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The Omaha Daily Bee
OMAHA, SATURDAY MOKXIXG, AUGUST 11, 1906-TWELVE PAGES.
VOL. XXXVI-2-XO. 47.
SINGLE COrY THREE (TEXTS.
REBATES PAID OX OIL
Federal Grind Jury at Jamaetown, H. T. ,
IndlcU Btandard and Vacuum Cot.
PENNSYLVANIA RAILROAD ALSO, ON LIST
Cbaxce ia Making; Bhipmenti at Lais Than
TWENTY-TWO COUNTS IN THE BILLS
Maximum Pan alt t Under the Elkina Law
NEW EVIDENCE FOUND IN CHICAGO
Manipulate Rat by Which Rockc
feller C Ota bine Haa AItiiKi
la Eatlrc Southeastern
JAMESTOWN. N. Y.. Aug. 10.-The fed
ral grand Jury for the western district
of New York today reported j
sgstnst the Standard Oil coir
York, the Pennsylvania rail.
Vacuum Oil company, which .
les at Clean and Rochester, N. Y.-. '
One indictment la found against e.
the defendants and In all there are twe
two counts. The Indictment against ti.
Pennsylvania railroad charges that It
granted rebates on oil shipments to the
Standard Oil fcompany and the Indictment
. BganiBi in niHnufliu nmrgra inm ll nc-
f, cepted rebate from the Pennsylvania.
7 Tha evidence ahowed the,t the Vacuum
X Oil company made shipments over the
Pennsylvania and that the Standard Oil
paid therelght bllla. The Indictment against
tha Vacuum Oil company charges specific
ally that It ahlpped oil from Olean to Rut
lard. Va , at a tariff rate lower than any
published by the Pennsylvania railroad or
on file with the Interstate Commerce com
mission. One of the counts in the Indictments
charges that the Pennsylvania railroad did
not file with the Interstate Commerce com
mission m tariff showing Ita ratea and
charges for the transportation of oIL
Tha Indictments were drawn under the
direction of Special United States District
Attorney O. E. Pa gin. Each of the twenty
two counts constitutes a separate offense
and the penalties. If the defendanta were
convicted on all counts, would amount to
Tha Indictments specify that the, ship
ments were made under a common ar
rangement between the Pennsylvania, the
LN.w Tortt Central and tha Rutland Rail
Important Kvtdenre Discovered.
CHICAGO, Aug. 10. Evidence of direct re
bat arrangements alleged to exist between
the Standard Oil company and certain rail
roada was presented to the federal grand
jury today by a witness who in the eyes
of tha government s attorney la believed
to b one of tha moat Important witnesses
en this subject Horace Tucker, chairman
of tha Chicago A St Louis Traffic as
soolatlon, ,waa the. man who gave this tn
1 formation. Other witnesses heard were C.
A. Kennedy of tha Chicago Junction Rail
way company and J. H. Howard, clerk In
the auditing department of the Chicago &
It developed during today's hearing that
there la In existence on the Chicago &
Eastern Illinois railroad, a tariff on ship
ments of oil from Dolton, III., to points
south which la very low. The Standard
Oil company has Its refinery at Whiting.
Ind., a short distance from Dolton, and
could easily avail Itself of this low rate
while other shippers wishing to reach Dol
ton to participate In the low rate south
must pay the switching charges In the
Chicago district of $6 a car, which makes
the total rate prohibitive aa far, as com
petition la concerned. According to the
testimony, the Standard OU shipped Ita oil
from Whiting, Ind., to Dolton, 111., over
the Chicago Terminal Railway company
for about $1 a car In switching charges.
Although the shipment was between two
states It was not Interstate because It waa
within one shipping district. Tha same
consignment waa then shipped south on the
Chicago A Eastern Illinois from Dolton on
tha low rata from that point. Thla latter
road carried tha shipment to Otter Creek
Junction, ' where It waa transferred to tha
Evanevllle Terre Haute -road, whch took
It to Evanaville, Ind. It was then taken
to Grand Junction, Tenn., over tha Illinois
Central road connecting with tha Southern
railroad at that point and distributed
through the south by the latter road. It
Is declared, that by this combination the
Standard OU company was able to reach
Orand Junction, Tenn., with Its oil on a
through rate of 13 cents for a hundred
pounds whereas no other shipper was able
to take advantage of the same privilege.
Th city of Grand Junction Is thus desig
nated as the gateway to tha southeast
for tha Standard Oil company, giving. It
la charged, a monopoly on the oil business
in that part of the country.
Tne witnesses questioned concerning this
matter were J. P. Brook, an agent for tha
Southern railway, and L. B. Butts, in the
auditing department of the Illinois Central
At tha conclusion of today's testimony the
Jury adjourned until August a. at which
tlm It will probably make its report.
A now grand Jury will convene next
Tuesday and take up the esse subsequent
i March 3,
Taleda Ice Trnat la l.lmrll'M.
