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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (July 28, 1907)
THE SUNDAY OREGOXIAN, PORTLAND, JT7IT 28, 190T. SAN FRANCISCO BOND AND MORTGAGE COMPANY id Ml NBLI QCKS CAPITAL, $ 1 0.OOO.OOO STATE'S PROGRESS Obstruction, Not Construc tion, Railroad Policy Pur sued Dealing With State. BUILDS ONLY TO BLOCK That Railroads Are Playing Deep Game .In Srkane Joint-Rates Case Is Opinion of Thomas McCusker. HOW HARJRIMA"S POLICY HAS RETARDED OREGON. Following are the charges made by Thomas McCusker against Harrlraan: That Harrlman has not built a single mile of road In Oregon except to keep others out. That It Is not Intended to com plete the Coos Bay line. That the Klamath Falls line is lit tle more than a paper railroad. That practically all of the Harrl man projects In Oregon are "occu pation" roails. That Harrlman has repeatedly at tempted to block other lines by seis ing right-of-way privileges. That work on Harrlman projects ts topped when competing builders have been crowded from field. That Harrlman has left In Oregon the largest area Wi the United States not served by a railroad. That Harrlman and other railroad' Interests are playing a deep game against (he f-aclflc Coast cities In the Spokane rate fight. BY THOMAS McCUSKER. A great deal has been said recently about the railroad situation, and our esteemed friend and philanthropist, Ed ward H. Harrlman, has come In for. a large-sised chunk of free advertising;. None of It, however, merited mors than the statement of President Roosevelt that he was a menace to the country. For a number of years the agents of this dis tinguished freebooter have flooded the press with interviews and statements to the effect that the Harrlman system was about to spend several millions of dollars for the construction of this or that branch of his railroad, when as a matter of fact nowhere in the state of Oregon, or per haps on the Pacific Coast, can you point to a single mile of road he voluntarily built or that was not constructed for tha purpose of preventing someone else from building Into what his attorneys are pleased to term territory discovered by them. Mr. Cotton was most anxious to Impress upon Interstate Commerce Commissioner Lane, at the investigation recently held in this city, that Mr. Harrlman had con structed several hundred miles of road in this state, and cited the Coos Bay branch, giving full mileage, when he knew that it was not the intention of the company to ever complete the road, and that it is in tended solely as an "occupation" road that is, it Is a bluff to hold anyone else out of the territory. I predict that It will stop at Scottsburg, the head of navi gation on the Umpqua, unless someone else attempts to get Into that territory, when they will be forced to complete it. ,It is a matter of history that the Southern Pacific Company has been "Just ready" to construct this road for the last ten years, but as no very aggressive person appeared on the horizon, the road was not commenced until perhaps Gould's deter mined fight to get Into California alarmed the system. We have Harrlman's recent attempt to prevent Hill's North Bank road from gaining entrance to this city as another illustration. I do not recall, however, that Mr. Cotton claimed any credit for the construction of this particular branch. He did. however, snatch a few laurels from Mr. Lytle's crown regarding the Co lumbia Southern, as every one that Is, nearly every one was under the Impres sion that Mr. Lytle really Invaded the sacred territory of Ev H. and built that road all by his lonely. They are also la boring under the hallucination that he is building the line from Hillsboro to Bux ton, thence to Tillamook, but behind the scenes this is on Vecord as another occu pation road, made necessary by the pos sibility of the United Railways effort. Then we have the' branch to Joseph, which may eventually get there; but which was born to prevent other parties from building from Lewlston into that territory. Klamath Road a Myth. Mr. Cotton also claimed that they had under construction a road from Eugene to Klamath Falls, which road had not even been surveyed. A couple of miles had been constructed to connect the Springfield branch with the main line, hence the bluff that this branch was really under construction. The branch from Weed, Cal., going into Klamath Falls is also an occupation road, as it Is intended to deter any one from attempting to construct Into Eastern- or Central Oregon. And, by the way. It is well for Portland merchants to bear in mind that the construction of this branch gives to San Francisco' a very valuable slice of Oregon territory which should belong to Portland. There ts a short road from-Baker City, known as the 8umpter Valley road, which could lead across the state and possi bly connect with