The Omaha . Daily Bee.
ESTABLISHED JUNE 19, 1871.
OMAHA, WEDNESDAY MOIIN1NO, DECEMBEll 2, 19(13 TEN PAOES.
SINGLE COPY THUEE CENTS.
DOWIE A BANKRUPT
Federal Court Placet Receivers '.
the City of Zion.
' of
HIS APPEALS FOR MONEY ARE V. .
Latter Day "Elijah" frill to Secure Oath
from Bit Followers.
STATEMENT STARTED RUN ON THE BANK
Beiidents of Community Seek to Sari
Money on Deposit
OFFICERS HAVE LIVELY TIME AT ZION
Mem at Bank Offer I Destroy Papers
jlmA At Threatened with Arrest
and Placed Ladee
Ciaard
CHICAGO. Deo. L Financial difficulties,
rhlch began during tha crusada of John
aUexander Dowle, the aelf-etyled "Elijah,"
and hie restoration host to New York a
month ago. and which bava beeen rapidly
increasing sines Dowle's return, culminated
tonight in tha federal court taking posses
sion of all tka property controlled by Dowle
In Zion City. This town, which waa founded
two years ago by Dowle, haa a population
of over 10,000, la the general headquarters
fpr Dowle's church and la said to represent
an expenditure of $20,000,000.
Fred M. Blount, oaahler of tha Chicago
National bank, and Albert D. Oyer, a law
partner f Congressman Boutell. wars ap
pointed receivers of tha property. Their
bonds were fixed at $100,000 by Judge Kohl
sat t of tha United Btaua district court,
who made the appointment on petition of
several creditors, Tho receive left for
Zion City tonight to taka possession cf tha
property.
Tha bankruptcy proceedings wera made on
the allegation that he waa Insolvent and
when in this financial condition ha com
mitted an act of bankruptcy by making a
preferential payment, on November J, to
tha E. Btreeter Lumbar company for $$,770.
Dowle baa been hard pressed by his credi
tors and especially since It was announced
that hla recent mission to New York had
proved unsuccessful financially.
Ties I'B) Hack Money.
Dowle la known to have accumulated a
larga sum as tha head of tha Christian
Catholic church, tha assets of the organi
sation being estimated at between $20,000,000
and $30,000,000. There waa a largo outlay of
money, however, when Zion City waa
started, and aa both of tho ventures have
not been a paying Investment, a great deal
mora money waa tied up.
Dowle's differences with his brother-ln
law. Stephana, over tha management of tha
laoo factory, cost mora than $100,000, and
other suita recently begun In Lake county
by creditors are said to aggregate a largo
sum.
Attorney Ettelson. representing tha peti
tioning creditors. In hla argument before
Judge Kohlsaat aaldi
TTaa rriltnra whom I represent have
Son to believe that Dr. Dowle Is Insolvent,
luifirmenta have been accumulating against
fclm for several weeks past and there waa
every indication that the overseer of Zion
un,tiim xnnlri not rwi v his debts. In
suck a crisis the creditors Bought protection
for their intereata in tho bankruptcy court,
i I. tmnnanthle to estimate the liabilities
or assets of Dowle. Zion' a affairs are com
plicated and it will take several weeks. I
believe, before any idea of Doirle'a finances
can be had.
Judge Kohlsaat at first refused to ap
point a receiver for tho property on tho
ground that Dowle should have notice of
ao important a proceeding. After listening
to afurther account of Dowle's affairs
from Mr. Ettelson, Judge Kohlsaat de
cided it would bo well to have tho re
ceivers appointed before tha property at
.Ion 1ty oould bo divided. Ho therefore
entered tha order appointing Messrs.
Blount and Cryer,
Dowle Coa f esses Weakness.
I-ant Wednesday Dowle's Brat confes
sion of weakness was made at a rally
in tho tabernacle at Zion City.
"A lot of you people have cash In your'
pockets," Dowle said to his followers. "Dig
down and get I tout. It la Ood'a and wa
noed It in hla business. Deposit It" Dowle
talked In tha same strain tor mora than
an hour, tears glistening on hla cheeks aa
II. 1 1 , 1 u, MIO UIMUUI. .VIWU III WIIH. U
the Zion Industries found themselves. In
stead of frightening many Into depositing,
this appeal sent a long line of people to
tha bank on Friday, when they lined up
at the paying teller's window, di-awlng
out their money.
Less than $3,000 waa deposited In tha
bank on Friday, whllevthe amount with
drawn waa twlre aa much. Late In the
aflornoon. A. W. Graham of Waukegan,
tried to withdraw hla account of $300 and
told ha would have to give thirty days
notice before ha could get his money. Yes
terday, another appeal waa made by
Dowle for funds, but tha depositors who
appeared were few and deposits were
chiefly In trivial amounts.
Today Dowle asked the members ofZion
mora urgently than ever for money. He
declared that ho must have $500,000 with
out delay. Thta lutn, ha said, ha waa wtl
ling to take in short loans, but that they
must bo forthcoming- Immediately.
Appeals for Aid laeleea.
In the efforts to remedy tho condition
Of affairs at Zion City, hundreds of letters
were sent out daily to Dowie'o followers
In other parts of tho country, in these
letters, lit which glowing prospects of
Zion City's future were painted, and in
which Dowle himself Is quoted as praying
that ail those who believe In him "follow
. the Lord. All Dowltles are urged, al
moat commanded, to sell their farms, stores
and everything cIh and come at once to
Zion t'lty. and take up the work of the
church. All of those who have money In
mm.r wuere tnty now live wera
asked to draw that money out of the local
banks and send , It for deposit at Zion
City.
