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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (July 3, 1913)
55 HUMAN CHAMELEON IS LOBBY WITNESS Impersonator of Various Con gressmen Admits Details of Part in Farce. ' NAIVETE BRINGS LAUGHTER Witness Corroborates Denials of Principals and Tells How Ho . Worked to Aid His Friend, Edward Liauterbach. (Continued From Flrt Pga.) terbauh, in tlie good graces of the Mor gan firm. Kdward Lauterbach, who recently testified before the committee. was recalled, from New York by telegraph tonight and Henry B. Martin, who has figured as head of the "Anti-Trust League," also was subpenaed to ap pear. Lamar declared he prepared the res olution for the Stanley Investigation of the steel trust; that it was given to Martin, who gave it to Representative Stanley. Subsequently, he said, it was introduced in the House of Representa tives by Mr. Stanley with only a few "technical changes" from its original form. Lamar denied that there had been any .attempt at extorting money from any of the New York financial men. The story evolved during the day, mainly through the Ledyard testimony. Indicated that Ledyard had been to va. rious members of the Morgan firm to tell them of the "steel trust" Investi gation resolution which Lamor had prepared, but that none of the Morgan Arm members would pay any attention to the subject or make any effort to stop, it. Speaker Clark's .Name Used. Lamar paved the way for Lauter bach to call on Ledyard, according to the testimony given by Ledyard and corroborated by Lamar. In an inter view on February 8, 1913, between Ledyard and Lauterbach. the latter de clared he came direct from Senator Stone, who represented Speaker Clark: and that ho had a proposal to make to the Morgan Interests for the holding rtt of Congressional activity against the Steel Corporation. Sflnator Stone took the stand before Ledyard had finished and denounced the whole thing as a malicious fabri cation and a "common lie." Members of the Senate committee agreed in the belief that it was a fabrication and Lamar laughingly clinched the matter by breaking in and admitting there was no truth in the allegations. He admitted that he had prepared the out line of the conditions that should be submitted to the Steel Corporation at torney: but he could give no explana tion of his purpose, except that the whole thing was a farce. Two "Palmers" um Phones. The story of how Ledyard had kept Lamar on the' telephone time after time until he could locate the real Represen tative Palmer in 'Washington; how he had once succeeded in getting Palmer over the long distance telephone when the bogus "Palmer" was on another telephone; and how he had finally traced the impersonator to a telephone in Lamar's apartment on Riverside drive, held the committee and spec tators almost dumbfounded for more than an hour. In the course of his testimony early in the day, Lamar interjected an attack on the Union Pacific, asserting there had been a falsification In the books of the company in 1901 by which nearly 110,000.000 had disappeared from Its surplus. T'aul t. Cravath immediately denied this, terming Lamar a "liar." a charac terization which the committee insist ed should be withdrawn. Cravath de clared the attack had been expected for several days, as a part of a bear raid to depress the value of the stock for speculative purposes. While Lamar was on the stand, Chairman Overman endeavored to make him give his real name, but the witness refused. He admitted, under Overman's questioning, that he had been In Penver under the name of ravid H. Lewis, but denied he had used the name of Simon Wolf. He said Lamar was not his name, but declined to give the committee further informa tion, i Friend Lauterbach Served. Lamar said he had worked to serve his friend. Lauterbach. but that this incident "paled into insignificance" when compared with an S2.0oO,000 forgery he alleged was committed on the Union Pacific books In 1901. "I do not know who did it," said the office boy. but I do know this 82, 000.000 was the fulcrum which enabled JIarriman and Kuhn. Loeb & Co. to gain control of these corporations." He described a double entry of $82, 000.000, representing securities the Union Pacific assumed in taking over the Oregon Short Line and the Oregon Railway & Navigation Company. The item?, be said, were carried in the "consolidated balance sheet" of the Union Pacific, June 30, 1900. but be tween that time and June 30. 