The San Francisco call. [volume], November 17, 1903, Image 1

About The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913

Image provided by: University of California, Riverside; Riverside, CA

                
SAN FRANCISCO. TUESDAY, NOVEMBER 17, 1903.
CASHIER HAYS RESIGNS FROM NATIONAL BANK IN RIVERSIDE
AND RAILROAD OFFICIALS PROBE THE RIGHT-OF-W AY FRAUDS
Want Law Observed.
- ROME. Nov. 16.— The government has
addressed a circular to all prefects
throughout the kingdom 'Instructing: them
to watch for the Immigration Into Italy
of the members of the dissolved French
religious congregations .and \a see that
they do not break the Italian law*.
" ALBUQUERQUE, N. M., Nov. 16.— The
body of J. t M. Scheller, until recently a
soldier In the "United States army in the
Philippines, has been found at the sum
mit of the highest peak of the lofty
range. A six-shooter with one chamber
empty lay near the body. The body lay
between two great bowlders, as If the
man had attempted to provide a tomb be
fore killing himself. Scheller was; last
seen Jn Albuqueraue on October 18, when
he said that he was going to his home
In Kansas City. He same to this city
from Los Angeles.
Ends Life on High Peak.
PARIS, Nov. 16.— Henri Rochefort. In
an Interview, is quoted as saying he un
derstands Dreyfus will be re-tried before
the Court of Cassation,: which he pre-^
diets will quash the verdict of the Rennes
court-martial, "and that Dreyfus will be
rehabilitated In his rights.
Dreyfus May Get His Rights.
RIVERSIDE, Nov. 16.— At a special
meeting of the board of directors of the
Orange Growers' National Bank this
morning the resignation of H. T. Hays
as cashier of the institution - was read
and accepted. The resignation reads:
"I : hereby tender my resignation as
cashier of this institution, to take place
Immediately. With my best wishes for
the future success of the bank. I am,
very truly yours, H. T.'HAYS."
The directors at once adopted resolu
tions commending Hays' work while in
the bank employ, stating that he had
filled : the office < of cashier with "rare
ability" since the organization of the
Riverside Bank Officials Commend
Him for His Service.
RESIGNATION OP HAYS.
The trouble Is In all probability the
outcome of a bitter feeling existing be
tween the sheep and cattle men. In one
case a sheep herder's dog was killed a
few feet from the herder. The assail
ant fired from ambush. The sheep men
are organizing for their own protection
and the near future may see some
clashes between the two elements.
to Rosewater, who declared that the
indictments were the result of a politi
cal quarrel. Rosewater asserted that
Senator Dietrich had a good defense
and added that the Senator had come
to Washington at this time to bring
about the removal of District Attorney'
Somere. He Baid they had already been
to the White House on this mission.
Rosewater declared that District At
torney Somers had 'pushed the charges
against Senator'Dietrich for the reason
that they were politically antagonistic.
REDDING, Nov. 16.— Unknown per
sons last week attacked and killed a
number of sheep belonging to John
Robinson in Modoc County. This act
has greatly aroused the ire of residents
of that county and lynching is. possi
ble. A band of sheep belonging to John
Robinson of Gouger Neck had been at
tacked by armed men and a number
were killed.
Wrath of Owners in Modoc Aroused
by the Acts of Mis
creants.
SLAUGHTER OF SHEEP
MAY CAUSE LYNCHING
SALT LAKE. Utah. Nov. 15.— The an
nual stockholders' meeting' of the San
Pedro, Los Angeles and Salt Lake Rail
road was held In this city to-day and the?
following board of directors was chosen:
W. A. Clark. W.. C. Kerens. J. Rosa
Clark, T. E. Gibbons. T. F. Miller.
F. K. Rule, W. S. McCornlck. Thomai
Kearna. Reed Smoot. E. W. Clark. H. I.
Pettls and Rosa .W. Smith.
Xo other business of importance was
transacted. The stockholders of the Em
pire Construction Company, which is
closely affiliated with ths San Pedro
road, also, met In this city - to-day and
elected a new board of directors.
Stockholders of the Salt Lake* Road
Hold Annual Meeting.
DIRECTORS ARE ELECTED.
M. J. Twogood, whf> has served effi
ciently for some time as assistant cash
ier, was promoted to tWecashlershlp,
succeeding Hays. Twogood - Is- a son
in-law of Congressman M. - J. Daniels,
president of the bank, who is now in
Washington.
