The San Francisco Call. Newspaper, November 30, 1903, Page 1

Trair Monday; wind. Local ! Forecast made ‘a$ San Fraa- cisco for thirty hours ending midnight, Noyesiber 30: Saa-Princisco and vicinity— light northwest G. H. WILLSON, — Forecaster. A Pischer's—"1. 0. U.! Grand—“Over Niagars Orpheum—Vaudeville. The Chutes—Vaudeville. VOLUMI XCIV—NO.- 183. SAN FRANCISCO, 1903. MONDAY, NOVEMBER 30, . PRICE FIVE OENTS. DPRESIDENT ROOSEUVELT, IN REVIEW OF POSTAL FRAUDS REPORT, DECLARES HIS BELIEF IN THE GUILT OF INDICTED OFFICIALS TRADE L0ST T0 AMERICA N ORIENT Russia’s Ggp Upon Commerce of Manchuria. e Graduali)vv Shutting Out Products of the United States. Threats of Injury to This Country’s Influence Are Made Openly. s that on of Man- an he has sent t a and three torped Chemulpo to support ds for redress in con- the recent affray between rA Japanese sailors, regard- ch the Russian Minister at Seoul ng attitude. graph this morning at Russia is trying to Libertad s T t hears thi ps uilt in Eng- Libertad is could put to ftution is not it is said, wants ease her Far East- Y SO 5 EOBSON'S GREAT PLAN TO IMPROVE THE NAVY mac’s s Hero Would Disburse Three Billions in Battleships and Equipments. 3TON, Nov. 2).—Former P. Hobson of the navy has WASHI ill which he has requested r e Wiley of Alabama to the House on ths conven- he regular session for the pur- ¥ e Says, making the United p power of the eighteen years. appropriation of 1 portion of which ear for new ships reasing by $10,000,000 5, when a lump sum ade to caiTy on the el ernberg Starts to America. Baron von Stern- ador to the United dience with Emperor at the new palace, Potsdam, to- e Embassador left for Hamburg nd w from Bremen on mer Kaiser Wilhelm II Decem- 1L COMPANY PLS ST - ENTERPRISE Kern River Fields to Have Gigan- tic Plant. Proposed Refinery to Be the Largest in the World, Conditions in the East Re- sponsible for the Big Project. Call. LD, Nov. 20.—The Stan- is now having plans r field and which when be the largest plant of the world. is known that work on the plans rogressed well nigh to the \pletion, and the company is even now preparing a site across the Southern Pac spur track, in proxim- ity to the great reservoirs recently built has a point of ¢ Iready for the colossal new refine: are some urgent reasons that d the Standard to locate in the Kern River w common knowledge that from the Coalinga transmitted through the nery field is read pipe fer product of the Kern River fleld is not moved with equal facility. In addition to the density of the oil, which bar to rapid movement through the pipe line, the company has having a deal of trouble with x in the past three weeks an been made to cleanse the has pipe line by running a distillate through it. How successful this has been is not effort known, realiz: or but the company evidently s that there will be always more difficulty in transporting the crude ofl through the line. The pipe line will be supplied with oil that has been subjected to one or two processes that will have separated the heavy asphaltum, and that product will receive final treatment in the establish- ment at Point Richmond. It is reported that the supply of oil in the Eastern States is steadily declin- The Standard has been making v effort to encourage the opening of new fields, and the project of estab- ishing the largest refinery in the world in the Kern River district is the direct result of conditions in the East that so seriously threaten the Standard’'s sup- less ply. L e e e ] ] MPRIGONED INDIANG DIE IN FLAMES Young Redskins Make | Attempt to Escape { and Lose Lives. KLAMATH FALLS, Or., Nov. 29.— | Yesterday the Town Marshal of Bonan- za, a little town twenty miles from | here, locked up two Indian youths for | being drunk. Three hours later the jail and county buildings were in ashes and the charred corpses of the two Indians were pulled from among the debris. The conflagration was evidently started by the attempt of the Indians to burn their way through the walls to freedom. The inside of the jail was a furnace by the time people arrived at the scene, and the absence of any noise within told of the awful fate 1at had befallen the youths of the Yainax Indian School. An early messenger arrived at Yai- nax, conveying the news of thz tragedy, and by 9 o'clock this morning a num- ber of Indians had arrived at Bonan- |za. The town board held a meeting and ordered every business house in town closed. The people of the com- munity fear that unless the persons | who provided the youths with whisky | are punished to the full extent of the |law, harm of some kind will come to | the town from the infuriated Indians, whose reservation is near by. The Coroner and Deputy District At- torney are at Bonanza making inves- a refinery to be constructed | line to Point Richmond, the heav- | THOUSAND: MEET DEATH IN THE SER 'Typhoon Disaster Off China Ap- palling. ‘Gale Swirls Vessels| to Wreckage in the Orient. | Warships Hasten to the Scene to Take Aboard the Survivors. Special Dispatch to The Call. VICTORIA, B. C., Nov. 29.