TIIE SUNDAY OREGONIAX, PORTLAND. JULY 14, 1907. GEORGIA TO ADOPT PROHlOlTiON Li Opponents Scarcely Make : Fight on Bill in State Senate. ADMIT THEY ARE BEATEN Country - Districts Want Absolute Prohibition, Cities Plead for Local Optlom Useless Pleas Made tc legislature. ATLANTA, Oa.. July 13. (Special.) January 1, 1S08. Georgia enters upon a period of atate prohibition, joining Kansas, Maine and' Dakota, unless a miracle happens between now and next Saturday. This morning the Hardman prohibition bill came up for passage before the Senate and, almost without a fight was started on its way to be come a law by the decisive vote of 34 to 7. There was a faint int of a fili bustering campaign oa Friday after noon, but ' Saturday morning the fili bustered were as tame as sheep. The Georgian Is fighting for prohibi tion, the Constitution and the Journal are against it; the Governor Is for local option, and the business element In all the large cities Is more or less In favor of local option, but the country dis tricts are strong for prohibition, and even In the cities the anti-whisky ele ment is' holding the whip hand. Seab "Wright. Dr. Nunnally, Dr. Broughton, Mrs. Mary Harris Armour, Representa tive Covington, Senator Hardman and Dupont Guerry have swept the state before them. At the present time there are 125 dry counties In Georgia, the wet ones being confined largely to the cities. Delega tions from the big cities have appeared before the Senate and House commit tee, protesting against prohibition and stating that property would greatly de preciate in value and the measure would not prohibit. The Constitution tomorrow morning will acknowledge pronlbltlon la car ried. The Covington bfll In the House will be passed next week and the Gov ernor will sign the measure. MONOPOLY .IS CONDEMNED (Continued from First Page.) as other industries is the established pol Jcy of the Nation. And while the acqui sition of small minority stock of a com peting line might not decrease the com petition; yet the acquisition of. any con siderable amount of stock with represen tation on the board of directors of such railway unquestionably has, the effect of diminishing competition and lessening to an extent Its effectiveness. "The time has come when some reason able regulation should be Imposed upon the Issuance of securities by railroads engaged in interstate commerce. "In the opinion of the Commission reg ulation will tend to make securities safer and more secure for Investments, and therefore benefit not only the railroads but the public." ALL POLITICS, SAYS UARKIMAN Report Part or Personal Pursuit An swers Some of Charges. NEW YORK. July 13. Mr. Harrlman, speaking by telephone from Arden to night, said: "Rrom what I am told, the report is a political document and part of a personal pursuit of me. The tone of the report and the method of Its promulgation show that. Imagine a court or any judicial body sending copies of its decisions around secretly to newspaper publishers in advance under pledge to publish It simultaneously Sunday morning. That is what the Commission did. Their opinion was put In type several days ago and sent to newspapers throughout the coun try with the following printed in bold tpye at the head: " 'Confidential. To all newspapers: This report is released for publication on Sun day morning, July 14, 1907, and not be fore. "It Is deemed good politics to attack me. But I can stand my part better .than the people of the country can stand that sort of preference on the part of the Government tribunals charged with the duty of impartially administering the laws. ', "I shall study it carefully and have something to say about it later. But from what I am told. It Is full of strange mis statements of fact. For example, in refer ence to the Chicago & Alton it says I caused about 312,000,000 to be credited to construction expenditures in order to find an excuse for borrowing money to pay divi dends. As a matter of fact, that was a written recommendation, made by Presi dent Felton when I was In Alaska, and it was adopted by the board of directors at a meeting at which I was not present. "Again, It Is said that a certain method of accounting that was carried out would have the effect of covering up the pay ment of the special dividend, thereby in timating some wrongful concealment. This is a most extraordinary statement for the writer of the report to make, when It Is considered that the stockhold ers necessarily knew of the dividend when every one received his share and when It was published In every financial journal at the time and was reported to the Stock Exchange. The suggestion, therefore, of any reason for concealment Is most unfair. "1 am informed by those who have ex amined It more carefully that the article Is full of errors as glaring