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Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, October 14, 1910, Image 1

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M'MDKK 13. PRICE: 50 CENTS I'KR MONTH
■ i i
BELL GREETED IN
HOME CITY WITH
RED FIRE'S GLARE
Candidate Hurls Back to Oppo
nent Insinuating Questions
Johnson Propounded
REFUSES TO ATTACK RIVAL
Audience Which Packed Theater
to Hear Democratic Standard
Bearer Wildly Applaud Him
. [Special to Th* Herald]
VALLEJO, Oct. 13.—Theodore A. Bell
'made a triumphal entry into tho town
of his birth tonight. For more than
two hours the town was in the glare
of red fire and rockets to receive him.
Men who knew him when he was a
poor farmer's son struggling for an ed
ucation crowded about him to grasp
his hand and to wish him victory in
his candidacy for the governorship of
California. The reception surpassed
even the enthusiastic greeting accorded
President Roosevelt several ye~rs ago.
Visitors came by special trains, auto
mobiles, farm wagons and afoot. One
train from Suisun brought more than
800 persons and. 200 came from Napa
alone.,
The meeting was held in the Farra
gut theater and it was necessary to
call out the entire police force to con
trol the crowd. The theator was
packed far in excess of Its seating ca
pacity of 1500 and Georgia street was
blocked with a crowd estimated at 2000
or more. It was necessary to arrange
an overflow meeting in order that Bell
and his running mate, Timothy Spel
lacy, might appear to acknowledge the
tumultuous greeting and present their
message. . .
TURNS TABUES ON OPPONENT
Bell replied to Hiram Johnson's In
sinuations that he is not free from
railroad control. He propounded the
following questions to the Republican
nominee; . ...
"When were you retained as special
prosecutor ln the San Francisco graft
cases?, - '.'.'
"By whom were you retained and by
whom were you paid?
B : "When was the first Indictment re
turned against Ruef and Schmitz?
."Did you know that Ruef served, as
one of the campaign • committee hav
ing Olllett's fight in charge until the
end of the campaign? "JJSSw
"Is it not a fact that your prosecu
tion of Ruef and _chmltz was a pro
fessional matter for hire and . not a
matter of patriotism? •
"Do you think it was within my
province to' interfere at, that stage,
when Mr. Langdon, the district at
torney and sworn prosecutor had time
to campaign the state as a present
candidate?" - ■
'' The questions hurled at Johnson set
off the enthusiasm of the audience and
for several minutes there was a wild
demonstration. «
"I will make no personal attack on
Johnson," said Bell. "I have left in
structions at headquarters that he be
treated as a gentleman. Throughout
this campaign I have said a hundred
times that I accord him the respect of
believing him sincere. If I can't win
G without vlllifylng my opponent, I don't
want to win." v , ".
SAN FRANCISCO GIVES
GREETING TO JOHNSON
Republican Candidate Receives
Enthusiastic Reception
SAN FRANCISCO, Oct. 18.—By an
audience that filled Dreamland rink to
overflowing, Hiram Johnson, Republi
can candidate for governor, was wel
comed home tonight after 1 his tour
covering the greater part of the state.
Johnson's appearance brought an out
burst of applause that continued for
several minutes. The demonstration
was repeated when • the party leader
took his place on the platform.
City Attorney Percy V. Long pre
sided. Following a brief address by
A. J. Wallace of Los Angeles,-candi
date for lieutenant governor, Johnson
was! Introduced. 'He spoke for about
forty-five minutes. His speech rang
with denunciation of those who had
corrupted state politics. He renewed
his campaign pledge—the elimination
•of railroad influence from ' state af
fairs. The speaker »again : referred to
his' opponent, Theodore Bell, j inquiring
what the Democratic standard bearer
had done when civic . uncleanliness in
San Francisco was exposed. .
NEW MEXICAN CONSTITUTION
WILL TAKE 90 DAYS MORE
ALBUQUERQUE, N. M., Oct 13.—
The committee appointed to draft ar
ticles for the "constitution of New
■ Mexico held public seslsons again to
day ! and the constitutional convention
will reconvene at 2:30 tomorrow after
noon. . ♦■ ■
, •It is' now 'oelieved at least-ninety
days will be required before the con
stitution will be completed. .' Commit
tees have :. rushed - gallantly : into - the
work of drafting articles and tentative
drafts, only to find upon careful study
and Investigation that their phraseol
ogy will not withstand the test of the
courts. -; ■'.- i ;,..| _i.
