KAILKUAV UK An
ASM'GARRYSEES IT
Taxation of Publio by Forcing
It to Pay Interest on
Watered Stock.
FARMER. BANKER, BROKER
FINANCE'S ENDLESS CHAIN
Writer Contends That the People
Own the Railways Just as
They Own Other Roads.
(BT William McOarry.)
It is a curvy trick to denounce ft
benefactor. And ,so lone as the'benefl
clary forgeta that he ia also the bene
(actor there will be little disposition
on the part of the American people to
very closely scrutinise one of the moat
stupendous problems of modem life, and
which has not Inaptly been designated
ss "The Science of Railway Qratt."
And thla hesitancy on our part Is
accentuated by our common admiration
for that apparent beneficence and public
philanthropy so characteristic of out
side railroad management. All these
points of public contact are so ilium
lnated with suave and manly citizenship
that the plots being worked behind the
scenes are shielded from our view by
"the blinding naze of official generosity
and propriety."
But when we reflect that nearly all
our conceptions of right and wrong are
severed from "appearances" instead of
facts a little exercise of the Oradgrlnd
order concerning this ubiquitous Instru
mentality of government will have a
salutary effect upon the general social
and economic thought.
Now, a railroad is neither a mystery
nor a miracle. It is a common-everyday
mechanism of state called Into being
and vitalized into usefulness by the
Imperative demands of human motion,
and is one of the sovereign attributes
which distinguish a commercial state
from a logging camp.
Who Owns the BoadsT
In order that this distinction may be
clearly understood It is only necessary
to go back to first principles: Wherever
reciprocal lights and obligations exist
the generic principle underlying and
animating organised society will be
found In that Interdependent necessity
of man, social and Industrial communi
cation. In other words. In our instinct
ive proclivity to barter and trade.
From this necessity the state assumed
many Important rights. From the tight
of eminent domain springs necessarily
the correlative duty on the part of the
state to supply the necessary avenuea
of communication. The state in dis
charge of this obligation is authorised
to create roads and highways, to con
fiscate private property for that pur
pose; to levy a toll or tax upon society
to defray the expense thereof: to ap
point officers and agents to superintend
this public function end to punish such
THE FEAST
IS SPREAD
THE OREGON SUNDAY JOURNAL POBTtAW, ' SUNDAY MCSJI1WO. NQVKMBER Str-t-
"MMBMlt . jj-taM- .m
AN EXCEPTIONAL TREAT PRE
PARED FOR PORTLAND
ART LOVERS.
Special Ten Days' Exhibition of
Most Costly and Highest Grade
Key Instruments by Eilers
Piano House.
Tomorrow and for -ten days the art
lovers of Portland and vicinity will tw
afforded a rare oportunlty.
The Ellers Piano House holds Its an
nual reception and exhibition of hlgheat
grade key Instruments.
The magnitude of the undertaking this
year can only be fully appreciated by a
visit to the store.
The entire establishment Is a complete
and splendid art exhibit, embracing a
display of the richest toned and most
famous of pianos known to the modern
musical world.
There la an elaborate and extensive
showing of such peerless pianos ss the
cnickering, wnose tone possesses mui
subtle oualltv which identities It ss THE
CHICK.EH1NG, Just as a flower Is Identi
fied by Its perfume, and which evades all
Imitation.
In the present display of Chlckerlngs
are Included some very exceptional art
cased uprights, concert and parlor
f rands, and that gem of piano construc
tor the Chlckerlng Quarter Grand, a
piano which embodies a remarkably
graceful case, volume and strength, as
well as all the beauty of the Chlcker
lng tone, and yet Is so small and com
pactly built that It occupies but little
more space than ordinary upright piano.
So popular has the Chlckerlng Quarter
Grand become as a wedding present
that It Is known throughout the land as
the "Bride's Piano." 4
The display also Includes the piano
honored alike by Church, State and
Stage the Weber. His Holiness, Pope
Plux X has selected It as the official
piano of all the apostolic palaces, as well
aa for his own personal use. Thla In
Itself Is a great honor, aa His Holiness
Is no less distinguished as a musician
than aa a scholar. Its manufacturers
have also recently been appointed of
ficial piano makers to the Court of His
Majesty, the King of Spain.
