Omaha Daily Bee Newspaper, January 13, 1895, Page 1

T, I PART 1. ! B THE OMAHA S ESTABLISHED JU = — —— 19, 1871. OMAHA, SUNDAY MOR NG, JAN’UL.ARY 13, 1895—SIXTEEN PAGES PAGES 1 TO 8. b wy FIVE CENT WILL YIELD NOTHING Japan Proposes to Hold All of China's Ter- ritory Now Ocoupied, WAR WILL NOT BE ENDED VERY SOON Military Party Controls and is Eager to £hed More Oelestial Gore, ASHAMED OF THE PCRT ARTHUR AFFAIR Japaneso Authorities Endeavoring to Hush Up All Reports of the Massacre, EFFCRTS AT BAIBING CORRESPONDENTS Tempting Balt Held Out to Secure Suppres- slon or Blused Btatement of the Facts —Characteristic Chinese Eplstie to Marshal Okyamn. Copyrighted 1805 by Press Publishing Company.) TOKIO, Japan, Dec. (via San Fran- clsco, Jan, 12).—(New York World Corres- pondence—Special Telvgram.)—I learned last night that Field Marshal Okyama has an- nounced to his friends that Japan will never glve up an Inch of the conquered Chinese peningula, and that Port Arthur and Talien- whan must now bo recognized as Japanese fortresses. It seems to be certain that Japan will insist on surrender of the whole Shin King province, although her armies have not yet completély subjected it. Preparations are now being made for a permanent Japanese government there. This would include such fmportant citles as Moukden and New Chang, against which the operations of the First and Second army corps are directed. The army will never consent to peace on any other basis, and the administration of Count Ito Is too weak to control the military leaders, or stand against thelr program. The emperor is entirely in the hands of his military advisers, Apparently Japan will ask for a money indemnity, varlously es- timated at from $150,000,000 to $400,000,000, and the cessation of the Shin King province and the island of Formosa. 2 But, in any cace, the cry of the whole army is still for the Immediata oceupation of Peking. Tho announcement that the Chi- nese emperor had authorized Chang Ting Huan to procced to Japan and arrange for peace at any price made no sensation here, for it is generally recognized that the Jap- anese Intend to prolong the war. There seems to be no Intention to end the struggle. I have been assured that the cabinet recog- nizes the improbability of checking the war fever. SENDING OUT FALSE NEWS. The Japaneso government and the native press are still in a rage over the World's honest description of the barbarities at Pert Arthur. A desperate attempt was made to conceal the most significant facts about the great massacre until the new ireaty could be rushed through the senate, but it was be- cause the treaty was about to be considered that I refused to suppress a single detail of the butcherles. The London Times' corre- spondent was approached by the government and yielded to an appeal {o send a mislead- ing cablegram to his paper in order to break the force of my dispatches in advance. The government cffered to give the Times spe- clal facilities for news and agreed to pay all the cable bills of that journal. The Times consented to allow the government to pay the expense of all cablegrams beginning “The government requested me to state,” or words 1o that effect, and authorized the government to send these prepaid dispatches, even when its correspondent was mot present. This delicate form of bribery worked successfully, and the Times correspondent has on several occasi-ns sent cablegrams at the request of the government which he knew to be partly falso. All this is intended to influence the actions of the United States senate. The cor- respondent of a San Francisco paper was al- lowed to go with the Japanese army, and his first act was to write an attack on the World. He, too, had been ‘“relaxed.” ‘When my description of the Pirt Arthur trocities was published the Japanese min- ter at Washington immediately cabled the most important parts of it to his govern- ment. The forelgn office sent a prominent man to approach me. He sald the govern- ment was ready to make a generous arrange- ment with the World on condition that I shuld cable at once something to soften the truth, He declared that the gov- ernment recognized the difficulty of getting a body like the senate to confirm the treaty in the case of such disclosures. He had not come to discuss the morals or the facts of the situation, TO INFLUENCE THE SENATE. He had an offer to make, The Japanese gevernment was willing to make things ex- ceedingly pleasant for me and give the World all the dispatches from the seat of war ahead of any other paper. The World would thus have control of the news. The only re- turn the government asked for this splendid and exclusive priviiege was that I should send, over my name, a single message throwing doubt on my Port Arthur dis- patch. The avowed object of this was to enable the agents of Japan to hurry the treaty through the senate under the influence of Mr. Cleveland's recommendations. I re- plied that I could see no way to soften the effect of the Port Arthur slaughter, unless the emperor or his responsible ministers would officially deplore it and order an in- vestigation publicly, with a view to punish- ing the generals who permitted the massa- cre to occur for three days after the battle. 