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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View This Issue
Pages 1 to 12
VO. XXVI. XO. 43.
PORTLAND, OREGON, SUNDAY MORNING, OCTOBER 27, 1907.
PRICE FIVE CENTS.
BE END OF
Prestige Hangs on
LOSING THAT, HE WILL LOSE ALL
Once Started Down Toboggan,
Many Will Kick Him.
FISH HAS SWEET REVENGE
forces Enemy to Sacrifice Millions
and Spend Week of Agony Court
Decision May Sound the
Knell of Centralization.
NEW YORK. Oct. 26. (Special..) Is
Edward H. Harriman to lose control of
the Illinois Central, and, If so. Is his
loss to bo the beginning of the end of
Ms dlstatorshlp In the railway world?
Wall street' has been asking Itself
this question for some months, and It
Is undoubtedly finding a constant echo
In the brain of Mr. Harriman. The
mere fact that the question can arise
t all is said by many to indicate that
Mr. Harriman is no longer invulnerable.'
It is no secret that Wall street, al
though fearing Mr. Harriman, does not
love him. Mr. Harriman has never
reckoned whether Wall street would or
would not care When he determined
to accomplish a certain thing. Neither
does Wall street waste any love on
Stuyvesant Fish, the man who has
made Mr. Harriman pass many sleepless
nights of . late, for Mr. Fish would
never do the bidding of Wall street.
In fact, he has ever sneered at its
Influence upon railway .. development
and ha stated again and again:
"I never ran the Illinois Central from
Wall- street.' . ...
Swift Slide Down Toboggan.
Nevertheless, if Stuyvesant Fish, with
or without the silent backing of Presi
dent Roosevelt, succeeds in starting Ed
ward Harriman down the toboggan he
will find a thousand feet waiting to ac
celerate his descent. Certain It is that
Mr. Harriman cannot afford to lose his
battle for the Illinois Central, if only
for the prestige It will cost him at this
time. He has been beaten out of the
Alton, despite the fact that his interests
still own a large, share of stock In that
company. This delcat did not add any to
Mr. Harrlman's prestige, for It showed
that public sentiment had reached a
point In connection with him where a cer
tain kind of dictatorship had grown In
tolerable. Wall street is quick to realize
when the backbone of a man's career is
bent or strained.
Harrlman's Week of Agony.
So It is that Mr. Harriman realizes
fully what the present Illinois Central
tight means to him and to his future.
Likewise Stuyvesant Fish realizes where
as five years ago he would have had no
chance In the world to wrest the Illinois
Central from Harrlman's grasp, now he
has a chance and a good one. The im
portance of the battle to Mr. Harriman
was publicly admitted by him when he
came to Chicago and remained for al
most a week, at a time when paper
values were tumbling In Wall street at
a fearsome rate.
It is understood that before he left
New York Mr. Harriman was compelled
to "clean his house" of everything which
. he was not prepared to stand back of, to
defend with millions. This cleaning pro
cess must have been expensive, for a
"house-cleaning" In Wall street, when
the financial dust is flying, Is a very
expensive operation. With this forced
cleaning in mind, it is easily conceived
that Mr. Fish had his fill of revenge, if
revenge he was looking for, during the
week of agony that Mr. Harriman spent
In Chicago. As the paper values fell and
fell each day In Wall street, it muBt have
keen like pulling the heart out of Mr.
Harriman to be compelled to remain in
Capture vf a Mew piscatorial Mir
vel, a Harriman..
Idleness in Chicago, nearly 1000 miles
away from the scene of action.
Despite the fact that the Harriman
people scout the idea that the Injunction
Issued by the Chicago court restraining
the votlnir of 286,731 shares of Illinois
Central stock will stand, there are at
torneys in the East who view It with
alarm. In some quarters it Is felt that
the Issues raised in the Fish suit may
have a widespread and important effect
upon the centralization of American railroads.
FAULT OF RAILROAD KINGS
Traffic Blockade Attributed by
Clark to Speculative Finance.
CHICAGO, Oct. 26. In his speech before
the Traffic Club last night Interstate
Commerce Commissioner E. E. Clark
attributed the difficulties of the railroads
In handling traffic mainly to speculative
finance. He said:
Tha railroads have signally failed to keep
up faculties for moving freight whlrh the
increasing business of the country demands.
