New-York tribune. [volume], July 13, 1910, Page 4, Image 4

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RUSSIA AND IAPAN
M. IK MANCHURIA
f >v\ Treaty Regarded as Piedce
of Peace and Stability in
Far East.
MAINTAINS THE OPEN DOOR
State Department Finds No Dis
crimination Against American
Commercial Interests —
No Secret Treaty.
(From Thft Tribune Bureau.!
Washington, July 12.— The text of the
treaty between Russia and Japan re
garding their interests in Manchuria was
given to the press by the State Depart
ment to-day. With it v.-as made public
the substance of the communications of
Baron Vchida and Baron Rosen, the
J-apanese and Russian ambassadors,
who, according to their instructions, ex
j reps the hope that the Secretary of
Ftate irfll find in the convention re
affirming the peaceful relations of Japan
and Russia, and directed neither against
the interests of China nor of any other
power, ■ new pledge of stability and
g-eneral peace in the Far East.
The text of the treaty, which was
signed at St. Petersburg on July 4, fol
lows: . ■
The imperial government of Japan and
the imperial government of Russia, sin
cerely attached to the principles estab
lished by the convention concluded by
them on the '-IT of July. lyul. and de
sirous to develop the effects of that con
vention with a view to the consolidation
cf peace in the extreme East, have
agreed t«> complete the said arrangement
by the following provisions:
•Article I. With the object of facili
tating communication and developing
the commerce of nations, the two high
contracting parties mutually engage to
l-?nd each other their friendly co-opera
tion v.ith a view to the amelioration of
their respective railway lilies In Man
churia and the improvement of the con
necting service of the said railway?, and
to ahstain from all competition preju
dicial !o the realization of this object.
Article 11. Each of the high contract
ing parties cngascs to maintain and re
spect the status quo in Manchuria re
sulting from the treaties, conventions
and other arrangements concluded up to
this day between Japan and Russia, or
between either of these two powers and
China. Copies of the aforesaid arrange
■ ments have been exchanged between
Japan and Russia.
Article 111. In case that finy event
crises of. a nature to menace the status
quo above mentioned, the two high con
tracting- parties shall in each case enter
Into communication with each other in
order to arrive at an understanding as
tt the measures they may judge it nec
essaxr to take for the maintenance of
The said status quo.
I. BIATONO.
ISWOLSKY.
Treaty Approved by Great Powers.
Despite the clamor with which the an
nouncement of the signing of the treaty
has been received in various parts of the
world, the State Department's view co
incides with that of Russia and Japan.
It is known also that this view is shared
"by Great Britain, as it is, undoubtedly,
"by Germany. It is apparent that these
powers have been in communication
concerning the treaty, and that each
» has ■• arrived at this conclusion. The
point bt^fiJT of the United States is
• that it^'tjyga.tena neither the open door
nor tilt st-itus quo in the Orient. Out
side a peaXlrmation of the general
principles of • goal opportunity and ter
ritorial integrity so often reiterated in
agreements and conventions among the
powers since Secretary Hpy originated
this diplomatic policy, there is nothing
hut the expression of a mutual effort to
regulate the railroad traffic in their re
spective spheres of influence In Man
churia.
Th«i statements that the present con
vention •«. a.- brought about by Secretary
soar's proposal for the neutralization
of the Manchurian railroads and that a
. secret treaty betnreen the two countrie.%
i more comprehensive than the present
f convention, has been brought about by
the same pressure were specifically de
nied in Tokio to-day by Count Jfomura,
Minister for Foreign Affairs of Japan.
Secret Agreement Denied.
In presenting a copy of the convention
to Ambassador O'Brien he ga\p assur
ance that there was no . further arrange
ment or understanding: not in the d 0 1 1 -
rner.ts. and t that Japan had taken no
step to interfere v.ith freedom in Man
churia and China beyond the points
fixed in thi3 agreement, the whole pur
pose of -.vhich refers to existing rights.
Count Komura also said that the nego
tiations looking to the present treaty
were begun last November. As Secre
tary Knox did not present his neutrali
zation proposal until the middle of the
following month, the assumption that it
brought about the negotiations is with
out foundation.
The convention states that it spring?
from a desire to develop the results cf
the convention of 1007 between Russia
and Japan. The older convention, under
■vhich i±ue latter one was negotiated, re
effirmed the principles of the indepen
dence and Territorial integrity of China*
of equal opportunity and tho pledge to
maintain the status quo. There is noth
ing, therefore, in the later treaty which
can conflict with these policies, nor. as
a result, anything to which the United
States can take exception* on genera]
grounds.
£0 far as the specific effect of the
treaty goes it will, it is believed, not
conflict with the interests of the United
States as guaranteed under other
treaties. Tho mutual agreement regard
ing railway tariffs, traffic and compe
tition will without doubt be of great ad
vantage to Itussia and Japan. This ad
vantage, sprinjrs, however, from the
proximity of the tv.-o countries to Han
ohuria and their railroad interests.
American mercantile interests will
probably find the coir. petition of those
of Russia and Japan more keen, but
there is no treaty violation to interpose
to offset this. In short, the door being
k*pt open. Russia and Japan are mak
ing every preparation to be the first
through it. The problem which result?
Is almost purely a commercial and not a
a] - tj.-.
