Omaha daily bee. (Omaha [Neb.]) 187?-1922, August 05, 1907, Page 2, Image 2

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    TTE OMAHA DAILY I1EE: MONDAY", 'AUGUST ISCr.
great margin hotween tli price of mile
ni the price of flniKhej i.rodui-ts might
I ifrMnrn he attrll.uiahle efther t the es
tHhllshment of unduly low prl.es for crud.
nr to the esteliilanment t-f unduly hutti
l.rloee for finished proilint s, or lo both
combined. It I tmprn.lt.l., however, lo
determine precisely rmw fur the procurer
nd the consumer, respectively, are sf
fTted. There are no data by which to
rietermlne with certainty -what constitutes
a. fair price to producers; to do no would
require complete evldeno? concerning the
average ptorlts of crude-oil producer.
There la little doubt, howeyer. that In gen
eral the enclewlve margins extorted by the
Standard have been chlcOy an exploit
tion of the consumer.
Oil Baalneae Camples.
The petroleum business la hlKlily complex.
nd the atiirlj of rrlct movements requires
the conslrterstlon of very numerous f acton
There are a number of different kind of
prude oil. each commanding a different
price and yielding different products. From
every kind of crude at least several prod
ut are derived, and from some the num
ber is very ajreat. The products are sild
by different methods, and the prices which
they bear differ greatly In different lo
calities. Nevertheless, substantially cor
rect conclusions with regard to price move
ments can be gained from consideration
of the principal factors, excluding the
numerous minor factors which have, even
In the aggregate, comparatively little In
fluence. The year 1&& marks the culmination of
the profits of the Standard Oil company
on Its domestic business, and on its total
domestic and forelsn buslnpas as well. Th.
anthracite coal strike of 1902 caused a
shortage of fuel, which ld to an increased
consumption of Illuminating oil for fuel
purposes during the winter of 1002-f). The
price of illuminating nil rose greatly at
this time and drew the .' prices of . other
product with It, and to a less extent that
of crude oil. The occasion for these high
prices soon ceased, but though there was
some decline during the summer of 1903,
there was another marked advance toward
the close of the year, particularly In Il
luminating oil, the most Important prod
uct r
Margins Are Increased.
The Standard appears to have taken ad
vantage of the precedent established the
preceding winter to excuse an extraordi
narily high level of prices. The averag?
margin for Illuminating oil during the first
half of 19i4 was nearly a high as during
the first half of 18. Toward the middle
of 1904, however, prices began to fall. This
was probably due largely to the Standard's
fear that the continuation of such extor
tionate prices would tempt new competi
tors Into the Held. The development of the
new oil fields of Kansas, Texas and Cali
fornia at this time offered greater possi
bilities to : competitors than had existed
belore.
Notwithstanding the decline In prices
during the latter part of 1904, which con
tinued Into 1!S, the margin between the
price of crude oil and the prices of its
products was higher during Miu than it
had been in the earlier years covered by
the statistics. Thus the margin between
Pennsylvania crude and Illuminating oil
for 19u6 was 5.9 cents, as compared with
5.3 cents In WM and 5.2 cents in 1899. The
margin between the price of Pennsylvania
crude oil and the weighted average "price
of Its principal products for the first half
of 1901 was 7.7 cents, us compared with
6 cents for the year IRIS.
Standard Profit Enormous.
The nroflts of the Standnrd Oil company
re enormous, both In absolute amount
and In proportion to the Investment of
the company. As far as cun be de
termined from the available evidence,
moreover, the profits during recent years
have been much higher in relation to in
vestment than during earlier years, as
might be expected finrn the advance In
the margin- between the-prices of llnithd
petroleum products and prices of crude
U. ',
The Standard Oil company has never
made publlo reports of its business otiur
than its rates of dividends. Precise evi
dence regarding the profits or the Stand
ard from 1H82 to 1899 were, however, pra
sented In private law suit some tinto
ago. In the testimony before Judge Lan
lla In the federsl court at C hicago in
July, 1907, also, . Mn Pratt, secretary of
the Sandard Oil company, admitted the
mount of the profits, In round number,
for 1903, 1904, nnd 190G. On the basis of
these two sources of Information and of
the reported rates of dividends the fol
lowing table has been prepared, which
shows, as far as avnilnhle data permit
the rotation of the dividends a"nd profits
of the Standard, Oil enmpany and the pre
ceding Standard Oil trust to the Amount
of stock;; or -trim -OPimjlflciitea outstanding
nd to t.e, nvaiuf a.,eta:
w
as
S3
h
S 3
3
: N
m
Tar.
! I
ism.
lm.
ISM.,
1SK5.,
1KW,.,
isn..
If.
l"f-9.
1W0.
1M1.,
xl.
1M3.
18S4.
IRIS.
188U.
$71.11(1.100
TMS0.7C6
71. 830,700
7f,tS0.7i)0
7S.5n,fjn
90, 344, 10
W.Ni.MO
7,t;9,0
97.1(50.0. 4)
97,'50,XO
97.250.Wi
9Y,S!',0O0
I 8 CTf,
4.21.8.
4.IS8.
' 7,479,
7. VIM.
8,4mS,
i 13.7(6,
rss.oo
OSti.50
642.00
223.50
V,i.60
ta.m
OV.iO
HlO.Cfl
6.25
6.(10
600
10.50
10.00
io.no
11.00
12.00
1200
120U
12.21
12.00
12.00
17.ro
ltd
to?
f 12.3K8V7.1
11.231.790.66
7.778,26.73
8,1S2.:!S.60
15. S&O, 787.08
14,0irt.f!0.Wi
b, 220.965.94
14. '-46, 201.89
19,131.470.84
lfi.l.SSti.29
19,174.878.30
15.4n7.r.4.05
lo.644.325.64
24,078,070.00
S4,O77,5:V.10
i.m.
ll.lHN.
n.t-74,
11.1.70.
