Pages 1 to 12 VOL- XXVI NO. 28. PORTLAND, OREGON, SUNDAY MORNING, JULY 14, 1907. PRICE FIVE CENTS. HAIIIwJ MONOPOLY CONDEMNED Rules Transportation From Mississippi to Pacific. EXTENDS ACROSS OCEAN Contrary to Public Policy, Laws and Consti tutions. NO LIMIT TO HIS AMBITION Oregon Neglected That Empire May Be Enlarged. HOW ALTON WAS WRECKED Commission Proposes to Forbid Joint Control of Competing Lines And Regulating of Stock Issues. Hnrrlman Cries "Politics." REPORT OX HARRIMAJf. The full text of the Interstate Commero'CmmihBWirJ'nport on the Harriman system will be found on page3 1 and 8, section 4, of this Isiue of The Oregonlan. WASHINGTON, July 13. A report was made public today by the Interstate Commerce Commission of Its Inquiry Into railroad operations of E. H. Harri man and operations of the so-called Harriman lines of railway, which has been in progress for several months. The report, which was written by Com missioner Franklin K. Lane, Is the unan imous expression of the Commission. The report has been transported to President Roosevelt and the Department of Justice. It Is believed by the Commission that It will be determined by the President and Attorney-General Bonaparte from the report whether the Government will In stitute any sort of proceedings against Mr. Harriman or the corporations in volved in the Inquiry. No recommenda tions are made by the Commission as to whether criminal prosecutions be Insti tuted as a result of Its Inquiry. Only Law Checks Ambition. The report Is an exhaustive summary of the evidence adduced at .the several hearings held by the Commission In the course of its inquiry. It enters fully Into a discussion of the policy pursued by Mr. Harriman In obtaining and main taining control of the various lines of railway in the Harriman system and presents a fairly complete history of the operations of the various lines. Ex- cerpts from the verbatim testimony of s Mr. Harriman are given to show, as stated In the report, "that It is only the Jaw which prevents the concentration In Mr. Harriman's hands of every railroad line lying between Canada and Mexico. This Is the frank admission of Mr. Har riman. himself, made at the hearing." "To gather under one head all exist The Patient "Well, I kupm I can now." ing transcontinental lines, or as many as possible, and to exclude the Incom ing of all competition became manifestly the Harriman policy, which was Inau gurated in 1901 by the issuance of $100, 000,000 of convertible bonds by the Union Pacific," says the report. Mr. Harri man's eventual control of many of the competing transcontinental lines was prevented, it Is pointed out, by the Su preme Court's decision In the Northern Securities case. It Is shown by the re port that It has "not been the Harriman policy to permit the properties brought under Union Pacific control to decline, as in every case they are better today than they were when Mr. Harriman ac quired them. Competition Is Eliminated. Particular stress is laid by the Com mission on the elimination of competi tion in transcontinental business among the Harriman lines, and the Commission indicates that that Is the matter of large significance developed in Its In quiry. Special reference is made to the deal by which Mr. Harriman secured control I y j If r f V 1 E,H. Hnrrlmnn, Whose Railroad Monopoly Is Declared Illrejal hy the Interstate Commerce Commission. of the San Pedro road and the manipu lation of the Chicago & Alton, a very careful synopsis of the financial opera tions In both instances being given. Con cerning the Chicago & Alton transaction, the Commission says: "It was admitted by Mr. Harriman that there was about sixty millions of stock and liabilities issued against which no property, had been acquired, and this is undoubtedly an accurate statement of the facts." The Commission further says concern ing the Alton deal that "It is evident that its history Is rich In illustrations of various- methods of indefensible financing," In its conclusions the Commission says: "The effect of the control of the South ern Pacific by the Union Pacific has been to unify and amalgamate the manage ment of these two roads and steamship lines and to eliminate competition be tween them In transcontinental business and in business to- and from Oriental ports. v "The Joint control of the Alton rail way by the Union Pacific and the Chi cago, Bock Island & Pacific Railway Company has undoubtedly eliminated competition between the Alton and the Rock Island between Chicago, St. Louis and Kansas City. "These are conspicuous illustrations of the 'community of Interests' and 'har-r mony of management' -which Mr. Harri man suggested when he demanded repre sentation upon the Santa Fe board. "If the policy of purchasing and con trolling stocks In competing lines is per mitted to continue It must mean suppres sion of competition." . . .