It is declared to be a fact that the cm
pluyea of the manufacturing industries have
not ben paid in from four to six weeks
What llit'o they have rerelved Is said to
have been puld entirely in the Zlun City
coupon books. Early lit tbe week before
last Dowlo made a personal trip through
tha various shop. It had beeu customary
at ion t ity to start each day's work in
tha shops with fifteen minutes devoted to
prayer service. On tha day in question, it
la said, that Dowle went to earn of the
shops and talked fr mora than two hours
to tha employe Hd told hla followers
'that they must either wait for their sal
aries or must endure a substantial cut In
wages. Thle was agreed to.
In one shop a iiou-n.ember of Dowle's
noc umi uw wny no was going to
Australia ir nls nuances were o bad.
"Perhaps I may not be able to go at all,'
tCoatUue4 oa gweoud Page
RUSSIA PUTS UP MORE BARS
Declines Looser to Permit Americas
Jews to Cross Ru salsa Frostier
C'oasal's Alselng.
, BERLIN, Dee. 1. Amerlcal Jews are no
'jger permitted to cross tha Russian fron
f r without a special permit In each case
f. von Fleiiwe, tne kubswh interior
. fSy Moat Americans travel to Russia
by "Germany. The practloe until the
last . . eeka was for the Russian consul
genera, nere to vine the Jews' passports
upon receiving a atatemcnt of their purpose
to visit Russia and that their stay there
waa to be temporary.
A reputable Jew of San Francisco, bear
ing1 a letter from the State department at
Washington, waa assured at the Russian
consulate general here that he could not
be admitted to Russia now without a spe
cial order from Minister von Tlehwe. The
Russian embassy made tha same statement.
An order waa ohtalned ultimately from M.
von Plcbwe, through the American embassy
at fit. Petersburg. This new restriction is
an extension of the policy initiated by the
recent withdrawal of the vise powers from
the Russian consulates In America.
AMBASSADOR GETS A SPILL
Meyer at Rome la Thrown While
Banting- la a Rata
Storm.
NEW YORK, Dec L While out hunting
with a' large party, in a heavy rainstorm.
on the outskirts of tho city, says a Rome
dispatch to tha Herald, the American am
bassador, George von Lengarke Meyer,
waa thrown to the ground ao violently as
to be made unconscious. On reviving ha
Injuries are of a slight nature.
ROME, Dec. 1. Although Ambassador
fox hunting in the outskirts of Rome, hla
Meyer la confined to his bed aa a result
of the fall from his horse yesterday while
complained of severe Internal pains, but
the doctors discovered only bruises, and
his condition is not considered to be serious.
PRINCESS ALJCE IS TO SUE
Avers that Stories of Elopement with
Coactamaa Were Fabricated
by Prtaco Frederick,
RERUN, Deo. 1. The divorce proceed
ings of Princess Alice of Bchoenburg-Wal-
denburg agalnat her husband. Prince Fred
ertck. began at Dresden yesterday. Tho
prlnceaa returned from Sorl, near Genoa, la
an aggressive state of mlhd. Bhe openly
declared the prince waa responsible for the
shameful charges mudi against her and
said her husband waa seeking revengo be
cause she refused to continue paying his
debts. The princess also threatens to be
gin proceeding for calimuiy, averring that
the newspaper stories of her alleged elope
ment with a coachman aro traceable di
rectly to Prince Frederick.
KAISER SENDS A LITTLE NOTE
la Lira of Opportunity to 8 peak with
Roosevelt Ho Writes la
formal ly.
BERLIN, Deo. 1. Emperor William has
sent President Roosevelt an autograph
message, try Baron -von Sternberg-, the Gf-'
man ambassador to the United States, who 1
sails for tho United States today on the
Kaiser Wllhelm II. The emperor, while
'.ecelvlng Baron von Sternberg in audience
Sunday, remarked that ha wished ho could
say a number of things to the president.
He then took an ordinary pad of paper and
filled tha right-hand half. In German chan
cellary fashion, with a message, ending
with his signature, "Wllhelm," in large let
ters.
WAITING AT PRISON'S DOORS
Amerieaa Officer Will Greet London
Coavlot aa He Emerges to
Snppoaed Freedom,
LONDON, Deo. L Charles Allen, an
American criminal, terminates several
years' imprisonment at Dartmoor Decem-
Der a. as soon as no warns out or prison
he will be rearrested on an extradition
warrant charging him with a daring post
offlca robbery at Springfield. 111., in 1896.
Later In that year Allen and Kllloran broke
out of Ludlow street Jail, New York, and
escaped to England. It was' only after
Allen had been convicted hero of robbing
the Btrkbeck bank that hla Identity waa
discovered. Allen is quite ignorant of tha
reception which awalta him tha moment he
regalna hla freedom.
TO KILL THE MARQUIS IT0
Japanese Medleal stadeat Foand to
Have Deadly Dnaaer Con
cealed en His Person.
YOKOHAMA, Dee. 1. A Japanese medical
student was arrested today on auapiclon
of an attempt to aasassinata tha Marquis
Ito. He carried a dagger concealed under
hla klmona when arrested at tha marquis'
villa at Mlaox. i
It is believed thla attempt on tha states
man's Ufa was the outcome of recent sug
gestions In the sensational newspapers of
Japan that a mlniaterlal assassination
would be a patriotic action, tending to
produce a more warlike policy on tha part
ot tha government.
APPLE RECORD FOR NEW YORK
Largest Sklpmeat Ever Made
Aaont tet Arrive at
Bremra. .
la
BERLIN. Dec. 1. The largest shipment
of applea which ever left New York la due.
to arrive at Bremen tomorrow on the North
German Uoyd steamer Main, which aailrd
from New York November 19. It consists
of barrels and l.i40 boxes
IS THE W0RLTJS BEST BEER
American Prodaet Awnrded Prise in
Competition with F.very Brew
ef Kvery lasa.
rilAGl'K. Bohemia. Ioc. 1. The Imperial
sclentillo station investigating the different
kinds of beer ot the world has awarded the
highest honor for superiority to an Ameri
can product.
OFFICIALS RIDE0VER THEM
bail ef Section Men Aro Ran lata
by Special Trala oa
Hradlaa.
MAHANOY CITY, Pa., Dec. l.-An en
gine drawing a private car containing offi
cials of the Philadelphia A Reading rail
may clashed Into a gang of workmen at
Gllbt-rlon, near hero, today, tnrtanlly kill-
ilng Jo nn r.uDrn-ai anu laiaity injuring
Jobs Dyada and Michael bama,
BELL GIVEN BLOODY FINGER j
Eeceirei it with Threat that Ears Are Boon
to Folio
HEAD THE NEXT TO BE SENT HIM
Note Is Considered a Hoax to Secnre
Withdrawal of Troops from
Tellorlde Federation oa
Defensive.
DENVER, Dec. 1. Adjutant General
Sherman M. Bell today received from Tel
lurlde the following, wrapped around a
human Anger:
General Bell We send you the finger of
a man who dlsn ppeared from Telluride
some time ago. Mis ears will follow and
men nis nenrt. u run rrtenos want to s-e
him attain In any other way but the way
we send him you have got to do one thin.
We only want you to withdraw the troops
from Tellurlde at once. If you don't you
will receive his ears In a few days. Don't
try to find us for It Is not In the power
of a tin soldier to do It. Signed,
t;. a. i).
A physician who examined the finger
pronounced It tha ring finger of the right
hand and said It was evidently cut oft
shortly before the letter waa mailed, as
the blood atains on the letter bora evi
dence of being fresh and the blood on the
finger waa hardly dry yet. After con
ferring with Governor Peabody, General
Bell turned the letter over to the postofflca
Inspectors, who will endeavor to trace its
author. It is generally believed at the
capltol that the matter was intended aa a
hoax.
Federation Saya Stand Pat.
The executive board of tho Western Fed
eration of Miners, In session In this city,
today aent the following telegram to Guy
E. Miller, president of tho Tellurlde Miners'
union:
Advise all men who were ordered to
leave town aa result of alleged vagrancy
to remain in Tellurlde. The Justices of the
peace nor any other official of the county
or state cannot compel persons to leave any
place where they choose to live. The con.
stltutlon of the United States concerning
civil rights makes It unlawful for officers
to deny these rights. Howe, Kutan and
others are subject to punishment In United
States courts: the law will be duly Invoked.
You are assured of the hearty support of
tne western .federation ot Miners.
The board's action is the result of the
arrest by the sheriff at Tellurlde of twenty-
eight Idle men.
More Colorado Militia.
PUEBLO, Colo., Dec 1. A new rollltla
company to be designated as company G.
Second regiment, Colorado National
Guard, has been organised and equipped
hero and will it Is stated, be aent to the
southern coal camps tonight.
Special Session In Utah.
SALT LAKE CITY, Dec. 1. Following
further fruitless efforts to bring about a
settlement of the Utah coal miners' strike
today Governor Wells said that probably
he would call a special session of the legis
lature to provide funds for keeping the
state militia in the field. A protracted con
ference waa Leld at the governor's office
today between V.'ce President Kramer and
Manager Williams ot tho Utah Fuel com
pany. Colonel Holmes of tho Salt Lake
Commercial club. Adjutant General Bur-
ton and others In an attemnt to agree on a
? , r-- " - ,
I basis of Feltlement, but nothing resulted.
The settlement of tho strike hinges on
the recognition of the union," said Gov-'
ernor Wells later. "This the coal oflYlals
positively refused. The difference over
wages, it Is apparent, can bo easily ad
Justed. The state troops will be kept in
the field and I shall In all probability call
a special session of tha legislature shortly
to provide tha necessary funds." f
Kaasas Strike Settled.
KANSAS CITY, Dec. I. The strike of $00
employes at the p'ant of the United Zinc
and Chemical company, near Argentine,
Kan., a suburb, was settled today on a
compromise. The men went out two
weeka ago agalnat a propoaed reduction in
wages.
PEABODY SHOWS THE LETTERS
Colorado Goveraor Submits Miners'
Secretary's Notes, So Alarm
ins; to Bell.
DENVER, Deo. 1. Governor Peabody to
day made publlo the letters written by
William Haywood, secretary of the West
em Federation of Miners, last month, to
O. M. Carpenter of Tellurlde, and which
Adjutant General Sherman M. Bell recently
stamped as "Incendiary and Incrlmlna
ting." Extracts from the letters, whlctf
Governor Peabody says contain "nothing
to make any fuss about," follow:
"I see that the Citisens' alliance In Tellu
rlde la doing everything that they possibly
can to urge the governor to aend troops to
that locality. It is alleged that he appealed
to President Roosevelt for regulars, but
has been turned down. I hope that thla
is ao, because if ho must have troops at
all, it would be much better to have the
tin soldiers. They aro not used to hard
campaigns and It will have an equal re
sult In disrupting the state militia.
