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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (July 7, 1907)
4XV Pages 1 to 12 VOL,- XXVI NO. 27. PORTLAND, OREGON, SUNDAY MORNING, JULY 1907. PRICE FIVE CENTS. 7, STANDARD men BEFORE COURT Great Crowd to See John D. Rockefeller. TESTIFIES ABOUT OIL PROFITS So Long Out of Business Knows Little About It. PRATT GIVES INFORMATION parent Company Pays 40 Per Cent Dividends and Controls Indiana Company Rockefeller Issues Denial of liawbreaking. FACTS ABOUT STANDARD Oil Judge Landls obtained the follow ing Information about the Standard Oil Company of New Jersey from of ficial! of that and lta subsidiary com panion at the hearing yesterday: Capital stock. 08.300.000. Business, buying and refining of petroleum. Dividends In 1903, 1004 and 1C05. 40 per cent. Net earnings, 1003, 81.300,000; 1004, 161,500,000; 1005, over S3T.000. 000. Properties admitted to be worth vastly more than outstanding capital at par value. Owns controlling Interest in Union Tank Line Company, which trans ports its oil. having capital of 3. 500.000, debtr of 15.000.000 and not having paid a dividend since 1005. Owns 4905 out of 10,000 shares of $100 each (total capital 1.000.000) In the Standard OH Company of In diana, and Individual stockholders Jn the Standard Oil Company of New Jersey hold a very large proportion. CHICAGO, July John I. Rockefeller, president of the Standard Oil Company of New' Jersey, occupied the -witness stand in , the United States District Court today, while Judge Landls plied him with questions regarding the finan cial strength and the business methods of the corporation of which he is the head. Mr. Rockefeller was a very willing and an equally unsatisfactory witness. He was ready to tell all that he knew, but he said that he knew practically nothing. The net result of his exam ination was that he believed during the years 1903, 1904 and 1905, the pe riod covered by the Indictments on whlrh the Standard Oil Company of In- diana was recently convicted, the net profits of the Standard Oil Company of New Jersey were approximately 40 per cent on an outstanding capitalization of $100,000,000. Find Basis for Fines. The investigation held today by Judge Landls was instituted by him for the express purpose of determining whether or not the Standard Oil Com pany of Indiana, which was convicted of violation of the law, was really owned by the Standard Oil Company of New Jersey, whether the Union Tank Line Company, whose cars were used for the shipments, made in violation of law, was similarly owned, and also to obtain an idea cf the financial resources of the convicted corporation In order to Inflict a fine proportionate to the offense and the assets of the convicted company. It was stated by officers of the Standard Oil Company of New Jersey that It owned the greater part of the tock of both the Union Tank Line Com paay and Standard Oil Company of In dlana. Specific figures as to the earn lngs of the parent corporation were srlven by Charles M. Pratt, its secre tary, and they were close to the estl mate given by Mr. Rockefeller. Crush to See Richest Man. The prospective appearance in court of the man reputed to be the richest man In the world brought about a spec tacle the like of which has never been witnessed In the vicinity of a Chicago courtroom. The hour set for the ap pearance of Mr. Rockefeller was 10 o'clock and an hour before that time the hall outside the courtroom door was densely packed' by a crowd of per sons, all of whom were anxious to ob tain seats and hear the testimony. A large squadron of United States Deputy Marshals, under the direction of United States Marshal Hoy, and numerous de tails of police were on hand, but oven they were unable at times to control the crowd. The people pushed and at times by sheer weight actually bore the police down the hall. The crowd was so dense that frequent cries for as slstaoce were heard and people who were jammed against the wall fran tically begged for relief against the pressure to which they were subjected. Admission to the courtroom was by card only, but many people succeeded in evading the guards and. when Judge Landls took his seat upon the bench, the .courtroom was packed to the last inch. Lines of people were around the walls, dozens of chairs held two occupants, very inch of standing room was occu pied and men sat upon the steps of the Jury box and squatted upon the floor, liven after the courtroom was filled, the zowd- became so heavy and so Insistent that Mr. Hoy was compelled to telephone to police headquarters for further assist ance. This was promptly sent and from that time on the crowd was held In check. Inside the courtroom perfect or der prevailed at all times except at the immediate opening, when Judge Landls threatened to clear the room If absolute quiet was not preserved. Rockefellers Well Guarded. John D. Rockefeller and William Rocke feller arrived at the Federal building in the automobile oOHarold F. McCormick, the son-in-law of Mr. Rockefeller, at 9:30 o'clock. The party first