"" 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' ! '