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Be Wise ^-^v Estate. See pages 6, 7 and 8. PRICE TWO CENTS. PULLED THEWOOL' OYER EXAMINERS Clement's Scheme to Conceal Faribault Bank's Condition from Officials Exposed. ACCOMMODATION NOTES GIVEN BY FRIENDS Receiver Baird Will Collect Them Oldham Investigates for Washington. Special to The Journal. Faribault, Minn., March 25.While much has been done to settle up the affairs of the defunct First National bank, the work necessarily makes slow progress, and has been delayed by the failure of depositors and other creditors to file claims. There is reason to be lieve, however, that the report of assets made to the controller was too conserv ative and that more will be secured than was at first thought. Receiver Baird has found several notes for which the makers claim no consideration was given, but which they say were made as a personal ac commodation to Mr. Clement. Some were for as much as $5,000 and they are now believed to have been used by Mr. Clement to conceal the bank's real condition from the national bank exam iners. Altho some were made years ago they were kept "alive" by Mr. Clement's simple method of indorsing interest upon them, it thus being made to ap pear, without the knowledge, as is claimed, of their makers that'they rep resented current loans. "Wlieat Deal Shortage." Mr. Clement secured these notes on various pretexts. To one man he said he "wanted a $5,000 note for a few days to cover up a shortage on a wheat deal. Such a note signed by the late Senator Stockton, was held'by the bank at the time of his death, and Mr. Clement w,as about to put it in as a claim against his estate, when Stockton's partner, John Hutchin son, threatened to expose the whole transaction. The claim was not made and as the Stockton eBtate was settled long ago, this note is probably now listed among the bank's worthless se curities. Mr. Baird contends that these notes are due the bank and has made a de mand upon the makers for payment. Some of the notes have been paid or are in process of liquidation in other cases, payment is resisted. all such cases,"th saidnot Mr.isBaird, fi"Tn that some notes given by their friends had their indorsement, but every cent due on such notes has either been paid or arranged for." ^^ssS&k^' Man from Washington. The question of the liability of di rectors for neglect was investigated here this week on behalf of the depart ment at Washington by Judge F. F. Oldham, its attorney. He went fully into the subject, both at a meeting with the committee of depositors and at one held subsequently with the di rectors themselves. To attend this lat ter meeting Judge Buckham was called from Waseca, where he was holding court. At the meeting with the depositors' committeemen, Judge Oldham was at some pains to inquire just what they had learned at various interviews with the directors. What conclusions he ar rived at are not known, except as they can be gathered from remarks he let fall. For instance, when he was told how one of the. directors had said that he had never critically examined the bank's securities and had trusted the making of loans entirely to Mr. Clem ent, he remarked that evidently the gentleman had spoken without consult ing his attorney. It is also regarded as significant that he inquired particu larly as to the financial responsibility of the directors. Responsibility of Directors. At the subsequent meeting with the directors, Judge Oldham's attitude left no doubt in the minds of those present that the department would not be sat isfied unless they did something further than merely assume the obligations of ordinary stockholders. Judge Oldham and Mr. Baird both held, ft is understood, that the direct ors should be held responsible for any losses that they could have prevented by due diligence. "There is no thought," said Mr. Baird, "of holding the directors re sponsible for every loss the bank has sustained i nthe thirty or more years It has been in operation. That, of course, would be absurdly unfair, for naturally there have been many losses which the officers could not have fore seen. The responsibility of the direct ors muBt depend upon the circumstances of each particular case. If it is shown that investments made by the bank which resulted disastrously could have been prevented if the directors had fully discharged the duties con templated by our banking laws, it seems to meand Judge Oldham shares that viewthat they should at least share the loss with the depositors." Judge Oldham has returned to Wash ington. Whatever is done will be done by tl#s receiver upon instructions from Washington. Litigation, however, is not looked for. Once fully convinced of their responsibility, the directors, it is believed, will not hesitate to dis- ahATffe all their obligations. CZAR IS FOR END OF WAR the party making solv ent, action will be brought to enforce payment. Thev represent to us a part of" the bank's'assets and will be col lected wherever possible." Mr. Baird