THE MORNING OR EG ONI AN, 3IONDAY, PECE3IBER 13, 1909.
MEXICO DOESN'T
AGREE WITH KNOX
ZELAYA INSTITUTES
REIGN OF TERROR
SCENES IN NICARAGUA AND PORTRAIT OF DICTATOR WH06E STAR IS WANING.
Cash Boys and Girls Wanted Over 16 Years of Age
o
Envoy Indicates Force Against
Zelaya Will Not Be
Approved.
Over 500 in Chains in Man
agua, With but Two Cents
Day Food Allowance.
EC
The Christmas Season
Has Opened in Earnest
VIEWS OF ENRIQUE CREEL
BOTH SIDES ARE ACTIVE
'i r ri a. !' . " v- !
it-t iT?T J 1. -S2masm'
Ex-Mexican Ambassador Makes
Known Ills Mission to Washing
tonDenies That Diaz Plans
on Naming Xew President.
TVASHTNGTOX. Dee. 12. Enrique C
Creel. ex-Mexican Ambassador to th
United States and now acting- as ape
rial envoy for his government in the
Central American Imbroglio, arrived to
day and will bring his misllon before
the State Department Tuesday. ,
While Insisting that his government
had "abounding faith In the broad
Judgment and sound diplomacy" of the
State Department. Senor Creel Indi
cated that Mexico was not altogether
In accord with the vigorous measures
being employed by the United States
Government to bring Zelaya's govern
ment to time.
Senor Creel tonight denied that his
Kovernment was putting forward any
candidate for the Presidency of Nic
aragua. Tt is an open secret that'Ma
driz is not acoeptable to the State De
partment. That Mexico is looking forward to
the day when the five turbulent repub
lics of Central America will be molded
Into one government was acknowledged
by the diplomat. The time for the
creation of the United States of Cen
tral America has not arrived, In Sen
or Creel's opinion, and he believed
such an amalgamation would be
through, evolution rather than resolu
tion. The special envoy will remain In
AVasliington several weeks. He is ex
Vected to take part in negotiations
which he expects will lead to a peace
ful settlement of the American dispute
with Nicaragua. .
ARRESTS IN LAND FRAUDS
IiOS Angeles Police Charge 'Woman
and Three Men With Conspiracy.
I.OS ANGELES. Cal.. Dec. 12. The
police are holding In the City Jail here
Mrs. T.aura 1. Bryant, l.ouis Chiffino.
John H. Hawloy and Harry Hancock,
pending Investigation into the numerous
land frauds and it Is said more arrests
will be made. It is alleged the persons
arrested obtained false titles to numerous
lots owned by residents in both San Diego
and Ios Angeles and these lots were
listen for sale with real estate dealers
in both cities.
One case is that in which lots owned
by S. P. Swackhamer, of Union, Or.,
formerly of San Diego and which were
sold by a San Diego firm. Becoming sus
picious, tho San piego agents wired to
Swackhamer, who replied that he had
not disposed of the lots.
MARINES ' ARRIVE AT ZONE
(Continued From First Pag.)
mine near the transport Diamante, Is
given no credence. This version is con
tracted by a deserter from the Zelayan
forces, who confirmed the previous re
port that each of the Americans was
captured while reconnoitering some
hills near the river.
KEBEI-S SURE OF VICTORY SOON
(encral Ustrada and Troops In
trenched Near Rama.
WASHINGTON. Dec. 12. Senor Cas
trillo. representative of the Nicaraguan
insurrectionists la this city, today re
ceived a cablegram from General Es
trada, head of the revolutionary move
ment, which declares that the revolu
tionists arc strongly intrenched at Ra
tna. and that the forces of President
Zelaya are two days' march from the
city.
The cablegram asserts that a revolu
tionary victory Is certain, but that fol
lowing it, the revolutionists will take
no definite steps until their programme
Is approved by the American State De
partment. This is presumed to refer especially
to a decision that may be made in the
case of President Zelaya should the In
surgents win.
The cablegram as translated by Senor
Castrlllo follows:
RAMA, via Bluerields. Pec. 1i. Cas
trillo, Washington We occupy our impreg
nable poBlton at Rama town, with an army
jnnre numerous and inure decided than ever.
Knemy is two days mart-h from Rama.
I-'roni there lie asks us for a parley.- Wo
are disposed not to concede anything and
are sure of victory. That is our trua situ
ation, and our plan from the beginning has
been to capture the enemy at Rama. We
are disposed not to take resolute action
without approval of the State Department,
"to whom you must communicate this. When
the hatile is expected we will advise you.
(Signed) ESTRADA.
The State Department announced It
was without official advices from Nic
aragua today. Any action the depart
ment contemplates will be taken only
upon official information.
W HO WILLi SUCCEED ZELiAVA?
Managua Quiet, but Talk Is Rife as
to Next President.
MANAGUA, Dec. 12. Outwardly Mana
gua is peaceful. There have been no mili
tary preparations .and the people appear
unconcerned. Band concerts are given
daily in the plazas.
There is much itriguing, however,
among the better classes, and cafes are
the centers of various conspiracies. The
revolutionists in leon, Granada anji
Managua are warring among themselves,
each being eager for supremacy. Those in
Managua are openly declaring that they
have been assured of the asistance of the
United States and insist upon being per
mitted to chose Zelaya"s successor.
Zelaya declared recently he was in nego
tiation with revolutionists to obtain their
indorsement to a successor to the presi
dency who would be acceptable to all
parties, and that he had submitted the
name of Dr. Jose Madriz, judge of the
Cartago court.
It is believed, however, that Dr. Madriz
would be obieationable to the revolution
ists. It therefore would be dangerous to
Impose a man indorsed only by one or
two factions, as the other factions would
likely take this for an excuse for a fur
ther rising.
Dr. Julian Irias. Minister-General, who
also has1 been suggested as a possible suc
cessor to Zelaya, would be powerful
enough to crufh an uprising in event of
his selection, but it is understod he ia not
favored by the United States.
VIEW OF HARBOR OF
CAMPO
PLANE FOR a;CUIM
High Speed Claimed in Test of
New Airship.
NIGHT FLIGHT IS TAKEN
Has Flown From Worcester Mass.,
to Sew York, Thence to Boston
and Back. Says Wallace
K. Tilltnghast,
WORCE9TKR. Mass., Dec. 12. A re
markable assertion of the practicability
of aviation is embodied in the announce
ment today of Wallace E. Tillinghast,
.ice-president of a Worcester manufactur
ing company, who asserts that he has In
vented, built and tested secretly an aero-
plari capable of carrying three passen
gers and in which he says he has flown
from Worcester to New York, thence to
Hoston and back. A speed of 120 miles an
hour was made at times, he declares.
The test was made on September 8 at
night, according .to Mr. Tillinghast, who
cays he circled the Statue of Liberty at an
elevation of 4000 feet and was seen on
the return trip by a coast guard on Long
Island when flying low, the fact being
recorded in the newspapers at the time.
Mr. Tillinghast says the machine Is a
monoplane, weighing 1550 pounds, equipped
with a 120-horse power gasoline engine. He
refuses to tell where the machine is, but
(says he will bring it to Worcester for a
public demonstration. .
SCRFMAX " HEARS AEROPMXE
Argument Will Not Convince Leach
It Was Flock of Geese.
NEW YORK. Dec. 12. William Leach,
a surf-man of the Fire Island life-saving
station, believes he heard an aeroplane
pass high above him when he was doing
patrol duty tonight.
First he heard a buzzing high up In
the air, and whatever made it, he says,
passed directly over his head. The noise
resembled the rattle and hum of a .high
speed motor. All . efforts to convince
Leach that he may have mistaken a flock
of geese for an aeroplane only make him
laugh. He says he has heard too many
geese to confuse the eound of their flight
with the exhaust of a gasoline motor.
Whatever made the noise seemed to
bo pointing for the Jersey shore. Leach
says that, because of the thick weather,
his eyes could not confirm his ears.
PORTO RICAN VOTE URGED
General Edwards Favors Their Ad
mission to Citizenship.
WASHINGTON, Dec. 12. Extension
of American citizenship to Porto Ricans
who desire it, and without forcing
upon those who do not. Is recommended
by General Clarance R. Edwards, Chief
of the Bureau of Insular Affairs, in his
annual report made public today.
In speaking of the recent tariff leg
islation by Congress for the benefit of
the Philippines, General Edwards says
the results so far have been to In
crease the price paid to the grower for
his leaf tobacco from 10 per cent for
the poorer grades to 45 per cent for
the best grades. The price received
by the producer of sugar has increased
25 per cent. He says that up to date
importations Into the United States of
cigars since 'the passage of the tariff
act have been at the rate of about
76,00. 000 a year or one-half the limit
for the admission.
"The effect on the American industry
of this importation," says General Ed
wards, "may well be Judged by the fact
that these cigars may be found only
with the greatest difficulty."
General Edwards reports that one
half of the regular number of troops
now in tho Philippine Islands are a
sufficient guarantee against any possi
ble Internal" disorder.
PROFITS GO TO MIDDLEMEN
Ultimate Buyers Pay Many Times
First Cost of Trees.
BOSTON, Dec. 12. The Yuletide call
to the forests and Its exactions of 4,000
000 young spruce, firs and balsams has
been felt the last three weeks In Maine,
Michigan and Oregon, the great centers
of Christmas-trees cutting industry.
Shippers are now busy rushing the
CORINTO, WH13RE AMERICAN WARSHIPS MAY OPERATE,
1-:-' fitf G.-'L r - ti:::.
' V, I '-.rr it..:. .VW. W . ':::,: ::.; f. Jr
' x , ' ' ' ftw:v-x ..S,: Xy.-w:': :7-r t:- :;.. A
v ; f t
E NORTE, REVIEWING PLACE AT MANAGUA.
f ,-: ;f: -!!! NET PROFITS TAXED
I? - - ' i .
.jw-',1.. --y :::::
.t-e..w.M -""--"rfTir irtTiTfnmin t
President Zelaya. I
U
product to the market. The total cut
of trees yields the owners of lands
about 1160,000, while "consumers" pay
about $2,000,000. shippers and dealers
reaping a great share of the profit.
Oregon's trees are cut more than
those of any other Pacific sta,te, but
the total cut of that state does not
equal that of either Maine or Michi
gan. BLACKMAIL IS CHARGED
IiOS ANGELES PROSECUTOR AC
CUSES SEATTLE MEX.
Chance Will Be Given Him to Tell
Grand Jury on Sonnd
What He Knows.
LOS ANGELES. Cal.. Dec. 12. (Special.)
District Attorney John D. Fredericks
will go before the grand jury at Seattle
and tell his version of how he frustrated
an alleged attempt made to fleece Ralph
J. Leavitt. of this city, of $1000 by Deputy
Prosecuting Attorney Frank H. Holz
lielmer and Detective C. B. Peyton, of
Seattle, on the occasion of Leavitt's re
cent arrest for manslaughter for being a
passenger. In an automobile that killed a
Seattle sfreetsweeper.
Mr. Fredericks admits that under the
law the Washington authorities cannot
comnel him to answer a subpoena, but he
says he is willing to go if the grand Jury
desires Information on the actions of the
two officials, who have been forced to
resign.
"The men had solicited $1000 from
Leavitt under promise to dismiss the case
against him. but in reality they could
not be punished. As no crime had been
committed here, in view of the fact that
the men were not officers of California,"
said Mr. Fredericks today. J'At the same
time they were dealt with In such a man
mer that their resignations were assured
end both made confessions In their own
handwriting of having received the
money." "
SEATTLE. Wash.. Dec. 12. (Special.)
Leavitt ran over and killed a street
sweeper here. Joe Schlumpf and others
went his bail on a charge of manslaugh
ter. . Leavitt lft for Los Angeles and
lumped his bail. Holzheimer, the Deputy
Prosecuting Attorney, went to Los An
geles to try. to bring Leavitt back. He
is suDPOsed to have compromised the
case.
Prosecutor Vandeveer says that If Dis
trict Attorney Fredericks comes here he
will have every chance to appear. Van
deveer discredits the Los Angeles story.
Holzheimer and Peyton were not dis
missed. Holzheimer resigned but later
was reappointed. Peyton resigned and is
still out.
Illinois Central Engineer Killed.
SPRINGFIELD. 111.. Dec. 12. A
northbound passenger train and ' a
southbound freight train on the Illi
nois Central crashed together head-on
near Pana, 111., today. Engineer Philip
May, of Clinton, was Injured Internally.
Only One "BROMO QUIXINK."
That Is LAXATUB BROMO QUININE-Loolc
for the signature of E. W. GROVE Used th
World over 10 Cur a Cold in Ona Day. 23c.
s . .j
', rxt
MacVeagh Explains Purpose
of New Law.
RETURNS MUST BE MADE
Honest Errors to Be Corrected, but
Fraud Fully Prosecuted 400,-
000 Corporations in the
Country Affected.
WASHINGTON, Dec 12. More than
400,000 corporations In the United
States will have to make their returns
In conformity with the new corpora
tion tax law. Secretary of the Treas
ury MacVeagh has issued a compre
henslve statement for the government
of those corporation officials. The
statement is 'calculated to cover any
questions of. classification and distinc
tion which might arise In the making
of the reports, and it sets forth In
terse language what the Government
expects.
The statement begins plainly with
the statement that the Government ex
pects returns to be made to conform
with the Intent of the law, and that
the law had two Intents first, that it
should be, a revenue producer for the
Government, and second, to- leyy a tax
of 1 per cent on the net income of cor
porations as provided In the law.
Tax Hits Profits Only.
After a concise definition of what
Is considered net income with the law,
the statement says:
"It is clear that the purpose of the
law was not to put a. tax on receipts,
but a tax on profits, and that the terms
'net income' and 'gross income' are
used because, while they are practical
ly identical with gross profits and net
profits, they are yet more' embraslve
and consequently permit a more com
prehensive administration of the law."
For convenience and facility in clas
sification, corporations have been divid
ed into five classes. They are Insur
ance companies, transportation com
panies, manufacturing companies, mer
cantile companies and miscellaneous
corporations.
Frauds Will Be Prosecuted.
The statement makes detailed explana
tions of what can be considered gross in
come, net Income, and defines what other
terms used in the statements are held to
be within the law. Inaccuracy is ex
pected In some of the returns, the state
ment says, and it Is expected they .will
be from two causes. The first Is honest
error and the second is Intent to defraud
the Government. Honest errors will be
corrected, but any attempts at fraud will
be met with vigorous prosecution.
The regulations do not call for specific
methods of keeping accounts or any
other particular method of bookkeeping.
The requirement is simply that the busi
ness transactions be so recorded that ac
curate returns can be made and verified
when necessary.
M CITY FIGHTS 0. K.
NEW REGIME IX SAX FRANCISCO
MAY ALLOW CLUBS.
Report Says Three Associations
Will Be Formed, Each to Get
Four Permits Yearly.
SAN FRANCISCO. Dec. 12. (Special.)
According to information that comes
from a source close to Mayor-elect Mc
Carthy, the plans of the new adminis
tration as far as the fight game goes,
in San Francisco, have already been de
cided. - It is said there will be three
clubs, each to have four permits durigg
the year, and that Jack Gleason, Jimmy
Coffroth and Louis Blot, a commission
man. who Is Billy" Papke's California rep
resentative, will be the promoters.
The men interested in the game think
that longer fights will attract, and be
lieve that the Supervisors will allow an
extension So that 30-round fights will be
allowed. In addition, Jack Gleason ex
pects to be granted permission to hold
one 45-round fight, which will mean that
the Jeffries-Johnson mill will be held in
the city proper.
Zelcya Places Force of 600, Who
Will Oppose Landing of American
Marines Estrada's Soldiers
Can Defend Bluefields.
BLTJEFIELDS, Nicaragua, Dec. 12. It
is learned from an authoritative source
that a reign of terror is being maintained
In Managua and that not less than 600
persons identified- with politics are In
chains In the prisons. A Catholic society
has been ordered to cease sending sup
plies to the prisoners, who may starve to
death, as they are allowed only 2 cents
a day for food. Corporal punishment 1
meted out dally to various alleged of
fenders.
Zelaya, to create an Impression that
the sentiment of the people of Managua
is hostile towards America and Ameri
cans, recently ordered Amelio Estrada,
a prominent Liberal and a brother of the
revolutionist chief, to organize a dem
onstration against the United States.
This he refused to do.
Irias Would Succeed Zelaya.
Tt is nuderstood that Dr. Julian Irias,
Minister-General, has been making at
tempts to start an uprising in his favor
as Belaya s successor, but whether with
Zelaya's consent Is not known. It Is re
ported also that Irias home has been
surrounded by soldiers. Further authori
tative dispatches state that 500 of Ze
laya's forces have been entrenched to
prevent American marines from passing
over the bridges into Corinto.
Esoondido River Guarded.
Since last Thursday, when General Es
trada became certain that General Vas
quez, in command of a portion of Zelaya's
troops, was attempting to make a detour
of Rama to seize an unguarded river point
and descend upon Bluefields, forces of the
provisional government Ijave been acting
with great energy. Rama has been occu
pied, and less important river landings
have been, strongly guarded. All available
boats have been held in reserve to rush
reinforcements to any point Miat may be
threatened.
General Phamorro and 250 men arrived
today to assist in guarding the entire 60
miles of the Escondido River, from Rama
to Bluefields. General Chamorro left 300
men guarding the land passage between
Bluefields and Greytown.
Zelaya's Troops Bottled.
The provisional Secretary of State,
Adolfo Diaz, today declared that the Zela
yan troops would not be able Jo march
overland from Greytown. because of the
swamps and jungles .and they would be
unable to get the use of river boats. For
these reasons. General Chamorro could
afford to weaken the Greytown forces,
he said, without fear of results.
. While the provisional government would
welcome additions to the marines which
the United States cruiser Des Moines has
aboard. Secretary Diaz, declared that Es
trada's forces were capable of defeating
any attempt to attack Bluefields.
Scouting parties are out In every direc
tion to determine the objective point of
General Vasquez, who has asked for two
days' extension of the truce to enable
him to communicate with Zelaya. As"
General Vasquez is In possession of a
telephone system over which probably ten
minutes would suffice to transact his
business with Zelaya, the request was
looked upon with suspicion and refused.
CARNEGIE INSTITUTE READY
Handsome Administration Building
to Be Dedicated Today.
WASHINGTON, Dec. 12. A noteworthy
addition to the many buildings of archi
tectural beauty in the Nation's capital Is
the new Administration building of the
Carnegie Institute of AVashington, which
will be dedicated tomorrow evening.
Andrew Carnegie, founder of the in
stitution, which he endowed with $12,000,
000. will deliver an address. With the en
couragement of investigation, research
and discoveiy in the broadest and most
liberal manner and the application of
knowledge to the improvement of man
kind as the object of the corporation, the
Institution Is accomplishing achievements
of far-reaching scientific value. Since its
President Taf t
Is Pleased
THE WHITE HOUSE,
WASHINGTON,
Portland, Oct. 2, 1909.
