Image provided by: University of Nebraska-Lincoln Libraries, Lincoln, NE
About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (June 9, 1912)
THE OMAHA SUNDAY. BEE; JUNE 9, 1912. BANKS FORCEMO SUSPEND Testimony Shows Use of Power bv Clearing; House Committee. JONES TELLS OF HIS DOWNFALL President of Orieatal Baali Tells of the Katrfol Ordir Letter of Successor Telia of tar Condition. NEW YORK, June S.-Tstlmony In tended to show the power of the New York clearing house committee was used to force a solvent bank to the wall dur ing the aftermath of the panic of 1907. with the result that the "fair reputation" of its president was "blasted." was dramatically presented yesterday before 'the Pujo committee of the house of rep resentatives which Is investigating the money trust. ' The testimony was elicited by Samuel Untermeyer. special counsel of the com mittee, in his effort to demonstrate that the functions of the clearing house enable it to control the destiny of New Tork's financial Institutions and should be subject to regulation by law. The bank around which the testimony centered was the Oriental, organized In 1853, and one of the charter members of the clearing house association, but It was testified that three other banks, the Bank of North America and the New Amsterdam National bank, In both of which Charles W. Morse was interested. and the Merchants and Traders, were similarly compelled through the action of the clearing house to close, although all proved to have been solvent. Demand br Committer. iThelr financial decline was the result, it was testified, of a demand made by the clearing house committee three months after the panio began, that they redeem their clearing house loan certificates, and In the case of the Oriental followed promise that the association would Stand by It "to. the last ditch." . Mr. Untermeyer had on the stand Wil liam Sherer, manager of the clearing house association; James O. Cannon, president of the Fourth National bank, who . recently became a member of " the clearing house committee: R. W, Jones, president of the Oriental at the time of the panic, and Ersklne Hewitt and Charles A. Beekman, directors of the bank. . During tho first rumblings of the panic in October, 1907, Mr. Jones was sum moned before the clearing house commit tee, according to the testimony, and told that the Oriental must stop clearing fur throe nonmembtr banks, Including two Brooklyn institutions which were under legal investigation. Mr. Jones said the withdrawal of the balances of these banks under the prevailing strained financial conditions would cause "serious trouble" to his Institution, but the clearing house committee was obdurate. At his request tbe clearing house agreed to tide him over with a loan, acur a clearing house com mittee had examined the bank's condition and found it "entirely satisfactory." The Oriental then discontinued clearing tor the Brooklyn banks, as tbe result of which both toon closed, It was testified. President Jones was then taken ill with' pneumonia, and a. report became current that he was to be, Indicted In connection with the investigation of the Brooklyn bank and was shamming illness, the day's testimony ran. It turned out that ha was .only wanted "as a witness, . . Horn on. Bnnk Caused. Meanwhile the rumors afloat had caused a run on the banU. and the clearing house committee called before",ui Mr. Hewitt and Mr. Beekman and demanded, according to Mr. Jones, that lie resign and the late Hugh Kelly, also a director of the Oriental, be elected to succeed him. ' ' This was consented to after a promise had been given to Kelly by A. Barton Hepburn, chairman of the clearing house committee, according to Hewitt's testi mony, that the association "would stand behind the Oriental till the last ditch." Kelly obtained a specific guaranty, Hewitt said, that the entuo resouroes of the clearing house would be placed be hind the Oriental. As described in a letter Mr. Jones testi fiel Mr. Kelly prepared but never sent to the stockholders of the Oriental, which was put In evidence, "a number of gentle men of high place in financial affairs sat In Judgment upon him (Mr. Jones), their fellow member, and concluded their de- "LMed LiKe a Miracle on Stomach and Nerves 1 ,w sV . v I 1 jMjB-.'i. t'.'WS I mr martin woHLscniEas are now quiet and my stomach can retain all food, and I am again in good condition. I recom mend it to every tick person and will continue to do so." Mar tin Wohlschiess, Neshamery P. 0., Bucks County, Pa. Duffy's Pure PJialt -Whiskey WHAT IT