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- - A mi r 0 i -.hi ;1 It U iU I V: I II I. 1 www ol n n o I pun i -v-MWnlto o o Ql f rmrr lAV 5 Lvy Aft ' iU1 Ml y x ii j n i mm T I .11 1 I 1 .lL I i I II ( I II II II TOL. XIIL SALEM. OHEQOS, WEDNESDAY, JULY 17, 1912. KO. HI. IHDFHV HIS RED A UMHrT STOCK THAT WAS INVENTORIED AT $90,000 PAID CREDITORS DDT $9,000 Baxtejqnjhe Stand Today Admitted That He Had Been Ap ponited'Receiver of Eight Different Bankrupt Firms In One Case the Stock Was Inventoried at $90,000 and $65, 000 Was Offered for It Baxter Conducted the Business at a Loss for a Year and When It Was Closed Out the Creditors Got But Ten Cents on the Dollar. Seattle, Wash., July 17. That $65, 00 wbb offered to Receiver Sutcllffe liaxter for the stock of the bankrupt McCarthy Dry Goods company, but that Judge Hauford turned the offer down, and that subsequently, after Hanford's receiver, Baxter, had run the business for a year, the creditors got barely 10 cents on the dollar, was the admission made by Baxter on the -witness stand before the congression al committee today. The bankrupt stock had been In ventoried at $90,000, and the creditors were eager to have the $(i5,000 accept ed. This would have given them about 70 cents on the dollar. Baxter said he operated the bank rupt store at a dead loss every month, except during November and Decem ber, 1907. Baxter also admitted this morning that he had held eight receiverships under Ilanford, instead of seven as he previously stated. Baxter's testimony was not finished this forenoon, but he was excused be cause the commltee wanted to exam ine E. G. Anderson, president of the Merchants' and Credit Men's associa tion. Anderson was called to testify re NATIONAL GUARD GOES INTO GAMP Portland, Ore., July 17. Officers and men of the Oregon National Guard will leave Portland Saturday for maneuvers at Grays Harbor, ' AVashlngton. They will be In camp 10 days. The first section will leave over the Northern Pacific railroad en route to Montesano, Wash., at 9 o'clock Saturday morning. The sec ond section will leave at U,:.10 p. m. the same day. In the first section will be one bag gage car, one flat car four stock cars and six coacheB. In the second sec tion will be a baggage car and nine coaches. The first section will carry headquarters, companies II, B, F, C, Third Infantry, the sanitary troops at tached to the Third Infantry and the ambulance company. In the second section will be companies A, D, K, G, I, K, L and M. Company C will leave Baker City July 1!) for Portland. Company D from Corvallls, Company G from Dal las, Company 1 from Woodburn, Com pany L from Oregon City and Com pany M from Salem will come to Port land July 20. first Lieutenant Francis C. lCdlcott, Fifth Infantry, Inspector Instructor, on duty with the organized militia of Or egon, will accompany the Third Infan try. CONVICTS MAKE A BREAK FOR LIBERTY rxrrsD mui uung wui.l Tacoma, Wash., July 17 Meager reports from McNeils Island state that several convict tried to escape yes terday while working In the grain fields near the penitentiary. One Is still at Urge. ARCHBISHOP TRANSFERRED. Vancouver, B." C, July 17. The most Rev. Neil McNeill, archbishop ef Vancouver, B. C, has been transferred to the Toronto see as archbishop. L1ETII0DS DOT E garding the efforts made by certain prominent business men to block the association from preesnting evidence against Hanford. Congressman McCoy, from the bench, charged that a Mr. Goldsmith had blocked a meeting of the credit men after they had appointed a com mittee to formulate their their com plaint against Hanford, regarding his actions in receivership matters. Anderson testified that at a general meeting in June of the association a motion was passed for the appoint ment of a committee to take -up with the federal Judges the question of se curing better results In receiverships and bankruptcy matters, from the standpoint of the creditors. This com mittee had not been appointed when the congressional committee began its investigations. Anderson, at the sug KHBi.mii of the Investigators, appointed a committee and called a meeting to take up tho request of the probers to co-operate with them. At