The Oregon daily journal. (Portland, Or.) 1902-1972, December 20, 1904, Image 1

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    Ifouimaf
G
OOD EVENING.
The Circulation
Of The Journal
Yesterday Was
Tonight and- Wednesday, occasional
reln possibly part i)W easterly
VOL. III. -NO. 848.
PORTLAND, OREGON, TUESDAY EVENING, DECEMBER 20, 1804 SIXTEEN PAGES.
PRICE FIVE CENTS.
STANDARD OIL AND CORPORATIONS. RAISED $5,000,000
IN
HOW HENRY H.
"SAVED THE
How Winning an Election by Bribery
Was Justified in the Consciences
of the Corporations.
Addicts Planned to Have the Men Who Held
Him Up Robbed by his Thugs Declares
Author of "Frenzied Finance'
(Journal Special Service.)
New fork. Dec. iO. Thomaa W. Law-
son lias at last drawn the fir of the
Standard oil, and a heavy duel with big
(una la likely to start at any moment.
Henry H. Roicere la leading the Standard
Oil fight Kogera has aturted an elab
' orate campaign agatnat Lawson through
hia lawyara. He tried to atop the cir
culation of the January number of
Everybody's Magazine, which waa placed
On sale today, because it contains an In
stallment of Lawson'a "Frenzied Fi
nance," which la particularly severe on
Rogers.
Lawyers sent a notice to the American
News company, which la the distributing
agent of Everybody's Magazine, notify
ing Its managers that they will expose
themselves to danger of criminal prose
cution If they plaw the magazine on
sale. news corrfpany announced last
night lit Bvarybody's Magtun would
be circulated aa usual.
As for Lawson, ha baa all hia warpaint
on, his warhags packed nnd mixing
war-medicine more fiercely than ever.
District Attorney Jerome has practical
ly pledged himself to -take up the prose
cution of Iawaon under that section of
the penal code which makea It a crime
to circulate false reports concerning a
corporation for the purpose of affecting
the price of lta stock.
How the 'system'' expended 5.000 ooo
to change the votea of five doubtful
states to defeat Bryan in the election In
IKS la the feature Of Thomaa W. Law
aon'a chaptera on "Freniled Finance"
published In the January number of
Everybody's Magazine.
Mr. Lawson. tella how David Braman.
a New York capitalist and promoter, ac
companied by Roger Foster, a New York
attorney, went to Wilmington, Del., and
had himself appointed receiver of the
Bay State Oaa company, just at a mo
ment when Addlcka and Lawson aeemed
to have that company's affairs well In
"hand. Lawson tella how Addlcka col
lapsed on receiving the news, and inti
mates that Addlcka slipped a revolver
Into hia pockat and threatened auicide.
The hooka ahfl papers of the company
were rushed to New York In a tyenk be
fore the new receiver could get hold of
them. Checkmated, Braman aaid to
Lawson: "There was absolutely no
chance of control being returned to Ad
dlcks. who had so outrageously abused
his trust; 'although, of course' (this aa a
aort of second thought), "you know, Mr.
Lawson. If Mr. Foater on behalf of his
client should receive the amount of hia
claim and the proper fee, from whatever
source. I should oe powerless 10 prevent
the dismissal of the receiver.'
"Braman and Foater were a delightful
he talented Chlmmle
Fadden would say. 'day knew delr bla
from de mahogany to oe renin , an am
celllYi' back to de mahogany.' "
Then he continues:
We agreed that the situation stood
thua: '
Bain at Maud.
If nothing were done before the com
ing Sunday, the 1st. the receivership
would be permanent: the stock, which
had fallen to l( per ahare. would re
main at that figure or go lower; my
friends, the public and myself would
be tremendous loaers; all the past of
Bay State, the doings of Addtcka and
Rogera and the appointment of the re
ceiver would come in for thorough in
vestigation; an awful scandal would be
aired In public; everyone would be cov
ered more or less with mud; and no
one could posatbly be the, gainer but
"Standard Oil." for Braman agreed with
me that the deal we had made with
Rogera would probably stand in the
courts. .
On the other hand. If an arrangement
could be arrived at by which we could
have the receivership discharged, the
company returned to lta officers, or our
"The
Christmas Sunday
Journal
Will consist of 7 Pgew th
biff eat and beat Special Num
ber of any Christmas Edition
in the Northweat. Price- s
cents a copy,' in single wrap
pers, at The Journal office.