This is partly due to the unprecedented in
crease In the volume of businesa to be
handled. The most Important reason., how
ever, is the speculative financing which al
most without exception controls the coun
try's railroads. Many persons hold tne
President responsible for the shrinkage tn
values, saying his policy has frightened in
vestors. I do not subscribe to this belief.
If It were true, however. It should not
move the President one lota from his pur
pose of prosecuting violators of tne taw.
Railroad regulation by state and National
Government, each In its proper sphere, is
essential. Such regulation must be firm,
sane and reasonable and Just. Tne rail
roads must make uniform rules, not neces
sarily the same at all seasons of tha yesr,
as business changes with, the months, but
uniform to all shippers. Tf the railroads are
not strong enough to make and enforce such
tules, the Federal Government must ate Id
and assume a measure of control in their
WILL FINISH BY NEW YEAR
NORTH BANK ROAD WILL HAVE
ALL TRACK LAID.
Northern Pacific Announces Prog
ress and Says Bridges Will Be
Finished Next June.
ST. PAUL Minn., Oct. 26. (Special.)
Announcement Is made In the annual re
port of the Northern Pacific, which was
Issued today, that the road being built
by the Portland & Seattle Company from
Kennewlck to Vancouver Is rapidly ap
proaching completion and track should be
laid the entire distance, 220 miles,-b"y
January 1 next.
The large bridges over the Columbia
and Willamette rivers are well . under
way and should be completed by June.
1908. The road between - Pasco and Spo
kane. 145 miles, and the branch to Texas
Ferry, 40 miles, should be completed In
the Summer of 1908.
There was moved on the Portland &
Seattle for the fiscal year ending June
10, 1907, the following material: 3,175,
196 cubic yards of earth, 4,031,720 cubic
yards of hardpan, etc., and 5,311,019
cubic yards of solid rock.
The report (hows that the double
track work under way for a. couple of
years -in the neck of the system in the
cast end Is making satisfactory prog
ress. It stretches from Wadena Junc
tion to Valley City, and when com
pleted will be a big factor In the
handling of transcontinental traffic and
will relieve such congestion as has
marked traffic for a couple of yeare.
BATTLE NEAR IN MOROCCO
Mulai Haflg to Attack the Imperial
Troops Near Mogador.
PARIS, Oct. 26. The Government has
received advices from Morocco to the ef
fect that a battle between the army of
Mulai Hafig, which has reached a point
IS miles from Mogador, and the Anfloos
tribesmen, supported by the Imperial gar
rison, numbering about 1200 men, may be
There are two French warships In the
harbor or Mogador, and all the steps
necessary will be taken to protect the
Another Dreyfus In France.
PARIS, Oct. 26. The arrest of Ensign
Charles Ullmo, of the French navy, at
Toulon yesteray, on a charge of being a
spy, and his confession of having ab
stracted a secret naval signal book and
the naval cipher code, was followed today
by the arrest at Vendome of an officer
named Burton, who is charged with nego
tiations with an agent of a foreign power
for the sale of military secrets. The ar
rests are creating a great stir, and, as
Ullmo Is a Hebrew, the papers term this
caee a second Dreyfus affair.
It appears that Ullmo offered certain
documents to the Minister of Marine for
1 30, 000, saying that unless his offer was
accepted he wouK". sell them to a foreign
power. A dummy correspondence was be
gun, ending with Ullmo's capture.
HARRY MURPHY WIELDS HIS . MAGIC PEN
Undoubtedly a Prize-Winner.
HOLE OF PROPHET
Predicts Bryan Will Be
ROOSEVELT WILL RUN AND FAIL
Fire-Eating Governor Pours
Forth Hot Words.
RAPS THE POOR NEGRO
Says Roosevelt Will Be Renominat
ed, but Beaten on Third-Term Is
sue The Country Better for
the Panic In Wall Street.
CHICAGO, Oct. 2S. (Special.) Gov
ernor James K. Vardaman, Mississip
pi's picturesque chief executive, took
the role of a prophet In Chicago today,
declaring with the posltlveness that
characterizes him that Mr. Bryan
would be the next President of the
United States. He predicted further
the speedy ending of the Wall-street
panic and recognition of the negro
question as a problem for the solution
of the North as well as the South.
