VOL. XLVIII. 0. 14.789.
PORTLAND, OREGON, " THURSDAY, APRIL 23, 1908.
PRICE FIVE CENTS.
1AIILL BUILD
A
OF
Oregon Electric to
Gridiron Willam
ette Valley.
WORK WILL BEGIN AI ONCE
Capitalization Is Increased to
$10,000,000 to Carry
On Operations.
301 MILES OF NEW LINES
Extension From Hillsboro to
Tillamook Among Projects.
FEEDERS ON ALL SIDES
Company's Financial Barking Ample
to Carry Out Enterprises Will
Be Immense Factor in Je
vclopment o' Oregon.
FACTS ABOIT ORPXiOX ELECTRIC
RAILWAY.
!nc.rae hi capitalisation. $7.1100.000.
Promt capitalisation. 10.000,OOa.
Present mllea, fio,
Projaetad nill. SOI.
f?xtenalona Just announued, Qan1a
Kama to Hillsboro. Hillsboro to Til
lamnok. Tlcardvllle to Eugne, Salem
to Mill City. Saltm to Albany. Albanr
to Cascadia,
To gridiron the Willamette Valley with
electric lines la the. avowed purpose of
the Oregon' Electric Railway Company.
The original capitalization of $2,500,000 was
Increased yesterday to $10,000,000. Exten
sions to the system were authorized aggregating-
301 miles. Work will be com
menced on the llrst of these lines this
morninff.
Stockholders and directors of the com
pany met in the headquarters In the Cor
foett building yesterday morning- and
authorised the filing; of new articles of
Incorporation, providing for the Increase
in the capital stock and the construction
of new main lines throughout the Wil
lamette Valley, as well as feeders run
ning Into the country on both the east
and west side of the Willamette River.
, It is estimated that the additional capi
talization will provide for the new lines
planned. If Insufficient, however, the
company Is prepared to secure whatever
amount Is needed for .the work.
The plans of the Oregon Electric to de
velop this state with trolley lines Is the
jnost Important railroad announcement
Portland has had since the North Bank
road was projected from Pasco, Wash., to
this city. It means the development of
the Willamette Valley to a remarkable
degree for the system of roads mapped
out will serve the territory to be entered
in the most satisfactory way.
New Lines Authorized.
The following new tines were authorized
ty the directors of tho company at yes
terday's meeting: Salem to Albany,
IS miles; Garden Home to Hills
boro, IS miles: Hillsboro to Tillamook.
67 miles; Tigardville to Rugens. 12S miles;
Salem to Mill City, 64 miles, and Albany
to Cascadia. 35 miles. Total mileage, 301.
Willi the 80 miles alreadr constructed by
the company between Portland and
Salem, the construction of the new lines
Just authorized will give the Oregon
Heotrks 351 miles of standard gauge rail
road in the state.
The capitalization of the company will
be equally divided between common and
preferred stock, of which 60.000 each will
be Issued, of the par value of $100. The
revised articles of incorporation were sent
to fialem by special messenger yesterday
for tiling with the Secretary of State and
they were also placed on record at the
Courthouse here.
Stockholders met first In the offices of
General Manager Talbot In th Corbett
building.' Upon their authorization of the
increase of capital stock and the new ex
tensions, directors met In the same offices
and ratified the action of stockholders.
The following directors of the Oregon
Electric Railway, enough to make a
quorum, were present: Guy W. Talbot.
James B. Kerr. Edward Cooklngham and
George F Nevlna.
Where Money Comes From.
MofTatt & White, 6 Nassau street. New
Tork City, are managers of the syndi
cate that is supplying the capital for the
Oregon Electric operations In this state.
The executive committee Is made up of
the following New York capitalists: A.
Bedford. George Barclay MofTatt and
AVIlliam A. White.
In a general way the extensions of the
NETWORK
ROADS
Oregon Electrlc's system will provide
widely separated parallel lines up .the
Willamette Valley from Portland, one on
each side of the river, together with a
main line running to the Coast at Tilla
mook and a number of feeders and
laterals throughout the territory reached.
