THE 3IORMXG OREGOMAN, THURSDAY, SEPTEMBER 3. 190S.
NEW IB CLOUD
IS
German Move to Recognize
Mulia Hafid Causes Anger
in France.
BAD FAITH SAYS CABINET
Charges Germany With Ignoring
Algeclras Treaty and Seeking Ad
vantageFrench Government
Issue Declaration of Facts.
PARIS. Sept. t Morocco has again
caused France to become enraged against
Germany. The latter power has pro
voked another acute crisis by notifying
the ' powers signatory of the Algeclras
convention that she considered the actual
Situation demanded the Immediate recbg
Bttion of Mulai Haftd. the usurping Sul
tan of Morocco. Germany has) also dis
patched Dr. Vassel. her Consul at Tan
gier, to Vex, the capital, which Is now In
the hands of Mulai Hafld.
A feeling approaching consternation Is
manifested in official circles. The noti
fication, which was made verbally, is not
accompanied by any explanation of Ger
many's "brutal change of front." as It
is termed here.
Germany Seek Advantage.
France can see In Germany's action
only her Intention to disregard the Al
geclras Act and seek a special position
In Morocco ror herself. The conse
quences both from an International and
French standpoint are expected to be
deplorable.
In answer to Germany's call for rec
ognition of Mulai Hand before he has
entered into engagements with Europe,
fanatical Arabs who had been gather
ing on the Algerian frontier attacked
yesterday the French post at Bonedib.
The Associated Press Is in a position
to present the French official view of
the situation:
French Government's Statement.
"Germany's notification came as a
complete surprise to France and Spain,
who are engaged In elaborating a pro
gramme of the demands to be present
ed to Mulai Hafld for the safeguard
ing of the common Interests of Europe
and America in Morocco. These de
mands are to be submitted to the sig
natories of the Algeclras Act as soon
as thty are presented, and Germany
was so notified several aay ago. Ger
many took no exception to this course,
and we presumed that she was entirely
satisfied until suddenly there came this
crash out cf a blue sky.
"There, was no longer any question of
upholding Abd el Asls. Both France
-and Spain recognized that he had dis
appeared definitely from the horizon.
What we proposed to do was to force
Mulai Hafld to ratify the engagements
of hi brother. Abd el Azis. before
recognizing him. Now Germany comes
forward with a proposition to recog
nize Mulai Hafid before he has given
any guarantee. It amounts to undoing
the work of the Algeclras conference
and reverting to the status quo ante.
The powers must decide between the
position of Germany and that of France;
the position of France we consider to
be most loyal to the spirit and letter
of the Algeclras Act."
The French press is unanimous In
considering Germany's action provoca
tive, and possibly productive of an
actual crisis.
HATZFELDT NOTIFIES ROOT
German Action Calls Forth the
Word From State Department.
WASHINGTON. Sept. 2. During a visit
to the State Department today Count
Hatxfeldt. the German Charge d'Affalres,
called attention to the Berlin dispatch
acknowledging It to be the opinion of
the government that the speedy recog
nition of Mulai Hafld as Sultan of Mo
rocco by the signatories of the Algeclras
treaty would be in the interest of peace.
Count Hatzfeldt did not present any
formal note irora the German foreign
office.
The attitude of the State Department
in this matter appears to be one of ex
pectancy and disposition to await develop,
ments. The United States was a sig
natory to the Algeciras treaty, but ac
companied this with a declaration that In
accepting the application of Its regula
tions and declarations to American citi
zenship and Interests in Morocco It did so
without assuming obligation or responsi
bility for their enforcement.
BCIXETS CVT DOWN FANATICS
Frenzied Moors Charge In Face of
Machine Gun Fire.
COLOMB-BEECHAR, Algeria. Sept. 2.
Information transmitted from Bou
denlb and Bouaans by means of signal
flags report that the Berbers renewed
their attacks on the French post at
Boudenlb during the night. They at
tempted to carry the signal station at
the rear of the blockhouse. A number
of violent rushes were made, but they
were repulsed with great slaughter.
The attacks came to an end at day
light. The French lost three men.
The Berblners are reported as raiding
to the south of Boudenlb. Algerian
cavalry has been sent in pursuit of
them.
Further details of the fighting of
yesterday say the Moors displayed the
wildest fanaticism, the horsemen charg
ing against the fire of the machine
guns almost to the walls of the block
house. WERE OXCE OX VERGE OF WAR
France and Germany Kept Apart by
Algeclras Conference.
The gravity of the Moroccan ritua
tion lies In the fact that the contention
over Morocco has brought Germany
and France dangerously near war. The
position of Morocco has excited the
European powers to keen rivalry in
. securing a preponderance of influence
over that country. Great Britain for
a time held the chief influence, tut as
a result of the Anglo-French under
standing. Great Britain definitely rec
ognized France as having the prepon
derating Influence in Morocco.