TOLEDO. O.. Aug. W. The local Ice
trust and th railroads alleged to he back
of It will be Investigated by the federal
authorities. Intersta'e Commerce Commis
sioner Clements and possibly Commissioner
Cock re U will be here next Tuesday for that
purpose. It Is known here that President
Roosevelt has watched the K-e trust pro
ceedings In Toledo since Prosecutor Wach
ahlmer first began his investigation, and
he look a lively Interest when Judge Kln
caid gave th convicted ice men a prison
sentence. Three weeks ago Special Agent
Walter of th commission appeared in
Toledo and began looking up evidence con
cerning the oigsnlzatlon of the Ice trust
by offlVlala connected with the Ann Arbor
and Pars Marquette railways The hearings
to b held Tuesday Is the result.
Sanar Rebates Alleged.
NEW YORK. Aug. M Aa a result of
investigation of cases of alleged rebating
by railroads the I'nited States grand juiy
today returned six Indictments. They are
said to b based on rebating sugar.
Tha federal authorities declined to give
out tha name of those Indicted, but It was
reported that they Include both individuals
and corporations. United gtatea District
Attorney BUmson said that th grand Jury
will resum Its examinations of the re
bate matter about September 1.
Wlsessils Capital Haad.
! MADISON, Wis.. Aug Ift-Th work of
(earing down th old capltoi preparatory
I t rotevsUAUs wa -wu 'today.
RCOT PARTY lit MONTEVIDEO
Secretary f State Olren an Enthusi
astic Welcome to CatHal
MONTEVIDEO. Aug. 10. Secretary Rmt
arrived here today on the cruiser Charles
ton. Never perhaps In the history of tha
Uruguayan republic hsa popular feeling
heen more visibly mnnlfested than by the
remarkable, demonstrations of satisfaction
on the part of all classes with which the
visit of the eminent American statesman to
this picturesque capital.
As soon as Mr. Root was on shore Dr.
Jose Romeu. the minister of foreign affairs,
delivered a speech of welcome to which
Mr. Root made a brief reply. Aa the
visitors drove away, accompanied by Minis
ter O'Brien, to the splendid residence In
the heart of the city, which had been pro
vided for them, tha scene of enthusiasm
was Impressive and striking. Mrs. Root
and Miss Root shared the heartiness of tha
ovation accorded the American secretary of
This afternoon there was a reception by
the president of the republic at the govern
ment house, and a military parade, while
tonight there was a gala performance at
the theater. The city has abandoned It
self wholly to the entertainment of tha
SPANISH MINISTRY FIRM
th Question of Charch
, Aug. 10. The government
com. to maintain a firm attltuoe on
the r. rch and state question. A min
ister today declared that while -the gov
ernment was' desirous of avoiding a
breach with the Vatican It had determined
to defend the supremacy of the state.
At the first sitting of Parliament the
government will introduce a bill making
the religious orders amenable to the law
controlling industrial corporations and
will also Introduce a bill providing that
members of orders recently expelled
from Trance will be required to become
naturalised or leave Spain. The minis
ter said that the cabinet was determined
to carry these measures and did not fear
FUNERAL OF ADMIRAL TRAIN
Impressive Services Held Over Body
' of Dead Naval Commander
YOKOHAMA, Aug. 10 Impressive serv
ices were held today on board the United
Btates flagship Ohio over th body of the
tats Rear Admiral Charles J. Tralh. who
died at Che Foe August 4. The officers
of the cruisers Chattanooga and Rnletgh
and of the gunboat El Cano represented
the navy. Ambassador Wright, Consul
Miller of Yokohama. Consul Jones of Port
Dalny and Consul Hayward of Seoul rep
resented th diplomatic and consular
bodies. The ceremony waa directed by
Executive Officer Cbwlea of the Ohio.
Th Japanese government waa repre
sented by Lieutenant Commander Count
Cano, . , . . ..
KING EDWARD IN A RACE
With Prince of Wales He Takes
Active Part la Schooner
COWES. Aug. 10. King Edward and the
prince of Wales were active participant in
today's racing, being among those on board
the schooner Cetonla In the contest for
schooners over the Queen's f $4rse. Th
other entrants were the Meteor, Sunshine,
Qlara and Adela. ' i,.
In the race for cutters and yawls the
starters were Navahoe, Karld, White
Heather, Merry Maid and Nyrla.
The weather on this, the last day of the
Cowes regatta, continued bright with a
good breexe blowing.
Foreigners stand By Hart.
HONG KONG. Aug. 10. Great uneasiness
is felt here over the incresslng evidence
Indicating that It is the purpose of the
new board of Chinese customs commis
sioners st Pekin to override the powers
of tha foreign inspector general, Sir Robert
Hart. The abolition of the new board aad
the re-eatabllahment of the former powers
of Sir Robert are considered by the for
eign mercantile community here as neces
sary in order to protect the Interests of
the foreign bondholders and secure fair
treatment of traders.
Women to Meet la Holland.
COPENHAGEN, Aug. 10. The conference
of the International League of Woman
Suffragists today decided to hold the next
conference in Holland during the year 1908
in connection with which there will be
mass meetings at Amsterdam, The Hague
and Rotterdam. The conference also de
cided to publish an official paper In Eng
lish, in the Interest of th suffragist move
ment. Japaa Awaits Report.