the Corvallis & Eastern Railway, and -as the latter property was recently purchased by Harrlman, that danger was eliminated. I believe there was a feeling of unrest around Ontario on the Short Line, and a railroad was talked of, so a private citizen secured rlehts of way that Harrlman could not have secured, and constructed the road but solely for Mr. Harrlman. There Is another little road from The Dalles to Dufur. I believe it is called the Great Southern. This road going In the direction in which they . were headed was not much of a menace, as they were running up sgainst too stiff a grade to interfere with Mr. Harrlman's business, so not much effort was made to block them, but it seem that one of the promoters' got busy and surveyed a line, not only from the end of this line, but from the Columbia River up the Des chutes River toward Central Oregon, and so quietly was the work done that our friend E. H. did not wake up un til nearly all the right of way had been filed on. Then the- general manager of the Harrlman system, in his own name, and with some friends, filed on eight miles of way on the same side of the river, thereby causing their enemie to cross to the other side. When actual construction Is commenced, Harrlman will no doubt resort to his old tricks to prevent the Invasion of his territory. In this connection I want to lay before every man who is interested in the progress of Oregon Just what Vll occur unless he arrays himself pollt- i to ' i- STUDENTS Ically and in every other way against the greed of ' the Harrlman system. Oregon has within its borders 96,000 square miles, and is by long odds the greatest state in the Union from the standpoint of its resources. Of its 63, 000,000 acres, only about 8,000.000 are under cultivation, notwithstanding for the area under cultivation we are the largest producers, not only in the United States but In the world. ' Portland is the largest lumber manu. facturlng city in the world. She ranks from third to first as a wheat shipping port of the United States, a large per centage of which is grown in Oregon. We are the largest producer of hops in the United States, producing as much or more than the balance of the Pacific Coast. We are the second largest wool-growers we are the largest growers of mohair, the largest growers of Italian prunes, and we rank high on apples and other fruits, pota toes and stock, as well as hay and other grasses. Our dairy products if not the largest, are at least as good if not better than that produced else where. I saw a statement recently, that of the 700,000,000,000 feet ottlm ber in the United States, 300,000,000,000 feet was in Oregon. The largest for est in the world is located In four counties of Oregon. The foregoing shows why we have the right to demand iat the hands of the railroads fair treatment, and at the hands of the Nation consideration second to none. These facts also show why the Harrlman system is most anxious to prevent competition, and is spending millions to keep rank outsid ers from developing this state. As one of the attorneys for the Har rlman system with characteristic frank ness stated, they had built up the business along their lines and denied the right of anyone else to compete. Doubtless Oregon merchants and manufacturers who have been fighting for rates and protesting against unjust discrimination, will be glad to know that the Harrlman system built up the great business to enjoy which it keeps you! awake nights. It is reported that the engineers will be called off the Portland & Seattle line. It Is very much a question if it ever was intended to be constructed, but was launched merely to try to whip Hill into line. Work was stopped on the Joseph branch, and the reason given was the agitation regarding railroad legislation. Everyone recog nizes the absurdity of this statement. If It is to be stopped it is because they have scared off competition, and need their forces to protect some other dis trict Mr. Kruttschnitt took an automobile ride to look at Central Oregon, and paid press reports record the fact that a line through Central Oregon Is to ba commenced at once by the Harrlman system. It has no doubt Just dawned upon them that there Is a territory in Central Oregon that needs a rail road. Had they discovered this fact before, tbey no doubt would have hastened to build it. Ready to Block Road. Let us look into this unseemly haste on their part. Several days ago, Mr. Kelson, the promoter of the Great Southern Railway, from The Dalles to Dufur, with a party of Seattle capital ists, took automobiles from The Dalles and followed the right of way up the Deschutes River to Madras and other points in Central and Eastern Oregon, with a view of looking over the most feasible route for their projected road. The Harrlman people Immediately dis covered that a road into that territory