this meet ing James S. Goldsmith appeared and persuaded them that the credit men's committee's duties should not he ex tended In that direction. According (Continued on Pace 6.) S TRIAL IS HEAR END UNITED PRESS 1JHHKD WIRE Los Angeles, Cal., July 17. Bert H. Franklin, confessed Jury briber and star witness, and John Harrington, of Chlcugo, also a state witness, will be called to the witness stand by the de fense In the Darrow trial tomorrow. This was admitted today by the de fendant himself, when he requested that the court order the men to re port tomorrow to testify. The nature of their probable testimony wag not divulged, but It Is generally believed that they will be asked to corrobor ate statements by defense witnesses, who were called wl'h the object of Impeaching testimony given by Frank lin when he appeared for the state. Fremont Older, editor of a San Fran Cisco dally newspaper, was called to the stand by the defense today. He testified that he furnished ball money for John R. Harrington, when Har rington was Jailed In San Francisco for refusing to answer question asked him, when he was culled before the Los Angeles county grand Jury. Harrington, fallowing his release from Jail, told Older that there was no corruption In the McNamara trial and that Darrow explicitly forbade any action by any person connected with the defense which would In any way he a violation of the law. G. C. Watt, of Venice, who testified late yesterday, was recalled to the stand today, but the questions put to him fulled to develop anything new. I U,I,IN; FROM WINDOW , CIKL IS KILLED UNITED riDIS MARBD Wlll.l Seattle, Wash., July 17. Miss Hazel Shipley, aged 21, fell from a third floor window of the Hotel Belmont early this morning and was killed. A pillow was found on the window seat, and It Is believed that the girl laid down by the low window to sleep, on account ot the heat, and that she fell out while sleeping. IVERS WERE FAILURES DARROVV THE BEST Against Socialism. Chicago, July 17. Because he is a Socialist and worked active- ly as such In the last campaign the Ancient Order of Hibernians. today rejected the credentials of Edward N'orton, a Wilmington, Del., delegate to Its convention here. . The convention also nronoses to consider charges against Pres- Ident Healy of the Hibernians In Delaware, and It Is declared that If Healy Is found to be an active Socialist he will be asked to re- sign from the order. FAIR HAS A DDSV MEETING ( OMPI.ETES ARRANGEMENTS FOR ITS MUSIC, AMI FIXES THE Sl'E 1'IAL HAYS WEDNESDAY SALEM AM) BABY DAY. An Important meeting of the State Board of Agriculture was held yester day at the state fair grounds, and among other matters settled was Unit of choosing a band for the annual ex hibition, which begins this year Sep tember 2 and closes September 7. The board, contrary to former practices, decided to employ a band composed of residents of Oregon only. In for mer years foreign bands have been employed, and this created a good deal of unfavorable comment, and some bitter opposition, especially among the music unions and bands of the state. It Is now thought that much of thlB opposition will be eliminated. No band has been selected and can not be until advertisements are In serted In the papers and bids submlt te. It was also agreed to select vocal music from among citizens of the state, the same as the band music. Another Important matter settled at the meeting yesterday was fixing the special days for the fair. Monday will be labor day, Tuesday will be Wood man of the World day, Wednesday will be Salem day, Thursday will be Portland day and Friday will be Portland day. Saturday will be Bet aside for the Shrlners day, if that organization wishes It, but the matter has not lieen definitely settled. Wednesday, besides being Salem day, will also he baby day. On this day there will be a baby show, at which the board has offered $500 In prizes. Besides the prizes offered by the board, It Is understood that there will bIbo be prizes offered by Individ uals. , The board has adopted a new plan for policing the grounds this year. Instead of the usual number of depu ty marshals, It Is planned to have a sufficient numlier of the members of the