G ' THE STJXDAY OREGOXIAX. FORTLAyP. AUGUST 23, 1903. ,
, I : :
UPTHMAH
TO BUILD
ROADS
Railroad Commissioner West
Declares People Expect
Fair Play.
SAYS OREGON NEGLECTED
Tnless Work on New Lines Is Com
menced. Sees Xo Reason Why
Kateg Should Not Be
Reduced.
MARSHFIELD. Or.. An. S.-(SpeclalS
That the net profit of the Oregon Rail
road & Navigation Company lines for a
lnle year, after allowing for all operat
ing expenses. Interest, taxes and a -Per-cent
dividend on stock, amount to enough
to build a ralroad from the Wllamette
Valley to the Idaho lne. is the statement
of Oswald West, a member of the Oregon
Railroad Commission.
Mr. West submits figures from the booKs
of the railroad company to support his
statement. In his address before the peo
ple of the Coos Bay region he undertook
to show that Mr. Harriman s remarks
were Inapplicable to Oregon when he said
at Chicago that If the railroads are ex
pected to extend their lines and Increase
their equipment they must get more reve
nue Mr West demonstrated that one ol
the Harriman lines already gets every
vear enough net revenue to build a line
across the state. He asserted that If all
the profits of both the Harriman lines
were put Into new roads. Harriman could
not find men enough to flag trains at the
crossings. T.
Mr West declares that, unless Mr. Har
riman proceeds at once to build the Cen
tral Oregon and the Coos Bay lines there
Is no good reason why the unreasonable
rates now in effect on his lines should uot
be reduced:
His address follows:
It was just 40 years ago that worK
was beeun on Oregon's first railroad.
Twentvur. later 1X8R It had over
miles of road operated by seven
different companies, as follows: JnlM
Northern Pacific JS.OO
Oregon Short Line Ae-t
The O. R & S. Co ViL'k
r. & C. H. R
Orconlan Railway
P. & W. V. Kf-ilway
V. V. & Coast 3J a
ToUI 1.213.61
A number of these road were at that
time In -ourse of construction, and per
haps HO miles were added during the
two vears following. Every mile, with
the exception of the 38 miles owned by
the Northern Pacific, has since passed
under the control of Mr. Harriman. and
since passing Into his hands further
extension has practically ceased, as the
following figures will show. In 1SS
there were 1213 miles of road: today
there aie 20..0 mlHs. or an Increase of
about 3..C mll.s In 10 years. Of this
increase 6RJ miles were built by local
ople with local capital, .u
i n..niA wiin (j. rv . oc -. - .
fcnd the balance, ivu muen, uj -riman
lines.
The people of Oregon are under no
obligations to Mr. Harriman. If he has
ever done anything for the state, the
books of his companies show he has
been well paid for it.
Where Policies Differ.
It is the policy of Mr. Hill to develop
new territory by building railroads, but
It is Mr. Hitrriman's policy to await the
development of the country before
building: and In the meantime to bottle
up the territory by securing all strate
gic points along available routes to
prevent anv other road from carrying
off his oyster before he Is ready to
"lln Hirrhiiiiii gave out an Interview
In Chicago the other day in which he
said: "If railroads are to go on ex
tending their lines, improving the ones
thev now operate, and providing equip
ment to take care of the business of
the country they have got to get more
revenue."
If a!l the net earnings of the Harri
man lines in Oregon had been expended
In railroad extension in this state we
would now have so many miles of rail
road that the company would have
trouble emoloying enough men to flag
the crosMnRS.
Let me show you something taking
the O. R. & N. Co. as an example: This
company operates miles of line in
the Northwest. In 1S96 It was In the
hands of a receiver, bul was during
that year re-organixed and launched
upon a new and successful career. The
new company was capltallxed at $35,
000. OO, srd there whs a bond Issue of
about $''0,000,000. That was but 11
years ago. yet the net earnings of the
road have in that short time amounted
In round numbers to about $4S.500,00O,
and would have been far greater had
not vast sums exornded tor Improve
ments and equipment been charged to
operating expenses. The books show
$1 8.5"0.00 to have been expended dur
ing this period for maintenance of way
and equipment and charged to operat
ing expenses. How much of this was
for betterments and new equipment I
am unable io say. The true earnings
are, therefore, many millions more than
the books of the company show them
to be.
