THE SUNDAY OREGONIAX, PORTLAND, JANUARY 28, 1906.
CANAL ZONE II
F
J. R. Williams Tells of the
Pestilential Conditions
Which Exist.
FIND TOO -MUCH RED TAPE
Civil Engineer of Portland Returned
Prom the isthmus Doubts if
War Department Can Complete-
the Task.
J. R. Williams, a. Portland engineer,
who spent a year as an engineer em
ployed on the Panama Canal, returned to
tlie city several days ago. Mr. "Williams,
like countless others who went to Panama
when Uncle Sam began the canal, lias
returned thoroughly disgusted with the
Government red tape. He is skeptical
about the canal over being completed so
long as the work on the canal is to be
done by the "War Department, and ho says
that nine out of ten of the criticisms
passed upon the War Department meth
ods of doing the work on the canal and
the way the American employes arc treat
ed are correct.
Conditions Arc Bad.
"Conditions on the Isthmus." said Mr.
"Williams, yesterday afternoon, "arc, of
course, better than they were before the
United States took hold, but the country
.is still accursed and a menace to human
life. I was stationed at Christobal. and
was In charge of the construction of the
drydock there, and stuck it out as long
as I could. "Why, even now I have a list
of orders for supplies that I sent in
months before 1 took sick, and it Is safe
to say that the follow who succeeded mo
will not get thorn for another year. On
the canal zone civil service is a farce, and
woe betide the poor fellow who happens
along there if he is not under civil serv
ice. He is treated like a nigger, and un
less he is on to his job ho will be paid
in silver, and not gold. "Why. I have
known of clerks coming all the way from
New York to work on the canal at $75
(gold) a month.
Bad Sanitary Conditions.
"In Christobal and Colon the sanitary
coditions are very good, but between these
points tho country is simply a hell. Why.
even In Christobal people arc forced to
drink the water from a well situated at
the bottom of a hill, upon which is the
Monkey Hill cemetery. I have drunk this
water without boiling it, but most of the
people there boil their water. This should
-be done at all times, but one. gets a thirst
therp in that country that is not equaled
any other place on earth. It is when this
frightful thirst is upon one that one
doesn't care whether the water Is boiled
or not. Tho hat there during December,
January and February is simply terrific
I have seen a gang of Jamaica niggers,
and Americans also, 'for that matter, go
to work at 7 o'clock and Iby S o'clock
they wQUld bo prostrated and lying around
like dead men. Night on the zone is even
worse than tho day. To lay aside a pair of
shoes for two days is to find them coated
over with a" green mold, and the only way
one can keep his underwear dry Is to bury
it underneath tho bed clothing.
Pests or Insects.
"Everything that is a curse to the work
lngman is to be found along the route
of the canal. Even the insects are in
league against his happiness, and when
the climatic conditions arc not taking him
by tho throat the yellow-fever mosquito
pays him a visit, and if it isn't the mos
quito, it is some other little insect. For
instance, one must always keep his trou
sers tightly fastened around his ankles.
If he fails to do this, a little bug works
its way into his siiocs and usually finds
lodgment between his toes and a painful
poisoning follows. I have known men to
Fuffer for months from these insects. I
don't believe they will ever get rid of tho
yellow-fever mosquito. First, they will
have to rout him out of his breeding
places, and to do this the entire country
will have to be drained. One soon gets
to know the yellow-fever mosquito. When
he starts after you he drops straight
down like a dart, and he lands bill first."
Stricken With Yellow Fever.
Mr. Williams did not escape a siege
with the yellow fever. Just as he was
about to leave for home he was stricken
in the Jiospital at Ancon. Mr. Williams
had engaged his passage by steamer, and
had gone aboard, when he was stricken.
He was taken from the boat unconscious..
and knew nothing for three weeks. In
RETIRES AS PRESIDENT SISTERS
OF ISRAEL BENEVOLENT
SOCIETY.
Mrs. I. Dautoff.
Mrs. I Dautoff was president o
the Sisters of Israel Benevolent Soci
etj 15 years. She declined the nom
ination for that office at tho last elec
tion, because of falling health. Her
refusal to be re-elected created Quite
a stir In the society, her lone Hervlce
and activity havlnr made her almost
Indispensable.
The society Is orsanlzed solely to as
sist women and children in need. Dur
ing Its existence the society has spent
some SoOOO in assisting very many
needy people. Every worthy call for
assistance Is systematically attended
to. By far the largest work dons by
Mrs. Dautoff. whoe untiring efforts
was the majn factor In the.. growth of
the society.
