Morning Oregonian. (Portland, Or.) 1861-1937, February 01, 1912, Image 1

Morning Oregonian., February 01, 1912, Image 1

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Newspaper Page Text. Hwnitig Jjj 0tt$ mm. ' pnPTT.wn. OREGON. THURSDAY. FEBRUARY 1, 1913. PRICE FIVE CENTS. x VOL. LI NO. 15,971. , . . ' STEEL MEN PLEAD Too Late to Interfere Now, Is Defense. DISSOLUTION IS RESISTED No Secret Kept From Roose velt, Answer Declares. CARNEGIE HAS NO VOICE Rockefeller Declare They nave Had 5o Connection With Business Since 101 Answers Are to Be Filed Today. TRENTON. N. J.. Jan. tl. Absolute denial of alleged violations of tho anti. trust law la made by the rotted Statea Steel Corporation. Ita subsidiaries and directors. In their answers, whlrb will be filed tomorrow In the Tnlted States Court, to the Government's dissolution suit. Five separate answers will be filed, among; S3 defendants. The effect of its organisation, the corporation declares, has been to cheapen production, effect economy and Increase foreign trade from 18. 000.000 to ISO. 000. 000 annually within 10 years. So long; has the Government acquiesced In Its existence, the answer ays. that It Is now too late, as a mat ter of equity, to Insist that Ita organi sation waa Illegal. - All Told to Roosevelt. Nothing; was withheld from Presi dent Roosevelt by Messrs. Gary and Frlrk on November 4. 1907. the answer ays, when they sought bis consent to the corporation's proposed purchase of the Tennessee Coal A Iron Company. nor were the so-called Gary dtnnera productive of agreements to regulate prices. The answers made public tonight are those of the Eteel Corporation. Andrew Carnegie, John D. Rockefeller, John D. Rockefeller, Jr.. and Edmund C Converse. The Rockefellers make a Joint answer. The Rockefellers deny that they had an active part la tha formation or the management of the corporation, the elder Rockefeller declaring that he bas had no Immediate relation to tha Iron or steel business since 1901. Caraesle Slleat Faster. Mr. Carnegie says he bad no part In tha plana for organizing the corpora tion and no voice, direct or advisory. In Ita management. He admits selling tha Carnegie Eteel Company to the I'nlted Statea Steel Corporation, but denlea that the acquisition by the Car negie Company of Its subsidiaries was in restraint of trade. The answer of Edmund Converse, a director of the Eteel Corporation.. Is similar to the corporation's answer. Tha answers to be filed tomorrow,, with those filed Monday by the Minne sota group of land and mining com panies and five individuals named aa trustees, will complete the answers from all 6 defendants named In the suits. The next step will be the filing of replications by the Government, .which must be done within 10 days unless an extension of time be given. After that a Commissioner will be ap pointed to take testimony. Caraegle Aaawers Separately. The 13 allegations to which Mr. Car negie makes reply are arranged in the Government's bill of complaint under the following headings: 1. Conditions before the consolida tion or 1538-1900. 2. Consolidations 1J9S-1900. 3. Conditions leading to formation of I'nlted Statea Steel Corporation. 4. Formation of I'nlted Etates Steel Corporation. 6. Capacity and extent of properties brought under combination In 1901. . Acquisitions subsequent to the original combination. 7. Position achieved by the corpora tion through the ownership or control of coal, coke, iron ore. and transpor tation. 5. Extensions and earnings. 9. Charges as to the properties of various constituent companies. 10. Consolidations. 1 1. Pools and agreements. 12. Interlocking directorates. 13. Combinations other than written pools and agrements. Answering the first paragraph. Mr. Carnegie says he has knowledge of the allegations and does, not admit their truth. Greater Effleteaey Sought. He denies that the combinations grouped In the second paragraph were In restraint of trade, declaring that they were effected with the view of greater industrial efficiency and the legitimate) enlargement of business. He admits that the allegations In the third paragraph are correct in that It was the Intention of the Carnegie Com pany to continue enlarging Its capacity as the development of its business re quired; but It had no ambitions plana involving further elimination of com