- Should Forbid Joint Ownership. The recommendations of the Commis sion, which are more general than spe cific in '.terms and application, say that the function of the corporation should be confined to the furnishing of transporta tion, and that railways sTiouid not be per mitted to invest-generally in the securi ties of other railway and steamship com panies, except connecting lines . for the purpose of forming through routes of transportation, ' including' branches and feeders. Its surplus funds, says the re port, should be used for the betterment of Its lines and extensions.' In conclusion the report says: "Competition between railways as well (Concluded on Page 2- get up Siamese Twins of Railroad separate. JAPANESE READY TO FIGHT AMERICA Hordes of Brown Men in Mexico. PLAN TO ATTACK FROM SOUTH Immigration Company Bring ing in Mikado's Men. FORCE IS UNDER VETERANS Eight Hundred Japanese Landed In Diaz' Country Each Month Plan to Capture Lower California and Then Fight Xortuward. MEXICO CITY, July 13. (Special.) Nine thousand veteran Japanese soldiers are now in Northwestern Mexico. They are stationed at points in the States of Sonora, Sinoloa and Chihuahua. Each group is commanded by skilled com manders, who saw Bervice in the Russo Japanese war. Thirty thousand Japan ese, the vast majority of whom are vet erans of the Russian campaigns, are In the southwestern section of the United States and Lower California. Three Japanese Generals who held high rank In the Russo-Japanese War have been In Mexico for three months. They dress like Mexican rancheros and are osten sibly buying land. The Trans-Oceanic Immigration Com pany, whose vice-president is T. Hinata, a member of the Japanese Parliament, Is subsidized by the Japanese Govern ment to bring Japanese soldiers to Mex ico. They have been coming Into Mex ico at the rate of 800 per month landing at Sallna Cruz, Manzanlllo and other Pacific ports. In . case of war, the plan Is for the Japanese fleet to sail up the Gulf of Cali fornia, capture the port of Guaymas and .Lus.q.Jhe,J3tate of Sonora as a base of operations in a campaign against the United States. This plan will practically duplicate the operations against Russia, which Japan seized Corea at the out break of the Russo-Japanese War. Japan, in her war against the United States, will despoil Mexican territory, which has no navy, Just as she did that of Corea In the war with Russia. Foreign diplomats here, and especially those of Europe, are watching the de velopments with interest and astonish ment because of the inadequate Ameri can secret . service officials, who seem not to ' be thoroughly informed of Japan's operations in Mexico. This story Is al utely correct in every detail. AOKI URGES INTERMARRIAGE Japanese Ambassador Declares It Is i Solution of Race Difference. NEW YORK, July 13. (Special.) Viscount Aoki, the Japanese Ambassa dor, who came nere to meet Admiral Yamomoto, made the startling state ment" today that Intermarriage will solve the race nroblem, which of late has been markedly manifest on the Pacific Coast. After declaring that Japan had no thought of going to war with the United States, the Ambassador discussed the causes and the cure for the difficulties in California. He said: "I believe It possible for the race question to adjust Itself. I deny that difference of race implies a neces sarily ineradicable enmity. I hold that th6 meeting of the East and West, which it Is given our own wonderful age to witness, will result in a mutual contribution to a larger human .Ideal than either hemisphere now possesses, and to the erection of a leftler. more tolerant and richer civilization than time baa yet seen. "The factors in the peaceful solu- HARRY MURPHY'S WEEK Row must Vice-President Fairbanks says be has adopt ed Roosevelt's pet phrase. OREGOXIAX TELEPHONES TODAY. Oregonlan departments will be con nected this morning by the city cen tral operator until 11 A. M., and thereafter by The Oresonlan's ex change operator In the usual manner. If a subscriber desires to communi cate with this paper before 11 o'clock he should