Evening star. [volume], October 17, 1907, Image 1

About Evening star. [volume] (Washington, D.C.) 1854-1972

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faf.
No. 17,189.
WASHINGTON, D. C., THURSDAY, OCTOBER 17, 1907-TWENTY-TWO PAGES. TWO CENTS.
THE EVENING STAR
WITH SUNDAY MORNING EDITION.
SualBMi Office, nth Btr??t and PeniuylT*jiia At*.
The Evsaing SUr New?p?per Company,
TaSODORI W NOTES, PmMini.
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CORNER IN COPPER
CATCHEHOMPiY
Gross & Kleeberg Forced to
Make an Assignment.
F. A. HEINZE INVOLVED
(
Firm of Otto Heinze Temporarily
Suspended.
STORY OF COUP THAT FAILED
Attempt by Operators to Squeeze
I
Some of the Big Brokerage
Houses.
^ORK, October 17.?Sentimen. *.r
^ all street today before the opening n{
the stock exchange was divided between i
a feeling of relief that the situation i
created by the United Copper manipuia- !
tlon had been cleared up and a certain
amount of nervousness lest the failure of
Gross & Kleeberg might have an un
favorable effect generally. That firm's
claim that their Inability to me*t their (
obligations was due to purchases of
United Copper made for Otto Heinze &
Co.. but not accepted by them, brought
the name of F. Augustus Heinze into the
Wall street comment, although it was
denied that he is interested in the firm of
Otto Heinze & Co This firm is composed
of Otto C. Heinze, Arthur P. Heinze and
Max H. Schultze.
1- Augustus Heinze has been a promi
nent figure In New York financial circles
since the settlement of his long-drawn
out litigation with the Amalgamated Cop
per Interests over Heinze's Montana (
properties. It was understood that he re
ceived a large sum In cash as part of the
settlement agreed upon. It was soon af
teiwurd that he became president of the
Mercantile Na'tional Bank, one of the
large financial institutions of the city.
F. Augustus Heinz ? resigned the presi
dency of the Mercantile National Bank
today. W. D. Ridgely, controller of the
currency, lias been Invited to accept the
presidency.
Late last night there was a conference
on the situation at the home of Charles
^ Morse, who also is heavily interested
In the bank. At the close of this con
ference It was rumored that F. Augustus
Heinze had agreed to resign the bank s
presidency today and that he would be
?ucceeded by William B. Ridgely, con
troller of the currency. Mr. Ridgely,
however, denied that he had accepted the
presidency of the bank. \>nlle the rumor
of Helnze's resignation was entirely un
official, It was circumstantial in that it
was stated that a meeting of the bank's
directors would be held today.
Heinze Makes a Statement.
F. Augustus Heinze Is one of the most
picturesque and remarkable figures in
American linance. A graduate of the Co
lumbia School of Mines, he want west al
most without capital and began the de
velopment of copper properties which
brought him Into conflict with the great
Anaconda Company, now a part of the
Amalgamated Copper Company. This con
flict lasted for years and was fought out
from court to court, until a year or more
ago a compromise was effected. The
terms of the peace agreement were not
mado public, but It was known that
Heinze received enough as his share to
make him several times a millionaire.
F. Augustus Heinze said this morning:
"I am considering resigning from the
presidency of the Mercantile National i
Bank, but whether my resignation wiil b- .
tendered at ti e meeting of the board of I
directors today I cannot say. The trou- '
t.l s of the United Copper Company are
interna! arid were brought about by dif- 1
fi renoes between certain Interests. I have
fnuch to do at this time in bringing about
a settlement of affairs, and there is noth
ing more that 1 can say at thin time."
Mr. Heinze arrived at ills otfkv at the 1
' M. rcantlle National Bank earlv and held
Several conferences with otiicials of th -1
bank and seviral callers.
Air. !i "iilZe said he has not disposed of !
rls stock In the Mercantile National
Bark, and he added that the control of
the rmrtttution will rest Just where it nas
in the past.
The curl, market, to which a'! tt.e trad
ing :n I nited Copper shares is confined
Op >ned today active and excited. 1'nited
Copper was weak and aelive. The tirst
?ale Of the Common stock was at J13 as i
compared with tiie closing price of' }lo !
last night. It quickly dropped to J10 and '
then recovered to Jl-iio.
