I 0' - THE GAZETTE-NEWS HAS THE MOST EXPENSIVE) ASSOCTA. ED PHES3 BERVICB IN THB II 1 jj CAROLTNAS II It WEATHEB FOBECASTi PARTLY CLOTJDT. av.a VOLUME XIX NO. 131 ASHEVILLE, N. C, MONDAY AFTERNOON, JULY 13, 1914 PRICE FIVE CENTS DRASTIC REPORT ON NEW HAVEN One of Most Glaring Instances of Mai-Administration in American Railroading, -; Says Commission. FINDS MANAGEMENT CRIMINALLY NEGLIGENT Evidence Pointing to Viola : tions of Law Transmitted to i District Attorneys in Various States. " 'Washington, July 11. "One of the most glaring Instances of mal-odmln-lstration revealed In all the history of American railroading," 1b the In terstate commerce commission's char acterization of its findings In the In vestigation of the New Haven rail road financial affairs reported today to the senate. ' .' ' " ' In a report of 80,000 words, prob ably: the most drastic ever made by the commission, the , New 'Haven's commissioners were characterised as "criminally negligent" Evidence pointing to the violations of the law have been transmitted to district attorneys - in. Massachusetts, Rhode Island and elsewhere. " "A reasonable estimate of the loss to the New Haven' by reason of waste and mismanagement, says the report, "will amount to between $60,000,000 and 90,000,000. Directors should be made individually liable to civil and criminal Jaws for ' tho " manner In Which they discharge their trust. All the commission's strictures were upon the management of the New -Haven system under former President Mellen. - ' . In Justice to the present manage ment, the commission says, it is but fair to say that Chairman Howard , EiUiott and Walker D. Hlnes. soecl&l Counsel, have co-operated with the commission and rendered It substan tial aid throughout the Investigation. The report cites these "significant in cidents": Marked Features. "Marked features and significant In cidents in the loose, extravagant and improvident administration of the fin ances of the New Haven, as shown In this investigation, are the Boston and Maine despoilment; the double price paid for the Rhode Island trolleys; the recklessness in the purchase of the Connecticut and Massachusetts trolleys at prices exorbitantly in excess of their market value; the unwarranted ex penditure of large amounts In 'educat ing public opinion'; the disposition without knowledge of the directors of hundreds of thousands of dollars for Influencing publlo sentiment; the hab itual payment of unltemlsed vouchers without any clear understanding of details. - "The Interlacing details of the prin cipal and IU subsidiary roads and the ' subsequent complication of accounts; ' the practice of financial legerdemain In Issuing large block of New Haven stocks for notes of the New England Navigation company, and manipulat ing these securities back and forth: flotitloua sales of New Haven stock to friendly parties with the design of boosting the stock and unloading on the pulhlo at the higher 'market price's the unlawful diversion of cor porate funds to political organisations; the scattering of retainers to attorneys of Ave states.' who rendered no Item- Iced bills for services and who con' d noted no litigation to which the rail road was a party; extensive use of a paid lobby In the matters as to which the directors claim to have no control; attempting to close the mouth of the press by subsidy; tho payment of money and the profligate Issue of free passes to legislators and their friends; the Investment sf MOO In securities to New England newspapers; th regular employment of political bosses In Rhode Island and other states, not for the purpose of having them per form any service but to prevent them, as Mr. Mellen expressed it, from 'be coming active on the other side . The payment of the Blllard company more than $21,000,000 for a service to the New Haven company and Into! which Blllard Invested not a dollar. -. - Morgan and Mellcn. The Inability of Oaklelgh Thome to account for $1, 0S1. 600 of the funds of the New Haven Intrusted to him In carrying out the Westchester propor tion; the story of Mr. Mellen as to the distribution of 11,100,000 for corrupt purposes In bringing about amend merits' of the Westchester and Port Chester franchises; ths domination of all the affairs of this railroad by Mr. Morgan and Mr. Mellen and ths abso lute subordination or other members of the beard of directors to the will of thme two; the unwarranted Increase of the New Haven liabilities from $$, 000,009 In 110$ to 1417,000,000 In 111$) the Increase In floating notes from nothing In 110$, to approximate ly $10,000,000 In 111$; ths Indefensible standard ef business ethlus and the absence of financiers In directing the deaitnles of this railroad