Pages 1 to 12
VOL. XXVII. NO 4
PORTLAND, OREGON, SUNDAY MORNING. JANUARY 26, 1908.
PRICE FIVE CENTS.
WILL BREAK
AH
MONOPOLY
Bonaparte Starts Suit
Under Sherman
Law.
STOCK CONTROL ILLEGAL
Creates Monopoly of Trans
continental Traffic West
of Missouri.
CLARK WAS FORCED TO SELL
Southern Pacific Absolutely
Ruled by Union Pacific.
HOLD ON OTHER ROADS
Strong Voice in Management of the
Santa Fe, Great Northern, Korth
. ern Pacific and Burling
ton by Stock Holdings.
r
GROUNDS OF SriT A (i AT VST HAR
J RIM AN SYSTEM.
i That tha holding of stock .of the
I following competing roads by the
I Union Pacific Railroad Company 1.
. 1n violation of the Sherman enti-
j truat taw:
J Southern Pacific. '
4 San Pedro, Loa Anreles eV Salt Lake.
Atchison, Topeka Santa Fe.
Great Northern.
J 'Northern Pacific. ,
4 Chicago, Burlington & Quincy,
t which Is owned Jointly by the two
t last named roads.
4 The following individuals are also
4 to be made defendants: '
EJ. H. Harrlman, .Jacob H. fichiiT,
I Otto H. Kahn. Jamea Stlllman. Henry
4 C. Frick. H. H. Rogers and W. A.
Clark.
...... ....... .....a
WASHINGTON, Jan. In. Attorney
General Bonaparte today directed
that a bill In equity be filed to set
aside the control by the Union Pacific
Hallway Company and its subsidiary
corporations of the Southern Paclflo
and the San Pedro, Los Angeles &
Salt Lake Railroads: also to have de
clared Ullegal the ownership by the
Union Pacific or the Oregon Short
Line of stock in the Santa Fc, the
Great Northern and Northern Pacific,
all of said lines being; competitors of
the Union Pacific.
The Attorney-General today issued
ai official statement to this effect,
which, after referring to the extended
investigation by the Interstate Com
merce Commission into the relations
existing among the various lines of
- road engaged In transcontinental
traffic, says:
"From the evidence so adduced and
from Independent Investigation the de
partment has arrived at the conclu
sion that the stockholding of the
Union Pacific and Its subsidiary
companies In the corporations men
tioned above is in direct violation of
the Sherman act.
Violates Sherman Act.
"The Department regards the suit
ns of first importance, as it Is sought
by means thereof to brralt up a sub
t
I
t
al Place tm a tlraalttve saenev.
stantial monopoly of the transporta
tion business of the. country between
the Missouri River on the east and the
entire Pacific Coast south of Portland
on the west."
Aside' from tho railway companies
above named, the other, defendants In
the suit are the Farmers Loan & Trust
Company of New York, which is the
depository of all the stock of the San
Pedro road under a contract by which
It Is required to give proxies' to such
persons as may be named by Mr. Har
rlman and Mr. Clark for a period of
years. There are also individual de
fendants who are alleged to have con
ceived and carried out the conspiracy
complained of, towlt: E. H. Harrlman,
Jacob H.. Schlff, Otto H. Kahn. James
Stlllman, Henry C. Frick, Henry H.
Rogers and William A. Clark.
While naming the Individual defendants
the statement makes no -mention of any
Intention to prosecute any of these of
ficials personally in any criminal proceed
ings. The statement continues:
Aimed at Monopoly in West.
"It appears by the testimony in the
possession of the Department that a com
bination was formed about the beginning
of the year 190t by B. H. Harriman, of
New York, the president of the Union
I jl?' V t
Frank B. KeUocK, IVa Will
Prosecute Gorerameat Suit
Against Harrlman.