and Inexcus able as these, but I shall read it carefully and make a full statement about It, pari ticularly my connection with the Chicago & Alton readjustment, in a few days." - Storms DnmJga Hua.lam crops. .BERLIN. July 13. A dispatch to a news agency from Odessa says that, following a spell of tropical heat, vio lent storms have been experienced throughout the southern provinces of Russia. It Is estimated that the South Russian crops of wheat, rye and barley this year will be below that generally described as a low to middling: yield. REPORT E. H. Harrlman exercises powers "well nigh absolute over the Union Pacific and Southern Pacific sys tems. Mr. Harrlman could travel from New York across America to China and back to Omaha on railroads and steamers he controls. He controls the Illinois Central and the only line along the Pacific from the Columbia river to Mex ico, and has acquired through his companies large interests in the Baltimore & Ohio and New York Cen tral. He admits that only the law prevents his obtaining control of every road between Canada and Mexico. With the proceeds of $100,000,000 Union Pacific bonds he bought control of the Southern Pacific and a. majority of Northern Pacific stock, carrying control of the Burlington but control of the Northern Paclflo and Burlington was prevented by a Supreme Court decision. ' OGDEN GATEWAY CLOSED. Through .the Southern Pacific he acquired control of the Central Pacific, and toy unifying the Union Pacific and Southern Pacific management eliminated competition between .them and closed the Ogden gate way to all competitors of the Union Pacific. The two roads have the same general officers and agents. Before the Union Pacific got control the Southern Pacific was a. competitor for traffic between the Atlantic and Pacific seaboards and between the Atlantic and the Orient. Now there Is no actual competi tion. NO COMPETITION BY COAST STEAMERS. Formerly the Union Pacific competed at Portland for Pacific steamship business and the O. R. & N. eteamers from Portland to San Francisco competed with the rail line. The purohase of the Pacific Mail has killed competition over the Panama route. The consolidation of Union Pacific and Southern Pacific steamer lines has killed competition, for an independent line without railroad consent has been proved impossible. . Competition of the Santa Fe steamers for Oriental traffic has been killed by a division of the rail haul between the two systems. Our trade relations with the Philippines, Hawaii and the Orient depend on steamship business. The Union, Central and Southern Pacific roads were built by National aid to secure a. through route from the Missouri to the Pacific. They traverse a territory where the Government is spending large sums for development. The (public is entitled to have the Central Pacific open as a. competing highway. The union of the three lines would have been forbidden had the Government contemplated single control as possible. BONDS ISSUED TO BUY OTHER RAILROADS. The Union Pacific and Oregon Short Line have assumed obligations of 3181,000,000 for the purchase of stock in other roads. The Harrlman interest In the Santa Fe has fceen followed, by joint ownership of stock in the Northwest ern Pacific Company, to which both systems sold their lines In Northern California, The Illinois Central and Alton, both of which Mr. Harrlman controls, are competing Jlnes. ' WRECKING OF THE ALTON. The debt of the Alton under the Harrlman rule has been Increased abou,t $90,660,00(1 while only 118,000,000 has been added to the value of the property. The Harrlman syndicate sold itself as stockholders 340,000,000 of Alton toonda at 65 and then paid its members 30 per cent dividend out of the proceeds. Then Mr. (Harrlman "fixed" the books to hide the trans action. The road has been left without money to buy equipment or build a road for which bonds had been sold. - ' Kuhn. Loefb & Co. were richly rewarded in commissions. " Control of the San Pedro, Los Angeles & Salt Lake by the Union Pacific has eliminated It as a com petitor. The Union Pacific and its directors own 17 per cent of the Santa Fe stock, and the two roads divide not only Oriental traffic, but California fruit traffic. "If the policy of purchasing and controlling stocks In competing ' lines is permitted to continue," saya the Commission, "it must mean suppression of competition." RECOMMENDATIONS. The function of a railroad corporation should be confined to the furnishing of transportation. Rail roads should not be permitted to invest in securities of other railroad and steamship companies, except con necting lines. The surplus funds and credit of a railroad company should be used for betterments and extensions in contiguous territory. About 150,000 square miles of Oregon surrounded