No Discrimination Against America.
The charge frequently made that
Japan" <Sis<-ri!nir;aies against foreign,
particularly American. shippers ?n
favor of its own subjects is, so far as the
investigations of the United States, ex
tend, without foundation. Efforts have
b^en made by American diplomatic and
consular officials to find a specific case
:iii Which J;ipan"se subjects receive
-jiroiv-rir.tial tariffs, but none has been
«ii£~bveredl It is not probable, therefore.
that an understanding between Japan
and Russia as to railroad management
will result in discrimination against
American trade.
The only Chinese question now open
which may be affected by the treaty is
the project for the construction of a
road from Chin-Chow to Aigua and
Tsitsihar. This undertaking may be
open to the objection of Japan and Rus
sia on the ground that it conflicts with
their present railroad interests, but this
is not probable, as it is so far from the
lines of either that a reasonable basis
for opposing, the project cannot bo
brought on this score.
AruHo 3 of the treaty closely resem
bles ono of tho clauses of the Root-
Trtkahira n<.tf.s exchanged between the
United States and Japan, and is taken
as an indication that Russia and Japan
intend to maintain, so far as the treaties
;:ppiy. an attitude in harmony with that
of the United Ftates.
The publication of the treaty and the
assurances from both powers remove
from Oriental diplomacy one of the prob
lems which ha? been the subject of
much speculation and much miscon
struction. Tho nir has been cleart-d. If,
therefore, the Manehurian proposal of
Secretary Knox had the effect of has
tening: the arrangement or forcing the
declaration of an understanding: between
Russia and Japan the n suit has been
beneficial rather than detrimental to the
development of the Far East.
JAPAN'S COLONIAL PLAN
Sureau with Jurisdiction Over
Corea, Formosa and Saghalien.
Washington. July 12.— Details of a plan of
the Japanese government for conducting a
colonial department in Toklo, with jurisdic
tion over Corea, Formosa and Saghalien,
patterned after the Ins alar Affairs Bureau
government, have reached the State
.Department.
The unofficial reports indicate that Vis
count Terauchi will continue to discharge
the duties of Corean resident general at
Tokio. with Tamagata Isaburo as vice
president general. The latter is the son-in
law of Prince Vamagata. and was formerly
Minister of Communications at Tokio.
Newspaper reports also predicted a few
weeks ago the appointment of Kato Bf&aao
as manager of the general business bureau
in connection with the Seoul government.
Masao represented Japan in Seoul many
years ago. The reports indicated that
Corea. under the colonial department
scheme, Is to be regarded and treated as a
Japanese colony. General Terauchi plan
ning one visit to Seoul to make the arrange
ments connected with the new plan.
Some official announcement regarding the
plans involved in this colonial scheme of
Japan Is expected before long. Cable dis
patches have announced that Viscount
Terauchi would leave Tokio for Seoul on
July 15 to confer with the former Emperor,
Y1 Syek, for whom and- his family and staff
Japan has made ample provision.
NAVAL OFFICER A HERO
Lieutenant Gay's Conduct Is
Warmly Commended. .
[From The Tribune Bureau,]
Washington, July 12.-For heroism in con
nection with the sinking of the floating
derrick Hercules at the New York Navy
Yard in a storm on June IS, Lieutenant
Jesse B. Gay. of the battleship Connecticut,
flagship of the Atlantic fleet, has been com
mended by Acting Secretary "Winthrop.
"When the Hercules broke loose from the
tugs which were- moving her Lieutenant
Gay was standing on the deck of the bat
tleship. He saw the danger to the derrick
and called for volunteers to prevent her
from sinking; With two' or three men. at
great personal risk, he went below on the
derrick to seelliat all the -members of the
crew had gene" ashore: He then returned
to the deck of the Hercules, closed the for
ward starboard hatch and fastened it se
curely white the rising water mounted as
high as his waist. He also closed the other
hatches with the aid of the volunteers who
accompanied him.
In reporting the incident to Rear Ad
miral K. H. C Leutze, commandant of the
navy yard. Captain William R. Rush, com
man-ling officer, of the Connecticut, said:
The voluntary, prompt and efficient ac
tion of Lieutenant Gay in his courageous
fearlessness in the presence of extreme
danger made, certain that no man of the
crew of The derrick was left on board and
undoubtedly saved the derrick from sinking
entirely.
Rear Admiral Leutze made this indorse
ment:
Not only was this a fine example of per
sonal courage and ability to lead men into
danger when emergency requires it, but
there is little doubt that Lieutenant Gay's
unhesitating and well directed efforts on
the occasion were cf great value to the
navy in preventing further damage to the
Hercules.
b letter T <"> Lieutenant Gay Acting
tary Winthrop said:
■■TDv-nt desires t<-. offer you its
lation for your action on
ai.d to state that a <"opv of
placed on file with
d in 1 ■ aent.
PERU ECUADOR MEDIATION
Important Developments Expected Soon
— Diplomats Hastening to Washington.
"Washington, July 12.— Important develop
ments in the mediation of the United
State?. Argentina and Brazil in the boun
dary dispute between Peru and Ecuador
3r p. expected here thin the ntxt two or
three days.
