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The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, May 23, 1906, LAST EDITION, Image 1

Image and text provided by Kansas State Historical Society; Topeka, KS

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn82016014/1906-05-23/ed-1/seq-1/

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LAST
EDITI01I.
WEDNESDAY. EVENING,
TOPEKA KANSAS, MAY 23, 1806.
WEDNESDAY EVENING.
TWO CENTS.
rf
JIT 1
r LIBEL
i 1
Much Time Is Devoted to Minor
Details.
Sir. Waggener Finds Himself
Suddenly Drawn Into Case.
COLEMAN ON STAND.
Relates Details of the Comanche
Dond Deal.
Didn't Know Godard Got Money
From State Treasury.
Explains Why He Didn't Prose
cute Jielly.
C. C. Coleman, attorney general of
the state of Kansas, and complaining
witness in the $15,000 libel suit
against Frank P. MacLennan, editor
and owner of the Topeka titate Jour
nal, has been the chief witness at the
trial of this cape in the district court
this morning.
Mr. Coleman was recalled to the
stand shortly after the court resumed
its session at 9 o'clock, and was ex
cused just before the noon adjourn
ment. In addition to setting forth his own
side of the case, Mr. Coleman on cross
vxamination made certain admissions
which were damaging to his position.
Mr. Coleman denied emphatically in
response to questions by his own
counsel that he had received any
profit, or promise of reward of any
kind or character whatsoever, from his
connection with the Comanche county
bond scandal. No charge of this kind
was made by the State Journal, how
ever, in the alleged libelous article. I
Mr. Coleman admitted that he knew
of the charges which were being
made concerning the iooting of the
state treasury and the improper care
cf the state funds, and said that he
did not make any investigation to de
termine the truth of the charges, ex
cept to ask State Treasurer Kelly, who
denied the truth of the charges.
Three letters written by ex-governor
Bailey to Ci Coleman urging him
to begin proceedings against State
Treasurer Kelly, were read this morn
ing. Mr. Coleman said he disregarded
Governor Bailey's requests because he
wanted to wait until a complete re
port on the condition of the treasury
was made, thouirh he admitted that
the statute of limitations thereby was
allowed to run on criminal prosecu
tions. It was also brought out in the
testimony that it was Mr. Coleman
who advised A. A. Godard to return to
the state the $257 which he had re
ceived illegally in connection with the
Comanche county bond case.
One of the strongest points made by
the defense was that Mr. Coleman had
made a very superficial investigation in
to the real character and value of the
Comanche county bonds, before recom
mending their purchase. He admitted
that he got his idea us to the value of
the bonds from the statements of Mr.
Kelly and Mr. Godard, and from his
'general experience" in buying bonds.
He said that he had at no time prom
ised Mr. Godard that the school fund
commissioners should buy the Comanche
county bonds.
Coleman's attorneys attempted to
make it appear that Mr. Coleman had
been so busy trying other cases that
r- had not had time to begin prosecu
tions against T. T. Kelly and Frank
Grimes. They cited the case which Mr.
Coleman brought against B. P. Wag
Kener, one of the attorneys for the de-'
fense. Mr. Waggener turned the tables
on this matter, however, and made Mr.
Coleman admit that the suit was for
the purpose of taking away a fund of
J1.W0 which the legislature had voted
Fhould go to the Brotherhood of Loco
motive Bngineers of Atchison.
There was quite a large crowd in
the court room this morning, of which
a large portion were state house offi
cials and employes. Mr. Burrow and
Mr. Dayhoff were in attendance
throughout the session. State Auditor
Wells was also on hand as a witness.
Indications are now that the case
may continue for some time, unless the
progress is faster than it has been up
to the present time.
The important feature of the Cole-man-MacLcnnan
libel suit Tuesday
was the decision of Judge Dana hold
ing that the story "Black and Ugly"
printed in the State Journal of August
20. 1904, was what the law books call
a "privileged publication."
Privileged publications are those
which are printed without malice, and
for the purpose of benefiting the pub
lic. The court held that as C. C. Cole
man was a public officer the publica
tion of statements calculated to en
lighten the public on his official record
was "privileged."
Charles Blood Smith, attorney for
Coleman, insisted that while the story
may have been "privileged" so far as
the Kansas circulation of the State
Journal is concerned, that the circula
tion of the paper outside of the state
was sufficient to destroy this privileged
character.