The strength of Consolidated Steamship
Company's bonds was a feature of the
opening of the market. These bon.is
which were weak during the excitement
?f yesterday, sold today at 21>4. as com
pared with a closing price of lov. last
l)>ght. The Consolidated St-amship Com
pany Is operated by Charles W. Morse
who Is associated with F Augustus
11 iaae in the Mercantile National Bank.
One Firm Suspended.
Otto Heinze & Co. made the following
Statement at the opaning of the stock
exchange:
Arthur P. Heinze In no longer a mem
ber of the firm of Otto Heinze & Co. The
Arm of Otto Heinze & Co. feels Itself per
fectly solvent and will meet and pay a'l
Its just and legal obligations In full. The
firm, however, refuses to pay obligations
which It does not consider legal or just
until a proper adjudication of the matter j
has been mad? Rather than submit to
such unjust demands It prefers to permit I
Itself to temporarily be suspended from !
the privileges of the stock exchange "
Kor som- time past th ? situation in the !
copper shares has been rather unfavor- I
able. For a number of weeks the Amal
gamated Copper Company has been hold- I
Ing down the production of its mines to '
about one-half its normal output because
of a heavy ov. rproductlon of the ore and !
the. refusal of consumers to buy at the
prices which had prevailed Since this
reduction of output was put Into op-ration
the price of the metal has slowly but
steadily been declining.
Following the policy of the Amalgamat
ed Copper. Clark und Phelps-Dodge int?r
ests. the Cerro de Pasco copper mines In
Bolivia. South America, it was announced
todav. have reduced their output to 75
per cent of the normal. The mines have '
been turning out at the rate of 24.000^00 I
i pounds a vear Thes ? mines are controll
ed by J. B. Haggln and the Hearst estate.
Heinze Expressed Confidence.
A lengthy conference was held in the
! office of Otto Heinze & Co. last night,
and a' its conclusion Otto Heinze, who
Is a brother of F. Augustus Heinze, the
dominant spirit in a number of Jarge
enterprises, expressed himself as confi
dent that the difficulties will be sur
mounted.
"The rumors which have been in circu
lation," lie said, "grossly exaggerate the
true condition of affairs. Everything will
be satisfactorily arranged."
Otto Heinze & Co., it was stated, were
heavily interested in the corner in United
Copper, and tfie conference was due to
this participation. It was insisted on
behalf of F. Augustus Heinze that he him
self had nothing to do with the luckless
corner.
An interesting story regarding the fail
ure of the corner was told in the finan
cial district. It was to the efTect that
its managers became impre-sed last Sat
urday with the idea that many market
operators had sold United Copper short,
for it declined more than eight points
Saturday, apparently under bear pres
sure. They determined to make a sharp
drive on the shorts, and Monday bid up
the price from 35 to 6<>. and were suc
cessful In forcing many shorts to cover.
KnCOuraged by 4hls success, they deter
mined to c-xecute Tuesday a brilliant coup
In the stock.
Swamped the Corner.
Twenty stock exchange houses were
carrying United Copper stock at the direc
tion of the managers of the corner. It
was decided to serva notices on these
to deliver their stock at the earliest pos
sible time, which v.as I! o'clock Tuesday
afternoon. It is tak> n to have been the
belief of the managers of the corner that
they would find many of these houses
bare of the stock because it had been
loaned to traders short of the market
or put up In banks as security for loans,
and that the brokers would have to
default in part in their deliveries. In
this event the managers could buy in
the stock under the rule and force the
delinquents to pay the difference between
the purchase price and the price at which
the stock was carried for them on each
firm's books.
Every one of the twenty brokers, how
ever, produced the stock in such sur
prislngly large amounts that the man
agers were eventually forced to refuse
delivery, and the collapse of the corner
followed. Other curb securities sold oft
Sharply following the collapse of United
Copper, the most important of which was
the 4 per cent bonds of the Consolidated
bt-amship Company. This company is j
Charles \\ . Morse's combination of coast
wise steamship companies. The decline
of the Mors* bonds was accompanied by
a rejiort that Mr. Morse had a disagree
ment with F. Augustus Helnza, but this
was declared to be without foundation
in r>oth Heinze and Morse Quarters. Mr.
Heinz" and Mr. Morse were in consulta
tion often in the course of the day, and
seemed on the best of terms.
