Newspaper Page Text
Estate. See pages 6, 7 and 8.
PRICE TWO CENTS.
Clement's Scheme to Conceal
Faribault Bank's Condition
from Officials Exposed.
GIVEN BY FRIENDS
Receiver Baird Will Collect Them
Oldham Investigates for
Special to The Journal.
Faribault, Minn., March 25.While
much has been done to settle up the
affairs of the defunct First National
bank, the work necessarily makes slow
progress, and has been delayed by the
failure of depositors and other creditors
to file claims. There is reason to be
lieve, however, that the report of assets
made to the controller was too conserv
ative and that more will be secured
than was at first thought.
Receiver Baird has found several
notes for which the makers claim no
consideration was given, but which
they say were made as a personal ac
commodation to Mr. Clement. Some
were for as much as $5,000 and they
are now believed to have been used by
Mr. Clement to conceal the bank's real
condition from the national bank exam
Altho some were made years ago they
were kept "alive" by Mr. Clement's
simple method of indorsing interest
upon them, it thus being made to ap
pear, without the knowledge, as is
claimed, of their makers that'they rep
resented current loans.
"Wlieat Deal Shortage."
Mr. Clement secured these notes on
To one man he said he "wanted a
$5,000 note for a few days to cover up a
shortage on a wheat deal. Such a note
signed by the late Senator Stockton,
was held'by the bank at the time of his
death, and Mr. Clement w,as about to
put it in as a claim against his estate,
when Stockton's partner, John Hutchin
son, threatened to expose the whole
transaction. The claim was not made
and as the Stockton eBtate was settled
long ago, this note is probably now
listed among the bank's worthless se
Mr. Baird contends that these notes
are due the bank and has made a de
mand upon the makers for payment.
Some of the notes have been paid or
are in process of liquidation in other
cases, payment is resisted.
cases,"th saidnot Mr.isBaird, fi"Tn
that some notes given by their friends
had their indorsement, but every cent
due on such notes has either been paid
or arranged for."
Man from Washington.
The question of the liability of di
rectors for neglect was investigated
here this week on behalf of the depart
ment at Washington by Judge F. F.
Oldham, its attorney. He went fully
into the subject, both at a meeting
with the committee of depositors and
at one held subsequently with the di
rectors themselves. To attend this lat
ter meeting Judge Buckham was called
from Waseca, where he was holding
At the meeting with the depositors'
committeemen, Judge Oldham was at
some pains to inquire just what they
had learned at various interviews with
the directors. What conclusions he ar
rived at are not known, except as they
can be gathered from remarks he let
fall. For instance, when he was told
how one of the. directors had said that
he had never critically examined the
bank's securities and had trusted the
making of loans entirely to Mr. Clem
ent, he remarked that evidently the
gentleman had spoken without consult
ing his attorney. It is also regarded
as significant that he inquired particu
larly as to the financial responsibility
of the directors.
Responsibility of Directors.
At the subsequent meeting with the
directors, Judge Oldham's attitude left
no doubt in the minds of those present
that the department would not be sat
isfied unless they did something further
than merely assume the obligations of
Judge Oldham and Mr. Baird both
held, ft is understood, that the direct
ors should be held responsible for any
losses that they could have prevented
by due diligence.
"There is no thought," said Mr.
Baird, "of holding the directors re
sponsible for every loss the bank has
sustained i nthe thirty or more years
It has been in operation. That, of
course, would be absurdly unfair, for
naturally there have been many losses
which the officers could not have fore
seen. The responsibility of the direct
ors muBt depend upon the circumstances
of each particular case. If it is
shown that investments made by the
bank which resulted disastrously could
have been prevented if the directors
had fully discharged the duties con
templated by our banking laws, it
seems to meand Judge Oldham shares
that viewthat they should at least
share the loss with the depositors."
Judge Oldham has returned to Wash
ington. Whatever is done will be
done by tl#s receiver upon instructions
from Washington. Litigation, however,
is not looked for. Once fully convinced
of their responsibility, the directors, it
is believed, will not hesitate to dis-
ahATffe all their obligations.
CZAR IS FOR
END OF WAR
the party making solv
ent, action will be brought to enforce
payment. Thev represent to us a part
of" the bank's'assets and will be col
lected wherever possible."
Mr. Baird was asked about a report
that Donald and D. W. Grant had fa
vored Mr. Clement with such notes
estimated as high as $10,000.
