The Oregon daily journal. (Portland, Or.) 1902-1972, May 06, 1906, Image 1

The Oregon daily journal., May 06, 1906, Image 1

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Newspaper Page Text'Z'-'- ', .r 7n ,t i -j- as tr r-73,. ... : t tr- GOOD MORNING Journal Circulation - tlx THE WEATHER - : r . , v. Yesterday Sunday air and warmer; northerly 7as winds. , OREGON SUNDAY . .MORNING.. MAY,, 6, 1906.FOUR SECTIONS tORTY-FOUR PAGES.'- PRICE FIVE CENTS.- 53 - winds., : ----- . -II. 'A'. ' '.. V a ,:l'ypu--'.iii.;NO.' 8. x i:- . : . Portland. M lL OmiRt mil I V? I; T. . Federal Judge Charlea E. Wolverton, Who Will Preside at the: Land. . -ZH.1 ; '" J "Z ru, Triala. -,-' ' '-'g; illiliiiH OIL TRUST BAY CITY . t, . T - , ; j-j. f . ; ... .i . ... j i ,i v , . i , .,. r- President Roosevelt Prepares to -Vigorously Prosecute Cases V Against Standard Oil V . ;r: . for, Rebating.'". - fOoprrlstat, TTTt Kw Hcrrtr, to tiuri v . Wlr d TIm - 7mniL) - - " ' 1 ' Waahlncton, -D, -C., May . PrMldmi , Kooaevclt proposra to push tha case airalnut tha etandartf Oil -company vlir- oroualy. It 1 learn-4dy that' th ! avldsnca obtained by tn commtaaloner of corporation 1ia b4en runhf f to the department of' Justice n4-thatttiwr waa immediate consideration aa to what r-klnd"of Indlctmetita should be asked Offmlala my thatthe caaea ao far aa Tebaieaawr concern ad va Tpiam-Hhoafb, . hut the auentlon In etUl ODn aa to hatlxer-thegti erm a n ' a n t t-irnt law can ' be applUd. That 4a reamrded aa mora . draattc and eWoctWa .than . tha . atatuU " provl'llnf Imprlaonment for conaplracy. Ihm ii.r about the department la. how. ' rT, full of reporta that the moat ef fective kind of - Indictment - will be brought. It la altogether ptobable, ao "cordln to preaent Intention at the da i partment that the Indictment will be (Continued on. Paae Thirteen.) SAN FRANCISCO FIRE A CAUTION IN INSURANCE Holocaust VVNI Bring Abouf Abbl itiob of Re i nsu ranee P arT and, Force Com panies to ; ' - Limit Operations - Insurance authorltlea declare that , the effeot t nM-BaHFranclaoQ dlsaater upon Insurance eompanlee of .th world wUl be auch as to bring about a prac tical abolition of the reinsurance plan. fore all companies to limit their opera tions to "net lines" and make it diffi cult In , all th Urge cities and many mailer ones for business men and prop erty holder to seen r enough insurance properly to protect their property. They predict that half th smaller eoncerns holding policies on Ban Francisco prop arty will be put out of bualneaa com pletely and the larger eompanles carry ing Insurance in tha. smaller one will b forced to atand million of dollar of loss over and above the risks that they could legitimately carry. Th out come of the altuattoh, It I asserted, will be a complete revolution in the methods of conducting Insurance bual neaa on th n Psclflo coast, bringing nroperty owner Xac to Xae with tha Fire Drove Army of Gaunt Cray 3-7 T '"--rr JyrT' TU -rpff matj. r-rc-: r- tt r r7 Rodents From .Down" Town V 1 and Waterfront Districts Into . Residences. ;-f ' fflmlltt Harat ;Wwa. fcrrlee. .brlJaea ... Wtr. to The loornaL) LL8a&FrMcloo, Mar. ierrJL. plarue of rata la tha only form ef peetllence that haa.fqllo.wed the yreat; fire. ' Aa atronf an a sent to drire them aa tha flat of the Pled Piper wae to lead, the fir aant the rata scrambling . from the burned two third of the clti Inwhleh they war thickest, and all of them that could escape .with their Uvea Tuahed. ' aa did the penpl! into the one third -. that-the flames left. "- ' ' Theenrats"Tiav found ration " very scaroe in me neia ttiey nare invaded. The. plenty, oni whJchr they thrived lit the spot they had populated the moat thickly 1 not to be found In the cleaner portion of the town. Tha 'brown, mon ater that Attained hi also on the offal In