GREAT TROPICAL STORM
SWEEPS CUBAN PROVINCES
KET WEST, Fla., Oct. 13.—A semi
tropical storm this afternoon swept the
provinces . of Santa .' Clara, < Matanzas,
Havana and Pinar, del Rio, Cuba, ac
cording ' to. wireless advices received
here tonight. , The-telephone service in
Havana was ■ badly crippled. Heavy
rains accompanied the high winds. At
8 p. m.the storm was reported in the
Yucatan channel, moving In a wester
ly . direction. ' , '
LOS ANGELES HERALD
INDEX OF
HERALD'S NEWS
TODAY
FORECAST
Tor Los ' Angeles .. and vicinity! Cloudy
Friday; possibly showers In the morning)
clearing during the day) light east wind,
changing to . south. Maximum temperature
yesterday, 08 degrees: minimum tempera
ture, 49 degrees. ( „
LOS ANGELES
Meeting to discuss Owens river power In
■ vites electric corporations to* make pro-"
posals for taking over "Juice." PAGE 1
Interest ln the pursuit of Times dynamiters
- centers In Ban Francisco. PAGE 4
Four ships will be added to the Bates-
Chesebrough line on this coast. PAGE 4
Fifty Los Angeles business men to sell
tickets (or | Times sufferers' benefit. PAOE 4
Bbeil club protest- to dirt fill in Arroyo
Heco. - . PAGE 6
William Saloman, railway financier, visits
Los Angeles. PAGB S
Mrs. Gertrude Drlggs, convicted of forging
land leaso, permitted freedom on $6000
bail because of ill health. PAGES 8
Frank White, who wa* messenger for Har
per, becomes . personal body guard ■ of
Mayor Alexander. PAGE >
Ocean storm causes rain In city and many
. southern California towns. PAGE 8
Patent* are received by Los Angeles land
office for desert land entries In Imperial
valley. . PAGE 8
Supervisors amend ordinance so that vlne
yardlsts can dispose of brandy. __,PA__ »
Postpone hearing of Mrs. Krauss, charged
with shooting mining man, to October 25.
PAOE 9
Mis* Gibson declare* she love* Millionaire.
Myers and had no Intention of shooting
him. , PAGE 9
Southern California Homeopathic society
charges legislators and judges show fav
oritism to allopaths. PAGE 9
Los Angeles distributing 200,000 1915 fair
postal cards. , , '/> • PAGE 9
Historian Lummis decline* to discus* wife's
• statement of marital Infelicities. PAGE 9
Speaker* at Labor Temple meeting eulo
gize Ferrer. • ; PAGE 11
California militiamen leave Camp Atasca
dero for homo this morning. PAGE 11
Republican county central committee ap
peals to- voters to await statement of
.Fredericks In reply to Woolwine. .PAGE 13
Lou Guernsey, assembly candidate, talk* to
young men's club, -' PAOH 13
Minor Moore and James Pemberton, Demo
cratic candidate* for state positions, ad- -
. dress audience at Long Beach. PAGE 13
Theaters. ->';.■/ PAGE 4
Society and clubs. > '..* PAOE 6
Personals. , PAGE 6
Mining and oil fields. ■ ■ PAGE i
Citrus fruit report*. PAGE 7
Market* and financial. PAGH 7
New* of the court*. PAGE 8
Municipal affairs. ■%. PAGE 8
Sports. . >'. v-'^ J '.' PAOE 10
Editorial and letter box. •*•'.• • PAOH 13
Politic*. . ;;-. PAGE 13
Cljy brevities.; -'"-'''' PAGB 13
Marriage licenses, births, deaths. • PAGE 14
Classified advertising. - . PAGES 14-16
Building permits. PAGE 18
Shipping. .'.*;?...'■ ; ' - PAGE 16
- ———■ ', \ ' m *■•.*•:*.
