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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Oct. 6, 1909)
THE MORNING OREGONIAN, WEDNESDAY, OCTOBER 6, 1909.
Walsh deposited the securities of his va
OFFICERS OF NATIONAL WOMAN'S CHRISTIAN TEMPERANCE
UNION WHICH WILL SOON HOLD CONVENTION.
S HOPE IN
TJSFT MAKES T
For two years, it was charged. Walsh
Ignored the demands of .the Controller
of the Currency that he place his banks
on a firm foundation, and when the crash
came It was discovered that 66 per cent
pf the securities h'eld were those of Walsh
properties. Of the K5.00O.00O deposits. J16.
000.000 was represented by the paper and
securities of the Walsh enterprises. '
'Merchandise of Merit Only'
OF CITIES ON BAY
Preaches Doctrine of Compro
mise as Necessary in
BANQUETS WITH 600 MEN
Visits Berkeley, Oakland and San
Francisco, Lajs Cornerstone of
Y M. C. A. Iiuihling and Is
Greeted by mind.
(Continued Frtm Firm race.)
iff t r" 4:
works hard when he has the task of lay
Ins a cornerstone, and today's ceremony
was no exception to the rule. With sil
ver trowel he spread for fully five min
utes before the tig block of granite was
lowered into Its place.
Later In the day the President was the
truest of honor at a reception at the
Union . League Club. Tonight he was
tendered a banquet t the Hotel Fair
mont by more than 6"0 residents of San
Francisco and later he was entertained
at the Press Club. The President re
tired at midnight at the St. Francis Ho
tel and will leave at 8 o'clock tomorrow
morning for the Tosemlte VallCy.
Crossing the Bay today, the President s
flag flying from the Golden Gate, was
saluted by the old frigate Pensacola. the
station ship of the naval training station
on Goat Island: by the cruder St. Louis,
which lay gray and grim In the path
way of the President, and by the revenue
cutter McCullough. During his stay In
Berkeley tha President stole a half hour
away from the entertaining committee
and Tlalted hist cousin, Mrs. Charles T.
Rerlews Blind Students.
One of th. most pathetic Incidents of
the PresldenTa trip marked his stay In
Berkeley. He passed In review the pu
pils of an institution for the deaf, dumb
and blind. The. tribute of flags wnyed
with nneeetrg eyes, of ilent nods of the
dumb and cheera from the blind deeply
The President saw San Francisco today
for the first time since the earthquake
and flr. of . He felt a deep Interest
in the city because, as he waa Secretary
of "War at the time of the disaster, he
had a great deal to do with the plans
for relief of the stricken people of San
Francisco. Mr. Taft marveled at the
growth, of the city and in his address at
tha T M. C. A. expressesd the hope that
the corning generation would prove aa
mergrtlo, aoptimtejtlc and altogetner
aa enthusiastic a people aa those who
have rehabilitated the city.
Xn hia speech at the banquet tonight
the President reiterated his views on the
subject of a merchant marine and
aroused great enthusiasm by his declara
tion that he would urge the passage of
a ship subsidy law aa one of the prin
cipal subjects in his forthcoming mes
sage to Congress. Mr. Taft asserted
that the country was ready for an ex
periment in the way of a subsidy. The
extension of Pacific trade- is one of -the
objects of his Administration. Mr. Taft
said, and he added that he knew of no
more important topic to which Congress
can devote itself.
In his speech at Berkeley today the
"It is a great pleasure for me to be
here and to be received by Professor
Moses, my old comrade I had almost
said "in arms.1 but we did not carry
muskets in the Philippines but my old
comrade in attempting to Initiate legisla
tion and to rloneer in the far-distant is
lands of the Pacific. It Is a great pleas
ure to be here in this unique theater and
talk to a body of people who represent
the high aspirations of a commonwealth.
Professor Moses has alluded to the fact
that we are veering around to the
scientists, whether it be In politics, in
agriculture he did not mention theology,
hut it Is a fact that the universities of
the land and especially such a one as
this, placed so centrally and embracing
so large a student body, seem to figure
more and more with their influence upon
ine science or gutrnnieni.
Business of government.