RISE OF A. F. HEINZE
PICTURESQUE FIGURE IN NEW
YORK FINANCE.
Special Dispatch to The Star.
NEW YORK. October 17.?F. Augus
tus Heinze. who founded the fortunes
of his family In copper, and who suc
cessfully fought the Standard Oil Com
pany. has been forced, through the out
come of his brother's operations In
United Copper, to resign the presi
dency of the Mercantile National Bank.
His formal retirement from the lead
ership of the bank's affairs was an
nounced after a meeting of tlie direct
ors. which began today at 11 o'clock.
i tils step was decided on at a meeting,
lasting until after midnight last night,
In the house of Charles AV. Morse, 785
5th avenue, at which were present, be
sides Mr. Heinze and Mr. Morse, E. R.
Thomas, who was the direct means of
getting Heinze on the board of di
rectors of the bank; David A. Sullivan,
representing Heinze's Brooklyn banks,
and O. B. Bergen.
The directors' meeting lasted until 12:30
o'clock, when Mr. Morse announced that
Mr. Heinze had resigned. He alsj an
nounced that William B. Ridgely, con
troller of the currency, had been asked
to take the presidency of the bank.
Rather Embarrassing.
The break in I nited Copper on the curb
and its sudden advance under the buying
operations of Otto Heinze & Company
and Gross k Kleeberg have put F. Au
gustus Heinze in as embarrassing a po
sition as he has been any time in the
course of a spectacular career. For years
he had been laying thi foundations on
which he intended to build tins stock into
another Anaconda. He had carefully
guarded its course in the market and al
ways cheeked any drives at it before
they had time to get headway. But a
j ear or two ago his banking Interests be
gan to grow so fast that th -y pushed the
copper interests into second place. Heinze
sold a great deal of his copper stock and
waged a successful tight against Edwin
Gould for the Mercantile National Bank.
Under the noses of tlie Gould guns, at
ll'-' Broadway, he captured the presidency
of the bank, and v.ilh his ally. E. R.
Thomas, created a new board of directors.
Meanwhile Heinze s brother Otto, to
gether with Max Schulte and A. P.
Heinze, fotroed the stock exehange firm
of utto Heinze & Co. They took up
United Copper and pushed it in the mar
ket. On Monday and Tuesday they we're
persuaded because of a rapid decline in
the price of United Copper, that members
of the supporting pool were disposing of
stock In violation of their agreement, and
that considerable short selling was ac
companying their action. So they refused
to permit the transfer of any pool cer
tificates. They fo.owed up this measure
by instructing their brokers. Gross &
Kleeberg, to buy United Copper all the
w a> u;> tiie scale and to demand prompt
deliveries. The Heinze firm and Gross &
Kleeberg started to buy all the stock
offered.
Aid Is Promised.
The result is already history. Stock
poured In on them from every conceivable
source, and they, unprepared for such a
contingency, were forced to adopt meas
ures of dela>. Gross & Kle berg appealed
to them for money to meet a similar situ
ation. There was none and Gross & Klee
berg had to assign yesterday afternoon
while stocks. particu!ar!y Heinze's spe
cialties. were slaughtered about them
While he was considering his resigna
tion from the presidency of the bank
Helnse was busy in oth< r directions, ral
ly i ill's friencs to the support of his
brothers' firm, besieged by the demands
of brokers trying to efTect a delivery of
United Copper to the harassed broker"
It was said last night that he had se
cured the .promise of aid from several
sources and that Otto Heinze & Co will
be able to take the stock offered to them.
In turn this wi.l probably mean tnat
Gross & Kleeberg will be able to resume
business at an ea.r'.y date.
Postmaster General Meyer's Trip.
Postmaster General Meyer plans to go
to Chicago early next month to address
a large gatharlng of representative busi
ness men and financiers on the advan
tages of a parcels post.
c<
BROKERS ARE NERVOUS
SEVERAL THINGS HELPED TO
CAUSE SLUMP IN PRICES.
NEW YORK, October 17.?Under the
combined Influences of the collapse of the
United Copper Company and the failure
of Gross & Kleeberg, added to the gen
erally pessimistic sentiment that has pre
vailed for weeks past, the stock market
today opened nervous and soon devel
oped a weak, reactionary tone. Southern
Pacific and thj copper shares were de
cidedly weak and thera was heavy selling
of the United States Steel stocks. The
consequence was a break In some Issues
through the lowest prices touched yester
day. Union Pacific in the first forty-five
minutes of trading sold down to 116%,
Amalgamated Copper to 48%. Reading to
86%, St. P~ul to 112% and Northern Pa
cific to 116.