call The Oregonian's reg ular, number Main 7070 and ask for Trunk 2. It an advertiser, he should ask for Trunk 1. The several departments will be connected as fol lows until 11 o'clock: Main 7070: . Trunk 1 Advertising, including "want" and classified advertisements. Trunk 2 Subscription and circula tion. . Trunk 3 Business office. Trunk 4 City news. , , Trunk G Telegraph news. Trunk 6 Mailing room. Trunk 7 Engine room. Trunk 8 Compoelng room. Trunk 9 Managing editor. Home Telephones: A 1509 City news. A 1670 Advertising, circulation and subscriptions. . tion of the racial differences will be commerce and marriage. What is need ed is understanding mutual under standing. The Instruments by which that Is brought about are chiefly the process of trade and the institution of marriage. The Romans knew that. By these agencies they welded the in congruous elements of their mighty empire. The meeting of people from (Concluded on Page 3.) CONTENTS TODAY'S PAPER . The Weather. TESTER-DAY'S Maximum temperature, 70 degrees ; minimum temperature, 64 de - icrees. TODAY'S Showers ; aouth westerly winds. National. Interstate Commerce Commission reports declaring; Harriman monopoly Illegal, and Attorney-General will decide on ac tion. Page 1. Section 1. and Pages 1 and 8, Section 4. Harriman says report Is political document and Is being pursued personally. Page 3. Section t. The Japanese Question. Japanese veterans gather In Mexico, ready to Invade United States. Page 1. Sec tion 1. Ambassador Aoki proposes Intermarriage to cement Japanese-American alliance. Page 1, Section 1. Canada also wrestles with Japanese Influx. Page 1. Section 1. Foreign. Hague - conference will adopt nearly all American propositions. Page 2, Sec- tion '1. Stoeesel and other defenders of Port Ar thur on trial. Page 2, Section 1. Morgan testifies against woman swindler in London. Page 1, Section 2. Domestic. Stensland me-kes money of? victims, even In prison. Page 3. Lection 1. Prohibition law sure to pass In Georgia. Pas;e 2, Section 1. Voliva threatens to build new -Zlon. Page 3. Section 1. Rate law prevents railroads coming to re lief of farmers. Page 1, Section 2. Chicago operators warned to be ready for strike. Page 2. Section 2. Riot between Americans and Greeks at Roanoke, Va. Page 2, Section 2. Rich Illinois banker accused of murdering his wife. Page 3. Section 1. Sport. Beavers defeat Seals, 0 to 2. Page 2. Sec tion 2. Peter Pan wins Brighton handicap. Page 2, Section 2. Jerome K. Travers wins golf championship. Page 2. Section 2. Pacific Coast. Appeal Court refuses to mandamus Judge Dunne in Schmltz case. Page 3, Sec tion 1- Strong rebuttal evidence In Haywood case, followed by charge of perjury against witness for defence. Page 1, Section 1. "Enemy" Is foiled in night attack , on Fort Stevens. Page 11. Section 1. Monster crowds at Gladstone Park. Page 11, Section 1. Two desperate men break Jail at Enter prise; Page 5, Section X. W. O. (Dad) Trine, well-known athletic trainer, dies from cancer. Page 5, Sec tion 1. Commercial and Marine. Record-breaking hop crop predicted by Carmlchael of Salem. Page 9. Sec tion 4- Better bank showing helps stock market. Page 9. Section 4- Chlcago wheat ' market advances onL crop damage reports. Page 9, Section. 4. New York bank statement shows unex pected cash gains. Page 9, Section 4. Ocean traffic gaining between Portland and coast ports. Page 7. Section 4. Portland and Vicinity. Secretary Garfield visits Porland and spends busy day. probing land grant. Page 1, ' Section 1. Four policemen tried before Executive Board Committee. Page 32. Section 2. - END REFLECTIONS ON TOPICS OF THE HOUR Midsummer night's dream . of crooked corporations. GOMES TO -PROBE i MONOPOLY Object of Secretary Ganield's Visit. SPENDS BUSY DAY IN CITY Holds Important Conferences With Oregon Men. ATTENDS PUBLIC BANQUET i Dinner, at Commercial Club Brilliant Affair Head of Interior Depart, ment and Subordinates Are Among the Speakers. To secure information that will en able him to lift the blight of the Southern Pacific land grants in Ore gon is one of the leading objects Sec retary of the Interior James R. Garfield had in visiting Portland yesterday. With a party of high Government officials in the Forestry, Reclamation and Land Departments of the Federal Govern ment, Secretary Garfield arrived here yesterday morning:.