—While 400 Chinese fishing junks were lying | off Swatow on November 8, according | to advices brought by the steamer | Athenian to-day, a typhooh swept | down upon them, as a result of which at least 300 of the junks were disabled or sunk and thousands of lives were lost. The Hongkong Government tender | Stanley, a Chinese cruiser, three tor- | pedo-boats and the naval water tank at Hongkong went out as a rescue fleet and saved a number of the unfor- | tunate fishermen, the Stanley towing | in more than thirty junks and picking | up nearly 400 men, who were suffering terribly from thirst and hunger, for the survivors had been without food for from two to five days. When the gale swept down on the fishing junks the havoc wrought was fearful. Rudders were swept away, masts broken, sails ripped and general | destruction was rife. For days the dis- abled junks drifted helplessly about, the crews suffering the panngof hun- ger and thirst. Signals of distress were flown from what was left of masts or on the high- est point. Death stared all in the face when the Stanley came to the rescue. Frantic signals were made and when the Stanley bore down on the unfor- tunates their joy knew no bounds. The Stanley was bound on a regular cruise | with provisions for Wagalen light, and her master, realizing the impossibility of relieving all the disabled craft, took as many as he could in tow and took off the crews of others. There was a heavy sea running, but he managed to get eight vessels in tow and picked up 122 men. Influential Chinese prevailed on the Government to send the boat again to the rescue and she returned with four | junks and 109 men, and on a' third trip picked up three junks and five men. Their appearance told a tale of extreme hardship and physical suffering. It was the same tale—no food, no water. | The Stanley’s captain counted as many | as fifty-seven junks drifting seaward helpless, all flying distress signals. The naval authorities dispatched three tor- pedo-boat destroyers and the naval water tank, which relived the suffer- ings of many rescued, and the torpedo- | boat destroyers picked up several junks. A Chinese cruiser also aided in the work. The fishermen estimate that of the 400 junks 300 were disabled or sunk and all tell of many men struggling in the heavy seas and of the final disappear- ance. Thousands of lives undoubtedly were lost. The typhoon came upon the fishing fleet suddenly. They had scarcely time to drop the sails, to haul in their trawls when the swirling wind was on them. With a clatter down came the masts and rigging, littering the flooded decks and swinging against | the bulwarks of the junks. Huddled | together in fright the unfortunate Chi- nese walted for death, and hundreds were swept from the decks. Many of the junks were sunk by the heavy seas, | foundering with all on board. —_———— WAREHOUSES ARE LOST IN EARLY MORNING FIRE LOS ANGELES, Nov. 20.—Two large | warehouses of the California Vegetable | Union filled with goods were destroyed by fire of unknown origin before day- light this morning. The warehouses stood at Alameda street and Slauson avenue, at the extreme southeastern fcorner of the city, and so remote from | the nearest fire company that from the time the fire was discovered there was | o hope of saving them. | Eight refrigerator cars and one box | cax, all fully loaded, which were stand- |ing on the packing house siding, were |also destroyed. The loss will amount | to $25,000; insurance, $16,000. { B I o S ) tigations. Frequently drunken Indians are jailed here, and from elsewhere in the county comes complaint of their bad conduct because of drink. The building adjoining the jail, occupied b the County Recorder and Justice of the Peace, was also burned, and valuable papers destroyed. I ROURTH ASSISTANT POSTMASTER GEN- ERAL BRISTOW'’S report, giving in detail the re- sults of the investigation of frauds in the Postoffice Depart- partment, has been made public. Accompanymng it, in the nature of a review, is a memorandum by the President, praising the thoroughness of Bristow's work, denouncing in unsparing terms the officials who have been exposed and promising that every means at the disposal of the Government will be used to bring the guilty to pumish- ment. In