1896 TO
ROGERS
COUNTRY"
equities preserved, all would be gainers
by the move, for it would be proof posi
tive that whatever the obstacles, we
could overcome them, and the stock
would go flying upward again.
After we had set out all the ad
vantages, disadvantages And, possibil
ities of the situation, I bluntly plumped
Braman with that Inevitable queation
of all such "slt-downa": 'What's the
price?" And Braman as plumply and
bluntly answered: "Buchanan, Foster's
client, muat have th( face of hia bonds
and interest, 1150,000. and we must have
at least $i6u,ouo for our trouble and
expense."
He would not ask us to pay on any
thing but the actual delivery of the
goods. He also frankly told me that
ha had named the very low figure 116 J,
ooo, because he expected to Invest what
he aeeeisaa rn Bay ilsll Osi stock at
IS and, upon lta Jumping to ft or $20.
to make fSOO.vOe.
Freniled Financiers.
Surely our courts are not also the
creatures of "frenzied finance'? you
ask. I warn my readers that this narra
tive la no more than a record of events
occurring within my own knowledge,
and that dark and vicious aa the pic
tures seam they are photographs of
actual happenings. Nor should the pub
lic conclude that the dishonor and dls
honeaty revealed In connection with Bay
State Oaa la exceptional. On the
contrary, such doings are the rule in the
affairs of great financial corporations.
Into the rigging and launching of al
most every big financial operation In
the United States during the laat SO
years, double-dealing, sharp practice and
Jobbery have entered; and. what la more,
the men Interested have participated In
and profited thereby. To correct a
popular fallacy I want to aay that I
am not referring here simply to moral
derelictions but to actual legal crimes.
If the details of the great reorganisa
tion and trustification deals put
through; since 18(6 could be laid bare,
eight out of 10 of our most succesaful
atock-Jobbtng financiers would be In a
fair way to gat into state or federal
prisons. They do such things better In
England. During the paat 10 years
three "frenzied financiers" have prac
ticed their legerdemain in London
Ernest Hooley, Barney Barnato and
Whltaker Wright The first Is bankrupt
and discredited; Barney Barnato Jumped
into the ocean at the height or nia
career and Whltaker Wright after num
erous attempts to escape, waa hauled
up before an mnguan juage ana jury,
promptly convicted and sentenced, and
committed suicide by polaon before
leaving the courtroom. I will agree at
any time to set down from memory the
names of a score of eminent American
financiers, at this writing In full en
oyment of the envy and respect of their
countrymen and the luxury purchased
by their many millions, whose crimes,
moral and legal, committed In the ac
cumulation of these millions. If fully
oxposed, would mike the performances
of Wright and Barnato seem like petty
larceny in comparison. But freedom
and equality, aa guaranteed us by the
Declaration of Independence, have re
cently been capitalised, and "freedom"
now meana immunity from legal inter
ference for financiers, while the latest
acceptance of "equality" Is thst all vic
tims of special privilege are treated
alike by thoae who control and exercise
such privilege, if the Judges and the
public prosecutors of these United
States war equal to tha sworn duties
of their sacred offices, this "freedom"
would have been confined long ago, and
throughout thla broad land there would
be Jails full of Trensled financiers"
who bad Imagined themselves licensed
to rob the public.
The Deal with mog.ra.
But to return to Bay State das:
"Braman," I said, "we see the situation
through the same glasses, but before
deciding aa'to prices let us see where
the coin to back them up la to come
from. Until the reeelverahlp Is dis
mtased not a cent can come from the
Bay State treasury, so that eliminates
Addlcka. I. personally, am In such
shape because of this same receivership
that I can do nothing. So. aa usual. It
cornea down to the man with unlimited
money Rogera. The queation la. how
to get Rogers to advance so large a sum
In such a ticklish business? He does
not want to get mixed up In a matter in
which any one man's treachery might
mean state's prison."
I left Braman and went down to Mr.
Rogers. After a careful canvass of the
situation It was settled that the only
(.Continued on Page Six.)
BEAT BRYAN, SAYS THOMAS W.
-
UP -
I gggLaaMaall ssaaisPVtwl jfl T
BbbsI jTsl saaV jfcss Ls7
Woman I have a note for $50,000,000, signed by the Grand Lama
money. j
Banker How hypnotically you talk. Madam! The bank is yours.
