VOL. XL VIII. NO. 11,732. PORTLAND, OREGON, SATURDAY, FEBRUARY 15, 1908. PRICE FIVE CENTS. RAILROAD DO D CAN'T FIX RATES Federal Court Decides Joint Wheat Case. LIMITS COMMISSION POWER State Constitution Gives Rate Making to Legislature. MAY CALL EXTRA SESSION Governor Mead Has Matter Older Advisement Judge Hanford's Decision- Regarded as Victory for Portland Commercially. OLYMPIA, Wash., Feb. 14. (Spe cial.) That the Washington State Railroad Commiselon has no authority to fix maximum rates is the gist of a decision handed down by Judge Han ford in the Federal Court in tills city today In a decision in the Joint wheat rate case. Judge Hanford holds that under sec tion 18, of article XII, of the tate con stitution, the power to establish and fix maximum freight and passenger rates Is reserved to the Legislature and cannot be delegated to a commis sion, v By this decision the usefulness of the Hall road Commission aa to rate making is destroyed, and Governor Mead stated tonight that he has under consideration the advlsiblllty of calling an extra ses sion of the Legislature to consider sub mitting at the next general election a proposed amendment to the state con stitution giving the Railroad Commis sion the power of rate making. Victory for Porland. Th decision Is a victory for the O. R. & N. and the commercial interests of Portland as opposed to the efforts of the Northern Faciflo and the Great Northern to divert Eastern Washing ton wheat traffic from Portland to Tuget Sound seaports. The case will immediately be carried to the Supreme Court of the United States. If the ruling is upheld in the higher court of appeals, the State Com mission will have power only to take testimony and gather data relative to rates and forward this to the Legisla ture with recommendations for fixing rates. Judge Hanford's decision is in part as follows: Clash With Interstate Rights. I am convinced that these three trans continental railways cannot be compelled to pool their Interests In the wheat traffic without Imposing; on them burdens which will cripple them aa carriers of interstate commerce and that enforcement of the or der made tiy the State Railway Commission, requiring: them to carry wheat originating on the line of the complainant over the line of the Northern Pacific and Great Northern Railway, to the seaport cltlos of Tuget Sound at a Joint rate, will have a direct effect upon interstate commerce by diverting the transportation of wheat des tined to foreign countries from Portland to tlie ports of Puget Sound. However lauda ble the purpose may be from the standpoint of Washington farmers, grain merchants and millers, such a handicap upon compe tition in foreign trade by state authorities trenches upon the powers of Congress to regulate foreign commerce and Justifies the carriers In Invoking the power of a Federal court to relieve them from obligations to obey the order. Commission Without Power. I bold also that in assuming to prescribe a Joint rate, varying from the maximum rate established by a law enacted by the Legis lature, the Railway Vommlseion exceeded the powers which could be conferred upon it by a law, Hot repugnant to the constitu tion of the state. This is so for the reason that by the 19th section or Article XII of the constitution, the legislature is specific ally required to pass laws establishing rea sonable maximum rates to be charged for the transportation of passengers and freight. By this the constitution requires that rates shall be established, that Is to say, fixed by competent authority for all shippers so that there shall be no discrimination; the rates are to be reasonable and by neces sary Implication discretion must be exer cised in the determination of what is rea sonable; the power to establish rates and exercise discretion is given to the Legisla ture and the manner of establishing rates Is to be 'by passing laws. The laws of the state are required to be enacted by the Senate and House of Repre sentatives with prescribed formalities and to be submitted to the Governor- for his ap proval, and laws cannot be passed in any different manner. An order promulgated by a commission created by the Legislature Is not a law and cannot be enforced as a law without overriding the clearly expressed declaration of the constitution. Reflection has led me to the conclusion that in the decision upon the application for an Injunc tion pendente lite the court erred. In an nouncing that if the carriers shall co-opera-ate to haul wheat as It may be routed by shippers, -the rates prescribed by this order will he the maximum rates collectible for a continuous haul, unless proved to be insuf ficient, unfair and unreasonable." As at present advised I must hold that the maxi mum rates are as fixed by the law enacted by the Legislature. Governor Mead Comments. In . an Interview tonight, Governor Mead said: "I have just read the decision of Hun. C. H. Hanford overruling the demurrer In the so-called Joint wheat rate case. The crucial portion of the decision is found in the latter portion thereof, wherein the court holds that under Section 18 of Article XII of th Constitution of this state, the power to establish and fix maximum freight and passenger rates is reserved to the Legislature and cannot by it be delegat ed to a commission. An order promul gated by a commission, created by the Legislature is not a laW and cannot be enforced as a law without overriding the clearly expressed declaration of the Constitution. "The principle enunciated by Judge Hanford does not come to the student of this question as a startling surprise, even though he may not agree with the conclusion reached by him. "The decision is very far-reaching, declaring in effect that the Legislature cannot authorize a commission to fix, regulate or establish freight or pas senger rates, as under our Constitution this can only be done by regularly enacted law. May Call Extra Session. "Two courses are open to secure rate regulation under this decision, one is through legislative enactment, the other Is by an amendment to the state Constitution cutting out the limitation and empowering a commission to regu late railroad rates or, as In some states, to regulate all corporations. From my study of this question I favor the regu lation through a commission always in session, and ready to meet all em ergencies as they arise. "1 have had no time to consider the full effect of this decision nor. to determine what action I should take. I shall give the question of calling a special session of the Legislature to consider the advisability of submitting at the next general election a proposed! amendment to the Constitution along these lines my earnest immediate at tention. I will announce my conclu sions in the very near future." 1 ACTION" OF STAffE OOUKT FLXAL Attorney-General Sees No Alarm in Judge Hanford's Decision. OLTMPIA, Wash.,' Feb. 14. (Special.) Attorney-General John D. Atkinson looks upon the decision of Judge Han ford in the joint rate case as not a mat ter for creating alarm concerning the ef fectiveness of the railroad commission law. In an interview tonight he decried talk of an extra session of the Legisla ture. He said: "The point upon which Judge Hanford holds the law Invalid must ultimately be determined by our state courts. The learned Judge, of course, until our state court passes on the point, has a right to construe the state law with reference to the state constitution, but when the state courts pass upon this point, their construction becomes final and binding upon all Federal courts. "The construction of the state consti tution in this instance does not involve a Federal question or the construction of any Federal law or portion of the Fed eral constitution. That is why the de cision of the State Supreme Court wiS take precedence over any ruling by the Federal courts. "The same point has been decided fa vorably to the state by Judge Chadwick, and I entertain a very confident belief that the Supreme Court of this state will hold that the Legislature can onder our constitution authorize the Railroad Com mission to fix rates. "I see no occasion for immediate alarm. Cases are pending In the Btate courts in which this point will be decided at an early date. Until the state courts hold against the law. the commission can pur sue the even tenor of its way." Assistant Attorney-General A. J. Falk ner, who Is representing the state in all the railroad cases, said tonight that he concurred in the opinion expressed by Mr. Atkinson. PORTLAND DEEPLY CONCERNED Hanford's Joint Rate Decision Is Pleasing to Commercial Interests. Portland's shipping Interests rejoice with the O. R. & N. over the decision of Judge Hanford, which is considered to have defeated the attempt of the Wash ington Railway Commission to establish and enforce a joint wheat rate that was discriminatory against this port and its commercial Interests. As had been ex peeled. Judge Hanford held that a state railroad commission cannot fix rates that will in any way interfere with interstate commerce either '-by Increasing the cost of the transportation of freight from one state to another or by impeding the transportation of such freight. The real purpose of the Joint wheat rate was to divert from Portland to Puget Sound points much of the wheat shipments of Eastern Washington. The Washington Railway Commission sought to compel the O. R. & N., which trav erses one of the richest wheat districts of that state, to make the short haul of this product to Junction points and there turn Its loaded cars over to