THE MORXIXG OEEGOmX, WEDXESDAT, MAT 5, 1909.
MERGER OF LIES
BLOW TO SERVICE
Facilities Suffered When Inter
ests Were Combined,
Say Shippers.
ROUTING WAS REARRANGED
Railroad Men Recall Conference
When They Were Told to End '
Hostilities Between O. R. &
PT. and Southern Pacific.
Evidence tending: to show that as re
sults of the Harriman merger competi
tion between the O. R. & N. and the
Southern Pacific ceased in 1901; that
Part of the time Bteamship rates had
been maintained by the Harriman In
terests by the use of subsidies; that the
hi-TU . Bteamship and river service
fJll teriora ted, and that routings of
ireignt and passengers had been
changed to give the greatest profits to
the system, was brought out in the
merger hearing in Portland yesterday.
The cessation of hostilities between
railway solicitors for th O. R. & N. and
Southern Pacific, according to three
witnesses, was the result of instruc
tions given in a meeting of traffic men
in Portland shortly following the for
mation of the merger.
These witnesses were: Thad T.
Sweek. formerly correspondence clerk
and contracting freight agent of the O.
R. & N.: Thomas McCuskcr, formerly of
the trafflo department of the Southern
Pacific, and W. W. Wilde, formerly chief
clerk in the Union Pacitic offices in San
Francisco.
The conference, according to these
witnesses, was called by Traffic Man
ager Ben Campbell, of the O. R. & N.,
whose authority in giving his instruc
tions was contained in a letter from
Traffic Director J. C. Stubbs to Mr.
Campbell. Mr. Wilde came to Portland
from San Francisco to attend this con
ference as representative of the general
agent there for the O. R. & N. and
Union Pacific.
Conference Ends Competition.
Prior to the time of this conference,
competition between solicitors for rail
road business was keen, according to
these witnesses. The Instructions from
Mr. Campbell, as understood by Mr.
Wilde, were that agents for the three
roads were to work more harmoniously
together. They were told that Atlantic
seaboard business was to move via the
Sunset route through Southern Califor
nia, El Paso and New Orleans, so far as
practicable. Traffic in general was to
move whichever way would be the most
profitable to the system. If the South
ern Pacific could make more money than
one of the other roads of the merger in
carrying a certain traffic, the Union
Pacific or O. R. & N, solicitors were
not to go after that business, but they
were not supposed to solicit business
for the Southern Pacific. Mr. Wilde
said he came to Portland without know
ing for what purpose the meeting had
been called.
The testimony of Mr. Sweek and Mr.
McCusker was practicaly along the
same line, but greater details were
gone into in the matter of division of
business. It was testified there was a
division of traffic destined for the At
lantic seaboard and that destined for
the territory west of the Atlantic sea
board, seaboard tone and north of the
Ohio River, the O. R. & N., Short Line
and Union Pacific getting the haul of
the latter to the Missouri River.
The agents were instructed not to
press this division or the Sunset rout
ing to the point of offending friendly
connecting lines at the Missouri River
terminals.
Subsidy to Steamer Line.
The story of the subsidizing of an In
dependent steamship company to induce
It to maintain rates was told by Fred P.
Fauragartner, until two months ago
gent in, Portland for the California &
Oregon Coast Steamship Company.
This subsidy was a guarantee of 100
tons of freight on each up trip from
San B'ranclsco for the independent ves
sels. The contract ceased, said Mr.
Haumgartner, in 1903, when one or the
other of the two companies, he could
not recall which, remembered that the
Klklns law was In existence. One of
the companies refused to sign the
agreement, and competition, he said,
had been unrestrained since then.
Mr. Baumgartner also told of the
method of the Harriman system of ac
cepting freight from competing steamship
lines. The independent boats of late have
been the only ones calling at Coos Bay
or EJureka, he said, and the O. R. & N.
will accept freight from those points from
the Independent lines and absorb the ad
vance freight charges. On freight from
San Francisco, however, where it has
rail connections via the Southern Pa
cific branch of the merger, the railroad
will not absorb the advance charges.
"The -result was to cut us out of busi
ness destined to Interior points from San
Krancisco," said Mr. Baumgartner. "We
liad to quit handling it unless the freight
was prepaid."
Steamer Competition Ends.