-1 - -I, ajs. j -i -ii-ir-t -i -1. ii 1 ri gassSj L -i t a i. - -
MRS. CHADWICK IS
A VERY BUSY WOMAN
Begin the Compilation of State
ments of Her Many Finan
cial Transactions.
Minimal Special Service.)
Cleveland. Of., Dec 20. Mrs. Chad
wlok today settled down to a purely
buslnesa basis and began working stead
ily on figures and statements which it
la presumed ahe lntenda to give to her
lawyera to aid them In ahowlng the act
ual volume of her transact tone.
This morning she declined to be seen
by any one other than her atto.-neys, aon
and maid, and apread out on the little
table furnished her a mass of papers and
memoranda.
Despite the great evidence against her
she seems calmly determined to win her
way to freedom. There Is nothing in her
bearing to Indicate that she will attempt
the Insanity plea, but It is the general
opinion that .this will be her defense.
Referee Remington by a decision to
day gave Nathan Lossor. receiver of the
estate of Mrs. Chadwlck. absolute control
of the Chadwlck property. Dr. Wall,
government physician, today gave aa hia
opinion that Mrs. Chadwlck waa phyel
cally able, to appear snd give testimony.
Mrs. Chadwlck will therefore appear as
a witness In the bankruptcy proceed
ings. OWES LAOS HU.
Brussels. Dec. 10. It has transpired
(Continued on Page Two.)
MRS. WORTHINGTON, IN GREETING
HUSBAND, FALLS DEAD ON STREET
With her husband approaching and
only a few feet distant, Mrs. Mary
mien Worthlngton of Mllwaukte fell
dead at noon today on the corner of
Fourth and Alder streets. The stricken
woman ba, been to the office of Dr.
W. L Wood but a moment beore for
treatment of her eyas and waa walk
ing down Alder street to Fourth, where
she wae to meet Mr. Worthlngton. They
reached the appointed place on time
when Mrs. Worthlngton sank to the side
walk before the styea of her husband.
TO - DATE FINANCIERING SO
FL0R0D0RA GIRL
PLEADS INNOCENCE
Asserts She Would Gladly Have
Laid Down Her Life for Book
maker Caesar Young.
SAYS HE TOOK FORTY
DRINKS IN ONE NIGHT
In Cross-Examination Nan Pat
terson Admits That Young
Used Personal Violence.
(Journal Special Service.)
New Tork. Deo. to. Miss Nan Pat
terson took the stand this morning and
was croas-questloned by the prosecution
on her yesterday's testimony. , The court
room was crowded to the doors.
The defendant waa nervous and her
gase shifted anxiously from her father
to her counsel. Replying to questions
she said she was an actress by occupa
tion and was not' a wife nor a mother.
-She again told the story of her meeting
Young, and of her return to New York,
where ahe stopped with her sisters. -May,
Queen and Mrs. J. Morgan Smith, at the
Navarre hotel. That date was May t.
(Continued on Page Two.)
Aid 'was summoned ss quickly as pos
sible. Dr. Oeorge B. Whltesldea and
Dr. Wood responding, but their minis
trations were futile. The body was
taken tb the coroner's office.
Mrs. Worthlngton had suffered from
heart trouble, but waa not taking treat
ment for thla ailment. She was 45
years of age, the mother of eight or nine
children and waa beloved by a large otr
clss of friends.
The busy noon throng surging from
work quickly crowded the strset where
EASY:
of Tibet, and I want to borrow some
How much do you want?
.-2
MORMON WITNESSES
EVADE SUBPOENAS
United States Marshal of Utah
Testifies Before Smoot
Inquiry.'
1 Journal Special Service.)
Washington, Dec 20. Apostle John
Henry Smith was recalled at the open
ing' of the Smoot Inquiry this morning
to be asked whether It waa possible for
Smoot to become an apostle or to be
married for time and eternity without
having first taken the "endowment" ob
ligations He replied that it waa quite
possible, but It was his belief that
Smoot had been through the endowment
house.
United Statea Marshal Heywood of
Utah testified aa to the difficulty of
serving a subpoena for witnesses In the
Smoot investigation. Many wltnesaes
had left the country. Others could not
be located. All those whom he failed
to find are reported to be polygamlats.
and entered such relations since the
manifesto.
