Omaha Daily Bee Newspaper, March 27, 1894, Page 1

" ESTABLISHED JUNE EAK ARMOR PLATE fcoretary Herbert Rends to Congress the Story of the Homestead Investigation, GROSS FRAUDS OF CARNEGIE'S MEN Prepared for Inspection at Night Plates Known to Be Defective. COMPANY WAS IN NO WAY RESPONSIBLE Chairman Prick Knew Nothing of the Matter Till Notified from Washington. HEAVY PENALTY EXACTED BY PRESIDENT Ten Per Cent of the Contract Price Assessed a8 Damages -Superintendent Schwab 1 Night Insp at the Works Removed u ction Arrang WASHINGTON, March M. —Secretary Her- bert tod y sent to the house an answer to the Cumfhings resolution calling for a state- ment of the details of the recent violation by Carnegie, Phipps & Co. of the contracts with the United States for the manufacture of armor plate for the navy. The secretary's answer is very lengthy, giving in detail the history of the progress and discovery of one of the most gigantic frauds known in our al administration. time last September the sccretary received from James Smith of Pittsburg, attorney representing certain persons in the employ of the Carnegie Steel company (limited) of Pittsburg, notice that these em- ployes had in their possession information which would be valuable to the government relating to frauds then being perpetrated by certain employes of the company, which they would give to the government for a suffi- cient consideration. The sccretary agreed that if the information should lead to the recovery of money from the company to re- munerate the Informers from the sum re- covered, but not to pay any expenses. Three of the employes and the attorney were care- fully examined by the secretary, who was satisficd that their statements were not with- out foundation, and determined upon a thorough investigation. Ile, was convinced that the men had mo feoling of hostility toward the com- pany, had not been engaged in the strike and sevmed to be influenced only by a desire to realize money. The attorney general found that the department might contract with these men and the contract was made agreeing to give them 25 per cent of the money recovered, in consideration of the faot that they would, of course, be dis- charged and- blacklisted and that other em- ployes from whom they would procure infor- mation: would also lose their plac WHAT THE FRAUDS CONSIST OF. The sccretary ‘says at this point: “These men had been gathering information for a long time. This they submitted to the de- partment in great detail. The allegations were that the company employes had fulled to temper armor evenly and properly, had plugged and concealed blow holes, ~which' would have probably caused a rejection of plates by the government inspectors, and had retreated, without knowledge of the in- spectors, plates which had been selected for test, to make theso plates better and tougher than the group of plates represented by them.” The -secrotary tells how the naval in- spectors at the works select one plate from each group, which is thoroughly tested, and upon the results of this test depends the ac- coptance of the whole group. The in- formants stated that some of these plates, after they were selected by the inspectors at the works, had been secretly and without the knowledge of the government Inspector retreated at night, that they were rean- nealed and retempered, 5o as to make them botter and tougher than the group of plates of which they were supposed to be the least resisting. It was the duty of the Carnegle Steel com- ‘pany, also, to submit to the inspectors at the works, to be forwarded to the depart- ment, statements showing the length of time ‘each plate had been subjected to the heating and annealing processes. It was the custom of the heaters at the Carnegie works to hand in statements showing this upon little slips of paper marked in pencil. These statements were subscquently copled and sent to the inspector to be forwarded. The informants stated that under the direction of Superintendents Schwab, Corey —and Cline the statements furnished to the government inspector were in many cases false, and they submitted many original memoranda, handed in by the heaters, which showed on their face In pencil marks that they had been altered. It was from these altered and false statements, the informants sald, that the statements were made which were sent to the inspectors. The original memoranda were supposed to have been destroyed, but they had been preserved and were gent to the department. Captain Sampson, chiet of the burcau of ordnance, was acquainted with the facts de veloped, and calling to his aid Prof. Alger and Licutenant Ackerman of the ordnance bureau, proceeded to make a thorough inves- tigation. This investigation showed that the test plates had been plugged and re-treated, and sustained the charges of the Informants In a report to the secretary, the chiet of ordnance and his assistants’ asscssed the damages sustained by the government at =15 per cent upon the amount of armor de- liyered to the government and all premiums received, The secretary says: “In conversation with the informants i had carefully Inquired whether the chicf officers of the company, Mr. Frick and Mr. Hunsicker, had any knowl- edga or fnformation of the fraud which had been committed. I was informed that the frregularities had occurred chiefly at night, and always when the government iuspectors were absent, and that Messrs, Frick and Hunsicker did not visit the works at night 1 could find nothing whatever in the test mony of the informants to indicate that either of these gentlemen knew anything Whatever of these irregularitics. CHARGES IN PART SUSTAINED. As soon as the report from Captain son assessing penalties had beeu rec the department telographed for Mr. H. Frick to come to Washington to see the secretary on important business, suggesting that he bring with him Mr. Hunsicker, who was more directly than Mr. Frick in charge of the manufacture of armor plates. The fnterview with Messrs, Frick and Hunsicker was in the presence of Assistant Secretary MeAdoo and Captain Sampson. 