National Guard to camp on the groundB to serve ns officers. It Is not intended to dispense with the chief marshal, but the Nulional Guards will compose the entire force. CONVICT AT LAIUJE ON M'NEIL'S ISLAND united mms i.itn wire.) Tacoma, Wash., July 17. Walter Layman, a federal prisoner serving three years for counterfeiting In Se attle last December, escaiied the vig ilance of the prison guards at the fed eral penitentiary on McNeils Island yesterday morning and Is still at large. Layman with several others was put to work an the grain field adjoining the prison groundB. While the guard was not looking he strayed sway. It was several minutes after wards that his escape became known. The prison siren was Immediately blown and a company of guards cir cled the Island. Farmers were noti fied. Every avenue of escape In be ing guarded, and It Is expected that Layman will be crptured before night fall. BOARD The Archbuld Impeachment. . Washington, July 17. Predict- ing that the Impeachment trial of Judge Robert Archbald of the commerce court will not require more than a fortnight, Chairman Clayton of the house Judiciary committee today made plans to demand an Immediate trial when the house prosecutors of Arch- bald appear before the senate Friday. Judge Archbald also Is sum- moned to apiear in person before the Benate next Friday afternoon. CREATION England Had No Thought of Protesting Against Panama Tolls Until American and Canadian Railroads Took It Up. ENGLAND CANNOT DICTATE We Built the ( unal and Will Not Con cede Any Country's Right to Say Whether or Not We Shall Charge Our Own Vessels Toll for Using It Railroads Scut a Delegation to England, mid They Secured the Protest. UNITED PRESS LEJ.BED WIRB.1 Washington, July 17. Congress man Knowland, ot California, today told President Taft that American railroads, acting with Canadlun trans continental lines, had instigated ling land s protest agaiuBt free tolls for American ships passing through the Panama canal. After this conference with the president, Knowland said: "It is a railroad fight. Free tolls for American vessels means lower rail road rates. We built and financed the canal ,and congress will not con cede England's right to dictate the tolls." Knowland further declared that England had not thought of protesting until the American ami Canadian rouds sent a delegation to England He doubted whether America would be willing to submit the question to The Hague tribunal, because all of the foreign interests would be against America there. The British protest Ib expected here tomorrow, and It Is believed President Taft will send a special message to congress voicing his views of the matter. DEATH FARM MYSTERY IS UNSOLVED 0E AFTER ANOTHER NINE I'EH. 'SONS MOVING ONTO A FA KM WITHER, BECOME I'AIIAEYED AND DIE BODIES TURN SPOT TED. UNITED I'llKHX l.'H:il W IHIC. 1 Mt. Vernon, 111., July 17.,Slate and county officials are today probing a "death farm" mystery which already has cost nine lives. The latest victim was John Ackernuin, at whose ihtith the doctors confessed they were com pletely bnffled. All the nine victims died shortly after moving on the farm, each gradu ally wasting away until stricken with paralysis, when death came quickly. Following death, all of the bodies be came spotted. Defatted Scuttle Mum. tmirao rEss liAdru wire.) Denver, July 17. In the first round of play In the western golf tu mo ment here today McLaughlin of Den ver defeated Treat of Seattle. PROTEST RAILROAD POLICE , A Million. Dollar Bridge. Vancouver, B. C, July 17. Hon. Frank W. Cachran, Cana- dlan mlnlstor of railways an- nounced this morning that ho would recommend an additional government subsidy to complete the Second Narrows bridge here, This Is one of the most lmpor- tant harbor improvements In pro- gress here In preparation for the completion of tho Panama canal. It will require a million dollars to complete the bridge and Cach- ran Intimates that the govern- ment will supply all or a consul- erable portion of the amount, WITNESSES DIVIDED OUT OF 112 EXAMINED ONE-HALF SAY THEY NEVER SAW HAN. FORD Dlll'NK-TIIE HORSE EDI. TOR CAN ADD HIS TESTIMONY TO THEIRS. UNITED FnEHS MUSED WITIB.1 Seattle, Wash., July 17. With the