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_ .X^ *?*<^*2^g*mM y EW .YORK. SATURDAY. JANUARY H. 1905 -SIXTEEN PAGES.-. T ..-?«- A i£W PRICE THREE CEyTS
1 JurtJf* "WEKatn J. Gayner; 2 Controller Edward M Orout; 8 B I* Duke 4 William V Pott
BEGIN "CADET" CRUSADE
BASKERS GET EFIDEXCE.
Messrs. Scligman, Schiff and Lew
isohn — Eighteen Prisoners.
leaao N. Seli&raan, the banker, announced
lwt evening that he, Jacob H. Schiff. Adolph
l^eW.sohn. Mr. Warburg and a few others had
planned a crusade against the "cadet" system
end the East fide social evil.
♦The matter was first called to my attention
tr Magistrate Cornell, who was presiding at the
time. 1 think, in Eaeex Market court." said Mr.
6aiipn»n la*t night. "He told me that the con
dltiorJ 1 en the East Side were most deplorable.
tSisacefuL He spoke in particular detail of the
vie* sr.a crime existing there in ruination of
"MBpiFTrat" Cornell told me that youthful
and Innocent victims were lured from their
tone* to der.s of vice by an organized league of
reprobates who live on the shameful gains of
the flrlF in the lives they were forced to lead
by those dastardly creatures who had ruined
them. I brought the matter to the attention of
i few ir.thr.ate friends, including Jacob H.
SehlfT, Adolph LewiFohn. Mr. "Warburg, the
tanker, of No. f.2 Willlam-st., and one or two
ether* whose names I do not at the moment re
calL There was pome discussion, and we lis
tfned to the recital of Borne of the details of the
.terrible condition represented to us. We de
c:fie3 to fict, to act at once, and to ect effect
• rirft of ell, we decided to employ an able
young lawyer, versed in the conditions as they
exist on the East Side, the vicinity of Four
t«ectii-Ft. end Fourth-aye. in particular, and to
bring about all the arrests and convictions we
could. We decided to strike at the heart of this
dlabo::oal band of men. who flaunted their
crimes against innocent girlhood shamelessly.
• Tes, i have heard of the arrests made to-day,
•MA that the prisoners are to be arraigned in
■■rt to-morrow. I hope sincerely, and I am
rot* th*t ell good citizens desire thai this
Aanttal circle of men who prey upon virtuous
venuoeod will be punished and scattered. and
iiot*'Jered ever again to find a place or a foot-
a oar city.
flitw be particular in recording my apprecia
te! cf the man to whom the chief credit for
Hit norernent should be given. He has come
tolly up to our expectations. He is Simon C.
Xoet, an ex -Assistant Corporation Counsel, well
fined for his laborious and trying task. He has
easißunlcated to me his progress from time to
toe, eafl I trust will be successful In bringing
all who have profited In the degradation of these
grit to Justice. I am inclined to think, and I
dpctrejy hope, these arrests will strike terror
■■» the racks of all these miscreants and etop
their shameful system.
"The failure of the District Attorney's office
to put an end to the evil after a movement in
that direction once was started was due, I be
«*■*. not so much to an unwillingness to prose
cute as to a lack of funds, which made it ex
tremely difficult, perhaps Impossible, to carry on
the work "
Mr- Seli^man was asked if he wished to dis
cuss the attitude of the police on the evil he was
•*fane to eradicate.
"I do not care to «ay anything about that—
*« at this time." he said:
The crusade was begun yesterday in the York-
Police. Court, when forty warrants for the
wteit of men and women were issued by Ma*:is
tst« Barlow in the morning. Eighteen prison
•», captured on these warrants, were arraigned
■ the afternoon. All were charged with va
•"acy. The prosecutors say they have evl
•*<* which -v-111 send them to the Island for the
•trejiie term of six months, the heaviest pun
***«Jt on that charge.
Mr. Noot. whose office is at No. 320 Broad
ly, applied for the warrants and prosecuted
The wealthy crusaders had employed half a
•■*n private detectives to get evidence. These
-etectlves have been at work, and yesterday
*?rung their surprise on those with whom they
**4 been associating and watching In East Side
r^orts, which have long been known to be the
•Aunt* of "cadets'" and procurers.