IS-WHAT IT DOES It is an absolutely pure distillation of clean, selected grain thorougrly mlted. It is a predigested liquid food in the form of a medicinal whiskey; its palatability and freedom from' injur ious substances render it so that it can be retained by the most sensitive stomacr. Br assisting digestion and assimilation, it enables you to get from tho lood you eat all the nourishment it contains It builds up the nerve tis sues, tones up the heart, .give tMjwef to the" bntn, strength and elasticity to the muscles and richness to the blood. For stomach troubles, nervous ness, typhoid, malaria, disease of tbe tijroat and lung'i ft Is wonderfully affective. " - - ' ' Duffy's Vara Malt Whiskey ts tha only whisksy that was taxed by tha Government aa a medicine during the panisnAjnericaa war. 8 TOT GET VVTTTTB and that the seal over the cork is Intact. Sold lit KKALED BOTTUiS OXLV by druggists, grocers and dealers, M large bottle. If your dealer cannot supply you, write us, and we will tell you where It can be bought Our doctors will send you advice free, together with a valuable illustrated udicai booklet. ' , ' Tha Duffy &Ult Whiskey Co, RoCt'ester. N. a Nebraska Man Wins Honors at Harvard With an exceptional record Harry 0. j Palmer of Louisville, Neb., graduates from the Harvard law school this month. His work there his first year ranked hlrn among the f list in his class of over 200. Because of this standing lie was awarded a faculty scholarship, and was elected a member of the editorial board of the Harvard I-aw Review. This board consists of twenty-five men, 83 locted from an enrollment of W0 because of high standing. In this work he has been associated with Charles K. Hughes, jr., son of Mr. Justice Hughes of the United States supreme court, and Robert A. Taft. son of President Taft. Mr. Palmer was born hi at Louis ville where his father, E. K. Palmer, -vas a pioneer merchant. He graduated from the Louisville High school In 1C02, lead ing his class and winning a state scholar rhlp. Ho assisted in his fathej-'s store until 1M4. when ho entered the Nebraska Wesleyan academy, completing six year academy and college work In four years, taking his A. B. degree In . 1908. Mr. Palmer excelled in modern languages, assisting In the departments of English, German 'and French. But ills activities. wer,e not solely academic. In his Junior year he was chosen president of the Uni sersity Republican dub. In his senior year he was chosen president of tlie Athletic association and general man ager of the college weekly. He wrote the prize short story for "The Coyote," the college annual, and contributed In verse. Socially he was active as a mcra- liberations with the following sentence, viz.: "That the board of directors of the Oriental bank must meet at once, accept Mr. Jones' resignation of the presidency; and elect another president in nis piace. "Thus In a moment," the letter con tinued, "without excuse other than the statement without foundation In fact, that Mr. Jones was already either Indicted or would be Indicted that day, Was a fair reputation blasted, and . the work of a lifetime of energy, application and honest dealing destroyed. Mr. Jones. In obedi ence to the demand, resigned and Hugh Kelly was elected in his place. , Mr. Kelly, who had returned from Europe only two days previously, sought a hearing before the gentlemen who had thus condemned Mr. Jones and 'demanded to know how far -ha could rely in the protection and aid of the clearing house if he excepted the presidency, and was told in unquali fied terms that he and the bank would be protected to the end of the trouble. "How the pledge given him at that time has been carried out is easily told by the bank's suspension two months later, on January 1, while in a condition of abso lute solvency. Then, without previous warning or discussion of the subject with tho officers of the Oriental, came the de mand, publicly announced, for the retire ment of the outstanding clearing house certificates before February 8. In previ ous periods of financial uneasiness certifi cates had been permitted to run for six months or more. In this Instance the larger institutions had recovered their de-. posits and their equilibrium in a shorter term, and then the situation resolved it self, into a case ot 'the div(l, take the hindmost.' 'The ffttaj blow had beerf struck; , a$, the Orleatal and 'tha. run. boeyer the country and through the exchanges which followed, compelled-the, nloslng ot lta nnhnnnt V-Wfirfts .wove. the irfenstfou JnJustTce Ihat wag, done to it .i.ijUt' .....Ana IK- Thfc Int. ana q tin yrwujuv .. .