SOUTH CALIFORNIA - -
Santa Monica council will sell hundred
Ocean Park lota for delinquent school
taxes. ... ..:,:, : I • • ' PAGE 14
Vallejo chosen by Good Templars In ses
sion at Pasadena a* place for 1911 session.
-.. , ■•■ . , PAOE 14
Police claim C. A. —Insert, supposed lost ; ■
In desert, phoned company from Los An
geles of shortage In accounts. PAGH 14
Long Beach Order of Eastern Star ban
quets visiting grand officers. PAOE 14
COAST
Theodore A. Bell makes triumphal entry
Into home town. ' ' PAGB 1
Expert country life commission declared -
necessary at meeting of educators near
Sacramento. PAGE 2
Governor Glllett Issue* call for Pacific coast
congress. PAGE 3
Progressives control committees of Arizona
constitutional convention; corporation. at
torney* turned down. PAGE) 3
■ ..'. „, i ,
EASTERN
Ten million dollar investment company'
raided a* fraud; police seek bead of com
pany, who claims to have Indorsement of
" Bellinger. v , :', \ . PAGB 1
Duveen Bros. New York art store seized by
'custom* officials. PAGB 1
The Union Pacific bearing at St. Paul con
cludes. * PAGE 2
Former President Roosevelt tours Indiana
in Interest of re-election of Senator Bev
erldge. -•...•-_. PAGE 2
President Taft will visit Panama canal ln
November. ,•' . . . PAGE. 3
Odd ne# hospital endowed by Rockefeller 1* '.
for treatment of aristocracy of ailments.
PAGE 3
Aviator Molss#_t declares learning to guide
aeroplane easy as walking on stilts. PAGE 3
Effort started" to raise $1,000,000 by sale of .
Red Cross seals to war white plague.
t ,' . PAGE 3
President Taft to make trip to , Panama'
canal next month to Investigate big prob
lem*. '.;«,' ■'* PAGE 13
FOREIGN
French government threaten* drastic action j
to end general strike of railroad employes.
..,?*.'" - -PAGE 11
Japanese troops, slowly conquering the For
• mosa head hunters. PAGB • 8
«_—_
MINING AND OIL
Southern Paclflo grants do not include oil
contained in land, say* Editor Fox In •
answer to corporation lawyer,, ,:.,, PAGB •
Company is organized' at Prescott to de- j
velop Vlcksburg placer's. ' PAGB 8
Gold Hill will work Morning Star group -
near Clma. .i- ■■■--- PAQB J
CHANLER STILL FAILS TO
SETTLE WITH HIS TAILOR
NEW TORK, Oct. 13.—The execu
tion obtained by William : Barnes, a
Fifth i avenue tailor for $1062 . claimed
to be due for clothes bought by Robert
W. Chanler, husband '' of the ' singre,
Llna Cavalieri, was - returned In the
city court today by the sheriff's office
marked unsatisfied.
. The next legal '< step l to •be made. by
the tailor in the effort to get his money
will be an application I for -am order re
quiring • Chanler to submit to an . ex
amination ;in supplementary proceed
ings. ;•--...- ;". -„•
JOHNSON PLEADS GUILTY
i TO BREAKING SPEED LAW
; SACRAMENTO, "■ Cal., Oct. Hir
am W. Johnson, who with his son was
arrested ■ last. night for . exceeding : the
speed limit in his automobile, pleaded
guilty today. •' .'• -
The ; plea was accepted over the tele
phono sby ■ City Justice Anderson, the
defendant', having planned to 'leave
town ' in " the , machine \ before . the time
of calling court. A fine of $20 was im
posed. , - v
FRIDAY MORNING, OCTOBER 14, 1910.
FAMOUS N.Y. ART
STORE RAIDED BY
CUSTOMS OFFICER
Van Load of Antiquities Seized.
