The Oregon daily journal., January 24, 1907, Image 1

.- CAi-iVAL ?iu,c:: oi- r.iusic vill-d::.giv::u prise to evcav r.ead::i. of the sufiday jouiu::
GOOD EVENING
THE WEATHER.'
Fair tonight and Friday; north
erly winds.
( ( IIMMPJ nprnal CircuhtioiT
VOL. V. NO. 279.
PORTLAND, OREGON, THURSDAY , EVENING, JANUARY 24, 1907. TWENTY PAGES.
PRICE ; TWO CENTS. ;. ftfallav.Y.
MimiMm
3IIDMIIESIEI1
-WITHIN
SYST
Thomas TJcCusKer, former Railroad Em-
ployc Testifies That 1 Na Competition
Has Existed Between Southern Paci
fic and Union Pacific Since Consoli
dation.
; Franklin fc Lane, member of the in
terstate commerce commission, tbla
morning In Portland reaumed the hear
ing beguh at " Chicago to , determine
whether-the consolidation of - manage
ment of the Union Pacific and South.
ern Pacific Railroad companies under
K. II. Harriman constitute! a monopoly
in restraint of trade.
It was clearly shown In the' forenoon
session, by the testimony of Thomas
MeCusker, the star witness for the gov
ernment, that competition In rates and
service existed by way of Sacramento,
the Ogdnn gateway. and the gulf1 aa
against .the Union Paclflo and Northern
I'aolflo lines prior to the consolidation
f the so-called Harriman j roads in
1901, since which time there has been
nn competition as between the Union
Pactflo and,,lFout.hej3 JPaclflc route..,.,.
Methods af Soliciting -reijht. -Mr.
MeCusker waa for II years a con-
tractlug freight agent and claim agent
of the Southern Paclflo railroad In Ore
iron, then for a year or mora ha waa
assistant general agent for the con
solidated lines, and up to a year ago
he was working or the Harriman linea
freight""" department. Hla testimony
brou.-rht out the Utfference In methods
of soliciting freight for the lines of tha
Sunset route and tha Union Paciric
before and after tha purchase of South
ern Paclfld control by tha Union Pad
flo railroad company In ItOl.
Other ' witnesses who testified this
Wenoon Included Edward Newbegln.
Henry Hahn. Thomas D. ' Honeyman,
Kdward Ehrman. I A. Lewis. J. K.
QUI, all prominent "Portland whole
salers, and their freight clerks. These
wore that prior to 101 they were
constantly . solicited by - competing
freight solicitors ftnvthe union pacific
and Sunset routes, and that much of
their freight from tha east waa
brought via the Sacramento route and
tha Southern Pacific to Portland. . .
Business Tormerly BpUt Vp. ' .
Tha Southern Paclflc at that time
maintained Its own Independent freight
soliciting forces and It waa thalr busi
ness to get all the freight they could
more' via the' Denver A Rio Grande and
Colorado Midland to tha Southern Pa
ine coast linea, Although It waa a
longer haul via tha Sacramento route.
or tha Ogden gateway, than Tin tha O.
R. aV N. and Short Line, tha Southern
Paclflo men In those daya succeeded In
getting a good share of tha business Jn
competition, with tha Union-Paoiflo, and
tha northern .linea.'- -,. - -
Tha session opened at 1 o'clock sharp.
Commissioner Ldtne announcing briefly
the object. He said it was a continue
tlon of tha Chicago' Inquiry Into tha re
lations of the Southern Paclflo and' Un
ion Paclflo Railroad companies and thalr
operation in restraint of trade. The com
mission waa represented by Attorney C
A, Severance of Chicago and tha rail
roads by W. W. Cotton, general attorney
for the O, B. N. oompany, and Judge
R.- 8.-Lovett,--forth Harriman lines 1n
general. J. C. Btubba, traflla director,
and H. Ft. Miller, general freight agent
of the Harriman linea In Oregon, were
at their right hand, . , --v; .
' Many Wits esses Sna-monad, ,
- Tha federal courtroom, where tha alt
ting waa held, waa tilled with railroad
men and wholesalers, mostly summoned
aa , wltneasea or prospective witnesses.
