: ,-T, f 1 PORTLAND. OKEGOX, SATURDAY, JANUARY 30, 3909. ; I KICI. t UL,. Alillll. .W. - INQUIRY INTO STEEL DEAL Thome and Perkins Before Committee. THEY TALK ABOUT COMBINE Tell Why Trust Absorbed Ten nessee Coal & Iron. SYNDICATE HAD CONTROL Qnetlon of Taking Stoek OTf Market Raised by Fear of Jlenewetl Tan- Ic Gary ami lek Felt Pule of Washington. WAflMIXGTOX, Jan. 25L The merger of th Tfnn! Coal A Iron Company and the, United States Steel Corporation was Investigated by the Snate committee on the Judiciary today. The witnesses were f'sklelgh Thorne, president of the Trust Company of Amerlra. and George W. ferkins. of J. P. Morgan & Co., w ho Is also a member of the finance committee f the steel corporation. Effort have ben made by the committee to subpena Judg Cary and H. C. Frlrk. The ex amination of both witnesses today was i onilui-tnl by Senator Culberson. .Mr. Th.-me testified that the Trust Company of America had no Interest In st.ck of the Tennessee Coal & Iron Company as owner, but op Nevember 1. ;;. It had loaned t4S2.7ort to six Indivi duals, holding the slock at 6") as col htt'ml. All of these loans, said Mr. Thorne, were paid off In November with the exception of two of 1T)2.000 each. .Mr. Tl.orne Mild that he considered the security for the loans to be Rood and tl at h's company had ro Interest In the absorption of the Tennessee company by the st-el corporation, and did not know of the negotiations until after they were be ;un. Syndicate Held Control. Mr. Culberson inquired of Mr. Thome whether be had knowledge of a syndi cate which owned the controlling Interest In the Tennessee Coal & Iron Company !n the Fall of 1M7. lie replied that be had an.l that be was a member of that syndicate, but be had withdrawn from the syndicate and was not familiar with the syndicate's operations. The .original syndicate managers were given as Grant B. Schley and Charles Guthrie. Iyonard Manna, of Cleveland, took the place of Mr. Guthrie after the latter- death. The syndicate, declared Mr. Tliorne, owned a majority of the stock of the Tennes see company. In addition. Mr. Thorne mentioned John V. Gates. E. J. Bcrwlnd and H. 8. Black. When asked if he had any personal knowledge of the actual sale of a ma jority of the stock of the Tenneese com pany In November, l:7, Mr. Thome re plied: "All I know is that I delivered ' my stock to J. P. Morgan A Co. and got a receipt for It." Senator Overman asked Mr. Thorne If at the time of the merger the Trust Com pany of America was financially embar rassed and. if so. whether the merger had tendency to relieve It. lie replied that It had ro direct bearing on either himself or the company. "At the time the syndicate to control the Tennessee Coal A Iron Company was formed." said Mr. Thorne. "the syndicate price was 1110 a share, but Its market price was J33 nd It went up to $12S." Mr. Thorne testified that when the Ten nessee company's stock was surrendered the owners received In return United States Steel S per cent bonds on the bas's of JU9 par value for each share of the stock of the Tennessee company. The Steel Corporation bonds were quoted by Mr. Thorne as being worth from 2 to M at the time he received them and being . worth now between 102 and 103. Perkins' Reasons for Merger. When Mr. rerklns took the stand he said: "The acquisition of the Tennessee Coal Jk Iron Company by the Vnlted Slates Steel Corporation was sever brought up or broached In any way. as far as my knowledge goes, until perhaps the second or third acute stage of the panic devel oped In New York, and then it came up very suddenly because of the series of li.sturbanoes that .existed in New York as a result of the great depreciation In mar ket values and the unmarketabll'.ty of a great many securities. ' Mr. Perkins said thai there was a gen eral feeling, which it would be difficult for any one to express In a concrete statement, that. If the Tennessee Coal & Iron stocks were tSken out of various loans In some way. it would prevent a great many failures and avert a spread of the panic. Continuing, he said: "finally, some one made a