The Oregon daily journal., March 19, 1907, Image 1

"" r- , ' -t----: "-".-." "7r 7 . 77 "
41
rTHE JOURNAL has a larger
paid ctrcvhtlon than any daily
paper la Portland .or ta Oregon
. The, WeatherOccasional rain to--,
night and Wednesday. , , . ,
VOL. VI. NO, -12.
What San
' CJI" ffl WET fi J
' , -- ... , . Til .' 'V
' For the United Railroads. trolley4 franchise, $450,000. To Schmitz, $175,000 to Ruef, $175;
000; to Gallagher, $15,000 ; to Coleman, $10,000; to Boxton, $10,000; to the supervisor, each,
$4,000: v,7;- v. 7' :: -. -' 7,-77 - 7 :. 7.-"-; v '
. . . . For the Home, telephone franchise, to the supervisors, each, $6,000. ; :( 7 7.',
From the gas company, tothe supervisors, each, $750. f , --;
' From the fight trust, $20,000. To the supervisors, each, $500. - ,
Ater being sworn in the grand jury room last night Supervisor Thomas F. Lonergan broke
down, completely and gavehe following testimony regarding. his connection with the graft-:
cases:; V 77.7" - '. '- 7 .7., 7
. I received $500 for my vote granting iight permit to the. fight trust. This money was
paid to me by Supervisor James L. Gallagher. 7' 77". ; . ; - . - -
' v "I received $750 for my vote in fixing gas- rates more than a year ago. This money was paid
to me by Supervisor James L. Gallagher. - -
7 "I received $5,000 for ftiy vote when the deal with the Pacific States Telephone & Tele
graph company was made. , This money was paid to me by T. V. Halsey of that concern
-7 "1 received $3,000 for my vote on the Home Telephone company's franchise. This money
was paid to me by Supervisor James L. Gallagher. .
" "I received $4,000 for my vote in the overhead trolley deal of the United Railroads. ."This
; money was paiLto rae, by. Supervisor. James Gallagher. .: -v :s
i
"MM MMM I
CONFESSIONS INVOLVE
CAPTAINS OF INDUSTRY
WHO BOUGHT OFFICIALS
;: 7Creat Batch of jndictmentfl Filed ThJ Afternoon following Sen-
' sationaJ Confessions of at Least Fifteen Supervisors Before
k;,"Crarid jjury--Ruef and Schmltz Again AccusecVariourJOf-
, fields Pacific States and Vlome Telephone Companies, as
"7 Well as United Railroads Chiefs Included. -
(JoottmiI Special Srrlc. '
f San Franciace, Jiarch 1. The grand
Jury decided not to hold a Maalon thla
mornlns. the foreman ordering- poet
poneroenf until J o'clock, when a great
batch of lndlctmenU will be died. The
fact that the Indlctmenta will be re
turned thla -afternoon was officially en.
nounced. The Indlotmenta agalnat Ruef
will charge him with agreeing to , ao
cept a. bribe. : X
An abaolute confirmation ' of the re
porta cent -out thla inornlngwae a
eured during the forenoon It le aa
aerted "poeltlrely that 15 euperrleore
have eonfeaeed and that among the
Indlctmenta to be returned thla after
noon wUl be aeraral agalnat varioua
ofllciala. of the Home Telephone com
pany. While IjangdoB would not afflrm
r deny tha.etatementa that the auper
vlaore bad' confessed, he admitted that
there wee an underourrent of truth in
the reporta.
Another who It le eald will faU un
der e ban of the grand Jury la T. V.
Haleey of the Pactno Statee eompaay,
from whom Superrlaor Lionergaa la al
leged to hare eonfeaeed that he re
ceired ,000 for hla rote. f '
Bmef Vmaeeg Sleepleea aifht.
Ruef ipent a night of horror ta
umptuoue quartera at the St. Francla
Cut off from hie frtanda be paced the
mail room In an agony of doubt and
terror. For the flrat time ainee hla
Indictment and arreat he reallaed the
eerlouaneae of hla predicament.