Mrs." A. Flcshman was elected presi
dent at the lartt election of the society.
speaking of the care and attention he re
ceived a't the hospital. Mr. Williams said:
"While one can find criticism for every
thing eise connected with the work of the
canal, one can And nothing but praise for
the excellent hospital service. At various
times men, from all over the world have
been confined in the hospitals there, and
they aro the best in the world, without
doubt. If the work on the canal was
looked after with the same care as the
hospitals are It would be a pleasure to be
on the Panama CanaL But It Is not, and
never will be so long as the work is done
by the War Department. Why, I would
go back there tomorrow if the work was
let to contractors. And right here let me
say that until the construction of the ca
nal Is done by contractors, I am thor
oughly convinced it will never be done.
Why, at the rate they are going It would
break the United States Government.
England and Germany.
"When the French got out they left
millions of dollars worth of machinery be
hind them. The tools and all of the ma
chinery are French and this makes it hard
for the American engineer and mechanic
to use them. Most of thlB stuff Is now be
ing used to rip-rap tho canal. I pumped
out a calpett, or mud hpat. that had lain
alongside of the docks there for 15 years.
On tho sides of the ship 1 found a coat
ing of from six to eight inches of oys
ters. When these were scraped off I hit
the iron sides with a common hand ham
mer and the sheets broke through as if
they were paper. The engine, however.,
was In splendid condition because It had
been heavily coated with white lead. This
boat was No. 13 and was built in Scot
land in 36S4.
Conditions at Colon.
"Tho conditions at Colon, while they
are better than they were, are still in a
bad way. Even now when tho dredges
are at work the entire town Is made sick.
The bottom of the harbor seems to be
rotten and when it Is scooped up the
stench is appalling. There are still places
at Colon where the water stands and It Is
covered with a thick green scum. The
odor from this stagnant water is filled
with malaria germs. This makes It nec
essary for everybody to take a big dose
of quinine daily, together with other
medicine."
In speaking of tho salaries and the
cost of living on tho canal zone. Mr. Wil
liams offers the following figures In which
American money Is considered:
Colored laborers, first grade. 10 cents
an hour; second grade, 13 cents an hour:
mechanics, such as blacksmiths, machin
ists, boiler-makers, etc.. first grade. 16
cents an hour: second grade. 40 cnts an
hour; third grade, 50 cents an hour: first
class mechanics, first grade. 32 cents an
hour; second grade. 38 cents an hour;
third grade, -H cents an hour; fourth
grade, 56 cents an hour.
If the Government fails to provide
room an amount equal to 15 per cent of
the employe's salary Is allowed for that
purpose. Rooms cost about 2S a month
m American money. Breakfast, consist
ing of coffee and a plate of bread and but
ter, costs 35 cents; dinner 75 cents and
supper io cents. Eggs cost 10 cents apiece.
FACES ANOTHER SENTENCE
TIUIAVUD TRIED TO KILL TUB 12.V
TJKE ADAMS FAMILY".
After Serving: Trs Vrnrx at Snlcni, He
Will Be Tried for .Shooting the
Hoy In Klamath' County.
KLAMATH FALLS, Or.. Jan. 27.
(Special. Sheriff Silas Obonchain is
bringing back to Klamath Falls from
Salem, A, B. Trilwud. who will again
face a charge of attompted wholesale
murder after having served a ton-year
sentence on the same oharge.
August 8. 180S. Trilwud was sen
tenced from this county to serve ton
years for shooting j. Frank Adams, a
prominent cattleman of the Tule Lake
country, in the south end of Klamath
County. He will now be tried forshool
ing In the back Willie Adams, son of
J. Frank Adams, 9 years old. who in
terfered whon Trilwud had shot and
seriously wounded his father.
In 1898 Trilwud Trent to Mr. Adams'
place and secured employment. After
working two weeks ho was given his
time because" of his arrogant manner.
In the settlement that followed Trilwud
alleged Adams was trying to beat him
out of part of his wages. They sat
down on the porch of Mr. Adams' homo
and th latter was going over his time
book when Trilwud declared that he
had a tlmebook of his own, and reach
ing into his pocket drew a 38-caliber
bulldog revolver and placing It against
the side of his employer fired. The
shock knocked Mr. Adams over and
then the would-be murderer placed the
revolver to his victim's head intend
ing to finish him.
Hearing the shot Mrs. Adams had
rushed to the door and grabbed Tril
wud by the arm just as he pulled the
trigger the second time. This saved
her husband's life, for the bullet aimed
for his brain only grazed the forehead.
Mrs. Adams then grajjplcd with the
murderous man who attempted to turn
the revolver on her.
By this time Mr. Adams had so far
recovered himself that he was on liis
feet and rushed to his wife's aid. He
was vory weak from the shock of his
wound but managed to hold the fren
zied man. but not to prevent him from
emptying his revolver at Mrs. Adams
and tnc little boy. Six shots were fired
from tho revolver in the hands of Tril
wud. one shot taking effect in the back
of the shoulder of the little boy and
lodging on a rib in the side and one
other shot entered Mr. Adams' right
breast under the arm. Mrs. Adams es
caped without Injury.