TOKIO. Aug. 10. (Afternoon.) All facts
received up to this time In connection with
the Aleutian Islands Incident point to a
raid by Japanese poachers. The pres. is
refraining from comment. It is generally
believed that It will not result in any di
plomatic complications. The Jipanese gov
ernment, however, is still awaiting lis own
report upon the occurrence.
Immigrant Steamer Ashore.
PONT A DFIGADA, Azore Islands. Aug.
10. The I-ottl line steamer Brooklyn, from
Marseilles August 4 for New York, mlth
330 immigrants on board, grounded while
entering this port today. Efforts are being
made to float the steamer.
Turkish Saltan III.
CONSTANTINOPLE. Aug. 10,-Recent
reports that the sultan. Abdul Hamid II, la
ill, are confirmed by private advices.
DOWIE 0BJECJS TO ORDER
Does "t Wani Receiver Hateley to
Brrw Money ta Pay
CHICAGO. Aug. 10. -John Alexander
Dowie today filed an objection In th
United Stab circuit court to tha borrow
ing of t.S.500 by Receiver John C. Hateley
of iilon City.
When Judge Landia appointed Mr. Hate
ley receiver ha ordered him to pay taxes
to th Lake county court on Zlon City
property in the sum of I7.G00 and send 19,000
to Insure tn buildings in Zlon City. Dowie
alleged that ha strenuously objects to thla
order and does not want It entered on
record. Ha also obejots because, on account
of the form of Judge Landis' order he can
not Immediately appeal to the United Slate
court of appeals. The matter will not be
sett.d until Judge Laudls rsturna from
RADICALISM TO THE REAR
Battian Moderates Start Movement
Defaat All Extremist.
NEW PLAN ORIGINATES IN MOSCOW
latentlon la to Secure Be forms by
Gradaal and Peaeefnl Methoda
Appeal to Voters for
ST. PETERSBURG, Aug. 10.rThe health
iest symptoms of tha situation are th ef
forts now being mad at Moscow by the
new party of pacific regeneration, ex
Octoberists. to secure th active co-operation
of the moderate minded constitutional
democrat and unite the progressive ele
ments of society which do not believe In
a violent revolution and defeat the candi
dates for the extremists of all parties at
the coming elections. Should the negotia
tions be successful It Is their Intention to
issue an appeal to the country, asking all
who favor a peaceful solution of the politi
cal, economic and ethnical problems, to
sink Individual differences, unite and com
pel the government to realiie the aspira
tions for a constitutional regime, and at
th same time save the country from a
violent revolution and anarchy. Later It
Is the Intention to call a convention and
begin an active electoral campaign.
Th first financial operation of the gov
ernment since the dissolution or Parlia
ment Is the mortlxatlon of the Interior loan
of $12,500,000, bearing S.6 per cent Interest,
with a new Issue bearing 3.6 per cent In
terest. Treeing Assailants.
The attempts on the lives of Vice Ad
miral Doubasoff on May ( and of General
Nepluleff, commander of the Sevastopol
forces, on May 27. have been traced to the
"flying fighting organization" of the so
cial revolutionists, of which Pavlnkoff, a
member of the central committee of the
social revolutionists, and Lieutenant Khol
schevnlkoff, formerly of 'the Black sea
fleet, were leaders Savlnkoff was ar
rested on suspicion of complicity in the at
tempt on General Neplulrff's life, but he
escaped two days later.
DoubassofTs assailant, who was killed by
the explosion of his own bomb, haa been
positively Identified. A girl student. Mile.
Mlshtchenko, who waa Involved In the con
spiracy, had three of her fingers blown off
and was otherwise terribly mutilated while
loading a bomb. She is a daughter of Gen
eral Mlshtchenko of 8t. Petersburg, a
member of the military council.
About WO of the Cronstadt mutineers will
be tried by court-martial.
The central prison bureau haa sent out
a circular warning to the wardens of
penitentiaries to be on their guard against
a new revolutionary organization formed
to release political prisoners with the aid
of sympathetic keepers and guards. Many
Jail deliveries are already attributed to
the work of this organization.
Governor Zlnovleff " fit. Petersburg has
Instructed the subord... te officials In the
country to explain to the peasants that
th emperor dissolved Parliament only be
cause the members wasted time In making
Inordinate demands, like their Insistence
n- the granting of general amnesty, which
would turn loose robbers and muVderera,'
and their urging the abolition of th death
penalty, even for a destroyer of the aarred
person of the emperor. They had not even
presented a solution of the agrarian ques
tion, but tha result of their work being
an appropriation of $7,500,000 for famine re
lief where the government asked for $25,
000.000. French land Damn.
PARIS, Aug. 10. The leading senators,
deputies, former cabinet ministers ntid
members of the Institute and of the acad
emy have united in an address extolling
the outlawed Russian Parliament as the
bulwark on which Russia's population are
dependent. The address says:
History tenches us that a representative
government and Individual liberty are the
only certain means on which a nation can
found prosperity. As the friends of Russia
we watched with profound interest the
creation of the Russian Parliament and
its struggle for existence.