would be a good thing, so when Mr. Nelson and his friends commence op erations they will have the usual fight on hand. It is possible that Mr. Harrlman's name may not be connected with this, as he is in such bad odor that he would not re ceive much consideration at the hands of the people through whose property he would seek to build, consequently he may commence operations through some well known private citizen who has been known to construct roads, and who will call on the dear people for free right of way and a bonus sufficient to build the road. Before any donations are made. It is well to know who is back of the pro posed road, otherwise you may wake up to learn that while you may have a rail road, you also have with it a chronic car 8hortaga and an extremely Inadequate service. . Do not obligate yourselves to pay a bonus to Harriman, or give franchises or rights of way that will prevent some one else from building a road that will be of benefit to you. Remember that In East ern and Central Oregon there are 56.000 square miles without a railroad, and Har rlman has a fence around It. This Is the largest area in the United States with out a railroad, and within that belt is an empire whose products could supply a world. It Is time that the people of this great stae should awaken to the danger which threatens to throttle them. You are going to be called upon, not only to aid by work and money the development of Oregon, but by your votes to regulate the encroachment of the octopus upon your rights. . ' I am going to submit for your consider ation some predictions which at this time I will term facts, and it rests with you 4 Wi r&4T 1 ' V 1 "-i AND IN8TBUCTORS tN ATTENDANCE! AT SUMMER TERM OF MONMOUTH STATE NORMAL SCHOOL.' whether or not you believe them of suf ficient importance to Justify either action or watchfulness on your part. You cannot lose anything by adopting the sugges tions, and you may gain considerable. Re member that It is not wise to wait until the enemy declares war before fortifying your outposts or laying in your supply of munitions. This Government has under construc tion at the present time one of the great est engineering facts of the age, viz.: the Panama Canal. It is fondly believed by everybody that the construction of this canal will be of the utmost Importance to this country, and as a whole it will. A great many of our merchants, shrewd business men see in it a club to whip the railroads into line, and compel them to reduce rates, for they have learned by experience, . or think they have that water competition regulates freight rates. That great regulator, the Interstate Commerce Commission has also said that a railroad has the right to make terminal rates to meet water competition, and as a result, the terminal rates are very much lower than rates to the Interior, where the rates are based as a rule on the terminal plus the local track, except as in the case of Denver, Salt Lake, etc., where they have what is called "Utah common point rates,' and at Spokane, where they not only have "Internal rates" but Internal dissensions as well. Effect of Water Rates. Regarding the regulation of rates by water competition: Mr. Adams, president or manager of the Hawaiian steamship line, In his testimony before the Interstate Commerce Commission, in Spokane, made the statement that in 1906 his line hauled 175,000 tons of freight to the Pacific Coast, and that If he had had the vessels, he could have handled 250,000 tons. This Is the largest tonnage that ever came by water to the Coast, but notwithstanding the fact that the water business was rapidly Increasing, about 1904 or 1906 the railroads advanoed all transcontinental rates from 1 to 15 per cent without con sulting or even notifying shippers that such a thing was contemplated, . their first knowledge of it coming with a new tariff carrying the advance. Also about this time the Portland merohant complained that the local rates from Portland to the Interior of Oregon and Washington were too high, and asked for an adjustment. A time was set for a hearing, and It was naturally supposed that the adjust ment of a few local ratee could have been handled by the aggregation of brain stored in the Harriman archives in this city, but It seems that it developed into an important event and it was not only necessary for Mr. Stubbs and Mr. Camp bell, of tha Harriman system, to be . pres ent, but Mr. Woodworth and other high officers of the Northern Pacific and Great Northern as well, merely to adjust some local rates, nothing more. After some se vere criticisms of the Portland merchants by Mr. Stubbs, which was meekly sub mitted to, the rates were adjusted, and how? Mr. Stubbs stated that he was willing to oblige the Portland merchants, but he did not want to lose any money for his company by doing so, consequently he proceeded to