the report of Bristow, the name of ex-Assistant Post- master General Perry S. Heath 1s gtven much prominence. Con- siderable space is devoted to the scandal involving the San Fran- cisco Postoffice,and in that con- nection some interesting facts not hitherto known are brought out. Correspondence indicat- ing that blocks of stock in the Montague Indicator Company were sct aside for Heath is pro- duced, and it is shown that ef- forts were made to have Heath indicted, but the District Attor- ney regarded the evidence as in- sufficient. TRESIHENT THEOIORE- BOOSFVLT. ... ' pore Y/ 15 DASTON. . ZOURTH Assimvedle POSTHASTER. FENERLZ o Z4 Interesting Revelations in the San Francisco Scandal. CALL BUREAU, 1406 G STREET, N. W.,, WASHINGTON, Nov. 29.— The postal “graft,” in all its hideousness, was laid bare to-day in one of he most remarkable Presidential documents ever published. President Roosevelt authorized Fourth Assistant Postmaster General Bristow, who has had charge of the investigation of the Postoffice Department, to make public the result of his work, and as a preface to the report writes a long memorandum epitomizing what has been accomplished and what will be done in the future. 4 Intense public interest will be taken in the revelations made by Bris- tow regarding the connection of former First Assistant Postmaster Gen- eral Perry S. Heath with some of the most sensational transactions. Heath has not been connected with the department since July 31, 1900, when he resigned. He still continues as secretary of the Republican National Committee. The general impression has been that Heath. was not indicted because he was protected by the three years statute of limitations. It now appears that in two instances his casé was submitted to a District At- torney for indictment, but the District Attorney decided that the evi- dence was not sufficient to justify indictment. One charge against Heath had to do with the sale to the Postoffice De- partment of the Montague indicator, a device attached to street Iletter boxes, showing the hour of collection. The division of supplies and allowances, of which George W. Beavers was head, and the division of free delivery, of which S. A. W. Machen was head, were both involved in the transaction. A company to manufacture and sell this device was promoted by W. W. Montague, postmaster in San Francisco, and D. S. Richardson, cashier in that office. Not the least interesting part of the report is the revelation that Congressman Loud's secretary, H. F. Dodge of San Francisco, received 150 shares of stock in the letter box device company, unknown to the Con- gressman, who was himself instrumental in bringing about the investiga- tion. " Bristow tells how, in an effort to interest the department in the Mon- tague indicator, 1000 shares of stock were given to Machen, who had it made out in the name of H. C. Segar, and 2000 shares to Beavers. Segar says he paid Machen $1200 for his stock. There is mystery regarding the tfue ownership of the 2000 shares given to Beavers. It was issued in the name of D. S. Richardson, and, at Beavers’ suggestion, assigned to John R. McDonough. Bristow shows letters sent by Beavers to Richardson. One of them acknowledges the first dividend on the stock and says: “I have not seen Mr. Heath, but will make another effort to-day.” The other letter, dated August 21, 1902, addressed to Richardson, says: “Our friend at Salt Lake wants inclosed stock drawn in the name of Edwin R. Bacon. Kindly issue new certificates and have these destroyed; forward same to me by registered mail.” The “inclosed stock” referred to in Beavers’ letters consisted of 1000 of the 2000 shares given to Beavers. Edwin R. Bacon is a citizen of Louisville, Ky., and Heath's uncle by marriage. The 1000 shares of stock issued to Bacon was returned to the company anonymously in a blank envelope after the investigation began. Bacon says he never saw the stock. Heath refused to make a written statement, but told Inspector Simmons verbally that he had never heard of it and had no direct on indirect interest in the company. For this trans- action Beavers, Machen and Erwin,. postoffice inspector, were indicted. The District Attorney decided that the evidence against Heath was not sufficient. Bristow says that, eliminating all indications of fraud and passing on the case wholly as a question of judgment, the transaction would have justified summary removal from office of Heath and Beavers. o e DRI LLZATH = OFFICIAL WHO CONDUCTED THE POSTAL INVESTIGATION, CHIEF EX- ,CUTIVE WHO PROMISES THAT THE GUILTY WILL BE PUNISHED, AND FORMER OFFICIAL WHOSE NAME IS FREQUENT IN REPORT. | | Chief Executive