PORTLAND, OREGON, SATURDAY, FEBRUARY 1908. PRICE FIVE CENTS. VOL. XL VIII. NO. 14,726. FLORIDA MAKES CONFLICT SHARP Taft Majority on Na tional Committee. ' WILL DECIDE ALL CONTESTS Scheme to Prevent Seating)f Taft Delegates. HITCHCOCK PUT IN CHARGE First Task Is to Itne Vp Southern Delegations Conferences of the Taft . and Antl-Taft Forces , on the Florida Contest. WASHINGTON. Feb. 7. (Special.) Important developments attracted at tention In the Republican political field today. The actually hostile stage In the .contest for delegates to the Chicago convention suddenly has materialized. The handshaking preliminaries and the days of exchange of ecomlums between rival managers of the- Presidential can didates have given away to the serious business of scoring real points. Here are the most Important of the develop ments: 1. Formal announcement was made of the resignation, to take effect Feb ruary 15. of First Assistant Postmaster General B'rank H. Hitchcock, who will henceforth take hold of the Taft cam- . paign, with headquarters in "Washing ton. Majority Favors Tart. 2. Attention was turned to the align ment of the Republican National Com mittee, the importance of which was sprung into prominence- by the pros pect of many contesting delegations of , the National convention. Expert opin-. ion shows that a majority of the .com mittee is favorable to Taft. S. The Taft and anti-Taf t forces heid'conferences over the Southern sit uation, brought into strong relief by yesterday's double set of state and dis trict conventions in Florida. .The fact that the race Is not only Taft against the field, but that a portion of the field Is united in a scheme' to prevent the seating of Taft delegations at Chicago has been strikingly apparent. Mr. Hitchcock's previous affiliation with an element of the National com mitteemen has a bearing on the commit tee's alignment in the future and the Southern situation, which attracts at tention today, will be one of the first things to receive Mr. Hitchcock's at tention when he assu.nes his new duties. Taft and Antl-Taft Men. Politicians in close touch with the whole National situation went through the National committee list and marked off the Taft and anti-Taft members. They agreed upon the following as being for Mr. Taft on any teat vote in volving the plain Taft and antt-Taft questions. . ' . Alabama, Scott; Arkansas, Clayton; California, Knight; .Connecticut, Erooker; Florida, Coombs; Iowa, Hart; Kansas, Mulvane; Louisiana, Wight; Maryland, Williams; Minnesota, Kell ogg; Mississippi, Moseley; Missouri, Aikens; Montana, Waite; New Hamp shire, Streeter; .New York, Ward; North Carolina, Duncan; Ohio, Herrick; South Carolina, Capers; Texas, Lyon; Virginia, Martin; Wyoming, Pexton; New Mexico, Lnna; Hawaii, Robertson; Porto Rico, Todd; Philippine Islands, McCoy. Total, 2d. One of the estimates also gives the following to Taft. bringing the total to 31. Georgia, Lyons; Maine, Hill; Michi gan, Blodgett; Nebraska, Merrill; Eouth Dakota, Greene; Alaska, Held. The other estimate gives the follow ing to Mr. Taft, making a total of 28, a bare majority: Utah, Loose; Arizona, Sturges; Okla noma. Cade. There are 54 members of the National committee, 28 being a majority. TARES CHARGE OF CAMPAIGN Hlte.hcoek Soon to Become Manager for Secretary Taft. WASHINGTON, Feb. 7. Announcement was made today of the approaching re tiremont of Frank H. Hitchcock, First Assistant Postmaster-General. Mr. Hitch cock will assume the management of the active campaign of Secretary Taft for the Republican nomination for the "Presi dency. The exact date of the retirement has not "been determined definitely, but It possibly will be about February 15. Mr. Hitchcock will be succeeded as First Assistant Postmaster-General by Dr. Charles P. Grandfield, who for a little mora than two years has been chief of the bureau over which Mr. Hitchcock presided. Dr. Grandfield has been actively Identified with the postal service for about 20 years. Has Valuable Experience. , . Several weeks ago Mr. Hitchcock was requested by Secretary Taft to undertake, the management of his campaign. The Secretary desired to enlist his services, not only because he , in widely known throughout the country and has had ex perience valuable in campaign work, but because he felt the necessity of having a man in charge of the infinite variety of details of the campaign to whom he could refer questions arising constantly" and to which, he was unable to devote the time they seemed to demand. It