The witness said polygamy was
rapidly decreaalng among the old
families.
Charles M. Owen of Salt Lake testified
that Apostle John W. Taylor is generally
reputed to have five wives, and has
taken two within the past three or four
years. Apostle Cowley hss three wives,
snd possibly four. Apostle Merrill has
nine wives, two of whom he married
since the manifesto.
(Continued on Page Two. )
the woman fell. Her sister. Miss O'Brien,
employed at a department store, was
called to the scene by a friend and her
grief mingled with the lamentations of
the disconsolate husband moved tha
multitude to deep emotion. With
uaiial difficulty of keeping back
curloua throng. Policeman Quints
eeeded In chairing a breathing
the Workers over the dead
the spectators learned that
lees, children would
there waa a profound
Christmas had brought to
xoon mouwrnsSssl sssanejsg
F. P. MAYS'
WITH THE PUTER RING
Grand Jury Makes This the Subject of
Its Early Inquiries Into the
Land Frauds.
Squads of Secret Service Men Guard Jurors to
Prevent Leaking of Such News as Alarmed
Mitchell and Hermann
Franklin Pierce Maya will be one of
the first persons upon whose guilt or In-,
nocence the federal grand Jury will paaa
In lta Invaatigatlon Into the land frauds.
Important testimony has already been
presented to the Jury showing his deal
ings with the Puter ring, and more Is to
be submitted later.
It has been established beyond ques
tion that Mays had extensive buslnesa
relations with 8. A. D. Puter snd with
others -of ths conspirators. He acquired
lands from tbem they had fraudulently
secured from the government by means
of pretended homeatead entries. It was
Mays who gave Puter a letter of Intro
duction to Senator Mitchell, asking the,
latter to expedite the patenting of the
fraudulent claima In township 11-7.
Mays' name figured unpleasantly In a
letter introduced In. evidence at the re
cent trial and written by Puter to Hob
son. Who bought land from Horace Mc
Klnley. All Have Ooaf eased.
The essential facta showing Maya re
lations with the land thieves are now
believed to be In the possession of tha
government. All of tha defendants In
the first trial hafe made complete con
fession to the government's representa
tives. Some of this Information haa al
ready been laid before the grand Jury.
s A. D. Puter and Horace ;. Mc
Klnley were Before the grand Jury ye
terday afternoon and Marie Ware and
Emma Watson told their stortes this
morning. Miss Ware was the first
witness called thla morning but was
In the Jury room less than half an hour.
Mrs. Wataon'a stay In the Jury room
wae even briefer. It Is supposed that
both women will be recalled later and
made only preliminary statements to
day. All the circumstances of F. P." Mays'
supposed connection with the land
frauda are known to these witnesses
and their testimony will doubtless be
of greet Importance Another witness
who was before the Jury yesterday
afternoon Is Thaddeus S. Potter, the
attorney whom Maya employed as the
medium through whom to convey the
lands which he acquired from the ring.
Saw Stays Operated.
Puter and hia confederates took; up
landfc. In the Blue mountain reserve and
In the Cascade reserve in their usual
manner, by falae claims of homestead
entry, and certain of these lands were
purchaaed by Maya Instead, however,
of having the lands conveyed directly
to himself he caused Thaddeus Potter,
who was employed In Mays' office, to
be named as The grantee. Subsequently
Potter conveyed theae lands to "a
Seattle attorney named Peters. Potter
testified lsst spring before the federal
grand Jury then In session that in these
transactions he waa merely acting as
agent for Maya and had himself no In
terest In ths land to which he held title.
The proceeds of the sale to Peters went
to Mays. -
In this connection It Is related that
Maya want to Waahlngton while Her
mann was land commissioner, for the
purpose of getlng him to expedite the
patenting of certain lands In which
Mays was interested. Hermann did aa
Maya requested and the claims were
rushed to patent with the aame extra
ordinary haste displayed In the case
of the Puter claims.
The letter of Introduction presented
by Puter to Senator Mitchell was
written by Mays, and In It he described
Puter aa "one of the most reputable
citizens of Oregon."
Mobson's Story of Swindling.