1901, he alleged torn one had erased the 183, 000.000 Item from rin ui rto, thB iAno-a leaving it as a credit balance on the! other side. Later, Lamar alleged, the principals in the transaction went to Kuhn, Loeb A- Co. and secretly got nearly 120,000,. 000. which he believed was for their own use. luflueuee Openly Asserted. Senator Nelson insisted that Lamar testify explicitly whether he said in hln telephone conversations that Lau terbach had Influence in Washington with officials, Senators or Keprescnta. tives. "I am Inclined to believe thst In my conversation with Mr. Ledyard I wsnt .very far In that direction on the af firmative side," returned Lamar. Lamar said the late J. P. Moraan's opposition to Lauterbach caused him to telephone Ledyard, using the name of Representative Palmer, to try to win his confidence and find out who had ostrlclzed Lauterbach. "I found out it was Ledyard himself,' said Lamar. He added lie knew Led yard had a stenographer on the line making a record of the talk. lemur's account of what ho termed the forgery of the Union Pacific books was as follows: "in the reorganization the old Union Pacific had lost control of what is known an the Oregon properties. They onsited of the Oregon Railroad & Navigation Company and the Oregon Short Line Railroad Company. Between the dats I have mentioned the new company recovered them and paid for them first by an issue of its own cer t'fn-ates and secondly by an assump. tloii of debts of these companies and ss T have already raid, the consolidated balRii-e sheet of June 30. 1900. showed fvr t':e first time the consolidated state ment of all these companies. "On thr debit- side appeared the amount of securities issued and the j. ... , isn ti -.J Uix; HTtr 7r- U:l 1 ISfv" U ' H P H I t- 1 irr it v : . - - th k Ji:L; IS fj '.,,11,,,, SA ' " T. . -" " ff I l'.v;V-1 I ill 3? - - If jTXSt,l Tr -i eriiro PEOPiK debt assumed against the acquisition Of those properties. "On the aset side there appeared a credit equal to the entry value of all the physical properties so acquired and then again there appeared a duplication of that. The same amount was entered over again as representing the value Of the securities, which in turn repre sented the value of the physical proper ties acquired. . Ku try I0rail.' ss 'Witness. "The sum of 182.000,000 or its equiva lent was entered twice on the asset side. But up to .that time the transaction was only open to the objection and criticism that It represented a Piece of clumsy bookkeeping, for again on the debit side there appeared an entry cor responding treating the securities owned by the Union Pacific Railroad as though they were still afloat and in the hands of the public; but the fol lowing year, 1901, somebody erased that entry on the debit side. "So you had the entry on the one side of the amount of securities issued by the Union Paoiflc Railroad Company and the amount of debt it had assumed, representing the payment of the pur chase price, that on the debit side, and on the asset side there was represented an entry of an equal amount represent ing the physical value of the property. Then again the same entry over again. That condition existed as a result of this forgery as a result o this eras ure. "That $82,000,000 before it was erased presented a debit entry against a credit entry, that credit entry being the entry representing the securities of these companies which the Union Pacific has acquired. Securities Pledged for Bonds. "Now, here is what they did and here is what followed from the forgery: They took all the securities of the Ore gon Short Line Railroad Company and the securities of the Oregon Railroad & Navigation Company out from the treasury of the Union Pacific Railroad Company and pledged them as security for an issue of bonds and got the money for them, and they tools that money and applied it to the management and the financing of this Northern Pacific stock, which thereafter became Northern Se curities stock, and then again Northern Pacific and Great Northern and Great Northern Ore, and that, in the end, was