OiiEGOiAJN, JsAl IKDAI, Al'GLsT 3, iiii'Z.
DRIVER OF POLICE
IL OF STEEL
!
UNITED STATES SENATOR WHOSE RESOLUTION PROCLAIM
ING NEW INTERNATIONAL DOCTRINE PASSES SENATE.
AUTO EXONERAIEO
TRUST DISAPPROVED
llj.M.LIi.lUi tl)V ) iJMn ..(.")..J-,.f.M.V ..
Policeman Leisy, However.
House Committee Would Cure
Evils by Publicity and
Law Enforcement.
Failed to Exercise Due
Precaution, Says Jury.
r.:::;?v:;:.;;
C0STELL0 DEATH RELATED
MANY ABUSES ARE FOUND
GUNTFir
SPEND YOUR VACATION
i I j ar s v ... ".3
Report Tells of Stock Watering, Cre
ation of Panics to Further Own
Ends and Price Juggling Mi
nority Would Dissolve Trust.
WASHINGTON. Aug-, t. The report
of the majority of the committee of the
House of Representatives, directed more
than a year agro to investigate the
United States Steel CorpoVatlon, was
submitted to the House today by Repre
sentative Stanley, of Kentucky, chair
man of the committee.
The report of the majority deals with
the steel trust from its inception and
describes the various steps by which
J. P. Morpan and his associates built
up the corporation. In addition to rec
ommendations for legislation suggested
as remedial, the Democratic members
of the committee make general accusa
tions against the men responsible for
the organization.
Morgan and AocIate Grilled.
Morgan and his associates are held
up as being the beneficiaries of enor
mous profits realized from the over
capitalization of the subsidiary com
panies of the Steel Corporation and,
later, of the corporation Itself.
Judge E. H. Gary and his dinners
to steel manufacturers are credited with
a scheme by which prices and territory
were controlled by the steel trust after
pooling agreements were discarded.
Ex-President Roosevelt Is indicted
for making the control of the
' steel trust absolute, and is charged
with being responsible for the gigantic
stature which the trust has attained.
The corporation Is flayed as an enemy
of organized labor, and accused of
lowering the sociological conditions of
its employes and of contributing to
American industry workmen and work
methods un-American and foreign to
the best Interests of labor.
Principal- stockholders of the Steel
Corporation are accused of exerting a
powerful and injurious influence on
the business of the United States by
means of control exercised through in
terlocking directorates of railway and
industrial organizations. Tables are
printed which show the many com
panies in which steel trust directors
are officers or directors.
Corporations' Activity Bared.
The activity of the corporation In
politics is laid bare and its Influence
described, and the steel trust as a tar
iff beneficiary and its part in the
making of the Payne-Aldrich tariff act
re touched upon by the Democrats.
In Its comment the committee says:
"How a panic which had persistently
resisted the combined efforts of the
Federal Government and John D.
Rockefeller and J. P. Morgan & Co.,
ind remained in unabated fury after
Morgan and Rockefeller had turned
oose JfiO.000.000 and the Federal Treas
jry $25,000,000 more, should suddenly
De stilled by this manipulation of
Srant B Schley's loans lias not been
explained either by Mr. Roosevelt or
bv any other witness. Yet it is urgent
ly maintained that the panic continued
prior to this magical scoop of secur
ities and that the instant the Steel
Corporation acquired the Tennessee
Coal & Iron Co.'s stock. It subsided
Instantly and permanently."
Tie committee reports that on Octo
ber 26, 1907, President Roosevelt is
sued a statement congratulating Sec
retary Cortelyou and the business men
who headed off the panic. The com
mittee says of this:
"Up until the time of this interview
the yteel Corporation owed its success
and its permanency to the power and
skill of the financiers who had created
and the Iron masters who had directed
its operations. Since that time Its
dominance had been due in no small
measure to the sudden, ill-considered
and arbitrary flat of the Chief Execu
- tive.
Roonevelt la Blamed.
The President's refusal to interfere
was an absolute warrant to proceed.