Frauds of Over $1,000,
--000 Charged
DUVEEN BROS. ARRESTED
Government Acts on Illegal Entry
' 3 Vases Listed for $1100;
Real Value $28,000
[Associated Press]
NEW YORK, .'Oct. 13.—The entire
Fifth avenue establishment of the five
Duveen brothers, known the world
over as dealers ln rare art objects and
antiquities, was seized by federal of
ficers today. Henry J. and Benjamin
D. Duveen, two of the firm, were
placed under arrest charged with con
spiracy to defraud the government out
of customs dues. , . .->-••;
Henry A. Wise, United States dis
trict attorney, in asking for extraor
dinarily heavy bail, $100,000, in the
case of Benjamin Duveen, said he had
evidence that the frauds would reach
more than $1,000,000 and that all four
brothers and an uncle, who make up
the firm, are implicated.
Bail was finally fixed at $50,000, which
was given. .^ - .
Henry J. Duveen was arrested on
the liner Lusitania when the vessel
reached quarantine late tonight. | He
was taken off on a revenue cutter and
hurried to the federal building for ar
raignment. / 'S •.'■--." '.
A search for undervalued articles be
gan and more than a van load of
"suspicious" goods was found. It was
then decided to place the entire ' es
tablishment under surveillance and
leave the customs Inspectors in charge
for the night.
$7.1,000 BAIL BOND
■ When Benjamin Duveen was taken
before United States Commissioner
Shields District Attorney Wise said
the case was the most important . the
government has had thus far to deal
with in' connection with importation
frauds. , He said information was re
cently placed In his possession tending
to show that the Duveens for years
had been defrauding the government
out of customs duties •on 3 imported
owrks of art . and • antique • furniture
by means of false consular invoices.
' The records .at ; the - customs house,
were hurriedly overhauled j and ! seemed
to substantiate the charges. Mr. ( Wise
declined to, give I out I the name lof his
informant, tonight.. Mr.. Wise said that
while the complaint | was based on the
Illegal. entry of three vases, the gov
ernment was In possession of many
fraudulent., importations. ,He added
that the consular Invoice • gave the
value of the three vases as $1107, while
their real value was $28,000.
The firm of Duveen brothers Is com
posed at Henry J., Joel J., Louis J.,
Benjamin J. and Joseph J. Duveen.
They have | establishments ln New
Tork, London and Paris.
Ball in the case of Henry J. Duveen,
the uncle,, has been fixed at $75,000,
which .was given. .-: .. •■.'; ' ,'*. . ■r.'.-O;/
SONORA CATTLE MAN DIES
FROM SHOT IN AMBUSH
Former Partner Accused of Set
tling Old Account
.'■■■.. •*'. v ■ I
• SAN DIEGO, Oct. 13.— chief of
police was notified today that Ypifanlo
Gallego, a cattle dealer of Sonora,
Mexico, l had been shot i from ; ambush
and died at his ranch a t&w miles be
low the line. ....-•■„
As' a result of this Information the
chief has ordered his men, to watch
for Pedro Morales and arrest him if
he appears here. Gallego was a part
ner of Morales in the cattle business
in this county years ago and was in
strumental in, causing the j capture of
Morales, who had killed a • deputy
sheriff near Los Angeles. For that of
fense Morales was sent to prison for
ten years. „He i was recently released,
and shortly afterward, coming to this
city, is reported to have declared he
would never rest until he had squared
accounts with Gallego.
The chief of police is also informed
that Gallego when dying declared his
belief that Morales was the man who
shot him.
CLAIMS COLORADO MINES
NOT PROPERLY INSPECTED
DENVER, Oct. That the coal
mines of Colorado are not, and cannot
be properly Inspected according to law
under - present: conditions, -.■■ was the
statement made by State Mine Inspec
tor • John D. Jones, ■ who arrived last
night' from Starkvllle, where he has
been aiding In recovering the bodies of
victims of Saturday's explosion.
"The stato is, willing to pay for but
one Inspector and: two deputies." ho
said. "If these worked night and day
they could not ■ Inspect all the , mines
of Colorado as the law requires."
SENATOR ALDRICH RETURNS
FROM EUROPEAN TRIP
NEW TORK, Oct. 13.—United States
Senator Nelson W. Aldrich ' who, with
members. of his family, has been in
Europe for a'■ month. returned today
on the Adriatic.