The French Influence developed
-Steadily until the unexpected visit of
OVER
MOROCCO
the Emperor of Germany at Tangier,
when his declaration that Germany
would insist upon continued and com
plete Independence of Morocco from
exclusive foreign control star-led the
European press and brought the
French-English programme to a sud
den halt. The enforced retirement of
M. Delcasse. the French Minister of
Foreign affairs, was one of the sensa
tional events of the intense diplomatic
struggles which ensued between Ger
many and France. Reports were cur
Vent that both countries had prepared
for war and the French press contained
inflammatory announcements of the
military preparations proceeding on a
vast scale along the Franco-German
frontier. It was during that crisis
that the great European powers were
assembled at Algeclras, not so much to
deal with Morocco Itself as to prevent
it from becoming a source of the grav
est conflict between Germany and
France. The present excitement in
Parts is a renewal of the former Franco-German
feeling in Moroco.
ARABS ATTACKS FRENCH POST
Assault on Fort at Boudenlb Fails.
Tribesmen Lose Heavily.
PARIS, Sept. 2. Arab tribesmen at
Boudenlb, the former stronghold of Mulai
Hafid. on the Algerian frontier, suddenly
attacked the French post yesterday aft
ernoon. The hills surrounding the block
house swarmed with Moorish warriors on
foot and on horseback. The fighting con
tinued until 7 o'clock in the evening, the
French finally beating off the enemy
after the Arabs had sustained heavy
losses. The French had two men killed.
A renewal of the attack is expected. It
is estimated that 15.000 Moors surround
the French post at Boudenlb. The
French garrison totals 1500 men. A col
umn of French reinforcements has
reached Bouanats. 40 miles from Bou
denlb. STATE CANAL DYNAMITED
BOATS STRANDED, FACTORIES
CXOSED AXD FISH KILLED.
Trouble Between Illinois and Two
Villages Over Bridges Leads
to Violence.
JOLIET. 111.. Sept. 2. Unknown persons
early today dynamited the Illinois bank
of the Illinois and Michigan canal at
Channahon. 12 miles southwest of Joliet.
The breach made by the explosion Is 100
feet long. The district is flooded and the
entire section of the canal- from Joliet
to Channahon is emptied of water.
' Boats are stranded fish by thousands
cover the bottom of the canal, naviga
tion is tied up and factories using power
furnished by the canal have closed. Over
100 persons are out of employment.
The dynamiting Is the result of the
fight between the canal Commissioners
snd the state on the one side and the
villages of Channahon and Troy on the
other, oi-er the bridge question. The state
refused to rebuild or repair broken down
bridges. ' ..
CUMMINS WILL BE CHOSEN
(Continued From First Pane. )
election, it Is believed ex-Congressman
Shallenberger has received the Demo
cratic nomination for Governor. Mayor
Dahlman. of Omaha, was In the lead
In the cities, but the country precincts
show Shallenberger to have large plur
alities. Mr. Dahlman today stated that he
would contest the Populist votes cast
for Shallenberger filed both as a Dem
ocratic and a People'! Independent
candidate. He says his opponent can
not run on two tickets. The matter
may be taken to the courts.
The returns indicate the nomination of
the following candidates for Congreea in
the six Nebraska district:
First, Ernest M. Pollard. Republican;
James A. McGulre. Democrat.
Second. A. W. Jeffries. Republican; Gil
bert M. Hitchcock, Democrat.
Third. John F. Boyd, Republican; James
P. Latta, Democrat.
Fourth. Edmund H. Hlnshaw. Repub
lican: Charles F. Gilbert. Democrat.
Fifth. George W. Norrls, Republican; F.
W. Upton, Democrat.
Sixth, Mose P. Klncaid, Republican; no
returns for Democrats.
On the Republican side, George F. Shel
don, present Incumbent, was unopposed
for the nomination for Governor.
On the Legislative ticket the temperance
people waged a hard campaign In support
of a county option law. and the anti-pro-hlbltioni8ts
selected a slate on each ticket
of candidates who had committed them
selves to oppose such a bill. Returns to
hand give little indication of the result
on the legislative ticket.
On the Republican ticket it seems prob
able Hhat J. A. Williams has been nom
inated for Railway Commissioner. The
fight made on him by the Railway Em
ployes'. Association has not defeated him.
CLOSE RESULT IX MICHIGAN
Bradley's Plurality Over Warner
Whittled Below 1000.
DETROIT. Sept. 2. With the returns
still incomplete at midnight, yesterday's
primary for the Republican nominee for
Governor became more and more close.
Auditor-General Bradley still held a lead
over Governor Warner, but his plurality
had fallen below 1000.
With S3 districts missing out of a total
of 2015 In the state. Bradley's vote was
86.850; Warner's S5.0S1, and State Roads
Commissioner Earle's 25.613.
Governor Warner carried the Upper
Peninsula by a large majority and also
received a heavy majority in the
Thumb" section of the state.