A suggestion from him to the Attorney-General
was equivalent to a com
mand, and upon a refusal of the Attorney-General
to act, the corporation
was immune. This Is admitted by Col
onel Roosevelt, and he unhesitatingly
assumes full responsibility in the mat
ter." The committee .recommends legisla
tion to cure trust evils and to meet
existing conditions. It condemns the
Steel Corporation but does not invade
the jurisdiction of the United States
court In which there is now pending a
government suit for Its dissolution.
Th report was signed by the chair
man and Representatives Bartlett of
Georgia; XicGilllcuddy. Maine; Beall,
Texas, and Littleton, New York, Demo
crats Representatives Gardner, Mass
achusetts; Danforth. New York; Young,
Mii-higan. and Sterling. Illinois. Re
publicans, dissented from the report of
the majority. Representative Sterling
submitted bis individual views In a
minority report, and Representative
Littleton, Democrat, dissenting fspm
the recommendations of the majority
for amendment of the Sherman anti
trust law. filed his views.
Minority Report Framed.
Representatives Gardner and Dan
forth will unite in another minority
report, which Representative Young
will sign, adding to it his own find
ings as to the facts surrounding the
organization and operation of the Steel
Corporation.
The Government's suit isNto discover
if the United States Steel corporation
is 'in violation of the Sherman antl
trust law."
In summing up its conclusions the
mjirity report says:
"The control of corporations by the
Federal Government, as recommended
by Mr. Carnegie. Judge Gary and oth
ers, is not approved. Whatever may
be the evil results of the elimination
of competition from the steel business,
it does not justify such a remedy and
could not be cured by it. Such a con
trol, semi-socialistic in Its nature, is
beyond the power vested by the Con
stitution in the Federal Congress.
"The abuses mentioned in this report
can' in a great measure be remedied by
giving to the operations of the United
States Steel Corporation and other like
corporations the widest publicity, and
by the strict enforcement of laws spe
cifically inhibiting the employment of
cunning devices by which an unfair
advantage over competitors is secured.
Profits ,Not Reasonable.
"The enormous earnings of the Steel
Corporation are due not to a degree
of integration of efficiency not pos
sessed by its competitors, but to the
ownership of ore reserves out of all
proportion to Its output or require
ments and to the control and operation
of common carriers, division of rates,
end the liberal allwances obtained
from other concerns through Inequit
able and inordinate terminal allow
ances. The business of production and
transportation should be absolutely
- . j--..jj - - - SAv&Mmw4
HEXRV CABOT LODGE.
V
separate and distinct, and no industrial
concern should be permitted to own
or operate an Interstate carrier."
Representative eau, or Texas, mauo
a study of the Gary dinners' influ
ence on the steel trade. He wrote that
portion of the report which deals with
them. His comment on them follows:
"Accepting the dinner of January.
1911, as fairly typical of the rest, and
the things said and done there as fairly
representative of the things said and
done at the others, we think the con
clusion is Irresistible that the Gary
dinners were instituted as a means or
conveying to the entire steel and Iron
industry information as to what the
attitude of the United States Steel Cor-
Doratlon was upon the questions or
output and prices and of impressing
upon all engaged in the industry tnat
it was the part of wisdom and prudence
to govern themselves accordingly.
Trade la Restrained.
"We further believe that by this
means prices were maintained, output
restricted, territory divided, competi
tion stifled and trade restrained, just as
certainly. Just as effectively and Just
as unlawfully as had been done under
the discarded pooling agreements of
former years."
In discussing the ownership of rail
roads and steamship lines by the Steel
Corporation, the report says:
There is no question that public in
terest requires a segregation of rail
roads and the Steel Corporation. The
control of such public agencies by an
industrial corporation carries with it
In addition to the advantages which
this record discloses, possibilities of
even greater abuses."
Andrew Carnegie s steel making
methods and his desire to extend
bis business are held out as the mo
tives which compelled J. Pierpont
Morgan and his associates to organize
the Steel Trust.
Reoresentative Sterling, of Illinois, a
Republican, disagreed from his col
leagues on the committee and submit
ted the following views to the House:
I heartily favor governmental regu
lation of corporations engaged in in
terstate commerce. The first step In
this direction is legislation providing
for Federal incorporation. Such legis
lation should limit the capitalization
to the actual value of the corporate
property,, and thus eliminate from the
commerce of the country that abomin
able fiction of values commonly termed
watered stock."