Sefior Rafael Maria Arlzaga, who has just
arrived in this country, to-day presented to
the State Department a copy of his letter
of credence as Minister of Ecuador to this
government. An official of the department
may accompany the minister to Beverly
shortly In order to present the original let
tor of crr-dence 10 President Taft. It is
K.-ii<i that ha.'te in Hie presentation is due
to th« mediation proceedings.
At ihe Fame time ■' Is learned that Seftor
& Limo. charge of the Brazilian Embassy,
and Sfnor VQleg&s, charge" of the Argentine
Jpgati'in. a? wel!,_#s :- - Bor Pardo. the
Peruvian Minister, are hastening back to
Washington from their summer vacations.
A meeting of the representatives of the
three mediating Rovernments Is expected
to be held in Washington to-morrow.
The last action '• by the mediators
v/as to request the two governments to
withdraw the troops from the boundary.
Reports from official sources to the State
Department show thai this request has
been complied with, although there have
txen repeated rumors to the contrary.
POSTAL SAVINGS STAMP OUT
Issued for New Banking System by
Postoffice Department.
Warhinjjton, July 12. ■ The first distinctive
Hamp for the postal tavings bank system
has hern appro\ed by Postmaster General
Hitchcock. It Is an unpretentious looking
emblem, resembling an ordinary 2-cent
stamp, except that it has no portrait on
it. and will b^ used exclusively on the of
ficial mail in conducting the postal savings
system.
The first order for Q*\'>"i of these stamps
has been given. The value of 2 cents each
in placed on the stamps in order that an
account may be kept of the expense at
!f.-nd!ng the administration of the banks.
Unlil the system is installed the stamps
will be used exclusively on the official mall
of the .board of trustees.
NEW- YORK DAILY TRIBUNE, WEDNESDAY. .JULY 13. 1910
WATT HAY SUCCEED CAPPS
Many Candidates for Chief Con
structor of Navy.
BUREAU TO EE REORGANIZE
Changes Expected to End Line
and Staff Controversy — •
retary Meyer's Victory.
[From Th* Tribune Bureau. 1
Washington, July 12.— There was lively
speculation at the Navy Department to
day concerning the successor of Chief Con
structor XV. L. Capps, whose resignation
as chief of the Bureau of Construction and
Repair takes effect on October 1. It will be
several days before an appointment is
made. The chief constructor may under
the law be. either a line officer or a mem
ber of the corps of naval constructors. He
must at least have the rank of lieutenant
commander and "no "a skilful naval con
structor." which qualification is possessed
by some members of the line as well as by
all members' of the. construction corps. It
Is expected, however, that the choice will
be confined to a naval constructor, not
necessarily of the senior grades.
The name, most heard to-day in this
connection v.as that of Naval Constructor
R. M. Watt, now on duty at tho Norfolk
Navy Yard, v.-ho was appointed to the navy
from Pennsylvania in 1887. This is the of
ficer of whom Secretary Meyer said, in a
hearing before the House Naval Commit
tee at a discussion of the reorganization
plan: "I have in mind one constructor as
manager who, has shown special ability
and who has had to work until midnight
and then has not been able always to
keep up with his work. That is a young
man named Watt, at Norfolk, who has also
managed to avoid the errors which so
many others have made. He is at Norfolk,
and the officers there without exception
speak In praise of him."
Naval Constructor Watt was in Wash
ington to-day, and this fact gave support
to the rumor that Secretary Meyer had
called for him with a view to tendering
him the detail of chief constructor, tho
duties of which he might undertake pend
ing 1 his permanent appointment in October,
when Capps's resignation will take effect.
Others who are mentioned as eligible are
Naval Constructors J. H. LJnnard and D.
W. Taylor, on*duty in the Bureau of Con
struction and Repair: A. W. Stahl, on duty
at Philadelphia; Robert Stocker, on duty
in 'connection with the Board of Inspec
tion ard Purvey, and W. J. Baxter, who
is In charge of construction work at the
Brooklyn Navy Yard.
Capps to Make Inspection Trip.
Ti;p retirement of Rear Admiral Capps
will be followed, according to authoritative
information, by readjustment of the en
tire Bureau of Construction and Repair,
which will put an end to thr possibility of
hostility to the Meyer plan which has ap
peared from time to time in that division.
Rear Admiral Capps will make an extensive
inspection trip, going to the Philippines to
look over the drydoek Dewey before he re
linquishes active rervice. In the mean tinr?
those who followed his lead in the line and
staff controversy will he shifted about to
other details, that the new constructor
will have no recalcitrant staff sympathiz* 1^
to contend with in his administration of tho
bureau.
When the further changes in the Con
struction Bureau are made, the line and
staff controversy, which has come up inter
mittently in the department for many year?,
will have been throttled unless it appears
in an unforeseen quarter. The Bureau of
Supplies and Accounts, of which Rear Ad
miral Rogers was the head, is on a. new
baste, with a larg-ly new personnel. When
the Bureau of .Construction and Repair is
srranered the last stronghold of the staff
will have fallen. Dr. Stakes,^ successor to
Dr. Rixey as surgeon general, who had
leanings toward tiie staff, is a Meyer man
and evades the controversy.