- Time and again he threw hlmeelf on
the bed In an effort to aleep, but after
a few momenta' repoee would Jump
from the bed aaeln and begin hla
reeaeleee tramp. Elinor Blggy remained
In tbe room with him all night, fearing
: the prisoner might attempt to do hlm
eelf bodily harm. v..
It was atated that Halaey will be
Indicted on at least It counts. Ru
mors came thick and fast as the day
grew older and ' Indlctmenta against
practically . erery person . mentioned as
V having been concerned In yeaterday'a
proceedlnqa were either prophesied ,or
announced aa being absolutely certain.
T ' 77 7 " teBogTapfce tmplloated.
One Indictment. It Is eald, will be
against Nellie Smith, confidential aten
" . ographer for Gerstel, Thomas Frlck.
attorneys for tbe Home Telephone com
pany. The grand Jury was not satisfied
with the evidence ene gave yesiernay.
. Burns and his assistants claim to have
positive evidence that ehe la the per
son who - took stenographic notes and
confidential communications between
the attorneys and officials of the Home
company and the supervisors. - It - Is
also claimed that she knows who took
the bribe money, how much It was and
where and by whom passed.
It Is understood at the district at-
tomey'e office that OereteU Thomas at
Frlck will be indicted. A true bill will
also be returned against a high official
of the United railroads. It was sig
nificantly stated by a member ef the
company that the high officials of the
Paclfto States Telephone-company and
United railroads, who were called be
fore the jury to give testimony are tbe
ones la the greatest danger. .
One of the many reports In circula
tion this morning Is to the effect that
the names of Bchmlts, Patrick and Cal-
' houn. president of the Jnlted Railroad
company, were thrown Into the Indict
ment hopper and that an Indictment
against Bchmlts will be Immediately
presented to the superior court for a
hearing In ouster proceedings.
It la said that all of tbe supervisors
. have agreed to resign. .
Francisco Grafters Got
i Bchmlts will retain office until he
names a new board approved by the
citizens, and Jthen steps wlU be taken
to remove bfm. - President Patrick Cal
houn and, -nigh officials of the telephone
companTea, and a score of other promt
nentmen, wlU be called upon to an
swer chargee -of bribery. :
Prosecutor Heney was at his desk
early and while ahowlng.the effects of
the great strain 'he has been under for
several . months, he was plainly elated
over the turn of events. He declined to
discuss the occurrences of Monday and
announced that from now on he must
decline to dismiss his future plana
r Deteotlvee Wetoa the upervtsora.
Astounding revelations are said to
have been-made before Monday's session
of the grand Jury, which did not end
until almost 1 o'clock this morning,
which' -created a moot profound sensae
tlon. -. ' " '
Few of the supervisors who are alleged
to have confessed or who are under sus
picion slept last night. It was freely
predicted this morning that some would
attempt to get away, but Burns and hla
corps of sleuths are maintaining a re-
( Continued on Page Four.)
ARCTIC EXPLORERS WRITE
Lefflingwell and Meikelsen of Anglo-American Polar Expedition
Send Messages to Portland Man Expect to Reach
Unknown Lands and Be. Gone Two Years.
II. ' A. Andres of .'this city received
two letters yesterday from Ernest Lef
flingwell and Elnar Meikelsen, leaders
of the Anglo-American polar expedition,
and they convey the flrat newa from
tbe party since they left - Alaska last
summer for the Arctic. The letters
were dated November tl and SS, re
speofvely, and have . been carried on
aledgee over the anow and - Ice for
hundreds of miles.
Mr. Andrea Is at present acting as as
sistant in the local weather bureau, tin
der Dl-trlct Forecaster E. A. Beala, and
knows Lieffllngwell and Meikelsen from
tht time he was with them as members
of the Baldwln-Zlegler expedition In
1901-1, vhen , they spent some oold
months together on Frans Josefs Land.
loe letters received yesterday were
written on the loe between the expedi
tion quarters, out 100 miles off Point
Barrow and mainland, where they
had been acl
Vd for delivery by the
Canadian nr
are c.j the t
, .4
4 polloe, whoee stamps
"ipes. - ;, ' - -
T rosea ta.
left Nome last fall
The iv
bound for .I'fi i
o pick up a band
n ' failed to land
of dog, but , the
there elne
to !. weather. They
ta return to the American
were fori d
aide of the straits, where the doge were
secured after ninth trouble That waa
the last neitrYfrom the party until the
arrival of th" letters yeaterday.
