Daily -Bee
TOR ALL THE NEWS READ
THE OMAHA BEE
' BEST IN THE WEST.
weather forecast.
For Nebraska Fair.
For Iowa Fair. .
VOL. XL NO. 309.
OMAHA, . WEDNESDAY MOKNINO. JUNK 14, 1011 TWELVE VMUT&
SINGLE 'COPY TWO texts.
The
Omaha
GATLSr TELLS OF
- ruOLSIN STEEL
Former Vice President of United
States Corporation Says Former
( ' Agreement! Are Abrogated.
USED TO. DIVIDE THE PROFITS
Makers Who Failed to Get Their Share
of Buiineti Taken Care Of.
SCALE ; OF PRICES FIXED
Manufacturers Who Violated Agree-
ments Had to Pay Finei.
HOW FAVORS GARY METHOD
rrovlons o IHBT Tbrrf Wa a
tnirorin lre tor ate Ralls of
fit"., om raorta tiding; with.
Railroads.'
! WABHINOTOV. 3une 13-The assertion
that the formation of United States Steel
corporation In 170I had put an end to pools
and agreements tn th la industry was made
by James Uayley. former vlca president of
the corporation, today to tha house "'steel
truat",' lnveHllgnling committee. Mr. day
ley.. In telling of condition existing befora
that date, denied that combinations or
agreements existed In the steel trade today.
Although at rirt opposed to the plan, ha
now thoroughly approves the understand
ings rwc)ind between ateel manufacturers
at the conference dinners Inaugurated by
Judge K. H.-Clary, head of the corporation.
' Mr. Uayley said that prior to 1901 there
were agreement by which manufacturer
were apportioned , certain shares of the
steel business and those,-who fatted to get
their allotted- share were taken care of
with a proportion of the general profits.
Uillorw il of Prior.
Mr. CJayley declared that for a long time
before" i8W the price of steel rails waa
' practically uniform at fca a ton. It rep
resented, he said, an understanding be
tween manufacturers of rails and the rail
Toads a to an equitable price. He said a
fraternal 'feeling bad always ezUted be
tween rail maker because of a desire to
produce the beat possible rails. He also
admitted that previous to ISO agreements
Were triad between the various manufac
turers regarding other steel products In
which the' Carnegie company participated.
These agreemonts provided fines for viola
tions, i . ; .,.
."What body Imposed the fines?" Repre
sentative Young of Michigan asked.
"I do pot know," Mr. Uayley replied.
'To whom were the fines paid?"
"I Imagine that they ware, divided pro
rat among different companies."
Vjaan aeked who oould explain the agree
ments and fine. Mr. Qayiey said h pre
sumed Charles M.' Schwab, th president,
or B..A. Puacouk,' the vice president of th
Marnegie company,' could telL '
Mr. Gayley admitted that before 1900
there, wr affreemant as" to the nfrmnr.
Uua of bunine.? ar;h manuTaetviw eras to
bvit, -vfjyr. "" . , .,
l)Wllon ot rroflta, -.
"M,th corny any should not get' Its
hare,", asktd Mr. Young, "waa It given
th profits anywayt"
"That U ray understanding of It"
That tin ere was suoh an agreement now
Mr. Qayiey denied.
Th witness described, the changed con
ditions In the steel business sine th ni
gantsatlon of th steel corporation and dls
Cuasod the Gary dinners. . He said he first
was opposed to the Uary co-operative
Ideas, but later came to believe them wise.
"I wt( brought up In the school of keen
competition apd prlc cutting," said Mr.
Oayky, "and did not approve at first of
the Oary Idea xpreed t the dinners,
but Jter cam ta see that they were wise
Under the business condition of th times,"
Iowa Engineer Goes
on Mission to China
J 1 aaasssaasBSB
Charles Davii Jones to Aid the Chi
suae Government in Preventing
Overflow of River Hwai,
WASHINGTON, June 1!.-Charle Davis
James, an expert engineer, once head of
th nsinsrlng department ef th Iowa
university, has been selected by, the Red
Cros society to proceed to China to aid
the; Chinese, government in preventing the
great periodical Inundations which have
resulted In frightful famines.
