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The Saint Paul globe. (St. Paul, Minn.) 1896-1905, October 06, 1898, Image 1

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Persistent link: https://chroniclingamerica.loc.gov/lccn/sn90059523/1898-10-06/ed-1/seq-1/

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VOL. XXI.— NO. 279.
It Was the Private Diary of the
L*ate faultier llopklus, of the
People's Hank, and Contains
Much That Apjffl DaiuaglnK—
Prosecutor Declines to Give the
Names of Complainants.
PHILADELPHIA, Oct. 5. — United
dates Senator Quay, his eon, Richard
P. Quay, and Charles H. McKee, of
Piitsburg, law partner of Lieut. Gov.
Lyon, appeared before Magistrate Jer-
Mion, in the Central Court, In this city,
today to answer to the charge of con
epiracy in the alleged misuse of public
moneys in connection with John S. Hop
kins, former cashier of the People's
bank, of this city, who committed sui
cide soon after the failure of the bank,
In March last. Ex-State Treasurer
Haywood. for whom a warrant has
been issued in connection with the con
epiracy charges, was not in court, but
It Is promised that he will be here on
Friday to answer to his accuser. After
a hearing lasting three hours Senator
Quay and his son and Mr. McKee were
bound over for appearance at the next
term of court Ball was fixed at $5,000
In each case, David H. Lane, a local
political leader, going ball. The case
How goes on the lfrst for trial at the
term of court beginning in November.
The toetimony produced by District
'Attorney Graham was In the shape of
Hbout twenty letters and numerous tel
egrams, covering a period from Sep
tember, 1897, to February, 1898, address
ed by Senator Quay to Cashier Hop
kins, directing the purchase and sale
of large blocks of stock, and arrang
ing for the placing of margins; a letter
from State Treasurer Haywood to the
People's bank, and a private memoran
dum book of Cashier Hopkins. The
lawyers representing the accused
fought hard against the introduction
of the latter, claiming the bank's books,
and not a mere memorandum, should
be offered, but it went in as evidence,
nevertheless. The district attorney
averred the evidence he produced
ehowed that Senator Quay had the use
of $200,000 of the state's deposit of over
$^00,000 in the People's bank for stock
speculation; that State Treasurer Hay
vooo" placed $100,000 of state funds in
the People's bank on condition that that
amount of money be loaned to Senator
Quay's son, and that there was a reg
ular assignment of Interest on state de
posits in the People's bank to certain
accounts, one-third of it going to Mr.
McKee, all of which, he claimed, was
In violation of the state law prohibit
ing a bank official from making such
tiansactiens, and that the accused per
sons were guilty of conspiracy in join
iner with Hopkins In these transactions.
The court room was filled almost to
suffocation with politicians, newspaper
men and lawyers. R. E. Shapley and
A. S. Shields, two of the brightest lights
of the local bar, represented the ac
cused. The attorneys for the defense
opened the proceedings with a fruitless
effort to secure from the district attor
ney the names of the persons responsi
ble for the prosecution. There were
only three witnesses. The first was
Thomas W. Barlow, receiver for the
People's bank, who is also a special as
at district attorney. Mr. Barlow
stated that in his capacity as receiver
he opened the dead cashier's desk and
found among other things a number of
letters and telegrams and a book con
taining memoranda in Hopkins' hand
writing. This book, referred to by
Lawyer Shields as a "red book," was
about a foot square and contained 200
pages. It figured prominently in the
day's proceedings and was the subject
of much controversy. Mr. Barlow's
cervices as witness ended with the
presentation of the letters, telegrams
and the book.
Alfred Labor, teller of the People's
I— BatUe at Bear Island.
Quay Under Bonds.
Short Shrift for Spain.
2— Llnd'a Tour Airanged.
In County Political Field.
B—Sensational8 — Sensational Suicide.
Engineers Leave Camp Wikoff.
News of the Rallroada.
4— Editorial.
War Investigation.
6 — Sporting News.
University Eleven Defeated.
6— Markets of the World.
Bar Silver. 60c.
Cash Wheat. 62V4c
7— Minneapolis Matters.
News of the Northwest.
B— School Board Scored.
Judgeß Entitled to Increase.
Odd Fellows' Home.
NEW YORK— Arrived: Majestic, Liverpool
QUEENSTOWN-Arrived: Teutonic, New
York for Liverpool and proceeded.