1 explained to them fully the whole transaction, stating who the Informants were, the nature of the fnformation acted on by the department, and placed in their hands the reports made by the chief of the bureau of ordnance assessing the damages as well as certain written stat ments made by the informants. They wel aléo informed that Lieutenant Ackerma who had for a short time been on special duty at the works while this investigation was golng on, had reported that his sus- pleions were aroused by certain evidence which he had observed, tending to show that the operatives were concealing facts from the bservation of the inspectors, and that Licutenant Ackerman's observations were made without any knowledge of the informa- tion recelved by the department from the smployes as heretofore stated RIOK SATISFIED WITH THE INQUIRY “After fully acquainting Messrs. I'rick and Hunsicker with the facts, I demanded satis- faction for the damages resulting from these upon amp- ived, (K 19, 1871 irregularitios and Informed them that they would only be allowed to proceed with the contract on condition of making full repara- tlon. Messrs, Frick and Hunsicker both seemed greatly astonished at the statements made to them, and Mr. Fridk thanked me for the care and fairness with which the in. vestigation had been conducted, and asked time for himself to investigate and sider. Mr. Frick not only earnestly claimed, as did Mr. Hunsicker, any knowl- edge of the transactions, but mentioned the fact that he had been fn some manier warned as to Irregularities that were being committed by the empl on the armor and that he had thereupon written a letter to Mr. Schwab, who superintended the heat- Ing and tempering, cautioning him to the utmost care and diligence in faithfuliy ful- filling the contracts. (A copy of this letter appears in the correspondence.) “Messrs. Frick and Hunsicker promised, after looking into the matter of th charges, to rfturn, as they did a few afterwards, bringing with them writ statements made by Mr. Frick, Mr. H sicker and Superintendent Schwab. Mr. negle returned with them, and they were anied by Mr. Knox, attorney for le was also heard at ome length. e gentlemen then left, and “he several statements were turned over to Captain Sampson, who subsequently made a report th on. A few days aftorwards Messrs, Frick and Hunsicker again returned, and in an inter- view with them Secretary Herbert informed them that the department intended to ap- prove the report of Captain Sampson ass ing penalties at the rate of 15 per cent upon the armor they had manufactured for the government and premiums. Mr. Frick in- quired whether they had the right to appeal to the president, and was informed that they had and that the department would be glad in a matter of o much*moment to have the president revise its decision. In stating to the officers of the company that I should approve the report of Captain Sampson, as- £¢ ng damages a 15 per cent, I did not make any formal written decision, and therefore did not consider particularly the question as to when the damages should commence, or when the should cease, for the reason that theese gentlemen indicated at the time an Intention to appeal to the president, and that the ultimate decision was to be his, not mine. The question, there- fore, as (o the exact amount of damages t department would assess had not been de- cided upon when the appeal wis taken to the president TAKEN TO THE PRESIDENT. “On the 20th day of December, 1893, Messrs. Carnegle, Frick, Hunsicker,” Knox, attorney for the company, and the secretary of the navy appeared before the president. Mr. Carnegie and Mr. Knox argued the ques- tions involved at length. The president took the matter under advisement, considered the qQuestions at great length, and upon a care- ful consideration of all the facts, decided that the assessment of damages ought not to begin until the 34 of November, 1892, at which day our proofs of irregularities began, and they ought not to be assessed upon armor manufactured after the 16th day of September, 1893, the date upon which Mr. EFrick had cautioned the superintendent to extra care. When the ultimate decision came to be made, I called to mind and state to the president that our own proof tended to show that the irvegularities at the works ceased about the time Mr. Frick had written his letter to Mr. Schwab. At this time the department had selected, according to agree- ment with the informants, a skilled and trusty steel worker, who was to go to the Carnegie works and be shown the irregulari- ties In the work as It progressed. After this workman had been elected and instructed how to proceed, word came from the in- formants that it would be useless to send him, as the irregularities had ceased, or at least they were no longer apparent. The president having himself examined the ques- tion with great care, after a long conference with the secretary of the navy, made the following decision: “EXECUTIVE MANSION, WASHINGTON Jan. 10, 1894.—To Hon. H. A, Herbert, Secre- tary of the Navy: Dear Sir—I have ex- amined with care the report of the board appointed by you to investigate the alleged irregularities in the construction of steel armor at the Carnegie Steel and Iron mills and the assessment of dam- ages sustained by the government on account of the deficiencies in the quality of the armor which was affected by such irregularities. 1 have also cxamined the evidence and the documents which form the basis of the government's claim for damages. I am satisfied that a large portion of the armor supplied was not of the quality which would have been produced if all possible care and skill had been exercised in its con- struction. I am of the opinion that under the terms of the contract between the government and the company this constituted u default entitling the government to dam- ages. “It s, however, an exceedingly difficult matter (o extract from the facts developed a satisfactory basis for the assessing of such damages; and inasmuch as my decision of (he matfer is final, I am naturally anxious to do justice to the company and to avoid presumptions against it not fully warranted. “The award of the board, although ex- nibiting an honest desire to meet the case fairly, does not satisfy my inclination to glve the company all reasonable benefit of the indefiniteness of the proofs obtained. “It appears that the first irregularities ot construction were discovered about the 3d day of November, 1892, On the 1Gth day of September, 1893, some intimation of such irregularities reached the managers of the company, and a letter is produced whereby one of the superintendents enjoined greater care in the preparation of armor. “T am willing to assume that the faulty construction began on the 3d of November, 1892, and was concluded on the 16th day of September, 1893, On all the armor