Morning Oregonian. (Portland, Or.) 1861-1937, February 25, 1913, Page 5, Image 5

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SCHEME TO DIVIDE
STOCK IS ASSAILED
Attorney Sees Plan for Union
Pacific to Keep Present
Advantages.
MODIFICATION IS URGED
Change In Dissolution Propmme
Proposed So Southern Pacific
Shares of Cnlon Will Be
Put to Public Sale.
fix T.OTTTS. Feb. 24. The stock dls
trlbution plan for the dissolution of the
fnion Pacific-Southern facino merger,
which had been agrreed upon by coun
sel for the Harriman lines and Attorney-General
Wlckersham was criti
cised here today in arguments before
the Federal Judges who must pass on
the scheme before It can become ef
fective.
Th HlKsnlutlon dan was placed to
day before the United States Court for
the district of Utah, which for this
particular purpose was composed of
Circuit Judges, ine juuges wnu
the arguments and who now hold the
outcome of the famous merger suit In
their hands are Walter H. Sanborn, of
St. Paul: William C. Hook, of Leaven
worth. Kan., and Walter I. Smith, of
Council Bluffs, la.
Case Referred Bark.
The plan argued today was agreed
on by the Attorney-General and the
representatives of the Harriman lines
as carrying out the dissolution decree
of the Federal Supreme Court. The
Supreme Court, after sustaining the
decree of dissolution entered in the
lower court, referred the case back to
the court of original Jurisdiction for
enforcement.
. The objection to the stock distribu
tion plan was entered in the arguments
late today by F. W. Cutcheon, counsel
for the Western Pacific Railway Com
pany. As the Western Pacific was not
a party to the original suit. Its attor
ney was allowed to appear today only
as a "friend." In this capacity he was
introduced by Attorney-General Wlck
ersham. "who explained the dissolution
plan to the Judges, but made no ex
tended argument as to Its merits.
Plaa Held L'nneeeiwary.
The stock distribution plan, to which
exception was taken by Attorney
Cutcheon, contemplates that the South
ern Pacific holdings of the Union Pa
clflo should be offered to the share
holders. Individually, of the two com
panies. "This disposition of the stock," said
Attorney Cutcheon. "is entirely unnec
essary. The stock Just as easily could
be placed In the hands of a syndicate
and' sold to the public. Why was this
apportionment of the Southern Pacific
shares proposed? For the purpose of
retaining for the Union Pacific some of
Its present advantages."
Mr. Cutcheon again urged that the
dissolution plan be so modified that the
Southern Pacific shares of the Union
I'aclfio be placed on the market and
Bold to any who would buy.
rue of Cat-OS Denounced.
The clause in the dissolution plan
providing for the exhaustive use of
the Benicla cut-off. the short line be
tween Oakland. Cal.. and Sacramento,
!y the Southern Pacific and the Union
Pacific, also was denounced by Mr.
Cutcheon.
Maxwell Evarts. counsel for the
Southern Pacific, In discussing the
phase of the plan, said:
"The Southern Paclflo Is willing to
grant to the Western Pacific whatever
rights it now has over the Benicla cut
off. Those rights the Southern Pa
cific Is willing to perpetuate,"
This offer did not satisfy the attor
ney for the Western Pacific, who. in
the closing argument of the day, con
demned the plan for the exhaustive use
of the cut-off by the Union and South
ern Pacific lines as "tendering oppor
tunities for an evasion of the anti
trust law as completely as could be de
vised." General Use Suggested.
"This plan." he continued, "was de
vised for the purpose of assuring the
exhaustive use by these roads of this
cut-off. If competition between the
Union Pacific and Southern Pacific Is a
good thing, why not competition be
tween four roads?"
Mr. Cutcheon suggested that the
Western Pacific and the Santa Fe be
given the right to use the cut-off and
the Oakland terminals. Otherwise, he
urged, the dissolution plan would per
petuate the monopoly.
Under the dissolution plan the cut
off, which now is the property of the
Central Pacific, Is to go into the hands
of the Union Pacific: by the transfer of
the Central Pacific to the Union Pa
cific, and the present contract, by which
the Central Pacific gives the Southern
Pacific the right to use the cut-off, is to
be perpetuated.
The plan for the exhaustive use of
the cut-off by the two Harriman lines
apparently greatly interested the court,
for Judge Hook asked John G. Mil
burn, attorney for the Union Pacific.
if the control of the Central Pacific by
the Union Pacific would not perpetuate
the present monopoly.