"Anyone prominent in the troubles of 1901
had better leave Xown, for the Cltixena'
alliance, backed by the executive, will
carry things with a high hand."
Interest to the coal strike haa shifted to
tho southern field. It is believed that John
Mitchell, who will be In Trinidad tomorrow
to confer with the district union officials,
will renew the attempt to secure a personal
conferenoe with the managers of the Colo
rado Fuel and Iron company and Victor Fuel
ccmpany. These companies have repeat
edly refused to meet any representatives
of the union. The price of northern coal
In Denver has been raised from 14.2S to
$j a ton. Tha mine owners explain that
the advance is made necessary by conced
ing an eight-hour day.
FOR THE FAIR TRIAL BILL
Montana's Lrglslatoro Convenes to
Hatch It and Restore Peace at
the Mlaes.
HELENA. MonL, Dec. l.-The legislative
assembly met In spoclal session today tn
consider a hill which will give the supreme
court authority to review facts In cases of
equity and change of judgeship. Thia bill
Is the outcome of the recent copper troubles
In Montana which resulted In the closing
of all the Amalgamatea,Coper company's
mines, which threw 20,001 men out of em
ployment and resumed only on promise that
Governor Toole would call a special session
of tbe leg'jiluture to pass a law known as
the "Fair trial bill."
In accordance with Governor Toole's call,
the legislature met with practically a full
attendance. Thla is tha tnlrd meeting of
the Imixlature this year, the first being tha
regular session, and the second being a
special meeting, to appropriate money for
Montana's representation at tha St. Louis
ex position.
weston increases his bondIbiG PRICE FOR ALDERMEN
State Auditor Una to Have
Ills
Sorrtiee Swell Ills Rail
to PTR.ODO.
CASPER, Wyo Dec. l.-Deputy Sheriff
Miller hHS arrived here from Douglas with
Charles Weston, slate nuilltnr of Nebraska,
who Is one of the official ot the defunct
private bank which failed hero Friday.
Weston had been released on bond, but it
was not considered sufficient, so he was re
arrested. He gnve fficlent bonds at once,
his bondsmen qualifylug for $75,000. Mr.
Weston and hi associates are charged with
receiving deposits when they knew the
ba'nk was Insolvent N. 8. Bristol, one of
the banking firm, has agreed to take up his
notes In the bunk with cash.
It Is learned that the stockholders have
borrowed enough money to make good all
shortages. This money will be placed in
the bank immediately and desposltors paid
as fast as they apply. The bank will not be
reorganized, but local capitalists have or
ganised a company to open a national bank
here.
'Every depositor will be paid In full In a
very short time," sold State Auditor Wes
ton of Nebraska today. "I am not going to
leave Casper until these bank affairs are
satisfactorily straightened out to tho satis
faction of all concerned,"
Mr. Weston has received numerous tele
grams from friends In Nebraska, who prof
fered assistance In a financial way, as well
as from lawyers in a icgul way. Four war
rants have been served on Mr. Weaton, and
he is under bonds of $100,000, but many of
tho wealthiest men in town are on hla bond.
Denecke and Bristol, the other partners of
the bank, have turned over $30,000 worth of
land and stock, and $15,000 from Weston
with the money In the bank will pay de
positors in full. If the depositors are paid
in full criminal charges will be dismissed.
SEQUEL- TO . GRACIE FUNERAL
Three Members of Police Force Are
Tried for Hot Better Protect
In Roosevelt.
s
NEW YORK, Dec. L Captain John W.
Cottrell, three detective sergeanta and two
patrolmen of the city police force were
placed on trial today charged with failure
of duty In not preventing- Arthur B. Dem
Ing, believed to be demented, from obtain
ing accesa to President Roosevelt when
the latter was bare last week to attend the
Grade funeral. Captain Cottrell was in
charge of the police arrangements at the
church, while the others were specially as
signed to see that no unauthorized person
entered the church during the "Services.
Demlng was today released on a bond of
$500 In the custody of friends who said they
were willing and anxious to care for him.
Police Inspector Brooks at the trial, which
was hold before a deputy police commia
sloner, said that after the president had
been handed the letter by Demlng and had
left the church and was about to enter
the carriage Mr. Roosevelt had turned to
Police Commissioner Greene and asked
"How is It possible for any one to hand
me an envelope T"
So saying, witness said, the president
handed tha envelope to Commissioner
Greene, who, in turn, addressed the same
question to the witness, at tho earns time
handing the letter to, Mr. Loeb. Inspector
Brooks, said Vhat 4 ft V Roosevelt -pointed
out Demlng as the man who handed the
envelope to the president and Demlng waa
thereupon arrested.
Inspector Brooks declared that neither
the appearance of Demlng, - nor the fact
that he carried a hand satchel, would have
excited hla suspicion in tho least.
GETS THOUSANDS IN REBATES
Investigating Attorney So Relates of
Former President of Porter
Brothers Company.
CHICAGO, Dec. 1. Investigation of the
affairs of the Porter Brothers company
was continued today by Attorney Albert
Bach, who spent much time examining
the company s accounts wun me Fruit
Growers' express company.
The attorney says he secured Information
which will throw further light on the busl
ness methoda of former President Watson.
