Nebraska Newspapers

    N,
The Omaha Daily Bee
THE OMAHA DEE
a clean, reliable newspaper that Is
admitted to rach and erery home.
WEATHER FORECAST.
For NfbrRKka Snow and colder
For Iowa Snow and coldor
For weather reiwrt see page 3.
VOL. XAXIX-NO. 159.
OMAHA, HU DAY MORNING, JANUARY 14, 1910-TEN PAGES.
SINGLE COPY TWO CENTS,
REID OUT OF
UOCJUSLAND?
Rumor that Hit Holdings of Preferred
Big Steamship
is Damaged by
Heavy Storms
Hamburg-American Liner Loses Fort
Rail and Five Passengers
Are Hart
TO REORGANIZE
THIRTY DEAD,
ONESURVIVES
Steamer Czarina is Wrecked on Spit
at Entrance to Coos Bay,
Oregon.
DRIVEN ONTO BAR BY STORM
THOSE COMPANY
Committee of Five Mien Appointed to
Stock Are Taken Over
Fut Omaha Independent Plant
on Its Feet.
e
-7.
AGREEMENT FOR BONDHOLDERS
r
Moore and Fi
WALKER HEAD OF 1
Former Assistant Counsei
Holding Compan)
ALSO CHAIRMAN OF
V v
J
Mr. Rcid to Remain Director in Each
' Corporation.
ECHO OF RECENT MANIPULATION
rrriMcnt of Wall Street Eirhiage
Huyn execution of Ilia; Order
Could Onlr lilstnrh
Market.
NICW TOKK, Jan. IX Important
'dimmed aro pending In ths Rock Inland
company and Its affiliated properties other
than the announced elevation today of Rob
ert Wiilker, former assistant general coun
sel of the Chicago, Rack Inland &. Pacific
railway to the prenldincy of the Rock Inl
and company to succeed Richard A. Jack
eon, resigned.
These changes, It la said on high author
ity, Involve the taking over of Daniel O.
Reld'a holding! of Rock Inland preferred
stock by prominent banking Interests act
ing In . conjunction with certain foreign
flnanclera. According to well defined Infor
mation William II. Moore of the Rnnlt
Inland company la conducting the negotia
tion! for the banker! and the consumma
tion of the deal will carry control to Mr.
Moore and the proponed new Interests.
Varlout reports in connection with Mr.
Jackson's resignation were current, but
no confirmation wan obtainable In official
quarter!. It Is generally believed hla re
tirement resulted from a rupture of hi!
hitherto friendly relations with Mr. Reld.
' Held Practically Retired.
Mr. Walker succeeds Mr. Reid as chair
man of the board of the Chicago. Rock
Island and Paclflo company, but Mr. Reid
remains as director of the Chicago. Rock
Island & Pacific company and of the
Rock Island company.
The elevation of Mr. Walker coincident
with the suspension of the member! of
tho Stock exchange for their participation
In that t-'.OOCO share market order that sent
Rock Island up 81 points In a Jiffy, la
taken to mean that William H. Moore in
the future will be In more, active direction
of Hock Island affairs.
Thd supposed difference between Mr. Reld
and Mr. Moore are said to have some con
nection wtlh stock exchange transactions.
Brokers Are Suspended.
The suspension of O. B. Chapln and F, D.
Countlss were announced from the stock
exchange by President Thomas today.,
Accompaiiyjng; -the- announcement waa a
statement by the governors of the stock
exchange, who, after reciting that the of
fending firm had received an order for
the purchase of the 40,000 shares of Rock
Island itock and gave It out to other
brokers to execute, said:
"Tliat Bald flim and members thereof
should have known that execution of an
order In such a manner could serve no
proper or legitimate purpose; that It would
cause panic, confusion and loss, and deprive-
the quotations of transactions from
the exchange of their value as standards
of the real market value of securities.