petition and restraint of trade and commerce. Answering the fourth paragraph. Mr. Carnegie says that he sold his stork In the Carnegie Company outright, and took no pat i in the organisation of t Concluded on Face 8.) RIGHT TO CONTINUE $10,000,000 DEED OF MORTGAGE FILED rOKTLAD, ECGEXE A EASTERN RAILWAY TO ISSUE BOXDS. Company Proposes to Start Work on Electric Line as Soon aa Weather Settles Franchise Sought. " EUGENE. Or.. Jan. JL (Special.) A mortgage deed given by the Portland. Eugene Eastern Railway to the Trust Company of America to guaran tee the Issuance of 310.000.000 of bonds, was filed for record here today. All the tangible propertiea of the railway company In Eugene. Springfield. Al bany. Salem and Corvallla. and the Cor Tallis Alsea Railroad are listed and described In detail. No mention Is made of rights-of-way now owned between Eugene and Mon roe, further than the section that all properties acquired in the future shall come under the terms of the mortgage. One million, two hundred thousand of the bonds are to be taken at once, without condition further than that a J50.000 mortgage on the Monroe line shall be paid off. Further bonds are to be Issued aa fast as new railways or power plants are acquired, but not to exceed $30,000 a mile for roadway. The million and over now available la fully aufficlent for the line from Monroe to Eugene, right-of-way for practically all of which has been so cured. Construction Is expected to tart Just aa aoon aa the weather settles. The road filed similar deeds at Al bany for legal record in Linn County and at Corvallls. Benton County. The company proposes to have -an electric line in operation between Cor vallls and Eugene this year, having al ready acquired IS miles of roadbed through the purchase of the Corvallls Alsea road, and haa applied to the Corvallls City Council for a franchise to operate a streetcar system In that city. NEW PROJECTS REJECTED Democrats on Rivera and Harbors Committee Reverse Attitude. OREGONIAN NEWS BUREAU. Wash ington. Jan. 31. Representative Hawley was today Informed that the Demo cratic majority of the rivers and har bors committee had tentatively decided to Include no new orolecta in the forth coming river and harbor bill, it having been discovered several million dollars can bo saved by this elimination. This la reversal of their attitude of yester day, and. while today's decision is not final. It ta likely to be ratified later. This will mean that the House bill will carry no appropriations for the Northwest, except for projects now under construction. On these project It Is expected that the recommendation of engineers will be largely followed. If the House decides to adopt no new projects, there will be numerous Senate amendments making appropriations for new projects that have been approved by Army engineers, and this will throw the matter Into conference, wnere tne Senate and House will fight It out. M'FARLANDF0UND GUILTY Newark Man Who Loved Stenogra pher Convicted of Wife Murder. NEWARK, N. J, Jan. 31. The Jury in the case of Allison M. McFarland, on trial for the murder of his wife by cyanide poisoning, returned a verdict of guilty of murder in the first de gree shortly before midnight tonight. The conviction of McFarland was mainly on circumstantial evidence. His wife met death on the night of October 17 last, when McFarland waa absent from borne, by taking cyanide of po tassium, which, the state alleged, Mc Farland had deliberately substituted for headache medicine. The state Introduced mere than 70 letters which passed between McFar land and his former stenographer In Philadelphia, Florence Bromley, In or der to marry whom, it was alleged. McFarland planned to get rid of his wife. PARKER REACHES SEWARD Mountain Climbers to Leave for Mo Klnley in Day or So. SEWARD. Alaska. Jan. 31. Profes sor Herschel Parker, of Columbia Uni versity, and Belmore Brown, of Ta coma, arrived here yesterday on the steamship Alameda. They will leave In a day or two for Susltna Station on their way to Mount McKinley. which they will attempt to scale from the northeast side. . Merl L. Lavoy and Arthur Aten, who are to go with the Parker-Brown par ty, are now relaying stores of supplies from Susltna Station. 