From the Portland-Salem line, a road
will be built through Washington and
Tillamook counties to Hillsboro and Tilla
mook Bay. This Mne will tap one of the
richest dairy and farming sections on the
Pacific Coast. From TIgardvlIle, also on
the Portland-Salem line, a main trunk
road will be built through Washington,
Yamhill, Polk. Benton and lane counties,
through Corvallls to Eugene. Another
line will be built from Dallas to Salem
and thence easterly through Marion
County to Mill City. There will also be
a road constructed from Albany, which
will be reached by an extension of the
main line from Salem, southeast through
Lebanon to Cascadia.
Start Hillsboro Line Today.
WlUlam 8. Barstow & Co., the engin
eering firm which builds the Itnes of the
Oregon Electric, has assembled con
struction materials and will begin work
this morning on the Garden Home-HUls-boro
line. Upon its completion, attention
will be turned to building from Salem to
Albany. It Is likely that at least three
' " " "
LiLJ
General Manager tiny W. Tnlbot,
of the Oregon Electric Railway
Company, Yho Annonnres tbe
Construction of 2K3 Miles of
New Railroad In Oregon.
years will be required to complete the
system of new lines mapped out by the
stockholders and directors of the com
pany at yesterday's meetings.
"These are our plans for the future."
said Guy W. Talbot, vice-president and
general manager of the .Oregon Electric.
"They will be prosecuted as rapidly as is
practlcat.e. We will start the ball roll
ing by beginning work on the Hillsboro
extension tomorrow morning. This line
and that from Salem to Albany will be
the first constructed.
"The determination of our people to
build such an extensive system of rail
roads throughout the state, even in spite
of unfavorable financial conditions in the
East, shows the confidence they have
In this state. Tho men behind the pro
ject predict a great future for Oregon.
The fact that they are planning to spend
$7,600,000 additional to the $3,000,000 already
expended In building the Salem line,
shows their faith in this country.
Will Open Splendid Country.
"A splendid country will bo opened tip
by the lines Just mapped ouL' There are
great possibilities for the Valley and our
people realize it. The whole district Is
rich in agricultural products and in dairy
ing and fruitgrowing. Besides, a great
timber country will be reached by the
Tillamook line. We hope' in the end to
have a very successful enterprise.
"All the new lines planned will be uni
form with the Portland-Salem line, which
Is standard steam railroad construction
throughout." .
The Oregon Electrlc's backers have
made good in this state. They have car
ried out faithfully whatever they have
started and there is every reason to be
lieve that the announcement Just made
means Just what they say. Less than two
years ago the first announcement of oper
ations in this state by the New York
banking firm of Moffat A White was
made. WHhin that time the company has
built 80 miles of standard railroad, be
sides assembling materials on the ground
for the Hillsboro branch line of 18 miles.
The Oregon Electric Railway Company,
which succeeded the original construction
company, has had offices in Portland for
the past H months. It principal officers
are: President. George Barclay Moffatt,
New York: vice-president, Guy W. Talbot,
Portland: secretary, George F. Kevins,
Portland; treasurer, H. W. Brower, New
York.
Road Will Bo Independent.
Officials of the company say It has no
connection whatever with any other rail
road Interests and will remain entirely In
dependent. It 1 promised that the an
nouncements of other companies to build
In certain districts intended to be opened
up by the Oregon Electric will make no
difference hi Its plans and that the whole
scheme of railroads Just decided upon will
be carried out on an entirely Independent
basis.
Of the ability of the company to do
what It promises there can be no doubt
because of Its backing by large Eastern
financial Interests, while no one questions
Its good faith on account of having suc
cessfully carried out its projects in this
state thus far.
PRISON FOR A GRAFTER
Ex-Coroner of Los Angeles County
Sentenced to Prison.
LOS ANGELES, Cal.. April 22. Dr. R.