Explorer ' IenUnXwell , wrttee that
their vessel, the Ducheaae of Bedford,
Ilea frpien ftv d ice about 100 miles
off Point Barrow and that preparations
were almost completed to atart out on
ledges for he great -unknown region
north of the American continent where
It la believed Urge stretches of land
wlU be disouVcrtd. Heretofore It has
PORTLAND. OREGON. TUESDAY" EVENING, .MARCH
NEARLY fillLLIOli
SPENT III BUYIflG
CITY FRANCHISES
Details of Exposures ' Made bv
Bobdlers Show That Ruef and
Schmltt Cot' lion's ; Share
of Pelf- Astounding Story of
Municipal Corruption. ;
' Uoeraal Special tcrrtea.)
Saa Francisco, March 19. A story of
graft on a scale that Is almost beyond
belief Is revealed by the confessions of
guilty supervisors as the - result of
months of persistent work by Francis
J. Heney and bis wonderful assistant,
William J. Burna. It la shown that
over $1,000,000 has been paid In bribes
te Mayor Schmita and Ruef and hungry
supervisors 4a a little over a year. .
Men who were poor mechanics and
tradesmen have grown wealthy by
fraud. O reedy capitalists, while the
great city was a mass of smoking ruins
and a quarter of a million of Its people
homeless, bought from conscienceless
supervisors privileges worth untold
sums. , But Justloe Is yet ' to be done
and the ringleaders In the gigantic
frauds . will . wear stripes for thslr
crimes. ' ' ' .
The grand Jury, which began a special
seeslon yesterday morning at the re
quest of Heney, who had secured a de
lay of Ruefs trial for 'the purpose, did
not end until 1 . o'clock this morning.
At thta long session II supervisors
who had already signed affidavits of
-(Continued o Page Four. )
been supposed nothing existed there but
water and Ice.
The letters ' stated that the sledge
trip will be started early In .the spring
end Mr. Andree bellevee that they have
already set out with the dogs. Lef
flingwell writes that - indications all
point to the existence of a lsrge Island
not far from the mainland) He etates
the tldee Indicate this snd besldea the
natives have talked of lands on - the
other aide of the water. Ta explore
these regions Is the purpose of the ex
pedition and Judging from the letters
the party may not return for. two or
three years. ;
There are II men In the party and
they were all well at the time the let
ter waa written. Dr. Howe, physician
of the expedition, had experimented
with-vegetable foods, but found them
Insufficient and sojneat le again be
ing served among the men. It was
believed that by ' the uae of vegetable
foods only, the- danger of dlaeaee would
be greatly reduced.
Ilenoe tow Two Tears.
The weather was not very cold during
the early winter, 10 degrees below sero
being the coldest at night and at times
the mercury rose to It above during
the day. Bo much drift wood had been
carried In last aummer that there waa
4y amount to be had with little trou
ble. Explorer Lefflingwell explains that he
spent three weeks In getting over the
Ice from the vessel to Point Barrew
In order to let the world know that they
are -ell right,, and to secure additional
equipment fot tbe eledge trip. He says
It may be two yeare before they ere
heard from agtn unleaa he auoceeda In
sending out a eeuple of men next sum-
mi
From Left to Right AdolphB.
. Bi
am
Mayor Schmlts, and Jamea Gallagher, President or the Board
SCHMITLPIM
IQPGOILTY WITH
(in
Indicted Mayor With Bowed
Head Says He Is Not Guilty
' of Extortion r Charge- De
tective' j, Bums- Discovers but
. One Honest Official.' .: '
' (Joersal Special SefTtce.)
San ' Francisco, March ' Mayor
Bchmitx was plainly agitated when he
appeared In Judge Dunne's court this
morning to plead to one of the extor
tion Indictments. He was pale and
nervous, and, wore an expression of ap
prehension. He refused to maae
statement, ; saying that when he had a
statement to make he would do It In
court through his attorneya.
