r v IV 1 It- a II J LI IU k KM VH II J 11 1 il If 7 A r tfll 11
VOL. XLVIII.-XO. 14,735.
PORTLAND, OI?EGOX, WEDNESDAY, FEBRUARY 19, 1008.
PRICE FIVE CENTS.
FINDS LAND GRIT
BL1GHT0N OREGON
Terms Violated From
the Very First.
USED TO CHECK DEVELOPMENT
Sole Purpose to Exclude Rail
road Competition.
TOWNSEND MAKES REPORT
History of Oregon & California Rail
road Full of Deeds of Broken
Faith Abundant Ground
' for Bringing Suit.
ORBGONIAN NEWS BUREAU. Wash
ington, Feb. 13. The substance of the re
port, of B. D. Townsend on his investiga
tion of ths Oregon & California Railroad
land grant was made public today for the
first time, and. shows In a general, way
the facts on which the Government will
base Its suit to compel the railroad com
pany either to comply with the law of
forfeit its title to the grant. 'The report
is so full and explicit is to require no
explanation. The following extracts are
made:
"The provision of the grant restricting
the number of sales have-never been re
spectedw Lands have been sold to any
person, whether settler or speculator, in
as large quantities as possible and at the
highest price possible. In making sales
the railroad company, has always . ob
served the law of supply and demand and
haa never obeyed the law of Congress.
Substantial violations of the termsof the
grant occurred from the very beginning.
Among the first conveyances executed in
1S72 several instances occur where land
was sold at prices largely In excess of
fcl.&O per acre, sometimes as high as $10
per acre. In 1874 three instances are
found of conveyances to a single pur
chase of quantities exceeding 1000
acres each. These violations continued
throughout the history of the grant.
Sells to Timber -. Speculators.
"When the E0ithern Pacific system se
cured control of the land grants the first
thing they did was to organize an ef
fective land department. Land examiners
and timber cruisers were employed and
a force set to work to ascertain and ap
praise the value of each specific tract of
land contained in the grant; this had
never been done before.
"About 1890 some of the old and experi
enced tlmberraen of Michigan, Wisconsin
and Minnesota were attracted by reports
as to the timber lands of Oregon. There
suddenly arose a tremendous demand for
lands by wealthy timbermen and specula
tors in the East. The railroad company
was quick to see its opportunity to profit
by disposing of lands contrary to the
terms of 'the grant. -It immediately be
gan to; make sales in quantities ranging
from 1000 to many thousand acres.
Only Gives Quit-Claim Deeds.
"In 1831 it changed all Its forms of deeds
and contracts and has ever since refused
to execute anything but the quit-claim
form of deed, except where it had by prior
contract obligated itself to do otherwise.
This Is a most unusual drcumstance. The
- title of ths railroad company consisted
elmply of a grant from the United States.
It Immediately determined to take advan
tage of that opportunity, wholly Ignoring
the conditions of the grants and sought
protection, against responsibility for these
violations of law by the adoption of the.
quit-claim form of conveyance. This pol
icy was pursued by the company without
restriction until 1902, during which period
approximately 400,000 arres of land were
sold to timbermen and speculators, in
quantities exceeding 1000 acres- to each
purchaser.
Stops Sales Entirely.
"Late in 1902 the railroad company
adopted a new policy and permanently
withdrew all of its lands from sale.
There, then remained in its hands approxi
mately 800,000 acres, most of it In viola
tion of the terms of the grant, it resolved
upon the plan of asserting an absolute,
unqualified and permanent estate in the
balance of grants in its own favor. Vari
ous excuses for this stephave been gtven
from time to time. In a public speech at
Oakland during September, 1907, Mr. Har
riman admitted that this policy was in
tended to be permanent.
"Of 813,908 acres sold by the railroad
company, only 127,418 acres were sold
within the limitations of quantity and
purchase price prescribed by the grant,
od 515, 918 acres were sold In quan
tities exceeding 160 acres', of which
S63.991 acres were conveyed or sold to
98 purchasers in quantities -exceeding
C0O0 arres to each, purchaser since the
yeor W97.
Used to Retard Development.