Eiralaci for Tear.
After spending vast sums for better
ments and equipment,' the creation of
renewal funds and dividends on Its pre
ferred stock. It had on June SO 1907, a
surplus of $29.00fl.wOO. Its earnings for
190" were as follows:
Income from operations. .. .$5,972,993.93
Income from olner sources. 1.204.362.31
and show how traffic ami earnings
have Increased during the past 20
years. The O. R. A X. Co. will be
taken as an example:
Passenger 1SS7. 1907.
earnings.... 734.9.r.1.65 $ 3.7S4,So6.6o
Freight 3.0S9.5X8.31 S. 946,604. 90
All sources. ... 3.91.692.37 14.147.177.30
Net earnings. 1.8'"0,3S4.40 3,793,784.20
F r e Ight car
ried (tons). 60.102 3.442.6ol
The railroads are continually howl
ing aoout the Increased cost of opera
tion. Tnelr reports show that the av
erage dally compensation paid all em
ployes (excluding general office) In
182 was $2.53. In l!o7 the dallyaver
age compensation paid the same class
of employes was $-'.27. Certain classes
of employes are receiving better pay.
but others re receiving less.
The average percentage of operating
expenses to operating Income for all
roods m the United States is about 66
per cent. On the OiH.ee N. for 190
the percentage was only 53 85 per cent,
and on the entire S. P. system only
59.50 per cent. And all this in the face
of enormous expenditure for better
ments and equipment, all of which have
been charged to operating expenses,
otherwise the percentage of operating
expenses to operating income would
have been much lower. Mr. Harriman
has no complaint to make, as to the
cost of operating his Oregon lines.
While the records show the Harri
man lines to be among the best, if not
tiie best, paying roads In the United
.States, they also show that Oregon,
dominated by the Harriman Interests,
has but 42 miles of railroad per 10.0.10
Inhabitants, while Aioniar.a and the
Dakotas (thanks to Mr. Hill) have an
avtrage of 100 miles of road per 10,000
Inhabitants.
State Keeds Railroad..
The people of Oregon have all these
vears given the railroads the best of It
L'ntil the law creating the present Rail
road Commission was passed they had
been' free to conduct their business and
fix their charges as they saw fit. Had
they been half-way decent and fair in
their dealinucd with the public, the
Railroad Commission act of lu7 would
never have been nassed.
liown to the vear 19u7 the Southern
Pacific and the O. R. & N. lines in Ore
gon were only assessed on the average
nt about $4u00 per mile, and this In
cluded depot giound and rolling stock.
For the year ending June 30, 19J7, their
net earnings were sufficient to pay a
5 per cent dividend on a capitalization
of about $125,000 per mile. A few
County Assessors have had backbone
enough to raise the assessment, with
the result that In a few counties the
railroads are only dodging about one
half of their taxes. In other counties
the assessment Is slill ridiculously low.
The people of this state want to give
the railroads fair treatment in the mat
ter of taxation, and they want to see
them make money, but the expect and
are going to demand decent treatment
in return.
Oregon needs more railroads and It
fs up to Mr. Harriman to build them.
He has for yeais milked this state to
buv a'id build railroads In other states.
The Railroad Commission, on account
of the recent financial flurry, has hesi
tated at cutting too deep Into the rail
road earnings, but the danger is now
pact and business is recovering, and
unless Mr. uarrnnan gets busy witn
his Coos Bay and Central Oregon lines
there Is no reason why all unreasonable
rates now in effect on his line should
not be reduced.
MR. STEWART'S CANDIDACY
Total $7,177,356.24
Interest, rents and taxes... 1.3S3.572.04
Net income.
.$5,793,784.20
Divlderrtis on prefr'd stock 440.00D.00
Balance. $5,353,784.20
Investigation shows the Shanlko
branch lo have been built for $12,500
per mile: the Condon branch for $16.
000; the Pollt Rock branch for $22,000;
the Sumpter Vullev for $13,00. and the
Corvallis & Eastern for about $20,000
per mile, or an average of about $17,000
per mile. As Ihcse roads traverse a
country similar to that leading to Cen
tral Oregon and Coos Bay It gives one
a good Idea as to the probable cost of
these new roads.
