Morning Oregonian., January 08, 1913, Page 2, Image 2

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HIE 3IORIG OREGOXIAX, WEDNESDAY, JANUARY 8, 1913.
BANKER SAYS TAX
WOULD BE UNJUST
DEFERRED REBATE
NEW YORK BANKER, WHO SAYS GUARANTEE OF DEPOSITS
WILL NOT STOP RUNS ON BANKS.
Guarantee of Deposits Char
acterized as Premium on
Reckless Methods.
Ocean "Trust" Declared to
Have Competed With Braz
ilian Government.
SEE THAT
.CURVE
ATi 3
J I
Hi
Jr. :
GRANTED
SHIPPERS
"RUNS" HARD TO PREVENT
A. Barton Hepburn Tells Committee
There Mill Bo Panics "as Txng
a Human Xature Exists."
Caution Is Crged.
VASIIINGTON'. Jan. 7. That some
thin?; is radically wron? with the
I'nlted 8tatP monetary system was
HSrred to today by all witnesses be
fore the Joue sub-rommlttee on bank,
inir and currency, which began hear
ings to aid in devising a new currency
scheme.
The witnesses did. not agree as to
how & more elastic currency - could be
obtained.
A, Burton Hepburn, chairman of the
hoard of directors of the Chase Na
tional Bank of New York, advocated a
central bank with 51 per cent of the
stock held by the Government, if neces
sary. Mr. Hepburn, speaking1 of Gov
ernment control of banks, said the best
.'irtiele on this subject he had read
wns "The New Freedom." by "Woodrow
Wilson, in whi-h the President-elect
opposed the .Teffersonian doctrine that
"the less a country is governed the
better."
Human Nature Caune of Panics.
"We will have panics as Ions' as
liu man na ture exists. said Mr, Hep
burn. There are three cardinal de
fects in our currency system.' he added,
"want of elasticity, want of a market
for credit and competitive rather than
co-operative operation of our reserves.
"There should be great reserve reser
voirs in the business centers of the
country. These should be under a pen
eral altruistic control. I mean under a
Government influence."
Representative Bulkley questioned
the witness as to the guarantee of
bank- deposits.
"If you think the guarantee of de
posits would stop runs on banks, the
sooner you get the Idea out of your head
the better." said Mr. Hepburn. "When
the people want money, they want, it
;ind nothing else will satisfy them. A
guarantee would count for nothing at
all."
rjnnrntff Taxea Good Banker.
To guarantee deposits, he added,
would put a premium on recklessness
and to impose a tax to guarantee, de
posits would be to make good bankers
responsible for the actions of bad
bankers.
Victor Morawetz. director of the
financial affairs of tho - Atchison,
Topeka & Santa Fe, proposed a. system
. of regional reserve banks to which the
power of issuing currency should be
limited. He told the committee that
a banking system under which the
United States had prospered so wonder
fully could not be wholly bad and urged
caution in changing banking and cur
rency laws.
T'aul Warburg, of the banking firm
of Kuhn, L,oeb & Co., of New Tork, in
sisted that a central reserve organiza
tion differing materially from a central
bank was the only feasible remedy.
Mr. Warburg also vigorously denounced
the idea of Government guarantee of
bank deposits.
Cnairman Glass announced at the
outset that inasmuch as the Temocratic
platform declared specifically against
the monetary commission's central
bank, the majority members of the
committee felt It their duty to seek a
substitute for this plan.
J. HAM LEWIS OPPOSED
frnntinned From First Fnic.
he elected to fill the Lorhner vacancy
in the Senate. Inasmuch as Mr. Hop
kins was the primary nomine at the
time of tho Lorlmer election, support
ers of Mr. Hopkins Insist that Repub
lican members of the Legislature are
under obligations to support him.
Frank G. Allen, of Mollne, Ma the
latest candidate of tho Progressives
for the Ixrlmer vacancy. It Is said to
be possible that Medill McCormick may
withdraw from the race in his favor.
Arthur W. Charles, chairman of the
Democratic state committee, tontght
called oft the Democratic House caucus
set for 8 o'clock, after efforts to insure
harmonious action on the speakership
had proved futile.
A free-for-all scramble on the floor
of the House by six or seven Demo
cratic candidates, in addition to those
of other parties, is in prospect when
the Legislature convenes tomorrow
noon.
Chance for Harmony FUta.
The slim chance of Democratic har
mony which existed before the Governor-elect
entered the field has disap
peared. All the leaders concede that
the Speaker must be elected through a
bi-partisan or tri-partisan combination
in which not more than a half or two
thirds of the Democrats take part.