crossed the street to the offices of the Standard Oil Company in the Commercial National Bank building and after remaining there a short time returned to the Federal building, where a large, crowd had gath ered. So curious were the people to see Mr. Rockefeller that it was necessary for 20 policemen to use force in pushing back the crowd to make a pathway for him. On the steps of the Federal building the party was compelled to halt while the police fought with the crowd. Five local v John D. Rockefeller, President oat Standard Oil Company, and 'Wit ness Before United States Court. detectives and a number of secret service men gathered closely around Mr. Rocke feller, protecting him from the crush or from possible Injury at the hands of some crank. Crowd In Courtroom. ' Mr.' Rockefeller, closely attended by the officers, entered . the building and made his way to the elevators on the north side. Here a car, devoid of lights, was under the special guard of police and. entering It, Mr. Rockefeller was quickly taken to the sixth floor of the building io the courtroom He was shown a seat to the left of the Judge's desk and was well up Into the room before his arrival was noticed. There was considerable ex citement among the crowd and some con fusion resulted from the efforts made by all the spectators to obtain a auick view of him. He looked around with some curiosity for a moment and then com menced a whispered conversation with one of his attorneys. Mr. Hoy ap-" proacnea ana asked. "Are you comfort able here, Mr. Rockefeller?" "Perfectly, thank you. I am all right," he answered. William Rockefeller, who had been sit ting Bfehind his brother, came forward in response to a signal and sat by the "side of John D., John D. Archbold sat beside William Rockefeller and grouped around them were C. M. Pratt, secretary of the Standard Oil Company, of New Jersey; William P. Howe and F. Q. Barstow, as sistant treasurer of the company; Charles T. Waite, assistant secretary; J. A. Mof fat, president of the Standard Oil Com pany of Indiana: W. P. Cowan, vice-president, and I. W. Stahl, secretary and treasurer of the same corporation.' Other witnesses in the group were H. E. Fel ton, president, and W. M. Hutchinson, secretary and treasurer of the Union Tank Line Company; Fred A. Wann, for mer general freight agent of the Chioago & Alton Railway, and a number of at torneys completed the group. Objections Brushed Aside. Before the hearing of the Standard Oil Company case began, Judge Landis dis posed of several other matters, among them the sentencing of several prisoners (Concluded on Page 3.) ' " ' -t :f t sjii'itin a firtii'iiirriimii : ,,,i;t .. - - - . :: STATE TO SMASH WHOLE DEFENSE Prove Moran Went to Denver for Cash. SHOWOHCHARD HAD NO GRUDGE Sold Interest in Hercules Long Before 1899. TERROR RULED TELLURIDE Colorado Witnesses Will Tell of Al leged "Peaceful" Days Before Martial Law Haywood to Tell Story, but Not Adams. BOISE, Idaho. July 6. (Special.) A lit tle at a time the outlines of some of the features of the rebuttal testimony to be Introduced by the state In the Haywood case leak out. It Is found that among the witnesses for the defense, whose testi mony will be demolished Is Pat Moran, the Cheyenne saloonkeeper. Orchard testified that Moran went to Denver for him in June, 1904, and got $500 from Pettl bone. That was when Orchard and John Neville, with the latter's boy, reached Cheyenne on the occasion of the flight from Independence after the depot explo sion. Orchard wanted more money for his trip. - Moran was a friend of Petti bone and he readily consented to -run down to Denver to get the money, as Orchard did not feel safe in showing him self in. the Colorado city Just then. Moran denied that story in every fea ture. He did not even know Orchard's' name, hearing him called "Shorty," and he could not recognize pictures of Jthe famous witness when these were shown him while he was on the stand. Though he waV"satf)V'Arattlea and discredited oil the cross-examination, he stuck to his de nial. Nevertheless, - the state will "have wit nesses to prove Moran was in Denver at that time, though he testified he was not there at any time within some weeks of that date. Disprove Personal Malice, The state will also have witnesses to prove the correctness of the statement made by Orchard about being with the mob that blew up the Bunker Hill &,ulll van mill In 1S99, thus putting Dr. McGee and the two Mullan witnesses to rout, while it will prove conclusively that Or chard parted with his Interest In the Hercules mine long before the trouble In 1899 and therefore could not have the grudge which, it is alleged, ho enter tained against Governor Steunenberg. All the Impeaching witnesses have stated Or chard charged that Steunenberg prevent ed his becoming a rich man, as he had to sacrifice that property when martial law was declared and escape from the coun try. Charley Neville, the son of Jack Neville, will go in rebuttal. Nothing whatever has leaked respecting his testimony, as he has kept his own counsel