evidence of Attorneys Peterson and Whltlock, both or whom testified that they had seen Hanford Intoxicated, the congressional committee, It Is believed have definitely cloHed the taking of testimony on the charge of drunken ness against the Judge. Thus fur a total of one hundred and twelve witnesses have been heard rel ative to Hanford's alleged drunken ness. Of these fully half have boen Hanford's friends and club members who havo declared they never saw Hanford drunk. -On the other hand, the witnesses Including persons In various stations of llfo have testified ell her positively that they saw him drunk or that they belleveu ?-jiii bis actions that, he was under the Influ ence of liquor. Tho strongeHt Individual witness nt'ohiBt HnnforilQwns perhaps, Victor Carlson, a painter, who swore that llnnford was drunk on a street car one night In the spring of 1909, that he acted Indecently und the conductor had to put him off the car. Another strong witness for the gov ernment was Attorney F. H. Peterson, who declared Ilanford was so drunk on a street car that tin conductor had to assist him off the car and take liliu to his gate. BISON AI TIIOItlTIES WANT HENRY JONES Authorities at the penitentiary have fi i warded circulars to officers throughout the country asking thorn to aid In the apprehension of Henry .NineH, who on July 14, while serving In the capacity of an "honor man" with a gang of convicts building a road near Hood River, made Ills es cape. Jones was serving a term of from one to seven yearn for larceny, having l.een sentenced to the ;mltonllury from Douglas county, The spreading of the circular among officers of the state was the fiiHt Intimation that the public had of 1 1 1 1 it effectlnv an escape, ANU.EIt CATCHES SEVEN. YEAR-OLD BOY UNITED PRESS I.EAHKII Wilts Wenalchee, Wash., July Ifi. Instead of the fish that had been nibbling at his hook, It was the all but lifeless body of a little boy that II. L. Bolin reeled from the treacherous Columbia river yesterday. IeaU-r Brown, aged 7. had attempted to swim In Die swift current. He had gone under the surface twice and was floundering, when llolln's line became entangled with his small body, and saved him from a watery grave. The boy Is the first ever to have been sav ed from the river at this particular place, where the current Is swift and treacherous. It took an hour to resus citate the boy. He Is a son of George Brown. OP ON TESTIMONY .DAY LIEUTEMT WITH A WOMAN SAYS CAR USED BY III FRONT OF A Mysterious Woman, Garbed in Green, Calls on District At torney and Tells Him She Saw the Car Used to Carry the Murderers to the Scene of the Murder Standing for Three Hours in Front of the Home of Police Lieutenant Becker on the Day Rosenthal Was Murdored Later She Was Shown the Car and Identified It as the One She Had Seen. UNITED MESS t.JED Willi. New York, July 17. Police Com missioner Rhlnelander Waldo today wrote to District Attorney Whitman a letter disputing the charges that the lollce system of New York Is respon sible for the murder of Rosenthal. The letter said In part: "An Immediate Investigation la noc esKary both In tho Interest ot good government and In order that the rep utations of 10,000 policemen who were honestly doing their duty may not be besmirched by Individuals who may be rascals. "Ia'ss than 1.10 men are connected with tho enforcement of tho gambling luws, leaving 10,000 who are free from suspicion. It Is unfortunate that the desire for publicity should lead any one unjustly to attack this body In general for the alleged wrongdoing of a few. . . "In tho Investigation of the actions of the police In connection with the gambling situation an investigation should also be made by tho courts and the district attorneys who could stop gambling If they desired by upholding the police and sending convicted gam blers to Jail, Instead of lotting them go free on suspended sentence. THE BRANCH ROAD IS IN BAD SHAPE A garden of weeds Is the appella tion applied by Railroad Commission er Campbell to that portion of the Southern Pacific track running from Tallmun to Springfield. Ho declares that this track Is also In a hud condl tlcn because of tho luck of tli, but tho company hus agreed to