jftetW j1 ttpttt
VOL. XIVL SO: 14,G93.
PORTLAND, OREGON, FRIDAY,. JANUARY . 10, 1908.
PRICE FIVE CENTS.
3GHM1TZ VERDICT
IS DEGLARED VOID
Court Says Grafting Is
Not Crime.
DUNNE DENOUNCES DECISION
Threat to Hold Up Licenses
Only Moral Wrong.
PROSECUTION WILL GO ON
Court, Which Dunne Says Has Rel
'atives and Friends Among Indict
ed, Finds Aery Many Errors.
Sehmlli to Be Tried Again.
DCNNB SAYS Jl DOM BIASED.
8AN FHANCISOO, Jan. 9. Suv
perlor Judge Dunne, before whom
Schmitz was convicted and Ruef
pleaded guilty, did not heatltate to
criticise the action of the Court of
Appeals- He said:
"It is to be regretted that the
hearing of this appeal came up before
a court whose members have rela
tives and intimate friends against
whom many Indictments were re
turned by the grand Jury that re
turned these true bills. In view of
these facts, I do not believe that the
court was in the proper frame of
mind to give this matter an Im- .
partial consideration and decide it
strictly upon its merits. I am satis
fied that the evidence and the law
sustained the Judgment and the
verdict.
' will further say that the "Jury
which returned this verdict in ac
cordance with the evidence and the
law will - be remembered with re
spect and honor In the community
long after the cuurt which set aside
the verdict has been forgotten."
SAN FRANCISCO, Jan. 9. "The Judg
ment and order are reversed and the
Trial Court is directed to sustain the de
murrer to tbe Indictment, and discharge
the defendant as to such indictment."
This was the decision handed down to
day by the District Court of Appeala re
versing the judgment of the Trial 'Court
In the case of ex-Mayor Schmitz, sen
tenced to five years in San Quentin on
the charge of extortion based upoA the al
leged "holding up" of the French res
taurants in the matter of liquor licenses
and setting aside the indictment on which
his conviction was had.
The trial was made notable by the ap
pearance of Abraham Ruef, the political
dictator who controlled the municipal ad
ministration, and - practically- placed
Schmltx In office, as a witness against the
Mayor, testifying that he had paid to
Schmitz J2500 of the 16000 received by Ruef
from the French restaurants, - in order
that SchmiU would permit the Board of
Police Commissioners to issue 'liquor li
censes to them. Ruef had, previous to
this, dramatically pleaded guilty to the
came charge, at -the-same time-making
the enigmatical statement that he was In
nocent. Sellouts' Threat "ot Illegal.
On the ground that the Indictment did
not show that a public offense wu.com:
mitted, because it did not allege any
threat to Injure property, the court hold
ing that a liquor license was not prop
erty but mere permission; that a threat
to prevent the obtaining of a liquor li
cense by one who had no authority in
the premises did not constitute a threat
against property, and because of numer
ous errors In the ruling of the trial
judge Superior Juage Frank H. Dunne
the Appellate Court held that the Indict
ment was Invalid and the conviction null
and void. In effect, the court held that
Schmitz was not given a fair and im
partial trial.
Many Errors In, Trial.
Among the errors of the Trial Court
enumerated as cause for reversal by the
Appellate Court, in its decision, contain
ing about 12,000 words, are the following:
That the court under the defendant's ob
jection, allowed the prosecution to challenge
peremptorily two Jurors after they had been
accepted and sworn, without any proper
cause being shown or even stated; that the
court permitted the filing of affidavits dis
qualifying the Sheriff and Coroner as offi
cers to take charge ot the Jury and ap
pointed an elisor for that purpose before the
affidavits-were first served upon the defend
ant, and refused to allow the defense to file
counter-affidavits showing the elisor named
by the court was prejudiced, biased and a
personal enemy of the defendant; the ad
mission foy the court of the hearsay evidence
of five witnesses; that the court admitted
the testimony of Ruef in rebuttal when It
did not constitute evidence in rebuttal and
upheld the prosecution in improper cross
examination of the defendant, and that the
court erred In overruling the defendant's
demurrer to the Indictment.
While the decision was not wholly a
surprise, even to the prosecution, and
had been freely predicted by SchmiU'
friends for some time, it did not fail to
cause something of a sensation and was
the sole topic of conversation today.