Judge Dana showed that he had
studied the point carefully, for he de
livered quite a lengthy verbal opinion
on the point raised by Mr. Smith. He
Baid:
"The real point in this motion is
whether or not the publication is a
privileged one. and I don't know but
what it is a good thine that the point
came up now for settlement, instead
of later. The answer in this case ad
mits that the story was published, and
sets forth the facts substantially as
printed. It alleges that the publication
was made in good faith, and is a
privileged publication."
Judge Dana then spoke of the Chase
county case, which had been cited by
the attorneys. In this case, posters
were stuck up all over a certain
county making charges against a cer
tain candidate for office. It was
claimed that this candidate had con
spired to mutilate the election records
in a certain important, case. The man
who posted the handbills was arrested
and charged w-ith libel. It was showh
that many of the statements in the
handbill were untrue, but the supreme
made In good faith, it was for the
benefit of the public, and was priv
ileged. "It seems to me," continued Judge
Dana, "that this article in the State
Journal involved in this case is priv
ileged The fact that the State Journal
circulates in other states is incidental,
and does not prevent this being a
privileged publication. The motion of
the plaintiff will be overruled."
Tuesday Afternoon's Proceedings.
After Judge Dana had given his ad
verse decision on the motion of the
plaintiff that the jury be simply re
quired to decide the amount of damages
ai d had held positively that the pub
lication of the article about Coleman
was within the class known as "priv
ileged publications," F. L. Williams
opened the case with a statement on
behalf of Mr. Coleman. He read the
whole of the State Journal article head
ed "Black and Ugly," which forms the
basis for the ; Jit.
"While I do not say," continued Mr.
Williams, "that everything in here is
untrue, I do say that anything relative
to a conspiracy so far as Mr. Coleman
is concerned is untrue. This publication
was -not made in goo faith by the de
fendant. The defendant continued to
publish articles defamatory to the plain
tiff for a long time, even after the elec
tion, showin that the publication was
malicious."
"Do you concede that Mr. Coleman
was a candidate for office when this
publication was made?" asked Mr.
Waggener.
"Yes, we will concede that," replied
Mr. Williams.
"Will you concede," aked Mr. Wag
gener, "that these bonds were purchased
on the valuation fixed by the board of
equalization, and not on the valuation
fixed by the county officials?"
"No, we won't concede anything at
this stage of the proceedings," replied i
Mr. Smith. j
"Then, your honor," said Mr. Wag
gener, 'T move for a judgment in favor
of the defendant on the ground that
the plnininf was a candidate for office,
and that the publication was, privileged."
"Overruled," said Judge Dana.
Mr. Waggener then made his state
ment to the jury. He reviewed the case
fully, and brought out clearly the salient
features. He said in part:
"The p.aintiff was a candidate for the
office of attorney general. The law pre
vented the school fund commissioners
from buying bonus in any county where
the bonded debt is already 15 per cent
of the assessed valuation. This law was
made for the purpose of protecting the
state school fund from every possibility
of loss from bad investments.
"The evidence will show that A. A.
Godard and C. C. Coleman were close
fiiends, and that Godard was something
of a bond speculator. H. B. Kelly of
Topeka was also a bond buyer, and Mr.
Kelly offered to the state school fund
commissioners an issue of $123,000
worth of 6 per cent Comanche county
bonds. This offer was refused by the
school fund commissioners."
Mr. Waggener then told hof the as
sessed valuation of Comanche county
was raised by the state board of equal
ization presumably to enable the school
fund commissioners to Invest in the
bonds without violation of the 15 per
cent law. Then he explained how A.
A. Godard had obtained an option on
the Comanche county bonds, and re
funded them at 4M; per cent; how the
school fund commissioners agreed to
buy the 4Vi per cent bonds, and how
the $123,000 worth of bonds were placed
in the hands of T. T. Kelly by Mr.
Godard to secure a loan of $125,000 in
state funds made by Kelly to Godard.
Mr. Waggener continued:
"We expect to show you that this en
tire transaction was under the super
vision and advice of C. C. Coleman. Mr.
MacLennan was publishing the Topeka
State Journal, and I doubt whether he
had even a slight acquaintance with
Mr. Coleman. He simply said to his
readers, 'Here are the facts. Tou can
judge for yourself whether he is a
proper man for this important office.'
And I do not think Mr. Coleman was
greatly injured. At least he was re
elected to the office of attorney gen
eral." Mr. Williams then made a statement
in rebuttal, by permission of the court.
He said that the assessed valuation of
Comanche county was raised to make
that county the same as neighboring
counties.
