Loup City Northwestern
volume xxv
•LOUP CITY, NEBRASKA, THURSDAY , JANUARY 16, 190S
NUMBER 10
*
CLEARS UP RAPIDLY
RELEASE OF CREDITS HELPS
FINANCIAL SITUATION.
GASH FOR THE LOW MARKET
Bank Statement Brings Out Funds [
Which Have Been Withheld But
Which Art Now Available.
_
New York—The rapid clearing up j
of the banking situation and the re- |
lease of the large supplies of credits I
to the money markets were the im
portant features of last week’s events
in the financial world. The New York
bank statement of the previous week |
gave the first decisive outline of the
turn itr the situation. The statement
on Saturday showing a $0,000,000 sur
plus has brilliantly confirmed the
week’s impressions. The effect has
spread throughout the money markets
of the world and has sent supplies
hack into the loan market with some
thing like a rush. It was obvious that
funds had been withheld through a lin
gering spirit of distrust of the banks' ,
position or as a precaution against
possible extra demands, were return
ing freely to central reserve points.
The basis of credits is greatly expand
ed by this process. The surrender
of the privilege of deposit of part of j
their cash in the reserve and central i
reserve cities and its recall home in \
the panic was the central factor in j
producing the crisis, and the retention j
of this cash was the cause for the pro
longation of the crisis and the main- \
tenance of the Premium on currency.
The anxiety caused by that pro
longation up to the end of the year
may be said to be now completely i
dissipated, so far as accommodation :
to solvent business is concerned. New
York has ceased to draw gold from j
London and rapid recuperation of the !
Bank of England bullion holding has j
followed. The Bank of France marked ;
down its official discount rate from ,
^ 4 to 3% per cent and market rates
of discount receded in ail the foreign
markets. In New York the most im
portant effect of the new develop- I
inents was the springing up of an ac- !
tive demand for commercial paper. I
which effectively relieved the dead- I
lock in that department and quieted
the fears of widespread embarrass
ments in the mercantile world from in
ability to secure extension of large
maturing obligations.
In the securities market-»the effect '
of this increase of facilities for con- i
ducting speculative operations has j
been pronounced. The resulting out
* break of speculation showed increas
ing animation and was stimulated by
various professional devices and by
the dissemination of rumors of impor
tant developments. The need of a
lat'g uncovered short interest was an
important contributing factor to the
rapid advance which developed and
furnished the material for much of
the demand forced by the bidding up
of pripes by the organized bull party
in the market. . . *
FfilRAKER FACTION AT WORK.
Try^ig to Control Party Machinery at
Cleveland.
Cleveland. O.—A call was issued by
the Forgker-Dick faction of the repub
lican party in this, Cuyahoga, county
for Saturday afternoon, in which it is
stated an executive or controlling com
mittee for the party will be chosen.
Earlier in the day the leaders of the
Taft faction filed a request with the
board of elections asking that a pri
mary be held to elect sixty-three dele
gates to the state convention. The
Foraker Dick faction leaders allege
that the present county executive com
'inittee, which is composed of Taft ad
herents. is without power to act be
cause it was chosen for one year and
had served two years without re
election.
WANTS AN ENLARGED NAVY.
Richmond P. Hobcon Will Wage Cam
paign in House.
Washington—Preliminary to the
■campaign for an enlarged navy, which
h“ proposes to wage in the house. Rep
resentative Richmond P. Hobson ot
tered a resolution providing for the
appointment by the president of “a
commission whose duty it shall be to
investigate gnd report to congress on
the best means of preserving the gen
eral welfare by the use and extension
of arbitration and by the maintenance
of armed forces.”
MORGAN MAKES A PURCHASE.
Coys $30,000,000 New York Central
Trust Certificates.
Kew York—The New York Central,
it was learned, has sold to J. Pierpont
Morgan & Co. an issue of $30,000,000
5 per cent equipment trust certificates
-which are guaranteed by the New
York Central & Hudson River Rail
road company and La allied lines.
MC.\EV FCR PUELiC BULDINGS.
Eighty Millions Will Bo Needed for
the Work.
Washington—"The Sixtieth congress
has been in actual session only a few
days, and more than 600 bills already
have been introduced for the expendi
ture of altout $80,00WOO in proposed
public buildings. If 20 per cent of
that total is appropriated during the
present session the people of the
country may consider themselves
lucity.”
The foregoing slatement was made
by Chairman Bartholdt of the house
committee on public buildings and
grounds.