Sentiment was further unsettled by
news of the failure of Haller, Sohle &
Co^, an old banking houSe of Hamburg,
Germany, with liabilities of from $3,50o,
000 to $4,000.<K)0. This firm did a large
business with European industrial con
cerns.
Toward 11 o'clock there was a rally In
the market and a somewhat more cheer
ful feeling prevailed among the brokers,
who took tile view that the market had
acted better in the first hour than might
have been expected. It was said also that
all of the weak points In the banking
situation had been taken care of and that
the Individual necessities of one very
prominent capitalist had been supplied.
The total sales of stocks In the first
hour were 3J!3,750 shares.
PAN-AMERICAN PROGRESS.
Addreis by Director Barrett in New
York Last Night.
NEW YORK, October 17.?John Rarrett,
director of the International bureau of
American republics, in an address here
said of the coming conference of the Cen
tral American republics in Washington:
"The conference will be one of the most
important international gatherings that
has ever assembled In North America. If
it results in a treaty which will bring
permanent peace to that Important sec
tion of the American continent a new era
will be inaugurated In the history of pan
American unity and progress. While It is
not possible for me to discuss the political
phases of the conference or the different
questions which are to be considered, I
am at liberty to comment upon what is at
stake In the commercial and material de
velopment of Central America.
"These Central American republics
possess a wealth of agricultural products,
mineral resources and timber that will in
vite the Investment of great sums of
American and European capital; railroads
will be built In all directions; new towns
will spring up; Immigration will pour
Into them from different parts of the
world, and steamship connections with
the United States, Europe and South
America will be Increased and improved,
providing the Washington conference has
a successful issue.
"It Is a safe prediction that If all the
countrlc-s sign a convention that has the
moral support of both the United States
and Mexico, not only the United States
but all the world will be surprised by the
commercial, material, economic, educa
tional. social and general development of
the Central American states."
Jersey Day at Jamestown.
NORFOLK. Va.. October 17.?Marked
by the presence of the governors of four
states and with ldr-al weather New Jer
sey day was today fittingly observed at
the Jamestown exposition. Gov. Stokes,
accompanied by the New Jersey senators,
representatives In Congress and promi
nent state officials, participated. The
day's exercis-s were held . at the Lee
parade reviewing stand, from which Gov.
Stokes and party witnessed a military
parade. XTpon the reviewing stand with
Gov. Stokes were President Tucker and
Gov. Swanson of Virginia, Gov. Wood
ruff of Connecticut and Gov. Cutler oi
Utah and the New Jersey party.
Bishop of London Sails for Home.
NEW YORK, October 17.?Rshop In
gram of London leaves for home on the
Celtic today. He says he has had a most
enjoyable visit.
DNFUSION IN GOTHAMTOV
MEHMED ALI BEY ARRIVES
FIRST TURKISH AMBASSADOR
TO THE UNITED STATES.
Mehmed AH Bey, the flrBt Turkish am
bassador to*tie Untied States, has arrived
In this city, and will present his creden
tials to the President at the first favorable
opportunity. He Is accompanied by his
wife and five children?Lela, one year old;
Xoussonh, four years; Sonad, five years;
Izzden, seven years, and 8herife. nine
years. The latter Is a pretty child, and
talks English well. Their aunt, Mak
Boule, Is In the party, and the ambassa
dor's secretary is Ihsan Bey.
The party crossed the Atlantic on the
steamer that arrived at New York Tues
day.
Ambassador Mehmed All Bey succeeds
Cliekib Bey, who was appointed Turkish
minister to the United States. The eleva
tion of the Turkish mission from a lega
tion to an embassy is the result of simitar
action by the United States government
in the case of Its diplomatic representa
tive at Constantinople.
STANDARD OIL SUIT
PURCHASE OF THE MANHAT
TAN COMPANY REHEARSED.
NEW YORK, October 17.?James A.
Wallace, president of the Central Trust
Company, testified at the hearing today of
the federal suit against the Standard Oil
Company that his company had pur
chased the Manhattan Oil Company of
Ohio in 1898 for .$1,954,400. Mr. Wallace
said that Flower & Co. advanced $500,000
and-the National City Bank placed $1,454,
400 to the credit of the People's Gas Light
and Coke Company of Chicago and 19,514
shares of the Manhattan Company were
purchased, which were held as collateral
for the money paid out for the stock.