Juggle the rates by reducing the first, second and third-class rates, on which little of the freight moved, and ad vancing the fourth-laas and also all car load rates, on which the majority of the freight moved, the result being that the railroads received considerable more reve nue than they were receiving before. This, however, was not the most Impor tant point whclh they gained. They suc ceeded in advancing the carlead rates to the Interior, and this ts the class of freight that Is handled by water. Now, according to the testimony of the steamer people, they had offered to them 250,000 tons of freight, which requires 60 days to bring around the Horn. It follows that with the completion of the canal, thereby not only reducing the time to 30 days, but the freight rate as well, the water line would handle several million tons of freight, or nearly all the carload freight coming to the Coast. High Rates to Interior. , Mr. Stubbs Is paid $50,000 per year to see that the traffic end of the Harrlman system makes money not to explain why it doesn't consequently he must antici pate the future. Now it is not reasonable to suppose that the Harrlman system and the Hill system also, which have millions invested in transcontinental lines, and branch lines throughout the country, are going to sit Idly by and see the water lines take all the transcontinental busi ness and leave them merely the local haul, or In other words they are not go ing to be the medium by which the boats can reach the interior with their freight. How are they going to prevent it? They have already started by ad vancing the rates to the interior. For several months past you may have seen press notices that the railroads in tended to eliminate as much as possible what is known as "commodity" or spe cial rates, and put everything into the "Western classification." which will have the effect of raising the rates from 25 to 50 per cent. The next thing is to cre ate an inland terminal rate. If I may call It that, and here Is where Spokane is playing into the hands of the railroads. In fact I feel convinced that the railroads are back of tha Spokane agitation, not that they want her to get what she is asking for, but it leads uo to It. and Mr. XK.-.-. 'I Aej tar rf "w"5' Cotton confirmed this in his argument be fore the Interstate Commerce Commission In Washington, D. C. when he said: "Why not give the same rate to all the inland towns, why favor Spokane above the others?" That's Just the point. The fourth clause of the interstate law will prevent Spokane from getting special favors, and if the Interstate Commerce Commission, which the railroads are also trying to hoodwink; should grant Spokane's request, then they must grant the same to "Boise, Hunting ton, Baker City, Walla Walla, etc., as the fourth clause says that the railroads can not charge more for a short haul than for a long haul in the same direction and under substantially the same conditions, and there are no conditions that would warrant Spokane having a better rate than any of the points I have named. If Spokane should get what she Is asking for, then she Is dead as a Jobbing center, for all Inland points will get the same rates. Strike at Coast Rates. If the railroads succeed in - estab lishing the same rates to all inland points, all the .Pacific Coast terminals will go out of business as Jobbing and distributing centers, as the Jobbing to the Coast will be done by New York, Chicago, St. Louis, etc Consequently the railroad and not the water lines will handle the business, for this rea son: The railroads want the rates ad vanced from the terminals to the in terior so as to prevent water compe tition, and if they can establish a uni form rate to the interior from the East, the railroads will have won their fight. Jfm Hill said that if he could load his cars west bound, which are brought empty for lumber, etc., as the east bound business is three times as great as the west bound, then he could make a cheap rate on lumber from the Coast. I believe you will see wheat from the Dakotas coming to the Coast and the cars taking lumber East. The cars that now bring the merchandise from the East to the interior if the railroads get the rates they are after, will take our wheat East to replace the Dakota wheat, and in the shuffle the railroads will earn more money than they are now doing, but our Job bing and manufacturing will suffer. What is the remedy? Suggests a Remedy. Open rivers and interurban railways. You have no doubt observed that the Harrlman system leaves no stone un turned to prevent open rivers and elec tric railways. See how they fought the United Railway, put not the Wil lamette Traction Company, which, it Is said, they own, and it is even intimat ed that they are not now opposing the United Railway, and I predict (hat the long-talked-of bridge at Oswego will