The triumph of liberty In Russia, which
.we hope Is near, will permit the Russian
and French people loyally to support the
Franco-Russian alliance upon the basis of
common ideals and interests.
The Russian Parliament Is dead! Long
live th Russian Parliament!
Senator Pierre Berthelot, ex-minister of
foreign affairs, forwarded the address of
Prof. Mouromtseff. who was president of
the lower house of th Russian Parliament.
Brigands at Work.
MOSCOW. Aug. 10. A band of brigands
on bicycles is syatematlcally robbing vil
lage churchea In this vicinity, avowedly
to secure funds for the revolutionists.
VERKHOYANSK, Siberia. Aug. 10.-A
roving band of Circassians rode Into tha
railroad station here yesterday and robbed
the cashier of 117,600.
AUTO ACCIDENT IN NEW YORK
Driver Attempts to Escape Arrest
Whea Machine la I pset aad
NEW YORK, Aug. 10. When an automo
bile, owned and driven by Stewart Elliott,
ran into a mounted policeman in the Bronx
early today Mis. T. W. Noble of Baltimore
waa thrown out and so severely Injured
that she died tonight In Fordham hospital.
Miss Margaret Johnson of this city, also of
the party, Is still In the hospital seriously
hurt. Mr. Elliott snd the policeman, Harry
F. Smith, were slightly Injured. The
: mounted officer was riding after the euto
1 mobile In an attempt to arrest the driver
I of the machine for an alleged violation of
j the speed laws. He galloped alongside the
when It swerved toward him. The
I horse stumbled and fell and the automobile
j was thrown Into a fire plug and wrecked.
Late tonight Elliott gave bimself up.
Elliott was arraigned before Coroner Mc
Donald and paroled until tomorrow, when
the inquest will be held.
SMUGGLERS KILL TWO PEOPLE
American aad Porto' Rlcan Meet
Death at Hands of Lawless
WASHINGTON. Aug. 10. A telegram was
received at the bureau of Insular affairs
today from tha comptroller and general
receiver of customa at Santo Domingo an
nouncing that John Mllbourn, a Porto
Rlcan. was killed, snd Charles P. Thurs
ton, an American, wounded, by smugglers
In the vicinity of Laa Mataa on August
I. and that Thurston died of his wounds
on August I.
Las Mataa la about twelve miles east
of th Hsytlen frontier in Santo Domingo.
Thurston had been employed as a deputy
receiver of customs at Commendador, on
the Hsytlen frontier, and Mllbourn was an
inspector In the same territory. Corr
mendador is th nearest customs house
to tha plae where the conflict occurred
and was established to prevent smuggllp-
rat tfc Uajrtiea Border.
SERIOUS WRECK IN TEXAS
Fifty-FlTe Persona InJared Whea
Coaches Leave the Track
ST. liOflS. Aug. 10. A special to th
Post-Dlepatch from Dallas. Tex., says
fifty-five persons were Injured today In an
accident on the Fort Worth & Denver
railroad near Frultland, Tex. A relief
train has gone from here carrying physi
cians. The wreck occurred about 1 o'clock this
morning on a long curve near Frultland,
the alerpef ami on day coach going down
a twenty-foot err ibankment. The injured:
Coleman, Alavord, serious.
Joe Davis, Ixmgvlew, serious.
P. Carron, Amarlllo. serious.
F. A. Gaston, Bowie, slight.
One Chinaman, seriously.
Pullman conductor, alight.
A. Kcrnan, Dallas, arm broken and
T. F. Ballon. Matador, serious.
O. W. Lasslter and wife, Quanah; wife
hurt head and body; man, head and hack.
Leslie Stllllngs, Bowie, Internal Injuries.
C. A. Roberts, conductor. Fort Worth,
Mr. snd Mrs. R. N. Miller. New Boston,
scalp wounds and hurts In chest and bark.
Mrs. Miller, injuries serious.
J. W. Thorne, Reeves, Tenn.; shoulder
P. T. Bouldtn. Matador, scalp wounds.
W. H. Myers. Henrietta; internal in
juries; very serious.
W. E. Robinson, Hereford, Tex.; back
and shoulder hurt.
P. W. Cole, Temple, Tex.; Internal In
J. F. Smith. postofTlce; slight.
J. B. Rymer, Walnut Springs; scalp and
Mrs. R. M. Hensiey, son and daughter,
Prosper; all hurt about, heads.
Miss Webb and father, hurt back and
Miss Ray Saunders, Fort Worth; nose
Miss Jennie Bd wards, Cleburne; slight.
M. C. Clemens and wife, Fort Worth;
J. G. Blanke and wife. San
E. J. Evans, Wichita Falls; i
W. A. Snyder, Oklahoma; shoulder hurt.
Henry Coleman, Klwood; back and hip
Joe Davis, Longvlew; back, head and
Miss E. J. Moore, Llano, Tex. j head
bruised and back wrenched.
J. W. Vinson. Sherman; bruised back,
shoulder and face.
Miss Emma Burkeholden, Shreveport,
La.; wrenched and bruised back.
O. C. Waters. Springtown; leg ampu
tated; very serious.