Mr. Watson will not be examined until
early in January. According to Attorney
Bach transcripts of the express oompany'a
ledger indicate that Mr. Watson, in six
years, received about $700,000 of rebates on
refrigeration charges. How much addi
tional he may have received from various
railroad companies. Attorney Bach, repre
senting eastern creditors, hopes to learn
from the railroads.
The next examination In the case ywlll
be held Thursday afternoon when J. Ogden
Armour, owner of tha Fruit Growers' ex
presa company, Is expected to testify be
fore Bankruptcy Referee Wean.
JOHN W. GATES' PARTY SAFE
Prlvata Yacht Rearbea Houatoa After
Tedlona and Somewhat Tfm.
pestaess Joorney.
HOUSTON, Tex., Dec. l.-John W. Gates'
private yacht Roxana, which left New Or
leans Tuesday, November 21, for Port
Arthur, Tex., and was reported aa long
overdue, reached its destination In safety
last night. The yacht was not built for
rough seas and was frequently forced to
seek refuge - In small harbors along tho
coast Tha Journey was otherwise without
incident.
In Chicago fears wera entertained for the
aafety of the yacht. It loft New Orleans
last Tuesday in command of Captal
Young of New York for Port Arthur. Mr.
Gates and hla party, consisting of his
wife, his son, Charles O. Gates, and Mrs.
C. 1L Gurney of New York, and two maids,
arrived with the yacht from Chicago on
November 19. They left for Port Arthur in
Mr. Galea' private car. Intending to Join the
vessel there. Only tha crew was aboard
It la feared the yacht foundered tn recent
galea and that all wera lost.
PENROSE WOULD HAVE PAPERS
Senate from Pennsylvania Introduces
' Resolatloa Calllne; for Postal
Investigation Itoenments.
WASHINGTON, Dec. 1. Senator Pen
rose, chairman of the committee on poet
offices and post road, today introduced
resolution authorizing that commutes to
request the postmaster general to send to
tho committee' all the papers connected
with the recent investigation of tha Post
office department, and, if necessary, the
committee is to make further investigation
and report to the senate. Tha resolution,
without action, was referred to tha com
mittee on contingent expenses oi tho sen
ate.
Tha president today aent to tha aenate
the following nominations:
To be secretary of Hawaii, A. L.
Alihiiutoii of Hawaii.
To be receiver ot public moneys, John P,
Dickinson of Color ado, at Hugo,
Palibury Tells of How the Grand Rapids
Boodle Fnnd Was Distributed,
SIX THOUSAND FOR AN "HONEST" MAN
When Case Herame Desperate a Plain
One Was t.lven Same Amount
Backbone Needed to Be ,
Stiffened I p.
GRAND RAPIDS Mich., Dec. 1. With
the entire city stirred by the revelations
of ex-City Attorney Lant K. Salsbury in
his testimony at the bribery hearing of
State Senator Burns yesterday, the
examination of another of the men arrested
as the result of Salsbury'e confessions to
the prosecutor. Alderman DePagter waa
begun today. DePagter Is charged with
avlng received a IOO bribe from Salsbury
to support the Lake Michigan water deal
In the council.
Salsbury waa the first witness. He testi
fied that he gave DePagter $3M at about
the same time that he did the others he
bribed, the currency being delivered in an
nvelope in Saisbury'a office in the city
hall. This was not done, ao Salsbury eald.
ntll after he had had several talks with
DePagter and had satisfied himself that
he would stand by the deal.
I told him that he could have $1,000
ultimately," paid Salsbury. "and I ex
plained how I wanted him to support our
proposition. He agreed and later we
entered Into an agreement by whleh he was
to receive from $3,000 to 13,000 In water
bonds."
Silsbury said that he made DePagter a
heavier offer than waa nt first contem
plated, because things had come to such a
pans In the common council that tn order
to stand by tho deal a man had to have a
little more courage, and he wnnted" DePag
ter to stiffen up Salsbury said, on cross
examination, that he never broached the
aubject of money until after he made sure
DePagter waa favorable to tho water deal.
"If you found that he waa favorable to
your plan why did you think it necessary
to offer him money' at all?" he was usked.
"Because I wanted to be sure of him.
could not afford to take chances," Sals
bury replied.
Crons-Examlnatlon Is Severe.
Salsbury was given a severe examination
by Attorney Smedley, who tried to pin him
down on details, in regard to some of which
Salsbury was In doubt. He could not tell
the date upon which he paid DePagter nor
could he tell certainly whether he promised
DePugter $3.0U0 or $3,000 worth of bonds.
He said that sjme of the aldermen wera
promised the Trst amount and some the
latter. All of the aldermen were paid sep
arately except in the case ot ex-Alderman
Kinney, Salsbury testified, and he thought
Corey P. Bissell waa present when that
payment was made, although he was not
sure.
' Then Attorney Smedley took up Sals
bury s confessing as he did, and the man
ner of It He made Salsbury acknowledge
that he had told the story, not only before
the prosecutor, but also before Judge New-
ham, who will be the trial Judge unless a
change of venue is obtained.
Prosecutor Ward asked Salsbury whether
he hsrl.tha Intention of -taUUig .tba story
while he was In Detroit in prison, which
the latter denied. In answer to a question
he said he hoped to be treated leniently.
DePugter's case was then adjourned until
next Monday to give him time to' prepare
his defense.
Ex-Alderman Takes the Stand.'
ExAlderman Mulr'a examination waa then
begun. Salsbury swore that It was at first
understood that Mulr, who was known as
Honest John." was to receive $1,000 In cash
and later it was agreed he was to have
$5,000 in bonds. Mulr had already taken a
stand favorable to the Bailey Springs plan
and it would be bard to get him to switch
and explain his action," said Salsbury.