The. public story, that Hays had be
come Involved in alleged unfair. deal-
Ings with the Salt Lake road caused a
sensation in Riverside to-day. Hays
was about the bank attending' to his
usual duties most of the day. 'With re
gard to Diss, the Salt Lake road right
of way agent, Hay3 declined abso
lutely to say a word. .
Affairs at the Orange Growers*. Bank
will not be affected by the change In of
ficers. Twogood Is experienced In bank
affairs, Is popular and is not in poll
tics. Although Hays retains consider
able property interests here. It Is prob
able that he will not much longer make
his home in Riverside. ..
bank in 1SD2, arid that he has been able
"to show every dollar accounted for,
the affairs of- his place In order and
every trust, well and safely adminis
tered." ' '-'•*•
The claim made by Hays' friends
that the money he made in his real es
tate deals was simply a commission
was refuted to-night by Vice President
Gibbon, who has documentary evidence
Xo show that Hays was appointed con
fidential agent "of the company upon
recommendation of Diss and others,
that he was to receive no direct finan
cial remuneration, that he was to per
form his services in consideration of his
bank getting the Salt Lake Railroad
Company's business and that he was to
be permitted to realize such profit as
might arise from the Increase in values
of. property adjacent to the right of
way by reason of the building of the
road, but not by the direct purchase of
right of way property.
It Is also. known that from the real
estate men In Riverside whom he em
ployed to purchase property, their com
missions to be paid by the sellers, Hays
demanded one-half of that commission
and on one occasion is alleged to have
received $2400 from that source.
: Although the railroad officials will
not admit It, tremendous political and
other pressure is being exerted in the
effort to shield certain persons, but
who they are has not been announced.
lost by such deals that the officials are
now conducting their Investigation.. It
will be impossible for them to secure
restitution In most instances and it
may be impossible for them to fasten
the matter upon any of tneir agents,
but it is admitted that the company
has been heavily mulcted at the in
stance of some persons who occupied
positions of trust. It is promised that
if the. guilt of those persons can .be
positively established the matter will
be v given all possible publicity, and may
be carried Into the criminal courts.
QUESTION OF COMMISSION.
Another plan was to profit by the
manipulation of property In , the vicin
ity of tracts which those ¦'. in the deal
knew long In advance would be selected
for 'depot purposes. The property near
these tracts would be secured on op
tions before the announcement of the
exact depot site was made, and by rea
son of the Inevitable appreciation in
values o£ this property tho3e. In the
deal would be able to dispose of their
options at .handsome profits and with
but little outlay of money.
\ It Is 'for'the purpose of ascertaining,
if possible, how much the company has
Since the exposure -of the deals at
tention has been called to the fluctua
tions in value of realty all along the
line of the" railroad. The confidential
agents knew, of course, what route the
road would . take and long before the
construction gangs or even the final
surveying parties started along the
known route/persons to whom this in
formation was secretly imparted would
purchase certain property on or near
the proposed right of way.
This ¦ property was cheap, but It
would be transferred at an increased
figure and after a week or two would
again be transferred at an even higher
price and this would be repeated sev
eral times until the last transfer would
indicate that the property had brought
a good stiff price. Then, when the rail
road : company needed it, the deeds
would, be displayed, showing that the
property had been sold for a good price
and a price In advance of, that would
be demanded of the railroad company,
and with such evidence before It the
price demanded would be paid.
Thus property, the original price of
which was something within reason,
would be forced up in price until the
railroad company would be made to
pay' In some instances twice Ira value.
These operations were not confined to
any given section nor were they too
frequently practiced, but a sufficient
number of such deals were made to
make \t extremely profitable for those
who possessed the inside Information.
PROPERTY MANIPULATION.
METHOD IN THE FRAUD.
both gentlemen refused to enter into a
further discussion of that feature of
the case.
There are abundant indications that
the Salt Lake Railroad Company has
been made the victim of its own con
fidential agents for many months. The
manner in which these agents or others
acting for them profited was extremely
simple and it must have netted them
many thousands of dollars.
Corporation Discovers That It Has Been the Victim of Its
Confidential JIgents for Many Months.
At the fishery the fish can be secured
in greater quantities than they can be
handled and the hatchery Is running at
its full capacity. Some days as many
as 1,000,000 eggs are secured. People
from the southern par!t of the county
go to the hatchery for the fish, which
are given away after the spawning op
eration. Many millions of young sal
mon will be hatched this season, as op
erations have been under way for some
time and may continue for some time
longer if the river does not rise too
high.