Dr. Bradley carried the two heaviest
populated counties of the state, Wayne
and Kent. In which Detroit and Grand
Rapids are located.
DAILY CITY STATISTICS
Marriage license.
I.TXCH-MILLARD J. P. Lynch.
31.
Greshsm: May Millard. 18. city.
BALlrGERl'LF- Arthur Ball. 30, city;
Gertie Cerulf. 14. city.
WILDER-BRADFORD Richard Wilder, 28,
city: Frances Caroline Bradford, 18, city.
K1XSBLL-STRANGE Frank A. Kineell.
over 21. city; Maud H. Strange, over 21. city.
.MACKENZIE-SANDROC Donald Gordon
Mackenzie, over 21. Corvallia: WUhalmlna
Sandrock. over 18, citv.
WILBUR-SWOBB R. F. Wilbur, 49. New
port: Harriett B. Swobe. 42. city.
STILLWLL-.NEfSLBT-T. H. Btlllwell,
S2. Bandon: Ella Nessley, 24. city.
KOEGEL-PAYSON -J. J. Koegel. 25. city.
Zella B. Payson. 18. city.
ROBERTSON-BERENS Ray Robertson. 33,
city: Alice Beren. 18. city.
DONIVAN-FERRERO Harry Tlbbels Don
ivan. 27, city; Maude Luclle Ferrero, over 18,
city.
Weddlns and visiting cards. W. G. Smith
Co.. Washington bids.. 4th and Wash.
Sent to Insane Asylum.
HILLSBORO. Or, Sept. 2. (Special.)
County Judge Goodin has committed
to the State Hospital for the Insane.
William Hart, aged 37 years. Hart
has been at the poorfarm for several
weeks. He Is a native of Honolulu,
and is a son of a wealthy family which
came here from the Islands a number
of years ago. For some time Hart has
been a paralytic
BRYAN DENOUNCES
TRUST SENATORS
Ridicules Idea of Dupont and
Penrose Aiding Republicans
to Make Reforms;
PARTY GAGGED AND BOUND
Cannot Prosecute Guilty Without
Disgracing; its Most Prominent
Members Says Xebraskan
at Sioux City, la.. Rally.
SIOUX CITT. Ia., Sept. 2. Address
ing a great Democratic rally here to
night. W. J. Bryan. Democratic candi
date for President. In the course of a
speech on the tariff, guaranty of bank
deposits, the labor and trust ques
tions and other governmental reforms
denounced T. Coleman Dupont. of Del
aware and Senator Boles Penrose of
Pennsylvania, members of the Repub
lican executive committee, as not be
ing expected to become reformers, be
cause, as he charged, of their affilia
tion with the trusts. Especial atten
tion was given to the reform and trust
questions.
Having traveled the entire night and
day through Minnesota and a part of
Iowa, where he received enthusiastic
receptions all along the line, sir. Bryan
arrived here shortly before 8 o'clock
tonight. From the rear-platform of
the train at various points In both
states, he shook hands with many
hundreds of persons and made several
talks. The chief of these was at Al
ton. Ia., a Junction point, where he
discussed at some length the tariff and
guaranty of bank deposits.
Given Ovation at Depot.
No sooner did the crowd catch a
glimpse of Mr. Bryan, as he alighted from
the train here, than he was lustily cheered
by several thousand people, and the cheer
ing continued as he rode along the streets
to the hotel. He will depart at 5 o'clock
in the morning for Lincoln, reaching horns
at 10:30 o'clock.
Discussing the question of reform Mr.
Bryan declared that the Republican party
was not in a position to reform anything.
"Why," he aHked. "because' Ms con
spicuous members are connected with the
very things that need reforming, and the
Republican pa.-ty canrot prosecute the
guilty without disgracing its most promi
nent members."
He again charged Mr. Taft with not
being satisfied with the Republican plat
form and with being forced continually
to amend it.
Cites One Illustration.
As an illustration he cited the fact
that the Republican National commit
tee had selected a chairman and that
that chairman had selected his execu
tive committee.
"If." he said, "you will read the
names of the members of the execu
tive committee that are now carrying
on this campaign, you will And that a
majority of of them are conspicuous
for their connection with the very
corporations that need reforming. One
of them. Mr. Dupont. of Delaware. Is
today the defendant In a suit for Con
spiracy In violation of the anti-trust
law brought by the United States Gov
ernment, and which is still pending.
Mr. Dupont is defendant In the action,
and yet he Is one of the executive
committee to carry on the Republican
campaign and the chairman of the
speakers' bureau of that committee.
' Penrose Gets. Slap.
"Do you expect Mr. Penrose, of Penn
sylvania, who has. been Intimately con
nected with all the' great corporations of
his state, to become a reformer? And
yet he is another one of the executive
committed appointed to carry on the Re
publican campaign."
Mr. Bryan asserted that there were more
trusts now In the United States than there
were 11 years ago.