tor the present, the plan is to arrest these
V»a w*' arral en them on charges of vagrancy
"aatave them fent to the Island for the limit
%•«?■? rr - or - ; -'- - When their term is ended they
•J ** watched, and if they return to their old
g*— they will again be sent back to the Isl
2l an<l the process can be repeated indefi
rf-T- This method, it .is thought, will go a
"cl* ***? toward breaking up the gangs of
thtV' lf * obtai:sed a mass of evidence against
ii * r **' uemerß of resorts mostly In the neigh
thJ™ 0 " O f Pourtecnth-st. and Second-aye.,
QuJl °£ '•'•- private detectives. William A.
tfte- Jose Ph J. Mannlo and Perkins Searlcs,
to tv Rtlln X the forty warrants, showed them
.■(J.-: Po!lce of the Fifth-**- station, who fur
the it. a riatr ° ! wa 00 to carry the prisoners to
j r k^T Ucn - Most of the prisoners were taken
Tlje,,.' Ot h*-rs who heard of the arrests fled.
»£» k *' IU be hunted to-day. The prisoners
.^•■a in $500 bail for examination to-day.
•jjJSl ° the "*' notorious of th« depraved
- jns «■* jj aye been after is a follower of the
in X r mr> " "* M Mr - Naot "Whan we went to
IrjJ I'™1 '™ h" had gone to Philadelphia to see a
*•» tlS*'' *" i >' ln * his railroad fare and expenses
a *'"■ lr ••:• he had forced from one of those
Vlit'JL Ye BOm * evidence Involving one or two
fcilee ' but we do not want to criticise the
ittul 1 that is not the object of our activity.
V,,! IT * " •"■ thl " nat; bM>n »«>tag on under
hlti« • , the Police, and they knew about ii
Vh." ,*■' ly in locality I have referred to.
been able to get our evidence in ten
er i^' taD<lt aD<l the police could have done the same
McDermott and Detective Waeser
• ••wir .!??' they were called into the case, gave
"Tt*Z. a"'* suggestion possible.
«« despicable men had an organization in
Continued on third page.
«,^ E •ABOARD FLORIDA LIMITED
h**t» \Zt t *? mm * z '- «nd Quickest Florida train.
& h cIaST , iO - rk ***** at U--& n »> on Two other
*««» rSwP^f for Plneaurst. Caroden and
r »t>rt*. Omct. 11*3 Broadway.— Advt.
ADDICKS MAN CHOSEN.
Delaware Deadlock Broken by Elec
tion of Speaker of House.
[BY TELEdRJLFH TO THE TRIBL'NB.]
Dover, Jan. 13.— The deadlock which has ex
isted in the Delaware Legislature since January
8 was partially broken late this afternoon by
the organization of the House of Representa
tives. "William D. Denny (Union Rep.. Addicks)
was elected Sr>.*her. the Regular (anti-Addlcks)
Republicans voting solidly with the Unions. The
organization was really brought about by thrse
conferences during the morning and afternoon,
when propositione and counter propositions were
made by the Regulars to the Unions, and vice
versa, the main plea in each proposition being
that of effecting an organization, and thus put
ting an end to the disgraceful plight In which
they have been placed before the public and
their constituents in gauging a deadlock.
It was not until the conference held at 3
o'clock that any positive agreement had been
reached, and even then the Union Republican
members of the Senate refused to recede from
their former proposition, that of organizing the
Senate. The Union and Regular Republican mem
bers of the House then took the initiative by
agreeing to organize the House on the proposi
tion of dividing the spoils half and half, con
ceding to the Union Republicans the right to
name the Speaker, the Regulars alternating in
the other offices.
"Without further delay, the Ropubli< an mem
bers of the House began balloting for permanent
Speaker. It took only one ballot to decide, Mr.
Denny receiving 21 votes and Mr. Smith. Dem
ocrat, 11 rotea. Representative Smith, although
differing radically in politics from Mr. Denny.
voted for his opponent, he being the only Dem
ocrat to lake sucl. action. When the result of
the vcte had been announced and Mr. Denny
dr. -la rod elected applause arcs* from both
sides of the hall. The other offices were quickly
disposed ot", and Boon the full organization was
Governor Hunn, while not at the State Capitol
to-day, %\as at once informed of the organiza
tion of the House, and through his Secretary of
State, Dr. C. R. Layton. presented his biennial
message, which was partly read and accepted.