It la about 3U0 miles from Natrona or
Detroit to the eastern boundary of the
state, and a road at $17,000 per mile
would cost a little over $5,000,000, or
less than the amount thrown Into sur
plus for the year 1907 by the O. R. &
N. Co., after paying all operating and
other expenses. Interest on bonds and a
dividend of 4 per cent on preferred
stock. :
We hare sadl nothing about the earn
ings of the Southern Pacific Company.
The Soutnern Pacific earnings reported
are for the entire system and not ap
portioned by states. The net Income
from operation for the S. P. system
amounts to about $5770 per mile, or
.about $1440 per mile less than the O.
R. & N. Co. a earnings In this state,
and. In view of this, it will not be
unfair to as:. time that the 8. P. earnings
In Oregon are as mucn per mile as
they are for the entire system. With
666 miles of line the earnings in this
state for the year would amount to
over $3,800,000. and after paying inter
est on 'ond and a dividend on the
$24 000.010 watered stock there would
still be a surplus of $2,300,000. or near
ly enough to build a railroad to Coos
Bay.
Haw Bna!aa Baa Grows.
A comfrlson of a few figures for the
years Xiil and 1967 may ba ol interest
Deserves to Be Nominated for State
Senator In Cowlitz County.
KELSO. Wash., Aug. 22. (Special.)
Much interest Is being manifested In the
Senatorial contest In Cowlitx County. A
prominent candidate for the Republican
nomination Is F. L. Stewart, of Kelso.
Mr. Stewart fs picked as an easy winner
on account of his recognized' ability, wide
acquaintance and thorough knowledge of
the legislation necessary for the bast In
terests of the state at large and this dis
trict in particular.
Mr. Stewart Is In no sense an office
seeker, but consented to enter the contest
for Senatorial honors only after many of
his friends had earnestly requested him
to do so, and after the name of Senator
Watson, of Kalama, had been withdrawn.
Mr. Stewart was born on a farm near
Delevan. Wis.. 35 years ago. coming West
In the Fall of 1SS5 to Southern California,
where for several years he. as a young
man. worked on a farm, In stores, and
later In the mines at Treka. Siskiyou
County, Cal. For the past 15 years he has
been engaged In the banking business,
first In the Consolidated Bank of Elslnore.
Cal.. of which his father Is president, and
later in the Kelso State Bank, of which
he is cashier and a large stockholder.
He has lived in Kelso for the past 10
years.-
Mr. Stewart Is a thoroughly successful
business man. well equipped to perform
r -
i J- - ft
I $ I
i v 1
t - y !
F. l Stewart, of Kelso, Candi
date for Republican Nomina-
' lion for State Senator In Cow
llta County.
the duties which will be Imposed upon
him by his constituents. He is affiliated
with the Masons, both Scottish and York
rite and Mystic Shrine, with the Indepen
dent Order of Odd-fellows, Order-of the
Eastern Star. Rebekahs, and the B. P.
O. E.
He has been quite- prominent In all de
velopments of the resources of Cowlitz
County and Southwest Washington.
BOOST GOOD ROAD SCHEME
Delegates to Meeting at Chehalis In
dorse Proposal.
CHEHALIS, Wash., Aug. 22. (Special.)
There was an attendance of about 150
today at the Good Roads meeting held
here. Pacific County sent a very large
delegation and Lewis, Cowlitz end Yak
ima were represented. Many letters from
other sections were read pledging sup
port to the state road scheme as sug
gested by State Highway Commissioner
t'now. An evening session was also held.
Thieves Carry Off Silverware.
SALEM. Or Aug. 22. (Special.)
Thieves last night entered the home
of Hon. H. B. Thlelsen, by prying off a
basement window, and got away with'
$200 worth of silverware. The police
believe it' was the work of profession
als, as only the most valuable ware
waa taken. The family sleeps upstairs
and heard no sound. There Is no clew
to the thieves. '
E INTEREST IN
PRIMARY CONTEST
Candidates for Office in
Washington Begin Their
Speechmaking.
TWO BIG FIGHTS ARE ON
Senatorsliip Battle and Gubernator
ial Scramble Monopolize Atten
tion or Voters Cosgrove De
nies Story of Serious Illness.
OLYMPIA. Wash., Aug. 20. (Special.)
Interest which has been lagging in the
primary election is now awakening
throughout the state and numerous can
didates who have started out on speech
making tours are attracting good audi
ences. The leading candidates for Gov
ernor are nearly all speaking daily, and
Congressman Jones is addressing fre
quent meetings in behalf of his candidacy
for the United States Senate. In behalf
of Ankeny the principal speaking is now
being done in King County by Senator &.