-- - ter was made usa of to satisfy a oonai tion that threatened '; not merely . tli Oriental, but. every, clearing house bank In York at the time. When that condition was past the engagements made with him were forgotten. . '.."'' Wltfcin:ten days of the closing of the bank the depositors 'have been provided for and paid and its clearing bouse loan certificates retired, all by its own re sources. Thus is Its solvency proven." Mr. Untermeyer then brought out tes timony showing that at the time of it suspension the Oriental had collateral up with the clearing bouse for twice the value of its loan certificates; that tt liquidated assets twice tho value of !ta capitalization, and that at tha tlma Its troubles began we paying 12 per. cent dividends. writes Mr. Martin Wohlschiess. Before he .started using Duffs Pure Malt Whiskey his stonv ach was aJl oit of order and his nerves shattered, troubles that were quickly checked by this valuable medicine. "For two years 1 suffered from my stomach and nervous trouble... My. digestive organs were entirely out of order, and all the money that I spent for relief was thrown away. I read about Duffy's Pure Malt Whis key, tried it, taking four doses a day, and, Tike a miracle, with in a very short time my ail ments disappeared.' My nerves ber of the Orophilian and Phi Beta Sigma societies. He was a member of te Kosmos club of Nebraska, an organiza tion for philosophical and socttjloglpal research. One summer vacation he spent Just before the committee resumed its session today it was made kfiown that it, has been trying for the last few days to subpoena William Rockefeller, These efforts have not been successful, however. The committee seized at a report that he was somewhere in Canada or the Adirondacks. Manager Sherer of the clearing house on the stand denied the assumption of Attorney Untermeyer that, tha clearing house association and the railroads both are Instruments of interstate commerce., "No one is obliged to join the clearing house," Mr. Sherer said, "but those who Join have to live up to the rules." Volcanic Ash Falls Thickly on Cordova; May Be New Crater CORDOVA, Alaska, June 8.-Volcaiilc aeh Is falling thickly over this city, show ing that the heavy cannonading heard in the mountains all last night was tha noiso of a volcanic eruption. The tlma between the cannonading and the fall of the ashes here was so Rhort that It is believed, tho volcano is the Redoubt or: thft,.I.llamna mountain in the Cook inlet, country, , . The cloud effect throughout this sec tion of Alaska was unusual all day, dull clouds hanging low, with a southwest wind. The cannonading was first heard last night at 7 o'clock and concluded without Interruption ' until after . 3 o'clock this morning. The blasts were hcaVy and in Quick succession. 1 The navy wireless station tried : to communicate with the stations to the westward to get definite information of the atmosphere in tlje Cttok, inlet rcoun JttyS hiit '.the statin condition of the at mosphere made it . Impossible to .work with any of .the Alaska stations. The, steamship Mariposa, which arrived today from,' Seattle, reported that It heard the eruptlpn , while between. Capu St. Ellas and Cape Ilinchlnbrook. The Mariosa'c wireless Was also out of com mission because of the atmospherlo con ditions. T . v' SEATTLE, Wash., June 8. There was a great many extinct and smoking vol canoes in the mountains of southwestern Alaska, and geologists say the eruption reported at Cordova may be one that has sprung into existence. V i Professor Henry Llndes of the depart ment of geology at the University of Washington said the fact that the de notations were heard so plainly at Cor dova would Indicate that the volcano was not a great distance away, possibly on Kenai Peninsula. ; ' ' Mount Pavlof, Mount Shlshaldin and Mount Bogoslof, Alaska's most famous volcanoes, which m frequently-m vio lent . eruption, are on the . Aleutian islands, more than 1,000 miles west of Cordova, and it would -be impossible for the denotations to be heard in the Cop per river country or for the ash to travel the distance in so short a time. The seismograph at- the, University ot Washington recorded four alight earth quake shocks, between 2.-41 , yesterday afternoon and 10:25 this morning. Tha heaviest was at 11 03 last night (Cor dova time). A report from Olympla said that two slight earthquakes were felt there yesterday afternoon. G1FF0RD OF CANTON NAMED , GRAND ARMY COMMANDER MITCHELL. S. D., June 8.