"The extent to which fictitious val
ues have been created by over-capitalization
of corporate property has
shaken public confidence in corporate
securities and made the public mind
distrustful of large business enter
prises 1
"Such legislation should provide ror
a system of reports to a commission or
other Govsrnment agency, giving full
publicity to the manner and purpose
of the organization, its methods of do
ing business and Its profits. It should
provide for rigid supervision of all
issues of securities and prohibit one
corporation from holding stock in
another and limit the extent to which
two or more corporations may have
common directorates.
Recognition of Trusts Bad.
""The proposition that the Govern
ment shall recognize and permit to ex
ist, trusts, monopolies and combina
tions in restraint of trade and then
regulate them by legislative control
is one calculated to suppress Individual
enterprise and destroy competition. It
is conceded that such a policy would
result necessarily in the fixing of
prices of the products of sucbj combina
tions, by law. If the Government fixes
the price of the finished product, must
it not also fix the price of the raw ma
terial and of the labor that converts
it?
"The Federal Government by proper
legislation, can resolve great combina
tions Into their Integral parts and then
by wise and Just regulation of corpor
ate powers maintain a natural and
healthy condition of trade. It is plainly
its duty to do so.
NICARAGUA ASKS FOR HELP
Minister Velasquez Would Put End
to Present Disorders?
PANAMA. Aug. 2. Manuel E. Velas
quez, the Nicaraguan Minister here,
said today he hoped the friendly offi
ces of the United States might stop
bloodshed and restore peace to the
Nlcaranuans.
News that President Adolph Diaz, of
Nicaragua, bad dismissed General Luis
Mena from his office as Minister of
War and imprisoned him and that
Mena's son, the military commando of
Granda, la tn control of Granada. Mn
daime and Masaya. where General
Mena had stored big quantities of war
rrfunitlons. Is confirmed.
Senor Velasquez says there Is danger
of famine In Nicaragua because of the
scarcity of flour, corn and beans, due
to the long drougnt.
WASHINGTON. Aug. 2. Followers
of former President Zelaya, of rvic
aragua. are preparing to rally to the
revolution, according to dispatches to
the State Department today from Port
i.imon, Costa Rica.
WORLD IS WARNED
Senate Passes Lodge Resolu
tion, Saying "Keep Off."
VOTE ALMOST UNANIMOUS
Cummins Says Stand Being Taken
From Which United States May
Later Have to Recede With
Humiliation and Chagrin.
(Continued From First Page.)
ion that the resolution did not make
clear the relation between a foreign
government and a foreign corporation.
"I do not deem it wise for the United
States to say that the stock of a cor
poration owning land around Magda
lena Bay should not be held by citizens
nf another country without some rela
tion ot the stockholders to their gov
ernment," said he.
Senator Cnmmlns Pessimistic.
Senator Cummins warned the Govern
ment from taking a position from which
it might be compelled to recede with
chagrin and humiliation.
A the Senate proceeded behind
closed doors, many Joined In a demand
tn know what effect might follow a
pronouncement by the United States
that it would guard Its approacnes to
the extent of keeping foreign corpora
tions from acquiring land at advan
tageous point?.
Cnatif T .nH t'o rifwlAreri the DrODOSal
. K.nn H tzf than ttlA TlfPfMlpnt fol-
lowed by England when It protested
against the acquisition ot a navai site
by Germany on th coast of Morocco,
n tha oa of nthor nations that had
given notice to the world that they
WO U 1 (1 1QU& IV Lin.ii u n ii v J J
. n A r. it th.lr RiirrniinrllniTR.
conati Rtnnp miestioned whether
Japan might not consider the posses
sion of the fnilippines Dy tne uuiieu
States a menace to her safety under a
view similar to that of Lodge's.
Senator Root, who," with Senator
Lodge, explained the scope of the reso
lution, expressed the view that the
United States was not Inconsistent in
its course, but was setting lortn a poi
icy well recognized by the world. -
WILSON TO CLEAR FOR WAR
(Continued From First Page.)
newspaper contribution committee and
the committee on organization of clubs
and auxiliary election bodies were In
full swing.
Calls Declared Complimentary.