Notices at once were given of proposed legisla
tion, the first one being of a bill by Represen
tative Armstrong (Reg. Rep.), fixing the salary
<~pf the Secretary of State and dispensing with
the fees collected by him for his own use. The
present emolument of the Secretary of State will
aggregate $10,000 a year, while the Governor
receives only 52,500. Notice of the repeal of
Urn Voters Assistant law was given by Rep
resentative Smith, Democrat. The House then
adjourned until Monday morning.
This action puts the further delay of perma
nent organization of the General Assembly on
the Senate. The Senate, after pairing oft for
to-morrow, took a recess until Monday, when
balloting will be resumed and an attempt made
to elect permanent officers.
BIG STRIKE THREATENED.
Pennsylvania Trainmen May At
tempt to Tic Up Whole Road.
IBT TELEGRAPH TO THE TRIBCNE.]
Pittsburg, Jan. 13— The entire Pennsylvania
system from the seaboard to Chicago- Is now
threatened with a strike. From one end of the
road to the other the union workmen have voted
on the question of a strike within the last thirty
six hours, and the report is being sent to the
executive officers of the Brotnerhood of Train
men at Cleveland. Voting in the Pittaburg dis
trict ended at midnight.
So grave is the situation that Robert Pltcal~n,
at Pittsburg, first assistant to President A J.
Cassatt, has been called east to consult with
th» head of the road.
The trouble began som* weeks ago on the
division between Harrisburg and Altoona, when
the company took off an extra fireman on each
heavy freight train. This made the work of
the forward brakeman heavier. A committeo
visited the officials of the road and asked that
the firman be returned, but the request wes
refused. Then they asked to have the pay of
the forward brakeman Increased. This, too, was
refused, and It was ihen decided to take a vote
on striking along the whole system.
None of th» Pennsylvania employes in Jersey
Ctty know of any strike contemplated. They said
last night that they had r>o quarrel with the road,
and that th'-y were much more worried over the
danger of being laid off than being ordered to go
Port Arthur Had Garrison of 55,000
— No Sign of Privation.
London, Jan. 14. — The correspondent at Port
Arthur of "The Times" says:
The total number of soldiers, seamen and
civilians in Port Arthur at the beginning of the
siege was fifty-five thousand. There are no
signs' of privation here. There was food suf
ficient for two months, and the surrender of the
Russian garrison is amazing.
•The Daily Malls" Tokio correspondent gives
a etory to the effect that all the money in Port
Arthur was divided among the Russian officers,
and w hen this wxis discovered a bitter feeling
arose in the army and navy, which was largely
responsible for the fall of the fortress.
MISS VREELAND IN CAB.
Automobile Buns Down Boy — She
Waits to Sec Result.
Miss Margaret V reel and, the fifteen-year-old
daughter of H. H. Vreeland, president of the New-
York •My Hallway Company, and a friend, Mrs.
•W Bayers, of Newark, were passengers In a cab
of the New-York Electric Transportation Company
which ran over and seriously Injured Thomas Ke
nova eleven years old, of So. 228 West Twenty.
ntnth-st.. at Thirtleth-st. and Seventh -aye.. yester
day Th« boy became unconscious after the cab
ran over him. and Dr. Gllleaple. summoned by Po
!k?man O'Connor, of the West Thlrty-seventh-st.
station, took him to t!» ?«>w-York Hospital. The
cab driver. Sidney H:;uck. of No. 93 dshth-ave.,
V arrested and held until to-morrow to await the
development of the boy/» injuries. Miss Vreeland.
after finding thai the boy was properly cared for.
went on In another vehicle.
MEN WHO FIGURE IN TO-DAYS NEWS.
ATTACK ON T. C. PLATT.
POST CHECK CRUSADE.
C» H* Post to Appeal to Supreme
Court or Senate.