1 had written my dispatch as an eye witness and was forced to the conclusion that such a vast orgle of murder in cold blood amounted to a revelation of the capacity of the Japan- ese to adhere to clyilized warfare. I had written the plain truth, and it was for the senate In its sober deliberations to decide whether, under the circumstances, it was wise to turn over the lives, property and Mberties of Americans to the unrestrained control of Japan, or to wait for a few years more. 7 The representative of the government begged me to consider the matter for twenty- four hours and then send him an answer. He thought the World would be glad to selze such an unparalleled opportunity to get ahead of its rivals, I sald that it was not necessary to consult the World on that point, as all its representatives are comy tent to deal with such questions, The next day 1 sent a formal letter decliniug the fer, and saylng that there was not money ugh nor Influence enough in Asia to con- 1 @ stroke of my pen; that Japan's worst ehemies were those who flattered aud de< luded ber. . Since then the whele native oo press of Japan has attacked me and the subsidized organ of the government, the Japan Mail, has announced that the World s the worst newspaper in America, and all this because I refused to follow the example of the London Times and sell out. ONE IMPORTANT OPINION. The Japan Gazette replies editorially: Judging from the violent tirade directed against it, the surmise ls excusable that after all the World Is of some !mportance, That, however, we are not prepared to dis- cuss, but it might be interesting to recall the fact that the World did more than any other paper to secure the nomination and fon of the president of the United States, who appointed Mr. Dunn, an ardent friend of Japan, to be the American minister at Tokio. There fs a treaty awalting ratifi- cation by the United States senate. Whether the World be impotent or not, the result of the debate on the treaty will disclose, What s of infinitely ‘greater importance to us is the fact that the atrocities com- mitted evoke no condemnation, They are excused, denicd and minim] 1, but never condemned. The ministers know that the Port Arthur story of blood and cruelty will now remove the vell from western eyes and they fear for the verdict. lut if we are to judge from the tone of the Japancse papers, the grief will begin and end with the ministers. A large num- ber of the Japanese w-uld, seemingly, rather assist In a similar outrage than convict the perpetrators of wrong. 1t is rumored here that the Japanese gov- ernment is prepared to spend a large sum ot money in Washington in order to carry out its scheme. How money can affect the situ- ation I cannot say. Meanwhile I have re- turned my military pass to Viscount Mutsu, the mindster of foreign affairs, and have of- fered to cable at the World's expense anything the govenment has to say. The general understanding is that the Ut- sendal garrison Is being sent to China to satisfy the cry of the opposition and military parties for an immediate advance on Peking. It is reasonably sure now, though, that the next assault will be on Wel Hal Wel, and the new expedition of the northern troops will probably undertake the capture of the fortress forthwith. Cold weather is China’s only active ally at present, and every mes- sage from the front brings news of soldiers and coolies dying from exposure. CHINESE UTTERLY INCOMPETENT. A Jletter addressed by the Chinese generals at Port Arthur and the governor of that stronghold to Major Cameo has just been made public. It illustrates better than any- thing I have seen the utter inability of the Chinese to grasp the military situation. In my dispatch describing the battle and mas- sacre at Port Arthur I gave a copy of a let- ter addressed to Major Cameo in behalt of the fleld marshals asking for the surrender of the forts. Here is the reply that was re- celved: In reply to yours we beg to state that at this moment we intend shortly to engage you in the fleld. We have received your communication, by perusing which we learn for the first time that you were once in Peking, with the minister for your country, and traveled on occasions between Tien Tsin and Taku. During that perlod we humble generals were away from home on official business and could not enjoy the op- portunity of personally welcoming you. This i8 to us a matter of most profound regret, Now, contrary to our expectation, we have received your kind favor, when we are about to meet you in battle, explaimng our dan- gerous position, and suggesting the course to be taken by us. We are truly grateful for the kindly consideration you have dis- played toward us. You have dwelt on the defeats that our army and navy have re- cently suffered, and you boast of the strength of the army and navy of your country. We must, however, remind you that your statements are entirely erroneous, and in particular you are utterly ignorant of the position of our middle kingdom and the ability of the officers of our country, The defeat of the Chinese troops at Asam was attributable to the fact that our coun- try dispatched troops to Corea at the re- quest of that country only to suppress the insurgents, the true intention of our coun- try being not only to arrest the ringleaders, but to disperse those who were compelled by threats to join the insurgents, and we had no desire whatever to kill any of them. TOO SWIFT FOR THE GENERAL, For this reason our country did not deem it necessary to send any particularly able officers or powerful troops. Quite unexpect- edly your country opened warfare against our troops without apy cause whatever, and 0 sudden was the onslaught on our troops that General Yol could not find time to prepare any defense against them, In de- fending Ping Yank one of our generals lost considerable time in executing his plan of eoprations. These two defeated generals are now undergoing examination by our, gov- ernment_in reference to their neglect of duty. Had there been at Asan and Ping Yang proper commanders in charge the re- sult of the action might have been different. Lastly, as to the defeat in the Yalu district, General Ito with his ablest asslstants was present there, but before