"There is no truth whatever," said
he, in such a statement. Neither
Donald nor D. W. Grant owed the Jot"only"fro_m_ect
iient .Neithe p.
SIFTON SCENTS A
Changes Front on School Bill to
Save the Cause of the Gov
HIS SPEECH MAKES A
Cabinet Reconstruction Is Bruit
ed and Many Uneasy Ru
mors Are Afloat.
Special to The Journal.
Ottawa. Ont., March 25.The contri
bution of the late minister of the in
terior to the debate on the second read
ing of the autonomy bills for Alberta
and Saskatchewan last night proved
not only a profound surprise but has
given rise to uneasy rumors as to new
cleavages in the government ranks and
as to actual cabinet reconstruction.
Mr. Sifton acknowledges himself op
posed to the educational clause in the
bill forever fastening separate schools
on the nascent provinces, but ended
by declaring he would support them to
prevent a political crisis.
This cynical declaration of opportun
ism awoke mingled feelings in the
house, some being willing to ascribe it
to his devotion to Laurier and former
associates, while others declare it was
calculated to embarrass the government
majority. However, all agree that Sif
ton is perfectly loyal to his friends,
tho he cannot go back on his convic
Some of the salient features of this
remarkable speech, which took over
two hours to deliver, are: I am in
a somewhat peculiar position, Mr.
more largely with the statements of the
leader of the opposition than with the
statements and arguments of the leader
of the government. The conclusion at
which I arrived seems probably to be
the same as that of the leader of the
"It was said that Manitoba had.been
harsh in abolishing that system. I am
here to say that you cannot deal with a
business of that kind by handling it
with kid gloves. I am here to say that
if there is any act in my public life
I am proud of, it is the fact that I
was one of those who helped to abolish
that system of education in Manitoba.
Altho I am for my party, I am con
vinced, after the history of the question
in Manitoba and the knowledge of what
is held by public men in the territories
on the whole question, that it would be
better for the Roman Catholic people
of the territories if the legislators
were left absolutely free, but I shall
never convince the gentlemen who do
not think so. I shall never get them
to think as I do on this question.# If
I talked for a hundred years their views
would be just the same.
"The question is, how far a man is
.-justified in compromising his opinion for
the purpose of preventing a political
crisis. Therefore I have to say, having
Gran owed the ,,he j.
bank anything directly, nor had they
given the bank any notes It is true Boin
finding that I agree much
i standpoint of affair
,,4-0 of affairs
'parliament, but from the stand
in the Terri-
ean i nre- 0 much enthusiasm* but witht
luctance, give my support to the bill.
How the Railroads Are Getting
Signatures Against the Recip
rocal Demurrage Bill.
Manufacturing and jobbing interests
of Minneapolis are much stirred by the
circulation of a petition against the
passage of the reciprocal demurrage
bill. The petition has been handed to
the heads of these concerns by repre
sentatives of the railroad companies,
yfho have not only carried it about, but
have used their xitmost persuasive pow
ers to get the signatures of local busi
ness men to hand in to the state senate.
The railroad representatives have
told the business men that if the bill
passes there will be such a car short
age in this state as they never dreamed
or before. Car shortage has been the
bane of many shippers in the last two
or three years. They have often had
the greatest difficulty in filling orders
within specified time, and have lost
business because of it. This argument
hits them in a tender place. They can
not understand how the demurrage
charge will tie up cars, and the infer
ence is that if the bill passes the rail
road companies will deliberately create
such an emergency as will cause the
state railroad commission to suspend
the demurrage charge. They will keep
cars back, and especially from the ship
pers who have been independent enough
to refuse to sign the petition.
To put it plainly, the petition has
been handled in such a way that some
of the men approached consider it co
ercion, and they have indignantly re
fused to sign. Others have signed be
cause they did not feel that they could
afford to refuse.
DECIDES TO RETIRE
Eome, March 25.Signor Tiltoni, act
ing premier and minister of foreign af
fairs, today announced to parliament
that the whole cabinet had resigned,
leaving the king free to form a new
ministry and that his majesty had re
served his decision. In the meanwhile,
Signor Tittoni and his colleagues will
remain in office. Parliament has ad
journed until the formation of a new
Ten-Story Structure to Be Put
Up HereAgsnts at
Negotiations are under way to give
Minneapolis one of the finest hotels
west of Chicago. The enterprise is
backed by eastern capitalists, who have
thought for some time that a strictly
first-class modern hotel in this city
should be an excellent investment. A
representative now in the city is look
ing overv.the ground and haw already
secured options on one or two desirable
The man who is conducting the nego
tiations thru the Wyvell-Harrington'
company, a leading Minneapolis real
estate firm, has not given out anything
definite, but it is known that the plan
is to secure the best down-town loca
tion possible and erect a hotel at a cost
to exceed $1,000,000.