Mr. Mil burn replied in the negative,
stating that any railroad might go be
fore the Interstate Commerce Commis
sion or the California Railroad Com
mission and ask for rights over the
cut-off.
In interrogating the attorneys about
this feature of the plan. Judge Hook
said: "I do not want this decree to be
come a judicial travesty."
Attorney-General Wickersham, in ex
plaining the plan to the judge, said he
did pot think there was any danger of
monopoly, because there was no domi
nant personality like Harriman In the
roads to bring it out. Besides, he said,
the Sherman anti-trust law is equal to
any emergency.
JUGirr OF LEASE IS REFUSED
California Hallway Commission De
cides Against Proposal.
SAX FRANCISCO. Feb. S4. The State
Railroad Commission denied late to
night application of the Union Pacific
Railroad for a 999-year lease of the
Central Pacific line, Cast from Oak
land, via Benicla, the so-called Benicla
cutoff.
The lease was part of the dissolution
plan, outlined by railroad officials to
Attorney-General Wickersham, and ac
cepted by him. It was opposed by of
ficials of the Western Pacific Railroad
as being In restraint of trade.
The Commission held that if the
Southern Pacific granted the Central
Pacific right to use the Benicla short
line. It should accord to all of the com
peting carriers like privilege on simi
lar terms. This bears out the conten
tion of the Western Pacific, which de
manded equal rights with the Central
Pacific In the hearing Just concluded.
The commission , further held that if
the Southern Pacific granted to the
Central Pacific Joint use of its termi
nal facilities and Industry tracks it
should grant the same privileges to J
ler
to
St
in
any other competing line on similar
terms.
These recommendations, togeth
with a half dozen others, were con
tained in a telegram sent tonight
Attorney-General Wickersham at
Louis, where the final legal steps
,1. ,,nn A.rln HAan tndflV. i
That the California Railroad Com
mission strongly disapproved the plan
of Mr. Wickersham and the railroad
officials as previously agreea upon m
Washington is set forth In the tele
gram, and another method of bring
ing about the dissolution is suggested.
the Central Pacific, from Ogden t
wr.Am , Ha rntral Pnplfie be
leased for a long te;m of years by the
Union Paciric.
. fi nHA- ..nii.tti onntnlnert in in
Joint application of the Southern and
Central Paclfia respecting certain leases
and transfers in me nnai
contract were approved by tne commia
Ia. Thin Innlilri thft following!
i ba k rantmi Purl np. to aoutnern
roii nt it- linn from Tehama to the
Oregon line for a term 01 years.
Joint trackage rights over bay shore
cutoff from Redwood city to oan rrau
.i.nA a t-rm of AO rears.
Sale by Central Pacific to Southern
Pacific of the California porxion 01 in
it- w--H to Natron. Or.
1.1 i tctn riitinna to the unmerglng
contemplated by Mr. Wickersham and
the railroad ornciais in ut B.c-
. in niiiiittnfi ia thA rienia.1 to the
Ilieui, i ii ...... .
Central Pacific or special mvura u
the Southern Pacific, are set forth as
follows: ........
-T.. - r. ...1 T-Mfl i- limited to th
line from Sacramento by way of Nlles
to Oakland, as an exclusive una.
imnn-p- condition that
UUUIUIIBS'VU -
central and Southern Pacific shall file
Joint rates which shall not exceea mt
rates now in effect between the same
potnts upon the Southern racmo wnum
the State of California.
r-Ami-einn nrnvldes that its approv
....ii . r-vlv- nr extend
any franchises of companies Involved.
Commission requires huh
i J -u-li hlnil themselves to &C-
II VUl CU CIlBil
cept conditions Imposed before order
becomes effective.
THAW TO BE WITNESS
PRISONER TO TELL- OF ATTEMPT
TO FREE niM.
Attorney for "Slayer Attacks "So-Called
Prison Ring" for Conspiracy
Against Sulzer.
ALBANY. N. T.. Feb. 24. -Harry K.
Thaw will be asked to tell Governor
Sulzers committee of Inquiry what he
knows about the most recent attempt
tr nroeure his release from Matteawan
State Hospital for the Criminal Insane,
where he has been confined for five
years for the killing f Stanford White.
This announcement today by the com
mittee followed a bitter attack by Wil
liam V Clark, former secretary of the
committee, upon what he termed "the
so-called prison ring."