• "I, went away for my, health with
good results," said the senator. "I also
did a little work for the monetary com
mission." " ■
Senator Aldrich would not dlsouss
American politics. -
BARK SINKS; 7 DROWN
; CUXHAVEN, Germany, Oct. 13.—The
fishing..'steamer., Senator. Holthuffen
collided with and 'sank the Swedish
bai k Diana' today.; Seven. of the ' Di
ana's crew wore drowned..
CORPORATION BIDS
FOR OWENS RIVER
POWER INVITED
Leasing Arrangement Between
City and Electric Concerns
Broached at Meeting
CONDITIONS ARE DISCUSSED
Chief Engineer Scattergood Says
Municipality Will Have Big
Surplus of Electricity
An invitation was extended to the
electric corporations to make a pro
posal for taking over the electric pow
er to be developed by the Owens river
aqueduct, at a meeting,held in the
council chamber last night to discuss
the matter. Another meeting on the
same subject is to be held next Thurs
day night and it is confidently expect
ed that Attorney Walter J. Trask, who
represents the power companies at
these rheetlngs, will 'be prepared to
make some proposal that will solve the
question of how the private corpora
tions are to live when Los Angeles
has more power to dispose of than all
of them combined. .:'■-■:'• ,/'_-■.
In an address before the meeting
last night Mr. Trask tentatively sug
gested that lt would be the right thing
for the city to lease this power to the
power companies to be resold. He put
forth the position in a gingerly man
ner to see If it would be considered at
all and was pleased when nearly every
speaker showed and inclination to
treat his idea with consideration. But
what will the power companies pay
the city for this power, and what will
. they charge the consumers, are ques
tions that must be answered, and May
or Alexander cautioned the power com
panies that whatever was done would
be done by a two-thirds vote of the
people and it would be useless to put
forth a proposition that the ' people
would not indorse. >••■■<
E. F. Scattergood, 'chief electrical
engineer for the department of pub
lic works, who has had charge of the
development of the . power, presented
suggestions for the disposal of th«
power. His paper was similar to the
one submitted by William Mulholland
on the disposal of the surplus Owens
river water, in that it was Intended
only as a basis of argument. Mr.
Scattergood * said: .' ' .. ..,;",•;;';,
'. ';• THE CO-TOFINANCES• ■'■' j
■ The ' state of ; the " city's ' finances
must necessarily be considered In
connection with suggestions as to
the utilization of the Los Angeles
aqueduct power. < The amount of
bonded indebtedness of municipali
ties in this state is limited by an
act of legislature to 15 per cent, of
assessed valuation. This leaves a
margin for the city of Los Angeles
at the present time of something
like $10,000,000 over and above all
outstanding bonds and •• together
• with those authorized by the peo-
I ple but not as yet Issued. It- is
true, however, that It is not de
■ sirable to increase the bonded debt
of the city beyond that which is
absolutely necessary, ' and • for this
reason it seems appropriate in dis- '
cussing the power question to point
out the desirability of giving every ;
consideration j, to the policy, of re
quiring a considerable bonus in
connection with a rental; in mak
ing up the total compensation to
be received .by , the city for sur
plus water. The amount suggested
by Mr. Mulholland may be increas
ed or decreased, but, as suggested
by him, it would mean something -
like. $6,000,000, which would pro
vide the necessary $2,500,000 for
main distributing conduits from the
San Fernando - reservoirs to this
city and to various Irrigating dis
. tricts, and, at the same time, very
materially relieve the city's bonded
debt. • From these remarks it ap
pears that the city is free to adopt
whatever policy seems best, having
In mind the city's Interest and the
public good in this community, and
that It is not necessary for the city
to consider sacrificing its best in
terests in order to avoid additional
indebtedness in the utilization of its
) power. • . -•■,;.■/'.::
. AMOUNT" OF POWER »
The amount of power which may
be developed at the various power
sites along the line of the aqueduct,
together with some 7000 horsepower
from ' the Cottonwood and division
, creeks in the Owens valley ,is such
| as to deliver in the city at a central
substation an average of 64,000.
horsepower, after making a liberal
allowance for all losses, and owing
to the provision of regulating reser
voirs •'• in , connecting with two of
these power sites it will be possible
J to deliver this In accordance ' with
'' the demand ; during any twenty
four hours up to a peak load, of
120,000 horsepower. -..
