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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (March 22, 1910)
jlitwitigr ij PORTLAND, OREGON, TUESDAY, 31 ARCH 22, 1910. PRICE FIVE CENTS. VOL. L.-NO. 13,387. GRAFTERS CROWD HEAD OF PRIVATE POSTOFFICE JAILED 45 511111,400001 COOK'S DEFENDER COMES TO RESCUE TURBULENT HOUSE GROWS PEAGEFUL PATTEN IN DREAD OF BEING JOSTLED BM FALSE JOORE KNEW IT, IS TOLD TO CONFESS AS GAOS GRUMBLE EXPERIEXCE AT MANCHESTER. . GETS OX HIS NERVES. DELIVERY IS CHEAPER TIIAX STAMP RATE ALLEGED. EXPLORER'S ONLY WHITE COM PANION "TELLS" ON PEARY. NS Forty Pittsburg Coiin cilmen Indicted. PAST AND PRESENT INYOLYED Courtroom Swarms With folen Anxious for Immunity. ALL FORCED TO RESIGN Judge T so Busy Receiving Talea or Corruption, Some Are Told to J let urn Today Price Ranges From $81.10 to $500. PTTTSBTTRO. March 21. Forty present and. former members of select and com mon councils are unaer Indictment on a charge of bribery, and ten more, with (suspended sentences, are held in $500 bonds upon their own confession of shar ing in a pool of $102,000 to in fluence the votes of the municipal bodies. This was the result of the first day's probe of the grand jury following the sensational confession of Captain John Klein, ex-member of Councils. All day Judge R. 9. Frazer sat as a committing magistrate in the criminal courtroom and his deck became "a throne of grace" to the many Councilmen under suspicion who swarmed before the judge to "be washed of their sins." i On one floor of the court building the grand Jury would hear the conscience stricken councilmen, who would then go before Judge Fraser and take the im munity bath, ' offered last week by the District Attorney. While these proceed ings were going on the corridors of the courthouse were thronged, andaaeach councilman put in ah appearance there was a clamor of: Court Too Busy to Hear All. "When are they going to get the big ones?" Once during the late afternoon a north side councilman rushed into the courtroom and wanted to confess, but he was told to come bade tomorrow. "We are too busy," brought a roar of laughter from the crowded benches. Up to the adjournment of the court at .5 o'clock 10 had confessed. In most Instances the amount of money they confessed to accepting as a bribe was not over $100. One man got $500 and another $200, while- others got ,but $81.10. . All Forced to Resign. As fat as present Councilmen 'ap peared after they had relieved their consciences they were ordered" Imme diately to resign from the city govern ment, and In every instance the let ter of resignation was written in the District Attorney's office and mailed to Mayor W. A. Hagee before the guilty one left the building. The men indicted are from varied professions. Some are professional pol iticians, one is a private detective. Sa loonkeepers, physicians, market men, tailors and a real estate man are on the list. C C. Schad, who is a market man, is also a member of the Legisla ture from Allegheny County. Among the men to -come forward dur ing the afternoon was Dr. W. H. Weber, a member of the select council. There was an uproar along the crowded corri dors when he was seen to come from the courtroom, and the expression was heard : "Where will it end?" Dealer in Votes Confesses. ' Dr. Weber told Judge Frazer how he received $lo,000 to be distributed among Councilmen for their votes and influence in the. passage of an ordinance to vacate a certain street. He pleaded no defense to the charge of conspiracy. Dr. Weber said he gave the money to 'about 30 or 40 Councilmen. He could not remember all the names, but recited a list including some of the most prominetn and active members of both select and combination Councils. To each man as he stepped up today the court Btated he held in his hand an information entered against the defend ant by Henry Muth, Chief of County De tectives, charging him with having re ceived a specified amount for his vote in the Councils on the ordinance or resolu tions then pending. "What do you wish to do?" asked the court. "I will waive a hearing," was the in variable reply. "Defendant waives a. hearing and he is held for court in $500 bail," said the court. and the man in question stepped aside for another to take his place. An indictment was returned by the grand jury, and almost immediately the defendant entered a plea of nolle con tendere. When Judge Frazer adjourned court j it was decided the grand Jury should hold a night session. Dr. Weber was therefore taken before the body, where, it is said, he recited his knowledge of the graft conspiracy, corroborating Klein's confession in every detail. At 9:30 it was