Denounces the Men : Accused by Bristow. WHITE HOUSE, WASHINGTON, Nov. 24, 1903. —Memorandum upon va= rious papers submitted from the Department of Justice and the Postoffice Department concerning the investigation into the corrupt practices obtain- ing in the Postoffice Department, notably in the office of the First Assist- ant Postmaster General, and in the office of the Assistant Attorney Gen- eral for that department. All the documents in the case are herewith for- warded to the Postoffice Department and will be held ready for submisison to the Congress whenever it may choose to ask for them. It appears that in December, 1902, Postmaster General Payne and Con- gressman E. F. Loud, chairman of the Commjttee on the Postoffices and Postroads, held verious consultations regarding the postal service, and as a result of these interviews it was determined that as soon as possible af- ter the necessary appropriations could be made by the Congress, an in- vestigation should be made of the service, both Messrs. Payne and Loud agreeing as to the need for the Investigation and the time when it should take place. Accordingly an increase of $5000 in the appropriation bill re- ported in January was made for the express purpose of carrying on the investigation in question. The reasons for the increase in the appropria- tion were known only to the Postmaster General, to Congressman Loud and to Congressman Bromwell BRISTOW GIVEN CHARGE OF THE INVESTIGATION Subsequently, some time in January, information was laid before me by Mr. Seckendorff tending to show improper conduct by Beavers, general superintendent of the division of salaries and allowances, and Machen, general superintendent of the free delivery system; and by Willlam Allen ‘White, tending to show corruption by or under Tyner, assistant attorney general for the Postoffice Department. First Assistant Postmaster General ‘Wynne also informed me that he had become suspicious of the integrity of both Machen and Beavers. ter full consultation with Mr. Payne it was decided that Fourth Assistant Postmaster General Bristow should make a thorough and exhaustive investigation of the charges in question, and of all matters that might be developed in connection with them. Mr. Bristow’s report is a record of as thorough a bit of investigating work as has ever been done under the Government. After this investigation had been in progress for about two months it became evident that legal proceedings would have to be undertaken against some of the offenders. Owing to the importance of the case it was deemed advisable that special counsel should be employed, and Megsrs. Charles J. Bonaparte and Holmes Conrad were chosen for this purpose. Messrs. Bonaparte and Conrad, in their review of the report of Mr. Bris- tow, speak as follows: “We consider the report an exceptionally able, candid and impartial review of its subject matter and that it shows clearly reprehensible mis- conduct, amounting in many cases to crime, on the part of a number of public officials. It is a voluminous document, but this arises not from pro- lixity, but from the nature of the matters discussed. * * * We heartily commend the report and deem its conclusions fully justified by the facts it sets forth; and while regretting in common with all patriotic citizens that the grave abuses of long standing which it reveals should have grown up in the Postoffice Department, we consider the exposure of these abuses and the attempts made to punish those responsible for them a work of the highest public utility, quickly and ably verformed.” In all that is thus said of the report of Mr. Bristow I cordially agree. LONG LIST OF IMPLICATED OFFICIALS. The investigation made by Mr. Bristow discloses a condition of gross corruption in the office of the First Assistant Postmaster General and in that of the Assistant Attorney General for the Postoffice Department. In the case of the superintendent of free delivery, Machen, the evidence shows that his misconduct began immediately after his appointment in September, 1893. In the case of the general superintendent of salaries and allowances, Beavers, it began soon after he was appointed to that place in 1887. Tn the case of Assistant Attorney CGeneral Tyner it has gome on for a number of years, but it is impossible to say exactly when it began. A melancholy feature of the case is that, with one exception, all the offend- ers have been for a number of years in the Government service. The following is a list of the fourteen postoffice employes, in the service at the time this Investigation was begun, who are apparently most seriously > - _Continued on Page 3, Columns 3 and 4