sold out at a most enormous profit and the proceeds of that were then used to buy from Kuhn, Loeb & Co., in one day, $200,0000,000 of securities, which the testimony before the Interstate Com merce Commission has strongly tended to show they bought from themselves." Lewis Cass Ledyard testified he had disoovered the identity of Lamar after several telephonic impersonations of Representative Palmer and described his interview with Lauterbach, who was quoted by the witness as saying: "I come here now authorized and empowered to make certain statements to you and to lay certain matters be fore you. Of course, the most Import tant office to be flllled in the new Ad ministration it that of the Attorney General. At first it was. suggested it would be Representative Palmer, but I can now say that the Attorney-General will come from the South. I might say under my breath that it will be Representative Henry. Whoever it is, he will be controlled by the Speaker." Plot to Reach Moraran Nusnected. Ledyard expressed the belief that Lauterbach and Lamar had the idea that if they could get the Morgan peo ple into these schemes they would own them for all time to come. He said it seemed impossible that such an elab orate scheme should have been merely to gain the employment of an attorney. Senator Stone entered the committee-room at this point and made an unequivocal denial of the charges as they Involved him. After leaving the room Senator Stone returned to ask if Lamar, who was till present, had made any of the statements referring to him. Lamar got up and said: "Oh, don't take it seriously. Senator; it has been proved that it wa all a fabrication." "Well, I do take it seriously," Stone retorted, "and I think someone ought to go to the penitentiary for it." The- last object touched on was the preparation of the resolution for an in vestigation of the steel trust by Con gress. "You do not mean to say you couid Introduce a resolution in Congress?" inquired Senator Cummins. "Why. that is just as eas? as taking candy from a baby." replied Lamar. THE MORNING OREGONIAN. THUESUAT. HOT WEATHER SCENES IN CHICAGO. OF TBEM!XT DISTRICTS S LKEPIX(J DRINK TAX GROWING All Records for Consumption of Spirits Broken., SALOONS ON DECREASE Government Flgnres Show Pnly -150,000 Retailers Now Engaged In Business Beer Consump tion 61,500,000 Barrels. WASHINGTON. July 2 The Ameri can people drank more . whisky and beer, smoked more cigars and cigar ettes and chewed more tobacco during the fiscal year 1913 than In any other yearly period of the' Nation's history, according to estimates based today on the record-breaking internal revenue receipts of the Federal Government for the 12 months ended June ao. The drinkers of the country con sumed the. enormous total of 143.300,000 gallons of whisky and brandy, break ing the former high record of the fis cal year- of 1907 by 7,300,000 gallons. Sixty-four million, five hundred thousand barrels of beer were con sumed, exceeding 19ll's great record by more than 1.000,000 barrels.' Despite the high record consumption of intoxi cants, returns to the internal revenue bureau show, without explanation, that the number of saloons of the country decreased by 18,000 during the year, the retail liquor dealers numberins 450.000. Assessments on drinking and smok ing luxuries, on corporations and on oleomargarine and other articles taxed by the Federal Government brought into the United States treasury $344, 426.884. the greatest amount in history, exceeding the previous high record of 1911 by $21,900,000. . MAUD FEALY IN FILM DOM Distinguished American Actress Seen on Screen at Peoples Theater. "King Rene's Daughter," which opened a four-day engagement at the People's Theater yesterday. Is a three-reel filming of the poetic drama from the pen of Henrik Henri and it marks the debut of Maud Fealy, the distinguished young American actress, Into the realm of filmdom. In the middle of the fifteenth cen tury King Rene ruled in Provence. H was at war with a neighboring ruler. Their differences were settled by the betrothal of King Rene's infant daugh ter, Iolanthe. to Tristan, the 9-year-old son of his enemy. While yet a, babe, a fire occurs in the palace. In the rescue, the Princess is injured, so that she be comes totally blind. Sho