announced the gTand Jury was ready to make a presentment. Forty Men Are Indicted. Judge Frazer came into court, and half an hour later indictments were found against 40 present and former members of the two branches of the City Council. There were 41 names in the presentment, but one of the men notified the District Attorney that he would be on hand tomorrow and make a complete confession. The men indicted tonight will he allowed until noon tomorrow volunta rily to appear and then the county detectives wjll be sent out with war rants for their arrests. While before the .grand jury Dr. C. 1". Neth. Accuse of Acting as Carrier for Firms on Post Route. Indictment Drawn. Alleged operating of a postoffice and mail delivery business In opposition to the postal department of the United States caused the indictment of C. F. Neth, with offices in the Worcester Building, by the. Federal Grand Jury. Neth -was arrested yesterday morning by Deputy United States Marshal Griffith, and later gave bond to guarantee his appearance in court for trial. In conducting the business of Neth & Company, the accused man Is said to have entered into contracts with a large number of prominent wholesale houses and other firms of the city whereby he delivered (bills of account, statements and communications of similar charac ter, addressed to persons and firms on the streets covered by the carriers of the free delivery service. In some instances, it is aireged by the postal inspectors, Neth performed the service for three-fourths of the charge set by the Government for carrying the letter or package through the mails. Some firms, it is also alleged, employed the agency of Neth & Company at a stipu lated compensation by the month. In every instance, . it is charged, the price was a reduction on postal rates. Opera tions of the firm are said to have grown to such proportions as to decrease ma terially the revenues of the Portland postoffice from the sale of stamps. Su perintendent of Carriers Jones and In spector Clement brought the case to the attention of the Department of Justice. Neth will be prosecuted under a sec tion of the new Federal Code which pro hibits the establishment of a private con veyance for carrying letters and parcels over an established post route. It has been held by the courts that a street upon which free delivery exists is a post route. The business of Neth & Co. was first established in the Worcester Building by Ferry Bros., as the National Credit As sociation. Ferry Bros, sold the mail de livery of their concern to Neth & Co. Neth refused to discuss trfe case except to say he was operating an agency for the collection of bad debts. FACTORIES TO BE SOUGHT Harriman Lino Will Locate Them on, Seattle Tide-Land. SEATTLE, Wash.. March 21. (Spe cial.) To throw open 129 acres of fac tory area in the heart of the tide lands district, the Oregon & Washing ton Railway is establishing an indus trial bureau in connection with its traffic department and. through its ex tensive acreage holdings, will take steps to encourage diversified indus tries. This area extends from and along the east waterway to the city limits and includes a breadth of territory in the vicinity of Argo which is being rapidly filled. The policy of the establishment of new industries in this territory, as outlined by a high official yesterday, will be in favor of the many small diversified industries rather than a few large concerns. It will be the duty of the new industrial bureau which will work independently of any other organization, to seek possible in dustries for the location, subject all projects to a rigid inquiry and then upon satisfactory assurances, extend the privilege of a long-time lease, the consideration for which shall be based on low interest upon the road's invest ment in the site desired. JAPAN MOVES WESTWARD Missionary From China. Sees No Danger to Philippines. VANCOUVER, Wash., March 21. (Spe cial.) "I think there is- no danger of Japan's taking the Philippines, for they do not seem to be expanding in that di rection," said Rev. Z. C. Beals, of Wuhu, China, while visiting" Dr. H. F. Hixon here yesterday. Rev. Mr. Beals has been a missionary in China for the past 18 years, and is returning to the Orient after a visit In Boston, his old home. He will sail from San Francisco for Corea Tues day, March 29. In speaking of the Japanese, .he added: "They have swallowed up Corea and would like to have Manchuria. The Jap anese are expanding westward, and al though they were stopped by the Russian war. they did not recede to their old holdings. The Oriental, when faced by force, will stop and say 'Excuse me,' but will hold his advanced position