11.070,
1S.R32.
30,147.
225.00
CM. 00
OOO.cr)
&0.t0
ufO.00
31.00 I
Total to
IS,.
81(14,490,400.60
10.JiW.r30 70
32,OW,FO.n0
19, ITR.fn 0.00
8,W2.60n.OO
,,liV,OiU0
40,080.000.00
43,7t50.y
4:.77.61.C)
Si.401.7RS.00
39.356.3M.OO
39.386.3:0.00
I
I
$244.020, 48.5.64
14, 68,432.38
Average
to ltftki.
$i7.3;,70.1
97.2o!,000
97.J6e.0Ort
9T,IB,000
7.. 0,
97.;tv.ooo
97,L'M,0ft..
97.44,9H0
9S.S38,t'0
9tj.Xi8.Sii0
9S,3S8,300
12.60
33.00
.(
33.01
4K.no
4X.0O
4500
HOT...,
1X98...,
IK...,
1"0...,
1801...,
18....
Wi...
W4...
44.00 I
81.lO.VOO.00
61, fit'.( 00.00
&7,O0O.tO-00
3H.00
40.00
40.00
Grand
total
since
ISM..
Ki,t::,904.6
22.076.91Ms
Average
since
1882...
9:,4S4.874
24.16
Also stock dividend of 20 per rent, amounting to $18,028,200.
tlncludlug $3,4OT,ikO in Shares of Natural Qas trust.
Claims IHsproven.
Th representative and defender of the
Biautttttt- jh 4H.tipwuy, ad a correlative of
their unwarranted claim that It has been
th cause of the reduction in prices, make
the further claim that the Btandard a
domination of the industry today I due
to the fact that It furnishes producta at
reasonable pries and that the less ef
ficient Independent concerns are unable to
extend their business because they cannot
snord to sell so cheaply.
On sufficient proof that this argument
I not well founded Is found In tha sta
tistical " regarding price discrimination
which will 1 be presented later. It will b
shown that-the prices are very much lower
In place where Independent concerns sell
oil than In other places. It follows that
If th Independent com ems are able to
llv on the basts of tha prices which they
secure In their particular market, they
could make largs prortl if they could
market their oil throughout the country
god obtain average prices a high a the
average obtained by .the Standard on It
ewn business. -
Price Net Lower.
A further proof that, on the average, th
Standard price are not lower than those
whloh Independont concern can afford to
n.ak I found In a comparison of th
cost of independent concerns wit tithe
Standard's oust. The costs of th present
Independent cuncaro in th oil Industry,
fata
Cest Lehigh Valley I Scranton
til
0
August
. B. Cravens & o.
Tel. Doug. 317.
plus a normal rate of profit, are lesa than
tue costs of the 8tanderd plus its extor
tionate profits. This fact, wnlch Is clearly
demonstrated In this report, shows that if
the country were tipplll with petroleum
products wholly by trustier competing
concerns prices would be lower thsn those
the fiends rd rhsrg on the average. It
means that the Standard has pocketed the
profits arising from Its economies and
large additional monopoly profits besides.
The Standard's advantage over present
competitors Is greater with respect to the
pipeline business than with respect to
any other branch of the petroleum Indua
, try. There Is no doubt that a concern con-
I trolling an enormous pipe-fine system and
handling an enormous volume of oil can
do business more cheaply than a smaller
roncern. A comparison of the estimated
costs of pipe-line transportation bv the
: Standard with the costs of the Pure Oil
company, the most Important Independent
, pipe-line concern In the older oil fields,
I shows a very considerable, difference. In
, the local gathering of crude oil by pipe
noes me rtianoaro a operating costs are
estimated at not to exceed 5 cents per
barrel, while those of the Pure Oil com
pany (Producers' and Refiners- Oil com
pany, a subsidiary concern) are nearly g
cents per barrel.
I nfalr Methods. '
The difference In coste between Standard
and independent concerns In the market
ing of petroleum producta Is very slight.
Although by means of unfair methods of
competition the Standard has been able to
firevent Independent concerns from estab
Ishlng the system of tank-wagon delivery
as widely as they would have done under
I normal conditions, the Independents never-
ineiess market a large proportion of their
oil by this method. The accounts of sev
eral Independent concerns operating tank
wagon systems In large cities, suQple
mcnted by careful estimates by other sim
ilar concerns, show substantially no differ
ence between their costs and those of the
Standard. In six cltle for which ap
proximately correct data were secured the
tank-wagon marketing costs of Independent
concerns ranged from .88 cent per gallon
to 1.57 cents per gallon.
Considering all the branches of th oil
Industry together, the difference In cost
between Standard and Independent con
cerns Is not great. The difference In re
sfteet to pipe-line transportation may be
put at about It-cent per gallon: In respect
to refining, at from to H cent, while In
respect to marketing, there Is substantially
no difference. At the outside, the superior
efficiency of the Standard In the three
branches of the business combined " would
not represent a difference In cost of more
than 1H cents per gallon, on the average,
for all petroleum products.
The excess of the profits of the Standard
on Its domestic business ebove a normal
competitive profit la greater even than l't
cents per gallon. The profits of the Stand
ard on the aeflnlng and marketing busi
ness alone at five of Its plant (Lima. O. :
Whiting. Ind.: Sugar. Creek, Mo.; Neo
desha. Kan., and Florence, Colo.) have
been shown above to average about 1.3
cents per-gallon. If to this be sdded a
profit on pipe-line transportation, the total
would become at least 1 cents per gallon.
Profit Too High.