By the time the would-be murderer
had emptied his gun another hired man,
hearing the shots, had rushed to the
houso and with his assistance Trilwud
was overpowered and the little boy
went to the barn for a rope to tie him
wlh. Up to this time the little fellow
liad not uttered a word that indicated
that he was Injured but after the
wounds of Mr. Adams were dressed he
complained and upon examination he
was also found to be a victim of the
murderous attack.
Trilwud was tried on the first charge
of shooting Mr. Adams and sentenced
to serve ten years in the penitentiary
by Circuit Judge Benson. He was com
mitted In November and with time off
for good behavior his sentence expired
January 25. Trilwtid was 56 years of
age when first sentenced and is now 6.
Trilwud came here as a tramp and as
he was a very close-mouthed man
nothing was learned of his past life.
He was very vituperous and showed
anarchistic tendencies.
WANDER ALL- NIGHT IN STORM
Man and Wife Come Near to Perish
in? in Klamath County.
KLAMATH FALLS, Or.. Jan. 26. Spe
cial.) Mr. and Mrs. Charles Silvers, of
Plcard. just over the line In California,
came very near to losing their lives in
the snow storm that swept over this coun
try a few days ago. s
They left their homes to go to the home
of their daughter. In the Hole-In-the-G
round country. In response to word of
the death of their -baby. Becoming lost
in the storm, they drove for miles, being
out all night in the driving storm before
being found, next day, by. searching
friends. Mrs. Silvers suffered severe frost
bitten feet, and Mr. Silvers also suffered
much from exposure
iTiininiin nnniT
imnb mini
IN CITfS CAREER
(Continued From Tag 1.)
bp compelled to compete against holders
of similar franchises granted by the city
when no compensation was required, but
we have not taken into consideration the
furnishing by the grantee of light or
power to thi city's public buildings. On
principle, we are opposed to the Imposi
tion of requirements by the city for free
lights or power, and believe fair compen
sation should be exacted for the use of
the franchises, leaving the city free to
buy Its light and power In the open mar
ket among competitive bidders.
"We make this explanation of the ele
ments considered by us In reaching our
estimates, and disclaim any Intention of
thereby offering suggestions to the legis
lative authority of the city government."
The report Is signed by Thomas G.
Greone. R. L. Sabln and C. A. Cogswell,
members of the special committee ap
pointed by Mayor Lane to fix tho value of
the three franchises in question.
Tho Beldlng amendment, which was
submitted subsequent to the consideration
of the report by the Council, probably
marks the opening of a serious conflict
between the Council and the Mayor over
the question of franchise taxes.
Tho consensus of opinion among the
business men of the city seems to be with
the Holding araendmont. In reducing 'the
tax upon foreign capital seeking an en
trance Into the city, as Willi seen by
tho following Interviews:
Greene Speaks for "Executive Board.
"In view of the discussion that has been
caused by our action." said Thomas G.
Greene, member of tho Executive Board
and chairman of the committee which
valued the pending power franchises, "and
the criticisms which have been made, the
committee has decided to make a full and
complete statement for publication, giving
in dolail the facts and figures upon which
Its action was based. In view of this
fact. I am loth to give out nn Interview
at this time. I would say. however, that
the committee acted for Itself and entirely
without advice, assistance or instruction
from Mayor Lane. Wo went to considerable
pains to secure data bearing on the sub
ject of franchise valuations, and were
guided both by technical works and writ
ten statements from the officers of other
cities. The Judgment we arrived at is
our own. and not Mayor Lane's. He did
not know what was in our report until It
was read at the meeting of the Council.
"We want whatever credit Is due us for
the report, and are willing also to boar
the blame for the entire report.
"I consider the percentages fixed upon
fair to all concerned. For tlc first ten
years the average yearly compensation is
but 24 per cent of the gross receipts, and
for the entire 25 years the average Is but
3 4-3 per cent per annum. As to bonds, I
have decided opinions, but I must beg to
be excused from stating them. In view of
my position as a member of the Executive
Board."
Pague Opposed to Bonds.
B. S. Pague. one of the appMennts for
the Colson gas franchise said:
"Whon a city gives a public utility cor
poration the privilege of using tho streets
for the purposes of its business, it is
giving it tho uso of public property for
which the people should be paid. For that
reason 1 believe that every corporation
should pay a percentage of its earnings
to tho people.
"For that reason believe that the fran
chise of the present gas company should
be revoked and a new one granted it
which would provide for the payment of
say 2 per cent of Its gross receipts. That
would allow us to compete on equal terms
and we would be willing to pay the city a
like percentage. As to bonds for the
faithful carrying out of franchises, I am
not so certain. As a general proposition
it would be well enough, but in our own
case we believe the city is so safeguarded
that there Is no chance for It to lose by
our failure to do as we have agreed to
do. As to the transfer clause, we are
perfectly willing to agree not to soil out
to the present gas company or to anybody
else, except with the consent of the Coun
cil. Any person, or company of persons,
desiring a franchise should" be willing to
grant the city's right to impose such a
restriction."