manu- factured for the government between the: dates 1 think 10 per cent from. the price should be deducted. “The amount so manufactured is reported to be 2,647,037 tons, and its value $1.404,894 Ten per cent of this value is $140,489, ‘and this amount, in my opinion, should be for. feited to the government. “GROVER CLEVELAND, Mr. Frick was notified and came again to Washington, and a settlement was effected according to the terms of the agreement he Caraegie Stecl company (limited) paid into the Bank of Pittsburg, Pa., to the credit of the Informants, $35,121, and it credited vouchers for armor furnished to the government with $105,360, which vouchers are now on file in the department. No money whatever passed through the hands of the department. WAS CAREFULLY CARRIED ON. “Throughout this whole transaction it will be seen that every step was taken with care and deliberation and the department was very much gratified to find that it was the opinfon of the officers engaged in making these investigations that, although a portion of the armor delivered by this company was not in all respects equal to the very best armor that could be manufactured, it is, under the new and improved processes which have been adopted, yet beyond doubt that the armor was all goud and that in ull cases the steel was of the best quality the nickel thoroughly and equally divided through the mass and defects resulting from blowholes, and the failure to anneal and temper in all respects as it should have been done, to have it the best that it was possible to make, nevertheless left the armor at least b per cent better than the lowest limit of tolerance “It {s true that some of the plates would probably ‘have been rejected on account of larger blow holes than would have been tolerated. To secure plates absolutely free of these is next to impossible. They oceur in cooling. The company s required to Qiscard at least one-third of each cast, and small blow holes are not serious defects. It is the very high standard of excellence de manded that causes n Dy plates to be re- jected at the works which would probably puss the ballastic tests “The departmant Is gratified to state thit all theso irregularities oceurred while the company was still engaged upon light armor and before their heavy forging plant was placed in operation for the manufacture of the heavy armor of the battleships. “It was strenuously and ingenlously argue the compan (Continued on Third Page.) OMAHA, THEY WILL NOT RE-ENLIST American Officers in the Service of Peixoto Tired of Their Job. BRAZIL'S NAVY NOT A DESIRABLE BERTH ments Offered Them to Remain with the Nietheroy Not Accepted—C for a Naval Engagement Now Passed By Situation. ances (Copyrighted 1594 by the Associated Press.) RIO DE JANEIRO, March 26.—As Inti- mated yesterday by the Associated press, the government ls in the bay here did not sall southward today, although orders had been issued for the vessels to do so. It is confectured that the government had re ed information showing that the pres- ence of the fleet is not required in the south, although the officials refuse to make public any news they have received. They state, however, that they expect the revolutionary movement n the south will shortly die from inanition. It is apparent from the fact that the war- ships' crews were engaged today in moving the torpedos aboard them that the govern- ment expects no naval battie. In fact, with the overwhelming naval forces, the govern ment would be able to pit against the in- surgents, a sea fight is beyond the range of probabilit The government has decided to erect ther fortifications at several points comm: ing the bay. orts ar tenant Hall, vess fur- nd being made to re-engage Licu- executive officer of the dyna- mite cruiser Nictheroy, Lieutenant Craven who had charge of the dynamite gun on board the cruiser, and Assistant Chief B gineer Charles Stenstrom, but they manifest 1o disposition to re-enlist under the flag of the republic, and the government's efforts to induce them' to remain will probably fail. ANX1O0U FOR PEACE. European Rulers Evidently Another War. LONDON, March 26.—A special dispatel to the Times from Pa referring to Caprivi’s recent utterances, which are inter- preted as indicating that the emperor is preoccupied with the problem of reducing the military burdens of Burope, says: At a recent meeting of the Italian finance com- mittee one of the members, Sig. Capelli, de- clared he had learned from an absolutely certain source that the emperor was pleased to see that Italy was reducing her army, and that Count Kalnoky, the Austro-Hungarian prime minister, had advised King Humbert that Bmperor Francis Joseph was also pleased becanse of the lessening of Italy's military expenditures. The correspondent of the Times added that the king of Denmark, In conversation with a Spanish statesman a few days ago, said he hoped to live long enough to see Europe com- mence military retrenchment. The king added: “The czar, my son-in-law, whose mission is one of peace, s quite ready to co-operate, and Emperor Francis Joseph has the chance, If equally disposed to do his utmost, to bring about this end. I have not ventured to speak to Emperor William on this subject, because a young sovereign always dreams of winning new laurels, but T am sure King Humbert is willing to discuss the question of a reduction of military burdens, while your queen regent of Spain has _ proved g deaire for a prolonged peace. I am gure, therefore, that Russla, Spain, Austria, and even Italy, are equally anxious for an unbroken period of peace. ot Looking for BACK TO HUNGARY, Louls Kossuth's Body Will Leave Turin for Buda-Pesth Tomorrow. TURIN, March 26.—After a service at the Evangelical church at 9 a. m. Wednesday the body of Louis Kossuth will be in. state all day, and, accompanied by its escort of Hungarian nfiicials, will leave for Buda Pesth on a special train at 8 p. m. The special train will be preceded by another train, which will convey to Buda Pesth the main body of the Hungarian delegates who have been in this city for some days past. The two trains should reach Buda Pesth on Thursday morning. The committee representing the muicipal authorities of Buda-Pesth presented the con- dolences of the municipality of that city to the relatives of the deceased patriot. The vice burgomaster, in addressing Kossuth's sons, recalled the deeds of their father, whom he described as the ‘“Founder of Modern Hungary,” and thanked the soms for consenting to the interment of the remains in Hungary. The sons of Kossuth have telegraphed to Premied Crispi, requesting the latter to thank King Humbert for his condolences, and to assure his majesty of their devotion to the Italian royal family. ov WANT A PROVISIONAL MENT Demands of American Resldents in the Mosquito Reservation. (Copyrighted 1894 by the Assoclated Press.) COLON, March 26.—The American colony of the Mosquito reservation, through the United States cousul, formally demands from the Nicaraguan commissioner, Senhor La- ayo, the formation of a provisional govern- nt, in which the American colony bo represented. ‘The Americans desir form part of a council which, it it proposed shall have the power of naming public ofli cials, organizing the police, making the law and creating courts. The Americans also de- mand the withdrawal of the Nicaraguan troops and the autonomy of the Mosquito reservation. A delegation, headed by the United States consul, Mr. B, B. Sall, and Mr. Samuel Weit of Bluefields, should now be in Washington with the view of placing the matter before the president of the United State The British man-of-war Canada is at this port awaiting a cablegram from the British admiralty and is expected to return to Bluefields shortly. Under the New Treaty. ST. PETERSBURG, March 26.—The offi- clal organ of M. Witte, minister of finance, culates that the concessions made by Russia to Germany in the new commercial y amount to 2,600,000 rubles, while the lan agricultural export trade will alone by the German concessions 6,123,000 rubles. Bosides this, free passage will be allowed Into Germany of Russian goods amounting yearly in value to 47,000 rubles Bain Leith's March 26.—Polling was ¢ where Alr. R. €, Munroe- ller, Is secking re-elec tion to Parliament on his appointment junior lord of the treasury Ferguson at the last electiol W. A. Bell, liberal-unfonist, by a vote of 5,78 to 4,095, Mr. Bell is agfln opposed to Mr. Munroé-Ferguson, and much interest 15 taken in the result. L 1 1% of 3 cction LEITH, here today, Ferguson, home ned as Munroc fefented M » Avail Andrew constable perjury, Thelr F NEW YORK, March Jamieson, the Gravesend vioted last week of sentenced In the at Brooklyn penitentiar: Uon inspec Scott con- was mont ehteen, indicted ors of Gravesend were called upon to plead and all pleaded with the exception ‘of Frank T. ( who pleaded not gullty, and Patrick T against whom the indic it was dropy ¢ sixteen will be sentenced tomorrow as Robhe ST, LOUIS, March Post-Dispatch detalls & robbery at Agnes, Tex., near the Indlan Territory lin Thiee men d B. B. Barnard, pro prietor of a general store, Lo pur- chase, they sald, a shroud. Barnard got it for' them, when they also got fr 1 all the ciofhing each could wear, Then ofal to the UESDAY MORNING, MARCH 27, 1894 coyering him with Winchesters, they com. arnard to luot his cown safe of y $1,000 and then break in the po for' them and tirn aver to them all ash and stamps. Ple: robbers then away, A possc is in parsuit. e — TRIUMPH OF WAITE, rode Colorado vernor Secures a Decision In i Favor, DENVER, Mareii %.—Judge ting in the distriet court, the injunction ls by Judge Graham agalnst Governor Waite, Mayor Van liorn and Fire and Pollee Commissioners Rogers, Harnes and Mullins, “estraining them from attempting to take possession of the oihice rointer ng with the duties of the old ommissioners, Messrs, ( and Mariin, whom the goverhof romoved, and missed the contempt proceedings. JThe court holds that that se of the alfged injunction under whie ontempt, pr ceedings were broughvt s void, and,s con- sequently, there could be no contempt thiat Orr and Martin _inendeavoring to hold office by fc o after”having been noufied of their removal by the governor are violat- ing the law themselves and are usurpers, and t Mulling and nes have the right to peacefully assume the offices to which they have been appbinted at once, Immediately_after the declsion was ren- dered, upon the advice of their attorneys, Mullins and Barnes went to the city hall and requested Orr and Martin to turn the office over to them. . This being prompl Yefuse the new board met in the mayor's office and organized. It immediately dis- charged Chief of Police Stone and ap- pointed John K. Farley in his stead. The lieute nts likewise were dismissed and it 18 understood decapitations will begin in the fire department tomorrow. Chief Stone rs refused to recognize the the new board and the de- fs_still under his control. M. F, Taylor for Orr and Mar- claim that Judge lynn's decisicn not settle the matter. but that the e stands just as it did the day the ap- pointments were made and hefore the in- Junction was granted. He has advised his “lients, s well as Chief, Stone to ignore s of the new board. If the old bord persists in 1ts refusal to give way, the coungel for the pew board will apply for a writ of mandamus, by which means the old members can be edily ouns B A report gained curren this afternoon f Waite flew into a passion that the new bo had chigf of police, de- emove his latest ap- The governor denied the story Late th afternoon Com joners Orr and Martin took an appeal from Judge Glynn to the supreme court, on the ground of error in dissolving the injunction of Judge Graham. Upon the promise of Attorney Ward for Barnes and Mullins that no attempt would be made by th» ney: board to proceed to business or make ap- pointments, the court refrained from issi- ing n writ against the new board and merely granted a stay until Wednesday, when a decision will probably be given. Glynn, sit- today quasned partment Attorney nd m would I pointces, or: — ———— POSTMASTERS In TROUBLE, | Canceled Columbian Stamps for a Considera- tlon—A Peculiir Case. ST. LOUIS, March 26.~Two more arrests have been made by theé United States au- thorities in the Mekeel Columt stamp case. The arrested men are Charles Kyle of Bolton, Tl charged with receiving bribes, and G: E. wher for Mekeel, charged spiracy to bribe the postmaster. in addition to the cage In which war were recently issued against C. H. Mekeel of the Mekeel Stamp and Printing com- pany, and H. L. Bcott, charging them with bribing Postmaster Hakér of Shrcwsbur Mo., who & also unger arrest, to cancel, and' so increase the value to collectors, of Columblan stamps of:Tagge denominations. The men arrested’ are “alleged to have an agreement with several fourth class postmasters to feancel such stamps and to return them. as areward for put- ting extra business. in: their way, half of the commission allowed postmasters by the & sovernment. \ T e LOST IN THE BAX OF FUNDY. TWo Vessels Supposed 1o, Hive Goiie Down with All Hands in the Narrow Straits, ST. JOHN, N. B, ‘March 26.