New-York tribune. [volume], November 16, 1906, Image 1

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V*-LXVI... 0 - 21.91-.
PRESIDENT M PANAMA.
CITY'S ROYAL WELCOME.
Bain No Damper— Goes Sailing on
' Hay-Enjoys Trip from Colon.
Kov 15 —President Roosevelt spent a
COl8 dkr « the isthmus of Panama and Is
■""jSed for the night at the Tivoll Hotel.
CCW the line of the canal. He crossed from
rl- to Panama, seeing much of the canal
C T^rZZ Tculebra cut on the way. took
around Panama Bay and aws welcomed
pjama City, which lies outside of the
Z. i .one by President Anwdor and other
«ci!ls cVthe Panama,, Republic. The day.
«d according to schedule, was in every
££ct successful, and no untoward or unex-
incident occurred.
*v rSfl"nt Roosevelt left the Louisiana at 7:30
• inrk this mine and came to the Colon
k Here he was welcomed by Chairman
J., of the isthmian Canal Commission.
if Engineer Stevens and other officials.
<Mle th* school children of Colon sang "The
St Spaced Banner' and "America." A few
1-nents later President Roosevelt was greeted
kt President and Mrs. Amador and the Bishop
a Panama, and at 8:10 a. m th* Indent.
l«d those who had come to welcome him left
Colon for Panama by train.
Th" trip across the isthmus was slow, to per
•t the Residential party to have a good look
all the points of interest along the route.
Several stops were made on the way over, and
jt each station school children came down and
cut; patriotic airs. The President thanked all
the welcoming legations warmly.
The Presidential train arrived in front of the
Tlroll Hotel at 1030 o'clock. Here President
Ainador left the party and went on to Panama,
while President Roosevelt continued to La Boca,
the Pacific entrance to the canal. Here Presi-
£ pnt Roosevelt boarded the steamer Bolivar,
T.ade & trip around Panama Bay and . came
hi k to La Boca for luncheon.
This afternoon the Presld •■ went from La
Boca to Panama City. He drove from the rail
road station to the Cathedral Plaza, and was
welcomed all the way by cheering crowds. At
me plaza President Amador delivered an ad
drefs C f welcome, anil President Roosevelt re-
I'.ied There was then further singing of patri
otic airs by school children, after which the
Fresifont, escorted by the officials of the Pan
aM! , Republic and a bodyguard of two hun-
K>r-K2 mounted -nembers of the Panaman aristoc
racy, returned to The Tivoli Hotel for the night.
President Amador • (pressed his appreciation
of President Roosevelt's visit, which he do
scribfd as an additional cause for the love and
respect of the Panama people. He called Presi
dent Roupevek the commander in chief of the
PanEman-American forces, allied to perform the
greatest engineering feat in the world, and said
that in the hearts of his people there "dwelt the
incelible memory that in President Roosevelt
ihey had found in the past a generous defender."
' In conclusion the President of Panama ex
tended the welcome of the republic to the Presi
dent >■! ;'■ United States, assuring President
Rwifevelt that he could consider himself in the
miist of his best friends and admirers.
la reply President Roosevelt said that the
present was the first time in the history of the
United States that an American President had
placed h'B foot upon territory over which the
flag of the country did nor fly. He said he was
fiad this foreign territory was the Panaman
Republic, and referred to his affection for the
young country.
betid the on the canal was being
(Mrfan ■. He reiterated Secretary
Bears words regarding Panama, saying that
;s S to see the republic ln
■■. until it be
■ • ivhose history *a? refH-''-d
»rld -'if a land of liberty and
.
He voiced a warning agaist revolutions and
ended by saying he was irnnnensely impressed
ly the tr'-meridous undertaking of the canal
and the beauty and fertility of Panama, for
which he prophesied a great future.
President Roosevelt was welcomed with un
bounded enthusiasm by the people of Panama,
and there 1= no eiuestiejn that they are his firm
end sincere admirers. He has conquered them.
tni he holds a high place in their esteem. While,
fusing over the line the Presidential train was
cheered by the crews of trains removing dirt
Jrora the- cut. and in Panama Bay the American
w<c other Bt< amshlps whistled a welcome.
•-- ■ \-.v IS Governor
. ; atch say
ild arrive at
-• • ■ ' instead of on November
there the same r.ight
■ ■ [n ■Is onor.
UOXSOE DOCTRINE ALIVE.
Secretary Root Expected to Say So
in Forthcoming Speeches.
Washington, Nov. in.— Many of the Latin-
American members of the diplomatic corps will
fitt'rr.d the dinner of the Kansas City Commer
cial Club on November i'< and the banquet of
the TransiriiFMssippi Congress nt Kansas City
on November 20.