The nc£rotia*i^:is for the separation .of
Chief Constructor Capps from his bureau
billet were undertaken a few days ago :
when Admiral Capps went to New England
to see the Secretary of the Navy. He also
abandoned a short inspection trip planned
for this week in order to have a personal
conference In Washington with Mr. Meyer.
In t!io letter of resignation Admiral Capps
explains fully the fact that he does not find
himself in entire accord with some of the
details of the reorganization policy of the
pres< in head of the department.
LABOR IN NEXT CONGRESS
Morrison Expects Majority Fa
vorable to Cause.
Washington, July 12— "I believe the next
Congress will have a majority of members
favorably disposed toward the legislation
advocated by organized labor." said Secre
tary Morrison, of the American Federa
tion of Labor to-day In discussing the po
litical programme of that body. He said
the Federation was in touch • with every
state in the Union, and in response to re
quests from local central bodies was fur
nishing information as to the attitude of
candidates on labor measures.
This record, he said, shows how members
of Congress who are up for re-election vot
ed on legislation in which labor was inter
ested. New men entering the field are
asked how they stand on the propositions,
and their replies are incorporated in the
information furnished to the central bodies.
The voters are informed of the views of the
candidates by the local unions, and then,
he said, the question as to how their ballots
shall be cast is up to the voters.
, The Federation is advocating the elec
tion of members of labor unions to the
state legislatures, he said. Such candidates,
receiving the indorsement of the Feder
ation, promise to attend the meetings of a
labor group to consider measures of interest
to ths workingmen and to abide by the de
cisions of this group, irrespective of party.
RECOUNT BEATS BLACK
Adds Three Votes to Dalzell's
Total — Further Contest.
Pittsburgh .Tuly 12. — Congressman John
DalzeU'a majority in the primary election
of Jim* 1 4. which was contested by his op-
Dr. M. J. Black, is now 207. ao
pording 10 the returns found by the County
Commissioners In thtir recount of the din
triet. winch was finished to-night. The re
turning board of elections had found a ma-
Jortty of .'"1 for DsJaelL and in the recount,
made upon petition of Black, Daizell gained
three » ■•
Mistakes were found in sixty-three pre
but iii m> Instance was the result
in n precinct changed over five votes. The
gain of one candidate In one precinct was
by bis loss In another, and th* es>
t mt nf the entire recount nww a net
Change of only three votes, which wpre
In Dalsell'e favor. Thp totni vote Is Dalxell,
11,015, ;<nd Black. I>>,X&.
It. Black still protests several districts
In which it Is asserted boxes had been
1 oken open, and »!<■ will go into the
Dauphin court to have the vote of part of
Usti Id thrown out.
MR. MEYER ON VACATION.
Washington, July 12.— Secretary Meyer
has gone to Restigouche, Canada, where be
has spent his vacation for some years,
fishing. He returned to ' Washington sud
denlj last Saturday from Hamilton. Mass.,
and disposed of a good deal of work be
tw«-en then and last nigh I. lie will be
away practically all summer on his vaca
tion.
SENATOR LfDGE BUSY
Gives Up Trip to Europe — Re
ceives Blanr Pledges.
\Vy Telegraph to The Tribune ]
Boston. July 12.— Serator Lodge was at
his headquarters in "Barrister's Hall this
afternoon and spent a busy day up to the
luncheon hour. Members of the Legislature
and candidates for Senttor and Representa
tive called to pledge. th?ir support to him in
the event of their electjon in November.
Though Senator Lodfe has been advised
by his political friends to take his usual
European trip this season, he has decided
to remain here all summer. He does not
intend to take things tor granted.
At Representative B.itlex Ames's head
quarters to-day his assistant. Daniel J.
O'Brien, said he was agreeably surprised at
the anti-Lodge sentiment in the western
part of the state.
WISCONSIN DEMOCRATS ACT
Denounce New Tariff and Favor
Income Tax.
Milwaukee, July li— The Wisconsin
Democratic State Convention opened here
to-day and will be in session two days.
The unanimous report of the committee
on resolutions, which was presented to
night, favors home, rule in municipal af
fairs in the largest measure consistent with
the terms of the state constitution, the citi
zens to determine whether to adopt the
initiative, referendum and recall; favors
amendment of the Constitution of the
T'nited States to permit the election ot
Senators by direct vote of the people;
favors conservation and government control
of natural resources, and charges the Re
publican party with recklessly squandering
those resources. It favors a law requiring
the publication of all campaign contribu
tions and expenses and demans a corrupt
practice act and a federal income tax.
The Payne- Aldrich tariff law is denounced
as "a betrayal of the interests of the peo
ple and a measure enacted for the benefit
of special interests, offering no relief what
ever to the consumers of our country."' A
"'prompt reduction of the tariff in favor of
the people" is demanded.
The report of the committee on resolu
tions was adopted as read after the con
vention wrangled for three hours over the
phraseology of the planks relating to con
servation and home rule. A resolution
favoring a tax on franchises was voted
down. A futile effort was also made to add
a plank condemning county option.
A resolution denouncing the three Demo
cratic members of the Legislature who
walked out of the Assembly on March 4,
1909, and made possible the election of Isaac
Stephenson, Republican, as United States
Senator was adopted without a dissenting
vote.