—It Is feared that at least two Schooners went down in the Bay of Fundy during Friday’s severe storm. The schooner Star Dryden left Parisboro on that day for this port with a full cargo of coal. The schooner Greville Baird reports being in company with the Star and the Matie Delphine Friday oft the island of Haute. It was blowing a hurd gale from (he southeaat. The Greville put into Quaco for harbor and nothing has since Deen heard of the Star and Delphine. Both vessels have had plenty of time to veach here since and the captain of the Greville fears both have gono down with thelr crews, all of whom belonged to Nova Scotia. ———— Movements of Sea Going Vessels March 26. At San Francisco—Arrived—Keweenaw, from Wellington. ~Cleafed—Schooner Me- lancthon, for Cook's "inlet. — Departed-— Umatilla, for Victoria; £ila’ Rohloffs, for Karluck, At Seattle—Arrived—George Curtis. At Tatosh—Passed—Leahy, for Nani John_Iina, for Port Townsend; Monse: for San Francisco; Ivanhoe, from Seattle, for San_Francisco. At New York—Arrived—Gellert, Hamburg; Venetia, from Stettin, e Ordered to Be Prepared for Sea, VALLEJO, Cal, March 26.—Late this afternoon telegraphio orders were received by Captain Howlson, commandant at Mare island navy yard, from the sccretary of the navy, directing that the United States Steamship Mohican and gunbout = York- town be prepared for immediately, The receipt of this news d_consider- able stir among naval officers, as it was not anticipated that such orders would be promulgated before April 1 L M o and Her Attorney. CHEY Wyo., March 26.—Mrs, Emma J. Nagle has begun sult in the dis- trict court of Laramle county to recover from W. R. Stoll 330 shares of stock in the Ogalla nd Cattle_company of a par value ¢ 000, Mr. Stoll was attor- ney for Mr gle in her suit for divorce, and claims o have a lien on the stock for professional services, and will at once in- stitute a suit agains! )00 alleged to be due him. from HINGTO rts from national banks un: cent call of the compireller of the have been received from the thirt banks in California, esclusive of those in San Francisco. The§e banks make the following showing: Loans and discounts L015; lawful money Teserve, §2,480,015, ) Was gold; individual de avekage ' regerve held, Additional r the re- awrency three Dosits, 38,11 per cent. - y Wil JACKSON, Miss., March he supreme court today afirmed fthe decision of the lower courts sentencihg Henry Singlotor and Horace Smith, 'the negro conviets found guilty of brutafly murdering fellow prisoners in the State penitentiary, to death, The court fixed the date of tus ccution for Wednesday, April Tlie wrd of supervisorsshms directed that the executton take place I the prison yard Uikl « il ake Past in th T. JOSEPH, Maveh 20.—The A. I has taken o hand In the local elections here, having fssued @ tieket with the na \thollus left off, The ticket is American { Citizens,” aud on it of &Il candidates, except those (o whom the society is opposed Both the democratic and republican candi- dates fof or are left off, L e A iiven Anothor Trinl. March 25.Dr. Henry C churged with poisoning Ludwig Brown ‘In this clty in 1892, in order to realize upon insurance placed upon the life of the latter, will have a second trial, ning Thursday, April 13, his firat teial in January having resulted in the disagreement of the jury, o Lol B * Ordained a ed Ma BOSTON, March 2.—Rev. Oscar Lieber Mitehel, M. A., was ordained to the priest- hood of the Kpiscopal chureh here toduy He 1y a young colored man, and is the first of his race to be orduine is the first Eplscopal chureh in Wil Election. will Be NEW YORK Meyer, WASHIN h cash ance in the treasury at the elose of bu ness today was $134,288,000, and the net id $106,668, 4562 L4 0N A CHARCGE OF CONTEMPT Judge Scstt Determines to Go Gunning for the Editor of The Bee, INFORMATION PREPARED ORDERS AN Amendments Prom Cuse Vrivat Judge—What Attor His Action on Saturday. in Pereival Contempt by the « Sny About emanded When the criminal section of the district court convened yesterday morning standing room in the large again at a premium, it having previously an nounced that several would be upoa the boards, Cunningham R room was been attractions Scott, the honorable judge of the criminai division, on hand usual and presided. The routine matters had been disposed of, after which honorable court called to the county attorney That gentleman had left the room for an instant and his assistant stepped to th front. This did not satisfy honorable Judge, who stated that he wanted to see the county attorney in person. A bailift was sent after the official, whko soon therc after returned and in his usual meek and unoffending way took up a position before the honorable court. The crowd expected something and it did not have to wait any great period of time; for up spake the honorable judge of the criminal court and sald: “Mr, County Attorney, I want you to file an informatic gainst Mr. Edward Rosewater, editor of The Dee, charging him with contempt, and citing him to appear and show cause why he should not be dealt with a rdingly.” The county attorney informed the honor able judge that he would do that very thing, but asked for information concerning overt acts that Mr. Rosewater might have com- mitted. He did not get the information just then, though the honorable judge of “the criminal court said that he would secure the alleged contemptuous article before the warrant of arrest was ready to be placed in the hands of the sheriff. PRIVATELY COUNTERMANDED When the morning scssion of the d court convened yesterday the journa the criminal court was read by Clerk Moore: The clerk had read that portion of the record referring to the case whe W. D, Percival, The Bee reporter, was con- victed of contempt. This portion of the record failed to disclose the fact that both W. Sin al, who ap- o the findings and his leo was as the the Judge Duffic peared for I of the honorable | finding the defendant guilty withou being proof that he was the author of the article of which the judge complained. 