"" " ' '" "' " ' .". ' - I.I .11. I - " "" ' ' ' ' ' ' ' ' VOL. XLTIII. XO. 14,733 PORTLAND, OREGON, FRIDAY, MARCH 13, 1908. PRICE FIVE CENTS. IKE IN GIVE UP PROFITS Union Pacific Stock holders Turn on Him. WANT $40,000,000 REFUNDED Demand That Company Sue for Profits on Stock. BOUGHT AT HIGHEST PRICE Charge That Largo Profits Were Fraudulently Made by Harrimun, Rogers and Stillinan at the Hxpcnse of the Company NEW YORK, March 12. (Special.) Charge that E. H. Harriraan has caused a loss to the stockholders of the Union Pacific Railroad of over $40.fon..00 by his stock speculations with the funds of that corporation were filed with the board of directors today. A forma! demand was made that suit bu brought against him and the other directors of tbe system who have been parties to his speculations, to recover the sums lost to the com pany through the illegal transactions. Make llarrinian Disgorge. The action is preliminary to a suit to be instituted by a powerful group of stockholders to force Mr. Harriman to disgorge the profits he and his associates have made in stock market operations with I'nlon Pacific funds and through the unloading of a large amount of securities of other corpora tions upon the company's treasury at prices far above their present -alue. The action is designed to forestall the plan of the I'nlon Pacific executive committee to segregate these securi ties under a holding company, which Is now being formed for the purpose.. The charges contained in the papers jw.rv,in part as follows: Stock Sold to Union Pacific. "1 In or about the month of July, !o. E-, II. 'Harriman caused the cor poration to purchase from himself 93C3 shares of the first preferred stock of the St. Joseph St Grand Island Railroad. -13,600 shares of its second preferred stork and 30.000 shares of its common stork at a to il cost to the irnion Pacific of $20,331 540, and inter rst at the rate of 4 per cent from February 1. 190S. "In the Investigation conducted by the Interstate Commerce Commission in Jan uary and February. 1907, into certain transactions of the Union Pacific Rail road Company, Mr. Harriman refused to divulge when he acquired said stock and the amount of his profits in the sale thereof to the Union Pacific. Sold at Hishest Price. "Second In or about the month of August. IW, Fi II. Harriman caused the corporation to purchase from himself 231. 3 shares of the common toek of the Railroad Securities Company at a cost to the Union Pacific of M.4!V?.!77. and 12.S59 shares of the preferred stock of the Rail road Securities Company at a cost to the Union Paelrte of 1.2o3,9K!.7!. "Third In or about the month of July or August. 19ns, Mr. Harriman caused the corporation to purchase from himself 30, 000 shares of the capital stock of the Illi nois Central Railroad Company at the price of 1175 per share, ex a dividend of 1.50 per share, or almost, if not quite, the very highest price at which said stock has ever been quoted. Large Fraudulent Profits. "Fourth The petitioners are advised and believe, and so aver, that K IT. Har riman unlawfully and fraudulently realized large profits on his sale of the above mentioned St. Joseph A Grand Island stock. Railroad Securities stock and Illinois Central stock to the Union Ta rlftc Railroad Company; that Messrs. Rogers and Stillmau unlawfully and fraudulently realised the large profits on their sale of Illinois Central stock sold by Kuhn, Loch & Co. to the Union Pacific, which has been sold, and was so sold by them for and on account of certain of the directors of the Union Pacific, who un- I lawfully and fraudulently realized large profits at the expense of the Union Pa cific" Powrrrul Men Behind Demand. According to Leonard M. Walstein. who said he represented the signers of the de mands, copies had been sent to most of th directors today. Mr. Waldstcln ap peared as one of the counsel for Stuyve ant Fish In the latter's fight for control of tha Illinois Central, but he stated that Mr. Fish was not behind the present movement. Mr. Waldstein also explained that the action was not to be construed as an attacK on Mr. Harriman personally. While the names of but four stockhold ers are signed to the petition. Mr. TVald sin declared that other and powerful financial Interests were united in support of It. The petition bears the signatures of