Clark, who has been accused of using
Onvernor Sutler's name without the ex
ecutive's authority. In an attempt to
bring about the release of Thaw, was
K .i,t-,i -ir- thm tnnri. Immedl-
fCU,. . V .a... w .... - -
ately he launched Into an attack upon
the prison authorities. Including Colo
nel Joseph F. Scott, superintendent of
state prisons, and Dr. John W. Russell.
uperlntendent at Matteawan. ur. james
r rv phntrmnn nf the state hospital
commission, also was connected with
Clark's Insinuations.
Clark declared that In January m
fAnnaiinti Am tA him that "the so-
called prison ring," made up of superin
tendent Scott and "his immediate
underlings.'' was engaged in a con-
piracy to Involve the Governor so iney
'mie-ht h retained In their profitable
K,,oin-- in hrnkArazA nardons." He
declined to divulge from whom he had
received his Information, out requested
that Thaw himself be questioned.
FAVORITISM IS ALLEGED
HOUSE REPORT ACCUSES POST-
OFFICE DEPARTMENT.
"Outrageous' Deal With Brother 01
Senator Cummins, on Contracts,
Declared to Have Existed.
WASHINGTON, Feb. 24. Charges of
favoritism of the Postoffice Department
toward B. F. Cummins, a contractor
and brother of Senator Cummins, of
Iowa, that First Assistant Postmaster
General C. P. Grandfleld entered into
an "outrageous" arrangement with
Cummins and that the departments
cancelling machine committee was
guilty of gross neglect, were made to
day in the House in a report of the
committee on expenditures in tne
Postoffice Department.
The committee majority reported that
B. F. Cummins exerted an Influence
on both Grandfleld and E. T. Bushnell,
chief clerk of Grand field, which was
highly prejudicial to the Government
interests," that Grant -eld and Bush
nell "deliberately and systematically
favored the Hime Marking Machine
Company and the B. F. Cummins Com
pany, represented by Cummins, that
these officials also "took over the
jurisdiction of assignments of can
celling machines In 1910 so as to be
unhampered in their favoritism," and
there was an understanding between
Cummins and the department officials
in the advertisement for four-year con
tracts for the cancelling machines, that
if bis lump sum bid was the lowest,
he would receive an exclusive con
tract. The report also charged that the
cancelling machine committee, com
prising Bushnell. chairman; George L.
Wood, superintendent of rural mail; N.
A. Merrltt. postmaster of Washington,
and B. L. Andrus, was dominated by
Dr. Grandfleld so aa to render their
findings partial.-
DARBOW SAID TO
HAVE BEEN BIASED
Lecompte Davis Asserts Law
yer Wanted to Get Rid
of Juror Bain.
ALLEGED PREJUDICE CITED
ATHLETIC BRANCH ASSURED
St. Johns Commercial Club to Hold
Younger Members'' Interest.
ST. JOHNS, Or, Feb. 24. (Special.)
The board of governors of the St. Johns
Commercial Club this afternoon voted
to establish an athletic branch as an
inducement for the younger members
of the club who are interested in base
ball and other athletics.
Another matter of Importance was
the consideration of the proposed
"hange in the routing of cars through
the city. It was suggested that the
cars be routed alternately both ways
around the loop. Instead of going In
the same direction. The hospital pro
ject was also taken under advisement.
Quakes Shake Ecuador.
GUAYAQUIL, Ecuador, Feb. 24. Sev
eral light earthquake shocks were felt
here last night and today. The shock
of the violent earthquake of Saturday
night extended all over the republic,
being especially severe in the provinces
of Leja and Canar. A number of houses
were wrecked, but no loss of life has
been reported.
Former Associate of Defendant in
McNamara Defense Says leaner
Urged Exercising Right of
Peremptory Challenge.
LOS ANGELES, Feb. 24. Lecompte
Davis, who was associated with Clar
ence S. Darrow in the McNamara de
fense, testified today in the second
trial of the Chicago lawyer, after Spe
cial Prosecutor Gray had devoted more
than two hours to the cross-examination
of Lincoln Steffens. The magazine
writer gave substantially the same an
swers he made at the first trial.
Davis said Darrow was prejudiced
against Robert Bain, the juror he is
charged with corrupting, and that at
several conferences between counsel for
the defense regarding the disposition
of the juror, Darrow favored the use of
a peremptory challenge to get rid of
Bain.
The day before the exercise of per
emptorles he said Bert Franklin asked
him to use nis influence with Darrow
to hare Bain retained, because he,
Franklin, knew that "Bob was all
right."
Davis corroborated much of Steffens
testimony concerning the compromise
in the McNamara case. He said his
first knowledge of the negotiations for
the pleas of guilty came rrom District
Attorney Fredericks in a conversation
on November 22, six days before the ar
rest of Franklin for bribery.