by the Harrlman lines are not de veloped, while funds .which could be used for that purpose are invested in distant roads. Investment of railroad funds in other stocks endangers the solvency of the roads. It Is contrary to public policy as well as unlawful for railroads to acquire control of parallel and com peting lines. It Is prohibited by Federal law and by the constitutions and laws of about 40 states. Com petition is the policy of the Nation. Ownership by one railroad of stock In a competing railroad should not be permitted and they should be prohibited from having common directors or officers. Issuance of securities by railroads should be regulated. They should be prevented from inflating se curities for speculative purposes. i PERJURYISCHAHGED (Continued from First Page.) equally effective in demolishing some of the stories told for the derense. HARD BLOWS FOR DEFENSE Rebuttal Evidence Disposes of Much of Its Theory. BOISH, Idaho, July 13. Sensation fol lowed sensation quickly In the Haywood trial. today, when the state commenced Its rebuttal evidence. One witness confessed to participation In a labor riot resulting in the death of two men, the record of conviction of murder In the second de gree of a witness for the defense was introduced and the proof of another's having been sent to the insane asylum upon the information of his neighbors was offered, its admissibility was argued and the decision of the court will be handed down on Monday morning. Finally, shortly after court adjourned for the day. Information was sworn to and a warrant for perjury Issued in a magistrate's court against Xr. I. L. Mc Gee, a physician of Wallace, Idaho, who was - one of the -witnesses for the defense in the discrediting of Orchard. The war rant was- placed in the hands of Sheriff Shad Hodgin, of. Ada ' County, who at once: telegraphed to the authorities at Megee's home to make the arrest. Confesses Part In Riot. "William Dewey, a witness in rebuttal for the state, confessed to active armed participation in the destruction of the Bunker Hill and Sullivan concentrator at Wardner. Orchard swore that William F. Davis, known among his fellows as "Big Bill" Davis, led the mob. Davis himself swore to having been elsewhere and positively denied any connection with the crime. Dewey swore today that not only did "Big Bill" accompany the mob to Wardner, but that he served out guns, rifles and ammunition to the union men gathered in the union hall at Burke be fore they went to Wardner. With downcast eyes and fingers nerv ously picking at the braiding around the rim of a gray sombrero, Dewey told it all. Repeatedly he was requested to raise his voice, and with a quick glance at counsel he complied, only to sink back Into an almost inaudible tone. Under the provocation of sneering cross-examination by B. F. Richardson, he rallied, and even became combative, but throughout the recital he gave evidence of a certain remorse. McGee Wealthy Idahoan. Dr. I. L. McGee, against whom a war rant for perjury was Issued this after noon, is a wealthy resident of Wallace. In his testimony for the defense he swore that Orchard was in Wallace in August and July, 1904. It was at this time that the state alleges, and Orchard hlmBelf says, he was in Denver planning the Bradley murder. One of the witnesses today swore that Orchard was at his hotel in Denver In July or August, 1904. McGee was also one of the witnesses who swore that Orchard was at Mullan on the day of the explosion at the Bunker Hill and Sullivan concentrator. Ten witnesses in rebuttal were exam ined today. Most of them were called to disprove statements as to Onphard's movements in North Idaho and as to the disposal of his Interests in the Hercules mine. One of the most interesting of the witnesses was August Paulson, who was at one tune a partner of Orchard In the Hercules mine. Orchard swore that he planned to kidnap Paulson's children and extort a ransom of 330,000. Paulson was called at this time to show that Orchard disposed of his Interest In the mine some time before he left the state. Paulson will be recalled later. fcsunsel for the state expect to finish the rebuttal by Tuesday evening or Wednesday at the latest. The announcement of Mr. Darrow at the opening of court that the de fense rested took the state by sur I ON HARRIMAN'S MONOPOLY prise, as he had announced the calling of a powder expert to testify as to the Bradley explosion, but the state's witnesses In rebuttal were on hand and there was no delay. John C. Rice was recalled and tes tified that In November, 1905, Orchard wore no mustache, thus contradicting a witness who described. Orchard as a man with a large mustache at that time. Gainey, of Walla Walla, who lost both feet in the Independence explosion, testified that he lived in the