And by practically an the leading mu
sicians of the world, singers and
pianists, the Weber Is the preferred In
strument. Its beautiful singing tone
being of a quality which appeals espe
cially to the artist's ear.
Kimball pianos have a no less con
spicuous place In thla display. These
are the pianos that come from the fac
tory where everything Is done right:
they are worthily made, handsome and
possess every tone requirement
Kimball pianos are found In cultured
homes throughout the world imd in this
western country tney enjoy a popularity
that la Simply phenomenal.
Other great makes, such as the Hazel
ton, the Lester, the Hobart M Cable the
enany-toned Crown .the Story Clark,
i Dm Mallet dt Davis, etc.. etc., are In
cluded In the exhibit.
Every school of classic art Is superbly
represented. Renaissance Colonial. Chip
pendale, new and chaste designs, the
choicest woods in a greet profusion of
varieties.
A group in which much Interest cen
ters Is the Aeolian Instruments, the en
tire line Including the Aeolian pipe or
gan. Ths newest end probably the mos
Important of these Instruments Is th
Pianola Piano. It Is p announced the mos'
complete piano made, combining as It
does facilities for playing perfectly
either with the hands or through th,
nedlumshlp of the Pianola, which Is
built Into space hitherto not used Inside
the piano ease All Pianola Pianos arc
quipped with the Metroetyla.
In thla season's display Is offered n
opportunity to study the world's great
est efforts In piano production and piano
esse srrhltertiire. None of the pianos In
this display will be delivered on sale
before Usturday. December 10. The pub
lic Is oordlsllv Invited to our store dur
ing this display. Ellers Piano House,
MI Washington street, corner Park.
functionaries for any dereliction of pub
lic duty.
With the expansion of society this
Inalienable state duty atlll remained In
public contemplation while recognising
the expediency of transferring this pub
lie enterprise to private execution.
Hence corporations were organised by
private parties to construct, operate
and maintain for a given time various
roads and. canals at their own expense
and to repay themselves from tolls or
special taxes collected from those using
them. Bonds being then unknown, the
toll or tax thus laid furnished the peo
pie a convenient system of deferred psy
ment and granted the privileged capi
talist a fair premium and sinking fund
to retire the loan by which the public
utility was supplied. The officers sna
agents of these corporations differed
only in degree from other stste offlclala
and were held aa (Irmly to criminal ac
countability for extortion or malfeas
ance as any other public servant. And
no one understood thst these function
aries "owned" those public utilities any
more than a board of aldermen can
"own" this city.
The Bailroad's Birth.
Finally the railroad came Into exis
tence under precisely the same princi
ples of duty, end took from the state
Its light of eminent domain and the
power of levying tolls or taxes upon the
Implied promise to execute the func
tions of Its office with fidelity to ths
people and the state. Upon the expec
tation of this promise being ruinilea tne
oAonle bv wav of advancement upon
account, turned Into certain companies
large portions of the public domain and
authorised the state to transfer to them
the accumulative power of repayment In
special taxes or tolls or freightage. But
there was nothing In the nature or tne
transaction to Indicate that this su
preme function of state was thereby
being transmitted Into a private
monopoly or that "ownership" was to
finally grow out of wholeaale derelic
tion of duty. Indeed, the idea that the
corporations which operate the rail
roads own the railroads is as stity as it
Is pernicious. "A railroad corporation is
aa much a part of the civil government L
aa a city corporation. The public nas
an interest of fidelity In both precisely
alike. Without proprietary right in tne
highways they are appointed merely to
superintend them for the public and are
charged with the duty of seeing that
very needed facility for the us of the
people In those thoroughfares are fur
nished without denial, delay or discrim
ination. When they neglect thla the
people suffer enormous losses and so
ciety Is proportionately impoverishes.
When they do more than compensate
themselves for the value of their ser
vices on the Idea of business they are
guilty of extortion by every rule snd
definition of publio propriety. And they
ought to forfeit every sareguara wnicn
in nubile estimation exempt them from
penalties proportionate to their offense.
When city or county arnciais mam
"business" of enriching themselves at
the expense of the public you can see at
a glance that they are the basest crim
inals. Why then are railroad corpora
tions less guilty when they debase a
public utility or instrumentsllty of gov
ernment into an Instrument of private
gain? ....