Mr. Amara!. the Brazilian charge, will repre
sent h! S government, and it Is likely that he
*i'l speak at the Commercial Club dinner,
*fc*re Beore : tary Root also will speak. Mr.
Pardo. the Peruvian Minister; Mr. < 'ortez, the
Colombian Minister; Mr. Calderoh, the Bolivian
Miateter; Mr. Yoacham. the- Chilian chargfi, and
Sir. Calvo. th* Costa Bican Minister, will be
members of the. party going to Kansas City.
Mr Root has prepared an address for the
i"rar. E m!ssi«i r ,,,i banquet v.ith great care, and
It is believed that as the mouthpiece of the ad
fr-ir.ist ration he will at that time voice Presl
°«H Roosevelt's attitude toward the Monroo.
"octrine. "
Mn-e th<=- declaration of Professor Burgess in
«nin. that tho Monroe Doctrine Is practically
rdeiu] letter In the United States '.here has
we* no opportunity for the administration to
ZT H* a<3h£ ' ence to the time honored doc
£?e.but it is believed that Secretary Root will
»!* bimself of thli opportunity to reissu^ the
that .... :
t-onV; P>"T)oses to Pi ■• European r.a
- n- from acquiring territory on this continent
■J5 or less exte-nporaneous. John Rarr-tt
' to Colombia . ■
h<l Congre M
»:as f-Mv l "? f " in^-'^al Club dinner In Kan
0 - pres « niaU « : s of LatlnfAmerl
i^SfeS" ho am^~ th - Weaken, The
"- PRINCETON ' -■■ - {l - -
via ; Vm BPECJAL TRAtf
SS^t w»^ NEW- YORK. FRIDAY. NOVEMBER 16. 1906. -FOURTEEN PAGES
OREGON FLOOD HAVOC.
Portland Cut Off, Railroad* at
Standstill and Bridges Gone.
Portland. »'u-.. Nov. IT. -Portland to-night is
cut off by floods from Seattle, Tacon-.a, Bolling
ha'.n. Spokane and every point north and ea»t
of Kclso. VTash. The rainstorm that swept over
the northwest Pacific ci-.npt last r.isht has great
ly impeded railway traffic. Flooded rivers h«,ve
washed out bridges and wagon roads are lmpaas
able.
A report has reached here that the town of
Catlin, just opposite Keiso. on the Cowlltz
Rive:', has been wiushed away.
A dispatch from Kolso says the Cowlltz River,
which began to rise rapidly yesterday, jumped
to twenty feet above low-water mark this morn
ing, and the big SuO foot drawbridge that spans
the stream between Kelso and Catlin broke from
its fastening!* and joined tha mass of debris
floating down the swollen river.
Nine steamers have left Portland for the Cow
lltz River to recover booms of sawlogs that broke
loose near the headwaters of the river.
The Willamette River, in Oregon, at points
above Portland, rose rapidly yesterday and to
day. It is expected that the stream will cover
the lower piers along the Portland waterfront
before the flood subsides.
At Kent the southern part of the town, two
miles vide, was under several feet of water.
In the heart of th. town the White River has
spread out until it is almost three miles in
width. The business quarter of Auburn is
under water. Th.- residence portion is flooded,
and many persons have fled to tho hills. Sev
eral empty farmhouses have lloated down the
Green and the White rivers.
Huge bonfires light up the hills in the farm
ing country and about them are huddkd scores
of families, while others are fighting desperately
to save their possessions.
Benton ls under water, and the Cedar River
is rushing through the city, taking with it
outbuildings nnd small barns.
Most of the bridges near North Bond have
gone out, and tho town is isolated. All the land
across the Northern Pacific track from North
Bend is under water. The railroad bridge iP Still
intact.
Snoqualamie River ls out of Us banks, and
the town of Snohomish is partly under water,
whi'.e the farmers have been driven to the foot
hills.
It wems rr^hanle that the Pacific division of
the Northern Pacific cannot be operated within
twn weeks. Miles of track are under water and
mnny bridges an' gone.
The storm is moderating.
Mlssoula, Mont., Nov. 1." A telephone mes
sage from Wallace. Idaho, --ays water is four
feot deep on the streets. Rnin has been falling
for several days. There was a terrific wind
storm this morning. Trees were uprooted and
considerable damage was done to small build
ings.
THREE OF CREW DROWX.
Schooner Bound Hither from Maine
Wrecked at Point Judith.
Xarragansett Tier. R. L. Nov. 15.— The Port
land (Me.) schooner Lugano, lumber laden, went
ashore on Point Judith '.ate to-day and three of
her crew were drow ne.d.