-CSpeelal Tl egranj.) Delegate to the Grand Army of the Republic and the Woman's Relief corps have been busy today in their slons, one of the inaia features, of wblcV was the etectloa of officers at the after, noon session. The following .are officers of the Grand Army:. Commander, O. A Giftord, Canton; senior vice commander, Henry Ferry. Vermilion; Junior vice commander, J. C. Purdy. Mitchell: chaplain, P. A. Massett, Hot Springs; council of administration, Phil Lawrence, Post No. 4. Huron; T. C. D Jean, Post No. 27. Planklnton; C. & Hlodgett. Post No. 28, Rapid City: Q. W. Snow Post No. , apriagfleld; S, V. Arn old, Poet No. IS. Ipswlcb; delegates to. national encampment, J. C. Purdy, Mitchell: Joseph Ehon. Northvttle: J. C Luce Qroton; alternates, H- C. Anderson, Aberdeen; Washington Eddy, Wooa socket; Dr. Babcock, Deadwood. The. Relief corps named the following officers: ' i President, Mrs. S. Nevada Hereford, Aberdeen; second vice, Hrs. Minnie Beh berg, "Brookrngs: Junior vice. Mrs. Mry rowell. Planklnton: treasurer. Mrs. Van Ness, Aberdeen; chaplain, Mrs. Isabella Easing, uapia oiy; omega cB-ai-"iKo. Mrs. Bella Prentiss. Vermtlton; alter nates, Mrs. Mary Ward. Yaukton; la. n ,. , A. .a n.tlnnnl ni.ftmnmpnt. Mn. Clla ecutiva council, Jane Ixuise Houser, Mrs. Norton, Aberaeen; Mrs. naary jsnomi, Yankton; Mrs. Mary Oldenfield, Clark. Belger, Mrs. Mary Ward. Tankten; e. Aberdeen was selects as the place lor the. anoampmant next year, with oppo sition from Brooking and Millar. A resolution was adopted to petition tba state legislature for the appropriation of sufficient raoney far the employment of a professional nurse to be inatalled ut the Soldiers' Home at Hot Springs. To night a campfiro was held and tomorrow noon both orders wilt adjourn. Persistent Advertising Is the Road ts Big Returns. as foreman of a gang of Greek laborers on the Rurllngton railroad and two others as traveling treasurer with a western Chautauqua system. While at college he did miscellaneous writing for the newspapers and after graduation was associated for a year with a Lincoln daily. Mr. Palmer entered the Harvard law school In the faM of 1M9. He was elected to membership In the Blackstone Law club, the Harvard-Nebraska club, and the Harvard Masonic club. The last two years he has been active In settlement work with the Jewish. Italian and Irish quarters in the' South End In Boston, and this summer will have charge of Camp Hale, a settlement ramp on Squaw lake in New Hampshire. He has given his observations on ' settlement problems to the press in articles which lave been widely, copied and has done general correspondence for the Omaha Bee. ' ' ' ' - The nature of Mr. Palmer's work as a legal editor is illustrated by a comment made recently by the toastmastor at the annual dinner in New York City of1 the editors of the Columbia Law Review, a contemporary of the Harvard Law Re view, wherein he referred to one of Mr. Palmer's editorial criticisms as exempli fying 'the attitude which law Journals should take toward current decisions of the courts. Sullivan & Cromwell and other New York law .firms have offered Mr. .Palmer the opportunity of associat ing with them, but he contemplates set tling in Omaha. HEW COURT SHOWN ITS PLACE Supreme Justices Uphold Jurisdic tion of Commerce Commission. ASSOCIATES SUSTAIN WHITE Decision Handed Down that Com merce Mast Not Substitute IU Own Jadscnient in Adminis tration of Rate Uwi. WASHINGTON, Juna 8.-Blow after blow was given the new commerce court today by the supreme court of the United States, which upheld tha exclusive Juris diction of the Interstate Commerce com mission over the administrative ma chinery of the federal rats laws. The principal decision was announced by Chief Justice White in the "Proctor & Gamble case." He was sustained by the. entire ourt. In substance he held that the commerce court was not to sub stitute its Judgment for that of the Interstate Commerce commission in the administration of the rate laws. The specific point ruled upon was that parties who failed to get relief before the Inter state Commerce commission had no right to go into the commerce court and have that court pass upon the facts to ascer tain If they should have been granted relief. ' In the course of hia opinion Chief Justice White, however, went further. He showed that the commerce court was hot given ' "new and strange" powers, but succeeded to . the powers of : the circuit courts in ' existence 'when the commerce court was called and that the commerce coUrt was limited to questions