Pacific, and certain of his associates, for
the purpose of obtaining a monopoly of
all transcontinental transportation busi
ness. The first move, was the acquisition
of sufficient stock of the Southern Pacific
Company to insure its control. That com
pany owned a line of railroad extending
from New Orleans and points in Texas
on tidewater through California to Port
land, Oregon; also a line from Ogden,
Utah, to San Francisco.' The Southern
Pacific had been for years one of the
principal competitors of the Union Pacific.
As the result of such control by the
stockowners, .the management of the two
companies had1 been amalgamated and
since 1903 a majority of the board of di
rectors of the Southern Pacific have been
members of the board of directors of the
Union Pacific. Competition between the
two companies had 'been substantially
eliminated.
Clark's Road Absorbed.
"The San Pedro,. Los Angeles & Salt
(Lake Road was projected as an inde
pendent line by W. A. Clark and his as
sociates, to run from San Pedro, on tide
water in California, through Los Angeles
to Salt ' Lake City, having connection at
that point with - the Union Pacific and
with the Gould system. After the work
of construction was In progress the
parties in control of the Union Pacific,
by means of harassing litigation designed
to prevent the acquisition of necessary
right of way and by threats of parallel
ing the line, if consolidated, so as to ren
der the same unprofitable and by other
means. Induced Clark and his associates
to abandon the sceheme of an independ
ent road and to join' with the Oregon
Short Line, taking- over certain track
owned or controlled by that company in
Southern Utah and Eastern Nevada and
giving the Oregon Short Line an equal
stock interest In the San Pedro, Los An
geles ft Salt Lake . Road with that held
by Clark and his associates. Then addi
tional t raffia agreements and contracts
were made between the San Pedro and
various corporations included In the
Harrlman system, so-called, which de
prive the San Pedro of Its Independence
and makes it In effect a part of the same
system. .
"As to the Santa Fe, which Is a
competing line with both the Union
Pacific and Southern Pacific, It appears
that Sir. Harrlman and his associates
acquired sufficient Interest In the San-
(Concluded on Pas -
WALL STREET IS
FULL OF REMORSE
Purified by Fire, It
Mends Its Ways.
MORGAN STANDS AS COLOSSUS
Made Panic-Stricken Cowards
Be Decent.
DISGUST AT GREAT CRIMES
Catalogue of Wrongdoings Which
Made Nation Scourge New York
With Fury Money Drained
to Gambling ' Den.
CHICAGO, Jan. 2o. (Special.) Wiring
from New York to the Record-Herald to
night, Walter Wellman says In part:
Purification by fire, shrinkage by elimi
nation of dross, regeneration In remorse
this is a fair characterization of the new,
fie revolutionized, the minimized Wall
street. -
The fire has come partly from without,
in the form of public opinion, in the
moral uplift which the whole country has
felt under the leadership of President
Roosevelt. It has come from within. In
the form of discovery of cancers and
tumors, which must be cut out if the
patient Is to live. How much of the
credit for the new and better order of
things Is due to one influence, how much
to the other, I am unable to say.
Adversity Brings Repentance.
Probably Wall street would never have
realized how bad It was and how much In
need of a surgeon if the country had not
first made the discovery- Probably also.
Wall street would have paid little heed
to the country's condemnatory warning,
but for the discovery that New York wall
losing ground. losing confidence, losing in
fluence, losing . power, losing money,
through its own wrong-doing. Vice Is
never repentant in prosperity.
Certain It la that last Autumn's crisis
precipitated and effected the revolution!
When New York began to look into itself,
it was appalled at what it found. As soon
as Introspection began, remorse and peni
tence and good resolutions sprang into
life.
Morgan Masters the Storm.
It was a lucky thing for New York,
for the whole country, that there was
a John Pierpont Morgan 'here the day
the storm came. What he did and how
he did it all the world knows in part.
