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About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (Dec. 8, 1909)
EVENING EDITION EVENING EDITIO!) "T&iSMffirasanzas . t-: hum it : t Mi. Rain or snow; warmer tonight nin Thurs ilay. 1 Calling cards, wed ding stationery, com mercial stationery and Job printing to order at the East Oregonian- t-) V4 . . "WV r ' J ki Tf 1 A COUNTY OFFICIAL PAPER. VOL. 22. VI T Y OFF WIS f. PVFV PENDLETON, OHWJON, WKDNKSDAV, DJX'KMIJKIJ K. I ?. NO. 7 231 El xe4" VU St? M'VEAGH RAPS CUSTOM HOUSE In Annual Report Secretary of Treasury Discusses Recent Sugar Frauds. iti.mcs n politicians ARK LARGELY RESPONSIBLE Dlaimx Also Returning American TWTiHciv-Wni Continue In IYr ent InvrxtlgHthm.. Recommends Seizing of Bonds ,r oi iiriratcM to Meet Dnfkiitu Says Government IlM Not Two Pit Cc-nt Borrow ing Powrr .Many Olli,- Questions. Washington, Dee. h in vigorous . language, r ri 11KIII1 .MacVeugll. sec retary of the treasury, discusses ln his annual report mint to congress today the. recently exposed frauds at the sugar trUMt mid other cuHtoms house candala. Speaking of the "alarming" reve lations of the condition of the cus tom service In New York, he says that the frauds of the Anierlcun Su gar Refining company showed "a long-continuing system of corrup tion." While they -were perhaps the most important Instances they were "symptoms of u diseased condition, not universal, by any means, but al most general." Enough facts have been brought to light, he declares, to afford a basis for reliablliatlon and numerous prosecutions have been made and projected As for the causes of the denioral- ! ization, the secretary regards as most j deleterious "the influence of local politics and pid tlelans," which "has ' promoted that laxity and law tone '. which prepare and furnish an Inviting: soil for dishonesty and fraud. ' "Unless the customs service pan be released from the payment of pol.tl- , cal debts and exactions," he contln- lies, "and from hieeting the supposed exigencies of political organizations, big and little, it will be Impossible I" have an honest service for any length of time. "Any considerable share of the present cost of their demoralization to the public revenues, to the effi eiency of the service, anil to public morality. Is a strenuous amount to pay In mere liquidation of the small debts of political leaders." Then he also blames returning American travelers for not only be ing wllling'to defraud the govern-' ment but to corrupt Its employes and Importers to evade duties through un- ; dervalu itioiiH and corrupt combina tions. The M-cretarv says that the work of carrying on the revelations, the prosecutions and the reorganization, I will be continued without pause'andi "Will have, i's it has had. the effective i co-operation of the department or Justice" Secretary MacVcagh makes no recommendation on banking and cur rency reform except to urge that the change, when it comes, must be fun damentally right and freed from po litical partnership, special interest or pride of opinion. Mast Sell I'.oihIh. In pointing out the condition of the treasury, which, he says, has not nt present, cither 111 the batiks or In its vaults, materially more than a work ing balance, the sei re'ary declares that It will become necessary In or der to meet deficits, to sell either bonds or certificates of Indebtedness. Th.i ordinary receipts for the cur rent fiscal year of HMO he estimates nt JO-IS, Ollil. 0 0 1 and the disburse- i meiits at $fiS2.07i.620 which leaves lj deficit in ordinary receipts of $34,- j 07&,-n. Add to this the I'anama ca- : nal and public debt disbursements' and the deficit Is $73,075,020. J l'or the fiscal year 1911 the ordi-j nary appropriations are estimated nt ten: Otis. RT'J.fil. including the sec retary of the navy's estimate of $12. - sur- I Ml. 122 for new warships, n plus in ordinary receipts of $35,931, :i 2 7.4 !. ' When the Panama canal es timates for 1911 are added the sur plus will be turned into a deficit of $12.132,1!7.21. The amount already expended upon the canal. $!l7.ln,.',ti4'J, has been ta ken out of the general fund of the