Michael K. Reilly. of Fond dv Lac, the
temporary chairman, outlined the plan of
the Democratic campaign. More govern
ment for the people and by the people, less
government by class and for privilege and
a progressive platform were among the
things "he advocated.
ALABAMA REPUBLICAN TICKET
Platform Indorses Taft Administration
and Payne-Aldrich Tariff.
[By Telegraph to The Tribune.]
Birmingham, Ala.. July 12.— The Repub
licans of Alabama held their state conven
tion here to-day, placed a ticket in the
field and adopted a platform. Joseph O.
Thompson, state chairman and Collector of
Internal Revenue in Alabama and Missis
sippi, was nominated for Governor.
The platform adopted Indorses the ad
ministration of President Taft and the re
cent Republican measures, Including the
Payne-Aldrlch tariff bill, condemns the
working of convicts in coal mines in Ala
bama, demands the repeal of the poll tax
law and favors enactments favoring the
farmers.
On the liquor question the platform de
clares in favor of a full and fair trial of
the present prohibition laws. Their re
peal Is advocated if they are found unsat
isfactory.
CUMMINS PLANS SPEECHES-
Will Stump for La Follette, Beveridge
and Poindexter.
Dcs Moines, lowa, July 12.— Senator Al
bert B. Cummins to-day said that he would
make a number of speeches in three states
this fall in the interest of insurgents. Sena
tor Cummins will enter the Wisconsin cam
paign in the interest of Senator La Follette.
He will then speak in Indiana for Senator
Beveridge, and later will probably go to
Washington State to assist Congressman
Poindexter in his effort to become Senator.
UNION LABOR PARTY IN ARIZONA
Platform Based Upon Provisions of
Oklahoma Constitution-
Ph<enix. Ariz.. July 12.— After voting down
a resolution pledging support to candidates
of any party who would subscribe to the
principles of organized labor, delegates rep
resenting the trade unions of Arizona cre
ated to-day the Union Labor party of Ari
zona, which will support candidates for
election to the constitutional convention.
The platform adopted by the labor repre
sentatives includes all the so-called "radi
cal provisions of the Oklahoma constitu
tion."
GAYNOR'S ADVICE NOT LIKED
Brooklyn Democrats Unwilling to Re
nominate Republican Justices.
Brooklyn Democrats were not particu
larly delighted yesterday with Mayor Gay
nor's recommendation that Supreme Court
Justices Maddox and Garrotson. Republic
ans, and Putn.im, Democrat, be nominated
to succeed themselves by both parties this
fall. It is understood that the Democrats
tire in favor of nominating' District Attor
ney John F. Clarke ana David F. Manning
to two of the places. There is consider
able feeling against Justice Putnam, who
is considered more Republican than Demo
crat.
John 11. McCooey said:
"Its too early to make any comment in
the judiciary nominations."
As the Mayor has been far from con
siderate in his treatment of the Kings
County organization, it U; a question as
to how far his recommendations will go.
Th.> Republicans naturally aro pleased.
Jacob P.rcnner. chairman of the County
Executive Committee, said:
■ Mayor Gaynor is right. Thp Republican
Judiciary Convention- will undoubtedly re
nnminat" the three justices. It has been
the policy of the Republican organization
10 reaeminate justices of the Supreme
Court, without regard to partisan connec
tions, and this policy will be followed this
tim<\ regardless of what the Democrats
do."
AT ODDS OVER APPOINTMENTS
Judges Say Probation Officers Should
Be Their Personal Choices.
There is a difference of opinion between
the judges and Civil Service reformers as
to whether or not the additional probation
officers provided for In the new Inferior
courts bill should be taken from the Civil
Service lists or should be personal appoint
ments by the Judges.
Elliott Goodwin, secretary of the Civil
Service Reform Association, and Homer
Folks, of the State Probation Association,
spoke yesterday before the Municipal Civil
Service Commission in favor of having the
appointments made from the regular lists.
They said this was the practice in Chicago
and other cities.
Justices Russell. Olmsted and O'Keefe,
of the Court of Special Sessions, and Magis
trates Oeismar and Dylan argued that the
appointment* should be personal.
"These probation officers are the custo
dians of the conscience, as well as being the
eyes and ears, or the court," Bald justice
Olmsted. "Being purely confidential offi
cers, they should be appointed as such."
The commission gave no decision on the
question yesterday.
COMMUTERS' CASE HEARD
They Protest Against Proposed
Increases in Rates.
RAILROADS MAKE REPLY
Interstate Commerce Commis
sion Listens to Arguments
from Both Sides.
[From Thp Tribune Bureau]
Washington. July 12— The first hearing
under the new interstate commerce act was
held to-day, when the New Jersey com
muters submitted their protest against the
raising of rates from Ftations in that state
into New York by the Pennsylvania Rail
road, the Delaware, Lackawanna & West
ern, the Central Railroad of New Jersey,
the Erie, the W^st Shore and the Lehigh
Valley. The railroads were represented by
a formidable arraiy of counsel and traffic
experts. Two sessions were held by the
commission, the hearing closing shortly be
fore 6 o'clock. The increased rates arc to
go into fffect on July 20, and the com
muters appeared to-day to ask the commis
sion to suspend the new rates for 120 days
while a full investigation into their reason
ableness is beinu made. It is expected that
a decision will be made in three or four
days.