City Should Be Reasonable.
Ex-Mayor George H. Williams spoke as
follows: "While I am in favor of compe
tition in public utilities, I am unalterably
Status of Franchises Pending Before Council
THOMAS R. SHERIDAN, by ordinance
Introduced October IS, 1905. read first and
second times and referred to committee
on streets For the right to construct,
operate and maintain a system of double
or single-track railway, with switches,
turntables, sidetracks and turnouts, on
Hood street to Water street, on Water
street to Columbia, on Columbia, to Front,
on Front to Northrup. on Northrup to
Fifteonth, on Fifteenth to Upshur.
Grantee may propel cars by cither over- I
head or underground electric power, stor- 1
age batteries, compressed air, cables or
other mechanical power, and make all
proper use of tho streets for such pur
pose. No cars shall be run on Front
street from Morrison to Flanders between
7 A. M. and G P. M. Grantee or assigns
may at any time change the motive power
or mode of operating for any. more eco
nomical or desirable method. Life of
franchise shall be 25 years, at the end of
which time the city shall have the right
to take over the plant in its entirety at
a -valuation fixed by arbitration. Esti
mates that 5100.000 will.be spent Inside of
the city limits nnd 12000 a year expended
on tho system thereafter. Maximum fare
in city, 5 cents.
THOMAS McCOSKER, by petition, no
ordinance having been prepared up to tho
present time: petition presented Novem
ber 15, 1903, and referred to committees
on streets and Judiciary and elections
Asks privilege of operating an electric car
line for a term of years on the following
streets in the City of Portland: From a
point south of the Steel Bridge on Front
street between Hoyt and Gllsan streets,
thence south on Front to the south side
of Clay street, thence cast on Clay to tho
east sldo of Water street: also cast on
Columbia street from Front to the cast
side of Water street, thence south on
Water street to the intersection of Hood
street, thence south on Hood street to
the south side of Grover street, thence
east on Grover -to-'Macadam street, thence
south on Macadam to an Intersection with
Macadam road,' near Thomas street.
Track on Front street to be single, stand
ard gauge, with switches and sidetracks,
all laid with 70 to 72-pound rails put down
with concrete and Belgian blocks; track
from Columbia or Clay streets to the
terminus near the Steel Bridge to be ope
rated for freight traffic only, and between
6:30 P. M. and 7 A. M. only, or on days
when business Is suspended on Front
street; provided, however, that If -suitable
traffic arrangements -can be made
with O. W. P. & Ry. Co. later, express
and passenger cars may be operated on
Front street to Madison In connection
with said company's lines. There shall
be no discrimination In freight handled,
and no charge in excess of 15 to be made
for each car hauled In either direction,
and charges to be always .subject to arbi
tration. City given the option to purchase
at any time the entire system on pay
ment of a price to be mutually agrees
upon.
opposed to allowing private individuals to
traffic in public franchises. Therefore I
can see no good reason why an Individual
or a corporation desiring a franchise
should not be willing to put up a good and
sufficient bond for the performance of
Its agreements under such franchise. I
believe that a bond should bo insisted on
in every case. As to what compensation
should be paid the city I regret to say
that I am not familiar enough with the
earning capacity of public service cor
porations to form a Judgment. In any
case, however, the amount would depend
on the character of the service to bo per
formed and the conditions In the field,
in all cases where the streets must bo
torn up or filled with poles for the string
ing of wires the .public is entitled to off
set thoEC disadvantages against the ad
vantages of competition in fixing the per
centage of gross income to be taken In
payment for the franchise. However, I
think the city ought to deal liberally In
such matters and I would not favor an
attompt to extort an unreasonable rate,
or one that would foster monopoly.
Reasonable Pays, Says A. Ir. Mills.
A. L. Mills, president of the First Na
tional Bank, said: "My views on the
subject of franchises are pretty thorough
ly expressed In the city charter which I
helped to frame. I believe that no fran
chise should be granted for more than 25
years, and that is a fundamental law
of the city. I believe, also that no fran
chise should be granted without reason
able compensation to the city: and that,
also, is provided for in the charter. Now,
as to what a reasonable compensation is,
that Is a more difficult question. There
are numerous circumstances and condi
tions that might affect any particular
case. For instance. If Mr. Hill wants to
build a railroad Into the city we could
afford to let him off easily in the matter
of compensation. So. also, if a new
steamship line to Alaska wished aVran
chlse to use city property for wlxarves.
On the other hand, a new telephone com
pany applying for a franchise might ex
pect to pay more on account of the trou
ble and bother of a multiplicity of tele
phone systems entailed In its action.
"In like manner, where the disadvan
tages of having the streets torn up and.
tho air filled with new wires in a measure
counterbalance tho benefits to accrue to
the people, the corporation applying for
the franchise should expect to pay more
for the privilege of doing business and
using the public streets. Frankly. I am
not In favor of a heavy gross Income tax.