At that time, Davis testified, Fred
ericks asked him:
"Why don't you quit this horseplay,
old boy, and come through and plead
guilty?"
The witness said he opposed the com
promise but was finally convinced that
tne attitude of those who sought it was
the right one.
The day before Franklin's arrest, the
wintess said, Fredericks told him,
"whatever you do has got to be done
quickly. This fellow is running for
Mayor and you have got to be quick
about It."
Davis explained that the prosecutor
referred to the Mayoralty campaign be
tween Mayor Alexander and Bob Har
riman, an associate counsel in tne Mc
Namara case who was the Socialist can
didate for Mayor.
MM IS TAKEN
WASHINGTON READY IF STORM
' OCCURS MARCH 4.
Extra Force of Men Retained to
Keep Streets Clear of Snow
Should It Be Necessary.
WASHINGTON. Feb. 24. Although
the Weather Bureau has promised
Washington clear and bright weather
for inauguration day, the street clean-
ng department of the city proposes to
be prepared for a repetition of the
blizzard that marred the inauguration
four years ago. A large force of men
has been organized.
Besides 300 men regularly employed.
an additional 300 men will be avail
able should conditions make it neces
sary to keep the line of march free
from snow. These men will be held
in readiness on the morning of the
parade.' They will be massed near the
beginning of tne line ot marcn ana
If necessary prevede the marchers and
sweep the snow toward the side of the
streets at the same time brushing the
cleared space as dry as possible.
The line of march this year is nearly
two miles long and the entire distance
will be watched and kept clear and
free from all obstructions.
The isolation of Washington which
made the Inauguration of President
Taft four years ago such a memorable
one, cannot occur this year, according
to Information obtained from the tele
phone and telegraph companies here.
Within the last four years the com
panies have installed a complete under
ground system of wires that extends
from the capitol to New York and Bos
ton through Baltimore and Phila
delphia.
in the Circuit Court of an offense
against his housekeeper, was tooay on
nied a new trial and will shortly be
brought before the court for sentence.
Naylor Denied New Trial.
FOREST GROVE. Feb. 24. (Special.)
-Edward Naylor, recently found guilty
Guaranteed to Stop
Itching at Once
Eczema, Bash, Tetter, Dandruff; Disap
pear by Using Bemarkable ZEM0.
Buy a 8Eo Bottle Today and Prove It.
That itching that drives you nearly
wild, that keeps you awake in agony
all night long, that scalp itching, will
vanish Instantly by using the new
remedy ZEMO. It is guaranteed.
ZEMO will surprise you as it has
thousands of others by its results on
"3a.ni, Not a Wink of Sleep Yet. If X
Only Had ZEMO for that Terrible Itching"
fiery eczema, sores, rash, tetter,
blotches, Inflamed or Irritated skin,
pimples, rawness after shaving, all skin
inactions, sores, blotches, and itching
icalp. It cures danrlrufT completely, since
dandr-i.f is nothing but eczema of the scalp.
ZEMO is wonderfully refreshing to
the skin. It is a clean, antiseptic so
lution, not a paste, cream or ointment.
The first application gives blessed re
lief. ZEMO has been Imitated, but
positively never equalled.
"It Is impossible for me to do jus
tlce In recommending ZEMO. because
words cannot express its wonderful
achievements." R. A. Stierlin. Supt.
Electrotype Dept.. Sanders Engraving
Co., St. Louis, Mo.
Tour druggist will sell you a 28o
sealed bottle of ZEMO, and will guar
antee it. or it will be sent direct on
receipt of price by E. W. Rose Medi
cine Co., St. Louis, Mo.
Bold and guaranteed In Portland by
Woodard. Clarke Co.. Alder at West
Park; St.
R
eview your 15 year fuel bill
As you think over the
costs and results of using
old-fashioned heating de
vices (which like plenty of
coal to eat and are scant
to heat) what kind of his
tory do you find? Dollars
going out comfort and
health within? Or, coal
bills galore with stern
memories of chills, stuffy
air, ash-dirt-ridden rooms,
hard lugging of coal and sifting of clinkers? If this
recompense of years of expense why not quit, and put
is the
in
delivered to the rooms,
fort and sane living.
Old-fashioned methods mean heating
miss you are at the mercy of winds
rooms and also draw half the heat of
the burning coal up the chimney. An
IDEAL Boiler gives you regulated
heating, whereby all but a small per
centage of the heat made by the burn-
ititr rnnl fnwded to nromote draft) is
Each receipted coal bill is evidence of satisfaction a record of com-
American x Ideal
ii Radiators -IBoilers
by caprice hit or
which chill exposed
A No. I IDEAL, Boiler and 265 aq. ft. of SS
inch AMERICAN Radiator, coating the
owner $ 1 4-0, were ued to heat this eot-taa-e.