1t will be remembered that at the trial, when_the court, without testimony, found his attorneys el an i he justified. At (hat time court refused to consuder the ordered it stricken from the after which the following interestin s participated in by the attor defendant and the court: 1 have filed an answer Court—I _don't want o hear frem you. Just wait. I don’t want (o haar from you, sir; you keep still. Are you ready Tor trial? My, Percival—My after the matter— The Court—I am talking to you. if_you are ready for triai? Mr. Percival—1 suppose T am. Mr, Kaley, county attorney, was called and was sworn as a witness for the state, xamined by the-eourt. . Simeral—1f your honor please, in t(he case of the state of Nebraska ‘agains Washington D. Percival, T liave an answer here, sworn to by the defendant, which I have already filed in court, and I desire to, read it to the cour The Court—You can’t read it and it will be stricken from the file Mr, Simeral—Will your honor please note an exception. Judge Duffie—If vour honor please, 1 have investigated this pretty thoroushiy— The Court—1 won't licar you, sir. udge Duffie—If your honor please— 'he Court—I won't please; I have already told_you, and the end of it. 1 know™ what this and 1 know how to handle it. Noticing that the journal of the court falled to disclose that objections had been made to the findings of the court, Judge Duffie, in behalf of Percival, entered the legal arena, where the following proceed- ings were ha Judge Dufli nies, dialogue w neys for I attorneys are looking 1 ask is, n this matter I should like your honor's record to show an exception fo the ruling upon the admission of this written evidence—this answer which was offered, and 1 should als it to show an exception to the court’s finding the de- fendant gullty of contempt. the Court—You are entitied to th Clerk, you may enter an excentic Jjudgment of the court finding the defendant Builty of contempt. Judge Duffie—And are we entitled to the other matter? The_Court—What jndge? ige Duffie fs the other matter, ate the other matter - pther matter was t ad here in_writing an answer wh wished—we have, in other words, ap- peared here to show cause why we 'were not to be held for contempt of court. Now I spent a great deal of time in preparing this showing, and it was offered fo the court, and the court refused to allow us to make the showing and ordered it stricken from_the files. The Court—It was not stri files, judge; that was not dome, On re- flection T did not_strike it from the files. Judge Duffie—Your honor ordeved it stricken from the files, The Court—I know 1 did. T stricken from the files, hut it stricken 1 the files: T have tr on file wse the defendant s in evidence. flie—But it W as stricken f) The record srter covers th Jud 1 think it récord the court jtseif g0 far as the procecding g0 far as the proceedings conceri The C 1 1 from the ordered it was not ated it ught to as not vee-ived, m the files Ly the but the govern, are concerned in the court arc do rot so understand it 1 nk his rd £hould contiol as to what pired during the trial, except the filin of pleadings and papers That all on the shorthand reporter's not me as what the witness sw 1 rulings of the court upon the admissibility of evidence, I make no note on my doc of that; the rter takes that alt dow and takes the objections and exceptions. Judge Dutfie~"That 1s try if your honor please. 1 want to have u fair record in this case, and I know your h or does, -1 certaiuly do. Jud Tl reporter is here to take down these things, which enter into a Dill of exceptions and Which is certified to by the court. Now, our court makes its own record, and 1 think this shoull appear in the record, In connection with the judg ment. The Court—I don't %o understand it. T understand that any paper that is offercd in evidence during the trial of & cas> is not to he noted by the court, hut gocs in tl cord of the reporter. That is his by ness: that §8 what his official duties are would not have a record large enough was 1o take dow ory thing, and we have a reporter to take down notes, rulings of the court and exceptions don’t see but what you have got all thix everything, If vou had on the trial pre- sentid any question—-uny question that might arlse—any legal question, 1 should feel very different about 183 but I satis fied that the record taken by the shorthand porter shows absolutely” and correctly It would offered to the finding this court urt not show, and it supreme court s showin of the defend guilty by The O Judge Duiti of the court The Court-1t would not show the judg ment of the court, nor the sentence, it would not show the arcalgnment; that i not a part of the trial Judge Du Before th ed 1 wo like the | tting a record to you will not change it will be signed as it s 1 » that; 1 shall not stuff th o thal e Duffie~1 am not Your honor. The Court—1 know you are not, judge but that is what I cannot do. 1f every thing that comes up during the trial—one com that, Jud will not record; 1 asking you Jud o do SINGLE (.‘01‘Yr FIVE CENTS. 18 in record part by thing here and another there—if it sisted that that should gy into the of the court, then yotza Rid have of the duties of the ra. W perfo the court and anothen'=s & perfor the reporter, and I ha) % ystem The Clerk—That exc fter this sentenc he Court—No, sir] it = ment of the court find % guilty, There was no ¢ %, the time, med come in Pupon r the judg- defen but ft don't ma pethe Clork=t will' put | The Court—Put it in af e Judgment of th rt finding the dant guilty f contempt fendar pte,t after the word conter her T right t where it says: = “The Ji nt of the court {8 that the defendu . gulity of contempt of court.” Now, then, add: “De fendant excepts. Later In the day it was attention of the interested partles that the honorable ~court had instructed Clerk Moores not to make the changes which he had ordered at the morning sossion of th court, This was investigated and was found to be tru called to the n recess of the court the of the criminal division of Clork Moores, where ntleman n at the m in_speaking of that Hon his office any ch inserting he Instructed anges Last 1 ores sald ot visited told him not to make cord by ade or defendint excepts.” Clerk Moores furth morning session of told him the pr Al number of the words and that to do until the order wasg by Hon. Cunning Scott of no reason for Scott giving order, as the command was p and was given without any r Judsge Duitie, in discussing the matter, that he was convinced that it was by the honorable judie of the court was for the pu of bolstering up a record that was perforated with and