Schmlts entered a plea of not guilty.
When he waa asked to -plead the mayor
arose, and. with downcast eyes and
arms hanging looaely at his aide,, be
answered In a low, distinct voice:
"Not srullty." . " '." ""
After pleading he asked permission to
add to or change hla plea at any time.
This . was granted, and the case was
continued to April 8.'
Detective Burns stated this morning
that evidence of crookedness has - been
discovered In every department of the
municipal government. The only high
official agalnat whom there Is not a
particle of evidence and who Is being
pointed out as the one honest official
of the city, te the president of the board
of publlo works, George Duftey, who
was a member of the board of super
visors until a few months ago and who
waa given hla present position. It Is
said, ' In order to get mm out of the
way. '-.-,-.
FORAKER IS DEFIED BY
: PRESIDENT. ROOSEVELT
Appoints . Federal ; Judge for
Southern Ohio Without Con
sulting Senator. 7
(Jooroal Special Berries.)
Washington, D. C, March 1. Presi
dent Roosevelt defied Senator Foraker
and the Foraker-Dlck machine in Ohio
last night by deciding to appoint John
D. Batter of Columbua United States
Judge of the southern district of Ohio.
Thla action la regarded aa sure to in
tensify the feeling between the admin
istration and Senator Foraker, and aa a
deliberate invitation for the president's
friends In Ohio to align themselvVs be
hind Secretary-of -War Taft aa Ohio's
choice forhe presidency.
The friends of Foraker say It la an
open deflarx-l of the patronage rights
of the Ohio' Senator, of the stats or
ganisation and of the representatives
In congreaa They say that senators
Foraker and Dick and 11 member of
the house of representatlvea Indorsed
the-candldacr of former Judge J. J.
Adams of Zanesvllle, and In view of
konnnnnriii
dunnuwrui.
; -
the fact that Senator Foraker passed
the bill establishing ths nsw district,
his recommendation should have been
aocepted' by- tbe president. ;
There are 20 Republicans from Ohio
and no atatement waa made aa to why
the other nine members failed to folow
Foraker and Indorse Judge Adams' can
didacy. The understanding ta that
most of ' these nine members have de
cided' to 'cast their lot In the coming
struggle over the Ohio delegation with
the president and Secretary Taft
FAKE MINING CONCERN
: IS CALLED TO ACCOUNT
i
7. Mnenwl gperlsl aervtee.t . ' '
Denver. - CoL. March 19. The case
against the Lost Bullion Spanish Mines
company was called In court today for
trial. The defendants are charged with
unlawful uae of the malls to advertise
and sell worthless stock
--I r . .
19. 1907. SIXTEEN PAGES.
p 1 v
m
--pRlNCtPAtS-tNrSANFRANCISCO-ORAFT-OISCLOSURES-
gensMs 1 'ej-aj
fi l
Bpreckles, Who Furnished Funds (or
OREGON'S NEW
RAILROADS WILL
COST $24,000,000
O. R. & N. and Southern Pacific Will Complete All Contem
' : plated Construction, Including Route "Through Central Ore-'
; gon, Riparla-Lewiston Line, Elgin-Joseph Extension, Drain to
- Coos Bay, Pendleton to Pilot Rock and Road From Portland
to Sound Harrlman System to Try to Check Oould.
' 'Construction of railroads to cost !,
000,000 In Oregon, as announced a year
ago. will be carried forward to comple
tion. There has been no : ground for
statements to the contrary. The O. R.
ft N, Co. . will complete the Riparla
Lewiston llnv the Elgin-Joseph exten
sion and the branch from Pendleton to
Pilot Rock. Tbe Southern Pacific will
build the road from Drain to Coos bay
and the extension from Portland to the
aqund.
In addition to these great projects,
the Southern Pacific and the Oregon
Bliort Line will build the Harrlman line
through central Oregon, and the road
now under construction from Weed to
Klamath Falls - and - thence- to i Natron.
Sensational atatementa printed' to the
effect that the Harrlman railroad under
takings, announced with official sanc
tion months ago, and some of them now
under actual construction, would be
thrown to the ground because of hostile
legislation, appear to have had no foun
dation In official utlerancea from any
one authorised to make such startling
statements. i
ee Work Oo Forward.