I-ater, the witness said, the People's Gas
Light'and Coke Company paid to the Cen
tral Trust Company the $1,954,400, and
took the Manhattan stock. Mr. Wallace
said he knew nothing further regarding
the Manhattan transaction.
Wm. Rockefeller Coming.
Mr. Rosenthal, one of the counsel for
the defendants, said that William G. Rock
efeller, assistant treasurer of the Standard
Oil Company of New Jersey, had tele
graphed him today that tie would be in
the city tomorrow prepared to go on the
witness stand.
Walter B. Cutler, selling agent of the
Atlantic Refining Company, was a wit
ness after Mr. Wallace had been excused.
He told of the selling operations of the
Atlantic Refining Company in and about
Philadelphia, where, he said, several in
dependent companies operated under the
control of the Standard. Mr. Cutler In re
ply to a question said the Standard made
no claims that these companies were inde
pendent. The Standard, Mr. Cutler said,
made no announcements concerning the
ownership of these independent companies.
BABY-RAISING* CONTEST.
Michigan Women's Clubs in Novel
Pennant Race.
Spcclal Dispatch to The Star.
DE7rROIT, Mich., October 17.?What
woman's club In Michigan will win the
proud distinction of mothering the most
babies in the next year?
This is the great question that was dis
cussed last night at the meeting of the
State Federation of Women's Clubs at
Flint. And this Is how It all came about:
At the meeting last evening the secre
tary in her official report awarded to the
Portland Literary Club at Flint the tow
ering honor of the championship birth
record of the state. 8ixty-four women
compose the club, and in the last year
eight became mothers.
The presidents of half a dozen clubs
challenged the x'ortland club to enter a
baby-raising contest for the next year. It
was accepted Instantly. The members of
the Portland club say that In a year s
time they will come to the fore not with
eight babies, but a dozen or more. The
others of this sraat pennant race say
they will surpass even a record of twelve.
COMPETES WITH CABLE
REGULAR WIRELESS SERVICE
TO GREAT BRITAIN.
Special Cablegram to The Btar.
LONDON, October 17.?The new Mar
cohl service opened today. Lord Strath
cone, high commissioner (or Canada In
Liondon, sent the first message. It was
addressed to Sir Wilfrid Laurier, the
Canadian premier, and congratulated him
on the establishment of a new link be
tween the mother country and the Do
minion.
Canadian Station.
GLACE, N. 8., October 17.?The first
eastward message has been filed here. It
Is from Sir Wilfrid Laurier, premier of
"the Dominion of Canada, to the London
Standard. In it Sir Wilfrid will con
gratulate the English people upon the
establishment of tills new means of com
munication between Great Britain and its
American colony.
The second message filed for westward
transmission embodies expressions of
opinion from eminent Englishmen, Amsrl
cans, Canadians and the English, French,
German and Italian press. All show ap
preciation of the Marconi system and of
the reduction of rates.
STORY OF THE WIRELESS.
Marconi Sent First Message, 183
Miles, in 1901.
NEW YORK. October 17.?It was on
January 25, 1901, that Slgnor Marconi
established wireless communication be
tween St. Catherine's, on the Isle of
Wight, and the Lizard, In Cornwall, a
distance of 183 miles, thus proving the
principle of the non-interference of the
curvature of the earth, which had been
anticipated by many scientific men who
had investigated the newly discovered
principle of wireless telegraphy. These
results justified Marconi in recommend
ing the erection of a high-power sta
tion. with the object of telegraphing
wlrelessly across the Atlantic. Such a
station was erected at Poldhu, in Corn
wall, and on December 12, 1001, the
first clear and Intelligible signals sent
across the Atlantic were received from
Poldhu at a temporary station near
St. Johns, Newfoundland
In July August and September of 1902
Marconi at the invitation of the Italian
government, nade a cruise in the war
ship Carlo Alberto, and during the voy
age carried out important tests in wire
less telegraphy. During these experi
ments messages transmitted from Poldhu
were received across land and water (1)
nparlv as far as Kronstadt in the Gult
of Finland, Russia, a distance of 1.4U0
miles- (2) at Gibraltar across the whole of
Spain' over a distance of 1.000 miles, and
(3) in' the Mediterranean off the coast of
Corsica over a distance of 1,000 miles, al
though the whole of France and part of
the Alps intervened between the two sta
tions. Messages in nearly all positions
and places visited by the cruiser were re
ceived either on Marconi's receiver, work
ing a tape Instrument, or by means of
his magnetic receiver.
