8
Trrr 3I0RNI' OKEGOXIAX, TUESDAY. MARCH 10, 190S.
SIBSCKIPTION KATES.
INVARIABLY IN ADVANCE.
(Br Mall)
Dally, Sunday Included, on year. . . .$8 00
Dally. Sunday Included, six months.... 4.25
Daily. Bunday Included, three months.. 2.-3
Dally. Sunday Included, one month.. -?5
Dally, without Sunday, one year a 00
Laiiy. without Sunday, six months 3 -5
Iaily. without Sunday, three months.. 1.75
Dally, without Sunday, one month JO
Sunday, one year J-"
Weekly, one year (Issued Thursday)... J JO
Sunday and weekly, cno year -
BY CARRIES.
Dally. Sundav included, one year ."0
Daily. Sunday Included, on month 7
HOW TO REMIT Bend poatodice money
order, express order or personal check on
your local tank. Stamps, coin or currency
are t th sender's risk. Give postofflce ad
dress In full, Including county and state.
I'O. STACK BATED.
Entered at Portland. Oregon. Poatottlc
as Second-Class Matter.
10 to 14 Paces 1 cent
1 to 28 Pares 2 cents
SO to 44 Pages 3 centa
4 to eo Pages 4 cents
Foreign pontage, double ratea
IMPORTANT The postal laws ar strict.
Newspapers on which postage Is not fully
Prepaid ar not forwarded to destination.
EASTERN BUSINESS OFFICE. .
Th 8, C. Beekwltb (Special Ageooy New
York, rooms 48-60 Tribune building. Chi
cago, rooms 610-M2 Tribune building.
KEPT OS SALE.
Chicago, Auditorium Annex; Postofflce
News Co., 178 Dearborn street: Empire
News Stand.
St- rsul, Minn. N. St. Marie, Commercial
Station.
Colorado Springs, Colo. Bell. H. H.
Denver. Hamilton and Kendrlck. K08-912
Seventeenth street; Pratt Book Store. 1214
Fifteenth street; H. P. Hansen. 8, Rice.
Oeorge Carson.
Kansas City, Mo. Rlckseeker Cigar Co
Ninth and Walrut; Yoma News Co.
Minneapolis At. J. Cavanaugh. SO South
Third.
Cincinnati, O. Yoma News Co.
Cleveland, O James Pushaw. 307 Su
perior street.
Washington, D. C. Ebbltt House. Penn
sylvania avenue; Columbia News Co.
Pittsburg. Pa. Fort Pitt News Co.
Philadelphia. Pa. Ryan's Theater Ticket
Office; Penn News Co.; Kemble. A. P.. 8735
Lancaster avenue.
New York City Hotaling's newstands. 1
Park Row, S8tli and Broadway. 4-d and
Broadway and Broadway and 29th. Tele
phone . 0374. Single copies delivered; L.
Jones A Co.. Astor house; Broadway The
ater News Stand; Empire News Stand.
Ojrden. D. W Boyle: Lowe Bros.. 114
Twenty-fifth street.
Omaha. Barkalow Bros., rjnion Station;
Xagiath Stationery Co.: Kemp & Arenson.
fes Moines, la. Mose Jacobs.
f'rejno, t'al. Tourist News Co.
barramento, Cal. Sacramento News Co..
430 K street: Amos News Co.
halt Lake. Moon Book & Stationery Co.;
Rosenfeld & Hansen: U. W. Jewett. P. O.
corner; stelpeck Bros.
Isng Brarh, Cal. B. E. Amos.
Pasadena. Cal. Amos News Cm.
Han Iliego. B. E. Amoa,
hta Jose. Emerson W.
Houston, Tex. International Newa Agency.
llallaa, Tex. Southwestern News Agent.
344 Main street; also two street wagons.
Ft. Worth. Tex. Southwestern N. and A.
Agency.
Amaiilla, Tex. Tlmmons Pope.
San. Francisco. Forster & Orear: Ferry
News Stand; Hotel St. Francis Newa Stand;
L. Parent; N. Wheatley; Falrmouiit Hotel
News Stand: Amoa News Co.: United News
Agency, 14tt Eddy street; B. E. Amos, man
ager three wagons; Worlds N. S.. 2625 A.
butter street.
Oakland, CaL W. H. Johnson. Fourteenth
and Franklin streets: N. Wheatley: Oakland
News Stand; H. E. Amos, manager five
wagons: Welllngham. U. Q.
(ioldHeld, Ner. Louie Follln.
Eureka, Cal Call-Chronicle Agency; Eu
reka New Co.
PORTLAJilF. TUESDAY, MARCH 10, 1908.
NEGATION OF REPRESENTATIVE GOV
ERNHENT. It is just as well. Indeed It is neces
sary, that the people of Oregon should
be candid with themselves about the
change of the constitution of the
state from the representative to the
initiative and referendum system.
Were it to be offered again it would
not carry. Impatience with abuses
caused It to carry when it did. But
those abuses could have been correct
ed by insistence on the character of
representatives; under the old system,
By the new system a new sort of
abuses or evils has been introduced,
with no present means of correction.
It waa not intended that representa
tive government should be abolished
by the new system; but it has been
abolished by it. Any group of per
sons, from the cave of Adullam, or
other group of persons of ill-arranged
intellects, can propose initiative meas
ures or call the referendum; and there
is danger always that the crudest
measures may pass into law, through
the inattention of the voters, or that
proper legislative measures may be
turned down through the referendum.