REDDING. Nov. 16.— The salmon are
ko thick in the mouth of Mill Creek Just
below the Government fishery racks
that they are seen right up to the sur
face c-f the water and so closely packed
together that a person looking upon the
mass would feel that he could cross the
creek dry shod by stepping on the backs
of the fish as they appear above the wa
ter. They are crowded up by the mass
which extends down to the bottom of
the stream.
Massed Salmon in Mill Creek, in
Shasta, Almost Tempt' Pe
destrians.
FISH FORM A BRIDGE
ACHOSS THE STREAM
PROMINENT SOUTHERN CALIFORNIANS WHO ARE PROMINENTLY MENTIONED IN THE SENSATIONAL
STORY ABOUT THE SALT LAKE RAILROAD RIGHT OF WAY FRAUDS, BY WHICH THE NEW COM
PANY IS DECLARED TO HAVE BEEN SWINDLED OUT OF IMMENSE SUMS.
It was announced last night by Vice
Presidents Clark and Gibbon that Ma
jor Diss will soon sever his connection
with the' company. To-day Diss threw
down the gauntlet and declared that
he. will mot resign. He spent the day
at his desk as usual, and after a con
sultation with Messrs. Clark and Gib-,
bon he made the following statement:
"I am still right of way agent of the
Salt ; Lake Railroad. I have not re
signed nor do.I Intend to resign. I know
nothing whatever . and have never
known of the deals In which Mr. Hays
is alleged to have been implicated. Fur-'
ther than this I can, say nothing. .The
transactions' with him, were '_ not con-;
ducted under- my supervision. Any
further Information: must' be secured
from the proper officers of the company,
for my position is that of a'subordl-"
nate."
To-night . Vice £ President Gibbon
again , asserted that Major Diss will
soon sever , his connection with the
company and Vice ¦ President ' Clark
confirmed- this statement, although"
STATEMENT BY DISS.
As to Hays' guilt there is no doubt,
for he has made a confession, part of
it In writing, and as a result of the
exposure of his dealings he was forced
to resign his position as cashier of the
Orange Growers' National Bank of
Riverside. Whatever c'se Hays may
be, he is loyal to his friends and he has
assumed th? attitude of scapegoat and
is bearing the brunt of the scandal.
It became known to-day that the
transfer of real estate worth $12,000 by
Hays to the railroad company was by
no means considered a full and com
plete settlement with the corporation.
It was understood by him that this
deed was simply a deed of trust to be
held pending the determination of the
exact amount of the money unaccount
ed for. The exact amount having been
determined, "Hays will be called upon"
to pay that amount and If it be more
than $12,000 he must make good the dif
ference; if less, its payment will result
in the restoration to him of the trust
property.
To what extent Major J. W. F. Diss,
right-of-way agent of the Salt Lake
Railroad Company, will be involved, if
at all, is as yet a matter 'of specula
tion. On that subject the railroad offi
cials positively refuse to talk, except
to say that their investigation being
far from complete they cannot say
what the result will be.
CONFESSION IS MADE.
beyond practically compelling
H. T. Hayes of Riverside to convey to
the company property worth ?12,000 to
secure it in some degree against finan
cial loss, have taken no action, there Is
reason to believe that the swindle of
which the company was made a vic
tim will reach much greater propor
tions than was first announced.
• There is also reason to- believe that
Hays was not alone the beneficiary of
the real estate deals, that he did not
alone engineer the affair by which the
company was forced to pay thousands
of dollars to him while he was acting
as its confidential agent, but that there
are others who are benefited thereby.
Whether there are others who had guilty
knowledge of Hays* transactions will
not be known until the company com
pletes Its investigation which was be
gun nearly two months ago and of
which the demanding of security from
Hays was only an incident.
TT OS ANGELES, Nov. 16.—AI
ffl though the officials. \ of the
Rf , Salt, Lake Rpflroad^ Company
i-jf "vh,i '*'¦ y^t ni5do ¦ no> bftJtlal 1
*' *W statementiof thb 'matter, and
Special Dispatch to The Call.
Confession Is Given
to Company's
Officials.
