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Los Angeles herald [microform]. (Los Angeles [Calif.]) 1900-1911, November 22, 1910, Image 3

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Persistent link: http://chroniclingamerica.loc.gov/lccn/sn85042462/1910-11-22/ed-1/seq-3/

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GET-RICH-QUICK-MEN JAILED
CABINET OFFICER
MAKES BIG RAID
Firm Charged with $50,000,000
Fraud Said to Have<Had
Offices Here
CALIFORNIA CONCERNS NAMED
Get-Rich-Quick Operators Said to
Have Fleeced People Out
of $100,000,000
(Continued from Pace One)
and held In $20,000 bail each. The gov
ernment charges the firm sold between
$40,000,000 and $50,000,000 of mining and
oil stock worth little or nothing.
Charles I* Vaughan, a director of the
Continental Wireless Telegraph and
Telephone company, Incorporated in
Arizona, was taken in the second raid
and held in $10,000 bail. Inspectors suy
his company sold stock amounting to
at least $1,000,000 which has brought
no ' return to investors. Vaughan is
treasurer of the Columbia Finance com
pany, which acts as fiscal agent of the
Continental company, and had charge
of the Continental office In this city.
Both raids today are further evidence
that the government in Its warfare
against alleged interstate swindlers
means business, and no longer will be
content with Issuing fraud orders deny
ing them the usa of the mail, but will
press for convictions of the criminal
charges. - ■
After the raid Postmaster General
Hitchcock gave out a memorandum
concerning the Burr Brothers company,
which was organized several years ago
and in 1907 was incorporated with a
capital of $100,000, later increased to
$300,000. * ■ *
The memorandum states that among
other companies the Burr Brothers are
selling the stock of the Buick Oil com
pany, a concern with $5,000,000 capital.
The memorandum further states:
COMPANIES INVOLVED
"They have also organized the fol
lowing oil companies: Carolina Consol
idated, capitalized at $1,000,000; Coa
llnga Alladln, capitalized at $1,000,000:
Western, capitalized at $750,000;
New York-Coalinga, capitalized i at
{500 000; Coaling© Crude Oil. capital
ized at $400,000: People's Associated OH
company, capitalized at $1,000,000.
"All the stock in these companies has
been sold except a portion of the first
named two, and the greater portion or
the money evidently has gone Into the
hands of Burr Bros.. Inc.
"While all the companies are still In
existence, none save , the first four
named is doing any work at th© pres
ent time. -/
"The Burr brothers have also organ
ized, promoted and sold the stock In
the following mining companies:
"Rawhide Tarantula, capitalized at
$1,000,000. • ■'"■'"■■„ ■■' ,",
"Montezuma Mining and Smelting
company, capitalized at $1,000,000. ; ..
"Golden Fleece Mining, Milling and
Refining company, capitalized at $600,-
Af\t\
"Practically the entire stock in these
companies has Laen sold to the public,
and at the present time all have gone
out of business. ■' * ■
"The Burr brothers have also organ
ized, promoted and sold the stock of
the following companies:
"Ellesmere Farm of Michigan.
"California Eucalyptus Timber com
pany, capitalized at $1,000,000, and the
New Amsterdam Securities company,
with a capital of $100,000, which was
later merged with the Burr brothers,
Inc.
SEI/I- STOCK IN CONCERNS
"They have also sold large amounts
of stock in the Red Top Mining and
Leasing company, capital $1,000,000.
"Long Beach, Mexico and Arizona
Mining company, capital $1,500,000
"Nevada Goldfleld Mining, Milling
and Smelting company, capital $5,
--000,000. . _,
"United Standard Lead and Zinc,
capital $1,000,000. .
"Florence Consolidated Mining ana
Leasing company, capital $1,000,000.
"Round Mountain Central mining,
capital $1,000,000.
"Cobalt Portage company, capital
$1,000,000.
"British-American CopjSer Mines ana
Smelting company, capital $5,000,000.
"Arizona Copper Gold mines, capital
$1,000,000. „ ._ ,
"Searchlight Canina Gold Mining
company, capital $1,000,000.
"Holcomb Automatic Engine com
pany, capital $5,000,000.
"Cottonwood Copper company, capi
tal $1,000,000.
"All of these companies are out or
existence.
"They have sold stock in the Happy
Jack Mining and Development com
pany, capital $500,000.
"Yukon Basin Gold Dredging com-,
puny, capital $1,006,000.
"Toledo, Wabash & St. Louis railroad,
capital $6,000,000.