"The business of Government Is not an
easy one when you are in it. It has a
somewhat different aspect when you are
engaged in pulling the throttle or put
ting on the brake from that which it has
from the professor's chair or the edi
torial sanctum. There are obstacles and
friction and difficulties that it is not pos
sible always to explain, but the exlst
" ence of which one who Is in the midst
of It can affirm with great emphasis,
and it is those obstacles and difficulties
and friction that are not always appre
ciated by the critics who do not have the
"None the less, the high standard set
by those critics is of the utmost use in
lifting up government and lifting up a
people. As the resultant of feeling, an
inspiration for higher things and being
compelled either to modify or qualify
your Ideals in practical results is after
"I like to affrm that I am an optimist,
and an optimist with respect to popular
government. If I were not. I should not
enjoy being In the business of govern
ment: but in that progress we sometimes
have to give way in our theories to the
views of the general public shown In the
votes at the polls, and not Infrequently
years after we have to admit that on
the whole the resultant which is reached
by reconciling and compromising all the
views of differing people Is better than
if we followed with the theory of any
Compromise Is Necessary.
"Popular government is 'justified and
vindicated on the theory that every class
and by that I mean those who In re
spect to a community are simllary situ
ated and affected by the aame circum
stances is better able in the long run to
know what Its interests are and to look
after those Interests than the members
of any other class, however altruistic that
other qjass may be; and. tha,t being the
foundation of popular government and it
being impossible therefore that any one
class shall give out laws for all, the
necessary result of our government is
compromise, and he is a good citizen who
recognizes that necessary result, and who
when his opinion is -not followed out as
he would like to have it. becomes what I
remember your own distinguished pro
fessor lectured upon In the University
when I was here.
"He must make himself a good loser.
He must play the game. He Is In popu
lar government and he has to take what
the popular government Olives him. By
his influence with the people who control,
he can lead them in the direction which
he would, and If they do not go in that
direction, then he has to play ball with
them and follow them."
The President then referred to his asso
ciation with the University of California.
- which the members of the first Philippine
Commission visited on their way to the
Eastern archipelago. x
"We worked along on the Philippine
problem," said Mr. Taft, "and I think
Bankwrecker Goes to Prison
Unless High Tribunal Re
AfTVVV-S 7 rA-. rfV J" l"""
NEW YORK. Oct. 5. (Special.)
The annual convention of the National
Woman's Christian Temperance Union
will be held in Omaha. October 22-27.
Mrs. L. M. N. Stevens, president-of the
organization, will preside. Frances P.
Parks, the National secretary, and
-Elizabeth r. Hutchinson. National treas
urer, will make reports. This will bt
one of the lost Interesting of th
association's conventions since it wa.
founded in 1S74. because of the work
for prohibition carried on successful
in the last vear. The organization now
has about 10.000 local unions, with a
membt-rship and following of 500.000.
we have achieved considerable progress.
Wo at least in the 10 year- have brought I
about Justice to those islands in the mat
ter of free trade between the United
States and those gims of the Pacific. I
"I vcan well remember the fog, for In
spite of the bright sunlight of that day: j
It was a fog that we were looking into ;
r . . i ..!... nnt ti r, A tnrnpd f
as we leil ine uin'im vice ...... . j ft. ;
the prow of our vessel toward, the Phil
innin,, TV HiH nnt know what It was B ,
we were to meet. The future was as dark
and obscure as possible, and If any man
would have said that that trip would
land jne in the Presidency of the United
States. I should have felt like chanacter
lxlng him either as a falsifier or as a man
without sense. ' I1 ' '
"But that is It. Tou can never tell
what the future is going to bring about.
It seemed a long way around to the White
House to go out 10.000 miles into the
tropics, but that is where it landed me;
and as I started from Berkeley, it de
lights me. now that' I have reached that
goal If it can be considered a goal, for
I was not wandering in that direction
Golden Cup Given Taft.
At the banquet which was given in his
honor tonight at the Fairmont Hotel by
more than 600 citizens, representative of
all the varied Interests of this city, the
President was presented with a goblet
of pure gold. The city paid a similar
tribute to Presidents McKinley and
Roosevelt on the occasion of their visits
here. In presenting the cup to Mr. Taft.
Charles S. Wheeler, who had been
chosen for the honor, declared to Mr.