"President Roosevelt will be renom
inated," he said, "and he will be beat
en. Bryan will be nominated by the
Democrats and he will be elected. All
that now makes Roosevelt popular he
has stolen from Bryan, and If he runs
on a platform of his policies he will
be running on Bryan's platform.
"The putting forth of Taft as the
administration candidate Is only a po
litical play.. Roosevelt Is not sincerely
behind him. .'Roosevelt's real Intention
is so to frame things that he will him
self be the nominee.
Old Story of Stolen Clothes. -"All
this talk about Roosevelt's popu
larity In the South as shown by the
enthusiasm on, the recent visit Is non
sense. Those outburst were only the
expression of the hospitality of the
South and of' the genuine American
feeling that animates the Southerners.
Despite all this, however, when the
election la held, Roosevelt will not
carry a precinct in Mississippi.
I .agree with the President's cam
paign against dishonest corporations,
but it Is because his policies are the
policies of the Democrats. . When he
comes to running for a third term,
however, he will find that the Ameri
can people will not etand for any over
turning of the unwritten law made by
Washington and the great Presidents
who Immediately followed him." -
The Governor declared that In his
opinion the Wall Street crisis would
end the financial panic and that the
failures there would not affect the
prosperity of the country.
Again the Poor Negro.
"The failures there," he said, "are the
failures of gamblers and the country
will be better off as a consequence."
It was the negro question that really
brought out the fire of the Governor.
"You will have your problem here,"
he said. "It Is not a question of emo
tions with me, but of facts, and the
history of the negro since Pharaoh Is
the foundation of those facts.
"It is impossible to treat these
veneered savages as white men are
treated. The Constitution of the United
States should be so amended that the
various states can legislate regarding
the negro question as we legislate for
CANNOT EXTERMINATE TRUSTS
Grosscup Says Sherman Law Will
Fail to Prevent Combination.
INDIANAPOLIS, Ind., Oct. 26. Judge
Peter S. Grosscup of'the United States
Circuit Court, Chicago, addressed the
members of the Columbia Club, a local
Republican organization, tonight. He
Necessary Precaution Before Roose
velt Takes Piatt's Seat.
poke on the question, "Will the Re
publican Party Live Up to Its Early
He devoted considerable portions of
his speech to the Sherman anti-trust
act. He maintained that, tf the enact
ment of this law was Intended to ex
terminate so-called truets or big cor
porations, or to affect wages or prices,
the purpose of tbe act had failed. He
declared that In the present age Indus
trial combinations or so-called trusts
were an effective agency to wield the
energies of manhood beyond any other
form yet discovered.
PARKER'S SATIRE ON BRYAN
Ridicules Statement About Bill to
, NEW YORK, Oct. 26. Alton B. Parker
said yesterday that he had seen W. J.
Bryan's statement In Schenectady that
while In Congress Mr. Bryan advocated
a law to protect depositors from exactly
such conditions as occurred In New York
during the past few days. Commenting
thereon, he said:
"How glorious to be a heaven-born
financial genius. What a pity Congress
could not have appreciated the wonderful
advantages of such a law. Had they ap
preciated it, we would not have needed
yesterday the patriotism of J. Pierpont
Morgan that prompted him to throw $27,
000,000 of his money, the (10,000.000 of
Rockefeller and the money and strenuous
labor of public-spirited and honest bank
ers and business men who strove might
ily to save business generally, and there
fore every citizen from ultimate injury.
I am sorry that he did not mention the
-title of the bill. In the absence of speci
fication, there will be those who will
think that Its title may have been '16
CONTENTS TODAY'S PAPER
YESTERDAY'S Maximum tempera turef, 64
degrees; minimum, 52 degrees.
TODAY'S Fair; northeast winds.
Run on New York banks dying out under
Influence of remedial measure. Section
1. fcage 1.
Chicago and Pittsburg Imitate New York In
Issuing Clearing-House certificates, sec
tion L page 1.
Run on Providence banks abates. Section
1, page 1.