"That tho execution of said order In
said manner by said flim constituted a
misuse by them uf facilities of the ex
change and was an act detrimental to the
Interests and welfare of the exchange."
KCHIFP LEA VES I .MOS PACIFIC
Succeeded on Board hy Otto H. Kohn,
Netv York Banker.
r.vv YORK, Jan. 13.-Jacob H. Schlff
has resigned from the executive committee
anil directorate of the Union Pacific and
Southern Pacific companies. Mr. Schlff Is
succeeded on the Union Pacific board anil
txecutive committee by Otto H. Kuhn of
Kuhn, Loeb & Co., and on the Southern
Pacific executive committee and board of
directors by Mr. Schltfs son, Mortimer L.
Schlff.
Mr. Schlff also retired from the executive
committee and directorate of the Oregon
Short Line, where his son also succeeds
him.
The Oregon Railroad and Navigation
company"! directors have elected William
Mahl, the comptroller, to tho vice presi
dency, to fill the vacancy created by the
election of Mr. Lovitt to the company's
presidency. New directors chosen to the
board of that company aro Mortimer I
Schlff. Otto H. Kuhn, R. U Gerry and
Wllllart Q. Rockefeller. These, with Henry
C. Frlck, were chosen to. the executive
committee, which was Increased from five
to seven, Messrs. Lovett and Mahl being
the other two members. (
Merer!. Rockefeller and Kuhn were also
added to the Oregon Short Line directorate
and executive committee. '
FORMER OMAHA PASTOR IN
FIELD WORK FOR COLLEGE
RT. A. C; Christy Drown Elected to
Responsible Place In Wiscon
sin School.
WAUKESHA. Wis.. Jan. lt-(Speclal.)-ReV.
A. Christy Hrown. D. D., formerly
superintendent of missions In North Dakota
and recently connected with Jamestown
college, haa been called to the position of
field representative and special lecturer of
Carroll college and entered upon his du les.
Dr. Brown Is a graduate of Western Re
serve college and Union Theological lumi
nary and haa held pastorates In Peoria, 111.,
and In Omaha. He Is a man of large ex
perience In educational work and Is ex
pected to become a great factor In the
further development of Carroll college,
ehlch has large plana for the Increasing of
Its endowment and erection of new build
ings. Dr. Brown will co-operate with the
board of trustees and the president of the
college in developing these plana Hla fam
ily li at present In Fargo, N. D., but will
later move to Waukesha.
WARN EffS NAME TO SENATE
President Taft Nominates Vultcd
Matea Marshal for Sec
ond Term.
WASHINGTON, Jan. U.-Special Tele-gram.)-Presldent
Taft sent to the senate
today the nomination of William P. War
ner of Nebraska to be United States mar
shal! for the district of Nebraska.
PLYMOUTH, England, Jan. 13. Captains
of steamships arriving from the westward
Vtport the severest weather during the last
veek that has been experienced In a trans-
lantlc voyage (or a long time. 80
i be learned none of the linen la
Bo far a!
making
, .iedule time,
NEW YORK, Jan. IS. Wirelesa reports
received here today Indicate that the At
lantis Steamship line Is swept by severe
storms which have worked havoo to at
least one ocean liner.
The worst sufferer from the wild weather,
so far as reported, li the Hamburg-American
steamer Kalserln Augusta Victoria,
which, according to the dispatches, put Into
Plymouth with Its port rail torn away for
a distance of fifty feet by a wave that
caught and threw down a score of passen
gers who were on deck, five of whom were
quite badly burL
The giant comber almost threw the ship
on Its beam ends, but It rose to the attack
of the seas and rode out the rest of the
storm without further injury. Its captain
declared the tempest the worst he had ever
encountered.
Another vessel In the track of the storm
Is the Cunard liner Lusltanla, due here to
night, but reported running through heavy
seas and twelve hours late.
Wanted to Elope,
Takes Army School
Harold Pritchett Compromises with
His Father and Goes to Jeffer
son Barracks Academy.
ST. LOUIS, Jan. 13. (Special.) Former
United States District Attorney George K.
Pritchett of Omaha, Neb., arrived in St
Louis yesterday with his son, Harold Prit
chett, and put the lad In. charge of the
authorities at Jefferson barracks In an ef
fort to keep the boy from getting married.
Harold, who Is 18 years old, was restrained
with difficulty from eloping at Omaha, and,
according to hla father, desisted from his
desire only on one condition that he be
allowed to enter West Point.
I Aa a result of his son's decision, Mr.
Pritchett secured his appointment to the
Military academy, and yesterday arrived
with young-Pritchett and personally took
him to Jefferson barracks, where he began
his entrance examination test. The elder
Pritchett waa formerly a captain In Com
pany E, One Hundred and Twenty-sixth
New York Infantry, and saw service dur
ing the civil war.
Federal Control
of.Open;Range
Live Stock Men Endorse Pinchot Over
Protest of Colorado
Delegates.
DENVER. Jan. 13. The National Live
Stock association at Its final session today
overwhelmingly declared In favor of fed
eral control of the open range. Despite
the proteests of Colorado delegates the
resolution commending the administration
of Glfford Pinchot and advocating a range
lease law under federal control was
adopted.
Resolutions condemning the Payne tariff
law, advocating the Increase of power of
the Interstate. Commerce commission and
the fixing of a minimum speed limit for
stock trains were also adopted.
No Change in
Forestry Policy
Prof. Graves Expresses Himself in
Favor of Methods Used by
Pinchot.
NEW HAVEN, Conn., Jan. 13. Prof.
Henry S. Graves of Yale, newly appointed
national forester, today expressed himself
In favor of the policy pursued by Mr. Pin
chot as chief of the forestry service. 80
far as he knew, there would be no re
organization of the service, said Prof.
Graves. His only policy waa the conserva
tion of the public resources and this was
being done.
C. H. DIETRICH WILL SOON
LEAVE FOR WASHINGTON
Ex-Senator Much Improved, bnt Will
Meed Complete Rest for Sev
eral Months.
Former Senator Dietrich, who has been
at the Methodist hospital several months,
will go to Washington next week to remain
there until summer. Although much Im
proved In health his physicians' have pre
scribed complete rest for several months
to prevent a recurrence of his recent col
lapse.
Divorced Patriarch Finds
Wife Has Wed Another
A man of advanced years walked Into
the office where Charles Furay, marriage
license clerk, dispenses at $2 each, permits
to endow a girl or widow, or divorcee with
all one's earthly goods.
The Patriarch wore a brown overcoat, a
long white beard, and a perturbed expres
sion. He stood first on one foot, then on
the other. His manner was decidedly
fidgety. Finally he spoke:
"Kin you tell me, young feller, If Mrs.
Lydy Heckler got a license to wed today T"
Mr. Furay consulted the book and re
plied: "Yes, Mrs. Lydla Heckler, aged W and
James Raynor of Hillside, aged 76, are duly
authorized to hitch up."
"Well I swan." murmured the patriarch
In pensive soliloquy. Then he departed
without vouchsafing his name. It Is sus
pected that he Is the first husband of Mrs.
Heckler. The two were divorced, two years
ago.
Waves Break Over it and Crew Takes
Refuge in Rigging.
DROP INTO SEA ONE BY ONE
First
Assistant Engineer
Ashore on Plank.
Drifts
LIFE LINES ARE TOO SHORT
All Efforts Prove Fntlle and Crotvd
on Shore See Benamhed Me
Fall Into the Icy
Waves.
x MARSHFIELD, Or.. Jan. ll.-Another
tragedy of tha sea haa been written Into
the records of marine disasters on the
grim North Pacific coast, through the loss
of the Iron steamer Ciarlna yesterday
afternoon on the north spit of tha Cooa
bav bar. with a loss of thirty, Uvea.