There arc few public service corporations
that can afford to pay any large per
centage of their gross earnings. From
my former connection with the street
railway business In this city I know that
a corporation of that kind Is doing ex
tremely woll when It can save 40 per cent
of It gross Income, even making no pro
vision whatever for depreciation of plant,
interest on .bonds or dividends. Few of
the greatest and most profitable railroad
system net more than 50 per cent of their
gross earnings.
Five-Per-Ccnt Tax Too High.
"In view of these facts I would regard
a gross-earnings tax of 5 per cent as pro
hibitive. No. business could stand such a
drain. It Is one thing to do a big busi
ness and another to make a big profit.
Yet If the city Is to get any compensa
tion from holders of franchises. It must
como In the form of a percentage of their
gross earnings. If the percentage is
taken from the net earnings, human na
ture is such that there will be no net
earnings.
"I recall well the ferries which used to
ply between New York and Brooklyn bc
fore there were any bridges. They were
given .their franchises on condition that
all above a certain profit should go to tho
city. Well, there wcr never such magnificently-painted
and decorated ferry-boats
before nor since as those They literally
painted away out the city's share of the
net profits. So also with the Boston &
Albany railroad, which was operated on
the profit-sharing plan with the state.
The stations on the road were of cut
stone, the roadbed was without a pebble,
scarcely: there were flowerbeds every
where, but there was never a time when
the road made more than the S per cent
net profit to which it was entitled. There
was no overplus for the state. The city
should get a percentage on gross income,
but be reasonable with capital seeking
InvostmenL Only recently I noticed that
in Berlin, where municipal ownership
has been developed into a science, the
city was offering franchises on certain
streets for lease to private street-car
companies, and was asking but 7 per
cent. I think It was. of the gross re
ceipts. If a company in Germany cannot
afford to pay more than 7 per cent, a
company in this country would find it ex
ceedingly difficult to pay 5."
"Idea Is Preposterous.
J. Frank Watson, president Mer
chants' National Bank, said:
"A S per cent tax on the gross In
come of a public-service corporation!
The Idea is preposterous! The propo
CASCADE POWER COMPANY, by or
dinance Introduced December 6, 1505. rend
first and second times and referred to tho
streets and judiciary and elections com
mitteesGrants the said power company
the right for a period of years to con
struct, operate and maintain an electric
power system In the city for hire; all
rights to expire at the end of 25 years
unless sooner annulled, and all rights and
privileges to be granted subject to rea
sonable modifications, regulations, limita
tions, etc.; 'franchise not to be consid
ered exclusive. During the life of tho
franchise the grantee shall pay to the
city each year 1 per cent of Its gross
earnings, which shall exempt It from 11
censo tax. City reserves the right to
purchase at appraised valuation, and in
case such right Is not exercised the
grantee shall have a preferential right to
pUrchase an extension of its franchise.
Total amount to be expended within the
City (estimated), $250,000, and for opera
tion, extension and maintenance, 350,000
annually.
Substitute ordinance Introduced January
24 and referred to same committee, cuts
maximum rates for power in half and
makes maximum charge for light 20 cents
jer K. W. hour, where original franchise
had no such provision; also provides that
cpnstructlon shall be commenced in one
year, and I0.0CO horse-power electric cur
rent be brought into city, within two
years.
MOUNT HOOD POWER COMPANY by
substitute ordlnanco drafted by streets
and judiciary and elections committee on
basis of original. Introduced January 24,
and referred to same committee. Grants
corporation the right to maintain light,
power and heating service for 25 years,
subject to all reasonable regulations by
ihe Council. Shall pay the city as com
pensation for he- -first five years of the
life of tho franchise one-half of 1 per cent
on the gross earnings within the city; for
the next 20 years three-quarters of 1 per
cent, and for. the last ten years or the
life of the franchise, 1 per cent: payments
to be made annually on January 15 of each
year, and calculated on the gross earnings
for the year previous. Maximum rate for
electric power to be 7 cents pere K. W.
hour; 10 cents for heat, 20 cents for light,
not to exceed 20 cents per Ks W. hour for
any purpose., City to have customary
right to purchase' plant in city at arbi
trated valuation: corporation to have
preferential right to purchase extension;
work-oa planuto-btgia within SO days and
to be in operation within one year, esti
mated expenditure In city. JoOO.CCO; esti
mated annual outlay, $30.0:0.