J. P. O'Brien, general manager of
the Harrlman llnee In Oregon, wae di
rectly questioned today regarding these
mattera that are of paramount Impor
tance to all Oregon.. He eald: . -
"I have not atated that any new con
struction work would - bs" abandoned.
Construction work la new going for
ward and will be continued on the line
from Rlparia to Lewlaton. Tbe line
from Elgin to Joaeph la being built
and wlll. be completed. . The branch'
HARRIMAN'S ST. PAUL HAS
BOUGHT TACOMA EASTERN
Purchase of New Feeder From Coast Capi
talists Will Mean. That Proposed Trans
continental Wll Have Heavy Traffic
A sale of the Tacoma Eastern rail
road to the Chicago, Milwaukee tt St.
Paul Is practically closed. Officials of
the two- eomoanies are reticent and de
cline to confirm the report. " But It la
said on good authority that the deal
has been closed, and that the news will
be officially announced within a few
daya The price paid cannot be ascer
tained at this time.
For months It has been known that
the Tacoma Eastern was under option
to the St. Psul. , The road la owned
by the Ladd Tllton bank of Port
land and the St. Paul eV Tacoma Lum
ber vompeny of Tacoma. The larger
share Is held by the Portland concern,
and the president of the Tacoma East
ern railroad company Is Edward Cook
Ingham, cashier of the Ladd A Tllton
bank. The road le about (0 miles, long
and extends from Tacoma to Tllton, the
southern terminus, with a spur o Ash
ford, the gateway to Rainier nat!6aal
park, with which it la connected by a
government wagon road.
' Timber Zaad Sought.
The reasons for the St. Paul's pur
chase of this property have been obvi
ous to. every one familiar with the
road's plana to develop timber and
coal reaouroee of weetern Washington.
Thousands of acres of timber lands
tributary to the Nlaqunlly river, be
tween Telm and Lake Kapowaln, have
been purchased by the St. Paul peo
ple The. Tacoma Eastern skirts the
west Shore of Lake Kapowsfu, and
Yesterday
Was
PRICE. :. TWO .
mid rmrpd:
the Inquiry: Detective W. J. Burna,
of supervisors, wno Acted as pispurgmg Agent for Kner. . -
from Pendleton to Pilot Rock will be
built. The project of straightening the
main line between Portland and Trout,
dale will be carried' to completion.
What I said waa that the forces would
not be Increased on these projects, and
that extra expenaes In various matters
would be cut down." -.
Uae Into Central Oregon.
Asked - regarding - the central -Oregon
road, tbe Coos Bay line, and the exten
sion to the sound, he said:
- "Those projects are under direction
of the Southern Paclflo company's chief
engineer at Ban Francisco. There Is no
Indication that the work on them will
be abandoned."
""The Coos Bay line is now partly- con
structed for ths .first to miles, and
gangs of tunnel workers have been
drilling at various polnta. The eon
tract with the C. E. Loss company has
been canceled, but work will be con
tinued under a new contract. The ex-!
tension to the sound Is in charge of J. j
D. Farrell, and rlghta of way are now
being purchased both In Washington
and on the peninsula between Portland
and the Vanoouver bridge. The central
Oregon road, on which more than 100
serveyors have been at work for the last
eight months. Is now being finally lo
cated, and map are being filed with tbe
various authorities of the railroad com
pany and the government.
The railroad companies In Oregon
have no ground for complaint regard
ing hostile legislation, and It la appar
ent that they cannot seriously under-
(Continued en Page Two.)
spurs into the timber could be readily
h11t that would furnish the St Paul
road with imraensie lumber - tonnage.
St. Paul Interests have also made
large purchases of coal lands on t.ie
upper reachej ef the Co wilt a river, to
which an extension can be easily built
from the southern terminus of the Ta
coma Eastern. Possession of this road
by the St. Paul waa aim net a paramount
necessity In . the development ef Its
greet scheme of creating enough ton
nage from the very beginning of Ite
operation to pay expenees of the road's
Pacific coast extension. .
harp score of Kanimaa.