The announcement was made at a mass meet-
Ing in behalf of postal progress at Cooper
Union last night that the Supreme Court of the
United States is to be asked for a restraining
order to prevent Senator Thomas C. Platt, of
New-York, from occupying his seat in the
United States Senate on the ground that he does
not fulfil his duties according to his oath of
The statement was made by C. W. Post, of
Battle Creek. Mich,, In his speech. "Our Errand
The meeting was under the auspices of the
People's Institute, in co-operation with the
Postal Progress League. Mr. Post presided. He.
after referring to the postal deficit and declar
ing that the people of the country threw away
annually to the railroads 940,000,0001 said:
Senator T. C. Platt, of New-York, is president
of the United States Express Company. Word
was passed around to other Senators that no
definite action should be taken on the Post
Check Money bill. Senator Platt was approached
by my representatives to know his attitude on
the question, and he clearly defined tho fact that
he was opposed to the measure because it was
contrary to the interests of the express com
We met with strong opposition from a New-
York State man in position to lay some heavy
blocks in front of the wheels of progress, Ellis
H. Roberts, Treasurer of the United States. Can
on«» draw any connecting line between this New-
York State appointed ani Senator Platt. from
I have the papers alread; prepared, and will
ask the Supreme Court at Washington for a
restraining order to prevent Senator Platt from
occupying his seat in the United States Senate
on the grounds that he does not fulfil his du
ties according to hia oath of office, that he
subverts the interests <>f the people, whom he
has sworn to represent to the interests of a
corporation which he really represents. It is
possible tha Supreme Court may not i-iar-t this
restraining order. Wa shall make an -urgent
effort /or It, however.
After the meeting Mr. Post said his lawyers,
C. E. Dawgon and Nathan Wilson, would pre
sent the papers to th,j Supreme Court some day
next week. Mr. Post said:
A question of the constitutionality or of the
right of the court to interfere will be raised by
the application for the restraining order. It
may be that the court may decline to interfere
for lac k of Jurisdiction, and in case that should
happen we shall appeal to the Senate itself.
This in the first time, as I understand it. that a
restraining order will have been asked from th?
United States Supreme Court against a Senator's
taking his seat.
F. C. Beach, Editor of "The Scientific Amer
ican," spoke on the parcels "post in relation to
Herbert Myrick, president of the Orange Judd
Company, said the limit of weight for a package
should be raised from four pounds to eleven.
Charles W. Dayton. ex-Postmaster of New-
York, sent a letter, saying that progress in the
postal service was stifled by red tape. Each
postmaster at largest cities of the Union should
be clothed with statutory power to manage his
office with an annual appropriation. He advo
cated a parcels post, penny postage, increased
weight of mail matter or lower rates, and a re
vised schedule for second class matter. The ap
pointment of William R. Willcox as Postmaster
was a decided advance in the administration
here, Mr. Dayton wrote.
THREATS TO HAYTI.
Annulment of American's Sentence
Asked on Pain of Intervention.
Port-au-Prince, Haytl. Jan. 13.— Mr. Powell,
the American Minister, has informed the gov
ernment of Haytl that the United States
government refuses to recognize the validity
of the sentence in contumacy to fifteen years
at hard labor pronounced by the Haytian court
against Jaeger Huberman, American citizen,
for alleged complicity in bond fraudo charged
against the administration of former President
Simon Sam and officers of the Bank of Hayti.
The United States demands the annulment of
♦hs sentence, under pain of energetlo interven
tion. The demand has caused much excitement
The alleged fraud was in connection with a plan
of the Sam administration for consolidating the
debt of the republic. It was to issue W. 000,000 bonds,
with an additional $213,282, to be paid to the Bank^
of Haytl. Before the scheme was consummated
the administration was overthrown, and President
Nord caused the arrest of thirty-three persons.
SUCCEEDS E. F. WARE.
Representative Vespasian Warner
Appointed Pension Commissioner.
Washington, Jan. 13. — The President has ap
pointed Vespasian Warner Commissioner of
Pensions, to succeed Eugene F. Ware. Mr. War
ner represents the 19th Illinois District in Con
gress. He was strongly indorsed by the Illi
nois delegation and by prominent members of
the (Jrnrid Army of the Republic and other or
ganizations of veterans. The appointment will
go to the Senate to-morrow.
Vespasian Warner was born at Mount Pleasant,
111., on April 23. 1812. He studied law, and on June
18. IS6I. enlisted a* a private in Company E. 3)tn
Illinois Volunteer Infantry, and served throughout
the Civil War. being wounded at Shiloh. He was
mustered out of the service on July 13. 1868. witn
the. rank of captain nnd brevet major. He then
entered the law department of Harvard University,
from which he was graduated in 1868. He began
the practice of law at Clinton, 111. In the ad
ministrations of Governors Oglesby. Hamilton and
Flfer he was colon*! and Judge advocate general
of Illinois, and wag a Republican- Presidential
elector In 1838. He is now serving his fifth term
in the House.