Letters of Queen Victoria of England. Sec
tion 4. page 10.
Thrilling rescue of crew of wrecked steamer
Leon. Section 4, page 12.
Enemy of King Peter murdered In Servian
prison. Section fl, page 8.
Strange lawsuit about relics of tbe Holy
Crc.s. Section 3, page 8.
Turbine steamer faster than Lusitanla to be
built. Section 8. page 8.
Man arrested in England who threatens to
Kill King Edward. Section 2, page 1.
Berlin mob hoots Von Moltke at Harden
trial. Section 1, page 1.
Date fixed for sailing of battleships for
- Pacific.- Section 1, page 4. - '
Bishop Scaddlng does good work to bring
battleships to Portland. Section 1,
- . page 4. ... . ' . . - -
Land thieve to be prosecuted with renewed
vigor. Section l, page 2.
Governor Vardaman predicts Bryan's elec
tion. Section 1, page 1. ,
Chancellor Day publishes book vilifying
Roosevelt. Section 1, page 3.
Riots grow out of Yonkers car strike. Sec
tion 2, page 1.
Real cause of Walt-street panic. Section 2,
page 1. . .
Great decrease of liquor sellers in Kansas.
Section 1, page 2.
Harrlman's downfall would follow loss of
Illinois Central. Section 1, page 1.
Marlon Grey, affinity Under, pleads guilty to
fraud In order to nurse sick friend. Sec-
tlon 2, page 1.
North Bank road to be finished by January
1. Section 1, page 1. .
Cornel 1 wins close game with Princeton.
Section 2. page 4.
Changes to be made In managers major
league teams. . Section 4, page 0, '
Coast -League magnates leave for New York
meeting. 8ectlon 4, page 0.
"Referee" discusses relative merits football
teams. Section 4, page 9.
Horse show entries insure pronounced suc
cess. Section 4, page 6.
University of Oregon defeats University of
Idaho football team '21 to 5. Section 4,
Commercial and Marine.
Oregon onion growers turn speculators Sec
tion 4, page Jl.
Wheat advances a cent at Chicago. Section
4, page 11.
Improved feeling In Wall street. Section 4,
Holes in the wrecked steamer Coronach a ve
been effectually stopped and the vessel
will be saved. Seotlon 4. page 10.
Portland and Vicinity.
Out-of-town Investors coming Into Portland
real estate market. Section 3, page 10.
British warships may attend Rose Festival.
Section 1 page 11.
Officers capture Frohman robbers and re
cover part of plunder. Section 1, page 8.
Charges against Detectives Kay and Klenlen
dropped. Section 8, page 12.
Railroads vigorously protest against assess
ment. Section 1. page 10.
Automobile caught between streetcars go
ing In opposite directions. Section 2,
Roosevelt will be forced to accept, says H.
H. OHfry. Section 1, page 8.
Oregon Republican Civic League would im
prove old garbage crematory. Section L
ON WHAT HE CONSIDERS THE LEADING EVENTS OF THE' WEEK
He Weald Monkey With the Baxs
- - Saw.
New York Bankers
CALMNESS AND COURAGE GROW
Great Banks Stand After a
Whole Week's Assault.
MORGAN ISSUES WARNING
Depositors Aggravate Scarcity by
Withdrawing: and Hoarding the
Money Clearing-House Orders
Certificates Gold Imports.
NEW YORK. Oct. 26. In response to a
request of the Associated Press for his
view of the present situation, J. P. Mor
gan said today:
"As I have already said, I cannot too
erongly emphasize the Importance of
people's realizing that the greatest injury
that can be done In the present situation
Is the thoughtless withdrawal of funds
from banks and trust companies and then
hoarding the cash in safe deposit vaults
or elsewhere, thus withdrawing the sup
ply of capital always needed In such
emergencies as that which has been con
fronted during the past week."
Calmness and growing encouragement
were the dominant features of the
financial situation, when the great bank
ing institutions closed their week today
with all the great financial Institutions of
the city Intact after having met the un
precedented demands of the past week.
With this signal demonstration of the re
sisting power of the banks came the ad
dition of new and Important measures
to prevent a recurrence of acute strain.