Heney Loses Hold on Ruef.
The decision will have the effect of
invalidating the other four indictments
'charging Schmitz as well as Ruef with
extortion, and renders void the plea of
guilty made by Ruef, as the Appellate
Court held that no crime was committed.
By this reversal it is feared that the
prosecution has lost its hold upon Ruef,
and It was freely predicted tonight that
the former political boss would now re
fute all overtures of immunity, wholly
or in part, to testify in the bribery-graft
cases, and fight every indictment against
him.
Although the court ordered SchmiU dis
charged from custody on the extortion
indictments, neither Schmitz nor Ruef
can take advantage of the reversal fur
60 days, and even then there is little like
lihood that either of .them, will be able
to get the enormous bail required for
their release. There are still pending
against Ruef 136 indictments charging
bribery, on which the total bail iB $1,170,-
000, and Schmitz would have to get bonds
for $450,000 on the indictments that re
main against him. The prosecution has
20 days in which to ask the Appellate
Court for a rehearing ot the appeal and
the court has 10 days in which to decide
the -motion. The appeal would then go
to the Supreme Court, where the same
length of time would be required before
the decision of today can go into effect.
Kef uses to , Dismiss Appeal. -
The judges of-the court -which rendered
the decision- are: J. A. Cooper, Frank
H. Kerrigan and Samuel H. Hall. The
decision was written by Justice Cooper
and reads in part as follows : -
The defendant waa. tried and convicted of
the crime of extortion. Atter the verdict of
the Jurv on July 8 he made a motion for a
new trial, which was denied, and thereupon
the court pronounced Judgment, sentencing
Engeie E. Schmltx, ex-Mayor of
San Francisco, Whmte Indict
ment for Extortion In De
clared Invalid on Appeal.
him to the state prison for five years.
Thereafter, on the same day. the defendant
served upon the District Attorney a notice
of appeal from the. Judgment and from the
order denying the. motion for a new trial,
and then immediately filed the same with
the clerk.
The District Attorney ' meved to dismiss
the appeal on the ground that the notice
was served before It was filed, and also be
cause the appeal was taken bere the Judg
ment was entered. . .
The court dismisses both of these mo
tions after lengthy treatment of the mat
ter. . . . :. . -.
Then - the decision goes on to examine
the alleged error of the lower court dur
ing the trial. The opinion comments on
Judge Dunne's -ruling and says he erred
In admitting hearsay evidence.
"In our; opinion," says Judge Cooper,
"the cross-examination was entirely Im
proper and was not confined to the mat
ters on which the defendant was exam
ined in chief."
This has reference to the . answer
SchmiU gave in regard to the payment to
him .of. .part, of .the .$500. .contributed by
the restaurants.
Questions Wrongly Ruled Out.
- .'-
The attorneys for Schmitz had at the
trial "questioned Ruef 'as to whether he
was testifying in expectation .' of im
munity. Judge '.Dunne- refused to permit
any of these questions to be-answered.
(Concluded on Page '6.)
CONTENTS TODAY'S PAPER
' " The Weather.
YESTERDAY'S Maximum temperature. 62
decrees; .minimum, 3D decrees.
TODAY'S Ooeasional ". rain; easterly wind,
becoming outherly. "
Forri.
Abymlnlana capture town In Italian eolony
and exterminate a-arrleon. Page 1.
Pope flrida new obstacle to appointment of
, Dr. Hanna a bishop. Page 4.
Rational.
Bonaparte' noon'.to announce suit to dissolve
, Harriman merger, rage 1.
Hale offers bill to reorganize Navy Depart-
; ment and Increase pay. Page 4.
Serious division In House committee on cur
rency bill. Page IX.
Politics.
Taft writes letter telling policy on Injunc
tions. Page 5.
Whitney faction of Massachusetts Demo
orats prepares to send contesting- delega
tion to Denver. Page S
Governor Hughes to make record on two
bills in Legislature. Page 1.
Domestic.
Only Mvan Jurora secured for Thaw" trial.
Page 11.
Captain Carter's $400,000 gained by graft
awarded to Government. Page 6.
Glover contemplates suit to test Mrs. Eddy's
sanity. Paa-e 6-
Maloney sues to have his daughter's mar
riage to Osborn annulled. Pag-e 1.
