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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Aug. 2, 1913)
VOL. LIII. NO. 16,439. POKTLAXD, OREGON, SATURDAY, AUGUST 2, 1913. PRICE FIVE CENTS. f. LOCATING FRAUDS BRING PROSECUTION Reames Instructed to Act in Land Cases. MUCH EVIDENCE GATHERED Oregon & California Claims Not Legally for Sale. LOCATIONS ARE WORTHLESS Railroad Property Still in Litigation and United States District Attor ney Says Public Buying Land Is Being Swindled. Prosecution of persons engaged In the illegal practice of "locating" set tlers on Oregon & California land-grant . claims will be started at once by Clar ence L. Reames, United States District . Attorney In Portland. Secret Service men have been work ing on these cases for weeks. The Dis trict Attorney's office is in possession rf an abundance of information regard ing the operations of these pretended locators. It is probable that several ar rests will be made within the next few days. The cases will be taken prompt ly before the Federal grand jury. Fraads Extensive at Medford. Attorney Reames' attention was at tracted to the practices of these "loca tors" even before he was appointed to his present office. His former home is in Medford, where much of this fraud has been practiced. One of his first official acts was to inform the Govern ment officials at Washington of these frauds. Now he has been instructed to begin prosecutions. "There is no legitimate reason for anyone selling locations on any of these lands," said Mr. Reames last night. "In the first place the property still is In litigation, as the railroad has appealed the case. So no locations can be made until the Government finally ;ets title to the lands. "Even then locations cannot he ao eepted, as it will require ' an act of Congress to open the property for en try. Lottery System May Be Used. "Congress may prescribe any one of a number of methods for opening the property. It may resort to the lottery system. It is probable that much of the property will be turned over to the forestry bureau, as many acres are " forested. "At any rate any locations that are made now are not worth a cent. When .the Government gets final possession of the property the title will be clear. The slate will be clean. No location claims will be recognized. "So anyone now pretending to sell locations to the public is guilty of fraud against the United. States and subject to prosecution." KVAEBEL ISSUES WAKNIXG Order for Prosecution Comes After Investigation by Department. WASHINGTON, Aug. 1. Advices to the Department of Justice of attempts to perpetrate wholesale land frauds on Innocent people throughout the entire -West, especially In Oregon, has resulted in a decision to start prosecutions at once. Prosecution of those guilty of the frauds has been been placed In the hands of Attorney ' Reames, of Port land. Or. Assistant Attorney - General Ernest Knaebel today Issued a vigorous warn ing to the public as to the nature of the frauds. Designing and unscrup nlous persons, declared Mr. Knaebel, are making false representation to the people for the settlement, which. is im possible at this time, of more than 3.000,000 acres of the so-called Oregon & California Railroad lands which the United States District Court of Oregon recently ordered forfeited to the Gov ernment on the ground that the rail road had violated conditions of Its grant. As the company will appeal, the Is sue will not be settled until It reaches the Supreme Court, and even if the Government ultimately Is successful. Mr. Knaebel added, no disposition can be made of the lands until Congress passes special legislation for that pur pose. Representing that the lands can be procured, those engaged in the alleged fraudulent scheme are said to bys ob taining location fees for their services. The public Is also being induced, Mr. Knaebel said, to make applications to purchase from the railroad company in order to acquire preference rights of purchase to the Southern Pacific Rail road, controlling the Oregon & Call fornla Railroad. A warning has been Issued that no money will be accepted by the company and no preference granted pending the end of the litiga tlon. SAYRE PASSE HIS TECT President's Prospective Son-ln-Law Wins Admission to Bar. .EW YORK, Aug. 1. Francis B. Sayre. President Wilson's prospective son-in-law, was notified today by the appellate division, that he had passed the bar examinations on the substance of law and on the code and nleadlne-s and he will be admitted to practice in isew lorn state next Fall. DEMURE, TIMID GIRL HELD AS MUTINEER PRETTY WAITRESS REBELS AT EXTRA WORK AT SEA. Chicago Stenographer Seeks Life of AdTenture and Gets It Appear- ' snce' Unlike Bold Pirate. CHICAGO, Aug. 1. Demure and timid and appearing not at all like a fierce, swarthy pirate of buccaneer days. Miss Lillian Clarkson. 