"If Mr. Kelly extended the credit of
the state treasury to Mr. Godard it was
without the knowledge of Mr. Cole
man," continued Mr. Williams.
Mr. MacLennan the First Witness.
Charles Blood Smith then called' F.
P. MacLennan, editor and proprietor
of the State Journal, as the first wit
ness on behalf of the plaintiff, Cole
man. "What was the circulation of the
State Journal in August, 1904?" was the
question.
"Between fifteen and sixteen thou
sand," replied Mr. MacLennan.
"Your paper circulates outside the
state?"
"To a small extent."
"You have an agency in New York
city?"
"Yes, an advertising agency."
"They have the paper there, don't
they?"
"Yes, they keep it on file."
"The same is true in Chicago, isn't
It?"
"Yes, we have an agency there."
"You send papers to Nebraska, Mis
souri, Colorado, and other states?"
"Y"es, but mainly to exchanges."
"Any subscribers in Indian Terri
tory?" "Yes, a few."
The object of this examination was
evidently for the purpose of establish
ing the iact that the alleged libel had
been circulated outside of the state of
Kansas. r
George W. Martin, secretary of the
State Historical society, was called. He
was simply used to identify files of the
State Journal for the years 1904 and
1905, taken from the Historical so
ciety. Coleman on the Stand.
Attorney General Coleman was
sworn. He gave his residence as Clay
Center, and his age as 51. He had
lived at Clay Center since 18 71, and
his occupation has been that of lawyer
since 1SS5. He was admitted to the
bar in 18 1 S. He stated the circum
stances of his election to the office of
attorney general, and his connection
with the work of the board of school
fund commissioners. Mr. Waggener
then cross examined the witness.
"Bv what majority were you elected
in 1902 ?"
"About 40,000."
"And by what majority in 1904?"
"I should say about 60.000."
"How long have you known the de
fendant?" "About five years, slightly."
"You never had any personal trouble
with him?"
"No personal or verbal trouble."
"Who told you these Comanche
bonds were for sale?"
"My first information was from Mr.
H. B. Kelley about June 1. It was a
written communication."
"That is the 6 per cent bonds?"
"That's correct."
"What was that communication?"
"Tt r-F-r, vrt $ p.r cent bonds at
par and interest."
"Can you produce that communica
tion?" " Yes, sir."
"Did you have any talk with Mr.
Godard about these Comanche county
bonds ?"
"Yes, early in June."
"That was after your talk with Mr.
Kelly?"
"Yes, sir."
"You knew it waa charged that the
bonds were fraudulently issued?"
"I knew it was claimed they were."
"When did you next hear of these
bonds."
"When they were offered by Mr.
Godard to the board."
"Who was present?"
"Mr. Godard, Mr. Dayhoff, and my
self, I think."
"Did you examine the valuation of
the county at that time?"
"I did. I found that the state board
of equalization had raised the valua
tion." "When w-as that done?"
"I don't know."
"Did Mr. Godard make any state
ment about the valuation?"
"He said the board had fixed the
valuation, and It was high enough."
"Was there ever another instance
when bonds had been purchased dur
ing your administration when the val
uation was fixed by the board of
equalization ?"
"I think not."
"How many bonds were purchased
during your administration?"
"About a million dollars a year."
"Did the board ask you for an
opinion as to which valuation should
be taken?"
"Not officially."
"Did Mr. Nation talk to you about
it?"
"Yes, we discussed it."
"You voted to accept the propo
sition?"
"Yes, sir."
"Did you talk about the value of the
bonds ?"
"Yes, in a general wav."
"Did Mr. Godard tell you that he
bought the bonds below par?"
"No, sir."
Didn't Know of the Loan.
"Did you know Mr. Godard worked
this transaction through the state
treasury?"
"I did not"
"After you heard of it did you take
any steps to recover the money?"
"Yes; about four months ago. I
called on Mr. Godard to refund the
money after the Morris report."
"Did you take any steps to pros
ecute the state treasurer for the un
lawful use of this $123,000 of the
state's money?"
"I did not."
"Then the only inquiry you made
about the value of the bonds was from
Godard?"
"I talked to H. B. Kelly. Mr. Kelly
said that he was thinking of refunding
the bonds but that owing to somebody's
ai tion he would not. He said 4Vi per
cent bonds for 30 years were as good as
6 per cent bonds for 16 years."
"Did you agree with Mr. Godard prior
to July to buy those bonds?"
"I did not."
"Why aid you postpone action ' on
those bonds from July 21 to August 11?"
"We had an informed rule not to pur
chase bonds until they were ready for
delivery."
"Did you examine one of these bonds
before you voted to buy, to see if it
was in the proper form?"
"I did not."
Mr. Waggener showed Mr. Coleman
the bond purchase record from the state
superintendent's office, and asked him
t' state what the records showed about
the Comanche county bond deal on July
21 and 22. No record was made on
this date. The record of the purchase
on August 11 was introduced in evi
dence. Mr. Coleman explained that the board
contracted to buy the bonds on July 22,
and carried out the contract on August
11. ITo record was made of the deal
until August 11.
"What record was made about accrued
interest?"
"I don't know."
"This record says that the bonds were
purchased at par."
"What is the last entry on that page?"
asked Coleman.
Mr. Waggener found an interlineation
showing that $636 was to be paid as in
terest. "Don't you know that that interlinea
tion was made after this State Journal
story was Iirinted?"
"I don't know."
"Isn't that made in a different kind
of ink?"
. "I don't think so."
Williams Reads Extracts.
Mr. Coleman was then excused from
the stand.
F. L. Williams then commenced to
read extracts from C. C. Coleman's
scrap book of clippings from the State
Journal. The purpose of this was to
prove that the State Journal has been
moved by malicious motives in its at
tack on Mr. Coleman. Some of these
were extracts from other papers, re
printed in the State Journal. Others
were editorial items.
Mr. Waggener objected to the in
troduction of these clippings, but the
objection was overruled.
"All right," said Mr. Waggener. "If
you want to so into Mr. Coleman's of
ficial record, we will meet it. We had
hoped to try this case on the merits
and issues Involved. But we serve
notice that we will so into the Cole
man record if this is brought into the
case."
Before court adjourned Mr. Wag
gener asked that Mr. Coleman be re
quired to bring into court all the let
ters sent to him by Governor Bailey
and Governor Hoch concerning' the in
vestigation of shady transactions in the
office of the state treasurer and his re
plies to those letters.
This Morning's Session.
When court convened this morning F.
L. Williams resumed the reading of edi
torials in the State Journal, all of which
were published subsequent to the "Black
and Ugly" article of August 20. 1904.
Mr. Waggener then recalled C. C.
Coleman to the stand.
"At the time of the purchase of these
bonds from Mr. Godard," said Mr. Wag
gener, "were there any Comanche coun
ty bonds in the school fund?"
"I found out subsequently that there
were two Comanche county bonds, for
$1,000 each, bought 30 years before and
marked fraudulent."
"Any Comanche county school dis
trict bonds?"
"Yes. some, in which the principal
was defaulted.
"You knew of this at the time when
you purchased the Comanche county
bonds?"
"Yes, sir."
"Have you ever seen Attorney General
Williams' report on Comanche county?"
"I saw it printed in one cf the pa
pers." "Did you not know that the legisla
ture had appointed a committee to in
vestigate the organization of Comanche
' I think not."
"Did you read the opinion of the su
preme court on the matter?"
"I think so."
"You knew the court held that the
original bonds were fraudulently is
sued?" ;
"Yes, sir."
"Did you investigate the population of
Comanche county?"
"I don't remember. I did not investi
gate in detail."
"In your experience you have found a
large number of defaulted bonds in the
school fund, have you not?"
"Only one instance of county bonds,
but a number of school district bonds."
"These editorials which have been
read seem to charge . ou with failure
to bring suit against state officers.
Have you ever begun such suits?"
"Yes, last summer after the First Na
tional failure, against the treasurer and
bondsmen."
Knew of Unlawful Acts.
"Did you know that the treasurer had
issued checks on banks for state
funds?"
"I knew it."
"You knew it was contrary to law?"
"Yes."
"Did you bring any action against
Kelly?"
"No. I told him I thought it was an
unwise thing to do:" ,
"And you knew it was unlawful to de
posit state money in the banks?"
"I knew it was unwise."
"You knew it waB embezzlement?"
"Well, I thought it 'was a doubtful
procedure."
"You did not bring any legal pro
ceedings?" "No."
"Was the Rowett report transmitted
to you?"
"Governor Bailey sent me the re
rjort in three sections."
"Did you take any legal steps?"
"I talked to Governor Bailey, but
took no action in the courts."
"Was the report correct?"
"I found it so where I investigated."
"Did it show any unlawful ac
tions?" "It showed some actions during
Kelly's administration which were vio
lation of law.
"You were satisfied that these
transactions were in violation of law?"
"Of course I was." .
"You were supposed to enforce the
laws, were you not?"
"I was."
"You had the evidence, did you
not?"
"I did not. The Rowett report
showed where to get the informa
tion." "Did you try to get this informa
tion?" "I did. and found that certain let
ters were In the possession of a New
York bank. They refused to let me
see them."
"There was a way to get them, was
there not?"
"There might have been by a civil
action, but I did not think it was pos
sible to bring a civil action."
Read Letters from Governor Bailey.
At this point W. P. Hackney took
the witness and had him identify cer
tain letters received by . Mr. Coleman
from Governor Bailey. He read these
letters to the jury.
Mr. Waggener' resumed "his cross
examination, using the Bailey letters
as a basis.
Governor Bailey sent three letters
to General Coleman, each letter ac
companying a portion of the Rowett
report. The letter of October 11,
1904, says, in rart.
"Upon this showing made by the
state accountant and his assistants,
there is a serious and grave condition
existing in the accounts of the state
treasury, covering a period of nearly
six years, and calls for prompt and
vigorous action from those charged
with the enforcement of the law. You
are therefore hereby officially direct
ed and required to take charge of the
matters raised by the accountant's re
port and to represent the state in any
and all actions and in any and ail
courts necessary to recover this money
to the state treasury and to bring to
justice those who are responsible for
the shortage. Should you desire in
the prosecution of this case the
assistance of other counsel, if you will
notify me thereof I will see that it is
promptly furnished."
The letter of October 29 says in part:
"You will notice that two of the items
from Pratt county represent the cou
pons that were sent to the fiscal agency,
at the same time the Garden City cou
pons were sent. From the evidence at
hand it is apparent that Treasurer Kel
ly must have knowledge of who re
ceived this money and I feel that it
is due yourself, as well as the execu
tive department of the state, that vig
orous measures he used to bring the
facts to light in order that Justice may
be done."
On January 6, 1905. Governor Bailey
sent his last communication to General
Coleman in which he said:
"At the time of submitting two for
mer reports, I urged upon you to begin
without delay to recover to the state
this money. Up to the time of writing
this letter, I have no information, offi
cial or otherwise, that you have taken
any steps in the matter whatever. This
is a matter of sincere regret to me and
I believe also to the great majority of
the people of Kansas, who look to
those whose duty it is to enforce the
law to protect the good name of our
state. You are familiar with many of
these items, as shown in Exhibit A,
Schedule 2, and have expressed to me
in personal conversation your opinion
that the money could be recovered to
the state.
"I wish to again urge upon you, and
in so far as I have authority to do so,
to Instruct you to proceed without de
lay to bring such action as is neces
sary to recover to the state the money
that is due and to bring to justice
those who are responsible for the
shortages."
Criminal Action Barred.
"Why did you delay 14 months in
beginning action against Mr. Kelly?"
aBked Mr. Waggener.
"The difference between Governor
Bailey and myself was this," said Mr.
Coleman. "He wanted me to bring suit
at once and I wanted to wait until
the report was completed."
"Have you not waited long enough
for the statute of limitations to run
against action?"
"No, sir. I satisfied myself that the
statute of limitations does not run
against the state."
"For embezzlement?"
"Oh no. it runs so far as criminal ac
tion is concerned. I was speaking of
civil action."
"Each conversion of funds was a sep
arate criminal action, was it not?"
"Yes, sir."
The Rowett report was then intro
duced in evidence, and J. G. Waters
read from the report. After the reading
of the report had continued for about
30 minutes, the attorneys for the plain
tiff consented to consider the whole
report read, thus allowing it to be used
(Continued on Page 6.)
BIG OfJES Oil RACK
High Officials in Pennsylvania
System Called.
Appear to Answer Charges of
Discrimination.
PHY INTO THE SECRETS
Will Try to Find Out More
About Coal Carrying Deals. .
Revelations of P.ast Week Point
to Conspiracy.
Philadelphia, Pa., May 23. High
officials of the Pennsylvania railroad
are among the witnesses who will be
examined during the investigation this
week of the interstate commerce
commission into the alleged discrimi
nation by the receivers in the distribu
tion of coal cars. The proceedings
were resumed today.
The revelations last week when a
number of. Pennsylvania railroad of
ficials admitted accepting gifts of stock
in various soft coal mining companies
impelled the commission to subpoena
more important officers in an effort to
determine the extent of the secret
business relations alleged to exist be
tween the railroad and certain coal
companies.
The witnesses to be examined dur
ing the hearings this week include
Captain John P. Green, first vice presi
dent of the Pennsylvania railroad;
William A. Patton, assistant to Presi
dent Cassatt at Philadelphia; Robert
Pitcairn, assistant to President Cassatt
at Pittsburg; Congressman George F.
Huff, president of the Keystone Coal
and Coke company; John Lloyd, presi
dent of the Columbia Coal Mining
company; J. Howard Patton, a coal
man and a brother of William A. Pat
ton; Theodore N. Ely, chief of motive
power; J. K. Newhall, purchasing
agent of the Pennsylvania railroad; J.
K. Johnston, superintendent of the
Tyrone division; Victor Wirman, su
perintendent of the Amboy division; J.
N. Purviance, chief clerk to William
A. Patton; C. A. Wood, chief clerk to
the general superintendent; David
Steele, assistant trainmaster, Pittsburg
division; A. E. Fitlock, Charles Gulp,
H. C. Hunt and C. A. Busch.
As a result of the investigation
minority stockholders of the Pennsyl
vania railroad are said to be consider
ing plans to bring about a more thor
ough probing through the state legis
lature. Such an investigation would
include an inquiry into all the details
surrounding the contracts for steel
rails, engines and other equipment
made i.i the last five, or six years. The
present investigation is limited by the
Tillman-Gillespie resolution to the
relations of the railroads to the coal
and oil Industries.
Patton on the Stand.
The entire commission sat for to
day's hearing. The first witness was
W. A. Patton. President Cassatt's as
sistant. He was asked what interest
he had in coal companies. He enume
rated the various companies in which
he held stock. Concerning the Key
stone Coal company shares, of which
2.500 were in his name, he said he
got the stock by purchase and
through the merging with the Key
stone company of smaller companies
in which he was interested. Five
hundred of the shares, he said, be
longed to his brother, J. Howard Pat
ton, who is interested in coal proper
ties in western Pennsylvania, Mr.
Patton explained that he held stock
in five companies which were con
solidated with the Keystone and
through that transaction secured his
holdings in the Keystone company.
Mr. Patton proved an unwilling
witness when questioned about his
holdings in the Atlantic Crushed Coke
company, and repeated efforts were
made by Mr. Glasgow to draw a posi
tive statement as to whether he had
paid any actual cash for his 4 00
shares in the company. Mr. Patton
explained that he became interested
in the land purchasing company
through J. Howard Patton, who repre
sented the Interests of Col. George F.
Huff. When the land was purchased
he said the investors were obligated
to pay their pro rata share, but as
there had been no losses it was not
necessary to pay in cash.
"You got that obligation back,
didn't you?"
"I did in stock."
"Were you required to pay anything
toward the purchase of the land?"
"I stood to lose, and had it been
necessary would have paid my share."
Senator Cockrell here interrupted,
saying:
"It seems to me to be an easy mat
ter for you to say you went into a
speculative deal; that none of you
paid any cash, and that the corpora
tion was responsible for the purchase
price. I do not see the necessity of
beating about the bush."
"As a matter of fact," said Chair
man Knapp, "you took the risk but
did not lose anything."
"I was an investor," replied the
witness, "and was treated the same as
other investors."
Concerning the Huron Coal com
pany, Mr. Patton said he thought he
had 500 shares, but was not certain,
which he acquired in the same man
ner as his holdings in the Atlantic
Crushed Coke company. He was asked
if he ever held stock in the Columbia
Coal company. He said he had at its
organization, but it became a selling
company instead of an operating
company and he sold his stock to a
Greensburg, Pa., banking company.
"What bank took it?"
"The Cassatt bank."
In the Greenwi.ch company Mr.
Patton said he had 1,000 shares. He
said he was obligated by note to the
amount of $20,000 for the purchase
of the land. The money was guar
anteed by Mr. Huff's bank at Greens
burg. Witness said he got the money
back through the sale of the bonds.
Concerning the Cochran Coal com
pany, Mr. Patton said there were 3.000
or 4,000 acres of undeveloped coal land
and "some of our people" suggested to
Thomas Cochran the desirability of de
veloping it.
"Asked what he . meant by "some of
our people," witness said bankers and
brokers and others who might be in
terested in the development of the land.
Mr. Patton said he was obliged to the
fContlnupfl on Pare S.)
THREE PUT IN 0
Rebate Cases Are Combined for
Convenience.
Burlington Officials Charged
With a Conspiracy.
TAKING OF TESTIMONY.
Commenced Today in the Kansas
City Federal Court.
Question of Paying Kebates on
New York Shipments.
Kansas City, Mo., May 2 3. The tak
ing of testimony in the first of the
rebate cases to come to trial here was
begun today in the United States dis
trict court.
George H. Crosby, former traffic
manager of the Burlington railway, is
charged with having conspired with
George L. Thomas, freight broker of
New York city, and L. B. Taggart. his
chief clerk, to pay rebates to shippers
or receivers of freight in Kansas City
on shipments from New York, New
Jersey and other eastern points in 1904
and 1905. Thomas and Taggart are
charged with having conspired to vio
late the interstate commerce laws of
1887, by procuring rebates from rail
roads on shipments from New York
and other eastern points to Kansas
City.
The cases against these three men
have been combined for convenience.
AUTOMOBILE SCANDAL.
Claims Aggregating $157,000 for Use
in Frisco Are Filed.
San Francisco, May 23. The extor
tionate charges for automobile hire
during the first two weeks following
the fire is likely to develop into a scan
dal of huge proportions before the fin
ance committee finishes with auditing
the accounts. In the tabulated state
ment filed with the committee of 40 on
Saturday there appears a charge of
$157,593.80 for automobile service. It is
a well known fact that there are not
more than 1,000 machines in San Fran
cisco and that all of them could be
bought outright for a sum not much
in excess of the amount charged for
the hire of probably half of that num
ber. Only 129 claims were presented to
cover this sum. The average rental a
day was $35 but in many instances the
charge was even higher. What the
committse will do with this item is still
undetermined. In the same table is a
statement of charges for milk, butter,
eggs, bread, vegetables, drugs, hay,
grain and clothing. The total cost for
these necessaries does not equal the
cost of the hire of automobiles. Some
of the garages have relieved the com
mittee from embarrassment by gener
ously donating the amount of the de
mand to the relief funds.
LOSS OF A MILLION.
Fire Does Great Damage
banks, Alaska.
to Fair-
Seattle. Wash., May 2 3. A special
to the Post -Intelligencer states that
the entire business section of the town
of Fairbanks, Alaska, was destroyed
by fire which started in the Fairbank
building, a three-story frame struc
ture,., at 4 o'clock yesterday afternoon.
Details of the disaster are very
meager, but it is feared that the food
supply of the town has been destroyed
and great suffering may result.
Nothing was left standing in the
section lying between the water front
and Third avenue and Stacey and
Turner streets. The work of the fire
fighters was centered on the block of
warehouses owned by the Northern
Commercial company in order to pro
tect the food supply of the town, and
the result is still in doubt.
The loss is estimated at a million
dollars, and it is announced that the
heavier business interests of the town
are already planning to rebuild. No
lives were lost.
JUST A TRACE OF RAIX.
Then the Mercury Marched Right Up
to the 80 Mark.
There was just a trace of rain this
morning but not enough to hinder for
a moment the upward flight of the
mercury which stood at 65 at 7 o'clock
and has steadily climbed towards the
top of the tube every moment since
that time. The sun has been shining
brightly most of the day, and the in
tensity of the heat is magnified by
the humidity which has caused many a
gasping pedestrian to remark, "This is
surely the hottest day so far this year,"
but at that it is not as warm as sev
eral others have been by a number of
degrees.
The same forecast which has been
issued daily for more than a week,
"showers tonight and" tomorrow," is
again given out by . the weather de
partment. When taken to task about
the inaccuracies of his predictions for
the week. Weather Observer Jennings
said
"Those predictions are made for
the state of Kansas and not for any
particular locality and have been veri
fied in nearly every instance that they
have been made during the past week
or ten days. For there has not been a
day during this time that the state has
not been visited by showers, and in
several instances they have been so
general that they almost constituted a
general storm. For instance yesterday,
rain was reported from 12 out of the
14 stations in Kansas, ranging from a
trace at one station to a precipitation
of one and sixteenth hundredths of an
inch at Wichita, which makes a mighty
heavy rain storm. A rising temperature
may be expected ail over Kansas to
morrow with local showers and thun
der storms."
The temperatures for today have
been.
o'clock.. 65
o'clock 68
o'clock 70
o'clock 72
11 o'clock 73
12 o'clock 74
1 o'clock 77
2 o'clock 80
Girl of Four Tears Killed.
Pittsburg, Pa., May 23. Katharine
Clutter, aged 4 years, was shot and
killed at Homestead today by her 6-year-old
brother, who used an old re
volver which they found and which
was not known to be loaded.
Will Not Hare Himself Ap
pointed Senator.