"Not only this," he added, "but with the
most strenuous Republican you have ever
had in the White House, he has not suc
ceeded in putting one trust magnate in
the penitentiary."
Mr. Taft. he said, was not as strenuous
as Mr. Roosevelt.
Mr. Bryan concluded by saying that the
Republican party Is regulated by the
trusts.
TAFT AND FORAKER MEET
(Continued From First Page.)
Harris. All three stopped and Joined In
the line of march. As the senior
Ohio Senator approached and the crowds
recognized him there was a hush and then
a mighty cheer, which was taken up in
the street and echoed far away In the
distance as the Senator and ex-Secretary
of War shook hands.
"Hello, there." said Mr. Taft, extending
his hand as he saw his fellow-statesman
approaching. Both men smiled and the
crowd, fully cognisant that the anticipat
ed reconciliation between the former po
litical foes was now an official fact, in
creased the volume of the cheers to an
extent that made it almost Impossible for
the two principals In the scene to tell
what one was 6aylng to the other.
"Been taking some air at the springs?"
commented the Senator.
"Yes, and I'm feeling fine."
"When did you get here?"
"Got here this morning by water. Had
a nice trip, but it was a little rough. I
am a fine sailor, however."
The rest of what they said was lost In
the din of many, voices raised in a tre
mendous shout.
Shout Greets Leaders.
Mr. Taft left Middle Bass Island at 6:30
o'clock this morning on a small power
yacht and after a tempestuous voyage of
four hours reached Toledo very damp
from the spray, but otherwise unimpaired
He was taken in an automobile direct to
the reviewing stand. Mr. Taft said on
the journey that he did not know of any
arrangement whereby he was to meet Mr.
Foraker. . nor did he know of any en
deavors to effect such an arrangement.
But the City of Toledo seemed to know
all about It, and when, after the candi
date had been In his place only a tew
minutes, a carriage, which headed the
parade, stopped In front of the stand
and discharged its passengers, there was
a tremendous shout as the thousands who
were within sight of the stand In the Im
mense stands adjoining and across the
street caught sight of the senior Senator
and his collearue. Senator Dick, Gov
ernor Harris, and Mayor Whltlock.
Rivals Meet as Friends.
Mr. Foraker ws the last of the little
party to reach Mr. Taft's side, but when
he did and each raised high his right
hand. Mr. Taft saying.
"Hello, Senator," and Mr. Foraker.
"I am glad to see you. Judge." and
then shook hands long and heartily, and
smiled cordially, there was a mighty
shout from the crowd, and then a round
of cheers. The two sat down together
and remained In earnest conversation
for more than an hour. Incidentally to
gether receiving tiie plaudits of the
marching veterans. Mr. Foraker left to
keep a business engagement and Mr. Taft
remained untlll the parade had passed.
Mr. Taft was allowed to depart on an
automobile and he consented to shake
hands for 20 minutes with an enthusiastic
throng. The ride ended at the Lyceum
Theater at 4 o'clock, where, when Mr.
Taft had been cheered for a few minutes
by an audience which filled the large
playhouse! Mr. Foraker made his ap
pearance. He was also enthusiastically
greeted as he took a seat beside the
candidate, after the latter had risen and
greeted him with a handshake.
Then the speechmaklng began. President
Mulhollanrt of the club introduced Mr.
Taft as "The world's big man." and used
mat.y more complimentary phrases.
Admits Debt to Foraker.
Mr. Taft was again a subject of demon
stration and he- encouraged the good
nature of his audience by the pleasantry
that his excuse for being in this section
of the state was an effort to find out
whether there were any bass in Lake
Erie He had not yet quite satisfied him
self. The veterans next received his at
tention and after expressing his patriotic
sentiment toward them he brought Mr.
Foraker Into the discussion, say-In:
Tour chairman has said that I have nlled
office for 20 years almost without reward.
As be did so, 6enator Foraker whispered to
me that there are some who would accept
the honor on the same terms. '
It is a pleasure for me to be here with
Senator Foraker. because when Governor
of Ohio be gave me really my first chance
and took a good deal of risk In putting a
man of 29 on the bench of the Superior
Court of Cincinnati. We are about to enter,
or rather have entered, a great oratorical
campaign. It is a pleasure to think that
we are going to stand in the campaign
shoulder to shoulder, with the full strength
of the Republican party.
Real Issue of Campaign.
Mr. Taft here went directly to a po
litical argument. In which he repeated
what he had said In his trip through
Ohio last week, that the real Issue of
the campaign was whether the voters of
the country would give their indorsement
to the Roosevelt policies and the deeds
of' the Republican party or turn to the
Democratic party, with Its untried prom
ise?. He had proceeded along this line
a few minutes, when Governor Harris
made his appearance o nthe stage, which
was the signal for . another outburst
from the audience and the remark from
Judge Taft:
"We are coming strong, gentlemen. We
array all the forces we have." .