The full story has never been' -written,
cannot be written. In short.' to use
the language of one who was an actor
in the drama, Mr. Morgan showed him
self to be one of the few really great
men this country has produced. There
was not another man In the country
who could have met the crisis as he
met It. He took a crowd of panic
stricken, selfish, moral-coward finan
ciers by the throat, shook them as a
terrier shakes a rat, banged their
heads together and made them be de
cent by the sheer force of his will and
his commanding personality.
When a man like Morgan, with ls
insight, his knowledge, his habit of
facing the truth, looks over the recent
history of New York financiering, it
is not surprising he feels a great dis
gust at it
Long Catalogue of Crime.
The era of promotion, wind and wa
ter stocks; victimising of an Innocent
Investing public
. The insurance scandals, which have
driven some men to death, others into
exile, still more into oblivion.
The traction scandals, which have
pulled down from his pedestal and de
classed the once powerful Thomas F.
Ryan.
The trust company scandals, trust
companies doing all the dirty work of
the town, managed by Incompetents or
sharks.
The railroad scandals, like Alton.
''
EVENTS OF LAST
Panulaiestfly Mam tttmtt lirnlll
-)aes as Xtevesssrtie Vtssse
which have put even the great Harrl
man in, a class by himself, and that
unenviable.
The banking scandals, plungers and
gamblers using other people's money.
known to all the leaders, but suffered
to go on till tlie storm came, when they
should have been: eliminated long before.
Scandals which have led a public prose
cuting official to declare within a fort
night that there arc a score of bank di
rectors in this town he could put in jail
if he wished.
The cotton scandal, which has disgust
ed the South with its unjust speculative
classifications.
Even Rockefeller Repents. k
The railway and Standard Oil rebate
scandal, upon- which President Roosevelt
and Judge Landis have put a quietus and
brought even John D. Rockefeller to the
stool of repentance.
.The greatest scandal of all, the drain
ing of money from ell over the United
States to carry on' the great gambling
game known as the Stock Exchange.
The scourged, purged, shrunken Wall
Street Is not only whipped by public opin
ion and by adversity, but It shows signs
of being a better Wall Street, at least for
a time.
CONTENTS TODAYS PAPER
Th Weather.
YESTERDAY'S Maximum temperature, 49
degrees; minimum, ,1.1.
TODAY'S Fair; northerly win da.
Forelrn.
Boycott of British roods In India. Section 4.
page 1.
Ex-Jesuit criticises Pope's attitude toward
modernism.- Section 4. page 1.
Oulda, the novelist, dies at Florence. Section
1, page 2..
National.
Bonaparte announces suit to dissolve Har
rlman merger. Section 1, page 1.
Democratic Senators will offer currency
bill. Section 1. page 6.
Torpedo 'flotilla will reach Buenos Ayres
today. Sertion page
New Mexico to be admitted next session of
Congress. Section 1, page S.
. s I'olitlrs.
Gridiron Club has fun with candidates.
Section 1, page 7.
Records of campaign of 1906 show silver
mine-owners contributed most of Bryan's
funds. Section 1, page 1.
Domestic.
Mohler reduces Union Pacific forces and
blames Roosevelt. Section 1. page A.
Freight rebaters plead guilty and Judge
MacPherson sentences them. Section 2.
page ft. '
Snell's love letters s oread terror among
Illinois women. Section 1. page 2.
Austrian Consul defends Szechenyt and criti
cises American husbands. Section X,
page 2.
Several Atlantic steamers delayed by storm.
Section 1. page 4.
Sport.
Montgomery wins Burns Handicap. Section
1 page 5. ,
Close finish of six-day bicycle race. Sec
tion 1, page 6.
Dan Kelly av candidate for Olympic games
team.-- Secion 1 page 5.
Change ijf football rules,'' 'Section 1 1,
pa 0. 7 - - .-
Portland ball team may train at Tucson.
Section 4, pages 7.
Both Dan Kelly and Forrest Smlthson enter
In Eastern indoor track meets. Section -4
pae 7.
Joe Wo loot t a has-been at 32 years. Section
4, page 7.