"Gold as this cup is. it Is more golden
with high respect for you and Is filled to
the brim with the warm love and deep
affection of the people of San Francisco.
Mr. Taft. in taking the gift, paid a
high tribute to the people of this city.
The president detailed again his plan for
the government of Alaska by a commis
sion. Mr. Taft said that Alaska had-not
yet reached the time when self-government
would be best and safest for it.
Home Rule Not Always Best.
"It Is easv," he said, "to catch the ap
plause of the crowd by saying that we
are bound to self-government and that
it is the best possible government. But
there are times and conditions when it
Is not best, and- at such times we ought
to say so."
The President got a cheer when tie
stated that the Panama Canal would be
finished by January 1, 1915. and he ex
pressed the hope that the Job might be
done before that time. The President
declared that the history of the world
during the next 50 years lies in the , Pa
cific and that America must do some
thing to secure the growing trade of the
In urging a merchant marine, the pres
ident said he was not afraid to call a
subsidv a subsidy. He said it was not
putting money in any one's pockets, but
was merelv enabling American shipping
Interests to compete with foreign nations
and to earn only a fair profit.
TAFT TELLS CITIES TO VXITE
President Advises Oakland, Berkeley
and Alameda to Join.
OAKLAND. Cal.. Oct. 5. President Taft
made a rough-riding dash through Ala
meda Countv today. He made two short
addresses, the first in the. Greek Theater
at the University of California. Berkeley,
and the second on the shores of Lake
Merritt in this city.
The peopleof both cities made the
most of the brief time allotted to them.
The President rode in a streetcar,
an automobile and a carriage during the
trip from Berkeley to Oakland, and
finally boarded the revenue cutter Golden
Gate for the trip across the bay to San
Francisco, eating luncheon as the Gov
ernment vessel steamed toward the trans
port dock on the peninsula side.
The only unusual incident of the fore
noon occurred just after Mr. Taft had
been introduced to the huge crowd at
Lake Merritt. A grandstand had been
erected for the occasion and to the right
of the stand stood several large willow
trees, which had been seized upon by a
hundred boys as points of vantage.
As the President rose to speak a- large
branch broke, precipitating a number of
the boys to the ground. The youngsters
fell upon the densely packed crowd, and,
fearing that someone had been injured,
the President paused.
"Is anyone hurt?" he shouted.
. When quiet was restored, he remarked
that the Lord always took care 'of
"drunken men, boys and the United
In his brief address Mr. Taft urged the
consolidation of Oakland. Berkeley and
Alameda and concluded with a review of
his policy regarding river and harbor
..... . . 75
kit - -. -f Ai
FINCH'S HOPES DASHED
SUPREME COURT REFUSES TO
GIVE HIM REHEARING.
Application for "Reopening of Harry
Ialey Case Is Denied and Mur
' derer Must Hang.
SALEM. Or.. Oct. 5. (Special.) The
Supreme Court today denied petitions for
i 1 in ,h, r-a nf Jumps A. Finch
and Harry Daley, and as a result the
r , . i ...ill In hanir
aerenaanis unuuuuwuij .
for the crimes with which they are re
In the Finch case, the decision of the
court was unanimous, and the order
denying the rehearing was -oral. The man
date in this case, directing the trial court
to proceed with the matter in conformity
with the verdict of the Jury, has already
been sent down. ,
The Daley case was appealed on the sole
ground that the lower court erred In
not Instructing, the Jury as to what dis
position would be made of the defendant
in case he was found guilty on the
ground of insanity. The claim was set
up that the jury should have known that
the defendant, if found not guilty be
cause of -Insanity, would not be turned
loose upon the public, but would be con
fined in a lunatic asylum until cured.
In the opinion of the Appellate Court,
written by Chief Justice Moore, the. point
relied upon had Ayeen previously over
ruled by the Oregon court. Justice King
dissents, holding that the Jury as In
structed received but part of the law.
that unless the Jury Is fully enlightened,
the defense of insanity is practically
eliminated. The dissenting opinion con
"I am of the opinion that the Constitu
tion Intended that the Jury should be suf
ficiently apprised of every phase of the
law governing the case as would enable
them to fully determine the course they
should pursue under the evidence ad
duced at the trial. Thia was not done
in this case."