suggestion which afterward worked out. that the corporation might furnish 6 p?r cent sec ond mortgage bonds In lieu of cash and In this way put In lieu of these loana se curities that were marketable." Mr. Perkins told of the visit to Washington by Judge K. H. Gary and H. C. Frick for the purpose of seeing the President. "Practically everything was at a standstill untl! we got word from Washington as to what seemed to be the feeling" there." continued Mr. Perkins. "That was telephoned to me by Judge Gary. Monday, about the time the market opened, and the news that (CTontiaued en Pas 4 ) QUARREL ALREADY IS BEGUN IN CUBA GOMEZ AXD ZATAS SPLIT OX NEW POLICE CHIEF. Competent Man Removed and Yel low Editor Appointed Whole Force Resigns. HAVANA. Jan. 29. The relations be tween President Gomex and Vice-President Zayas became seriously strained to day over the appointment of a man to All the post of chief of the secret police. This afternoo-i Jose Jcres, the chief of police, resigned, in response to a demand from the Secretary of Government, who explained that President Gomel had ap pointed as his successor Rlcardo Arnauto. ex-edltor of El Recomentrado. for polit ical reasons. Jeres as an official had an excellent reputation. He had been chief of the secret police for the last ten years. Senor Arnauto has. since the beginning of the period of American Intervention, been an editor of a long succession of publications, most of which nave b?en suppressed. A raper, of which he was the editor, was suppressed for attacks on the wife of Brigadier-General Ludlow, the Military Governor, and other American ladies. General Ludlow at this time or dered his arrest, dead or alive. He was given Immunity under a pledge that never again would he publish a newspaper in Havana. Almost the entire force of the secret service tonight resigned, declining to serve under Arnauto. ll was rumored that Vice-President .ayas liad threatened to resign, but he said tonight that he had not considered the question of resignation. A wholesale discharge of deputies In all departments of the government was made today. ' GREAT FIRE IN ATLANTA Raging in Heart of City Entire, Department Fighting. ATLANTA. Ga.. Jan. 30 What gives promise of being tine of the most serious conflagrations Atlanta has experienced in years Is a fire which started at 3:06 this morning in a restaurant under the Ly ceum Theater, near the corner of Pryor and Decatur strict.". In the very heart of Atlanta's business district, with tall office buildings on two sides and the Kimball Hotel almost directly in front. The entire fire-fighting apparatus of the city Is now engaged In lighting the flames, which have already spread to ad Joining buildings. FIRE IS RAGING IN KELSO Blaze in Business District Does $40,000 Damage. KEI.SO. Wash., Jan. 30. (Special.) Kelso Is experiencing one of the largest tires In Its history. The three-story and two-story Ftdler and Gray buildings are a total loss, also the Kelso Journal plant. Robb & Master, grocers. Becker Millinery Co.. McDermott Real Katate Co., Huntington & Jackson Real Estate Co., besides about a dozen offices. At 1:43 A. M. the Are Is still burning, but is well under control. Tho loss la estimated at ItO.ooo. with Insurance of 15,oon. HOLDS UP HIS EMPLOYER tr Salesman Makes Ulin Tield Monej at Revolver's Muixle. MOBILE. Ala.; Jan. 29. Fleetwood lister. traveling salesman for the Southern Supply Company, and his wife are In Jail, charged with holding up Ifardaway Young, president of the com pany, at muzzle of a revolver at the former's? home and robbing him of $Ci0. Two hours after his release Young swore out warrants against Mr. and Mrs. lis ter, charging them with robbery, and they were arrested. MOONSHINER DIES IN FIGHT Battle With Federal Officials In Xorth Carolina Mountains. CHARLOTTE. N. C, Jan. 29. In a bat tle between Federal officers and alleged moonshiners near Mortimer, Caldwell County, this afternoon. W. W. Honeycutt, whom the officers had under arrest, was killed by D. Pritchard. Tlie Sheriff of Caldwell County left here tonight with a posse of deputies