In an attempt to establish a monopoly of a trans portation of New England. A com bination of all thane has resulted In Ui (rwM daploraile situation In STOCKHOLDERS f SUE MANAGEMENT In Effort to Recover $125,000,- 000 From Former New ' ' ' Haven Directorate. ' Boston, July 1$. Whipple, Sears and Olden, attorneys representing the minority - stockholders' ' of the New Tork, New Haven and Hartford, have demanded that - the directors join their clients in the. suit to . recover about" $120,000,000 alleged .' to have been wasted by the management. The suit will be brought against the estate of J. P. Morgan, Louis Dass Ledyard, and others who were mem bers of the New Haven directorate at the time the. transactions that have been the subject of injury by the in terstate commerce commission were made, . .,: t . The attorneys said todayt ' "These, losses which have so plain' ly resulted from the neglect of Judl clary duty will be reocvered on the ground that a coporatlon can recover from' Its dlretoors." 1 ' v . TO Matter of .Conserving Supply - And Preventing Waste ... . i . - . Will be Studied. Washington, July 18 In" the be lief that the methods used in exploit ing timber resources vitally concern the publlo Secretaries Redfield and Houston have completed plans for the study of the question by their departments. One of the conditions which make the Inquiry of Immediate importance according to announce ment today, la the fact that standing timber amounting to about 800,000,- 000,000 feet Is being reduced of Its stumpage at the rate of approximate ly $0,000,000,000 feet annually. In spite of this limited timber supply, lumbermen are supposed to be able to market much of the poorer grades. It la estimated that from one third to one half of tho material in the trees is left In the woods or burn ed in lumber mills. This waste Is be lieved to be preventable and much more, it Is hoped, can be saved under Improved conditions of marketing and use of wood. Ths stdules will seek to establish the essential facts relating to the sup ply and to analyse the cause of the present conditions which are declared to bs unsatisfactory. The aim will be to Indicate measures which should be adopted by the Industry Itself or by the publlo In relation to the indus try. REGRETS HER 601 DID NOT BLOW UP ST. JOHN'S Suffragette Admits She Tried To Destroy Church She Is Remanded. . London, July 1$. Mrs. Mary Hen nybell, a suffragette was tried today for try I rig yesterday to destroy the old church of Ht. John the Evangelist at Westminster, with a bomb, Bha said; "Ths only thing I regret Is that ths beastly thing didn't go off. Ths . prisoner, expressed intense pride In her act She congratulated the woman worshipper who found her lighting the fuss attached to the bomb of gunpowder and said her smartness was worthy of cause. Bhe advised her' to a better become a, militant suffragette. - "I meant the bomb (o go off and blow up ths church," aid the prison er. Bhe then stretched herself at full length on the seat In the prisoner's enclosure and asked ths woman war den to give her a pillow and wake her when ths cass was cnarluded. "Goodbye, you Paid bully" was her farewell to ths magistrate1 when he remanded her. , aa.aamaaaaaaa.a,aa.aa.a which the affairs of this railroad are involved. , Hilly llaitrr IX-ad. Chicago, July 1J Hilly Daxtor, old time minstrel, who played with near ly all of the leading minstrel com panies of America, and before the royalty of Kumpa, Is dead hare from clrrlioL of the liver. LiWSPLE W, H. Taft Mentioned -as Pos sible Successor to Deceased ... Associate Supreme ' ' Court Justice. FIRST APPOINTMENT OF PRESIDENT WILSON The Others Suggested Are Mc- Reynolds, Lane, Garrison, Shields, Lehmann and John. W. Davis. Washington, July 13. Discussion continued here today as to whom President Wilson would appoint to the Supreme court to succeed Associate Justice H. H. Lurton, who died at Atlantic City, yesterday. The names of those mentioned in connection with the .vacancy lncluder Former Presi dent Taft, members of the cabinet and others. $ In official circles no one cared to Venture an opinion as to whom the president might choose. It is not be lieved he has yet considered any name In conectlon with vacancy. As a result of Justice Lurton's death, the president will be called upon to make his first appointment to the Supreme bench. . In addition to Mr. Taft, those men tioned Include Attorney General Mc Reynolds, Secretaries Lane and Gar rison, Senator Shields of Tennessee, a former Justice of the supreme court of that state; Frederick W. Lehmann, former solicitor general and one of the American delegates to Mexican ce conference at Niagara Falls, and John W. Davis of