A foreigner who has frequently been
at the palace describes the Dowager
Empress as apparently, greatly dis
tressed. The Manchus are beginning
to realize that the loss of the seat of
their dynasty means the loss of their
prestige, and possibly endangers the
succession. After applying to the Amer
ican and Japanese legations for assist
ance, the Chinese Foreign Office admits
that its policy is to await the devel
opments of the Russian-Japanese nego
tiations, hoping that they will result
In a partial restoration of Manchuria. I
The Idea of closer relations between
China and Japan Is spreading rapidly
and is much discussed by officials in
the press.
It is noticeable that China no longer
seeks Eritish assistance regarding
Manchuria,, but consults only the
American and Japanese Ministers In
stead of all of the diplomats, as for
merly.
While the Chinese official world Is
greatly excited over the Manchurlan
situation, the helplessness of the Gov
ernment was never more conspicuously
displayed. Several long councils have
been held at the palace during the last
fortnight, but the highest officials de
vote more energy to Intriguing against
their rivals and trying to shift the re
sponsibility than dealing with the prob
lem of what measures should be token.
Advices from Japan are to the effect
that the Japanese are growing bitter
against England because they believe
that the latter country is unfaithful to
her alliance with Japan. They now
believe that England entered , Into an
alliance with Japan, expecting that its
proclamation would result In Russia
withdrawing from Manchuria and
therefore regarding war as a faint pos
sibility. Russia refused to retire and
now England, fearing that she may be
drawn into war through the alliance,
is exerting her influence as an ally to
induce Japan to recognize what Lord
Cranborne called "Russia's rather spe
cial position in Manchuria." Premier
Balfour's exhortation to Japan to make
moderate demands also is considered
helpful to Russia in the negotiations by
notifying her that England's support of
Japan is lukewarm.
All of Russia's officials in the East
declare that her domination of Man
churia Is necessary for her Interests
and the safety of the Trans-Siberian
Railroad and that Russia must hold all
that she has taken.
Japan has asserted that Russia's ful
fillment of the evacuation convention
is essential to an engagement and has
promised China not to sanction any en
gagement impairing China's sovereign
ty in Manchuria.
PEKING. Now 16.— The foreign dip
lomats at Peking are awaiting,devel
opments In the Russo-Japanese "nego
tiations with the keenest interest, but
are not sanguine of their success, be
cause they are unable to see what
terms are possible, unless one nation
distinctly surrenders.
MOSCOW, Nov. 16.— The Russian mil
itary reoccupation of Moukden, Man
churia, has caused such tension and
has aroused such an aggressive atti
tude on the part of China that the con
tinued dispatch of troops to the Far
East is now taid to be directed against
China. Despite the pacific turn of the
Russo-Japanese dispute, troops total
ing 250.000 were ordered to the Far
East when hostilities appeared Immi
nent and they are being continually
draftpd from the government of Mos
cow and the nine surrounding prov
inces. With the troop3 already in the
Far East, (his will give Russia an over
whelming force with which to overawe
China.
WASHINGTON, Nov. 16.— Senator
Dietrich and Editor Rosewater of the
Omaha Bee have arrived in this city
and to-night all inquirers as to the in
tflctment of the Senator were referred
EXPLAINS FOB DIETRICH.
Postmaster Fisher was formerly
Mayor of Hastings and has been prom
inent in Republican politics of Nebras
ka for several years. He said In Omaha
to-night:
"There is really nothing In the
charges and my friends will support
me in my defense. If witnesses had
been permitted to have been cross-ex
amined the result would have been
quite different and no indictment would
have followed, lien have pushed this
matter who were turned down for re
appolntment and have trumped up
* < iiarges to 'get even.' "
The section under vyhich the separate
indictments against Senator Dietrich
and Jacob Fisher are drawn is section
ITR1 of the Revised Statutes of the
United States, which forbids members
of Congress from profiting by contracts
or receiving valuable consideration for
procuring contracts or offices. The
conspiracy indictment is drawn under
section 1.440 of the Revised Statutes.
OMAHA, Nov. 16.— The Federal Grand
Jury to-night returned true bills
against United Slates Senator Charles
If. Dietrich and Postmaster Jacob
Fisher of Hastings, Neb., charging
them with conspiracy and bribery in
connection with the appointment of
Fisher to the position of Postmaster.
The indictments were brought In to the
United States District Court at 6
o'clock. Judge Munger presiding, and
were placed on file- The court merely
accepted the report of the Grand Jury,
makirg no remarks beyond a» order
to the clerk for the filing of the bills.