The mandate has already been sent
MINNEAPOLIS .& ST. PAULi TO
CHINESE STATESMAN DIES
Chang Chin Tung, Grand Councillor,
Passes in Pekin.
PEKIN, Oct. 5. Chang Chlh Tung.
Grand Councilor of China, died at 9:45
o'clock last night.
Chang Chlh Tung, who was one of
the three members of the Grand Coun
cil of China, .had been in the govern
ment service virtually all his life. He
was formerly Viceroy of Shang Si.a, and
was made a Grand Councilor in 1907.
He was Director-General of the Han-kow-Sze
Chuen Railroad and took a
prominent part in the negotiations con
cerning the loan to China, by foreign
interests, of J3O.a30.0O). for the construc
tion of that line. His anti-foreign ten
dency appeared during these negotia
tions. An unsuccessful attempt was made to
assassinate Chang Chlh Tung last May,
and in July of this year he was strick
en with paralysis.
Great Activity Under Hawley's Man
agement Shows Ambition
to Build On.
MINNEAPOLIS. Minn, Oct. 5. (Spe
cial.) Indications of a substantial
kind point to" the building of a fourth
transcontinental line from the Twin
Cities to the Pacific Coast in the near
future. This new Coast line will be
an extension of the Minneapolis &
V ord comes from Lebeau, S. D., the
present Western terminus, that E. D.
Sloan, locating engineer, has been
ordered to proceed at once with a sur-.
vey across the Cheyenne Reservation
to the Montana line. While the Minne
apolis & St. Louis officials here will
not discuss the matter, it is believed
in well-informed circles that this evi
dences an intention on the part of the
Hawley Interests to build through to
There had been great activity all
along the Minneapolis & St. Louis since
the new management took charge.
Both Edwin Hawley, chairman of the
board of directors, and J. P. Shonts,
president of the road, are known as
aggressive railroad builders. Mr.
Hawley how controls the Chesapeake
& Ohio, Chicago, Cincinnati & St. Louis,
Iowa Central' and Minneapolis & St.
Louis. Thus he rules a system extend
ing from the Atlantic to Western
South Dakota, and it Is onfy natural
that he should seek to extend this sys
tem acrofs the continent.
As one official of the Minneapolis &
St. Louis stated recently, Mr. Hawley
seems destined to Inherit Harriman's
mantle, judging from his present activities.
Gerllnger Child Dies.
John H. Gerllnger. the infant child of
Mr. and Mrs. George T. Gerllnger, of 472
Holladay avenue, died suddenly at Sea
side yesterday, of Summer , complaint.
The body was brought to Portland last
night and funeral services will be held
at Trinity Church chapel, lth and
Everett streets at 2:30 o'clock this afternoon.
Hutchinson Is Moderator.
SEATTLE. Oct. 5. Dr. A. L. " Hutchinson.-
pastor of the Emanuel Presbyterian
Church of Tacoma. Wash., was elected
moderator of the synod of Washington
of the Presbyterian Church tonight.
SENTENCE OF FIVE YEARS
Story of Financier's Life One of In
teresting Chapters in History
of America's Captains
CHICAGO, Oct. 5. The verdict of the
trial court, which found John R."Valsh
guilty of misapplication of the funds of
the Chicago National Bank, was affirmed
by the United States Circuit Court of Ap
peals here today.
The rise and fall of the fortunes of John
tj Walsh, who is now i2 years, ot age.
form an interesting chapter in the history
of Americans- who have risen from ob
scuritj' to power. .
Mr. Walsn musi serve iuc :.
five years' imprisonment imposed upon
him by the trial Jury, save In the event
that the Supreme Court upsets the affir
mation of the verdict of guilty handed
Counsel for 'Mr. Walsh. In their appeal,
laid stress on what they alleged was a
lack of criminal intent on ine pin
defendant. In the very lengthy applica
tion which they filed, much law was
quoted to show that the convicted banker
had used the funds of the bank in what
he considered a'legitimate manner.
The opinion of the Court Of Appeals,
written by Judge Humphrey, and handea
down by Judge Grosscup. Is brief and
confined almost wholly to the question of
criminal intent. As to the substance of
the matter charged In the various counts,
says the opinion, "The verdict will not
be disturbed. If the gravamen of tho
charge in each count on which tntre has
been a verdict of guilty, is the same,
there is a consistency in the verdict."