until he is able to move again. As is the case with all nations, the Japanese are ex pandlng westward into China, and China is not able to resist them effectually.' AX-WIELDER IN HOSPITAL Octogenarian Assailant of Son Not Insane, Retention Ordered. ALBANY, Or., March 21. (Special.) J. H. Maine, S5 years old, who struck his son in the neck with an ax Saturday afternoon, was placed in St. Mary's Hos pital today. - An examination disclosed that though feeble-minded, he is not insane. He was placed in the hospital, where he can re ceive attention pending further investi gation of his case. ONE LESS CANDIDATE OUT Streetcar Conductor Who Would Be lacoma's Mayor Is 111. TACOMA, "Wash., March 21. (Spe cial.) Charles H. Dow, streetcar con ductor and candidate for Mayor under the commission plan of government, withdrew from the race today. Mr. Dow is ill in a hospital. This leaves seven candidates still In the field. Double Train on Rock Island Ditched. . ; ENGINES PLUNGE INTO MUD Occupants of Day Coach, Smoker, Pullman Mangled. . WRECKAGE SOON CRIMSON Bodies of Dead and Dying Horribly Mutilated, Many Being Crushed Beyond Recognition in Tan gled Mass of Debris. V MARSHALLTOWN, la.. March 21. Forty-five persons were killed, and 40 were Injured, many of them fatally, in a wreck of a Chicago, Rock Island & Pacific train four' and a half miles north of Green Mountain, la., at 8:16 A. M. today. The train, which was a ' consolidation of No. 19, from Chicago, and No. 21, from St. Louis, bound for Minneapolis. ' was being detoured over , the tracks of the Chicago Great Western road. Running at about 30 miles an hour in a cut north of Green Mountain, it struck a spread rail, it is believed. Pullman Car Is Smashed. The pilot locomotive Jumped the track and, with terrific force, was burled in the embankment of soft clay. A second, locomotive, coupled, behind the first, rolled over and the sudden stop hurled all the rear cars forward. A coach, e. .smoker and a Pullman car were smashed to splinters, almost all the occupants being killed or injured. The superstructure of the Pullman was liter ally shaved off and was Jammed like a ramrod through the smoker and day coach. Many passengers were killed outright. Heads were severed from bodies and arms and legs were cut off. The wreckage was crimson with blood. some of the bodies being crushed beyond recognition in the mass of twisted rails and splintered oars. A few of the pas sengers were found still living with a rod or splinter Impaling them in the wreck. Decapitated bodies were picked up and it was almost impossible to as sort correctly the dismembered parts. Pasture Is First Morgue. The wreck occurred at a point diffi cult of access. Such bodies as could be pulled out were stretched out in an ad Joining pasture. First attention was given to the wound ed. Their cries coming from beneath the cars were pitiable. Fortunately, the wreckage did not take fire. The rescue party, reinforced later on by wrecking trains carrying nurses .and surgeons sent from the nearest available points, worked all day and until long after dark. The injured were rushed to a hospital, several of them dying on the way. Two of the bodies were not taken out until night. Fatalities occurred only in the first (Concluded on Page 2.) Rudolf Franke Declares Commander Demanded Cook's Valuable Fox- Skins to Save Life. COPENHAGEN, March, 2L (Special.) Dr. Cook's only white companion in the Arctic regions last year, Rudolf Franke, arrived in Copenhagen today from Ham burg. He said: ' "Dr. Cook is the greatest martyr of modern times, and Peary has filched his glory. I followed. Dr. Cook to Anatook, saTV his preparations for the Polar trip and ventured the opinion that the. chances were 100 to 1 that he would reach the Pole. I was taken sick and, had, to return on one of Peary's ships. - "Commander Peary consented to take me home on the steamer Eric if I gave hinv 200 blue Arctic fox skins belonging to Dr. Cook, which I carried with me. I was compelled to accept the terms to nave my life. The skins were worth 40,000 kroner ($10,000). "Peary presented them to prominent Americans, ex-President Roosevelt be ing one of them. Dr. Cook never men tioned the loss of the skins during the recent campaign in which he fought with Peary for honors of Arctic dis covery. "Dr. Cook is not as strong as Peary, and is- utterly broken down as a result of the terrible attacks upon him." INDEX OF TODAY'S 'NEWS The Weather. YESTERDAY'S Maximum temperature, degrees; minimum. 