As a result of the success of these tests,
the Italian minister of marine, at the re
quest of the King of Italy. Issued orders
rtiat the Carlo Alberto should be placed at
Marconi's disposal for the purpose of as
sisting him in the establishment of com
munication between Canada and England.
On the 20th of October, 1902. the Carlo
Alberto left Plymouth and sailed for Syd
ney Nova Scotia, and messages were re
ceived from Poldhu throughout the voy
age to Sydney, a distance of 2,500 miles.
After-a few weeks' preliminary work at
the station which had been erected at
Glace bay N. S., a message was trans
mitted on December 16, 1902. to London.
Marconi then proceeded to his other high
power station, which had been erected at
CaDe Cod, and early in January, 1903,
sent a complete wireless telegram across
to Poldhu from the President to the King
of England.
EVIL IN" MILK TRAFFIC.
Chicago Official Says 00 Per Cent
Sold Is Impure or Adulterated.
CHICAGO, October 17.?Declaring that
90 per cent of the milk sold in Chicago is
impure or adulterated. City Bacteriologist
J F Blehn last night advised the mem
bers of the Chicago Medical Society to
work for the passage of n more strtngenl
law to regulate the sale of the beverage.
He asserted the commonest evil In thf
milk traffic is "skimming" the cream
from the tops of cans and bottles and In
jecting a coloring fluid to give the resi
due the color of cream milk.
Another evil uncovered frequently by
the Inspectors of the health departments
Is watered milk, which contains the germs
of infantile cholera.
AIR COURSE IS READY.
Way Cleared for the Balloon
Racers.
ST. LOUIS. Mo.. October 17.?Two bal
loon flights are scheduled to be made
during this afternoon. The flights will
be made for distance. No exact time ha*
been set for the ascensions, but one will
closely follow the other from the Laclede
gas plant, at 2d and Rutger streets. J.
C. McCoy and Capt. Chandler will go up
In government balloon No. 10 used by the
Signal Corps. Alan R. Hawley, accom
panied either by Augustus Post or Leo
Stevens, will rise in the Psyche. There
will be no attempt at a race. The aero
nauts Intend to remain up ail night If
the weather conditions permit. The
weather is fair and ideal.
This afternoon the members of the
board of governors and contestants In the
International balloon contest will be enter
tained by the officers at Jefferson bar
racks. Arrangements at the ascension
grounds are practically completed. Every
thing promises to be In readiness when
the races begin next Monday afternoon.
THE LEGION OF HONOR.
Annual Session at Philadelphia.
District Man Elected to Office.
PHILADELPHIA, October 17.?The Na
tional Convmandery of the Military Order
of the Loyal Legion, in annual session
here, has elected the following officers:
Commander-in-chief, Gen. Grenvllle M.
Dodge, New York; senior vice command
er, Rear Admiral John C. Wilson, Cali
fornia; Junior vice commander. Oen.
John P. Boles, Missouri; recorder-ln
chlef. Col. John P. Nicholson, Philadel
phia; registrar-in-chlef. MaJ. William P.
Huxford, District of Columbia; treas
urer-in-chlef, Paymaster George DeFor
rest Barton, New York; chancellor. Bre
vet Capt. John O. Foehrlng, Pennsylva
nia; chaplain-in-chief, Brevet MaJ.Henry
F. Burrage, Maine; councilors-ln-chlef,
MaJ. Henry L. Swords, Iowa; MaJ. A. M.
Vandyke, Ohio; Capt. J. C. Courier, Cal
ifornia; Lieut. L. H. Chamberlain, Mich
igan; Maj. Charles T. Amory, Massa
chusetts.
Much of the time of the delegates has
been occupied with a discussion of the
revision of the rul?s governing eligibility
for membership. The rules require a
member to have been a commissioned of
ficer In the army or navy. Cases were
cited of men who had been appointed,
but whose appointments had not been
confirmed by Congress, and who were
barred from membership on this account,
and It was held that this disbarment la
unjust.