In the Instructions given the Jury by
Judge Anderson in the lower court, tho
higher tribunal finds no error.
At Liberty rending Appeal.
Counsel for Mr. Walsh have 30 days
in which to file application for a re
hearing by the Court of Appeals. Mean
while he will be at liberty under ills
present bonds of $50,000.
The three Walsh banks, the Chicago
National, the- Equitable Trust Company
and the Home Savings Bank, were closed
by the Controller of the Currency on
December 18, 1905, nearly four years ago.
At that time Walsh not only owned these
Institutions and the Chicago Chronicle,
but owned all or nearly all of the stock
of the following companies:
The Acme Gas Company, the Bedford
Belt Railway Compans the Bedford
Quarries Company, the Chicaso Southern
Railway Company! the Chicago Wharfing
& Storage Company, the Indiana Southern
Coal Company, the Illinois Southern Rail
way Company, the Lake Michigan Car
Ferry Transportation Company, the Mount
Olive & Stanton Coal Company, the Ohio
Quarries Company, of Ohio; the Ohio
Quarries Company, of Illinois; the South
ern Indiana Coal Company, the Southern
Indiana Railway Company, the Southern
Missouri Railway Company, and the Wis
consin & Michigan Railway Company.
Buys Bankrupt Concerns.
According to the brief of the Govern
ment on the appeal all of these companies
were bankrupt or on the verge of It,
when bought by Walsh for little or noth
ing. Their securities were unmarketable
and virtually worthless. Then, it is al
leged, Walsh formed corporations to buy
these companies from himself, taking in
payment stock of the new corporations
and enough of their bonds to repay lym
self af their face value for the sums he
actually paid for them. In this way, ac
cording to the prosecution, he obtained
for nothing stocks and bonds to the face
value of 30,000,000. -
Walsh dreamed a great dream of a rail
way system" to be pieced together from
his scattered purchases which would reach
from the Mississippi to the Ohio through
Illinois, Indiana. Wisconsin and Michigan,
to Duluth and Superior. The quarries and
coal mines were to furnish much of the
To obtain funds, Walsh had recourse to
his banks. In covering up these loans, it
is alleged, he used memorandum notes
signed with the names of clerks who were
not consulted in the matter. There was
nothing on the books to show that Walsh
had received the loans. Even Fred Blount,
the vice-president, is said to have been
liinorant on the subject. For collateral
9 Yntrs in Portland and
practice In the Paeifii
id the largest I
c North. west.
Your Eyes Deserve the Best
One charge covers entire coat of examin
ation, glasses, frames.
Second Floor Suite 209
SAY. LOOK HERE
Dr. A. L. Moorfield is in Portland, to
be with us one day, Oct. 6th, and would
be glad to seo everyone -that can come
and see him. Consultation free.
Dr. Moorfield. the Inventor of the
Mineral Steam Bath Tub, and award
ed the International diploma and gold
medal of the world at St. Louis. Ex
position. MOORFIELD BATH PARLORS, ,
2S5 Salmon St
BANQUET GIVEN M. E. STONE
Farewell by Publishers When He
Starts to Tour World.
XEW YORK, Oct. 5. As a tribute of
thelr affection and regard on the occa
sion jf his departure on a trip around
the world, .friends of Melville B. Stone,
general manager of the Associated Press,
gave, him a dinner tonight at the Lotus
Club. Of the Invited guests and sub
scrib?rs to the dinner there were 130 pres
ent. Frank B. Conover. chairman of the
committee' having the dinner in charge,
presided until cigars were reached, when
he requested Henry D.'Estabrook to act
Messages of regret were read from An
drew Carnegie, Mark Twain. Dr. Nicholas
Murray Butler, Colonel Harvey. Frank
Lawrence, James Speyer and Colonel J.
Hemphill. An original poem of tribute
was read by Francis D. Carley.
The speakers included Frank B. Noyes,
president of the Associated Press; Judge
Klbert H. Gary, John C. Spooner, former
Senator from Wisconsin: J. Hartley
Manners, the dramatist: Bourke Cockran,
Victor Lawson. and Myron T. Herrick,
former Governor of Ohio.