The Lugano was* bound from Kennebe.- River
to New York.
SNOWFALL IX CITY.
New York Treated to Taste of Early
Winter.
The first fall of snow, which occurred yester
day. cnTjsei surprise in many quarters, as the
accompaniment of winter was not gen
erally expected. Y°rsr,nt bound early for work
faced a sticky species of near-slush that de
i In clouds. This kept tip all morning.
and at noon it turned into rain. At the Weather
Bureau it war- said that the storm was due and
ti at snow had fallen in this recion earlier than
November 15. and in larg-r quantities.
The fall was caused by a storm which rame
from th«^ south nnd passed over the city to fhe
eastward. At hi on Wedni sday the
centre was over Block 1
which ;i p?.l(- was blowing at the rate <>i" sixty
miles an hour. The first knowledge many of
the la"- risers In the upp- r section of the city
had of the snow was when the sound or sleigh
h.-lls was heard
Brs< Hakes bega ito fall at 7;30 a. m An
hour later the air wa >: i th.- chilly par-
Tr: tin- busln< - f the city ih»
„\> melted as fast as it tell, t>-it In the
it lasted until the afternoon. In tl
j.ari ft the city and on the outskirts some
■ resome persons tried sleighing. Several
were seen In the parl From one to
• ■■. (nches of snow fell, according to
estimates. Traffic about the harbor was some
what Impeded when the storm was at Its height.
but n«. accidents were reported. The local
streetcar service was not impaired. Tl ■
cury reached its highest mark. 4" degrees above
• a r.'i.. and crept down to 35 degree ■■"
. p. m. It hovered around the freezing point last
night. Snow and rain are predicted for to-day.
GOVERNOR S HEALTH CAUSES. WORRY.
His Going Home Starts Alarming Reports,
Which Are Denied.
iy, Nov. i." Governor EUgglns left here
for his home in Olean at noon to-day. It was
not stated when he would return to Albany.
It is conceded by those cloa to the Governor
that his h.-alth has for months been a source
of solicitude to his family and friends, and that
it Is not Improving as thej would wish. Exag
gerated reports were circulated this afternoon
thai the Governor's condition h:<«l become seri
ad that his physician here bad ordered
him home. On th< best possible authority It may
be stated to-night that his trip bom.- to-day
was in accordance with his plans, and that there
is no development to give alarm t i I
or his physician.
BRAVE ATTEMPT TO SAVE MOTHER
Daughter Crawls Along Narrow Ledge to
Reach Dying Woman.
Climbing along ■ ten-incli ledge, three stor.'as
above the ground, Mrs Theresa Turner, of No.
277 West J3oth street, risked her llf" yesterday
)ii a vni:; attempt to reach her mother's r om.
at No. 557 West 120 th street, before !!■<• woman
■ asphyxiation When sh« got the window
open, Mrs. Ellen <'i.->i(,'. her inothi lying
on the floor dead. Mrs Turner arrived a< he."
mother's home yestrday afternoon an<i found
i fiat the door to hei . snt was locked.
There v.;;s ;; strong odor ol gas In th<- hall vay,
and Mi ■. Turner Immedlati Ij beeai
[Tnable. to force th door, and knowing that
every minute v. as val iabl< M ■ Tv ■ r
out i n tic- nai :'■''•■ Ic-dg |v I b nea I h her
mot hei 'a w indow Ira ng <nh >i hand •
and knees, she finally reached the \\ Indow Her ■
i ; i ouble bega n Bhe hud to rele ls
p .ii t h- ledge b nd stand i;:. Su
Ing hei fat I dl appearing
.*. \ olumc of ge poui i■; out ol tho
lost suffoca ing hei ai la t -i •■
id.-, but the ol I • ■■ :i i
lation was Coroner llar
_ verdict
MEN INDICTED IN SAN FRA.NCISCO YESTERDAY.
MAYOR EUOENE E. SCHMITZ.
SUES STAN DAB, D OIL.
ACTIOX BY GOVERXMEXT.
Dissolution of Corporation Ashed
Under Sherman Anti-Trust Law.
St. Louis, Nov. lo. — The United States gov
ernment to-day made the initial move to dis
solve the Standard Oil Company's alleged mon
opoly by filing in the United States Circuit Court
a petition in equity against the Standard Oil
Company of New Jersey and its seventy con
stituent corporations and partnerships and sgven
defendants, including John D. Rockefeller and
William Rockefeller, asking that the combina
tion be declared unlawful and in the future en
joined from entering into any contract or com
bination In restraint of trade.
The suit is brought under the Sherman Anti-
Trust act. which the Standard Oil Company and
its constituent companies and the seven indi
vidual defendants are charged with violating.