The profit of the Standard on Its In
vestment for the business of these five
refining plants wss found to be about 42
per cent, and It Is highly probable that the
Standard.' profit on plpe-ltne business Is
fully as great in percentage. ,
Forty-two per cent is at least four times
the average profit In a competitive manu
facturing business. If, therefore, the total
profit of the Standard on the producta of
these five plants was equal to 8 cents per
gallon, an average profit would be not over
cent per gallon. The excess of the
Standard's profit over an average competi
tive profit Is thus at least 2VL cents per
gallon nr much more than the possible
difference of m cents between Standard
and Independent coata. This means simply
that even If the products of independent
concerns cost them 1V4 cents per gallon
more than the Standard's product cost,
.they could yet make a good profit at
prices considerably less than the Standard
extorts; In other words, the Standard gives
the consumer none of the advantage due
to Its superior efficiency.
Again, the statistics of the Waters Pierce
OH comnany above mentioned show that
during 1903 Its average profit on the mar
keting of Illuminating oil In the United
States was 2.6 cents per gallon, and that
It made 4V per cent on Its Investment In
the United States. Had the Waters Pierce
been content with 10 per cent on Its capital.
It would have made nnlv 0.7 cent per gal
lon on the average. This excess of 1.9
cents per gallon above the amount neces
sary to give an average competitive profit,
occurring In the marketing branch of the
business alone, was greater than the dif
ference between Standard and Independent
concerna In respect to the onst -of all three
stages of the business pipe-line iranapor-
m
8- S 3 5
p. n i
3 V B
- s
5. M A
18
: s 5"
: aaa
$ 8,098,254. 18
6,91.704.06
3. t. 3..73
903.712.00
8.K4. 8T.t5.18
6,53.2a.4
2.621.400.44
4.224.67l'.39
7.9(11.3X1.84
4, tfS,(W.2
7, 0.6.53.30
3,787.354.05
3.S74.323.M
7.646.576.60
3,93c,019.10
$ 65,321. 832,4
72.8(,S9il.46 75.K58.9fl0.19
76.7li2.672.19
87,012,107.37
04.377.970.83
97,005.621.27
101, 281. 192. 6C
11S.810.074.50
12O.771.O74.70
128.105,428.18
m,886,7O0.G
135.705,449.44
143. 296.602.88
147.220, 309.90
19.0
re. 4
10.8
10.8
17.6
14 9
16.7
14.7
16 5
13.6
16.0
117
11.5
16.8
231
$79,530,025.14
5.302,401.68
15 3
U.J
100,222,112.26
38,400.000.00
2S.1C0.0..O.00
17.700,000.00
.
tation, refining and marketing which can
not exceed 14 cent per gallon.
The proof is therefore dear that the
enormous profit of the Standard Oil com
pany are due not merely to superior ef
ficiency, but also to monopoly power. In
dependent concerns could, if they had th
opportunity, afford to sell oil at price less
than the Standard charge on the average
In the country a a whole. Th Standard
Oil company give th public none of th
benefit of Its superior efficiency, but, on
the contrary, charge price higher than
those which would exist In the absence of
such a combination.
Thl comparison of Standard and Inde
pendent costs also confirms th conclusion
previously reached, that the Standard can
claim no credit for uch reduction in price
a ha taken place since the early history
of the Industry. If Independent concerns
can today sell oil profitably for les trin
the Standard charges. It follow thtt la
dependent concerns. In the absenoe of ai.y
great combination, could have reduced
price more than they actually hava. been
reduced. Thl conclusion Is th stronger
when it Is borne Iri mind that, had the
Standard never secured any such domina
tion In the Industry, there would almost
certainly have arisen a number of inde
pendent competing concerns In the oil In
dustry, each considerably more efficient
than even the mot efficient of th present
Independent concern. It would be absurd
.iu
Delivery.
Office 1805 Famam.
COAL s10!!
to argue that the Independents today are
more efficient by reason of the existence
of the Standard. iKiubtleas they have bor
rowed some Improvements whic.li the Stand
ard was Initiated. Just as, on the other
hand, the Standard hs borrowed some
which Independents hsve Initiated. Put, In
view of all the restraints which the Stand
ard bv Its unfair competitive methods has
plsced upon the development of the busi
ness of the Independent concerns, there
can be not the slightest question that under
a regime of free competition the Independ
ent concerna would have become more ef
ficient and economical than they are today.
l'flr Prartlrei.
It has been shown that the chief ad
vantage which the Standard has over In
dependent concerns in respect to costs Is
In the pipe line business. Transportation
of petroleum by pipe line la a oiiasl-nnhiin
' f''TT' corrrl,Pondlng to transportation
..7 i.uruBii. n is me nuty of transporting
concerns to charge reasonable ratea. It
Is the duty of the Standard pipe lines,
tinder the law of several states and under
the. federal law. to act as common car
riers, transporting oil for other at reason
fVle rates. If the Standard did this,
its advantage over Its present competitors
would be enormously reduced. As has been
shown In part 1 of this report, the Stan
dard pine lines have very generally failed
and refused to transport oil for others,
and In the rare rases where they do so
have charged altogether extortionate rates.
One of the principal advantages, therefore
which the Standard possesses over com
petitors In respec to costs Is an Improper
and evtn an Illegal advantage.
Extortion U Alleged,
Even by the aid of this advantage In
respect to plus lines, however, the Stan
dard, as hat Already been demonstrated,
does not, as a matter of fact, sell oil for
less than ltn competitors can afford to
charge. It ex a Ms a profit over and above
all the profits if. to Its economies. The
question arises how the Standard Is able
to maintain Its Substantial monopoly while
still charging such prices. What, It may
be asked. Is to prevent Independent con
cerns from either taking away part of the
Standard's trade or forcing It to reduce
prices? The answer to this question Is
found In the unfair practices of the Btan-,
dard.
The most Important of these, the corner
stone on which the Standard's power Was
first bUllt UP. Was railroad discrimination
The Standard waa able to maintain In posl-
..u.i 11... primary support or us domination
down nearly to the present time that Is,
until Its system of preferential freight
rates, secret or open, was exposed by the
report of this bure ttll on t h trnnannrtai Inn
of petroleum In May. 1906. The difference
unween me ratea cnarged to the Standard
by the railroads and the rates charged to
Independent concerns for similar service
has, In many cases and for enormous
areas, been alone greater than a fair
profit.'