150 miles from Seward, up the Susltna River. They have been delayed taking In stores by the hard traveling resulting from the soft Winter. ALFALFA TILDEN'S FARE Chicago Packer Says New Pancakes Are Great Wheat May Suffer. CHICAGO. Jan. 31. Edward Tllden. president of the National Packing Company, surprised his fellow de fendants In the United States District Court today by declaring that he had eaten a breakfast of alfalfa, served In the form of pancakes. "There is a great future for alfalfa." he said. "I predict that in five years alfalfa flour will be so Improved that It will be In general use. "It may become a substitute for wheat. When It gets to that point wheat will sail for SO cents a bushel.' : i MEXICAN ARMY l!l REVOLT AT JUAREZ 15 Reported Slain in Looted City. 2 AMERICANS AMONG DEAD Madero's Garrison Suddenly Rises Against Him. FIERCE SCENES ENACTED Troops Rush . Their ' Commander, Colonel Estrada, and In Second Wild Mutiny Is On Foreigner Flee to Safety In KI Paso. EL PASO. Tex.. Jan. 31. The garri son of Juarez, El Paso's Mexican neigh bor across the river, rose In revolt at 6:30 o'clock tonight and In half an hour were in possession of the city. Looting and promiscuous shooting pre vailed for hours. The commander of the garrison was thrown into prison, and the Chief of Police locked In with him. while pre vious prisoners were released. Americans resident in' Juarez and many Mexican officials and citizens fled to the American side. Shortly after midnight an Italian Burgeon, holding a commission in the Mexican army, returned from Juares and reported that he had counted IS dead. Including two Americans a man and a boy of about 12 years. The boy waa lying in the street, shot through the heart. The surgeon said most of the dead were near the custom-house. Mo Dead Are Found. Fleeing refugees. In a high state of excitement and alarm, brought wild rumors Into El Paso. There were re ports that 30 persons had been killed, but late tonight, when the shooting and looting bad practically subsided, reporters who searched the town were unable to confirm these reports. They brought back word that none had been slain. The outbreak began at 6:30 tonight, when the 300 Maderlsta soldiers in the Juares garrison rushed upon their com mander. Colonel Estrada, and the chief of police. Colonel Gallo, locked both of them in prison and released all pris oners In the city Jail. Stores Searched for Ammunition. Several hundred shots were fired into the air by the mutineers to ter rify the residents, and then stores In the city et Juares In which there was a possibility of obtaining arms and ammunition were looted. Selecting Captain Martinez as their leader, the mutineers drove all Ameri cans across the river, seised the Mexi can Central train that was about to depart for the national capital, and sent soouts south to blow up the rail road bridges and prevent troops from reaching Juares from Chihuahua or (Concluded on Pace 6.) LITTLE GIRL NO, THAT ISN'T v X INDEX OF TODAY'S NEWS The Weather. TESTERDATS Maximlum temperature, 63 decrees; minimum. 87 .decrees. TODAY'S Fair; easterly winds. National. Child labor' bill amended so as te protect privacy ot homes. Page 2. Steel Corporations pleads acquiescence of peat gives It equitable rlcht to continue business. Face 1- Fouttcs. Vote In Fourth Oklahoma District - deeply significant of Tail's growing strength. Page 2. Letters pour ta to Ben Selling arcing bim to become candidate for United States Senate. Face 20. Domestic. Ban Francisco Realty Board votes to In crease commissions. Pace -6. ' Cardinal CConnell welcomed borne by great crowds In Boston. ' Page 3. Boy Scouts welcome Baden-Powell to New York. Pace ft. Weather expert Invents "frost alarm- that makes automatlo forecast. - Face B. Dei-row will ask for much time in which to entsr plea. Face 4. Cincinnati prepares to -welcome" hobos to convention. Page a. Great Britain fortifying Fanning Island la Pacific Page 1. Mexican army In revolt at Juarez; 1ft re ported slain, city looted. Pace 1. Labor unions object to system cards in arsenal. Paca ft- Detectlve Burns loses temper at Lorlmer bearing. Page 6. Sports. Murphy-Hogan bout la draw. Pace 8. New salary limit rule not vital In Coast League. Page 8. All-year "bush" league for San Francisco is proposed. Paca s. . Proposal to divide North Pacific racing cir cuit to be opposed today. Pace 8. Factfle Northwest. Warring Idaho legislators, in