"T.he grants placed In the hands of a
single proprietor nearly one-half of the
lands of Western Oregon, subject to
conditions, however. Intended to insure
distribution of land In small quantities
among the producing class. Notwith
standing these conditions, the greater
portion of the land still remains in the
hands of a single proprietor, which re
fuses to sell it, develop it or improve
it. simply holding it to share the bene
fits which shall result from the labor
of others. The greater part of the
land sold went into the hands of pro
. printers of the same class.
tiUiat tk jHXfliait .railroad, inteieats J
are deliberately using the land grant
for the purpose of retarding the devel
opment of Western Oregon cannot be
asserted as a fact; but it is certain
that its policy has this direct effect,
and it is not. difficult to understand
that a selfish purpose may be sub
served thereby. In this connection it
is proper to consider that the Oregon
& California Railroad Company is now
part of a well-organized transporta
tlen system which controls the com
merce of approximately one-third of
the United States. So far as Western
Oregon Is concerned, this railroad sys
tem not only holds an absolute
monopoly of transportation, but,
through manipulation of the land
grant, practically controls production.
Checks Railroad Competition.
"The following facts are significant:
The present transportation facilities of
Western Oregon are taxed to their full
capacity in handling the products of the
country. If the railroad company should
abandon its present policy and dispose of
B. 1. Townsend, the Special Attor
ney for tbe Government, Who .Ex
posed the Violation of the. Land
(.rant Laws by Harriman Koads.
Us land grant to those, who would de
velop it and subject it to productive in
dustry, it is certain that the increased
production of the country would be so
greatly In excess of the present trans
portation facilities that competing trans
portation lines would be attracted to the
state. It la equally certain that, with the
Southern Pacific interests controlling sub
stantially one-half the land, no other'
transportation company however for
midable, is likely to venture Into that
territory to engage In competition with
a system . which virtually controls not
only transportation, but also production.
"More than four-fifths of the land grant
now held by the railroad company Is
situated In Southern Oregon. At the timo
the railroad company withdrew its lands
from sale in 1902, Southern Oregon was
developing rapidly. It was largely this
development which taxed the capacity of
existing transportation facilities. The
sale of lands was stopped and the de-
velopment of Southern ." Oregon . was
checked.
Great Increase in Value,
"The total assessed - valuation of the
land grant for the year 1907 was approxi
mately. J18,000.000. whereas prior to the
year 1902 the assessed valuation had never
exceeded $2,000,000. Of the total taxes
paid by the railroad company on ac
count of its land grant, from 1870 to the
present time, more than one-half has
been paid since 1902.
"If the conditions of the grant had
been observed, under no circumstances
could the . railroad companies have,: en
Joyed a bounty exceeding approximately.
8,000,000 from the disposition of the lands
(Concluded on Pago 4.)
CONTENTS TODAY'S PAPER
The . Weather.
TWTERDAT'B Maximum .temperature, 43
degrees: minimum, 32.
TODAY'S Rain; southeasterly winds. '
National,
Toiwnsnd reoorts on Oregon & Califwnia
land (rant and Senate debates suit for
recovery. Page 1.
Stone speaks against AJdrich bill. ' Pug- 2.
Government shows Oregon's position as cat
tle state. Page 14.
Politics.
Illinois Republican committee declares for
Cnon for President. Page S.
Boutell . booms Cannon in speech In House.
Page 3.'
Mulkey In Washington maneuvering . for
Stilton's seat. Page 1.
Tatt speaks at Concord, N. H. Page 4.
Bryan speaks at Columbus. Page 4.
Domestic
Greatest snowstorm In 20 years races ' in
Middle West. Page 1.
Railroads stert to reduce wages and clash
with labor unions is likely. Page 1.
Pencypacker testifies In capitol graft trial.
Page 3.
Son of Crap'sey. ths heretic, accused of fraud
in Army. Page 3.
Tonopah grand Jury will Indict officers of
State Bank & Trust Company. Page 2.
Sport.
American auto passes through Ohio, leading
all 4 racers. Page 3.
World's record broken In Individual bowling
match. Page 3.
Pacirle Coast.
Ach scores Honey In argument on Ruefs
. Immunity plea. Page 6.
Los Angeles woman sleeps f or ten days.
Page 1. . 4ti j M
Portland business men Join Salem In cele
bration of opening of Oregon Electric
Page 1.
Double tragedy In Seattle hotel: Face .