After the candidate had reviewed the
tariff question, spoken of the restoration
of prUsperity and taken- a rap at. De
mocracy, he concluded:
. "I did not come here to make a speech.
I came here to attend the reception
which Senator Foraker, Governor Harris
and other distinguished Ohioans are pre
paring." .
Xo Ill-Feellng, Sa;.s Foraker."
After a most glowing Indorsement of
Mr. Taft by Bishop Samuel Fallows, of
the Reformed Episcopal Church, Chi
cago. Mr. Foraker was Introduced and
was received with decided cordiality. He
began by scoring the press to the extent
of saying that there came near being a
tragedy In his absence from the meeting
during the first ten minutes of its duration,-
because the newspaper corresponds
ents were preparing dispatches announc
ing the continuation of the "feud and
bad feeling that Is existing between Judge
Taft any myself." He continued:
Under the circumstances I hope I may be
pardoned if I say here In hi presence the
first time I have ever had an opportunity to
say It that there has never, so far as I
know, been the slightest Ill-feeling of any
kind between Judge Taft and myself.
Accepts Taft as Leader.
And if there had been you could not lose
me that way. (Laughter). If there Is any
thing I have a right to claim beyond
another. It Is that I am a Republican 365
days In the year. I have my preferences
sometimes as to who should receive the
honors of the party, and everybody gen
erally flnC out what they are. But I am
one of those old-fashioned Republicans who
settle every question at the convention.
When the Chicago convention nominated
Judge Taft to be the Republican candidate
for the Presidency this year, that instant he
became my leader. He has been my leader
ever since, and he will be my leader until
the polls close on the night of -the election:
Mr. Foraker then turned his attention
to the issues. His belief was that the
great issue would be "whether the admin
istration of public affairs In this country
shall be turned over to the Democratic
party, with Mr. Bryan at its head, or shall
be continued In the hands of the Repub
lican party."
Taft Is Best Qualified.
Mr. Foraker followed this discussion
with an estimate of Mr. Taft's fitness for
the office he seeks, by repeating what
Bishop Fallows had said before him.
"I want to repeat It." he said, "that his
experience On the bench. In the Philip
pines, as Secretary of War. in the con
struction of the Panama canal. In all the
positions he has filled, has been such as
to qualify Judge Taft almost beyond
every other man for the Presidency (ap
plause). We are going to elect him and.
If he does not make a success of it it
will be his own fault."
Mr. Harris' tribute to the old soldiers
concluded the speechmaklng programme.
The audience was permitted to shake
hands with the distinguished guests on the
stage and Mr. Taft went to the dock and
at once began his return Journey to Middle
Bass Island. He embarked at 6 o'clock.
It was stated here that many demands
had been made on the National committee
for the services of Mr. Foraker in the
campaign, and that it was the policy of
the committee to endeavor to comply with
the requests for speakers as they were received.
SEEK EVIDENCE OF UUHDEH
POSSE DISCOVERS ARTICLES
BELOXGIXG TO' WOMAX.
Seattle Mystery Promises to Bo
Solved Through Search
by Reporter.
SEATTLE Sept. 2. Evidence that may
serve to definitely establish the identity of
the woman whose murdered body was
found on Verdes old logging road near
Champagne Point at the northern end of
Lake Washington, was discovered today.
A posse of residents, organized by a re
porter for the Post-Intelligencer, revisited
the place of murder, and found the lower
Jawbone of the dead woman, which is
marked by extensive dentist work; the
revolver with which the woman may
have been murdered; a gold-mounted
back comb and a cheap penknife, which
had evidently been thrown Into the brush
after being used to remove such clothing
as woudl identify the corpse.
The four back teeth of the right side of
the Jaw are bridged with solid gold.
The discovery of the revolver proves al
most conclusively that the murder was
committed at the spot where the body was
found. The revolver lay about a foot from
the head of the body.
Mazamas' Reunion.
Mazamas and their friends will hold a
Mount St. Helens reunion on Portland
Heights, Just above the castle, Saturday
afternoon and evening. These reunions
have become an honored feature of the
Mazama outings, and this one promises
to be exceptionally Interesting. A. F.
Flegel will narrate some of his experi
ences with the Alpine Club of Canada In
the Selklrks. and several others will con
tribute to the entertainment of those who
attend.
WRECK OFF COAST
Rumored Loss of Vessel Near
- Point Arenas.;
LUMBER WASHED ASHORE
Dense Fog Veils Shore and Hides
Fate of Ship May Be Any
One of Five Vessels
In Vicinity.
SAN . FRANCISCO, Sept. 2. From
various sources tonight it was rumored
there was a wreck In a dense fog off
Point Arenas. There is reason to believe
Via ,Ka vpnnn In nimnnrtfld nrinclDallV
by the washing ashore of a quantity of
lumber, presumed to be the deckioaa oi a
coastwise vessel.