A deadlock which will delay the In
auguration of the state officers, set for
next Saturday, is a possibility. Charles
A. Karth. of Belleville; John M". Rapp,
of Fairfield, and W. A. Hubbard, of
Carroliton, are the Democratic candi
dates who appear to have a chance of
vii-tory.
CITRUS FRUIT LOSS IS BIG
(Continued i-'rom First Pe.
of cialt Lake City from municipal sprin
kling carts. Several laundries have
been compelled to shut down. In some
parts of the city unsanitary conditions
have become a menace.
However, the back of the cold wave
has been broken, according to the
weather man. and it is hoped that this,
together with extraordinary provisions
made by the City Council, will bring
relief from the famine by tomorrow.
The lower parts of the city are enjoy
ing a limited supply of the precious
necessity. Water has been turned into
the mains from artesian wells and
small Irrigation ditches.
The temperature reached a maximum
of 13 degrees above aero at noon today.
At S tonight the mercury was holding
its own at 10 above.
Supervisory System Indorsed.
EUGENE, Or., Jan. 7. (Special.)
Questions of Indorsement of the rural
school supervisory system and of the
free text books were discussed at length
at the convention here Monday of some
130 school district officers of Lane
County. Aftcr several hours of argu
ment both were indorsed. The conven
tion also went on record as favoring
Superintendent Alderman's suggestion
for revision of the lists of the text
books, and urging the continuance and
extension of industrial and agricultural
training In the public schools.
MMiarWiiiiMr wi rifMfiMnwii''i r"-"-" nmrn JL ji-
A. BARTON
WILSON TAKES HAND
Legislators Urged to Elect
Grosscup Treasurer.
GOVERNOR SURE HE'LL WIN
Opponent. Friend of President-elect,
Js Held to Be Too Closely Allied
With Banking Interests to Be
BcM Man for Position.
TRENTON, N. J.. Jan. 7. Governor
Wilson gave today an example of bis
political policy when he saw individ
ually nearly all the Democratic mem
bers of the State Legislature and urged
them earnestly to vote for Edward F.
Grosscup, Democratic State Chairman,
for State Treasurer, as against Edward
I. Edwards, also a Democrat, and at
present Comptroller of the state.
The Governor argued with the legis
lators that while he was a personal
friend of Mr. Edwards, he believed the
latter's banking connections made it
Inadvisable to elect him State Treas
urer, a position which controls the de
posits of public funds.
"1 feel perfectly sure of the result
and confident that there will be a larse
vote tor Mr. Grosscup," was the Gov
ernor b comment tonight. Friends of
Mr. Edwards, however, disputed the
claim, declaring tho fight was not over.
The' Ivejsrislature meets a. week from
today. The Governor had only one
other kind of business before him. Del
egations of men and women represent
ing labor organizations made a formal
appeal for the reappointment of Lewis
T. Bryant, a Republican, as Commis
sioner of Labor in this state. One of
the " spokesmen remarked that "both
sides," meaning Democrats and Re
publicans, favored Mr. Bryant's reap
pointment. "I am sorry taat there should be any
sides in a matter of this kind." said
the Governor, with a smile, when he
replied to the delegation, "and though
1 do not usually say in advance what
I am going to do in appointments. I
want to take this opportunity of adding
my testimonial to Mr. Bryant's excel
lent service."
RESCUERS AVORKINX; At RISK OF
OAVX LIVES.
Two Similar, Accidents Happen In
Bingham Camp Rumble Heard,
Then Men Are Silent.
BINGHAAr. T'tah, Jan. 7. At the risk
of their own lives, relays of miners are
working frantically tonight to reach
two, possibly three, of their comrades,
who were entombed by a cave-in early
today In a deserted stope of the United
States Mining Company's copper mines.
The body, of one of the men caught be
neath the rush of rocks and earth has
been taken from the debris.
At the Utah Consolidate Mining
Company's workings " five Austrian!
were suffering from Injuries received
in a similar ' accident. Two of them
sustained broken legs and one was in
ternally injured. The latter's condi
tion is"seriousv but it Is hoped that all
will recover.
Although it is thought only three
were caught by the cave-in. it is pos
sible that four may have been entombed
at the United States mines, as another
Greek miner cannot be accounted. for.
When the rescuers first reached the
cave-in they exchanged signals with
the entombed miners, but these sig
nals suddenly ceased after the rescuers
heard a rumble within the stope. It is
feared that the men were crushed be
neath a second fall of rock. One of the
men was an American shift boss; the
others were Greeks. The mines, which
are four miles up the canyon, are cut
off from wire communication.
EXCUSE TO BE LOOKED INTO
(Continued From First Page.)