The situation is the crank's paradise.
Theoretically the system is plausi
ble, and seems quite right. But it
doesn't prove so in fact. It opens a
door to every description of irrational
legislation and obstruction. It pre
supposes a forbearance, balance, judg
ment and wisdom not sufficiently es
tablished yet. anywhere. Perhaps our
ancestors, who committed themselves
to representative government, and who
supposed they were establishing It for
the benefit of their posterity, were not
so great fools, after all.
Now, however, we are obliged to he
vigilant and active. In every election,
to keep crazy Initiative measures like
the new scheme of taxation down:
atid o defeat such calls of referendum
us that for starvation of the leading
educational institutions of the state.
The system does not work out in ac
tion and practice, as those who voted
for it supposed it would. It could not
have been supposed there would be so
many groups of persons devoted to
htrange and multifarious crazes. Tet
there remains a sane majority. That
majority would not now, after it has
gained this knowledge, vote for a sys
tem which praves to be the negation
of representative and deliberative gov
ernment. Against the primary law, which is
part of the new system, there Is less
objection. Such objection as may be
made to it rests on the fact that it, too,
rejects the representative principle,
and presents as party nominees men
who do not represent their party, but
merest fractions or factions or frag
ments of it. This, however, may be
borne, and perhaps may correct itself.
In time. But when it presumes to foist
upon a law a statement or pledge, to
he taken by a candidate for the Leg
islature, that he will support for the
highest political office, in a contin
gency likely to arise, a man of the op
posite political party. It goes to the
extreme of irrationality a'nd absurdity.
The man of good sense spits at the
whole scheme.
Representative government, after
all. is a pretty good thing. Oregon
will yet return to it. Advocates and
supporters of representative govern
ment, these thousand years, have not
been such fools as our new statesman
ship may assert. A hoodoo of spirit
ism, founded by an adventurer upon
the wreck of the estate of a pioneer
family, is not going to last In Oregon.
In the death of Bernard Albers the
business community of Portland, as
well as other Northwestern cities
where the big milling plants of his
firm were located, has suffered a heavy
loss. Mr. Albers arrived In Portland
in 1858, but two years after leaving
Germany, the land ofshis birth, and in
the two decades since his arrival In
Portland he advanced from the posi
tion of a humble wage-earner to that
of the head of one of the largest in
dustrial enterprises on the Pacific
Coast. The life history of this enter
prising man and good citizen offers the
strongest possible refutation of the
oft-heard wail of the malcontents that
merit can no longer win rewards. It
also proves beyond question that the
Old World can never send to our
shores too many Immigrants of the
Bernard Albers type. Our entire so
cial and economic system would be
the gainer if more of the immigrants
would emulate the example of this en
terprising German-American. It is re
grettable in the extreme that he should
be called away at the early age of 44
years, but in that brief period he had
accomplished results that remain as a
lasting monument to his memory.
"FACE IT WE MCST."
From several sources this sentiment,
or the like of it, is peeping up its
head round about. This particular ex
pression of the idea we find in a pa
per published In Curry County, Ore
gon: One of the greatest problems before the
American people today, and the one that must
be faced and satisfactorily settled Is that of
takirg care of, or providing for the unem
ployed. In Curry County, Oregon, of all
places in the world; in Curry County,
Oregon, where the whole bounty and
prodigality of nature are spread before
man; where he is at liberty to possess
himself of the bounty and prodigal
ity of nature, without let or hindrance.
And yet there, the community, the
state, must take care of the unem
ployed or provide for the unem
ployed! "Face it" we must not, except
to turn it down. It is the business
of every person to employ himself, or
find employment for himself; to use
his powers; to employ foresight and
judgment; to think of the morrow; to
do his work so well in every employ
ment that offers that his services be
come indispensable. Such do not have
to seek employment, for employment
always seeks them. The only reason
in a country like ours why people are
unemployed is because they are not
useful to employers; consequently
not Useful to themselves.
In this State of Oregon there are
unlimited opportunities. Two-thirds
of its area is still virgin soil. There
are opportunities everywhere. But of
course there must be labor and self
denial, not equal to the labor and
self- denial of the pioneers, but still a
willingness to work and wait. Tet if
men and women are not willing to pay
the price they will not obtain the free
dom and reward.
Even in the crowded districts of our
cities, in the Bowery and East Side
district of New York, there is no "tak
ing care of the unemployed," or "pro
viding employment" for them. To
make it a business to "take care of
the unemployed," or to "provide em
ployment for them," would be to re
duce a great and constantly increas
ing mass to dependence and pauper
Ism. Society would perish, through
its mistaken or misguided philan
thropy. It is the tendency towards the falla
cies of socialism that utters such senti
ments as that quoted above. And that
they should be uttered in Oregon,
where fifty thousand square miles,
awaiting the industry of man, are
practically s without an inhabitant!
"Face it we must," indeed. But we
we must face it by telling men and
women that they must do as men and
women did aforetime; that they must
not wait for opportunities, but make
them: that they follow and prac
tice the old virtues of industry, pru
dence and self-denial, study and prac
tice the precepts of men and women
of the former time, who lived earnest
lives and arrived at independence
through self-dependence. Never was
there any other way; never will there
be. But what opportunity in a state
two-thirds of whose lands are yet un
occupied! Face something we must, of course.