the dark paaaarewaya -of Chinatown or filled hlmaelf to bunting- amons; the grain bnga of the aeawall g-rowe morose (Continued on. Pace Thirteen.) - r- V " to "Net Lines" moat erlou - Insurance problem - thoy hav aver been called upon to meet - All of the companies operating In Portland, and, It I understood, all those In the Pacific coast field, hav been notified from headquartera " to dlscon Vnn, the practice of placing reinsur ance. The effect of thl la to force each oompany to limit Ha rlak to Just th amount that It 1 willing to carry Itself and -to preclude th possibility of th property owner securing additional protection by having th surplus carried on th reinsurance plan In other eom panlee.' Thu th policy-holder will be forced to be content with the.- limited amount " of Insurance hi company la willing to- rlak,, whether, thla be one half, one- third or leea. of th amount he should arry.to be properly pro tected. -. '- Agent of tha big companies say the great losses at Ban Francisco are more than any oompany ever dreamed of be ing called -upon to meet, and, th (Uaas- Bankers and Lumbermew and Oreadhand vovdef in 'Millionaire bankers and timber klhg-4 of Michigan aad Minnesota, prominent business men and lawyers of -Crook and Linn , counties. Oregon. Severe wU known., resident of Portland. -a former special t agmt- ef the -Interior depart ment, a former United Btatea. commis sioner, an , ex-county judge . of J. Crook are aerenoants in . an . inaicimeni re turned yeeterdayafternoon bythe ied aral grand Jury charging huge fraud in-the -acquisition of valuable : timber uuui in uu iuiw, . .. M , .. j.. , . Nine hundred square miles of tlm oer land In Crook, Klamath and Lake counties, roughly estimated to be worth over $8,000,000, are alleged to Have been secured by the principal defendants In dtreot-vlolatlom -nt .iaw. a Hiindr atl persons were procured by their agent to take up claim which were aubee quently conveyed to. the eastern bank- ara and It la rhiriwl that the firoceed- Inga Wrefalnled wTthpeOTf fraudTrnaflmeTcTlgrged ngainet all the - defendants Is conspiracy to de fraud the governmentof -it- public lands. - i-r.--..---.-i -'vvi'-' . rromlaent X Involved. Lettere from United States . Senator Fulton and Congressman Williamson to the commtaaloner' of the general land office, urging that patents be Issued on the fraudulent claims, form a sensa tional 'feature of the Indictment. ; F. W. GUchrtst, a millionaire banker cf "Alpena, Michigan. Ralph ,E. Oil- (.hVlat,- M. m, -a-T.l frarinata, mhn won distinction In college athletics. Pat rick Culllgan and Jamea O. Macpheraon, wealthy-" cltlsens' of -Alpena nd large: owners of western timber - lands, and Heman W. Stone, cashier of the Swift count v bank at Benson. Minnesota pear In tha indictment as the chief ben eficiaries of the frauds, and It waa In their' Interest that otbefefendaiitaTM tha case procured the fraudulent entries on over 200,00 acre vef some of the moat valuable yellow pin timber land in Oregon. ,- ' ' Almond C Palmer and H. Judd Pal sner, attorney of Portland. JBenJamln F. Allen, a, retired capitalist, at present residing at IS Thirteenth street,, but formerly resident- of PrineviUe, and EM N, . White, a' aaloonkeeper at Eleventh and Morrtaon - streets, are Portland' - contribution to th. Hat of defendants. . The. Palmer brother were formerly In partnerahlp In PrineviUe, where A-"C Palmer was United Btatea commissioner. Many of the fraudulent proof a of entry were taken before him. Thirty Kile Muare of timber. IMmihiiI ' Tlnrnn. TVanrla -T Davltuk end JOhB Joseph rnlllna.xlnthe tlmbef locating bualnesa at -Albany, under the firm nam of EL Dorgan Co., were tha active instruments of the eastern capi talists In gathering in the great block T.B.: Ncuhausen; lnspectorrof the Interior f:;...,,-.T,T--, Department