45 degrees. TODAY'S Showers; cooler; winds shifting to southerly. Foretell. Explorer Cook's only white companion on polar trip declares doctor martyr. Page 1. National. Pacific Coast to be represented on new House rules committee, as result of Can non right. Page 4. National Packing Company and many other packing companies indicted under Sher man law. Page 3. House emerges from turbulency to day of peaceful routine. Page 1. Newell's retirement from reclamation serv ice likely, as result of his friction with Ballinger. Page 3. Domestic ArrKcable settlement of firemen's dispute with Western roads assured. Page 2. Patten said to fear being Jostled on Chicago Board of TYade as at Manchester. Page 1. Foreign Insurance companies get law passed In New York by paying more than do mestic companies lobby got. Pago 1. Colored Judge decides "Meesinger case" In volving right of parent to employ mind healing for children. Page 3. Forty Councilmen Indicted for bribery at Pittsburg and they stampede to confess. Page A- wreck of Rock Island train In Iowa kills 45 persons, injures 40. Page 1. Sports. Portland' team reaches Madera, Pitcher Steen opens season. Page 7. Northwest. Railroad activity in Idaho country looks like. Harriman-Hill war. Page B. Rapid rise in Paloiise River threatens an other floods at Colfax. Page 8. Farmers' demonstration train makes hit on Heppner and lone visits. Page 8. Commercial and Marine. Local wheat prices working to lower level. Page iu. Cattle market shows further advance. Page 11. Stork prices helped by successful bond sale. Page 19. Small gains in wheat at Chicago. Page 39. Shipowners win damage suit against O. R. & N. R. R. Page 18. Portland and Vicinity. Man indicted for alleged delivery of bills, letters, packages cheaper than U. 3. stamp rates. Page 1. Homer Davenport's lecture. "Power of the Cartoon," well received at White Temple. Page . Hill lines will make through rates on wool shipments In sacks May 1. Page 9. Three members of license committee favor closing of all public dancehalls. Page U. Y. M. ". A. school work In four cities of Northwest to be on unit basis; additional branches taught. Page 13. - Receiver Devlin testifies ex-President Moore of Oregon Trust knew of false entries on bank's books. Page 1. NEW BOSS OF CONGRESS? Democrats Appear to Be Satisfied. INSURGENTS ARE DISGRUNTLED Certain Ones Angry at Speech of Speaker Saturday. REGULARS TRY DIPLOMACY Democratic Caucus Coming Wednes day, Republican Saturday Per sonnel of New Rules Committee ' I Cause of Conjecture. WASHINGTON March 21. The House passed through its first day .of business following the great eruption of last week with remarkable quietude. Tonight, when, adjournment came, there was an air of calmness and amity that, to the observ ers of events last week, was almost un believable. Peace appeared near, not withstanding that less than ten days dis tant is the' election of a new rules com mittee with all its embarrassing compli cations. Many elements contributed to today's calm. The Democrats, satisfied with the situation as it left them after the four days of fierce strife, were content to let matters drift for awhile. Regulars Most Diplomatic. - The regular Republicans, realizing from the violent outbursts in the press from various insurgents over the Saturdays night speech of Speaker Cannon, when he called them "cowardly members," that party harmony was to be gained only by the most diplomatic tender of the olive branch, were most adroit In their rela tions with their insurgent brethren. Those Insurgents who voted to oust Speaker Cannon: from the Speakership were eminently satisfied today and, like the Democrats, let things drift. The score or so of insurgents who voted for the retention of the Speaker in the chair only to be rewarded with a withering blast from the Speaker, sup plied the only discordant note. They reached the Capitol in a decidedly wrath ful . frame of mind. Certain Insurgents Angry. Several of them, like Representatives Norris of Nebraska, Madison of Kansas, Hayes of California and two or three others, gave their views fully to the press, sparing no words In voicing their indignation at the situation. Two or three of them talked loudly of continued warfare of a further fight on the rules of the House, upon Speaker Cannon,, on the regulars in the selection of the new rules committee. But notwithstanding their loud cries of renewed rebellion, they were met on all sides by smiles and con clliatory words from the regulars. Not the least influence in producing a general air of forgiveness was the word that came indirectly from the room of Speaker Cannon to the effect that the Speaker had moderated in his (Concluded on Pagq 3.) J Orders All Newspaper Men Banned on Return to Chicago -Friend Offers Explanation. CHICAGO. March 21. (Special.) James A. Patten