"Chicago-New York Electric Air Line
railroad, capital $2,'«00,000, in connec
tion with the Co-operative Construc
tion company, capital $1,000,000. The
latter named companies are in exis
tence at the present time. They also
sold the stock of the Vitak company,
a $1,000,000 corporation which is now
in the hands of a receiver, and they
now arc alao engaged in the sale of
lots in Lincoln, N. J.
"It can safely be said they have sold
stock at par value from $40,000,000 to
$50,000,000 in the various companies;
have an extensive suite of offices In
the Flatiron building in this rity and
at times have had offices in Cleveland,
Chicago, Los Angeles and San Fran
cisco. Arrests are expected in Cleve
land, Chicago, Los Angeles und San
Francisco, where the corporation hag
extensive offices.
SI.ICVTIIS BEGIN CAMPAIGN
The present campaign began some
months ago and has resulted in the
arrest of Louis A. Cella of St. Louis
and his associates, charged with
operating a string of bucketshops; the
officers of the United Wireless com
pany, of the El Progroeso Banana com.
pany, of the United Exchange of Chi
cago, of the Steel-Miller cotton firm of
Corinth, Miss., and of more than sixty
other firms in all parts of the country.
Postmaster General Hitchcock esti
mates the public haa been fleeced out
of at least $100,000,000 by get-rich-quicK
concerns in the last five years; but he
says their heyday has gone. He said
today that other arrests, Involving cor
porations that has sought Investors
throughout the country, were expected
shortly.
"The arrest today by postofflce In
spectors of tho principals in two im
portant companies. Burr Bros., with
offices in the Flat iron building, and the,
Continental Wireless company, Trtth
headquarters at 56 Pine street," said
the postmaster general, "constitute two
more cases In the series of Investiga
tions which postal officials have been
making In their crusade against the
fraudulent use of the mail.
$100,000,000 IN FRAUDS
"With tho work accomplished today,
seventy-eight cases have been brought
to a head within a year. It is esti
mated the swindling operations of these
seventy-eight cases have filched from
the American people In a period of five
years more than $100,000,000.
"The crusade now in progress la the
result of a carefully laid plan of some
months ago, the first step In which
was a thorough reorganization of the
Inspection service with the selection of
a new postoffice Inspector. When cer
tain changes, and reorganizations were
effected instructions were issued to
the newly assigned lnspector-ln-charge
to take up and prosecute vigorously all
pending cases of fraud.
"Owing to the extent of those cases
and the large amount of work involved.
It was necessary to detail a consider
able portion of the force of Inspectors.
"In order to strike at the root of
this evil the department directed Its
agents to go after the men higher up
In these gigantic schemes to defraud,
and to allow no influence, however
powerful, to prevent the proper punish
ment of the offenders. Through the
assistance of the attorney general the
full co-operation of his department was
secured In the successful carrying out
of this crusade.
VAST SYSTEM OF FRAUD
'As the work of Investigation pro
.ceeded, it became apparent the fraudu
lent use of the mail was far more ex
tensive than had been realized. A vast
system of fraud, as far-reaching in Its
ramifications as the postal service It
self, had been developed by unscrupu
lous men, who through the grossest
forms of misrepresentation were steal-
Ing from tho people millions of dollars
annually.
"These fraudulent operations have
not only swindled thousands of Inno
cent Investors, but have created a '.ack
of confidence in legitimate business en
terprises. It is therefore as important
to the business community to 1 have
these frauds stopped as It Js to tha
people whose losses are directly trace
able to thorn.
"Formerly the procedure In such
fraud cases was entirely different. It
was the practice to Issue a fraud order
against the guilty concern. This
method proved ineffective; while it de
prived the offending concern of the use
of the mall, It was a simple matter for
Its operators to reorganize under a new
name and thus evade the laws.
SKKK PKIXCIPALfI' ARREST
"In the department's present crusade,
the practice has been to proceed im
mediately to the arrest of the princi
pals In the fraudulent enterprises, the
object being to secure prompt convio
tion and imprisonment.
"The results already accomplished
present only the beginning. The work
of Investigation and prosecution will
proceed with all possible vigor until
the swindling of the people through
tha use of the mail ends."
The specific charge against Vaughan,
set forth in the complaint of William
B. Robinson, postal inspector, is that
on June 4, 1910, he devised a scheme
to defraud Walter N. Altman of 2001
Clay street, Topeka, Kas., "and divers
other persons" by fraudulent use of the
mall. It is alleged he falsely repre
sented that the Continental Wireless
was to operate and control other com
panies, and woifld be in a position to
obtain Immediate revenues.