The proposed building is to be a fire
proof, ten-story structure, after the
plans of the most up-to-date eastern
hotels, with main dining room, office
and cafe on the first floor, a banquet
hall, with seating capacity of 1,000 on
the ninth floor and 400 guestrooms,
providing every possible comfort and
REDUCTION IN OIL PKICES.
Pittsburg, March 25.The Standard Oil com
pany today made a reduction of 3 cents in the
higher grndes of crude oil and 2 cents in the
lower grades. The price of North Lima oil was
advanced 1 cent and the Somerset oil was un
The War for the Week
Peace preliminaries are now in progress. The peace party in Russia and the unanswerable facts of the
situation have convinced the czar that to continue the war is madness and can result only in plunging Russia
into new disasters. It is positively stated, therefoj^ "that peace preliminaries are under way, and that
definite peace proposals will soon be "forthcoming.
Supporting this statement is the announcement that Franco-Russian negotiations respecting a loan to
Russia have been resumed. Negotiations were broken off because of the czar's determination to continue
the war. Their resumption, therefore, is strong evidence that the czar has Intimated that he has changed
Further signs of peace are seen in the talk of means by which Russia hopes to compensate herself for
the loss of Fort Arthur and the Manchurian railroad. One plan involves a railroad, entering the back door of
China, cutting thru the empire's heart to Peking and thence to a port on the Yellow Sea. On the other
hand the Japanese have already begun sweeping movement to remold the whole civilization of China on
Japanese models, thru schools, newspapers and monasteries under Japanese control.
While the prospects of peace are brightening, Linevrtch is^continuing his retreat northward, pressed on
rear and flanks by the Japanese. But a heavy engagement is not expected. St. Petersburg looks for the
Russian army to retreat to a point west of Harbin, unless Linevitch can check the Japanese at the Sungari
river. He will probably make a stand at that river, in order, if possible, to save Harbin and prevent the
isolation of Vladivostok. Otherwise there may be a long period of comparatively bloodless war.
Reports also say that General Kuroki's army is headed for Vladivostok to invest the garrison there.
The Russians expect the garrison to be reduced to a sta te of siege before long.
Russia's fleet under Rojestvensky is expected soon to make an effort to regain for Russia control of the
eastern seas. The admiral is on his way eastward with two divisions of his fleet. The third is on its way
thru the Suez canal today, and will probably join the other two at the Chagos islands and thence proceed
eastward to meet Admiral Togo, who, with a large fleet, is believed to be waiting in the vicinity of Singa-
pore the coming of the Russians. Reports that Japanese submarines have damaged some of Rojestvensky's
ships have not been confirmed.
Japan has secured another loan, $75,000,000 in America and $75,000,000 In England. The American end
was subscribed for twice over almost upon the announcement of the bond issue.
THE ACTOR, IS DEAD
New York, March 25.Maurice Bar
rymore, the actor, died today at a sana
torium at Amityville, L. I.
Maurice Barrymore was born in India
in 1847. He^ was a graduate of Cam
bridge, and was admitted to the bar.
His first engagement in the United
States was at the Fifth Avenue theater,
New York. He was leading man for
Modjeska, Mrs. Langtry and others. He
was the husband of Georgia Drew Bar
rymore, and their sons, John and Lionel,
and their daughter, Ethel, are among
the best-known people of the American
Tor some yegrsr^iwiriee Barrymore
had been an rr^^iSB^'^s sanatorium.
New York Sun Special Service.
New York, March 25.To save the
life of a 9-year-old boy who was taken
to Flower hospital a week ago in the
last stages of cerebo-spinal meningitis,
Dr. William Tod Helmuth trephined the
skull of the lad and he is now appar
ently almost well.
When Dr. Helmuth performed the
operation, the boy was almost dead, but
his recovery has been rapid. When
the boy was taken to the hospital Dr.
