r '6
THE3IORXIXG OREGOXLO, TUESDAY, OCTOBER 20, 1914.
38 ROADS ASK FIVE
PER CENT RATE RISE
Middle West and Intermoun-
tain Bodies Fight, PJea
L for Increase.
B. & 0. ARGUMENT FIRST
Interstate Commerce Commission Is
Appealed To by Carriers, Who Set
Forth That Depression and
"War Prompt Cry for Help- '
WASHINGTON, Oct. 19. Urging that
business depression, and the war in
Europe had caused a shrinkage of
more than J76,00,000 in their annual
net revenues, representatives of 38
Eastern railroads operating over . 59,
000 miles of transportation lines, ap
peared today before the Interstate Com
merce Commission, asking that they be
granted at least a 5 per cent increase
in freight rates,
Daniel E. Willard, president of the
Baltimore & Ohio Railroad, and also
head of the- conference of presidents
of the lines involved, was the prin
cipal witness. He was supported by a
mass of statistics presented by Vice
President Shirver, of the same line,
acting for all the roads. Further
evidence will be submitted tomorrow.
Plea for nine Fought.
In- opposition, to the plea of the car
riers, . Clifford Thome, appeared for
the public service corporations of sev
eral Middle "Western and inter-mountain
states and also for shippers or
ganizations in the region affected. Mr.
Thorn declared his purpose and the de
sire of the shippers was that the
public's side of the Question should be
fully brought .out. He did .not expect
to call many .witnesses. ...
Louis lirandeis, counsel for the Com
mission, vigorously assailed Mr. Wil-lard's-
position in. cross-examination,
particularly, calling - attention to the
fact that the Baltimore Jb Ohio Rail
road had adhered this year to its
policy of declaring 6 per cent divldents
despite 'an' actual' deficit of more than
$3,09,00 in its .net revenues.
Only One Roait Arsnei,
The, affairs of this syBtem were the
only ones, given detailed attention to
day as officers of -the other lines were
not present. Mr. Brandeis Implied in
his questions, however, that a. similar
policy had been followed by - all the
lines.
Mr. Willard said the dividend had
been maintained at 6 per cent this
year at his recommendation. He de
clared he believed it had been justified
by the fact that the road had $32,
000,000 in surplus.
"I am not prepared to say, however,"
the witnesses added, "what I may
recommend in future in view of present
conditions."
Big: Issue Due In Junr.
lie had recommended the continu
ance of the 6 per cent dividend, he
said, because it was necessary to main
tain the control of the line. A recent
note issue of 135,000,000 by the Balti
more & Ohio was marketed at par,
bringing 4 per cent interest and a
commission of one-half of 1 per cent
was paid, making the total cost to the
company of 5 per. cent. This issue
must be met in June next year, ' Mr.
Willard said, and the present outlook
was .that money could not be obtained
then at less than 7 or 8 per cent. Al
ready, he said, other concerns had
been forced to pay other rates than 5
per cent.
Purchase Brought Up.
Mr. Brandeis took exception to the
statement of the Baltimore & Ohio
surplus. He insisted that $22,000,000 of
the $32,000,000 was represented in the
line's investment in securities of the
Cincinnati, Hamilton & Dayton Rail
road, now in the hands of a receiver.
Mr. Willard admitted this, but declared
the purchase of that road was not at
Issue in the present Hearing.
"Whatever our necessities," he said,
"they are not due to the Cincinnati,
Hamilton and Dayton."
"Yet you have $35,000,000 in notes to
pay next year," said Mr. Brandies, "and
' you have advanced $22,000,000 to the
Cincinnati, Hamilton and Dayton."
Risk Pat on Stockholders.
Reverting to the possibility that In
terest rates would be greatl yadvanced
when these notes fell due, Mr. Brandies
asked:
"If it is true that you may have to
pay 7 or 8 per cent, isn't that a risk
Jhat should be taken by the stockhold
ers through a reduction of dividends
rather than be met by an advance in
rates? You defend here today a reduc
tion of practically every railroad ex
pense except dividends."
"Nothing wb do in the way of de
creasing expenses of maintenance and
equipment is permitted to encroach on
satfety of operation," Mr. Willard' re
plied. Bnatfsiess Loss Asserted.