It U believed that by scientific engineer
ing tfc River Hwal, which causes th
greaUet damns through overflow can b
controlled
The Weather
Far Nebraska Fair
ror Jowa fair.
Ta aerator at Oak
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for tha tluy 17 Inch
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it. . KOUI.So, Observer
(Temporarily In Charge.)
Salvi Accused of
A der, Admits He
Was a Burglar
Trial
o
nrristi Resumed, but a
; -ts and Court is
'- iourned.
Eo
VITERBu. - June lS.-At the trial
of the Camnv ,day the crown prose
cutor lntrodufc,x"Several witnesses to es
tablish that Gennaro Cuccolo waa a mem
ber of the Uamorru wiien he was mur'
dered. , These witnesnos des rlbed a burg
lary, which they said had been organised
by Cuci-olo and executed by Giuseppe Balvl
and a band of followers.
Salvl, who is aoucd of being one of
the actual assassins of C'uoccolo and his
wife, admitted, the burglary, but denied
the participation of Cuoccolo, who he said
ha did not know, lie added that the crime
had been planned by a certain C'aflero,
who had tfiibnequcntly confessed and had
been condemned to five years imprison
ment. Hatvl asked that the witnesses be
prosecuted for perjury.
(resident Blanclil replied that the ac
cused could not make such a demand.
Counsel for the Jfense supported Salvl's
request so vigorously that a hubub ensued
snd the Judge declared the sitting sus
pended. '
Kansas Militia May
Be Called Out to
Enforce the Law
Report that Prohibition is Giving the
Officials of the Sunflower State
Much .Trouble.'
TOPEKA, June IS. That the stats militia
will be called . out In Cherokee cdunty.
Kansas, to aid in the enforcement of the
prohibition law was a report received here
today.
Governor Etubbi 'nd the attorney gen
eral are out of town today and nothing re
garding the rumor waa known at their
respective offices, It probably originated
from the fact that the Crawford and Cher
okee Volunteer association was denied the
authority of depcty sheriffs to enforce the
law.
Democrats Oppose,
Bristow Amendment
Claim that Senate Must Again Vote on
Question of .Election of
' ' Senators.
WASHINGTON. June IS. Although the
republicans of the house voti today to
support the Hrlstow amendment , to the
Joint resolution adopted by the senate last
night providing for direct election of sena
tors, th democratic leaders of the house
Insist hey will refuse to accept It and that
the' senate' again must vote on .the pro
vision. . j J
Representative -Underwood,- tte ' d'omo-
cratle leader, said the action of the house
In' V'otlet down a similar amendment pro
viding for federal' supervision-would Indi
cate that the resolution would have serious
opposition In conference. '
War Cloud Hovers
in Portugal Sky
Deputies Whose Seats in Republio
Have Not Been Contested Will
Proclaim a Republio. .
L1SBONJ June 13. Captain Coucelero.
the royalist leader. In reported to be again
preparing to cross the Portugese frontier.
The northern and southern frontiers are
lined with troops at strategic points. Gun
boats are moving in the rivers.
Minister of "War Barreto declared If
the royalists enter' the country, they will
be annihilated.
An official decree Issued today convokes
the constituent assembly on June 19, when
the deputies whose seats have been con
tested, will proolalm the republio of Por
tugal. .
WOODMEN MEET AT ROCHESTER
ovorolara Camp la geoaloa sal Com
mander Root Resooads to Ad
dress of Welcome.
ROCHESTER, N. T.. Jun 13,-Oathered
here for a convention which will continue
two weeks, members of the Sovereign
Camp, Woodmen of the World and Supreme
Forest, Woodmen circle", were welcomed
to Rochester today by Mayor Edgerton.
Sovereign Commander . Joseph Cullen
Root and Supreme Guardian Emma Man
chester, both of Omaha, Neb., responded.
Heads of
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HOWSUGAllTltUST
DIVIDESMAMET
Edwin F. Atkins Says Price is Exactly
Same on Atlantio and Pacifio
Coasts.
TARIFF FAVORS WESTERN POINTS
Refineries on Pacific? Can Ship Suj-ar
, as Far Eait as Chicago.
COMBINE OWNS LARGE INTEREST
American Company Holds Half Stock
in Spreckles Company.