West Virginia, the solicitor general. Former President Taft Is known to have had cm ambition, to round out his career as a Justice of the highest court of the land. Whether he still cherises that ambtlon Is not known here. When It was reported lost win ter that Justice Lurton was about to retire It was suggester Mr. Taft might be offered the place, but it was stated at the White House that his name had not been mentioned. In official circles It was thought unlikely that the president would nominate one of his cabinet, but It was his desire to go through his term without change in his official family. Until his death ths court was made up of three re publicans, and six democrats, but now the reduced to two Chief Justice White and Justice Lamar. ' It Is thought probable that the president will appoint a ' democrat. Further more, there has been an unwritten rule in the senate which must go throngh with the nomination of a re publican when tho minority falls be low three. This will probably bs done before the senate adjourns so that the new Justice may take his seat at ths Octobsr term of ths court. Heart Failure. '.. Atlantlo City, N. J., July 1$. As. sociats Justice Horace Harmon Lurs ton, of the United states supreme court died suddenly at a hotel hers yesterday from heart failure superin duced by cardiac asthma. He was 74 years old. The Justice who cams here July 1, was In his usual health before retir ing Saturday night ar.d bad taken his customary evening outing on . the board walk. Shortly after midnight he complained of feeling ill and al though his physician. Dr. Ruffin, who arrived Saturday from Washington, was summoned immediately. Justice Lurton died at t o'clock In the morn ing. His wifs and son, Horaoe H. Lurton, Jr., of Nashville, Tenn., were at ths bedside. Mrs. Horace Van Deventer, a daughter, and her hus band, arrived last night from Knox vllle, Tenn., and other members of the family are expected today. Ths body will be taken to Clarka vllle, Tenn.. for Interment, the fun eral party leaving hers at o'clock this afternoon. ' It was at that city that Justice Lurton began the prao. tlce of law and lived for 10 years. Funeral services will be held th.re Wednesday. Chief Justice White, and several associate Justices of the Su preme court, as well as many friends fro mdirrerent parts or in soountry we expected to bs present' ' WESTINGHOUSE STRIKE 1 IS FORMALLY ENDED Pittsburgh, Fa., July 1$. Strike In the Weatlnghousa factories was form ally ended tvday when approximately $000 men and women returned to the shops. All plants were placed on full time and all strikers were taken back with ths exception of two or three hundred whose places were filled by Imported workmen during ths strike. Half a down deputy sheriffs were on guard at ths works. rust lUvli nbnrg Db. Berlin, July 11. Prof. Julius Itod enburg, German poet and author, died hers today In his eighty-fourth year. POLITICAL POT BO UNG AGAIN Commotion Begins When R. R. Reynolds Is Sued for Dele gation Board Bill by Waynesville Hotel GUDGER BEHIND SUIT, CHARGED BY REYNOLDS G. S. Reyonlds Makes State ment Labeling Action As , Hold-Up . Game and " Dirty Politics." ; The following dispatch from Waynesville to the Charlotte Observ er last Saturday, July 11, tells of a suit Instituted by the Suyeta Park hotel in he Haywood Superior court against R. R. . Reynolds, candidate for congress against .J. M. Gudger, jr., for the collection of a delegation board bill alleged to have been con-, tracted by Mr, Reynolds during the Waynesville convention several weeks ago: "-.'.'.'.':. ,. . 'For the first time in the history of the Tenth Congressional .district a suit was started this week in the Haywood county Superior court for the collection of a delegation hotel bill alleged to have been made while the democratic convention was In session in this city last June. Robert R . 'Reynolds of Asheville, one of the candidates for congress, is the de fendant and . Mrs. L. K. Cameron, proprietress of the Suyeta Park hotel, Is the plaintiff.' : . "The complaint was filed following a disagreement between a friend of Mr. iteynolds and the management of the hotel in regard to the hotel bill. The total ibllLclalened by the hotel is $1,021.60, minus a payment of $600, leaving a balance of ,. $621.60. Mr. Reynolds claims, that according to his friend's statement, there Is a balance of only $350 due the hotel, which is according to the understanding of his friend with the clerk at the hotel. The case will not be tried until the Sep tember term of Haywqod county Su perior court The attorneys for Mr. Reynolds are now: preparing an an swer to the complaint" , When asked about tho suit here to day, G. S. Reynolds, a