a large force had been mustered, the assistant commanders, thirsting for glory, advanced too reckléssly and were finally entrappcd in the ambush of the wily enemy. Thus was reversed the victory of our army. Such errors on the part of commanders are inevitable in carrying o nany war. The question of the strength of two countries cannot be gauged by the def-ats or victories of a short time, You, because of a few casual successes In action, now despise us. When commanders are the least bit discon- certed, all the men under them are alien- ated from them, The truth of this saying has been verified in every battle from an- cient times down to the present moment. You are proud, and the defeat of your arm being foreshadowed in your pride, we feel great apprehension on your account, OLD TIMBE FIGHTERS, THESE. We humble generals have been with the army from childhood, and have risen to our present position on account of good services in the field. We exterminated the long haired rebels as well as the Mahommedan rebels, after fighting aimost countless des- perate battles. We have thus had a certain amount of fighting, and have been espeelally chosen by the emperor for the duty of de- fending Port Arthur. You stated in your letter that the troops garrisoned in this place were raw recruits You are ignorant of the fact that they a all well trained braves from Kowai, who have already the reputation of being the strongest division in our army. They are assisted by pleked en of Pel Yang and the eastern provinces. These picked .men now garrisoning Port Arthur number over 30,000 All the officers are in perfect accord and the men are perfectly disciplined, They are well aware that the place 15 surrounded by the e on three sides, leaving them no road to retreat. They are all prepared to die and have no desire for life. “The lord of Wai-In, one of the ablest gen- erals in olden times, when invading the state of Chow, took up his position before a lake, thus preventing his men from re- treating, and was successful in the action. These tacties have been admired by all na- tions ever sine2, An old saying has it that the army of the just side is the younger and that of the unfalr side the older, SOME CHINESE CONSIDERATION. Ever since your country was opened to trade with forelgn powers, our emp-ror has regarded all thore powers on one level, and on all bestowed his universal love, and he has never showed any hostile feeling toward your country. |t s recognized by all the poweis that Corea has been u tributary of our empire for over 60) years. Your country has now broken the great treaty without T (Continucd on Becond Page.) il DISCREDIT HIS YARN Englishmen Refase to Believe the Story Told of Armenia by Senor Ximenes, HIS KNOWN RECCRD IS AGAINST HIM Experience in the Past Leads to the Con- clusion He is Unworthy, RUSSIA MAY MOVE AS SHE LIKES England Will Not Interfere to Save Turkey from a Sound Thrashing, ROSEBERY IS ON EASY STREET AGAIN His Party Glving Out the Statemont that the Premler is Strong Enough to Carry Ris Irogram in the Coming Session, (Copyrighted 1805 by Press Publishing Company.) LONDON, Jan. 12.—(New York World Cablegram—Special Telegram.)—The Paris edition of the Herald printed with unusual prominence yesterday a communication from one Senor Ximenes, denying the fact of Ar- menian atrocities. Editorially the Herald sald: “All the erroncous nonsense and exag- geration fabricated under the the name of the Armenian atrocities has at last been effectually isposed of by the narrative of an eye witness, Senor Ximenes, a Spaniard of scientific attainments and a member of the Royal Geographical society, who has just re- turned from the scene of the much magni- fed disorders and emphatically denounces as absolute fabrications the horrible details of monstrosities that have been so wantonly and designedlly spread in England and America. In fact, says Senor Ximenes, in Armenia itselt the Armenian question does not exist. Now, that the truth is at last coming out, we hope that the eye of the English and American dupes of the wily Armenian wire pullers and agitators will be opened.” Concerning this Senor Ximenes, Mr. S. BE. Wheeler, the well known writer on eastern questions, published the following letter in the St. James Gazette: “It would be a relief, no doubt, as you observe today to get im- partial evidence from Armenia, but the Spanish traveler, Senor Ximenes, Is scarcely a creditable witness. Not long ago he gave a circumstantial and full flavored account of his journey to the Pamirs. He also wrote to an English politician offering to impart im- portant information about the state of affairs in that region. The latter made inquiries and found that Semor Ximenes had never been to the Pamirs at all and that his journey was an invention. A few other personal details were elicited, but In regard to these, I should prefer to say nothing, except that they showed him to be gifted with an imaginative faculty of rare dimensions.” PROMISES THEM A LICKING. The Speaker vouches for its Constantinople correspondent, whose report of the atrocities were cabled yesterday, as ‘“writtten with knowledge and authority not inferior to that of the British ambassador at the Porte.” The editor of the Speaker, Sir Wemyss Reed, is recognized as more nearly the spokesman of the liberal government than any oge in the daily or weekly press and the following language In the same editorial has made a de- cided sensation today: “No one will dare to stay the armies of Russia if they should advance for the pur- pose of putting an end to the reign of terror that in this age is execrable and intoler- able. Our ambassador at Constantinople has, we trust, recelved full instructions on thig point and has already made it clear to the Turkish government that not a finger will be raised either by England or any other power if, through their own malignant hatred of the Christian population, the Turks should incur the just and summary vengeance of the czar.’’ M'CARTHY MAY QUIT POLITICS. Justin McCarthy's advisers have counseled him not to send the letter to which I re- cently alluded, since it is now admitted that Healy's revolt will not be serious, There is no doubt that Mr. McCarthy would consult his personal interests in retiring from the leadership, since, I am informed by one of his most trusted followers, his income has shrunk from some $15,000 per annum to about $3,000, so absorbing have been his po- litical duties and so devoted is he to them. If he gave up politics he could easily com- mand his former earnings from novels, Journalistic work and the'lecture field, Only Tast fall he felt himself obliged to decline an offer from America of $15,000 for 100 lec- tures there. He tells me, by the way, that he is much mystified just now by the flatter- ing attenitions he has received by cable from an anonymous admirer in New York, who simply signed herself “Mary.” This lady hed for some time been cabling him at con- siderable length concerning her clalms to be the queen of Ireland, She says she has proof, both documentary and genealogical, and an- ticipates no opposition from Queen Victoria in ascending the Irish throne when she fur- nishes her evidence. Her latest dispatch said she proposed sailing shortly to take pos- session of her kingdom, and assuring Mr. McCarthy of her royal favor, in token of which she would appoint him her first prime minister. ROSEBERY FEELS EASY, Lord Tweedmouth, a leading member of the Rosebery ministry, said to a friend and par- liamentary colleague today that the persis- tent reports of dissensions between the prime minister and Sir William Harcourt or any other member of the cabinet is pure inven- tion, and that the government feels sure of a sufficient majority to carry out its program at the next session. It seems to be com- monly understood that Mr. Labouchere will bolt, but it is not believed that he will carry with him more than two votes besides his own. The Dublin Freeman's Journal has the fol- lowing editorlal: Some of the London papers, notably the Times, are reaping a good deal of unde- served praise for thelr accounts of the mas- sacre at Port Arthur. is apparently for- gotten that five weeks ago the correspondent of the New York World cabled to his pap-r a short message, which was reproduced in the British papers, describing the atrocious conduct of the Japanese. Three weeks aft- erwards, on December 2), the same paper published from the same correspondent a letter of many columns in length, giving with the utmost detail ‘and in the most thrilling style, a Cescrijt'on of the ma sacre, Lengthy extracts from this letter were also cabled {o the press of these {slands and pub- lished bLroadcast. But now the papers are writing on the subject as though the Times was the first exploiter of this blg plice of sensational news. There is not an incident in the Times or the Standard acgounts that was ot already describ:d weeks ago in the New York World and described far more effectively, BALLARD SMITH, HOHENLOHE TO $EE BISMARCK, Germany's Premior to Ualli in Stato on the Aged Ex-l lor. (Co righted, 1896, by the Assoclated Press.) BERLIN, Jan. 121t was announced this afternoon that the chancellor, Prince Hohen- lohe, will start tomorrow on his long talked- of visit to Prince Blsmarck, who is now at Friedrichsruh. This visit has been post- poned during the Christmas recess, owing to the_fact that he has been suffering from an acute attack of neuralgia In the face. Prince Bismarck, in spite of his intense grief at the loss of the princess, his wife, re- mains in fair health, The reports published in some newspapers that his mental powers are failing are quite unfounded. Count Von Moltke, aide-de-camp of the em- peror, returned to Berlin today, after accom- plishing the imperial mission of presenting Princo Bismarck with a glft of flowers, yes- terday being the anniversary of the prince's memorable speech in the Relchstag advocat- Ing an increase of the strength of the Ger- man army. The emperor's alde brought back from Friedrichssrub, a letter in which Prince Bismarck heartily thanked the em- peror and expressed great regret that the state of his health prevented him coming to Berlin in person. A certain newspaper of Berlin professes to know that tho emperor intends to visit Prince Bismarck at Schoen- hausen at the beginning of March. This statement, however, lacks confirmation. It was rumored that the minister of com- merce, Frieherr von Berlepsch, is about to resign, and that he will be succeeded by Herr Studt, governor of Westphalla, It is also stated that Frieherr Marschal von Blebersteln, the imporial secretary of state for foreign af- fairs and minister of state, has the same in- tentions, and Count von Hetzfeldt-Wilden- berg, the German ambassador at London, is spoken of as his successor. The position of Dr. Carl von Boetticher, vice president of the Prussian council of ministers and imperial secretary of state for the interior, is also declared to be shaken. NO OCCASION FOR SURPRISE. These resignations, in view of what Is creditably affirmed to have occurred at a cab- inet council early this veek, need not cause surprise. During the debate on the antl- revolution bill in the Reichstag on Tuesday Prince Hohenloho presided at a meeting of the ministry, and the question of dissolving the Reichstag was for the first time openly discussed at the instance of the chancellor. Dr. von Boetticher, who like Frieherr von Bieberstein, has thus