is no secret that Secretary Taft, in order to dispose of the reat amount of work incident to the direction of his de partment, has been obliged for several weeks practically to exclude himself from visitors a part of the time. The work has been exceedingly trying as he is under a severe mental and physical strain for from 16 to 20 hours every day. Took Time to Consider. xWhen Secretary Taft made the proffer of the management of his campaign to Secretary Hitchcock, he desired him to undertake the work at once. As that in the view of Mr. Hitchcock, would have necessitated retirement at once from the office of First Assistant Postmaster General,, because he could not with pro priety conduct a political campaign from the Postofflce Department, he told Sec retary Taft that he could not assume the Frank H. Hitchcock, who Has Re signed as First Assistant Postmaster-General to Become Manager of Taft's Campaign. duties of campaign manager on the spur of the moment. He asked for time to consider the subject and to- confer with friends. The secretary entered no objec tion, but desired a decision as soon as practicable. Mr. Hitchcock finally ' Informed Sec retary Taft that if he could be given time to meet his obligations and duties to the postal service he would accept his offer. Practically, Mr. Hitchcock now has con cluded the work on which he was en gaged, and in a few days he will tender hLs resignation to leave the Postofflce De partment. Mr. Roosevelt joined with Sec retary Taft in. requesting . Jlr Hitchcock to undertake the campaign work. It is not known what plans Mr. Hitch cock may have prepared for his new duties. It is not known even whether he will establish headquarters in this city, but it is assumed he -will devote his at tention to the campaign of Secretary Taft in all parts of the country except possibly Ohio, which is being looked after by Arthur I. Vorya. COLUMBUS, O., Feb. 7. The follow ing statement was given out here to night by Arthur I, Vorys, manager of the canvass for the nomination of . Wil liam Taft for President: "I have invited Frank H. Hitchcock to assist in the management of the campaign. . He -will tender his resig nation as First Assistant Postmaster General, to take effect February 15, He will come here to confer with me about the division of the work." TAFT TO TAKE WEEK'S -TRIP Will Speak at Kansas City. and at ' Grand Rapids. - ' WASHINGTON, Feb, 7.-Secretary Taft expects to leave Washington, tomorrow and be absent from the city at least a week, during which time be Is to speak at Kansas City, Mo., and Grand Rapils, Mich., and to deliver the diplomas to the graduating class at West Point.. The Secretary on Monday will address the Young Men's Republican Club of Missouri, at Kansas City. Thence ho goes by way of Chicago to Grand Rapids, where on the 12th, ' he is to deliver a speech at the banquet in celebration of Lincoln's birthday. From Grand Rapids the Secretary goes to West Point to at tend the graduation exercises at the Mill tary Academy on the 14th. . Still Deadlock in Kentucky. FRANKFORT, Ky., Feb. 7. The Senatorial ballot today 'was again without result. RAISULI FREES MACLEAN BANDIT TURNS CAPTIVE OVER TO ENGLISH. Receives $100,000 and Protection Under Agreement With Brlt isii Government. TANG1KR. Fib. 7. Caid Sir Harry Mac Lean, who has been held in bondage for the past seven months by the bandit Raisuii, has been officially turned over to' the British charged d'affaires here.; in . accordance with the agreement be tween Raisull and the British govern ment under which Raisull is to receive $100,000 as a ransom and a guarant.ee of protection for himself and family. Mac Lean is in good health but he teems weaker and oldur than before his capture. He- says he will rejoin Abd El Ailz at Rabat. When Raisuii arrived outside the walls of Tangier with MacLean, he sent in a demand for permission to enter the city accompanied by 700 of his soldiers. Sid Mohammed Gabbas. the Moroccan foreign minister, flatly refused to allow him to do, so and Raisull as the result of inducements by the British charge d' affaires came in with MacLean and three domestics. When MacLean had been offi cially turned over to the British forces Gabbas released the Imprisoned Ralsulites and they departed undisturbed, almost unnoticed. lAZING ORGY OF FINANCE Examiners Report on Title Bank. CAUSES OF WRECK NUMEROUS Gross Mismanagement and Dishonesty Included. ' CONCERN NEVER SOLVENT Findings Filed In Federal Court Bristle With Astounding Revel'a-", t