treasury and there Is a continual drain upon the geiifral revenues for this work. "It is desirable." says the secretary, "that the settlement of this account should be at hast begun; and thai the expressed policy of the government to pay the cost of the ca nal from the. proceeds of bonds in or der that the next generation or two shall share with this In the cost of the great enterprise, should be se cured nnd established." The 2 Per Cent Interest. Admitting that sales at par of Uni ted suites bonds bearing only two per cent Interest have been forced heretofore because It was necessary for national banks to have them In order to take out circulation upon them. Secretary MacVcagh says bluntly: . "It Is, In my Judgment, high time for the government to realize that It does not have a two per cent borrow ing power and never had. No gov ernment, however rich, has a two per cent borrowing power." No Investor, he points out, would pay $ino for a bond bearing only two per cent interest, and the only rea son that the government had been able to dispose of its obligations at this rate Is that the bunks have been compelled to take them In order to obtain tile necessary security upon which to Issue their circulation. He cause of competition the banks paid vaiylng prices above pnr, and hold al most all of the 2 per cent outstand ing. Now the market value s so de pressed that the secretary estimates that the banks have lost $25,000,000 as a result of their speculation, and, If they were to attempt to dispose of them, would lose much more. The result is against the retirement of cir culation and In favor of the mainten ance of , a currency rigidity which is unfortunate. Recognizing the diffi culty of selling two per cent's at par, congress authorized a further Issue of bonds to bear three per cent In terest to cover the cost of the Pana ma canal. But existing law, while taxing circulation Issued on two per i cent bonds only one half of one per I cent, taxes circulation Issued on bends bearing u higher rate of interest one per cent. Keeonuivends lllgticr HoimIm. So Secretary MacVeagr. recom mends additional legislation to secure a parity between those bonds now out standing and those to be issued. The effect would be to leave to the banks exactly the same amount of Interest they are now receiving from the gov ernment. For Instance, the one-half of one per cent tax which they are now paying for circulation on two r cent bonds leaves them one andjjis good as that offered by Charles p. one-half per cent profit. The secre- j Sweeney of Spokane, who was trying tary proposes that if two and one- t secure ten claims. Burbldge later half per cent bonds be authorized j , t( t Winchell for $1R.0. Uur they should pay a tax of one per cent upie Is one of the best witnesses yet on circulation issued upon mem, mu l if three per cent bonds be issued, they I should pay a tux of on.; and one half ! per cent. In each case the returns to ! the banks would be the same but to ("""ontinued on pK" K.l Ml SLEEPLESS NGIL MIMilt WOl LI) XOT ' TIM'ST AVI I.I.S-I'AIK.O Willi Haul Carued Wealth In Iron Safe, Alaska Miiiir tJuards It Troni Seattle to San I Vaiicisco Stays Co All Mylit Willi TrenMiie. ' San I'ranclsco. Hec. x. His nil night vigil nt the side of a small iron i safe containing $ I ioi.immi in Alaskan gold ended, Samuel Hogan, an Alas ! kan miner, today transferred his u.".:;l. i. !. !' ( 1 St,ite. l?-. an'! rit rid tj th A-.T nau: hue! to p - t - the sleep which he had denied him- self while the treasure was in his pos session. Hogan and his w'fe left Se attle for San Francisco several days ago. They delivered the safe con- J taining the gold into the keeping of , the Vells-Fargov Kxpress company at j I Portland. However, when he saw ! the nreeions - i fe piled on the IrinU w.lh other San Francisco assign ments .Hogan became alarmed and ! immediately relieved the express coin- pany of the responsibility. He se- cured a drawing room on the train I hound lor this city and throughout 1 the trip guarded the treasure. Arriv j Ing ton late last evening to deposit j the money, he had the safe removed I to a room of the hotel