a nurtured with great care, however, and reared In utter ignorance of the fact that there is such a thing In the world as human sight. When grown to maidenhood, she is seen by her betrothed, who is ig norant of the fact that he Is bound bv eompact to marry her. A Hindu magi cian promises to restore her sight, and. in the end. Iolanthe succeeds In winning me jove m acr oeiroineo, ano, through love and happiness, the power of vision is restored to ner. The Arcade Theater opened for the first time "The Female Raffles," an ex citing story of an American detective's worn. . MAYO METHOT WILL STAR 'Portland Bosebud," Child Actress, to Be Empress Feature for Veek. Little Miss Mayo Methot. , "Portland Rosebud," and mascot of the Portland 1 " . i I mm IN STREETS. Ad Club, who has just returned home alter delivering Portland roses to the President of the United States, four Governors, several Mayors and other notables in the East, Is to enter vaude ville. The child prodigy was engaged yes terday by II. W. Pierong, manaprsr of the Empress, to appear at that theater for 22 performances during the week of July 21. Recitations, songs, Imitations and a bit of dancing will find place in the vaudeville act of tlie little Portland girl, who will be featured as the extra added attraction, in big . type on the Empress poster for the week of her engagement. "Asi I am to be a star," said the little miss yesterday, after her speech be fore the Ad Club. "I will do a little bit of everything and have a surprise for an encore, just like the lady head liners do." Plans are under way to have an Ad men's night In the week little Miss Methot is to shine for. the first time in vaudeville. Jt la intended to make that event a gala occasion In honor of the girl actress who bore the mes sage of the Portland Ad Club across the continent. SEASIDE WILL AFFILIATE COAST TOWX TO JOIW FORCES WITH PORTLAND, Action of Civic Clnh iTiltes Sumrner Resort Alfo AVIth Oregon Development League. SEASIDE, Or., July 2. (Special.) At the last meeting of the Seaside Civic Improvement Club the members voted to affiliate with the Portland Commercral Club and the Oregon -De-velopment League. This decision was reached after an address by Edward M. Weinbaum, special agent of the Portland Commercial Club; the Ore gon Development League and the Im migration Commission. He set forth the advantages that would be reaped by the Seaside club by the action and the additional, advertising this town would receive through the literature that is distributed by the Portland Commercial Club. A committee was appointed to se cure' data concerning Seaside and Clat sop County, so that Seaside may be represented in the next issue of the Oregon Almanac, which will be pub lished In the Fall. Many extensive projects are being worked on by the club members and It is expeeted that after the Summer rush is over, several of them will be taken up in earnest. Among them are an ocean-front driveway to Tillamook Head, the commanding promontory that flanks Seaside on the south, and the opening of a motorboat waterway to the Columbia River. Both of thes objects are said to be simply a mat ter of finance and the more active members of the club believe they can be accomplished by persistent activi ties. $7500 VERDICT RETURNED Mason, Erhnian & Co., Held Re sponsible for Death of D. Beaver. A verdict of f 7609 in favor ef the plaintiff, the full amount sued for, was reported by a Jury in Judge Parker's special department of the Circuit Court yesterday in the case of M. c. Beaver, administrator of the estate of pon Beaver, against Mason, Ehrman & Co.. wholesalers. Don C. Beaver, a 17-year old boy, lost his life In an elevator aoci dent in the Mason, Ehrman & Co. estab lishment, in which he was empleyed as an office boy. Th accident occurred December 14, 1913. The defendant company was charged with a violation of the state law in permitting a person undar the age of IS to operate the elevator and with negligence in not providing proper equipment for the elevator. Ypung Beaver was alone when he was killed and it was never definitely settled how the accident happened. JULY 3, 1913. MIDDLE WEST HEAT TOLL HOW HEAR 350 Eleven More Perish in Chicago Despite Breezes Rising From Lake. HOLIDAY OFFERS RELIEF Transportation