Although the Stock Exchange and other
sensitive .points were free from extreme
agitation, , - there were heavy with
drawals of cash from several banks and
trust companies, these withdrawals being
for the most part by the smaller de
positors. All the institutions affected
continued to pay out on demand up to
noon, the usual closing hour on Saturday.
Strong Remedial Measures.
First in importance of the remedial
measures was that of the Clearing
House Association in voting to issue
clearing-house loan certificates for the
use of the banks themselves In set
tling their dally balances at the clearing-house.
These certificates will not
get into general circulation, but their
use will enable the banks to keep in
circulation for the needs of general
business large amounts of currency
which otherwise would be required for
the settlement of the daily clearing
house balances. Plans were formulat
ed to extend the benefit of clearing
house certificates to the trust com
panies as well as to the banks, which
are at present members of the Clear-ing-House
Another extremely important feature
of today's news was the announcement
by the National City Bank that it had
engaged $5,000,000 in gold for Import.
It is believed by bankers and exchange
brokers that this engagement is the
beginning of what will probably be a
continuous movement of gold to New
Tork from abroad.
Handling of Certificates.
The clearing-house certificates will be
issued to those banks making application
and proving to the satisfaction of the
committee appointed for the purpose of
the need for the certificates and their
ability to deposit the proper collateral.
No limit was fixed to the amount to be
Issued, but it is hoped Jthnt the amount
asked for will be small.''? Banks desiring
to obtain the certificates will be required
to present their applications to a loan
committee, which will consist of the
regular clearing-house committee with the
addition of Ave other bank officials who
are experts in the Judgment of credits
and in dealing with banking matters.
When a bank satisfies this committee
' neu's Benevolent Purpose To
that clearing-house certificates are needed
and the request is granted, the bank will
be required to deposit first-class bills re
ceivable or other good collateral, and will
receive id per cent of the ascertained
market value of such collateral in clearing-house
certificates. These certificates
will be accepted in all settlements of
debit balances against the bank at the
clearing-house. The effect of the issue
of the certificates will be to leave the
cash reserves of the banks unimpaired, so
far as the demands through the clearing
house are concerned.
The effect of the decision to issue clearing-house
certificates bos usually been to
restore confidence to a large degree, and
thereby to diminish the pressure which
might logically be anticipated in view of
the previous demand for currency.
Large Imports of Gold.
The indications are that the cash re
serve of the associated banks will.be kept
substantially Intact hereafter by the im
portation of gold. The sharp fall in ex
change yesterday, which made importa
tions of gold possible at a profit, was not
modified today. It resulted in the an
nouncement by the National City Bank
of the engagement of $5,000,000 of Euro
pean Continent and South American gold
and rumors of other engagements of the
yellow metal. The large credits created
In favor of ths United States by the
movement of crops and to some extent
of securities, which have been taken over
at the present bargain prices, will en
able this country to Import gold in con
siderable amounts without resorting to
the sale of finance bills.
Cortelyou Praises Bankers.
Secretary of the Treasury Cortelyou
caused the following statement to be
given out tonight:
"On the occasion of a call on him this
morning by representatives of the New
Tork Clearing-House. Secretary Cortel
you asked that they convey to the Clearing-House
his deep appreciation on be
half of the Government of the courage
ous and high-minded manner in which
they had upheld the interests, not only
of the cltjj, but In a sense of the people
of the whole country. Later Secretary
Cortelyou called on J. P. Morgan and
expressed in similar terms his apprecia
tion of the services rendered by Mr.
Morgan and all who had co-operated with
him In meetlns the emergency."
The sub-committee of the directors of
the Knickerbocker Trust Company, who
are hoping to bring about a resumption
of business of the company, met in .ex
ecutive session today.
Improvement Still Continnes.
Clark Williams, State Superintendent of
Banks, in speaking about the bank situa
tion today, said:
"Information received at the banking
department today Indicates that the im
provement In the financial condition is
continuing. The general appreciation of
this Is well illustrated by the fact that
the directors of various banking cor
porations who during the post few days
announced their suspension have reported
today to the banking department that
they desire, if they lawfully may, to un
dertake the rehabilitation of their re
CniCAGO BANKS FOLLOW SUIT
Issue Clearing-House Certificates.