-C :
SATS THERE. IS NO AGREEMENT
Thinks Price hoaId.Bo Lower la
West Iters ana of Free Raw
agar There bat They
Are Not. '
WASHINGTON, June.' 13.-Effort to 'dis
cover whether noncompetitive cones had
been ' established bv the American Sueur
Refining company In an effort to control
prices, marked the resumption of the
"Sugar trust" Inquiry today. EdwUr F.
Atkins, acting head of the sonar corpora
tion, who only, became an official of the
company two years ago. snld he was un
able to answer from personal knowledge
many of the questions put to him. 1
Mr. Atkins declared, however, that the
American' Sugar Refining company owned
practically a majority of stock , In . the
sug.ir refineries In California and that.lt
did not attempt to competo'wlth them. He
gave aa the reason for' this' abandonment
of the coast .business the fvaight rat dif
ference of half a cent a pound on sugar
transported from the eastern refineries.
This, he Insisted, was the principal reason
for. the failure of competition .
Questioned by Representative MaJby pf
New York, witness said that 60 per cent
of the Westers, Sugar: Refining company In
California was owned by the American
Sugar Refining company, while the Spreck
les family owned, the other 50 per cent.
No Agreement.
"Do you have any understanding that
there should be no competition?", asked
Mr. Malhy. , . . t ..
"So far as my knowledge goes, there Is
tnot the slightest."
The sugar tariff, according to. Mr. At
kins, enables the Pacific coast, refineries to
make a larger margin of profit than the
eastern refineries.
Mr. Atkins said the price of sugar was
the same on the Pacific and the Atlantic
coasts, but the Paolflo manufacturer are
able to sell as far east as Chicago, while
ihe eastern refineries cannot ship further
west than Kansas City and Omaha. r
"The reason Is that the Pacific coaat has
free raw. sugar," said Mr. Atkins.
Onuht to Be Lower Oat West.
"The refineries there get, the Hawaiian
and Philippine sugars wlthout-duty. while
we have to payt tl.M duty .en each, ino
pound of puban suar h,e -continued. . ,
""The sugar ought to he lower oar the. Pan
clfie coast T" asked Representative Raker
of California.' .
"Ye." said Mr. Atkins, who added that
he knew nothing of the conduct of 'the far
western companies. He d.d not know. ,Mr.
Spreckles, he said, nor what interest the
latter had In various beet sugar companies
of the west. .
"I haven't been able to get any Informa-'
tlon from any of the companies in which
we are largely Interested' said Mr. At
kins.; "We are minority stockholders and
they refuse to tell us anything about their
business." ,
State of Morelos is
Ready for Pacification
General Madero' Has a Plan
for
Reducing: the Army of
Insurrectos,
CUERNAVICA. Mex.. June U-Though
General Madero came here to review the
large body of insurrectos troops, he really
accomplished a great work today toward
pacifying the state of Morelos by giving
relief to Americans and other foreigners
who have been terrorised by the presence
of 4,000 lnsurgsnta. The general left here
today for Balsas.
General Madero had been Informed of
the looting which had been la progress
since the soldiers arrived at Cuernavica
and the, chiefs admitted they had so many
soldiers that the men were likely to be
come uncontrollable. Accordingly a plan
was agreed upon at the -conference to re
duce the force to 600 men, mustering out
the others.
HBOTZSCEBTYg OJT OCXAJT WTMXXXXX.
Port. Arrival sUe.
lfONTRBAL....Cuda
tjL'ZHUO Sootlu
WllfcttttC Uti atiokisu....
United States Bureau of Animal
MEMBERS Of BRANCH OF DEPARTMENT OF ARICULrURB WHO MET IN OMAHA AT TUB FEDERAL BUILDING.
' r y.v i ""i
; :;;; j
From the Philadelphia Record.
WARRINER GIVES TESTIMONY
Trusty from Ohio Penitentiary Wit
ness Against Cooke. . , :
STOLE
TO ' RECOUP HIS
LOSSES
Jn4m Hist Rales Oat fTtoonre of
Clerk of RIs; ru Who Woold
Ptoto Corrafj of Cash.'