Mr. Conover presented Mr. Stone with
a shield taken from one of the d?s'gns of
the fifteenth century. It is of.cast bronze
about sixteen inches wide by twenty-one
inches high, with ornamentation appro
priate to the period. In the center is a
bas-relief of Mr. Stone surrounded by
exact reproductions In gold and enamel
of the foreign decorations that have been
bestowed upon him by France. Germany,
Italy, Russia, Sweden and Japan. The
whole is surmounted by an American
eaele. The coloring Is burnished gold.
rich and dull, giving a look of age and
FLEET OFF TO PHILIPPINES
Some of Crews Stow Away and Will
Be Caught on Return.
HONOLULU. Oct. ' 5. The armored
cruisers of the Pacific fleet, headed by
the Tennessee, flagship of Rear-Admiral
Sebree, started 'this afternoon on their
cruise to the Philippines. A few strag
glers belonging to various crews have
been left behind, and it is believed that
several stowaways were aboard the
steamer Lurine, which sailed today for
San Francisco. A wireless message has
been sent to the Lurline, ordering their
arrest and delivery to the naval authori
ties at that. city.
Several of the departing officers. In
interviews published here, say that the
men made a record for good conduct
while in Hawaii. Although no less than
7000 sailors and marines were given shore
leave during the month's stay of the
fleet, the only unpleasant incident that
occurred was on Sunday. September 26,
when a local brewery sold great quanti
ties of beer in violation of municipal reg
ulations and the men are not held 're
sponsible for the disturbances of that
France Expects Fair Tariff.
PARIS, Oct. 5. A more Optimistic
feeling prevails in government circles
tod.'iy regarding the amicable adjust
ment of the Franco-American tariff re
lations under the new law, as a result
of the explanations made by Senator
Aldrich, of Rhode Island, during his
talks last week with a number of
$1 Down. $1 Week
New Trimmed Tlats at $4.95
WE WISH TO CALL
TION TO THESE HATS.
They are from a new
millinery house which has
just started in business.
We gave t h e m a trial
order and these hats that
go on sale Wednesday at
34.95 are examples of their
We think without doubt
they are superior to any
Fall Hats we have shown
at this price this season.
They could easily retail
from $7.50 to $10.00 each.
In black and colors in a
very broad range of styles
and trimmings. Selection
being made very easy by
reason of their refined
style and appearance.
$25 Brass Bed,f Satin Finish $14.75
We illustrate to
day one of the choic
est styles of Brass
Beds, with heavy
center spindles and
T he Lipraan
with this brass bed
is a positive assur
ance as to quality.
The finish will not
fade or tarnish and
is high grade and
way. Regular value $25.00, special for' Wednesday $14.75
French Ministers and other high offi--ciala.
BATEHAM TO JUDGE FRUIT
Mosier Orchardist Selected as Offi
cial for Spokane Apple Show. .
SPOKANE. Wash., Oct. 5. (Sp5cial.)
George E. Kellogg, of Lake Mills. Ws.;
H. M. D'inlap, of Savoy. III., and A. P.
Rateham. of Mosier, Or.. have been.
sepi.red as associate judges of the Xa
tionul Apple Siiow. to serve with Chief
Judge. H. K. Vandeman.
Mr. B.itcham is the only judge selected
who reticles west of the Mississippi. He
is one of the mocit prominent fruit ex
ports in the Northwest, has officiated at
many' expositions and fruit shows. He
is a strong advocate of the commercial
points in apple culture, and the fact of
hi; stKction as Judgo has been received
with much commendation.
New York A feature of the local political
campaign is an uptown storeroom whloh has
been titd up by the committee-of 100 as a
"chamber of horrors." In it a band plays
The New York Style Show
A SEMI-ANNUAL OCCASION ;
' for MEN AND YOUNG MEN
An Exposition of Authoritative New York Fashions
for Autumn and Winter '09-' 1 0 i
They are exquisitely finished, expertly
tailored and authoritatively styled.
They enjoy the distinction of being worn
on Fifth Avenue and Broadway in New
York hy critical New Yorkers.
You 'can obtain BPjSli!LCl2!l at mod
erate prices through a high class clothier
in every city in the world.
In Portland at BUFFUM & PENDLETON, Inc.
311 Morrison Street, Opposite Fostoff ice