22 years old, Is to be haled before a United States Commis sioner tomorrow to answer to a charge of mutiny on the high seas. That charge resulted Because Miss Clarkson, forsaking the less eventful occupation of stenographer, decided to ship as a waitress on a lake steamer. After the ship sailed out of Duluth, Minn., the young woman objected to extra work assigned her. Charges were made to the captain that she had quit work and had started a mutiny. '"Send her below," said the captain. Mlss Clarkson was ordered to her room and placed on a diet of rolls and coffee, which she refused to eat. When the steamer arrived In Chicago she was arrested by a United States Marshal and docketed for a hearing before United States Commissioner Foote. TERRITORIAL SEAL REVIVED Multnomah County to Adopt Ore gon's Early Official Stamp. The . old territorial seal of Oregon. which was discarded when Oregon was admitted to the Union in 1864. -now is the- official seal of Multnomah County and incidentally the first seal which this county has ever had. Action adopting It was taken at a meeting of the County Commissioners yesterday, following the reception of an opinion from the Attorney-General that a seal might be adopted legally. Commis sioner Holman originated the Idea. The territorial seal is described by George H. Hlmes. of the Oregon His torical Society, as having had a beaver at the top, an eagle at the right and an Indian at the left. Underneath there was a plow and in the rfftddle a ship departing under full sail, with a range of mountains in the distance. Respect for the pioneers of the state had a good deal to do with the selection of the seal. AST0R TAX IS $3,400,000 Beneficiaries Must Pay Great Sum r . Under Inheritance Law. NEW YORK, Aug. 1. (Special.) Acting on the report of the appraisers. Surrogate Cohalan today fixed the amount which the beneficiaries under the will of Colonel John Jacob Astor will have to pay the State of New York under the inheritance tax law. The total amounts to over $3,400,000. The amounts received by the beneficia ries and the amount of taxes which they will be forced to turn over are as follows: Vincent Astor, $88,968,599.80, tax $2,741,883.99. John Jacob Astor VI, the posthumous child of Colonel Astor and Mrs Made leine Talmadge Force Astor, $2,917,672, tax $100,000.88. Mrs. Madeleine Force Astor, $7,673,- 896. tax $290,465.84. Muriel Astor, $4,861,758, tax $177,- 570.32. MOVE AIMED AT JUDGES 'Ancient Procedure of Impeachment' Declared Too Cumbersome. WASHINGTON. Aug. 1. A constitu tional amendment proposed today in the House by Representative Hull, of Tennessee, would provide that Congress shall have the power to abolish any Inferior court of the United States and remove a Judge of any inferior court of the United States from office by resolution if concurred in by two-thirds of both houses. He continued: "The ancient procedure of Impeach ment which has come down to us from another century is so prolix, involved and cumbersome as to render it most expensive and difficult of utilization. It has become manifest that asimpH fled substitute method of procedure should he made available." SMUT FLARES; GRAIN BURNS Separator Tender Scorched by Ex plosion of Thresher. PENDLETON, Or., Aug. I. (Spe cial.) A smut explosion In the separa tor of a steam thresher on Ely En bysk's big wheat ranch, several miles north, of Pendleton, today blew the machine to pieces, seriously burned Frank Waltman. the separator tender. and set fire to the grain In all direc tlons. The blaze destroyed about 25 acres of wheat before a fire-fighting force of 30 men could beat out the flames. Waltman was oilrasr the machine at the time of the explosion. The In Jured man was placed In an automobile and hurried to St. Anthony' Hospital. His burns