S. Lanterman, ex-Ooroner of this county,
was today sentenced to serve a term of
one year in San Quentin Prison, having
been previously convicted of forging and
cashing a fraudulent expense account In
connection with his official duties. Dr.
Levnterman was released on bail In the
sum or r500 in order that he might visit
his father, who Is dying.
ENEMIES ATTEMPT
'S LIFE
Ex-Supervisor's Home
Is Dynamited.
GRAFTERS FEAR TESTIMONY
Friends of Accused Men Sus
pected of Bomb Outrage.
RESIDENCE IS DEMOLISHED
Intended; Victim and Members of
Family Escape Unharmed Chief
"Witness Against San Francis
co Boodlers Is In Hiding.
OAKLAND, Cal., April 22. What is
believed by the police to have been an
attempt to assassinate James I Gal
lagher, one of the main witnesses for
the prosecution in the San Franalsco
graft cases, was made shortly after 7
o'clock tonight at the home of "William
H. Schenck, Gallagher's brother-in-law.
East Twentieth street and Nine
teenth avenue, East Oakland, when a
huge bomb placed on the porch ex
ploded and tore away the whole front
of the house. Gallagher was up stairs
with his wife at the time, and Mr.
Schenck was In a rear room with his
wife and four children and Dr. Guy
Brown.
All escaped but one boy, who was
hit. in the neck by a flying; missile.
That none was killed was little short
of a miracle. Gallagher's hat was
pierced by a splinter, and taken away
as a souvenir. The house was com
pletely wrecked. The report . was
heard all over Oakland and many win
dows In the neighborhood were broken,
A post be 1 o n gin g to the porch was
hurled 100 feet away.
Great Crowds Oather.
So quickly did the news spread that
Gallagher's home was dynamited that
2000 people were m the premises in a
few moments. The ex-Supervisor was
spied in the crowd and someone re
marked: "I guess that was meant for you."
"Yes, I guess It was," replied Galla
gher, "but they missed me."
A man was seen running down Nine
teenth avenue, a few moments before the
explosion, but up to a late hour tonight
no arrest has been made by the police.
Chief of Detectives A. Peterson made a
careful Inspection of the demolished house
and had a long talk with Gallagher after
ward. But little light could be thrown
upon the matter , which is enshrouded In
mystery.
-Late tonight Gallagher went to San
THE GOVERNOR
WITHDRAW
GALLAGHER
l. .....I
Ftanclsco and went Into hiding for the
night.
Gallagher was a member of the Dood
ling Board of Supervisors and was chair
man of the finance committee. During
the absences of Mayor Schmlts he was
acting Mayor. According to the confes
sions of the several members of the board
and himself, Gallagher acted as inter
mediary between Ruef and tho members
of the board in distributing bribe money.
WORK FOR IMMCXITT BATH
Ex-Supervisors Tell How They Were
Bribed by Ford.
BAiN "TRANCISOO. April 22. Rapid
progress was made today m the case of
Ttrey I Pord. on trial for the third time
on ttm charge of bribery in connection
with the obtaining of a trolley franchise
for the United Railroads, for which cor
poration he la general counsel.
Following the' conclusion of the cross
examination of ex-Supervisor James L.
Gallagher, the prosecution's most lmr
portant witness, who told In detail of re
ceiving from Abraham Ruef and of divid
ing among the other supervisors the al
leged bribe money, seven other eupervts-
janics I. Gallagher, Confessed
Grafter and WltnesM for Prose
ration, WnotBe A mimI nation by
Dynamite "Was Attempted Last
Mght.
ors repeated their testimony given In the
two former trials of Ford, and again re
told the story of their own dishonesty
and the corruptton of the board of which
they were members. Of the 16 supervisors
who confessed to taking bribes, the fol
lowing testified today: John J. Furoy,
Cornelius J. Harrigan, Max Mamlock,
James F, Kelly, Edward I. Walsh, Charles
Boxton and Sam Pavis.