'•■ As- shown |in the preliminary re- ;
„ port of the consulting board, made
* for the I Information of the public
.. previous •to the • bond election iof •
- April last, this power Is not only
, unusually reliable as hydro-electric ,'
1 power, but can be delivered here at
a . very low cost as compared with.
the •■ average ; L hydro-electric. power ■
i projects in the . west. The assur
ance, ; then, of a largo amount of
hydro-electric power under public
control, susceptible of development
■at very low cost, should go a long "■■
way toward encouraging capital and
■ toward encouraging manufacturing
ln this section, especially ln connec
tion with an ' assured water ■ supply
and ample harbor facilities under
public control. The average peak
load for all purposes as supplied by
I the various electric companies with
in the city limits is at the present
time something like 50,000 horse- i
power, and for this section, includ
ing Pasadena, Long Beach, Santa
_ Monica and the intervening terri
tory, is something like 80,000 or 85,
--000 horsepower, from which \lt ap
pears passible power to the extent
of a 120,000 horsepower peak should
: very ■ materially affect the cost to ;■;'
. manufacturers and consumers. The
city ■ should ; realize a direct profit
from the development of this power,
(Continued on rage live)
E. F. Scattergood, Who Discussed
Municipal Power Plants Last Night
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PORTUGUESE WARN
CRUISER'S CAPTAIN
Lisbon Authorities Fearful for
Dcs Moines and Other
Foreign Warships
• [Associated Press] :.'.',.'', .•'-•.
PARIS, Oct. 13.—Special dispatches
from Lisbon arriving ' here by way/ of
the frontier state a rigorous censor
ship is being maintained upon all news
except platitudes concerning the new
government. The correspondents, it is
affirmed, are allowed to telegraph noth
ing concerning the doings of anti-cler
ical mobs. V". '•
The government, the dispatches con
tinue, is particularly anxious! to con
ceal an incident iif connection with the
arrival at Lisbon of the American
cruiser Dcs * Moines. • _. '
A Portuguese officer boarded the Dcs
Moines on her arrival here and warned
the commander of the danger of a tor
pedo attack or a submarine mine. As
a result, everybody aboard was alert
during the night, but nothing hap
pened. '■'■■ '• '.%- , '
The British cruisers received a simi
lar warning. ..' '■ ■" ;•','"■'."..'
INSANE ENGLISH NUN IN
LISBON COMMITS SUICIDE
LISBON, Oct. 13.— English nun
named Tipping, whose mind had be
come deranged as a result of her ex
periences In the recent fighting be
tween street mobs and the clericals,
committed suicide today. :,\.iv
She jumped from a window of . the
third floor of a house occupied by
the secretary of the British legation
where she had taken shelter, and was
instantly killed. "
BALLINGER IS BRUISED
IN OHIO TRAIN WRECK
Secretary One of 11 Passengers
Hurt in Head-on Collision
CINCINNATI, Oct. Richard A.
Ballinger, secretary of the interior, was
one of eleven passengers . who were
more or lees' seriously injured in the
wreck of two passenger : trains which
met in a head-on collision ln the out
skirts of this city tonight.
Secretary Balllnger's Injuries consist
of a severe shaking up and a slightly
bruised loft arm.
The two trains were No; 2 from St.
Louis and No. 19 , from Louisville, on
the Baltimore & Ohio Southwestern
railroad. Both were proceeding at
moderate speed. None of the Injured
will die. '
Secretary Ballinger, who was return
ing to Washington from Oklahoma,
went to a I hotel, "where he rested for
some time. , He left at 9:10 p. m. for
Washington over the Chesapeake &
Ohio. v'
CINCINNATI MAYOR ASKS
POLICE CHIEF TO RESIGN
i CINCINNATI, J Oct. 13.—Because, of
conditions ln the police department' re
vealed .by Safety Director Small on
the investigation of graft. Col. Paul
Milllken, chief of police, was asked to
resign by Mayor Schwab today.
Colonel ■; Milliken refused and said
he would fight every effort to cause
his removal. >v£_BEß_H_-___i
SINGLE COPIES: DAn.I tc. ON TRAINS Se.