In a formal statement Attorney General Moody
says that criminal prosecution is reserved for
future consideration.
The government's petition In the suii is signeJ
by William H. Moody, United States Attorney
General; Milton B. Punly. assistant to the At
torney General; Frank B. Kellogg, Charles B.
Morrison and C. A. Severance, assistants to the
Attorney General. The petition contains 194
printed pages, or about lih>,(hk> words, and an
additional S4 pages of exhibits, consisting of
bylaws and minutes of Standard Oil meetings
and organizations, and a map showing the retail
prices of oil in every state and territory of the
Union.
The investigation into methods pursued by the
Standard Oil Company began early in li»<C».
and the results were laid before Congress last
May by President Roosevelt, who accompanied
the report by a special message, denouncing the
apparent methods pursued. The President as
serted that suits would be instituted in the
T'nlted States courts to abolish the combination,
and the filing of the 6uit to-day marks the in
itial step.
The defendants are entitled to one month in
which to enter their appearance and sixty days
in which to file answer to the allegations in
the petition. They also have *he option of filing
a demurrer to the biiL
MR. MOODY'S STATEMENT.
Mr. Moody's statement follows:
In June last, by direction of the President.
Messrs. Kellogg and Morrison were appointed
by me special Assistant Attorneys General, to
act with Assistant to the Attorney General Pur
dy. to make an investigation of the relations of
the Standard Oil Company of New Jersey to the
business of rellning, transporting, distributing
and selling oil throughout the United States; to
ascertain all the facts and report whether or not,
in their opinion, there has been a violation of
the Sherman Anti-Trust law by the Standard
Oil Company of New Jersey or the persons or
corporations associated with or managing it.
The counsel have completed thnt duty and tho
report of their Investigation has received care
ful consideration by the President and his Cab
inet.
The information available to the department
tends to show thai the various corporations
and limited partnerships under the control, in
the manner hereinafter stated, of the Standard
Oil Company of New Jen produce, transport
and sell about !»<> per cent of the refined oil
produced, transported and sold in the United
States for domestic use, and about the same
proportion of refined oil exported from the
United States; thai this share of the business
has been procured by a course of action which,
beginning in 1870, has continued under the di
rection of the same persons. In the main, down
to the present time; that the* ■ persons now sur
viving are John D. Rockefeller. William Rocke
feller, Henry H. Rogers, Henry M. Finder.
John D. Archbold. Oliver H. Payne and Charles
M. Pratt; that the design throughout of the
persons having control of the enterprise has
been to suppress competition in the production,
transportation and sale of refined oil, and to
obtain, as far as possible, >> monopoly therein;
that between 1870 and 1882 the design was ef
fected through agreements made between many
persons and corporations engaged In this busi
ness: thai in 18'SL' the result aimed at was made
more certain by vesting In nine trustees (in
cluding five of the above named persons) suffi
cient stock in the thirty-nine corporations con
cerned to enable- the trustees to control their
operations in such a way that competition be
tween them was suppressed; that this plan was
acted upon until it was declared unlawful by
th** (Supreme Court of Ohio in an action against
the Standard Oil Company of Ohio, one of said
corporations, In 1802; that during the seven
years following the same individual defend
ants, as n majority of ih<- liquidating trustees,
were pretending to liquidate the trust, but; as a
matter of fact, were managing all of the cor
porations in the same way and exercising the
same control over them; that the Individual
defendants In 1899 Increased the stock of the
Standard Oil Company of New Jersey from $I©.
000,000 to J110.fl00.000: that said company was
then ■■< producing and selling corporation, arid
they added to Its corporate powers the power of
purchasing stock in other companies and prac
tically .''ll of tl; ■ powers exercised by the trus
tees under the unlawful trust agreement of 1883:
that the Standard on Company of New Jersey,
ihen taking the place of the trustees, acquired
nil of the stock of ih. corporations theretofore
hold and controlled by the trustees, paying
therefor by til I sue of Its own shares in ex
chanffe; that the president of the board of trus
tees became tho president of the Standard < 'i!
Company of Now Jersey, and the same persons
(the Individual defendants who j had directed
the business of the trust then assumed the
direction of the business; of (he Standard Oil
Company of New Jersey, and ever since con
tinued It: tb:it the purpose and effect of the use
of the Standard "il Company of New Jersey ns
:i holding company wan precisely, the same as
tbo purpose and effect of the appointment of the
trustees hereinbefore referred to, namely, to
suppress competition between the 'corporations
and limited partnerships whose stock was first
held by the trustees and then by th. Standard
nil Company of >.• <• Jersey: that by the fore
going methods, nlded by the establishment of
railroad rates 'or transportation, which dis
criminated In favor of the corporations whose
Mock was hold by the holding company, that
company hns Ikm n enabled to obtain. In large
rcctionß of the country, a monopoly of the sale
if refill' 'l oil, with the result that th • prices to
„. consumer within the territory where the
monopoly prevails are very much higher than
within Hie territory where competition to soin^
extent 5-tlll exists.
It is believed that these facts, ' (rether with
others contained in the' report of the specinl
rhunseL Justify and requ I reaction by the United
Ffnfa In the courts. Accordingly, a petition In
equit! under the provisions of the Sherman
act, lias this day been filed nfnlnst the Standard
'-'iiutiiiiit-tl ou (earth pace.
ABRAHAM RHEF.
INDICT MAYOR SCHMiTZ.
EXTORTION THE CHARGE.
'Frisco Grand Jury Also Xames
"Boss" Ruef — Five Counts.
San Francisco, Nov. l.~>. — The grand jury re
turned five indictments to-day against Mayor
Bchmlti and Abraham Rnef on charges of ex
tortion.
The first alleged crime was in connection with
the "Poodledog" Restaurant, and the indictment
recites that liuef and Schmlti demanded money
from the proprietor, Tony Banco. As this de
mand was made, it is paid, on two occasions,
two indictments were returned. Extortion, said
to have been practised on Edouard Marchand,
proprietor of Marchand's Restaurant, is the
basis of two more indictments. A demand made
upon Joseph Malfanti, another restaurant man,
is the alleged offence on which the fifth indict
ment was found.
The indictments wire returned for the grand
jury by the foreman, B. P. Oliver. Judge Mu
rasky read the indictments and placed them on
file. He then proceeded to fix the bail at $10,000
for each charge.
Assistant District Attorney Heney two weeks
ago In court promised that the first action taken
by the grand jury would be to accuse Abraham
Ruef of felony. Nothing was then said to Indi
cate that Mayor Schmltz would be drawn into
the scandal. The indictment of Ruef was ex
pected by the public, but they were not prepared
for immediate action against the city's chief ex
ecutive, who Is now on the Atlantic Ocean re
turning from a visit to Europe. For nearly two
years the alleged objectionable relations between
the French restaurants and the municipal ad
ministration have been a subject of public de
nunciation.
These restaurants, which were all destroyed
by the April conflagration, were frequently the
cause of bitter attacks from the pulpit and the
press, the accusations being made that they were
Immoral and a menace to the welfare of the
community. These restaurants were a combina
tion of eating and lodging and drinking houses.
The agitation for their suppression two years
ago apparently reached city officers, and orders
were issued that they be deprived of license,
which would close them. Tho doors remained
locked for a short timo, and then the restaurants
were permitted to reopen with "some restric
tions." Soon the houses were again in full sway
along the old lines.
Newspapers charged that a fund had been col
lected, amounting to thousands of dollars, and
that the money had been paid into official hands
to lift the embargo. The accusations further
alleged that a monthly tax of about $5,000 was
paid by the restaurants for protection. Th«
renewals of liquor licenses were granted by the
police commission, a majority of which was in
accord with the administration of Mayor
Schmltz.
It has never directly been charged that Mayor
Schmltz was concerned with the so-called cor
ruption fund, but no hesitancy was used in con
necting Ruefs name with the alleged illegal
use of money. Ruef. Indeed, admitted that ha
had received fees from the proprietors of the
restaurants, but declared that he acted merely
a* attorney in promoting the Interests of his
clients, whose property rights had been tres
passed on.
According to the first two •nd!<*tments, Ruef
and Pchmitz. on January 15, 1904. extorted
$1,170 from "Tony" Blanco, of the Poodle Dog,
and on February 8. 1904. they forced him to
give up $1,000 more. The third Indictment is
based on the alleged extortion of $1,173 from
the proprietors of Marchand's restaurant. The
defendants are charged with demanding and
receiving on the same day $1,175 from the pro
prietors of the Delmonlco restaurant. It Is
charged that on February 6 they forced these
same men to yield $1,000 by threatening to take
away their liquor licenses.
Sheriff O'Neill said that he would not serve
the five warrants on Ruef to-night, as the
clerical work is so great that he cannot get
them out in time. He says he is still undecided
whether he will ask for the arrest of Mayor
Schmitz when he lands in New York or wait
until he comes to California.
Ren/ called at Judge Murasky's chambers this
evening and presented bonds in $50,000 guaran
teed by the .flStna Security Company. Judge
Murasky approved the bonds, and Ruof wa<!
permitted to go.