to bring in the moon shiners. DISMISS SALVATION SUIT British "Army" Vnable Vo Block American Organization. NEW YORK, Jan. 29. The milts of the Salvation Army in the United States against the American Salvation Army to enjoin the latter from the "use of its name and from publishing the paper called "The American Salvation Army War Cry." was dismissed today by Justice O'Gorman In the Supreme Court. BUTLER REACHES CAPITAL Mailing of Oregon A'otes Saves Hint From $1000 Fine. WASHINGTON, Jan. 29. Oregon's de layed messenger, R. R. Butler, convey ing the electoral vote of his state, ar rived today. The $1000 forfeit for failure to arrive here by tho time prescribed will not be assessed against Mr. Butler, as a copy had been received by mall. . w .nnpnnrill BLIZZARD RAGES Terrific Storm Sweeps Middle West. SNOW BLOCKADES RAILROADS Wires Coated With Ice and Snapped by Weight. ROTARY PLOW POWERLESS Fropi Minnesota to Texas Come Sim ilar Reports of Terrific Wind, Deep Snow, Extreme Cold, Transit Stopped. DENVER. Jan. 29. From 11 o'clock last night until 1 o'clock today almost the en tire country west of the Missouri River was cut off from telegraphic communi cation with the outside world as the re sult of a rain, snow and sleet storm, ac companied by a wind of almost cyclonic violence that ewept over Colorado, Kan sas and Nebraska last night, and then continued Its work of destruction oast ward. Snow plows Are Powerless. In Colorado, where the storm has been raging for several days In the mountains and along the west slope, railroads are blocked by drifts which have rendered even the big rotary plows powerless, and big snowslides are reported from all di rections. High winds are piling up the drifts in the mountains and adding to the difficulties of the railroads. In the Tellurlde and San. Juan districts of Southwestern Colorado many mines have been forced to close because of the lack of fuel and supplies. A slide that wrecked a section of the Tellurlde Power Company's lines put a doxen mines and mills In the Savage Basin out of com mission. Wind at 70 Miles an Hour. The" Denver & Rio Grande and Moffatt roads are having much trouble with drifts. Bitterly cold weather Is report ed from some points, Tellurlde reporting 16 below. Passenger trains from the East on tho Union Pacific, Santa Fe, Rock. Island and Burlington roads are all late, and passengers report that the wind blew at the rate of 70 miles an hour across the Kansas and Nebraska prairies over which they came. Sleet Snaps Wires. The storm started throughout Eastern (Concluded on Page 13.) ACROSS PRAIRIES 'IF I HAVE TO COME OVER HERE AGAIN, YOUNG MAN, I'LL STAY LONGER- 4 SAVVY?" , I :: I l. ...... T NO MORF RIVALRY I i v w - - - AMONG STUDENTS TEACHER COMPELS GIRL GRAD r.VTES TO MAKE DRESSES. - Result Is Tasteful White Garment Costing $1.39 and Xo Heart burnings. CHICAGO. Jan. 29. (Special.) Th'at most perplexing problem of younger remininity. the graduating dress, has been neatly solved by the girls of the James McCoss grammar school. The girls make their formal leave of the lower school this evening. v Not only will each of the 31 or more dresses be admirably suited to the wearer, but each will be in perfect accord with all the others. Thus will rivalry' and jeal ousy die a hard, unnatural death in this year's graduation of the South Srde schoolgirls and all for the trif ling sum of 1.39 per dress. This combination of perfection is the result of the foresight and planning of Miss Carrie A. Hughes, the school's domestic science instructress. Through her an order was issued two weeks ago by the principal of the school, Mrs. Mary Darrow Olson, to the effect that all of the girls would be obliged to sew their own graduating dresses before receiving a diploma. A hasty council followed. White, of course, was the color chosen and a material called flaxon was decided on. This could be sup plied to each of the girls for J1.39. Goods for the tucks and sleeves brought the price about 5 cents higher. Still working In sisterly harmony, thread and needles were bought In a common lot and made'the final