and all night long rat on guard. Fairly today he i accompanied the safe to the mint in j an express wagon. COFFKOIH IS AITER I.NGI.ISH K. II n its New Y ok. Dec. S Whe fist il l's ill I promoter. James Cof froth, arriV' ! London he will Incite a campaign Itlvit has for its object the matching I of England's top Hoteliers in at least i'"'1 livisions with American ciiam- plons. according to a report in Cir culation today. Owen Moral! ami -ah W'olgast. ('of froth believes would make a wonderfully attractive card for San Francisco fans Freddie Welsh and Hattling Nelson for an other headllner and Jem Drlscoll and A be Attcl for n third, completes the list of the San Francisco promoter. REGIMENTS BATTLE WHILE ON REVIEW Paris soldiers Dec. were 8 Scores of Moroccan killed early today ilur- .nir the military tan. according to r. vicw by the sul dispatches received from Fez. warring d Two regiments from the sert tribes. the message slated, savagely attacked one another directly ln front of the sultan's re viewing stand. King Leopold Aery 111. Urussels, Dec. 8. In spite of an of ficial bulletin Issued early today slating, that King lipoid's enndl t'o'n was Improved, It Is believed the nge.l monarch is dying. Leopold ii suffering from n paralytic attack. ran BOUGHT CLAIMS Spokann Mining Man Fur nished Testimony Which Sheds Light on Deals. mix m:polis .max was mkiic.m op opkrytion 1'retlerii'k llorbldge of Sjmkanc Proves Our of ' Iti-M WlUicssrn Yet CIIhI lo Stand Tri to lUock Oaggviilirini Ieal Iht'ausc lie Co u lit Make Minr- on Another Was uo Combination at Time of Kntry. Spokane, I)-c. 8. The government Inquiry Into the Cunningham coal claims developed a fact today of some Interest which leads to the belief that the Guggenhelms have been buying up coal claims, operating through H. V. Winchell, of Minneapolis, who has purchased six claims, taking the title in his own name, and others. Frederick Rurbidge, a Spokane mining man and cntryman on the Cunningham proposition, said this morning he had used his efforts to 'Mock the (lUgghcnheim deal In 1907 because the price agreed on was not called. He is not In the deal at pres ent, and made a clean breast concern ing the efforts to consolidate the iliilins. form a company, and the later negotiations with the (Juggellheill;!-. He denied any combination as the time oT entry -but admitted he i would come some day. knew it i max slippkr am) . ii:owxi-:i i c;i titch Neva.1 ing in a smashed f'itv. Calif., lie sutler the head S. Im partially ill water accumulated from rains, the body of Meorge Tallon, n lu'slncss is suppo .-de walk l"W flow man, was found today. li ed he fell on the slippery and was drowned in a shal of ditch water. ; L MACIIIM-: WKlit KS hocsi; i.iriti(i skvi-: Ynllli IMriu v. was b;i p( rsni:. th. v v . cpi,-Ki. ed uinl' islown. Ohio. Dec. . - Willie. ,i I'.uher of the strikebreaker. I!v Injured and seven o'liei hurt wh.-n ihe house In 'ieh re hviiiH v. .i- .-battered 1 . ' n of an inf.'rn: i machin" ; !:'. -r th.' foundation early lodav. Th in: Is nlleiie :tl th Two t he t N' ro :'!erii"i:t T'n nljolnhig hous- d. oi' : a stiik" company. 'Tnt rs were badlv daniagi M SHOT DITIM. SIX I) A A' BIKE 15 CF, N i York .Dec. ' 'y i.iiycle race j : .a tors were neurl; when "Tug" Brow, h p during a free for ing from the crowd -During the six r lay. I i'i. mh-c- ' '.lie i - !i. .'. s. . n ihe all fight result loi 'inditing l'.ert Keyes, a lightweight pugilist In a sent box. Keyes was arrested on suspicion "f firing the shot, but he denies his guilt. Manuel Friend ley h. en transacting bus of Helix, has iness here today. v. hat m gin nave lu en a scrum wrick occurred just west of t'oe. the n. w st 'tion' at Horseshoe Curve. 