But not a policy that would pauperize
those who depend on it.
OI R EXTRAVAGANT GOVERNMENT.
The running expenses of the United
States Government for the month of
February were $8. 662, 100 more than
the receipts. This is a striking change
from February, 1907, when the re
ceipts were more than 8,000.000 in
excess of the expenditures. For the
first eight months of the current fiscal
year the Treasury deficit amounts to
27.247,779. This Increasing deficit is,
of course, easily traceable to the re
cent financial stringency throughout
the United States. Unfortunately for
all concerned, there is very little pros
pect for early improvement 'in the
business which provides the Govern
ment with funds for running expenses.
Of the 38,662,000 deficit last rsronth,
about 2.000. 000 was from a falling
oft in internal revenue receipts, and
about $5. 000, 000 from a decline in cus
toms receipts.
The internal revenue receipts show
quite plainly that the consumers of
spirituous liquors and tobacco have
been practicing retrenchment, and it
is a similar economical move that has
cut down Imports and decreased the
customs duties. But, while the Amer
ican people can retrench and thus
speedily get back into good financial
trim, the Government is unable to do
likewise, and the deficit will continue
to increase until returning prosperity
will make the people so hilariously
wealthy that they will again resume
their former habits of buying reckless
ly of foreign goods and domestic
liquors and cigars. The big railroads
and industrial enterprises have met
this wave of depression by reducing
their forces, and in some cases by lay
ing off men. They have taken early
and drastic action against the possibil
ity of deficits in their business accu
mulating to proportions of conse
quence. The same system of re
trenchment Is also found right on
down through our entire social struc
ture. Every one seems to realize that the
easiest method for regaining our lost
ground is rigid economy all along the
line. But the Government cannot lay
oft the hands or shorten the hours
when business gets slack. There must
be the usual amount of money pro
vided for the thousands of time-killing
employes who sign payrolls at the
various departments. The pensioners
already on the rolls must have their
$12,000,000 per month, and there must
also be many thousands more provided
for the never-diminishing army of
pensioners or their wives. Then, for
fear that some of the money might get
away, the ship-subsidy grafters are on
hand with the usual bill to extract
from the Treasury a few million dol
lars and present it to the millionaire
shipowners. There are also a number
of other channels into which public
funds are diverted, regardless of the
condition of the Treasury, so that it is
easy to understand why the individuals
throughout the land can regain their
financial equilibrium long before the
Government ceases to run behind in
its expenses.
The growing deficit is especially un
fortunate at this time, coming as it
does Just when there is some slight
prospect for the long-overdue revision
of the tariff. The ardent standpatters
will fight against any reduction at
this time, and in their fight will point
to the alleged necessity for even higher
duties in order to make receipts equal
the enormous expenses to, which we
have become accustomed during the
many fat years that preceded 1907.
But, while our imports have falllen
away very heavily, we are still export
ing American products -in record
breaking quantities, and our people
will have so much money due them
through this "balance of trade" that
they can come to the rescue and ad
vance Uncle Sam the money needed to
tide him over. Something of this kind
may be necessary next August, when
about 360,000,000 worth of 3 per cent
bonds falls due.
WHAT THE FOWLER BILL IS.
The Oregonian is asked to state
what amount of notes a bank might
issue under the Fowler act, should it
become a law, and how the issue
would be regulated.
It is entirely simple. Each bank
would be permitted to take out an
amount of notes equal to Its paid-up
capital, and no more. These would be
called National bank guaranteed credit
notes, to redemption of which not only
the capital stock but the general assets
of each bank would be pledged. To
make redemption instantly available
each bank would be required to place
an amount of money equal to 6 per
cent of its average deposits with the
Treasurer of the United States; an
twice each year this condition would
be verified, under the Controller's di
rection. When the aggregate sum
should reach $25,000,000, in the hands
of the Government, 80 per cent of the
whole would be invested in bonds of
the United States bearing 2 pet cent
Interest, so the fund might not lie idle.
Upon their average amount of notes
in circulation during the year, to be
ascertained on the first days of Janu
ary and July, the. banks would be re
quired to pay into the Treasury of the
United States 2 per cent per annum.
The system provides for the closest
possible supervision by the United
States, throughout. It limits the note
issue of each bank to the amount of
its paid-up capital stock, provides a
quick guarantee or redemption fund,
and places It in the hands of the
Treasurer of the United States, re
quires payment by the banks to the
United States of 2 per cent Interest on
their average circulation, and makes
all the assets of the banks liable for
their obligations. Of course the bills
of exchange based on products of in
dustry and mercantile transactions,
held by the bank, would be the bank's
chief resources; and since these are
constantly moving the notes could not
disappear from circulation, as those of
a bond-secured currency so frequently
do. It would substitute a flexible sys
tem for a rigid or cast-iron one.
Most of the great mercantile and
exchange associations of Eastern cities
have commended the Fowler bill. It
Is not a radical departure, for it would
not change or touch the present Treas
ury note or greenback system.
ORIENTAL PEACE DISTURBANCE.
The plot thickens in the Far East,
and, unless some "strong-arm" nation
steps in and curbs the warlike ardor
of the Japanese, trouble may ensue.