Among them were: 'I. p. O'Brien, gen
eral manager of the Harriman linea In
Oregon; H. - K. Lounabury. district
freight amt; WV-W, Cnnun, assistant
general freight agent; W.. D. Skinner,
aasistant general freight - agent; -R. P.
8chwarln,. general manager Paclfle Mall
Steamship, company; Ralph Jenkins,
formerly an O. R. N. contracting
freight agent; J. F. Myers, car service
agent; J. MoQuIre. superintendent As
toria at Columbia River railroad; C F.
Overbaugh, assistant auperlntendent O.
R. A N. water lines; Captain A. B. Gra.
liam. W. H. BeharrelL Fletcher Linn, W.
C. McBride, general agent Denver 4k Rio
Grande, And a - largo delegation of
freight and pasaenger agents represent
ing the various railroad companlea that
maintain offloea in Portland. ; --
: Oottoa Xadioates Defense. - -Mr.
Cotton, for tha , railroad com-'
pany, indicated his Una of defenae by
asking a number of questions to ahow
that there is no limitation placed upon J
tha merchant by tha railroad companies
aa to which route ba may ship by; that
he la attll at liberty to ship by tha
Sunset route, tha Union Paclflo or the
all water linea; that there la no mate
rial change in conditions In Any reapect
excepting that fewer freight , solicitors
(Continued on Page Thirteen.)
CUT OFF HUM'S LOAN
Roosevelt's Investigation Through Commerce
1 ' Sk, St ' 1 SB m ' BBSbk " . A
Committee spoiled Magnate s Plan tyr ;
Borrowing Money From France.,, :,
(Jnaraal bbkfisi service.)
I Tfcw Tork. Jan. J 4. President Rooee-
relt'a Investigation of the Harriman
railroads' through tha Interstate com
raerca commission. It was learned, has
upset the loan which K. H. Harriman
negotiated in Franca for 150.000,900. He
was forced to borrow In tha open mar
ket in thla country and this was Isrgely
responsible for tha tygh loaning rates
here. . ' , - ' j
The loan that Harriman sought among
tha French banks was practically com
pleted when announcement came that
the president had ordered an Investiga
tion of the "system" and 'Harrlman'a
unusual pneans of buying and selling
rallrosda. In tha fuvor that followed
foreign bankers sent notice that the
loan could not, ba made. ' Thla snuden
chsnge of intention and tha fact that
great railroad dcala were under way
made Harriman enter tha money market
here and obtain funda he needed at any
rate of Interest. - ,
According to facts Wowfeht. out at tha
Investigation of the HarrimM railroad
enterprises by the-Interstate commerce
commission, the financier waa author
ised to borrow money and use mm col
lateral Union Paclflo .preferred Stock
then In tha company's treasury. H
purchased. It was brought out, ainca
July 1, no less than 1101,000,009 par
value of stock of railroads, or what In
tha actual market prW ones tlSO.OOO,
900. It I supposed that Harriman In
tended t4 place Union Paclflo preferred
a a col In t era! for tha loan that hs sought
In France. '
SELLS HER BODY
TO: AID A FRIEND
(Apscls! Mspatek te The Jnsrssl.)
Dea Molnea. Ia., Jan. It In her
Aeflrf to ralaa tlO to aid a girl friend
at Council Bluff who la dying of con
sumption. Dottle"" Morgan, a beautiful
of this ctiy. delliwrately pawned
her body which is to ba delivered to
a medical college should her debt not
ba cancelled before death. .The mort
gage wsa given to Mose Levlnh, a well
known ta Molnea pawnbroker. It be
gins, "I, Dottle Morgan, by my own free
will and without coercion of any kind,
do hereby sell to Mose k. Levlch my
body after death, to do with aa ha aeea
lit, for the consideration y J 10."
- Miss Morgan wants to bring her e'lck
frienl back to Dea Molnea for treat,
menu .....
THE SPIDER
m mm
New Tork World.
"PlTOPORTIONrorCATirALSTOC
, ' HARRIMAN AND ASSOCIATES '
: r - I ' . -'- Mlleaga.
Union Pacific, Including Oregon Short Line and Oregon Rail-' .
road Navigation CompanyT..-: . i '5,354.43 '
Southern Pacific -y.l:-i-v. . i, .. .i..V. . ...j. .V.. .. 9,142.01 , .