are not fatal. EXPLORERS START ANEW Steamer Erik Takes Over Expedition of Unfortunate Diana. ST. JOSEPH. N. F Aug. 1. The steamer Erik, with the Donald B. Mc Millan expedition on hoard, sailed for Crockerland today. The damaged steamer Diana, on which the expedition started, was brought here from Battle Harbor and Its stores were transferred to the Erik. The new commander. Captain Kehoe who Is experienced In Arctic naviga tion. sailed on the Erik. CURRENCY BILL IS READY FOR CAUCUS Federal Control of Re serves Retained. ADVISORY BOARD ACCEPTED Mutual Rediscounting of Se curities Required. INSURGENTS VOTED DOWN Demand for Currency Based on Warehouse Receipts, Rejected by Committee Democrats, to Be Renewed) In Caucus. WASHINGTON. Aug. 1. Considera tion of the Administration currency bill practically was concluded tonisrht by the Democrats of the House bank ing and currency committee, aftor more than five weeks of constant and atormy debate. The bill was ordered closed and re printed, and on Monday the Democratic committee members will take a formal vote on recommending the measure to the Democratic caucus. That It will go to the cajcus with the disapproval of at least three member of the commit tee practically was curtain tonight. As closed tonight the bill differs lit tle in its essentials from the Admin istration measure framed by Represen tative Glass and Secretary of the Treas ury McAdoo and approved by President Wilson. Complete Government control of the Federal reserve board which will direct the new banking and currency system, deemed by the President the all-Important factor of the bill, was re tained. Bankers Permitted to "Advise." At the eleventh hour the Democratic members of the committee incorporated an amendment providing for an ad visory board of bankers to "advise" the Federal reserve board. This amend ment was in the -nature of a compro mise with the banking interests, which protested vigorously against the ex clusively governmental feature of the control ot the board. Another important amendment al tered the re-discount section, confer ring the power to require Federal re serve banks to re-discount paper mu tually. A change was made In the division of the earnings of the Federal reserve banks created by the law. Originally the banks were allowed a yearly cumu lative dividend of 5 per cent and a sur plus equal to 20 per cent of the paid-in capital stock. All earnings above these amounts reverted to the Government. As amended, the balance of earnings. after the 6 per cent dividend and the Coucluded on Page 2. ) INDEX OF TODAY'S NEWS The Weather. TESTE RD AT S Maximum temperature, 87 aereei; minimum, degrees. TODAY'S Showers and cooler; -westerly winds, KstloaaL Manufacturers Ignore tariff question. Page 2. Administration disputes Tiews of Ambassa dor Wilson about Mexico. Face 2. Currency bill retains clause for Federal control of reserves. Fage-1. Party lash used In framing; currency bill. Page 11. , Domestic. Detectives on trail of jewel robbers at Nar- ragansett Pier. Page . Demure girl charged with mutiny on hfgh seas. Page 1. Wit" ess in f ue 1 cases says $ 50,000 was of fered him to disappear. Page X. California orders deep cut in Wells-Fargo express rates. Page 8. Mrs. Stuxvesant Fish gives nursery rhyme and fairy ball to Newport 400. Page 1. Ambassador Wilson's pocket is picked In crowd at railway station, page . William R. Clough may be chairman of board of directors of Northern Pacific Page 3 Koted Mexican outlaw executed. Page 4. Playwright thinks $70,000 in five days too small. Page 1. - Pacific Northwest. Bigger and better State Fair predicted. Page 5 Governor takes hand in row over Sunday show at Oregon City. Page 5. Sports. Pacific Coast League results: Portland 16 Los Angeles 6; Oakland 5, San Francisco 8; Venice 6, Sacramento 3L Page 8. Northwestern Learua results: Ts.com a 6. Portland 4; Victoria 7, Vancouver 6 11 Innings) ; Spokane 6, Seattle 3. Pace 8. List of minor league players subject to re call August 15 announced. Page 8. Pacific Coast star in big tennis battle to day. Page 8. , Commercial and Marine. Oriental flour trade depends on solution of freight question. Page 15. Crop scare sends corn two cents higher at Chicago. Page 15. Stocks affected by news from corn states. Fag 15. Large preparations under way for Fall and