Mr. Henry, went over,the affairs of the
Equitable. New Tork and Metropolitan
life insurance organizations with the
officers of each. The fact was devel
oped that in the mutual companies the
policyholders show little Inclination to
control the affairs of the companies
and exert practically no power in the
election of officers.
John C. McCall, vice-president of the
New Tork Life Insurance Company,
said in 1908 there were 900.000 policy
holders of the company. Of these 62
voted at the annual meeting. In 1911
41 voted.
Charles A. Peabody, president of. the
Mutual, said that in 1911 there were
between S00.000 and 700.000 stockhold
ers and 13.527 votes were cast.
Judjre V. A. Day, president of the
Equitable Assurance Society, said that
HEPBLhx.
out of 500,000 policyholders usually be
tween 25 and 50 voted.
In the course of the teatimony which
led to the charge of contempt against
Mr. Henry that witness testified that
in the syndicate formed to market the
stock of the California company were
15 officers of sevn National banks,
four of them in NeV Tork, two in Chi
cago and one in Detroit, and that 24
officers of the banks in New Tork,
Chicago. Detroit and Milwaukee had
the right of participation in the syn
dicate. Before the bank officers were called
on to take up their share of the syndi
cate, Mr. Henry said, practically all of
the stock had been sold at a profit.
About 50, 000. he said, was the bank
officers' profit.
"These syndicate underwriters ever
put up any money?" suggested Mr.
L'ntermyer.
"No," answered the witness. "The
stock was sold to the syndicate and
sold by us for the syndicate to cus
tomers on the same day.
Mr. Henry declined to give the names
of officers of the banks who were en
gaged in this syndicate.
Witness ItfuneH Xnnirt,
Mr. Henri; likewise declined to give
the name of the fourth firm associated
In the original syndicate with Solomon
& Co., Hallgartcn & Co. and Lewisohn
Bros.
The witness then read into the rec
ord the following statement prepared
by Senator John C. Spoorter In regard
to his refusal to answer the question
as to the National bank officers en
gaged in the syndicate:
"I decline to answer the question
upon the advice of counsel that the
committee is without jurisdiction to
receive information called for on the
grroun that the subject Is one In re
spect of which the Congress is without
power to legislate; that the question is
an unlawful intrusion into the private
affairs of the citizen under the fourth
and fifth amendments to the Constil
tutlon of the United States, and gener
ally that the committee is not lawfully
entitled to compel the information
called for."
ADAMS FEARED IN WEST
IF I1K SUCCEEDS FISHER DE
VEriOPMEXT'S EVD SEEX.
Western Senators Are Alarmed ot
Prospect if Chicago Man Is
Elevated by Wilson.
OREGONIAN NEWS BUREAU, Wash
ington. Jan. 1. (Special.) Considera
ble uneasiness is felt by Western Sen
ators, both Democratic and Repub
lican, over the fact that conservation
interests are centering "their influence
back of Samuel Adams, of Chicago, for
appointment as . Secretary of the In
terior and especially are they alarmed
in view of the intimation thrown out
by Goverlor Wilson that he may select
his Secretary of. the Interior from the
.MidlSle West and from a state having
no public lands.
Adams is now Assistant "Secretary
of the Interior, having been brought to
Washington by Secretary Fisher, and
it develops he is a lifelong Democrat,
with considerable Eastern Democratic
backing.
Opposition to Adams grows out of
the fact that he rather than Secretary
Fisher has determined most of the land
policy of the. Interior Department for
the last two years: that It was he and
not Fisher who instigated the opposi
tion to much Western land legislation
and that he joined with Fisher in fight
ing tho three-year homestead law when
It was pending in Congress.
Adams has shown during his two
years in Washington that he is fully
capable of reading into any statute
something Congress Jid not place there
anl it was largely Adams who held
back the patenting of the Slletz lands
for more than half the claims that
should have passed to patent under
that act.
Adams, is a conservationist as ex
treme in his view as Pinchot and. com
bined with that, has ability as a lawyer
to twist the statutes to suit his per
sonal views. If Adams is appointed
Western Senators agree that the de
velopment of tiie West so far as new
lands are concerned will be baited.
TACOM.V MAX MAT GET JOB
Wallace Mentioned as "Likely to Be
come Diplomat.
OREGONIAN NEWS BUREAU. Wash
ington. Jan. 7. Hugh C. Wallace, of
Tacoma, who Is one oi me vvasning
ton Democrats mentioned for appoint
ment as secretary oi -xne iieasury.
while not generally regarded as likely
to receive that appointment, remains
In intimate touch with Democratic
party leaders.