was asked about a report that Donald and D. W. Grant had fa vored Mr. Clement with such notes estimated as high as $10,000. "There is no truth whatever," said he, in such a statement. Neither Donald nor D. W. Grant owed the Jot"only"fro_m_ect "theim iient .Neithe p. SIFTON SCENTS A POLITICAL CRISIS Changes Front on School Bill to Save the Cause of the Gov ernment. HIS SPEECH MAKES A PROFOUND IMPRESSION Cabinet Reconstruction Is Bruit ed and Many Uneasy Ru mors Are Afloat. Special to The Journal. Ottawa. Ont., March 25.The contri bution of the late minister of the in terior to the debate on the second read ing of the autonomy bills for Alberta and Saskatchewan last night proved not only a profound surprise but has given rise to uneasy rumors as to new cleavages in the government ranks and as to actual cabinet reconstruction. Mr. Sifton acknowledges himself op posed to the educational clause in the bill forever fastening separate schools on the nascent provinces, but ended by declaring he would support them to prevent a political crisis. This cynical declaration of opportun ism awoke mingled feelings in the house, some being willing to ascribe it to his devotion to Laurier and former associates, while others declare it was calculated to embarrass the government majority. However, all agree that Sif ton is perfectly loyal to his friends, tho he cannot go back on his convic tions. Some of the salient features of this remarkable speech, which took over two hours to deliver, are: I am in a somewhat peculiar position, Mr. LfS.Ivo-i- more largely with the statements of the leader of the opposition than with the statements and arguments of the leader of the government. The conclusion at which I arrived seems probably to be the same as that of the leader of the opposition. "It was said that Manitoba had.been harsh in abolishing that system. I am here to say that you cannot deal with a business of that kind by handling it with kid gloves. I am here to say that if there is any act in my public life I am proud of, it is the fact that I was one of those who helped to abolish that system of education in Manitoba. Altho I am for my party, I am con vinced, after the history of the question in Manitoba and the knowledge of what is held by public men in the territories on the whole question, that it would be better for the Roman Catholic people of the territories if the legislators were left absolutely free, but I shall never convince the gentlemen who do not think so. I shall never get them to think as I do on this question.# If I talked for a hundred years their views would be just the same. "The question is, how far a man is .-justified in compromising his opinion for the purpose of preventing a political crisis. Therefore I have to say, having ive Gran owed the ,,he j. bank anything directly, nor had they given the bank any notes It is true Boin 4 finding that I agree much i standpoint of affair gu k-j besanoin o.f atffairs not consideration,s fllf thi ,,4-0 of affairs 'parliament, but from the stand in the Terri- i -eNorthwest tha ean i nre- 0 much enthusiasm* but witht luctance, give my support to the bill. COERCION MAKES SHIPPERS SIGN How the Railroads Are Getting Signatures Against the Recip rocal Demurrage Bill. Manufacturing and jobbing interests of Minneapolis are much stirred by the circulation of a petition against the passage of the reciprocal demurrage bill. The petition has been handed to the heads of these concerns by repre sentatives of the railroad companies, yfho have not only carried it about, but have used their xitmost persuasive pow ers to get the signatures of local busi ness men to hand in to the state senate. The railroad representatives have told the business men that if the bill passes there will be such a car short age in this state as they never dreamed or before. Car shortage has been the bane of many shippers in the last two or three years. They have often had the greatest difficulty in filling orders within specified time, and have lost business because of it. This argument hits them in a tender place. They can not understand how the demurrage charge will tie up cars, and the infer ence is that if the bill passes the rail road companies will deliberately create such an emergency as will cause the state railroad commission to suspend the demurrage charge. They will keep cars back, and especially from the ship pers who have been independent enough to refuse to sign the petition. To put it plainly, the petition has been handled in such a way that some of the men approached consider it co ercion, and they have indignantly re fused to sign. Others have signed be cause they did not feel that they could afford to refuse. ITALIAN MINISTRY DECIDES TO RETIRE Eome, March 25.Signor Tiltoni, act ing premier and minister of foreign af fairs, today announced to parliament that the whole cabinet had resigned, leaving the king free to form a new ministry and that his majesty had re served his decision. In the meanwhile, Signor