"Government revenues.” he said,
"are falling short at-the rate of about
$1,000,000 a month, due to the curtail
ment of the luxury purchases by the
popple in this time of financial dis
turbance and commercial depression.
"The 600 odd bills that have be°n
introduced thus far call for the ap
propriation of about $40,000,000 for
the purpose in fTie District of Colum
bia. where there exist such crying
needs, for instance, as a safe building
for the archives of the government—
priceless, unplaceable in case of loss,
and now scattered about all over the
city in such peril as would cause the
nation vast embarrassment if they,
should be destroyed."
Chairman Bartholdt organized his
committee by the appointment of va
rious sub-committees.
Ail bills for the purchase of grounds
or the erection of public buildings in
the District of Columbia. Alaska. Ari
zona, New Mexico, Hawaii, Porto
Rico, the Philippines and Wisconsin
will be passed upon by a sub-commit
tee, headed by Chairman Bartholdt
(Missouri). e
RECEIVERS TAKE CHARGE.
No Change in the Management Is to
Be Made Just Now.
St. Paul. Minn.—The Great Western
on Thursday formally passed into the
hands of the receivers. For the pres
ent at least there will be no change
in the personnel of the officers and C.
H. Smith has already appointed as his
representatives in the operation of the
road the present heads of depart
ments.
Kentucky to Honor Lincoln.
Louisville. Ky.—Governor Wilson
will shortly send a special message
to the legislature commending the
passage of a bill providing for an ade
quate appropriation and the appoint
ment of a state commission to direct
the Lincoln centennial. The 100th eti
niversary of Lincoln's birth falls on
February 12. 1909. and preliminary
plans made by the Lincoln Farm as
sociation for the celebration of the
event at Lincoln's birthplace in Larue
county. Kentucky are now well under
way. President Rcosevelt will deliver
an oration.
Fortification Bids Rejected.
Honolulu—The award of bids for
material for the fortification of Pearl
harbor has been held up for the rea
son that it is believed the lowest bid
der is a dummy for some Japanese
contractors. It is probable that all
bifls will be rejected and that the War
department will conduct the work.
Dr. Hanna to Be Appointed.
Rome—Cardinal Martinelli, cham
berlain of the sacred college, has been
entrusted with the task of presenting
before the congregation of the propa
ganda. which will meet next week, the
matter of the appointment of a coad
jutors archbishop of San Francisco.
Cardinal Martinelli declares that he is
ready to support the nomination of
Rev. Edward J. Hanna of Rochester.
One Term at a Time.
Washington—Senator Gore of Okla
homa introduced a joint resolution
providing that no person shall be eli
gible to be elected president of the
United States for more than two terms
in succession.
Affects American Stock.
London—The Chicago Great West
•ern receivership and rumors of dis
tress to other railroads effectually
kept down fresh business in American
stock transactions and induced pro
fessional realizing, which kept values
under parity in the forenoon.
Lemieux Pleased at Result.
Ottawa, Ontario — Hon. Rodolph
Lemieux said to the Associated Press
that he was perfectly satisfied that
his mission to Japan on behalf of the
Canadian government has been an en
tire success.
CATTLE MEN COME UNDER BAN
Grand Jury Indicts Prominent Men on
Fencing Charge.
Denver. Colo.—Among the indict
ments returned by the federal jury is
one against Ora Haley, a cattleman
who is charged with illegally fencing
10,000 acres of range tand near the
Colorado-Wyomiug boundary. William
H. Hawks and J. I. Rawl were also
indicted on similar charges.
A DISCOURAGING WAIT FOP. UNCLE SAM.
EXTORTIONJS NOT A CRIME
SO DECLARES THE COURT IN THE
MAYOR SCHMITZ CASE.
Held That Schmitz end Ruef Commit
ted No Crime in Taking Money
From French Restaurants.
San Francisco—The district court
of appeals handed down a decision
setting aside the judgment in the case
of former Mayor Eugene E. Schmitz,
convicted of extortion in the French
restaurant cases. Abe Ruef also ben
efits by the ruling of the upper court,
for, according to its decision, he
pleaded guilty to an act that was an
! offense against the laws of the state.
According to the appellate judges,
the compelling of French restaurants
to pay big “fees” to Abe Ruef was
not a cirme, even though Ruef divided
the “fees” with the mayor.
After discussing the point the court
reversed the judgment against Schmitz
on the grounds that no acts constitute
. ing a crime had been proved against
him. Abe Ruef. who pleaded guilty'
to extorting money from the French
restaurants, is therefore equally
guiltless.