The representatives of tho railroads de
nied the jurisdiction of the commission to
suspend the proposed increases, on the
ground that the new rates were filed bo
fore the- enactment of the new interstate
commerce law. They maintained that the
proposed increases are warranted because
expenses have increased greatly. They dis
cussed at length the provision of the now
law authorising the commission to suspend
proposed increases, contending that this
power should not be used except in ex
traordinary cases, when it appeared that
irreparable injury would be done unles3
suspensions were ordered. Th?y said it was
a power analogous to that exercised by
courts of equity in issuing temporary re
straining- orders. All the railroads' repre
sentatives maintained that their lines were
losing money on suburban passenger traffic
from New Jersey points to New York.
George F. Brownell, of the Erie, said that
his road had spent $5,000,000 for improve
ments, including the open cut through Ber
gen Hill, which, he said, would greatly
improve the passenger servicp. He also
said that the increases in wages In 1910 will
amount to J1 .560,000 a year.
Regarding the commutation fares. Mr.
Brownell said that for years the passenger
fare in New Jersey had been 2^ cents a
mile and the commutation tickets were is
sued to fill empty seats. He said the pres
ent commutation rates are less than one
half the regular rates, and that the actual
cost of hauling a passenger is 1.5 cents a
mile.
"The increase in average revenue a
ride," Mr. Brownell added, "ranges from
2.4 cents on the main line to 6 cents on the
Greenwood Lake division, and the average
for all lines is 4.9 cents. The increase in
average revenue a mile ranges from LI
mills on the main line to 3.1 mills on the
Newark division. The average for all lines
Is 2-3 mills.
"The commutation business is not profit
able, and does not pay its fair share of
conducting the company's business. The
current expense of conducting the businosa
has increased largely. Immense sums have
been expended in improvements, many of
which have been demanded by the com
muters, and the present rates are unduly
low as compared with commutation rates
in other parts of the country-"
Lackawanna Expenses.
TV. H. Truesdale, president of the "Lacka
wanna. furnished a mild sensation when he
declared that for the last ten years the
company had operated the Morris & Essex
division at a loss of about -51,000,000 a year,
the net deficit in the period being $5,512,000.
Another assertion of Mr. Truesdale which
created some surprise was that the Lacka
wanna had spent $15,000,000 on the Morris
& Essex division in ten years, while the net
revenue from all sources was only $5,000,000.
Mr. Truesdale testified that the per capita
cost of handling commutation traffic had
materially increased since the rates were
put into effect, years ago. The new rates
would not be highly remunerative, he
thought, although they would aid the com
pany in meeting its expenses.
George A. Culler., general passenger agent
of the Lackawanna, said that in most in
stances the proposed rates were lower than
commutation rates on other lines for
similar distances. He figured that the gen
eral increase in commutation rates by his
road would average approximately 13 p<=r
cent. He presented a ta'ole showing that
the Increase of the cost of labor of all
forms in the last year had amounted to 59
per cent. In discussing the cost of handling
passenger traffic, he asserted that it cost
47 per cent more to-day to seat a passenger
in a coach than it did twenty years ago.
J. B. Thayer, third vice-president of the
Pennsylvania Railroad, save testimony
along the same lines.
At the afternoon session W. C. Hopr>. gen
eral passenger agent of the Central Rail
road of New Jersey, testified that the com
mutation rates averaged his company 5.5
mills a mile. He declared the service was
not remunerative and, in his judgment, its
absolute cost was greater than that of the
general passenger service. Tn his opinion,
the present commutation rates were much
too low and additional revenue om»ht to be
derived from the service.
In presenting elaborate tables on the com
mutation traffic H. A. Taylor, of the Erie
Railroad, said that the Erie's taxes in New
Jersey had been increased 151 per cent in
the last ten years.
Commuters Side Presented.
Attorney General Wilson of New Jersey
urged the commission to suspend the rates
in order that the complaining commuters
might have an opportunity to study the ex
hibits made by the railroads and reply to
them. *
"These increases," he said, "are a men
ace to the prosperity of many communities
where hamlets have developed into villages
and towns have blossomed into cities. It is
an unwarranted hardship on tens of thou
sands of people who have built and are
building home* on the strength of the ex
isting rates. This is a matter so vital that
we ought to be afforded opportunity to ex
amine the railroads' figures In justice to
the army of protestants in the State of
New Jersey."
"That opportunity," suggested Chairman
Krapp. "would not be lost through the re
fusal of this commission to suspend the
rates. The commission subsequently could
entertain complaints of these proposed
rates."
Arguments on behalf of the commuters
were made by C. Conor Hennessey; on
behalf of Bergenfield, N. J.. by Terry
Parker, of New York, representing the
Commuters' League of New Jersey, and
by William L. Ranson. counsel for' the
Board of Trade and the Commuters' T>agu©
of New Brunswick. N. J.
Charles D. Dray ton, representing the rail-
M.i commission of New Jersey, discussed
the commission's jurisdiction over commu
tation rates, maintaining that it had Such
jurisdiction and it was only just 'to all con
cerned that it exercise It
After a brief argument by Frank Lyon.
an examiner of the commission. In support
of the position that the commission had
Jurisdiction over tho rates. William S.