Chicago A Alton . .". . . . i , . 15.2S f
Illinois Central-.'4. .' .r.. i, .., .". . . . . , .'. 4,374.04 ' -
Bt. Joseph A Grand Island. ..;...........;...:........ .. 251
- Atchison, Topeka-' ft Santa-Fe. ... .u . . . .-t . .'. ... . . .. 9,303.93
. . Baltimore ft Ohio, comtnon..':;.".;,..'.'.'..... . ;'. 4,523.03
J Baltimore ft Ohio, preferred. r. .1 . . . ".v. . 4,623. 0
New Tork Central, i', ... ..i ". .....iV. .. 4...... ..12,543.56 ,
Northwestern . .-..-..... ,7,408.13
St. Paul i...........f.V...!....7,135.75
' San Pedro ft Los Angelee.... .v.. ,. .. 512.33
-Capital V !
' Stock. '
$546,000,000 '
. 300.000,000
, 40,000,000
96,000,000
14,000,000
234,000,000
152,750,000
: 60,000.000 -
160,000,000
- 100.000,000
108,000,000
Harriman
Percentage.
. Majority ;
Majority
50
80
' 63
7.6V..
21
112
7.97 '
S.82 ' :
: . 6 '
Mr. Harrlman'a "control" of thla stupendous railroad mileage is exercised In many waya. . Union-Paclfle 4a tha -central
body.. Of 'thla Hr'Harrlmau and his friends own a clear majority of the stock. In tnrn tha Union Pa
clllo treasury owns all the Oregon. Short Una -andN Oregon Railroad A. Navigation company stock, and enough of
tha Southern Pacific stock to eontrql. that road. . The , other blocks of stock are divided between tha Union Pa
clflo treasury and the Oregon Short Una treasury. .As to the San Pedro A Dos Angelea road, there la no owner,
ahlp of stock; but Mr. Harriman haa with William vA.-Clark, the owner of the road, an agreement for year
that thla road, which- Is a competing Una with tha Southern Paclflo, will maintain tha earns rates as tha South-
ern Paclfle. ' ! . ' ' : . -. - ' - '; .
- Over all thasa linea Mr. Harriman la an autocrat In a sense -that no other railroad man approaches. All tha
subsidiary made are eontrolied by Union Paclflo. Within tha .boardtAf dlrfotora of - Union Paclflo there is nn
executive committee: most of tha routine business of , the executive committee has consisted of ratifications of
Mr. Harrlman'a offlclal acta. ' .., '-
RUSSELL A.
Michigan Senator Diss Suddenly
From Heart Disease at His
Home in National Capital'
" This Morning.
ALGER
" ' (Journal Special sVrles. ' '
'Waahlngton. Jan. 84. United States
Senator . Russell A. Alger died thla
morning at his home In this olty at
1461 Sixteenth street from heart dis
ease, from which ha had Buffered fot
soma time. . . ' ' . "
Tha end cama auddenly. Ha had at
tended the senate regularly. Ill-health
had caused him to decline to enter tha
race for reelection. - William . Alden
Smith, Juat elected to. auocead Alger on
March 4, eald:
"I doa't wonder hla heart gave out
He waa loveable, sympathetic and gen
erous. Hla heart was tha biggest part
of hint." ,
Senator Alger conversed pleasantly
with Mra. .Alger In her room at ;I0
o'clock and; then went down stairs. A
few mlnutea later lie suffered a recniv
rence of his old heart trouble. ; Death
came quickly.
The senate adjourned at ll-.ie o'clock
In respect for the memory of Alger.
Ruseell Alexander Alger, senator and
capitalist, was born In Lafayette,
Melllna county, Ohio, February 27. lilt.
He was orphaned at 11 years of age and
for seven years worked on the. farm,
earning money .to defray expenses .at
Richllleld (Ohio) academy during win
tera. . Ha taught school for two years
and waa admitted to tha bar In IS&S.
Alger began practice at the Cleveland
(Ohio) bar. but a year later moved to
Michigan and began lumbering in a
small way . Ha eullnted lu the Mlchi.
0 - . " '
V " " '
' i . - ' ' i
r . .
' ' ' i
:-Rnell A.; Alger,' ,"
PASSES AWAY
Had Been Attending7 Senate Ses
sions and Cot Up In Appar
ently Cood Health and
Ate Breakfast.
ran valunteera at 'the outbreak of the
civil war as captain and was. success
ively promoted until he became a major
general by the close of tha war.