the Northern Pacific, This plan was resisted by the O. R. & N., which contended that it would prevent the use of the same cars in its interstate business and would nec essitate making provision for additional cars. This contention of the O. R. & N. was sustained by Judge Hanford, who, in discussing this phase of the contro versy, says in his opinion: It is averred that the Northern Pacifio Railway and the Great Northern Railway lines are taxed to the limit of their capacity by the large volume of traffic which they are required to provide for, including inter state commerce transportation and the local traffic originating in the territory which their lines are required to serve, so that compliance with the order to give pro ducers and dealers In wheat, grown within the territory served by the complainant's line, the benefit of the Puget Sound market, will compel the carriers to overcome physi cal dlffoulties and will necessarily impede interstate transportation by the lines of the Northern Pacific - and the Great Northern Railways. THE UNEXPECTED HAPPENS Reduced to Poverty, California Man Suddenly Finds Himself Rich. SANTA CRUZ, Cal., Feb. 14. C. C. Cur tis, a cook who this morning found the family exchequer reduced to 50 cents, was rendered speechless with surprise when the postman presented him with a letter apprising him of the fact that a cousin in the East had died and be queathed him an estate valued at $16,000. KILLS HIS BRIDE IN RAGE Bartender Shoots Wife and Then Turns Gnn on Himself. SAN FRANCISCO, Feb. 14. Percy In galls, a bartender, shot and killed his bride of a few months in their home late this afternoon, and then turning a 38 calibcr revolver upon himself, blew out his own brains. The husband, it Is believed, was in a drunken rage when ha committed the crime. CHILEANS CHEER FLEET Great Enthusiasm at Valparaiso. REVIEW BY PRESIDENT MONTT Splendid Spectacle as White Ships Enter Bay. THOUSANDS LINE HILLS Chilean Navy Thunders Salute and Republic's Chief Port Keeps High Holiday Roosevelt and Evans Are Toasted at Banquet. VALPARAISO, Feb. 14. The great American fleet of 16 battleships, under the command of Rear-Admiral Evans, passed Valparaiso this afternoon and continued on its voyage northward for Callao, Peru, the next stopping place. All Valparaiso and thousands of per sons from every city in Chile witnessed the passing of . the fleet. President Montt and the other high of ficials of the republic came out from shore to greet the battleships, and almost the entire Chilean Navy exchanged sa lutes with them as they swung around Curaumilla Point and into Valparaiso Bay in single file, headed by the Chilean cruiser Chacabuco and five Chilean tor pedoboat destroyers. Turning sharp around Curaumilla Point at 10 minutes after 1 o'clock, the Chacabuco and five Chilean destroyers led the Connecticut and her 15 sister ships into the view of the thousands who had awaited their ap pearance since dawn. The day was per fect, and the spectacle of the fleet, stretched in a great semi-circle, as seen from the high hills around the bay, was magnificent. Montt Reviews the Fleet. President Montt and other Chilean of ficials embarked on the training' ship General Baquedano and took a position well out in the harbor. Around the Baquedano the fleet swung at a speed of four knots, firing the Presidential salute as they passed In review. It was one hour from the time the head of the fleet entered the bay until the last vessel had passed the President's ship and turned toward the open sea. Then the Baquedano lifted anchor and escorted the fleet well out of the bay and on Ha way to the north. It was a review such as has never before been seen in Valparaiso Bay, and one that will long be remembered by the people of Chile, who came miles to see It. Shipping in the harbor and the principal buildings in the city were dressed for the occasion, as the day was observed as a holiday in honor of the fleet. From the picturesque sloping hills dotted with houses a profusion of bunting and the waving of flags were descernlble from the bay. Thousands of persons from Santiago and other places in the repub lic had come into Valparaiso for the oc casion, and the roofs of the Bolsa Com mercial, with its two huge towers, the custom-house and the large warehouse AMERICAN and other buildings along the circular road skirting the bay front were black with spectators. Enthusiasm Is Unbounded. The enthusiasm of the Chileans was almost boundless, and they cheered lus tily as the battleship fleet swung around the reviewing ship, their sides lined with jackles in immaculite white and the bands playing patriotic airs, t The noise of the cheering was lost, however, in that of the saluting guns from the fort and the fleet. Altogether 1200 shots were fired. After the fleet had passed to the north ward, a banquet was served on board the General Baquedano by President Montt in honor of the diplomatic corps and his other guests. Toasts were drunk to President Roosevelt and Admiral Evans and his officers, crews and ships, and the universal wish was expressed that the Americans may have fair weather and a safe passage to their destination. In the city of Valparaiso tonight cele- SHAH OF PERSIA REPORTED ASSASSINATED. VIENNA. Feb. 14. A retort la In circulation bers that the 8 hah o't Persia has been assassinated. No confirmation of the report is obtain able here. ( Persia has been In a state of revo lution for several years. Parliament has been established after much tur moil, but the Shah refused to recog nize the principle that hia Cabinet should retire when not supported by a majority in Parliament, as in other constitutional monarchies. -The re sult has been repeated rioting and the building of barricades In Teheran, the casltal. orations of every kind are in progress, and everywhere may be heard- words of praise for' Admiral Evans for having honored Valparaiso with a visit. The passage of the fleet from Punta Arenas, on the Strait of Magellan, whence it sailed at 11 o'clock on the night of February 7, was made to this point without danger or Incident. Harbor Full of Sightseers. The head of the American fleet ar rived abreast of the southern entrance to the harbor at 2:15 o'clock and the first salute was fired. Fort Valdivia, on the south side of the bay, and Fort Vergarla, on the north side, replied. Hundreds of steamboats, tugs, yachts and other craft, all dressed in honor of the fleet, carried thousands of pas sengers out from shore. A striking piece of landscape dec oration was the-forming in gigantic letters of the word "Welcome" by sev- f eral thousand sailors dressed In white and lying on the hillside. The beach was bright with the color of the mov ing thousands, . the wharves were crowded, and even the boats in the bay had their venturesome occupants. Never (Concluded on Page 4.) IV 1 1 if - 4 f ' I i 1 1 4 i t VIENNA. Feb'. 14. A retort la In X t IN OREGON'S POLITICAL, BARNYARD MASSING FORCES AROUND 10 MEN Taft and Hughes Lead ers in the Race. ANTIS ARE BACKING HUGHES Strong Among Senators and Cannon's Friends. THEY HIDE THEIR HANDS Opponents of Taft and Roosevelt Policies Are Corporation Sen ators Square Issue to Be Fought Out at Chicago. .. (Walter Wellman to Chicago Record Herald.) WASHINGTON, Feb. 14. (Special.) Returning from the Central West, where public opinion is so largely pro-Roosevelt and pro-Taft, one Is surprised to find here so much opposition to the administration and the Presidential candidate who rep resents the administration. This opposi tion In the National capital has two cen tersone In the Influence and ambitions of Speaker Cannon in the House of Rep resentatives, the other In a small group of Republican Senators at the other end of the Capitol. The Republican Senators who stand out against the great movement that is going on throughout the country to perpetuate the Roosevelt policies, with Taft In the White House, are for the most part Sena tors who have close and friendly rela tions with large corporations such men as Foraker of Ohio, Elkins of West Vir ginia, Kean of New Jersey, Crane of Massachusetts and others of less promi nence. Antls Gather Around Hughes. As time passes and the political situa tion gradually develops, it becomes more and more apparent that the Hughes can didacy is drifting into an antl-admlnls-tratlon movement. As the case now stands, if there should be any serious opposition to the administration at Chi cago, It must cluster around the Hughes standard. The present indications are that in the end the struggle at Chicago will come squarely between the two forces within the party the Roosevelt people for Taft, the reactionaries of all sorts for Hughes. Roosevelt Saw Line of Cleavage. President Roosevelt has long believed that such would be . the outcome. He has believed that one by one the so called favorite sons would be forced to step aside and that in the event of more than one ballot the culminating battle must be on this Hue of cleavage: The friends of the administration on one side for Taft, the opponents of the adminis tration on the other side for Hughes. Ipr this Instance, as in many others, the President's political intuition and judg ment have been vindicated by subsequent events. The small group of Republican Sena tors who are trying to defeat the Presi- dent and Taft do not admit they are for Hughes. They claim not to be for any one as yet. WISCONSIN IS FOR BRYAN Adopts Resolutions Instructing Its Ielegates for Commoner. MILWAUKEE, Feb. 14. When the Democratic State Convention to select delegates at