With the exception of Gallagher, the
cross-examination of the former super
visors by , wunsel for Ford was very
brief; In jsoms lnptanoes conflnd to a
few questions. w
WithSun exception tlm supervisors ad
niitcd in:r t -y were in avc of the ordinance-,
IT no iiiton:!oi,- to -oppose 't
and would have voted for it even if there
had been no money consideration in it.
Both Mamlock and Walsh testified at
the former trials that they received some
large bills in their first payment and this
time stated that they were paid in small
bills. Attorney Moore confronted them
with their former testimony and remarked
that "their recollection, like old wine,
improved with age."
It was shown by Gallagher's testimony
that he was one of the last of the super
visors to confess and Moore brought out
that the witnesses had personally carried
on all negotiations for the immunity
( o&Td no papnTPtioQ
If -I0' X
If " ' v v" i V I
1 -" ''' I'
"WHAT'S THAT? THEY WANT ME TO
AS A CANDIDATE FOR SENATOR?"
TREASURER STEEL
BAD
MEMORY
Fails When the State
Questions Him.
ROSS ON STAND SRORT TIME
Denies Converting a Dollar of
School Funds.
CASE GOES TO JURY TODAY
Judge Burnett, Overruling Motion
of Prosecution, Holds Sufficient
Evidence Has Been Submitted.
Steels Poor Recollection.
PROGRESS OF THE ROSS TRJAU
Judg-A Burnett ruled that the offi
cers o the Title Guarantee A. Trust
Company are criminally liable If the
bank converted money known by
them to be school funds.
Evidence for the ataite wa com
pleted and Ron was on tbe Ptand
, only lonr enough, to deny that ha
ever converted any of the school
funds to his own use
State Treasurer Steel's lax memory
has been a Kreat aid to the defense.
The case will be argued and sub
mitted today. .
SAXJ3M, Or., April 22. (Special.) Un
able or unwilling to break the mysterious
ties that bind him to the interests of J.
Thorburn Ross, State Treasurer Steel
couldn't remember the incidents concern
ins; which the state wanted him to testify
today in the case against the former pres
ident of the defunct Title Guarantee &
Trust Company.
When M. I Pipes, attorney for the
state, was asking questions regarding- con
versations with Mr. Ross; he couldnt re
member; but when Wallace McCamant,
attorney for Ross, asked questions, his
answers wera prompt and complete, too
man if "s t was the -rar'ation of his reric
tlnn that a srnile swept over the audience
ai.d Judge Burnett was impelled t re
mark the unwillingness of the witness.
The unwilling testimony of State Treas
urer Steel was one of the chief features
of the Ross case today. This morning
Judge Burnett overruled the technical ob
jections raised by the defense yesterday
and ordered that the taking of testimony
proceed. This afternoon, at the close of
plaintiff's case, he denied another motion
to strike out practically all of the state's
ev 1 donee, A few moments later th e de
fense had completed its evidence, the tak
ing of testimony was closed and the case
carried over until tomorrow, when the ar-
guments will be heard and the case sub
mitted to the jury.
Iefense Disappointed at Icclsion.
Judge Burnett's decision this morning
upon the technical questions raised In be
half of Ross was a great disappointment
to the defense They had contended that
under the constitution as Interpreted by
custom and by the Supreme Court a
Treasurer is permitted to make a general
deposit of school funds subject to check.
Mr. McCamant found his authority for
tills position In the decision of the Su
preme Court in the case of Baker vs.
Williams, in which the court declared
that a public officer "fs required to keep
such funds safely, and for that purpose
may deposit them In a bank, provided
they are at all times subject to his order."
McCamant thought that language conclu
sive. But Judge Burnett saw It otherwise. He
quoted from tht8ine decision to show
that a deposit remains the property of
the state, while a general deposit subject
to check would be a loan to the bank.