The matter was referred to the congress
of the order, which alone has power to
change the rules.
SECRETARY ROOT RETURNING.
Bringing Gift of Pottery From
Mexico for President.
Special Dispatch to The Star.
SAN ANTONIO, Tex., October 17.?
Laden with gifts from Mexico, Secretary
Root and party made a twenty-minute
stop In San Antonio yesterday afternoon
en route to Washington after a visit to
the republic of Mexico. Among the gifts
Is an elaborate piece of pottery for Presi
dent Roosevelt.
Secretary Root said that he was sur
prised at the number of Americans In
Mexico, and spoke of the Americanizing
Influence.
THE EUCHARISTIC LEAGUE.
Archbishop Falconio Central Figure
in Closing Session at Pittsburg.
PITTSBURG, Pa., October 17.?Arch
bishop Dlomede Falconio of Washington,
the permanent apostolic delegate to this
country, was the principal figure In tiie
closing session today of the International
Congress of Priests' Eucharlstic League,
now being held In this city. Archbishop
Falconio conducted mass In the cathedral
and later carried the sacrament in the
procession.
Under the direction of Bishop Maes of
Covington, Ky., resolutions were pre
sented to the congress which embody sug
gestions made in papers read during the
meetings here, some of which advocate
daily communion and the keeping open of
the Catholic churches late every night in
the year, so that young men and others
might enter and be subjected to holy In
fluence.
The next conference of the Eucharlstic
League will be held In Notre Dame Uni
versity at Notre Dame, Ind., in August of
next year.
MAY CLOSE UNION IRON WORKS
Charles M. Schwab Now on an In
spection Tour.
SAN FRANCISCO. October 17.-Charles
M. Schwab, former president of the
United States Steeel Corporation, arrived
In this city yesterday. When asked If he
came at the Instigation of the government
to arrange for the care of the big fleet
In December, he said he was not at liberty
to discuss the situation. He said:
"I am here to determine whether I shall
continue to operate the Union Iron works
or to close them down for good. There Is
no truth in the statements that a sale
of the works to the government Is con
templated."
"We have lost money continually during
the three years we have owned the plant.
On the last contracts for three warships
we lost I2.700.WW. We have been hamper
ed by a scarcity of labor and by Indus
trial troubles. I Intend to go over the
situation carefully and If I decide to keep
the works open they will require consid
erable additions. The plant at Mare Island
is Insufficient for the maintenance of the
fleet."
Mr. Schwab thought a fleet on the Pa
cific was a necessity, as this ooast was as
much In need of protection as the At
lantic. Concerning his Investments in
Nevada mines, he said he was greatly
disappointed In that country, although
most of his own Investments had proved
satisfactory.
Emperor's Condition Unchanged.
VIENNA, October 17.?After a more
restful night, which was only interrupted
by occasional coughing spells, Emperor
Francis Joseph rose slightly latsr than
usual th!s morning. The medical exam
ination of the patient resulted In a state
ment that the fever had disappeared and
that the catarrhal symptoms had net In
creased. which was regarded as being
somewhat favorable. Otherwise the gen
eral condition of the emperor was un
changed. ,
Wea her.
Fair tonight and tomorrow. J
URGES A RESPITEi
PLEA OF HARRIMAN
Gets Confidential With the
Newspaper Men. .
TIRED OF COURT ATTACKS
Wants Them to Stop Printing Rail
road Inquisitions.
ILLINOIS CENTRAL MEETING
Still a Standoff Between the Oppos
ing Factions?A Recess Till
This Afternoon.
CHICAGO. October 17.?The meeting of
the stockholders of the Illinois Central
railroad adjourned until 3 o'clock. No
vote was taken on the election of direct
ors.
When the annual meeting of the Illinois
Central stockholders reconvened today it
was evident that the prospect of a vota
on the election of directors was small.
The proxy committee which worked for
the greater part of the night had. by
the time the meeting opened, gone only
through the letters "A" and "B" and had
gotten a little way Into "C." At the rate
of progress thus far made by the com
mittee a vote can hardly be reached be
fore tomorrow. The Harrlman faction
was anxious for a "showdown" when it
was evident that the vote could not bs
taken Immediately. Mr. Cromwell pro
posed that all the proxies be submitted
to the meeting as they stood, and that
a test of strength be had In this way.