loirs Regarding Methods of - Ross and Associates. , After stirring the bones' of the Title Guarantee & Trust Company two months and 'a' half the examiners reported, their findings yesterday to. Judge Wolverton of the Federal court. John Manning. State prosecuting attorney, and A. M. Crawford, State Attorney-General. The relics, show an amazing orgy of frenzied finance and prove J. Thorburn Ross, T. T. Burkhart and John E. Aitchison the wildest guardians of depositors' money Portland ever knew. The more the ex aminers shook up the relies the more they saw remaining to inspect. ' Time All Too Short. "To examine the whole of .the com pany's affairs," they say, "would require a period of time far beyond that we have teen allowed." The examiners are E. H.' Collis, assisted by Seneca Smith, acting for Judge Wolverton and 'Attorney-General Crawford, and J. W. Fer guson, acting for District Attorney Man ning. - The mqln points of the report are as follows: Bank, wreck was caused by incompetent and -extravagant management, excessive loans and dishonest-.officials. The borrowers were largely the bank's officers and stockholders ..and the sub sidiary companies. 1 ., The bank was organized In 1904 without legitimate capital or a dollar pf money. Bank officials made heavy .charges against Marquam building for - commis sions, "attorney lees and various services, evidently to tangle up the building with claims and make away with its revenues should Judge Marquam win. back the structure in court. ' They charged a total of, $626,652 and credited $528,346 during five years and eight months on the .building. Thus, by means of extraordinary charges they absorbed practically all the earnings. These charges amount to not less than $200,000. .' i Marquam Theater ' Deal. One of the big absorptions was $140,000 received from sale Of Marquam theater. This was paid out by the Oregon Company possessor of the building, as dividend to tthe Title bank, its stockholder, and hy the, bank was turned over to Ladd! & TUton to apply on big debt. -.7 ; . The sale price of the theater was $300, 000, of which $5060 was commission, $54,950 cash to Title Bank, and $140,000 note given by Emanuel May to the bank "At the same time the Ross bank took $30,050 of depositors' money' and added i t ' to the $54,950 cash, to pay $85,000 ion mortgage FRENZIED I GUESS HE'S GOING TO GET ON THE BANDWAGON. , - J '''l ' &S.Ssilia - '-r " - J l ,.:"' ' '-.' .. - '' ' ' ' "':"' l ,. ' . t :...... ... . ' a held by the United States Mortgage & Trust Co., of, New York, in order to re lease the theater. . . When the bank collapsed, November 6, ' 1907, the cash on- hand- and due from other banks was less than 1 per cent of. the deposits. Nine days- before, . when trie bank closed, there was 3.8 per cent on hand. . ' In those nine days $75,000 in cash and credits was transferred to preferred cxeu itors, ; among them Ladd & Tilton, George A. Steel, Wallace" McCamant and Ross and an additional' $75,000 to restore depleted trust funds. . " Concern Never Solvent. The bank, never was solvent. When it started, June 30, 1904, it . owed Ladd & Ufllton $660,000 and paid interest at 8 per cent, compounaea mommy, ; making? a monthly drain of $4500. W. M. Ladd was then president of the Title Company and remained such until July, 1906. He' was a director until July, .1907. During this period Mr. Ladd owned 60 per cent of the Title ' Company's stock. The minutes of the .company show not a single protest against the policy o,f spec ulation. 1 , The report makes pointed references to Mr. Ladd's failure to sustain the bank, strongly -indicating - his -responsibility for the wreck, but, remarking -that he has "partially" relieved the distress. Various accounts, such as suspense, suspense . earnings, surplus, profit i and loss, and general earnings, wore all In flated so as to show credit balances, "for use 'of 'the bank's manipulations. With inflations eliminated, the credit balances all dissolve into thin mist. Other Inflated Accounts. Other inflated accounts are those of ab stract plant, assessed for. taxes at $20,000. but valued as bank asset at $125,000: and ! safe deposit vaults, costing $9290, but val ued at $60,000 on the books. Ross and Burkhart used the bank's money for private schemes and charged off the losses to the bank. The Lafe Pence companies owe the bank $399,000. " The account of the state funds shows that the bank used those funds in its manipulations. ...... Report makes no- mention of $25,000 vel