Testimony by. other witnesses also went
Into the steamship traffic history exten
sively. It was brought out by the Gov
ernment that until the time of the merger,
lumber-carrying steam schooners and the
Independent steamship lines operating be
tween Portland and San Francisco were
not factors in the passenger business.
nd that the O. R. & N. at times operated
as many as four vessels on the route
and for two years gave a provided three
day sailings. The present schedule for
the two vessels still known as O. R. & N.
boats Is every seven days.
W. W. Cotton, for the Harriman lines,
by cross-examination brought out the
fact that losses of steamships had been
sustained in recent years and that the
Independent lines were operating steam
shlrs of much better passenger and
freight facilities than at the time the
O. R. & K. maintained, its best steamship
service. The cross-examination was ap
parently in an effort to showthat the
merging of the O. R. & N. with the
Southern Pacific had not been the cause
of reduction in the service.
The river service was the subject of
some of the testimony, also. J. L. Harri
son, assistant superintendent for the Van
couver & Lewis River Transportation
Company, testified that prior to 1901 the
O. R- & N. maintained a steamer on the
Yamhill River but did not do so now.
Several witnesses with knowledge of
steamboat traffic on the Columbia, Wil
lamette, Oowllts and other streams, testi
fied as to the manner of routing freight
delivered by them in Portland, and
cross-examination brought out that there
had been no restrictions placed on routing
since the merger was forn-.ed.
Fruit Routing Changed.
John Olwell, a fruit shipper of Medford,
Or., testified that eince the merger, the
routing of fruit cars from his territory
had been changed but that he liked the
change. ,
Mr. Olwell said he had been handling
10 to 40 cars of fruit from his own
orchards and anywhere from 20 to 150
cars per season for other growers, de
pending on the season. Previous to the
merger, most of the Medford fruit had
moved via Sacramento and the Central
Pacific to Ogden. Now It all goes north
to Portland, thence east over the O. R.
& N., Short Una and Union Pacific.
Prior to the formation of the merger, he
said, freight solicitors for the Denver &
Rio Grande used to come into the valley
but did not do so any more. Mr. Olwell,
however, -said he had routed only a
few cars over the Denver & Rio Grande
and - did so only because the solicitors
were "good fellows," as he thought the
route not the best. He said he believed
the fruit shippers of his territory were
getting quicker and better service via
the Portland gateway and he had never
heard of any desire among his neighbors
for a reopening of the Sacramento route.
The fruit, he said, kept better if shipped
by a northern route. He also said there
had been no change ; In rates since 1901
and he thought the shippers in his locality
were very well satistied with the rates
on Eastern shipments. Mr. Olwell's testi
mony dealt with shipments of apples and
pears.
Tells of Earlier Conditions.
The testimony given by W. H. Hurlburt,
general passenger agent for the Union
Pacific for ten years prior to 1901, the
date of the merger, dealt largely with
competition in San Francisco and Port
land prior to the merger. It was neces
sary, he said, to route passengers from
Portland as far as Ogden over the South
ern Pacific. The latter road preferred
routing over the Sunset but the Ogden
route was the shorter, and got the busi
ness. The Southern Pacific supplied the
Union Pacific a full complement of tickets
which were placed on sale In the Union
Pacific offices. He said he did not regard
the O. R & N1. boats as competing with
the railroad for passenger business be
tween Portland and San Francisco, owing
to the lnfrequency of their sailings, while
the independent boats, during his term
of service for the company, were not Im
portant from a passenger standpoint.
It is planned to close the hearing so
far as Portland is concerned, tomorrow.
There are still 10 or 12 witnesses to ex
amine. From here the master in chan
cery, Sylvester G. Williams, will go to
San Francisco, where the hearing will be
resumed.
SPEAKS ON LAND REFORM
Wallace McCamant Lectures Under
Auspices of Irish League.
In his lecture last night before the
union mass meeting . of St. Francis,
Sacred Heart and St. Stephen's parishes,
in St. Stephen's Hall, East Taylor and
East Forty-fourth streets, on "Irish
Land Reform," Wallace McCamant gave
a comprehensive review of the land re
form movement In Ireland as Inaugurated
by the Irish patriot, Michael Davitt.