Carter R. Kesne, postal Inspector,
told the story of Continental Wireless.
ORGANIZED IN ARIZONA
The company was organized, he said.
In Arizona on October 1, 1909, with a
capita] of $5,000,000, but did not begin
operations on a largo scale until May
of this year. ■ „,
It obtained control of the Collins
Wireless Telephone company, the Pa
cific Wireless Telegraph company, the
Clark Wireless Telegraph-Telephone
company and the Maasie Wireless com-
The Columbia Finance corporation
was organized to market the stock, and
an ambitious selling campaign was car
ried on all over the country.
The Collins Wireless company was
organized In the District of Columbia
with a capital of $1,000,000. The capi
tal of the Clark compawy was $25,000,
--000; that of the Pacific company $10,
--000 000 and that of the Massio $300,000.
The purpose of the consolidation, as
announced in a booklet issued by the
Continental Wireless, was to give the
company a wide field of operation and
to give Investors an assured Invff.t
ment in a "conservatively capitalized
corporation."
BICH MEN IN COMPANIES^
The Collins company, said Inspector
Keano. had its headquarters for a num
ber of years in Newark, N. J., where
a Frederick Collins, a wireless invent
or, had his laboratory.
The Clark company was organized
and controlled by Thomas E. Clark, an
electrical engineer of Detroit.
The Pacific company had its head
quarters at Los Angelea.
The Massio company was organized
by Walter W. Massie, an electrical en
gineer of Providence. R. I.
In a circular sent out from the Con
tinental headquarters in this city there
were given the names of the first sot of
officers. F. T. Davis of Philadelphia
was Hated as president, A. L. Vaughan
as vice president and treasurer, Massie
a3 director of the operating department,
C B Walter as secretary, Clark as
general manager and Collins as tech
nical director.
Samuel D. Bradford, a promoter of
the Pacific company, was given as
manager of the Pacific coast depart
ment They constituted the board of
directors, with these additions: Frank
Ford, a banker of Detroit; N. A. Haw
king, business manager of a Detroit au
tomobile company; A. C Jessup, a
New York steel man; A. J- Lauer, sec
retary of a brewing company of Au
burn, N. V.; Fred Shoemaker of Seat
tle- Gen. Joseph E. Stepplebeln of At
lanta; Max Loewenthal of New York;
Henry W. Lee, a Chicago publisher;
Sylvester Sullivan of New York; Geo.
k M Davis of Wilmington, Del.: Isaac
Gans of Washington and Judge Edwin
r cochran of Wilmington, Del. ,
Several officers resigned after the con
cern got under way. President Davis
was retired and was succeeded by
Bradford Vaughan. Directors Lauer,
Shoemaker and Cochran resigned, as
did Mr. Massie and Mr. Clark.
ADVICE OF TAFT FOIXOWKD
President Burr of Burr Bros, was not
In his office when the raid was made.
Inspectors found him later, and when
arrested he remarked quietly:
"It's all ended."
None of the prisoners could furnish
ball and all spent the night In the
Tombs.
Assistant District Attorney Dorr said
under the new law in effect January 1
of this year the maximum for a single
fraudulent U3e of the mail is five years'
imprisonment, and that the offender
could be charged wtlh a violation, for
every letter j.roved to have been sent
through the mall.
After the raid Inspector Reddy was
sitting In Burr Bros.' offices whan tho
LOS ANGELES HERALD: TUESDAY MORNING, NOVEMBER 22, 1910.
telephone bell rang and David Bulck
called up from Flint. Mich., ho said, to
ask for particulars about the raid and
what its effect whs lfkely to be. When
Reddy declined to give any informa
tion, Buick, he said declared he was
coming to New York Immediately.
Branch offices of the Burr Bros, at
Bakersfleld, Cal., Los Angeles and Se
attle were closed by tho postal au
thorities several months ago.
FORMER BURR OFFICIAL
ARRESTED AT PORTLAND
Preston Held in $15000 Bail on
Mail Fraud Charge
PORTLAND, Ore., Nov. 21.— E. W.
Preston was arrested here tonight on
a warrant charging him with using
the mail to defraud. The arrest, ac
cording to tho federal officials, is In
connection with the raid made in New
York today on Burr Bros.
Preston was arrested as he was
transferring from a train which ar
rived from Spokane to the San Fran
cisco train.
Information of his arrival and a re
quest for a warrant for his arrest
came to United States Marshal E. B.
Coldwell today from the postofflce in- i
spectors, who were watching Preston. ;
Preston's ball was fixed at $15,000,
which he was not able to furnish.
