VOL. XLVI. NO. 14,691.
PORTLAND, OREGON, WEDNESDAY, JANUARY 8, 1908.
PRICE FIVE CENTS.
SCHUEBEL PUTIN
BRISTOL'S PLACE
Bourne Wins Victory
at White House.
FIGHT MAY COME IN SENATE
If Fulton Should Decide to Op
pose Confirmation.
HAS NOT CHOSEN COURSE
J on lor Senator Will Be at Disad
vantage If Fulton lights, for
Fulton Is on Committee
and Has Many Friends.-
OREGONIAN NEWS BUREAU, Wash
ington, Jan. 7. The President today sent
in the nomination of Christian Schuebel
of Oregon to be District Attorney for
Oregon, vice W. C. Bristol, whose nom
ination has been withdrawn.- Mr.
Schuebel's sole endorser -was Senator
Bourne, his colleagues having ignited in
recommending Georgo G. Bingham, of
Salem. Why the President chose Mr.
Schuebel with one endorser as against
Mr. Bingham with three is not stated,
but It is evident that Mr. Bourne's fre
quent visits to the White House have
been to good purpose.
Whether or not Mr. Schuebel will he
confirmed is another -matter, depending
upon the attitude taken by Senator
Fulton when he arrives. Mr. Fulton and
the House members looked upon Mr.
Bingham as better qualified than Mr.
Schuebel because of his longer experi
ence in law and general endorsement by
the Oregon bar.
May Be Fight in Senate.
If Mr. Fulton should oppose the con
firmation of Mr. SchuebeJ. there will be
a- most Interesting "scrap" in the Senate,
for Mr. Schuebel's nomination-has been
referred to the judiciary committee, of
which Mr. Fulton is now a member and
which has always been most friendly to
him, as evidenced by its course regard
ing Mr.. Bristol. It would require very
shrewd maneuvering on the part of Mr.
Bourne to have Mr. Schuebel confirmed
over Mr. Fulton's protest. But it Js not
known that Mr. Fulton will enter any
objection.
Representative Hawley, who joined
in indorsing- Mr. Bingham, has no
knowledge of what course Mr. Fulton
will pursue, but as far as he himself is
concerned, is greatly disappointed at
the rejection of Mr. Bingham. How.
eve;, the case has passed now beyond
his Jurisdiction, and remains to be set
tled by Mr. Fulton and Mr. Boure.
Should a fight be made on. Mr. Schuebel,
probably Mr. Firlton could secure an
adverse report from the judiciary com
mittee and, once the matter was taken
to the floor of the Senate, Mr.iBourne
would be at a marked disadvantage,
for Mr. Fulton la very popular, In the
Senate, and by his longer service could
muster a strong array of friends on his
side.
Points Against Bourne.
Furthermore, Mr. Bourne's close alli
ance with the President and his agita
tion for a third term for Mr. Roosevelt
have not strengthened him in the Sen
ate. These things would all operate
against Mr. Schuebel! should Mr. Ful
ton make a fight; but, as stated above,
no intimation has been received here
that Mr. Fulton will pursue that
course.
Mr. Bourne today denied that he had
ever entered Into an agreement with
his colleagues to support for office such
candidates as were indorsed by ' the
majority of the delegation. He said he
would support, no man whom he con
sidered unfit, no matter Vhat the ma
jority of the delegation might do.
AFked If he regarded Mr. Bingham as
unfit or incompetent, he said he did not
even know Mr. Bingham.
Bourne Gives His Reasons.
Mr. Bourne tonight gave out the fol
lowing statement:
"Doubtless the President as well as I
will be adversely criticised . by certain
people on account of the appointment of
Mr. Schuebel, but the action was not
taken unadvisedly by the President or
myself. While fiicre is no foundation for
statements heretofore made that Mr.
Schuebel's appointment was being urged
by me In liquidation of an election obliga
tion, either to him or to his partner, Mr.
U'Ren. it is true that I have urged the
appointment In a measure in recognition
of his services to the Republican party.
but chiefly and primarily on account of
his personal honesty -and integrity and
my firmly grounded faith in his legal
attainments, based on Indorsements of
judges In whose courts he has practiced.