far not lifted up a fin- ger In behalf of the passing of the bill, de- clared that it was his donviction that the measure was sure of being defeated in the Reichstag. Fricherr von Bieberstein ex- pressed the same opinion, and hence the re- ports of further changes in the ministry. The statements of the:members of the cen- ter party during the debate‘on the antl-revo- lution bill bear out the previous understand- ing that the support of thé centrists In the attempt to pass the megsare will only be given if the government iconcedes their de- mands, notably the:return ‘of the Jesuits to Gormany, and after {mpértant alterations have been made in the Bil: i That some legislation fn'the agrarfan inter- est will be submitted by the government appears now to be pretty sure, in view of the utterances of the emperor during the last few 'days. Hls majesty is known to have impressed the ministry at a recent meeting with the necessity of proylding for the needs of husbandry, and on Wednesday night, in conversation after dinner with the officers of the Hussar body guard at Pottsdam, the emperor being the guest of the Hussars, he remarked: “Something must be done for our tillers of the soil, o the prosperity of the whole country will be seriously affected.” It is a significant fact in connection with the agrarian question that the agrarian leader, Ccunt von Morbach, whose name, it will be remembered, was struck from the list of the emperor's guebts at the banquet at Koenigsburg last autumn, has just issued an clectoral address, . fn which he says that he. was greatly pleased dur- ing his recent -stay in Berlin to percelve that the high authorities are now convinced that only by working in unison with the views of the conservative party can they accomplish any good for the father- land. AMBITIOUS TO CREATE A NAVY. The following remark is attributed to the emperor, and is said to have been uttered by him during the course of the address which he delivered on. the German navy last Tuesday when he represented to his hearers that, in view of the fact that the German merchant marine was now the sec- ond largest in the world, the German navy shculd be increased by a number of fast cruisers. He is quoted as saying: “As my grandfather made the army what it is, so 1 want to make the German navy great.” The drawing, or mep with which Emperor William illustrated his speech on the navy has been deposited among the archives of the Herrenhaus of the Prussian Diet, The socialists continue making a hard fight against the government, The Vorwaerts an- nounces that during the past months forty socialist editors have been sentenced for varlous offenses such as lese majes'e and for insulting public officials, The American consular reports ~from various districts of Germany for the last quarter are favirable to Germany's export interests, The Hamburg districts shows an increase of §500,000 over #le same quarier of 1894; Breslau shows an kncrease of $350,000; Mayence, $150,000; Mera, $1,700,000; Magde- burg, $600,000; Chemnuitz, $200,000; Glauchaus, $52,000; Berlin, $260,000. In nearly all of the other districts a great increaso is re- ported, Emperor Willlam has daused a hugo lawn tennis court to be ercetéd for winter use in one of the largest halls of the exposition, near the Lehrte depot. It will be used by the while court for the mext three months. During the court’s stay fn Berlin a rather gay season may be expeeted, If the program of festivities sanctioned by tha emperor is not interfered with by wnfireseen circum- stances. The whole series of balls, masquer- ades and receptions have been arranged. Henry Villard has annganiced his intention of rexiding in Berlin in the future. Lately he has been living in Mugich, Two hams imported from America have been seized In this city because they were strongly infected with trichinae. A Russian hog has also been seized for the same rea- son. The minister of husbandry and of the interlor issued a general (rder to the provin- clal presidents to enforge the sanitary in- spection of all meat offered for sale. Thirteen cadets belonging to the ordnance school of Mogdebuzg, who were implicated in the recent acts of insubordination, were taken t day to the fortress of Spandau, where they will serve long terms’ of imprisonment after huving been degradea. Lieutenant Hoffman’has mys'eriously v ished from the garrign of Harbug. He is supposed to have Sommitfed suicide, al- though he hed his baggage'and the sum of 400,000 marks with him. THe reasan for this supposition is that part of his bAggage was found on tbe banks of the Halenace, SCHOOL FUND ROBBED South Dakota’s Magnificent Educational Endowment Proves Lusoious Plunder, CROOKEDNESS OF THE LAND COMMISSIONER He Used His Office to Bolster Up His Bank During the Panio, COLONEL RUTH STOOD IN WITH TAYLOR Conclusive Evidencs of Complicity of the Two in Looting the Treasury, LATEST SCANDAL DEVELOPZD AT PIERRE Legislature Makes the Startling Discovery that for Two Years the Law Has Been Ignored to Enable Thieves to steal, PIERRE, S, D., Jan. 12.—(Special Tele- gram.)