I nfalr Methods of Selling;.
Almost VQUallV effective In maintaining
the Standard's position have been Its un
fair methods of competition In the selling
of products. 'The Immense Importance of
the practice of price discrimination in re
straining the business of competitors and
augmenting me aggregate profits of the
Standard will be set forth later. The
bureau has also secured a areat mn r.t
evidence regarding other unfair practices
of the Standard, most of which, however,
are simply auxiliary means of rendering
price discrimination effective. Thus, the
Dinura maintains Dogus independent
companies and thereby Is able to nn
the disadvantage due to anti-trust senti
ment, as well as to cut prices to the par
ticular customers of competitor without
incurring me iunner loss ot cutting prices
to the entire trade In the loc.Htv a..i
the Standard maintains an elaborate sys
tem of espionage on the business of In
dependent concerns. In particular securing
almost complete reports of their receipts
and shipments of oil by bribing railroad
employes. This practice enables the
Standard to direct its policy of local price
cutting In the most effective manner. Other
less Important methods of unfair ' com
petition pursued by the Standard are the
giving of short measure and deception re
garding the quality of the olkftold. .
without railroad discriminations and un
fair methods of competition the Standard
could never have maintained Its great pro-
pumun ji me 011 ousinrss in me l nlted
States, while at the. same time extortlnar
such Immense profits from the American
consumer. The claim of the Standard that
Its Control of the business Is due to Its
ability to maintain low prices becsuse of
superior efficiency Is a complete mlsrepre-
aciiiauvii va. tun . a 41 inu
TWO OUT FORSUPREME JUDGE
(Continued from First Page.)
called In to arbitrate th case. That one
would get off the track for-the other it
requested ' by the party leader Is taken
for granted, because the privilege 6f car
rying a banner to defeat I not highly
valued, and the failure of any opposition to
materialize against the republicans In many
Judicial districts Is accepted a Indicating
lack of spirit among the old "allied reform
forces." But even the democrat admit
that to force fusion with a club In th
face of a direct popular expression at th
primary poll against It would leave a
bad taste In the mouth, to say nothing of
It disorganizing and demoralising effeot.
News of Nebraska.
M'COOL JUNCTION The Blue River
bank has filed articles of Incorporation
increasing their capital to $16,000.
O8C10OLA Polk county has an assessed
valuation ot $3,773,040, and It will have to
pay to the state a taxes tha sum of $26,
411.2. UPLAND Th new German Lutheran
church two mile south ot town will be
opened on Sunday with services morning
and evening, and dinner on the church
ground.
UPLAND lat week th curfew ordi
nance waa put In effect tor the first time.
As a result, the street are remarkably
free from children after 8 o'clock, and the
citizen are congratulating th town board
on thl nw move.
BRAD8HAW The Flrt National bank
of Uradahaw ha purchased the Canfield
building In which is the Bradshaw Repub
lican office. The old frame building will
be moved and a large new modern brick
will be built for th bank.
OSCEOLA J. C. Arnold, ion of H, T.
Arnold, one ot th early aetller of Polk
county, died last week at National City,
Cal. He waa a graduate of Osceola high
school and a member of Osceola lodge No.
65, Ancient Free and Accepted Masons.
OSCEOLA There are two misses that are
candldatea before the primaries on th re
publican ticket. Miss Flo Detwelier and
Miss Ethel Blake for county superintend
ent of schools. Other candidates are: An
drew P. Buckley for county clerk, William
Harrier for sheriff, Claus H. Anderson for
county treasurer, and Henry H. Campbell
for county Judge.
NORTH PLATTE The Stat Junior Nor
mal school, which haa been In progress
here for six weeks last past, closed yester
day, when -the examinations were ended.
Fifteen received state elementary teachers'
certificates. The total enrollment ot the at
tendance reached 170. The normal waa un
der the management of County Superin
tendent Trotter of this county, and Dr. J.
A. Seattle, formerly president of the Peru
State Normal, was president.
UPLAND Th Upland Fair association
la applying for articles of incorporation.
The company ha bought thirty-four acre
south of town and will erect uitabj
buildings, grandstand, etc., and lay out a
race course and ball diamond. It I th
intention to hold a district fair here next
year. The directors are O. L. Campbell,
H. Roger. H. Shryock and L. Hlne. On
tart of the properly will be surveyed into
ot and sola to help defray expense,
UPLAND R. D. Choquett while return
ing from Campbell In his automobile had
a narrow escape from a serious accident.
While approaching the top of a hill some
thing went wropg with the machine and
aa th brake refused to work th auto
ran down the hill backward at a terrific
rat. Mr. Chooquett managed to keep It
In the road until rt swerved and struck
th fence, damaging the machine greatly
but fortunately not Injuring any of th
six occupant.
YORK So far York county ha th only
candidate for district Judge In thl Ju
dicial district. Mr. Fred C. Powers, on
of York's ablest attorneys, ha announced
hi candidacy for the republican nomtnet
tlun thl week and Mr. George Corcoran,
attorney, present court stenographer and
one time deputy attorney, I being favor
ably mentioned by democrat and populist
paper In th district as an Ideal candi
dal for nomination on the fusion ticket
for district Judge.
DEATH RECORD.
C. A. Bartlett.
PIERRE. 8. D . Aug. 4. tSpeclal Tele
gram.) C. A- Bartlett, on of th pioneers
of thl elty and th Black Hllla, long promi
nent In Hugh county politic, died at hi
kome in thl city thl morning after a
lingering Illness of mor than a year.
PROFIT IN NATIONS FORESTS
Great Wealth Taken rem the Treei,
While Timber Value. Eemaia.