- In discussing: the needs of this section of the country in relation to his department. Secretary Garfield's attention was brought prom, lnently to the Southern Pacific lnd monopoly and the complete resistance made to any attempt to force the sale of lands held in trust by that com. pany. It is believed that the Secretary's visit will result in the loosening: 01 the grip of the railroad corporation on hundreds of thousands of acres In this state that are sought by actual set tlers. Confers With Mr. Bristol, Long: conferences were held yester day by Secretary Garfield with United State District Attorney Bristol on 4M subject. Vigrorous efforts, it was learned, are to be' put forth, with the full co-operation of the Secretary ot the Interior, to force the hand of the Southern Pacific and to compel the sale of lands held by that company In defiance of the terms of the compact entered Into with the Government when the lands were granted. So earnest Is Secretary Garfield in this work, that after a splendid ban quet given him last night at the Com mercial Club, which did not end until 1 o'clock, he went Into a conference with District Attorney Bristol on the subject of Southern Pacific land grants which lasted nearly until dawn. Data concerning: the grants, which has been secured under the direction of the Dis trict Attorney, was carefully examined by Secretary Garfield and It is under stood that he has his mind fully made up to Insist that the Southern Pacific ac complish the sale of these lands to bona tide settlers. Good News for Settlers. This Is the most significant result of Secretary Garfield's visit to Port land. In this work he will accomplish what hundred3 of Oregon people are seeking: and with the assurance that he will proceed actively along: this line tlie hopes of many claimants of these lands will rise accordingly. A fitting: climax to the visit of Sec retary Garfield and his party to Port land yesterday was the banquet last night. There have been few public dinneis given in the- 'city that have called forth a larger attendance, and many brilliant speeches were made. Secretary Garfield was the center of attraction, naturally, but there were many other speakers of prominence, notably Judge Stephen S. Lowell, of Pendleton, who made an eloquent ad dress, in watch he pleaded for Justice to all, irrespective of their station In life. In this speech, he echoed the sen timents expressed by Secretary Gar field. After a day spent in Portland, in which the Secretary and his party sought to learn the needs of the great Pacific Northwest In land and irriga tion matters, the party will leave the city at 7:45 this morning for Klamath Falls, where they will inspect the Klamath irrigation project. Banquet Brilliant Affair. The banquet; last night was a great success from every standpoint. The affair was under the personal direction of Steward Breckenrldge, of the Com mercial Club. The long tabfes were handsomely decorated with lilies, sweet peas, smilax and other greens, and the dining room presented a brilliant ap pearance. Judge George H. Williams was toast master. On his right sat the guest of honor, Secretary . James R. Garfield. Governor Chamberlain sat next to him, while Commissioner Ballinger, of the General Land Office; Glfford Plnchot, Chief Forester; F. H. Newell, Director of the Reclamation Service; W. J. Mc- Franklin K. I.ane, Who Wrote the Interstate Commerce Cam mission' Report On the Harri man System. Kee, secretary of the Inland Water ways Commission, and others promin ent in the Pacific Northwest were also seated at the head table. George H. Williams, who presided, in introducing Secretary Garfield, gave a few reminiscences of his acquaintance with President James A. Garfield, father of the guest of the evening, and said the father's mantle had fallen upon the son, who 1b bearing an honored name with credit to himself and the Nation. Governor Chamberlain was introduced as the first speaker. - He said it was a great pleasure to him to welcome these distinguished guests to the state, not only for - thelr-ewn worth, but because they represent the Reclamation and the For estry service. He spoke of the great tracts In Oregon reserved from settlement by the forestry policy of the administra tion and the railroads, and pointed to the progress Oregon is making despite these things. Governor Chamberlain said he believed the people of Oregon approved the forest reserve policy of the President and he pointed to the good being done by the Reclamation Bureau. His remarks were loudly applauded. Governor Chamberlain then look up the question