Require Notice of Withdrawal.
CHICAGO, Oct. 26. The Chicago
Clearing-House Association today an
nounced through a committee that it
has decided to issue clearing-house
certificates. It was also resolved that
savings banks should require from
their depositors the- notices provided
for in connection with such accounts.
It was stated that the action was
taken to prevent an undue drain upon
the cash balances of the Chicago banks
from outside Institutions. No question
of . the solvency of the local houses is
Involved, members of the committee
stating that none of tne Chicago banks
has asked for or is in need of assist
ance. The meeting was attended by a
committee from the Milwaukee Clearing-House
Association, which informed
the Chicago bankers that similar action
is to be taken in the Wisconsin city
The decision in regard to the local
situation was taken after an eight-hour
session of the association. The finan
cial stringency in New York was the
primary cause of the meeting and the
situation was thoroughly discussed be
fore a committee consisting of J. B.
Forgan. president of the First Nation
al Bank; J. J. Mitchell, president of the
Illinois Trust & Savings Bank, and E.
A. Petter, president of - the American
Trust & Savings Bank, was appointed
to draw up the new rule of the associa
tion and make public an official state
ment of the action. The statement fol
lows: Following the action of the New Torn
Clearing-House Association, the members of
the Chicago Clearing-House Association met
today to discuss the situation. In the Inter
est of depositors and the public as a Dasis
(Concluded on Page 2.)
Fairbanks Says Re Is 8tlU la the
Base Very Still.
CROWD HISSES AND
Leaves the Court With
FINDINGS GIVEN TUESDAY
Trial Closes Amid Intense
Excitement of All Classes.
APPLAUSE GREETS HARDEN
Makes Eloquent Speech in Defense)
and Is Tendered an Ovation M
He Ieaves Courthouse Von
Moltke Asserts Innocence, i
BERLIN, Oct. 2. Tha Itbef aotlwit
brought by General Count Kuno otl
Molke against Maximilian Harden, edi
tor of Die Zukunft, was closed today
on the Judge's announcing that th
findings of the court would not.. t
made until Tuesday morning. I
The day was devoted to the plea of:
the counsel and Herr Harden himself'
made a speech in his own defense,
which was greeted with much enthu
siasm, although there were some hiss-;
lngs. Herr Harden received a great,
ovation from the huge crowd in tha;
streets as he emerged from tbe court
house. Public opinion teems to be Tunning
strongly against General Ton Moltke
and as he left the courthouse through '
the side door under police protection, ,
he was greeted with groans and cat-1
calls. Von Moltke also made a speech '
before the ending of the case, In his
own behalf. He asserted his oompletej '
Innocence of the charges hinted at in ,
Harden's articles. His speech made a
strong Impression on his auditors,'
some of whom cheered.
Herr Harden's speech was a master
piece of eloquence. He spoke with dra
matic vigor, his face livid with excite
ment. Amid the applause which
greeted Herr Harden as he entered the
courthouse could be heard cheers for
the Crown Prince.
The trial created a tremendous sen
sation in Berlin society. It has been,
the topic of conversation for weeks,
especially among the military and gov
CONFESSES BIG FORGERIES
C. R. HOWE UNDER ARREST IX
Says lie Belongs in Portland and
Signed Name of S. S. Silver
field to Many Checks.
LOS ANGELES. Cal., Oct. 26. C. R.
Howe, a young man who claims Portland,
Or., as his place of residence, was ar
rested tonight, . charged wih passing
$500,000 worth of forged papers, bearing
the signature of S. S. Silverfleld, a promi
nent business man of Portland. Howe
confesses to an elaborate series of forger
ies extending over the Pacific Coast.
The above dispatch was read over
the telephone early this morning to
Mr. Silverfleld at his residence at 689
Flanders street, but he could throw no
light on the story.
"I know nothing of the matter." said
Mr. Silverfleld. "I never had a man by
the name of C. R. Howe in my employ,
and have not been notified by the
banks that any forged checks have
been passed on my accounts. The story
is all new to me."
No other Silverfleld is in business in
Portland. The name of C. R. Howe
does not appear in the Portland direc
tory. Highways m
In the Midst of Ufe, We've (lot to