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