After the war he 'reentered tha lum
ber business as head, of tha firm of
Alger, Smith ft Co. and tha Manlntlque
Lumbering company... which, have . ex.
tensive lumber tracts and mills In Mich
igan and Minnesota.
t Alger - became ,aotlvel , n , Republican
politics early in hla career and in those
daya there waa a close connection be
tween the federal and state land offices
and the political leaders, Charges of
corruption and grafting warn openly
made against Alger and hla political
captain, Don M. Dickinson.. . . '
In 1JS5 Alger was elected governor of
Michigan and was a leading candidate
for president In 18SI In the Republican
national convention. He waa elected
eommander-ln-chlnf of tha O. A. R. and
In 1807 appointed secretary of war by
President . MtKinley, resigning two
years later on account of the "embalmed
beer' acandal during tha Spanish-American,
war.. He waa appointed ; United
States senator In ItOl to succeed James
McMillan, deceased, and elected In Feb
ruary, 1103, for tha term expiring in
March,. .'.. -. ... .a..
SWEETHEART KILLED
v . INSTEAD OF RIVAL
Fresno. Csl., Jan. J4. James J. Jack
son, an undertaker's assistant, lata last
night shot and killed Susla Pearson at
the : Southern Paclflo roundhouse. He
then put's bullet hole In his own brain.
It la aald thta tha bullet with which be
"killed tha girl was Intended for K. M.
Packard., of whom Jacknon was Jealous,
and who waa atanding near. The girl's
father la an engineer at the roundhouse
and she died in hla arms. . ,
BRYAiy COUNSELS
Ncbraskan Praises Democrats in Legis
lature for Voting for People's Choice,
Ctrin If Tlimf Atrt OrkntiKltanno Ie
; -uvui . ii iiiLjr mc ivcjuuutaii3 "in
uent Speech Predicts Triumph of
Eloq
Popular Rule.
1 (By a Staff Corresponoeat.) r
State House, Balatn. Jan. 24. William
Jennlnga Bryan of Nebraska held the
wheels af .legislation - checked .for 41
minutes this -, morning - while, he ad
dressed a throng that packed the hall of
repreaehtatlvea - from " wall .. to " wall.
Wedging the membera of tha house and
senate In their seats Ilka sardines. The
entrance of ' tha distinguished visitor
Into tha hall, escorted by Governor
Chamberlain, Senator M. A. Miller and
tha committee, waa greeted with a burst
of applause that shook the windowa of
tha halL ';',-.,;;,:-'
When he took hla place on the plat
form,. President Halnea introduced tha
speaker of the day In a brief, sentence.
it. t'.r". . " : . '
i. . . . . .. .
T have the extreme plonsure of in
troducing to - -you the distinguished
American citizen, Hon. W. J. Bryan of
Nebraska, who will address you.''
' After tha applause ' had aubstded,
Bryan began hla address. He said ha
would make some suggestions for legis
lative work. The night before ha had
discussed politics and shown hla politi
cal leaning, now he, would talk on a
broader theme. Ha waa going te try
to avoid politics.
-Bxyan apoke on. thothcgrLesjpLjov
ernment. . One waa that repreaentatlves
are elected to think for the people, and
the other that tha people thought for
themselves and elected representatives
to execute their thoughts. The people
were supreme and able to think for
themselves. , .'. ",' - v.
Street Xleotlon of Senators.
. Tha apeaker took up tha direct elec
tion of United States senators and
congratulated Oregon on tha advanced
stand aha bad taken. He said that ha
wanted to thank tha membera of hla
party for voting for the Republicans
for senators whan they ware tha choice
of the whole people. . Ha aald that the
Initiative- and referendum was the- ideal
law, as it gava the 'people a chance.