has evidently come to the conclusion that he is in dan ger of being "boo'ed," jostled and hit with clods in his home town, if the humor he was in today on his return from Manchester is a sufficient indi cation. Manchester must have "got on his nerves," for he called in the assistance of his "bouncer" to get rid of the news paper men who went around to greet him on his return to his office. One of Mr. Patten's friends in the pit had a theory to account for the speculator's excitability. "You see," said this man, "it's like this: I had a dog once that the dog catchers nipped and threw in the pound, and, do you know, that dog never got over the shock? Whenever he heard a wagon in the street he'd get nervous. ' "Now, I think it is the same way with Jim Patten. Jim is all right. There isn't a better or kinder man in the world, but he's been through a little rough work, and it's kind of got In on him." 2 YEARS' MYSTERY CLEARS Body of John Craven Found In Woods, Death Natural. OLYMPIA, Wash., March 21. The re mains of John Craven, formerly em ployed to purchase piling for the Gov ernment harbor improvement, have been found and a mystery of two years has been cleared up. Craven, an Eng llshman, aged about 50 years, had been working under J. M. Clapp, of Seattle, assistant Government engineer, and was engaged in purchasing piling for the Grays Harbor works. Two years ago he left the farm of James Adair, near Little Rock, this county, where he had been making headquarters for some days, starting through the dense timber for the Sherman place, six miles dis tant. He had been subject to heart failure, and had been warned against the trip. He disappeared, and for days larpo searching parties worked in vain to discover his whereabouts. The only traces found were . imprints of the creases of his corduroy trousers, where he had apparently fallen, and occas ional tracks of his rubber boots in soft ground. Sunday, John Erickson, a rancher in that vicinity, discovered the body In the woods, and investigation has prac tically identified it by the corduroys and boots. Craven probably died from heart failure. MAYBRAY GANG SENTENCED Ten to Pay $10,000 Fine Each, to Serve Two Years. COUNCIL BLUFFS, la., March 21. The maximum penalty of two years in the Federal Prison, at Fort Ieavenworth. Kan., and a fine of $10,000 each, was meted out to John C. Maybray and nine others by Judge Smith McPherson, lr the Federal District Court here today, when they appeared for sentence follow- ing their conviction by a jury Sunday for extensive swindling by fraudulent use of the mails. Four other defendants re ceived less severe sentences. Aside from Maybray, those given the full penalty were: - Edward Loser, Ed ward K. Morris. Tom S. Robinson, Ed ward Leach, Clarence Forbes, Harry Forbes, Edward McCoy, Clarence Class and Willard Powell. Bert Shores and William Marsh, who pleaded guilty, were sentenced to Id months in the penitentiary and to pay a fine of $100 each. Wlnfred S. Harris, who also pleaded guilty and Frank Scott, were sentenced to six months in jail and fines of $100 each. Attorneys for the defense at once be gan preparing motions for a new trial. SCRATCH OF THORN FATAL Pendleton Woman Contracts Blood poisoning and Dies. PENDLETON, Or., March 21. Mrs. E. Crowner. aged 70 years, lies dead tonight as the result of a thorn scratch. It was about two months ago that she first received the superficial wound on the back of her hand. No attention whatever was paid to it at the time, but later . bloodpoisoning developed. The arm was saved, but the poison was dif fused through her system and for sev eral weeks she suffered intensely. The deceased woman is survived by four sons and two daughters. ORCHARD BRINGS $40,000 35-Acre Tract Near Medford Bought by New Yorkers. MEDFORD. Or.. March 21. (Special.) The Buckeye orchard, owned by W. G. Esten. was sold today to H. P. Houston and L. H. Houston, of Jamestown, N. Y-. for $40,000. The tract, which is seven miles from Medford, contains 35 acres. of which eight acres is planted In pears, eight acres in apples, and the remaind er in young orchard. This is one of the best orchards in Ttoorue River Valley. Last year 11' cars of fruit were shipped from it, netting $10,000. SWEDEN LOOKS FOR STORK Prayer in All Churches Offered for Princess Victoria. STOCKHOLM. March 21.