Lewis A. Starrs, of Hartford; Wlliam A. Arnold, of Wllllmantic; Albert C. Kates, of Bast Granby. and Henry R. Buck, of Hartford, in the order named, and la dated March 9. Buildings for Albany and Pendleton. ORKGONIAX NEWS BUREAU. Wash ington. March IS. The Senate ntihlln buildings committee reported favorably on Senator FultoiTs bill appropriating Jjo.uou lor a nutinc building: at Albany. and authorized a favorable report on a similar amount for a Pendleton build- ! tus- MRS. ROOSEVELT IS GUEST Attends Congress on the Welfare of the Child. WASHINGTON. March li The ap pearance of the first lady of the land served to attract a large attendance at today's session of the first international Congress on the Welfare of the Child, which is being held under the auspices of the National Mothers' Congress. Mrs. Roosevelt, who is a life member of the Mothers' Society, was accompanied by Mrs. Cowles, wife of Admiral Cowles, and sister of President Roosevelt, and her secretary. Miss Hagner. The distinguished guest was accorded a most cordial welcome and appeared to be deeply interested in the proceedings. In introducing Mrs. Roosevelt to the au dience, Mrs. Schoff. of Philadelphia, pres ident of the Mothers Congress, declared "it Is due to President Roosevelt that the Mothers' Congress idea has spread to the uttermost part of the civilized world." MULAI HAFID HAS ENOUGH Asks' French to Quit Fighting Negotiate Peace. nd CASA BUAKCA. March li General d'Amade, commander of the French forces In Morocco, has received letters from Mulal Hafid. the so-called Sultan of the South, and the leaders of his army, asking that hostilities be suspended pend ing arrangement for peace. Injury to Japanese Honor. YUMA. Ariz., March 12. Ross Tanaka, a Japanese merchant, of "Wenden. Aria., sues O. B. Toung. Postmaster at Wenden, for JSOOO damages, alleging that Young failed to forward a registered letter to the Phoenix National Rank. Tanaka sub sequently drew a check on the amount registered and says he was placed in the iigni 01 a reion and was arrested, spend ing 20 hours In the Phoenix jail. CONTENTS TODAY'S PAPER Th Weather. TESTER DATS Maximum temperature. 5S dg-rces;- minimum. 44. TOTATS Showers: southerly wind. Foreign ' Robbery sound alarm a rain. Socialism in Britain, race .V Nat Ion al. Roof'velt hoUU conference on revised anti trust bill. Patre 1. House makes Important amendments to post office bill. Pax, fi. Joker tn amendments to land-it ant revolu tion expos ea. JStfe 1. Wiley names men who worked submarine Doai sen eme ana ae talis charge. Pate 7. Fleet prepares for target practice at Mai datena Bay. page 5. Politics. Missouri Republicans staTt Hughea boom. t-age 1. Nebraska Republicans tor Taft and tariff revision. Page 1. IomeUc. General reduction of wages in cotton mills. fago 3. Alia convicted of murder and sentenced, to nana;. Page 7. Union Pacific stockholders demand Herri- man ana associates rotund profits on stork. Page 1. Powerful arrument for lumbermen in rate Inquiry. Page 4.' Trial of Raymond Hitchcock begin. Page 1. Hughes anti-betting bill makes step for- wra. 1 tiro -4. Sport. Beavers shut ot wmita Sox in practice game. Page 12. Paclttc Coast. Lice give rebating in California a new utm. Page 4. Man and woman arrested la San Francisco for using Governor Guild s name to swindle. Pag 5. Defense in 1w Angeles land-fraud triat tries to force Government's hand. Page I. New rules against liquor at Stanford Uni versity. Page 7. Complaininr witness in Albany liquor case said to be an ex-canvfet. page 6. Was-hlnrton Railroad Coot m tuition reduces express- charges on Great Northern. Page 6- Milwaokie witnesses become -confused at rate-hearing case. Page 6. Commercial and "Marine. Probable course of hop market In Fall. Page 17. Wheat market at Chicago is nervous. Page 17. Irrerular movement in stock prices. Page 17. Marine business has doubled in last ten years. Page 1. Port land and Vicinity. Oregon stockmen will benefit immensely by establishment of Independent packing bouse. Page 10. War to knife declared by opposing factions in City Council. Page 10 Mount Hood Railway Company and city of ficials agree on franchise. Page Z. Rose show benefit matinee this after noon. Page 13. New ordinance introduced In Council Invit ing bids for city lighting. Page 30. W. 3. IV Ren and G. W. Stapleton meat In joint debate. Page 16. W. S. ITRen withdraws as Senatorial can i didate. Page 10, I T t Tf- j J Herbert Knox Smith, Commissioner f 4 of Corpomtkm, and Author of , j Smr Bill to Regulate Trusts. E NEW L RULING TRUSTS Roosevelt Confers With Men Concerned. PRESENT CONGRESS MAY ACT Legalize Railroad Pools, Ex empt Labor Unions. PUBLICITY OF OPERATIONS White House Conference Will Pro. duoe Bill o Amend Sherman Law and May Cause a Cessatitm of Trust Prosecutions. WASHINGTON, March 12. An impor tant conference was held at the White House last night and in a sense was con iinuea loaay, respecting- amendments to the Sherman anti-trust law. The changes In the law. it is expected, will be pro posed along the lines suggested by the conference of the Civic Federation held in Chicago a few weeks ago. No concrete results were reached and it Is Iikely that further conferences will be held. The. Frcsident. It is understood, is de sirous that a bill embodying the conclu sions of the conference, if anv he reached, be submitted to Congress for passage at this session. Participating In ths conference were the President, Secretary Root. Secretary Garfield, Attorney-General Bonanartc. Herbert Knox Smith, Commissioner of Corporations; Seth Low, ex-Mayor of New York; Samuel Gompers, president of the American Federation of Labor; Victor Morawetz, general counsel for the Atchison, Topeka & Santa Fe Railroad, and Francis Lynda Stetson, of the firm of J. P. Morgan & Co.. of New Tork. Rejuvenate Anti-Trust Law. Mr. Smith presented in tentative shape some of the ideas offered at the Civic Federation conference in Chicago. The suggestions were made in the form of a bill, but It had not been reduced to defi nite shape. It is said that the proposed changes are of sweeping importance and interest, as, crystallized Into law, they' w-ould mean practically a rejuvenation of the Sherman antitrust law. While no agreement waa reached, the trend of the discussion Indicated that a common ground of understanding shortly will be reached and perhaps within a week a measure will be drafted which will be satisfactory to all parties. Exempt Unions and Railroad Pools. The particular interest of the labor officers is to secure an amendment to the Sherman law, which will exempt the unions from the practical operation of the act, as conspiracies In restraint of trade. A proposition of that kind now is pending In Congress, but In the opinion of some of the participants in the White House conference, it would be unconstitutional if enacted in its present shape. Amendments were proposed relating to the operation of railroads, one pro viding that pooling, under proper re strictions, ought to be permitted by law. It also was suggested that con solidations and traffic arrangements ought not to be permitted by connect ing lines, under such arrangements as would permit of abuse of that privi lege. Control Trusts, Abandon Suits. An important amendment was also proposed by which there would be fur ther regulation of corporations doing an Interstate business, and providing for reports from such officers to the Department- of Commerce and Labor, along the lines of the reports now made by the railroads to the Interstate Commerce Commission. Such an amend ment, it was pointed out, would ineure proper publicity of the operations of interstate corporations, and' insure "the utmost fairness in all dealings with the people. ' It was pointed out that with the en actment of "the amendments ' proposed, the Government might begin anew -its work of dealing with corporations. In fact, it was proposed that prosecutions now in contemplation by the Govern ment against - corporations under the provisions of the Sherman act be abandoned, if the proposed amendments should be enacted into law. PITS ACTOR AS F GIRL TELLS OF HER VISITS TO HITCHCOCK'S HOME. Ellen Von Ha gen Supports Charge That Defendant W as,' Guilty- of -Misconduct 'With Children. NEW TORK, March 12. Ellen Von Hagen. whose accusations resulted in the indictment of Raymond Hitchcock. the actor, repeated her story to a jury today. The girl, who is now in the care of a society, told of nights spent at the Hitch cock home at Great Neck. L. I., and of visits to a furnished room in this city wnere xne aerenaani naa temporary lodg ings. On each of these excursions she was accompanied, she said, by . either Flora Whiston or Elsie Voecks. At the time, more than a year ago. Flora wu W, the witness was 15 and Elsie was 13 years of age. In his opening address, followine the filling of the Jury box today, the prose cutor had charged that Hitchcock had been guilty of misconduct with all three of these children. When her testimony was Interrupted by adjournment, the Von Hagin girl had sworn confirmation of the state's allegations so -far as she was concerned. Portland Man Appointed. OREGONIAN NEWS BUREAU, Wash ington. March 12. T. W. Zimmerman, of Portland, has been appointed clerk of the Reclamation Service. The For est Service . has authorized 17,900 cattle and horses and ISS.oiiO sheep to graze in the Blue Mountain reserve the ensu ing season, being an increase of 2000 cattle and horses and 2500 sheep. THE RECALL f Wu Ting Fans. Mi mister From t i China, mm He Bi'nw Appeara, I i. ...................... .i JOKER IS FOUND AMONG INNOCENTS Aim to Save Railroad Company's Title. HEARING ON LAND-GRANT SUIT Amendments Would Block For feiture Entirely. BIG LUMBERMEN INNOCENT Townscnd Shows Effect of Proposed Changes in Resolution Elijah Smith Admits Attempt to Get Friendly Suit Brought. OREGONIAN NEWS BUREAU. Wash ington, March 12. (Special.) At today's meeting of house public lands committee, alleged "innocent purchasers" of Oregon & California railroad land and their counsel were heard at length in behalf of the amendment to' the Fulton resolu tion which would ostensibly validate practically, every sale heretofore made by the railroads, but cross-questioning of the witnesses by B. D. Townsend, who investigated the land grant clearly de veloped the. fact that the proposed "in nocent purchasers" amendment contains a joker which in reality would have fully protected the railroad company against any suit which the Department of Jus tice might institute. The entire day was devoted to the hearing, and on Satur day Mr. Townsend will Be heard In be half of the resolution as it passed the Senate and in opposition to all "innocent purchasers" amendments. Plea for Railroad Company. In practically every argument made today it was notable that counsel laid far more stress upon' the interests of the railroad company than upon the in terests of their purported clients, yet each one, when cross-questioned dis avowed any interest in the railroad com pany's -affairs. In 'connection with the pleas of attorneys, it was observed that General Land Agent Eberline, of the Southern Pacific, who blocked sales of railroad land in and after 1902, was present, together with L. E. Payson, Eastern counsel for the Harriman rail roads, an Mr. Rich, a New Tork banker, who holds J20.000.000 of the Ore gon & California Company's bonds. Yet no one professing to represent the rail road availed himself of the opportunity to make a statement. Various counsel for purchasers of rail road land were requested to suggest a form of amendment which would protect all innocent purchasers for value who are not guilty of fraud. None of these amendments made any distinction as to who these purchasers might be. Mr. Townsend called attention to the fact that in 18T0 the East Side Company conveyed its entire grant to the Oregon & California Company, so that the com pany, under the proposed amendments, could be regarded as a "purchaser for value and without fraud." The same is true of the West Side grant under the sale of 190. Moreover, there are two trust deeds of 1S81. which convey the entire land grant to the preferred stockholders without condition. Again the "innocent purchaser." On July 1, 18ST. a 2O.O0O,00O mortgage was given to the Union Trust Company. Upon cross-examination by Mr. Townsend it was admitted by the attorneys that, if any of the amendments proposed by them should be adopted, it would validate all these conveyances and thus defeat the entire suit of the Government against the railroad company. Not one amendment was proposed in the name of "innocent purchasers" which would not fully pro tect the railroad company. .Innocent Rich Lumbermen. John W. Blodgett, of Grand Rapids, on behalf of the "majority owners of the Booth-Kelly Lumber Company,, which purchased 70.000 acres of railroad land, was heard at length. He said his com pany got selected land averaging -40.000 feet of timber per acre, stumpage running 75 cents to 90 cents per thousand. He wanted his purchases validated by Con gress, claiming they had been made In nocently and without fraudulent intent. W. S. Humphrey, of Saginaw, attorney for other Innocent purchasers, made an extended plea for the amendment In their behalf, contending that the long-estab- ; f r"r- : ' : ' '14: S I I "p'''i lmlLm!