calm, adjourn sine die. Page 9. Court forgives "pure-minded youth" alleged to have cursed Judge In "Dr." Haxaard trial. Page 9. Jackson County Clerk Coleman and Game Warden Klnley at peace. Page T. Hoqulam would recall minister-Mayor. Page 7. Quake In Alaska is severest aver recorded, lasting 60 seconds. Paca 1. Portland. Eugene Eastern Railway flies mortgage deed guaranteeing 110.000.000 bond Issue. Pace 1. Witness In Tonne will case declarea $500 bribe was offered her for favorable testi mony. Page 7. Commercial and Marine. Bulls mm In control of the coffee market. Pace 19. New record prices tor season in Chicago oat market. Pace IB. Steel and Union Pacific stocks break in Wall street. Face 19. Oralnhandlers, longshoremen, shippers and grminmen In four-cornered fuse concern ing trucking. Page 18. N Eastern hop deslers say prices will bo high. Page 19. Portland and Vicinity. January statistics show Portland Is main taining its marvelous progress. Page 4. R. O. Dun A Company report on trade con ditions for 1011 and see bright outlook for 1912. Page 13. T. B. Wilcox emphasises necessity of open ing direct market to Orient at Ad Club luncheon. Page 12. Msthodiet bishops In campaign for -Willamette University fund. Page 11. Witness called by prosecution says his sym pathy Is for Wilde. Page 1. Thlrty-slx students graduated from Lincoln High School. Page 14. Estimate Is made that farmers hold one tenth of crop, or 6,000,000' bushels of wheat. Page 14. Gary. Indians, school Instructor, raps Boy Scouts. Paca 12. PEARL FISHERMEN SEIZEP Italian 'Warship Captures Ship and Bombards Two Villages. PERIM, Jan. 31. An Italian warship took ten prisoners from a native pearl fishing vessel yesterday, and killed two of the men who tried to escape by swimming ashore. The warship bombarded two coast villages on January 24 and January 37. It is expected that Ilodelda will be bombarded tonight. MY DOG. HE JUST FOLLOWS EVERYTHING. QUAKE ALASKA SEVEREST KNOWN Tremors Felt in All Parts of Country. GLACIERS GROAN AND CRACK Valdez, Cordova, Fairbanks and Seward Shocked. PEOPLE RUSH TO. STREETS Great Excitement Caused) by Vibra tions and Much Speculation Re sults as to Possible Changes In Floor of Ocean. VALDEZ, Alaska,. Jan. SI. Violent earthquake shocks, the severest ever experienced, were felt ever various aec tions of Alaska today, the movement being from northeast to southwest, with oscillation through an arc of six degrees. From Cordova came word that heavy shocks were felt far into the interior. The temblor was felt on the coast as far west as Seward, Fairbanks and 350 miles Inland, with reporta that the shock waa most severe in the Tanana Valley. Buildings Sway Alarmingly. At Cordova the first shock lasted 10 seconds and caused buildings to sway alarmingly. Everyone rushed into the street for safety, but no damage was done. A wireless message from St. Paul Island says all are well on the Pribyioff Islands. ' ' Nine minor tremors of brief duration followed the flrBt shock. Where there are only two-story wooden buildings no damage was done. Word has not been received concerning the effect of the earthquake on the glaciers and the mountains. Glaciers Groan and Crack. " The glaciers In the Copper River district groaned and cracked ominous ly during the earthquake. Reports re ceived tonight from points along the line of the Copper River & Northwest ern Railroad say Sheridan, Miles and Child's glaciers gave off a sound re sembling the booming of cannon as the ice ground and cracked. The terrific cannonading was heard 12 miles away. At Flagpolnt the rumbling of Sheridan glacier was heard SO minutes after the first shock subsided. The ' crevasses in the glaciers are filled with snow and It Is Impossible to ascertain whether the glaciers moved forward. It is believed, how ever, that the shock has so shattered. the ice that when the glaciers become warm In the Spring they will advance and discharge more rapidly than ever before. Owing to the warm Winter and the strong northwest current, ascribed to CConcluded on Page .) ME AROUND AND BARKS AT BRITAIN FORTIFIES SOUTH SEA ISLAND FAN2TLVG IS LOOKED TJPOV AS STRATEGIC POINT 3TOW. English Syndicate Which Has Taken Over Group In Pacific Eager for Opening of Canal. HONOLULU. Jan. SI. Confirmation of a report that England was preparing to fortify Fanning Island