never be built, as they don't need it. The building of railways from the river to the interior, no matter where in the state, should receive assistance from Portland. The railroad contem plated by Mr. Nelson up the Deschutes from the Columbia to Central Oregon should receive hearty support here, and others should be encouraged to build. Not only Portland, but every merchant and farmer 111 the state should assist in this work, as it is the very life of Oregon that is at stake. There is another important thing, that should not be overlooked. Presi dent Roosevelt said some time ago that he would not be a candidate for re election, but conditions have so changed since then that it Is absolutely neces I '. . - sT k ' i. !ft S 'llifi fliP0 o ordeal which all La illS Sltlr'M Myitis women approach with I Sl of the Buffering and danger in store for her, robs the expectant mother of all pleasant anticipations of the coming event, and casts over her a shadow of gloom which cannot be shaken off. Thousands of women have fund that the use of Mother's Friend during pregnancy robs confinement of all pain and danger, and insures safety to life of mother and child. This scientific liniment is a god-send to all women at tha time of their most critical trial. Not onl? does Mother's Friend carry women safely through the' perils of child-birth, but 'its use gently prepares the system for the coming event, prevents "morning sickness," and other dis- ,' comforts of this period. 0jf pffM.tzT5 P& Sold by all druggists at B ItS'&MU Q fx. oo per bottle. Book . containing valuable information free. ipft If sIf & JFi Thj Bradfield Reoiilntor Co.. Atlanta, Old Dr. Grey's Sanitarium The only reliabls place for confinements in Portland. Regular licensed physicians and professional trained nurses, perfect seclusion, honest dealings. Juiants adopted. The. finest equipped sanitarium tor tha cure of ehronio and rebellious dissases ui the Northwest. Diseases of women a specialty. Graduate lady physicians in attendance. Terms very reasonable. Address, Dr. J. D. Grey, 251 Aider street, corner Third, Portland, Or, Correspondence solicited, leiepbons Main 2796. It 1 1 sary that he should be reelected. In the first place the work he started can not be completed in his term, and there is no man, perhaps with the exception of Governor Hughes, who could, 'or has the backbone .to cope with the trusts. The railroads and other large corpora tions are trying to discredit Roosevelt, and are raising millions to defeat him. President Elliott, of the Northern: Louis Hill, of the Great Northern, Harrlman and - others attribute the car shortage, the slump in stocks and everything else to Roosevelt. Now as a matter of fact, there Is no car shortage, but there is a shortage of motive power, and it would seem that purposely so. In Chicago I was told that the lumber dealers could not get cars, but the sidetracks were full of them, and at Danville, 111., I saw backed up against the C. & E. I. round house, at least 20 new freight engines, resting no doubt. The Chicago papers came out with great headlines that the railroads were going to discharge 60.000 employes In that state, and at the same time the railroads could not handle the business offered. From this It would seem the only reason for discharging that number of men would be to create a feel ing among the laboring class against Roosevelt. , Prosperity Gives Poor Service. Tha Burlington and other roads gave notice that they would reduce their run ning time. Why? For the purpose of creating a prejudice in the minds of the traveling public. For some months there has not been a railroad on the coast run ning its trains on time. Either they must plead guilty to design or incompe tency, but you do not hear of any of the officials being censured by their superiors for this condition of affairs. When our Railroad Commission goes after them they promise to do things, but the reforms are Blow. The Commission should have the co-operation of the en tire state. A few months ago a panic was threat ened. It is claimed that the attempt to create a panic was brought about by these corporations on whom Mr. Roose velt was using his big stick. You should remember the corporations who do not hesitate to create a panic to gain their ends, certainly need -a restraining hand, and there Is no man better aie than Roosevelt to check them. I am aware that certain papers and selfish interests are flooding the country with news items to the effect that Roose velt cannot honorably accept a renomina tlon since he has once declined, but the wish Is father to the thought, they only fear he will. I do not know that he will accept, but I believe he will, as I said before. Conditions have changed. You should allow no third term twaddle to influence you against your own Interests, and If Roosevelt should be the candidate, support him with all your strength. I believe ' the views expressed herein cannot be too widely disseminated, as the people, not only of this state, but on the Coast, should at lesst have a chance to Investi gate for themselves the truth or falsity of these assertions. If they find I am In error, then I owe an apology to Mr. Harrlman, but at this writing I do not anticipate that he will call for it. Seeks Her Life With Hatpin. CBNTRALIA, July 27.