BANFIELD-VESEY FUEL COMPANY,
by substitute ordinance drafted by streets
and judiciary elections committee. Intro
duced January 21 and referred back to
committee. Grants corporation right to
lay and maintain steam and cold air pipes,
electric wires, etc.. and transmit heat,
light and power and cold air for cold stor
axe plants. Maximum charge for eieo-
sition is enough to make a very child
In the ways of finance laugh. Change
the decimal point and make It one
tenth of 1 per cent and the figures
would read more reasonably. No busi
ness man on earth would pay a city
5 per cent on his gross income for the
privilege of doing business In it. Ask
any business man whether he could
afford to pay 5 per cent of his gross
earnings, or rather of his income, as a
tax and see what he says. We cannot
afford to discourage capital by levying
such taxes on public-service companies.
The street railroads .here are paying
dividends now. but it must be remem
bered that there were long years when
their stock was worthless! and the men
who controlled them walked the floor.
The Income tax ought to be levied
only after there Is a profit to pay
It from. If a tax Is placed on the
gross income It should be small for the
reason that it Is usually years before
there Is a profit. To start with the tax
of one-half of 1 per cent would be
enough. It might be Increased later.
I am not In favor of requiring a cor
poration or an individual wishing a
franchise to put up a cash bond, or
pledge city bonds as security. The
best way would be to look up the ap
plicant's pedigree. I do not believe in
doing: business with a mnn who can
not be trusted to do as he says, and
must be bonded."
Believes In Full Competition.
R. R. Hoge, president of the Cham
ber of Commerce, said:
"I do not believe in scattering pub
lic franchises about promiscuously. Nor
do I believe in cities giving something
for nothing. But I do bclievo in full
competition between public-service
corporations. The city should neither
adopt a penny-wise-pound-foolish pol
icy, nor countenance cut-throat meth
ods. The impost should bo high enough
to repay the valuo of the franchise, but.
not severe enough to kill the goose
that lay3 the golden egg. Live and let
live Is a good motto and tho man who
goes through life willing to let the
other fellow make a dollar will make
more dollars himself In the end. Now
as to what these public-service cor
porations ought to pay on their gross
earnings, I cannot say from actual ex
perience, but it should be fixed on the
basis of the benefits that will result
to the city. For example, our Govern
ment in early days gave land grants
with a free hand, something that would
not be tolerated for nn Instant now
adays; but the plan worked out well.
If it had not been for those grants,
we would not have a transcontinental
railroad today and most of us would
not be here. This shows how circum
stances may alter cases. I am op
posed, on principle, to long-term fran
chises on any terms. I would favor
short-term grants with the privilege
of readjustment of terms as a consid
eration for renewal. The city can no
more look ten or 20 years into the fu
ture than you and I can see ten or 20
feet down into solid rock. Therefore,
a system of granting franchises, based
on probable earnings, is wrong. As to
bonds, people who want to do business
ought to be willing to give the city
substantial evidence of their good
faith."
Don't Choke Oir Capital.
H. C. Wortman, of Olds, Wortman &
King, said:
"I am not prepared to state what per
cent of its gross earnings a public
utility corporation should be required
to pay for Its franchise. It is out of
my line. I am in favor of allowing
new companies to come In. however,
and give us the benefits of fair com
petition. If capital comes here seek
ing investment we should not attempt
to choke it off. Give the would-be
Investor a square deal. I am Inclined
to think the percentage should be
based in a largo measure on the
amount the Investor is willing to spend
here, and the good that is likely to
result to the community. By all means
let a satisfactory guarantee of good
faith be required."
Fred V. Hoi man. corporation lawyer,
said: "It Is a hard problem. The line be
tween net profits and gross earnings Is a
most .difficult one to draw, and the ques
tion has been before the courts time and
again, without a satisfactory settlement.
The question reminds one of the old
story of how they weigh hogs in New
Jersey. They say they hang tho hog at
one end of a fence rail and a basket at
the other, balance the rail across a fence,
pile rocks into the bosket, until it tee
ters right, then guess at the weight of the
rocks. I can only say that the tax must
be Imposed oh the gross earnings, If It Is
to be Imposed at all. Otherwise, like the
old. old story of the two boys and the
apple, it Is likely that 'there won't be
any core. As to bonds. I believe most
emphatically that tho city should require
security from applicants for franchises."
Wallace Nash, president of the Board
of Trade, sold: "You ask my opinions on
trlclty for 100 hours or less. 14 cents per K.
! W. hour. S000-10.0CO hours. cents per K.
v . nour; neaung. maximum charge Jl per
thousand pounds for water, condensed;
cold storage, maximum charge, 25 cents'
per cubic foot por month. Construction to
begin within six months and be completed
within two years; estimated coat of plant
J5CO.0CO; estimated annual outlay, $400 C00.
Compensation- to city left blank; pay-
mentis tn w mart. Qntiiiiili. f t
I " m January
of each year and Inspection of the com
pany's books permitted. Usual provisions
for purchase by city at appraised valua-
uuii. .ue ot irancmse. 25 years.
Original ordinance similar, except pro
vision was made only for "reasonable
compensation for services"; original ordl
nanco introduced December 6 and referred
to committees named.