Portland Japanese fined for. attempting to
evade Natal act at New Westminster.
Page 6.
Commercial and Marine.
Shortage In American supply of canned
salmon. Page l.Y
All grain markets are depressed. Page 18.
Recovery in stork market Is spotty. Page 35.
Sailor on French bark Alice Maria attacks
mate with a knife Inflicting serious
wound. Page 14.
Portland aad Vicinity.
Mayor Ijins testifies In Waymire ease.
Page T.
Broken rail missing at hearing into West
Side wreck. Page 10.
Dan J. Moore leases former Nortonla Hotel.
Page 10.
Rose rese-ve of 1000 bushes will be planted
by Festival Association. Page 10.-
District Grand Ixvdge B'nal B'rlth closes
annua? convention. Page 10.
George W. McMlil-in re-elsctcd, fiCOideilt "of
. 1LA, A, A..' rKA Z,-. .
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I RMiH.lt lMftlffls1l irt-l IllKtt Tl,v,v "Vir I I
CLASH MENACES '
BIG RAILROADS
Move forWage Reduc
tions Resisted.
FEDERAL COURTS INVOLVED
Great Western Receiver Gives
Unions Notice.
THEY REFUSE CONCESSION
Other Roads Move to Cnt Wages
and Strike on Buffalo & Susque
hanna Is Likely Engineers
Prepare to. Tight. .
CHICAGO, Feb. ' 18. Special.) A gen
eral clash between the railroads and their
employes all over the country Is eaid to
be threatened if certain attempts at re
trenchment by the railroad managements
in various sections, are persisted in. The
retrenchments involve reductions in sal
aries of employes of all classes.
The first move has 'been the notice
served by the receivers of the Chicago
Great Western to the organized employes
that a change must be made in existing
wage schedules. Engineers, firemen,
trainmen and conductors have determined
to stand together and resist any wage
reductions, and as the roads are under
the Jurisdiction of the United States
Court, serious complications are likely to
arise.
Employes Intend to Fight.
. A conference between officials of the
road and representatives of the employes
has been set for March S In the general
offices In St. Paul. The employes are de
termined to fight the Issue, as they be
lieve only by a fight can they preserve
their schedules on other roads ' in. the
West.
At the same time the employes are
strengthening their forces on the roads
in the Southeast, and they expect to
strike on the Buffalo & Susquehanna
Railroad in the beginning of March.
Some time ago officials of that road ad
vised their employes to accept a 10 per
cent reduction of wages for the months
of February and March. The proposition
was rejected, and the road served notice
that the existing schedule would be ter
minated on the last day of this month.
Blow Aimed at Engineers.
' The Southern Railway has called a con
ference of the general committees of all
the railroad brotherhoods, to be held in
Washington February 21, -for the pur
pose of making a general reduction in
wages. The movement is aimed es
specially at the locomotive engineers, and
Grand Chief W. B. Stone has called a
hurried meeting of his advisory board to
prepare for a general fight.
An official of one of the big railroad
brotherhoods declared tonight that a fight
"Xfl, Bt TOfJifl FRlRfO, THERE IS
HAVING A MOST PROITXABIE
was inevitable on some one of the roads,
and that it probably would Involve a num
ber before it finally was adjusted.
ULTIMATUM FROM ENGINEERS
Will Strike on Steam- Schooner: Un
' less Owners Withdraw Demand.
SAN FRANCISCO. Feb. 18. The execu
tive committee of the Marine Engineers'
Association decided tonight' to notify the
Steam Schooner-owners' Association, of
San Francisco, that 4S hours from, mid
night tonight they will refuse .to allow
any member of the association to work
on any steam schooner owned by a mem
ber of the Owners' Association unless the
ultimatum sent them today by the owners
Is rescinded.
The steam schooner-owners, In their
communication sent by Secretary A. B.
Hammond to Secretary J. J. Seary, of the
engineers, say in effect that -from this
time on they will formulate their own
rules and that, while they do not pro
pose to lower the wages, they will . not
be forced to abide by rules which compel
them to carry more men than they were
obliged to carry when the lumber busi
ness was good and prices -for cargoes
were much higher than they now-are.
The engineers demand that three en
gineers be carried on .vessels .of more
than 500 horsepower plying further south
than San Diego and further north than
Portland. This was a partial concession
from a former rule laid down by the as
sociation. There seems to be no doubt In the
minds of shipping men tonight that a
strike will take place which may be
long-drawn-out and far-reaching.
May.. Tie Monument Works.
NEW YORK, Feb. 18. Wholesale monu
ment dealers in this city predict a general
strike of the cutters and allied unions
against the. quarrymen. beginning Maroh
1, which will extend throughout the New
Kngland marble ajid granite district and
affect the trade all over the country.
MULKEY GETTING BUSY
REPORTED TO HAVE YEARNING
FOR FCLTON'S SEAT. "'
Circulates in Capital and Is Ac
cused of "Knocking" Fulton and
Seeking Bourne's Aid.-"
OREGONIAN NEWS BCR&AU, Wash
ington, Feb. 18. Ex-Senator Fred Mul
key, of Portland, is here on a mysterious
mission, at least he acts mysteriously
about 11. It is understood that he Is of
fering criticisms of Senator Fulton and
endeavoring to spread the opinion at the
Capitol and among Government officials
that Mr. Fulton is attempting to prevent
the bringing of suit against the Southern
Pacific to adjust the Oregon & California
land grslnt.-
Senator Tillman, whose resolution Mr.
Fulton today tried-'to pass,' has received
similar complaints from Oregon and is
today answering that- Mr. Fulton In
reality is the only man in the Senate who
is earnestly endeavoring to have suit be
gun. Mr. Mulkey had a conference with
Senator Bourne today and it is believed
that be Is feeling out the Junior Senator
to ascertain whether or not he will give
Mulkey support should he (Mulkey) re
consider and become a candidate against
Mr. Fulton.
Alfonso Not Blown Cp.
MADRID, Feb. 18. There is no truth
in the report current In Paris last night
that King Alpbonso had been assassin
ated. The rumor probably was an out
growth of the bomb explosion at Barce
lona yesterday, which now appears to
have been the work of anarchists. In ad
dition to killing one woman and danger
ously wounding- another and a child, the
explosions caused much damage to build
ings. NOTHING WORTH MENTIONING IN THE
SESSION OF SP1R11XAX, REFRESHMENT
' . II It I I X)
T
STORM E
CHICAGO TRAFFIC
Worst Windy City Has
' 1 Seen for Years.
GENERAL IN MIDDLE WEST
Snowfall Is Heavy and Gale
Blows at 50-Mile Gait. '
WOMEN KEPT OFF STREETS
Force of Gale - Such :That Thejk Are
Swept;- Ofr Their Fcet Snow
'. plows Are Inadequate to
Keep the Tracks Clear.
WORST STORM IN Xe TEARS. .
- Extent.
General throughout the Middle
West, where snowfall Is very heavy.
In the East rains h&vs caused dan
ger from floods.
Snowfall Darius Day.
In Chicago Seven Inches.' v-
In Omaha, Fourteen lnchea , -
In Kansas Five Inches.
In Des Moines Eight lnchea
In Peoria Eight Inches.
Kesnlta.
I
Trains stalled and traffic on
streets of many cities completely
tied up.
Several deaths occur In Chicago.
Fishing-boat wrecked; two lives
lost. '
CHICAGO, Feb. 18. Several deaths,
many injuries and much suffering fol
lowed today in the wake of one of the
worst blizzards experienced in this sec
tion la several years. Traffic on surface
and suburban lines is practically tied up
tonight and downtown t hotels are filled
with residents of outlying districts, who
found themselves unable to reach their
homes.
The storm, which broke early in the
day, raged with increasing fury until
nightfall, subsiding somewhat toward
midnight. One of the most tragic occur
rences in connection with the storm was
tha wrecking in the harbor at Waukegan
of the fishing boat Ansonpah, in which
two men lost their lives and 'six. others
had narrow escapes from death.
WORST IN SCORE OF YEARS
Storm Paralyzes Traffic in Chicago
and Causes Suffering.
. By 4 o'clock in the afternoon seven
Inches of snow had fallen and it was still
coming down heavily. The wind at fre
quent intervals blew with a velocity of
50 miles an hour and it hurled the snow
through the streets ' in such blinding
clouds that it was impossible to see for
a greater distance ' than a half square.