ter wUl make them reatrict the amount of their . risks materially to- such an extent that th applicant for protection wUl suffer serloualy. - W, J- Clemens, representing the-Royal Insurance company, which- suffered a loss of about 16,000.000. in San Fran cisco, said In explaining th cause leading up to th present situation and the affect that wlU be felt aa a reault of th Ban; Francisco disaster! "It . bag been' the custom of largt companies operating, on. the cbaat to carry heavy risk by placing reinsur ance In other companies. For example. If one of my customers wants to se cure a policy for 1100,000 and my com pany la not willing to take a rlak for mora than. ISO.OOO It would lasue ita policy for th full f 100,000 and . rein sure Itaelf . In some other company for the f 20,000 difference. ' W hold the other oompanyta policy for that amount to protect ourselves. This plan has been wqrked very extensively In this section of the country and most of tha larger companlea carry rlska In thla manner, amounting to aa much aa tha entlri rapltal of the smaller companlea In fact many of the smaller companlea have depended upon- this plan, ol relnr sura nee for existence. ' Such as have, will moat likely be put out of bualneaa entirely a a reault of tha new order te discontinue thla plan Of Insurance. "Pursuance of th reinsurance plan Continued on Pag Twa. FrMduJently Acquiring Tm- - , , J". ' ' - --tiST or ni muons. ... -y . : - -.-' -r- e . F. W. QllcbrUt, Alpena. Mlchl- e - gan. .. - ' : . ' .1 Ralph E, : Gfiohrlst, . Alpena,. 4 Michigan. - - , . t". Patrick 2 Culllgan."-Alpena,- STtchlgan. "' . "- "" "t James arMtcpherson, Alpena, Michigan. "-r-v. '-. 4 Heman W. Stone, . . Benson, 4 Minnesota. - -.- ; ' ,.. . e Benjamin " FrAHen." Portland. 4 v' Almond-C. Palmer, Portland,- H. Judd Palmer, Portland. ; Ed N. White, Portland. - : v ; 4 - ICdmund Dor gun, Alpany.i d 4 -i - Francis J. Devine, Albany.ii.i JuRn Collins, AlllBUJ. ' Maloohm McAlpin, Albany. ) . t . d 4-Thoma Watklns, Albany, Charles M. Elklns. Prlnevilla J e John Comba. PrineviUe. ' e Donald F. Steffa, PrineviUe. ' e . ' C 'A. M. Schlierhols. PrineviUe. TJ. W. 7 Hopkins, Vancouver, 4 Waahtngton. . d ,.' - W. W.' Brown," Seattle, Waah- - Ington. : -. -r :':'. '...' of timber, 10 miles square, at th head quarter of the"DesChutes river. . Col 11ns Is now languishing behind the bar of -the Multnomah county Jail. ..because ofiwfuW-ToqiMura grand Jury the books' of. E. Dorgan a to.-showing the firm's operations. .-.His refusal was on the ground" that the pro duction of the books would Incriminate himself. )u , . .- : . : Senator Declares y tfimself on -Statement Number One 1 Thinks Popular Candidate : - - - Should Receive Votes. rWashtnctn 1MI ef " Tee Jaeraal. Washington,- May I. Senator Qearln when asked today . concerning . his at titude on th Oregon- primary law, and I particularly as to statement NO. 1, aald: "Of course I am In favor of state ment No, 1. Mr. Bourne I th regular nominee of tha Republican party.' If be receives a majority of the votes oast la June for senator he will be entitled to and hould.be given every Democratic vote In the .legislature, . "It, on the contrary, I receive a ma jority over Bourne- Republican should vote for me, and J relieve they will do a Thl I'-' In- accordance rlth. the spirit of th iaw and Is honest. - lContlnued" .on Pag Two. ... ., .A - ..i ... Among th PrineviUe men who are Included In the list of defendant are Charlea M." Elklns, merchant; " John Combs, who haa played a prominent part In Republican polities; Donald - F. Stef fa, editor of the Crook County Jour nal, and M. E. Brink, former county Judge of Crook -county. 