While the land thieves were operating
In southern Oregon, McKlnley sold a
quarter section of land to Edward Hob
son. He advised Hobson not to record
the deed st once, as the patent had been
only recently issued and an immediate
conveyance might sxcite the suspicion
of the government agents. Hnbaon
waited for several months and then at
tempted to record his deed, only to find
that .McKlnley had sold the same land
to another, whose deed hsd been placed
on record. Hobson demanded hia money
back and McKlnley gave him his note
for the amount.' The note waa not paid.
and Hobson then appealed to Puter. The
latter wrote Hobson a letter In which he
said that the note -"was to have been
paid by Pierce Maya" This latter is In
the government's possession, and Will be
submitted to the grand Jury.
It is believed that much of the evi
dence relating to Senator Mitchell and
auo-1 . ongressirwn, nermann wjji am vim y
spaee rat-iaeM aaftii erter tiveir arrival rrose iw l KTS
boor- wsMatjnsBwSSywSL -may will aa ears siisagi
nin. maatf iMMi: or the aatsl WemjMH
LAWSON
DEALING
this Is done. It will considerably delay
the proceedings, and the Jury will prob
ably not complete lta labors until the
early part of January.
Jury Boom Secrete Xsaak.
Extraordinary precautions are being
tsken by the government to guard the
secrets of ths Jury room. Besides the
men whose names have been freely pub
lished in connection with the land
frauds there are other persons In the
background who are deeply concerned In
frustrating the prosecution of- the
frauds. Powerful Interests are Involved
and money would nor be spared If it
were possible to corrupt the Jurors or
the witnesses. For this reason every
loophole Is guarded and a amall army
of secret service men is In constant at
tendance. Persons suspected of any In
tent to interfere with the investigation
of the frauds are kept under the closest
scrutiny.
The necessity of the unusual precau
tions that are being taken haa already
been apparent. When Puter and Emma
Wataon made their confession last week
to the government's attorneys, It waa '
considered of the highest Importance to
keep the fact from becoming known.
Nevertheless, some one leaked, and tha
news was Instantly wired to Senator
Mitchell and Congressman Hermann at
Waahlngton. It was after the receipt
of thst news that Hermann decided tu
Join Mltohell In hia trip across ths con
tinent to face ths grand Jury.
migid Secrecy Insisted On.
In consequence of this leak, Mr.
Heney haa adopted a policy of the moat
rigid aecrecy and none but the secret
service men are allowed to know the
nature of hia plana or the progreaa that
la being made.
There has been studied effort to ob
struct the government's inquiry Into the
acts of Mitchell and Hermann and to de
pict them aa the victims of "malicious
persecution" by Secretary Hitchcock.
Colored dispatches, some of them from
Waahlngton. mors of thsm written la
Portland and dated from Waahlngton,
have been published In the Oregonlan,
wlth'the evident object of making It ap
pear that the present proceedings before
the grand' Jury are not a fair. Impartial
investigation, but are prompted purely
by personal enmity and vlndlctlvensas.
The statement has also been published
ha. the same columns that Mitchell aad
Hermann may not be allowed to appear
before the grand) Jury to testify In their
own behalf.
Mitchell May Teettfy.
None of these statements Is true
President Roosevelt is himself the mov
ing spirit In the land-fraud Inveetlga
tlons, and he has demsnded that every
guilty man be Indicted and punished, no
matter how high his station. Secretary
Hitchcock's policy has had his entire ap
proval. It was Roosevelt who removed
Hermann from the land office because
of the latter's apparent complicity In the
land frauds. Aa to the appearance of
Mitchell and Hermann before the grand
Jury, It is highly probable that they will
be denied that privilege. Though it Is
not a right Which they caa legally claim.
Judge Bellinger expressly recommended
to the Jury that they allow any persons
suspected of Complicity In the frauds to
appear and make statements In their
own behalf.
Nothing has appeared which would
justify any reflection upon the fairness
or Impartiality of the Jury.
The examination of witneases la
again in progress this afternoon. Among
those who testified today were L. Jacobs,
the storekeeper at Detroit, who made
(Continued on Page Two.)
WILL WORK FOR NEW
WING ON P0ST0FFICE
: :
I W nwlilugtiin Biirenli of Ths Journal )
Washington. Dec. M. Senator
Fulton today stated that the Ore
gon dele gu Hon would make aa
effort to secure, at the eomlag
session of congress, .in adequate
appropriation to build an addi
tional wing o the Portland poat
oMce. This wing. Senator Ful
:
i
ton says, would he constructed
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