LEADS FRISCO FIGHT.
Langdon, a Defeated Candidate,
Upsets Ruefs Plans-.
Mayor Schmitz, who is now serving his s^i nnd
t. Tii. as Mayor of San Francisco, was the con
ductor of th" orchestra in the Columbia Theatre
, Francisco when Abraham Ruef. the po
litical boss, had him nominated to head 'lie
Labor ticket
Schmitz had a small following among thf mu
sicluns' union of tii'- city, and. through th<- powi r
of Ruef. was literally swepi Into office. Ruef
and Schmitz were chums from boyhood
When Schmitz was nomin ited for the second
term by th. Labor party, William 11. Langdon.
who was then Superintendent of Schools, was
nominated on the same ticket for District At
torney. Langdon ran ahead of ins ticket, being
elected by a large maj< rtty
Soon after taking office Langdon refused to
take orders from Ruef, .-im! began a crusade
against gambling resorts, disorderly houses and
slot machines, which were Installed In nearly
every saloon In the city Nearly all the pro
prietors ol these resorts were constituents of
Ruef. Langdon was figuratively turning the
city upside down In bis crusade when the earth
quake temporarily stopped the active tigln
aga inst vi •■
Langdon was hardly In ofTi-'-- three ■'.-.•ks when
;• i arned of the wholesale grafi carried on by
Ruef and ills followers and determined t'i stamp
it out. The work of the grafters was d< •
covertly, however, that considerable time and
monejr would !»■ necessary to unearth it.
it was then thai Rudolph Spreckels, the sugar
man, offered $100,000 to be used In running
tl iwn and prosecuting the grafters. This sum was
added to by other prominent business men, In
cluding ex-Mayor Phelan. Early in November i>f
• ii Langdon, confident thai graft t-xiste.i
among the city officials, called to his aid !•'•
.i Heney, the attorney who caused tin wnfall
of Senatoi Mitchell and sent the Oregon land
Canlluucil uu (t-couil i>u^«.
. Copyright. »M.
by Th« Tribune Association.
CREDIT CURRENCY PLANNED.
Bankers Reach Unanimous Agreement on a Measure
to Relieve Financial Stringency.
WILL RECOMMEND IT TO CONGRESS.
National Banks May Issue Credit Notes Not Exceeding 25 Per
Cent of Capital — Provisions for Redemption and Security.
[From Th« Tribuno Bureau 1
Washington. Nov. 15. — Unanimous agreement
was reached by the currency commission of the
American Bankers' Association to-day on a plan
for emergency banknote Issues to be recom
mended to Congress in December as a basis for
legislation to meet the demand for an elastic
currency. Some of the features of th» plan of
the New York Chamber of Commerce for an
issue of an emergency circulation were adopted,
notably the system of credit notes issues and the
deposit of public money above a reasonable
working balance in naiional banks. In other re
spects tho proposed bill is original, and the
whole represents the combined thought and
study of nearly a score of leading bankers act
ing officially for about eight thousand financial
Institutions in all parta of the country.
The unanimity with which the agreement was
reached augurs well for the enactment of the
pla-.i recommended at the approaching session of
Congress, and the members of the commission
aft^r adjournment to-day expressed the confi
dent hope that Congress will give the desired re
lief, which, they say. is as much in the interest
of the public as It ls to insure the business of
blinking against stringency due to an inelastic
currency.
Secretary Shaw and Controller Ridgely. who
have been present at meetings of the commis
sion, were informed this afternoon of the basis
of agreement reached, and the principal feat
urea of the plan adopted seem to meet th© ap
proval of th^ fiscal officers of tho government.
who have more than once urged reform in the
currency laws to meet modern colMitions.
ISSUE OF CREDIT BANK XOTfflS.
The plan agreed upon contemplates the issue
under government supervision of credit bank
notes by national banks equal to 4*) per cent of
their bond secured circulation, subject to a tax
of 2' a per cent per annurru an automatic In
crease of credit notes under certain conditions;
a further issue of credit notes equal to llii* per
cent of a bank's capital, at a tax of ii per cent
per annum; the establishment of a guarantee
fund for the redemption of credit notes of failed
banks; provision for active dally redemption of
credit notes; repealing existing law limiting the
retirement of bond secured notes to $3.«3OO,OOO
a month; and the deposit of all public moneys
above reasonable working balances in national
banks without collateral security, on which tha
banks are to pay 2 per cent.