7:7 Xn - 1 t. r - . . ' a .....,. xnn,nii artn Thomas H Watkina, managing crulaer for Dorgan ft Co., are' the Albany de fendants. J. W. Hopkins, an attorney at Vancouver, Washington, and W. W. Brown of Beattla, also an attorney,' were caught In ' tha- government' dragnet and are among th Indicted. C A. M. Schlierhols,- formerly a special agent of tha Interior departments, completes the list of th accused. ' ..".a- . ----- rT"JrMrnpcittro When - ausplclona arose three' years ago a "to th legality of the entries. Schlierhols was directed to Investigate thatn , lntUr-4--.,pt CffHnn. It la charged, with tha other mem hr ni Tlhe huge consprracyTTja repeatedly ro ported to -the-general land off lost that the entries were regular and that patent siiouiu issue. - r , v The Indictment adds, aa usnal. to tha list of indicted persona the fictitious namea John Doe, Richard Roe and other, and It la aald that eeveral promi nent dtlsens of Oregon may ultlmatel be Included. . . The Indictment la th crowning labor 01 ine zeaerai grand Jury, which has been In session, for .the past aix weeks. and represent ' a1morhf bulaah work on mo-part -of United Btatea District Attorney W,. CV Bristol and InsDeetor T. B. Neuhausen. Th presentation- of the evidence to the grand Jury In this case alone has occupied the . last tw weegs and scores of witnesses were examined. It wa with the greatest difficulty that the-wltnosee were com pel ted to lacloaaAh facts. When aubpoaned, to .appear before ike-raitd jury, some or mem simulated sickness. soma delayed coming and some flatly refused to respond. Outside of - the actual defendants, at least 1,000 people, chiefly residents of Crook and Linn counties, were, involved either aa entry- men or aa witneaaes 10 proor of entry, and- lb- government - agents have en countered a spirit of stubborn resla a nee which 'has pervaded th peoplt of tnea counties. - . . ' 014 Style Methods. In their general outlines tha methods employed In the acqulaltlon of th tim ber land were th aame that have been made -familiar by previous Indictments in tha land- fraud caaea. Hundreds of persons, were procured to take up clalma. raiseiT swearing mat tney were the entries solely for their own use end benefit, while they were In truth merely (Continued on Page Thirteen.) Unearthed ihrlraads in Oregon Timber Lands ENGLISH JNVEST Arrangement Just completed with a syndicate of English capitalist hav provided , th sum of . $5,000,000 to be pent in Interurban railway and elec trical development and real estate op erations In and about Portland. On re liable authority It Is reported that tha United Railways eompa'ny - has-con-oludeda sale of 15.000.000 ' of bonds for carrying out its project connecting Portland, Salem, Hillsboro and Forest Q rove by a standard gauge electric road and constructing a . street - railway- sys tem in Pol-Hand. Zl',. " Tha deal was negotiated by J." Why to Evans, . president of tha. United Rail ways oompany, who la a-native Scotch, man, and la well known In Scottish and English financial clretes. Asked yes terday to make a statement concerning th deal, Mr. Evan declined to confirm any of th. reported detail, end .was fetlcent In discussion of tb subject He said, however, that th whole proj ect of the United Railway company. Involving construction of about IIS miles creleotrlo road, would be carried through a soon a neaeesary charters ware secured from the city of Portland and. other' municipal and county au thorities In tha territory' affected. ' and that ample funds were forthcoming. - It is said- that a portion of th capi ta secured will be used In developing electrical energy, nd In real estate and other enterprises , Inaugurated by the United lull way oompany In thla city. . r'' j ' I ' ' ' ' 'toM"V''VJ ' '11 1"" .-WC BristoV District Attorney for Oregon-Who ..Will. Prosecata .. '. "'' "- h Land Fraud Cases. t ,.l Earth-Tremors Divert Waters of ache Cre Valley Is Threatened With Destruction. ' eOqpnlght. Hearst . Nrtrs Sarrtra... by Wire to The JaeraaL) 1 Vallejo, CaJ.;rMay'5.