Wants Delegations for Candi
dates to Stay at Home.
IN PECULIAR POSITION
Successor Will Be Elected Next
Winter.
Doesn't Desire to Favor Any
Aspirant.
Gossip and bets that Governor E. W.
Hoch would have himself appointed oa
United States senator for Kansas to
succeed Joseph Ralph Burton, by re
signing the office of governor in favor
of Lieutenant Governor Hanna, if the
vacancy occurs as it probably will, were
settled this morning when the governor
said in response to a question on the
matter: -"No, I cannot take the posi
tion under any consideration. It is im
possible." He could not be pressed into giving
his reasons. Neither would he say
what man would be given the prize
from the host of candidates who have
pi-esented themselves to the people of
Kansas and have been urging their
respective causes fur months, or ever
since it was seen that Burton could
not under any circumstances stand tor
re-election.
"I do wish to reiterate my previous
position however," said the governor,
"and that is that I do not care to lis
ten to delegations of workers from dif
ferent candidates, coming in here all
over the state. I do not want that
done."
There has been much gossip over the
state and in the newspapers that the
governor might have himself appoint
ed United States senator from Kansas.
Much talk has gone on concerning the
probability. This is the first time that
the governor has ever come out with a
statement that he will not take it.
"The senatorial place is a great thing
for a man," he said. "To my mind it
is greater than the presidency, or more
desirable in a great many ways."
Wants to Be Governor.
But more he would not say of the
matter. A close friend of the governor
says that Koch wishes to be governor
of Kansas two more years. Should he
have himself appointed, he would
have to resign and naturally perfect a
deal whereby he would get the place.
It is said that the governor is de
sirous of getting on the lecture plat
form. He has a marked ability for
the public platform and would doubt
lessly be a great success and in con
stant demand. .
It is a genera! opinion about the
state house, but one that is not' ex
pressed for publication, that the senate
will declare Burton's place vacant and
that the governor will have to appoint
a successor. The matter is not to
Hoch's liking, it is said, because the
term expires next March, and the leg
islature will have to elect a man for
the next six years. The governor's,
friends say that he does not wish to
take part in the matter at this time,
for fear that it might be construed as
interference in what will happen next
January when the legislature meets.
The governor would say nothing on
this point, except that he will take no
part in the election of the next senator.
"There shall be no interference from
this office on that score." he said. "The
legislature will look after the matter.
I have always followed that plan and
shall do so in this instance."
The governor was busy at his desk
looking over the accumulated mail of
yesterday and this morning. He spent
Tuesday at his home. He is still suf
fering from the slight attack of pneu
monia which he had last fall, and is
unable to free himself from a succes
sion of bad colds which he has con
tracted. Attacks Vm. Alien White.
To the question as to any new phase
of the "Katy" lawsuit matter, for
which he was attacked by William
Allen White, the governor took occa
sion to give the Emporia editor a
"skinning." "White can write some of
the most nonsensical, silly, idiotic stuff
ever put on paper." he said. "If White
were to confine himself to sentimental
writings he would be all right, but
when it comes to business and prac
tical everyday affairs he does make
some of the most ridiculous statements
ever put into print. The whole mat
ter is laughable, it is idiotic."
VIC MURDOCH WINS.
His Alcohol Bill Reported Favorably
in the Senate.
Washington, May 23. The denatured
alcohol bill was ordered reported fa
vorably today by the senate committee
on finance.
There were numerous amendments
made to the bill, largely intended to
prevent a reduction of the internal rev
enues by reason of the act. Provision
was made that it shall go into effect
January 1. 1907, instead of within thre
months after the passage of the mea-
ure. No limitation was passed upon the
size or capacity of the still at which
the denatured alcohol is to be manu
factured. MAY BE A 'LYNCHING.
Three Wichita Negroes in Danger for
Beating Up a Citizen.
Wichita. Kan., May 23. To avoid a
possible lynching three negroes, "Bud"
Gibbs, Leonard King and Peter Dunn,
were hastily removed from the police
station this afternoon and placed un
der a strong guard in the county jail.
The negroes were arrested at noon
on the charge of probably mortally beat
ing and robbing William Sutton, a
prominent grocer of $343 Saturday night.
King confessed to Chief of Police Cub
bon. implicating one negro not yet ar
rested. Threats of violence are heard
all over the city and trouble is feared
tonight.
Weather Indications.
Chicago, May 23. Forecast for Kan
sas: Showers tonight and Thursdagrj
rising temperature.

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