Pages 1 to 12 VO. XXVI. XO. 43. PORTLAND, OREGON, SUNDAY MORNING, OCTOBER 27, 1907. PRICE FIVE CENTS. BE END OF HARRIMAN'S RULE Prestige Hangs on nois Central. 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.. MY 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 affairs. 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 anticipated shortly. There are two French warships In the harbor or Mogador, and all the steps necessary will be taken to protect the Europeans there. 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. TAKES HOLE OF PROPHET Predicts Bryan Will Be Next President. 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 the Indians." 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. VIDIAN poke on the question, "Will the Re publican Party Live Up to Its Early Ideals?" 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 Protect Depositors. , 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 to 1.'" CONTENTS TODAY'S PAPER The Weather. YESTERDAY'S Maximum tempera turef, 64 degrees; minimum, 52 degrees. TODAY'S Fair; northeast winds. Financial Situation. 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. Foreign. ... 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. National. 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. Politics, Governor Vardaman predicts Bryan's elec tion. Section 1, page 1. , Chancellor Day publishes book vilifying Roosevelt. Section 1, page 3. Domestic. 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. . Sports. 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, page 8. 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, page 11. 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, page 12. 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 page 10. ON WHAT HE CONSIDERS THE LEADING EVENTS OF THE' WEEK He Weald Monkey With the Baxs - - Saw. FIRMLY GRAPPLE WITH TROUBLES New York Bankers Adopt Remedies. 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 Association. 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 ward Frisco. 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 spective institutions." 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 tomorrow. 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 JEI Leaves the Court With Police Protection. 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 ernment officials. CONFESSES BIG FORGERIES C. R. HOWE UNDER ARREST IX LOS ANGELES. 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 Autos In the Midst of Ufe, We've (lot to Hnstle. ERSVONMDLTKE