Referee discusses change of annual U. of O.
O. A. C. game to Portland. Section 4,
page 6.
Faclflo Coast.
Jack London arrives at San Francisco,
leaving yacht at Panette. Section X.
page .
Senator Perkins' daughter engaged to Cleve
land Baber. Section 1 page 2.
Utopian Brotherhood goes bankrupt. Sec
tlon 1 page 2.
Many saloons fall In San Francisco. Section
X page IX.
Wallace Times baa trouble with printers
union and manager suspends publication.
Section. 1, page 7-
Seattle Fair made no offer of float for Port
land Rose Carnival. Section X. page 4.
Tillamook Sheriff arrests band of youthful
burglars. Section 1, page 4.
Rate on wheat twice that on lumber. Sec
tion 1, page 4.
Commercial and Marine.
Excltment in local onion market. Section 4,
page 9.
"Wheat weak and lower at Chicago. Section 4,
page . . ,
New York stock market almost lifeless. Sec
tion 4, page 9.
Big cajfh gain shown by New York bankers.
Section 4. page 9.
Local builders do a fast Job on the Bessie
Dollar. Section 4, page 8.
Portland and Vicinity.
F. P. Mays letter tells how he exerted
strong pull with Hall to help Stelwer.
Section 1, page 1. -
Letters of Mitchell and Futton reveal polit
ical secrets of the part. Seotlon 1, page 10.
Receiver Devlin, of Oregon Savings Bank, will
ask two yeans In which to pay all claims.
Section 2, page lO.
Four outside cities to enter- floats In Rose
Festival parade. Section 1. page 10.
Sunshine brings out candidates for office. Sec
tion 1, page 8.
Qns Lowlt and Gus Moser exchange compli
ments. Section 8, page 7.
Multnomah. Bar passes) resolutions of regret
on death of Judge Frazcr. Section 2, page
10.
Council refuses to pass appropriation for lab-
. oratory. .Section 1. page 8.
Officers of Title Bank bring up new techni
calities. Section J. page S.
f '
WEEK, VIEWED BY
F. P. MAYS TRIED
TO HELP STE1WER
Induced Hall to Drop
Criminal Charge.
LETTER TELLS OF SUCCESS
Ex-Senator Writes of Strong
Pull He Exerted. .
HIS MEMORY IS IMPAIRED
Witness Shows Effect of Long 111
ness and Heney Announces In
: tention Not to Prosecute Hlra
on the Pending Indictments.
Franklin Pierce Mays. ex-State Senator,
was the principal witness for the Gov
ernment yesterday In the Hall-Mays con
spiracy case in the Federal Court. A
treacherous and falling memory prevented
the witness from positively associating
his various conversations with Hall and
the dates of the letters that passed be
tween them. Probably the most -damag
ing evidence against Hall, adduced from
the witness, was his Identification of a
letter written by himself ' to Stelwer in
which Mays told of his successful efforts
in dissuading Hall from Instituting
criminal proceedings against the members
of the Butte Creek Company for unlawful
fencing.-
Before Mays was called Into the court
room, Heney announced that he wished
the indictment dismissed against Mays,
who was a co-defendant with Hall and
Edwin Mays In making this request of
the court,' Heney said he did not con
sider that the Government was in pos
session of sufficient evidence with which
to convict Mays of the alleged conspiracy.
Later in the examination of Maya, Heney
repeated the declaration he has made be
fore, that it was not his Intention ' to
prosecute Mays on any of the other' re
maining Indictments against him be
cause of his physical condition. Judge
Hunt consented to the dismissal of the
Indictment and at the same time ex
onerated the bond Mays had furnished.
Mays was then sworn as a witness for
the prosecution.
J. W. Renick. the special agent who
Investigated the fences of the Butte
Creek Company in August, 1904, under in
structions from Hall, identified the letter
of Instructions he had received from Hall
ordering him to do the work and In which
Hall Informed Renick that he would be
expected only to see that the company
had substantially complied with the law.