Companies Swamped by Reservations of City Residents Mho Would Find Cool Spots by litike or Woods. CHICAGO, July 2. CSpecial.) Elev en more persons perished of heat to day, notwithstanding the decided change in temperature. All those who died today had been stricken by tho heat in the terrific three days' siege, thus bringing the total for Chicago for the four days' period to 122 adults and approximately the same number of babies. At the same time nearly 100 deaths were reported from cities and towns in the Middle and Central West. . Fresh lake breezes, which have per mitted Chicago and vicinity to take a new grip on life, are scheduled to disappointment, according to the fore casters, who say a fresh blast of tor ridlty Is due to settle down over the district affected. Holiday Offers Relief. With the three days' holiday at hand, however, hundreds of thousands of persons will flee the city for the lake and timber resorts of the North west and this fact is counted upon to hold the death list far below what it would be with men toiling in the broiling sun. Railroads are taxed be yond their capacity to accommodate the ' armies who desire to get out of the city and no reservations have been accepted for the last two days. This applies up to July 9, as the roads say every scrap of equipment they can as semble will be required up to that time to handle the crowds wno have already secured transportation. Tlie Coroner reported 30 babies died of heat In this city today. In Baraboo, Wis,, one man dropped dead in the street and one death was reported in Beloit, Wis. In Duouoin, 111., there were five prostrations, of which one will be fatal. New York and 11 o ton Hit. The hottest weather of the season is reported In the East, New York and Boston being tho chief sufferers, al though deaths and prostrations con tinue in Philadelphia. Several deaths and many prostrations were reported from New York. Boston, Pittsburg and Philadelphia tonight. The intense heat wave, which has spread death through out the AVest, has now been forced to the Eastern coast by the lake breezes. By the way of comparison, heavy snowfall is reported in the mountain regions of California, Refreshing rains fell in sections of the Northwest, Southwest and South today. RECALL PETITIONS OUT CLACKAMAS VOTERS, OOX. DEMAND. ELECTION. TO County Judge and Commissioner Are Accused of Irregularities by Promoters. OREGON CITY, Or.. July 2. (Spe cial.) According to those interested in the movement petitions for the re call of County Judge R. B. Beatie and County Commissioner N. Blair, soon will be presented to the County Clerk and a recall election demanded. The attempt at recall Is based upon the allegation that the two officials have let bids for the construction of steel bridges without aiivertisins for com petitive bids; that they have paid $350 for an expert report on the suspension bridge at Oregon City without inviting competition; that a bridge across Clear Creek at Stone was destroyed and re placed by a steel bridge when all that was needed were minor repairs to the original structure; that a contract was entered into with a Portland timber cruising firm to cruise the timber of Clackamas County at a rate of $51.20 per section without giving public, no tice that such a contract was to be let; and that Judge Beatie and Com missioner Blair have not complied with section 6J78 of Lord's Oregon Laws. The charges against the County Court were Investigated by two com mittees some months ago. One com mittee, representing the Live Wires of the Commercial Club of Oresron City, reported that the charges were not supported by facts. " The other com mittee, which was composed of S. L. Casto. R. Schuebel and M. J. Brown, re ported that the charges were found to bo substantiated. Some two weeks ago the petitions, which have been' circulated by volun teers, were turned in to M. J. Brown and W. H. Haseman. who are leading the recall, and were checked over. it Portland Trust Company of Oregon 4 Interest paid on Savings Funds and compounded semi-annually The Northwestern National Bank of Portland. Combined Resources, Over $4,500,000 START WITH GRAVES REMOVAL SALE THIS WEEK These $375 Pianos (PIANO FOR THK Ve 3.13. .TJ5SW3Plr 4T 2 m i fSftl The above illustration gives an idea of these elegant pianos. Come see them, hear the full, rich tone. FOR EXAMPLE Usual price of piano ....