The court went back to the principle that
,
e
' i
I rmminr tmm imnir -- i n-i 11J I
Senator 1. V. Knox, of Pennsyl
vania, Adrorate of Strict Fed
eral Control of Railroads.
a stream cannot rise higher than its
source and held that the bank, cannot
secure from Steel the right to loan public
funds, for Steel has not that right him
self under the constitution.
Taking up the question of the liability
of Individual officers of the bank for the
acts of the corporation. Judge Burnett
cited the statutes making an accomplice
liable as a principal and held that the
defendants would be thus liable. If,
through them the bank converted funds
which they knew to be school funds.
Treasurer Steel on Stand.
The court )iavin "overruled the defend
ants' bjecrlaiis. the prosecution called
State Treasurer Steel and asked him re
garding funds deposited In the Title
Guarantee & Trust Company bank.
He told very readily of finding, when
he took the office in January, 1907, that
his predecessor had" $.15,000 on deposit In
this bankbii when he was asked about
his own transactions his memory failed.
His chief clerk had transacted nearly all
the business, he said, and he could not re
member having talked with Ross about
state deposits and could not recollect any
conversation with Ross about the educa
tional fund or about the law by means
of which that enormous fund was turned
over to the Ross bank without interest.
Though he segregated the funds In the
Ross hank when the new law went into
effect and called one fund "educational,"
he did not remember ever having told
the bank officials that this fund was
made up of school funds. The educa
tional fund at the time of the segrega-
(- eSSd uo papnouo3)
CONTENTS TODAY'S PAPER
The Weather.
TDSTERTAYS-,rSlaxImuni temperature, 63
defrrettft; . minimum, 40 decrees.
TODATS Showers; southwesterly winds,
shifting- to northwesterly.-
Foreign.
British mourning: for Campbell-Bannerman.
Page 4.
National,
Roosevelt threatens trvveto navy bill unless
money is provided for new battleships.
Page 1.'
Hale hurries to insert appropriation for bat
tleships. Page 1.
Lumbermen almost got Joker in land-grrant-resolution,
but Hawley foils them.
Pago 3.
Roosevelt signs errrployc-rs' liability bill.
Page 3.
Cannon and Aldrlch arrange programme on
currency bill. Page 7.
....... politics. -
Illinois Democrats will indorse Bryan.
Page 4,
Taft men sure of 500 votes on first ballot.
Page 4.
Knox speaks on Federal, control of railroads.
Page 5.
Pacific Coast.
Storm spoils fun of fleet at Los 'Angeles.
Page Z.
Bomb blows ud house where ex-Supervisor
Gallagher Is. but he escapes. Page L
More Stanford students suspended. Page
Sport.
oPrtiand nd Oakland tie in eighth, when
rain stops play; no game between Ran
Francisco and Los Anseles. Pa.ee 7.
Harvard wins boat race with Annapolis,
Page 7.
Pacific Coait.
Cake's lead over Fulton In state Is 2620.
Page 6.
Ross trial will go to jury today. Page 1.
Club with 1SOO members formed to
boost McBrlde's Gubernatorial candidacy.
Page 6. i
Two killed !n accident at Fort Stevens.
Page 4.
Fort land, mod Vi-HnHy.
Oregon Electric Railway Company will build
network of Unas In Willamette Valley.
Page 1.
Mayor defied to prove charges against Coun
cil men. Page 10.
Mount Scott district will vote on annexation
to city. Page 10.
New Republican Central Committee favors
organization. Page 11.
Clemens wins over Beveridge In race for
legislative nomination; Page It.
Power company will instruct public In use
of streetcars. Page 1.
Butt for commission on bond sales leads to
sensational charges. Page 11.
Star amateur boxers and wrestlers meet
tonight. Page 7.
Commercial and Marine.
Depression In English hop Industry. Page T7.
Wheat Irregular at Chicago. Page 17.
Stock market dull -and narrow. Page 17.
Formal transfer of the property of Brown
& McCabe to Rothschild Bros., will be
made this morning. Page ltL
THREATS BRING.
SENATE TO TIME
Roosevelt Extorts Cash
For Warships.