by error In words, ne said that it W nother b the defendant from gettin court with the comple 2 hearing at which by Scott without I the certified record e upreme court as Scott would like to have it, Per cival would have no show, as it would indicate upon | ce that the case went by default and the attorneys took no ex ceptions to the arbitrary rullngs of the cou Continuing the discussion still farther, Judge Duffie sajd that the record would never be certified up in its present form, but that instead of letting it go in that ‘'shape he would secure a mandamus from the supreme court requiring Scott to glve the defendant his exceptions to the rulings, as he should have done in first instance and as he afterwards ised to do. Cunning and_thers in the the words, - stated that at th the court the jud nee of Judge Duflie other ¥ . to he in i so countermanded He knew the second mptory sald trick and al was convicte him to defend, 1 g0 before th WHAT THE LAWYERS SAY, Judge Scott’s Actios the Bench Saturday ndignantly Denounced. pllowing are expressions from members of the Douglas county bar concerning the action of Judge Scott in the contempt case against W, D. Percival: H. H. Baldridge—Aside from the merits of the case it was a most disgraceful pro- ceeding. Howard B. Smith the case, but 1 saw mitke me very tired. John C. Wharton 1l mute, eorge k. T did not hear and heard enough all of to Like Mr. Percival, I st Pritchett—I went to the court house hopilg to sce Scott fine the reporter and every o mnected with The Bt came away feeling that Percival should be applauded. Silas Cobb—Without casting reflection upon the court as a court L consider that Mr. Scott's conduct as a man at the Percival hearing on Saturday was a damn- able outrage on the bar of Douglas county. Tlie man went into an insane passion while delivering his outbursts of fury, and was anything but fair to the attorneys who appeared for the defendant. W. W. Morseman had . fio.hesitation in saying that the action of the court was without - precedent in lils experience. I know but little about the case,” he con tinued, ‘“‘except through the published ac count ‘of the proceedings. was in th court room when the court refused to allow the answer of the defendunt to be intro- duced In evidence and 1 am sure that therc is no rule of law or precedent by which such a ruling could be fairly or reason- by justified. According to the published statement of the procecdings Judge Scott told one of the attorneys that his ‘clatter’ annoyed the court. This was when the at- tory i question wax only making u reasonable insistence on the rights of his client. If this true, as stated, the language uged to an attorney was grossly and In Dly insulting Charles Offutt—The proceedings of last Saturday were lamentably unfortunate, No friend of law and order can think of them without regret. And this I say with- out regard to the truth or falsity of the rticle alle ce Dbeen written by val. It the article was false, Jud medy was by an action for dam- ibel, because the comment was on which had been disposed of when lo was written. Justice Hrewer upreme court of the United States, apreme court of Kansas, in deciding in Pryor, 18 Kan, 176, suld SAfter u ecase Is disposed of @ court or judge has no power to compel the public, or any individual thereof, attorney or otherwlse, to considen his rulings correct, his conduct proper, or even his Intezrity free from stain, or to punish for contempl any mere criticism or animadversion thereon, no matter how severe or unju Judge Scott could profit by the langu of the noted Judge Direese of Ilinois Qelivering the_opinion in the con case of one Stuart, in speaking of power of courts to punish therefor, BTt may be so frequently exercised as to destroy that moral influence “which i thelr best possession, until, finally, the ad- ministeation of justice is Lrought ‘into dis- repute. Respect of courts cannot be com- pelied; it is the voluntary tribute of the publie’ to worth, virtue and intelligence, and wh they are found upon t ment seat, long, and no longer, they retain the public confidence.” Pat O, Hawes—I have @ number hefore Jud )it und for that reason I do not think that it would be wise for m to express my opinfon. 1 think that the pr s in the Percival contempt case, were the most ridiculows that i nick the arf of the when on the re who, smpt the sald: will f cases ever with, W P facts in ¢ have no a judicial To wed ing that te Ahe wnner, it wils I never saw anything s aisgraceful § court It was simply a case where acted a Jurt, prosecuting witness, and executioner, Phe acts of ‘the court”stand without a parallel in the history of jur prudence. H, D, McHugh-Tt o man is srived of the benefit of counsel, T his casc, and it & man I8 to bo de prived of se(ting up a defense to a charge fiteq against him, then the Jiberties puaran od by the constitution of the Uslted Etates are a dely and n snars W. L Cladr—It ¥ 1 rape of the powers of the judiclal and . pro ceeding which would o ven the czar of Russia to hide his head and blush with Shame. The law booka of the olden times il to even mention such a high-handed outrage upon justice. It was the act of Whose W was g0 warped by that cloxed his eyes against and precedent, using his power is personal sple hate. If Judge § hiud agalnit Percival run it into to be de was true ht firatify Warren any. case it by his recent the ground. Taw 10, Suleide of a St JOSEPH, March boarders at the i Druggist Barly this morn Hesse house from on ymers, a of 1L, 81 Ing one of the detected o of the rooms occupied by Phi well known druggist, the hroiher Somers, one of the oficers of e American Biscuit trust. The door wis burt in and s dend body found in an advanced of decomposition e had, It I8 sup posed, died from morphine or some i ine’ poisoning, hut whether accidental or herwise is unknown That Paris Cund Again ADRIAN, Mich., March 2).—Rey O'Rellly has been summoned to Mr.