Prewton says he has at present no I
connection with Burr Bros., and has
not been interested in any of their
properties since July last. To that
time he had been vice president and
field manager of the Coallnga Aladdin
Oil company. Now York Coallnga
company, Coallnga Crude Oil company,
Consolidated Oil company and the
People's Associated Oil company, all
of Coalinga, Cat., and the Kern West
ern company of Bakersfleld.
Preston says all of these were Burr !
properties. He states he has never
had anything to do with the sell'nc:
of the stock of these companies and
that he never intentionally made any
report that could be used to promote
the sale of stock.
Preston's bail was fixed at $10,000,
which was furnished. Preston was
on his p-ay to Coalinga, Cal., from ,
the east when arrested.
INSPECTOR INVESTIGATES
BROKER FIRM IN BAY CITY
SAN FRANCISCO, Nov. 21.—Several
complaints against the local offices of
Burr Bros, were made some time ago
to Chief Postal Inspector Hall of the
California division, but before any in
vestigation could be made C. H. Tobey,
manager of the San Francisco branch,
removed the offices to Now York.
Subsequently Postal Inspector Booth
of New York began an Investigation
here of the companies which Burr Bros,
were promoting. Thia investigation
was concerned chiefly with the oil
companies promoted by the firm and
the results which were embodied In a
report which Booth submitted to the
postmaster general two weeks ago.
Postal Inspector Hall declared today
that Tobey had not attempted to sell
any stock here and that from his In
vestigation he was satisfied that prac
tically all of the stock was disposed
of In the east.
The postal authorities Jiere have not
been requested to make any arrests,
and It is not believed that any offi
cials of tha brokerage firm are in this
state.
DEFENDS BUICK PROPERTIES
CHICAGO, Nov. 2L—Benjamin F.
Moffatt, manager of the Bulck OH
company here, said the company's
properties were all above board and
In good standing. Our properties In
tho California oil belt are open to
public Inspection. Our connection
with Burr Bros. Is unfortunate, he
said.
ELEANOR SEARS SOARS
WITH GRAHAME-WHITE
Fair Blue Bloods of Boston in a
Cloud-Cutting Caper
PHILADELPHIA, Nov. 21.—Miss
Eleanor Sears of Boston and Miss
Violet Ridgway, well known in so
ciety here and in New York, were
passengers with Claude Grahame-
Whlte in his Parman biplane in flights
today at the meet of the Aero Club of
rennsyiYama.
Clifford B. Harmon, the amateur
flyer, also made his first flight here.
Mr. Harmon took up Samuel King, the
veteran balloonist, for a short flight.
Ideal aviation weather prevailed and
aeroplanes were aloft practically the
entire afternoon at the grounds at
Point Breeze.
Grahame-White made a trip to
League Island in his biplane and de
feated an automobile driven by Har
vey Ringler in a four-mile .race, cover
ing the distance in 7 minutes 46 sec
onds.
The English aviator also made a
flight in his Bleriot monoplane.
CRUISER WITH PRESIDENT
ABOARD ROLLS IN TEMPEST
AT SEA, ON BOARD THE UNITED
STATER STEAMSHIP MONTANA,
Nov. 21 (Via Wireless).—President
Taft on the return home from Pan
ama and Guantanamo, was in reality
upon a high sea yesterday when tho
United States cruiser Tennessee and
her convoy, the Montana, were tossed
about by a northwestern storm off tho
northern coast of Florida.
For hours the vessels battled
against a forty-mile gale. The presi
dent demonstrated that he is a good
sailor and thoroughly enjoyed the
blow.
When the storm struck the speed
of both vessels was reduced from sev
enteen to fifteen knots. Early today
the gale decreased and in a fresh
breeze the vessels steamed with re
newed speed toward the capes. It is
expected Cape Hatteras will be
reached early Tuesday and that the
president will disembark at Norfolk
Tuesday noon.
JEALOUS MINER KILLS RIVAL
JACKSON, Cal., Nov. 21.—Enraged
by the sight of Maria Cavnllero, whoso
affections he sought, dancing with his
rival, Stephen Piscone, John Sampo,
employed at the Fremont mine just
outside of Drytown, made an attack
on the girl and her companion in her
father's house Saturday night, and
after knocking out the electric lights
with a chair, pursued piscone to the
road and it is alleged beat him on the
head with a pistol butt, killing him.
Sampo and two companions who are
accused of having aided him have
been arrested.
BURR BROTHERS ARE
A PRODUCT OF KANSAS
I-EAVENWORTII, Kan. >*ot. 81.—
haltan and Kußene Burr were born and
rrnred here. Hhelton left here, twelve
yearn ago, locating In the. eaiit. Ills
brother Kiißfne wan In hu»lne«» here for
a time, hut later went ea»t also.
They were son* of Henry S. Burr, who
for many jean had a (hoe factory at
the Knn»»« penitentiary at banning.
COUNTY REPRESENTATIVES
SEEK REVISION OF RATES
Riverside, San Bernardino and
Imperial Counties Form
Union for Protection
SAN BERNARDINO, Nov. 21.—The
, Trl-Counties Freight Traffic association
', was organized here today by repre
sentatives of the business and agricul
tural interests from Riverside, San j
Bernardino and Imperial counties, j
George M. Cooley of this city was]
chosen chairman. He will appoint an i
executive committee, the membership
of which will include a representative i
from this city, Riverside, Imperial, i
Redlands, Highland, Ontario and
Rlalto.
The association will present to the
Interstate commerce commission a list I
of commodities on which they wish ]
rates reduced. This list will be backed j
1 up by the joint efforts of the business j
interests of the three counties and a |
determined fight made for recognition, j
The association also decided to for-1
ward an experimental shipment of
lemons by water to New York. General
Traffic Manager J. W. Chapman of tho
California Atlantic Steamship line en
couraged this shipment, stating tho
rate would be 76 cents a hundred
pounds, or 40 cents less than the rail
roads' new rate for lemons.
TELLS JAP MERCHANTS
THEY ARE NOT TRUSTED
Minister Oura Reports on Visit to
America and Europe
SHANGHAI, Nov. 21.—Baron Oura,
Japanese minister of agriculture and
' commerce, who paid a visit recently to
; JEurope and America, has apparently
been telling his countrymen truths
which he gathered in the course of his
wanderings. The Japanese, he is re
ported to haVe said, are thoroughly
distrusted in the commercial circles of
the west.
In Lyons nine silk merchants out of
every ten had to tell of dishonest prac
tices on the part of Japanese habutae
manufacturers, and in London the
same story was told. A merchant of
the latter city states to the baron that
he had proposed to order a quantity of
porcelain on the strength of samples
shown at the Japanese exhibition In
London, but when It became known
that he contemplated such a transac
tion he was approached by a third
party, who offered to do the same work
for less than half the price. Aston
ished by tho proposal, he Instituted In
quiries and found that both parties
were untrustworthy.
Another illustration was furnished
by the case of embroidered screens.
Numbers of these could be sold a few
years ago at high prices in London,
but defects of manufacture had driven
them almost completely out of the
market. As for the exhibition, one
principal reason why things had not
sold well was that -people seemed to
think when the exhibition closed the
unsold articles would be offered at a
tithe of the prices now marked on
them. Until trust was re-established,
said Baron Oura, there would be no
sensible development of Japan's over
sea trade.
SOLDIERS ACCIDENTALLY
SHOT DURING MANEUVERS
GENEVA, Nov. 21. — During the
maneuvers in the Canton of Thurgovie
the One Hundred and Twenty-fifth
battalion stormed a hill near Menzen
grut occupied by another battalion.
About a hundred yards from the top
two soldiers fell wounded. It was
found that one of them, named Nadler,
had been shot through the neck, and
his companion through the leg. Nad
ler, who had been married only three
weeks ago, expired a few minutes later.
A soldier named Boecklin of Zurich,
who had obtained possession of six ball
cartridges and in the excitement of the
moment had fired them, has been ar
rested and confessed.
POLICE PATROL AUTO
HIT BY STREET CAR
The University police patrol auto,
while making a "hurry" run at 1
o'clock yesterday afternoon, attempted
to cross in front of a Pico street car
that was running at high speed. The
car crashed into the patrol with ter
rific force and Driver A. J. Harris of
the auto was thrown into the street.
Neither Harris or a patrolman who was
with him was injured, but the auto
patrol was badly smashed. No one in
the street car was hurt and no arrests
were made.
CRIPPEN'S LAST HOPE GONE;
TO BE HANGED WEDNESDAY
LONDON, Nov. 21.—Dr. Crippen's
petition for a reprieve was denied to
day, the home secretary announcing
he declined to' interfere with the sen
tence of the court.
Crippen will be executed on the
morning of November 23.
Officials of Scotland Yard today de
nied the report said to have been cir
culated in the United States that Dr.
Crippen had made ajsonfession.
PROHIBITION IN NEW ZEALAND
WELLINGTON, N. Z., Nov. 21.—The
government has created a surprise by
brirtging in a licensing bill. Including
a proposal for national prohibition, if
55 per cent of the voters are In favor
of it. The bill provides that if na
tional prohibition is enforced intoxi
cating liquor shall not be Imported
Into, manufactured in, or sold in New
Zealand.
R.R. RATE BOOST
BLAMED ON WASTE
Attorney Brandeis Charges That
Roads Could Save $1,000,
--000 a Day by Economy
ARGUMENT ON RAISE OPENS
Lawyer Declares: Make Stock
holders, Instead of Consum
ers, Pay for Mistakes
[Anociated Press]
WASHINGTON, Nov. 21.—The ship
pers ha-i their inning today in the
contest before the interstate commerce
commission over tho proposed increases
in freight rates on eastern trunk lines.
Their contention was that the real
solution the railroads need for greater
net income lay In scientific manage
ment.
This was the burden of the whole
day's proceedings, the only witness
for tho railroads being President
Joseph Ramsey of the Ann Arbor rail
road, the former head of the Wabash
system, who defended the proposed
increases as vitally necessary in view
of increased cost of operation and ma
terials.
The hearing will continue through
the week and the commission will not
be prepared to decide the case, which
involves an Increased tariff on several
thousand articles, until well into next
year.
The shippers' case Is in charge of
Louis D. Brandeis of Boston, repre
senting the commercial organizations
of the Atlantic seaboard, who sprang
his "scientific principle" doctrine In
his statement of the case at the open-
Ing of today's hearing. His witnesses
were H. K. Hathaway and James
Mapes )odge of Philadelphia, both
heads of big manufacturing concerns.
Mr. Hathaway testified tifi joined the
Philadelphia concern in 1904, with the
especial purpose of Installing the
scientific idea in tho plant, and that
since the change the cost of production
h*ul been reduced about 30 per cent
and the business transformed from a
losing to a profitable venture. His
testimony was largely devoted to a
detailed description of the minute
workings of his system.
"How does the output In 1904 com
pare with that of today?" asked Mr.
Brandcla, seeking to show the advan
tages of the "scientific system.'*
"We are producing three timea as
much," replied the witness.
BOASTS ABSOLUTE FAIRNESS
Mr. Dodge testified the same system
exactly was In force In his plant. His
slogan was "absolute fairness with
the workmen."
He said under the scientific man
agement his company's manufacturing
"digestion was very much better,"
that the company had been able to
eliminate night work and that the ef
ficiency of hia shop was double that
before the Inauguration of scientific
methods.
Mr. Dodge declared that any shop
In the world In a competitive business
that does not vastly Improve Its meth
ods over those of five years ago would
have to go out of business today.
In his opening statement Mr.
Brandeis told the story of the al
leged injustice of the suspended rate
advances when the interstate com
merce commission today resumed its
hearing of the subject of the rate In
creases proposed by eastern trunk lines.
Mr. Brandeis declared the proposed
rate Increases were neither just nor
reasonable, and that greater efficiency
would yield greater income to the rail
roads.
He contended for scientific manage
ment of the roads, and said the rail
roads should co-operate to reduce costs
instead of combining to Increase rates.
He described what he said was the
huge field for the application of scien
tific management and the rich fruit in
economies and improved service which
may bo expected to result; economies
which may reach $1,000,000 a day.
While he promised evidence that
economies in railroad operation are
possible, he said the pending Increase
in freight rates should not be approved
until the subject should have been fur
ther Investigated by the commission on
its own initiative.
He urged such an independent opera
tion because, much valuable evidence
would be available to the commission
which is not available to the shippers.
Including some experiments in scientific
management by the roads.
Mr. Brandels combated the railroad
contention that a new source of income
through increased freight rates must be
found. Instances where such actual
need may appear, he said, have resulted
not from the fact that present rates
are too low, but that the management
has, through reckless expansion or oth
er waste, and through financial ineffi
ciency, impaired the financial condition
of the road, and that the burdens so
oxising should be borne by the stock
holders through reduction of dividends,
and not by shippers and consumers,
through Increased rates.
He charged the proposed horizontal
increase in class rates would burden
the small producer and consumer, that
it makes arbitrarily a sweeping change
of long distance rates which have
largely boon in effect for nearly a gen
eration, that the changes are made
without evidence whether the existing
rates are compensatory, that the
changes affect more than 4000 d fferent
articles made without adequate in
vestigation into the effect upon the
particular industries to which they
apply and that they involve grave in
justice, discriminating unreasonably
in favor of articles to which com
modity rates apply and to some extent
discriminate in favor of local traffic.
Even If the railroads need additional
net income and some raise in freight
rates were a proper means, Mr. Bran
dels argued, the commission should
not approve the particular tariffs now
under consideration.
He declared under sclentinc man
agement the errors would be prevented,
errors and accidents avoided, and that
much of the economy would flow from
a fuller use of plant and equipment
and the lesser employment of work
ing assets.
Ho urgod use of appropriate ma
chinery in loading and unloading
freight, warehousing and accounting,
to reduce expense and congestion of
terminals.
Willie-1 A. Glasgow, Jr., of Phila
delphia filed a brief with the commis
sion today comparing acts or congress
and British railroad leg'slatlon. He
contended that under the amended In
terstate commerce law the I burden of
proof on the carrier would not be dis
charged by proof of increased cost of
operation or apprehended increased
expenditures, but that the carrier
must show that the rate •was Just and
reasonable for the service rendered.
Just as before the act of, congress the
complaining shipper was required to
show that the rate was unjust and un
*•«••«•»•>»'<• fnr tjjo service rendered.
MESSAGES BY WIRELESS
CONVEYED 3889 MILES
VAT.I.K.IO, Cat, Nor. 21.— -A mtiuc«
In transit through the air from Key
West, 1 la., to Norfolk, Va.» mi re
ceived by Operator Benntsh at the United
States station at the Mare Island navy
yard early thin morning. Every word
of a conversation between the two op
erators on the Atlantic coast was dis
tinctly read.
At 2 o'clock tomorrow morning a mes
sage will bn Knit front Mare Island to
Key West, a distance of 3889 miles. It
Is believed by experts here that direct
conunnnlratlon can be established across
the continent.
GIRL TERRORIST GOES
FROM PRISON TO ASYLUM
GENEVA, Nov. 21.—Tatiana Leon
tieff, the Russian girl terrorist, who
in March, 1907, was sentenced at Thun
to four years' imprisonment less six
months, and twenty years' banishment
from the canton of Berne, for shooting
M. Muller of Paris In an Interlaken
hotel in mistake for the Russian min
ister, M. Durnovo, has just finished
her sentence.
Both the Swiss authorities and the
girl's father, who lives at Berne, real
ize that Tatiana is still a dangerous
person, and it has been decided, at
the father's request, that Tatiana shall
be Indefinitely retained at the lunatic
asylum at Munsingen, near Berne,
where she has been for over a year.
The girl terrorist has become more
docile recently, but her brain has given
away, anil she does not even know that
she has served her long sentence. In
future she. will be treated as a private
patient, but there is UUle likelihood
of her ever recovering her reason.
FORGETS NAME OF HOTEL
WHERE HE LEFT HIS WIFE
CHICAGO, Nov. 21.—Coatlcss, collar
less and with necktie missing, Thomas
Falkenberg of Freeport, 111., rested one
tired elbow on the window in front of
Sergt. O'Connor's desk at the Harri
son street police station early today.
"Sergeant, I got a wifo lost In this
town somewhere, simply crying her
eyes out. She loves ham sandwiches,
and that is why she is lost. Or maybe
I am lost," said lie.
"It was this way: My wife and I
got into town and went to a hotel. My
wife got hungry, so I went in search
of some ham sandwiches. I left my
coat and collar and necktie in the room.
That was last night. I got tho sand
wiches, but I forgot the name of the
hotel. I've been looking for that hotel
and my wife all night."
The police are .still looking for the
hotel and wife.
ENGLISH PRESS DETAILING
CAMPAIGN AGAINST PLAGUE
LONDON, Nov. 21.—1f there is any
recurrence of the plague in England
there will bo material handy for a first
class panic. The newspapers are keep
ing people's nerves on edge by elab
orate descriptions of the anti-rodent
campaign being carried on in the
eastern counties, where four cases of
plague have occurred. Rats are being
exterminated wholesale. Thousands are
killed daily with the aid of ferrets.
Plague infected rats have been found
in the London docks. They came off
ships from Indian ports. Now the
hawsers of all ships moored at the
quayside are fitted with a device which
prevents rats from getting ashore by
their favorite gangway.
The eating of hares, rabbits and
other ground game has practically
ceased in London.
FOOLHARDY OFFICER KILLED
BERLIN, Nov. 21.—An exploit recall-
Ing one of Don Quixote's adventures
has caused the death of a German of
ficer, Lieutenant yon Schroder, at
Grossbeeren, near Potsdam. Hearing
that one of his fellow officers had rid
den on horseback between the sails
of a windmill In motion, Lieutenant
yon Schroder attempted the same feat.