At thia prica the eooda can be bought
of any reputable, competent Fitter. Thia
did not Include coats of labor, pipe, valvea,
freight, etc., which are extra and vary ac
cording to climatic and other conditions.
AMERICAN Radiators are made in a multitude of sizes and forms to
go alongside open stairs; to fit into corners, curves and circles; between
windows and under window seats; with brackets to hang upon the walls
off the floor; with special feet to prevent cutting carpet; with smooth
est surfaces for decorating in any color or shade to match woodwork,
wall coverings, furniture, etc.; thin radiators for narrow halls and bath
rooms; with plate-warming ovens for dining-rooms; big radiators for
storm vestibules; with high legs for cleaning thereunder; with ventila
tion bases so air of room may be changed 1 to 4 times per hour and
other splendid features which it would pay you big to know. Our book
tells all about them (and all about IDEAL, Boilers). You will need it to
choose the models from.
If you are suffering the cold ills and paying the big coal bUIs of faulty heating, call,
phone or write us to-day's the best time. We will send you a valuable book on
Ideal Heating, tree, ana worm mucn 10 yuu.
it Si
IDEAL Bollera and AMERI
CAN Radiator keep a turn
houaa new and cause an old
bouse to have its tile and
value prolonged.
. , . ..... . i i-.-4.-.; ...tnr Jumhlm Vacuum Cleaner. ALL the dirt and trash art draw from tht rooms
Sold by all dealers.
Mo exclusive agents.
Write Department N-12
816-22 S. Michigan At
Chicago
AMERICAN P APT ATO R COMPANY
, . xrQei, !- Raltlmore Buffalo. Pittsburgh, Cleveland, Cincinnati, Detroit, Atlanta, Birmingham,
Fort Sloade Troops En Koute.
RTTTRfiTS. S. D.. Feb. 24. Four com-
panles of troops, stationed at Fort
Meade, left tonight for Texas. They
are under command of Colonel Millard
F. Waltz.
River Dam Bill Defeated.
WASHINGTON, Feb. 24. The orig
Inal Connecticut river dam bill, pro
vldins Federal tax and control
9E!llEiSI1IIIl!IIIIIIIIIiIilII!IIIIIIIlIISS
meant
When You
Buy
Beef Steak
Kan .
iS-l
WS3M
You are criti
cal, keen and
watchful that
you get ten
derloin when
you say "ten
derloin." Why
not do the
same when
you ask for
DMC9
tun
rasa
rVj
lasaaj
and be watchful that you get
the real kind. . TIP-TOP will
well repay your preference.
It is really delicious really
wholesome and good, healthful
and pure and really all we
claim for it.
ZX
KM
SCE9
ESfJ
3S29
.T334
waterpower, was defeated In the Sen
ate again today, 49 to 27, when It was
offered by Senator Burton as an amend
ment to the river and harbor appropri
ation bill. Immediately afterward Sen
ator Mclean secured the adoption, 37
to 35, of an amendment embodying the
bill as it recently passed the Senate,
shorn of its Federal tax feature.
Finance Minister of Peru Quits.
LIMA, Peru, Feb. 24. The Finance
Minister, Baldomero F. Maldonado, re
signed today. ,
TODAY
TODAY
6-qt. Berlin Kettle with
aluminum cover. Regular
$1.95. Special $1.22
2Vo-at. Tioped Sauce Pan.
5-qt. Preserving Kettle.
Regular $1.35. Special for
today 83
Regular 90c; Special 6 Id
Each piece separate at above prices, or the 3 for $2.54
Demonstration of
CALORIC
Fireless Cookstoves
Today and Tomorrow.
Today we will demonstrate above fireless stoves by bak
ing pie, apples, biscuits, potatoes and roasting meat.
104
106 Fourth
Street
HARDWARE CO.
Bet.
Wash.
and
Stark
sssa
Refuse Substitutes
Look for the name TIP-TOP on every loaf
SallllllllllllllllllllHIIIIIHllllIflllHiS
A leading New York business man, who makes
frequent trips to Portland and lives with rela
tives when here, makes it a practice to tako
luncheon at the Imperial Grill. "It's because
in the lobby or grill of the Imperial I can al
ways find the men I want to see," as he ex
presses it.
Table d'Hote Luncheon 50 Cents.