Tittoni and his colleagues will remain in office. Parliament has ad journed until the formation of a new cabinet. $1,000,000 HOTEL FOB MINNEAPOLIS Ten-Story Structure to Be Put Up HereAgsnts at Work. Negotiations are under way to give Minneapolis one of the finest hotels west of Chicago. The enterprise is backed by eastern capitalists, who have thought for some time that a strictly first-class modern hotel in this city should be an excellent investment. A representative now in the city is look ing overv.the ground and haw already secured options on one or two desirable properties. -A The man who is conducting the nego tiations thru the Wyvell-Harrington' company, a leading Minneapolis real estate firm, has not given out anything definite, but it is known that the plan is to secure the best down-town loca tion possible and erect a hotel at a cost to exceed $1,000,000. The proposed building is to be a fire proof, ten-story structure, after the plans of the most up-to-date eastern hotels, with main dining room, office and cafe on the first floor, a banquet hall, with seating capacity of 1,000 on the ninth floor and 400 guestrooms, providing every possible comfort and convenience. REDUCTION IN OIL PKICES. Pittsburg, March 25.The Standard Oil com pany today made a reduction of 3 cents in the higher grndes of crude oil and 2 cents in the lower grades. The price of North Lima oil was advanced 1 cent and the Somerset oil was un changed. The War for the Week Peace preliminaries are now in progress. The peace party in Russia and the unanswerable facts of the situation have convinced the czar that to continue the war is madness and can result only in plunging Russia into new disasters. It is positively stated, therefoj^ "that peace preliminaries are under way, and that definite peace proposals will soon be "forthcoming. Supporting this statement is the announcement that Franco-Russian negotiations respecting a loan to Russia have been resumed. Negotiations were broken off because of the czar's determination to continue the war. Their resumption, therefore, is strong evidence that the czar has Intimated that he has changed his mind. Further signs of peace are seen in the talk of means by which Russia hopes to compensate herself for the loss of Fort Arthur and the Manchurian railroad. One plan involves a railroad, entering the back door of China, cutting thru the empire's heart to Peking and thence to a port on the Yellow Sea. On the other hand the Japanese have already begun sweeping movement to remold the whole civilization of China on Japanese models, thru schools, newspapers and monasteries under Japanese control. While the prospects of peace are brightening, Linevrtch is^continuing his retreat northward, pressed on rear and flanks by the Japanese. But a heavy engagement is not expected. St. Petersburg looks for the Russian army to retreat to a point west of Harbin, unless Linevitch can check the Japanese at the Sungari river. He will probably make a stand at that river, in order, if possible, to save Harbin and prevent the isolation of Vladivostok. Otherwise there may be a long period of comparatively bloodless war. Reports also say that General Kuroki's army is headed for Vladivostok to invest the garrison there. The Russians expect the garrison to be reduced to a sta te of siege before long. Russia's fleet under Rojestvensky is expected soon to make an effort to regain for Russia control of the eastern seas. The admiral is on his way eastward with two divisions of his fleet. The third is on its way thru the Suez canal today, and will probably join the other two at the Chagos islands and thence proceed eastward to meet Admiral Togo, who, with a large fleet, is believed to be waiting in the vicinity of Singa- pore the coming of the Russians. Reports that Japanese submarines have damaged some of Rojestvensky's ships have not been confirmed. Japan has secured another loan, $75,000,000 in America and $75,000,000 In England. The American end was subscribed for twice over almost upon the announcement of the bond issue. MAURICE BARRYMORE, THE ACTOR, IS DEAD New York, March 25.Maurice Bar rymore, the actor, died today at a sana torium at Amityville, L. I. Maurice Barrymore was born in India in 1847. He^ was a graduate of Cam bridge, and was admitted to the bar. His first engagement in the United States was at the Fifth Avenue theater, New York. He was leading man for Modjeska, Mrs. Langtry and others. He was the husband of Georgia Drew Bar rymore, and their sons, John and Lionel, and their daughter, Ethel, are among the best-known people of the American stage today. Tor some yegrsr^iwiriee Barrymore had been an rr^^iSB^'^s sanatorium. TREEBffiSffAS F0R#0TTED FEYER New York Sun Special Service. New York, March 25.To save the life of a 9-year-old boy who was taken to Flower hospital a week ago in the last stages of cerebo-spinal meningitis, Dr. William Tod Helmuth trephined the skull of the lad and he is now appar ently almost well. When Dr. Helmuth performed the operation, the boy was almost dead, but his recovery has been rapid. When the boy was taken to the hospital Dr. Helmuth decided to try trephining, until then an untried procedure, the case be ing so extreme. His experiment is be ing watched with absorbing interest by his colleagues. "JAPAHED." The peaceful invasion of China is quietly going on while the war gBassia. SATURDAY EVENING, MARCH 25, 1905. 32 PAGESFIVE O'CLOCK. JAP IDEAS SOWN THRDOOT CHINA Mikado's Agents Begin Gigantic Task of Remodeling Civil ization of Mongolians. Berlin, March 25.A letter from Peking, published by the National Zeitung this morning^ gives the results of an inquiry into Japanese political activity in China. The writer says Japanese agents in various lines of business are penetrating into China and settling in every important place in the empire, 'aev otaiig toemselve's to"their callings in. life, whether priests, editors, teachers or traders, and to winning peacefully the good will of the-Chinese for the Japanese. The method most often used is the founding of newspapers printed in the Chinese language and friendly to Jap anese aims. These try to influence the provincial governors and the Peking government to employ Japanese teach ers in the schools and especially to place Japanese military instructors in charge of the Chinese troops. In addition Japanese Buddhist monks have begun to arrive in China on semi political and semireligious errands. They seek closer relations with the Chinese Buddhist organizations, and have acquired control of several mon asteries over which the Japanese flag is floated. The monks also establish Buddhist chapels and organize congre gations. Their declared aim is to unite' the various Buddhist sects in China. "being pressed INARIES ARE NOW ON iSIX WEEKS BELIEVED CERTAIN FIRST STEPS ALREADY TAKEN Peace Preliminaries Under Way"In timations" from Both Sides. New York Bun Speoial Service. Washington, March 25.While peace overtures between Russia and Japan have not as yet been directly initiated, preliminaries are in progress. Each belligerent is halting at the edge of direct advices, fearful of the effect in China of an announcement that it was compelled to seek peace. Nevertheless, from both sides have come indirect intimations to the United States that, if negotiations could be instituted in some way, perhaps an equitable adjustment could be reached. Kaiser Anxious to End War. & i These intimations are receiving the jjj i energetic support of Germany. For iri some reason not quite clear, Emperor William has become terribly anxious that the war should end. He has even directly suggested to President Roose velt that he take measures looking to negotiations. President Roosevelt has just respond ed. In a circular dispatch to American diplomats accredited to all the powers, including, it is believed, Russia and Japan, it is stated that while America is most desirous thta peace should be re stored, the president does not see his way clear to take action unless he should receive a direct representation from either or both of the belligerents. At hte same time the president is leaving no stone unturned to bring the war to an end. He has let both pow ers understand that he would welcome peace and would even gladly facilitate mmfawr0 BASIS ALREADY UNDER DEBATE Personages Representing Both Sides In- formally and Secretly Discuss Terms at One of Europe's Smaller Capitals. 650,000 IN LOSSES OF 1HE RUSS AND JAP ARMIES London, March 25.The losses, in killed, wounded and the Russian forces now reach a total of 897,141, made up as Date and Battle. Losses. May 1, Yalu 2,941 May 2, Nan-shan 4,000 June 1, Wa-fang-kan 10,000 June 27, Motien and other passes 3,000 July 25, Ta-tche-kiao 1,200 July 80-31, To-mu-cheng 4,000 Aug. 25, An-shan 8,000 Sept. 1-5, Liao-yang 25,000 Oct. 9-17, Shakhe 68,000 Total 397,141 The Japanese losses probably aggregate 250,000, making the grand to- tal losses nearly 650,000. This war is the most deadly on record. St. Petersburg, March 25.The information contained in these dispatches for over a. week regarding the change in Emperor Nicholas' attitude concerning the advisability of making a pacific proposal to Japan is fully confirmed. In very high quarters, peace within six weeks is regarded as certain. The positiveness with which this is affirmed would indicate that the govern- ment is already in possession of information as to the Japanese terms which indicate a basis to which Russia can agree. The exact situation is shrouded in mystery. The secret of what has been done and what is being done is zealously guarded. The Associated Press hears, however, from a source close to the throne, that pourparlers are actually in prog- ress in Paris, but possibly these are only of a preliminary character, and Copen- hagen may be, the, scene of the first exchange between representatives of the two powers. Jn this -connection, importance is attached to the visit ofvM. d'Iswolsky, Russfa& 'jninjWer^at Copenhagen, and Baron Rosen, former Russian minister to Japan, to M. Bompard, the French ambassador to Russia on Tuesday. The parties to this conference refuse to admiV that significance is attached to it. Inthe meantime the foreign office issilent. TERMS ARE INFORMALLY DISCUSSED. Paris, March 25.It is said in quarters having excellent means of infor- mation that Russia's steps toward peace have already taken a tentative form at a private conference, held within recent days, at one of the small capitals of Europe. The purpose appears to have been to bring together personages representing both sides .neither having credentials to discuss formally terms of peace, but to examine informally what each side expected and what tentative basis seemed possible. The nature of this exchange does not warrant its being considered a definite peace movement, but it is understood to have given each side an opportunity to judge the view of the other and it has clearly shown Russia's disposition toward peace. French newspapers are booming peace prospects. The Petit Parisien quotes a St. Petersburg diplomat as saying that a complete change of opinion has taken place at Tzarskoe Selo, and if France should now offer her good services they would be accepted, nor would those of the United States be rejected. FRANCE HAS BEEN URGING PEACE. Washington, March 25.When the dispatch from St. Petersburg regarding peace was shown the diplomat today on whose authority the Associated Press on March 13 announced from Washington that the Russian emperor knew the general terms on which Japan would conclude peace, he said: "The source of my original information was a high one, but it is gratifying to receive this confirmation. The European powers, notably France, have for some time been endeavoring to find out on what terms Japan would accept peace. These have been ascertained in a general way and have been communicated to St. Petersburg. When he called his war council on March 14 the emperor knew these terms and doubtless communicated them to his ministers. "Japan's apparent reticence is not due to a desire to continue the war, but is because the Tokio government wishes to be certain that Russia is proceeding to peace negotiations in good faith and is not playing for time as she did in the negotiations prior to the war." LOAN POINTS TO PEACE Resumption of Franco-Russian Negotia tions Strengthens Peace Rumors. Paris, March 25.The prospects of peace between Russia and Japan as sumed a more definite and almost a tangible aspect yesterday as the result of the announcement of the resumption of negotiations for a Russian loan. The postponement of the loan oc curred thru the stand taken by the financial element against proceeding while the uncertainties of war contin ued, whilst a willingness to resume ne gotiations. is construed as meaning that Continued on 2d Page, 5th Column tonIght Today, max. 55, min. 40 de grees a year ago, max. 27, min. 11 degrees. of ollows: Date and Battle. Losses., July, 1904, to Jan. 19, Fort Arthur 35,000 Jan. 15-29, Hei-kou-tai 21,000 To DateSkirmishes and smaller battles 12,000 Feb. 23-March 12, Mukden. .200,000 To DateNaval engagementsSO.OOO (Excluding fall of Fort Arthur.) strong influence finally has prevailed with the authorities at St. Petersburg. The announcement of the resumption of negotiations took definite foim in a communication to the syndicate of agents de change, who form an influ ential element on the bourse, holding government credentials. The effect of the first announcement was to stimulate the market and partic ularly Russian securities. A reaction occurred on fears as to the effect that heavy demands of the loan would have on the market and doubts concerning the uses to which the loan would be put. However, it seems to be the accepted view of financiers that the proceeds of the loan will not be applied tc the further continuance of the war. It is understood that one of the in ducements to a resumption of the nego tiations was that a considerable portion of the proceeds should remain in Prance for the purpose of meeting the interest coupons of other loans, and that the placing of contracts for government supplies will be required even after the conclusion of hostilities. Coupled with the announcement of re sumption of the loan negotiation, came a strong intimation from official and diplomatic quarters that steps looking toward peace had been definitely taken by Russia. Imperial Decree Directs Internal Loan of $100,000,000 St, Petersburg, March 25.An im perial decree directs the minister of finance to issue a 5 per cent internal war loan of $100,000,000. Of this $50,- 000,000 will be offered for publie sub scription. RUSSIANS STILL RETIRING Linevitch Continues RetreatOyama Not Expected to Attack. St. Petersburg, March 25.General Linevitch continues the retirement of the bulk of his army northward. The general staff now declares it is certain that Field Marshal Oyama has been compelled to relinquish the idea of I rz RUSSIA TO BORROW MORE