-r-(Special.) An addition to the family of the Crown Prince Gurflaf Adolf is expected in the near future. In all churches of Sweden prayers were offered yesterday for the Crown Princess Margaret Victoria. The royal couple have two sons. Prince Gustav Adolf, born in 1906, and Prince Slgvard, born in 13U7. Receiver Devlin Gives Details of Wreck. CROOKED BOOK ENTRIES CITED Accused Surrenders Mutilated Notes of Golden Eagle. HUGE LOSSES RECOUNTED Only 120 Out of 500 Notes Secured, $80,000 on Paper Hold Now Deemed Worthless Board of Trade Building Deal. Thomas C. Devlin, receiver of the Ore gon Trust & Savings iBank was the main witness for the prosecution yesterday at the trial of Walter H. Moore, ex-president of the wrecked institution. Responding to a running tire of ques tions put by Deputy District Attorney Fitzgerald. Mr. Devlin testified tliat Moore knew the bank's books contained false entries and that Mooro had used the bank's money in the Pacific &. East ern Railroad deal. Further testimony by Mr. Devlin inti mated that Moore, after trying to conceal his knowledge of the extent to which the Golden Eagle store had used funds from the bank, admitted that he knew of the transactions between the bank and that establishment. After this admission, said Mr. Devlin, Moore produced the notes, mutilated by the names of the makers being torn off, and surrendered them to the receiver a short time after the bank suspended payment. Huge Iiosscs Listed. Mr. Devlin cited startling figures, made public officially for the first time, to show the extent of Moore's alleged knowl edge of the condition of the bank, and the apparent lack of caution exercised In handling Its funds. AVith liabilities of $2,500,000 the bank closed with only $45,000 In cash in Its vaults. Including notes, good and bad. bonds and stocks, valu able and useless", and all other types of securities, taken at tlieir face value, there was only $2,209,000 in assets. I"n notes there was $625,747.0. outstand ing. All of this, with the exception of a small proportion had been loaned without ynortgage or collateral. Out of 500 notes only 329 were secured. Overdrafts on the last day figured $257,144.86. of which $101. 63K.04 had been advanced to the Golden Eagle, in which rumor reports W. Cooper Morris, the cashier, had a personal in terest. To the Board of Trade Building Association, of which Moore was virtual ly sole owner, $07,735.74 had been advanced. According to the calculations of Mr. Dovlin. the losses actually incurred by the bank through the dealings of Moore and Morris, these transactions added to lessee incurred through unsecured loans made to others, reached $150,000. From the estimate made by Mr. Devlin, the losses incurred by various deals were: Pacific & Eastern Railroad, $19,000; Board of Trade building. $50,000; Order of Wash ington, $.10,000; Iafe Pence, $9"00; Barrett Manufacturing Company. $18,000; Pullman Auto Car Company, $11,500; A. J. McCabe, contractor, connected with the Pacific Sc. Eastern Railroad, $6500. Big Notes Worthless,.' Mr. Devlin testified that he had in his possession now unpaid and uncollectible notes amounting to $,0u0, which had been turned over to him as receiver and listed at their full face value in assembling the bank securities. which he considered worthless. Deputy District Attorney Fitzgerald, addressing the court, said he would prove later in the trial that just after the bank closod, Moore employed several men to Induce depositors to accept telephone bonds as settlement of their claims that tlie institution might be reorganized. In this connection, said Attorney Fitzgerald, he would show that Moore was trying to get the bonds disposed of that their value, or rather their lack of value and the ex travagant extent in which they had been invested, would not become known. Although the Golden Eagle had over drawn to the extent of $101,638.04, there was nothing on the books of the bank to show that that store was in debt to the bank when it passed Into the hands of a receiver. The officials of the bank apparently had considered the money advanced this concern a dead loss and wrote it off the books by putting the amount given to the Golden Eagle against "bonds and warrants." The bonds and warrants represented stock of the telephone company supposed to have been given as a bonus with the purchase of the bonds, of which there was $800,000 in the bank at the time it closed. Moore Surrenders Paper. Receiver Devin said that when he first made an examination of the books of the bank he had no means of ascer taining whether the Goldep Eagle notes .had been paid and that it was not until after he had Investigated that he saw that something was wrong about the en tries on the books. He then asked both (Morris and Moore regarding this ac count. Moore, he said, had represented to him first that the only indebtedness of the Golden Eagle was a small over draft and one note for $700. making a total of about $8000. Moore, said Mr. Dev- (Concluded on Page 7.)