Recently National Chairman Mc
Combs was Wallace's guest in this city
and for the last three or four days Mr.
McAdoo, of New York. Democratic
vice-chairman and possible appointee
as Secretary of the Treasury, have
been holding conferences at Mr. Wal
lace's home, consulting Democratic
Senators and Representatives regard
ing Cabinet and other appointments,
and questions of legislative policy.
The fact that both MeCombs and Mc
Adoo have made their headquarters at
Mr. Wallace's residence has given rise
to renewed talk to the effect that Mr.
Wallace himself may be tendered an
important office by President Wilson,
possibly some place In the diplomatic
scrvic-
RATE ON COFFEE ADVANCED
Contracts Are Executed in .Brazil
and Allowance Made by London
Ajrencr RefoMl of Cargo
Held as Threat.
WASHINGTON, Jan. 7. A system of
deferred rebates granted by the so
called "ship combination' to shippers
who deal exclusively with Ho members
was described today to the House mer
chant marine committee by a repre
sentative of a firm-alleged to have re
ceived rebates for four years.
The testimony was given by Joseph
Purcell. of Hard & Rand, of New Tork,
one of the largest Importers of Bra
zilian coffee to the United States, who
said that for shipping Us coffeo ex
clusively by the Lamport & Holt line,
the Prince line and the Hamburg
South America line, his concern re
ceives a . maximum rebate of 10 per
cent. - '
Bra r.lll a n Government LoRrH. "
J. J. Stechta, New York agent for
the Lloyd Brazilian line, owned and
operated by the Brazilian government
between New York and Brazil, had
testified that his company lost $6,000,
000 in the last six years in attempting
to compete with the "conference lines
He further testified that his company
had been able to get the trade of only I
one Ulg cuiice impui icr, aim saiu liim-l
in his opinion the only explanation for
this was the existence ot a deferred
rebate system. He acknowledged he
had no positive knowledge of such a
system.
Mr. Purcell testified the rebate sys
tem was started in 1908 and, with mod
ifications in 1909 and 1910. existed to
day. The contracts, he said, were
signed in Brazil, and the printed forms
for claims for rebates sent to the Lon
don agencies for allowance. Hia com
petitors, Mr. Purcell said, got the same
rebates if they signed the contracts.
Charter Privilege ConeedeH,
The. witness said he believed the
rates were reasonably Just, because
the contracts permitted shippers to
charter a vessel to carry the coffee.
If such a charter could be procured, at
10 cents a bag less than the "confer
ence rate available.
Mr. Stechta had told the committee
that tho "conference lines had raised
the rate since 1913 from 40 to 50 cents
a bag, but that an offer by his line to
Hard & Rand to carry their coffee for
26 rents a bag had been declined.
"When Chairman Alexander, of the
House committee, asked Mr. Purcell to
explain this, the witness testified that
had the offer been accepted this con
cern would have lost its deferred re
bate, only to get a service that would
not have been satisfactory. -
"In addition, the 'conference lines
would have refused to carry your -coffee
from Brazil to Europe T suggested
Representative Thayer1.
"They could have done that if we
had broken their contract," was the
reply. ,
INDIANS' SKULLS EXHUMED
Railroad "Work Near White Salmon
Discloses Itclics ot Red Men.
WHITE SALMON. Wash.. Jan. 7.
(Special.) Skulls and other bones of
Indians are being exhumed by the
Lorimer & Gallagher crew, removing
a hill of Band on the C. D. Moore farm,
to be used for filling; in a trestle on the
North Bank Road, a few miles east of
this place.
Mr. Moore has duiar up bones and the
crude utensils of early Indian life sev
eral times and when the railway was
built many evidences of Indian occu
pation were uncovered.
Historians maintain that-at one time
there was an Indian population of over
40.000 along the Columbia River. Ar
row heads are plentiful along the river
bank and the present site of White
Salmon is known to have been a fa
vorite haunt of Indians.
Snow Disappearing at Carlton.
CARLTON, Or.. Jan. 7. (Special.)
Four inches of snow fell here last night
Great Annual
OF
FINE
Every high-grade fur in our enormous stock reduced.
Prices for quality and style unequaled.
Illustrated style book
sent free upon
request.
Highest Prices
Paid for
Raw Furs
286
MORRISON
STREET
A Bank for All
The Security Savings and Trust Company
Fifth and Morrison Streets.
Capital and Surplus.
Established 1890.
(Keeiatered)
You Salesman at
forty must know that
a buyer can change
his mind quicker than
you c8n change your
glasses. Save the orders
by combining two pairs
. into one pair of Kryptofc
Invisible Double Vision
- Lenses made our way.