There waa mora virtue in the people
than in tbe represents tires and' he re
garded tha repreaentatlves not aa un
alloyed good, but aa a necessary evIL
Mr. Bryan dlacuased abuses- of cor
porations, railroad regulation and atata
and national arbitration of all taoor
disputes.. In hla speech, Mr. Bryan
aald In part:
"Mr. Governor, Membera of tha San
ate and House. Dadlea and Gentlemen
I era but a private clttsen, whtla those
whom -1 have tha honor ef addressing
have tha burden on their shoulders of
representing their constituents. Isst
. w j"' ii.r :m, wu. villi.
gestlons in connection, with, the legls
letire work and
theme whickr unite us as cltin. - -
try with regard to tha duties of a rep
resentative. There are some who be
lieve that a representative ia elected to
think for the people, while others be
lieve that tha people ought to, think for
themselves and select their representa
tives to act for them. -
PeoTjle Should, trunk. "
'T believe that the r'Tln shniiH
TttMHrrTOi tmimseivea ana uti repre
sentatives should be the exponents of
the people to put into effective opera
tion what the people desire to have
dona, A platform Is to tell what the
man on the platform will do if he Is
elected. If It were our object is elect
ing repreaentatlves to select very intel
ligent men to think for the people we
would . have no platforms and would
have no need for them. And I hope that
the time will soon come when a man
who goes contrary to hla platform will
be whipped fronr public life as an em
beisler la whipped from business. I
firmly believe that it is tha duty of a
representative if a question arrives on
which he cannot honorably represent
his constituents to resign rather than
iiu.i.iiinwiii wiim vonsiiuienia
want on the theory that it Is following
Vf uuiim ;u:m'c .no vneory
that (he people think for themselves
and select representatives to act for
them la the accepted and growing"
theory In thla country.
. Believes la Safeiandnaa.
"There Is a growing aaitatlon for
the election' of United States senators
bvvnoDular vote, h nanm- -11
have-not-represented tha- people, I -desire
to congratulate the people of tbla
state on tha advanced position taken on
this subject. Democrats aa well aa Re
publfcana felt themselves bound by the
expression of the people's will. I want
to thank tha representatives of my party
xor voting tor a Republican United
States aenator when the people had de
clared they favored a Republican for
that office.
"1 . favor tha , Initiative and referent
(Continued on Page Two.)
WO M FORCED SHO TS OUT
Social Aspirations otiWife Caused Commis
sioner's RetirementWallace Appointed -'
as Successor for Canal Chief
' (Joaraal KpeVlal Perrlre V '
Washington. Jan. I4.While on the
offlclal side Theodore P. Shonts retire
ment aa chief of tha canal commission
is all smooth, iq the drawing-rooms of
the calptai it is stated that Mrs. Shonta
la rsponslble. , 6h did not HRe Wash
ington society's reception of her.
Mrs. Shonts is not anobbinh. but haa
been unfortunately advised by her so
cial secretary aa to the magnltixH and
dignity of her husband'a official posi
tion. Invttattona were decltned which
should have been accepted and calls were
not made which ahould have been marie.
The tempest , in all teapots In gov
ernment circles has , been blowing fr
months.
Tha resignation of Shonta will take
effect March 4. Mr. Shonta bas been
elected president of tha Interborough
Metropolitan company, which cimtrole
the rapid transit and many surface linea
In New York, ' ; ' -
It Is officially announced that John
F. Stevens, tha engineer In chars of
the construction of tha cans., will be
named aa chairman of tha rommlaslni
In connection with hla post aa chl if
engineer..' ...'. .
' Kansas City, Mo., Jan. 14. Chairman
Shonta thla morning aald that ha hail
had no. disagreement with tha preslilen
and had Just completed the work of
putting tha canal tn such a position
that It ran be constructed without fur
ther eh so. He can be of more service
to New Torkere than to the country
at large now. ,. v
TEARS IN EYES
OF THAW'S WIFE
(Speetsl Dlspateh to The Jearaal.l
New Tork, Jan, 14. During the trial
today the prisoner's wife. Kvelyn Neablt
Thaw, waa obviously under a strain.
Dark Circles are around tier eves and
tears were constantly welling up as
the state'a lawyers referred to the
crltno In harsh words. Observers de
duced from Jhe attitude of the family
that tbe sympathies of Thaw's relatives
. . "
are not with Ms young wl
leaned upon JU.iy Mi Ketixlo
thello suppn. -
Thaw took'nn active p'
amlnatlon of tnlrstnen. .
comb as about to be it
he wild th ssn wo'ill
nerves and ThaW tol l t ' i
he did not want bl-n.
peremplorlly ch-::-! . !.
t
to.
a- i
T've- ,
IT' -('
...