NEWSPAPERS. WE HAVE BEEN
A NO AJBOCNDINO GRACE."
ea f
A great number of accidents of a minor
character were caused by collisions be
tween wagons and streetcars.
At 6 o'clock, when the home-going
cowd was thickest, the wind was blow
ing so heavily and the snow was falling
In such blinding sheets that it was posi
tively dangerous to attempt to crosa
Michigan avenue and its Intersection with
either Jackson Boulevard or Van Buren
street. These crossings are used by
thousands of people every night to reach
their homes in the southern part of the
city and in the suburbs, by means of the
Illinois Central Railroad. It was found
necessary to station a large number of
city and park police at these corners to
assist women, and often It was more than
one officer could do to pilot a wpman
across without assistance. .It was out of
the question for a woman to cross the
street by herself.
The streetcar lines and elevated roads
fared well throughout the day, but the
heavy increase of snaw that came late
In the afternoon made desperate work for
Speaker Joseph G. Cannon, Whose
Presidential Boom Was Launched
Yesterday In' Illinois and Wash-
ington Simultaneously.
them. Every available man and all the
snowplows were constantly at work In
keeping the tracks clear. In the suburbs
the trolley lines were operated with great
difficulty because of the constantly in
creasing drifts. '
MUCH SNOW, BUT NO COLD
YVheatgrowers In Kansas Rejoice
Over the Storm.
KANSAS CITY, Feb. IS. The snow
storm that prevailed all day in Kansas
and Western Missouri continues tonight,
but without low temperature, most points
reporting the thermometer above 20 de
grees. In Kansas City the snow fall up
to 9 o'clock tonight was about one and
one-half inches deep, but in Southern and
Central Kansas, four or five inches have
fallen. Trains are not seriously delayed,
and the storm is 'highly satisfactory to
wheatgrowers and frultmen.
FOURTEEN" IXCHES OF SNOW
Heaviest Fall Known in Omaha In
20 Years.
OMAHA, Neb., Feb. 18. Following a
continuous fall of snow lasting 24 hours,
accompanied by a wind which heaped it
into drifts, and almost tied up all kinds
of street traffic, the mercury began a
downward course this evening. All rail
road trains were late and in some in
stances morning overland trains did not
reach Omaha until this evening.
Nearly 14 inches of Bnow fell, the
heaviest in 20 years. There was a heavy
run of Hv-eBtock at the yards today and
much suffering from the storm was the
result.
GORGE THREATENS DES I01XES
Ice Jam Above City Dynamited With
No Success.
DES MO INKS, la., Feb. 18. A blizzard
which started last night and''still rages
today has delayed trains on all roads
from one to four hours, stopped street
cars and interfered with telegraph and
telephone communications. Eight inches
of snow has fallen and drifted badly.
On Raccoon' River an ice gorge six
miles long has formed just above the city.
City officials are using dynamite to blow
up. the gorge, but - with poor success.
People are moving out of houses on the
lowlands. . For the first time In the his
tory of the city a big Ice gorge threatens
destruction.
FLOOD X EARING CINCINNATI
1 Not Believed Conditions WH Grow
Much More Serious. -
CINCINNATI,. Feb. 18. Tomorrow and
Thursday the crest of the flood is ex
pected here, having passed Parkershurg
today. Inundation of lowlands has been
reported all along the river, and thou
sands 'have been driven from their
homes, but It is now believed that condi
tions will not grow much more serious.
SLEET ADDS TO SUFFERING
Rivers Rapidlr Rising Drive Out
Many Families.
HAZTjEJTON, Ind.. Feb. 18. While River
today has risen nine Inches in 12 hours.
Reports from St. FVancisville, 111., say tile
Wabash is rising tfTere. Hundreds of
families are living in hastily improvised
boats In the flood district. A cold north
wind blowing, rain and sleet, are. Increas
ing the suffering of the flood refugees.
Boats Sunk in Ohio.
HENDERSON, Ky.. Feb. 18. The big
towboat B. B. Williams, of Pittsburg,
and four' barges heavily loaded with coal,
were sunk here today.
The river Is already above the danger
line here, and spreading over the Indi
ana lowlands. Refugees are crowding
Into Henderson.
Crest of Flood Passes.
UAWjIOPOLJS, O.. Feb. 18. The crest
(Concluded on Pace 4.1
SALEM EXTENDS
THE CLAD
Portlanders Guests of
Capital City.