While the uoject is a dry historical one,
Mr. McCamant was able to impart a glow
of interest as he pictured the rapid ad
vancement th4 people of Ireland are
making under the land reform laws,
which enables them to acquire a title to
their homes, where they had been mere
tenants for many years.
The 'new land laws, r. McCamant
explained, enable the Irish people to ac
quire homes by the payment of little if
any more than their rent had been, and
under the operation of the law the gov
ernment had advanced large sums of
money to facilitate this acquisition of
homes. It was shown by the lecturer
that the home-loving Irish people were
making rapid progress as they became
homeowners, and, moreover, were becom
ing happy and contented citizens. For
all this, Mr. McCamant gave Michael
Davitt large credit.
The lecture was given under the aus
pices of the United Irish League. Music
was furnished by the Sc. Stephen's or
chestra, the Oregon Quartet and the
Sacred Heart Chorister Society. J. Hen
nessy Murphy presided.
MUST STAY IN PORTLAND
This Will Interest Those Who Have
No Pianos.
I brought four different sample styles
of our finest pianos to the Coast. I
wanted to establish an agency in San
Francisco. I showed these samples to
every dealer there. Everybody praised
them highly. No one found fault. But
conditions of trade have been and are
such in. California that no one was in
position to accept the representation
of our line pianos. Then, I shipped
these samples to Portland. I found
the same situation here. I don't want
to send these pianos back to the fac
tory. So I left them with out family's
old friends, the Messrs. Eilers. I told
them to sell these pianos at whole
sale, or even less, rather than have me
pay freight back. I can't publish prices.
That would hurt the future sale and
representation of our instruments, but
I am willing to take cost and less
than cost. They are good pianos. They
will please any teacher, any cultured
musician. Numerous pianos bearing my
father's name and sold here maybe a
dozen years ago, are used every day
in some of Portland's finest homes.
We will sell these pianos on time If
responsible buyers are not prepared to
pay all cash. Ask for me or Mr. Reed, at
Eilers Piano House, 853-355 Washing
ton street. Wm. T. Brinkerhoff.
EXPANSION SALE.
This Is no . ordinary spectacul
flushing the people sale. We feel in
duty bound to make some compensa
tion to our customers during the alter
ations. We have marked the entire
stock at special prices, in some cases
at less than wholesale, and in plain
figures. We Invite an inspection of the
stock and prices. McAllen-McDonnell,
Popular Dry Goods Store, cor. 3d and
Morrison. See the Millinery and New
Sample Suits.
LATEST SHEET MUSIC
5, 10 and IK Cents.
Popular, classical and folios. The E. P.
Charlton & Co., 288-290 Washington St.
The number of automobiles in England
has doubled In three years.
Post
Toasties
Appeal to Good. Bad and In
different Appetites morning,
noon and night.
The T&ste Lingers"
Sold by Grocers.
MEASURES
CONFRONT VOTER
Long List of Titles Will Be on
Ballots in the June
Election.
TAKE TIME TO CONSIDER
Average Citizen Will Be Detained for
a While in Reading Through 2 7
Summaries of Proposed
Charter Changes.
Ballot titles for 27 different meas
ures to be voted on in the June elec
tion have been prepared by the Gity
Attorney, filed In the office of the City
Auditor for the required five days, and
are now in the hands of the printer.
These ballot titles do not include
those of several initiative measures, the
petitions for which have not yet been
accepted by the Auditor. The excise
board petition, the Gothenburg petition.
Market-street bridge petition, munici
pal light plant petition and the Sherman-street
bridge petition are still
withheld pending the completion of tha
checking or action by the courts.
The ballot title prepared for the pro
posed general revision of the charter
will head the list of measures, and will
read as follows:
An act to amend and generally revise the
city charter submitted by a committee of
15 citizens, vesting all legislative power in
a Mayor and Council of six members, dis
tributing all executive business among six
bureaus with one Councilman at the head
of each bureau, abolishing political parties
In municipal elections, fixing the salaries
of all elective officers, amending the charter
provisions of the charter relating to local
improvements and assessments, and to the
grant and regulation of franchises and other
provisions.
Two alternative amendments to sec
tion 227 of the charter are submitted
following the general revision title.
The first amendment provides that the
cost of water mains shall be paid by
the property benefited, and the second
provides that the payment of such costs
shall be out of the water fund.