Duty Surrenders to BBSSsBBft
Hers Is the dividing line In the moral
and civic consciousness of the Ameri
can people. This is the point where
duty has apparently surrendered to
business aggression and the funda
mentals of democratic institutions are
assailed. From this point we see that
all the corruption and misgovernment
with which the earth la cursed spring
from this fatal proclivity of public ser
vants to make s "business" of their
dutv. At this point have we become
ao habituated to the perversion of pub
lic, duty In railway manipulation that
honesty sinks Into 'disrepute and graft
becomes the fashion. And such a fash
Ion is so alluring to the slrrtfan in
stincts of gluttony and aloth that It
percolates down Into the lower orders of
publio service and withers with Its
leprous touch the active energies of
civic pride and progress.
When "Private" Allen said that a
"public office was a private snap" and
the street arab translated it Into "a
orlvate graft." they both enriched the
literature of larceny with the toleration
of humor. And It is this ' sens of
humor which Justifies our disinterested
admiration of those -who swindle whll
they entertain us.
When Jim Hll Increased the preferred
stock of Great Northern from 1X5,000,
000 to tl2B.000.000 without adding a
mile to the public highway he amused
the people by showing them that 7 per
cent was only fair play of man to man
and that so long aa his earnings were
not SS per cent there was no extortion
in the game.
When Harrlman converted discredited
Union Pacific bonds Into 10.000.000 of
Southern Pacific stock without investing
a dollar of his own. snd when he
palmed $100,000,000 of the same kind
and $30,000,000 of Oregon Short Line
"bonds" off on Hill for a proportionate
slice of N. P., O. N. and Burlington, the
people were amused in deciding who .got
gold-bricked.
When Cassatt absorbed Baltimore
Ohio and B A O. S. W. and converted
assets of $$0. 000.000 Into $500,000,000
without Investing a dollar the people
were so amused by the magic of th
game that their financial heart took
fire and they went bounding like kanga
roos with their new-born treasures Into
th shambles of high finance to fatten
on these recrestlng securities. Well,
they digested about a billion of hard
earned dollars In this maneuver, but
were constipated with another billion of
indigestible chromos and are now
amusing the country with' tales of
hairbreadth escapes. All of which la
very, very amusing. But when we real
ize thst the people are now paying taxea
on four or flv billion dollars or wina
and water with no more public high
ways than before the saying of th
street arab becomes exceedingly amus
ing.
Water for That Duok, th Public.
Of course, "the public" was fully In
formed at the tlm that this over-capitalization
was to raise money for bet
terments and extensions. And upon this
belief the dear public absorbed these
aerated stocks nnd bonds. But the real
motives back of this concerted watering
process Is found In the conduct of a
half dozen men, who made this process
possible. Here waa an opportunity of
using the people's money to buy these
securities snd the railroads as well, snd
finally to absorb the money originally
Invested by the people.
This enormous swindle Is of such In
conceivable dimensions snd of such ap
palling consequences to the future of
this country that an explanation of ths
process should be generally known.
New York Chicago and Boston being
financial centers, country banks loan
their surplus deposits to banks of those
pieces: these bsnks .la turn loan this
money to brokers upon stock collaterals,
and the brokers, with this money,
gamble upon "margins" In stocks, bonds
lor agricultural products A, record of
tnese margins appears dally In the va
rious exchanges so that the money ex
pert has constant tab on supply and de
mand In all commodities. Hence, for
example, July 1. the entire corn crop Is
bought st $0. This money la credited to
country banks snd by them to the farm
ers, Sept. 1 corn haa advanced to (0,
and resold to the farmers and other
feeders. The bookkeeping then stsnds
thus: Country hanks debtor to financial
center. 60; credit product, $0; balance.
SO. Farmer debtor to country bank, SO,
to be repaid In next year's produce.
Here the farmer haa gold his crop to
brokers using his own money and end
his season by owing the broker what
the broker borrowed from him.
It doean't always go that far on auch
lines; but that la no fault of the finan
cial expert. But let us follow the broker
and his pledged securities: July 1, the
broker borrows 1,000,000 or 2,000.000
stocks. August 1, financial expert pre
tends to send large sums Into th coun
try to "move the crops." Money becomes
dear. Securities go down. Broker's loan
called in. Broker oan't pay but renews
loan with $2,600,000 securities. Securi
ties take another drop and broker set
tles with financial expert by sacrificing
securities. Thus the financial aplder
used th "farmer's" money to buy these
railroad securities and, aa we have aeen,
ends by owning th crops, th money
snd the securities which carry with
thsm control of th railroad.