of Southern Pacific land grants, charging that the railroads have not kept faith with the people. Should Go Back to People. "Without advocating a policy of con fiscation," said he, "I believe the rail roads and the wagon road companies Bhould keep faith with the public and that these lands should go back to the peo ple to whom they belong. "While some of our people have been proved dishonest, there are thousands of people who are honest for every one proved dishonest." Governor Chamberlain then briefly wel comed the visitors to- the state. Judge Williams then Introduced Secre tary Garfield, who paid a graceful trib ute to Judge Williams.. He said: "We have been traveling through the West In order to become better acquaint ed. Your Governor has said -that large parts of vour state have been withdrawn from settlement. From what 'you have done with the parts of it that remain, I do not knpw what you might not have done with nil of it If freely placed at your disposal. "The West Is constantly moving. We in Ohio were but a little while ago the pioneers. We have not been slow to recognize what you are trying to do. The geological and the forestry sur veys were created that you people of the West might be best served. We have come out here to shake your hand, to look you In the face, that we might better understand your needs and your best Interests. "It is true we have special agents (Concluded on Page 3.) Secretary Garfield vlftlts Portland; devotes day to business of "Interior Department." Uncle PERJURY CHARGED T'M-GEE Haywood's Witness Ac cused of Crime. STATE'S REBUTTAL EVIDENCE Case for Defense Riddled at Several Points. ANOTHER MAN CONFESSES Dewey Tells of Part In Wardner Riot and Says Davis Distributed Guns More Arrests for Perjury Likely. BOISE, Ida., July 13. (Special.) It has -been known for two weeks that the state intended to prosecute some of the defense's witnesses in the Haywood case for perjury, and it has also been known that Dr. L L. McGee was on the list, but It was not until tonight that a warrant was issued. This is for the arrest of the doctor. The com plaint was sworn to by Sheriff Bailey of Shoshone County and the officers at Wallace have been notified to hold the accused man until a deputy sheriff can get there from Boise. McGee' testimony has always been regarded as being "away off," either from lapse of memory or from some other cause. The state knows Harry Orchard was not in the Coeur d'Alenes in 1904 and knows he was at Wauiner when the Bunker Hill & Sullivan mill was blown up. McGee testified he saw Orchard In Wallace In 1904 and he also testified he thought he saw Orchard playing poker at Mullan on the day of the explosion In 1399. Flynn and ilcllale in Danger. Two Mullan men, Dominick Flynn and Pat McHale, testified they saw Orchard playing poker and one of them "Stated he saw McGee enter the room where the game was in progress. One of these men Is placed in an awkward position by testimony given today, and It Is possible more will go In. Today's testimony was given by Dan Gainey, showing that Flynn about May, 1899, disclaimed having seen Orchard for several months. It Is not known who are the others whom the state contemplates' arrest ing, but It Is possible Flynn is one of them and "Big Bill" Davis .another. One of the Colorado witnesses is in the meshes deeply, there being half a dozen witnesses to show he perjured himself. The witness, William Dewey, who told such a remarkably straight story today respecting the riot of 1899 and the part taken in it by Bill Davis, was working at Goldfleld, Colo. He became wrought up after reading Orchard's story and the subsequent denials of it by witnesses for the defense and mude up his mind to come here and tell what he knew. . His willingness to testify was communicated to those representing the state, and his appearance followed. First Voluntary Witness. His testimony was remarkable as be ing the only testimony ever given by a man connected with the rioters in 1899 that ever approached the truth. What he told of the part taken by "Big Bill" Davis has been well known to hundreds of peo ple for seven years; also the proceedings at the Gem meeting; but this. Is the first time anyone implicated in the work of that day has frankly told the facts on the witness stand. The state made a splendid showing in the rebuttal testimony today, and It is promised that other witnesses will be (Concluded on Page 2.) Bam visits the Pacific with a few warships. IS eS