"We gave him the larger Inducement be
cause of his position. Mulr never took any
positive action In favor of the Lake Mich
igan deal until after ha waa promised the
$5,000 in bonds. We had plenty of money
in sight to reward our friends and if the
Lake Michigan deal had gone three days
longer we would all have been millionaires,
Court reconvened at t o'clock this after
noon with ten of the water scandal cases
still pending. Those not yet disposed of
were the cases of Aldermen Ellen, Dono
van, Johnson, Blocum, McLaughlin, Stone-
house, Bezler, Mol, Kinney, and Correy H.
Bissell, former member of the board of
works. Most of them were present or rep
resented by attorneys.
Another Alderman oa Examination.
The first case called this afternoon was
that of Alderman Jacob Ellen, of the first
ward. The respondent was represented by
Myron IL Walker, and the latter showed
disposition to make a vigorous fight.
He had been taking copious notes through
all of tho other examinations. -
Salsbury was brought to tha stand at
once, and he told of a talk he had with
Ellen. When the alderman was Informed
of the water plan, ho said the alderman
agreed to do what he could In the way of
assistance. Witness said he talked very
freely with Ellen and not only agreed to
psy him $l,0iio cash, but also to let him In
on the bonds. Attorney Walker objected
frequently to witness giving hearsay evi
dence or offering his conclusions and hold
him down very closely.
Witness said he paid Ellen $350 cash.
After the grand Jury was called Salsbury
said Ellen talked with witness and said
he would go before the grand jury and
deny receiving any money and also deny
having voted for Salsbury tor city attor
ne. Witness advised all aldermen to re
fuse to tell the grand jury how they voted
for city attorney, as it might let the people
learn how the vote stood and thereby en
able them to ascertain the guilty parties
in the water deal. The examination will
bo continued tomorrow.
BUTLER EPIDEMIC IS WORSE
One Dah, and Five hew Cases Re
portedRailroads Transport
Aid Free.
BUTLER, Pa.. Dec. 1. The lyphold fever
epldemln shows no signs of abatement
One death and five new cases were reported
today. Thirty-four nurses arrived from
Pittsburg, Philadelphia, Cleveland and
other cities and have been assigned to
places of duty. The offer of the Pennsyl
vania and Baltimore A Ohio railroad com
panies to transport doctors, nurses and
domestlo help to Butler free has been ac
cepted by Mayor Kennery.
More Work at Yonacstowa.
YOUNGTOWN. O., Dec. 1 Stacks num
bers one and three at the Ohio works of
the Carnegie company were put In operation
laat iiiaht. after being banked a month to
rvduue the output of pig Iron, as per agree
ment between tne innepenat-nt ana ih
a) ion operators. About 3M employes
returned to won. it is emiectea that
oiieratlons will toe resumed within a few
days at No. I stack slid that No. $ will
follow as soon aa completed.
NEBRASKA WEATHER FORECAST
Fair Wednesday, Warmer in Southern
Portion t Thnrsday Kale and (elder
In Northwest Portion.
Temperature at Omaha teste. 'day t
Hour,
lira.
. ao
. 10
. 1
. IR
. IT
Hour.
1 p. m.
il p. m.
a n. m .
4 p. m.
K p. in ,
H p. m,
, T P. m.
K s. si,
p. m.
rs.
It n. m . . , .
M a. tn . . . .
T a. m . , ,
H n. m. . . .
a. m. . . .
an
3T
xm
10 n.
11 a.
1:1 tn
in
at .
ita
stn
24
RELIEF FUND IS ENLARGED
Donations for Aid of Families otljehn L. Webster Appears in Behalf of
Dead Firemen Steadily
Increase.
Several substantial additions were made
yesterday lo the fund for relief of the fam
ilies of the four firemen killed In the Allen
Brothers fire. The fund was Increased
fc'SL'.lX) by this single day'a contributions.
Henry Y. Yates, president of tho Nebraska
National bank, heads the list ot later don
ors with $S0 and the First Methodist church
cornea second with $42 and all the other
gifts are liberal. Mayor Moores has caused
to be placed at different locations in the
city, large tin boxes where donations to
this fund may be deposited. A sign indl-
eating the purpose of the box appears over I
each one. It is believed by this method the I
fund will be materially swelled. The list I
now Is: I
Amount previously reported $1,844 T0 I
ICTm:;i lV.7i?.i- w'w
K. I'omlile Smith, minister .0U
"A Friend" by K. Comblo Smith,
minister
Peter Peterson, 811 North lth street
Omaha Typographical union
V. I,, rhui'ovitch
j?
20.00
.oo
Tom Dennlson
JaLaO
Hilly Nestlehouse
Employes city clerk's office
10.00
National Alliance of Bill Posters
6
by J. Klein, secretary
Volunteer Firemen of lllldrcth. Neb.,
by N. P. Johnson, chiet
McVea & Smith
Children of Temple Israel Sabbath
school hy KHbhl Simon
B.00
2.00
5.00
6.00
Market Master Gerke
Inspector of Weights Mahammltt.,..
City Prosecutor liee
t'harlen L. Saunders
6.00
John R. Manchester
R.O0
M. M. Hamlin
KilKar M. Ba lgerow
Hans Kruse. 23 North lfith street..
s'12
fi 00
Rev. J. A. Williams
Jinlpe W. A. Foster
1.00
1.00
1.00
Bailiff J. W. Marrow
Total $:.108.75
PROBE LAND FENCING CASES
Grand Jary Takes Up Charges Agralnst
Cattle Barona for Misappro
priating Land.