The decision wipes out the French
restaurant cases and pending charges
of extortion against Schmitz and Ruef
must be dismissed. Both are now en
; titled to. release on bail. If they ob
; tain the necessary bondsmen they
can remain at liberty until such time
as a jury finds them guilty on one of
the indictments charging them with
I receiving bribes from corporations.
Owing to the number of cases against
' them the bail, figured at 810,000 a
case, would reach an enormous figure.
The decision was written by Justice
| Cooper. The opinion comments on
i Judge Dunne's ruling and says he erred
, in admitting hearsay evidence.
In treating of The second conten
tion of Schmitz’s attorneys that there
was no threat to do unlawful injury
1 the court declares ihat:
"We are clearly of the opinion that
the indictment is insufficient because
it does not allege or showr that the
specific .injury threatened was an un
lawful injury.” It is not an unlawful
r act. reasons the court, to threaten to
■ hold up the licenses of the restaurant
keepers or actually to do so.
"Any one.” reads the decision, “has
the right to go before the board of
police commissioners, if that body will
| hear them, and object to the granting
1 of licenses to sell liquors to a person
who is keeping a place in violation of
the law. He has the right to threaten
to do so. He would not be morally
i justified in obtaining money to induce
j him not to carry out his threat, but
if he did receive money under such
circumstances, he w-ouid not come
J within the provisions of the statute.
It is necessary to crimes to allege that
; the act was unlawful.”
Strong Plea for Canteen.
Bath, N. Y.—Resolutions asking
; congress to restore the canteen have
I been passed by the trustees of the
; Soldiers' Home. Major McConnell
says the re-establishment of. the can
teen is an absolute necessity.
NEBRASKA IN LYNCH ZONE.
State Gets Into Class of Those That
Hang Without Trial.
Omaha—For the first time in a
number of years Iowa and Nebraska
appear in the list of states which have
reported lynching during the year of
1907, the lirt having just been re
ceived in Omaha.
The Nebraska lynching was early in
September when Loris LeRoy Higgins
was hanged at Bancroft. The lynch
ing in Iowa was at Charles City, when
an insane farmer was hanged for
killing his family.
The new state of Oklahoma, a ter
ritory during 1907, enters the list of
states reporting lynchings. Alabama
jumped from five ia 1906 to thirteen in
1907.
FRAMING A CURRENCY RILL
FINANCIAL MEASURE PROPOSED
BY MR. FOWLER.
Banks to Pay Two Per Cent Annual
Tax on All Notes and a Guar
anty Fund Provided.
Washington—The subcommittee of
the house committee on banking and
currency, to which was entrusted the
framing of a bill to increase the elas
ticity of the currency, reached a con
clusion and will report favorably a
bill drawn in the main by Chairman
Fowler of the committee.
The bill provides for the complete
retirement of all present outstanding
national bank bond-secured currency
and authorizes in lieu thereof a cur
rency based upon general assets of
the banks, to be worked out in this
way.
The comptroller of the currency
will designate throughout the coun
try certain currency redemption cit
iesr so that there shall be a redemp
tion city within at least 24 hours
reach of each national bank. The na
tional banks will indicate to the
comptroller of the currency to what
redemption city they wish to be
joined. The comptroller will then se
lect a time and place within each re
demption district for the organization
of that district in the following man
ner:
Each national bank in that district,
regardless of its capital stock, will be
entitled to one vote. Representatives
of the banks will meet at a time and
place designated and elect a board of
managers, to consist of seven mem
bers. *rhe seven will elect a chair
man. who will become a deputy comp
troller of the currency bill and as
sume control of his redemption dis
trict. except that he shall not have
charge of the enforcement of the
criminal statutes.
Each national bank is authorized
to present to the secretary of the
treasury national bank notes and law
ful monies in Ijeu of other national
bank bond-secured outstanding notes.
Then if the bank’s application there
for is endorsed by the board of man
agers of the redemption district to
which it belongs, the bank will re
ceive guaranteed credit notes to the
amount of its capital stock. These
notes will be subject to a tax of 2 per
cent per annum. Each bank will be
required to deposit as a guaranty
fund with the treasurer of the United
States 5 per cent of its average de
posits for the preceding twelve
months and 5 per cent of the credit
notes which it takes out. The rev
enue thus obtained is created to sup
port a national guaranty fund of $a00,
000,000 for the guaranty of both the
deposits and the outstanding bank
: notes of every national bank.
ROCKEFELLER PAYS DAMAGE.
Gives Woman Twenty-Five Thousand
Dollars and Settles Suit.
Cleveland. O.—John B. Rockefeller
has agreed to settle a suit for $25,000
damages brought against him by Mrs.