Sailed: Britannic, Liverpool; Friesland Ant
werp. '
GLASGOW— Arrived: Furne-:»ia, New York
BREMEN— Arrived: Kaiser Frederlch New
LIVERPOOL— Arrived: Teutonic, New York
ROTTERDAM — Arrived: Maasdam New
METROPOLITAN-Wilbur Opera company i»
"Grand Duchess." 8:16 PM
GRAND— "Casey's Wife." 8:16 PM
Palm Garden, vaudeville. 2 and 8 PM
Assembly, council chamber, 7:15 PM
Board of aldermen, council chamber 4 pu
Prof. Zeublin'a lecture, Central high school
8 PMs
bank, then Identified the handwriting
In the book as that of Cashier Hop
kins, and also identified a number of
letters as written by Senator Quay and
Treasurer Haywood'. A number of
tluse letters were put in evidence, one
from Treasurer Haywood to President
MoManes, saying that $600,000 of state
funds would be deposited the following
week, and that Richard Quay be al
lowed to borrow $100,000. Through the
third witness, Mr. C. R. Goldsmith, an
expert accountant, who had worked on
the bank's books, Mr. Graham finally
got the "red book" admitted in evi
dt nee. Its entries covered from May 1,
ISM, to the closing of the bank nearly
four years. Only a few entries were
read. They showed that between April
30 and Oct. 31, 1597, the state deposit
in the bank ran up from $52r>,000 to
$565,000. From this total there was a
deduction of 20 per cent, evidently, as
Mr. Graham explained, for the bank's
use, then an entry, "lees $200,000 Quay,
1594, 1 S." For this period the inter
est was computed in the book as $5,844,
one-third of which, $1,894, was marked
"Paid O. H. ftlcK." In October, 1898,
there was a computation of interest on
state deposit amounting to $7,353, of
which $2,451, or one-third, was marked
"Handed to C. H. McK." The name
of "C. H. McKee, 118 Diamond streeet
(Mr. McKee's Pittsburg address)," was
entered in another part of the book.
In referring to the book Mr. Graham
said that in all entries of the amount
of the state deposit there was a deduc
tion of the amount Mr. Quay had in
use, and there was never a dollar of
interest credited against it. He said
there were frequent entries of "Due R.
B. Q.," "Due M. S. Q.," and "Due
. Quay."
Mr. Shapley, after the district attor
ney had concluded his presentation of
facts, said: "In all these transactions
there is not an instance to prove that
either Senator Quay or his son Richard
engaged in speculations with the state
money. They bought and ordered
shares of stocks which they paid
fur with their individual funds,
and that is proved by the letters read
by the district attorney." Mr. Shields
referred several times in the course of
the hearing to Mr. Graham's arguments
as "swallow stump speeches." All
through the ordeal Senator Quay bore
an air of composure. He prompted his
lawyers frequently, and passed judg
ment on every point raised.
The district attorney had some diffi
culty in deciphering the Senator's hand
writing occasionally, but the latter al
ways came to his aid in the reading.
Senator Quay tonight, In response to
an inquiry for a statement by a rep
resentative for the Associated Press,
spoke as follows:
"I think that no one who was present
at the hearing todiay entertains any
doubt as to the truthfulness of the
charge boldly made by my counsel that
this proceeding was instigated by poli
tical enemies of mine, who hid behind
the district attorney, and will not per
mit him to reveal their names, and that
their sole purpose was to manufacture
campaign literature by false charges
that could not be met and answered
except before a court. Of course every
body knows that on such a hearing I
could not be permitted to make any de
fense or show the falsity of these char
ges, and my counsel advised me it will
be worse than useless to attempt to do
so at this time, and In such a proceed
ing. But you may be sure that I have
instructed them to force this case to a
speedy trial, in a court where both
sides can be heard, and after that to
expose legally and punish to the ut
most the instigators of this proceeding.
My counsel assure me that not a scin
tilla of legal evidence was offered to
day to justify the issue of a warrant or
a binding over. As to the charges
themselves I have simply this to say,
that they are absolutely false and
wholly without foundation.
"I have always had an account with
the People's bank, and have frequently
instructed Mr. Hopkins to have brok
ers buy for me stocks that I thought
were likely to rise in value, but they
were always bought with my own
money, or upon my own credit, and I
have always borrowed money on good
collateral, and the People's bank was
amply protected for any money bor
rowed from it. Not a single share of
stock was bought for me either direct
ly or indirectly with the public money,
and my letters, which were offered in
evidence, themselves clearly show this.