When the Japanese engaged in conflict
with Russia the moral support of near
ly all of the great world powers was
theirs, not on account of any partic
ular love for Japan, but because It was
generally believed that Russian success
in Manchuira- meant an end to the in
tegrity of China, and attendant loss of
trade rights for many other nations
interested in maintenance of the open
door. The victory of Japan-put an end
to Russian aggression in Manchuria
and apparently safeguarded the integ
rity of China so that it would remain
neutral for trade purposes with all the
world. But time works wonders, and
we now witness the spectacle of Japan
following exactly the same objection
able policy that brought down the
wrath of the world on Russia.
The immediate cause of the present
very much-strained situation was an
attempt made by the Japanese and a
few Chinese revolutionists to smuggle'
a cargo of arms and ammunition into
Chinese territory. The vessel bearing
this cargo was seized by Chinese offi
cials, and, in the excitement of the
moment, the officials who made the
seizure hauled down the Japanese flag
and ran up the Chinese ensign. As
there had been no trial, investigation
nor official condemnation of the vessel,
this act was clearly wrong; but in view
of the circumstances attending the
seizure, the hasty action of the Chi
nese officials might be at least par
tially excusable. WThile the Tatsu
Maru seizure was the immediate cause
of the sudden tightening of the strain,
the original and underlying contention
was Chinese objection to assumption
by Japan of rights which China de
clined to recognize as the legitimate
spoils of war with Russia.
Nearly two months ago the "Koku
min Shimbum,," official organ of the
Japanese government, printed an arti
cle complaining about the dilatory tac
tics of China in agreeing to certain
concessions which Japan had demand
ed in Manchuria. Seemingly In ex
cuse for this self-assumed guardian
ship over China, the government or
gan gravely asserted that the recent
war with Russia was undertaken to
protect the independence of China,
and concluded with the threat that,
if China continued her present policy,
Japan might be obliged to adopt the
policy pursued by Russia before the
war. It is a fact well known through
out the world that protection of the
independence of China was not the
reason for Japan's opposition to Rus
sia. That, of course, was Incidental,
but Japan was forced into the fight
to protect her own Independence,
which was threatened, by Russian
domination in Manchuria, and inci
dentally by Russian interference and
influence in Corea.
China, as well as the rest of the
world, was duly grateful for the re
sults accomplished, but the victory
over the Russians gave Japan no
rights to assert control over China, or
to adopt the policy of aggression
which made Russia so unpopular in
the Far East. Should the present
strained situation develop into a war,
the sympathy and moral support
which the United States accorded
Japan in her war with Russia will now
be with China. Our interests in the
Far East have become too important
to be destroyed or placed in Jeopardy
by any complication that affects tne
integrity of China.'
It is said that the Federal Depart
ment of Commerce and Labor is pre
paring to wage systematic warfare
against anarchists and members of
pernicious secret societies. The first
step in this direction was taken a few
days ago. When men were detailed to
take a census of the prisons, asylums
for the insane, reformatories and
charitable institutions of the country
to determine the number of aliens in
those institutions. This is the second
inspection for a like purpose that has
been ordered under the immigration
law of 1903. which provides that an
alien may be deported if he becomes
a public charge' within three years
from the time of his landing. The
disposition of anarchists to seek shel
ter for their crimes under the cloak of
insanity has sent a number of this
pestiferous breed to our Insane asy
lums within the time prescribed -by
law for their deportation under such
circumstances, and wholesale deporta
tions are likely to follow this inspec
tion. Judge Wolverton has decided that
the Port of Portland dredge and ten
de were to blame for the collision
that resulted in the sinking of the
steamer Manzanita about two years
ago, and, unless the decision is re
versed, the Port of Portland will be
obliged to pay about $12,000 damages.
On account of the great necessity for
use in improving the river of all of
the funds available, it is a matter of
regret that the Government should In
sist on the settlement of this claim.
The dredge at the time of the accident
was engaged in river - Improvement
work, under the direction of the Gov
ernment, and accordingly was in a de
gree as much of a Government craft
as was the Manzanlta, which got the
worst of the encounter. If the Gov
ernment had performed its full duty
in the matter of river improvement,
the dredge Columbia would not have
been owned by the Port of Portland.
The stringency in the money market,
or some other unfavorable factor, has
held up the construction of Mr. Har
riman's line to Tillamook so long that
It will be impossible to reach that city
by rail during the coming season. An
other Oregon beach resort, however,
will be made partially available by
the early construction of a wagon road
from Seaside to Elk Creek. To com
plete the remaining 2 miles of road
between the two resorts, the Clatsop
County Court has supplemented a
$1500 subscription of the Portland
people with enough to complete the
road by August 1. The heavy Increase
in population and wealth in the Pacific
Northwest has resulted in steadily in
creasing crowds at all of the Oregon
beach resorts, ami, with better facili
ties for reaching them, there will be
an even greater increase in the future.
Hetty Green, the richest woman In
America, who despises display, which
she accounts as wastefulness, has the
courage of her convictions at least.