vet note given by Rankin, because the examiners, found no record of it. After narrating the career ' of the de funct bank and .making' numerous ex hibits of its doings, the report asks the question: ' ' Experts Give Opinions. "What caused the failure of the Title Guarantee-& Trust Company Bank?" and answers: "Incompetent ana extravagant management, excessive loans and dishon est officials." In .conclusion, the report says " A review of the foregoing report and ex hibits clearly Indicate the reasons which brought about the downfall of this company. It would, appear , that . four men were promi nent figures tn the' Institution: W. M. Ladd, who was president from iU organization un tll iuii. Jea. ' an1 director until June'so, lSUi, and who also was it. largest stock holder, owning about 60 per cent of the stock down to June 17", 190T the date of the Retd' .and Coy subscriptions; J. Thorburn! Rosa, who wai vice-president and later presi dent when he succeeded Mr. Ladd. and who was also a large stockholder, and T. T. Burkhart. who has variously acted aa : secre tary' and treasurer and who was a small stockholder, and John E. Aitchison. who has been an official since July, 1905, and a con spicuous figure in. the subsidiary ..ednipanles. - The early history of the business Indicates that the results were unsatisfactory. ' Then ensued the era of the organization of specu lative companies. In many of which the" company -'or Its officials were Interested, and In Mhe " exploitation ,of which large sums were '. advanced by Mr. Ladd through his banking house of Ladd & Tilton to this com pany and -used by it or its officers and -employes in' these outside companies for specu-' latlon: the fjrra of Ladd & Til ton actinr as treasurer during all these years. - - Interest at8 per cent, compounded monthly, lyis : credited to the treasurer, and In the meantime a large and constantly Increasing overdraft waa created which, augmented by the' interest,, whtch grew to almost $5000 a .month, finally attained to the enormous sum of $735,000 (on January 20, 1805, and later grew, with Interest additions.' to a consider aBly larger sum, about $780,000, In May, 1907).. ' . ''. ": Bait for the Public. ' When this overdraft had reached the large sum ot $660,000, apparently with a view to ' (Concluded-on Page 10.) MORSE TALKS ON TO E Interviewed on Vessel at Queenstown. WILL RETURN IN TEN DAYS Travels on Business, Also to ' Regain Nerve. WIFE SAYS HE WILL FIGHT Faithful to Him, She -Says His Af fairs Are Not as- Bad as Report-: ed Eleven Banks De clare "No Funds." QUEENSTOWN, Feb. 7-A correspon dent of the Associated Press tonight boarded the Cunard line steamer Cam pania and founds Charles W. .Morse, of New York, in the smoking-room enjoy ing a game of' cards. Without a moment's hesitation Mr. Morse grante'd an inter view to the correspondent." He was shown extracts from London papers referring to him as having fled from his, creditors etc. Mr. Morse said there was . absolutely nothing in these , reports, saying they were "New Tork sensationals." He added that he sent cable dispatches to New Tork concerning his position and that the would rectify matters when he returned there. He waa traveling partly' on business and partly for .pleasure for a week or ten day a. ' . - . - Asking where he purpoatd going after he landed' at Liverpool, Mr. Morse courteously begged to be excused from replying. "You can," . he said, "say, with cer tainty that my stay will not exceed ten days on this side, and that then, I will return to New York." Mr. Morse proceeded from Queenstown to Liverpool on board the Campania. He Xiiarayellng. under -,a assumed name, probably C. M. Moore. HIS FRIENDS NOT SURPRISED Mrs. Morse Says Husband Will Re .. turn and Fight. NEW YORK, Feb. 7, Those In close touch with the situation . expressed no surprise tonight , . when they received, through the Associated Press cable de spatch, the first direct word from Charles W. Morse since he sailed on the Campania, last Saturday. His friends were glad to know that he was in evi dent good health and spirits and that he planned an early return to. this coun try. They said Mr. Morse had hoped to be able to spend about a week, on the other side and that his announced pur pose of adhering to his original plan in dicated that he was far less distressed over his financial affairs than has been supposed. - Mrs. Morse said today' that her husband sailed for Europe on, the Campania, and that she accompanied blm to the steamer a few