Of the visits today of Senators Cul
berson of Texas and Hoke Smith of
Georgia, and Representative Henry
Clayton, chairman of the House Judl'
clary committee, the Governor said lit
tie.
"They were complimentary calls," he
remarked. "We did not discuss cam
paign business."
Governor Wilson rejected today the
suggestion that the National Guard of
New Jersey take part In the ceremonies
here on August 7, notifying him of his
nomination. He believes the military
unnecessary in a political affair of that
kind.
Chairman Grosscup of the New Jer
sey Democratic committee said today
the decision of Governor Wilson not to
resign his office during the -present
campaign would please Democrats
throughout the state. Speaking of his
intention not to resign, the Governor
said:
"I had been virtually unanimously
advised by my friends and newspapers
of the state not to resign."
' Resignation before the coming elec
tion. It was pointed out, might mean
succession by a Republican President
of the State Senate
Hotchklss to Oppose Payne.
NEW YORK, Aug. 2. Chairman Wil
liam H. Hotchklss, of the National
Progressive party in New York State,
announced today that William Gould,
of Wayne County, would oppose Sereno
Payne by running against him for Rep
resentative to Congress on the third
Daf Units t.
Man, DTlvlrig Patrol Which Ran
Ilown Citizen, Visibly Affected as
He Tells of Hurry-Up Call
Which Caused Fatal Injury.
-ri.. D.i.man TimiBrlas E. Leisy,
who was at the wheel of the police
when the natrol struck Maurice
N. Costello and injured him fatally
Thursday night, did not exercise ouc
precaution in attempting to pass the
streetcar from which Costello was
.tuhtinff hut that he was not crim
inally responsible for the accident, was
the verdict of a . Coronors jury iasi.
evening.
For over three hours yesterday after
noon the Jury heard the testimony of
witnesses to the accident, including ftie
,- rw officers who were in the
police patrol, and two persons who had
seen the acciceni irom i.ue once.
t-.it r paiika Slnver. Cantain Moore
and other officers had testified to the
good previous record or ieisy, .eiay
himself took the stand. He was visibly
broken in spirit, and toward the latter
part or nis examination tumu
restrain the tears.
. . Urol r? irfnr war nresent
and questioned the witnesses on behalf
m . l i ...).. th rfiereflKed. and
Ol Hie iciaii'co v.
Attorney A. Walter Wolfe appeared for
the patrol onver. a iiuim u.uej..v
in fmnr nf Patrolman Leisy
was that in all his career of six years
as patrol driver ror tne t-uhuc
. i. -. A fha vaffon and of the
mem, uum " 1 "
automobile, he had never had an ac
cident, and had never so mutu .u
nixtosi r.rateh on anyone. In Its
verdict the jury said:
Dne Precaution Lacking,
4 that while the driver
XIIO JUijr initio ......
of said patrol Is not criminally respon
sible lor tne aeain ui uevco.-,
. . v. . irivpr tfiiri not ex-
Deneve tuiiL c-u " ' - -
erclse due precaution in attempting to
. . i I 1 .1 nf aalA par
pass on tne ngni-imuu -
while said car was coming to a stop.
The accident occurred at Sacramento
street and Union avenue. According
. u .rtYiyinntnrR of the train.
which consisted of two cars; Costello
was struck almost immediately
he alighted from the car.
There was a discrepancy between the
statements of the car conductors and
. i - nrh.thap nr not Costello had
attempted to cross the street. Botn
conductors saia.' umi -"""'" "-;
walked straight ahead. One said he
had walked six or seven feet and an
other that he had walked two or three
steps before he was struck. Patrolman
Leisy, however, said he walked about
half way to the curbing and then
turned back In apparent coniuai.
Leisy Unaware of Injur?'.
. t . i ,i . flpivA tn the ricrht of
Costello and after he had struck him
was not aware he nao. injurea nun
..ntn Informed so by Patrolman Blair,
who sat next to him. testified the
driver. A. E. Johnson, a ooy, wuu
ji nn th. ciirhiner and wit-
was bltuiuiiiB " . , , . , .
nessed the accident, sided with the
trainmen in saying tnai w"'" -.ir
walked a few steps and had not
attempted to retreat.