Sl_N(jrl_l_ l-^UI Irj^y . SUNDAYS Be. ON TRAINS 10*
RAID $10,000,000
FIRM AS FRAUD
Sleuths Seek Head of Company
Which Claims Indorse
• ment of Ballinger

:i /.'■-- Associated Press
BOSTON, Oct. . Federal authori
ties visited the office of the Redeem
able : Investment company, at 85 Dev
onshire street today, and came away
with ' Manager' Charles H. Brook, the
books of' the company, and several
thousand dollars in cash,' all . taken un
der a' warrant charging the company
with the use of the mails in a scheme
to ' defraud. ' • ,
Officers ' tonight ' were - hunting ' for
Rev. Norman' Plass, president of ' the
company, who has the alleged Indorse
ment "as' an Individual of Secretary
of the Interior Ballinger, the late As
sociate- Justice Brewer of the United
States supreme - court; Senator Curtis
of Kansas and several local Congre
gational ministers.
i The Redeemable Investment ' com
pany was organized three years ago
as a holding company, with a capital
of $10,000,000. The company controls
the Santo Domingo Mining company,
which Is said to own 85 per cent of
the mines of Jalisso, San Domingo,
and a ranch of 70,000 acres in the
same country; the Norman Plass Lum
ber company, which claims to own
356,000,000 feet of timber in British
Columbia; the Boston & Canada
Wheat Land company, having 20,000
' acres of land in Canada, and the
Okonogan Development company of
Washington.
■ Rev. Mr. Plass, president of the
company, is a graduate of Williams
college, and the Tale Divinity school.
He became president of the Washburn
college, Topeka, in 1902, and resigned
two years ago.
BA__INGER'S INDORSEMENT
The literature i of the-company, con
tains the following alleged copy of a
letter from Secretary Ballinger:
"I have , known Mr. Norman Plass
for many years as a gentleman of high
character and integrity. He possesses
a high degree of energy and ability
in anything he undertakes. He is
worthy of confidence and respect, and
has had experience in the west in the
Investigation of timber lands. I am
sure he would not knowingly present
liny matter untruthfully or unfairly in
business connection.- (Signed) Rich
ard A. Ballinger, ; secretary of the in
terior."
The manager, Charles H. Brooks, ac
cording to the federal officials, was ar
rested ln • St. Louis six ' years ago,
tried and convicted in connection with
the land frauds of the Rial to Invest
ment company of St Louis, and sent
enced to eighteen months In jail, but
was pardoned by President Roosevelt,
on the ground he had furnished valu
able evidence - for . the government in
the trial of Senator Burton.
The officers of the Redeemable In
vestment company are: President,
Norman Plass, Boston; vice presidents,
J. Austin Parasch, Worcester; - George
A. Vleauvult New Tork; William A.
Bryan, New York; secretary, George B.
Graff, Boston; .treasurer, J. L. Trap
hagen, Boston. .
The directors include the above, with
Charles H. Brooks of Boston, manager:
Harry W. Davis, Wilmington, Del.; W.
E. Hathaway, - New Bedford, Mass.,
and A. H. zeltone, Montclair, N. J.
Manager Brooks was arraigned late
today before United States Commis
sioner Hayes and later released on giv
ing $3000 bond. •
. Rev. Norman Plass left Boston two
weeks ago to go to Vancouver Island
to investigate timber lands ln which
he is interested, according to a state
ment made by Mrs. plass tonight ,/. ,
2 CENTS
RAILROAD READS
ASSERT FREIGHT
CHARGES TOO LOW
President Eastern Systems Tes
tify Before Interstate Com
merce Commission
OPERATING COST INCREASES
Officials Claim Adequate Service
Impossible Without Raise
in the Rates
[Associated Press]
WASHINGTON, Oct. 13.—Two presi
dents of great American railroad sys
tems today testified before the inter
state commerce commission concerning
the proposed advance in freight rates
in eastern trunk line territory.
The witnesses were President Daniel
L. Willard of the Baltimore & Ohio
railroad, and President W. C. Brown of
the New York Central lines. Both ar
gued for the advance.
Marked similarity characterized the
statements of the two presidents.