minutes before the departure. "Mr. Morse is coming back on the Campania on her next trip," added Mrs. Morse. "The voyage was under WAY mm taken- In order that he might have a rest and recover some of his nerv.e force, which had been badly shattered by his troubles.. He is a fighting man. and he will be back to face anything necessary. X sent Mr. Morse a wire less message today. We will soon hear from him. Mr. Boardman tells me that his affairs are not so bad as common report makes them. Many of Mr. Morse's friends, whom he 'made rich, have deserted him in his trouble. Oth ers have stood by him. 1 shall remain right here in this house until his re turn." Ten banks and, one trust company, on which attachments had been- served by National Bank Examiner Hanna to cover any funds or securities which Morse might -have on deposit with, .them, made sworn statements today that they had no property belonging to Morse. Several other banks and trust companies on which similar attachments have been served have not yet reported. After Mrs. Morse told a representative of the Sheriff today that all the furniture I John IT. Hall, ei-DlKlrict Attorney . in Whose .Case Federal Jury's I Verdict Was Reached Urt Night. in Morse's Fifth-avenue house belonged to her, the keepers were withdrawn from the house. DO THE SAME IN GERMANY Banker . Disappears, Leaving Debts or About $400,000. BERLIN.- Feb. 7. Siegfried Burg, a private banker and owner of the financial newspaper, the Investors' Adviser, has .disappeared. It is said that he has lia bilities amounting to $400,000. Tliree Bankers Accused of Fraud. DURANGO, Colo., JFeb. 7. Three di rectors; of the defunct Colorado State Bank, B. H. Freeman, Frank Eldridge and W. C. Chapman, were arrested jj day by the Sheriff of Archuleta County on the charge of receiving deposits at the branch bank at Pagosa Springs' when they knew the parent bank waa, insolvent. Butte Bank to Resume. BUTTE, Mont.. Feb. . 7. It was ' an nounced today on the authority of the management of the State Savings. Bank that the bank would resume business on February 15. President M. -S. Largey, of the bank, and F. Augustus Ueinze have made good the amount of their in debtedness to the institution. - Receiver for Inland' Bank. SPOKANE, Feb. 7.-W. F. Meier has been appointed receiver - for the' Inland Bank on application of R. E. Cavette, one of the heaviest stockholders. The capital Is JlB.000; deposits $33,000. Refusal of the Clearing-House Association to grant the bank membership is given as one reason for its closing. . ' Factorj to Close Saturdays. ' ELCflN. III., Feb. 7 The Elgin Na tional Watch Confpany today posted notices that the factory will be closed on Saturday until further notice. Dull ness in trade is assigned as the reason. FIGURES FAIL TO AGREE EMIGRATION TREATY DELAYED . BY MINOR DETAILS. Japan Is Conducting; a Thorough - Search to Ascertain Wherein Sta tistics Differ From America's. TOKIO, Feb.. 8. The delay In reaching a final settlement of the emigration ques tion between Japan and the United States . Is due to differences between the two governments concerning statistics and minor details. The Japanese government. In its mem orandum of December 31, 'maintaining the Incorrectness of the figures presented by Ambassador O'Brien, which showed an extraordjnary number of Japanese enter ing America since March, replied to the American memorandum with the Japan ese figures,' showing a wide divergence. The American memorandum of January 25, couched n the friendliest of terms, said that it appeared Impossible to recon cile the discrepancy Ijj figures and sug gested the possibility of frauds. The Japanese, government, determined to dis cover the exact cause of discrepancy, engaged st week. In a comprehensive Investigation to unearth possible frauds, and it is conceded that some cases have been discovered, but these are insufficient to. explain the disparity. This investigation has caused 10 days' delay In the negotiations. The Foreign Office has pointed out to the' Associated Press, however, that while it doubtless would be gratifying to be able to writ j finis to the vexatious problem. It be lieves it best to clear up the statistics. 'In the meantime no passports will be issued to laborers. The fact that emigra tion is completely, stopped removes an element of danger. The Foreign Office Is confident of a satisfactory outcome of the question. : . ; i J - i I ' r $ 'i -ii T I , Ws - 9 fr.:. : ;: . .. .w. . .. 'A. .