The indictment against Senator Diet
rich charges that he accepted money
and property in consideration of his
recommending Fisher for appointment
as Postmaster in Hastings. That
against Postmaster Fisher charges him
vith having made an agreement with
Oenator Dietrich by which ;he former
wmm to pay, in property and money.
$1300 for the appointment.
NATURE OF THE EVIDENCE.
Evidence was presented to the Grand
Jury to show that Fisher had bought
posto3ice fixtures from the Grand Army
post at Hastings, of the value of $500,
and later turned the property over to
Senator Dietrich, to whose building
they were moved, and to whom was
paid a rental by the Government. In
addition to turning over this property
it is charged that Fisher paid to the
Senator $800 in cash.
To-night it was said that the Grand
Jury had been investigating the Hast
ings postofflce case for nearly three
v.eeks and that a number of witnesses
were Dresent from Hastings u.nd other
I>oints in the State.
The last witness called before the
<Jrar.d Jury was William Dutton, a
hardware merchart of Hastings, who
gave his testimony to-day. According
to Dutton's testimony he (Dutton) act
ed as Intermediary in all the alleged
transactions between the indicted men.
After hearing his evidence the Grand
Jury excused the remaining witnesses
¦who had not testified and at once pre
pared its report.
rOUB OTHER CASES PENDING.
The jury was composed 6f twenty
members, nineteen of whom are said
to have voted for the indictment and
one against it. The members came
from all parts of the State, no two of
them being residents of the same town.
The foreman, Frank E. "White of
Omaha, is secretary of the Grand
Lodge of the Masonic order of Ne
braska. The other members ar«- mostly
business and professional men.
Four other cases, said to be of a sim
ilar nature, are being Investigated by
the Grand Jury and a report on all or
part of them is expected very soon.
All are cases in which postoffices and
Postmasters are concerned.
This indictment is said to be the first
ever returned against a United States
Senator on charges of this nature and
caused intense excitement In Govern
ment official circles in Omaha and in
adjoining towns when it became public.
BASIS FOE INDICTMENT.
The fire blazed with remarkable
fierceness and the firemen aver that
when they arrived on the scene oil was
dropping down an inside wall, the
flames following: It down. Detectives
have been engaged to investigate the
matter and the incident promises to
have interesting developments.
The County Clerk say." the loss to the
county in uncpllectedtaxesi will be i«r
haps $1500. The building was erected In
1300 at a cost of $4500 and was Insured
for $2500.
At the last election U. W- Conder was
elected Judge. Last month, at his in
stigation, the County Court empowered
a firm of accountants to expert the
county books. These men began, their
labors last Monday. The books had
never been experted before and it is
openly asserted that the proposed in
spection of the books was the direct
cause of the fire.
TILLAMOOK. Or.. Nov. 16.— The
county courthouse In this city was de
stroyed by fire early on Sunday morn-
Ing. It is the general opinion that the
building was fired by officials of the
county who were interested in prevent
ing an investigation of the public
finances.
Special Dispatch to The Call.
Mention Is Made by Rumor
of Officials Who Feared
Accountants. *
Japan Accuses England of
. Deserting Her at Criti
cal Time.
Federal Indictment Filed
Against a National
Lawmaker.
Quarter of a Million
Men Ordered to
Par East.
Sequel to a Fight for
a Postoffle in
Nebraska.
Destruction .of Books
Said to Have Been
the Motive.
Charges Dietrich
With Taking a
Bribe.
Oregon Courthouse
Mysteriously
Burned.
Hurrying Troops
to Scene of
Trouble.
RUSSIA NOW
EXPECTS WAR
WITH CHINA
COSTLY FIRE
MAY UNVEIL
CONSPIRACY
GRAND JURY
IS ACCUSER
OF SENATOR
rcrecattiiaaaa at San Tran
clsco for 30 hours miHug mld
niarht, Kovcmber 17, 1303.
San Franclaoo and Ticinity —
Pair Tuesday; fresn. northerly
wind. O. E. WXLXSOXT,
Local Forecaster.
THE THEATiasN^ 9
* ' Alcawtr — "Th« ClnV» Bafcy."
[ California — "Sl» Hopldaa."
Central — "trader th« Polar Star."
Columbia, — Vlrsrlnla named. In
\ "Uris."
riacher'» — "BuTjm and Bos**."
Grand— "Ben Box."
Orph«tnn— "Vaudeville.
The Cnnte« — Vaudeville.
Tivoli — Grand Optra.
PRICE FIVE CENTS.
VOLUME XC1V— NO. 170.
The San Francisco Call