Winter trade. Page 15. Dock Commission seeks common-user fran chise on Front street. Page 14. Fort land and Vicinity. Government decides to prosecute in Oregon railway land fraud cases. Page 1. Third fresh air party ready to start for Silverton. Page 10. Industrial Welfare Commission declines fac tory conference recommendation. Page 10. Fault found with work of new fireboat. Page 14. Plans made for entertainment of Secretary Garrison. Page lO. Luncheon, tea. dinner and launch trip amuse society people. Page 7. Weather report, data and forecast. Page 15. TWO WRONGS MAKE RIGHT State Gets Rebate When Road Seeks - Addition to Rate Collection. SALEM, Or., AugTl. (Special.) The old saying, "two wrongs don't make & right," was disproved by the State Railroad Commission today, when it col lected $18.43 from the Southern Pacific Company as overcharge for shipping a concrete mixer for the Insane Asylum from Portland to this city. The first bill submitted to the Board of Control was for $33.60, which waa paid. Soon after tlie company wrote to the Board that the bill should have been $4.03 larger. Clerk Goodtn, of the Board, re ferred the bill to the Railroad Commis sion, which found that instead of an un dercharge having been made in the first instance the bill should have been $15.17. Secretary Corey explained the case to the railroad officials today and the amount of the overcharge was rebated to the state. The Commission says that all freight bills for the state should be submitted to It before being paid. It also will audit the bills of individuals if they think mistakes have been made by the railroads and other carriers. A WORD FROM THE BYSTANDER. NEWPORT 400 GOES TO FAIRYLAND BALL Guests Take Costumes From Mother Goose. MRS. FISH HOSTESS AT PARTY Nursery Rhymes Portrayed at Summer Villa, Crossways. DECORATIONS ARE STRIKING Exclusive Set Attends Remarkable Function at Which Surprise After Surprise Is Given Wonderful Gowns Worn by Women. NEWPORT, R. I., Augr. 1. (Special.) The nursery rhyme and fairy ball given by, Mrs. Stuyvesant Fish at her Summer villa, Crossways, tonight was a big success. No more remarkable party has been given here In a long while. Nearly every one of the several hun dred persons who attended complied with the wish of the hostess by wear. ing the costume of some character that can be found in the classic fairy tales and nursery rhymes. When the guests assembled in their vari-colored and odd costumes, and with other Insignia of their characters, the spectacle was realistically strik ing. Mrs. Goelet Leads Little Lsmb. Mrs. Robert Goelet, for instance, as Mary, led a little lamb into the ball room. The qualntness of the women's costumes was set off by the brilliant uniforms of the officers of the Atlantic fleet, who were In full dress. The ball was preceded by a number of dinner parties. The largest was that given by Mrs. Herman Oelrichs at Rose Cliff for Mr. and Mrs. Fish, which was attended by about 200 guests. After dinner there was a long pro cession of automobiles and carriages down Bellevue avenue for the Cross way. Inside of the main hall of the villa the decorations were most appropriate. On either side of the iTalls were seven stacks of wheat, embellished with cat-o'-nine-tails and sunflowers, -while near each were black cats, with blinking electric eyes, to represent the seven witches. Overhead was also a life sized witch riding -on a broom, with four stuffed geese flying along behind. Flowers-were arranged abont the group to represent clouds. ' Villa I. Like Fairyland. Many pumpkin lanterns were at the entrance of Crossways, whose veranda had a. white and green floral effect. The lounge-room was ' decorated In the same manner. The court garden bad tubs of pink and blue hydrangeas, 11- (Coucluded on Pace 2.) (-the pueuc V $75,000 IN 5 DAYS FAILS TO SATISFY CGVRT REFUSES PLAYWRIGHT'S PXiEA AGAINST PRODUCER. Ijiebler Says That He Gave Arms trong Most of Ideas for Dramatiz ing "Alias Jimmy Valentine." NEW YORK, Aug. 1. (Special.) Paul Armstrong, the playwright, dra matized "Alias Jimmy "Valentine" in five days and has received royalties of $75,000 from the play, according to an affidavit filed In the Supreme Court today by Theodore A. Liebler. of Liebler & Co., producers of the play. Armstrong asked Supreme Court. Justice- Phllbln for an injunction