Mr. Brandeis declares the statement
ef the railroads had disclosed so far
nothing originating since the Commis
siion's recent ruling, rejecting the East
ern lines privileges plea for a 5 per
cent advance in rates. In reopening
the case, the Commission especifically
limited it to subjects arising since that
time. Mr. Brandeis said that decision
had forecast a falling off in revenue
of $75,000,000 for the period embraced.
and the companies' statement of $76,
000,000 shrinkage only served to con
firm that estimate.
The commission also forecast im
provement in business conditions, said
Mr. Willard, "whereas there actually
has been retrogression."
Expenses Cat Down.
The expenditures on maintenance
way and . equipment, Mr. Willard said
had been greatly reduced because of
the financial outlook. He added that
thousands of cars in bad order were
being held by his line without repairs
because they could not now afford it.
although the demand for the cars had
decreased
"The general manager has received
instructions not to expend more than
1 per cent of the gross earnings for
maintenance, he added.
In response to further questions by
Mr. Brandeis, Mr. Willard said the
railroads had followed the suggestion
of the Commission in making some in
creases in passenger rates, both on
mileage books and straight fares.
f:i30,0OO Gain in Stent.
To the Baltimore & Ohio he thought
it likely the increase would aggregate
in time $130,000 annually on the mile
age books, but it was impossible to
say how much might be realized from
advances on other fares.
The roads -also had faced the sug
gestion of the Commission as to the
elimination of certain free services.
out it pronaoiy would take many
months lalrly to work them out.
"Do - you know of any- companies)
railroad or other corporations that
have been able to market the se
curities at any rate higher than the
Baltimore & Ohio?" inquired Mr.
Thome.
Labor ' Cost Greater.
"Personally,- I do not," replied Mr.
Willard. "We sold our securities at a
fairly reasonable rate."
' "Can you mention any increase in
labor cost since 1912?" pursued Mr.
Thome.
"Yes." said Mr. Willard, "we d;J
vanced our . laborers engaged on
maintenance work in the aggregate be
tween $500,000 and $700,000 a year."
In response to questions Mr. Willard
said he did not share the commission's
view that coal rates ought not to be
reduced.
"We need additional revenue," he
said, "and the best and fairest way
would be to advance all rates, in
cluding those on coal."
-He added that he knew of nothing
specific that had arisen since the con
clusion of the previous advance rate
case . that .would increase the cost of
transporting coal that did not apply
to the transportation of all freight.
Credit and Money feeded.
"Are these increases asked for to
establish credit or to obtain money to
meet obligations?" asked Commis
sioner Clements:
"Both in a measure," said Mr. Wil
lard. "The B. & O. is well -worth its
outstanding obligations and much more,
but our returns have been small. We
have put $80,000,000 into the property
in the last two or three years, $35,000,
000 in short-term notes. Conservatively,
it will require $15,000,000 a year for
many years."
Questioning Mr. Shriver Mr. Brandeis
drew out a statement that the ratio of
operating expenses per mile had de
creased in 1914 from the 1913 figure.
Supplies Coat Lean.
In that connection Mr. Thome began
a cross-examination tending to show
that the cost of railway supplies, with
the exception of coal, was lower this
year than in preceding years.
-- Counsel for the commission ques
tioned Mr. Shriver from a chart, show
ing the gross revenues for operation of
the Baltimore & Ohio Railroad. The
difference between 1914 and 1913 shown
was approximately $200,000 in a total
of $8,000,000. Mr. Shriver accepted the
figures as accurate, but insisted they
did not properly represent the situation.
ROOSEVELT ATTACK BITTER
Colonel Raps Old Party Candidates
as He Boosts Progressives.
CHICAGO, Oct. 19. Colonel Theodore
Roosevelt bitterly attacked United
States. Senator Sherman, Republican
candidate for re-election, and Roger C.
Sullivan, the Democratic candidate for
the United States Senate, in a speech
here tonight, ending a two days' visit
to Illinois in favor of the candidacy of
Raymond Robins and other Progres
sives. He .diverted to score candidates
lor oirices on tne 01a party ucaeta in
New York state.
The old-party candidates, he declared,
were typical of the bipartisanship ma-'
nine politics, and the fight in Illinois,
as in New York, he said, was not one
of party principle, but of simple civic
honesty. 1
The Illinois Progressives, with his
approval. Colonel Roosevelt said, had
declined offers to enter a deal with
Sherman for a junction with Repub
licans and Lorimer Republicans, by
which Mr. Sherman and a Progressive
candidate would have been chosen to
the United States Senate in 1913, when
finally Mr. Sherman and Colonel James
Hamilton Lewis were elected.