Nor did I have the use or benefit either
directly or Indirectly to the extent of a
penny of the public deposits in the
People's bank. Nor did I obtain from
the bank the loan of a single dollar
because of the deposit with it of the
state money. Nor did I obtain a sin
gle penny, for every penny I ever bor
rowed from it was promptly paid by
me at maturity. As to my son's trans
actions.which were perfectly legitimate,
I had nothing whatever to do, except
that having full confidence in his abil
ity to pay the loan at maturity, I in
dorsed his paper and it was fully paid
at maturity. If the president of the
bank wanted an assurance from the
state treasurer that he would increase
or would decrease the line of deposits,
it seems to me a very natural course,
as he himself was one of the treasur
er's bondsmen, and was, as everybody
knows, most amply responsible finan
cially, but I had absolutely nothing to
do with it, and had no knowledge
of it, and my son certainly did no
wrong in borrowing money belonging
to the People's bank upon notes secured
by collateral, which notes, with inter
est, have been fully paid."
The letter on which is based the
charge that state deposits were made
on condition that Richard Quay were
loaned money was from ex-State Treas
urer Haywood to President McManes,
of the bank, as follows
"July 81, 189 C —On Monday w© will mail
you a check for $100,000 for credit of com
monwealth of Pennsylvania general fund,
which will make a credit to our account of
$600,000. The understanding is that I am not
to draw against any part of this $600,000 un
til R. R. Quay has paid or arranged satis
factorily to you the loan of $100,000, which
you are to make to him on Monday next."
Ohio Republicans Bcgrln Their Cam
paign In Earneat.
WOOSTER, 0., Oct. s.— The Republi
cans of this (Wayne) county opened the
fall campaign here today, Senator
Joseph B. Foraker. being the principal
speaker. His address was frequently
interrupted by enthusiastic applause
from the large audience present.
Senator Foraker opened with a eujogy
of Gov. Bushnell, and a review of his
Continued on Seventh Pave,
Too Early in the Proceedings to
Even Speculate as to* the Out
come of Peace Negu( I tit lons at
Paris Spain Will He Given All
CoiiNlderutlon Unless Detected in
WASHINGTON. Oct. s.— lt can be
stated on authority that the various
stories published relating to the work
of the peace commission now In Paris,
wherever they assume to Indicate a
failure of negotiations, a renewal of
hostilities, and the dispatch of a naval
force to the Spanish coast, are specula
tive. As a matter of fact the commis
sion has not progressed so far with its
work as to warrant the attempt to a
conclusion as to the outcome. It Is not
even possdble to predict the length of
the session with any accuracy. The
proceedings may last one month or
three. That will depend entirely upon
the view taken by the American com
missioners of the situation in Paris. If
they are convinced that the negotia-
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Map Showing the Location of Bear Island, the Reservation and the Scene of taa Am
tions are being conducted with sincerity
on the part of the Spanish commission,
there will be no effort made to force
them beyond reason. But if it should
appear that the Spanish position is not
subject to changes, that it ia irrecon
clliable with the American demands,
and that the Spanish, knowing this,
are simply prolonging the proceedings,
our commissioners are likely to be
promptly recalled.
The Spanish government is now fully
informed, through its commissioners of
the exact extent of America's demands.
"Whether these are absolute, and not
subject to abatement, cannot be ascer
tained here, for the responsible officers
declare that it would be extremely bad
policy to make any admission on this
point. But the impression in official
circles is that the conditions are ab
solute in their general scope; yet there
may be opportunity for Blight amend
ments in matters of details. As to
these details, Admiral Dewey Is one of
the most trusted counselors of the
American commissioners. Such infor
mation as he has been able to collect
has already been mailed to the com
missioners, and, in addition, the au
thorities here have cabled certain ex
tracts from the admiral's observations,
which are believed to be of special Im
portance just now. It is believed that
with his usual modesty, the officer has
refrained from expressing 1 any opinion
upon the very essential point as to. the
extent of the American demands in the
matter of territory In the Philippines.
He has not directly suggested thiat the
whole group be taken, nor that our
claim be limited to Manila bay and the
continguous territory, but he has called
attention to one very Important con
sideration which has seemed to escape
genral observation up to this time, and
which has been laid before the Ameri
can commissioners. That ia, with all
k the advantages in a commercial way
possessed by Manila, the place is in
defensible unless Subig bay be also held
by the United States. This particular
bay is, on the whole, regarded as be
ing superior from a strategic point of
view to Manila bay, and the Spanish
government has evidently be«h of the
name mind, for before the outbreak of
hostilities it was about to embark upon
an extensive scheme of defensive works
in Subig bay.