well, but he Is credited with having said: "Pa and Orchard talked of many things during that trip which were not in tended for my ears, and I guess they thought I did not comprehend it." The trip referred to was the flight .from Cripple Creek through ' Colorado and Wyoming. In all it is said six or eight of the leading witnesses for the defense will be utterly smashed by the rebuttal, while the ' testimony of many others will be squarely contradicted. Sheriff J. C. Rutan, of Tellurlde. Colo., ' ' ,''' -umml n. - ' T " SATIOXAL GUARD TROOPS and R. M. Wright, of the same place, have arrived to testify In rebuttal. They will tell of conditions that led to mar tial law in that district. Mr. Wright is mining man whom the peaceful ele ment, talked of on the stand by Judge Stevens and others, delighted to . shoot in those "peaceful days" before the advent of the military that were described by so many . witnesses. Others are on the way, including Bulkley Wells. Today the attorneys for the defense held a long conference with Haywood In his cell, presumably going over the ground preparatory to his taking the stand. It Is not thought he will be on before Wednesday. The understanding is that he will go over his entire life and every feature of. this case. -If that is done, he may occupy the stand In direct and cross-examination for several days. It was authoritatively announced today for the first time that the defense will not put Steve Adams on. The terrible story told by Orchard respecting the ex ploits In which Adams assisted him will Concluded on Page 0.) CONTENTS TODAY'S PAPER The Weather. TODAY Fair and warmer. Northwest winds. YESTERDAY Maximum temperature SO de grees; minimum. 57 degrees. roreleH. Scandal in German court spreads to more noble families. Page 3. First Section. Mark Twain banqueted In London. Page 3, First Section Prediction Japan will invade Europe and fight Germany. Page 1, Fourth Section. National. Consul Jenkins recalled for favoring Zelaya In Salvador. Page 2. Second Section. General Bell says Nation not ready for war. Page 1. First Section. Providing coal, guns and drydocks for fleet on Pacific. Page 1, First Section. 1 Domestic. Rockefeller and other Standard Oil men testify before Judge Landls; huge crowd to see them. Page 1, First Section. Runyan and Mrs. Carter remain In Jail after hearing. Page 10, First Section. Thorepson arrives In New York In custody of Joe Day, Page 3, First Section. Crisis near in telegraphers' dispute In Chi cago. Page 2. First Section. First reports on Colonel Tucker's case show no basij for charges. Page 2, First Sec tion. . . Railroads adopt campaign of publicity to conciliate the people. Page 1, Second Section. Pacific Coast. Rebuttal evidence In Haywood case will knock out main points of defense. Page I. First Section. Astoria plans day of entertainment tor Fair banks. Page 4, First Section Lumber rates will be advanced. Page 10, First Section.' Ankeny may give way to Jones. Page S, First Section. ' . Oregon National Guard learning art of coast defense at ?Tt SleVeus. Pag 1, First Section. . . . , . Sports. "Racquet' gives some hints on tennis eti quette." Page 8. First 8ectlon. , Multnomah may send four-man team to Jamestown. Page 4, Fourth section. Work of Portland team shows Improvement Page 4. Fourth Section. St. Johns beats Trunkmakera. Paae 5. Fourth Section. Automobile Club plans endurance run to Salem. Page 5. Fourth Section. Beavers shut out by Los Angeles. Page X, Second Section. - ' Larned .again wins Middle States' tennis championship. Page 2. Second Section. Commercial and Marino. Old hop surplus burden on market. Page 7, - Fourth Section. Week closes strong in stock market. Page 7. Fourth Section. Bank statement a disagreeable surprise. Page 7. Fourth Section. Free selling breaks Chicago wheat market. Page 7. Fourth Section. C J. Millls, manager of the Portland-Coos Bay Steamship Company, entertains friends at luncheon. Page 6, Fourth Sec tion. Portland and Vicinity. Wood dealers ridicule plan of labor unions to break up trust. Page 12, Third sec tion. Another suit for damages growing out of car shortage filed against O. R. & N. Co. Page, 12, Third section. B. 6. Josselyn, newly elected president of Portland Railway, Light & Power Com pany, reaches city. Page 10, Second section. Executive board of Oregon conference. Wom en's Home Missionary Society, upheld by National organization. Page ' 8, First Section. Real estate and building news. Page 2, Second Section. - Visiting Christian Endeavorers to be enter tained In Portland. Pag 1, Fourth Section. Successful session of Western Oregon teachers at Salem. Page 8. Fourth section. ' ' " ' " " ' & J- .IT . READY TO BOARD TRAIIf FOR SEASIDE AT TJITlOJr DEPOT. ARMY NOT-READY FOR GREAT WAR Bell Gives Warning Of , fleers Are Needed. INCREASE NUMBER, PAY MORE Necessary to Train Army When Volunteers Called. PREPARE FOR EMERGENCY Chief of Staff Says We Must Have Framework for Training Patriot Soldiers Quickly When the Occasion Arises. OMAHA, Neb., July 8. (Special.) The United States la in no way