H. Piles. Judge Snell nas not been mak
ing any stir since he announced his can
didacy for the Senate on the last day for
tiling declarations.
Governor Mead spoke In Hoqulam Mon
day night. In a territory where it has
been asserted that he is weak, bift was
heard by a large audience. He will be
speaking at different points almost night
ly from now until the close of the cam
paign. Ex-Governor McBrlde has been
addressing good audiences in Spokane,
Adams, Stevens, Douglas and other east
ern counties and Is working hack toward
Seattle, where he will speak Septem
ber 24.
S. G. Cosgrove starts today on a tour
of the Northwestern counties. John D.
Atkinson has been addressing numerous
gatherings, will tour Eastern Washington
and wind up his campaign for the guber
natorial nbmlnation in Seattle a few days
before the primaries. W. M. Ridpath, the
Spokane candidate for Governor, is now
established in headquarters In the North
ern Hotel in Seattle, but has been mak
ing few speeches.
Judge Hobliison Delayed. .
Judge J. W. Robinson, of Olympla, who
promised to startle the people of the state
with revelations of corruption and mis
management in state affairs, has been un
able to begin his campaign on account
of the condition of his leg. which was
broken several months ago. Judge Rob
inson attempted to use his leg too soon
and received a setback from which he has
not yet recovered. His itinerary will
necessarily be cut short, and instead of
starting out as he Intended on August S,
It will probably be a week or ten days
still before he Is able to take' the stump.
With the livening up of the campaign,
numerous factors In the gubernatorial
contest are being brought to light. At a
meeting of the Mead forces, held in Olym
pla a few days ago, it -was decided, ac
cording to report, to press the local op
tion issue and force McBride, who is
charged with being the. friend of the
liquor int?rests, to take a more definite
stand on the issue. Uovernor Mead de
voted almost all of his Hoquiam speech
to the local option ltsue.
It is also claimed the Mead forces are
attempting to perfect an alignment with
other candidates and that some of the
candidates for other offices have already
been drawn Into the Governor's fight.
The Mead ticket, as given out here, fa
vors Jones for the Senate, J. H. Easter
day for Attorney-General. I. A. Navarre
for Land Commissioner, I. M. Howell for
Secretary of . State. C. W. Clausen for
State Auditor, Ellis Morrison for Lieutenant-Governor.
D. R. Bullock for Insur
ance Commissioner, T. p. Rockwell for
Congressman in the Third District, and
E. K". Erwln for State Treasurer.
Jones Plays Lone Hand.
So far as some of these candidates are
concerned, the alignment is one-sided.
Congressman Jones Is maintaining his
freedom from deals with other candidates.
C. W. Clausen declares he is not tied up
with any other candidate for office. Rock
well ami Easterday, however, are said to
be doing what they can for Mead, both
having received appointments on the Tax
Commission from him.
Navarre was brought out for Land
Commissioner, originally, by Mead's
friends in Chelan County. Mead and Sec
retary of State Nichols have not been on
very friendly terms for a long time, but
Nichols has attempted to keep out of the
gubernatorial fight. The feeling against
Nichols on the part of the Mead forces
extends also to Insurance Commissioner
J. H. Schlvely, and there Is more or less
of an indication of friendship between the
Mead element and Bullock for Insurance
Commissioner and Howell for Secretary
of State. Erwin Is Mead's logical candi
date for Slate Treasurer. John L. Mur
ray, of 'Friday Harbor, one of the other
candidates. Is a warm personal friend of
McBrlde. while John G. Lewis is support
ed principally by men In the Southwest
who are not favorable to Mead.
Cosgrove Denies Illness.
A recent feature of the campaign has
been the attempt to draw votes away
from Coserove by spreading alarm ru-
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4
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THURSDAY, AUG. 27
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o
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mors concerning his health. Cosgrove.
several weeks aKO, was quite 111. and lost
greatlv In weight. A story has been per
sistently circulated that he has Bright s
disease and is lh a precarious condition.
Mr Cosgrove Is doing all he can to deny
this report, and Insists that his trouble
was a severe coid which threatened to
s;ttle on hU lungs. He claims to be fully
recovered and to prove it is starting out
on a speaking tour.