A solitary survivor. Harry Koniel, first
assistant engineer of tha wrecked vessel,
Is the only living testimonial to heroic
efforts made by the United States Ufa
saving crew and citizens of Marahfleld to
help the doomed strip's company.
Kentzel's escape last night Is a wonder'
ful story of man's endurance and physical
strength. When the ship piled on the
rock, with six or seven others he Jook
to the rigging of the foremast. See. after
sea smashed over the vessel, the decks
were awash and wreckage was floating-
about Suddenly a tremendoue sea swept
the ship and Kentzel and his companions
were washed from their places. Kentsel
was swept toward land, but time and
again he was carried out to sea by shift
Ing currents. He managed to get hold of
a piece of timber and waa slowly driven
shoreward.
As he neared the bench he could see
the rescuers. Then consclousnosa left him
and he knew nothing more until he came
to on the beach beside a big fire. He had
been broifght back to life after several
hours' vigorous treatment. He Is In the
hands of physicians and tonight Is on the
road to recovery. Kentzel lives In Son
Francisco. ,
Six Survive Night.
When darkness fell last night it waa be
lieved that all on board the Czarina were
lost. The boiling combers dashed over the
vessel and It seemed that no human being
could live through the terrible night. But
when the first gleam of dawn came those
on the beach described six forms in the
rigging of the only remaining mast and
hope was renewed that the day would
bring theit rescue. But the gale showed no
signs of abating. Suddenly one of the six
men dropped into the sea.
Soon aonther surrendered and then a
third was seen to fall Into the water.
A little later and the watchers on shore
saw through their glasses the last fight of
brave men facing death. As if by agree
ment they began to rid themselves of their
heavier clothing and then together- they
sprang Into the boiling sea. They were not
seen again.
The identity of the six who survived the
terrible night never will be known defin
itely, but it Is believed they were Captain
C. J. Duggan of San Francisco, Second
Mate John McNlchols of San Francisco,
First Officer James Hughes of San Fran
cisco, Harold Mlllis, the only passenger,
son of General Manager C. J. Millis of the
Southern Pacific company in Marshfleld,
and two sailors.
Start Hade In Storm.
The Czarina left here yesterday after
noon in the face of a storm, bound for San
Francisco. It had braved many gales and
the commander apparently saw no reason
for delaying Its departure. He wished to
take advantage of the tide and steamed
slowly down the bay toward the bar, a few
of young Minis' friends and friends of
the crew remaining on the wharf to wit
ness Its passage over the bar, which was
breaking badly.
Suddenly a series of big seas struck the
vessel, pitching It about, but It continued
to fight Its way on .toward the open sea.
Then something happened. What It was
will never be known. The vessel appeared
to stop and sea after sea struck It, some
waves piling over Its decks. Then it be
gan to drift rapidly toward the ugly North
spit. It is probable that something went
wrong with the rudder, as the ship seemed
to be beyond control. Then its anchor waa
dropped, but it would not hold, and with
Its rudder out of commission and big seas
pounding It, the Inevitable happened. The
ship struck the spit and there it hung.
Life Lines Fall Short.
Newa of the disaster spread quickly and
In a few moments the beach was lined
with people. The life saving crew was no
tified and a tugboat waa sent out, but no
boat could approach near the vessel and
keep afloat The life aaving crew made
several attempta to fire life lines over
the steamer, but all fell short When dark
ness came virtually all hope that any
would be saved was abandoned.
A little later, In came J. Herbert Kough
of Omaha. Mr. Kough was seeking a li
cense to marry Mrs. Anna Kough. A di
vorce decree severed these two, but life
apart is deemed unhappler than life to
gether. County Judge Leslie performed
the re-unltlng ceremony.
A third visitor of the day waa a young
woman, who came to hand Mr. Furay $1,
cash in coin of the realm.