and to main tain a coaling station there was re ceived here today in private advices from Fanning Island, which said that the steamship Makura had Just landed several big guns on the island. SEATTLE, Wash., Jan. St. Reports from Honolulu that the steamer Ma kura has landed big guns on Fanning Island In the South Seas indicate that the British government is carrying out a programme announced last Novem ber, when a syndicate of British capi talists took over the group. At that time it was said that the syndicate planned to establish a coal ing station there for use' of merchant and naval vessels, it being considered that the islands would prove of great strategic value after the opening of the Panama Canal. HORSES TAKEN FROM FIRE Shops and Barn Barn Adjoining ... First-Street Bridge. Twenty-six horses were rescued from a burning building by policemen with the entire upper part of the building in flames and the fire drop ping down Into the stalls occupied by the terrorized brutes. The fire, which broke out at 650-652 First street at 1:30 this morning, gained considera ble headway before the alarm was answered. The barn is in the basement under the First-street bridge, and shops oc cupy the top floor. Patrolmen Black man. Shaffer and Roberts, and Police Captain Keller had considerable diffi culty In taking the horses from the blazing barn, many of the animals striving to rush Into the building after being taken out. The building, owned by Albert Shank, who lives on Second street, near Hall, is valued at 11000. Insur ance is $400. The stable was conduct ed by Henry Kopp and the horses are the property of street cleaners. The top floor, level with the bridge floor, was occupied by the shops of A. Gold- blatt, cobbler, and H. Levoff, plumber. SUFFRAGISTS TO . INVADE Mrs. Hutton Sends Campaign Para phernalia From Spokane Region. SPOKANE, Wash.. Jan. 31. (Spe cial.) Three hundred pounds of suf frage literature over the Washington "Votes-for-Women" fight, together with banners, transparencies and other campaign -paraphernalia, will be shipped to Oregon suffrage headquar ters this week by Mrs. May Arkwright Hutton. Mrs. Hutton will follow the shipment later and plans to take an active part in the Oregon suffrage fight, she an nounced today. "I have been requested by Mrs. Abi gail Scott Dunlway, head of the Ore gon Suffrage League," said Mrs. Hut ton, "to give her the material left from our campaign. I am accordingly ship ping the last mementoes of the 1910 fight here. Some of the left-over lit erature previously went to California. "Later I plan to go to Oregon to lend personal aid and will talk in favor of suffrage whenever opportunity of fers." MUCKRAKER NOT TO SPEAK University of Washington Platform Closed to C. P. Connolly. SEATTLE. Wash., Jan. 31. (Spe cial.) University authorities vigor ously deny that Christopher P. Con nolly, the muckraker, who Inveighed against former Secretary R, A. Bal linger in Collier's Weekly and who has an article in February Everybedys on "Big Business and the Bench," will speak at the University. It Is hinted that Connolly is too partisan in his utterances to be per mitted to speak at the university as sembly. Then, too, since the regents' ruling against assembly speakers -who appear for personal advertisement, more care is taken as to who is per mitted to air his views before the stu dents. Professor O. H. Richardson, chair man of the assembly committee, de clared that he never heard of Con nolly and let It go at that. WITNESSES ARE WARNED Poisoning of Throckmorton Succeed ed by Bribe Scandal In Sneed Case. FORT WORTH, Tex., Jan. SI. Not only were state witnesses in. the trial of John B. Sneed warned today by Spe cial Prosecutor Hangar not to associate with, and particularly not to drink with strangers, but one of the first ve niremen called this afternoon made a statement tending to show that an at tempt had been made to bribe him: The warning as to the drinking with strangers supposedly was prompted by the sudden and mysterious illness of Edward Throckmorton, an important state witness. He is believed to be the only person who heard a significant remark made by Sneed after he shot and killed Captain A. Ci. Boyce in a local hotel. Throckmorton, who was desperately 111 last night, was some what Improved today. ISIAIE'S WITNESS UPHOLDS WILDE He Also