Colonel Roosevelt's . speech tonight
was the climax of a busy day, in which
he rushed by automobile at noon to
Gary, Ind., to speak to the steelwork-
ers there in favor of A. J. Beveridge,
ex-United States Senator, now Progres
sive candidate for the Senate from In
diana.
$38,000 RAISED FOR LINE
Money Subscribed In 1 0 Minutes at
Liewiston for Railroad Work.
STATE TREASURER
OF IDAHO REMOVED
Official Is Succeeded Tempor
arily by Commissioner,
Who Audits Accounts.
GOVERNOR STOPS CHECKS
Action Follows Complaint Made Be
fore Republican Committee That
31 an In Charge of Coin Vised '
Dummies in ioan Deals.
velops I shall act vigorously. Nothing
can be known, however, until the work
on the books is completed."
PROGRESSIVES . TAKE CREDIT
Iiewiston Men Say Campaign
Charges Oust Treasurer.
LEWISTON. Idaho. Oet. 19. (Spe
cial.) Every bank and trust company
in this citj- today received a message
from Governor Haines instructing them
not to honor any drafts or checks is
sued by State Treasurer Allen. There
has been no Intimation that the Gov
ernor was not in full sympathy with
the State Treasurer.
The Progressives here are highly
elated over the news of the Governor's
action and attribue- it to the charges
which they have brought against Mr.
Allen. ! Clarence Van Ueusen has been
campaigning the state in the interest
of the Progressives and it is said that
It is directly due to his charges against
Mr. Allen that 'the present action was
taken.
LEWISTON, Idaho, Oct. 19.-(Spe-
cial.) Thirty-eight thousand dollars
was raised in . 10 minutes here today
for carrying on work 'on the Nez Perce
& Idaho Railroad.
When the railroad committee of the
Lewiston Commercial Club and a sim
ilar committee from Nez Perce met
with representatives of the Nez Perce
& Idaho Railroad Company at luncheon
at the Bollinger Hotel today, Z. A.
Johnson, president of the new road.
said that it wiuld be necessary to raise
$110,000 in order for him to complete
his line to Waha. A stock subscription
list was started, headed by John P.
Vollmer, of Lgwiston, who subscribed
$iu,oou, tne second suoscription was for
$25,000, which was made by the Nez
Perce committee, of which C. W. Felt
was chairman. An additional $3000 was
pledged within the next several min
utes.
The committees will canvass the city
tomorrow and the members believe they
will have little or no difficulty in rais
ing the $110,000.
BRYAN STUMPING KANSAS
Plea Is Made for Election of Demo
cratic Congressman.
COLUMBUS, Kan., Oct. 19. William
Bryan, Secretary of Stae, opened a
two days' tour in 'behalf of the Demo
crats of Kansas here today. He planned
to deliver 15 speeches before leaving
the state at Wichita, Kan., tomorrow
night. Tonight the secretar was to
have gone to Joplin and address Demo
crats of the Fifteenth Missouri Con
gressional District.
Mr. Bryan in his speech here com
mended and outlined the accomplish
ments of the Administration of presi
dent Wilson an dmade, a plea for the
voters to support the President by
electing a Congressman, who will up
hold the policies he . advocates.
The Secrretary lauded the Adminis
tratlon currency and tariff laws and
the President's foreign policy and laid
special emphasis on the "watchful
waiting" policy in dealing with Mex
ico. He also paid a tribute to woman
hood when he drew a word picture of
tho desolation and devastation of the
European war, the burdens of which,
he declared, are borne by widows and
orphans.
CHARTER CHANGES VOTED
Five Tillamook Amendments Passed
at Special Election.
TILLAMOOK, Or., Oct. 19. (Special.)
A special city election was held today
on five amendments all proposed by the
Council to the city charter. Although
there are 800 voters in the city only
290 went to the polls.
The first amendment provided that
two-thirds of the property owners on a
street may prevent street improvements
and provides for an estimate of the
cost when improvements are made. The
second deals ' with assessments for
opening and changing streets. The third
specifies the procedure to be followed
when bonds are issued, and the fourth
amendments calls for 15 days notice
before calling an election. The last
amendment provides for the issuance of
$7000, to take up outstanding war
rants. All the amdments, with the ex
ception of the last, were carried by an
overwhelming majority. It was fought
by the saloon interests, but was car
ried by: a majority of 37 votes.
BOISE. Idaho, Oct. 19. (Special.)