Helmuth decided to try trephining, until
then an untried procedure, the case be
ing so extreme. His experiment is be
ing watched with absorbing interest by
The peaceful invasion of China is quietly going on while the war
SATURDAY EVENING, MARCH 25, 1905. 32 PAGESFIVE O'CLOCK.
JAP IDEAS SOWN
Mikado's Agents Begin Gigantic
Task of Remodeling Civil
ization of Mongolians.
Berlin, March 25.A letter from
Peking, published by the National
Zeitung this morning^ gives the results
of an inquiry into Japanese political
activity in China. The writer says
Japanese agents in various lines of
business are penetrating into China and
settling in every important place in the
empire, 'aev otaiig toemselve's to"their
callings in. life, whether priests, editors,
teachers or traders, and to winning
peacefully the good will of the-Chinese
for the Japanese.
The method most often used is the
founding of newspapers printed in the
Chinese language and friendly to Jap
anese aims. These try to influence the
provincial governors and the Peking
government to employ Japanese teach
ers in the schools and especially to
place Japanese military instructors in
charge of the Chinese troops.
In addition Japanese Buddhist monks
have begun to arrive in China on semi
political and semireligious errands.
They seek closer relations with the
Chinese Buddhist organizations, and
have acquired control of several mon
asteries over which the Japanese flag
is floated. The monks also establish
Buddhist chapels and organize congre
gations. Their declared aim is to
unite' the various Buddhist sects in
INARIES ARE NOW ON
iSIX WEEKS BELIEVED CERTAIN
FIRST STEPS ALREADY TAKEN
Peace Preliminaries Under Way"In
timations" from Both Sides.
New York Bun Speoial Service.
Washington, March 25.While peace
overtures between Russia and Japan
have not as yet been directly initiated,
preliminaries are in progress.
Each belligerent is halting at the
edge of direct advices, fearful of the
effect in China of an announcement that
it was compelled to seek peace.
Nevertheless, from both sides have
come indirect intimations to the United
States that, if negotiations could be
instituted in some way, perhaps an
equitable adjustment could be reached.
Kaiser Anxious to End War.
& i These intimations are receiving the
jjj i energetic support of Germany. For
iri some reason not quite clear, Emperor
William has become terribly anxious
that the war should end. He has even
directly suggested to President Roose
velt that he take measures looking to
President Roosevelt has just respond
ed. In a circular dispatch to American
diplomats accredited to all the powers,
including, it is believed, Russia and
Japan, it is stated that while America
is most desirous thta peace should be re
stored, the president does not see his
way clear to take action unless he
should receive a direct representation
from either or both of the belligerents.
At hte same time the president is
leaving no stone unturned to bring the
war to an end. He has let both pow
ers understand that he would welcome
peace and would even gladly facilitate
Personages Representing Both Sides In-
formally and Secretly Discuss
Terms at One of Europe's
650,000 IN LOSSES OF
1HE RUSS AND JAP ARMIES
London, March 25.The losses, in killed, wounded and
the Russian forces now reach a total of 897,141, made up as
Date and Battle. Losses.
May 1, Yalu 2,941
May 2, Nan-shan 4,000
June 1, Wa-fang-kan 10,000
June 27, Motien and other
July 25, Ta-tche-kiao 1,200
July 80-31, To-mu-cheng 4,000
Aug. 25, An-shan 8,000
Sept. 1-5, Liao-yang 25,000
Oct. 9-17, Shakhe 68,000 Total 397,141
The Japanese losses probably aggregate 250,000, making the grand to-
tal losses nearly 650,000. This war is the most deadly on record.
St. Petersburg, March 25.The information contained in these dispatches
for over a. week regarding the change in Emperor Nicholas' attitude concerning
the advisability of making a pacific proposal to Japan is fully confirmed.
In very high quarters, peace within six weeks is regarded as certain.
The positiveness with which this is affirmed would indicate that the govern-
ment is already in possession of information as to the Japanese terms which
indicate a basis to which Russia can agree.
The exact situation is shrouded in mystery. The secret of what has been
done and what is being done is zealously guarded. The Associated Press hears,
however, from a source close to the throne, that pourparlers are actually in prog-
ress in Paris, but possibly these are only of a preliminary character, and Copen-
hagen may be, the, scene of the first exchange between representatives of the
Jn this -connection, importance is attached to the visit ofvM. d'Iswolsky,
Russfa& 'jninjWer^at Copenhagen, and Baron Rosen, former Russian minister to
Japan, to M. Bompard, the French ambassador to Russia on Tuesday.