Yet over and above all this, the con
sideration with me has been, as I be
lieve It has been the determining- con
sideration with the President, to give
recognition to the principles for which
Mr. Schuebel stands, and for which his
partner. Mr. U'Ren, has made a most
heroic and unselfish battle for a bet
ter system of laws In our state, for
clearer administration and for a square
deal. I am aware that after Mr. Scheu
bel becomes United States Attorney the
baser passions of some men may be in
yoked to cast stumbling blocks In his
way, but he will be fully sustained by
the Administration ' and the Depart
ment of Justice in the vigorous and
disinterested execution of the law.
, "It has been charged, and probably
will again be charged, that Mr. Scheu
bel has been engaged in efforts to
undermine W. C. Bristol. In that re
lation I quote Mr. Scheubel's letter of
November 20, 1907, in which he says:
. It has been said by so ike that my applica
tion is an Injustice to Mr. Bristol and that
my friends and I were endeavoring to se
cure' Mr. Bristol's rejection, so that a va
cancy mtg-ht occur for my benefit. I was
informed last Spring, on what I had reason
to believe was good authority, that Mr.
Bristol would retire from office about the
end of this year In pursuance of some un
derstanding or agreement. I made applica
tion to you. believing this was true.
I have the highest regard for Mr. Bristol
as a man and a lawyer and would not. nor
would I aak any friend to,, do anything
towards removing a public officer or creat
ing a vacancy in the public service In order
to make a place for me. My relations with
Senator Fulton have always been very
friendly and I do not wish the misunder
standing between Mr. Fulton and Mr. Bristol
to affect my friendly relations with either.
Neither do I wish to be understood as trying
to involve yourself or any friend of mine
In their misunderstandings for my advan-
y'y V? )"" I
:: ;
Chris Schuebel, of Oregon City, ap
pointed United States District-Attorney
-eh recommendation of
Senator Bourne.
tsge. I only ask that, if a vacancy occurs.
- ray name be considered and that I be .given
a square deal and no star chamber proceed
ings, as I believe that the Presi'dent means
what he says, that every man Is entitled to
a square deal.
Prefers Harmony in Office.
To show that Schuebel was not' asking
for the appointment at the expense of
harmony in the delegation, Mr. Bourne
quotes a letter of -.r. Schuebel, written
December" 3, while on his way home, in
which Mr. Schuebel says:
I knew that I could and would flU the
office with credit, should 2 be. .selected.. .but
-it Is more Important -to. -th .-States .-Qre-gon
that the delegation should be united
and working In harmony than that I should
succeed in my ambition for the appoint
ment ' of District Attorney. I would sug
gest that, should you deem It necessary
for harmony in the delegation and tor the
beat interests of' the state, you withdraw
my name as a candidate, and I hos the
delegation may unite on a good, clean, com
petent man to fill the position. .
Indorsed by Four Judges..,
Mr. Bourne says it is nothing to Mr.
Schuebel's discredit to be young in
years and in his profession. He quotes
a letter from Judge Thomas McBride
strongly recommending Mr. Schuebel's
appointment, and speaking highly of
his qualifications and character. Judge
McBride says , Mr. Schuebel's appoint
ment would be good politics. The Sen.
ator also quotes a letter of indorsement
from Judge Frank A. Moore, Judge G.
E. Hayes and Judge G. B. Dimlck, also
a long letter of recommendation ' from
W. S. U'Ren, which concludes as fol
lows: "I ahall esteem your recommendation
as a personal favor, which I shall be
very glad, to remember, when, oppor
tunity serves." ' -In
conection, Mr. Bourne says:
"Mr. Schuebel's appointment. has
been insisted upon by me in recogni
tion of the fact- that he stands for
tirose higher Ideals in civics for wTilch
the President himself also stands, and
I unhesitatingly predict that he will
make an able, high type of public
servant." ,
WILD XOT AFFECT LAXD TRIALS
Heney Says Schuebel. Is Friend of
Prosecution.
TUCSON. Aria., Jan. 7. Francis J.
Heney, the special Government prose
cutor, when asked about the appointment
of Christian Schuebel as United - States
Attorney for Oregon., and about the res
ignation of Jamea Cole. Assistant United
States Attorney, said:
"This appointment and resignation will
not change the plans of the prosecution.
Mr. Schuebel is friendly toward the pros
ecution and is a friend of Senator
Bourne, of Oregon. The land-fraud cases
will be taken up Monday."