State Treasurer O. V. Allen Is JTreas-
urer In name only. He was tempora
rily succeeded in that capacity today
by Axel P. Ramstedt. president of the
State Tax Commission, appointed by
Governor Haines to audit the books, and
accounts in the treasury department
with three representatives of the Na
tional Surety Company, which stands
surety on $200,000 bonds on behalf of
State Treasurer Allen to the state. The
surety company's agents are making
an investigation of the accounts for its
own protection! The combinations to
the safe have been changed and the
keys to the office turned over to Mr.
Ramstedt. an expert accountant.
Governor Halt All Checks.
The present movement in relation to
the State Treasurer's department is re
garded as extraordinary. It. Is made
ore so by the orders issued by Gov
ernor Haines to the 150 state banks in
all parts of Idaho not to honor checks
for state money. This telegram, ad
dressed to each of the banks, is in du
plicate and as follows:
Pending a complete audit of the
State Treasurer's accounts, you are
hereby notified not to honor or pay any
money or checks for state money, how
ever signed, until further notice from
me. JOHN M. HAINES. 1
"Governor."
The investigation is the upshot of
the charges that have been made
against the State Treasurer and his de
partment prior to and following the
meeting of the Republican state central
committee here.
Use of Dummies Alleged.
These charges were to the effect, that
State Treasurer Allen had used "dummy"
entrymen to obtain loans from the pub
lic school funds. The state committee
put Treasurer Allen on the carpet and
demanded that he make good the loan
and interest for $8000 or resign, and in
the event he failed to do - either the
committee would repudiate him. Impli
cated in this loan was-Fred M. Cole
man, ex-Deputy State Treasurer, who
resigned some time ago and went to
Portland to go into business. .
Other changes were made that
Treasurer Allen took inferior security
on state moneys lent to state banks,
the bank specified being the State
Bank of Nampa, which failed some
months ago. The further charge will
be made that Treasurer -Allen borrowed
money from state banks, with which be
had placed state money, on his own
note. The instance cited in this charge
also is the Bank of Nampa".
Surety Company 1'robm.
These charges were placed before the
National Surety Company on Treasurer
Aliens bonds. They sent representa
tives here to make an investigation.
They arrived Sunday and started in
on an audit, having secured permission
from Governor Haines to do so. This
short investigation led to a conference
and the Governor's decision to place
Mr.'-Ramstedt. in charge of the Treas
urer's office, to check on the investiga
tion and assist in it.
Governor Haines left last night for
St. Anthony and was asked by tele
graph tonight to return to Boise. This
telegram, it ie said, was based on
partial disclosure of the audit.
State Treasurer Allen returned to
Boise Sunday. While his department
virtually is out of his hands, he is in
attendance at the audit.
He refused to make a statement, ex
cept to say that an audit is in progress
and that Tax Commissioner Ramstedt
is in charge. Allen is a candidate for
re-election, having been nominated at
the primaries.
Governor Holds Resignation.
State Treasurer Allen placed ,his
resignation in the hands of Governor
Haines, according to an announcement
made today by the Governor.
"For some time the Treasurer has
been the target of political attacks
bearing on subjects separate and apart
from his office, said the - Governor.
This, as seems apparent, caused the
surety bonding companies to send ex
perts here to audit the Treasurer's
books. In view of the whole situation,
Mr. Allen handed me his resignation,
that the inquiry might proceed with a
free band.
'I have not accepted the resignation
and will not do so until the audit i:
completed. If anything wrong de
MURDER IS CONFESSED
INSANI3 HAN ADMITS KILLING TA
COMA BARBER.
Prisoner, Day After Crime, Had Sold
Newspaper Shooting; Headline
Aboat Hi Ovtra Crime.
TACOMA, Wash.. Oct. 19. Confessing
a murder that for three months has
baffled the police, resulting in close
questioning of several innocent persons,
including tho victim's wife, H. Lamont
Inlay told the officers today that he
killed Claude Mead the night of July 22.
Mead, a barber, was walking with his
wife and- -carrying his child when he
was shot.
Inlay says he mistook Mead fdr a
man ag-ainst whom he was trying1 to
protect a girl. He said he felt called
on to defend the youngr women. The
next morning- after the murder he sold
papers on the street, shouting the head
lines about the crime.
Inlay gave himself up last night, say
Ins he feared he would injure someone
else and the police were at first doubt
ful of his story. Later it was learned
that he had been twice in an asylum,
escaping both times. He will be
charged with murder, but under a com
plaint which permits of his being sent
to the insane ward of the penitentiary.