- Justin MeCarthy, leader of par he Bnglish House of ¢ testity to the owner h Hment der with Trother nd been | Mr death trong odor « Charles by Irish Iri - Family Troublos Made Him D REESVILLE, Wis, Marel Mullin, a living one mile west of this village murdered his wife and mitted sulcide at about noon toda i ily troubles are ascribed as (he cause. spovate. James farmer ATIT ] Y THE COURT Union Pacific and the Gulf Lock Horns Before Federal Judges, ARRAY OF LEGAL TALENT PRESENT Question of Court's Jurisdiction Speedily Settled by Judge Caldwell, READY TO PROCEED RIGHT TO BUSINESS Abandonment of Julesburg Branch and In- terest Pay DIGEST OF TH 1'% Allogation Insolvent but Clark When prising ten tered the g building, which verted Into a audience that graphers Judges the circuit court of the states and ropr ments Fully Disoussed, E ARGUMEMTS PRESENTED n that Union Pacifie is Nos Making Claims of Allowed Money by Arbiter Other Railrond News, Caldwell and Sanborn of fghth clreuit, coms four territorles, en- room in the federal temporarily con- they faced an larger Interests 1 jury had been court room, nted than ever before assembled in a court room in this eity. here were | Clark, E. Eller Mink, recely thither to hear tion of reheari ceivers of the pany against Gulf comy companie; 3 lard Teller, Jud intended to rep who with lights Union Pacific that the United the suit. For present Henry tison of Denve labor interests also present, the when or. while dent . H. H. y Anderson and Oliver W. of the Union Pacifie, drawn and participate in the mo= ug in the case of the res Union Pacific Railway com- Union Pacifie, Denver & Representing the several Judge J. M. Thurston, Wil- ge John €. Cowin, who had resent the goverfiment, but iing facility changed to the Judge Caldwell ruled States was not a party to the Gulf road there were W. Hobson and A. E. Pat Representatives of the the Union Pacific were the attorneys for the present Pr of different organizations had seats in one cor- ner of the room 1, where they carried on an interested conversation until the appearance of the court. Harper for the the engineers a senting the gen were also a number These attorneys were T. H. firemen, Fulton Gault for nd George L. Iodges repre- cral forces of labor. There of local legal lights interested in the hearing of the case, which promises to become famous in the rallroad world because of the contentions made on both sides relative to the operation of the Julesburg branc| L of the Union Pacific sys- tem and the rights of receivers to abrogate contracts at will, QUESTION OF JURISDIOTION Attorney Hobson, after an intimation froin the court that it was ready to hear any- thing in-the case of Oliver Ames second and othiers against t Gulf, stated th court he was ad that the recelve ver & Gulf was he Union Pacific, Denver & at he did not know what dressing, in view of the fact r of the Union Pacific, Den= not a party to the record of the Nebraska court, but was a party to the records In Colorado and Wyoming. He also stated that he desired to ralse the question as to the, juried iction of the court, whether the court was sitting as the circult court of Nebraska, state that three In which event the recelver was not a party to the court. He then went on to cases were pending, and he did-mot know which one the court desired to take up. He stated that an order was made in the circuit court of Nebraska which was purely ex right” to cease branch. Subseq petition in the c parte, giving the receivers the operating the Julesburg quently Mr. Trumbull filed a yurts of Colorado and Wyom- ing asking that the order of Judge Dundy be sat aside. ing in which Pacific Then came the afiled a petition for a rehearing. stand here,” said Mr, court of Nebraska, cuit we are in the appeared. A Later the case came on for hears the attorneys for the Union decree was entered. Pacific receivers and “We do not Hobson, “in the cir- but contend that court of Colorado Union circuit and Wyoming, and we object to appearing be= fore braska.” Judge Caldwe as to his which Mr. The reply was honor, for Judge but hit “'this court has c upon this_quest braska, understanding of the Hobeon Wyomi; your honors as circuit judges of Ne, 11 then asked Mr. Hobson case to replied. not very satisfactory to his Caldwell didn't do anything the Gulf a blow by remarking that competent jurisdiction to pass fon whether sitting In Ne- ng or Colorado. Judge Dundy’s court s the court of primary juris- diction and it must be so regarded by every interest.” Mr. the unexpected (hat there was Union Pacific, but that its within th Judge by Judge Union P of the e Pacitie, Denver onstructive mil took exception ment and stated Union Pactfie t Julesburg branc tion entirely in v case wherein ond Judge harmonize matte upon in order t) ences, Judge Caldw that the cese wi Brewer sat at and was not h his court. Ho it conrt sesslon ar make any orde it operative ull stion 15 th Judge Cal will congid will make what other districts sary to become In a circuit the four territories, as much busine the United State the court to « informed that th March 26 for metion for a rel formed to f arguments?”* to “Very the ific well motion for a reliearing in this case,” his honor Mr. Hol state its furisdic as the cirult ¢ euit court of the would not coim and Mr. Hob well stated that motion for a r AL this n senting the court intendod polnted to arbit filo pape s Judge on also file an Hopson, somewhat cntire states of Color Thurston stated that the order made Hallett and to rnings of the company to the Union Bent a of that 8 ne the taken aback with ruling, then sought to show not a foot of road of the senver & Gull in Nebraska, system was comprised do and Wyoming. Riner compelled the pay @ certain proportion & Gulf on the cage of 3 to 1, Mr. Hobson to Mr. Thurston's states that the order compels the. o operate trains over the h and leayes the compensas ab ice. He then cited Judge Caldwell issued one ther, and that to rs Judge Brewer was called hat there might be no differs basis of a ell, In explanation, stated as not similar in that Judge Leavenworth in chambers Iding a regular session of further stated that the Nebraska was In regulap the circuit judges would ssary, and wonld make over the uit. “Your it we sit in these districts,” Iwell to Attorney Hobson, fer the questions’ here and orders are necessary lu the We do not think it necess circult riders In this case, ten states and havirg almost four times any other eircuit in comes necessary for matters. You were would sit in Omaha of tuking up the You were also ins go ahead in these Hobson assented. d with the replied it L pedite ¢ court PUrpose earing 1o Mr nwe will go ahe Caldwell aln sought to have the court ton whether It was sitting rt of Nebraska or the eirs Kighth cireuit,but the judges U themsolves at this time gat down when Judge Cald- the court would take up the Attorney labor Hodges, repr asked If the recelvers ap= ¢ question to i ' disagreoment h wanted te wer Caldwell Lotde