total small. ASTORIA MAYOR . ILL HERE A. M. Smith at Hospital Suffering From Slight Attack of Pneumonia. Mayor A. M. Smith, of Astoria, ar rived in Portland yesterday for the purpose of pleading a case In court, but before the case came up was taken Ilk He consulted Dr. Ralph Matson, who advised his removal to the Good Samaritan Hospital, where, upon ex amination. Mayor Smith was found to be suffering with a slight attack of pneumonia. Dr. Matson said last night ihat his illness was of slight character and that Mayor Smith's condition was In no way serious. SHOOTS WIFE IN DELIRIUM Montana Farmer Becomes Maniac From Typhoid Fever. BKIXJRADE. Mont., Jan. 29. During an attack of typhoid fever delirium yester day, Louis Selfert. a well-known farmer who lives six miles north of Belgrade, fired three loads from a repeating shot gun Into his wife's back and she .lies at the point of death. A baby sho carried In her arms while attempting to escape re ceived a few shot In the arm and face, but Is thought not seriously hurt. Mr. Selfert himself Is In a very pre carious condition and Ills recovery Is doubtful. SAVVY?" E Clamorers for "More" Progress Nicely. LEGISLATURE IS FINE SPENDER New Record for Extrava- gance Likely to Be Set. GOVERNOR' IS DISSENTER Throws Down Gauntlet by Threaten ing to Veto Salary Increases for Officials Answer Is Pass- ' age of "More" Bills. STATE CAPITOL, Uem, Jan. 29. (Spe cial.) This promises to be the most ex travagant Legislature Oregon ever had at Salem, not only on account of appropria tions, but also on account of new offices to be created and higher salaries enacted. There are bills for creation of no less than 200 new Jobs, most of them at fat pay political berths, for few of which the state and Its subdivisions have any need. War between Governor Chamberlain and salary logrollers In the Legislature was declared today front the Governor's office in a special warning message. The House replied by passing Multnomah's bill for an extra circuit judge and over riding his last session vetoes on four agri cultural fair Senate bills appropriating money for Eastern Oregon districts. Senate Disregards Warning. After receiving the special message of the Governor today upon the subject of salary bills, the Senate at first adopt ed the policy of sending such bills to the committee on county and state of fices, with instructions to insert a clause providing that the bills shall not take effect until the end of the terms of present incumbents. But when the Senate reached House bill 69, raising the salary of the County Superintend ent in Vamhlll County, Barrett and Caldwell, from Yamhill, raised a pro test. They called attentlonto the fact that the Governor had not said he would veto a measure where it ap peared that the Immediate raise was meritorious. The bill was passed, as also was II. B. 69, raising the salary of the County Superintendent of Morrow County, and H. B. Ill, raising the sal ary of the Superintendent in Sherman. The Governor announced that lie would veto all salary Increases for officials now (Cone-hided on Page 6.) T WUHU HUHLUNtW JOBS ARE PLANNED PLACER DEPOSIT IN HEART OF CITY WORKMAN" JUKES TUCH FIND IN DIGGING AT LOS ANGELES. Drives Pick Into Lump of Dirt AVhlch Proves to Be Studded With Gold Great Placer Pocket. LOS AXGELES, Cal., Jan. 29. (Spe cial.) The city was thrown- into a state of excitement such as It had not experienced since the first discovery of gold on the San Gabriel by a rich find of the precious metal In the heart of the business section today. While workmen were excavating for foundations at Third and Spring streets one of them thrust his pick into a large lump of what appeared to be hard clay, but the mass was so heavy he washed it.. It turned out to be a lump of "float" larger than a man's head, studded with .arge particles of gold. Other diggers made similar discover ies, and mining men who saw the de posit expressed the opinion that It Is one of the greatest placer "pockets" ever uncovered in the West. The po lice are guarding the property. ADOPT SPANISH INDUSTRY Agricultural Department