kipling, of which the following Is one: Today across our fathers" graves. The astonished years reveal The remnant f that desperate host Which cleaned our East with steel. CONTENTS TODAY'S PAPER The Weather. YESTERDAY'S Maximum temperature 89 degrees; minimum. 50 degrees. TODAY'S Occasional rain; cooler; southwest winds, diminishing Tuesday. Domestic. Hearst acknowledges error In publishing charge against Chanler. Page 5. Methodist preacher denounces labor unions. Page 4. , Governor Sparks may call Legislature to organize Nevada rangers. Page 5. Taylor's deposition read In Powers trial. Page 8. President of Hamilton Bank confesses he has destroyed all his records. Page 1. Pacific Coast. Governor Chamberlain makes curt reply to critics regarding Treasurer Steele. Page 1. Dr. Carll answers Osteopath Moore. Page 6. Woodburn hopgrowers Join Coast Union. Page . San Francisco banks make generous Christ mas gifts to employes. Page 1. Banker French succumbs to Brlght's dis ease at The Dalles. Page Foreign. Frau von Elbe withdraws worst statements against Von Moltke and Harden's case is breaking down. Page 1. Veterans of Indian mutiny celebrate Jubilee and Kipling writes poem for them. Page 1. National. Great speed required for , army airship. Page 7. Record of canal-diggers beats pyramld- butiders. Page 8 Hency confers with Roosevelt and Bristol about Oregon land fraud trials. Page 1. Politics. New York Republican Club declares for Hughes and starts campaign. Page 3. Justice Harlan speaks on centralization and .. state rights., Page 4. Lawson says only Roosevelt's re-election can avert National disaster. Page 3. Commercial and Marine. Christmas turkeys sell well at good prices. Page 17. Eastern and foreign wheat- markets lower. Page 17. Tighter money checks stock speculation. Page 17. Twelve grain ahlps here cleared this month. Page 16. Portland and Vicinity. Mulkey withdraws from Senatorial race. Page 13. Italian shot and killed; murderer escapes. Page 18. Mount Hood Railway & Power Company purchases Laidiaw Townsite. Page 13. 'Three thousand dollars and three women officers recommended by ways and means committee for Travelers' Aid Society Pago 11. Council Is expected to order chemical laboratory and bacteriologist to maintain purer city food supply. Page 16. Board of Kducatlon recommends $400,000 expenditure, pn new schools. Page 11. Welnhard brewerj is too close to school and license may be denied. Page 10. . Christmas rush In Portland stores greatest known.- Page 10. National Guard convention to meet in Port land next week. Pave a. HENEY ARRANGES FOR LAND TRIALS Confers With Roosevelt and Bonaparte. NOT PLEADING FOR BRISTOL Prosecutor Refuses to Discuss His Mission. LUNCHES WITH PRESIDENT Denies He Went East on Bristol's Behalf but Will Come Direct to Portland Deadlock About Bristol's Successor. ' OREGONIAN NEWS BUREAU, Wash ington, Dec. 23. Francis J. Heney ar rived here this morning and took lunch with the President. Tonight " he had a conference with the ' President at the White House, but announced before and after that he had nothing to say either as -to the object of' his trip East, the subject of his conference or its result. Mr. Heney traveled from Chicago In company with Attorney-General Bona parte, but the latter stopped oft at Balti more, and is not expected to return to Washington until after Christmas. When he reached his hotel Mr. Heney was met by a large party of newspaper corres pondents, but in response to all Inquiries he smilingly replied: "I have nothing to say." At luncheon at the White House today other guests were present and public af fairs were not discussed, but tonight's conference Is supposed to bave had di rect bearing both upon the status of Dis trict Attorney Bristol and upon the prosecution of the land' fraud cases. In answer to a direct question whether he came East in Mr. Bristol's bhalf, Mr. Heney replied: "I did not." Fur ther than that he declined to make any statement other than to reiterate that the land: trials would begm January 13 'and that he himself would prosecute. AH ef forts to Induce him to go into details were without success. "When I tell you I have nothing to say it Is useless to ask me all manner-of questions," he answered, "for I'll not answer them." Mr. Heney expects to leave for Portland tomorrow night. DEADLOCK ON APPOINTMENT Bourne and Fulton Disagree on Successor to Bristol. OREGONIAN NEWS BUREAU, Wash ington, Dec. 23. Indications point to a deadlock In the Oregon delegation over the nomination of a man to succeed Dis trict Attorney Bristol. Senator Bourne is j expected to stand pat for jChris Schuebel, regardless of the intentions of the re maining members not to Indorse him. An effort will be made to have a . meeting this week with