Neither placed the responsibility for
the proposed increase In rates wholly
on recent advances - in - wages, al- '
though both asserted that the wage
Increase had been an important fac
tor.
President. Brown declared that im
provement of railroad properties so
as to furnish • adequate • transportation
facilities, could be accomplished only
through an increase of the freight
income. *' ';..>"
Mr. Willard said he could see no
way for the Baltimore & Ohio to fur
nish prompt . and adequate service
without an increase in freight rates.
"Our expenses have been Increased
during the last five years by legisla
tion," he said. "The act regulating
the hours of labor and the employers'
liability act, to both of which I am
opposed,. have added to the cost -of op
erating railroads. • .•' ."-'.
•"I do not think the present rates are
high enough and I would not think so
even though there had been no recent
increase in wages." ";;t',.
'..?■> ASKS FAIR ADJUSTMENT
Mr. Willard expressed the opinion
that the stockholders of the .Baltimore
& Ohio were entitled to receive not
less than 1 6 per cent dividends. He
suggested that the financial credit not
only of the Baltimore & Ohio com
pany, but of other lines, practically ;
was in the hands of the Interstate, com
merce commission.
"What would be better," suggested
Louis D. Brandeis of the Shippers'
counsel, "than a ruling of this com
mission that, would Insure the se
curity holders Jof the Baltimore-;
Ohio a 6 per cent return?"
"Of course," responded Mr. Willard,
"no action of this commission in any
Sense could be regarded as a lien on
the railroad property. It would not
be possible for the commission 'to
guarantee anything. I do believe,
however, that if the freight rates were
adjusted fairly and with a reasonable
degree of permanency, ■ the credit of
tho railroads would be supported."
Mr. Brandeis then Introduced a series
of quesUons concerning the nature of
economies practiced tby the Baltimore
& Ohio. Interrupting him, Commis
sioner Prouty inquired of Mr. Bran
deis: ■ , ' .v.
"Do you maintain that before the
commission should allow any increase
of rates for the railroads, it should
request them to show that their busi
ness ls so efficiently managed as to
warrant this action?" ..,,'- - '
WAGE INCREASE I/ARGE
"I think," responded Mr. Brandeis,
"the commission should find that it
would be a most serious injury to the
country to establish the principle that
If, according to present conditions, the
railroads need more money, they should
raise rates instead of considering
whether they could not make more
money under the present rates with
greater economy." - -, ,
President Brown of the New Tork
Central said the increase of wages on
that system' amounted to $7,831,000 a
year, with an additional $175,000 a
year to take effect January 1.
"A considerable part of the capital
for the improvements now in prog
ress," said Mr. Brown, "was acquired
before recent increases In wages ren
dered the situation so acute. But
with respect to the capital remaining
to be secured for these improvements,
I can confidently say that the ability
of the railroads to obtain it depends
upon the ability of the companies to
secure increases In revenue through
Increased freight rates commensurate
with the recent increases in expen
"l cannot better illustrate the situa
tion than by reference to the recent
attempts of the Michigan Central rail
road to market In this country and In
Europe an issue of $17,500,000 of its
4 per cent debentures. The now bond
ed Indebtedness of the Michigan Cen
tral and the previous stability of its
earnings should have made such an
Issue attractive to any security market.
It has been impossible, however, in this
country or in Europe, to secure any
bid for these securities which could
bo considered."
EUROPE IMPOVERISHED BY
BIG NAVIES, SAYS JORDAN
NEW TORK, Oct. That there ls
about as much danger of a war be
tween England and Germany as there
ls between Mars and the United States
and that the building of warships Is
ruining the countries of Europe is the
observation' of President ' David Starr
Jordan of Leland Stanford university.
He returned today from a tour after
attending the international congress of
zoology at Gratts, Austria. ,
"Prospects in Europe from the view
point of prosperity do not look good,"
he said.
"Business ls good in many of . the
countries, but the peasants are paying
the bills."
LA FOLLETTEE CONVALESCENT
ROCHESTER. Minn., Oct. . 13.—Sen
ator : l,aFollette has so far recovered
from his recent 'operation • for gall
stones that. he now . eats his regular
meals and today; was allowed tosiCufi.

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