As to whether the siren was blowing
and regarding the speed the statements
of the car crew and of the patrol force
were at variance. . a.
i hA heard no siren
tne moiuiuiau, -
when the car had stopped and that he
heard it nrst wne.n tne emtiB'w
aa v. Dtflp conductor of
was buuuucu. " -
the first car, said the speed of the pa
trol was between sd auu
, i i . ...oo ni-nhnhlv onlv a sec-
nour anu L " "- , ,
ond before the collision that he heard
the siren blow. J. (Jncnion, u''
eoiH that Althoueh he
ot me ' . , , .
saw the automobile coming a block
away he heard no siren uniu juoi
. iat Me estimated ths
tore mo
Bpeed at from 30 to 35 miles an hour.
As to tne speea, an "
- . i h. T7hlfiA. Pa
trolmen ic.i wcio " t
trolmen Leisy, Blair and Wellbrook,
gave It at between is ana u..ic
hm.r Johnson also placed the speed at
20 miles an hour. They were all posi
tive that the siren naa oeen
continuously from the time the patrol
left the station until the accident, with
the exception of a few Intervals that
were not more than three seconds at
the most. Weight was given their
testimony by the statement of H. E.
. - a -io i rtfrinf fnr t n a Fort-
ji eaj , biov.u. -
land Railway, Light & Power Company.
Meade was going souxn on
a tA that ha hoard the siren
cycie Him wv tn.-
of the automobile a long distance away
and had stopped nis motorcycle .u..
the intention of turning - around and
following It as soon as it came up.
Chief Exonerates Leisy.
After hearing the evidence Chief
Slover exonerated Leisy of all blame.
I am satisfied that the accident was
.u.hi. and that the ba-
an unttvuiuauio - -- - - -
trolman was doing the best under the
circumstances, i ao noi pruyuoo i i.
any action against him," he said.
Mayor Rushlight declared yesterday
that he would be satisfied with the
verdict of Chief Slover on the matter.
. ...itminorr It was shown by
Captain Riley, who Issued the orders
for the patrol to go out. that the call
was an emergent one, and that he had
told the driver to make all haste. The
call was to 1294 East Twenty-eighth
street, where it was reported that W.
E Reese was threatening murder.
'An excited voice called over the tel
ephone and said that an officer was
wanted right away. He said that a
man was patroling np and down the
sidewalk, threatening to shoot anyone
that came near him, that his wife was
under the bed and that the whole
neighborhood was excited," said Cap
tain Riley. ,
Patrolman Blair, who was at the desk
when the first call came in, said he
was convinced that they were going
after a "desperate man. about to kill
half of the neighborhood."
Speed Judgment Expected. s
Chief Slover testified that in emer
gency cases he expected the officers
to use their judgment as to speed.
Orders that he had Issued- regulating
speed did not apply in cases such as
the one in question, he said. He com
mended Leisy as a careful driver, and
said that 20 or 21 miles an hour would
not be an excessive speed under the
circumstances. "
Going in the same direction as the
streetcar. Patrolman Letsy had been
driving on the left-hand side, it was
shown. When nearing the north
bound car he noticed a streetcar com
ing toward him and unable to pass to
the left of It on account of an ob-
- . i t that nnint. HllA to COn-
struction work on a new building, he
. . . . ; l. .
star
rted to cross io me !''.
it - jpKta nn tha left hand side
of
the street where there is a car track
.1-- 1. nlAor" aairl Tainv. " Ko T
1 1 lilt. WO,. to - . v ' -
a time before the accident I was going
between 20 and 25 miles an hour, but
if
PERSONALLY CONDUCTED
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Leave Portland August 7th, 7:00 P. M, via S. P. & S. Ey.
Leave Portland August 8th, 12:15 A. M. via Seattle
Special Standard Sleeping Car Leaves Seattle 9:00
A. M., August 8. Leaves Spokane 10:15 P. M.
Returning
Arrives Portland 7:45 P. M. August 21st
A Delightful Two
Weeks' Trip for
Including Round Trip Ticket, Sleeping Car Berth and All
Expenses in the Park.