a view of making a rec ommendation before Senator Fulton leaves for Oregon. - He will leave here this week for New York and then go to Oregon to remain until the close of the recess. Mr. .Fulton saw the President this morning, but did not discuss the attor neyship. Ho declines to talk of F. J. Heney's visit. ARRANGES AVITH BONAPARTE Heney Says Trials Will Beginx. Jan uary, 13. WASHINGTON, Dec. 23. January 13 Is the date set for the " trial of the land fraud cases In Oregon. This announce ment was made tonight by Francis J. Heney, of San Francisco, the special representative ' of ' the ' Department of Justice, who has for some time been in- vestigating the Oregon land-fraud cases and - who will assist in conducting the trial of these cases. This decision was arrived at today at a conference between Attorney-General Bonaparte and Mr.. Heney, held on their way to Washington from Chicago, where the two men met. - Mr. Heney stated that a definite agree ment was reached between the Attorney General and 'himself In connection with the Oregon land-fraud cases, but further than the announcement of the date of the beginning of the trial Mr. Heney declined to tell the nature of the agreement. An important conference was held at the White House tonight between President Roosevelt arid Mr. Heney, at which the status of the land-fraud cases In Oregon was considered, but Mr. Heney declined to say what was the result of his tajk with the President. Mr. Heney came here by appointment to see the Presi dent. He expects to leave for Portland, Or., tomorrow. Motter Stands Good . Chance. ' OREGONIAN NEWS BUREAU, Wash ington, . Dec. 23. Frank Motter, ex reading clerk of the Oregon Legislature, Is one of nine candidates for reading clerks of. the United States Senate, to be given further trial in January. In his preliminary . test. Mr. Motter made a splendid impression and it Is said he stands a good chance of appointment. I i ! ) 5 ! 1 1- - s x A ' f - S I I" - "Li - 1 X f John M. Harlan, Associate Justice t I of the United States Supreme Court, I i Who . Celebrated His Thirtieth I J - Tear In That Position and. . His t I tiolden Wedding Yesterday. t NOT YET, BUT SOON I NO RECORD LEFT OF F11S DEALINGS Banker Admits De stroying All Papers. DONE TO HIDE OVERDRAFTS Grand Jury Learns Secrets of Hamilton Bank. . FROM PRESIDENT'S LIPS Two Days After Wrecked New York r Institution Closed, Montgomery Made Away With All Proof of Guilty Transactions. NEW YORK, Dec. 23. (Special.) Will iam R. Montgomery) president of the Hamilton Bank, which closed its doors on October 23 last and Is now In the hands of a receiver, appeared before the grand jury today and, while being examined under oath by Assistant District Attorney Isador J. Kresel, confessed: That within two days after the bank closed he removed frc-. It every voucher bearing bis name. That he took away from the bank every deposit slip showing, how his account stood at the time it closed. - Destroyed Every Record. That shortly thereafter he destroyed every slip of paper which would have ex plained his dealings with the Hamilton Bank. ' , - That he has not retained a single check stub showing, how and for what purpose his checks on the bank were drawn. That he never kept any book accounts while connected with the Hamllotn Bank. That on August 30. 1907, while he was a vice-president and a director of the bank, his overdrafts amounted to $12,950. That on or about September 8, 1907, his overdrafts on the bank amounted to (21, Oil ' - That later on his overdrafts were in creased to $34,000.- All of them, how ever, were paid7 up before the bank failed. Never Kept Account Book. The grand jury today commenced its investigation of the affairs of the Hamilton Bank, of which E. R. Thomas was president until three days before it closed. Mr. Kresel, after being told what had been rumored of Mr. Mont gomery's testimony, said: "Yes, what you tell me is true. I have questioned Mr. Montgomery and he admitted that within two days after the bank closed he took from It not only the vouchers, but also the deposit slips of his account, and when I asked him what he had done with them he said he had destroyed them. Now the grand jury cannot get hold of these papers. "But that is not all," continued Mr. Kresel. . "Mr. Montgomery has not even a checkbook,' he says. He declares he never kept a book of accounts while he was conneceed with the bank." Liable) to Fine and Prison. The Investigation of the bank's af fairs will be continued before the grand jury tomorrow. Mr. Montgomery will be given an opportunity tu explain, if he can how he came to destroy every slip of papur showing his dealings with the bank after the crash came. There appears no doubt that Mr. Montgomery is liable for overdrawing his account. Section 600 of the penal code provides that any bank officer Is guilty of misdemeanor who over draws his account or who asks or re ceives commission or gratuities from persons making loans. A misdemeanor is punishable by a fine of (500 or a year in the penitentiary or both. CALIFORNIA BANKS REOPEN Conditions Again Normal Except Certificates Still Circulate. SAN FRANCISCO. Dec. 23. The period of legal holidays declared by Governor Gillett to meet the recent financial strin gency having expired at midnight last Saturday, all the leading banks transact ed business as usual today. Normal con ditions prevailed and there was no Tun or crush of people anywhere. Many de posits were made and the withdrawal of funds did, not exceed the amount custo mary during a day's business. Clearing-house certificates continue In circulation, but when coin was required it was readily obtainable. Certificates were generally accepted and in only a few Instances was coin demanded and In sisted upon. The savings banks have the protection of from 30 to 90 days' notice required for withdrawals, but beyond the drawing of small sums with which to make Christ mas purchases, there wer few requests for withdrawals. "There has been little or no demand from country banks for shipments of coin. Which indicates that they are in good shape to take care of their business," said Mr. King, cashier of the Wells-Far-go-Nevada National Bank. E. W. Wil son, vice-president of the American Na tional said: "Business today is about the same with us as on any Monday during the past month, with a possible improvement. As a matter of fact, the balances of. the cli ents of nearly all the banks have been growing smaller since the holidays were declared because of the Inability of mer chants and others to make collections. I think the financial situation In this city would have been better had the holidays been declared off three weeks ago." At the First National Bank it was stated that, owing to the scarcity of gold, certificates would continue In circulation for some weeks yet, but that the smaller denominations were being rapidly retired. LOS ANGELES, Dec. 23. The suspen sion of legal holidays had., no apparent ..ef fect upon the business of this city today. Banks transacted business.- as usual' and there was nothing on the surface to In dicate any change In conditions. Clearing-house scrip is still largely used as a circulating medium. It has not been an nounced when the bankers will retire them. SQUEEZE COUNTRY MERCHANTS New York Banks Devise Scheme to Force Deposits. NEW YORK, Dec. 23. The Journal of Commerce this morning says: ('Commission houses and other whole sale distributors of New Tork are be coming restive under what they con sider distinct absence of appreciation by their Interior customers. During the recent panic, when it was impossible for these customers to purchase New York exchange, the wholesale trade here showed every possible considera tion, going so far as to accept -checks on their customers' local banks, In set tlement of accounts, and then holding such checks until collections were pos sible. "It appears that this system having once found a footing, has grown much in favor among the interior dealers, and out-of-town checks are. it Is under stood, forming a much greater propor tion of the remittance to New York than has .been the caso for years. "The contracts made by New- York merchants usually specifically call for payment In New York exchange, and there is a .distinct disposition on the part of the larger class of merchants to compel a full recognition of this re quirement. Any waiving of this pro vision possesses a distinct interest for New York banks, in that the country institutions iiavo less incentive to keep funds on deposit here so long as their customers are not buying Now York exchange, and this. In turn, encourages hoarding of unnecessary balances ithroughout the South and West by banks there located. New York banks are of the opinion that concerted action by New York merchants to demand New York exchange will do more to compel the out-of-town banks Immedi ately to discontinue their hoarding tac tics than anything else. The interior banks, it Is known, are averse to acting upon the suggestions or even the pres sure that might be brought by New York banks. Several large houses, the paper continues, will hereafter refuse to credit out-of-town checks until they have been collected. "Thu principal 'bankers unite in de claring that the financial trouble. wnicn tor a time caused some incon venience, Is a thing or the past." BANK OF CALISTOGA CLOSED Due to Financial Stringency and In- . stltution AV1I1 Reopen. SAN FRANCISCO, Dec. 23.-The Bank of Callstoga, Sonoma County, closed Its doors this afternoon. Its capital is (50, 000, and according to Its last report, July 31. it had deposits of $175,314. H. H. Brown, president of the bank, says the institution was closed on account of the financial stringency and that he thinks the institution will soon resume Grocery Firm In Trouble. NEW ORLEANS. Dec. 23. Following the resignation last night of William Adler as president of the State Na tional Bank of New Orleans, the ex amination by a clearing-house commit tee of the bank's resources and liabili ties and the announcement that it was absolutely solvent, and that the New Orleans Clearing-House Association will render It any assistance it may need, the wholesale grocery . firm of (Concluded on Page 3.)' HARDEN CHARGES BREAKING DOWN Frau von Elbe With draws Statements. CLEARING YON MOLTKE'S NAME Expert Withdraws Opinion Count Is Abnormal. DETECTIVES DEFEND HIM Nothing: Definite- Known Against Him Bismarck's Doctor Will Testify Against Fran von Elbe's Reliability. BERLIN, Dec. 23.-The hearing of the Harden-Von Moltke case was resumed here today, the morning session being he hind closed doors, but In the afternoon the court was opened to the public after the examination of Frau von Elbe, the divorced wife of Count von Moltke, during the course of which she modified her former testimony to such a sur prising degree as to influence the posi tion of the defense to a considerable ex tent, many of Harden's assertions against Von Moltke beolng based upon her pre vious declarations. Frau von Elbe withdrew some of her statements derogatory to Count von Moltke's character and gave to other statements she had made an entirely dif ferent meaning from that previously Im plied. Her physicians, being called to the stand, testified that she sulTcred from neuritis, and a medical expert. Dr. Hirschfeld, who at the first trial had de clared that Count von Moltke was abnormal, withdrew his expert opinion, which had been given after the sworn testimony of Frau von Elbe on that oc casion. Detectives who also were put on the witness-stand today gave evidence to the effect that nothing dvtlnlte was known against Count von Moltke relative to any abnormality. The court appointed one of the judges to proceed to Munich to take evidence against the reliability of Frau von Elbe from Harden's intimate friend. Professor Schweiniger. who was Chancellor von Bismarck's physician and who introduced her to Harden after hearing her sweeping assertions. The case was adjourned until Friday. OPEN HEARTS ID PURSES SAN FRANCISCO BANKS GENER OUS WITH CLERKS. Distribute $30,000 in Christmas Girts to Celebrate End of Crisis. Flood's Princely Charity. SAN FRANCISCO. Dec. 23. (Special.) Elated at the calm course of business to day, which marked the discontinuance of the holidays, the - local bankers opened their hearts and purses and by night their clerks and other employes were richer by (30,000. Almost every bank In the city rewarded its men for the long hours of toll during the recent trying days. The Crocker National Bank led off this morning, when a ' yellow envelops was placed on the desk of every employe. It contained an 'amount equivalent to one month's salary.. The amount thus dis- ' trbuted exceeded (10.000. The Crocker in terests are very large and they rewarded in a similar fashion their employes In other lines. Other banks have generously treated their men. Some added turkeys to the presents of gold. Others added boxes of fruit. The Merchants Exchange gave every one of Its employes a big, fat turkey. It employs 100 people. One mercantile firm provided every one of its employes with . all the things that go to make up a Christmas dinner turkeys, vegetables, fruit and pies. The Standard OH Company distributed a large sum among Its local employes. The donations to charity were as heavy this year as usual. James L. Flood dis tributed (6500 today among 10 charitable ' Institutions of the city. No discrimination was made on sectarian grounds. Pro testant, Hebrew and Catholic charities shared alike. The usual Christmas dinners to the poor, the orphans, cripples and others began today and will continue on a greater scale than ever until after Christ mas. RUN DOWN AT CROSSING Woman Killed While Doing Christ mas Shopping; at Berkeley. BERKELEY, Cal., Dec. 23,-Mrs. Annie E. Smith, widow of the late Rev. M. O. Smith, a Presbyterian clergyman, was run down and Instantly killed by the Southern Pacific local train on Shattuck avenue, before the eyes of her horrified niece, Mrs. B. R. Boweron, and a hun dred frantically helpless people on the street. The two women were doing Christmas shopping. The accident occurred In the heart of the business district almost on the spot where 13-year7old Harold Wag ner was run down Saturday.