UNITED RAILWAYS COMPANY by
ordinance Introduced January 17 and re
ferred to streets and judiciary and elec
tions committees. For right to construct,
operate and maintain railway lines on
tho streets of tho city from the intersec
tion of Macadam street and the city
boundary; north on Macadam street to
Wood street, east on Wood street to
Moody, north on Moody to Water street
northerly on Water to Columbia, west on
Columbia to Front, north on Front to the
north end of said street; also from the
intersection of Front and Columbia, west
on Columbia to Seventh, south on Seventh
to College, east on College to Sixth, south
on Sixth to Sheridan. Also from Front
and Everett, west on Everett to Conneli
road, and north to Pettygrove street. Also
from Seventh and Everett, south on Ever
ett to Columbia. Also from Sixth and
Everett north on Sixth to Johnson, west
on Johnson to Seventh. To uso any pow
er except steam motors or locomotives
Compensation left blank. Life of fran
chise 25 years. Usual provisions for pur
chase, by city at expiration of franchise
To spend $400,000 in the city and annual
expenditure thereafter to be $10,000. Maxi
mum fare In city to be 5 cents.
R. W. COLSON, Joseph Slossctt, Theo
dore A. Garbade and B. S. Pague, by ordi
nance Introduced January 17. read first
and second time and referred to streets
and judiciary committee. Grants right to
erect, operate and maintain a gas plant
and to sell gas within the city. Com
pensation to the city left blank. Shall
commence work within six months. Life
of franchise 25 years. City may buy plant
at expiration of that time on terms fixed
by arbitration In the usual manner. Fran
chise shall be forfeited If service proves
Inefficient, If plant Is hot kept in first
class condition, or If the quality of gas
furnished Is not satisfactory; such matters
to be determined by an Impartial hearing.
Amount to be expended. $1,500,000. Plant
sufficient to serve three-fourths of the
city's population to be In operation within
three years.
THOMAS McCUSKER. informal appli
cation, filed January 17. For a gas fran
chise; no subsequent action.
PHILIP S.
CANDIDATE FOR
llllllllillHllllllillllllllllllflllllllllHIIIHIIIIflMfeMtfMiritfA
j SECRETARY OF STATE
AT THE REPUBLICAN PRIMARIES, APRIL 20, 1906
the right way to meet and handle those
asking franchises for public service- I
think, then, that, with due regard to the
public Interest, few and small obstacles
should be Interposed. So, if companies
wish to bring electric power, which Is
life, to supply our Infant industries, they
should be aided so to do.
"As relations between the public ami the
corporations must be the closer the loncer
they endure, a bond to Insure perform
ances of their proposals may be properly
required. And. as the grant Is based
largely on the individuality and worth of
the applicants, they may be prohibited
from assigning rights conceded to them,
without definite consent of the officials
acting for the public.
"Tho above apply equally to electric
power, gas and street railroad fran
chises. "As to taxes to be imposed on fran
chises so granted: They should be very
light at first, since Infant corporations
can bear no heavy burden. A larger
charge will be afterwards more easily
assumed. I have nothing to say about
amounts. I regard a uniform charge on
gross earnings of corporations as anoma
lous, unjust and against public policy.
The relations between the gross and the
net earnings of various undertakings dif
fer so widely that I cannot see my way
to do justice, but dernand a like per cent
of gross earnings from each."
Favors Gross Income Tax.
William D. Wheelwright, grain mer
chant and ex-president of the Chamber
ot Commerce said: "The whole hlstory
of public service corporations in this
country Is one of gross stupidity on the
part of states and municipalities. If the
City of New York had safeguarded Its
interests in granting franchises which
were given away years ago, the revenue
from that 4source would now be large
enough to pay the taxes of the entire
city. The great fortunes which have been
amassed by the owners of public fran
chises afford proof that they can afford to
pay a revenue to the municipalities which
grant them. But It Is now all but too
late to attempt to atone for past errors.
Nearly everything that is worth having
in that line has been given away. I am
most certainly In favor of a gross Income
tax clause in new franchises granted
by our own city. The Impost should be
reasonable and fair to both the investor
and the people and should be fixed after
a full hearing. By all means the city
should require ample security from Indi
viduals or corporations which apply for
franchises.'
PERS0NALMENTI0N.
Bruce Sweeney, of Seattle, Pacific Coast
agent of the Erie Despatch, was In Port
land on business yesterday.
R. B. Miller, general freight agent of
the O. R, & N.. left last night for San
Francisco, where he goes on business for
his road
W. D. Skinner, assistant general freight
agent of the O. R. & Nr will return home
today from the Los Angeles classification
meeting of the Transcontinental Freight
Association.
A. L. Craig, general passenger agent of
the O.-R. & N., will return Monday from
Salt Lake City, where he attended the
"See America First" Convention, held by
thc Salt Lake Commercial Club.