MILLION AM) HALF IN TEAS
Far Bigsrer Retara z At Prsaleed
WifS Resalt f etfford Placket'
New Poller Are? Fally
Realised.
(From a Staff Correspondent.)
WASHINGTON. Ana- 4 (flrvectel.W The
national foreata which areea nriaHnallv des
ignated as forest reserves, promise to be
quite a profitable Investment for the fed
eral fnvHrnmnl a n rt IneManlallv frte the
people who form that government. It was
supposed, wnen the forest poncy was nrsi
established, that 'the result would Dimply
be the Ivlna- nn 'if vaat ante' nf wonrie4
land In the form of preserves, which should
be invaluable for any purpose wnatever,
but since the Hon. mffnrri Plnebot haa been
made chief forester, he ha determined that
millions of dollars can be annually taken
from the forest owned by the government
without destroying the timber value of
these growing tracts. It Is only" within a
year or two that any real financial return
have been received and, Indeed, th national
forests carcely pay the cot:of mainte
nance, but that will com later. The forest
aurveva have lust Issued a statement show
ing the result of their labor! from a finan
cial standpoint during the last fiscal year.
This statement shows that the total re
ceipt from business on the national for
ests for the fiscal year ending .une su were
$1,829,7.93, more than double the receipt
for the preceding fiscal year, and the um
which goes to the state and territories, by
law, to well the county scnooi ana roaa
funds where national forest are located
10 per cent of the total Is also more than
double, reaching the considerable sum ot
$158,991.79.
There Is food for thought In the fact that.
except for Arizona, California and trtah,
the state which derive the greatest benefit
from the return of forest management are
Colorado. Idaho, Montana, Oregon. Wash
ington and Wyoming, the six tate In
which ransrress last venr forbade the ad
dition of new national forest execpt by it
own act. A compared with tn figure ror
last vear. Montana' har. $2D,ffi8.42, 1 this
year over three time larger'. Idaho' $1,-
122.92, almost three time: Oregon s $15,
920.89, almost twice; Wyoming's $16,90,
about two and one-half times. ' -
' Hew Yukon . Boundary Sarver.
ptia r-A,ni mnv nt a. Canadian paper re
ceived In Washington,; contained a some
what sensational story which eem to
have ese.iped tha American newspaper.
tv,v waa in the form of special
dispatch frtrm Forty Mile, up In the Yukon
district, and was to the errect mat in
International ' Boundary commission had
discovered atV error In the Una of th 141t
meridian, which will result In the transfer
of a wedge-shaped slice of territory to the
ii..i,..Ti.vnn district, fram the authority
of the tKimlnroni government to that of
the United State. Th aiapaicn weni on
.av tbat thla wedg-haped strip be
gin with a thin dg.t-tne Yukon river
boundary and run oin everai nunumi
miles, malting the wedge grow wioer.
i. ....eta that th Poker creek
miner aaert that many mining claim
heretofore recorded aa being on mo
Canadian aide, may now be found on the
American .Ida. and that they will ask the
Canadian gtremJrt tor a refund of their
r-n a mhiI fees bald.
license, roy;"f '" ---- - .
The.c..lniagUb, ?t ,
claims -that thew dm..-.,
crosses the XlaskTif new copper field now
being exploited by the Guggenheim com
pany. - .. CUeretarv of
Tha attention , oi ---
. . n.iia a thl dispatch to-
dTy and h. wV. a".ked whether or not tha
aay . i.nrmil nn con
stat department na -v -
cerntn, thl. important oj'ry ot the
urveyor. To thl. Inquiry Mr. Ade. r-
P"-The fact 1 that former urvy have
been merely guesswork and th. lln. now
run follow, th. lt meridian .ocurat.Ur
The .torle that canaoa or
ia .ithee gain or loe territory
ar. entirely without ba.l. Neither country
will by any poibtiuy '" y
territory worth considering. Th line a. it
ha been thu. far run Indicate, only a dif
ference of from llv. to sixty feet from
the original guesswork survey. There have
t a win ha, no internatonal complica
tion growing out of th lino of thl. boun
dary Great Britain ana in
. .... ... .rrMd to tand by th di
visional line a It may determined by
th Joint commlMlon whicn i conuuci...,
th urvey. Thu. far, th original lln..
which wa practically Imaginary, ha been
proved almot absolutely correct and th
ir..nee will neither cause gain
or lo. to lther Cankda or thl country.
There will b absolutely no omerence .n
.K. lortadlntlon Ot th rpeciive govern-
meht over th mining or other clalmg In
th Yukan Valley a a rui ot in new,
urvy." ;
Ten t Pas to Twtl.
Tha issuance of th new $10 gold certifi
cate ha caused a great deal of annoy
ance and om loss to merchant through
out the country. In the city of Waahlng-
ton, where these new evidence of the gov-
nm.ni nhiiaatinn are Dcrhap mora com
mon than elsewhere, nu'merou oomplalnt
have reached the Treasairy department con
,...nin the danaer of Issuing notes Of the
mailer denomination o imllar In design
and color to those ot th higher. Mereto
fnr the "yellow back," o-called, ha
tood for a $20 bill and th .udden loosen
ing of thousand of dollar worth of fio
certificate led to many frauds, which are
the basla of th complaint A caaual glanc
at th back of th flO certificate lead to
tha Impression that .lt may be a ta and
numberless aharper hav profited by thl
fact through rushing into business placea
and asking fr"change for l. at th aam
tlm depositing on the counter ene of the
new ten. During the Jast week no less
than seven different buslnes house la
Washington hav complained that they
have been defrauded by tls mean, and
similar stories have come from other ec
tlon of the country". But th lasu ha.
already been floated and even if the Treas
ury department ehould Me its way clear
to call In the new bill With a view to
substituting for them a note less like th
20 bill than they are It would be difficult
to do so. In fact, It ha been th experi
ence In th paat that whenever an Issue
ha been called In. years' were required to
get the outstanding obligation all back
In th Treasury department. Th subject
1 likely to receive attention at an early
cabinet meeting, and It i mor than prob
able a chang In tn deslga may be ef
fected, or le that the color will be varied
ao a to reduce to a minimum all danger
of further fraud, '
Fa raker gttll Fighting.