She has moved to the fourth floor of a
tipsy-looking flat in Hoboken, for
which she pays $19 a month. She con
siders herself comfortable and drives
inquisitive visitors from her lowly door
under threat of calling the police. Par
simony is detestable wherever It exists,
but there is no more reason why Hetty
Green should not be left alone to her
way of living than that Mrs. Eddy
should be persecuted for playing the
exclusion act. Both have wealth and
a certain degree of notoriety. Both
elect to live In seclusion. Let them
alone.
Because timber lands are owned by
non-residents is no reason why they
should be subjected to excessive taxa
tion. Neither should the wealth of
the owners permit them to escape
their Just proportion of the burdens
of government. Timber lands, like
farm lands or city property, should be
assessed at actual market value, and
when this has been done the owners
have no just cause for complaint. It
should be no more difficult to ascertain
the value of timber lands than of farm
lands. The one class of property
changes hands as often as the other.
That gold spike which will be driven
in the North Bank road to mark the
completion o'f the line is too valuable
a piece of metal to be used for only
the single purpose. After it has
served on this occasion It should be
laid away In the corner-stone of some
modern steel structure, there to re
main a few hundred years, until the
Harriman extension shall be construct
ed across Eastern Oregon. Then it
should be brought out and used again.
It was never intended, we are told,
that the room in which that celebrated
High School blackboard is placed, cut
ting off egress to the fire escape from
that quarter, should be used as an exit
In case of fire. This is the reason, no
doubt, that the sign "Fire Escape" was
placed conspicuously on the door of
the room. Placed there, of course, so
the pupils would know it was not the
way to the fire escape.
Wonder if Russia and Japan will
now unite Tor spoliation of China?
Russia wanted to do it, and leave Ja
pan out. But Japan made war and
came oft with advantage. Now will
the two make a plunderbund? And if
they do, what will the rest of the
world say?
Luther Burbank has promised a
hardy banana which will thrive on
the Pacific Coast. As an ornament It
is worth while, but for a money-maker
we commend the Oregon apple.
Tom Taggart has been deposed as
Democratic boss in Indianapolis.
Where now will Bryan turn for a man
ager of the coming campaign?
Decreased revenue to Oregon coun
try editors from delinquent tax lists
is compensated by larger receipts from
candidates the next six weeks.
Why wait till the last day to regis
ter? There isn't the same excuse that
attaches to taxpaying.
Isn't this a good season for the for
eign yellow press to revive the parti
tion of China;
OREGON'S fNSOLD SCHOOL LAND.
Professor Lake Calls for Meeting of
State Forestry Association.
CORVALLIS, Or.. March 9. (To the
Editor.) At the next meeting of the
State Forestry Association, the sub
ject of exchanging the-scattered sec
tions of school lands, within the Na
tional forests of the state, for a com
pact body of similar land so situated
that the state could handle It as a
state forest, was Incidentally suggest
ed -by H. D Lang ilia in his paper on
"The Taxation of Forest Lands." The
next day the news dispatches from
Washington. D. C announced that
Senator Fulton had Introduced a bill
having in view the same Idea as to
exchange but with the purpose of fa
cilitating the sale of the property.
There is, of school lands within the
National forests of our state, about
100,000 acres, according to Mr. Gallo
way, our State Land Agent. At pres
ent, this land Is selling for $8.75 per
acre, and Is considered to be the most
valuable land in the state's possession
today. There are other views as to
the best way of disposing of this land,
from the point of view of the perma
nent endowment of the school fund
and the best ultimate interests of the
state.
This will be the leading topic for
consideration at the next regular meet
ing of the Association, to be held in
the City Hall building, Portland, Fri
day. March. 13, at 8 P. M. The public
Is cordially Invited to be present and
participate in the discussions. Teachers
and others Interested In educational
subjects, as well as every citizen with
a wideawake conception of what Ore
gon's future means, should be present
that they may learn what the proper
management of this unsold school
land or the money derived therefrom
means to our commonwealth.
E. R. LAKE.
WHO WILL THEN PAY THE TAXES?
Real Property Must Bear Alt the Borden
Under "Single Tax'' Scheme.
Santiam News.
Farmers! suppose your stock, ma
chinery, tools and other personal property
and Improvements should be exempt and
the tax on your real estate should be
doubled or trebled? Would you gain or
lose by the change? Somebody, or his
property, must bear the burden. So much
money is required to support the town,
county, state, schools, etc., and recently
lots of It has been required. If you
excuse, say one-half of the property from
paying taxes, manifestly the other half
will have to pay Just double. No other
solution of the question is possible. While
it is true that we would make the holding
of timber and other lands held for specu
lative purposes so unprofitable that they
would he sold, we would burden the little
home farm so heavily that It, too, would
have to be sold. Indeed nobody would
want to own land because of excessive
taxation. One would prefer Investing In
personal property and manufacturing
plants. The Inevitable result would be
that land would become valueless and
revert to the state
No, no! Our present system may be
faulty; but the News thinks it is In
finitely superior to the "single tax"
theory proposed. We know that under
the present system, people - can and 'do
own their homes, and find it profitable to
do so. It does not seem possible that
they would own them a very great while,
if the proposed measure becomes a law.
A certain Mr. Shakespeare, we believe,
once said, "Better bear the ills we now
have than to fly to those we know not
of." This advice may not have been very
progressive; yet it possesses the virtue of
being safe.
Echo Answers "Whyf"
Eugene Register.