Other Charter Changes.
The amendments to the charter pro
posed by the committee of even ap
pear in the ballot order in the follow
ing manner:
An act to amend Section 57 of the Char
ter of the City of Portland providing that
city official advertising snail be let only
to a daily newspaper in the City of Port
land which shall have been published con
tinuously for a period . of one year next
prior to the date of the bid.
An act to amend subdivision 28, 34 and 5
of Section 7 of the Charter of the City
of Portland, authjrizing the Council to
regulate electric wiring ; to create the of
fice and define the duties of electrical in
spector; to create the office and defining the
duties of purchasing agent ; and to adopt
and enforce the use of life-saving devices
for the protection of human life.
An act to amend Section 9d of the Char
ter of the City of Portland, requiring the
holders of f ranchiees granted under former
charters of said city to keoo certain books
of account and file reports with the Auditor
of the City of Portland.
An act to amend Section 190 of the Char
ter of the City of Portland, providing for
a woman's auxiliary to the Police Depart
ment of said city.
An act to amend Section 202 of the Char
ter of the City of Portland, providing that
the City Treasurer, upon the direction of
the City Council, may purchase bonded
warrants of said city with money from
any idle fund and hold such bonded war
rants as cash.
An act to amend Section 293 of the Char
ter of the City of Portland, as amended,
authorizing any bank: in the City of Port
land with a paid-up capital stcck of $50 GOO
to file an application for the deposit of a
portion of the city funds; prohibiting stand
ing funds from being deposited on time
certificates of deposit- authorizing the re
ceipt of Port of Portland bonds or School
District No. 1. Oregon, bonds as security
for such deposit.
An act to amend the Charter of the City
of Portland by inserting therein a new
section, to be known as Section 293a of
said charter, authorizing the Treasurer, up
on approval of the Council and under cer
tain conditions, to deposit surplus funds
In banks upon open account, upon receiv
ing from such bank indemnity bonds Is
sued by surety companies authorized to do
business In the State of Oregon In cne and
one-half times the amount so deposited.
Civil Service Amendments.
Ar act to amend Section 306 of the
Charter of the City of Portland by ex
cluding from the operation o2 the civil
service regulations the chief deputy city
engineer, the building Inspector and the
purchasing agent.
An act to amend Section SIT of the
Charter of the Citv of Portland, providing
that any employe In the classified civil
service may be discharged for cause, other
than political or religious reasons, or where
COMMERCIAL
CHECK ACCOUNTS unre
stricted. SAVINGS ACCOUNTS, $1
and up interest bearing.
TIME CERTIFICATES
interest bearing.
TRAVELERS' CHECKS
available the world over.
FOREIGN LETTERS OF
CREDIT likewise avail
able. .' .
COLLECTIONS made on all
available points.
We solicit your banking
business.
In Our "New Quarters
at Sixth and "Washing
ton Streets With Un
excelled Equipment
After July 1.
MERCHANTS
SAVINGS & TRUST
COMPANY
247 Washington St. .
the discharge was not made In good faith
for the purpose of improving the publlo
service and that in case of discharge the
burden of proof shall be upon the dis
charged employe.
An act to amend Section 331 of the
charter of the City of Portland, as amended
authorizing the Municipal Judge to appoint
one deputy clerk of the Municipal Court,
at a salary not to exceed $100 per month.
An act to amend Section 349 of the
charter of the City of Portland providing
that the Auditor shall act as clerk of the
viewers and prepare their reports in all
proceedings for the establishment, laying
out, opening, widening or change of any
street.
An act to amend Section 358 of the
charter of the City of Portland requiring the
Auditor to withhold the delivery of any
warrant for damages on account of tbe
opening or widening of a street until the
person in whose favor the warrant 1b drawn
fthall exhibit proof that there are no prior
liens on the land appropriated.
An act to asund Section 364 of the
charter of the City of Portland providing
that when streets or public places are va
cated for the purpose of rededicatlon the
petitioners shall first present assurances of
rededlcation.
An act to amend Section 378 of the
Charter of the City of Portland providing
that when the Council shall provide for
making a street improvement the city shall
be deemed to have appropriated the earth
above grade and within the street lines for
eaid improvement.