12 in lcs west of Pendleton, about -t:"a this morning. As it was, the two rear t:ii's on p:i'.i'iivr train N '. I, wcv. thrown Iroin' th - track by n broken rail an I tin- pas-eii'.;ers tumbled from th-ir berth'- Fortunately no one was so much as injured, even slightly. This train, known as the i'ortl.iini . xpress and made up at Salt Luke, p.i.s.e.l through i'eiuli.'toii ibis morn ing ill :!:4T (Hi- hili hour later 't was in the ditch, hng a part cipaiit in one of the many w recks which have incurred en the O, R it N. A few hours before the special car of General Superintendent M. J. Buckley nnd conialn ng besides thit iftloal. Superintendent AVHiam Hoi Ions, passed over the spot where the wreck occurred. Had their train been the one Flated for the mishap; the officials themselves would have been mixed up In It. for they were in the last car on the train. Assistant Superintendent Richard Buckley was In Pendleton when the accident occurred nnd together with lto:idmaster Jurgens hastened to the un 8T HfiRQFQHnr Rimur kbliLMr ill MNIIIil II Mill nilllKI vi m w m mm -mmr m -mm s w iv mmm mw mm j n rp o n p s nrn tdriii vnirrm li it it i i t 1 1 " i r hi i 1 1 i i 1 1 1 tii rw mm r i r mcmi, Mi.lIIUIIIII.Uil.U lllltllD I I I ' 1 1 I I U ! ON THE BRILL Occupies Stand lor Five vHours in Hamilton Embez zlement Trial. 1 sT.vrii wil l, cLosi-: i ITS CASK TONK.HT j Ooxcroor anil Attorneys Have Match of Vlt Hay Insists That Slurring Ronmrk of Attorney General Caus ed Hamilton to Sicak Counsel for Rcfiiulnnt Will Show Tliat State Has Xoi Proved KmlM-y.zlomont fflyrnpia, Wash., Dee. 8. Five hours yesterday Governor M. K. Hay, on the witness stand at the trial of former Adjutant General Ortis Ham ilton, accused of embezzling a large sum- from the state military funds, was subjected to a severe cross ex amination by the counsel for the de fense. At no time were the proceed ings dull. The attorneys were deter mined to ensnare the governor, but he was equally determined. He said that it was a "slurring re mark" made by Attorney General Hell ln referring to Hazel Moore, Hamilton's alleged affinity, that caus ed Hamilton to give his alleged con fession. Governor -Hay said that Hamilton maintained his composure until Hell said that the girl had "throw ii oim over," and then Hamil ton said he would tell the whole story if they would leave her out of it. It was announced by W. F. Ma gill, assistant attorney general, that he expected to close for the state to night. On the stand today Frank M. Dallam, secretary to Governor Hay, o. A. Free, armorer for the national guard. Mary Melntyre, former stenog rapher. for Hamilton. As soon as the state vi'.?.'.l, 'Hamilton's counsel will move for a non suit on the theory that the state has not established a larceny by embezzlement case, but one of obtaining money under false pretenses. Hamilton, while calm and collected in court' is reoorted by oth- I er prisoners to break' down and cry bitterly every night. : i ii:i:.m. i kh;hti i lla- St'M.DC.I) IX KXPI.OSIOX j Santa Fe.. Dec. 8. Fireman H. H. i Kmkaid Is in a local hospital to j .I iy trip h; fully scalded as the result j of aii explosion of a Denver & Rio I'm it ! I.'i ini'live. Klnkaid was i 1 1 . ii. the ci li wh.-n the boiler 'rarst The man was lit. rally cooked hei'cT'e rescu-'d. 'Ml engine was blown t" pieces SiUil.DEX CHARGER WITH 1ST DEGREE GRAND LARCEXY New York., Dec. S. The grand jury this afternoon returned an Ind.rtment (h;ii?imr first degree grand larceny against . George Preston Sheldon, the d po . I president of the Phoenix In-si.r.i".- e impai'v. The indictment was banded d. wn by Judge Foster in' I the general sessions of the court. : , Alexander AVins n Los Angeles. ! Los Angeles. Dec. S. Early returns today indicate that Mayor George Alexander has been re-elected mayor of Los' Angeles over" the republican candidate. George Smith. ''lie ill a spec iii tni'.i) m-ide up here aa.' sevsistMi ef a,i engine and box ' 't'"- Greek sc. ten hands were also pi. Ucil u;i .-tlong the road to assist in C :Mng ihi train ha. k on the track ;"i : Hie i ii.i c'.'.ired. I-i i l iniiiiii u-.i ,-. No. I " w .is heid '' Vol n ii'itil ti-e wreck w is cleaved, wliii.' I.,,-, night's Nos. f. and 11. the i n. i r in the fiisi mail, were held !"!' unt 1 1:.'!0. They were both 12 hour-i late and therefore went out of here a.-, the first and second sec tion; of No. 7. They were held up ':..