Suggestion: Kryptok
Lenses in Shur-on Mount
' ings. Nothing better.
THOMPSON
Optical Institute
Second Floor Corbett Bldg.
Fifth and, Morrison
and a still heavier fall is reported in
the mountains a short distance west.
A warm rain is meltinsr the snow rap
idly today and the North Yamhill Riv
er is rising rapidly. No damage is an
ticipated. Albany Miay Have Riding Club.
ALBANY, Or.. Jan. 7. (Special.)
Flans are being developed for the es
tablishment of a hunt club and riding
academy at this city. A large number
of local people are interested in the
project, which is receiving favorable
consideration. Fred Gould, & livery
man, who was formerly master of a
riding academy at Fort Dodge, Kan.,
probably will establish the academy.
Kngincraen Orfer to Arbitrate.
NEW YORK, ' Jan. 7. Th Brother
hood of Locomotive Firemen and En
ginemen declined this afternoon to
accept the schedules proposed yester
day by a committee representing "0
Eastern railroads, but offered to ar
bitrate the questions Involved under
the Krdman act.
Run -Down System
Built 'p By Hood' Saraaparllla.
In many cases of general debility
Hood's Sarsaparllla has shown its xeat
Intrinsic medicinal worth, as in the case
of Mrs. U U. Blckford, Gossville, N. H..
who writes: "Whenever I have suf
fered, as in the Spring", from a general
run-down condition of the system
prostration, dyspepsia, weakness, that
tired feeling I have taken Hood's Sar
saparllla, and it has effected a complete
restoration to health.
Hood's Sarsaparllla achieves Us great
victories, not . simply because it con
tains sarsaparllla, but because It com
bines the utmost remedial values of
more than 20 different ingredients. Do
not be led to accept any preparation
said to be "just as good." There is no
real substitute.
Get it today in the usual liquid form
or in the tablets known as Sarsatatm.
Snow and icy pave
ments increase the
cost of delivery.
PRESENT PRICES ARE LOW
1Y1U Your Fuel Supply Carry You
Through?
HOLMAN FUEL CO.
Mala 353. A 3353.
Commercial Club Bids.
Clearance Sale
FURS
Mail prders given our prompt
attention. Furs sent on ap-'.
proval.
Manufacturing OPPOSITE OLD
Furriers LOCATION
People
.$1,400,000
.ji v i JP ' '-t W-J
"""" ". i . "nmr'-'V -...-?:?.: $':..
GLOBE THEATER
WASHINGTON, BETWEEN 10TH AND 11TH.
ROMEO JULIET
Most beautiful production of the Romantic Play ever attempted. In
two exceptionally artistic reels. Those who have seen it played or
read aud those who have not done so, will surely be charmed
THURSDAY. FRIDAY AND SATURDAY. 10c ALL SEATS 10c
Efficient.
even in the coldest weather.
Economical. Burns nine hours on one
gallon of oil.
Ornamental. Nickel trimmings; plain
steel or enameled tur
quoise-blue drums.
Portable. Easily car
ried from room to
room; weighs only
eleven pounds ; han
dle doesn't get hot
Doesn't Smoke
Doesn't Leak
Easily Cleaned .
and Re-wicked
Inexpensive
Lasts for years
At Dmalarm Evmrymkwru
STANDARD
1 441 Maiirat Stmt
OUR PROPOSITION:
Suppose we offer you a mortgaged note, being
doubly secured by local real estate and " cash
able" twice a year at
6
in exchange for jrour savings bank book for same
amount, -which is not expressly secured and bear-
ing' only
- 3 or 4
You would, in justice to yourself, investigate the
value of our mortgage. We cordially invite your'
closest scrutinv.
fit xxi$t Company
ilof ortlanb, Oregon
Third and
Original Tickets
Remain On All
Rugs.
Attention, Every Lover
of Oriental Rugs!
HOW many times in the past year have you
thought of some place in the home or
office for which you'd like to .have one or more Oriental
Rugs? .
You who know what a splendid stock we carry how fair
are our regular prices will realize what an extraordinary
opportunity it is when we offer our entire stock at a straight
reduction of one-fourth.
This is our seventh Annual Clearance and the only time
of the year when we deviate from the strictly one-price basis
of selling Oriental Rugs. Wby not take advantage today,
before it's too lateT
CARTOZIAN BROS.
Oriental Rug Importers
WASHINGTON. BETWEEN 13TH AND 14TH
1 1 w yMttTiftji
esSSSfl
Will heat a good sized room
OIL COMPANY
(CaBfwaia)
54 TrmmaMem
an
Washington
See Our
Window
Display