THROUGH SLEEPER TO CLEVELAND
via Pennsylvania Railroad. Leaves West 23d Street
Station dally at 4*5 p. ni.. arrives Cleveland 7:15
a. m.. limited train; no extra fare to Cleveland.
-Advt. , - .v : ?k
A. G. LOOMIS RESIGNS.
LEAVES THE CITY BANK.
Development of the Munroe §
Archibald G. Loomis, who has recently been
figuring so conspicuously in the revelations of
the methods by which the stock of the Montreal
and Boston Consolidated Mining and Smelting
Company was "washed" in the curb market, and
who was a member of the underwriting syndi
cate which was interested with the firm of Mun
roe & Munroe, now alleged to be bankrupt. in
the advance of that stock, has resigned as a
director and as vice-president of the National
City Bank. It is understood that at the next
meeting of the banks board of directors, on
Tuesday, the resignation will be accepted. The
letter of resignation is as follows:
January 12. 190"».
To the Board of Directors of the National City
Bank of New- York.
Gentlemen: I beg to tender my resignation as
vice-president and director of this bank.
After six years of active work in the bank,
during which period Its business has largely
increased and its honorable and commanding
position has been steadily maintained, it is with
regret that I sever my relations with you. I am.
however, led to do this because my continuance
with the bank exposes it to" criticism, and at
tack which should be personal to myself, as
no officer or individual connected with the bank
except myself had anything whatever to do with
the credit which was' extended to Munroe &
Munroe. The amounts that were advanced to
them were loaned in the ordinary course of busi
ness, and at nil times I had ample collateral
from them to secure their loans. I believed at
the time, and still believe, that the property of
the Boston and Montreal Copper Company is a
valuable one. and I had jio personal interest of
any kind in the loans made to them.
I have been engaged in the banking business
for upward of forty years, during which time I
think I may say that my record will speak for
Itself and not to my disparagement. If there
has been any lack of judgment in these matters,
it Is but proper that I alone should suffer the
criticism. '-1-. - ■ ••■ • " :
My greatest eatlsf action at the present mo
ment, J»j_the confidence wlayn has beenr-ejiowo
me by my re-election as a director and vice
president of the bank. It would, however, be
ungenerous on my part to take advantage of
this signal proof of your appreciation of what
I may have been able to do for the bank In the
I earnestly request that you will take imme
diate action upon my resignation. Yours sin
cerely. A. G. LOOMIS.
Officials of the bank. decline to make any com
ment on Mr. Loomls's action. When the letter
of resignation was read to Samuel Untermyer,
counsel for the creditors of Munroe & Munroe,
Mr. Untermyer said that he very much regretted
the outcomo of the investigation so far as Mr.
Loomis was concerned. He added that the con
nection of the City Bank with the transactions
of Munroe & Munroe had been misunderstood. J
It had never been charged in the proceedings or
in any testimony that the City Bank had been
guilty of a violation of law. The only claim
made against it arose from the fact that its debt
of $60,000 had been repaid to it on the eve of
the failure of Munroe & Munroe, and this would
be claimed to be a preferred payment within the
meaning of the Bankrupt law and recoverable
The resignation of Mr. Loomis from the Na
tional City Bank is a development from the in
vestigation which Mr. I'ntenneyer has been
conducting before United States Commissioner
Alexander into the manipulation by Mun
roe & Munroe of the Montreal and Boston stock.
According to testimony brought out In the
course of the Investigation, a syndicate in which
Mr. Loomis and A. B. Leach were members ac
quired 700,000 shares of the stock, for which
they agreed to pay the company at least $700.
000 in money. The larger part of this money
was required to pay for the properties of the
Montreal and Boston company. Part of these
properties, and the most valuable of them, ac
cording to the testimony, are not yet paid for.