Beaer Woa tr'iTS (. ;y .-'
CINCINNATI, O.. iiine t.-VVhen Charlee
l Warrlner, wearing . the garb of a
trusty, in the f'OWb "penitentiary, to4c
th stand today In tho. trial . of Ed
gar S. ' Cboka' tor'. ' alleged embeizle
ment, the voice of the man who told
how he had stolen $643,000 from the road,
was heard in ' public for the second time
since he stood tip In court to receive sen
tence. Warrlner testified at the trial for alleged
blackmail last ' year of - Mrs. Jeannette
nueiie
case,' I
glveJ
lOO.OCI
Stewart Ford, the "woman In the case,
and at that time he asserted he had
to her end Cooke something over $100,
In terse aentenees . Warrlner outlined his
dealings with Cooke. He told how the lat
ter, receiving $90 a month, had handled
million of the road's money. 4 -v
Warrlner testified that when l u discov
ered the alleged discrepancy of $24,000 tn
Cooke's accounts, the latter at first denied,
but later admitted It.
"He said he had become Involved with
Mrs. Ford, and had tried without succef
to recoup his losses In the stock market." I
related . Warrlner. "Ho told me he had
$8,000 of the money left and. I said I would
take care of the balance of It If he would
return the $9,000." , ;
Judge Charles T. Hunt today ruled out
"testimony of clerks of the Big Four rail
road aa to the contents of the cash books
of the road that have been destroyed on
the ground that "mere clerks'; were not
in charge of the books and that higher
officials of the road only would be' allowed
to. testify regarding them.' ..
Rata Wash A was- Bridge.
CHIHUAHUA. Mexico, Jun 1$. Railroad
traffic In northern Mexico reached through
El Paso, is 'in danger of being tied up
worse than during. the revolution. Many
temporary bridges built to leplaca there
destroyed by the revolutionists have been
washed away by heavy rauu.
Long May It Wave
Lumber Trust'
May Have Plenty of
. Trouble oa Hand,
Civil as Well as Criminal Action May
Be Brought by the Gov-
'" '. ; ' ernment'-v "'.'' ' 'r
: CHICAGO. JUne-- lJ.THT possibility, j of
civil as well as criminal action by the gov
ernment' against .the ao-called., ''lumber
trust" became a matter of considerable dis
cussion here today among those Interested
following the questioning today of a num
ber of new witnesses by the' federal grand
Jury. , ;"'' .
ThesJ were ' Instructed to conceal, their
Identity and the government officials were
particularly close-mouthed ' following the
examination of papers taken Into the grand
jury room by witnesses, one of whom was
a young woman, said to be a stenographer
In a St. Paul, Minn., lumber office.
Indictments, If any be voted are expected
to be handed up June 22.
Bonillo Takes the
: ; : Oajh of Office
All of the Political Prisoners Held
in Mexico City; Are Re-
leased..- r. '
MEXICO CIT7. June 13. Manuel Bonillo
today took' the oath of office as Mexican
minister of communication - and public
work. j .....
All the political prisoners here, including
fourteen Americana and two Germans, cap
tured In the battle of Casa Okandes, were
liberated last night. ','.''
TROOPS TO REMAIN IN SOUTH
Orders Oat Snapruii tna; the Removal
of the Soldier - from
Texas.
. GALVESTON. Tex-, Jun IS Order were
received at the military headquarters here
this afternoon suspending the Immediate
removal ef United State troop from her.
Industry
CROPS .IN FINE CONDITION
Bankers Say Reports of Poor Crops
Are Mistaken. 1
BULLS START CALAMITY. HOWL
Traveler Say There 1 No Reasoa for
, . Alarm If Nebraska Gets a ."
Chasee.' -
i Bankers' I00V "Upon the reports of crop
failures which were so prominent lasrweek
as tho emanations . either front caldmtty
howlers or stock market bulls.
' Several bankers today expressed them
selves as confident that the crop yield In
Nebraska and Kansas would be at least
normal. If there Is a rain within th next
ten days, and weather condition give the
growing grains half a chance.
A great amount of Interest In the situa
tion has been expressed by the flnancUl
men, and in some cases they have had
Investigations made on their own Account
of the conditions on the farms.
J. II. Millard, president of. the Omaha
National bank, declared that present con
ditions are favorable. Nothing ,leas than
an epoch making protracted drought could
prevent the yield as a whole from coming
up to normal or better, ha hald. M.