Th Ohio political situation ha been
th aubject of serious discussion among
th politician ' in "Washington, even
though the "dog day" ar upon u. Th
failure of Secretary Taft to receive th
unantmoua Indorsement of th stat cen
tral committee at It recent meeting la
construed by his opponent to mean a
split In th republican party in the Buck
eye atat and th eventual llmtnatlea of
th war aecretary a a preaUerulal po.
slblllty. It means, according to these
knowing one, renewed factional strlf in
that stat which cannot but seriously In
jure th chance of republican success In
the presidential campaign In HOI and a
realignment of the forces now In control
of th grand old party." On the other
hand, the friends of Secretary Taft are
claiming a victory and are shouting hi
nam from the hill-top a th successor
of President Roosevelt. ,
Senator Foraker, Ilk a Roman of old,
refuse to be placated by a "sop," the
Indorsement of himself as his own suc
cessor In the senate, on. the ground that
the state central committee lacked author
ity to Indorse anybody, and that Its busi
ness Js fixed by party regulation, It being
but the servant of the master, which In
this Instance was th state convention
creating It.
"The power of a state central com
mittee vary in several states ltt which
I am familiar," said a United State sen
ator who wa in Washington thia week,
"but I know' of no republican state com
mittee clothed wlt:i power to Indorse can
didate prevlou to a atate convention, I
can conceive where a tate committee
might .want to express Itself upon some
particular feature of party ethics, or a
party policy, but the prerogratlvea of a
tale committee are limited to the power
with which it I clothed at the time. of
it creation. A state committee I but a
governing body In the larger sense and
really t an executive committee whose
power extend over from one convention
to another. It I the business of the state
central committee to conduct a campaign.
To arrange for meetings' and for speakers,
to arrange for the financing of the cam
paign and, when the smoke of battle lifts
to arrange for the calling of another
convention when, on the convening of thfct
convention, another state central com
mltee I. made. I do not believe It was
ever contemplated that a state central
committee could blaze a pathway for a
tat convention, and although I am a
sincere admirer of Secretary Taft and will
do all in my atate to secure a delegation
In hi. behalf, I think the friends of the
secretary will rue their work when thry
called upon tho state central commute,
of Ohio to Indorse William II. Taft a year
before the presidential contest begin. I
believe that Secretary Taft will wake up
some fine morning and In the language
of an older statesman say "God ave me
from my fool friends." "
Victim of Tainted Currency.
There died In the Philippines In the last
week, under exceptionally ad circum
stance, one of nature' gentlemen Eugene
Coffin, a major and paymaster of the United
State army. Major Coffin waa one of the
most efficient paymasters In the service and
he was marked for a splendid assignment
after his term in the Philippines by his
friend and admirer. Paymaster General Cul
ver C. Snlffen. Major Coffin, It is under
stood, died from the effects of blood poison
ing resulting from the handling of tainted
greebacks. His Is not the first case by any
manner of means, of men dying from the
handling of tainted money, but It does
seem that the life of a paymaster In the
army should be seriously taken Into ac
count by the makers of our laws and some
thing rhould be done at the next session
of congress to retire money that Is In any
way soiled.
Colonel Charles M. Whipple of the pay
department, a aon of Bishop Whipple of
Minnesota, who' wa associated with Major
Coffin, ald that while he waa In the Phil
ippines great quantities of money came in
from th English banks and when opened
emitted a tnch that almot paralyxed th
office force. They fumigated the bill a
best they could and In counting the green
back used on their sponge Materln and
carbolic acid. 4h beat known disinfectants,
but till, with all their precaution, If one
Of the cashier had a cut or the ellghtest
cratch on his bauds Injurious result were
bound to occur, becau of th handling of
this money.
England can give the United Btate card
and pade on the question of the newness
of It banknotes. No matter how bright
looking an English bankblll may be when It
appear In the Bank of England, It 1 Im
mediately destroyed and a new bill of the
same denomination and the same serial
number take, it place. We. in Wa.hlng
ton. being near the Treasury department
nd the place where greenbacks are made,
generally have new bill, but the peopla of
the wet, who ar under the dominion of
the national bank, get llver or tainted pa
per money In exchange for, their bright new
dollar. Th reason why silver is so uni
versally circulated among the communities
of th west and south la because the gov
emment paysh expreseage on silver cur
rency while the national banks throughout
th United States have to pay their own eet
pressage on paper currency, plu lnur
ance; It 1 !ly n how the national
bank, profit by thl. hocu.-pocus. In view
of Major Coffin's death. Isn't It about time
for the government to provide new paper
money for our long-aufferlng people In the
rural communities, particularly In th far
away Island, of the Pacific?
Ksnseaaiss's "M Stralarfct."
ot a Karjoenman, a resident of nilmore.
S. V., has a family of which he Is proud.
He. however, la not altogether familiar
with th great American game ot draw
poker, a lna letter addressed to in
tt Auditor of the Treasury Dept..
received today, ha cite the fact that there
are lx tn hi 'trlght." A six siraigni
may be played In Bouth Dakota, but it I
a decided novelty elsewhere.
Mr. Kappenman, the author or six neari
..In- that enrh
squeeers. nas an irnincr..,..
visit of the tork bearing In It bek a
male child, lx consecutive times, entitle
him to a cash bonus from th United States
treasury of 11,600.- Undoubtedly he needs
the money, as most any husband would
under the circumstances, but unfortunately.
except by word of mouth from President
Roosevelt, who so rrequenuy uro me
people of the United State to go forth and
multiply, there Is no appropriation in the
United Btatea treasury to reward wedded
couples who hav taken hi advice.