—“It never rains but it pours.” The state officers who have for the past three days been paralyzed over the flight and de- falcation of Treasurer Taylor are today filled with consternation at the revelations which every day is bringing forth. No attention is being paid to the legislative proceedings. Even the members spend little time in the chamber. They and the officials are busy discussing the fresh disclosures which each hour brings forth. Today another sensa- tion has come to light, which raises a greater storm than even the flight of the treasurer or the conspiracy of certain of the bonds- men to hold up the state for the cash and a release. This time another high public official is im- plicated, and the evidence is so conclusive and so damning that it has shaken the state government from end to end. It appears that Commissioner of Public Lands Colonel Thomas H. Ruth, who, by the way, is at the head of the militia of the state, has acted in gross violation of the statute and has thereby cost the state more than $100,000, It is felt to be certain, morcover, that he has been an accomplice of Taylor in diverting the public funds to his own private uses, and that he is equally liable. HAD CONTROL OF MILLIONS. The commissioner of public lands has con- trol of all the school lands in the state. ‘When South Dakota was admitted into the unlon she was granted 3,000,000 acres by the gencral government as a school appor- tionment, This land cannot be sold for less than $10 an acre and each year the commis- sioner offers it for sale on an appraise- ment, which he makes. No land is sold for less than the appraisement, but particularly in the more ‘populous counties, very large sums- are realized. This office Lundles hun- dreds of thoysands ‘of dollars fn this way, and when the mopey 1s received for the sale it 1s divided among the various counties, and by them loaned on approved security. The interest on these loans and also the interest on the deferred payments on the. land sale is divided among the schools of the state in proportion to the school population, The fund has grown so large that from $100,000 to $200,000 is divided each time. The statutes provide that the appraisement shall be made on June 15 and November 15 of each year. The state treasurer has the custody of the money, but the commis- sioner makes the distribution. PLAYED INTO EACH OTHER'S HANDS. It now appears that both Commissioner Ruth and Treasurer Taylor have been acting in concert for two years and that they both used the funds for their own private benefit, and are both concerned in the great loss which the public has sustained. The legislature has now ordered a thorough in- vestigation of the commissioner’s office, and it will doubtless find that there has been a widespread conspiracy, covering a lgng time. The actual facts of the conspiracy between the treasurer and the commissioner are not generally known here, but the following story will be brought out on the investiga- tion, which will take place at once: Colonel Ruth, like Treasurer Taylor, s a banker, his bank being located at DeSmet, the county seat of Kingsbury county. When the panic of 1893 came on there was on hand in the school fund fully $200,000, a large share of which was in the DeSmet and Redfield banks. In common with other banks, these two felt the press of the run, and they profited by their use of the state funds. According to the statute the appors tlonment of the school funds should have been made on June 15, and the schools in various parts of the state were expecting it, especially needing it in view of the hard times and the slow collection of taxes. COUNTIES BECAME CLAMOROUS, The regular course would have been for the commissioner to have apportioned the fund and sent the vouchers to the various counties before the 1st day of July. In. stead of that, Ruth left for Carmichael, Penn., his old home. Time passed along and nothing was heard from the school fund. The counties began to clamor. They had nothing to pay their school expenses with. The county auditors, who have the loaning of the permanent fund, began to send in strong demands for the apportionment of the fund, with vigorous statements that its dis- tribution at that time would mean the relief of thousands of people who were struggling agaipst the wave of depression just then devastating the entire country. The deputies in the commissioner's office replied that Ruth being absent, nothing could be done The pounding terrific, but they were powerless. About this tme Ruth sent a let- ter to Treasurer Taylor and also one to the treasurer of Clay county, and in some way mixed the envelopes. This letter, which Pub- lic Examiner Myers stated to a number of officials at the time he saw, read substan- tally as follows: There seems to be a great pounding in the state over the holding up of this state money. The only thing we can do s to let them pound. We have as much use for the money as any one. I must have that $i5,000. Don't let the monsy be apportioned till my return. POUNDING BECAME TOO HEAVY. This letter was returned by the treasurer of Clay county, who showed It to several persons, but did mot report to the state officials, This is remarked as showing con- clusively that Ruth and Taylor were, during the panic, using the banks, Instead of distributing it to ths peopls where It belonged. The pounding, however, became very hot, and the deputy sent on the letters to Ruth in Pennsylvania He finally, about the first of August, wrote his deputy, instructing him to apportion the permanent fund, which amounted at that tme to §87,000, and Stated (bat there were was state money In their THE BEE BULLETIN, Weather Forecast for Nobraska Falr; Warmer; Southerly Winds. Page. 1. Japan Not Ready to Quit Fighting. Herald's Armenian Story Denled. Stole the seh and Also, Burlingten Robbed In Towa, Teller Tells of Silver's Virtnes. Income Tax Cannot Be Evaded. Town's Rates Will St Intact. Story of the Cold Wave. House Delays Rellef Mensures. Fuel for the Destitute Offered. Spirits Locate Seott's Body, st Week In Loc Decadence of th | Socioty Clrele! Opera Doplored . Commissloners Call a Grand Jury. Sons of Omaha Given Hanquet., Money 1o Makiog 11l Ating Gas. . Councll Biuffs Local Matters. Affairs at South Omnha, . Weekly Grist of Sporting Gossip, Wor Her Ways and Hor World, Boys' and Girls' Dy Jitorial and Comment. oyal Court ot