Millard's Information was that the whout
and oats tiave been damaged In spots, but
not enough to cause uneasiness for the
situation as a whole.
Harry Nott, 'Who returned Monday from
a trip over the state, reported that In
the noth central section tha farmer al
ready are In the wheat fields with harvst
ingt machinery. Mr. Nott wa traveling
with a party of bankers, and said that
no cause for alarm waa seen.
O. ,E. Rice of Superior, Neb., who was In
Omaha Monday, reported that little damage
had been done to wheat and oats in that
neighborhood. The corn never wa In better
condition, he said.
N. B. Updike of the Uodlke Grain com
pany, who haa Just returned frem a trip
over the state, yesterday made the follow
ing statement. '
"I have carefully Investigated conditions
In the state for one week. From what I
found I predict that Nebraska: Kansas and
Iowa put together . will raise' more wheat
than they did last year. W need rain to
help fill out th grain, and It ahould com
within a week. But with no rain Kanaa
and Nebraska will rats a fair crop. Condi
tion in Iowa are perfect for all grain,
"In the shipping district of Kanaa and
Nebraska w ar going to get ordinary
conditions in oats, as many as last year
at least. Corn I absolutely In perfect con
dition everywhere and ten daya ahead of
last year. There la nothing In conditions
to make one nervous over anything."
PENSION FUND FOR MINISTERS
Uoe Handre4 and Fifty Thoasaad
Dollars to n natscd by Members
of Latheraa Charrh.
! DULUTH, Minn., June 13.-In order to
create on cndowim-nt fund for pensions for
ministers of the Lutheran denomination,
1150,000 will be raised by assessment of fl
per member through the entire country.
This decision was reached today at the
synodlcal council of the Augustana uvnod
of Swedish Lutheran churches of Ameri
can meeting here.
Beveral Interesting reports were read.
These included the presentation of a lib
rary, building to the Augusta college in
Rock Island, 111. The building is valued
at taK.ooa
SAVINGS SAFE FROM CREDITORS
Ismooetor Fate Way Mooes- la Postal
favtag Daak Is Beyoad Reach
of Attachment.
AKRON,, a. Jun M. -Deposit mad In
th United Btatea postal aavlnaa ,. banks
cannot be attached by creditors . in any
state In the union,, according to Postofflce
Inspector Georg Pat, who. today completed
his first Inspection of the bank opened at
Barberton, O. ' ' . 1
Absolute secrecy must Be maintained as
to the Identity of depositors snd court ar
helpless In any attempt to fore postmas
ter to produce their record
KE0IPK0G1TY- UP
IN THE SENATE
Measure is Launched and a Leng-thy
Debate Started by friends and
Opponents.
' i. .
MANY SENATORS IN THE DEBATE
McCumber of North Dakota Leads the
Opposition; '
FILES LONG MINORITY REPORT '
Gives Sixteen Reasons Why Canadian
Bill is Opposed.
LA F0LLETTE ls IN THE FIGHT
Uenoaner the Measure a a Trade,
While Williams,' one aad Kera
Stand by the Position Take a
by President Taft.
WASHINGTON. June W.Cnadlan reci
procity was launched in the senat Ut to
day on what promises to be a stormy
voyage. - ' ' ,
Chairman Penrose of th finance commit
tee and Senators Inrig and Dsllev ex
plained that a recommendation Was Im
possible, because of commltte drailork.
Senator McCumber. 1 41 Fopett and Wll
I'arriB. members of the committee, presented
their views, when unexpectedly a lengthly
debate wsa started on a protest of S?imtir
Bacon a?ainst the vole of Vice' President
Sherman, who last night broke a tie and
adopted the Hrlstow nmendmsnt to th
resolution providing for direct election of
senators. Extensive precedents were cited,
against It and In support of the vice presi
dent's action. Senator Penrose, In charge
of the reciprocity measure,' sought to hold
the debate long enough to rtort the bill,
but had not succeeded up to n late hour.
Met omber File Minority Report.
Taking the position' that the Canadian
reciprocity bill should be reported to th
senate with an adverse recommendation.