The syndicate, in order to get the money with
which to pay for the properties and to supply
working capital, had employed Munioe & Mun
roe to sell the Btoo.k for them under an arrange
ment by which everything over ?1 a share real
ized for the stock was to be divided between
the syndicate and the Munroes. In the so-called
"wash" transactions more than three million
shares were dealt in on the curb, but all the
money obtained from these dealings and turned
over to the syndicate was $139,000. A man
familiar with the case said yesterday that it
had cost about $160,000 to get this $139,000 of
money, of which about $100.000*- had been ex
pended for commissions and $-HXOOO for office
expenses of the Munroes for three months.
Mr. Loomis was elected a vice-president of
the National City Bank on March 28. 188©.
succeeding A. B. Hepburn, who had a few weeks
previously been elected vice-president of the
Chase National Bank. Mr. Loomis resigned the
presidency of the National Bank, of Hart
ford, to take the National City Bank vlce-prsai
TO SUE SYNDICATE .
Preparing Actions Against 31em
bers Who Underwrote M. # B. Stock
Complaints are being prepared in the office of
Samuel Vntermyer. attorney for the receiver and
the creditors of Munroe & Munroe, it was an
nounced yesterday, in actions which are soon to
be brought against the several members of the
syndicate which underwrote the TOO.CM shares of
stock of the Montreal and Boston Consolidated
Mining and Smelting . Company. Through these
suits Mr. Untermyer expects to recover the money
paid -to the syndicate by Munroe & Munroe on
December 7. 1904. the day preceding their failure.
It is alleged in the Involuntary bankruptcy petl-
Conttnued on third page.
QUICKEST LINE TO CLEVELAND.
Leave New Tork 5:32 p m , arrive Cleveland 7:15
next morning. Cincinnati ! N p m . lu>ll.inapr>ila 3 00
P m., dt. Louis 916 p. m.. by New Voik C«ctrai
Fine dervico. No axccm fare.— Advt.
PHIPPS TO HOUSE POOR.
FOR TENEMENTS, $1,000,000.
Rentals To Be Used in Erecting
More Buildings — Trustees.
Henry Phipps, formerly of Pittsburg. but now
of this city, has placed in the hands of thirteen
men whom he has named to be associated with
him in a society $1,000,000 to be used to ac
quire land in this city and to erect on It im
prove] tenement houses for the working classes.
The houses are to be built on a business basis.
The earnings are to accumulate and are to be
used from time to time in putting up more tene
ment houses. The announcement was made
yesterday by Robert W. De Forest, who said
that the following men had consented to act
with Mr. Phipps aa trustees of the society to
be organized to carry out his plans:
Mayor McClellan (ex of-Mharles S. Brown.
(Jcto) I Dr. E. R. L Gould.
Robert W. Dc Forest. 'W. S. Hawk
IMdor Straus. |»'har!*-s A. Hoot*.
John Arbuck'e. ! G«ors« E. Gordon.
Alfred T White. I John S. Phipps.
Myles Tierney. (rharles Stewart Smith.
It is understood that Henry Phipps will him
self be president of this society, that Isidor
Straus will be its vice-president, and Robert W.
tie Forest chairman of its executive committee.
Mr. Phipps has called in as advisers some of
those who are best informed on the tenement
house problem. Four of the men named—Rob
ert W. de Forest. Alfred T. White. Myles Tier
ney and Charles 5. Brown— were members of the
New-York State Tenement House Commission
of 1900, which framed the present tenement
house law. Mr. de Forest was Tenement House
Commissioner under Mayor Low. Dr. K. R. L.
Gould is president of the City and Suburban
Homes Company, which is engaged in building
model tenements on an extensive scale.
Mr. Phipps in well known in connects with
many philanthropic, enterprises in Pennsylvania,
among which may be mentioned the playground
for children and the free gymnasium, at Alle
ghany ttty^roi-the^eft^Phlpps Institute for
the Study. Treatment and Prevention of Tuber
culosis at Philadelphia.