Coren. Manufacture of Boet Sugar. Omahn Club in Its Own Home. What thie Churches Offer for Today. . Condition of Omaha's Jobbing Trade. Commerclat and ¥ al News. atures of the Live Stock Trade. eatrical and Musical. Part 111—Chapter I Co-Operative Home Bullding Notes. partment, in his drawgr signed vouchers. In case there were not eyough vouchers, the deputy was to send @ new set to him for his signature. Only two were found, and the deputy sent him a now book. At this time Ruth's wife was sifk, and shortly died. The deputy had made the apportionment of the per- manent fund, and had notified the counties that their vouchers were ready. Not getting their vouchers and their money, they con- tinued their pounding, and Ruth wrote be- tween the death and fumeral of his wife that he would attend to the matter in a few days. He did not do so for three weeks, and then wrote that he had decided not to, writing to the county officials that no apportionment had been made because there were no funds on hand. At this time the fund amounted to about $130,000. SCARED INTO SETTLEMENT. In September the school board of Sloux Falls began suit to compel the payment of the money, and Ruth, having meanwhile re- turned from the east, became frightened and pald what was due to Minnehaha county, but none to the other counties. Finally, to- ward the last of November, Ruth made the apportionment, which had been due five months before, but instead of apportioning the $97,000 which had been in the fund when tho deputy had apportioned it In August, he aistributed only $85,000, although there was at that time In the treasury more than $130,- 000. The governor wrote to him, etating that he was mot complylng witn the law, and ordering him to proceed and do so, polnting out that the people of the state in thelr de- pressed conditfon needed”all’ the mohey pos- sible. Ruth replied in an insulting and im. pudent letter, in effect telling the governor that it was mone of his business, and re- questing him to keep out of the land office. The balance of the school money, which was constantly growing, as the semi-annual interest was paid and the lands were sold, was thus kept in the treasury until the fol- lowing June, when a correct apportionment was made. By the holding up of this money and the conversion of it to his own use and that of the treasurer, the state was put to a loss of at least $25,000. Ruth had never made any explanation of his action, except to state that to draw out the money from the banks at that time of panic was to bring about a crash. HE HELPED TAYLOR OUT. Now comes the remaining ome of the most important parts of the story. The last apportionment was due on the 15th of last November, and had the statute been fol- lowed the money would have been paid then and the state would have saved $90,000. Ruth was again in Pennsylvania. On the 8th the deputy made out the schedule of the apportionment and sent it to Ruth for his approval. There was at that time ‘In the permanent fund $42,626, and in the in- come fund $51,543. The schedule was re- turned as correct, and tho deputy notified the counties. Ruth returned toward the end of November, but though the statute is mandatory he refused to send out the vouchers to the counties until December 27. This left practically no time for the county treasurers to draw on the treasurer before the end of the year, and only $7,000 was o drawn., When the rest came in they found the treasury empty and the treasurer flown. There is no question In the minds of the officials here that Ruth and Taylor were and had been from the panicky times of two years ago closely interested in the dis- position of the public funds; that they were both using them for their own private profit, and that Ruth, knowing that Taylor was short, held back this last apportionment to the last day to allow the treasurer to make a turn and replenish the fund of the state. Had he distributed the money at the time prescribed by the statute the vouchers would lavo been presented and cashed before the end of November and the school fund would nave saved fully §$90,000. M WAS INDICTED, Grand Jury of Brule County ¥ Him in the Bank Cas (Special Tele coming thick and fast. A new one was sprung this morning, which is of much less interest than the Tay- lor affair, but still, as it involves one of the highest oficials of the state, it has set the legislators by the ears. It Just leaked out that Judge Kellam of the supreme court was indicted a short time ago by the grand jury of Brule county for Lis action as presi- dent of the defunct Brule County State bank In recefving funds for deposit after the bank was known to be insolvent. This bank failed early in the spring of 1893, and when an examination of its af- fairs were made it was found that the presi- dent, then as now a supreme judge of the state, had borrowed about $7,000 without rendering security. The cashler was also in- debted to the bank for $10,000 without se- curity. His name was Skerry, and he was identified with the Stock Yards bank of Sloux City, ,which Aailed about the same time. Judge’ Kellam was severely criticised at the time, and es it was known that the bank had received deposits for a considerable lime after it was known to be insolvent, a bitter attack was made on him In the press and at the republican judiciary convention, which met a few months after. However, he turned over considerable property Lo offset his debt eived a release from the receiver of (Continued on Second Page.) JUDGE KEL| und Agalnst PIERR! gram.)