Coeur d'Alenes In 1898 and 1899 and lived with Orchard part of the time. He said that Dominick Flynn, who had testified that he was playing poker with Orchard at Mullan the day of the Bunker Hill and Sullivan explosion at Wardner, had told him he (Flynn) had not seen Orchard since February, 1899. Under cross-examination by Mr. Rich ardson, he said he had no present busi ness, having gone out of business after being blown up. He denied that his willingness to testify was due to his being blown up. He had written to Orchard several times since the latter's arrest. O'Neill an ex-Convict. L. E. Grimshaw, of Deadwood, S. D., was offered to identify a prison record showing that In 1880 John M. O'Nein, editor of the Miners' Magazine, was In the Dakota penitentiary under sen tence for manslaughter. The defense objected and later there was an argu ment on the admissibility of the evi dence, but Judge Wood ' admitted it. Mr. Hawley then read the papers show ing that O'Neill was charged with the killing of Daniel Falvey and upon be ing convicted of manslaughter In the second degree was sentenced to one year and six months in the peniten tiary. Several railroad officials testified to disprove the statement of John D. Klllott that he heard Orchard make threats against Steunenberg on a train fietween Welser and Boise on November 28 or 29, 1905. Their train records showed the trains did not make the connections Mr. Elliott had described. J. K. Stephenson, clerk of the Cullen Hotel at Salt Lake, testified that Orchard was at that hotel for three weeks, beginning November 25, 1905. but his records only showed Orchard's name entered on November 25, It be ing Orchard's custom to pay nightly In advance. To contradict Dr. McGee, who tes tified to seeing Orchard In the Coeur d'Alenes for several weeks in July or August, 1904, J. H. Moser, keeper of a Denver lodging-house, testified that Orchard stayed with him under the name of Dempsey for two weeks at that period. He kept no records and could not recall the names of any other transients of that time. He had been summoned by a Plnkerton man. Personal Malice Disproved. August Paulson gave important evi dence to contradict the theory that Orchard killed Steunenberg from per sonal malice for loss, of his interest In the Hercules mine by being driven out of the Coeur. d'Alenes after the Bunker Hill and Sullivan explosion on- April 29, 1899. Mr. Paulsen, who has grown rich through the Hercules, testified that after early Spring of 1898 Orchard had nothing to do with the property, Dan iel Cardoner having succeeded to his Interest and grown wealthy by it. He was corroborated by showing that Orchard transferred his Interest to Mr. Cardoner on March 7, 1898. The state offered evidence of John D. Elliott's admission to the Insane asylum, but the defense objected, say ing the witness had admitted the fact. Judge Wood will rule on the question Mpnday. I. To contradict the statement of "Big Bill" Davis for the defense that he was in Gem... Idaho, the day of the Bunker Hill and Sullivan mill explosion, the state put on E. L. Hale, master me chanic of the Idaho Mine Smelting Company. Mr. Hale said he was In Gem the day of the explosion and that he saw only two other men In town that day. There was only one saloon open, and he was in it On cross-examination Hale said he was down town only about tea minutes. Davis also stated, when on the stand for the de fense, that he did not go to Wardner the day of the Bunker Hill explosion and knew nothing about it. , Davis Handed Out Gans. William Dewey, a miner in the Vindica tor mine at Cripple Creek, testified that he was in Gem, Idaho, the day the men started for Wardner. At that time he was a member of the Western Federation of Miners. He attended the meeting the morning of the explosion and saw "Big Bill" Davis there. "What was he doing that attracted your attention?" asked Mr. Hawley. "He was handing out guns and ammu nition from the stage of the union hall." "Did you get a gun?" "Yes, sir; BUI Davis gave me one." "Did Davis go with you and the others to Wardner?" "Yes, sir, he did." "Did he go to the Bunker Hill & Sulli van mill?" "Yes, sir." "You saw him there?" "Yes, sir." "Did you see him at Wardner after the explosion?" "Yes, sir." The witness said Davis was in the rush on the mill when two men were killed. On cross-examination, Mr. Dewey said the meeting at Gem was not confined to the members of the union, but was open to the general public The witness could remember the names of only two men besides himself and "Bill" Davis who were at the meeting or on the train. One fellow was named Shakespeare. "Was Bacon anywhere around?" asked Mr. Richardson. "I didn't know him,"' replied the wit ness. "Is Shakespeare dead?" "I don't know." Mr. Richardson asked If there was an