large to the National Con vention at Denver resumed today, Evan Evans, of Baraboo, was made perma nent chairman. Mr. Evans made a lengthy speech touching on various Na tional Issues and sharply criticized the Republican party throughout. He con cluded by paying a glowing tribute to William J. Bryan, of whom he said: "Ton see Democracy personified, see Democracy at her best." At the conclusion of Mr. Evans' speech the committee on resolutions presented Its unanimous report as fol lows: "The Democratic party of the State of Wisconsin reaffirms its allegiance to the time-honored principles of Jef fersonlan Democracy and declares its undying hostility to the sham and hypocrisy of Republican National Ad ministrations. "It charges that the appalling abuses disclosed in recent messages of the President are the direct results of the long-continued reign of the Republican party in National affairs. The people can no longer doubt the Inherent per fidy of the system of government fos tered and maintained by the Republi can party, since the Republican Presi dent himself has furnished the evi dence against It. Its malefactors, con victed and unconvicted, are but the shameless products of a system of pub lic plunder and debauchery too long endured by a patient and suffering peo ple. "We regard with Just pride and admira tion that typical American, that match less leader who has blazed the way to wholesome public opinion and so ably championed the cause of the people. His seal and undying energy; his wise and far-seeing statesmanship, stamp him as the greatest living American statesman and endear him to all those who believe In equal rights to all and special priv ileges to none. "We, therefore, declare that we are unanimously In favor of that great Com moner William Jennings Bryan as the next Democratic candidate for President of the United States, and we hereby in struct our delegates to the National Democratic Convention at Denver to vote for William J. Bryan as the Democratic nominee for President, first, last and all the time." The report of the committee on resolu tions was unanimously adopted by a ris ing vote. The convention then proceeded to place in nomination candidates for delegates at large. , Delegates at large were elected as fol lows : Charles H. Weisse, of the Sixth Con gressional District; Herbert H. Manson. of Wausau; J. A. Aylward, of Madison, and Melville A. Hoyt, of Milwaukee. The convention then adjourned sine die. FAIR SONGSTER DEPORTED Immigration Officials Won't Reveal Findings Against Woman. NEW TORE, Feb. 14. Mies J. Trabei llnl, a singer from the La Scala Grand Opera-House In Milan. Italy, who, she says, came to this country hoping to secure an engagement at the Metropolitan or the Manhattan Opcra-House, will be deported tomorrow. This action was de cided upon by the Immigration authori ties tonight, although the detailed findings were not made public. The only Informs tlon available was that the presence of the singer in this country was considered undesirable. , CONTENTS TODAY'S PAPER The Weather. YE59T"F?niAY8 Maximum temperature, 61 degrees; minimum. 4. TODAY'S Occasional light rain; southerly winds. Foreign. Reported Assassination of Shah of Persia.. Page 1. Quarrel about Macedonia arrays European powers lji hostile camps. Page 2. Solomon Islanders tomahawk captain, of labor-recruiting vessel. Page 3. National. Senate committee favors suit to forfeit rail road land grants. Page 4- Hard shots At Aldrlch currency bill In Sen ate. Page 4. Pulton asks for estimate of buying Willam ette locks. Page 5. American fleet reviewed at Valparaiso and given great reception by Chileans. Page 1 politics. Republicans .rallying around Taft and Hughes as leading candidates. Page 1. Wisconsin jDemocrats declare for Bryan. Page 1. jDomestlc. Move to appoint receiver for Mutual Re serve Life insurance Company. Page 2. Shippers argue to Senate committee In favor of a bill to regulate car supply. Page 5. Morgan syndicate bids on New York City bonds. Page 3. Tornadoes wreck three towns In Mississippi and one In Texas, taking many lives. Page 3. Sport. Racing automobiles stuck In snowdrifts. Page 3. Thompson Colts win flve-men bowling cham pionship. Page 7. Parifle Coast. Ruef and his family present affidavits In support of Immunity plea. Page 6. California warned to prepare for new plague outbreak. Page 3. Inland Empire excursion at Los Angeles. Page 4- Marine Engineers threaten strike which would tie up coast steamers. Page 4. Ship Emily Reed wrecked off Nehalem River; 10 lives lost. Page 1. Federal Court decision in Joint rate wheat case. Page 1. Defaulting Willamette school clerk prefers jail to bail. Page 6. Salem people confident McNary will be named District Attorney Page 6. Commercial and Marine. Hop Union promoters