-EarIythhi morn.' Ins a trembler was felt near Lower Lake, In Lake -county, and the report reaches oea M, M. A, ,rm,K. '"f tne waters of Cache creek,- which flow through the Patay valley, have been di verted from their course and are threat- ning - tha entire 1 community - ,Thn ater are rising In such a manner as tu pruv that-thegeueral fiowof -th rtvopfrJ.a' Peeir liupeuea wnue tow regular course of th creen is ary. It Is believed that earthojnake caused a mountain slid of sufficient extent to dam up . the creek In the, Patay valley. The water Is making 4ts" way toward the Barlnard ranch and considerable land In this location Is under water. Many fields are inundated and the water on tha low lands covers the fences. The Barlnard residence Is threatened and tha (Continued on Pag.Thlrteen-) FORTUNE 1H . CAPITALISTS Syndicate Will Interest Itself in Interurban Railways, Electrical r Plants -and Real 7 rkr. :r Estate Development.- 7 : - New Tork, Philadelphia and , Boston' ar not the limits of th lively Interest and growing - confidence felt by financiers and investor in. Portland' future, and Oregon's great resources, .Th capital ists across the water are equally alive to the opportunities that ar offered for profitable ..In vestment here. , ., Interest Were XostUe. . In . local financial circle th story runs that the United Railways com pany's financing ' enterprise was not warmly received in certain quarters. In New Tork. and It waa developed that the . financial interests connected wltn the moat recent consolidation of elec trical and .street railroad Drepertta In Portland and the Willamette valley were . hostile. The United Rallwaya agenta ware met with a friendly bund grasp, but that waa all-.. Tha ' New Yorker's hand did not open with any thing, resembling financial encourage menu .and while there, seemed to he plenty of money . for . various Paclflo Oregon.Senator.Bridges ..Gap. etweert Tvrcr) Party by Writing Allison ; Amendment. ; - (Washlngtoa Boreas ef 'Tbe JoaraaL) . . Washington," May. l.-It has remained -' for aavOrcoa--aanator , te bridire th gap which haa existed between, tha two opposing elements in the senate on th question of tha board of a limited court review In framing railroad rate legisla tion, it developed today that th author of f tha-so-sailed; Allison amendment. - which has been- accepted by the oraal- denT and by cunsenaUe and vadleal ef -the eenate, -ta Bena tor Fulton;- He framed the amendment Sunday last and submitted It . to Senator Allison, - who Indorsed It, and In turn submitted It to Attorney-General Moody and Senator Cullom, and then to tha president, whs today gave his approval of it. - Fulton wiu not discuss th Question of his auspices, but In explanation of the amendment says: - '.When th bill cam from th house It contained tha following provision: Continued on Pag Thlrtsan.) IN REALTY northwest projects along Una of eleo-t trtcal development, there wa no con alderable amount available for the men whose plans conflicted with tae la-... tereat in th big coalition. It waa then that J. Whyte Kvaa and hi aaeoetotes resorted to th use of tha AUaatio oahle and took np their proposition with th . Englishmen, . with th reault that da- ', sired arrangements - were soon mad across the water for f inanolng tha en tire project.- . forest Qrove Una Tint. The' oompany contemplate eonat mo tion of tha Format Orove line of the tre gon Traction company first a frenchlee already having been enured for tluil enterprise, but It eoneummatloa hlD., It Ja aald. upon the carrying for- r th larger plan, embraelng the a llnea on Tenth and Fleventh fre-i ; rlera to Irving. 01 Tayl'ir front I r 4 rleventlw HavenfH from I itr t Hull, the desired iTtnt-trt Continued on I ; V J: