PROSECUTIOHTDCOME
Action on the Schuylkill Ar
senal Contract Scandals.
A CONSPIRACY ALLEGED
CONTRACTOR BUSCH AND IN
SPECTOB CHARLTON ACCUSED.
Acting Secretary Oliver Directs That
Oreat Care Be Exercised Here
after in Accepting Supplies.
The criminal prosecution of Morris liusch,
contractor, and Bobert Charlton. Inspector.
ordered todJjr by Acting Secretary of
War Oliver. This action Is Indicated In
a direction to Judge Advocate General
Davis to prepare the necessary papers for
thU prosecution and submit them to the
Department of Justice, Busch holds a con
tract with the quartermaster department of
the army to furnish fur caps ttnd gauntlets
to Ik? delivered at the Schuylkill arsenal,
Philadelphia. The order for prosecution is
taken on the strength of a report recently
made by Major F. 8. Strong of the Artil
lery Corps, acting Inspector general, In
which It Is alleged that a conspiracy to de
fraud tlie government exists between Busch
and Charlton. The alleged conspiracy con
sists In the delivery and acceptance of
goods of quality Inferior to that required by
the contract. Herrafter a commissioned of
ficer will be assigned to duty us chief in
spector In the arsenal. -
Besides the criminal prosecution of Busch
and Charlton. Secretary Oliver directs that
Busch shall t>e compelled to complete It s
contract with the government upon penalty
of a civil suit for damages. He also stipu
lates that if any inferior articles are lur
nlshed to the government by Contractor
Kdwin H. Taggart, under hJs contract of
October K. 11*.2. he shall be requited to
replace the Inferior goods under penalty
of a civil suit for the recovery of the money
paid.
The report of Major Strong regarding
conditions In the Schuylkill arsenal has led
to a suggestion from the Inspector gen
eral's department, which has been made an
order by Secretary Oliver, for an imme
diate investigation of the Important depots
containing army supplies. These are lo
cated at New York. Boston. Philadelphia,
Jeffeisonvllle. Ind.. San Francisco, Seattle
and other places.
Acting Secretary Oliver's Statement.
Acting Secretary Oliver today Issued the
following statement giving his conclusions
on the report of Major Strong:
??The report of Major F. S. Strong. Artil
lery Corps, acting Inspector general, upon
the alleged Irregularities in the filling of the
contracts at the Schuylkill arsenal, Phila
delphia. Is hereby approved.
"It is ordered that Inspector Robert
Charlton and Examiner F. T. (Julnlan be
diiected to show cause. In writing, why
they should not be at once discharged for
Incompetency In permitting the receipt of
articles Inferior to the contract standard.
"The Judge advocate general will prepare
the necessary papers to submit to the De
partment of Justice for the purpose of In
augurating criminal proceedings against
Morris Busch. contractor, and Robert
Charlton. Inspector, for conspiracy to de
fraud the TTmted States government.
"A careful inspection shall be Immediately
made by an expert of all articles hereto
fore delivered on the contract awarded Mor
ris Busch. or others, and a demand made to
replace all such as may be Inferior to the
contract samples.
"Morris Busch shall be compelled to com
plete In a satisfactory manner all contracts
which he now may hold with the govern
ment. and failure to do so shall constitute
grounds for civil suit for damages.
"In case any Inferior articles are discov
ered furnished by Edwin H. Taggart. con
tractor, under his contract of October 8.
1902, he shall be required to replace said in
ferior goods, failure on his part to do so to
be followed by civil suit for the recovery of
the money paid.
Future Inspection.
"In the future the commanding officers at
all depots where supplies are furnished un
der contract shall be required to select per
sonally the representative monthly samples
furnished to the quartermaster general;
and at all such depots, and the Schuylkill
arsenal In particular, a commissioned offi
cer shall per onally and continually super
vise the Inspection of all articles tendered
under contract with a view to their accept
ance, availing himself of the knowledge of
the chief Inspector as an expert
"Hereafter all Irregularities of any nature
whatever not reported upon by the officer
in charge of said depots shall be held to
constitute a basis for charges against such
officer for neglect of duty and a genetal
lack of efficiency: and In the advertisement
for bids for contracts for any government
supplies each bidder shall furnish the name
and place of business of the manufacturer
or manufacturers who will furnish the
goods If upon careful examination on the
part of the officers of the quartermaster's
department they shall report adversely us
to the facilities and general standing or
said manufacturer, or manufacturers, such
report shall be considered sufficient to re
ject the bid of such party.
"All bidders who may have heretofore
failed unjustifiably to till contracts with
the government shall not be considered, und
a careful examination shall be made with a
view to ascertaining the legitimate market
value of articles of standard quality, and
any abnormally low bids must be carefully
scrutinized with a view to excluding
petent and unsatisfactory contractors from
furnishing government supplies.
"ROBERT SHAW OI-?I\ER,
"Acting Secretary of \N ar.
Preparing the Evidence.
The report of MaJ. Strong Is now In the
hands of Judge Advocate General Davis,
who Is preparing the evidence from It
for the criminal prosecutions contem
plated This work will require a day or
two, at which time the case will be turn
ed over to the Department of Justice for
?SIT Humphrey, quartermaster general.
today iuldres?e<l a letter to Chief In
*pector Charlton and Inspector Qulnlan,
asking them. In compliance with section
twelve of the < Ivll servlco regulations,
whether there Is any reason why they
should not be dismissed from the govern
ment service. In view of the charges
which have been made against them. Al
though criminal proceedings are In prog
tess (gainst the chief inspector, this no
tice Is required by the civil service regu
lations before the Inspectors can be re
moved from office. Three days are given
the Inspectors for a reply to the charges
Quartermaster General Humphrey w .11
have the depots of his department. Included
among which Is the New Orleans depot, in
soected by a civilian Inspector, who Is yet
to be selected. It Is the intention to have
this Inspection most thorough and conduct
ed by an expert In the work There Is said
to be no reason to apprehend that condi
tions will be found equaling those at the
Schuylkill arsenal.
Denial Made by Busch.
PHILADELPHIA. September H.-Morrls
Busch. the contractor against whom crim
inal prosecution is ordered by the War De
partment, Is a common councilman of this
city. Charlton, who is also recommended
for prosecution. Is an employe of the
Schuylkill arsenal.
MaJ Strong of the Inspector general s de
partment came here from Washington early
in August for the purpose of making an in
vestigation at the Schuylkill arsenal of cer
tain contracts. The Investigation lasted a
week. It was testified by Frederick Kam
holz. a partner of Busch. that Charles M.
Gladding, former chief Inspector at the
arsenal, and Robert Charlton, head of the
present force of fur Inspectors, had agreed
to pass Inferior goods made by Busch.
Charges that money had passed between
Busoh and Charlton were made by Kam
holz. Charles A Bowman, former secre
tary to the late Representative Burk of this
city, testified that while he was secretary
to the representative Busch offered him
*.**1 to get Mr. Burk to furnish him with
"?formation concerning bids. Buach denied
Fatal Accident of Which Child
Was Victim.
CORONER'S VERDICT
EXONERATION OF THE MAN IN
CHARGE OF THE MACHINE.
Evidence Heard Which Showed That
the Unfortunate Affair Was Un
avoidable?The Witnesses.
Violet Sprlngman, the eleven-year-old
daughter of George W. Sprlngman of 634 M
street southeast, was knocked down and
killed by an automobile managed by Gilbert
J. Osterman while playing In the streets
near the corner of 11th and G streets south
east last evening about 8:30 o'clock. Oster
man and his brother, Fred Osterman, who
were in the automobile, were arrested, but
were released this afternoon by order of the
coroner after an Inquest as to the accident
at the morgue.
The body of the dead child was turned
over to her father, and arrangements for
the funeral are being made.
The little girl lived with a married sister
at 1020 G street southeast, and last evening
was playing with three girls of her own age
at the corner of 11th and G streets. The
children were running back and forth across
the street.
Mr. Osterman, who Is a contractor, had
been visiting his old home In Anacostla and
was returning to the home of his brother,
with whom he resides, when the accident
occurred. According to his statement of
the affair he was proceeding north along
11th street at a reasonable speed. He
slowed down to pass over the excavations
left after the removal of the car tracks
that formerly ran east from 11th street,
and when his machine reached the other
side he was moving at the rate of about
eight miles an hour. He saw the children
run across the street before he reached the
point where #".ey wore playing, but none
was In the street as he reached the north
side of G street crossing.
Child Runs Into Street.
He had not gone very far, however, when
he saw a child run out from the east side
of the street and he turned his machine to
ward the curb to prevent striking her.
When the chl!d readied the center of the
street she hesitated and turned back. Be
fore Mr. Osterman could stop his machine
it had struck the child. He stopped imme
diately and his brother ran back to where
he s:;w the child lying on the pavement.
Together they carried her to a nearby drug
store and a physician was summoned.
When the physician arrived the child was
dead. Policeman Totten met Osterman at
the corner of Pennsylvania avenue and
11th street and after learning of the ac
cident took charge of the case.
The body of the girl was removed to the
morgue and the Ostermans were placed
under arrest.
At the coroner's Inquest this morning a
thorough examination of the case was had.
The eye-witnesses to the assldent were all
examined and several persons who had
seen the automobile were questioned to
ascertain Its speed. There seemed to be a
divergence of opinion as to how fast the
machine was traveling. The Ostermans
both stated It was not moving faster than
eight or ten miles an hour, and another
witness. w*no had been engaged In the
automobils business, stated that It would
be dangerous to the occupants of a ma
chine to run it at a greater speed over such
rough pavement. He gave it as his opinion
that it was moving at a rate between eight
and twelve miles an hour. *
Alleged Excessive Speed.
Several other witnesses stated that the
machine was moving at an excessive rate
of speed before the accident, but none gave
a satisfactory estimate. All agreed that
the driver had done his utmost to avoid an
accident and that he had stopped his car as
soon as he could after the accident.
Most of them agreed that If the child had
continued on her way across the street the
accident would not have occurred and that
to avoid it was Impossible, after the child
had turned, as she ran directly Into the
machine.
Among the witnesses examined were
Policeman Totten, Dr. Webb, who had
been summoned immediately after the ac
cident; the Osterman brothers, George F.
Duval, Lancing W. Trower, Mrs. Hannah
M. Moore. Harry M. McFariand and John
Moran, eye witnesses; Annie Bolton, Lucy
Bolton and Mary Brown, children who were
playing with the dead girl at the time of
the accident; Augustus Reinhardt, who was
also playing with the party; W. H. Ham
mond, an automobile driver and machinist,
who saw the accident, and William Hale,
who had seen the machine Just before the
accident.
As a result of the testimony adduced the
jury found that the child came to her death
through accident, and by order of the coro
ner the Ostermans were relea?ed from cus
tody.
BOTH CALLED ON KEEP
PALMER AND RICKETTS SAW THE
HEAD OF THE COMMISSION.
There was no development today In the
?matter of the government printing office
shake-up. It is known definitely that Mr.
Palmer has been practically relieved of all
authority in the office between the present
and the 15th, when his resignation will be
In the hands of the President.
Mr. Palmer gave Mr Klcketts, -foreman
of printing, until tomorrow to reply to his
charges of Insubordination, and according
to the program that was arranged by the
public printer Mr. RJcketts was to be re
moved from his position tomorrow at noon.
The public printer, however, will go out
of office, leaving Mr. Rlcketts at his desk.
The President has not yet instructed Mr.
Keep, chairman of the commission to which
the protests of Messrs. Klcketts and Hay
have been referred, as to the course he
wishes him to take In this matter. It is
believed that the President will be heard
from tomorrow. The President was on a
picnic yesterday and did not have an oppor
tunity to attend to this matter, but it Is
iikely that he will do so today.
It Is known that the President has made
some inquiries in relation to Mr. W. S. Ros
siter, chief clerk of the census bureau, con
cerning his qualifications for the place of
public printer. Mr. Kossiter's name came
Into the contest for the office of public
printer without any act of his own, but he
has never been more than a receptive candi
date. ready to take the place if tendered it.
His friends have done so much, however,
to forward his candidacy that It Is likely he
will be the object of a very decided cam
paign before many days pass by.
Mr. Rkketts' friends are as confident as
ever that the President will appoint him
to the office, although they recognize the
possibility that the President may take the
view that an outside man would be desir
able. But they do not accept, this reason
as one likely to Influence the President, be
cause they say it Is of the utmost Import
ance that the new public printer should be
familiar with all the details of the office,
and the fact that Mr Rlcketts Is so fully
Informed concerning the work there is rec
ognised as a reason why the President is
likely to select him. especially as It is un
derstood that the commission has discov
ered nothing In Mr. Rlcketts' administration
of the office to reflect either upon his ability
or his integrity.
Public Printer Palmer called at the
Treasury Department yesterday and had an
Interview with Assistant Secretary Keep In
relation to his status at the government
printing office. Today Mr. Rlcketts also
called on Mr. Keep.
The Topeka Out of Commission.
The cruiscr Topeka was placed out of
commission yesterday at the Portsmouth,
N. H., navy jrarC
URGENT INVITATION
EX-SOLDIERS WANT SPANISH
WAE VETERANS TO MEET HERE.
The ex-soldlers of the District of Colum
bia are very anxious for the United Spanish
War Veterans encampment to come to this
city In 1906. and the following telegrams
have been sent to Capt. J. Walter Mitchell
at the Hotel Pftester, Milwaukee. Wis.:
"Use your Influence to bring encampment
of United Spanish War Veteran! to our
fair city In 1906."
The telegram was signed by J- Edwin
Browne, post national commander, Union
Veteran Legion Encampment, No. 60.
Another telegram was sent, which read:
"Comrades of the Army and Navy Union:
Desire you to use your efforts to bring
United Spanish War Veterans encampment
to Washington. D. C.. next year.
(Signed) "ROOSEVELT GARRISON.'
Washingtonian Complimented.
Special Dispatch to The 8t?r.
MILWAUKEE. Wis.. September 8.?The
first appointment made by Commander-in
Chief English at the Milwaukee convention
was that of Capt. J. Vt alter Mitchell of
Washington on the committee of rules, reg
ulations and laws.
CONDITIONS AT NOME
CHANGES DEEMED NECESSARY IN
THE MINING LAWS.
Henry M. Hoyt, United States attorney at
Nome, Alaska, is in Washington and was at
the Department of Justice today in confer
ence with officials there as to matters in the
territory. Mr. Hoyt left his post the last
part of July to attend to some legal matters
In the United States circuit court at San
Francisco, and came on here to make a re
port and submit recommendations.
Mr. Hoyt says that conditions have great
ly improved In and around Nome In the last
year. "Much litigation has been settled, the
pendency of which had prevented many
claims from being worked," said Mr. Hoyt.
"and there is a spirit of conciliation among
the warring interests that has not been
noticeable in many years.
"The outlook Is ,-o^rarded as splendid for
Nome, where the mining Interests grow
more valuable every year. During the last
winter much work Went on in what is re
ferred to as the tundra of Nome, and as
much as *800,000 worth of gold was taken
out of one of these claims in sixty days of
winter digging. This summer there lias
been an abundance of water for mlnmf,
and this has had a good effect.
"In past years there has occasionally
been difficulty In getting the water neces
sary to carry on mining operations, but
rain harf been so plentiful that the wpter
has really been in the way part of the
time." _ ,
Mr. Hoyt said that many of the troubles
in Alaska over mining claims grew, out of
the present mining laws, which were not
suitable to that territory.
"What I should like to see done by Con
gress " said Mr. Hoyt. "is the passage of a
law that will do away with much of the
present requirements of word-of-mouth In
the proving of discovery and ownership of
mining claims. This could be accomplished
by providing for official survey and mark
ing. The present law means too much
scannal and perjury, and should be
amended. . .
"Under the existing law a man who lo
cates a claim must also do J100 worth of
work a year In order to hold It. This leads
to conflicting litigation and much perjury.
I believe this could be stopped by requiring
that a man who locates a claim shall make
a payment of tlO upon it, and each y^ar
thereafter pay J10, until he had established
his right to a patent, all this to be a matter
of record by the government, which should
survey the claim. Not only would this do
away with much of the word-of-mouth that i
is now depended upon, but it would result
in the creation of an immense fund that
could be used in the Improvement of the j
territory, or in such way as Congress should
consider best.
"There should also be some legislation
that will settle the question of water ap
propriation, so that cach claim owner
whose claim is situated upon the bank of a
stream shall be entitled to only so much
water as Is reasonably needed for the work
ing of his claim, leaving the balance open
to appropriation to others. This arrange
ment would do Justice to everybody and
tend to develop the country more than any
thing else I can think of."
HORSES BADLY INJURED.
District Threatened With Suit for
Damages in Consequence.
It is stated that suit against the District
by the George W. Knox Company Is prob
able for injuries sustained by a team of
horses yesterday at the Junction of Wiscon
sin avenue and 31th street. The horses
were. It Is said, badly hurt by the overturn
ing of a wagon.
While attempting to cross the car track
on Wisconsin avenue at 84th street a four
horse team carrying castlron water pipe
for the District to Fort Reno was over
turned. The roadbed has been washed out
so that It Is a foot below the track. The
front wheels of the wagon dropped sud
denly. breaking the pole and throwing a
portion of the pipe upon the rear wheel
horses. One horse was so badly lacerated
that a veterinary surgeon had to be called
to sow up a wound more than a foot long.
Another, the worst Injured, was so badly
strained as not to be able to walk.
Both horses are disabled for service, and
It Is said to be doubted whether the one
Internally injured can recover. Fortunately
the driver was not hurt. The accident Is
alleged to be entirely due to the condition
of the street.
Mr. John Knox alleges that the whole
piece of street on Wisconsin avenue be
tween 34th and 35th streets is the worst
In the District. The car tracks are at
least a foot and a half above the bed of
the street, and the old stone gutters once
at the sides are entirely washed out. All
the drain i>?e from the observatory grounds
pours ov r the sidewalk, which for two
blocks Is a morass of gravel, sand and
mud.
Smarting at 34th street and Wisconsin ave
nue. or even further down, the mud and rag
weeds are so bad. It Is alleged, as to make
it impossible for pedestrians to pass one an
other without discomfort and danger. One
side of the street has no pavement at all.
Htid the stone gutters are ponds, where chil
dren wade up to their thighs, and the sewer
trap, Intended to carry off the drainage,
has had for more than three weeks some
fifteen feet of gravel, being completely
filled.
It is said complaints have been made to
the District Commissioners without avail.
It has been pointed out that not only for
pedestrians and carriages Is the section
dangerous, but It has become practically
Impossible for hauling, and the fear Is ex- ,
pi eased that the cars in the event or leap
ing the track may be overturned.
Notwithstanding the petitions and letters
to the Commissioners. It Is said that noth
ing has been done except occasionally to
haul the silt, mud and gravel after a rain
from the bottom of the hill and distribute
It over the surface to be washed down again
at the next rain.
Mr Joseph R. Freeman, to whose home
the approach ts quite washed away, says
that in any storm the constant rolling of
the cobble stones from the top to the bot
tom can be heard.
The attention of the Georgetown Citizens
Association is to be called to the matter
and an effort made to change conditions.
Virginia Postmasters.
The following fourth-class postmasters
were appointed today In Vlrjinli. Glenn s,
Paul C. West; Mica, William H. McCalley;
I'eters Creek, Mary L. Tatum.
Personal Mention.
Mr. R. S. Woodward of Washington, D.
C.. is registered at the New Hotel Axtor, In
New York city.
Engineer Commissioner CoL John Blddle,
U. 8. A., returned to his desk this morning
after a vacation of one month spent partly
with the District National Guard at their
camp at Harper's Ferry and partly in
Canada.
Elected to Head Grand Army
of Republic
AT DENVER TODAY
HAD ttAH.T1 FIGHT BEFORE CON
VENTION.
Other Contests Tame as Compared With
Battle for Organization
Head.
DENVER. September 8.?Corpora! James
Tanner was elected commander-in-chief of
the Grand Army of the Republic by the
national encampment today.
The vote was as follows:
James Tanner. 447; Robert R. Crown. 187;
Charles G. Burton, 42; George Stone, Jo.
A great demonstration followed the an
nouncement of Corporal Tanner's election.
Special Dlspntch to The SUr
DENVER, Colo.. September 8.?The G. A.
R. convention is holding Its election today.
Interest In the fight for commander-in
chief overshadowed all else, and the fight
Coijporal James Tanner.
made by the oppoi*nts of Oo'rporal James
Tanner of New York was tiie most bitter
known In G. A. R. circles in many years.
Until after the nominating speeches were
made it looked as though Tanner would
have a walkover, but the opposition sud
denly showed more strength than the most
optimistic antl-Tannerltes expected. Bal
loting commenced at 11 o'clock.
The nominations for these several elec
tive offices are as follows:
Commander-in-chief?Corp. Jnmes Tanner,
New York; Maj. George Burton, Missouri;
Gen. Charles Brown, Ohio.
Senior vice commander-in-chief?Gen. Q.
W. Cook, Colorado.
Junior vice commander?James U. Ever
est; Ilinois; Silas H. Fowler, Minnesota;
Charles G. Royce, Californl*.
Surgeon-ln-chlef?L>i. Ferd. Brother, Iowa.
Chaplaln-ln-chlef?Rev. J<sse Cole, Colo
rado; Rev. J. E. Leary, Kansas.
Minneapolis Selected.
The first business before the encampment
today was the choice of a meeting place
for next year. It had been practically set
tled In advance that the national encamp
ment In 15)06 would be held in Minne-ipolis.
The only other city that asked for the
encampment in the convention today was
Dallas, Tex., whose offer was presented
by John A. Ewton. manager of the Dal
las 150.000 club. On a viva voce vote the
delegates seemed to be about equally di
vided between the two cities. A roll call
was then ordered and Minneapolis was
chosen.
The encampment gave a vote of thanks
to Mr. Ewton and the Texas organizations
which extended the Invitation to meet In
Dallas. Commander-in-Chief King invited
Mr. Ewton to go to Minneapolis next year
and repeat the invitation, promising his in
fluence to secure the national encampment
In 1U07 for Dallas.
Election Postponed.
Owing to the bitterness of the fight in the
W. R C. convention yesterday the election
of officers was postponed until this after
noon. There are five candidates for the
presidency, and each has formed a combi
nation with the candidates for lesser offices.
It Is expected that the women will not be
able to conclude the election before to
morrow night. The nominees for the pres
idency are Mrs. Kate E. Jones of New
York; Mrs. Carrie R. Partlln of Missouri,
Mrs. Belle C. Harris of Kansas Mrs. Ger
aldln Brlsble of California and Mrs. Ab
ble Adams of Nebraska.
Excepting for the office of senior vice
president, for which Mrs. Julia G. Sine lias
been nominated, the other nominations will
not be completed until the big light is se;
tled.
The list of nominations for offices of the
Daughters of Veterans, the election of
which will take place this afternoon, fol
lows:
President?Mrs. Bertha Martin. Ohio.
Senior vice president?Myrtle Kramer, Ill
inois.
Junior vice president?Mrs. Ida J. Allen,
Massachusetts.
Chaplain?Mrs. Adelaide Frear, New
York; Miss Eillian Phillips. Illinois.
Treasurer?Mrs. Carrie Kilgore, Pennsyl
vania.
Inspector?Mrs. Elizabeth J. Joyce. Mas
sachusetts; Mrs. Gertrude Soderburg, Illi
nois.
Instructor?Genevieve C. Hannon, Massa
chusetts.
Grand council (five to be elected)?Ida E.
Warren. Mass.; Mary Llttle'ield, Mass.;
Katherlne Osborne. Colorado; Minnie Guir
ford, Ohio; Millie Leighton. Mass.
Mileage of Retired Army Offlcera
The controller of the treasury. In two de
cisions published today by the War De
partment relative to allowances for m'le
age for retired army officers detailed for
service with the National Guard, has taken
the ground that such an officer under or
ders to Join the state militia cannot claim
mileage expenses, but that an officer de
tailed from such service and ordered home
may receive mileage. The first case was
that of Brig. Gen. C. A. WoodrufT, retired,
w'ho Is attached to the North Carolina
militia, and the second that of Brig. Oen.
E. M. Hayes, who was detached from serv
ice with the Arkansas militia.
Lunacy Proceedings.
Anita. Andrews, who formerly conducted
a manicuring establishment on 12th street,
was today adjudged Insane by a Jury sit
ting for lunacy hearings. The testimony
showed that MUs Andrews was under the
delusion that persons were attempting to
poison her food.
The Jury also adjudged Ashlang Rooney,
Catherine J. Boiling, Sallie South-worth,
Clarence Rayford, James 8. Ryan and
Edwin A. Eatchford to toe of unsound mind
and directed that they be committed to the
Government Hospital for the Insane.
Henry E. Robinson was found to be aane
and was discharged from custody.
Commit oner Neill Chosen.
Chas. T. Neill of this city was unanimous
ly elected president of the Association of
Officials of Bureaus of Labor Statistics of
America at San Francisco yesterday. M.
J. McCloud of Lans'ng, Mich., was chosen
a member of the executive committee.
OUESTIOH_OF_ SALARY
Insurance Inquiry in New
York Today.
SOME HIGH FIGURES
TREASURER OF NEW YORK LIFE
ON STAND.
Syndicate Agreements Entered Into
Freely, According to
Testimony.
NEW YORK, September 8.?The salaries
paid to the officers of the New York Life
Insurance Company were the subject of the
I opening inquiries when the insurance in
vestigation was resumed today. Edmund
Randolph, treasurer of the New York Life,
| testified that the salary of President John
A. McCall of that company had been In
creased from $40,000 In 1802 to *50.000 In
I 1893. $75.0(10 in lSKi and $100,000 since 1901.
The salary of George W. Perkins, vice
president of that company, Mr. Randolph
testified, was increased from $20,000 in 1S93
to $25,000 In 1S97, $30,000 In 1900, $75.1X10 in
1901 and then reduced to $25,000 in 1902. The
reduction in salary was due to Mr. Perkins
! going into partnership with J P Morgan.
Mr. Randolph's statement of the salaries
of the other officials showed a steady in
crease.
John Clafiin, ft director and member of
the finance committee of the New York
Life Insurance Company, was the next
. witness. Mr. Claliin described the com- J
[ pany's method of making Investments
through the finance committee. The lists
I of investments as a ruie were prepared, he
said, not by Individuals, but by a great
| number of financial institutions?practical
ly the whole financial community. The pro- !
posals were first passed on by a subcommit
tee. which eliminated the impossible ones, i
If the proposals came on the day of the
finance committee's sitting, the whole
finance committee considered the proposals.
"Does the New York Life from time to
time enter into syndicate agreements?" -
asked Mr. Hughes.
"Yes," Mr. Clafiin replied.
? "Do they come before the subcommittee
| of the finance committee?"
"No; they come before the whole finance
I committee. Written agreements are drawn
up and a synopsis of them is recorded in
the minutes of the finance committee."
| "Doesn't the New York Life enter into
| syndicates when it dors not take the bonds
itself?"
"It never enters into syndicates unless
j satisfied It is a good thing for the New
| York Life to hold bonds the syndicate hand
les; It never enters into syndicate transac
tions except with the intention of taking
bonds."
Profits From Syndicate.
Mr. Clafiin said the New York Life In
surance Company received $9,700 profits as
a member of the syndicate which under
wrote some of the Japanese war bonds,
first series. Lawyer Hughes, counsel for
[ committee, said that evidently the insur
| ance company had in this Instance received
Its share of the profit realized by the syn
d cate members from the sale of bonds to
the public.
It was shown that the New York Life In
surance Company participated to the ex
tent of tlOO.OOO In the syndicate which dis
posed of the second series of Japanese 6
per cent war bonds. The syndicate was
not called upon to accept any of the bonds.
I and therefore the New York Life took none
I of the bonds by withdrawal. The com
pany, Mr. Clafiin said, was a member of
the syndicate which sold the Pittsburg ter
minal bonds of the Wabash railroad, and
received a share of the syndicate profits
therefrom, though it was not called upon
to pay out any money. In November, 1904,
he said, the insurance company realized
$10,098 from the syndicating of the Oregon
Short Line 4's, though It was not required
to take any of the bonds.
Bought Very Largely.
14 was next shown that, though the New
York Life did not withhold from the mar
ket any of Its syndicate holdings of bonds,
It afterward went into the market and
bought very largely, thereby adding to the
syndicate profits.
Mr. Clafiin explained that Japanese 6s
varied very much In value, and the bonds
may have been sold by the syndicate at
one time, and repurchased by the New
York Life at another under quite different
circumstances.
The participation of the New York Life
to the amount of $3,000,000 In the syndicate
that handled bonds of the A"->ntlc rv->ot
Line was taken up. Mr. Clafiin explained
he could not remember details of the trans
action.
The managers of the Atlantic Coast Line
were Issuing $10,000,000 bonds to leading
banks of New York and the New York
Life at 94. less H per cent, and later at
94. less 1 per cent. The finance committee
of the New York Life authorized the treas
urer to take $2,000,000 of these bonds. The
collateral of the Atlantic Coast Line was
Louisville and Nashville stock.
On this deal, Mr. Cllflln said, the New
York Life made a profit. He said: "If the
New York Life were to dispose of Its hold
ings carefully and slowly as an Individual
would, I have no doubt that all such hold
ings could be sold at a price equal to that
for which they were purchased."
In answer to questions concerning the
New York Life's participation In purchas
ing syndicates to hold bonds for a specified
time, Mr. Clafiin said he did not consider
it a serious matter for the company to tie
Itself up so that It could not dispose of
large blocks of stock for a year.
Statements of the cash balances of the
New York Life In the banks of the United
States and Canada from September. 1900,
to August 31, 11105, were put In as evidence.
They average about $12,000,000.
Mr. Hughes asked Mr. Clafiin If. with so
large a sum at Its command. It was neces
sary for the company to bind Itself not
to sell bonds for a year.
"The New York Life could, with absolute
safety, tie up three-fourths of Its assets
for five, six, eight or ten years," said Mr.
Clafiin. "There Is absolutely no harm In
tying our money up. The finance commit
tee could save themselves much trouble if
they Invested their money In the United
States or municipal bonds, and there could
be no objection unless some policyholder
asked why they were not getting a higher
rate."
DR SALMON'S SUCCESSOR.
J No Appointment Will Be Made for
Some Time.
Before leaving Washington for the west,
where he will make a number of addresses,
Secretary of Agriculture Wilson Informed a
Star man that he would not for some time
make an appointment to fill the vacancy
caused by the resignation of Dr. D. E Sal
mon, chief of the bureau of animal indus
try of the Agricultural Department. Secre
tary Wilson has not yet decided whom he
will name for the place. Dr. Alonzo E.
Melvln. assistant chief of the bureau, will
fill the place temporarily, but It Is by no
means certain that he will receive the per
manent appointment. Secretary Wilson Is
said to have his eye on another man whom
he 1s desirous of seeing In Dr. Salmon's
place.
Charged With Grand Larceny.
Henry West, twenty-one years old, col
ored, was arrested this morning by De
tectives Weedon and Tyser of the detec
tive bureau on a charge of grand larceny.
It is alleged that he stole a diamond pin
from E. M. Slmklns of 810 A street north
east valued at $100. She reported the lar
i ceny to the police several days ago. and
the sleuths made the arrest after an In
vestigation today.
Downtown Temperature.
The temperature registered today by Af
fleck's standard thermometer was aa fol
lows: 0 a.m.. 79; 12 noon, 87; 2 p.m., 80.
So far there have been 10S oases and
deaths jrom cholera la Prussia.
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- - THE - -
Sunday Star
THH NEWSPAPER FOR THE HATIOWAI. CAPITA U
Tales of the Road
An important feature of The
Sunday Star will be the beginning
of a new series of stories entitled
"Tales of the Road,'* by Charles
N. Crewdson. Mr. Crewdson is
himself a commercial traveller with
a keen sense of humor and a sharp
eye for business. The stories of
drummers and their life on the
road that he has already produced
mark him as an able literary man.
There is also much of sound busi
ness advice mixed with the stories.
The new series to be published by
The Star has never before appeared
in print.
TheArncliffePuzzle
The installment of this absorb
iog mystery story in Sunday's Star
deals with the work of the modern
toxicologist in clever fashion and
heightens the suspense already
felt over the identity of the real
criminal.
The Perilous Age of Our Senior
Naval Officers.
Park Benjamin, who is himself a grad
uate of the Naval Academy, shows why the
age of compulsory retirement should be re
duced.
Stories of Battle Recalled by Trophy
Guns.
Some of the interesting relics of war now
on exhibition in and around Washington.
How Russian Army Takes Defeat
By Frederick McCormick, correspondent
of the Associated Press in the far east. An
interesting collection of pictures taken on the
road near Mukden shows how a modern
army looks during a retreat.
The Dripping of the Honey.
Arthur Stringer, the Canadian novelist,
tells a pretty little story of the waning of the
honeymoon.
Jefferson and Little Rosie.
Burton E. Stevenson pictures some of the
quaint incidents of New York rural life.
Karl Grier.
The fascinating story of the man with the
sixth sense is resumed in next Sunday's Star.
Including News, Magazine, Sporting, Editorial,
Women's and Colored Comic Sections.
II
BAD ACCIDENT.
Motor in Auto Contests Causes In
juries.
ATLANTIC CITY. N. J., September ft?
At the height of a spurt In which Walter
Christie expected to lower the automobile
record for the Atlantic City beach course
today the four rear cylinders of the car
blew out, wrecking the motor. Christie
and a companion who were in the car al
most directly over the cylinders escaped
serious Injury, although Christie was struck
In the back by a flying piston, which pene
trated the steel shield back of his seat. An
other piece of the flying steel tore a gash
In the hand of Walter Jones, who was as
sisting Christie In running the car. Christie,
fearing to put on the brakes, ran into thb
soft sand, where the two men tumbled out.
Army Orders.
Capt. Frederick O. Knabenshue. 12th In
fantry, has been ordered to Governor**
Island, N. Y., for assignment to duty In
the Department of the East pending the
arrival of the 12th Infantry In that de
partment.
Second Lieut. Ralph R. Glass, ISth In
fantry, haa, upon hi* own request, been
transferred to the 31st Infantry.
First Lieut. Samuel D. McAllister, Ar
tillery Corps, on duty in the artillery dis
trict of New Orleans, has been ordered to
join the 38th company. Coast Artillery.
Contract Surgeon Francis A. Haliiday
has been relieved from temporary duty at
Fort Caswell, N. C.. and from further duty
at Fort McPherson, Ga. He has been or
dered to Fort McPherson, Ga., for the put
pose of supervising the shipment of cer
tain public property at that post, and upon
the completion of this duty he has been
ordered to Fort Fremont, 8. C-. for duty.
Cook Jessie Colamsn. Troop B. 0th Cav
airy, has upon his own request been placed
on the retired list of the army.
Contract Surgeon James H. McCall has
been relieved from further duty at Fort
Moultrie. S. C.. and ordered to his homo to
report to the surgeon general of the army
for the annulment of his contract.
Second Lieut. Alden F. Brewster. Artil
lery Corps, has been ordered to the Fre
sidio of San Francisco, for temporary duty
with the Coast Artillery In order to pre
pare himself for his examination for pro
motion.
Second Lieut. William T. Carpenter, Ar
tillery Corps, has been ordered to assume
charge of the construction work at Fort
Rosecrans, Cal., relieving First Lieut. Wilt
lam H. Tobln. Artillery Corps of that duty.
Major Edward R. Norrls, surgeon, has
been ordered to duty at Fort Slocum, N. Y.
Capt. Ezeklel J. Williams, 5th Infantry,
has by direction of the President, upon his
own aplicatlon. been detailed as a profes*<ir
of military science and tactics at the North
Georgia Agricultural College, Dahlonega,
Oa.
By direction of the President, under the
provisions of law. First Sergt. Frank W.
Snlffln, Troop M, 7th Cavalry, upon his
own application, has been placed upon the
retired list of the army.
Major Richard H. Wilson, 8th Infantry,
and Capt. Frank B. Andrus of the same
regiment, have been ordered to Vancouver
barracks, Washington, for duty as wit
nesses In the case of Capt. Alga P. Berry,
Kth Infantry, who Is to be tried by gen
eral court-martial at that post.
Gutted by Fire.
CLEVELAND. Ohio. September 8.?The
Shafer & Becker building at 29-31 Michigan
street, occupied by various manufacturing
concerns, was gutted by fire today. The
loss will aggregate flOO.OUO.
Town Marshal H. O. Porter of MoCon
nellsvllle, Ohio, was shot and killed on the
street by "Woodie" Stewart, a ieimatnl