I
Over-Capitalisation and
Thla over capitalisation In ths hands
of ths financial expert thus becomes th
greatest engine of oppression ever re
corded since th archangel drove the
devil and hla cohorts Into eternal In
famy. As' It furnishes a basis of In
terest upon Investment It Is only rea
sonable to allow the "lnveator a rea
sonable premium upon "his money. ' To
accompllah thla freight rates must be
Increased and every stomach in tne
union realizes the existence of another
graft.
An Increase In freight rates of B cents
per 100 Upon agricultural products in
18(0. exceeded $70,000,000. In 1890 It
exceeded $260,000,000, whll In 1900 an
excess of 6 cents per 100 upon all Of
the Iron and farm products of ths coun
try would exceed $600,000,000, or 6 per
cent upon every dollar's worth of rail
road property in America, nut h to
these you add the coal, timber and
manufactured producta for 190$ the
amount would build the Panama canal
and cancel the entire national debt.
When freight rates between New York
and Chicago Jumped In a day from 10
cents to 36 cents per 100 the consumers
began to realise the terrific taxation to
which the state had exposed them. But
when we see one combination after an
other Increasing this taxing power In
freights until what was formerly a dime
la now a dollar in tribute, surely the
railroad question becomes deserving of
honest study If not of actual surgical
attendance.
Now it Is not Impossible to build a
first-class railroad upon $15,000 a mile.
The Southern group, controlled by Mor
gan, represents in stock and bonds an
averag of $16,000 a mile. But when
you turn the light on th operations of
experts you. find the following bewilder
ing ear-mark of graft: Out west, $176,
000 a mile; Pennsylvania, $91,000 a
mil; Per Marquette. $96,000 a mile;
New York Central, $56,000 a mile; th
Gould system. $43,000 a rati; the Har
rlman, $66,600 a mile; Rockefeller's M.
a St. P.. $60,000 a mil; Great Northern,
$26,000 a, mile. Between the Southern
group, at $16,000, and Ontario and
Western, at $76,000 a mile, what an
ocean of sweat must fall from the brow
of commerce to water this bloated
stock!
A Case In Point.
In these figures we see the eternal
genius of rake-off and we may estimate
the enormous dimensions to .which the
Infant graft haa grown. But our calam
ity Is heightened wfien we reflect that we
furnish the means by which we are
systematically swindled. One example
Is sufficient: In a certain community
the people have deposited their savings
In a savings bank A trust company
status beside It A new .railroad is pro
jected. A corporation Is organized at
$30,000 a mile. A contract is let to a
construction - company "In touch" with
th trust company to build th road for
$30,000 a mile In bonds. Th road coats
but $16,000 a mile. The construction
company turns the bonds over to the.
trust company at $0 per cent; the trust
company to the savings bank at 106
per cent, and the savings banks to Its
customers at 108 par cant. Th de
positors thus pay $$1,600 for a thing
costing $15,000, and. $16,600 is ths "rake
off" to those who work th graft- While
every consumer within the road's sphere
of Influence Is taxed upon $60,000 a mil
In stock and bonds. Instead of $16,000,
Its actual cost.
It's a game of head I win; tails
you lose with th people from every
point of contact; and the sham of th
thing is. that whll many parts of th
country are willing to endure the hold
up to get a road, yet none can be ob
tained without th consent of th
grafters.
If there were anything to commend
the propriety of postal savings banks
to general popularity or to stimulate
our stat governments Into active exe
cution of their duties to society In sup
plying railway communication through
out their borders, these details ought
to form a basis of exciting computa
tion. We have departed a long way from
our original conceptions of duty. We
have grown to frown upon our rights.
We hare surrendered to railroads a tax
ing power greater than all th govern
ments Of Europe We view with com
posure a $12,000,000,000 railroad trust
threatening additional taxes, because ws
bar learned to believe that the little
finger of graft Is thicker than the loins
of the law. And under such clrcum
stances It la easy to understand why
such fruitful statea as Oregon sleeps In
primeval solitude. while emigration
shrinks from her burled treasures, and
the spirit of development, withered and
emaciated, slumbers In palsied desola
tion at th feet of graft.