V Pacific Coast.
California Court of appeals annuls sentence
on Schmits. but prosecution will try him
again. Page 1.
Heney promises facta about Fulton at Hall's
trial. Pag-e 6.
Wife and son of Portland preacher killed In
California train-wreck. Page 5.
Washington State Federation of labor aenda
ultimatum to Seattle fair board. Pag-e 7
State Grain Commission severely criticised
at Pullman. Pag-e 7.
Traveler dies from exposure In Olympic
Mountains. Pare 7.
Winifred Kelly returns home; why aha left
Eugene. Page 13.
Commercial and Marine.
Reported attempt to corner California prune
supply. Page 17.
Wheat prlcea strong and higher In the East.
Page 17.
Stocks advance owing to Improved financial
situation. Page 17.
Government appoints a tea Inspector for
Portland. Pag-e 1$.
Fartland and Vicinity.
Harbormaster Speier will aid Rose Festival
Association, page &
W. M. Latld signs agreement with Title
Trust depositors, page 10. -Multnomah
Club holds annual banquet.
Paige 12-
Senator Fulton's friends will con tee t legla-"
lative campaign. Pag 11. r
it ::
f . 4 KV::
it 7 - '4 'c-
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ml
ANNOUNCE
HARRIMAN SUIT
Bonaparte to Proceed
Against Merger.
STRONG EVIDENCE AT HAND
Can Prove Union and Southern
Pacific Did Compete.
MONOPOLY REACHES OCEAN
Steamer Competition on Oriental
Route Killed If Criminal Charge
is Made Against Harriman
It Will Be Separate.
WASHINGTON. Jan. 9. (Special.)-
Attorney-General Bonaparte will in .a
few days make an of ficlal . announce
ment regarding- the Government's posi
tion towards the control of the Union
Pacific through stock ownership of the
Southern Pacific Railroad. Hi is
awaiting the return from Europe cf .the
special counsel employed in the case,
who was unexpectedly called abroad by
private business. From Information
obtained at the Department of Justice
the statement will probably be the an
nouncement of the filing at Omaha or
some Western city of proceedings to
test the lawfulness of the arrange
ment.
As With Northern Securities. -.
As with the Northern Securities
Company," when the Department of
Justice, upon information collected by
the Interstate Commerce Commission,
accepted the recommendations of that
commission and successfully directed
proceedings through- the courts which
eventually resulted in a dissolution of
that arrangement, so as to the control
of the Union Pacific of the Southern
Pacific, the Department of Justice will
follow the lead set by the Interstate
Commerce Commission-, it Is said. The
control of the Northern "Pacific " and.
the Burlington by the Union Pacific
was prevented by a decision of the
Surreme Court of the United States,' in
which it was held that; the arrange
ment was in violation of the- Sherman
act. the' court stating; that the Union
Pacific could not control these rail
ways, as they were competing lines.
Proof Lines Are Competitors.
Before the acquisition of its stock
by the Union Pacific, the Southern Pa
cific Company, with its lines of rail
and steamships, was engaged in com
petition with the Union Pacific. Prior
to the enactment . of the interstate
commerce law, the Union Pacific and
t . ' ' IX WALL. STREET ITS A BIT DIFFERENT. i
i .1
Southern Pacific Company belonged to'
the transcontinental pool, in which
each was regarded as a competitor of
the other and was accordingly awarded
an allotted percentage of trans
continental business. Numerous cita
tions are made by the Commission in
its report in the line of evidence ob
tainable to prove that the Union and
Southern Pacific Companies are com
petitors. . The . importance of the charge
brought against the Union Pacific is
emphasised by the Commission in its
bearing upon our Oriental trade. The
Attorney-General , is reported to be'
greatly. Impressed by the showing
which the" Commission makes to sus
tain its assertion that control by the
Union Pacific of the Southern Pacific
has resulted' in the elimination of ' all
steamship competition from Pacific
Coast ports to the Orient. .
The Attorney-General, while reticent
as to the contents of the -statement
which he contemplates shortly to issue,
gives the impression , that it willnot
disclose the attitude of the department
with regard to criminal prosecution of
Mr. Harriman. and that, should such
proceedings be undertaken, it will be
by i separate motion and at another
time.