Shows Cal ifornia $2,000,000 Plum. PASADKXA, Cal., Jan. 29. (Special.) Through experiments Just completed, Cal ifornia should come into a $2,000,000 in dustry that Is now enjoyed by Spain as one of her chief Winter export plums. It Is the growing, storage and marketing of choice varieties of grapes, which hither to has belonged to the Castilians. For four years, experts of the Depart ment of Agriculture have been experi menting with the preserving of grapes at the plant of the Pasadena Ice Company. Varieties have been subjected to every conceivable condition of temperature and time. The result shows that by a scien tific method of packing and storing, choice species can be grown here In the Summer, kept as long as necessary and placed on the market In perfect con dition. HORSES WALk TO DEATH Teum Plunges Into Asylum Slough and Is Drowned. A team of valuable horses sulked deliberately to their death last night and were drowned In Asylum Slough, East Tenth and East Taylor streets. The team and wagon to which they were attached, as well as a load of goo .1s, were the property of the Milwauklo Mer cantile Company. The driver had oc casion to go to the Studebaker establish ment, on the East Side, and left the team unhitched while he went into the offictto transact business. The horses discovered that they were not tied, and deliberately walked away. They walked down East Taylor street to the steep bank of the Hawthorne Slough, and venturing near the edge of the embankment, the heavy load of tlie wagon pulled them Into the water. The horses were drowned before aid reached them. The wagon was recovered from the Slough little damaged, but its load was n--riy a total loss. The team was valued at J.T00. ITALIANS HONOR CONSUL Societies In New York Escort Cor tege of Cheneys. NEW YORK, Jan. 29. A remarkable demonstration in tribute to the memory of Arthur S. Cheney, the American Con sul, and Mrs. Cheney, who were killed In the earthquake at Messina, was made by Italian societies of this city t.viy. The bodies of Mr. and Mrs. Cheney reached New York on the steamer A'enezla. escorted by several thousand members of Italian societies, some of them in regalia, and to the slow funeral music by military bands, the bodies of the Consul and his wife were conveyed up Broadway before a great multitude. A notable feature of the procession jvas the fact that execept for the police escort and the relatives of Mr. and Mrs. Cheney, It was composed exclusively of Italians. THREAT TO SHOOT LORD Mrs. Stirling Determined to Force Northland to Marry. EDINBURGH, Jan. 29. Mrs. Atherton testified today in the cross-suit for divorce (lied by John Alexander Stirling against his wife, who was Clara Eliza beth Taylor, an American show girl, and caused a sensation by the statement that Mrs. Stirling had once purchased a re volver and declared she would shoot Ivord Northland, named as co-respondent by Mr. Stirling, unless he married her. "I am not going to be treated in the same way you have been," Mrs. Ather ton declared Mrs. Stirling said to her. Tiiia waa n reference to Captain Yardc- "Buller, who refused to marry Mrs. Ather ton after her divorce, In winch he was co-respondent. CHAUFFEUSE KILLS DRIVER Woman Blinded by Snow Sends Auto on Kanipagc. CHICAGO, Jan. 29. One man killed, another hurt and three women narrowly escaped Injury today when an automobile, driven by -lrs. Joel Eisendrath, wife of a wealthy clothing manufacturer, crashed into a delivery wagon. Thomas. Clancy, the driver of the wagon, was killed. Mrs. Eisendrath was arrested, but was released on JWX) bond. She explained that the snow had blinded her. OR. PEACOCK SHOT, BY GIRL'S Fear two Wounds May Prove Fatal. TRAGEDY STIRS CATHLMT Woman Believes She Is Aveng ing Daughter's Death. ASSAILANT IS PUT IN JAIL Mrs. I.oiistaliie Follows Victim and Shoots Him in Posloffice Doc tor I'nder Arrest In Connection With Girl's Recent Death. 