The reports concerning Cosgrove's
health have been circulated also in con
nection with the Lieutenant-Governorship
' . . . T. hu vnrinliR candi-
coniesi. xt ib ' " - . ' ;
dates for that nomination that with an
ill man a possible winner in me B"-
... .... mr.r cr and consldera-
nniui mi l-hoi
tlon shoudl be given the office of Lieuten
ant-Governor man unaer uiumcnj
cumatances.
If j w. Robinson's health permits him
to take the stump, he will make a vigor
ous atttack on Mead's administration.
Airu ptfmvftfiranceti and high taxes
will be his principal themes. Judge Rob
inson Will alSO CrillClse cerium
. . , .j.ui.tnHnn if flnvernor Mc-
in ine uu.iiiuioi. , - -
Bride, but only lightly in comparison with
his attack; on me Jrao ujiiiih.iu.
McBride Is reported to have been losing
j i - . t i u'lni. I ' mi i n t v hut nn
grouiia lai'j 'i , V .
the other hand Is reported gaining In
Pierce County and In portions of East
ern Washington. Pierce County Scandi
navians, who number several thousand.
h ave perfected a strong poimcai ursa.ni-
zation and within the last few days have
decided to favor McBride for Governor
and Jones for Senator.
Throughout many counties In the stats
mass meetings are being held in the
rural districts to discuss candidates.
Failure to thoroughly understand the pro
visions of the direct primary law has re
sulted In bringing together at these
meetings men of all political faiths. Re
publicans. Democrats. Socialists and Pro
hibitionists have conferred and in numer
ous Instances have voted support to cer
tain candidates. The general report from
such meetings is that the majority has
failed to overcome the convictions of the
minority and that no material advantage
that was not possessed before has been
gained by the candidates thus favored.
Discussion of candidates so far extends
principally to the Senatorship and Gov
ernorship. Candidates for minor state of
fices are finding It hard campaigning
against the stronger Interest in the head
places on the state ticket and against
the strong local Interest In most locali
ties concerning the county places.
By 6heer force of numbers the candi
dates for Lieutenant and Governor and
for Attorney-General have attracted some
attention, but of other minor offices
there la little or no discussion.
to reopen the Manchurlan telegraph
question. The negotiations had reached
a ueadlock In February and were broken
off.
ASTORIA INVITES HARRIMAN
China and Japan Come to Terms.
PEKIN. Aug. 22 An agreement has
been reached between Japan and China
Message Is Sent by Chamber of
. Commerce of CJity.
ASTORIA Or., Aug. 22. (Special.) The
following telegram of invitation was to
day sent to Mr. Harriman akjng him to
visit Astoria:
"Astoria citizens send you cordial In
vitation to visit us while in the state,
you Bhould see the progress being made
at the mouth of the Columbia River. We
certainlv expect you to accept.
"CHAMBER OK COMMERCE,
"W. T. SPHOFIELD,
"President.
"JOHN H. WHYTE,
"Secretary."
people of 'Eugene to visit the city on
his return East,' E. H. Harriman sent
the following message:
"Pelican Bay Lodge, Aug. '2?. Eu
gene Commercial Club. Eugene, (V.:
Thanks for your kind Invitation to visit
Eugene. If I go out that way, wlil h
glad to stop, but the chances are that
I shall not go out that way this time.
"E. H. HARRIMAN."
PLUNGES OVER PRECIPICE
SEXTJS MESSAGE TO EUGEXE
Harriman Extends Thanks for Invi
tation From City.
EUGENE. Or.,
Tn response to
Aug. 22. (Special.)
a telegram from the
Man Takes Short Cut Through Tim
' bcr and Falls to Death.
TACOMA. Aug, 22. A. A. Richie, em
ployed on the Government road work in
the National park on Mount Rainier, was
killed by falling over a precipice yester
day. He had taken a short cut through
the timber to the blacksmith shop and
the men In the shop saw his body roll
down the cliff last evening. He Jived
In an unconscious condition until this
morning. He was about 32 years of age
and came from Seattle about two weeks
ago.
Miss Anita Trenchard and Miss Hazel
Morse returned thi3 week from a pleas
ant outing with Judge Trenchard at
Elk Creek.
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MEN'S TROUSERS
"SVe offer our entire line of $3.00 and $3.50
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