of law. In cases yet to be passed upon "it is claimed that the commerce 'court went out of tho domain of law and gave its Judgment on pure questions of fact. : White 'Defines Issue. ' Chief Justice White stated the question of decision to be whether the authority of the commerce court , waa confined to enforcing and restraining, as the case might' be, affirmative orders of the com mission or whether it had the power to exert its own Judgment by original inter pretation of the administrative features of the act to regulate commerce and upon that assumption to treat a refusal of the commission to grant relief as an affirmative order and accordingly pass upon its correctness. Both from the words of the act creat ing the commerce" court and .from the general scheme of rate regulation, the chief justice said It was to be seen that the commerce court had no such broad powers as it claimed to possess. "It cannot be disputed," said Chief Jus tice White, "that the .act creating the commerce court was Intended to be but a part of an existing system for the reg ulation of Interstate commerce and that the making of it a part of that system was not intended to destroy the existing machinery or method of regulation, but to cause it to he more efficient by pro viding a more harmonious means for seouring the judicial enforcement of th act to regulate commerce." The petition of the Southern Pacific company for .annullment of an order of the commission fixing the rates on fir lumber and ath from the Willamette valley, Qregop, to flan Francisco and bay points was .disallowed by the court Senator Pol ndcxter today introduced a resolution to discharge the committee on commerce from further consideration of the bill to abolish the commerce court la order, ta bring the measure beioxa tha senate for a vote. No action on the reso lution was taken. Pool Room OrdlBae Upheld, The right of a city to pass an ordi nance prohibiting the running of a pool room' within its limits was upheld today by the juweme court.' The point arose over the-alleged violation by J. 1 Murphy of such an ordinance passed by South' Pasadena. Cel. KERN SPEAKS THREE HOURS UPON LORIMER RESOLUTION WASHINGTON. June s.-Senator Kern of Indiana spoke for three hours Voday tn support of the" resolaUan to - unseat Mr. Lorlmer of Illinois, but again failed to conclude his remarks.' The entire speech was devoted fo an examination of the testimony, with the view of show: in ' that msny new faelj of an In criminating nature had been brought out by tha second investigation tie sought. among ether things, to impeach the tes timony of lid ward Mines, attempting to show that he H4 been unduly " active; in Mr. Lorlmer's fcshalf. He will conclude tomorrow. . , , . HILL RESIGNS CHAIRMANSHIP T)F GREAT NORTHERN ROAD TACOMA, Wash., June 8.-Louls W. Hill, who recently resigned as president of the Great- Northern railway, said io- Bitrht he had received a telegram Ironi his father. James J. Hill, saying that he tad resigned as chairman ef the boaro of directors of the Great. Northern In favor at lAuis W. liUU Your Credit is Good Another mmmnm) i trib Those possessing one of our exquisite FREE spoons may how have FIVE more FREE upon purchasing anything in our line to amount of $5 or they may secure ELEVEN spoons FREE when purchasing $10 worth or more All Omaha is yet talking over the FREE distribution of SPOONS held here during the past week! THOUSANDS of men and women called to get a spoon FREE, as advertised; an exquisite "Nar cissus" pattern, dull finish teaspoon; heavily silver plated and of famous make. Then phones commenced ringing; mail .commenced piling in and our store be came besieged with' callers; all asking whether oinot a COMPLETE set of the 6poons could be secured some way. This led us to plan the above offer; giving everyone a chance to secure, AB SOLUTELY FREE, enough more silver teaspoons to COMPLETE a set. Not $4 each, but $1.85 for this charming Dining Chair The chair shown here is made of solid oak, baa box seat, is upholstered in genuine leather and would 'sell in the regular way at -14 each. At this rate lt won't .cost much to renew your dining room la 8TTLE. Your Credit is Good Visitor is Much Impressed With the Omaha Parks W. S. Gould, park commissioner ..of Oakland, CaJ., visited the Omaha parka with Comroiasioaar Hummel and Super' lntendent Adams yesterday afternoon and declared at tbe conclusion of the trip that Oakland, where every flower or shrub of a. tropical climate can be grown, has nothing on Omaha aa a city of beau tiful and