Miss Anderson, Fairfield, Tex ; sprained
Miss Lizzie Anderson, Fairfield, Tex.;
Miss A. F. Gray, Llano; head bruised.
Miss R. K. Board, San Antonio; head
bruised and nearly smothered in berth.
A number of others suffered minor hurts.
The majority of the Injured were taken to
Bowie for medical attention and a num
ber were taken into Fort Worth.
TEAMSTERS START NEW UNION
Insurgents Who Object to Shea Farm
a Rival Society at
CHICAGO, Aug. 10. A new labor union,
to be known as the United Teamsters of
America, waa formally launched today as
the rival of the International Brotherhood
of Teamsters. While C. P. Shea, the re
elected president, and other officers of his
staff were winding up the affairs of the
convenflon of the old.prganixatiort the new
one was In process' of formation." After
the name had been decided Upon the dele
gates who had bolted Shea's meeting last
Tuesday took up the task of working out a
constitution. It was decided that the one
governing the regular organization would
do. If remodeled In some particulars. It
Is the purpose of the new organization not
to hold an election until after the Shea
convention shall have adjourned, and thus
It is hoped to secure reinforcements to
their ranks. Inasmuch as many would-lie
officers of the brotherhood who were de.
feated In the election yesterday are ex
pected to seek office In the new organiza
tion. Meantime, Frank Morrison, secretary
of the American Federa'lon of Labor, Is
hurrying to Chicago with a message from
Samuel Gomners, president of the Amer
ican Federation of Ijibor. The message Is
an arpeal to the anti-Shea contingent to
discontinue the secession movement. Sec
retary Morrison will arrive In Chicago to
morrow and address the secedera.
The anti-Shea meeting today was at
tended by 120 teamsters, who claim to rep
resent forty-three different unions through
out the United States. The unions went on
record as opposing political action such
as advocated by the American Federation
CHINESE LAB0R FOR CANAL
Commission Unable to Find Sufficient
Workers of Other Nation
alities. WASHINGTON, Aug. 10. Chinese labor
will be given a thorough test on the
Panama canal. Contracts calling for 2,500
Chinamen for canal work have been pre
pared and advertisements will he Issued
by the Isthmian Canal commission in a
few days asking for- proposals from labor
If the Initial S.500 Chinamen prove a auc
cess. It Is likely that many more will be
taken to the Isthmus to do the work,
which la too hard for the Jamaicans now
employed there In large numbers.
Organized labor has offered much oppo
sition to the use of contract Chinese labor,
but the Jamaican workmen have proven
Inadequate, sufficient Spaniards cannot be
had ftnmeidlately to rush the work and the
Chines are the last hope of the commis
sion. It is the intention of the commission to
ask for bids from labor agenta, who will
arrange with the Chinese government for
the exportation of labor, transport the
Chinese to the isthmus under contrsct to
work for a fixed wage, and shtp them back
to China, thus relieving the commission of
all detail work and all responsibility. A
bond will be required for all contractors
for satisfactory fulfillment of any contract
they may enter Irfto with the commission.
WOMAN WRITER SUES LOEB
Secretary af President Asked for
Fifty Thousand Hollars Damages
for False Arrest.
OYSTER BAY, I- I.. Aug. 10-Wllllnm
Ixeb, Jr.. secretary to President Roosevelt,
was made defendant in a $.',0,000 dam:tge
suit today. In which he is charged with
having caused the false arrest of Nadage
Dore, a Jewish writer.
The arrest waa made last winter In
Washington, when Miss Dote waa dis
tributing leaflets advertising her work in
the defense of Russian Jews at St. John's
Kplscopal church. The papers wer served
on Mr. Loeb todsy by a New York firm of
lawyers. They require him to make an
swer within twenty days hi New York.
Mr. I,oeh will be defended by the Depart
ment of Justice. The arrest, he says, was
made by the Washington police fore with
out his knowledge. MWs Moree made an
! unsuccessful effort lo see President Roose
i vlt at Ojsicr bay last sununer.
TELLER COMMITS SUICIDE
Employe of Wrecked Chicago Bank 6heoU
Himielf Th?on?h the Eeai
HALF MILLION IN FORGED PAPER FOUND
Latest Estimate Plarea the Atneont
of the shortage at Two Mil
lions Co-operative Store
CHICAGO. Aug. 10-Frank Kowalskl
paying teller of the Milwaukee Avenue
state bank, which failed last Monday, and
for some time assistant receiving teller
In addition to his other duties, shot and
killed himself tonight at his home, 310
North Carpenter afreet. Criticism by
neighbors and life long friends who ac
cused him of a share In the flowniaii oi
the bank is believed to have driven
Kowalskl to his death.
Knowalskl had romplalned bitterly of the
suspicion of his friends and declared that
unless his character was speedily cleared
he would take his own life.
Kowalskl's relatives assert their Arm be
lief that he waa Innocent of any knowledge
of the mismanagement of the bank by Pres
ident Stensland. When the bank failed
Kowalskl had 7no of his own money on
deposit In the Institialon and his Imme
diate relatives nearly fcAOOO. Had the
teller known of Stensland's defalcations,
they assert, he would at least have noti
fied his relatives and would have taken his
own money out of the Institution.