For detailed information apply to
H. DICKSON, 0. P. & T. A., 122 Third Street, PORTLAND
W. A. ROSS, A. G. P. A SEATTLE, WASH.
GREAT NORTHERN RAILWAY
when I approached the car from which
Costello emerged, I am positive that
my speed was not more than 20 miles.
I was 60 feet behind the car when 1
started to cross over, and was sound
ing my whistle continuously.
"When I was only 20 feet away Cos
tello got out and started to cross over
toward the sidewalk. I turned the
wheel to pass him to the left, but he
HAtitntA! oftar hA wak about half way
across and then turned hack. I then
tried to pass him to the rlgnt. w nen
I passed him 1 believed that I has
missed him, and I said to Patrolman
Blair:
" 'Did I hit him?"
" 'Yes, you'd better stop,' replied
Blair, and I did so. We stopped a mo
ment, and as soon as he was inside
the store, in care of the doctor, we
hastened on."
Dr. J. D. Fenton, who attended Cos
tello at the hospital, described the in
juries. He died from a fracture of the
skull, .testified Dr. Fenton. At the
hospital he was unconscious, vomiting
blood and evidently suffering great
PaThe body of Mr. Costello is at the
undertaking establishment of J. P.
Finley & Son. Funeral arrangements
have not yet been made.
"KID" M'COY FREED ON BAIL
Prizefighter's Attorney Attacks
. Woman's Statements.
LONDON. Aug. 2. "Kid" McCoy, the
"American prizefighter, charged with
larceny, said to have been committed
at Ostend, was released on bail today,
pending the arrival of papers from
Belgium, when his case was brought up
in the' court. McCoy's attorney argued
that the only charge against his client
was made in uncorroborated declara
tions of a woman who had been ar
rested as an accomplice of the real
thieves. Many Americans were in court
during the hearing
Member or Lee's Starf Dies.
SAN FRANCISCO, Aug. 2. General
WHITE MOTOR
TRUCKS
are a striking example of the
survival of the fittest. Just as
Motor Trucks have, proved to
be the most satisfactory
method of commercial trans
portation in practically every
line of service, so White
Trucks are proving the most
efficient, economical and re
liable among motor trucks.
White Trucks'have set a
high efficiency standard that
makes them pre-eminent in
the Motor-Truck world, and
have shown Motor - Truck
users what they should obtain
In economy, durability and
low cost of maintenance, that
makes It impossible to satisfy
them with any other means of
delivery or transportation.
WHITE CAR AGENCY,
Portland, Or.,
Sixth Street, at Madison.
Your Family's
, Health!
Without a cent of extra
cost, you can have the
kind of sewer pipe in Port
land streets that won't
disintegrate and pour out
deadly fumes; and' it is
made at home, too Port
land Glazed Cement Pipe..
EXCURSION
TO
S
John M. Baldwin, one of California's
earliest pioneers and a member of the
personal staff of General Lee during
VIEW
Own a homesite in the country', yet near to the city. View Acres
are on the Oregon City Electric, about half way between Portland
and Oregon City. A wonderful view, taking in both Portland and
Oregon City. A place where you can build you a home and live
in comfort. Call, phone or write for map and price list.
Northwestern Trust Company
2d FI. Wilcox Bid. Phones Main 351 7-A 7340
The ideal entertainer
Of all the purchases you ever made, none ever
brought so much pleasure into your home as the
Victor-Victrola.
Enjoyed by young and old gires every one the
kind of music he or she likes best.
And there's no better time than sT0W to get your
Victor-Victrola.
We will deliver any stjie of Victrola to your home
on approval. Then, if you wish,
Pay Only $1.00 Down and $1.00 Per Week
I STORE OPEN TONIGHT
Morrison Street at Seventh
fcgfei Two Sunday Specials
at the price of ordinary ice cream. Pure Cream Peach Ice
Cream the delicious crushed, fresh fruit. A rare treat.
Also our famous Apricot Sherbet. Just for Sunday at
these prices. 60 cents quart, 2 quarts $1.00; bricks, 73
cents quart, two quarts $1.20.
169
FOURTH
STREET
'
the Civil War, died today at the home
of his sister-in-law. Mrs. Janet Bald
win. He was 83 years old.
ACRES
PHONES
MAIN 764
A 22T6