$375 Removal sale price 210 Start with 1 Time of delivery V Monthly ($1.25 weekly) S Real saving to you.. 165 THK WISDOM OK BI VIXG 3VOW. To nerurt one of these 91(75 plnnoa at n Having; of 8I.". must be ap parent, for while you can often buy used planus at such reductions, this is tlo first and only opportunity to buv new. latest models, with new im proved, up-to-date, easy repeating action, etc.. at such a savincr. You will certainly find It raster to buy at f IS5 now tban to pay 9323 later. Other Pianos .$45, $145, $165, $210, $265 Player Pianos, 88-note. $295, $355, $415, $565 Terms of Payment $1, $2 and $3 Weekly ITDITir 1 PIECKS OF MUSIC from the Kclipse Llbrarv INCLUDED fXVErEr WITH SALE OF K VERY PIANO LUttING REMOVAL SALE. Graves Music Co., Ill Fourth St. was deemed advisable to have more names upon them and the petitions were put in circulation again. NEW RIVER BOAT LAUNCHED Craft Is lo Ply Between Bantlon and Coquille, Or. BANDON. Or., July 2. (Special.) The Charm, a new gasoline river launch, built at the Herman shipyards, on Coquille River, and owned by tho Coquille River Transportation Com pany, has been launched. She was christened by Captain Willard's - two small daughters, Alta and Orva, as sisted by Oollie Bellonl. Tlie craft is 79 feet long- and 11 feet over all. She carries a six-cylinder engine and- can develop ISO-horsepower. She has a capacity of 150 passem gers and a speed of 18 miles an hour. The Charm will make two round trips a day between Bandon and Coquille. This is the third boat placed on the river, by Captain O. R, Wlllard. HITCHCOCK QUITS CAUCUS (Continued from Page one.) factured or produced wholly or in part by children less than 14 years old. Since the amendment was adopted by the committee. Senators have been flooded with protests from importers, and especially those of the Pacific Coast, Portland importers of grain and wool sacks taking the lead in the fight. The bag importers contend that most of the Jute bags and bagging used in this country are imported from Cal cutta, where they are made largely by child labor, but they maintain that un der the India law, children over 9 years old are permitted to work in factories. You will find nothing equal to Chamberlain's Colic, Cholera and Diarrhoea Remedy for summer diarrhoea in children and for the colicky pains to which children are subject, it never fails and is pleasant to take. "When our little boy, now 7 years old, was a baby he was cured of cholera morbus by Chamberlain's Colic, Cholera tnd Diarrhoea Remedy," writes Mrs. Sidney Simmon". Fair Haven, N. Y. "Since then other members of my family have used this valuable medicine for cramps, colic and bowel troubles with good satisfaction and T gladly indorse It as a remedy of exceptional merit." THIRD AND OAK STREBTS I h IB E 5 5HI r n PG EH EH B 2 BBBiBHE8.fiH.aKEH S- ?S! e ee be ra br ?. fs es h jj,- 8 PE IS E3 EE EB X-H C&fiE E5 E jSlft LI U.l M '.'iT'a CAB Future Homo of the Northwestern National Bank and ths Portland Trmt Company. igiigijpggli THE BANK FOR SAVINGS Affiliated With GO MUSIC CO. Jl'XB BltlDE) r tf5 i v; asn Cpt3 IVXtJll liny If the supply of bags and bagging from India is cut off. as it would be by the Borah amendment, importers say, American manufacturers would have a monopoly of the business and would force up the price. The caucus Is disposed to vote dow n the amendment on this ground, but Sen ator Borah will offer his amendment in the Senate again after tlie bill is Our best adver tisements are never printed they are those neat, satisfying glasses your friends wear. THOMPSON OPTICAL INSTITUTE 2d Floor, Corbett Bldg., 5th and Morrison JULY 4TH Take your family on the Fourth to Lak Maw Parle. th new iiciic v rounds on Os tvegro T,ake. Special train leaves Jet'ferson-st. H, P. depot July 4 at 9:4 . m.. returning at 1:54, 4 .Tt and 7:10 P, M. Buy tickols i o Bryant Station, faro HO cents round trip. Boattncr. bathing, fish in tr, swings, table. Launch Lotus will meet Oswetro tialnx. For boat reservation or further information call Marshall 1'379. 4 Deposits made on . or before JULY 5th, 1913 will receive interest from the first of ' the month . f laV .1 - .... I Et. r.