As a result of a consultation at the
White Ikousa between, the »residenfc.
Secretary Hay and Secretary. Long,
freeh instructions regarding the Phil
ippines have been wired to the Ameri
can commissioners in Paris, on a new
point brought up since the consultation
of Maj. Gen. Merrltt with the American
representatives. Mr. Day is empower
ed to Interrupt tho commission's work
any time in case he should find that
Spain is either unwilling to agree to
the demands of this government or dis
posed unnecessarily to delay the com
mission's work, and a naval demonstra
tion will follow, which the authorities
are satisfied will bring the Madrid gov
ernment to Its senses. Senor Felipe
Agoncolo, the representative of the
insurgents commanded by Ag-ulnaldo,
will be permitted to lay before the com
mission any facts which he may desire
to present, and the American commis
sioners have been advised of his com
Says His Stay in Washington Has
Been Satisfactory.
"WASHINGTON, Oct. s.— The Philip
associates will leave Washington to
associates, will leave Washington to
morrow, having concluded their mission
here. They go to New York, where
they take a steamer on Saturday morn-
Ing for Havre, and thence to Paris,
where they will seek to place the In
terests and desires of the Filipinos be
fore the American peace commission.
Agoncollo said tonight that he had r«-
ceived a dispatch from his government
stating that the national assembly had
elected as its chairman Dr. Paterno
and as its secretary of state, Dr. Adel
mo. Mr. Agoncollo regarded the su
lection of the secretary of state as an
interesting- and important development
as it showed, he ?aid. how thoroughly
organized the legislative and executive
tranches of the new government are.
With a secretary of state the Philip
pine government is now in a position
to deal with the outside world. Mr
Agoncollo said his stay in Washington
had been satisfactory. During the day
he made calls on all the cabinet officers
and also left his card at the residence
of Vice President Hobart, and at the
hotel quarters of Speaker Reed. He
had tried to talk with members of the
house and senate, feeling they would
have considerable to do in the settle
ment of. the Philippine question. Mr
Agoncollo said he would point out to
the Paris commission the futility o*
continuing Spanish rule In any part
of the Philippines, and the capability
of the Filipinos to govern themselves
as shown by their late actions.
Cuban In S nr K ent Ticket TUnt I 8
Picked as * Winner.
HA\ ANA Oct. 5.-2 p. m.-The press
of the island seems to consider the fol
lowing: ticket as sure of election In the
coming: convention of the Cuban Insur
gent party at Santa Cruz del Sur caU
ed for Oct. 10:
vS i pe B ,aenr.v.v:;.v.v.v.v B^ 0 ;- e G --
Secretary of Foreign Affairs-
Domingo Medez Cannt*
Secretary of Finance Benjamin G !
Secretary of Justice . T n q« t
Secretary of War r^t-Bi^Sß
Senor Estrada Palma. Is a candidate
for the post of Cuban representative
at Washington.
Gen. Maximo Gomez Ims declared
that he will not accept any office un
der the Cuban government, but his
friends are convinced of their ability
to persuade him to withdraw his ob
According to alvlces from Cienfuegos,
the Cuiban general. Hl&ino Esquadro, Is
camped with 2,500 men on the Santa
Rosa estate, about five miles from Cien
fuegos. He has established a hospital
over which floats the Cuban and Red
Cross flags. The condition of the men
la excellent.
Third Infantry Detachment Ambushed by the Pillager Indian Out-
Government Urged to Send Reinforcements at Once to Save the
Commander and Troops From Destruction
Attack on the Soldiers a Complete Surprise—The News of the Battle
Brought Back to Walker by Marshal O'Connor, Who Urged
Lieut. Humphrey to Go to the Relief of His Comrades— War
Department Will Now Act Effectively in Putting Down the Des
peradoes—Wild Story From Duluth==-An Appeal for Aid Sent
to Brainerd.
Staff Special to The St. Paul Globe.
WALKER, Minn., Oct. 6 (2 a. m.]— Urge Fort Snelling authorities
to send troops at once to reinforce Bacon and Wilkinson and prevent
a threatened Indian uprising.
Staff Special to The St. Paul Globe.
WALKER, Minn., Oct. 6.-3 a. m.— The report was brought to Walker by Marshal
O'Connor at 3 o'clock yesterday that the detachment from the Third regiment and the
deputy marshals, Indian police, Indian interpreters and the correspondents of the Pioneer
Press, Tribune and Minneapolis Times were ambushed and a desperate battle fought at
Bear Island today.