& -1-.,,.. .JLJLl t B. 1. Totmsend. Attorney on Ljind trant Prosecutions, Who Expoaed h Joker in Innocntt Purchaaera Amendment to Renolnllon Ordering &nlt Again, -Harrimut Line. lished practice of selling- the land con trary to the terms of the grant, without objection of the Government, afforded ample justification for protecting those who bought in large tracts from the rail road company. He cited Mr. Dorr's cir cular, made famous by Senator Tillman. and sought to construct from it the im presslon that the whole land-grant agi tation was started and has been kept alive in the interest of shyster lawyers. This intimation was promptly resented by Congressman Hawley, who informed the committee that the agitation grew out of the action of the Oregon Legisla ture. It was intimated by another attorney representing an innocent purchaser that the Government does not seek to open this land to entry and settlement,, but is merely taking occasion to attack E. H, Harriman. This attorney said Congress never intended that any of the land should revert to the Government; that, if not sold in accordance with law, it could be disposed of by the railroad as it saw fit. Elijah Smith in a Corner. Elijah Smith, representing the South ern Oregon Company, which acquired the Coos Bay wagon-road grant, was the last witness, and appeared in favor of the innocent purchaser amendment: He was highly embarrassed when, upon cross-examination, Mr. Townsend brought from him the admission that his com pany had last July formally requested the Attorney-General to bring suit against it. He was forced to admit, however, that It hoped for a purely formal suit, which, it believed, would be decided In its favor and confirm its title. He was not In favor of a suit which might be de cided against It. He said his company also was an innocent purchaser. DEFENSE MAKES CHARGE FEDERAL COUNSEL SAID TO WITHHOLD GOOD EVIDENCE. Government, 1n Turn, Declares Ac cused Los Angeles Men Seek Grand Jury's Material. LOS ANGELES. March 12. In a somewhat dramatic ending to an all day session In the Federal Court today, attorneys for the defendants in the Oregon land-fraud cases charged the Government with attempting to with hold documentary evidence that would show the innocence of at least two of the Indicted men. The Incident, fol lowed a shrewd move on the part of counsel for the defense. They served a subpena upon Thomas B. Neuhausen, Special Government Agent, compelling him to go on the stand as a witness for the defense. Counsel desired to ask him whether he had in his possession certain docu ments that are supposed , to contain matter favorable to two of the defend ants. Tracy C. Becker, special assist ant to Attorney-General Bonaparte, made a strenuous objection to this tes timony, and he was joined by United States District Attorney Lawlor. Both Government prosecutors contended that the only way to get such evidence be fore the court was to call the two men as witnesses. It was asserted that the "defense was fishing for Government evidence, and was apparently seeking to discover what documents were placed in the hands of the Oregon Federal grand jury. Attorneys for the defense Indig nantly denied the accusation. United States Commissioner Van Dyke stated that he would rule to morrow on the various propositions In volved. ( Admitting that an attempt was made by Oregon men to secure Government land by fraudulent means, the defense in the present proceedings asserts there 1 not one particle of evidence to show that any of the local men Indicted had any knowledge of such land transac tions. The hearing will not be concluded to morrow, but attorneys expect all evi dence will be aubmitted by Monday. MISSOURI FIRST TO Governor Indorsed Two Districts. in ONE DELEGATION INSTRUCTED Confident He Stands for Pres ent National Policies. SECOND ELECTION IS HELD Chairman Dickey Declares Tliat Tafl Delegates, Originally Named. "Were Xot Legally Selected. Will