Senator McCumber of North Dakota filed
a minority report giving sixteen reasons
why he opposed the bill.' All wer based
on the contention that by -opening th
markets of the United States to Canadian
farm products the proposed , bill wi lid
have the effect of lowering fhe prices of
American products. .'
"Ws no sooner enter upon new and better
conditions when we are securing for firm
labor and for capital Invested'. In farms
and farm property more fair and Just
remuneration." th senator said, "than w
find ourselves confronted by this measur,
which will operate as a Check against any
further progress and will even deprive u
of what we hav gained In th last fnr
yearn In the upbuilding of our 'horn mar
kets." ' ; : u .. .' ..
"re Cities More Overcrowded.
Th senator predicted that by th! Mil
the country would again check Its agricul
tural ' development and ' en4 hundreds of
thousands of the son and daughter ef
farmer to crowd the ' el.t)s.,. TJi mpoiV
dealt extensively, with. .thi!rjr;ivl,Wet
on both sides ef the International line.'. . "
Mr. McCumber found three to. be 19 cents
1 bushel less In Canada than Jn th United
States. He believed Manitoba. Alberta and
Saskatchewan provinces to be papable of
j supplying enough, wheat to feed the world
and predloted (the immediate decline of
American prices to tna auiadlan Jevel. Th
result would be. he jiti, to lose all th
advantages derived In the paat from th
protective tariff.
rienator La Foriette In an Individual re
port expressed adverse view on th rcl-
Uiroclty bill. He said H was perfectly con
sistent for one who believed In free trad
to support the bill, but that tio man Who
believed either In a tariff for revenue only
or In a protective tariff could consistently
give it his support-. ' ' ' ' '
"In the belief that duties should represent
the difference in th cost of production at
home and abroad, with ' others I con
tended," tald he, "when 'the Payne-Ald-rleh
tariff bill was pending, for reduction
In duties to that level Insofar as the tn-
formation then at hand furnished any safe
criteria to determine rates on that prin
ciple. "I shall continue to advocate tariff leg
islation based on that principle.
"I believe In reciprocity and I bellev In
reciprocity with Canada. The mutual give
and take of tariff concession between our
country and ous . world neighbor, along
the line laid down by Blain and McKln
ley, 1 a policy that haa In view th best
welfare of all concerned.' v
Reaaoa for Froteot.
"But I protest ajjulnet thi proposed re
vision 6i our tariff by excutiv mandate,
r protest against this diplomatic bargain
that is masquerading In the guise of reci
procity. " It 1 not reciprocity. It Is not
fair exchange of tariff advantage between
our cltlsens and th dUzans of Canada.
It 1 a tariff trad, conceived in special
Interest selfishness, negotiated In secret
and brought Into th opea with th attrao
tlv label of reciprocity as a bid for the
favor of the American pubIlo- people who
bellev sincerely in reciprocity that Is
genuine. 1
"Thl agreement la not In th Interest of
th consumer. Relief from the high cot
of living is not to b found In such a
tariff compact aa that represented in th
pending bill. .
"It I not necessary to wrong any class
or do injustice to any interest In order to
benefit the consumers. ' And It Is soarosly
Ires than criminal to make a scapegoat of
the farmer for the benefit of any unlawful
combination. 1
"It is not t.e farmer, it Is not the con
sumer for whom these negotiations wer
made. It was mad to benefit th rail
road, th miller, th packer, th newspaper
publisher. '
. Newspaper Mad to gaffer.
"The newspaper publishers ar promised
a free market for print paper, for which
they expend about 000,000 annually. No
one who Investigated the condition under
which the newspaper of thl country hav
been compelled to purchase their supply of
print paper can escape th conclusion that
tho publishers ha ye been subjected to ex
tortion. .
"Th condition under which th publish
er ar forced to conduct their business
ar intolerable. Th - conditions call for
action which will afford Immediate relief.
. "The gros Injustice of th proposed bill
Impel me to oppse It. I recognise no
canon of right aid fair dealing that would
permit me to support it In'tts present form.
If, however. It ts to be enacted Into law,
It should not pass without amendments In
th interest of th great body of consum
ers. Including th farmers, who ar com
pelled to carry all th buidea of th presi
dent's lop-sided pact.
"I purpose to offer amendment providing
for complete revision of th wool snd
cotton schedule of th PynAidrk:li tariff