Mr. E. A. Thompson,
Corbett Bldg, -
Portland, Oregon.
My Dear Sir: "
The President has received the
glasses you furnished him on the
2d of October and thanks you cor
dially for same. He much appre
ciates your attention.
, Very truly yours,
(Signed) ARCHIBALD W. BUTT,
. Aide to the President.
Thompson has pleased President
Taft and over 20,000 other spectacle
wearers and can please you. High
class -work at the lowest possible
prices.-
THOMPSON gsffi
Second floor Corbett Bldg., Fifth and.
Morrison-
i 0 it t
h ... m
fullest. As inducements for early shopping we have
made some trenchant reductions in many lines of goods.
Special Sales That Must Command
the Attention of All Shrewd Shoppers
MONDAY'S BIG SALES
500 FRENCH SEAL- HAND BAGS in the
very newest shapes, received by express Satur
day. All fitted with coin purses, double strap
handles and large gold-plated initials.
1000 IMP'TED PIECES OF REAL EBONY
in toilet requisites. Men's military brushes,
cloth brushes and hair brushes, also ladies' hair
brushes, hand mirrors, bonnet brushes, cloth
brushes, some plain and some sterling mounted.
Monday Half Reg. Price
SYRIAN CROCHET DOILIES, SQUARES
and bedspreads. Our Christmas importation at
just half regular price.
TODAY IS YOUR OPPORTUNITY to make
a very pronounced saving on holiday umbrellas,
if you have such. an item on your Xmas list.
WHILE IN THE STORE don't fail to take
advantage of the picture sale. Immense saving
on pretty framed pictures today.
SALES IN JEWELRY, silverware, cut glass,
toilet sets, Christmas ribbons and neckwear.
SALES ON THE SECOND FLOOR in the
Art Needlework, Fyrography, Millinery, Suits,
Dolls and Rugs.
organization in 1902 upwards of 1000 in
dividuals have been engaged in Investiga
tions and at present 500 are thus engaged.
Ten departments' of research have been
established and two astronomical observa
tories1 and five laboratories for as many
different fields of investigation in widely
separated localities are maintained.
Work has thus far been carried on un
Wt
7X
7n?
mi
6 V
I'vui
exercise
makes pood
Only the TJlumnest
Grains are selected from
western wheat croil for the
Olymnic Flour. There
no Question of the nnt-ritinna volno r.f
Olympic its wholesomeness its puri
tyor its cleanliness. It's the way to
good bread and successful baking.
Positively demand
"there Isn't any
jus i as good."
11 vrnnr
AT YOUR GROCER'S
PORTLAND FLOURING MILLS CO.. PORTLAND, OBEGOX
The Christmas bustle has come
a vast army of good-natured,
jolly and eager people, racking
their brains Jo think of some gift,
large or small, that will make
somebody happy. There is good
cause for early shopping, it gives
lyou time to make your selections
'leisurely and with the proffered
assistance of the salespeople, im
possible later in the day. This
week you find the stocks at their
Special at $ 1 .98
der the auspices of the institution in many
different fields succewsf ully.
Nearly 210.000 coin cards have been sent
out this year by the younj; people's mission
ary department of the Methodiat Episcopal
boards of homo ann" foreign missions, in.
furtherance of the plan to promote In th
Sunday schools snch regularity in Hiving; as
shall Insure $1,ooo.0(h annually for mis
sions from these school?.
"The difference
Krji sM-. tiUUU IPX-Call, ail 11
vivau lo dlOJl CL1U11 VUU
in buying your flour
bread."
Mother.
and hardest
thn Nnrth.
malvino of"
ia nhnl
jpatenT
Olympic
i