Jenny, of the Delaware, 1-ackatvnnna &
Western; Jackson K. Reynolds, of the Cen
tral of New Jersey, anil Mr. Browtull. of
the Brie, presented short arguments In op
position to the issuance of an order sus
pending the proposed rates. ;
Mr. Reynolds declared that the Identical
statements submitted to-diu- were sub
mitted to the New Jersey State authorities
three weeks aeo. He asserted that 1
proposition of the Attorney General was
"puerile."
It was announced by Chairman Knapp.
for the commission, that the case would bs
taken under consideration and a decision
handed down within n f';^' 'l*y* L
SHORTAGE MAY BE $750,000
Louisville Stockholders Pledge
$1,000,000 to Save Trust Co.
Louisville. July 12. -Admission that the
shortage of August Ropke, d-fau'.Une as
sistant secretary of the Fidelity Trust
Company. - "very large" was made at the
trust company offices to-day. It Is said
unofficially that the amount may reach
5750,000. At the same time it was an
nounced that the directors of the company
had pledged themselves to an increase of
$1,000,000 in the capital stock, if such In
crease be necessary.
President John VT. Earr Issued a state
ment this afternoon in which he says that
the institution's securities have been found
absolutely intact and that not a dollar can
be lost to any one other than lbs. stock
holders.
Ropke's case was set to-day for hearing
before a grand jury on October 5. He was
returned to jail in default of $25,000 bail.
Since his arrest it has come to lisrht that
Ropke's speculation on the New \ork.
Stock Exchange and in local brokerage
houses end in bucketshops for the last ten
or fiftcn years amounted to hundreds of
thousands of dollars annually. It is gen
erally supposed that he manipulated indi
vidual accounts. It is also said he had au
thority from several depositors to check
against their accounts, and that he drew
on thes* accounts for large amounts and
Intercepted the checks on their return
from the Clearing House.
Ropke's operations were not confined to
the stock market. Several years ago he
bought a building In Evansville and con
verted it Into a theatre and office building
at an expense of $65.00tX This venture, It is
said, proved successful, and he sold tae
building last week.
CORRUPT PRACTICE PROBE
Committee Collecting Data —
Conference with Hotchkiss.
Albany, July 12.— Assemblyman Edwin A.
Merritt, Jr., chairman, and Judge M. Linn
Bruce, counsel, of the legislative commit
tee which is to conduct the investis-ation
Into legislative corrupt practice?, had a
lon 5 conference with William Hotchkiss.
Superintendent of Insurance, this after
noon. The committee, among other things,
proposes to take up the trails of corruption
which were uncovered during the examina
tion of Insurance affairs recently conducted
by Superintendent Hotchkiss, and to-day's
conference was intended to aid the com
mittee In outlining its plan of procedure.
Important documents and data concern
ing the recent Inquiry, as well as matters
which have come under the observation of
Superintendent Hotchkiss since its close,
were discussed, and a number of anony
mous letters received by the Superintendent
suggesting certain lines of inquiry were
turned over to the committee.
"We had a very satisfactory interview
with Superintendent Hotchkiss.'" said
Chairman Merritt. who declined to go into
details.
'•Mr. Hotchkiss gave us a thorough
insight into the insurance situation as
affected by his recent inquiry." added
Judge Bruce, "as well as what needs to be
done to improve conditions. He made some
valuable suggestions which we intend to
follow, including t..e names of insurance
experts who can aid the committee in its
work."
Superintendent Hotchkiss had nothing to
say except that Messrs. Merritt and Bruce
had outlined to him the procedure they ex
pected to follow in inaugurating the In
vestigation - at the committee's*next meet
ing. -•::-: - :.. / :£fS .•'-••■•'■-
William H. Buckley, of Albany, who was
one of the star witnesses at .the Hotchkiss
investigation, has been out of the city for
some time, but efforts will be made to sub
poena him if he is within, the jurisdiction
of the committee during the period of the
investigation. It is understood that the
names of several other prospective wit
nesses who might throw* light on the
methods In vogue In the past by which
insurance legislation was progressed or
throttled were discussed at to-day's con
ference.
Chairman Merritt and Mr. Bruce called at
the executive chamber to see Governor
Hughes, but were told that he had gone to
Oyster Bay to visit Colonel Roosevelt. They
hope to get some important suggestions
from the Governor and will endeavor to see
him before the next meeting of the com
mittee. Judge Bruce left to-night for his
summer tome, in And*?, Delaware County.
GEORGIA FOR INCOME TAX
Upper Branch of Assembly Had Al
ready Adopted Resolution.
Atlanta. «uly 12.— After debating the
question for nearly a week the lower house
of the General Assembly adopted the fed
eral Income tax resolution to-day by a
vote of 125 to 45. Fourteen members pres
ent did not vote. A similar resolution waa
adopted by the Senate yesterday.
INHERITANCE TAX BILL.
The Measure, Now a Law, Will Add
Millions to State's Revenues.
Albany. July 12.— Governor Hughes has
signed the progressive inheritance tax bill
and the bill appropriating $25,000 for the ex
penses of the extraordinary session of the
Legislature. These two measures were the
enly ones parsed at the recent special ses
sion.
The inheritance tax bill Is expected to
add from $3,500,000 tr> J3.000.000 to the state's
annual revenues.