well-arranged parks. "I think your commissioner . ought to have more money." said Mr. Gould. "We appropriate M2,0u4 in Oakland to main tain ad improve 450 ecsee of park land. Here you have nearly three times that acreage -and. only appropriate one-third that amount" Mr. Gould was especially pleased with the prospects at Carter lake. Tha boule vards, he said, were inferior to none lie had sen. lie believes that in .time Omaha' ill have one of the finest system of parks and. boulevards in the V'nited States, ' ' 'Through the courtesy of your park, commissjoocr and superintendent I've had the pleasure of eeelfcs pmaba's dif ferent parks and boyIevard.M concluded Mr. .Gould. "They eplalned the v?ork to date and gave me a glimpse of pro jected plans. Alter an absence of seven Union utfittingq OMAHA E.CORI6mfrJACKS0N 5TS? CONSOLIDATED WITH THE PEOPES STORE. Widespread Bis ution of Silver 5000ns A Featured Range at a Real Featured Price The "Union's" Special Gas Range at $9.75 is just like this cut, ex cepting that it has two burners in place of three. Clean, quick, odorless and a grade of gas range that al ways brings $15.00. Buy them in this selling at, each, Q C only J J Union OMAHA :.COR.I6JACKS0NST utfittingG CONSOLIDATED WITH THE PEOPLES teen years it is gratifying to see through the eyes of the park commissioner ef Oakland your city's progress toward a park and boulevard systems - It moMeetes an advanced position for your citizenship and shows that you are thoroughly alive to the needs and necessities of a modern city." Mr. Gould is visiting his brother, C. Z. Gould, who is general agent of the Penn Mutual JUfe Insurance company of Philadelphia. He believes Oakland will have much better parks in the future and could apply some of Omaha's ar rangements and Ideas to good advantage. Broken Coat Button is Clue to Burglary FREMONT. Neb., June 8. -Half of a broken coat button furnishes the clue by which Holmes Karn has been charged with robbing the Northwestern depot at Wahoo last Saturday night Karn and Charles Sampter broke Into, the Nortlt western depot at Nickerson yesterday and were caught before they had stolen any thing. Burglars secured all the money in the depot cash drawer at Wahoo Satur day by similar robbery. Today Sheriff Daily of Saunders county arrived here, bringing naif coat button which one of the burglars broke off in getting through the depot window. The other half was on Karn's coat. Your Credit is Good 1 rsrrtftm Vv irarrrrsry So bring in your spoon to our store; pick out anything in our stock amount ing to $5, and get FIVE spoons FREE, pick out $10 or more worth of merchan dise and get ELEVEN spoons FREE. The Teaspoons that are to be given with $5 to $50 purchases, are of the exact grade and pattern as those distributed FREE during the week just passed. Please note that each and every spoon given out is of the exquisite "Narcissus"' pattern; dull finish; heavily silver plated; and a set of six would easily command. $2.50 at least at any jewelry store. (Spoons will be given whether the goods are purchased for cash or on our CREDIT plan.) Not $20, but only, $12.75 for this dainty China Closet Oak, quarter sawed is the wood used in the makeup of this exquisite China Closet Has full bent ends, double strength glass, is finished with the best care a capable work man can give It A wonder . at the price. Your Credit Is Good STORE. Diplomas for Naval Academy Graduates ANNAPOLIS; Md.. June sf-After a.' brief address and the presentation of diplomas to members ol the graduating class by President Taft this afternoon. ' the festlvitias. f "June " week" were brought to a close at the naval academy tonight -with the farewell ball given by' the members of next year's graduating class to these who todav officially v. ered their connection with the institution. Tne president arrived after the exer cises had, begun in the big armory. In a three-minute address the president re minded the new naval officers of tin record of the American navy and urged them to live up to its traditions. President Taft handed to each graduate his diploma. Then, escorted by Troop A ' of the "Maryland National guard, he. rod V to the State executive mansion, where ho paid a brief visH te Governor Golds borough before boardina his neciai trai for Washington at 6:$ o'clock. Moveuenta t Ovaou Stfamera. r' Arrived, Sailed LONDON uitom QUEtN'STOWV CWtie. NAPLES , Ocul. ROTTERDAM Blrai ROTTEhOAM Oampanello AUCKLAND Hirm PLYMOI TH K. Aug. Vlctorl NEW TOSK Athlntl LIVERPOOL Adriatic NSW YORK li.ur.ualk.... V x 1. r ) T 1: t.