restrain ing the Lieblers from continuing to produce the play 1 and from leasing manuscript to stock companies or using the play for moving-picture purposes, on the ground that the producers have fallen behind in the payment of roy alties. He said that under his contract he had decided to abrogate the agree ment with the Lieblers covering not only "Alias Jimmy Valentine," but "Blue Grass," "The Deep Purple" and "Salomy Jane." In opposing the motion for the In junction, Liebler pointed out that the royalties had been fully paid to date, and that the defendants are owners of the dramatic rights to the O. Henry story which Armstrong dramatized. Liebler said that the base, structural arrangements and situations of th play were all suggested to him by George G. Tyler. of the Liebler firm. and Armstrong was able to deliver the manuscript In five days. The court de nled Armstrong's application. CAPTAIN HOWLAND IS HERO Vancouver Barracks Officer Halts General's Runawpy Team. VANCOUVER, Wash., Aug. 1. (Spe cial.) Captain Charles R. Howland Is the post hero today. With rare pres ence of mind, the captain risked his own life to save that of a private as well as save hjs commanding officer's horses from possible injury. In a runaway. In which Private Brown, driving General Hoyt's team, lost control of the horses, it appeared serious injury might result, when Cap tain Howland. afoot, saw the onrusb- lng team and impending danger if they r were not halted. In a twinkling he took in the situation and as the run away came up with .him,, he .lunged forward and grabbed 1 tie -atl-id, horse by the bridle, and, after being dragged several yards, was able- to stop the frightened animals. No one but the driver was In the vehicle. TRAFFIC TO BE RESUMED Trolleys arid Boats Will Pass New Harrlman Bridge Today. Streetcar traffic over the Harrlman bridge, which was badly damaged by tire Wednesday, probably will be re sumed before noon today. River navi gation through the bridge will be re sumed at the same time. A force of men was busy last night replacing the cables that were burned In two. . As soon as the wire ropes are restored the lift will be operated and vessels will be able to pass through. Streetcars will not use the bridge until work on the cables is finished. George W. Boschke, chief engineer of the O.-W. It. & N. Company, expressed confidence last night that this work will be completed before noon today probably as early as 9 o'clock. Vehicle and pedestrian traffic will not be resumed for three or .four weeks. FLAG TR AMPLER FORGIVEN Saskatoon Militiaman Reinstated When Comrades Threaten. SASKATOON, Sask., Aug. 1. A mem ber of the Saskatoon militia who was court-martialed and discharged from his regiment for trampling an Ameri can flag under his feet in a parade last night was reinstated today. The other members of the regiment threatened tc resign if the dismissal of their comrade was allowed to stand. When the One Hundred and Fifth Fusilllers were marching down the main thoroughfare of the city a young girl In an automobile waved an Amerl can flag in front of the regiment. The man caught the flag, broke the staff in two and trampled the flag under his feet, the majority of the regiment pass ing over it, too. PLANE HIGH IN AIR BURNS Aviator, 4000 Feet Aloft, Puts Out Fire With Rand Extinguisher. CHICAGO, Aug. 1. While nearly 4000 feet in the air. a monoplane driven by W. C. Robinson, of Chicago, caught fire today when a fuse on the engine bliw out. Robinson extinguished the flames with a hand extinguisher while descending, and reached the ground safely. He had gone up in an attempt to break the new American altitude record. James Irving, of San Jose, Cal., who accompanied Roy Francis, a San Fran cisco aviator, on a trip today, dropped in a parachute from an altitude of 4000 feet and descended safely. HAIL RUINS OLIVE TREES i Italian Groves and Vineyards Suffer $4,000,000 Damage, i ROME. Aug. 1. (Special.) The Brin disi district was devastated today by a great hailstorm which destroyed olive trees and vineyards, causing dam WITNESS SAYS HE HAD $50,000 OFFER Bribery Charge Made in Fuel Cases. BARGE CAPTAIN IS INVOLVED Federal Investigator Also Ac cused as Go-Between. FULL INQUIRY PROMISED Man on Whom Government Relies for Important Testimony Makes 'Sensational Disclosures