Mr. Phlpps's letter in which he outlines his
I have asked you to meet me to obtain jour ad
vice and awSstanc* on a matter I have had on my
mind for some years and which I now have pleasure
VpVopofe to organize a society for the Purpose of
buildlns tenement houses in the city of New -York.
nrefenbrv in the Borough of Manhattan II it can
£ c done ad "amaeeously. but if land be found 100
hieh or if building conditions are such as to
threaten undue cost of construction or unreasonable
delay, then in the other boroughs of the city or cisc-
W |°m-iitiow to fclve $1,000,000 for this purpose. I
p£t °?ne%eY°enWs to be so planned as to earn
about 4 per cent on their cost. after ailc.wing a
proper amount for maijtenanee and repairs. I
Intend to rave the earnings accumulate and to
hi uses from time to time in erecting more tene-
m My S w^h is that the rooms should not be rented
at a price below the market rate. I do not «M to
discourage individual investors *°» .^ll?* *?E;
ment houses on a purely business basis. To •!> jnis
might check building operations, raise rents and In
the end prove injurious to the working people,
whom I wish to aid. and who must rely in so large
measure on building for purely business reasons to
P ?A d here e £ M h cost and great in
flation, then the work should go very slowly or be
stopped. On the other hand. if there is a period of
great depression and lack of employment, it may be
well to go fast, and perhaps have more than one
building under way at the same time
It would certainly be an advantage to have one
building finished and rented, and see how it rents
and suits tenants, before starting to erect a second.
My object is to make this money do as much good
"Should like the buildlnjrs to have all the light
and air possible, to havo them fireproof and thor
oughly sanitary, and so far as possible to have
spaces around them. In which the children could
P It" may be well to erect buildings for perhaps two
or three classes of wage earners, or it may possibiy
be better to confine ourselves to one class, '.loping
thus to relieve the market and Incidentally benefit
I shall look with great interest to the progress
of the work, and perhaps may see much of it fin
ished while I am here to enjoy it.
I Intend to have the gentlemen whom I have
Invited to the meeting constitute the trustees of the
society, with full power to fill vacancies.
One Of the first things will be to elect officers.
The trustees are to have the power to do every
thing necessary, the same as I could do it were I
taking the work upon myself. .
To insure the carrying out of the gift. I will
deposit in a trust company, or with a committee
of this board, sufficient cash from time to time to
Insure the performance of my part.
Mr. de Forest said that as soon as it was de
cided in what locality and how the benefac
tion was to be carried out. the facts would be
made known. There would be no delay.
"Dr. E. R- L. Gould, one of the trustees named
by Mr. Phipps. said last night regarding the
gift of Mr. Phipps:
It Is the most admirable and beautiful kind of
philanthropy, for It pays its own way. and It Is
a philanthropy which deals with the most funda
mental of all social problems of this city— the ques
tion of good, wholesome homes for wage earners.
As I understand it. it. is not his intention to give
away something for nothing, but to deal with the
matter on a satisfactory commercial basis. In
other words he does not wish that there shall be
any unfair competition with builders. Tenement
Improvement In this city is needed more than any
other one thing. I am glad to be able to say
something In this direction, especially as Mr. Phipps
has done me the honor to make me one of the
trustees This gift fa founded on the order of the
Peabody fund of London, which also accumulates.
It is a very hopeful thing to find a man who was
born outride New-York do such a splendid thing as
this, and I should now like to see the city do
Alfred T. White, who built some mode! tene
ment houses in Brooklyn, said:
Mr. Phipps. in my Judgment, has chosen the
wisest form, of beneficence. The proper housing of
all classes Is the first essential to the health of the
community and to good citizenship, and it Is a
most effective factor In morals as well. In liOndon
Mr. Peuhodys original gift, made about forty years
ago. has already trebled through accumulative in
vestment of th- income, and Mr. Phlpos's similar
gift for the benefit of New- York is likely to multiply
those results even more rapidly.
FRAUDULENT BOOK AGENT CONVICTED.
LBT TBI.KCJR.APH TO THE TRIBrNB.]
St. Louis. Jan. 13.— Several publishing firms, In
cluding Harper & Bros, and Charles Scribner's
Sons, of New-York, unted with the Holdaway Pub
lishing Company, of St. Louis. In prosecuting L. C.
Devaney. «lla« La Bar. a book agent, who w.i - found
guilty to-day in the Circuit Court of obtaining
books worth 12 o*lo under false pretences and sen
tenced to four years In the penitentiary- His wife.
Mr« Harriet Isles Devaney. was acquitted of a
similar charge. One was rearrested. however, as
she was leaving the courtroom on •» charge of hay-
Ing passed a fraudulent check ta Waahlcston.
D. C. .-*>> ''■■'."• ,-•*•■ » .
J. L BRISTOW RESIGNS.
TO QUIT POSTAL -SERVICE.