- n Kair.cla and Glover hy the breaking of the side rod:; on the lo coinoiiv,. of a fr -ight train. The third section ef No. 7 arrived in Pen.tlctoti nhout i! o'clock, be.ng ;i train load , f soldi, rs en route to the barracks at ' Vancouver. Washington. The regular No. 7. due here at 12:1." is running 11 h ours late, and will probably be l iter by the time this city is reached. The wrecked train was placed on the rails and started west about 1:30 this afternoon, while train No. 10, which was held at Nol.n. pulled into the I H-al depot a few minutes before ; o'clock. TRUX.MF.X IV i:ST WILL DFMAXI) IX RKASi; New- York. Dee. . Fifth rice President Murdock of the Railway Trainmen's Union, declared today there Is little probability of the strike that has paralyzed freight move ments In the northwest, extending to the Atlantic seaboard. He stated, however, that members of his or ganization, conductors and other em ployes on 30 eastern railroads, on January 3, would demand a wage increase, and a concession regarding thp number o't working hours The demand will be made by the men as employes of the Individual roads and not as members of an organization. XOTKl) XKWSPAPKR MAX' PASSES AAVAY Cincinnati, Pec. 8. Lemuel T. At wood. financial head of the Scrlpps McRae league of newspapers, died at his home here last night after an Ill ness of six months. He Is survived ty a widow and five sons. The fu neral will be held Friday. KLKCTRIC LIGHT SIGNALS WAR X ED CTSTOMS AVEIGHERS New York, Dec. 8. Harry A'an Duzen. formerly assistant government weigher at the sugar docks in Brooklyn yesterday testified that an elaborate system of electric ligbt s'g nals was used to warn the weighers when government officials were ap proaching. Alexander McGilvey, an other government weigher, showed an apparent collusion between the customs house and trust headquar ters. HERMIT ROOSEVELT BAGS GAME IN THE Jt XGLES Nairobi, Dec. 8. Kermit Roose velt arrived here today after several successful weeks in the forest. Two bull bongoe, considered the rare? specimen of African antelope. two cows and other trophies, fell to lUs gun. The young hunter is in excellent health and after a few hours 'rcsi set out for Mombasa, where he w',11 hunt sable. DEFEATED GENERAL DOOMED TO DEATH A ASOl FZ TRIED VXD CON DEMN' F.D BY COlTvT MARTIAL Zelaya AVil! Add Another to His List j or Bloody Deeds Insurgents Won I lccisic Victory and Arc Following I it up. Mexico City. Dec. S. An uncon firmed dispatch from Mangua, Nicara gua, says th: t General Vansipiez was tried by court martial today and con demned to death because he was de flated by the insurgents in yester- ! day' ha;.;., in ar n.i.i.a. New Oi'.cciiis. Do.. S. Dispatches today from Corinto confirmed yester j day's cabled reports of a decisive In I surgent victory over Zelaya's troops I under the command of General ATas j Qui z near Rama. The insurgents, ! to, '.ay's message stated, are pushing I to the utmost their advantage gained j by fierce fighting and are progress ; ing on the outskirts of the Zclayan ' army's position. Between 100 and 300 nu n fell In yesterday's engage j mcnt. The first report of a victory for V.elaya was a false rumor of the aim- battle. MEXICO TO COXI ER I I II r. s. to sirrri.E emuroglio Mexico 1 "it v, Dec. S. Henrique Creel, the former Mexican ambassa dor to Washington, now governor of Chihatihau. is today en route to iishington to represent Mexico ill he conference that will have for its object the immediate settlement of N enraguan emhroglio. Creel will c traveling representative of Presi ent D'i'.K. in Washington, where he will confer with Charles E. Mageon. riner irov. rnor of Cuba, wh.i will be named as American comm'ssioner. a -. or.lii ig to the gencriil belief here. IIOX'DI'RAS PROCLAIMS GEXERAL MARTIAL LAW Wi'shingt.-n. Dec. S Fear ng an attempt on the part of form, r Pre - j dent Manuel Bonilla to regain power. I the lloiivluiail government has pro j I i 'mod mart;.'! law throughout the country, according to Colon advice.-' today Bonilla was dispaccd by 'Pr.se.lent Davilla. with the aid of ! i'r 'sid. nt Z.