prepared for a conflict with Japan, according to Major-General J. Franklin Bell, chief of staff of the Army of the United States, who is making; a general inspection of the country's armament. General Bell spent the flay going over matters at the headquarters of the Department of the Missouri. General Bell Is probably the foremost authority on military affairs In the United States, and he 'has come to the conclusion that the country should not only have a largely Increased personnel of officers of all ranks, hut that they should also receive a - compensation which will make - it profitable for them to remain in the Army and give It their best efforts. General Bell believes that Congress should pass a law providing for a substantial number of officers who may be assigned to staff and technical duty in order that there may be a full quota of line officers and that each regi ment may be fully equipped for duty at all times. ' - ' Must Train Mere Officers. "A nation which depends for defense upon patriotic and citizen soldiery, as we do, who are to be enrolled and mustered Into the service In enormous numbers when trouble arises, ought for selfish reasons, if for no other, to keep a fully equipped framework with which a large expansion could be quickly and efficient ly accomplished when sudden necessity arises. It is a mistake to assume that any intelligent person can perform with out previous training the duties of a staff officer. The blunders and mistakes for which the War Department was so severely arraigned during the early days of the Spanish-American "War were un avoidable because of an insufficient number of well-trained officers available for assignment to administrative staff duties. "Now that we have a large portion of our standing army serving In colonial possessions, the necessity for keeping the standard up is greater than ever. At times like the present it Is necessary to keep our Philippine detachment equipped with a full detail of officers of the line. We never can tell what minute they may be called upon for field service. Used for Other Service. "At present there are many different duties assigned to our Army officers which take them away from their regiments. The officers are usually well-equipped for these duties' and the demand Is be coming greater all the time. The Army officers have proven themselves so pro ficient in various lines that It has become a custom to call upon the War Depart ment whenever any other department of the Government Is In need of a well qualified man and has no appropriation to cover the expense. An Army officer may be detailed because his pay goes on all the time and no extra expense is incurred." .. General Bell declined to be drawn into any statement of his opinion as to whether the trouble with Japan would grow serious, but he intimated .that htB business was that of preparing for emer gencies. TAKE WARXIXG FROM KUSSIA Grosvenor Says Transfer of Fleet Is Prudent Act. AMHERST, Mass., July 6. Professor Edwin A. Grosvenor, of Amherst College, an authority on international law, gave out a statement tonight in reference to the sending of the United States battle ships to the Pacific. Professor Grosven or, who is a relative of Secretary Taft of the War Department, had a conference with the Secretary during the latter's visit to Milbury. Professor Grosvenor said : "The United States desires peace with William Rockefeller, Director . of Standard Oil Company, Who Appeared Before) Judge Landls yesterday. all nations of the world, yet nothing en dangers peace as does unpreparedness for war. Had the Czar in 1903 put Russia In readiness for attack, the subsequent dis asters of Manchuria and the Sea of Jap' an might have been avolffed. Our whole Pacific Coast and our Pacific Insular possessions are today practically defense less. The dispatch of battleships to the Pacific threatens none. There Is in it no menace of provocation to Japan or any other power.- It is merely a pru dent act a putting a lock on our front door. VWe have no preference or desire ever to attack Japan. If war ever comes be tween us, the affront will come from her, not from ourselves. Up to the present an unfortuniate traditional hobby has centered our navy in time of peace in the Atlantic or its tributary waters. "Facing as we do upon two oceans, the navy, the right arm of National defenses, should be equally at liome on both. The strong man armed has little to fear. Each battleship sailing; through the Straits of Magellan is a guarantee of peace. NAVAIj OFFICIALS ARE EVASIVE Assert Ignorance Regarding Plans of Administration. WASHINGTON. July 6. Heads of the Naval Bureau assert ignorance of the plans of the administration to send the battleship fleet to the Pacific, notwith standing official confirmation of the re ports. These bureau chiefs say that they are ensagea oniy -in rouuno worn, and that tfty are making no unusual preparations. They also assert that they have had no oruers to ao oinerwiae. And on the surface there are few signs of abnormal activity in the Navy De partment. Many of the chiefs are away, and the usual proportion of subordinates are on vacation. Plans Fit Exigencies. But the plans of the Department for this particular Summer fit in well with the exigencies of tne moment- una mat ter of coal supply is an instance. The movement of this fuel to the Far East and the Faciflo Coast may bo to meet the average demands of the service. In fact, it Is said that the coal would have gone forward before this had the (Concluded on Page 2 ) f :V i-jSw.tcg- m ? r ' THAN IN COAST DEFENSE Mimic Warfare at Fort Stevens. WARD OFF LANDING PARTIES Practical Work in the Field for Oregon Troops. CAMPAIGN OF TEN DAYS Boys of the National Guard Will Participate With Regular United States Artillery In Maneuvers at Month of the Columbia. FORT STEVENS. Or., July 6. (Staff , Correspondence.) Seven companies of j the Oregon National Guard arrived at ' this garrison late today to participate with the regular United States Artillery In coast defense maneuvers, which are to occupy the next 10 days. Two compa nies were Immediately transferred fo Fort Columbia across the harbor, the other five pitching camp west of the Fort Stev ens Barracks. The troops will be mus tered tomorrow and with the sounding of reveille on Monday will take up the Im portant work of instruction. In. coast de fense. Five days will be spent in the instruc tion work and then will follow the pe riod of simulated hostilities. The mouth of the Columbia River will be in danger theoretically of an Invasion by warships convoying troops for landing. It will devolve upon the Oregon Infantry to sup port the regulars in warding off this in vasion. ' There will be mimic warfare under every possible condition. Sea bombardments will be met and landing parties which have made the port under cover of fire from warships will be at tacked and warded off. . The use of torpedoes and submarine mines will figure largely in the exercises. Practical Warfnro Training. These maneuvers are significant as in dicating the Government's intention of being prepared for any emergency that may arise in the event of a possible crisis in the Far East. Coast defense is a fine art in warfare and with great strips of territory to defend along the western shores It is regarded as Important to have large forces drilled to assist the regular defenders should the necessity present Itself. The value of having a trained reserve force In the state service near at hand is obvious. Seven well trained companies could well form the nucleus of a large coast defense force in time of need. The Oregon infantrymen are to be drilled In all matters pertaining to the coast defense. It Is to be no outing or vacation trip for the Oregon infantrymen. Officers and men will be kept busy throughout the ten days of drills and maneuvers. "It will be business from the start and during each day of the encampment," said Colonel L- H. Walker, district artillery commander, today. While seven companies were detailed for this work at the instance of the Govern ment, substantially the whole National Guard will figure In the manuvers. The Third Oregon Infantry is under orders to leave Portland on Monday and will camp near Seaside. Colonel Walker has de cided to regard this camp as a force of tho enemy, which has succeeded In effecting a landing. Attacks will be made by the forces of both camps. The Third In fantry leaves Portland by special train at 11:15 A. M. on Monday, and Is due In camp by 6 P. M. Big Guns Will Boom. During the period of simulated hos tilities the mouth of the Columbia River will take on a warlike aspect Blank ammunition is to be used in tho big guns and mortars and by the infantry sup ports. There will be no prescribed hour for repulsing attacks. It is learned that the forts will be constantly alert- Ob servers will remain on duty steadily in the various range-finding stations and will report through tactical channels to the battle commander the approach of ves sels other than fishing smacks. Each incoming vessel will be regarded as a squadron of four battleships, four cruis ers and four torpedo-boats. Call to arms will be sounded and all manning details assigned to gun and submarine mine de tachments will get to their posts in double time. Colonel Walker has completed the of ficial order outlining the maneuvers. The essential points of this order follow: Will Handle Submarine Mines. "The Instruction will include drill In close order, drill in extended order, drill In fire discipline; Instruction In battle tactics. Instruction In tent pitching. In opposing landings and resisting attacks from landing parties and Instruction In the services of submarine mines. "Selected men will be detailed from the companies of the Oregon National Guard to receive Instruction in handling theee submarine mines with a view to having a volunteer detachment compe tent to assist In performing these duties In case of actual hostilities. Such in formation relating to these mines as is prohibited by the War Department, will be withheld. "During the first or drill period of the (Concluded on page 10.1