still at work. Page 15. Eastern wheat markets decline but close steady. Page 15. Advancing tendency In stock market. Page 15. Spring trade opens, but not equal to last year. Page 15. Portland and Vicinity. Defense In Anderson murder trial refuses to Introduce testimony; rests on state's evi dence. Page 10. Order of B'nai B'rlth meets in convention here tomorrow. Page 11. Hotel robbed of valise with contents valued at $500. Page 9. Demurrer in Title Bank case argued. Page 14. H. D- Langllle denounces high taxation of timber lands. Page 11. Oregon hop crop for 1007 140,000 bales. Page 14. Statement No. 1 has few friends among Oregon politicians. Page 7. C. F. Lord explains his arrest m Seattle. Page 7. Society turns out for the Assembly ball Page 10. Five thousand rose bushes pledged for pub lic planting day. Page 10. EMILY REED GOES E Vessel and Coal Cargo Total Loss. STRIKES NEAR NEHALEM RIVER Chronometers Are Wrong and1 Ship Gets Too Close In. TEN OF THE CREW LOST Captain Sights but One Vessel on the Voyage From Newcastle Strug gles Against Storms 25 Fer Cent Reinsurance Offered. savf.o. Captain Kessel. Mrs. Kessel. Charles Thompson, second mats. Barney Sullivan, seaman. H. Franches. seaman. Hermann Bartell. seaman. LOST. DTTBIB. mate. WESTLtTND, carpenter. i HHRSCHPBL.D. cabin boy. DIXON, seaman. DARLING, seaman. JAHNKE. seaman. COHENSTAD. seaman. GII.BKRT, seaman. ABL.ISTEDT. seaman. JOtrxsON. seaman. BAT CITT, Or., Feb. 14. (Special.) The American wooden ship Emily Reed, 103 days out from Newcastle, N. S. W., Vith a cargo of coal for Portland, went ashore half a mile South of the Ne halem River, on the Oregon Coast, at 1:30 o'clock this morning. The vessel immediately broke in two and ten members of the crew were drowned. Captain Kessel, his wife. Second Mate Charles Thompson and three members of the crew were saved. The survivors were brought to Bay City yesterday morning and are now quartered at private residences. The ship has broken up and will be a total loss, as will also the cargo of 2110 tons of coal. The vessel was consigned to ' the Pacific Coast Company at Port land. Owing to the long passage of the ship, 25 per cent reinsurance has been offered on her. Heavy Weather Prevailing. During the past few days heavy weather has been prevailing off the Oregon and California Coast. The chronometers of the Emily Reed were off and the master worked her too close in to shore before he discovered his error. Captain Kessel was en deavoring to make Tillamook Rock. Ma was correct in his latitude, but too far to the eastward. When he dis covered his position it was too late to wear ship and she struck on one of the most dangerous places on the Oregon beach. . The Reed struck at 1:30 o'clock in the morning, bow on the beach. There was a heavy sea running and a strong flood tide. When she hit the beach her back broke and the forward end took a list to port. An effort was made to launch a life-boat. It was put over the side with three men in it. As soon as it hit the water it swamped and the occupants drowned before the yes of those 'left on board. The men forward were swept from the deck by the waves. The mate was washed overboard and drowned while trying to direct the movements of the men forward. Strikes at High Tide. The Captain stuck to the poop and ' forced his wife to remain below. The second mate and three men In his watch were stationed on the main deck. When the forward portion of the ship listed they succeeded in mak ing their way aft. By clinging to that portion of the ship until daylight they made their way ashore. It was then dead low water. It was fortunate that the vessel struck on the top of th high tide, or none of the officers or crew would have ever reached the shore to tell the tale of horror and suspense. At a late hour this afternoon there Is scarcely anything left of the once famous ship. Her coal cargo is strewn along the beach for several hundred yards and it is doubtful whether any of it can be saved. Tale of Hard Luck. Captain Kessel, who is now with J. O. Bozarth at Bay City, said this even ing in speaking of the wreck: "My chronometers went wrong and I missed my latitude. I had en deavored to make Tillamook Rock and was correct in latitude but too far to the eastward. I had hard luck all the way f rc n Newcastle and that same did not desert me. When six days out from the Australian port I was spoken. That was in 32 S. 179 W. Since that time I have seen no one. For, weeks 1 bucked head winds and heavy weather. One storm after another was en countered. This morning I was calleif shortly after the hour of 12 and dis covered that we were too close in. I endeavored to haul out but was too close In. The heavy breakers and the flood tide carried me well up on the (Concluded on Page 4.J ASHDR ROCKS