President Appoints Him a Special
Panama Railroad Commissioner.
[FROM THE mm BUREAU.]
Washington, Jan. 13.— Joseph L. Bristow, the)
Fourth Assistant Postmaster General, to-day
handed to th« President his resignation as an
officer of the postal service, to take effect on
January 20. By an executive order Issued lats
this afternoon. President Roosevelt designated
JOSEPH L. BRISTOW.
Who resiened as Fourth Assistant Postmaster Gen*
era I yesterday.
Mr. Brfstow as a special commissioner to make
an investigation Into the trade conditions and
freight rates between the Atlantic and Pacific
coasts, and between the west coast of South
America and the east coast of the United State*
and Europe, to determine the best policy of
managing the Panama Railroad.
The announcement came at the close of an
extended conference between the President. Sec
retary Taft. Mr. Bristow and Senator Lonsr. of
Kansas. The text of the order issued by the
It is ordered that Joseph 1.. Bristow. of Kan
sas, be appointed a special commissioner for
the purpose of visiting the ports of the Pa
cific Coast, the Isthmus of Panama, New- York,
and such other ports as may be necessary.' to
make an investigation into the present tradw
conditions and frets! rafs between the At
lantic and Pacific consts. across the Isthmus oi
Panama, and between the west coast of South
America and the east coast of the United States
and Europe, for the purpose of determining the
best policy to he pursued in the management of
the Panama Railroad Company. He is author
ized to employ for this purpo-.-e a stenographer
at net exceeding ?~> a day and his actual and
necessary expenses, and to take evidence of all
persons whose knowledge of trade conditions o?
rates will assist in r« ich ng the necessary con
clusions. The Secretary of War will furnish,
to the special commissioner a letter of instruc
tions In detail as to the course and extent of
his investigation and as t> the time when ha
shall report his conclusions.
Until this report is forthcoming the commis
sioner will be allowed ht3 actual expenses and
$15 a day. The President will finally fix hii
entire compensation. As Mr. Bristow will need,
until January 20, 1 •."".. to close up matters
awaiting: his disposition as Fourth Assistant
Postmaster General, this order will take effect
on that date. The Isthmian Canal Commission
is directed to provide the fur.>; needed hi tha
execution of this order.
HASTENED BY CLASH WITH WYNNE.
After the conference at the White House Sen
ator Long said th*t the transfer of Mr. Bristol
from the Postoffice Department to work in con
nection with the isthmian can] had been under
consideration for a long time.
"Secretary Taft." said the Senator, sired,
to utilize Mr. Bristow"* services In connection
with the work of constructing the canal, and
has had the idea in mind of appointing him a,
commissioner to investigate trade, and freight
conditions ever since he returned from the Isth
mus of Panama. The President readily ac
ceded to Secretary Tjaffs suggestion, and. as
the work will be- c «-."#Pr congenial. Mr Bristow
has accepted the new position."
Mr. Bristow has had Interviews with th©
President and Secretary Taft regarding- the
transfer, but his final determination was not
reached until to-day. His decision to accept
the special comrr.issionership was hastened, it
Is understood, by the transfer yesterday of tBS
division of postoffice inspectors from the bureau
of the Fourth Assistant Postmaster General to
the direct control of the Postmaster GeneraL
Mr. Bristow regarded the transfer of the divi
sion as a reflection on him. Th the order waa
not Issued with the idea of humiliating Mr.
Bristovr is shown by the President's action
Mr. Bristow will continue as Fourth Assistant
until the -Oth, when he will Immediately taka
up his new duties. He has not considered
definite plans for the work, and will not under
take to map out any plans until he enters ac
tively on his new. task. Detailed instructions
have not yet been transmitted by Secretary
Taft to Mr. Bristow. bu: will be prepared by
January 20. The Information to be obtained
through this method of inquiry will, it is be
lieved, be of vast importance to the government
in Its operation of the Panama Railroad, and]
the thoroughness with which Mr. Brlstorv con
ducted his branch of the postonVe Investigation
FLORIDA'S FAMOUS TRAINS.
-N T. & Fla. Special." 2:10 P. M.: "Frx *"Weet
mdlan Ltd," 9:25 A. M. Unexcelled service via
Perm.. & Atlantic Coast lane. Usi E'w«.y» XT.—