Inlay is 37 years old.
Keslnoi
ROAD PARTY BOOSTS SHOW
Company Officials on Tour in Inter
est of Land Products Events.
Six officials. ; publicity . men and
agents .of the ; Portland Eugene &
Eastern, . Oregon' Electric and Portland
Railway; Light & Ppwei1 companies
left yesterday on a tour of the cities
along the lines of the three com
panies for the . purpose of creating
greater Interest In the . Manufacturers
and Land Products Show. They will
work south to Eugene and will" be
gone a week. In the party were J. E.
Werleirt. W. M. Colvig. Mark Wood-
To the Ladies of Portland
MRS. KATE B. VAUGHN
The Lecturer in The
Oregoniah's Free School of Home Economics, Uses
Royal Baking Ponder
Exclusively
Teachers of 'cookery, and baking experts generally,
use Royal Baking Powder because they know it can always
be relied upon to make the finest and most wholesome food.
ruff, D; C. Freeman, L. W. Buckley
and J. T. McDowell
The erection of the booths for the
Land Products Show was begun yes
terday morning in the Armory in pre
paration for the opening next Monday.
Exhibits also have begun to come in
and the installation is expected to be
completed by Saturday.
C. L. HORN TO STIR CLUBS
Speaker to Iixcite Interest in Rate
Differential Meeting in- Seattle.
C. L. Horn left last night for a trip
in Washington and British Columbia,
to interest commercial organizations in
the meeting at Seattle, November 5. to
consider plans for removing the dif
ferential in rates between the northern
and southern rotes from the East to
the Panama-Pacific Exposition.
Mr. Horn represents the joint com
mittee of 13 commercial and civic
bodies in Portland Progressive Busi
ness Men's Club, Transportation Club,
Ad Club, Rotary Club, Hotel Men's As
sociation, Retail Merchants, Chamber
of Commerce, Commercial Club, Realty
Board, Theatrical Managers, Federated
States' 'Societies of Oregon, Rose Fes
tival Association and .Panama-Pacific
Commission. . "
Irt his tour he will" visit Seattle, Ta
coma. Spokane,- Vancouver and Vic
toria. Among those from. Portland who
will attend the meeting in Seattle are
A. H. Averill, of the Chamber of Com
merce of Portland, and H. D. Rams-
deli, president of the Commercial
Club
Chicago Police Scandal Alleged.
CHICAGO, Oct. 19. State's Attorney
Hoyne, began today an investigation of
charges of alleged graft in the police
department when he seized' the files
and records of the detective bureau
and the South Clark-street police and
subpoenaed Chief of Police James Glea
aon and other officials to testify before
the grand Jury.
Thfn) Hr
Fynnsylvanta.
22.O0O union carpenters in
PORTLAND
STOMACH
VICTIM
INDS
F
RELIEF FROM VERY FIRST DOSE
H. C. Scammon Gets Quick Re
sults From Use of Mayr's
Wonderful Remedy.
H. C Scammon. of 209 Sherman street,
Portland, was - a . victim of stomach
troubles.. He tried many treatments
with but little promts of successful
results.
At last he tried Mayr's Wonderful
Stomach Remedy and got quick relief.
In ordering the remedy after taking
the first dose he wrote:
I took the sample treatment and
will say it helped me more than any
thing else I have ever tried and I want
the full treatment immediately. I have
had several persons send for the treat
ment already."
The quickness with which it proved
ltaalf to Mr. Scammon is one of the
great merits of the remedy. The first
dose proves no long treatment. It is
known everywhere. Thousands have
tried the remedy and now praise it.
Mayr's Wonderful Stomach Remedy i
clears the digestive tract of mucoid ac-
cretions and removes poisonous matter. ,
It brings swift relief to sufferers from '
ailments of the stomach, liver and bow- i
els. Many say that it has saved them
from dangerous operations and many
declare that it has saved their lives.
Wa want all people who have chronic
stomach trouble or constipation, no
matter of how long standing, to try one
dose of Mayr's Wonderful Stomach
Remedy one dose will convince you.
This is the medicine s .many of our
people have been taking- with surpris
ing resalta. The most thorough system
cleanser ever sold. Mayr's Wonderful
Stomach Remedy Is now sold by lead
ing druggiata everywhere. Adv.
"P
tecting; the; Dear People"
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