If Oregon should go for Bryan and the
popular vote on President be for Taft or
Hughes, would the Bryan electors from
this state vote in the electoral college for
Taft or Hughes? Certainly not. Oregon
democracy only believes in the rule of
the masses when it best suits their con
venience and where there is a bare pos
sibility of twisting it into election of a
Democratic United States Senator there
by from this state. No Statement No. 1
for them on Presidential electors. Not
on your life. Then why on United States.
Senator? Echo answers "Why?"
Year Ahead of Time, May Be.
Albany Democrat.
In the list of United States jurymen
drawn at Portland Is H. J. Hamilton.
Albany. This is undoubtedly Mrs. Hettle
J. Hamilton, wife of I E. Hamilton, per
haps the only lady juryman ever drawn In
Oregon. ,
In the U'Ren Column.
i Hlllsboro Argus.
A Gaston cow recently gave birth to an
eyeless calf, and now Forest Grove
comes to the front with a turkey with
five legs. This must be a freak year.
Stole the Editor's Wardrobe.
Jefferson Review.
The party who swiped the grain sacks
from our barn will escape some undesir
able advertising by returntng them right
quick.
A FEW SQUIBS.
Police Justice You saw that cockfight?
Why didn't you stop l and arrest the men?
Police Officer I did. y'r anner afther th
fight was over. Chicago Tribune.
The Heiress But they tell me you are
embarrassed by your debts. The Suitor
Don't you believe It. But doubtless my
creditors are Chicago Dally News.
"You admit that you sometimes make
mistakes." said the Intimate friend. "You
are wrong," answered the eminent states
man. "I sometimes make mistakes, but I
don't admit it." Washington Star.
"Dear." said the melancholy wife, "if
you .die first you will wait for me there on
that far shore, won't you?" "I guess so."
replied her husband, with a yawn. "I've
always "had to wait for you wherever I go."
Catholic Standard and Times.
Mrs. Spenders I wonder how you'd like
It If I ever got "new-womanish" and in
sisted upon wearing men's clothes? Mr.
Spenders Oh. I haven't any fear, of you
ever doing that. Men's clothes are never
very expensive. The Catholic Standard and
Times.
"Pa." asked little Willie, looking up
from his text-book, "what Is a linear foot?"
"Why-er-a linear foot " stammered his
father, "why-er-it's one that's hereditary,
of course. Didn't you never hear tell of a
linear descendant?" Philadelphia Press.
"I see." said Sauntering 8im. "dat It says
In dis paper it ain't a good t'lng to take a
bath for at least an hour after eatln'."
"Whot's de use spendin' your time readin'
stuff dat can't never be any good to you
v.-hen you find It out ?" aeked Tired Tread
well. Chicago Record-Werald.
"I don't understand It," complained the
tramp. "What don't you understand?" asked
the philanthropist. "Well, yer see It's dis
way. boss. I ast a guy fer a dime ter git a
bed, an' he says, 'G-'wan, yer grafter didn't
I give youse a dime las' night?'" "Well?"
"Well, what I want ter know is dis: Don't
dat guy tlnk a feller haa ter sleep more'n
oncet?" Cleveland Leader.
Dwrellefc.
New Orleans Times-Democrat.
Alone beneath a starless sky.
With wind and wave for company.
The curfew calls across the waves:
And down below, unnumbered graves
Keep grewsome secrets guiltily.
The big cloud bends and broadens out.
As do the wings of dread and doubt .
That darken dim eternity.
Ding-dong! Ding-dong!
Derelict. I drift along.
tp and on the waves that rise:
Down towards the trough that lies
In between they- curling screen.
Vnshriven hope lies stilt and stark -Here
beside me in the dark.
Ding-dong! Death and wronr!
"Wind and wave are rude and strong.
Ding-dong! Skies are black;
Leaps the lightning's livid track
Clear across the sea's wild wrack.
Ding-dong! Drift and die.
With wind and wave for company.
Julia Neely Finch.
HOW GERMANY REGULATES STOCK GAMBLING
All Tranaaetlona on Mararln or FiUm on Grata Prohibited Stork Specu
lators Required to R;lter Enhnm Resrulatrd by Lair Tickers Pro.
alblted Proapectaaee Repaired, amd Listing; Restricted by a Givtramral
Commission.
New York World. I
GERMANY has had 11 years' experience
with the restriction and regulation
by law of stock exchange and board ot
trade gambling. Prior to 1897 'the Ger
man bourses regulated themselves, with
only minor state supervision and without
federal supervision. Since January 1, 1S97,
,all transactions In stocks and bonds
throughout the German t Empire have been
under the provisions ' of the German
Bourse law.
The Government of Germany is some
what like that of the United States in
being a federation of separate states, each
state having Its own legislative body and
the federation having a legislative body
somewhat like Congress; the Reichstag
corresponds roughly to the House of
Representatives and the Bundesrat to the
Senate. Germany also resembles the
United States more than Great Britain
in that the Ministers are not removable
by the legislative bodies and are the
agents of the executive. Emperor Wil
liam is the executive head of the German
Government, and also, as King of Prus
sia, of the Prussian Government. The
Ministers are his appointees, as the mem
bers of the Cabinet are the President's
appointees. As in Great Britain, the Min
isters can introduce bills and 1 make
speeches; but, as in the United States,
they have no votes.
Fifteen Bourses.