The llfesaving crew front', the Point
Arenas station. Which went In search of
the supposed wreck at 5 o'clock this after
noon, had not returned at midnight and
the fog precluded any possibility of sight
ing anything off shore.
The Merchants' Exchange was unable to
gain any . confirmatory information.
Among the vessels in this neighborhood
were the Samoa, Firleld, James S. Hig
gina, Vanguard and F. A. Kllburn.
GUARANTEE OF DEPOSITS
An Argument in Favor of the Propo
sition. PORTLAND. Sept. 2. (To the Editor.)
In your issue of August 2 there appeared
the following statement:
"Portland bankers as far as interviewed
are a unit In denouncing as a dangerous
theoretical experiment Bryan's plan for
guaranteeing hank deposits. They declare
that the enactment of legislation proposed
by the Democratic Presidential nominee
would strike a dangerous blow at conserva
tive banking institutions of the country and
at the same time place a premium on reck
less banking." "
I presume It Is fair to say that The Ore
gonlan Is read every day by at least 150.000
people, and as the question of guarantee
ing bank deposits Is one that appeals, either
directly or Indirectly, not only to every
reader but to every person, I hope you will
accord me the courtesy of reasonable space
in your columns for a statement of the
matter from the standpoint of the average
Individual. Even If It were true that bank
ing Is a matter requiring profound wisdom,
it is certainly a fact that intelligence suf
ficient to Induce a man to put his money in
a bank for safe keeping Is adequate to the
comprehension of the further fact that he
is benefited by being secured against loss.
It Is calculated that there are about 15.
000.000 people who deposit money in the
banks of this country, and as there are
only about H.000,000 voters it can readily be
seen that this question Is worth careful con
sideration bt every 'man appealing to the
people for their r lltlcal support.
Permit me to qu-te as follows from your
Issue of August 2:
"To guarantee deposits is putting a
premium on reckless banking,' unqualifiedly
declared A. L. Mills, president of the First
National. Bank yesterday. 'The man who
pays the most interest will get the deposits
as the depositor knows, that all of the
banks, conservative and otherwise, are re
sponsible to him for his deposits whereso
ever placed. The result would be that there
would be no Incentive for careful and con
servative banking. The management of all
the banks would grow more and more lax
and In the end the public would pay the
price.' " - '
If It were not for the fact that the de
positing public places a much higher esti
mate upon the integrity and good Judg
ment of the average banker than Is sug
gested by the foregoing, there would cer
talnly be much less money In the banks
than there now Is; but entirely aside from
the natural desire of the banker to protect
the Interests intrusted to him Is the fact
that he is In a large measure controlled by
restrictions Imposed by others. In establish
ing a National bank It Is not sufficient that
a man rent an office, put a sign over his
door, and say. "Lo and behold, this Is a
National bank and I . am Its president."
Those desiring to establish a National bank
must first obtain a charter from the Gov
ernment, which will not be Issued until they
have complied with certain conditions pre
scribed by law. Among those conditions Is
one requiring them to subscribe for and pay
In cash the amount at which It Is capital
ised. The stockholders elect the officers,
and are responsible, not only for the full
amount Invested by them In the stock of
the bank, but for an assessment of 100 per
cent more In case an amount so large is
necessary to make good the bank's liabili
ties. Therefore, the man who would follow
Mr. Mills' suggestion and "grow more and
more lax" in his administration of the
bank's affairs would probably receive an In
timation from his stockholders that there
is no comer as yet on men capable of man
aging a National bank. If the stockholders
had themselves grown "lax" and failed to
notice the lack of interest on the part of
those managing the bank's affairs, the ex
aminers appointed by the Government, who
make regular inspection of banks, would
call the attention of the Controller of the
Currency to the condition of that bank and
be would see that those conditions were
promptly changed and corrected, or would
put the bank into the hands of a receiver.
In case the epidemic of laxity had become
so great as to Include the bank examiners
and the Controller of the Currency, there
still remains a corrective agency more pow
erful even than the Government itself in
sui-h matters, and that is the Clearlng
House Association, made up of men con
nected with and chosen by the bankers
themselves.
About two years ago the Clearlng-House
Association of Chlrago took over the assets
of the Chicago National Bank and paid the
depositors In full, knowing that there would
be a large loss to them as a consequence,
but preferring that to the much larger loss
likely to result from the failure of the said
bank. Speaking In relation to that matter,
layman J. Gage said, before the banking and
currency committee of the Mouse of Repre
sentatives: "Well, they learned a lesson and they
adopted another principle, a principle pro
vided for In this bill. By the vote and vol
untary compliance of all the members of
the Clearlng-House Association, they au
thorized the clearing-house at any time and
at stated periods to act upon Its own voli
tion and on its own account, and for the
Information of the clearing-house committee
Itself to have a full, complete and compre
hensive Investigation of each number of the
association, and not only of each member
but of every Institution that carries the
name of bank over It that Is cleared or
represented In the clearing-house by a clearing-house
bank; and I can tell you as a
safe prophecy that we are at the end of
disastrous failures In the City of Chicago by
clearing-house banks, since this regime has
come In. I am told that Kansas City has
the same thing; and other cities will event
ually adopt It."