An act to amend the charter of the
City of Portland by inserting therein a new
section to be known as section 383-a pro
viding for the bonding of assessments for
the improvement of streets and for the lay
ing of sewers.
An act to amend Section 407 of the
charter of the City of Portland increasing
the rate of interest to be charged on de
linquent special assessments from the legal
rate to the rate of 10 per cent per annum.
An act to amend Section 421 of the
charter of the City of Portland providing
that the acceptance by the city of any
local improvement be conclusive evidence
that the same is done according to plans,
specifications and ordinances of the city ;
that warrants issued in payment for such
work shall be valid obligations of the city,
and that the statute of limitations shall not
apply to such warrants or to any special
assessments levied by the city.
May Abolish Water Board.
An act to abolish the Water Board, Park
Hoard and Health Board by consolidating
the same with the Executive Board; to
make the principal and interest of un
issued $3,000,000 water bonds and the cost
of laying -water mains payable out of the
water fund instead of by general or local
assessment, by amending section 166 of the
charter and articles 4, 5 and 6 of chapter
4 of the charter.
An amendment to Section 22T of the
charter of the City of Portland, as amended,
authorizing the issuance of municipal
bonds to provide for the construction of
general distribution water mains lO inches
In size, or over.
An act to amend section 803 of the charter
of the City of Portland, providing that the
salary of the City Engineer shall be fixed
by the Council upon the recommendation
of the executive Board and shall be not
less than $2400 per annum.
An act to amend section 289 of the char
ter of the City of Portland, providing that
the salary of the Treasurer of the City of
Portland shall be fixed by the Council and
shall not ts less than $2400 per annum.
An act to amend section 340 of the char
ter of the City of Portland, providing that
the salary of the City Attorney shall be
fixed by the Council and shall not be less
than $2400 per annum.
One hundred and fifty thousand dollars
of crematory bonds to be authorized for tho
i ELMBURST
The sale of lots nearby at from three to
five times the prices asked by us, is stimulat
ing sales in Elmhurst. Only a few lots left.
All will be gone in a few days. Restricted dis
trict. All improvements. Close in. Prices
low. Easy terms. Make your selection in Elm
hurst today. We will show you by automobile.
i t
American Trust Co.
200 CHAMBER OF COMMERCE
Main 3143; A 1312
acquisition. Installation, Improvement and
repair of Incinerating plants and their
necessary accessories, for the destruction of
garbage in the City of Portland, by an
amendment to art i eta 8, chapter 7, of the
charter of the City of Portland, by Insert
ing therein a new section to be known as
section 425.
Two million dollars bridge bonds to be
authorized to construct a high bridge across
"Willamette River, from Broadway and Lar
rabee streets on the EaBt Side, following
the line of Broadway street extended west
erly in Its present course to a point at or
near its intersection with Seventh street on
the West Side, by an amendment to article
6, chapter 8 of the charter of the City of
Portland, by inserting therein a new sec
tion to be known as section 118.
All of the above titles will appear on
the oficial ballot, followed by places
where the voter may cast his vote "yes"
or "no." It is said that danger of de
feat exists as to all the proposed meas
ures for the reason that many voters,
when they see what confronts them in
the way of reading matter before they
can hope to know what they are voting
for will say, "I'll just vote against
them all on general principles." This,
it is said, is the tendency in such cases.
It will require more than 15 minutes
for a good reader to peruse and com
prehend the foregoing ballot titles.
ALL SELL WELL.
Every suit In our entire collection Is
meeting with unstinted favor every
body says: There Isn't a homely one
In the entire line. $15. and $26. J. L.
Bowman & Co., 5th and Alder.
SHORT ROUTETO ST. PAUL
The new Soo-Spokane-Portland line Is
the short route to the Twin Cities.
Try Its service de Luxe. The finest
transcontinental trains now In use.
Mass Meeting at St. John.
There will be a mass meeting tonight
at the First BajStist Church of St. John
under the auspices of the Civic Federa
tion Society. There will be a good pro
gramme of addresses. Interspersed with
music. A cordial Invitation is extended
to all.
Rockaway Beach lots $20 $5 down,
$5 per month, no interest. C. J. Owen &
Co., 414 Lumber Exchange.
Free rent for the Summer to lot buy
ers at Gregory Heights. It's money to
you. See ad on page ll.