VISITING NURSE
ASSOCIATION'S NEEDS
Meeting with Other Charitable
Organizations of This City
Called to Discuss Them.
I
I
I
r . i ' 1
V ST
THREE CONTINENTAL THEE
m m m V - - milllO STX All .
TRANS-
T
H
E
E
TRAINS DAILY
THE
E
E
"North Coast Limited"
Is the famous electric lighted, cash fare train between Portland and St. Paul,
carrying Pullman first-class and Pullman tourist sleepers, diner, day
coaches and OBSERVATION car, the latter having bath room, barber shop,
card and smoking rooms, ladies' parlor, library of 140 volumes, in addition
, v to all the latest magazines and periodicals, and the entire train is lighted with
300 electric lights.
Write your eastern friends to come to the Lewis and
Clark fair at Portland in 1808 and come via the Northern
Pacific "North Coast Limited."
The route is through Minnesota, North Dakota, Montana,
Northern Idaho, Washington and to Portland, passing
through the Bad Lands of Dakota, along the Yellowstone
river, ov- the Rocky mountains and along Lake Pend
d'Orcille to Spokane, through the Yakima valley and
over the Cascade mountains to Seattle and Tacoma,
thence to Portland.
Wonderland 1904 will be mailed you on receipt of six
cent! for postage.
Map folder and other information on application.
cA D. Charlton
Assistant General Passenger Agent
255 Morrison Street, cor. Third
Portland, Oregon
SALT LAKE CAPITAL
TO BE INVESTED HERE
R.
M. Cray Secures a Desirable
Building for Business
Purposes.
HAYWOOD CLUB OPENS
DRAMATIC SEASON
Th Visiting Nurse association will
hold a meeting on Tuesday at t o'clock
to consider wsys and means of raising
funds for th work. Delegates have
bean Invited from all church and chari
table organisation In th city. Thes
delegates, with the present executive
board, will constitute an advisory
board, and It is hoped that In this way
a" deeper Interest in th work may bs
aroused. Aside from the necessity for
a larger Income, the association feels
that there should be a closer co-operation
among the different relief organisa
tions In the city. The recent gift from
the Welnhard estate a check for 6600
waa a welcom one, coming as It did at
a time when there was a serious drain
on th resoucea of th society. The
work of the past two months haa been
very heavy and In several instances it
was necessary to ngag extra nurses,
the expense being born by th asso
ciation, except In two cases. In which
half was paid by th family.
Th merchants of th city have con
tributed most generously In th matter
of supplies, and the Needlework guild
haa been a most acceptable contributor.
Th greatest need at present la cash
The funds permit th employment of
but one nurs at present. It Is hoped
that money can be raised to employ a
second. The association Is or the
public, snd non-sectarian In Its work,
and In Its organisation. Calls may be
sent to headquarters. 106 Jefferson
street, telephon Main 717, or to Nau's
pharmacy.
R. M Gray of Bait Lake Is In th
V-4. flft.rnnnn be closed a
deal whereby he secured the building at
161-171 Morrison street, now occupied
by th "Red Front" store. In which he
will Install a man's furnishing store
which will be. as he styles It, "th
swellest exclusively gentlemen's fur
nishing store on th Paclflo Coast."
Mr. Oray haa th largest store of the
kind In Salt Lake City. He declare that
for th past two years ha baa been ar
ranging his business so that ha could
open an establishment In Portland. The
, . v. . - ...... i B in bv 100 feat In
dimensions and la considered one of th
best locations In th city.
"1 am positive of success." said Mr.
Oray. "We will handle only th vary
best and swellest goods on th market.
We win spend at least $6,000 In fitting
up our place We will have reception
rooms, lavatories and every modern con
venience that could be dealrad. Th
plaoa will be completely remodeled and
refurnished, we win employ oniy men
who are thoroughly competent and ex
perienced in the departments to which
they will be assigned. 1 am sure inai
h a BtnrA will t a. arreat noveltv in
this city and will be a great success."
Mr. Gray owns ins doming muwuh
ment of Oray Brothers Ca. of Salt
Lake City. H will remove with his
family to Portland In a short time H
announces that th store will be opened
not later than April 1.