Martha Condee, a Chicago woman,
who owns the Saunders Hotel build
ing here. Mrs. Condee sued Rocke
feller because the excavation for the
big Rockefeller skyscraper being
erected had undermined the hotel
building.
BAILEY DISAPROVES OF BILL.
Emergency Currency Insufficient and
Security Is Not Satisfactory.
Washington — Senator Bailey of
Texas, a member of the senate com
mittee on finance, does not approve
the Aldrich currency bill. “The $250,
000,000 emergency currency provided
for in that bill.” said Mr. Bailey, “is
wholly inadequate. The amount to
be provided should be more nearly
$1,000,000,000 to meet necessities that
may arise.-'
3IGHCP WOP.TKINGTDN 13 DEAD.
Head of Nebraska Diocese Passes
Awaya in France.
New York—Word has been received
in this city of the death at Mentone,
France, of George Worthington,
bishop of Nebraska, who recently took
charge of all the Episcopal churches
on the continent of Europe, where he
succeeded Bishop Potter, w-ho re
signed. On account of heart trouble
the bishop had been unable to live in
the high altitude of his dioceses for a
long true. His work In Nebraska has
been carried on by the Right Rev. Dr.
Arthur L. Williams, bis coadjutor.
Second Bishop of Nebraska.
The second bishop of Nebraska, Rt.
Rev. George Worthington, D. D. LL.
D., was born in Lennox. Mass., Octo
ber 14, 1840. He graduated in Hobart
college in 18G0 and at the Central
Theological seminary in 1863. He was
admitted to the diaconate in the
Church of the Annunciation in New,
York, June 28, 1863. by Bishop Hora
tio Potter, w-ho advanced him to the
priesthood in the Church of the Trans
figuration January 29, 1864. His
charges were St. Paul’s, Troy, N. Y'.,
as assistant; Christ church, Ballston,
Spa, N. Y.. and St. John’s Detroit,
Mich., he being pastor of the last
named church for seventeen years,
ministering to a devoted and attached
congregation ,and having one of the
largest communicant lists in the
church. While in Detroit he was a
deputy to the general convention,
president of the standing committee,
examining chaplain to the bishop and
a leadei in church activities in both
city and diocese.
When he was called to St. John's
the parish had 436 communicants and
when lie left it had 1,409.
During the vacancy of the Michigan
see. 1878-9, the clergy of the diocese
elected Dr. Worthington bishop, but
he declined. Notwithstanding this de
clination they elected him twice after
ward.
In 1883 the house of bishops appoint
ed bin: bishop of China, which he de
clined also. In 1884 Nebraska elected
him bishop of this diocese and he de
clined, withdrawing his name by tele
gram from the convention. The con
vention then elected the Rev. E. N.
Potter, who also declined. In Novem
ber, 1884. a second special was called
and a second time Dr. Worthington
was elected bishop. This time he ac
cepted and Was consecrated in his
parish church on St. Matthias’ day,
February 24, 1885. by Bishops Coxe,
Hare. Gilespie, McLaren. Perry, Sey
mour, Harris and H. C. Potter.
LIABILITY ACT HELD VOID.
Supreme Court Rules Out Law Intend
ed to Protect Trainmen.
Washington—That the congressional
act known as the •'Employers’ Liabil
ity Law,’’ is not in accordance with
the constitution of the United States,
because it goes beyond the bounds
permitted in the regulation of inter
state commerce, was the conclusion
reached by the supreme court of the
United States in deciding two damage
cases coming to the court from the
federal courts of Kentucky and Ten
j nessee. which were brought under the
! provisions of the law.
--
NEW MEXICO ASKS STATEHOOD.
Delegation to Visit Washington in Its
Behalf at Early Date.
Washington—A petition for support
of the bill for the admission of New
Mexico to separate statehood was re
ceived in a letter from Chairman W.
S. Hoi>ewell of the New Mexico state
hood league to Representative Fuller
of Illinois, and referred to the com
mittee on the territories.
Special Session for Kansas.
Topeka, Kas.—Governor Hoch has
announced that he would call an extra
session of the legislature January is.
to consider the enactment of primary
electioa and rate regulation measures.
FOUNDATION FOR INQUIRY.
Maryland Man Wants to Know
About Brownson Incident.