1 k ASTORIA, Or., Jan. 20. (Special.) Dr. Fred Peacock, a prominent physi cian of Cathlamet, Wash., was shot twice and dangerously. If not fatally Injured, at that place about 3:30 o'clock this afternoon, by Mrs. A. De laine Longtalne, mother of 17-year-old Madallne I.ongtaine, the young girl who died In this city on December IS, under tragic circumstances with which Dr. Peacock was accused of being connected. The wounded man was brought to a hospital here this evening and the bullets removed, but as one of them pierced tlie left lung, the attending physicians regard the wound as a cri tical one. The other bullet made only a flesh wound. Woman's Act Deliberate. According to reports brought from Cathlamet, Dr. Peacock went to the postofflce this afternoon and stood In side the building reading a letter. Mrs. Longtalne, who had followed him in, stepped up behind him and. draw ing a 38-ralliber revolver, fired, the bullet striking the doctor at the point of tlie left shoulder blade, und ranging upward It pierced the lung and was taken out Just In front of the left arm pit. When the first bullet struck him, u'ontlnued on I'affe 4.1 INDEX OF TODAY'S NEWS' The Heather. YLSTK.rtnA Y Maximum temperature. 41.2 degrees; minimum, Utl.2 iK'i;reea. TUDAV Kalii; brisk easterly winds, legislatures. Loral eptlnnlsts plun War rally at Olympla to bn Hdilreased hy Hilly Sunday. Pbk 7 Spilt occurs between CosR-rove and Hay over appointments, rage. 7. "Dr'ys" aocupe Idaho Senator of suhMltutlnic worthless loi-al option bill. F'HKe 7. Ort-eon Legislature asked to create -OO new Jobs, rune 1. Five out of six of chamberlain's vetoes overruled. Pake 6.. Armory bill passed by Senate by five ma jority, l'aue l-'orelKn. Cuban President and Viee-I'resldent quarrel tlrst day H.t'ler assuming ofTlee. I'HRfl 1. Bulnarla appeals to powers analnst Turkey s demands and makes ominous threat, l ane .1 Karthcninke and tidal wave overwhelm Bar celona, second cliy of Spain, l'age 4. S'ational. Letters from C. 1'. Taft and Cromwell d uyiiiK Italney's clmrues road in llouso. I'HKe 5- Senate committee takes evidence on teel merger. I'uko I. Senate committee hears evidence on steel merger. Pago 4. Tail arrives In Panama. Pare 4. Compromise bill on Brownsville rlolers. Vage 4. polities. Itrew Inlroducrs amended antl-ailen bill In California. l'age ,1. Horsl and Klaber plead for higher duty on hops, rugo 'ii. Domestic. Cireat storm In prairie and Rocky Mountain Slates 'stops communication and does much damage. Page 1. lot wordy bouts between lawyers at Cal houn trial, l'age 3. Harmony among girl graduates caused by making own. communcomunt gowns, l'age 1. Immense task of New York Gas Company In paying rebates ordered by vouit. l'age 5. New York Italians pay tribute to late Con- " sul Cheney and wife at funeral. Page l. Rich pocket "of gold found in business dis trict of Los Angeles. Page 1. Great fire at St. J'aul destroys six large stores. Page S. Miners 'convention wrangles over charge Lewis played politics. Faga 4. Mports. Manager Brown, of Spokane team, has five catchers on sulary ljst. Page 1-. l'ai'itlu Northwest. Dr Peacock, of Cathlamet. shot and seri ously wounded by Mrs. Lungtalna. .Page 1. Oregon-Idaho Congress convenes In Repre sentative Hall at Salem. Page 7. Two miners killed In tiro damp explosion near Taeoma. Page 7. Wallowa County timber .sold for $700,000. lage i t.UIuni(,r.ai nn( Marine. Hops are strong hut slow in advancing. Page 17. Wheat closes firm and higher at Chicago. Page 17. ' Professional character of s'ock market. Page 17 Depleted ftorks of merchandise Indicate early resumption of. Industrial oper ations. Pago 17. Grain exports foreign for January will ex ceed million bushels. Page IB. Portland and Vicinity. Manufacturers elect officers and discuss legislation. l'age l.'l. Members of Executive Board find new de fects In. Kast Twenty-eighth street bridge. Page 10. C S. Van Auker loses $25."oo damage, suit on instructed verdict. l'age 10. Charter Hoard will leave water question to voters. l'age 10. Dr. S. t. Lapham. pastor of Second Bap tist Church, resigns. Page W. Dr. Brougher does not fear criticism In "What 'would Jesus do?" movemcnL. Tage 1. Anna J. Gardner alleges startling cruelty against husband Id divorce, fag U. MOTHER L