The marshal left the scene of battle at noon and on arriving at the old Indian agency
was put ashore by means of a canoe. He rode three quarters of a mile to the agency
and informed Lieut. Humphrey, who is in command of a squad of twenty regulars here,
that the troops at his command were needed to reinforce Gen. Bacon at Bear Island.
Lieut. Humphrey refused to go to the relief of his comrades-in-arms without he had orders
from superior officers. Marshal O'Connor wired the interior department at Washington
requesting that troops be sent at once, as there was danger of an Indian uprising, and ad
ditional troops were needed at once to reinforce Gen. Bacon, if alive, and put down the
fighting Indians in any event. No reply had been received up to 8 o'clock.
The unexpected happened yesterday morning a t the main land near Bear island when
Company E, of the Third regulars, commanded by Maj. Wilkinson, Lieut. Ross and under
charge of Gen. Bacon, were ambushed and trapped by the Indians. The battle was a com
plete surprise to the troops, and on the first volley four of the men were stricken down.
The first shot was fired at 1 1:30 o'clock, and at noon when your correspondent left for
Walker, the fighting was still in progress.
The troops, accompanied by Gen. Bacon and Marshal O'Connor, left Walker on the
steamboats Flora and Chief. The Flora in addition towed a barge on which was the com
pany of the Third. On the steamer were Deputy Marshal Sheehan, W. H. Brill, of the
Pioneer Press, K. C. Beaton, of the Minneapolis Tribune, and Harry L. Knappen, of the
Minneapolis Times. The steamer Chief had on board Gen. Bacon, United States Marshal
O'Connor and half a dozen deputies and nine Indian police and two Indian interpreters.
Tiie expedition started at 5:50 o'clock and reached the vicinity of Bear island, where
Bog-Ah-Me-Geshik (Bush Ear) had a conference with Marshal O'Connor and Indian In
spector Tinker on Monday. The barge having on board the troops was landed, but the
water was so shallow that the steamers anchored off the shore. The Flora about thirty-five
feet and the Chief about 970 feet.
There were several Indians seen about the few log houses on the shore, but when the
troops landed all but one disappeared in the woods. On landing, the soldiers proceeded to
the house in which Bog- Ah-Me-Geshik resides, when at home, but the chief, who had threat
ened to kill the soldiers, in case they should be sent after him, was not at home. Deputy
Marshal Sheehan however, found Mah-Quod, a Pillager Indian, who was one of the twenty
two who rescued the Pillager chief soma weeks a^o, and placed him under arrest.
Mali Quod put up a desperate fight.
Although the company of soldiers
were drawn up In front of the
place, It required the assistance of
four soldiers to subdue the pris
oner and put the handcuffs on him.
During the time Deputy Sheehan had
his hands badly cut in putting on the
handcuffs'. After Mah Quod had been
placed in the bow of the steamer Flora
the troops formed columns of twos and
marched around the peninsula, which
la on the main land off from Bear Isl
and. A number of small Indian set
tlements were visited and inquiries
made for Indians for whom the mar
shal and his deputies had warrants.
Bog-Ah-Ma-Geshlk kept out of the
way as well as the others of the tribe
wanted. A number of the loaders talk
ed with by Gen. Bacon and Marshal
O'Connor professed great friendship for
the soldiers and promised to do what
they could to secure the members of
the tribe wanteG.
Several Indiana were seen walking
5 A. M.
laws and Four Hen Stricken.
about with riflVs in hand, but they
were always at a distance, and made
no demonstrations of war.
United States Marshal.
Two hours and a half was spent by
the troops, and the marshals in visiting
— A. F. Morton.
the several settlements, and then the
party started back for the landing
place. Just In front of Bog-Ah-Ma-
Geshik's a young Indian was arrested
by Deputy Sheehan. The fellow an
swered to the name of Musastrand, and
made no objection to his arrest.
The company, minus a few guards
° n .,. tne steamer Flora, lined up
with their backs to the lake, and were
put through a few evolutions by Maj.
The last order of the commanding of
ficer before the massacre commenced
was to unload pieces. ThLs was obeyd,
and ias the men rested arms a signal
shot was heard. This was followed an
instant later by a second one, and then
a fustilade of shots was fired from the
bushes and small timber by the Indians
who were in ambush.
When the first shot was heard it was
supposed one of the company in un
loading his rifle had accidentally dis
chaiged It. The second shot created
Continued oa Flttk Page.

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