There are 15 bourses In Germany: seven
are In Prussia, Berlin. Breslau, Dussel
dorf. Essen. Frankfort-on-Main, Cologne
and Konigsberg; two in Bavaria, Munich
and Augsburg: two In Saxony. Dresden
and Leipzig: two in Wurtemberg, Stutt
gart and Mannheim, and two in the
Hanse cities of Bremen and Hamburg.
Prior to the passage of the jerman
Bourse law these bourses competed for
business. Demoralization resulted from
competitive gambling facilities.
The first complaints against unre
stricted bourse gambling came from i..e
agricultural interests, which In Germany
have a large representation in the Reichs
tag and form the Agrarian party. In the
agricultural districts members of the Ger
man Parliament are elected In hostility
to the banking interests and pledged to
legislate for the farming Interests.
No Gambling; In Grain.
The Agrarian party came to the con
clusion that speculation in farm products
caused Injury to the producers. At the
time ,the crops were harvested and the
farmer desired to sell, the brokers and
speculators depressed the price by short
selling. Thus at the time the producers
sold the price was low. After the farm
ers had sold, the brokers and grain specu
lators put up prices. Every year there
was a period of low prices at harvest
time and then of high prices during the
other months until the next harvest, low
ering the prices which the farmer re
ceived and increasing the cost of food to
the consumers.
The Agrarian party therefore pledged
themselves to support a bill prohibiting
dealing In grain futures or the selling
short of products of the soil.
Certain industrial interests allied them
selves with the Agrarian party on the
same grounds: that speculation In Iron,
coal, ore. cloth and other factory ' prod
ucts made fortunes for speculators at
the expense of the producers and con
sumers. They reasoned that If specula
tion were eliminated and the costly sys
tem of the middleman and exchanges
destroyed both factory-owners and
consumers would be better off.
Accordingly, by a union In the Reich
stag of the Agrarian party and of rep
resentatives from the coal districts and
factory towns the bourse law was
passed on June 22. 1896, and took effect
on January 1, 1897.
Any private investor may buy stock
of a registered broker, pay for it and
take it away. But if the broker lets
dim deal on margin It is at the bro
ker's risk.
All prices are fixed by the governing
committee through official "quotation
brokers." who must not have any other
business. It is the duty of these
brokers to prevent price fluctuations
by means of wash sales or balance
sales or other devices to prevent a
faithful statement of market values.
The prices as fixed by the. committee
through the quotation brokers are of
ficial prices. Every quotation broker
must keep a daily journal of all his
transactions, which is to be inspected
by the governing committee.
Xo Tickers; Tips a Crime.
For any broker to give false advice
Is a crime. The stock ticker, is pro
hibited. No prices are given out ex
cept such as the governing committee
announce, and the publication of prices,
quotations and sales is controlled by
them. This Is a blow at what in the
United States are known as the market
letters of brokers and their solicita
tions to customers.
While this law has continued to meet
with the support of the Agrarians, the
Center and a part of the Conservative
party in the Reichstag representing in
dustrial neighborhoods, a large ele
ment, and particularly the bankers and
brokers of the cities where the bourses
are located, have been seeking Its
amendment. They claim that It drives
speculation to Paris. London and Am
sterdam and deprives them of business
and profits. The Prussian Minister of
Commerce, Delbruck, proposed last
Spring several amendments. The main
objection to the old law was the Bourse
Register, under which speculators In
stocks often repudiated their losses on
the ground that they had not regis
tered as stock gamblers. Also many
business men who liked to take an oc
casional flyer In stocks had difficulty
In doing so without registering. The
Register had the effect of branding a
man as a stock speculator and thereby
affecting his other business.
Proposed Amendments.
The main concession that the brokers
asked was the abolition of the official
Register so that anybody could gamble
in stocks without having to advertise
the fact, and so that losses could be
collected from others than registered
brokers. An exception to the prohibi
tion of grain futures Is also proposed
to be made to landowners and farmers
and grain merchants to the extent of
their annual business.
Although these amendments do not
greatly change the law as first passed,
they are regarded as letting down the
bars, and the -mass of the Agrarian
and Conservative parties are opposed
to them. So far they have been
discussed extensively In the Reichstag,
but the prospect of their becoming a
law is not good.
The essential feature "of this law is
the prohibition of dealing on margin,
or in futures of mining and factory
storks, grain or mill products The
penalty of fine and Imprisonment was
provided for any broker, speculator or
other middleman who bought or sold
such products of the soil or the fac
tory or the mine, except In the process
of distributing them.
Not content with this, the German
Ministry, at whose head was then
Prince Hohenlohe, put in force a plan
to regulate all stock gambling in Ger
many. Government Regulation.
This law of 82 sections takes all the
bourses under the supervision of the
government and appointa state com
missioners to act with the bourse
governing boards Each governing
board has a committee known as a i
Court of Honor, which derides all dis
putes, subject to an appeal to the
Chamber of Appeals, whose president
is chosen by the Bundesrath.
All stocks and bonds before being
admitted to the bourse must be ex
amined by a government committee. A
prospectus must be presented. For any
falsity of statement the promoters or
sponsors are criminally liable. Appli
cations for admission are published.
Stocks of new corporations are admit
ted only after a balance sheet has heen
published at the expiration of one year.