—Sensations are SIX-SHOOTERS ~ WON Daring Hizhwaymen Loot the Burlington Expross Car Near Ottumwa, TWO MEN BIND AND GAG THE TRAINMEN One Handled the Revolvers While the Other Did the Work, ALL DETAILS VERY CAREFULLY PLANNED Booty Thrown Into a Sack with Which the Robbers Escape, WENT TOWARD THE ABANDONED MINES Posses Immediately Started in Every Direen tion to Head Off the Bandita— Vague Idea as to the Amount Securod, OTTUMWA, Ia., Jan. 12.—(Special Teles gram,)—One of the most daring train robe berles ever attempted was successfully exes cuted on the Burlington passenger train Noe 4 near this city tonight. No. 4 is the Bure lington's through passenger train from Dene ver to Chicago, and carries a big quantity, of mail and baggage. It was not known that the train carried a more valuable cargo of mail or express than usual, or it it was it was kept qulet, but it seems that two robe bers knew that the express would make a valuable haul, and they planned to bag it. They held up the train, but molested nothing but the express car, though after they had finished this job they stood for ten minutes and waited for the train to stop long enough to have robbed the mail cars or the pase senger coaches, The agent at Chillicothe, a small village seven miles west, says he saw two men about the depot in the afternoon, and when No. 4 arrived at 6:30 they were on the platform, but disappeared while the train was standing at the station. When the heavy string of cars began to move out of the station the two express messengers and baggageman shut the side doors of the car, for the wind was blowing strong and cold. Express Messenger John Page stepped to the end door at the front of the car, which, though usually securely fastened, was left unlosked by some one passing through it, when the door opened and two men sprang inside. They cried, “Hold up your hands,' one ruuning to the rear of the car to cover the assistant, L. Hawk, and Baggageman Ed Right. TRAINMEN BQUND EASILY. [ The trainmen, taken by surprise, threw up their hands. The robbers compelled them to “bunch” in a corner of the car, and one kept them covered with two big pistols, while the other bound and gagged them. He then turned his attention Yo~ he safe, which he unlocked with the keys taken from Page's pocket, stuffing the contents into a big sack, which they had with them. At this juncture the mall clerk' in the adjolning apartment came In, attracted by the noise, and they, Immediately proceeded to bind and gag him, and he was thrown in the corner with the others, After filling the sack, the robbers quietly, waited until the train whistled and slacked speed for the Milwaukee rallroad crossing, a mile west of town, showing by every action a perfect familiarity with the lay of the land and the habits of the trainmen. When the train stopped for the crossing they both jumped to the door, sprang out and started on a run across the frozen Des Moines river. By this time the baggageman had worked himself loose from the thongs which bound him, and he released his companion, just as the train was pulling into the Ote tumwa depot, The alarm was given and an engine with a posse sent out to Chillicothe, where no night agent is retained by the coms pany. 2 SYSTEMATIC SEARCH, Another posse was led by a Burlington detective, Jim Harrison, who recently had a desperate fight with bandits at Batavia, in which one was killed. This one started from Ottumwa, and the scarch for the robe bers is a systematic one. It is believed that they escaped to an Island In the river, from where it s belleved they crossed to the ope posite side of the river, and escaped by horses hidden in the woods, and from thére to the abandoned coal mines near Albia, where there is no question that a gang of moonsbiners make their headquarters. It was the theory of the railroad men that the two men belong to this gang, members of which assaulted Deputy United States Marshal Wray with shotguns a short time ago and released one of their men under, arrest, nearly killing Wray. The robbers were medium sized men. They wore caps with drop musks to them. One had on grey, jeans pants, the other overalls, and both wore brown overcoat Adams express ofiicials in this eity disclajm any knowledge of the amount taken, but it 15 believed to be several thousand dollars, THELR BOOTY SMALL, Express Company Officials Declare that the Kobbers Secured Little, Kentcn Sanford, superintendent of the Adams Express company in this city, whem notificd of the looting of the express car on the Chicago, Burlington & Quincy train, paid that he had some doubls about the robbers having secured any great sum of money. He could not say how much there was on board, though he was certain that there was not usually much money eent east Saturday night. The Omaha shipments of currency went east on the nlght train instead of being sent on No. 4, though there was western business by this train, In addition to this, he eald that there were usually many packages picked up from the smaller towns in lowa, Braughan Stevens, the money clerk, who has charge of this line of the company's business, lives at Council Bluffs, He res fused to talk as tg the amount of money carrled by the train until he eaw the chiet officials. some Ten Years for a Highwayman. BIOUX CITY, Jan. 12.—(Speclal T legram.) —Judge Wakeficld sentenced I B. Forgas son today to ten years In the penitentlary, for robbing Ole Phillips, a farmer, near here on the night of December 20, e son knew Phillips and had heard that he kept large sums of money in his house, He accordingly went there and representing that he was an officer sent to arrest him induced him to allow himself to be tied i @ chair. Finding only $10 in the house, Fer- gason threatened o shoot his vietim unless he disclosed the hiding place of the rest of his money, but was finally talked into leav= ing him. He was arrested soon afterwards and pleaded guilly to the charge against bl