Rival Watchmen.
Attorney Farrar, for Mr. Fish, objected
to this as useless, saying that it was
known that many revocations of proxies
had been given, and that the "show
down" would not be an actual test of
strength. He contended that the method
of checking the proxies, as the commit
tee Is now doing it, was the only safe and
proper way to manage the affair.
A touching expression of the mutual
confidence entertained by the warring
factions was shown last night when both
the Harrlman and Fish proxies were
placed in one of the vaults in the Illinois
Central offices. Both sides promptly
placed watchmen outside the vault, and
they remained on duty until thp proxy
committee called for the papers tbday.
Harriman Talks.
During the debate between the attorneys
'that preceded the calling to order of tihs
meeting Mr. Cromwell proposed again
that a "showdown" should fce had. He
asked that all the proxies of both sides
be thrown on tha table la the stockhold
ers' meeting, and that the confllctfnc
proxies shouid be ruled out. This would
kill off all the revocations, and the propo
sition was emphatically refused by the
attorneys for Mr. Fish.
An hour after the scheduled time tbs
meeting was called to order by President
| Harahan, who said:
"The proxy committee is not ready to
report, and we will wait a few minutes
to see if it can give us anything definite
before we adjourn."
The meeting then settled down to
another period of waiting, and during
this time Mr. Harrlman pulled his chair
up to the press table and declared hs
believed it would be an excellent thing
for the country if co-operation could
be secured between conflicting Inter
ests, without recourse to such exami
nations as are conducted by the inter
state commerce commission, and slml?
lar inquisitorial bodies.
Attacks on Capital.
"The attacks on capital that have been
going on throughout the country for so
long," he said, "are enough to make a
man sick. The country is tired of It,
and the newspapers must git something
else to print, or they will not sell any
longer. The thing for the parties to do is
to hold a conference, with representa
tives of the press present, and in that
manner avoid all this flood of exparts
statements. Both sides can then have
a fair hearing.
"Sometimes a railroad may be techni
cally guilty of violation of the law when
it is not so in spirit. A recent exam
ple of this is the overflowing of the Colo
rado river along the line of the Southern
Pacific railway. The government was not
inclined to take up the problem of forc
ing the river back into its banks, and
turned the job over to us, and we paid
for it all.
"When we came to ship material out
there, the Colorado Improvement Com
pany asked for a rate on the stuff which
was to be used in damming the river.
We quoted them the same tate that the
railroad would charge against itself for
the transportation of Its own material.
Technically this was a violation of the
law, because It was a lower rate than
would be given ordinarily to other people
in the same business as the Colorado
Improvement Company. Practically, how
ever, as we paid for everything, we were
making only the usual rate that we make
to nu selves.
"Now, on a partisan statement of the
facts, that affair could be twisted Into a
violation of the law. If no exp anatlon was
afforded. It is to avoid such misconstruc
tions as would be possible under similar
circumstances that I deplore these con
stant Investigations, and I believe that it
Is the newspapers of the country which
can best create a healthier condition of
public opinion."
Takes a Re jess.
James A. Patten of Chicago then mads
a motion for an adjournment until 9
o'clock tomorrow morning, saying that he
understood that only 5 per cent of the
proxies had been examined.
Attorney WHliam Nelson Cromwell, for
Mr. Harrlman, moved as ..n amendment
that the adjournment be taken until 3
o'clock thiB. afternoon. Mr. Cromwell's
motion prevailed.
The attendance at the meeting today
was much smaller than at the opening
session yesterday, not more than half
as many stockholders being present.
Fish Again Demonstrates.
Probably the most interesting Incident*
of yesterday's meeting of Illinois Central
directors, which preceded the annual
meeting of tie stockholder.-*, was a tilt
between C. A. Peabody, prcs dent of the
Mutual Life Insurance Company, and
Stuyvesant Fish. Mr. Peabody is regard
ed as one of the most dignified men In
New York. A dispute arose as to certain
action at a previous meeting. Mr. Fish
made a statement of his position in the
matter, and Mr. Peabody declared Mr.
Fish had not voted the way he was then
voting upon the same subject.
One word led to another, and Mr. Pea
body all but passed the He to Mr. Fish.
He stated that what Mr. Fish said was
far from the truth. Mr. Fish arose and
shouted at hi* opponent: .....
"Mr. Peabody, you cannot talk to mf