The grand Jury has addressed ilself to
consideration of charges of Illegal fencing
of millions of acrea of graslng lands by
cattle barons but as yet has returned no
indictments of this character. F. B. Do-
frees of Alliance is the special agent wno
haa been at work on the cases.
the name of Bartlert Richards of Ells- No mention Is made of any other prop
worth, one Of the Ti'oet extensive cattle erty other than the gross receipts. In
owners of the west, is being associated J"'8 respect these sectlona are very dit
with the rumor, of these charges. Rich- llTltlZ
ards was a cousin of tie lata governor of tlunal In the case of State against Povnter,
Wyoming and It haa been raid that there Neb. 417; W N. W. Rep., 431. Section
waa never any disposition under tha late SlrTtruTl
governor's regime to -bring; any such tne gross receipts on prerMumr, That was
charges ajrUust Bartlett Richards. tne reason why tho court held It uncpn-
t -a 1,1 anme time 1111 that If the matter ftttutlonal. But none of the sections, 6S,-
I said some tine ago tnat ir tne matter and n atempt to make nimpl
waa handed over to me I would "not hesl- tions whatever. They elmply provide that
tate to probe the case no matter if it did the gross receipts shall be taxed under
Involve Bartlett." declared District Attor- Snvtai.7her!.'.'.T,'.'n;"y noln bo,,t
,' , any other property. These sections, taken
ney Summers last night. i connection with other sections of the
R. M. Allen of the Standard Cattle com- law, require insurance companies to list
pany Is another whose name la being as- ' thflr Property, both real and personal,
rotated with report, of these charges. It t0rtSS:
was learned from, authoritative sources therefore the fine lots and building owned
laat night that the grand Jury has as yet he New York Life Insurance oompenyi
h,h! - inrti-tmentji aralnat snv one ln maa. together with the fine library
brought no Indictments against any one ,herHn coxlM and woul1 cpe taxation
on these charges. District Attorney Sum- altogether? We know of no constitutional
mers declared that no witnesses had been
before the Jury ln the matter.
NEBRASKA STEER CHAMPION
Animal Raised at Nebraska State Uni
versity Wlas Flrat Prise at
I.lve Stock Show.
CHICAGO, Dec. 1. (Special Telegram.)
Amid a din of cheer, and college yells.
Champion, a ?-year-old steer, the petted
property of the State Agricultural college
of Nebraska, was today pronounced the
rhamnion steer of the International Live
Stcck ahow.
Judge Ferguson of England made the
award and, ln a speech, frequently inter-
runted by the explosive yells of tho Ne -
braska boys, declared that "Champion haa
no equal ln the wide world." The winner Is
a remarkable animal, one-quarter Angua, I all the property of tha corporation la tax-one-quartcr
Ho'.steln and one-half Here- able in addition to the tax on ktoss re-
one-quartcr
ford. Soma called It "Freak," for It is a
blue-rray steer with a Hereford head.
THREE MORE ARE INDICTED
Kx-Holdier and Two Alleged Illicit
Llqoor Sellers Caught by
Grand Jary,
The federal grand jury yesterday
turned true bills agalnat Edgar Blnns, an
ex-soldler, charged with stealing thirty -
nine blanket, and other thing from the
headquarters of the Millard Rifles; I-rank
Baumer and William Eatclle, charged with
selling liquor to Indians.
William Estello was arraigned before
Judge Munger lant evening for selling
liquor to Indians. He pleaded not guilty,
. . f
and gave bonds in $j0O for his appearance
at tho United States district court,
ENDS STRATTON-STRONG SUIT
..... n.,.t. - m,ail..l of I
Compromise Resnlts In Dismissal oil
Salt with Kew noaadary
Agreed I pon.
DENVER. Dec. 1. In the United Statea
district court today Judge Riner dismissed
- ... j. . j j
the auit of the Hi rat ton Irdependence com-
pany, limited, of Ixindon, against, the
Strong Gold Mining company, the litigants
having effected an agreement out of court
The Stratton company accepted $U,500 !n
lieu of $l,7i0.000, for which It sued, as full
' '' ' . . '
payment for all damages for the extrac-
tlon of ores from Its tarritory In Cripple
Creek by the Strong company. A boundary
line between the properties has also been
agreed upon.
,-w
CANNOT KEEP WHISKY DOWN
Pnrrnasers Have the Same Tronale
with tbe Price that Home Do
with the Goods.
TKORIA. Dec. l.-WhUky waa
today
il... l.cur.l of trade at tL"7 for
quoted ou the board or trade at IW lor
the basis, an advance of 2 cenU per gal-
Ion. compared with the price ruling for the
past two weeks. Tho resaon assigned for
the raise Is that tha product haa been
selling entirely too low and la now getting
bo.k to the normal figure.
ARGUE TAX LAW CASE
Gnrreme Cotrt and Three Oommiwionera
Listen te What 'Uwyert Eare to 8a
SENATOR PEMiERTON UPHOLDS THE IAW
One Beotion Attacked bj Insurance Ken
Inserted at Their Request.
NO PROPERTY EXEMPT FROM TAXATION
Franohised Corporation!.
HOLDS MEASURE LAYS UNEQUAL BURDENS
Method ot Assessing Home and For
eign Corporntlona Reaches Dir.
ferent Resnlts on Same
Property.