The letter of Mr. Kappenman of Hll-
more. 8. D., reached Auditor Andrews of
Hastings, Neb., who referred It to Auditor
Robert Person of Bouth Dakota. Auditor
Person will In all probability pa It along
to Oyter Bay and probably when It
reach th aummer home of the president
the chief executive will call the "sX
straight" by sending hi photograph with
an autograph attachment.
Korth Piatt Candidate File.
NORTH PLATTE. Neb., Aug. 4.-Bne-clal.)-Saturday
wa. the lest day to file
name of candldatea whose name ar to
go before the prlmarle. No democratic
ticket wa put up, excepting that James
White, a prominent cltlsen of Sutherland,
filed as candidate for county commissioner.
Two socialist expended the required fees
to get their namea on tha ballots. Robert
Douglas of Myrtle also filed his name as
a candidate on the republican ticket for
county commissioner. This brings a number
ot candidates for this office. Judge Grimes
will hav no opposition a candidate for
district Judge. Hi administration of th
office ha been eminently satisfactory to all.
The principal fight will center on tha
county treasurer, there being three repub
lican candidates in the field. Charles Rob
bins, the present county assessor; Ray C.
Langford. th present deputy county treas
urer, and Lincoln Carpenter, formerly
sheriff. Tb reault will probably be in
doubt upon thia office until the primary
vote ar counted.
Be Want Ad Ar Business Bootr.
ASSEMBLY DEFIES RAIN GOD
Dampneii Marf But Doei Not Prevent
Sunday Servioe.
DR. CLARK ON SECULARISM
Declare Mo Distinction gfcowld Re
Draws Between Harred arid .
eealar Matter. Every,
thlngt la Sacred.
MONDAY-Soclal Service Day.
9 A. M. Elementary Subbath school
work.
10 A. M. "Appreciating the School," K.
C. Knapp.
11 A. M "Bible Study." Rev. Din I el K.
Jenkins. Ph. D., of the Omaha Theological
seminary.
i:0 P. M. Mrs. Draper Smith of the
executive committee of th Omaha Social
Service club presiding. Lecture. "The
Juvenile Court." Judge Lee Kstelle of
Omaha.
lecture, "The Homeless Child." ' llev.
Father John Daly, rector of Boys' Homo,
Milwaukee, Wis.
Music by the Lincoln Male quartet.
8 P. M. lecture, "A Sample Case of
Humor." Strickland W. Olllllan of the
Baltimore American.
Music by tho Lincoln Male quartet.
Threatening rain failed to spoil Sunday
morning for the Rellevue assembly, ihoimh
the rain did fall later and mar the after
noon. Many were present In the morning
from Bellevue. Omaha, South Omaha and
j Council Bluffs to hear the sornun by Rev.
Henry Clark, D. D.
"Seek ye first the kingdom of God." was
Dr. Clark's text. The attainment of the
kingdom consists In doing the will of the
Father, he said. The kingdom Is not. as
some people' Imagine, their own church;
It I not coming through the multiplica
tion of numbers In any church.
"But wherever. In your church or mine,"
said the speaker, "Is found a man who Is
trying to do the will of God, according to
the light which he has, the kingdom of
God Is coming In his soul.
"I'd like to tear down tha barrier you
have built between what you call sacred
and what you call secular. There should
be no distinction; all life should be acred
Not that I d have you think any less of
the first day of the week, but I'd have you
think more of the middle day. No lecture
that Is not fit to give on Sunday I fit to
give on any day; no lecture that I not
fit to give In a church la not fit to glv
In any building. Not that I'd hav you think
less of what you call your soul, but more
of what you call your mind and body. I
think It Is best not to tell th children
they have souls, but that they have souls
and have bodies, and In both the kingdom
1 found."
Personal Element In Preach In.
Dr. Clark dwelt on the Importance of the
personal element In lecturing or preaching,
or In any other mean man use to Influence
men. He spoke of the life of Jesus as one
which would lead men to take Him at His
word If they but got In touch with His
personality "Our Lord and Master was the
best mixer that this old world has ever
known." he said. "The disciples and Mary
and Martha and others round-about did
what He told them without question be
cause of the strength of HI wonderful
personality. If you want to do the will of
God you will have to do a Jesus say,
simply because He tell you. You and I
can do God's will only aa we come under
the personal Influence of Jesus Christ. We
have to be spiritually hypnotised by
Christ."
At noon Sunday school wa conducted by
E. C. Knapp of the Hartford (Conn. School
of Religious Pedagogy. There were ' aa
many grown people 'as children In attend
ance. In th afternoon Rev. 8. D. Dutcher, pas
tor of the First Christian church of Omaha,
delivered an address on "The Value of
Christian Character to the World." In the
evening J. P. Bailey, atate secretary of the
Young Men'. Christian association, gave a
stereoptlcon lecture illustrative of th work
of the association.
One of the big attractions of the course
is scheduled for tonight, when Strickland
W. Glllllan, the humorist of the Baltimore
American, will lecture, on "Sunshine and
Awkwardness."
CHURCH IS FIFTY YEARS OlD
Fremont ConrreaatlonaIlats Celebrate
Their Seml-Centennlal.
FREMONT, Neb., Aug. 4.-Speclal.) The
Congregattqnallsta. Friday evening, began
tha celebration of the fiftieth anniversary ot
the founding of the local church by rec
ognition service and rededlcatlon of the
sacred edifice. Long before th hour fixed
for the service nearly alt the seat were
occupied, and many, unable to gain admit
tance, contented themeelve with a view of
th new organ, th harmonious decoration
of the wall and brilliant light from the
doorway. Tha music wa under th di
rection of Mr. A. E. - Plambeck, organist
and chorister. "Gloria," from Mozart'
Twelfth Mass, was given under th leader
ship of Prof. Week and wa followed by
the recognition service by tha pastor, Rev.