The parties to this conference refuse to admiV that significance is attached
to it. Inthe meantime the foreign office issilent.
TERMS ARE INFORMALLY DISCUSSED.
Paris, March 25.It is said in quarters having excellent means of infor-
mation that Russia's steps toward peace have already taken a tentative form at
a private conference, held within recent days, at one of the small capitals of
The purpose appears to have been to bring together personages representing
both sides .neither having credentials to discuss formally terms of peace, but
to examine informally what each side expected and what tentative basis seemed
The nature of this exchange does not warrant its being considered a definite
peace movement, but it is understood to have given each side an opportunity to
judge the view of the other and it has clearly shown Russia's disposition toward
French newspapers are booming peace prospects. The Petit Parisien quotes
a St. Petersburg diplomat as saying that a complete change of opinion has taken
place at Tzarskoe Selo, and if France should now offer her good services they
would be accepted, nor would those of the United States be rejected.
FRANCE HAS BEEN URGING PEACE.
Washington, March 25.When the dispatch from St. Petersburg regarding
peace was shown the diplomat today on whose authority the Associated Press
on March 13 announced from Washington that the Russian emperor knew the
general terms on which Japan would conclude peace, he said:
"The source of my original information was a high one, but it is gratifying
to receive this confirmation. The European powers, notably France, have for
some time been endeavoring to find out on what terms Japan would accept peace.
These have been ascertained in a general way and have been communicated to
St. Petersburg. When he called his war council on March 14 the emperor knew
these terms and doubtless communicated them to his ministers.
"Japan's apparent reticence is not due to a desire to continue the war, but
is because the Tokio government wishes to be certain that Russia is proceeding
to peace negotiations in good faith and is not playing for time as she did in the
negotiations prior to the war."
LOAN POINTS TO PEACE
Resumption of Franco-Russian Negotia
tions Strengthens Peace Rumors.
Paris, March 25.The prospects of
peace between Russia and Japan as
sumed a more definite and almost a
tangible aspect yesterday as the result
of the announcement of the resumption
of negotiations for a Russian loan.
The postponement of the loan
curred thru the stand taken by the
financial element against proceeding
while the uncertainties of war contin
ued, whilst a willingness to resume ne
gotiations. is construed as meaning that Continued on 2d Page, 5th Column
Today, max. 55, min. 40 de
grees a year ago, max. 27,
min. 11 degrees.
Date and Battle. Losses.,
July, 1904, to Jan. 19, Fort
Jan. 15-29, Hei-kou-tai 21,000
To DateSkirmishes and
smaller battles 12,000
Feb. 23-March 12, Mukden. .200,000
To DateNaval engagementsSO.OOO
(Excluding fall of Fort Arthur.)
strong influence finally has prevailed
with the authorities at St. Petersburg.
The announcement of the resumption
of negotiations took definite foim in
a communication to the syndicate of
agents de change, who form an influ
ential element on the bourse, holding
The effect of the first announcement
was to stimulate the market and partic
ularly Russian securities.
A reaction occurred on fears as to
the effect that heavy demands of the
loan would have on the market and
doubts concerning the uses to which the
loan would be put. However, it seems
to be the accepted view of financiers
that the proceeds of the loan will not be
applied tc the further continuance of
It is understood that one of the in
ducements to a resumption of the nego
tiations was that a considerable portion
of the proceeds should remain in Prance
for the purpose of meeting the interest
coupons of other loans, and that the
placing of contracts for government
supplies will be required even after
the conclusion of hostilities.
Coupled with the announcement of re
sumption of the loan negotiation, came
a strong intimation from official and
diplomatic quarters that steps looking
toward peace had been definitely taken
Imperial Decree Directs Internal Loan
St, Petersburg, March 25.An im
perial decree directs the minister of
finance to issue a 5 per cent internal
war loan of $100,000,000. Of this $50,-
000,000 will be offered for publie sub
RUSSIANS STILL RETIRING
Linevitch Continues RetreatOyama
Not Expected to Attack.
St. Petersburg, March 25.General
Linevitch continues the retirement of
the bulk of his army northward.
The general staff now declares it is
certain that Field Marshal Oyama has
been compelled to relinquish the idea of
RUSSIA TO BORROW MORE