on Eve of Fraud Trials. SAN FRANCISCO, Aug. 1. (Special.) A story told by David G. Powers, a special agent of the Treasury Depart ment and the Government's star wit ness in the Western Fuel Company fraud cases, to the effect that lie had been approached almost on the eve of the trial with offers of $50,000 to "vanish," was the subject of an in quiry today by Federal officials. Those who attended the conference were the special prosecutors. Matt I. Sullivan and Theodore J, Roche, and Chief Spe cial Agent Tldwell, who Is in charge of the Federal operatives gathering evidence against the eight indicted coal trust officials, who are to face trial August 26 on a charge of conspiracy to defraud the Government. Vigorous Action Promised. At the close of the conference the Government's representatives refused . to disclose their plans in relation to Power's charge that the offer had been made him by agents of the defense of $50,000 to flee the country or to doc tor his testimony. "We must decline to discuss this case at present," Sullivt.ii said, "ex cept to say that we shall vigorously prosecute every person identified witn this immense fraud. " Including the men wl.-om Powers accuses of attempting to bribe him?" was asked. 'Everyone Identified with this fraud In any manner whatever," replied Sulivan. "We are conducting an ex haustive examination into every angle of the case. The prosecution will be pushed against everyone Involved, high and low, who, in any way whatever. assisted or is assisting in swindling the Government. Further than this we will not discuss our plans." Witness to Be Protected. Powers, who was formerly a Western Fuel Company superintendent, asserted that a plot was being framed to elim inate him as a witness for the Gov ersnent. The scheme, he Maid, Includ ed his Indictment on trumped-up charges by the Federal grand jury. The authorities insist that Powers need not fear from this source, how ever. "The bribes which were offered me," said Powers, "came from surprising sources. Special Treasury Agent Smith, who has been one of the Federal inves tigators in the Western Fuel cases, said only a week, ago when we were going to Oakland together, that I was a fool not to aceept the $20,000 which he knew the coal company would give me to change my testimony. " The Western Fuel officials cannot be convicted,' said Smith, in that con versation. 'I know they are willing to pay you $20,000 to get out of the country and I would take It, If I were you. You've got to look out for yourself.' Barge Captain Involved. "Prior to that I received an intima tion that the Western Fuel Company would be willing to pay as high as $50,000 to me to 'lay down.' This offer came to me from Captain Bassett, of the barge Nanaimo, one of the coal company's boats. Bassett told me that I was an 'awful mutt' if I didn't take what the indicted men would pay to get me to change my testimony. "'Take what you can get and quit,' he said. I asked him what it would be, and he said that if $20,000 was not enough they wo'uld be willing to pay as high as $50,000, and be glad to do it " 'See Jim Smith, of the Western Fuel Company,' said Bassett, 'and you'll get your $50,000 without any trouble. The Government Is going to Are you as soon as the Western Fuel cases are, over. Don't be a sucker.' " Po-wers May Get Reward. Powers was employed as special agent for 90 days on the .recommenda tion of Tldwell, after he had turned over Information to the Government on which the Western Fuel officials were indicted. His temporary appointment has been renewed several times since for 90-day periods. He Is not a per manent employe of the United States and probably will sever his connection with, the department at the close of the Western Fuel cases. Should the Gov ernment recover the $1,000,000 that the Western Fuel Company is charged with swindling it out of. Powers, It Is be lieved, will be rewarded for his Infor mation. Powers' association with the Govern ment forces began after he had served a six months' sentence for smuggling. He app 3d at the time of his discharge to officials of the Pacific Mail Company and the Western Fuel Company for work. They scorned him, and then he exposed their activities to the Government-Collector of the Port Stratton. whose CCoucluded on Faso 2. age estimated at $4,000,000. I 7