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