The dead teller, who was thirty years
old. had been with the bank for thirteen
Half Million In Forged Notes
While the search for Paul O. Stensland.
the tr'sslng president. Is being extended to
all parts of the country. Cashier Herlng.
who waa arrested yesterday, spent today
with the states representatives and Bank
Examiner Jones In examining the hank'a
collateral In an effort to determine how
much the president Is short In his ac
counts. After an all day's search forged
notee aggregating more than InOO.ono were
found and are now In the possession of
the state's attorney, who will use them
In the prosecution of the officials respon
sible for their utterance. From a state
ment Issued today by Herlng regarding
loans made by Stensland as banker, to
himself, and the shortages found by pre
vious investigations, It is asserted tonight
that when a final adjustment of the af
fairs of the bank Is made. It will be found
that President Stensland's defalcations will
aggregate nearly 12,000,000.
Close Stenslnnd'a Concerns.
The first step In the dissolution of outside
companies with which Paul O. Stensland is
identified was taken when a petition In
Involuntary bankruptcy was filed against
the Milwaukee Co-operative store by attor
neys representing a State atreet department
store. The petition waa filed before Judge
Bethea and arrangements were made by
him to appoint a receiver under the order
aa soon as possible. Notice waa given tha
Co-operative ator today by an attorney
representing three New York creditors that
he intended to take almilar action, but In
view of the filing of the petition by the
local concern It ia now probable that the
New York creditora will Join with the petl
tlonera now before the court. The stock
holdera of the Milwaukee Avenue store
number ,000 persons, many of them work
men holdera of share of $10 each. Th In
dividual liability of the shareholders, it Is
claimed, is a mooted point and It may he
that the court will hold that the creditors
of th company have recourse upon the In
dividual property of them all.
Henry W. Herlng, cashier of the sus
pended bank, was today taken to the Insti
tution he Is alleged to have helped ruin.
He was taken to the bank by two detec
tives and every precaution waa used to get
him inside the building without the knowl
edge of the several hundred persona who
were around the place. Safe Inside the
bank. Cashier Herlng Immediately began to
direct the authorities around to the differ
ent vaults and secret places.
Opposition to Receiver.
Application for the appointment of a re
ceiver for the Milwaukee avenue stor met
strong opposition. An attorney for Re
ceiver J. C. Fetzer declared that the Mil
waukee Avenue State bank had a , large
Interest In the concern and that Receiver
Fetzer desired to complete hla Investlga-)
tlon before any action which would tie up
the assets of the store be taken. The case
was continued until next Tuesday.
Frank B. Schmltt waa appointed special
master In chancery In the litigation re
sulting from the suspension of the Milwau
kee Avenue State bank by Judge Brentano
In the superior court today. Mr. Schmltt's
appointment was made at th request of
Receiver Fetzer, mho filed a petition with
the court asking for the appointment.
An Intervening petition was also filed In
the same court by the Polish National Al
liance of Noith America, which organiza
tion haa deposited in the bank. It Is
claimed, more than $48,000. The court waa
asked in the petition to allow the alliance
to become a party complainant to the
receivership proceedings and officer in
the alliance expressed to Judge Brentano
their confidence in Mr. Fetzer as receiver.
Find "Forsrery Xest."
Assistant State's Attorney Olsen found
what Is termed a "regular forgery nest"
while coins- through the books and raters
of the Milwaukee Avenue State hank with
I Cashier Herlng and State Bank Fxainlner
I Jones today. The "nest
was composed of
two envelopes filled with hand blank
j forms. The blank forms contained signa-
tures which had been traced from the
! regular depositors' book. According t' Mr.
j Olsen. these were ready to be filled In for
! any amount, which would be charged to the
j account of the person whose name was
i signed. The other envelope contained notes
running up to thousands of dollars with
I the names of many prominent business m n
t ached. The authorities will endeavor to
i discover whether or not these names were
j forged. The notes were found hidden In
President Stensland's vault.
F. S. Peabody and F. R. Herpold were
two of the men who went to the bank
and. with Casiiier Herlng looking on, gave
absolute proof that two pieces of the paper
found were forgeries Police Inspector
Snippy, who was present during tue In
'The thing is a good deal worse than I
I had supposed. We have proved that $500.-
! 000 worth of the paper are absolute for-
geries. One iote for $30,000 bearing the which marched overland from Fort Leav
signature of F. S. Peabody aas examined j enworth.
by Mr. Peabody, who declared It was not j The brigade headquarters of the Ne
hlb signature." braska National Guard was notified that
Mr. Pt-ahody had heretofore Insisted that Governor Mickey of Nebraska would ar-
the nnlv note he was concerned In tan one
for $V).0uf'. Tne Herpold forged note was
; for $H.'iO. - Receiver Fetzer made the fol
lowing statement this afternoon:
"There are r.WOM worth of mortgages,
; the value of which we know nothing about.
Considering the developments of the day
In regarti to the other securities It Is doubt
ful if these mortgages will prove good."