In. his report, which was submitted-to
Hall In September, 1904, Renick reported
that the fences had not been disturbed.
This report was also admitted in evidence
for the Government.
Stelwer Is Evasive.
W. W. Stelwer, president of the Butte
Creek Company, -was temporarily excused
yesterday as a witness, following a care
ful questioning by Judge Webster.
Stelwer evasively answered many of the
questions relating to Important .details
of which he professed to have no recol
lection. It was evident that the witness
was doing all he could to shield both
Fulton and Hall from any unpleasant dis
closures that Heney sought to elicit in
his re-direct examination, in which a num
ber of pertinent questions were asked
concerning the Senatorial contest of 1903,
when Fulton was elected. Heney endeav
ored to cause the witness to charge that
both Hall and Fulton exerted their in
fluence on the closing night of that ses
sion to Induce Stelwer to vote for Fulton,
which he did on the last ballot. But to
all such questions, the witness asserted
that he did net remember any suoh In
cidents. ; ' . ! '
Charles B. Moores. ex-Register of the
Oregon City LaniJ Office, will undoubted
ly be a witness for the Government be
fore the prosecution closes Its case either
tomorrow or Tuesday. Just what Moores
will testify can only be conjectured but It
will be recalled that aside from being con-
HARRY MURPHY
nected with the Land Office at Oregon
City shortly before the date of the land-
fraud disclosures, he ' was a tentative
candidate for Congressman' to succeed
late Thomas H. Tongue, lie may relate
further interesting facts in connection
with the political history of the state at
that time, particularly as they affected
the relations of the different principals
that have been dragged cither directly
or indirectly into the case now on trial.
Henry Melclrum. ex-United States
Surveyor-General for Oregon, will also
be a witness for tho Government, prob
ably tomorrow. Mr. Meldrum reached
Portland yesterday from McNell'e Isl
and, where he is serving a. sentence for
approving fraudulent surveys of Gov
ernment land. He will probably testify
to flic fact that the alleged signatures
of George C. Brownell to field notes
and applications for surveys were for
geries, having recently made. a written
confession to Brownell that he (Mel
drum) forged Browneirs nAme to t:io
papers.- It was these forged signatures
that Inspector Greene discovered and
on which Hall's insinuations of pos
sible prosecution of Brownell for com
plicity in the land-frauds was based.
Because of these indirect threats of
indictment and prosecution, Brownell
Franklin Pierre Slays, Who Tea
fled Yesterday In Hall - Mays
Trial.
testified Friday that he was forced to
withdraw from the contest for appoint
ment as United States Attorney, a job
promised him both by Mitchell and
Fulton, and finally to Indorse Hall for
reappointment. '
Among other witnesses that may be
called by Heney. before the Govern
ment concludes its testimony, are a
number, of prominent residents of
Portland who attended the legislative
session of 1903. Heney announced Fri
day that he would subpenae a number
of witnesses for the purpose of prov
ing that Hall attended that session and
was activeTy "vorklng in. the ntereat
of the election of Senator Fulton.
More About Fulton.
None of the testimony offered yes
terday served further to associate
Fulton with the generally' complicated
political situation in this state between
1899 and 1905,' nor did "itTefleet un
favorably on the Senator. Honey, how
ever, says he has furthe- surprising
and Incriminating- evidence Involvi-ig
Fulton that will be sprung before, the
Government rests Jts, case..
Mays, was called as a witness about
11 o'clock yesterday morning end tes
tified that shortly after he had been
employed as . attorney for the Butte
Creek Company, he telephoned Hall to
come to his office in the Chamber of
Commerce building. At that time Mays
said he, told Hall that Steiwer had in
formed him (Mays) that criminal pro
ceedings were likely to be instituted
by the Government against either the
Butte Creek Company or the. individual
members of the company for violating
the fence- laws. Mays said that he
pointed out to Hall that' the alleged
violation was punishable by either of
two procedures a civil or a criminal
suit and he said he urged- Hall to
institute only a civil suit, contending
that a man of the high standing of
Steiwer throughout the state should
not be humiliated by arrest' when any
doubt might exist as to an actual vio
lation of the law.