other big fellow In Gem known as "Big Bill" Davis and who afterwards took the name of Goldensmlth and was elected to the Legislature. "I knew Goldensmlth, but I never heard him called Davis. He was about six feet tall and very -slender." Mr. Dewey said he remained in the Coeur d Alenes several months after the Bunker Hill explosion. He was never arrested or put in the bull pen. When the strike was declared In Cripple Creek he deserted the union. No Promise of Immunity. Mr. Dewey was closely questioned by Mr. Richardson as to how he came to appear as a witness. He said the fore man of the mine told him to go to the Plnkerton office in Denver. He did so and was given 350. Mr. Dewey said he was at one time Town Marshal of Cripple Creek. Mr. Richardson returned to the trip of the mob to Wardner and asked Mr. Dewey to give more names. He said he remembered a man named Paddy Burke, who, he said, carried a Springfield rifle with a bayonet oh It. Urged still further to give the names of people in the car with him on the return trip, Mr. Dewey hesitated a long time and finally said he could not remember any of them. "Well, who do you think were there?" demanded Mr. Richardson. "Well," replied Mr. Dewey, "you get me the payroll of the Frisco mine and read it over and I'll tell you that I think every one of them was there." "Have you been promised any Immuni ty ior telling what you know about this matter?", "No, sir."' "Did you see Orchard on the train that day?" "I don't know Orchard." "What made you decide to tell what you knew?" "I saw Orchard's confession." "And after seeing the way he was treated you thought it would be a good thing ior you to come and do likewise?' "No, I never thought of that." Well-Known Banker Dead. PASADENA. Cal., July 13 William R. Barnes, vice-president of . the Union Sav ings Bank of this city and well-known lu banking clroles of California and Colo rado, died this morning at his .horns in Pasadena. WIH OH ALL-POINTS American Propositions Accept able at The Hague. DRAG0 DOCTRINE STANDS All Powers Will Support It, Also Permanent Arbitration Court. America Will Propose Peace Conference. THE HAGUE. July 13. Notwith standing the pessimistio views held in some Quarters concerning tne peace conference and its work, the members of the American delegation feel confi dent that some good result will be reached in the exchanges of opinion among the plenipotentiaries of the countries represented. It now appears that all of tne American representatives' propositions will be satisfactorily received. Tne question of the immunity of private property at sea, although bitterly op posed, will have a considerable major ity In the vote next week, and this will be a further step towara tne adoption of this principle in another conference. The rules regarding the bombardment of unfortified towns, vil lages, etc., originally presented by America, will be substantially adopted with the approval of the proposal drawn up by the Italian delegation bringing Into harmony the amerent views on this subject. Drago Doctrine Accepted. The suggestion regarding the collec tion of pecuniary contractual debts without the use of force will be sup ported by all of the great powers, and the proposal concerning the establish ment of a permanent court of arbitra tion and the prohibition of the use of unnecessarily cruel bullets have Deen favorably received. Finally, in a plenary sitting, tne United States will present a plea for the permanency of the conference in Itself as an Institution, the holding oi periodic meetings, and the arranging of a Drogramme. The American proposition relating to ships of war reads: Rules Against Converted Ships. A warship must be commanded by a commissioned officer with a crew subject to military law and discipline. In time of war no merchantman can be trans formed Into a warship except it be com manded and equipped as before; and this transformation can only occur in the territorial waters of the state of which the owner of the vessel is a subject or In territorial waters under the effective control of the military forces of such a state. Another American proposition states first, that arms of war, ammunition. provisions and objects only empioyea for military purposes or military im plements, form absolute contraband of war; that conditional contraband con sists of -provisions, materials and ob jects employed both In peace and war and which, because of their character, special quality or quantity, are nec essary for military purposes and are destined to the armed forces or to the military establishments of the enemy; third, that a list of the objecs to be in cluded in either of said categories must be published by the belligerents and notification of such must be made to neutrals or their diplomatic repre sentatives. The