NEBRASKA WEATHER FORECAST
Warmer Saturday and
Temperafnre at Omaha 1'esterdari
IRRIGATION CONTRACTORS FAIL
Government Tnkea Possseslna of Two
Oatats Working la
WASHINGTON, Aug. 10 Acting under
authority of the secretary of the Interior,
the director of the geological survey t.Klay
ordered the confiscation of the whole of
the contractors' outfit for work on the Cor
bett tunnel on the Irrigation project In
northern Wyoming. It was ascertained by
the secretary thst the contractor not only
abandoned the work but waa about to re
move all his appliances from the premises.
This contract was a married to Charlea
Speer. cashier of the Billings state bank.
He, in turn, made arrangements for carry
ing on the work under the Western Con
struction company. The difficulties of se
curing labor and the high cost of material
resulted In such delays to the work that
It apparently became Impossible to finance
the operations, and August S the company
was unable to pay the four hundred or
more men then employed. The bids on
the Corhett tunnel were opened September
8, 1W6, and awarded to Charlea Sneer on
an estimated basis of 1594.825. The next
lowest bid wss made by J. O. White
company of New York at 596.750. ,
The government officers also took pos
session of the work and outfit of Prende
gast A Clarkson on the Shoshone dam, one
of the largest structures In the west on the
ground that the firm had not been able
to secure necessary men and financial-backing
to carry them through the work. The
bids for the work were opened September
6. 1905, and awarded on an estimated basis
of $515,750. The next lowest hid waa that
of J. G. White & Company of New York
NEW HAMPSHIRE DROPS OUT
Another Fire Inanrnnce oneera De
rides to Take o llore Call- .
MANCHESTER, N. H . Aug. 10-In an
nouncing that the New Hampshire Fire In
surance company has suspended business
on the. Pacific coast, officers of the com
psny gave out a statement today, saying
that the suspension Is due to the fact that
the company desires to permit the unset
tled conditions In San Francisco and the
Pacific coast slope generally to adjust
themselves before taking on further lia
bility. "The company," the statement saya, "has
not withdrawn from the several states
which were operated under Ita Pacific coast
department, but has instructed Ita man
ager at San , Francises o suspend wrltjjig
huslnesa for the present, preferring to
await the results of the period of recon
struction and to publish further Informa
tion as to the possible results of legisla
tion In California. The company's losses at
San Francisco, the statement says, will be
settled for about $500,000.
The company's statement of January 1
showed a capital of $1,000,000 ant) a net sur
plus of $1,260,000.
WESTERN MATTERS AT, CAPITAL
ew National Bank Authorised t
Open for Business at Wes
slngton, S. D.
(From s Staff Correspondent.)
WASHINGTON. Aug. 10.-(Speclal Tele
gram.) Irving W. Spauldir.g has been ap
pointed postmaster at Beverly, Hitchcock
county, Nebraska, vice W. T. Todd, re
signed. Rural carriers appointed: Nebraska
Dorchester, route 3, Victor M. Stanton car
rier, John L. Troyer substitute. Iowa Brltt,
route 1, Freeman Wagner carrier, Phoebe
A. Wagner substitute; Oakland, route J,
Elmer E. Bird carrier, Lucy Whitley sub
stitute. The First National bank of Wesslngton,
8. D., has been authorized to begin busi
ness with $25,000 capital. H. A. Pierce !
! president. E. H. Vance vice president and
Etl pcholllan cashier.
Civil service examinations will be held
Aupust 25 at Centervllle, Ia., for positions
of clerk and carrier In the postofTlce service.
H. Kountz and wife, C. A. Glmmell and
MIsk Brandt of Omaha are at tha New
FIFTEEN YEARS FOR LYNCHER
Leader of Moh That Hanged Three
Xegroei at Salisbury, X. C,
SALISBURY. N. C. Aug. 10-What Is
said to be the first Instance of th convic
tion of a lyncher In the history of the stste
was furnished here tonight when Oeorge
Hall, a white ex-convict of Montgomery
county. North Carolina, who waa one of the
party that Monday night lynched three
negroes In Jail here for the murder of the
Lyerly family, was found guilty of con-
splracy In connection with that crime and
was sentenced to fifteen years at hard labor
' tn the pt-nltentlary, the maximum sentence
I provided by law. Hall's trial ended this
j evening at 7 o'clock. The Jury wss out
but thlrty-flve minutes. Hall's counsel has
i appealed on the ground that Governor
' Glenn was In Atlantic City when the special
' term at which Hall was tried was ordered
i and that being out of the state's bounds
i he had no Jurisdiction.
SHAM BATTLE IN PROGRESS
Troops at Fort Riley Receive Blaak
Ammunition and Begin
FORT RILET. Kan., Aug. 10 Today all
troops were issued blank ammunition and
the first sham battle of the maneuvers
took nlace. The regular force at the ramn
' was Increased today by the addition of
I.. 11-... n,k l,attrv 9 H.M ...III
i U rvi, iciiiii w. , iiu aivuiriy.
rive at the camp today
The headquarters of the camp of In
struction received Information from the
adjutant of the South Dakota National
Guard tl t only one battalion of that
state's troops instead of a regl-ient. would
be sent here for Instrjrtlnn August 18.