CELEBRATE ROAD OPENING
Completion of Oregon Electric
Occasion for Felicitations.
BOOSTERS TELL TRIUMPHS
How and Why Oregon Has Mad
Rapid Strides In the Fast Five
Tears) Still Greater Increase
in Prosperity 19 Predicted.
SALEM. Or., Feb. 18. (Special.) Twe
hundred visitors from Portland and other
cities of Western Oregon Joined with:
Salem tonight In celebration of the com-i
pletlon of the electric line which con-,
hecta the metropolis and the capital.!
Hearty welcome was extended to the!
guests, warm congratulations were show- ,
ered upon the people of Salem, and both'
guests and hosts Joined in discussion of
methods of further promoting the indus
trial and commercial welfare of this sec
tion of the state. The occasion was one
long to be remembered in the history of
Salem, for it was not only a time of re
joicing, felicitation and good cheer, but
was also the beginning of a new era In
local industrial enterprise and public
spirit. While listening to the pleasing
compliments voiced by their guests in
speaking of the achievements of the past,
the people of Salem resolved to make
greater and more systematic! efforts In
the future, to the end that sills cltyshall
be outdone by rtone In enterprise, but
shall hold her own as second city of the
state.
Hur.dred Portland Guests.
The Salem Board of Trade planned and
carried Into successful execution this en
joyable event. Over a hundred of the
leading business men of Portland came to
Salem on the Oregon Electric cars this
evening as special guests of the Board
of Trade. Another hundred came from
towns in Marlon County and from cities
south and on the west side of the Wil
lamette. These visitors were entertained
at dinner at the Willamette Hotel and
later they. Joined the business men of
Salem in a smoker at the Elks' Hall and
Illihee Clubrooms, whtre the formal exer
cises were held. ,
No effort was spared that could add to
the pleasure of the occasion, and that
the officers and members of the Board of
Trade were highly successful was evident
from the many expressions of apprecia
tion heard among the guests.
: , Alight on Paved Streets..
The people of Salem were proud of their
paved street this evening when the .Ore
gon electric cars rolled In and morethan
a hundred residents of Portland alighted
at the corner of Court and High streets
with a drizzling rain falling. Instead of
tho muddy streets and crosswalks of a
year ago, there lay before the visitors a
pavement as smooth and clean as any in
Portland. The crowd made a short cut
down the street to the Illihee Clubrooms
where an hour was spent in conversation,
and personal Introductions. At S o'clock
dinner was served and then another hour
was spent at the club.
At 8 o'clock, the beautiful hall of the
Lodge of Elks was crowded to its full
capacity by the assembled "boosters."
President F. G. Deckebaeh, of the Salem
Board of Trade, called the assemblage to
order' and presided over tfie meeting.
After a few appropriate expressions of.
gratification, over the large attendance;
and the enthusiasm manifested, he Intro-1
duced Mayor George F. Rodgcrs, who, in
one of the exceedingly witty addresses;
for which he Is famous, welcomed the!
visitors to the city. He brought down the;
house by his solemn regrets over the:
absence of Mayor Lane, of Portland, who
had been detained "by pressing legal en
gagements." Pledge Support to University.
Turning to serious dlscuFsion of the
occasion, which had brought together
this crowd of representatives of nearly
every industry In the state, he declared
that Salem Is a progressive city, that
Its people have learned that it Is Worth
while to get together and put down the
almighty dollars necessary to adver
tise the city to the world and promote
the development. Speaking particu
larly to the visitors from Eugene, he
declared that "the people of Salem are -your
friends and also friends of that
magnificent educational Institution lo
cated In your rldst, of which friend
ship we shall glve evidence at the
election in June." Mayor Rotlgers" ap
proval of the University appropriation
bill was heartily applauded.-
President C. W. Hodson, of the Port
land Commercial Club, spoke upon tho
need of organization, saying that "suc
cess cannot be achieved if a few men
bear the expense of spasmodic develop
ment work. There must be organized
effort by which a large number of cltl
zens contribute to a fund large enough
to employ a competent promotion :
manager, with a staff of assistants who
carry on systematic work for the pur- ,
(Concluded on Page 6.)
HAND
i"V
3
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