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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