Not long ago an Impecunious bridegroom-to-be
with more devotion than ducats waa
getting a license at 4 66 p. m. When it was
necessary to hand over $2 for the permit
he was unable to come through. He was
to be married that evening and, so for the
first time, the obliging Mr. Furay broke
hla rule not to lend Impecunious bride
grooms the price of a license. The II has
thus been bald back by the groom, but the
query arises, baa the clergyman yet got
hist
1 i
Will it Be a Case
From the Philadelphia Record.
LAMPpERE TELLS OF CRIMES
Accomplice of Mrs. Gunness Describes
Methods of.Mnrderess.
ADMITS HE KILLED WOMAN
With Companion He Chloroformed
Her and, Children and Bnrned
House by Accidental Spark
Set by Candle.
ST. LOUIS,' Jan. IS." fty; Lewtphere. who
died recently in tho Indiana penitentiary
at Michigan City while serving a life term
for complicity In the murders on the farm
of Mrs. Bella Gunness, near Laporte, Ind.,
did not carry the secrets of the Gunness
charnel farm to the tomb with him, ac
cording to a, copyrighted story Id the Post
Dispatch today. When he believed death
was near he confessed.
The confession was made to Rev. Dr. E.
A. Schell, formerly pastor of the Laporte
Methodist church, now president of Iowa
Wesleyan university at Mount Pleasant,
la., and held by him Inviolate as a secret
of the confessional. The Post-Dispatch
saye Rev. Mr. Schell would verify, If he
would consent to break the silence, the
oonfesslon It publishes. The Post-Dispatch
however, says the confession It publishes
was made to a man of unassailable char
acter. Lamphere, according to the oonfesslon,
had a guilty knowledge of the murder of
three men In the Gunness home during the
time he lived there, about eight months in
1907, and he assisted Mrs. Gunness in dis
posing of the bodies of the three men.
Chloroformed Mrs. Gnnness.
He said ne thought he had not received
as much of the profits of 1 the transaction
as he considered himself entitled to and he
went to the house at night with a woman,
chloroformed Mrs. Gunness, her three chil
dren and Jennie Olson. He and the woman
then searched the house, finding between
00 and 170.
The light they used was a candle and
they loft the house' without knowing they
had left behind a spark that soon burst
Into flames.
Mrs. Gunness' method of killing her vic
tims, Lamphere said, was- first to chloro
form them as they slept and then If the
drug did not Itself kill to sever the heads
with an ax.
Each time a man was to be murdered,
according to Lamphere, she sent him to
purchase chloroform.
Lamphere said he saw one of the men
killed and aided In burying all three. These
men were Andrew Helgeleln and probably
old Budsberg and Tonnes Petersen Lien.
Lien, Lamphere thought, was the third
husband of Mrs. Gunness. At the time of
the Lamphere trial It waa thought Jennie
Olson had been killed by Mrs. Gunness.
Lamphere, however, details how Mrs. Gun
ness had secreted her In the house after
she returned from a visit and she was
chloroformed by Lamphere and hla accom
pi ice.
First Victim from Minnesota.
The confession sayi Mrs. Gunness In
formed Lamphere of the coming of her
r
(Continued on Second Page.)
Let us help you
find the room you
want.
On the' Want Ad page of
The Bee you will find a list of
practically every vacant room
in Omaha. The people who
have rooms to rent are learn
ing that the way to secure ten
ants is to advertise the rooms
in The Bee.
Have you read the want ads
today
of "The Bigger the Man the Bigger the Stick?"
NorfolkMayor
in Ouster Suit
Just Like Jim
Fellow Democrat Charges Mayor Fri
day with Failure to En- ,
force Law.
NORFOLK, Neb.. Jan. 13,-f Special Tele
gram.) The filing of a demand withCSov
eroor Shallenherger by AMwrtsCJS a
local building contractor, calling for the
ousting of Mayor John Friday of Norfolk,
today caused a political sensation here.