Imperial and state loans are exempt
from these provisions and admitted at
once on their issue. For any false
statement liability exists for five years.
A false statement Includes not only any
error In fsct but the omission of a ma
terial fact. The liability Is not can
celled even if the prospectus shows
that it was made by a third party. Any
one Issuing It is liable for damages to
every purchaser thereafter.
No transaction may take place on
the bourse except In bonds or storks
that have been regularly admitted.
And since all transactions are restrict
ed to the bourse, the whole scope of
German stock speculation is brought
under governmental control.
Tbe Registry.
Provision is made for a bourse regis
try in which the brokers shall enroll
and pay a small annual fee for the
privilege. There Is no purchase and
sale of seats as on the New York Stock
Exchange, and the privilege of trad
ing on the bourse, which must be re
newed annually, has no salable value.
Those who register are legalised
stock dealers. Subject to the prohibi
tion of gambling in tne products of
the soil and Industrial and mining
shares, they may do what they please,
provided they do not infringe on the
rules laid down by the state commis
sion. Oniy registered brokers may
speculate In stocks.
If any one who has not registered
speculates, the party with whom he
speculates takes the risk of repudia
tion, because no stock speculations ex
cept between registered brokers are
enforceable at law. The German policy
was to prevent merchants, business
men and others from speculating by re
quiring them to register as stock deal
ers or to make their transactions un
enforceable. Thus a stock broker hav
ing a claim on account of a bourse
transaction against anybody who had
not registered could collect nothing by
suit in court. No legal obligations
arise and all secret-agreement debts
are vod except in the case of regis
tered parties. This is somewhat simi
lar to the" New York law against
gambling debts due bookmakers and
gambling-house keepers. Neither may
registered brokers buy and sell for
themselves except they announce the
fact.
TO TAX STOCK GAMBLING.
The Hepburn Bill and the German
Bourse Law.
New York World.
Representative Hepburn, of Iowa,
who fathered the railroad rate law of
1906, does not claim too much for the
bill he introduced on Monday to tax
stock sales. If enacted and- enforced
It would nearly wipe out stock gam
bling as conducted In this country.
A tax of 60 cents on every sals of
a $100-ahare Is not prohibitive of in
vestment. It is the same as the State
of New Tork now exacts from mort
gages In its recording tax. But upon
a 10 per cent margin purchase the tax
is 5 per cent. Upon "wash sales,"
meant to establish fictitious values
and deceive the public, and upon the
"in and out" gambling of the room
trader and the blackboard fiend, it is
almost prohibitive.
Under such a law stock gambling
could not escape from New York to
Philadelphia or Boston. It would to
some extent escape to London. The
volume of transactions would be
greately lessened and a large revenue
derived from them. If this were ap
plied to the reduction of our present
burdensome tariff tax the relief. would
be appreciated. If the extra money
were spent upon huge navy pro
grammes or other extravagances we
should not profit much by it.
For comparison with Mr. Hepburn's
proposal we print In another column a
summary of the German Bourse law.
The German agricultural interests, be
lieving that speculation in their prod
ucts caused them damage, brought
about its passage. Their position was
the same as that of the cotton planters
of the South who would be glad to
have the Cotton Exchange closed, and
of the farmers of the West who de
nounce the Chicago Board of Trade
These large elements of ths Amer
ican community believe that the ex
changes depress prices during the
harvest season and unduly raise prices
during other months. Current price
records bear out their assertion. The
price of a bale of cotton or a bushel
of wheat or corn would naturally be
at any given month the harvest price
plus storage charges and interest. On
this basis the variation would be small
Instead of large, as the ticket records
make it.
This German movement was further
brought about by the coal. Iron and
factory men, who had the same com
plaint about their products and securi
ties as the agricultural Interests. The
resulting law is highly technical and
scientific, for the business of law
making in Germany is conducted with
the same detailed precision as Ger
man chemistry or German philosophy.
The summary throws educational light
upon the pressing American problem of
how the evils of stock, grain and cot
ton gambling can be best dealt with.
The Hepburn bill does not profess to
cover the entire field of speculation.
Its enactment .would not alter the pub
lic need of passing the Culberson bill
requiring National banks to keep their
reserve money in their vaults and
Superintendent Williams' similar bill
for the State banks of New York. It
does not touch speculating in bonds,
which has become common, or in pro
duce. But as a first strong step toward
checking the ruinous effect of stock
gambling upon the country its Intro
duction Is welcome. Its-discussion will
be useful, and of the passage, even In
a short and do-nothing session, of
some action along the lines Indicated
we need by no means despair.
That Yamhill County Convection.
McMinnville News Reporter.
The convention was made up largely of
farmers and laboring men: those who
have been prominent In political circles
taking but little part in the proceedings.
South McMinnville is an instance of the
way the delegates were selected quite
generally. The caucus selected at random
such as indicated above, in most in
stances, without any knowledge whatever
as to how they stood on the question at
issue, yet those present voted 6 to 1 for
the resolutions. Twenty of the twenty
three precincts of the county were repre
sented, in nearly every case with the
large part of the delegations present.
The two Dayton precincts cast decisive
majorities against the anti-Statement No.
1 resolutions; the other 18 casting almost
unanimous vote for them. It Is reported
that a part of the Amity delegation was
unfavorable to the resolutions, but that
part was not present, so the precinct cast
but the five votes present