(From n Staff Correspondent.
LINCOLN, Dee. l.tBperlal.) Before the
supreme court proper and Commissioners
Duffle. Letton and Klrkpatrlck this after.
noon began the hearing In the revenue law
case, wherein Ralph Bretkcnrldge and II.
E. Palmer seek a mandamus to' compel
Tax Commissioner Fleming of Oinoha to
enforce the provisions of the old revenue
w, on the theory that the new one Is un-
-"..'inii. rmiii sgniiiBi mt iaw
arO John Webster. 1'. J. M-ilimiv.
Ralph Breckenridga of Omaha and Cefend-
'is It are Senator Pemberton of Oajre
county, who helped to enact It; T. C. Mun-
,er and H' A' Rn of thl" clty: Attorney
General Frout and City Attorney Wright
lof Omaha. Mr. Wright will likely make
!.." in. tinting luvivi.u i I wiv
torneys in the state to take part and throw
as much llsht on the auhlert as nssilile.
The argumenta will not be concluded Until
tomorrow.
Mr. Breckenridga lead off thla afternoon
and covered the same polnta contained in
his brief published in The Bee at the time
of the fllln- Mahoney will spend hla time
in ueienaing ine net crean ineory in
dicated by his brief.
Senator Pemberton, in his brief flled this
afternoon, defended every section of tho
bill that has been attacked. He scouted
their brief stated that the legislature was
overpowered by a powerful louby f real
estate men, and said thoy were resorting
to Action on the absencu of facts to sup
port tbelr contentions.
ho Property Exempt.
In defense of the Insurance sections Bena-
I tor Pemberton said that objections had
been made to thane because by taxing the
gross receipts montloned In tha sectlona,
all other property owned by the companies
I la exempt from ' taxation and that there-
I tore auch sectlona are unconstitutional.
I requirement that all the law relating to
the taxation of a person's property should
be contained In one section of the Statute.
As well might be argued that because eec- .
tlnn 6t only provides for assessing the
shares of shareholders ln certain corpora
tions, therefore all other property belong
ing to such shareholders is exempt. While
fraternal beneficiary associations and mu
tual companies are not taxed undr these
sections, they certainly are not exempted
by them. Moreover the fact, If It were
such, that the legislature bad overlooked
I ome property, would furnish no grounds
Km lai on". Bu?ha"nrol rwETli '
absurd. There Is abundunt provision In
tho new taw for getting all omitted prop-
j '
T" " 'aachlao.
I To Prove that tho etata haa the right to
I provide for tha taxation of gross receipts
nenaior pemberton cited a number of de-
1 Melons, and then said:
I It is generally held that a tax on gross
receipts Is a business or franchise tax and
not a property tax. It Is also hold that
t'ttipw. nomo stales noni witn Nebraska
that a franchise Is property and that a tax
UKn It la In that sense a property tax;
wuv mine win uisiiMuuon is maue Deiween
a franchise as a proierty tax and other
property taxes the result Is the same as
where a franchise tax is held to be not a
property tkx. because In either case the
franchise is separated from all other nrou
erty. v r
Under our constitution It Is required that
every person and corporation shall pay a
i in iiiuimiiiiin iu ine value oi hja
,1 n S
I Bnd franchises and reuulrlii both t I,.
1 taxed. A tax ujon gross receipts is a
iTV'
aldnred as a business tax or a property
tax; because the constitution expressly savs
h v,a1ll,a of the franchise, Is to he
ia.ure may d)rm.t. All the case. a- i
I harmony In holding that grosa receipts ma v
taxed anparately and In addition to ail
other property; and It makea no difference
wlietner the tax Is called a nronortv i.v
lor a business or a franchise tax. MrreW
calling a tax on rross receipts a property
U" Vender a .:,;?,V",,W wnleh-u'Vher:
Wise universally nriu 10 im VSIIU.
11 cim'eiiii.-u mm unciions M
, whll.n are lu,a..ni.r ,h, am.
the law in force prior to 1W (barring ex-
i empuon in uim inwi, wnu'n was neiq
1 valid In Phoenix liisurance t'oirfnaiiv
against Omaha, 23 Neb.. L22. are Invalid be
cause they provide different methoda nt
taxing the grosa receipts of insurance rum.
panics. This "''nlDn la based on the
I provisions of section bl, which permits state
lniluri,nce companlea to deduct the amount
I paid for re-Insurance, and upon canoella.
tions i rrom . tns i" f""'''0 "'h.
reiate to foreign companies Thls'siv Hon
was not In the original levenue bill but wax.
Inserted at ine uigeni request or tne ln-
i ranee companies; and they now seek to
d,.feat the law because It was Inserted
Rut under a reasonable construction of
thejo r'h.n.'no:.!'".'::
other for reinsurance is a part of ihs gross
I receipts of the latter company, and Is tax
able aa aacu. i o rviuir inq company
I Wh en nrsi receiws u ann pays it over to
pay taxes on It would U doublo taxa-
Permitting companies to deduct for sums
paid on cancellations of policies conies
under the same general principles. The
money so revived, while at first apparently
a part of the gross receipts for insurance,
eventually turns out to be only a deposit
niuiie with the company by the insured to
I , held until such time aa the Insured is
I entitled to Us return under the law or terms
of , v upon th tar,relatlon thereof,
I i- made plain by the statute which
I requires a return of the net amount of tho
I P j. ' "" i -
I po cy i nif,rai
,.-,.,. mentioned In .e..tnn. ui
land fit are In different classes. The Conner