Morrison alleges that Friday has failed to
enforce laws providing for the suppression
of disorderly houses. The state law pro
vides for the removal of a mayor neglect
ing to enforce the law. Morrison also filed
complaints against four alleged owners of
Norfolk houses, rented for Immoral pur
poses. He claims to have evidence. Morri
son and Friday are - both democrats and
Morrison claims to be friendly personally
to the mayor. The alleged owners com
plained of are Fern McDonald and the
Eble estate of Norfolk, A. It. Walters of
Bloomfleld, Louis Sheldon of North Plutte.
Farmer Killed in
Fight with Knives
One Man Disembowels Another in
Drunken Row at Aber
deen, S. D.
ABERDEEN, S. D., Jan. 14. (Special Tel
egram.) In a drunken row on the Beard
farm,- two miles east of Aberdeen last
night, Charles Storch, aged 40, a renter,
dlBembowled Robert Franke, a farm band,
aged ?5. Franke died In a hospital here
two hours later. Storch and Monka, an
other farm hand, the only witnesses to the
killing, came to town and gave themselves
up to the sheriff. Storch, who Is a small
man, claims Franke waa getting the best
uf him when he seized a butcher knife
and bade Franke keep off. He claims
Franke stumbled and fell on the knife
Jealously Is alleged to be at the bottom
of the trouble. Storch is married and has
four children. Franke Is single.
CONGRESS NOTJOR ESTRADA
Resolution to Recognise Iniurgenl
Leader aa President Is
Tabled.
WASHINGTON, Jan. 13.-Congress will
not direct the president to recognize Gen
eral Estrada as president of Nicaragua
The house committee on foreign affairs to
day laid on the table Representative Sul
zer's resolution providing for Estrada't
recognition as the "legitimate" president.
River Near Flood Stage;
Break in Gorge Only Hope
6T. LOUIS, Jan. 13 The Ice gorge which
broke In the Missouri river at Hermann
last night reached St. Louis this morning
at 8 o'clock. Hetween 7:30 and 8 o'clock
the Mississippi river here rose more than
a foot and the gauge stood at 2S.7 feet.
The gorges below the city continue to
hold and damage to shipping may result
from the Ice and high water. The danger
stage Is 30 feet.
The weather bureau notiflul business
houses along the river that the flood stage
is likely to be reached within twenty-four
hours If the Ice below St. Louis does not
break. There Is a possibility of the gorge
breaking.
The ferry boat Madison at Venice, III.,
waa sunk by the gorge coming down the
river. The wharf boat was torn from the
moorings and floated down the river.
The gauge here stood at 27 feet at 9:30
o'clock, a rise of 1.3 feet In an hour.
TOPEKA, Kan., Jan. lJ.ttrldgis across
FIGHT ON FEDERAL LICENSE
Administration Corporation Bill Will
Require Active Backing.
MUST DEFINE RIGHTS OF STATES
Congressmen Will Demand Clearly
Defined Limits Where National
ised Concerns Are Affected
by State Rrarnlatlona.
WASHINGTON;- Jan.-18. Now- that the
main features of the bill to be recom
mended by the president providing for a
ferim-al Incorporation act have become
known there is a disposition on the part of
many members of congress to insist not
only upon a full discussion of the measure
but upon amendments which will in their
Judgment be necessary to make it effective
In dealing with great corporations. Indeed
It Is believed that nothing short of trem
endous administration Influence will enact
It Into law.
The need of a forfeiture clause by which
a corporation persistently violating the law
can have Its charter revoked Is declared
to be absolutely necessary If corporations
are to be effectively controlled.
Muny congressional lawyers advocate
compulsory Instead of voluntary federal In
corporation. They cite as sound the gen
eral principle that If congress has con
stitutional power to grant voluntary char
ters to corporations doing an interstate
buslners, It haa power to require corpora
tions doing such business to take a fed
eral Incorporation Just as it has power to
require them to comply with Its laws regu
lating Interstate commerce.
Affect on State's Rights.