Contest for Scats. ST. LOUIS. March 12. Republican con ventions held today on the call of thft chairman of the state committee in the Eleventh and Twelfth Congressional dis tricts to elect delegates to the National convention adopted resolutions indorsing Governor Charles E. Hushes, of New Tork. for the next President, and the delegates elected from the Twelfth -were Instructed for him. and are the first dele Kates to be instructed for the New York executive. The Eleventh district dele gates were uninstructed. . "Square Deal" Candidate. The resolutions adopted by the two conventions indorse the administration of President Roosevelt and indorse Governor Hughes as "a candidate whom we be lieve can be relied on to follow up the work so ably and fearlessly inaugurated by the present administration and con tinued: In the selection of miccessor to Prl dnt Roosevelt we believe the party's choirs should fall upon a candidate who stands for the "square deal' and for the unwavei Ing application of those policies which In sure the greatest individual freedom con sistent with the public safety. So believing, we indorse Hon. Charles K. Hughes. Governor of New Tork. as a candi date for the Republican nomination toe President. some Opposition hhown. The Hughes resolutions were not adopted In the Twelfth District Conven tion without some opposition. Addresses for and against Instructing for Hughes were made by several delegates, but the Hughes adherents won by a substantial majority when a vote was taken. Simi lar resolutions indorsing Hughes were adopted with opposition in the Eleventh' District Convention, although the dele-1 gates were not Instructed. The results of the conventions mark at peculiar situation existing In the two districts, In that two conventions have been held In each district and two sets of delegates elected to the National Con-, vention. The first set of delegates from' each district, elected on February 21, were Instructed for Taft. Two Sets Claim Scats. Republican State Chairman W. 8. Dickey declared that by reason of the fact that district committees of the twoj districts were ousted by the state com -I mittee, the conventions held on February! 21 were Illegal and the delegates elected' were illegally elected. He called the two' conventions held today and declared them held under the auspices of the Repub'.i-j can State Committee in regular form and therefore legal. As a consequence the rival sets of delegates from the two districts will contest for seats !n the' Chicago convention. XEBRAKSA SOLID FOR TAFT!" Instructs Delegates Strictly and Wants Tariff Hevision. OMAHA. March 12. Without a voice of dissent the candidacy of William H. Taft for President of the United States was1 indorsed by the Republican State Con-; vention of Nebraska today, and a solid delegation for the Secretary will go to Chicago instructed to vote for his nom!-; nation first, last and all the time. It was a Taft convention from start toj finish, despite talk of a division, and,: wnen trie question ot selecting aeiegates at large came up for consideration, the stated delegation Governor Sheldon, Sen ator Xorris Brown, Victor Rosewater and Judg,; Allen W. Field, of Lincoln, went through with a rush. One Lone Man Opposes. The Second and Sixth districts heM; their conventions during the forenoon,; and representatives of organized labor j made a demonstration on the floor of. the Second District gathering. Tony Don-. ahue, an Omaha labor leader, who was n delegate, made a formal protest agalnst: the candidacy of Mr. Taft. He said thatj he represented fWO voters In the Second District, who were unalterably Opposed1 to Mr. Taft. and asked that himself and 15 other delegates be placed on record as opposed to pending a delegation to Chi cago instructed for the War Secretary. Mr. Donahue was heard respectfully, but: the convention (took no action. The mat-; ter was not brought to the attention ofj the state body. La Follcttc Boom Dead. A large delegation from the Sixth Dis- trict, where the La Follette movement received its greatest impetus, arrived late; last night, and at once made it distinct- ly known that opposition to Mr. Taftf had ceased. Mention of the name of Mr. Taft, made; by Temporary Chairman Daniel Nettle-; ton, caused the convention to cheer up-f NAME HUGHES (.Concluded on Fas &.