He was, however, struck by a de
scending sail, unhorsed and flung a
distance of fifty yards. He died. In
stantly. __^____^______^
Inexpensive Draperies
Five to six dollar curtains at $3.50 —a price cut that
should effect a speedy clearance of this line of Irish poiat
lace curtains.
Handsome designs with heavy applique; some •w.ai
plain centers, some figured centers. All 2\ yards long. All
in Arabian shade, $3.50 a pair.
50-inch silk-and-linen velours in every shade suitable for
portieres, couch covers, table covers and pillows, $3 and
$3.50 a yard.
Another importation of hand-printed East India cotton
gives up an unusually strong showing of these fast color
fabrics in sizes suitable for curtains,' couch covers, table
covers, pillow tops and stand covers. Prices 75c to $9.50
apiece.
25c to 35c a yard for cretonnes, cotton taffetas and dim
ities in the same patterns and colorings used in the more
costly imported fabrics.
36-inch casement cloth in many new patterns and col
orings at 15c a yard.
36 and 40-inch figured scrim, both single and double
faced, for side drapes, 25c a yard.
32-inch kimono silk in many distinctively new patterns,
85c a yard.
Many new patterns in 36-inch Victoria damask and
satin striped dimities at 35c a yard. (Third Floor)
235 m 239 So. Bromdwmr 234-242 So. ttlUSttomt
LORDS GOING TO
SUICIDE-REDMOND
Irish Leader Stamps Proposed
Solution of Veto Bill as
Self-Destruction
HOPELESS DEBATE STARTED
Resolutions to Be Introduced on
Wednesday Present Unionist
Case for Election
(Associated Press)
LONDON, Nov. 21.—The lords today,
presented their case to the country In
the coming electoral struggle—a case
which John E. Redmond, leader of the
Nationalists, In a SDcech as Islington
tonight characterized as "metaphoric
ally committing suicide as fast as pos
sible."
It is understood the resolutions which
Lord Lansdowne gave gave notice ho
would Introduce on Wednesday repre
sent the attitude taken by the Unionist
side In the veto conference and the rock
on which the conference foundered.
The resolutions follow:
"It is desirable that provision bis
marie for settling differences that may
arise between the house of commons
and this house as reconstituted, re
duced in numbers in accordance with
the recent resolutions of this house.
"That as to bills other than money
bills such provision should be mad*
on the following lines:
PROVIDES FOB DEADLOCK
"If a difference arises between the
houses In regard to any bill other than
a money bill, in two successive ses
sions and during an interval of not
less than one year, and sucli differences
are unable to be adjusted by other
means, it shall be settled at a joint
sitting composed of the members of
the two houses; provided, that if the
measure relates to a matter of great
gravity and has not been adequately
t :bmltted to the judgment of tho peo
ple it shall not be referred to a joint
sitting- but submitted for decision to
the electors by a referendum.
"That as to money bills the pro
vision sliould be on the following lines:
"The lords are prepared to forego
their constitutional right to enact and
amend money bills which are of a
purely financial character provided
effectual provision is made against
'tacking' and provided that if any
question arises as to whether a bill or
any of the provisions thereof are" of a
purely financial character, that ques
tion shall be referred to a joint com
mittee of both houses with the speaker
of the house of commons as chairman,
and who shall have a casting vota
only. If the committee holds that the
bill or the provisions In question are
not of financial character they shall be
dealt forthwith at a joint sitting of
the houses."
The Liberals contend the adoption of
these resolutions would render future
Liberal governments as powerless as
ever against the house of lords.
The session of the house of lords to
day was devoted to the veto bill, th«
earl of Crewe Introducing this measure
for a second reading.
Lord Lansdowne, leader of the oppo
sition, after criticising the measure,
moved an adjournment until "Wednes
day, when he promised to introduce the
resolutions which he thought might re
sult in breaking the deadlock of the
two houses.
The country now is too busily en
gaged in preparations for the election
to take much Interest In the doings of
the expiring parliament. Austen Cham
berlain, in a letter published tonight,
declared the maximum duty "the tariff
reformers" will propose on foreign
wheat will be two shillings a quarter,
that colonial wheat shall be free, and
flour taxed somewhat higher to en
courage home milling.
LOOK IT UP
"Th« professor says I am a p«r»on at
extreme segnltude."
"Is that a compliment or not?"
"r'm going for the dictionary now."
3

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