SCHVEBELS OREGON CAREER
Began as Workman and Became
Lawyer by Evening Study.
If the appointment of Schuebel is con
firmed by the Senate in the next few days,
Bristol's successor will he able to furnish
the required bond, take the oath and
assume the office in a week or 10 days
after. Should the confirmation of the
appointment be defeated by Fulton,
Schuebel will find himself In the same
predicament- that Bristol has been in
since he was first appointed by. the Presi
dent to the office two years ago. last De
cember. -
"This afternoon I -received a telegram
from Senator Bourne advising me of my
appointment," said Mr. Schuebel, who was
in Portland last night. "No, I do not
expect -any opposition from the other
members of the Oregon delegation. Both
Senator Fulton and Representative Haw
ley have assured me that they had no op
position to me personally, and I was fur
ther assured that should I be appointed
to the office I would receive no further
opposition from them.
"My appointment carries with it not a
single pledge as to how I ' shall conduct
the affairs of the office. I am un
pledged, and there are no strings
attached to me. There were no
(Concluded on Page 5.)
HENZE
INDICTED
FOR BANK FRAUD
Checks for $400,000
Over-certified.
TO HELP HIS BROTHER OTTO
Famous Copper . . Mineowner
Liable io Go to Prison.
FIFTEEN CHARGES MADE
Used Funds. of Mercantile National
Bank in Vain Effort to Stop
Slump in United Copper,
Started by "Friends."
NB YORK, Jan. 7. Indicted by the
Federal grand Jury for over-certification
of checks representing in the aggregate
over $400,000, drawn by the firm of Otto
Heinze & Co., oh the Mercantile National
Bank, F. Augustus Heinze, the copper
magnate and ex-president of the Mercan
tile National Bank, surrendered himself
to United States Commissioner Shields
today and later was released on $50,000
ball. . Heinze will be formally arraigned
to plead to the indictment by Judge Chal
fleld in the United States Circuit Court
tomorrow.
Edward Lauterbach, counsel for Heinze,
stated tonight that his client did not wil
fully over-certify the checks, as he had
drawn a check to the credit "of Otto
Heinze & Co. for the amount of "00.000,
which the bookkeeper of the bank possi
bly failed to enter on the. books until a
day after the certification of the checks
In question. , -
'. Aftermath of Copper Smash.
Thjs indictment by the Federal , grand
Jury, which' has" been investigating the
Mercantile and other banks identified with
the Jielnze and Charles W. Morse inter
ests, is the aftermath , of the collapse
of the Heinz pool in.f . United Copper,
which brought about' Oie " suspension'' of
Gross & Kleeberg, stock brokers, and re
sulted in the resignation of F. A. Heinze
from the presidency and the retirement
of the directors of the Mercantile Na
tional Bank after an examination of the
institution had been made by the .clearing-house.
He declared at the time that
he had been betrayed by his friends in
the United Copper pool.
.Heinze had been- Informed quietly that
indictments charging him with the over
certification of IS checks, all drawn on
October 14, Just . before the smash in
United Copper had been found by the
Federal grand Jury on . December" 2, and
that his appearance' would be required
today. Without awaiting' the service of
a - bench warrant, Heinze, in company
with his counsel, appeared before Com
missioner Shields' this afternoon. The
proceedings were short. Heinze pleaded
not guilty and bail was furnished Imme
diately by a surety company. When
THIS IS
these proceedings were concluded, Heinze
told the newspaper men that he did not
care to make any statement, and hurried
away with, his counsel. ' .
Denies Wiirul Wrongdoing..
' After the examination of the indict
ment, which contained 30 counts, Mr.
Lauterbach tonight made the f ollowing
statemeht: : .