capture or confiscation of contraband, the proposition states, cannot occur until such notification has been made. TRY PORT ARTHUR "HEROES" Stoessel and Others Accused of Send ing Fake War News. ST. PETERSBURG, July 13. A docu ment containing the indictments against Lieutenant-General Stoessel, the defender of Port Arthur; Lieutenant-General Fock, who commanded the fourth east Siberian division at Port Arthur; Major-General Reiss, chief of staff to General Stoessel, and Lieutenant-General Smyrnoff, who preceded Lieutenant-General Stoessel In command at Port Arthur was made public here today. These officers are being tried by court-martial on charges of cowardice and treason. The indictments set forth that etqessel and Fock deliberately sent false reports of battles that never occurred, recom mended their own fitness as generals who had lost battles for decorations and sur rendered the Port Arthur fortress in spite of the fact that they had at hand ample munitions for resistance. All the crimes with which Stoessel, Reiss and Fock are charged are capital offenses. EUROPE HAS SUMMER SHIVERS Unseasonably Cold With Snow la the Vosjres Mountains. BERLIN. July 13. Unseasonable cold prevails throughout Middle Eu rope. Temperatures as low as 41 de grees have been recorded in Southern Bavaria, and It is reported from Stras burg today that snow was falling in the Vosges Mountains. In Berlin, for 36 out of the last 48 hours,' American tourists In shirtwaists and straw hats have been shivering around the hotels. Workmen Parade at Toulon. TOULON, France, July 13. Eight thousand workmen, including a num ber of officials, paraded today and demonstrated against the government. Many business houses were closed. Machinery Goes Free. SAN JOSE, Costa Rica, July 13. Con gress has passed a measure permitting the following goods to be brought Into the country without the payment of Good Taste in Selecting Jewelry And other lines carried in leading Jewelry stores can find unlimited opportunity In the hundreds of different designs and conceits shown in every line carried at this establishment. In silverware, cut glass, watches, clocks, lamps, art ware, mountings and other beautiful and attractive offerings, you will find originality In design and superior workmanship only shown by a few of the leading houses In the United States. This is one of the advantages of trading with a house that carries a stock of almost unlimited variety. Jewelers, Optician and Diamond Importers. Corner of Third and Washington Sts. Portland, Or. Suits $20 to $40 Trousers $4 to $10 I make some mighty strong claims for Columbia Tailoring but no man ever came to my store and found that I'd made made one that wasn't gospel truth in every particular. When I say that I make the best suits in Portland, I mean it. I'll give you as fine fabrics as you can buy anywhere, and I make as fine garments as any tailor in the land can produce, and I save you money. To make a still further incentive for men who haven't yet learned the goodness of Co lumbia tailoring, I'll make now, during mid-season, x An Extra Pair of TROUSERS FREE with every suit costing $22.50 or more I couldn't afford to do this if I did not expect to secure your permanent patronage. I want you to get acquainted with this tailor shop I know you'll like it. GRANT PHEGLEY, Manager. Cl)oOLBft Elks Building Seventh and Stark duty: Machinery for the making of cheese and butter, shovels, axes, mach etes, farm carts and farm wagons, and aU kinds of agricultural machinery. Paris Decorates for Bastille Day. PARIS, July 13. Paris Is profusely deo orated tonight, with flags and bunting for the national anniversary tomorrow. The popular merrymaking began this eve ning. HEAVY TRAVEL To Seaside and Clatsop Beach. Hundreds of people are taking advan tage of the excellent train service the Astoria & Columbia River Railroad are giving between Portland and Seaside, two through trains leave daily from Union Depot, 8 A. M. and 6 P. M., arriving at Seaside 12:40 P. M. and 10:30 P. M. In addition to this service the "Seaside Flyer," the crack train out of Portland, leaves (Saturdays only) 8:10 P. M., arriv ing Seaside 6:50 P. M. Information and tickets can be had by calling at Northern Paclflo ticket office. Third and Morrison streets. New York City Is 134.600 greater In popu lation than all of the remainder of the state. Hood's Sarsaparilla Has surpassed all other medicines, in merit, sales and cures. Its success, great as it has been, has ap parently only just begun. It has received by actual count more than 40,000 testimonials in two years. It purifies the blood, cures aU blood dis eases, all humors and all eruptions. It strengthens the stomach, creates aa appetite and builds up the whole system. 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