W. H. Bus.
D. V. Stephen' delivered the "Salutation
of the City." He referred to the age of
the organisation, the oldest church in the
city, to Its embracing within its limit
people of all creed and to It early use
a. a courthouse, public school, council
chamber, and that its founder dedicated
It to th service of man. Hon. George L.
Looml responded on behalf of the church.
He spoke briefly of th early history of
Congregationalism in Nebraska and of Rev.
Reuben Gaylord, who "brought Sunday to
Omaha," and of Rev. Father Heaton, who
organlxed the church on August, 1S57, with
but aeven members. A reception followed
th service in th church. Th pastor,
Rv. W. II. Buss, and wife; Hon. E. II.
Barnard. . who Is the only surviving orig
inal member, and other early member of
th church, former members and church of
ficer, all numbering nearly 100. stood In
th receiving line and received the congrat-
rf
I find' tomi doalers arc soiling hard
coal at less than $10.50. To moot this
competition until further notice I will sell
hard coal at
TOM COLLINS HAVENS
'Phone Doug. 630. 1507 Howard St.
WAUL PAPER. BARGAINS
SEC OlR SHOW WINDOWS !
RUTHERFORD 5c JENSEN
, . Phoiv IWaiaa , - - 1410-IJ Harney Siw.-."
ultlon of the member and visitor.
Among the visiting clergymen wrr lr. H.
Bros of Lincoln. Rev. M. B. Harrlsoh ! ,
Scribner. Rev. J. Axtell of Blair, Dr. A. T.
Swing of Oberlln Theological seminary, a
former pastor, and Rev. J. H. Chase ot
Iowa and Rv. John !onn of Lincoln,
former pastors.
The Jubilee services will be continued to
morrow. In the morning at 10 o'clock
the dedication of the new orgnh and an
niversary sermon by the paator. In the
afternoon a "Service of Memory" will l
held, at which there will be addresses upon
the founder of the church by Rev. Isaac
F. Heaton. Rev. 1. F. Itcrry and other
who were active In Its work.
Hla-hwnr Robbery nt .North IMatte.
NORTH PLATTE. Nch., Auk. .-3p
rial.) The preliminary hearing wa held -In
the county court Saturday morning In tJi
rases wherein four hnhoes, who gnve t'v
name, of J. W. Wade, Clarence David,
William Douglas nnd Fred Williams, wore
charged with highway robbery. , The evlI
deuce was to the effect Hint i these,', four
forcibly took $10.10 fronv tho complaining
witness, Henry Gph, and then, gave 0
cents of It lo Frank Fremnn lo keep Mm
from telling. This occurred within about
two miles of the west lino of LlncoLuj county
along the Union Pnclftr railroad. Qoph an l
Freman are also hoboes. None of the do
fendsnts had attorneys, but ph-arici'. tbelr
own cases, and the evidence showed Iholr
guilt. Wllllnm Douglas nnd Fn-d Wllllairs
asserted that they were not yet U ye.nr "
old, so the court sentenced theiif to tho
reform school at Kearney, whl'e 1 lie other
two were bound over to the district court
to answer the felony ch.srw.. Thelr bull,
as well as that of the cnmplnlntng wilncf
and Frank Freman, wss fixed nt J51. which
they were unable to give, and were accord
ingly put back In Jail.
Coal Discovered ftear Krpabllcaa,
ALMA. Neb.. Aug. 4.-(Sieclal.'l-A vein
of coal, beside Indication of other Valua
ble mineral deposits, has 'been discovered
three miles southwest of Republican City.
The discovery was made by 8. O. Baker on
Dr. B. M. Baker's farm, and an expert 4
engineer from Pittsburg, Pa., ha looked
over the property and pronounced the In
dications good, both on the Baker and Mo
Clellan farms, near Prairie Dog creek.
The outcropplngs of the coal can b
een aloug the base of Indian hill and tha
seam Is from eighteen Inches to twenty
six Inches thick. It I overlaid with a
layer of slate, and beneath, I a tenfrot
layer of bituminous clay, saturated with
asphalt. There Is also a layer of cement
rock three feet thick, suitable for making
th best quality of Portland cement. . There
Is also a quantity of moulder' sand, an
abundance ot gypsum and Indlcatipna of
Iron pyrltea.
According to the engineer' estimate the
amount 6f coal will reach ha)f"a million
tons, and saslly gotten at. A movement
to Interest local capita) and form a com
pany 1 already on foot.
oeltt, lodge and kindred, orga'ulz.v.
tlona find It to their advantage to keep a
savings account with the City .flavlng
bank. . , ,
Eastern Trains for Western Folks '
leave Chicago dally over Pennsylvania
Short Line, 8:15 a. m., 10:06 a. m., 11:00 a.
m., 1:45 p. m., J;15 p. m., 6:30 p. m., .10:00 p,
m., 11:46 p. m. For details write or call on
Rowland, 26 U. 8. Bank Bldg., Omaha.
a, a, 4 and o-Hor Kvonora
For SULKY, 6AN6 anil DISC PLOWS
Aak Your Dealer for "Helder'
Evenera, or Write Us
HEIDER MFG. CO..
Mfn. of all kinds ot gratters, taddns, Ma
Dept. B. CARROLL IOWA.
bare ao equal In the market.
HOTELS AND SUMMER RESORTS
at.
vrjnM. ...
Hotel Kuppcr
lit aad MeO,
KANSAS CITY, M0.
t ke atrplC Xhrtrlo.
Ken an th h
00 fcenatlfnl Heoana.
104 private batha.
slot and oold water fa aS
paotou Usfcy, part era.
Tslevkoa la rry rmss,
ftenutifu! Oaf, erf act Calais..
SI to S2.50 Par Day
KOrnXBENSOl BOTH CO.
T. A. BUjTBOjT, Met.
Per SPOT CASH
Tea Immediate Delivery
a 'JtJSW'5f.
; rTi' ,vf
ML