Construction of the Chicago, Milwau
kee A St. Paul railroad from Everts,
South Dakota, te the Pacific coast has
been shown beyond question to be a
direct result of the light between Hill
end Harrlman companies on -the north
bank of the Columbia and the euccese
achieved there by the Hill party. The
Harrlman . party la projecting the St
Paul westward practically paralleling
the Northern Paclflo in revenge aa well
as to meet the requirements of a rap
Idly developing country.
It is now practically' certain that the
St Paul road will run its trains Into
Portland over the tracks of the South
ern Pacific's Puget sound extension. The
Pt Paul touches first. at To coma. From
that point Un train service will be
operated south to Portland and north
to 8eettla. It will ue the ancouver
bridge of the HUl ro: ri-r the Co
Journal Circulation
29,128
CENTS.
ew yams i vrwa
, Who Secured the Evldenoet i
RAILROAD BOuDS
nOT GILT-EDGED,
SAYS CORTELYOU
Important Change In Financial
Policy About Decided Upon
7 by , Government Will No
-' Longer. Accept Same Security
XVa Formerly Accepted "ifi7 -
(Joe real Sperlal errlc.
Washington, March It. Information
from a high source says the administra
tion la about to decide upon a etriklng
v
i I
onange in me nnanciai policy. i ne ac
tion, If token. In one particular will
reverse former Secretary of the Trees
ury Shaw's policy and may eliminate ' -railroad
securities from the position
they now occupy as gilt-edged. ' - '
That foreign capital is heavily , in
veoted gives evidence of the extreme -sensltlvenees
of the market, and the
announcement of active hostility might
precipitate a serious flurry.
It is understood that Cortelyou's
views as to acceptable securities are '
even . more pronounced than those of
the president. Shaw, in his efforts to
establish aa elastio currency, inter
preted -the law In favor of high-grade
railroad bonds and permitted banks to 1
plaee with the treasury railroad . and
other ' bonds to the amount ef the In
creased circulation desired, conditioner!
upon a basis of government bonda
It Is said that Cortelyou considers
this ' method unsatisfactory and - noc
conducive to stability. About tll.OOe.- -000
in railroad bonds are now held as
securities for publla deposits. .
Xaay Binaaom Afloat. -:
There have been varloua rumors con
cerning the policy which would govern
Secretary of the Treasury Cortelyou
In his new office. Just before tbe
Wall ' street panlo last - week a local
paper - said that he would not rush to
the relief of Wall street whenever there '
(Continued on Page Two.)
lumbia river and come through the
peninsula tunnel of the Harrlman lines
to the steel bridge, which it will use
In common with the Harrlman lines.
. Fend Cannot Mai XV
This bridge will be reconstructed and
donble-tracked to produce the Immense
ly Increased facilities that will be de
manded by the added . traf flo of the
Southern Pacific's extenelon to Puget
sound and the 8t Paul's entrance into
Portland. The Harrlman tunnel through
the peninsula will be commenced at
once. AH preparatlona have been made
for Its construction and work will have
to be rushed In order to get tt finished
by the time the road Is built Tbe en
gineers are measuring their work to
fit Into the progress made by the
builders of the Columbia river bridge
at Vancouver...
Whether or not the Rockefeller In
terests, which control the St Paul road,
carry out their reported threat to throw
Harrlman down financially, that road s
Pacific coast extension will be carried
forward with all possible baste, tt la
believed, for ehould the present dicta
tors of Union Paclflo lose control of
that property or of the Southern Pa
cific the St Paula paclflo coast ex
tension would Immediately become ef
supreme Importance to the Rockefeller
railroad clique, known ss the Harrlman
party. .
Assault en Mm Territory.
"Anybody who reckons that thte ft.
Paul extension Is anything else than a
Harrlman proposition and a conception
of Harrlman genius makes a mum1'-. '
aaya the Well Street Journal. .
coast extension of the St. I'm ! I .
suit of Harrtman'e fulluf t . .
possession of the Northern I
that attempt, fiillnel-r ' -
He-urltlcS merxer f i
fill, the St. Paul
(Con'tr-'J' ! '