In the report to the members of the American
Bankers' Association, which is signed by the
fifteen members who have been attending tha
meetings, the statement is made that there is
unanimity of opinion that changes in the ex
isting banknote system are imperatively re
quired, and that the present volume of bank
notes is wholly unresponsive to the demands of
commerce. It does not, the report says, expand
with the need for currency in the crop moving
period— causing stringency — nor contract when
the usese for currency are less extensive, caus
ing redundancy. Banks are under the necessity
of parting with their reserve- money to supply
the demand for currency at certain seasons, al
though that demand would be quite as well sat
isfied If banks could supply their credit notes
instead of depleting their reserve and causing a
contraction injurious to business.
To meet this situation the National Banking
act. the report says, -hould be so altered as to
permit under ample safeguards the i?su» of
credit banknotes which would automatically ad
just the volume to the demands for currency.
Such notes can be issued under provisions which
will insure absolute safety to the noteholder
and an ample supply of currency to the public.
THE COMMITTEE'S REPORT
The report gives a series of principles which
were agreed on by the bankers, and which, they
believe. underlie "a correct solution" of the cur
rency problem BO far as it relates to the issue
of a banknote currency. The repnrt says:
We therefore unanimously recommend th« en
actment into lav of the following, having the
firm conviction that thereby will be provided a
banknote currency safe beyond peradventura
and automatically varying in volume as needs
national
bank having been actively doing business for
otTyeaVand having a surph- road HWal ••
PEARY SHIP FOGBOCXD.
The Roosevelt Delayed by Heavy
Weather on Labrador Coast.
Halifax. N. 8.. Nov. 15. A dispatch to The
Aviated Press from Chateau Bay. Labrador,
announces the arrival there at 6 o'clock this
evening of the Arctic steamer Roosevelt, which
hart l.em delayed by heavy weather further up
the coast. v ,
The steamer is fogbound at Chateau Bay. and
is expected to sail to-morrow morning for Syd
ney.
DRIVER RUNS AUTO WILD.
A. P. Stokes Chauffeur Nearly
Kills Several Persons.
| Hy THi|l Mtl lo The Tribune. 1
Stamford. Conn.. Nov. 1& — After ■ hard strug
gle In which several lives were endangered.
Edward W. Flnney. of New York, chauffeur
for Anson Phelps Stokes, of New York, was
arrested here to-night and charged with drunk
enness, reckless driving and disorderly con
duct. Mr. Stokes allowed him to remain la
jail.
Finney has been employed by Mr Stokes two
weeks. He was engaged to run his new French
car. which cost $80,000. He left Brick House.
Mr.' Stokes's country home at Collender's I\>lnt.
this moon early and ran into Stamford to
havt the car repaired. After stallln< the car at
Hi, fool of Noroton Hill and springing the
front axle in a collision with ■ stone wail, he
zlexasKed up the hill, a menace t.« passing vt
nlcles^and Bireetcan Police headquarters were
informed^ "-ml Chief Brennan and Patrolman
Gonoud Jumped Into another automobile ant
hurried to the scene. They found Finney on
Jh B top of the iii!!. He refused to leave the
machine. Brennan attempted to pull him out
of the car. Flnney tried hard to start the
machine and a fight ensued. The car had al
ready started down the steep hill. whvi>J'ren
nan "overpowered the chauffeur and ."hut off the
power. Finney sr/d that he had taken a large
Uuso of uuiniue aftd whiskey for a cold.
PRICE THREE CENTS.
20 per cent of Its capital shall have "authority
to issue credit notes as follows, subject to the
rules and regulations to be determined by the
Controller of the Currency:
(a) An amount equal to 40 p<>-.- ..»rct of its
bond secured circulation, subject to a tax at
the rate of 2H per cent per annum upon th»
average amount outstanding. Provided, that if
at any time in the future the present proportion
of the total outstanding unmatured United.
States bonds to the total capitalization of all
going national banks shall diminish, then tha
authorized issue of credit notes shall be la
creased to a correspondingly greater percentage
of its bond secured notes.
(b) A further amount equal to 12*4 per cent
of us capital, subject to a tax at the rate of
5 per cent per annum upon the average amount
outstanding In excess of the amount first men
tioned.
The total of credit notes and bond secured
notes shall not exceed the capital.
2. RESERVE.— The same reserves shall *•
carried against credit notes as are now required
by iaw to be carried against deposits.
3. GUARANTEE FUND.— taxes provided
upon credit notes shall be paid in gold to tha
Treasurer of the United States, and shall con
stitute a guarantee fund for the redemption
of notes of failed banks, and for the payment
of the expenses of printing and the cost of re
demption. In order that the guarantee fund
may be ample from the beginning-, any bank
making application to take out credit notes for
issue shall deposit with the Treasurer of th»
United States In gold an amount equal to 5
per cent thereof. The unused portion of this
initial payment shall be an asset of the contrib
uting banks respectively, and shall be refunded
from time to time when this may be done with
out reducing the guarantee fund below an
amount equal to 5 per cent of the credit notes
taken out.