This assertion that a guarantee of de
posits will lead to reckless banking Is not
supported by a single essential fact: and it
Is answered in a logical and convincing
manner by Charles N. Fowler, In his argu
ment in Congress in support of his bill (the
Fowler bill), which contains this provision.
Mr. Fowler said In part:
"Mr. Chairman, we are occasionally met
with the statement that the guarantee of
deposits would lead to unsound banking.
Can you think of a banker, because
be had insured his deposits, going into the
directors' room and saying: 'Gentlemen, we
bave Insured our deposits today. Now let us
proceed to make some rotten loans' ?
"Is it possible that It will not occur to
these directors that their losses .must come
out . of their profits, out of their reserves,
out of their capital, and out of their repu
tations? Will they not realize that they can
get nothing out of the guarantee until the
last dollar of their profits, capital and sur
plus has been wiped out. and the stockhold
ers have been assessed In double the amount
of their stock? Until their reputations have
been injured, if not ruined, and some of
them bave possibly started on the road to
state prison? Can anybody think that any
board of directors of any bank would be
less solicitous, anxious and bonest and
wise after they had guaranteed the depos
its than they were before?
"I assert again, after the most mature
deliberation, that if there Is one reason for
insuring life or home, there are more than
a thousand good reasons more than tea
THE. '
ASTORIA 6 COLUMBIA RIVER R. R.
SATURDAY
easide
and SUNDAY
Port!
ana
EL
WILL, BE CONTINUED .
Until September 12-13
Special leaves Portland Saturdays 2:20P.M.
Returning leaves Seaside Sundays 6:30 P.M..
Excursion tickets at reduced rates on sale at City
Ticket Office, corner Third and Morrison Streets
and at Union Depot.
thousand good reasons why the depositors
of the banking institutions of the United
States should be insured."
One of the bankers Interviewed by The
Oregonian asked: "Why should all the banks
In the country guarantee each other's de
posits when they have no voice In the man
agement of other than their own Institu
tions?" One reason why Is. as stated by Mr.
Bryan, that the banks were made for the
people not the people for the banks. It Is,
too. a gratuitous assumption that the banks
would have no voice In the management of
any institution other than their own. The
Democratic platform merely pledges that
party to enact legislation requiring the
National banks to establish "a guarantee
fund for the prompt payment of the de
positors of any . Insolvent National bank,
under an equitable system which shall be
available to all state banking institutions
wishing to use It": and the only carefully
drawn measure yet presented. In so far as
I know. Is the Fowler bill, that was recom
mended by the banking and currency com
mittee of the House during the recent ses
siun of Congress. The Fowler bill provides
far better protection to National banks
than they have at present, the management
being much more under their own control
In somewhat the same way as the banks in
Chicago are now under the supervision, or
at least the Inspection, of a committee of
the Clearing House Association. The banks
would sln.ply be taxed to provide a fund
for the protection of depositors, and that
tax would be so light that It would be
Insignificant. During the 44 years of ths
National banking act the losses to deposi
tors amounted to only .037 of 1 per cent
per year. Think of that. Mr. Reader, or
Mrs. Reader, or Miss Reader not half of
1 per cent or one-tenth of 1 per
cent, but only .037 of I per cent!
All the financial loss, and business
panic, and heart-ache could have been
prevented by a tax of less than one-tenth of
1 per cent per year on deposits! That is,
all that part of It resulting from bank fail
ures could have been avoided; and that
arising from other causes would have been
lessened.
Banknotes are now guaranteed, and al
ways have been since the present law re
lating to National banks went Into effect;
and as there is no difference whatever, ex
cept In form, between the obligations of
the banks to holders of banknotes and to
depositors, there is no sound reason why
the former should be guaranteed while the
latter are not. The Government usually re
ceives Interest on Its deposits, and It also
exacts security. Why should not the Indi
vidual depositor bave as much protection
as the Government? In truth, the indi
vidual's security Is lessened by the fact that
some of the resources of the bank are used
In specifically guaranteeing the deposits of
the Government. That certainly is not
equitable.
During the past few months thousands of
foreign laborers bave been buying postoffice
orders for their savlnss losing interest in
order to feel secure. Now. what did the
Government do with that money? It either
put it into its own vaults, thereby taking
It out of circulation and lessening the sup
ply of currency, or else it deposited it In
National banks. If It deposited the money
In National banks It received security for it.
and probably Interest. Under a proper guar
antee plan that money would at once have
gone into the banks, and would bave been
as secure there as with the Government.
For the benefit of those who are afflicted
with Bryanphobla. and pay more attention
to the source from which a suggestion comes
than to the merit, or demerit, of the meas
ure Itself, permit me to say that this guar
antee plan was not original with Mr.