-. .v w.. . ..ysja. aoaj. X T ' t VERDICT L CASE IS REACHED Jury Deliberates Over Three Hours. RESULT IS NOT YET KNOWN Sealed Envelope Will Be t Opened This Morning. GUILTY, SAYS PROSECUTION Interpret Speedy Agreement to In dicate Conviction, in View of Judge Hunt's Instructions as to the Law and Evidence. At. liSO o'clex-k moraine the Jury In the Hall conspiracy trial an nounced that It had reached a verdict. The verdict was) sealed 1st an envelope, nndcr Instructions glvrm by Jndse Hunt last night, ami vrlll be returned to the. court nnd opened at 10 o'clock thlsj morning. In view of the charce sjlven by Judare Hast nnd the fact that the Jury deliberated only three hour, haviox retired at 10t2O o'clock last nlKht, the nroaecutlon la confident the verdict l stullty. I'nder the Federal statutes, . conspiracy anch aa ' thnt charged In the ; indictment on which Hall was tried, Is punishable by n fine not exceeding l0,OOO, or by Imprison ment not exceeding two years. The fate of John H. Hall, ex-United States Attorney, is in the hands of the jury. At last night's session, which con vened at 7:45 o'clock. Judge Hunt de livered exhaustive instructions to the jury, the charge requiring two hours for its delivery. At 10:12 o'clock, after Judge Webster for the defendant had inter posed exceptions to practically every in struction of the court, the Jury retired to deliberate on a .verdict. The jurors were instructed by Judge Hunt that'lf a verdict should he reached during the night, they were to seal It in an envelope and repair In the custody of the bailiffs to their rooms; -the verdict to be returned at 10 o'clock this morning to which hour court adjourned. ' ' Judge Hunt's instructions .were far more elaborate than in any of the preceding land-fraud or conspiracy cases. They 5 -consisted of a learned exposition of the law as applied to conspiracy charges and a lucid interpretation of the statutes per taining to the fencing and homestead acts and the statute of limitations. As to Weight of Evidence. Judge Hunt also advised the jury as to the' weight that should be given the ' testimony of the different witnesses for-the Government as well as that of the defendant, 'who took the stand in his own .defense. In-order to refresh -the minds of the JuroTs as to the im portantf testimony in the case, Judge Hunt read -parts of the testimony of Steiwer and Hendricks detailing their . interviews with Hall early in the year - (Concluded on Page 4.) CONTENTS TODAY'S PAPER The Weather. YESTERDAY'S Maximum temperature, 44 degrees; minimum. 34 degrees. TODAY'S Haln; southerly winds. r'orelgn. King and Crown Prince ,of Portugal to be buried today. Page 2. Franco arrives at Bordeaux, fearing murder but defending his policy. Page 2. 8tory of life of Bui sea, the assassin. Page 1 1. Kusslan Douma refuses to hear Milukott be cause of speech In America. Page 3. Pirates murder crew of JaDanese fishing ship. Page 6. National. . Williams offers currency bill for Demo crats. Page 5. Fulton's rate bill reported by Senate com mittee. Page 6. . .' Politics. Majority of National Committee will favor Taft delegates. Vage 1. Hitchcock resigns from Postofflce to manage Taft-campaign. Page 1, Ferkins says corporations welcome Federal but oppose state control. Page 0. Domestic. Leader of Black Hand caatured In New York. Page o. Morse arrives at Queenstown and says he will soon return." Page 1. Governor Pennypacker Implicated in Capitol . frauds. Page 2. Sports. German army automobile arrives for race from New York to Paris. Page 4. Conference of Northwest colleges at Walla V alla makes rules. Page 11. .- Pacific Coast. Ruef trial postponed, awaiting Heney; he will Insist on immunity. Page 7. Marlon Republicans opposed to Statement No. 1. Page J. Pack of cards stirs up trouble In Medforil school. Page 16. Commercial and Marine. Potato shippers want lower freight rate to . Southwest. Page 15. Wheat strong and higher at Chicago. Page 18. . Stock speculation stagnant. Page 15. General trade Improves slowly. Page 15. Steamship Alesia, of the Portland & Aslatle Company, arrives with a light cargo. Page 14. . Portland and Vicinity. Astounding revelations made in report to court by examiners of Title Trust Bank's affairs. Page 1. John H. Hall conspiracy case goes to Jury; sealed verdict to be handed in this morning. Page 1. Inland Empire excursionists will be clty'a guests today. Page 10. Dekum avenue grading contract tender fire. Page 14. High bridge project boosted by mass meet ing of East Side citizens. Page 10. ! - - ' 1