The Arkansas regiment waa expected
aome Um during tha day. . ,
CROP- OUTLOOK FINE
Corn Gaini Orer Half Point Dnrin the
If 09 th of July.
FOUR POINTS ABOVE TEN-YEAR AVERAGE
Nebraaka One Point Below Irence nd
Iowa Sine Pointa Above.
WINTER WHEAT MAKES BIG SHOWING
Increase of 4.3 Bnthelt Fer Acre Indicated
by Preliminary Report.
YIELD NEARLY HALF BILLION BUSHELS
Spring Wheat and Oata Show Falling
Og Compared with Conditions of
On Month Ago Sts tlst les of
WASHINGTON. Aug. 10 Th crop te
portlng board of tbe bureau of statistics
of the Irpartment of Agriculture finds
from the reports from the correspondeuta
and agents of the bureau aa follows:
The condition of corn on August 1, waa
8S.1, as compared with 87.5 last month,
89 on August 1, 1906; $7.$ at the corre
sponding date In 1904 and a ten-year
aversge of 84.
The following table shows for each of
the states having 1,000,000 acres or up
ward in corn, the condition on August 1,
190t, with the ten-year August averages;
August 1, Ten-Year
Nebraska . . .
North Carolina 91
Indian Territory i.PJ
8onth Carolina 84
South Dakota 85
United States 88.1
Bia; Winter Wheat Crop.
Preliminary returns Indicate a winter
wheat crop of about 493,C4.0t bushels, or
an average of 1.7 bushels per acre, aa
compared with 14 3 bushels per acre last
year, aa Anally estimated. Th preliminary
estimate of the yield of winter wheat and
the estimated acreage on which it la based
are subject to such revision and correc
tion, when the final estimates of the bureau
are made next December as may be found
proper through Investigations now In prog
ress. The following table ahowa the estimated
average yield per acre . In each of th
eleven principal wheat states In 1906 and
. 1905, th figures for 1905 being th , final
estlmatea Issued December 20;
20 7 18.$
23 2 20 4
19 5 l'i.0
20 4 17.1
17 1 II
17. T 17.1
14 0 5 1
14 7 14 3
Decrease la Spring Wheat.
The average condition of spring wheat
on August 1 was 86.9, aa compared with
91.4 last month. 89.2 on August 1, 1905 ; 87.8
at the corresponding date In 1804 and a ten
year average of 82.6.
Th following table shows for. each of th
five principal spring wheat state th con
dition on August 1. 1906, with th ten-
Aug. , Ten-Year
- 1906. Average.
Oats Off Over On Point.
The sverage condition of tha oata crop
on August 1 waa 82.8, as compared with
84 last month, 90.8 on August 1, 1806; 866
at the corresponding data In 1904 and a ten
year average of 84.8.
The following table ahowa for each of tha
eleven principal oata states the condition
on August 1, 1906, with the ten-year Au
Illinois 71 82
Wisconsin M 90
Minnesota 90 88 ,
Nebraska "$ 91
Indiana (7 88
New York 89 93
North Dakota . 98 82
Ohio . 77 90
Michigan 89 92
United States ( 82 8 84 3
The proportion of the oat crop of last
year In the hands of the farmera ia ostl
mated st 7.1 per cent, ss compared with
62 per cent of the crop of 1904 In farmers'
hands one year ago, 54 per cent of th
crop of 1903 In farmers' handa two yeara
ago, and a ten-year average of 7.1 per cent.
Other Grain Crops.
The average condition of barley on Au
gust 1 was 9"8. as against 92 6 one month
ago, K9 5 on August 1, 1IV6. 89 1 at the corre
sponding date In 19'4 and a ten-yttar aver
age, of 5.3.
The average condition of rye on August 1
was 90 8, as compared with 91.8 one month
ago. 92.6 on August 1, 91.8 at the corre
sponding date In 13H and a ten-year average
of 88 2.
The acreage of buckwheat Is less than
that of last year by about IS. 000 acres, or
3.7 per cent. The average condition of
buckwheat on August 1 was 98$. as com
pared with 926 on August 1. 1906. 92 6 at th
corresponding date In 194 and a ten-year
average of 93.1.
The average condition of tobacco on Au
gust 1 was 87.2. as compared with 66 7 one
month ago, M.I on August 1, 190S, 83 9 at
the corresponding date in 1904 and a flvs-
year average of 83 2.
The average condition of potatoes on Au
i gust 1 was 89.0. ss compared with 91.5 one
month ago, 87.0 on August 1, 1905. 94 1 at
the corresponding date In i:M and a ten
year average of &6.3.
Preliminary returns indicate a decrease
of 1 per cent In the hay acreage.
Browasoa Will G to 4sta.
WASHINGTON. Aug. 10.-When the
maneuvers of the Atlantic Beet Is com
pleted this formidable array of fighters l(
- t. rilaoersed Hear Admiral Rrnvna,,.
'will take some of lhe best armored cruisers
to the Asiatic station, while the other ships
will be sent to different places along ths
coast, the principal rendsvzoua of most af
tuem will be at iiauupton Roads.