Install them and also to eradicate the wpeda. Railroad Commissioners Campbell and Miller returned last night from an Inspection of nil lines on the east side and It Is their Intention In tho near future to make a similar Inspec tion os to the west side lines. The track from Woodburn to Na tron, Railroad ('oniiiilHHloner Camp bell says, Is fair. That from Tollman to Natron Is particularly bad for wont of lies but they ure on the ground mill will he Installed as flint as possi ble. From Natron to Oak Itldue, the new "VxIciihIiiii, the track, he said, was In u n i Mt cIiihn condition. The company, he Huys, Is pull ing he track In good conditions as rap- Idly as possible, but Is experiencing ii i icli trouble because of the scarcity of labor for this kind of work. OPPOSITION OIL COMPANY INVADES OREGON united rum iehi wins.1 Medfoid, Ore., July 17. Invasion of Oregon by the Standard Oil company's great competitor, the Indiana Refining Company of California, controlled by the Rothschild's, and handling the oil products of Borneo, Suiiimutra and other foreign oil fields, was announced today by the purchase of a site for a distributing plant at. NTiHlfoid, and the letting of contracts for the erection of ranks. Similar plants will be erect ed at Eugene and Salem. Some persons are miserable because they can have their owu wuy; others are miserable because they have had theirs. G000ECT THE CD SHE SAW MURDERERS BECKER'S HOUSE The lettor ridiculed some of the charges against tho police but did not deny that some of the members of the police department might be guilty. A new feature of the Rosenthal murder was developed today when a mysterious woman dressed In groen, Informed District Attorney Whitman that she had seen a touring car simi lar to that used by the slayers of Ro senthal standing In front of the homo of Police Lleutennnt Becker from B o'clock until 9 on the night before Ro ucnthal wiib bluln. The woman then went to the coron er's office, where she Identified the car UBed by the murderers as the one she had seen standing In front ot Lieutenant Becker's home. "I do not wish to go on record as) having charged this murder to the police department," declared District Attorney Whitman toy. T iir charge that tho police permitted the murder to occur and deliberately allowed the murderers to escape, I can prove this. It takes tlmo for an automoblo to work up a sliced of forty miles an hour, and In my opinion there wa ample time for tho policemen to have nrrested all the murderers before the car got under headway," NEW CAMP MAKES GOOD SHOWING (High Grndo News.) Warner Range continues to produce sensations that aro startling. A sack of white and rose quarti spangled with gold came down from the rangn over Kelly Creek on Thurs day by a prospector named Robinson. The find was kept a uecret for sev eial days, but news of It leaked out and samples of the ore weru secured by a representative of the News which unsays very hlli. Dr. 10. H. Amsden and Dr. Knstinan have been griib-sluklng Robinson and now feel that this time a gruh-stnke is equivalent to a Juck pot. The find Is supixised by old timers to be the traditional "Ust Cabin" or lllue Bucket mine, which was sup posed responsible for the organization of the (iooHe Utkii Mining District at the farm or Win. Cogswell five miles north or New Pine Creek In 1871. At tlie meeting twenty miners were pres ent, and the proceedings were record ed by the county recorder of Jackson, Oregon, of which Lake und Klamath counties were a part. OHEIiOVS SYSTEM OF LOAM Ml SCHOOL FUNDS That Oregon's system of loaning school fluid h to furmers and other holders of real estate In small sums Is attracting much attention through out the nation la evidenced by the publicity being given It In magazines. These articles have caused a flood of letter to pour In on the secretary of state from those Interested In the subject, asking for copies of the law ii ml also Infornuitlon as to the work ing of the system. The state has loaned out practically $6,500,000 at t per emit In small sums and baa never lost a dollar of It It Is too bad that somebody always goes and makes ut mad Just when we wed going to prove what nice, cour teous people we are.