-laya of Nicaragua. I PERRINGER. IT IS I SAID, DID XOT "SIT IX." ! One of numerous articles published In the Journal relntive to the swind- t'.iiT eperauens oi uie narvey iatc iv in- w as . Ftory to the effect that George Porringer of Pendleton h id been fleeced by them in n poker game. The story emanated original ly from members of the band, but re cent Investigation has shown It to bt untrue It is stated that Mr. Per ringer has never "sat In" with any of the Harvey Dale gang at the green ta ble. Port hind Journal. li PERISH Largest Gas Tank in World Explodes and Twenty-seven' Are Killed. MEX DISAPPEAR IN GREAT MASS OF FLAMES l-ak in New Gasometer Causes Dis aster Firemen Ireveiitel by In tense Flames From Sating Burning Men Forty Men Dangerously In. jiiM-d Fire Spread AVIth Great Itapldlty Little Hope of Finding Missing Men. Hamburg, Dec. 8. The explosion of two gas tanks in the so-called "Kleines Grasbrook" on the Elbe front yesterday afternoon was followed by an extensive fire and the Io9s of many lives. The explosion was due to a leak In a new gasometer. Escaping gaa ent ered the retort house, where it came In contact with the fires, causing a terrible explosion. A large number of workmen were engaged in rebuilding and enlarging the plant. Twenty-five men who were working ntar the gasometer, disappeared ln a mass of flames which shot uo to a. j great height. Firemen appeared quick- ly but were unable to approach in .large force because of the isolated lt- uation of the establishment. Late last night ten men were report, ed dead and 17 missing. It is almost 'certain that all these are dead. For jt" men were dangerously injured, ser. (eral perhaps fatally. ( The fire spread rapidly and threat jened the old gasometer, containing oS.noo cubic meters. So intense was the heat and so dangerous their po sition that the firemen were compelled to withdraw. A terrific explosion soon ocenred, and the tower became & mass of flames which leaped hundred of feet in the air. sending fragments of glowing coke far over the city and harbor. After strenuous efforts the fire was put under control and rescue work begun. Little hope of finding the be dies of the missing is held out as they undoubtedly hnve been inciner ated. The new gasometer which exploded was the largest in the world, having a capacity of 200. 000 cubic meters. !The tity -appropriated 14.000,000 'marks ( $3.S'n.rt00 ) for Its construe ' tion. ::. cooks op.sera atioxs arrive in denmark Copenhagen. Dec. S. The north polar observations of Dr. Frederick A. Cook reached here today aboard the steamer United States. Extra ordinary precautions were taken to make sure that the ling-heralded data were delivered safe to the university authorities. As soon as the XTnlted Stites was tied up at th- pier, the iron box containing the explorei's re port and diaries, in which the origi nal entries were made, wore brought ashore. The box was closely follow ed by Walter Lonsdale, Dr. Cook's secretary, win has stood guard over the contents since they left the halids of the explorer. LAUNCH PLANS FOR PANAMA-PACIFIC FAIR San Francisco, Dec. S. Backed by practically every business and profes sional man in the city, aid-d by every organization, and gu.irante.-d th- ne cessary financial support, promoters of the proposed Panama -Pacific ex position will begin inimed ately to raise the necessary funds for h dding a big fair lure in 1S1.'. to co::i-:iemo-rate the opening ef the Panama ca nal. The proposition was mad.' by Homer S. King, president of the Bank of Calif.'in a. an 1 the IVcifio O.-ean F.xpositi 'ii company was form ed at a nn . t ug of u'hi mcvcl-.anis m-d in a few miiict -s plans we;-. iii''n r way. No subscript'. ms h.iV" !n-i n j taken although several merchants I have volunteer.! to contribute funds. Bicycle Riders A I ion d of Record. New York. Dee. s The nin I. a ers of the sx day b'cye'e ia.-. Madison Snu.ife Garden are n ' miles ahead of the record nia,".. in tv- the last year race. The distan. eled up to this time is 11 2 rsi eight laps. The lead n- ;.am McFarhind and Ciiirk. I'ormer lYvdcnt, I" Field. New Orleans. Dec 8 Dr. Carde na, former president of Nicaragua, whose administration was over;hiown by Zciaya In 1 S93. has taken the field against the dictator and Is heading an expedition from Costa RU-o .nto Nicaragua, according today's advices