DENY . ALL WSH'S CHARGES
Harrlman's Directors hay They Did
Not Vote in His Interest.
' CHICAGO. Jan. 9. With the" Implied
purpose of controverting the charges
made by' Stuyvesant Fish in his suit to
enjoin the voting of 281, 231, chares of
the Illinois Central Railroad Securities
Company, an answer by the Illinois
Central Railway Company was filed in
the Superior Court in this city. - Ac
companying were affidavits from Mr.
Harriman, Walter Tuttgen, John Jacob
Astor,, Alex G. Hackstaff, Cornelius
Vanderbllt, John W. Auchincloss, Rob
ert W. Goelet, and Charles A. Peabody.
The documents admit the - existence
of hostility toward Mr. Fish, but it is
declared that this hostility is due to
the actions of Mr. Fish in beginning
litigation. Mr. Goelet and Mr. Peabody
each denies that Mr. Harriman . domi
nates and Influences him. Mr. Harri
man avers that he does not dominate
or influence them or any other direc
tors. . . t
Each of the affiants denies having
voted prejudicially to the interests of
the Illinois Central Company, and de
clares that the only dealing? between
that company and the Union Pacific
Railroad Company within the last two
years -hive been agreements for con
necting their tracks and the use of the
station of the Union Pacific at Omaha,
both of which were recommended by
Mr.- Fish, und . for -the interchange of
traffic' and division of rates, in which,
it is said, no change has been made
or proposed within a year.
MAY ABSORB GREAT WESTERN
Canadian Pacific Proposes to' Take
Over Embarrassed System.
ST. JOHN, N B., " -Jan. . A special
from Winnipeg says that the Canadian
Pacific Jtailway may take over the Chl-
cago Great Western system which yes
terday was placed in the hands of re
ceivers.. -The dispatch, states that if the
embarrassed road is acquired, the Can
adian Pacific will enter Chicago from the
east via the Fere Marquette Toad and
continue to St. Paul over the Great West
ern and thence to the Coast by the Soo
L.ine, now controlled by the Canadian
road.
No More Porters on Chalrcars.
OMAHA, Jan. 9. The Union Pacific
and Burlington Railroads will take
porters off chair cars and do 'away
with flagmen on- some. -of their pas
senger trains. This reduction is made as
a matter of retrenchment.
HUGHES POWER
WILL BE TESTED
Fortune; Is Staked on
Two Measures.
IN NEW YORK : LEGISLATURE
Heads Fight for. Ballot Reform
and Against Gambling.
WADSWORTH OPPOSES HIM
National Politics May Be Affected
by Governor's Stand on Unpopu
lar Issues That Will Be '
" Stubbornly Contested.
NEW YORK, Jan. 9. (Special.) A leg
islative session that promises to be full
of interest, lobbying and National politics,
is now under way in this state.
Governor Hughes has pinned his f or- i
tunes to two measures, one calling for
ballot reform, and the other for the abo
lition of racetrack gambling. As matters
look now, neither one will become a law.
But the Governor is a resourceful fighter,
even If his ways are quietly polite, and
he has no doubt of ultimate success.- Un
der thprosent construction of the law it
is perfectly legal to ' bet on a horserace
if you go to. the track,- neither is a book
maker in any danger of punishment. But
a man who accepts bets in a poolroom,
a saloon, or anywhere except on the
track, has committed a felony, and is
liable to a long term of imprisonment.
The Governor does not see why these
conditions should exist. If gambling is
a crime, and It Is gambling to bet on a
horserace on one side of a fence, it cer
tainly is gambling . to bet on the horses
on the other side of the fence, he asserts.
And he calls upon the Legislature to
stop it . ....... .
Country Profits by Betting.
Horseracing is entirely a sport of city
men and ordinarily the "voters from the
rural districts could be counted upon to
aid in suppressing it. ..But the men who
drew the present statute were, far-seeing
politicians. They inserted a provision
that 6 per cent of the gross receipts ot
the tracks should be held out, -and divided
pro rata among the various agricultural
societies of the state. -And so great is
the business of the tracks that this 6
per cent amounts to over 1200,000 a year,"
which shows that the ""tracks admit this
income Is $4,000,000 a year. And this does
not include receipts from various priv
ileges, including the money that is taken
in from the bookmakers, which amounts
to many thousands of dollars every day. .
Naturally the farmers do not want to
lose this revenue. The Governor proposes
that the state make it up to them by
direct appropriations. Senator Raines
throws cold water on this by insinuating
that it is a mighty hard matter to get
an appropriation bill through every year.
So there you are. If the farmers were
convinced that they would not suffer
financially,' it is safe to say that the bill
would pass. As it is. the matter Is very
much in doubt. Various soa)eties of min
isters are getting busy and doing what
they can to uphold' the' Governor in his
stand. The trouble is, however, that, al
though they can pass numerous resolu
tions, they are shy when it comes to the
question of controlling the votes of legis
lators. Leaders Against Ballot Reform.
If the Governor succeeds in passing his
Massachusetts ballot reform bill, he will
do it despite the open opposition, of prac
tically all the leaders in both houses. A
majority of practical 'politicians believe
that the present ballot is preferable to
the reform measure because it gives the
party voter rather than the independent
the advantage. .... ........
As a general thing the head of the
ticket, if he is popular, drags through un
desirable running mates. Of course 1906
was a remarkable exception to this, when
Hughes had 60,000 plurality and all his as
sociates were beaten by from 1000 to 3000.
H. M. Whitney, leader of One of the
Massachusetts Democratic Fac
tions Which Will Send Contesting
Delegations to the National Con
vention. '
But this case is really-one of the strong
est arguments made by party men In
favor of keeping the present ballot.
"It, the . voters had , been required , to
mark each candidate," said a New York
County leader, "Hughes would have had
150,000 over Hearst, and the other- Demo
crats would hive won by from 73,000 to
100,000. As it was, party regularity hurt
Hughes and aided the men who ran with
him." .....'
Even before the Legislature met, John
Raines, president pro tern of the Senate,
declared .he was opposed to . what is
known as "ballot reform." Now Speaker
Wadworth has come out with a similar
statement. . -
Opposed by Strong Men.
There is, then, a complete 'analogy be
tween the legislative situation this year
and that of last, so far as the chances
of ' a break with the Governor are' con
cerned. Yet there is one striking differ
ence, so k far (as, present conditions are
concerned. It was thr "old guard," the
discredited political hacks of the Senate,
who challenged the ' Governor's pro
gramme" last -year. 'The very character
of his opponents then gave the fight that
peculiar " quality which so quickly
aroused ' public' Indication. But the case
ot Wadsworth is entirely different. - He
has administered ( the , difficult office of
Speaker for two years in such a fashion
as to command respect.
' Naturally he has made errors of Judg
ment which have provoked Justified criti
cism, but under his direction the clean
it . - i -
and the decent men in the Assembly have
exercised potent influence. The men who
have been his loyal supporters, who stand
with him today, are an entirely different
set of men from those who stood about
the former Speaker. While at some time
each of , his . principal lieutenants has
found himself a't variance with the
Speaker, In sum total they are all solidly
behind him.. Consequently it is not possi
ble to -hint at sinister motives because
the Speaker does riot agree with the Gov
ernor's 'recommendations as to legisla
tion. , '
It is a case of two honest men who
have taken radically different positions
on the same subject. And because the
Speaker is not open to any oblique
attack, he brings much moral strength
to the cause ' he has championed. On
direct nominations and on some other
things, Mr. Wadsworth has already
followed a course opposed-to that of
the Governor, yet under great tempta
tion and much - urging, he last year
declined to participate or lead, for that
was "what it amounted to, any whole
sale warfare upon Governor Hughes.
And this was true, in spite of the
fact that his personal political follow
ing was much assailed by some of the
Governor's policies.
Wadsworth Practical Politician.
Wadsworth," in temper and in train
ing, represents an entirely different
Ideal of public life and party method
from Governor Hughes. He' is not un
like Herbert Parsons in general terms,
In hie view of public affairs. He be
lieves in party organization and party
discipline, in regularity, in patronage
and in other details ot practical poli
tics. But quite as firm is his stand
against "graft." against personal
profit, and against the unclean .things
which have so damaged the Republican
party, as a whole, in the state at large.
In general terms, he is not unlike Her
bert Parsons in nis views of public
affairs. v
To Parsons and to Wadsworth,
Hughes stands as a man who has
broken down the Republican party.
They concede that what he has done
he has done honestly, and admit that
Concluded on pace 6.)
ABYSSINIA TAKES
TOWN FROM ITALY
Captures Lugh and
Massacres Garrison.
MENELIK CLAIMS TERRITORY
Italian Merchants Robbed,
Killed, Imprisoned.
SQUADRON SENT TO COAST
Furthest Interior Post in Italian
Somaliland Destroyed After a
Bloody Siege Doubt "Whether '
Menelik Ordered Assault.
ITALY'S TROl'BtXD COLONIES.
- Eritrea and Italian Somali-Land
are Italian dependencies on the east
coast of Africa. The former has an
area of SS.fiOO square miles, and the
latter an area of 10O.O0O square miles.
The combined population is 830.00O.
about equally divided. Both Eritrea
and Italian Somali-Land border on
Abyssinia, Eritrea lying to the north
on the Red - Seal and Somali-Land
aoutheast on the Indfan Ocean.
ROME, Jan. 9. News has been received
here of serious trouble in Italian Somali
land, on the east coast of Africa, which
has resulted In pitched battles between
the Italian forces there and the Abys
sinians near Lugh, the furthermost Ital
ian station in the interior, the Abyssln
ians robbing, killing and imprisoning
many of" the merchants.
Lugh is garrisoned by only about 126
natives under command of Captain B- .
giovanni, . and the attacking party laid
siege to the town. In , a number of en
gagements that followed, both sides, ac
cording to the reports, suffered .heavy
losses. . ,
Squajdrou Sent to Scene.
Tha Italian government has ordered the
squadron now in the Red Sea to proceed
to-the coast of Somaliland, in order ' to
protect the towns along the coast, as the
entire territory Is garrisoned by not more
than 2000 natives under the command ot
Italian officers.
At the same time the government has
telegraphed to the Italian Legation at
Adis Abebba, the capital of Abyssinia,
instructing the Italian Minister to pre
sent - a protest to King . Menelik against
the violation of the status quo. Italy
holds Lugh through an arrangement con
cluded with the Sultan of that territory
in 1S95, which, however, was never rati
fied by King Menelik. who .considered
Lugh a portion of his own territory.
Lugh is nearly 30 days' march from the
coast. . .
Town Taken, Garrison Slain.
Later dispatches received here indicate
that the trouble is of a more serious na
ture than at first supposed. It is learned
on good authority that Lugh was be
sieged by the Abyssinians and destroyed
after a desperate and unequal fight and
that the defenders were killed.
"It Is believed here that the Italian gov
ernment Is concealing a severe reverse in
order to prepare the public for graver
news. The importance of the situation
lies In the- establishment of the fact as
to whether the King of Abyssinia ordered
the attack.
NO WEDDING WITH OSBORN
MOCK CEREMONY BETWEEN
HIM AND MISS MALONEY. .
Millionaire Declares That Fictitious
Names Were Given and Couple
Never Lived Together.
NEW TORK, Jan. 9. Martin Maloney,
of Philadelphia, made known through a
formal statement given to the Associated
Press tonight that proceedings had been
instituted to obtain in a court Judgment
declaring that there was no marriage be
tween his daughter, Helen Eugenie, and
Arthur Herbert Osborn, the young New
York broker, who, according to the coun
ty records, were technically united in
matrimony at Mamaroneck, December
28. 1905. Fictitious names were given by
the parties to the ceremony, and the two
never lived together.
Mr. Maloney does not go into details
In his announcement, but it Is under
stood that the present court action is
based upon the admissions of the young
people that the idea of their union was
conceived In a spirit of fun and that the
marriage was a mockery. '
JURY CENSURES MOTHER
Child Died of Mental Healing,
' . Which Is Called Neglect.
KALAMAZOO. Mich., Jan. 9. The Cor
oner's jury at Plainwell; which has been
inquiring into the death there of Walter
Neeley, aged 24 years, son of Mr. and
Mrs. David N. Neeley. of -Sacramento,
Cal., brought in a verdict tills afternoon
that the child died of pleuro-pneumonia
and declaring the mother guilty of gross
negligence for falling to secure the serv
ices of a physician or to call in medical
attendance.
The child was treated by two members
of a sect of mental healers.