Contradicts Self as to Bonds. STOWS TESTIMONY REFUTED Morris Says Repudiated Sig nature Is His. DEFENSE SPRINGS LETTER Prosecution's Letter-Press Copy of Document Does Xot Jibe With Original Immunity Pact Again Denied. FIVE FEATURES OF DAY IN TRIAL OF WILDE. George Estes, witness for the pros ecution, gave contradictory testi mony relative to the alleged sale and delivery by the Oregon Trust & Savings Bank of $40,000 of Puget Sound telephone bonds to Wilde. It Is alleged by the state that these bonds were delivered by Wilde to Morris as part of his commission from the Omaha telephone lond deal. The defense sprung a surprise by introducing the original of a letter from Morris to Wilde, dated Febru 18. 1907. relating to the deposits ot the Oregon Trust and Its ability to purchase the $500,000 block of Omaha telephone bonds, - after the state had Introduced what purported to be a letter-press copy of the orig inal communication of that date and It had been positively Identified by Morris as a letter-press copy of the same. Morris reaffirmed that he had not been promised Immunity by the pros ecution for his testimony. The tats will renew Its request for a dis missal of pending indictments against the ex -cashier. Morris Identified his signature ir, the bond-subeciiptlon book In which he signed for the 1300.000 block of Omaha telephone bonds. Frank H. Stow, another material witness for the prosecution, had testified posi tively that the signature was ' not that of. Morris. Estes. witness for the state, de clared on cross-examination that his sympathies were with Wilde, whom he believed was being "persecuted" as a preliminary "to getting some money out of him." Called by the prosecution as one of Its principal witnesses. George Estes not only discredited his direct testi mony yesterday by making contradic tory statements regarding the bond transaction about which he testified, but on cross-examination admitted that he had sympathy for the defend ant, Wilde, whom he believed was be ing "persecuted rather than prosecut ed" in the hope eventually of getting some money out of him. From 'November, 1906, until May, 1907, Estes was in charge of the bond department of the Oregon Trust & Savings Bank, although he was not Anally relieved of the responsibility t t Vl nnuUi rtn a a r n B rul f a n nt h bonds owned by. the bank until late In July, 1907. was called by the 9 tie state to prove We purchase from tha bank May 7, 1907. by Wilde of 140.000 worth of Puget Sound Telephone bonds, which, it is alleged by the prosecution, were delivered later to Morris as the balance of his share of the 190,000 commission from the aala to the bank by Wilde of the block of 500,000 of Omaha telephone bonds. , Wilde's Check Introduced. On direct examination by Mr. Clark, Estes testified that the sale of the $40,000 worth of Puget Sound tele phone bonds was made Indirectly through Morris, but he was not able to say in what manner the securities were paid for. Later, in his cross examination by Mr. Malarkey, Estes testified that the sale was made direct to Wilde, who paid for the bonds with a personal check for 140,000 drawn against his account as agent. The witness also identified Wilde's check for 140,000, dated May 7, as tha evlfence of value paid at the time and secured by the bank from Wilde In payment for the securities. "I had left the service of the bank seven days before the credit slip showing the sale of the $40,000 worth of Puget Sound bonds on May 7, 1907, was made out," said Mr. Estes, after saying he was "ostensibly" manager ot the bond department of the bank from November 1, 1906, until May 1, 1907. "The bank officials were not able to find a man to take my place, so I re mained the custodian of the bonds owned by the bank until some time in July, when I turned all of these cer tificates over to my successor, Mr. Ellis. During fhe time I was respon sible for these securities, they were kept in four steel boxes to which I had the only key. I did not allow any of the bonds to get out of my posses sion until they were properly account ed for and receipts given. Bonds Ordered Delivered. "On May 7. 1907, Morris rame to my desk and told me that Puget Sound telephone bonds to the amount of 140. 000 had been sold, as I remember it. to I. L. Willis. He told me to make (Concluded on Page 12.) . " i r