Washington—Representative Gill of
Maryland offered a resolution de
signed to open the way for a congres
sional airing -of the Admiral Brown
son incident. The resolution, which
was referred to the committee on
naval affairs, reads:
The secretary of the navy be, and
he is hereby requested, if not incom
patible with public interests, to fur
nish the house of representatives for
its information copies of all letters,
reports, orders and so forth, in the
Navy department in connection with
the appointment of Surgeon Charles
F. Stokes as commander of the United
States hospital shop Relief and also
all letters, reports, orders, and so forth
filed in the Navy department in con
nection with the resignation of Rear
Admiral Brownson as chief of the
bureau, of navigation.
To Protect Harbor Defense.
Washington—The senate passed a
bill to protect the harbor defenses and
ft rtifieaiions of the United States
from malicious injury.
HIS GUARANTEE BILL
INTRODUCED IN THE HOUSE BY
CONGRESSMAN HINHAW.
PROVISIONS OF THE MEASURE
There is a Ta* of One-Twentieth of
One Per Cent on Deposits Until
Ten Millions Are Raised.
Washington—After much study of
financial matters Congressman H n
sliaw has completed his 'oil! for guaran
teeing deposits in national banks and
introduced it in the house. It provides
that the banks shall pay to the treas
ury an annua! tax equal to one-twen
tieth of 1 per cent of the deposits, and
that this tax shall be suspended when
ever the money raised exceeds $10.000,
000. Whenever a national bank fails,
the treasury department, is to take
over its affairs, paying the depositors
in full and turning all the assets of
the bank into the treasury fund. The
bill also limits the deposits that na
tional banks shall receive to ten times
the capital stock and surplus com
bined.
In speaking of the bill Mr. Hinshaw
said:
“There were in the 6,025 national
banks of the country in 1900 $4,055,
000,000 deposits and in 1897 $1,770,
000,000, and for the ten years from
1897 to 1906, inclusive, the average was
a little less than $3,000,000,000. A tax
of one-twentieth of 1 per cent upon the
deposits of 1906 would produce $2,000,
000 per annum. The losses from nae
tional bank failures amount to $1,000,
000 a year. The tax of one-twentieth
of 1 per cent upon a bank having de
posits of $200,000 would amount to
$100 in suc'i years as the tax is levied;
upon a bank with $500,000 deposits
$250, upon $1,000,000 de[ff>sits $500;
sums which, to the ordinary banker,
would be insignificent when compared
to the perfect security both to deposi
tors and banker. A law of this kind
would, in my judgment, effectually
prevent panics and the recurrence of
the lack of confidence which was prob
ably the cause of the late financial
disturbance.
“This would in no way interfere
with the action which the several
states would probably take likewise to
insure the depositors of state banks as
Oklahoma has already done. Postal
savings banks would be a step in the
right direction, but it seems to me that
the method here proposed would be ef
fective of full and absolute security.
“Suggestions would be gladly re
ceived upon the details of this
measure. This question is now re
ceiving much consideration from var
ious members of congress, but it is dif
ficult yet to say whether any legisla
tion can be accomplished.”
Endorse Bryan.
Outhrie. OUla. — The democratic
state central committee here unani
mously endorsed W. J. Bryan's candi
dacy for the presidency and decided
to hold the state convention on Febru
ary 22 at Muskogee.
THAW'S SECOND TRIAL BEGINS.
Plea of Insanity at Time of Crime
Entered by His Attorneys.
New York—One hundred talesmen
are under orders to report on each of
the three first days of the s<*?ond trial
of Harry Thaw, which began Monday.
Thaw was called to the bar at 11:27
o'clock. His appearance showed little
or no change from last year. As soon
as Thaw appeared, his chief counsel.
Martin \Y. Littleton, announced that
the former plea of not guilty entered
by his client would be amended to
read: "That the defendant was insane
at the time the deed was committed.”
WILLIAMSON CASE REVERSED.
United States Supreme Court Decides
in His Fsvor.
Washington—The ease of former
Congressman J. N. Williamson of Ore
gon, charged with unlawfully cutting /
timber on the public lands in Crook
county. Oregon, in conspiracy with
100 others, was decided by the su
preme court of the United States in
favor of Williamson. The United
States circuit court for Oregon impos
ed a fine of $500 and sentenced Wil
liamson to prison for ten months, but
the supreme court reversed that de
cision and remanded it for a new
trial.
French Prince Sues Count.
Paris—In fulfillment of his intention,
announced on Friday, Prince Helie de
Sagan has filed suit on the ground of
assault against Count Boni de Castel
lane iu the criminal court, asking one
franc damages. The action will be
taken up before the court on January
21.
Senator Allison Ml.
Washington—Senator William B.
Allison of Iowa is ill of grip at bis
home in this city. NThe senator’s con
dition gives no cause for alarm.