Among the questions that will come up
for consideration Is thai relating to the
effect of federal Incorporation upon the
right of states to control and to tax the
property of such enterprises.
Some members of congress will wish to
havo the rights of the states clearly de
fined In respect to such matters as regu
lations fur sanitation and factory Inspec
tion. They will also wish to reserve to
the states their right to tax such property
after the corporation has assumed Its fed
eral character. Some of them will wish., if
possible, to separate the slate from the
Interstate business so that the states may
still have power to control in ie-pect to
business conducted by the corporation
solely within the state.
In twenty-one sections Attorney General
Wlokersham has embodied the Ideas of
President ' Taft and his cabinet regarding
a system of federal incorporation of busi
ness enterprises. The bill Is expected to be
laid before Congress next week.
The principal feature of the bill will be
the creation of a form of holding company
under the national charter which may c.in
;rol business of subordinate companies or
ganized under state laws.
Proper limitations will be provided
(Continued on Second Page.)
the Kansas river at Wlllard, Valencia and
Lecompton were swept away during the
night by Ice Jams. The water reached Its
maximum early today and then began to
fall slowly.
On th Marals lies Cygnei river a gorge
formed against a bridge two miles eat of
Ottawa and by this morning It had ex
tended to that city, blocking the channel.
The water was rising rapidly this morning
and a force of men started out to dynamite
the gorge In an attempt to prevent a flood.
LAWHENCE, Kah.. Jan. J3.-The ice
gorge In the Kansas river reached Law
rence today, carrying out a wsgon bridge,
and causing several thousand! dollars loss
between LeCompton, eleven miles west,
and Lawrence. The Ice as It moved this
way was tossed forty feet Into the air.
All traffic between Lawrence and North
Lawrence waa stopped and the electric
light plant wai shut down. Schools In
North Lawrence were closed.
Articles Drawn Up and Mailed Out
staling xerms.
DEFAULT IN INTEREST THE CAUSE
Uncompleted Condition of Plant Also
Factor in Movement
MODE OF PROCEDURE TO BE FIXED
Process of This Reoraanlsn tlon May
Be by Mortanae or Otherwise,
s the Committee "hall
Klect.
A reorganization of the Independent Tele- ,
phone company of Omaha Is being worked
out. A committee composed of these men
has the scheme In charge: Frank H.
Woods, president of the Lincoln Independ
ent Telephone company; Edson Rich, gen
eral attorney for the 1'nlon Pacific Rail
road company; Lysle I. Abbott, attorney at
law; Frank B. Johnson, president of the
Omaha Printing company, and Frederick
W. Stearns of Chicago.
Notices of the plan were last night sent
to the bondholders, who control the prop
erty, and a tentative agreement that will
bear dnte of December 18 haa been drawn
and submitted to them.
This agreement stipulates that inasmuch
as the company defaulted In the payment
of its seml-annunl Interest on April 15,
1909, and October 15, 130.1, and made no pro
vision for the further payment of It and
"that whereas the telephone exchangn
constructed by the company Is in an un
completed condition and no provision haa
been made for the completion of the same
and the development of the business of
the company and the bondholders, par
ties' hereto of the first part, desiring to
unite to protect and enforce their rights
and to secure a wise administration of the
property of the said company deem It
necessary that a committee should be ap
pointed with full power to Investigate the
conditions, af falls and status of the prop
erty and to take such action with regard
thereto as to them Bhall see hi advisable,
either by foreclosure or otherwise."
Turn Over Bonds at Once.
This agreement then stipulates that on
or before February 1 the bondholders shall
deposit all the bonds and unpaid coupons
with the Merchants National bank of
Omaha or the Title Insurance and Trust
company of Los Angeles, subject to the
order and full control of the committee,
transferring legal power and equitable title
also. The bondholders Bhall be secured
under this agreement with certificates rep
resenting the bonds. ...