The Indictment Is based upon certification
of fifteen checks amounting to something
over 5400.000. drawn by Otto Helnse ft Co.
on October 14 last. Before the certification
was made F. Augustus Heinze obtained the
discount of a note -of . $500,000 secured- by
abundant Stock Exchange collateral, worth,
at the market rates of that day, more than
800, 000, and drew his check (or $500,000
to the credit : of ' Otto Helms & Co.. the
amount of which should have been passed to
their credit, as I think it was.- There cer
tainly was no wilful Intent within the statute
to- over-certify any check, not .even to the
extent that over-certification is practiced'
every day in Wall Street by all. the banks
as a matter of business necessity. On the
contrary, as I have stated, there was far
more than the amount of the checks stand-
" '7 '
i kJ--sw' :
F. gustos Heinze, who has been ar
rested for fraud In connection with
the Mercantile National' Bank of
New York,
lng to the credit of the account of the
drawers -of the checks when fhey were cer
tified. I believe that. If the grand Jury
could have understood the situation cor
rectly, ao indictment would have been
found.
Liable to Severe Penalty,
The Indictment specifically charges
that Heinze, while president of the
Mercantile National Bank, over-certir
tied fifteen checks, that is, that he
guaranteed by the bank signature that
the- sums indicated in the checks were
held by the institution ti.the credit ot
the . drawers. To. over-certify. bank
paper is, under the Federal statute, an
offense punishable by Imprisonment of
not less than five years and not more
than ten years. -
' One count is devoted to each of the
checks involved.. It is alleged that
Heinze knew that Otto Heinze & Co.
did not have that sum to Its credit.
The, sixteenth count - charges that
Heinze intentionally applied the funds
of the bank, and. without the knowl
edge of the directorate, to the payment
of the fifteen checks drawn by Otto
Heinze & Co., and knowing that the
company did not have on deposit a sum
equal to the' amount named In the certified-checks.
For such an offense the
Federal, statutes provide a penalty of
not less than five years' Imprisonment
or a fine of not more than $5000, or
both. The cheeks certified to by Heinze,
according to the indictment, were as
follows: ' '
Gross & Kleeberg, $62,761; H. T.
(Concluded on Page 2.)
THE WAY' IT LOOKS
OFFERS BILL FOR
MORE
CURRENCY
Aldrich Submits Plans
to the Senate.
PUTS LIMIT AT $250,000,000
Secured by Government,
State and City Bonds.
EARLY PASSAGE EXPECTED
Democratic Aid Welcome, if Forth
coming, Otherwise Republicans
Will Force Bill Through Tax
on Emergency Notes.
FOWLER OPPOSES HI I.I- -WASHINGTON,
Jan 7. When asked
for a statement today as to bis opinion
regarding the efficacy of bonds other
than .those Issued by the Government
as security -for National bank' circula
tion as proposed by the Aldrich bill.
Chairman Fowler, of the House bank
ing and currency committee, replied
by Quoting a number of authorities in
opposition to such a plan. He re
fused to sdd any expression of his
own, but his manner was such as to.
leave no-doubt as to his opposition to
the measure.
In view of the fact that the bank
ing and currency committee will handle
the bill for the House. If It passes the
Senate, the attitude of Its chairman Is
considered significant.
WASHINGTON, Jan.. 7. Aldrich today
introduced In the Senate the currency.
bill, providing for the issue of not over
$250,000,000 of circulating notes, which for
some time has been under consideration
by Republican members of the Senate
committee on finance. At hi request the
bill was read and careful attention was
awarded the reading.
. "I have asked that the bill be read."
said Aldrich. after the reading had
been completed, "in order that the Sen
ate may at once be informed of its pro
visions. I have been' authorized by the
committee to say that the committee will
receive and give careful consideration' to
bills sent to it having the same purposes
in view that are sought in the bill that
has been read, and I have to request
Senators who have such bills to present
them at as early a time as possible."
Culberson asked for information
about his resolution, which had been sent
to the committee on - finance, directing
that committee to inquire into the causes
of the recent financial stringency.
"The committee has been busy," Aid
rich replied, "and has not had time to
take, up that matter." He added that the
committee had not yet received the in
formation called for from the Treasury
Department by the resolution, which
passed the Senate previously to the
TO SOME
Christmas recess. Aldrich said . that he
would see that Culberson's resolution is
Included among those taken up by the
committee at Its next meeting, on Tues
day, January 14.
Try to Win Over Democrats.
It is understood that all Republican
members of the committee are in favor
of the measure except Hansbrough, who
believes that a central bank will best
solve the difficulties of the country on
the currency situation. He has himself
introduced a bill providing for a central
bank at Chicago, and intends. It is be
lieved, to uphold that idea with vigor.
Republican leaders in the Senate; as a
whole, are hopeful of the early passage
of the Aldrich bill. They declare that
while they are anxious that it should not
be a partisan measure, yet, if Democratic
opposition should be developed to the Re
publican plan for such legislation, they
will proceed to put the bill through the
Senate as a party measure.
Aldrich has been In conference with
so many of the Senate leaders that his
Ex-Governor John C. W. Beckbam-, of
Kentucky, around whom the fight
for Senatorship rages.
bill has hot come to them as a surprise.
It Is expected that there will be Demo
cratic criticism of the bill, and Repub
licans declare that they are ready to ac
cept any reasonable amendment from
that source that may result in making
the bill as nearly nonpartisan as possible.
The bill will not be considered by the
committee on finance until next Tuesday,
Aldrich purposely allowed a week to
elapse between the Introduction of the
bill and its consideration, in order to give
ample time for . its consideration. . He
said it was his purpose, when the bill
was reported,, to make a statement in ex
planation of the matter and as to what
it would accomplish. ,
Provisions of the BUI.
Following are the first three sections of
the bill:
. That any National banking association
which has circulating notes outstanding, se
cured by the deposit of tTnlted States bonds
to an amount of not lees than 50 oer cent
of Its capital stock, and which has a sur
plus of not less than 20 per cent may make
application to the Controller of the Cur
rency for authority to Issue additional clr.
culatlon to be secured by the deposit of
bonds other than those of the United states.
The Controller of the Currency, If In his
judgment business conditions demand such
additional circulation and the condition of
the association making the application war
rants the Issue, shall nx the amount, within
the limitations hereinafter Imposed, of such
additional circulating notes to be issued.
Whenever, after receiving notice of such
Concluded on Page 8.)
CONTENTS TODAY'S PAPER
The Weather. .
YESTERDAY'S Maxim u in temperature.' 47
decrees;- minimum, S4 -degrees. '
TODAY'S Occasional rains; southerly winds.
. a Foreign. ,
Steamer Mount Royal arrive at QueenMown
- after battle with hurricane. Pa? e a.
Bank of Yucatan robbed ot $740,000 by officers.-
Fare 5.
National.
President appoints Schuebel United States At
torney for Oregon. Page 1.
Emerrency currency bill introduced by Sen
ator Aldrich.- Page 1.
Congressman Wilier accuses : Roosevelt of
causing panic. . Page S.
BIU to reorganire- Navy Department. Page
Ballinger gives notice of resignation. Pae ft.
Japan decides on Takahira as Ambassador
to United States. Page 2.
Domestic.
New York rent strikers threaten to burn
tenements. Page 2.
Fish says he has proxies for majority of
Illinois Central stock. Page 8.
Helne arrested for falsely certifying his
. brother's checks. Pare 1. -Three
Jurors finally accepted in Thaw
trial. Faze 4.
Three dead, two fatal." !njured In wreck
on Southern railroad. Page 2.
Philadelphia priest connects Hibernians
with Molly Magulres and refuses to con
duct funeral they attend. Page 1.
Pacific Coast.
Walker to have immunity for testifying
against fellow bank wreckers. Pase 2.
Two Seattle men fight duel to death at
San Francisco. Page 4,.
Because leather strap is not whp, Supreme
Courts annuls entnce of man .who beat
a woman. Page .
State warrants cashed a,t par ,all over
, -. United States. Page ft.
Mayor Moore will close Spokane tighter
than a drum. Page 7.
Walla Walla rector grows sarcastic. Page 0.
Commercial and Marine, r '
Oregon prunes suffer in the Cast.' Page 15.
Revival of Interest In Boston wool market.
Page 15.
Wheat values affected by foreign declines.
Page 15. . ( . '
Profit-taking weakens stock market.
Page 15. '
British ship Port Patrick strikes the beach
near Grays Harbor and reaches Royal
Roads badly crippled. Page 14.
Portland and Vicinity.
Woman held up and beaten In daylight on
East Side bridge. Page 14-
Attentlon of manufacturers called to ship
ping needs ot Tillamook Bay. Page 7.
Many voters ajgn books on second day of
registration. Page 11. ,
City Auditor would have corporations report
'inside" facts. Page 14.
R. R. Thompson, pioneer steamboat man of
Pacific Ntorthwest. critically III in San
Francisco. Patce 11.
Typographical Union gives hall to cele
brate -5th anniversary. Page 10.
iy - A
ir '1 ' jy
' . .r'" i
an t iilwiwrinn' ffl" rrst sssttwriMiiiMMf
CONNECTED WITH
MOLLY WIAGUIRES
Priest Accuses Order
of Hibernians.
BARS THEM FROM FUNERAL
Will Not Conduct Services if
They Attend.
SAYS HE CAN GIVE PROOF
Gets Information From Condemned
Members and Embodies It in a
Memorial, Which, He Alleges,
' Is Kept Secret by Influence.
PHILADELPHIA, ' Jan. 7. Members of
the Ancient Order ot Hibernians were
stirred today through the refusal of Rev.
D. I. McDermott, . rector of St. Mary's
Roman Catholic Church, to permit
funeral services to be held in bis ciiurch
over the remains of John Daly, a parish
ioner, because a Hibernian lodge had
been Invited to actend the obsequies. The,
funeral was held after the. Invitation to
the Hibernians had been revoked.
Father McDermott, in explanation of
his opposition to the society, said:
Connected With Molly Magulres.
"My absolute opposition to the Ancient
Order of Hibernians is based .n my
knowledge and the facts in my posses
sion about the Molly Magulres, which I
got directly from the condemned Molly
Maguires themselves. No power on
earth will ever make me recede one inch
from my stand against the Hibernians.
I have given my testimony against them
and what I said was true and is true, and
I cannot compromise on It.
"I have on my desk a memorandum
which I was directed to prepare, pre
senting the facts in my possession, to
be .read, before tha third plenary coun
cil In Baltimore. . After I had prepared
the document, under the direction of
Dr. Corcoran, I was called before
Archbishop Ryan here and asked to
read it to him. He declared that it
contained features that would cause
one of the greatest scandals the Cath
olic church has ever known, and in
formed me he would use his influ
ence against Having it submitted be
fore the council. fc
Memorial Does Not Reach Council.
"I sent the memorial to Dr. Cor
coran, regardless o? Archbishop-Ryan's
opposition to It. But through the in
fluence 'of Cardinal Gibbons and Arch
bishop Ryan, during the sessions of the
council -in Baltimore, the memorial
never reached the council.
"Archbishop Ryan and a number ot
other prominent clergymen are aware
that the facts X have In my possession
against the Ancient Order of Hiber
nians are , true; that If made known
they will cause- the greatest kind of
a scandal, and I have a mind to give
them to the public."
Archbishop Ryan, when questioned
concerning Father McDermott's state
ment, replied that he did not care to
discuss the matter In- any way.
BE
E
TESTIMONY AIDS GREATLY IX
BANK INVESTIGATION.
So Far Six Indictments Returned
Against Three Officers and Direc
tors of Wrecked Deposit Bank.
SAN FRANCISCO, Jan. 7. David P.
Walker, former president of the Insolvent
California Safe Deposit & Trust Com
pany, was a- witness before the grand
jury when that body, reconvened this
afternoon to resume its investigation inta
the affairs of the wrecked bank. Six in
dictments have so far been returned
against officials and directors of the trust
company one each against J. Dalzell
Brown geieral manager and W. J. Bart
nett, vice-president, charging embezzle
ment of $205,000 worth of securities be
longing to-, the Oolton estate; two Indict
ments against Jafes Treadwell, director,
and one each against Brown and- Bart
nett, charging embezzlement in connec
tion with the making of loans to them
selves. All three are still in the County
Jail, unable to get ball.
It Is understood, although Assistant
District Attorney William Hon Cook Is .
silent on that point, that Walker will be
given Immunity by the prosecution and
that no indictment .will, be returned
aglnst him, it being considered that what
ever his culpability, It was negative and
consisted principally of negligence In
regard to the conduct of the bank, which,
the investigation has shown was in tha
hands of Brown and Bartnett, Walker
having taken little active part. The for
mer president's voluntary statement, ha.1
helped the 'prosecution considerably and
the fact that he was called before th
grand jury by Cook is regarded as. )
dicative that he will not be prosecucl
Assistant District Attorney Cook sta d!
that the grand Jury' would not finish :-
investigation until Friday and that no .
further indictments were expected until
then. -
l L-l l rr s- j