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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: