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.