Any creditor of. tne company- who holds
bonds or coupons of this compsny, under
this agreement, may become a party to
this agreement. Also under this agree
ment this committee on reorganization
shall "as soon as practicable" formulate
a plan for its work und submit It to the
Interested parties by depositing It In, the
hank or trust company.
This movement hus been quietly promul
gated In the last month. F'rank H. Woods
of Lincoln brought the mutter to a head
when he sought to secure control of the
local plant which, it was believed for a
while, would go Into the hands of a re
ceiver. Woods recently gained the as
cendancy In the Independent , telephone
world by getting elected national president
at Chicago,
One of the heaviest creditors perhaps
the heaviest of the local company Is the
Automatic Electrical company of Chicago,
which has held a mechanics' leln against
the plant which It Installed.
According to the company's own state
ment, the total outstanding bonds amount
to $2,400,000, divided In this way: First
mortgage, authorized, Issued, $1,600,000, 5
per cent; sinking fund, 1260,000, S per cent;
gold bonds, $050,000. Of these bonds $1,800,
000 were Issued for value and $400,000 aa
collateral. Lysle Abbott controls those
held In Oregon, ICiOO.000; Steami of Chicago
holds $400,000 and $400,000 are held in Los
Anceles, while Woods controls the re
mainder. statement by the Company.
For tho fiscal year ended June 30, 1001,
the business and conditions of the company
were summed up In this statement filed by
the officers with the State Railway com
mission at Lincoln:
-No. Shares .
Stockholder!.
U. H. Haker. trustee
Sanford F. Hants, trustee.
F. K. Kbersole
W. C. Hullard
F. T. Graves
Com.
Pf'd.
8 lit
4.i9
4.B
5.0U0
1
1
.3 1
Total, par value $1,500,000 $2.M0,OOJ
Number shares preferred stock Issued
during the year, $7,500; par value, $750,000.
BONDED DEBT.
First mortgage (authorized, $3,3fi0,-
Oi0l Issued, i per cent $1,600.014,
8inking fund, Issued, 6 per cent.... STiO.OOt
Gold bonds 6iU,00(
Total bonds outstanding $2,400,001
BAUNCK K11KKT-AS8KTH.
Cost of plant to June 30, 1WJH Sfl,731,fl)6.2l
Huildlngs and real estate 73,000.01
f urniture and fixtures 8,784 8:
inventory 6,000
Cash 2:t.
Accounts receivable (rental) 6.510.
Accts. receivable (toll line cos.). 2,32.(11
Total $8,82,532.1I
LIABILITIES.
Capital stock $4,000,000.04
Honded Indebtedness ' 2,400 orio 04
Hills payabUf 277,40o.l(
Accrued interest (hills payable)... K.titiO.lj
Accrued Interest (bonds) 5s,lai(.4(
Accounts payable (audited) 7,27t!.u
Taxes accrued 4,0!i3.1
lJue toll line companies 8,061.21
Total 16.X2y.632.il
KKVENI'K ACCOUNT EXPKNSKS.
Maintenance nine months $ 44.617.0
General exi nsus 9 month! l!t,3ud,3
Operating expenses 9 months.,.. 11,370.0
lnteri st on bonds (6 mo. only).. 6H,134. 4
Total
EARNINGS,
Rental revfnue 9 months...
Toll revenue 9 month!
All other earnings
Loss
...$ 133,329.8)
... M.8M.
2.6O0.1 1
991.11
75.5U.
Total $ 133.S29.M
Total number of switchboard stations'
6.1M; capacity of switchboards, .6u0. '
The compuny do-s not own any toll lines
and hits two exchange building! In Oinaha
Mil. MOM IHM.I.AH I'HOIll Ht'll
Damasvrs for Alleired Frands Claimed
AKalnit Allied Companies.
"Fraudulent, collusive and unauthorized,
are the adjectives applied to a transfer o;
contracts by the Ixing IMstance Independ,
nit Telephone company to tho Cuutra!