Bryan, but was brought into the domain of
legislative discussion by Charles N. Fowler,
more than ten years ago. It Is really a Re
publican waif.- finally taken up and given
a home by the Democratic party; but
whatever Its source, or whoever Its origin
ator may have been. It is a measure that
appeals to every person, man or woman,
who has now, or whoever expects to have,
either money or employment. With such
a plan In operation there would be no runs
on banks: with no runs on them, banks
would fall less often; and with fewer bank
failures there would be far less business dis
turbance and when It did occur It would
be temporary and much less widespread
than now. Oklahoma already has such a
state law. and so much money Is going from
the border towns of Kansas Into Oklahoma
that the Kansas Republicans have Indorsed
the plan In their convention: and the next
Legislature will pass such a law. no matter
which party is In control. Then Nebraska
will fall In line: and so on through the
states. The National banks in Oklahoma
that have come in under the state law
have shown an increase in deposits, while
the others have shown a loss. There has
been one bank failure since the law went
into effect, without any disturbance among
depositors. The best financial authority to
be found In the Republican party has in
dorsed the plan and many, if not most, of
the members of the American Bankers'
Association favor the Fowler bill, which
contained that feature. It would be a pro
tection rather than a harm to the banks,
and it would be an Inexpressible benefit to
all depositors and to the business community
in general. W. W. CATLIN.
BIDS FOR WATER TOWER
Auditor to Advertise and Proper lo
cation to Be Selected.
'At a special meeting: of the fire com
mittee of the City Executive Board yes
terday afternoon,- Chief Campbell fur
nished specifications for a water tower,
which Is soon to be purchased. The City
Auditor will be authorized to advertise
for bids for this needed apparatus, and
while the process is being worked, a loca
tion will be sought whereon to store the
addition to the equipment of the depart
ment. ' Chief Campbell reported that 85 hydrants
have been accepted from a shipment laid
down In Foreland months ago. and that
some of them are being placed In North
Alblna. where there has been a demand
for fire protection. Among those who
headed delegations to visit the city of- I
ficlals in the effort to secure needed hy
drants for North Alblna was J. H. Nolta.
"I suppose Nolta win be satisfied now,"
remarked Fire Commissioner Peery.
"I think not," replied Chief Camp-
opecia
1 v?
especial
bell. ."He wants an engine-house out
there now."
J. McRobcrts 111 at Astoria.
ASTORIA, Or.. Sept. 2. (Special.)
J. McRobert, of Portland, was taken
critically ill with appendicitis while
en route to his home from Seaside on
last evening's train. He was removed
to the hospital here, where an opera
tion was performed and today there la
every Indication of his early recovery.
Fair Commissioner Active.
HILLSBORO, Or., Sept, 2. (Special.)
President W. H. Wchrung. of the
Oregon Commission, Alaska-Yukon-Fa-cific
Fair, is preparing to move to
Portland for his Winter's residence.
Mr. Wehrung has Just returned from
an extended trip to Southeastern Ore
iron In the interests of the exposition.
Is your moutb slmllsr In any way to ths
above? If so. no need to wear a wobbly,
unusable partial plato or lll-flttlng ordinary
bridge work. The Dr. Wise system of
"TEETH WITHOUT PLATES"
Th. result of 21 years' exuerlece. the new
way of replacing teeth In the mouth toetn
In fact, teeth In appearance, teeth to chew
your food upon, as ytsu did upon your nat
ural ones. Our force la so organised ws
can do your entire crown, bridge or plats
work In a day if necessary. Positively pain
less extracting. Only high-class, solsntlflo
Wlk' WISE DENTAL CO., INC.
Dr. W. A. Wise, Mgr.. 21 years In Portland.
Second floor Falling bldg.. Third and
Washington streets. Office hours, 8 A. M.
to 8 P. M. Sundays. 8 to 1 P. M. Painless
extracting. SOo: plates. 15 up- Phones A
and Main W2V
HAND
SAPOLiO
Is especially valuable daring the
Summer season, when outdoor occu
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GRASS STAINS, MUD STAINS
AND CALLOUS SPOTS
yield to it. and it ia particularly
agreeable when used in the bath after
violent exercise.
AQ Grocers and DrutfjlBti,, .
A SKln or Beauty is a Joy i-orever
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R. T. FELIX GOURADD'S ORIENTAL
CREAM OR MAGICAL BEAUTIFIES
Rem ore Tan. PI m piss.
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Accept no counter
felt of similar
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Say re said to
lady of ths haut
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Goods Dealer in the United States, CnJ nd Europt,
TERD.T.HOPUHS, Prep., 37 Great Jcnw Stat, Mew York,
When you want a quick cure without
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Chamberlain's
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It never fails and is pleasant to take.
It is equally valuable for children. It ia
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Watch for -
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Contest in
Sunday Papers.