SHERIFFS OF MANY
COUNTIES MEET HERE
County prisoners and all other crim
inals Intrusted to th car of sheriffs
In the stat of Oregon will hereafter be
Photographed and likenesses of each
will be furnished to the sheriff of every
county in th state. It la believed by
those who are advocating the system
that it will assist materially In the cap
ture of criminals and at the same tlm
serve aa a preventive of crime In th
state.
The photograph Idea was suggested by
v,vriff v.rH of Mnltnnmah county ves-
terday at a meeting of a dosen sheriffs
from ss many counties in mo siaio.
Letters Of Invitation to attend the
unit hv Rherlff Word to
the various sheriffs In th stste, but
only twelve, including nimseir, were
able to attend.
Those who attended the meeting were:
Sheriff Word, Multnomah; Thomas Lln
vlll. Clataop; M. F. Corrlgan, Yamhill;
H. F. McClallen. Douglas; J. W. Connsll.
Washington; Msrtln White, Colombia;
It L. White, Linn; J. R. 8havr; Clacka
mas; W. B. McCoy, Sherman; F. C. Sex
ton, Wasco, and W. 1. Culver. Marlon.
May -ever Mav Heard of It.
After a stormy Interview with Mr.
Boodelle, the successful contractor and
politician, th Indignant caller had gone
away.
"I fully expected to see you slug htm,"
said th private secretary, "when he
called you a persistant violator of the
eighth commandment. '
"I suppose I ought to have done It."
said Mr. Boodelle, grinding his teeth,
"but I couldn't recall the eighth com
mandment to save my llfel"
Th dramatic season of 1904 waa
opened last Monday evening by th pre
sentation of "Between Act," a brilliant
comedy by B. L. C. Griffith, at th Audi
torium, University Park. Th effort
waa a marked success and th universal
comment waa that th club had added
new laurels to Its reputation for pro
ducing popular plays carefully staged.
The members were admirably suited to
their parts, which were evenly sus
tained, th many amusing situations
calling forth burets of applause, and
each act closing with liberal applause
and curtain calls. Early next month th
club will produce "Tompkins' Hired
Man," a rural drama full of quaint
humor, absorbing heart Interest and In
tense climaxes. Th cast of "Between
Acta"" follows: "Dick" Comfort, mar
ried, yet single. Charles Falrchlld;
George Marrlgale, an unfriendly friend,
Eugene Ballla; Alexander Meander,
Dick's uncle, blamed but blameless, Will
A. Clsrk; Harris, Comfort's man ser
vant, Claud Brown; Mrs. Clementina
Meander. Dick's aunt, blameless but
blsmed, Mrs. O. W. A they; Edith Com
fort, Dick's wife, unknown, unhonored
and unsung, Mrs. D! B. Morgan; Sally.
Mrs. Meander's "French" maid. Miss
Helen Daly.
THE REDDRICK
Tin est Billiard Parlor in th City.
Th Reddrlck Is now open to the pub
lio at Sixth street, near the corner of
Washington, th finest on th Paclflo
Coast. Thar are 14 new Brunawlck-Balke-Collender
billiard tables, the best
in the world. Everything spick and
span, with th most beautiful natural
light by day and superb illumination
at night Evaybody la Invited to In
spect th permlses. .
While looking for somebody to arrest
a Hlllsboro dsputy sheriff was run in
by th town marshal for having a Jag on.
Nervous?
When night comes do you feel
"fldgity" and nervous? If so,
there's a causa, of course. To
remedy the cause you must get
at th seat of th trouble. If
you'll look to your eyea you'll
probably find some unsuspected
facta Let me exam In them.
I'll give you advice you can't get
from one who hasn't studied the
eye and Its troubles thoroughly.
J. H. KNICKERBOCKER, D. 0.
10 Ol
AUsky S1A;. Phon Olay 400
Whan th quls maater asked th med
ical atudent to name th different bones
Of th Skull th answer given wast
"For ths Ufa of ma I can't remember a
single one yet I have them all In my
head."
LOST!
Somewhere in the City of Portland
a bunch of keys containing three flat
keys and our name plate. One key
marked with number 1287. Return this
bunch of keys, before next Saturday,
to our office and receive as a reward
the handsome Mahogany Chiffonier
now shown in our front window. ;
TULL & GIBBS
' Complete Housefurnlshers