-(Special.) Bes sie Davis, a resident of the restricted dis trict, stabbed herself on Tuesday even ing with a hat pin. She was taken to the Damon Hospital where she lies in a precarious condition. The deed was com m Itted In a fit of deg pondency . fcf sp- indescribable fear, for nothing compares with the pain and horror of child-birth. The thoueht fin. a? li3aai OFFICERS OF President, John Lloyd Treasurer, J. Dalzell Brown Secretary, Rufus P. Jennings GENERAL COUNSEL J. Bartnett, Charles W. Slack EXECUTIVE COMMITTEE John Lloyd n J- Dalzell Brown David F. Walker Rufus P. Jennings B. M. Gunn. 10,000 SHAEES OF THE CAPITAL STOCK OF THIS COMPANY ARE OFFERED FOR SUBSCRIPTION AT $100 PER SHARE This Company has been organized to loan money on income property in San Francisco on what is known as the bond and mortgage plan. This in volves the issuance of bonds secured by first mortgages on income property and the sale of guaranteed mortgages. AN EXCEPTIONAL OPPORTUNITY TO MAKE MONEY There is no investment safer than that offered by the SAN FRANCISCO BOND AND MORTGAGE COMPANY, and, owing to the exceptional condi tions, the net earnings of its capital stock should considerably exceed 12 per cent per annum. The SAN FRANCISCO BOND AND MORTGAGE COMPANY has three sources of profit: 1. Interest earned on its paid-up capital. 2. Difference between what it earns on mortgages and what it pays on bonds, which is usually iy2 per cent. 3. Difference in interest on guaranteed mortgages sold by it, which is usually 1 per cent. Similar companies in the East and foreign countries have had phenome nal 'success, earning fro 12 to 16 per cent per annum. Stock subscriptions will be received in PORTLAND at Ladd & Tilton, until July 31, 1907; also in San Francisco at the office of the Company, 30 Montgomery Street; and at the following places: San Francisco National Bank, Merchants Exchange Building. The Crocker National Bank, Market and Post Streets. E. H. Rollins & Sons. Kohl Building. California Safe Deposit and Trust Company, at Its head office, California Street at Montgomery, or at any of Us four branch offices. The National Bank of the Pacific, Claus Sprackels Building. Portuguese-American Bank, 78 Jackson Street. State Savings and Commercial Bank. 1013 Fillmore Street. Union National Bank. Oakland. And In New York City United States Mortgage and Trunt Company, 55 Cedar Street. Interbero Bank of New York. 49 Wall Street. E. F. Hutton and Company, 33 New Street. WRITE) FOR BOOKLETS. Low Summer Rates To Jamestown Exposition and the East. There is no better time for your summer trip than now, taking in the Jamestown Exposition and then visiting the Eastern Summer Resorts. . SEE YELLOWSTONE PARK AS A SIDE TRIP EN ROUTE For fnll information call on or write A. X). CHARLTON, A sat Gen'I Passnger Agent, 255 Morrison Street, Portland, Or. Northern Pacific Railway The Oregonian, 1 Year A Good Talking Machine, value Six Standard Records, value . Jm, jmK F0R 0NLY $25.65 A LITTLE EACH WEEK PAYS THE COST By Subscribing n Th nrpirnnlnn fn rrt -veftr vrtn ran obtain regular $25 hijrh-grade Talking Machine, six records of your selection Included, or choice of a 125 Violin and complete outfit all for 25.65. Amount saved to subscriber Is J11.95. This Is the best combination offer, and the most popular ever made to Western newspaper readers. Open only to those subscribing; for The Oregonian. The conditions and terms are very liberal. Delivery Is promptly made upon payment of $1.65 for the machine and 75 cents for a month's subscription. Thereafter 60 cents a week on the machine and 75 cents a month for the newspaper until the contract has been completed. Send In your order at once. Call, phone or write. EILERS PIANO HOUSE THE OREGONIAN 353 Washington. Corner Parity (Phon Ex. 23.) 'A 1 THE COMPANY Vice-Presidents Pavid F- lk vice residents p .pjummer GENERAL ATTORNEY M. E. Cerf ' $9.00 25.00 3.60 TOTAL WORTH, $37.60 SPECIAL OREGONIAN SUBSCRIBERS Boom 200, Oregonian Building. (Phono Main 7070.) I Dr. Morrow's Anti-Lean MAKES LEAN PEOPLE FAT through tha nervous system. It's a purely vegetable compound, contain, no oils or fats or any drug that- Is Injurious or liable to pro duce a habit. It's the Greatr.t Tonic In the World. Each bottle contain nn m m n t v. n . ment and costs $1.50 at any tlrst-class drugstore. Prepared by the' Anti-LeaJi Medicine Co .,i!i'! I.ii"1!!mil(lU'S.:i, ;. ri.,,, II HI