EIGHED AMD FOUND
C ii f . u
. Suppose you were
placed on an island upon
which there were just two
houses, belonging to two
men, one of which was
offered for sale at $20 a
month for six years, and
the other was offered for
rent for $20 a month for
life, which house would
you take?
One doesn't need a col
lege education to answer
that question, . and yet
many who have college
educations don't answer
it as well as a little child
could. "Why? Don't ask me. I don't know why people prefer to throw money
away rather than invest it in a home where they get the dividends every day they
live. And yet, we are converting many of them. It is slow and expensive work,
but it is bringing them in. JMany of Portland's best citizens, active, energetic,
ambitious people, who have grown tired of the landlord's lash and. his over
bearing methods, have bought lots and are building homes in GREGORY
HEIGHTS. Some of them are camping right on the ground, watching and
waiting as their homes rise from the ground, and they are saving rent every day.
Come out. Take a look at this splendid tract, and view the mountains, the
river and the city. Inspect it on every side, and see if you can find such another
proposition for the man who pays rent. See if you can find another as new
tract in the city with as many homes, actually in course of construction.
There's a reason.
Ask about our FREE RENT OFFER to lot buyers. It's jnoney in your
pocket. ' , '
Take East Ankeny-Rose City Park car to end of line, and don't be misled,
but see a GREGORY
HEIGHTS salesman. We GREGORY HEIGHTS BSP
won't say all others are the Best Place lltejUMf
imitations, but some are. for a Home. iNVIiSTnENTlcd.S1
LAND
OPENING
AT
GOODING IN SOUTHERN IDAHO
THE GOLDEN OPPORTUNITY OF SECURING A
HOME of 5, 10 or 20 acres, where all kinds of fruit can
be grown to perfection, such as apples, pears, plums,
peaches and all small fruits and berries.
1200 acres of the Home Ranch of Ex-Gov. Gooding,
adjoining the Townsite of Gooding, on the Main Line of
the Oregon Short Line and the junction of the Idaho"
Southern, which serves the great Twin Falls North Side
Tract, will be offered for sale to Home-Makers only.
UNDER CAREY ACT RULES ON MONDAY, MAY
17, 1909
This land will be sold on easy terms to the man who
will improve it and build a home. Not a single tract of
this land will be sold to the speculator, but only to the
man who is willing to enter into a contract to cultivate it
and build a home thereon within a year, and not mora
than 20 acres will be sold to any one person.
These tracts will be sold at prices ranging from $360
per acre for those adjoining the townsite to $200 per acre
for those more remote. None of this land is more than
one-half mile from the Idaho Southern Railroad, now
being operated, and which will soon be turned into an
electric line.
A large portion of this ranch has been in alfalfa for
the past 10, 15 and 20 years and is now in cultivation to
sugar beets, alfalfa and grain.
FIRST-CLASS WATER RIGHT WITH EACH TRACT
Easy terms will be given, one-fifth cash at time of
purchase and balance in ten annual payments, with inter
est at rate of 6 per cent.
DEPOSIT REQUIRED
A deposit of $100 must be made with the Gooding
Townsite Company before noon of the 17th of May by
those desiring to participate in this drawing. If no selec
tion is made money will be refunded.
CHAS. T. MANNING REALTY CO.
LIMITED
GENERAL SALES AGENTS
GOODING TOWNSITE CO., LTD.
GOODING, IDAHO.
PRINCE RUPERT, B. C.
The Government of British Columbia and the Grand
Trunk Pacific Railway, joint owners of Prince Rupert,
will offer for sale by public auction at Vancouver, Brit
ish Columbia, on May 25 to 29, between 2000 and 2400
lots, selected from different portions of the city.
The terms of sale are one-quarter cash, balance
one, two and three years at six per cent interest.
Prince Rupert is the terminus of a mighty trans
continental railway system in what is destined to be
one of the greatest traffic routes in the world.
Prince Rupert will command the trade of Alaska,
the Yukon and the North. It will be the commercial
outlet for the rapidly developing interior of British
Columbia. It is the center of a great fishing and lum
bering business. It is the coming city of the great
North.
For maps and all further particulars, write
C. D. RAND,
Agent for Government and Railway,
Vancouver, B. C.