4. REDEMPTION-.— The Controller of th»
Currency shall designate numerous redemption
cities conveniently located In the various parts
of the country. Through the agency of th»
banks in such cities adequate facilities shall be
provided for active daily redemption of credit
notes.
5. The provision of existing law limiting th*
retirement of bond secured notes to $3,000
a month shall be repealed.
6. All public moneys above reasonable work-
Ing balance, from whatever source derived
shall be currently deposited from day to day in
national banks without requiring collateral se
curity or special guarantee therefor, but in no
case shall the balance carried with any bank
exceed M per cent of the capital thereof. All
banks receiving such public moneys on deposit
shall pay Into the United States Treasury Inter
est thereon at the rate of 2 per cent per annum.
VIEWS OF BANKERS' COMMITTEE.
James R. Branch, secretary of the American
Bankers* Association and secretary of its cur
rency committee, who has attended all the meet
ings of the bankers, made an explanatory state
ment after the fathering adjourned giving th«
opinion in popular language of the members of
the bankers' committee of the operations of tho
proposed bill. This statement, in part, sets out
the following;:
The provision limiting the issue of credit notes
to 40 Der cent of the bond secured circulation
and not exceeding 25 per cent of the capital
stock Is for the purpose of preventing any ten
dency by banks to sell government bonds, now
held to secure circulation, in order to avail
themselves of the new circulation. Such action
is taken because it is desired that the measure
proposed if enacted shall not lend to depress th©
market for government bonds. No part of tha
assets of banks are to ha specially pledged to
secure the credit notes, but they are to be pro
tected by the same legal reserve now required
against deposits — in reserve cities 25 per cent.
and in country bank?. I." per cent. The mem
bers of the committee think that the claim of
the credit notes of a failed bank upon Its assets
should not be given a lien prior to that of rh
depositor?, but that the guarantee fund, with th»
addition of a pro ram claim upon the assets
with the depositors, would afford adequate pro
tection. The members believe that the tax on
the note issues will create a guarantee fund
many times larger than necessary to meet th«
notes of failed banks.
The committee of the Bankers' Association
was made up of representative financial meat
from all over the United States, with A. B. Hep
burn, president of the Chase National Bank of
New York, as chairman, while the committee
from the Chamber of Commerce was composed
of Frank A Vanderlip. of the National City
Bank of New York, and Charles A. Conant. ot
th" Morton Trust Company. Before adjourn
ing finally to-day, a committee was appointed,
consisting of Mr. Hepburn. James B. Forgan. of
Chicago, and John L. Hamilton, of Hoopeston.
111 . to draft a bill for presentation to Congress
which will embody the ideas expressed In th»
statement made public by the committee of
bankers to-day. This committee will cosier
with Chairman Fowler of the House Currency
Committee. Controller Rldgely and other Treas
ury officials in the preparation of the bill.
FIRE PAXIC IX THEATRE.
Chorus Girls at Circle Greatly Fr
cited Over Little Blaze.
A small fire which broke out in the Circle
Theatre, at Broadway and 60th street, shortly
before 7 o'clock last night started a panic among
the chorus girls of the company. Th© loss by
the fire was less than $50. but there was enough
smoke to thoroughly frighten the girls.
It started In the women's retiring room, which
opens off the first balcony of the theatre, and
defective. insulation is believed to have started
it. Smoke was discovered by a man in th»
street, who rushed into the building and soU th«»
ticket seller. One of the ushors located the fir©
and called upon his fellow ushers to help him.
The impromptu tire brigade wen: to work and
had the flames practically controlled when th*
tire engines arrived.
PHYSICIAN HELD IP.
Dr. J. 6'Neil Robbed mmd Beaten
by Three Men.
For more than ten minutes last night, shortly
before midnight. Dr. James O'Xell. of No. 1.">5
East 35th street, battled with three armed men
at I'lUh street, near First avenue. The physician
fought with the men until overpowered, and was
then knocked down, robbed and beaten. He got
up again and caught one of the men. but was
overcome with a blow on the head from a black
jack. His injuries were treated at Bellevua
Hospital. The assailants escaped.
Dr. O'Nell had been to see a patient in First
avenue, below 111 it street, and was on his way
in Bellevue when he was set upon by th<? three
men. Just after he had turned off First ave
nue the men crept behind Mm. and two of the: a
caught his arms and held them.
Although he fought desperately. Dr. O'Neil
wa.- no match for the three Several detectives
ire working on the .a 3 .-.