The witness Identified the letter he
had written to Stelwer In 1908, followr
ing this conference with HalL This
letter was Introduced by the Govern
ment and was as follows:
Offices of Carey A Mays, attorneys-at-law.
Chamber of Commerce building,
Portland, Or., October 7, 1903.
. Hon. W. W. Steiwer. Fossil, Or.,
My Dear Wlnlock. 1 was up to The
Conclnded on Pago 10-)
O r "Wefcodr Bess Is Me."
f ! I
-A i
V -t , t f
FRIED FAT FROM
SILVER MINERS
Figures on Bryan's
1896 Campaign.
BIG COMPANIES ARE GENEROUS
Nine-Tenths of Total Came
From That Source.
MARCUS DALY LEADS ALL1
Mining King of Montana Raised!
9159,000 of $288,000 Given by
Silver Interests Jones De- : ,
stroys Detailed Record.
SILVER MINING COMBINATIONS
FINANCING BRYAN IN I89S. .
Marcus Daly, fer himmlf and others,
1 68,000.
W. A. Cl&rk'a personal' contribu
tions, 148.000.
" Colorado mining- combination : '
D. H. MofTatt, tI-3.000. '
W. -H. Stratton, 12.000. ;
D. M. Hyman, tTM'.
Dennis Sheedy. ST0O0.
Smaller donations, S6000.
' Utah silver fund. l,0O0. ' i
Charles D. Lane, California, 4! ft. 000.
Total mining contributions. 1288,000.
Total Democratic National Commit
tee's fund, 1321,000. ...
NEW.. YORK, Jan. 5. (Special.)
Records of the financial backing of
William J. Bryan's campaign for the.'
Presidency in 1896, when he made the
issue of free and unlimited coinage of
silver at the ratio . of 16 to 1, show1
that Western mine-owners and sliver,
producers financed the canvass to thai
extent of $288,000, nearly 90 per cent1
of all the money received by the I'-r.,
ocratirf. National committee, '-o'i ' I ,
ex -Senator James K. Jones, of J - -sas.
was chairman. -
The figures here presented a.f; .' - ;
authority of officers of the Democfe j
National committee for 1896, men J .
actually received the money and j v.
the books. Some of the principal ' r
tributors have aided with their recof, . v
Two Sets of Books. I
Two sets of books were kept in- . i .
campaign. One was the formal srtj
which was preserved for reference in
case of necessity. It tells nothing of
Inner history, only totals and sum
maries being carried In it For ex
ample, all the money raised by Marcus
raly ie credited to him alone, no re
cord being kept of the National banks
and the mining corporations that
turned In their contributions through
him.
There was another book which con
tained the names ol actual contributors,
so far as known to the committee.
This was a Journal In which were 'en
tered the names of those who made up
combination contributions. In It were
dozen of names of mining companies,
of smelting companies, of corporatione
interested in the production of silver.
The book remained in the possession
of Chairman Jones. It is supposed not
to be in existence now.
Only Half of What Was Spent. 1
Tho total received by the Democratic;
National committee for the campaign
Of 1896 was $321,000. This $321,000
by no means represents all the expendi
tures In behalf of Mr. Bryan, being
considerably less than one half, ac-'
cording to the best estimates. Many'
separate elements of free silver or
ganizations entered into that campaign,'
each with Its own fund, working lnde-'
pendently of the National committee.
Marcus Daly led off with a big con
tribution out of hie own pocket, the.
exact amount of which cannot be de-'
termined. ' He had the directors or the'
Anaconda Mining Company ' vote a!
(Concluded on Page a. J
la Tibi mt Bematsr