HALE INSERTS APPROPRIATION
House Votes Battleships With
out Money to Build.
VETO CLUB IS SWINGING
Then Hale HnrrWw to Make Amend
merit and Save "Whole Naval Bill.
Warren lefend Taft Prom
Criticisms of JIale.
WASHINGTON. April 22. Preidrt
Roonevelt will veto the Naval appro
priation hill, ahould tho Senate, ,as did
the House, fall to make any appropria
tion for the two battleship which are
authorized In the measure. The
prompt announcement of this fact to
Senate leaders today Is regarded as
responsible for the announcement by
Hale that he would propose an amend
ment appropriating $7,000,000 toward
the construction of thosfi ships.
The President stated his position on
this point with unusual emphasis and
suddenness today, upon learning that
the bill as -passed by tho House was
simply a "paper" provision for Naval
increase. Authorization of the ships
was made, but no money carried to
make the provision effective. Such
legislation as this, the President made
known to his numerous Congressional
callers, was a travesty as to effective
ness, as well as bearing all the ear
marks of legislative legerdemain in
tended to make ridiculous his cam
paign for the greater Navy.
Kale Hurries to Avert Veto.
That the President's quick and tIk
orous action is to be effective 4s evi
denced by the action of Chairman
Hale, of the. Senate Naval committee.
In announcing that at the proper time
he will propose the $7,000,000 amend
ment. ' As to his threat of veto, the
President made It plain that, should
the wisdom of Congress result In the
passage of a bill providing for no
Naval increase whatever, he would
have no ground whatever upon which
to veto tho measure. Any attempt at
what he regards as a travesty on
legislation, by authorizing and not ap
propriating for ships, he declares he
will defeat by he exercise of his con
stitutional power to veto.
Forlorn Hope Xot Given Up.
There is not the slightest indication
that the President has ceased his fight
for four new battleships, according to
the evidence of Senators who talked
with him today. Senators who are
with the President in hi! fight on this
proposition admit tonight that a care
ful survey of their strength In tho
Senate gives but a vote of 26 in that
body In favor of the. President's Naval
programme for four ships.
Significance is attached totthls poll
of the Senate in that it is said to show
a loss to the President of some of his
heretofore staunchest supporters In
that body. Senator Lodge is under,
stood to have quit the fight for the full
Naval programme advocated by the
President, and to have given his rea
sons personally to the President for so
doing. The loss of the influence of
the Massachusetts Senator is regarded
as responsible for the weakness shown
by the poll, as it is believed by those
favoring the programme that, had tho
President's Senatorial supporters en
tered the fight with the vigor he has
evidenced, his desire In this direction
might have been realized.
Wllili PROVIDE APPROPRIATION
Hale Offers Amendment Warren
Defends Taft Against Critics.
WASHINGTON. April 22. When consid
eration of the Navy appropriation bill
was resumed in the Senate today, Hale,
referring to a publication, Min a New York
paper,' which, he said, announced war
outside and Inside the Senate, explained
why an appropriation for . the two new
battleships and submarines had not been
placed in the bill either in the House or
the Senate. The House, he said, voted
the appropriation down on the ground
that it mould not be needed until next
December and the Senate committee had
none put In the bill because no estimate
of the amount that could be expended had
been received from the Department. Since
the bill was reported, he said, the esti
mates, amounting to $7,000,000. had been
received, and he would add that amount
as an amendment to the bill thus in
creasing to that extent the already heavy
appropriations for the Navy.
'"I say this," added Hale, "In order that
Senators and newspaper men and all
others may possess their souls In peace,"
Expense of Maintaining1 Navy.
Answering an inquiry by Clay, Hale
said It was necessary to begin to repair
the vessels almost as soon as they are set
afloat. "When repairs reach the original
cost, he added, "It Is discovered a ves
sel is obsolete."
Hale said he had recently talked with
Sir William White, formerly chief de
signer of the British Admiralty, who has)
(Concluded on Page 7.)
-1
fDTl 102.0