H. S. Ward, formerly In the employ of
the Equitable Loan &. Savings Associa
tion In Portland, will take the position of
city freight and passenger agent of the
Illinois Central, made vacant by tho resig
nation of Charles H. Hill, who leaves to
manage ,the local office of the National
Biscuit- Company. The changes will be
come effective February 1.
A. H. Campbell, contracting freight
agent for the Great Northern for the past
year, left last night for Belllngham. where
he will enter upon -the duties of general
agent for the same road. His place In
Portland will be taken by George W.
Colby, now contracting agent at San
Francisco, who will arrive in a few days.
NEW YORK, Jan. 27. (Special.) J. H.
Black, of Portland, Or., called at the East
ern headquarters of The Oregonian today.
Mr. Black sailed on the Princess Irene for
Naples at 11 A. M. today.
CHICAGO. Jan.' 27. (Special.) Orego
nlans registered today as follows:
From Portland Mrs. SIckcl, airs. T.
Williams, at the Palmer House.
From Salem D. B. Rickey, at the Grace.
Northern Pacific Bridge Hold-Up.
PORTLAND. Jan. 23. (To the Editor.)
Are the people- of Portland going to re
main passive muchionger In the face of
the trifling and undignified manner in
which the request of James J. Hill for
entrance into Portland Is being treated?
As long as obstructive tactics were con
fined to attorneys- in tho employ of Mr.
Harrimaa. and river pilots, likewise in his
pay, the public was content to await de
velopments for a reasonable time.
However, nowthat the Port of Port
land Commissioners have dignified them
by setting their stamp of approval to the
extent ot holding up a settlement of the
controversy fjop three or four weeks.,
while a portion of Its membership enjoy
a junkejting trip for the alleged purpose
of investigating different types of bridges,
the time is at hand when Portland should
be heard from.
It is up to the Chamber ot Commerce,
Portland Commercial Club, Board of
Trade, up to Mayor Lane, to The Orego
nian. Telegram, and any and all public
bodies and public organs, to arouse oad
organize public opinion and force an hon
est settlement of this matter.
The business interests of Portland de
MALCOLM
NOMINATION AS
mand that these great railroad systems
be admitted without further delay. Every
public and private interest demands it.
with a single exception. Are wc going
to permit this single interest to take us
by the throat, to bottle us up and thwart
us In our efforts for the "Greater Port
land" of the future?
The Harriman interests are pursuing
their time-worn California methods, and
it is up to us to see that they do not get
us in the same fix they have California.
The result ought not to be In doubt.
With a practically unanimous public sen
timent In favor of the "open door" and
only a few railroad employes opposed to
It, surely the Port of Portland cannot
refuse to act. and act soon.
Public sentiment Is ready, to back up
any Intelligent and conservative leader
ship that will lift us out of the rut wo
appear to have fallen into. We have been
"held up" long enough.
M. L. HOLBROOK.
BUYS AN JORCHESTRA.
A notable purchase at Ellcrs Piano
House last week wa3 the one made by
Mrs. A. C. Chumlsero. of Vancouver.
Wash., who selected an $1500 stylo Orches
trelle. The Orchestrelle Is considered ona
of tho greatest musical achievements of
the age. for In reality the various voices
are so arranged as to produce sound ef
fects of Instruments used in the modern
orchestra.
Many tone combinations arc capable in
the Orchestrelle that cannot be found in
the finest pipe organs. Quite a number
of these wonderful instruments are now
found In the most prominent homes of
tho Northwest, and nil have been fur
nished by the popular House of Eilers.
Iitincheon at Arlington Club.
A luncheon was given at the Arlington
Club yesterday by E. R. Eldredge. man
ager of tho Portland ofllco of the Amer
ican Wire & Steel Company. In honor of
E. W. Green, of Chicago, traffic manager
of tho same concern. Gathered around
the board were F. H. Fogarty, general
freight agent of the Northern Pacific:
William Harder, general agent of the
Great Northern; and W. E. Coman. as
sistant general freight agent of the O. R.
& N. and Southern Pacific lines In Ore
gon. Although the lines represented by
tho guests are at war, there was no indi
cation of a lack of harmony. The local
representatives of the roads entering
Portland compete sharply for business,
but do not allow their rivalry to cause
any friction between themselves.
Benson Will Not Sign Up.
NORTH YAKIMA. Wash.. Jan. 27.
(Special.) A proposal was prepared here
this afternoon by the Commercial Club
water-right adjustment committee, to be
forwarded to the Secretary of the In
terior. The work of the committee is fin
ished. The water question has been set
tled, with the exception of E. F. Benson,
of the Prosaer Falls Land & Irrigation
Company. He refused to sign today.
Engineer Jacobs, of the Reclamation
Service, went to that place this afternoon
to consult Benson, and said In departing
that he would effect a settlement before
returning. It Is believed now that work
on the TIeton project will be commenced
within another week. Benson does not
materially interfere with Government
reclamation in Yakima.
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