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Summer." Tim Bilum*
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TEN HOURS Iw i£2*,w
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Service effective on Tie Iwi T>'tslm(toa
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Mtral Terminal. . N.U. Capacity *»
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President Hopes to Quid Fac
tional Discontent There.
SENDS TWO OF HIS CABir
; Hr. Taft Satisfied with the Oxt..
look for Republican Success
i at Next Election.
Beverly. Mass.. July 12.— President' Taft
talked politics, to-day with Senator TCla.
throp Murray Crane, of, Massachusetts; Xv
tnrney General Wlekersham and Secretary
Na^ei of the Department of Commerce, «m
Labor. All of these .were the Presidents
guests at luncheon. Their conference
until after I o'clock to-nifrht. Extreme reti
cence was displayed by. everybody. 'and no
statement, other than that the general lit.
nation -was discussed, could bo obtained.
Senator Crane was close to the President
throughout the last session of Congress.
During the concluding: six -weeks nt the ses
sion, when the President was hammering
away at the programme which he finally fc.
duced Congress to adopt. Senator Craa*
was a dally visitor at the White House. la
looking forward to the campaign, waicb 1:
is admitted on all sides will be ■ *a.rd one,
it was natural that Mr. Taft skooH consult
with the Senator from Massachusetts
among the first of h!s odvisers. __ .
The President was reverted to-nls'nt to b»
very well satisfied wk« general conditions,
and hopeful of Rcp"si>lican success "an
along the line." '. . ;
It was definitely determined this after
noon that Attorney General Wlckersham
will accompany Secretary Nagel to Alaska.
The situation In that far-off territory ba3
given the President much concern. Serious
factional fights have been In progress there
for several years. Extreme bitterness has
teen displayed. Each time an appointment
has been made to one of the federal oSces
a campaign has been started agata3t tha
appointee.
The fights have been carried to "Washing,
ton from time to time. The :eie?a:« from
Alaska, Mr. "Wickersham. who by the- -nay
is no relation of the Attorney General,- 13
at loggerheads with the administrate
The President has found it necessary :atsiy
to remove a number of Alaskan officials.
Several of the men whom he appointed to
succeed these failed of confirmation, and It
was necessary for the President to resort
to recess appointment?.
Mr. Taft wants as much first hand infor
mation as he can get en the situation, so
as to shape his future course wits refer
ence to Alaskan affairs. He believes tfta:
the Attorney General and Mr. Nagelcxa
bring him this Information.
Tba two Cabinet officers will sail from
Vancouver on the Fish Commission steamer
Albatross. They will go west tnnmjh
Canada, leaving Montreal next slcs£&7
morning. On the way back from Alaska
Secretary Nagel will stop over at SeaiCa
and Portland. While in Alaska he wilhlqak
into the salmon fisheries and will also.iD
vestigate the lighthouse situation. ...-?
The administration of affairs in Alaska is
almost wholly in the hands of the United
States attorneys and marshals si the three
divisions. These officers are supposed to
act in harmony with the Governor. la
some of the divisions it is said there has
been anything but harmony, and a much
mixed up state of affairs has existed.
Attorney General Wlckersham Is largely
responsible for the district attorneys and
marshals, and he is anxious to get some in
formation for his own guidance. It has not
been determined Just how long the two
Cabinet officers will , v ,e away. The trip will
consume between two and three months.
Preparations for the President's ten-da?
cruise on the-. Mayflower, which is to begin
next - Monday, are . going forward- Com
mander G. TV. Logan, the new commanding
officer of the President's yacht, will lunch
at Burgess Peint to-morrow, when the final
details of the- : tr'n will be attended to.
ON TRIAL " FOR VOTE BUYING
Claimed That Those Who Voted Eight
Get White Slips.
Rochester, July 12.— The all egad purchase
of votes by men said to b« employe.: by the
Republican county organization at the -sp*
cial Congressional election last April intha
32d District, in which James 5. Havers de
feated George W. Aldridge. Republican
state committeeman, was described by-wit
nesses to-day at the triai of "Jack" flat
tery, indicted for violating the election law.
Following the election charges of fraaJ
were laid before Governor Hughes, who
authorized Attorney General O'ilalley to
designate a special Beer to make an in
vestigation before a special gra-1 jury.
Elmer E. Charles, of Wyoming County,
was named, and the investigation resulted
in the indictment of Slattery. an employ*
of Aldridge, whose trial was begun ysstsr*
day in the Supreme Court before Justica
Adelbert P. Rich.
Albert C. Olp. the. Ural witness called to
day, swore that he saw Slav del'jrer
white sllp3 of paper to twelve men a3 thej
emerged from a voting booth and foUewed
them to a saloon in Front street. If Is ths
contention of the prosecution that the whits
slips were cashed at this saloon.
Other -witnesses swore to seeing- glittery
accompany men to the voting booth and
point out to them the Republican ecldnrc
on the voting machine. These men wers
given white slips when they left the boots.
The prosecution rested Us casa to-day **"
ter other testimony as to the white slips.
A motion that the action be dismissed •■
the ground that the prosecution had failM
to establish a case was denied by th» cccrt
this afternoon, and the defence then, ex
amined a number of its witnesses. Tt»
case may go to the Jury to-morrc-x morn
ing.