brother of the defendant In the suit and his cam paign manager who looked after the hotel arrangements 'in' Waynesville, made the following statement to The Gazette-News: "When the Reynolds delegates went to Waynesville to attend ths Tenth District congressional convention, more registered at the Suyeta Park hotel than could be accommodated there and immediately left and went to 'the Gordon. They registered at the latter hotel and remained there during the , entire . convention, al though they 'failed to register off at the Suyeta Park. Their bills at the Gordan have been paid In fuiL "Mr. Bchaufer, the clerk at the" Suyeta Park, cams to Asheville a short time ago and went over the list of registrations wliH me and agreed to the amount still due ths hotel. I offered to pay this amount and now stand ready to pay It. ' He went back to Waynesville and the proprietress of the hotel repudiated the agree ment and refused to accept anything but the original amount claimed. The amount offered by us In settlement has been offered to tho plaintiff in the suit through our attorneys. "Ths clerk of ths Suyeta Park ad mitted to Ronald B. Wilson of Waynesville that tho amount tendered by us in settlement was all ths plain tiff Is entitled to. Further than that Congressman Gudger was In Waynes ville the day the complaint was drawn and It Is generally rumored that he was In the office of the attorneys who Instituted the suit and dlctaed the complaint "We are still ready to pay the amount of the bill as agreed upon. We consldor the proceedings a hold up game and a plcs of dirty politics. "I have the affidavits In my pos session from parties for whose board bill ws ars being eud that while they registered at the Suyeta Park they could not procure quarters there but latur went . to ths Gordon ' hotel, where they stopped and wers eni tnrtalned, the board bill for which has been paid. ' , "We not paid board bills for our own delegates but we paid iha board bills for a number of Oudger dele gates, but" refused to psy bills for some Oixlger delegates which 'wers presented." REPORT OF FALL OF 1 GUAYAMAS DENIED ftaltillo, Mexico, July 10 (Via Lar. do. Texas, July 11.) Nowe thst the port of Guayamas has been evacuated by ths federal are untrue according to reports today from General Alva redo who reports he has moved his forces so as to surround Guayamas eempletelx oa ths land side. ERFAT MFFTIHIC i UI1L.III HILL I IIIU V OFlABCElf: ' I Their Celebration of Anniver sary of the Battle of Boine Carried Out With Much Enthusiasm. MARCHERS CAREFUL TO CREATE NO TROUBLE Demonstration ut Londonderry However Causes Catholics Some Concern; Organize For Defense. Belfast, July 13. The Insistent de mand of the Protestant portion of the province of UlBter for exclusion from operations of the. Irish home rule bill lent added Impetus to today's celebra tion of tho anniversary of the Battle of Boine. The ceremonies was car ried out here with great enthusiasm. Sir Edward Carson, the Ulster union ist leader, rode at the head of 6000 Orangemen, accompanied by the usual flfo and drum corps and Included a sprinkling of brethren from the United States. They marched through the city to Drum beg where a great open air meeting was held, addresses being made by Sir Edward and other. The marchers were careful not to create any disturbance and the whole march was effected without attack. Sir Ed ward was marshal of the day. Buttons bearing his portrait were worn by nearly every man in the procession, while great canvasses, spread across the streets In the unionist section, boro his likeness. It is regarded as signifi cant that In recent interviews, Sir Ed ward la quoted as saying the only con dition of peace Is the exclusion of Ul ster "for the present," while the more remote- action of the unionists must, in his own opinion depend upon -the way the Dublin parliament treats Protestants In the province of Ireland. Throughout the province of Ulster and in Londonderry extensive precautions were taken by officials against clashes between the organized force of Prot estants and the Catholics. - ' Critical Situation, Londonderry, Eng., July 1$. Or angemen here began the celebration of the anniversary of the battle of the Boine with a cannon through which they projected their explosives so that they burst over the residences of the Catholic settlements. Catholics, believing the cannonade was the pre lude to a demonstration on the part of the Orangemen, organized for defense, but up to noon no collision between the two parties had taken place. While th Orangemen were attend ing church Sunday and the police were busy guarding their processions, the nationalist volunteers succeeded In bringing into the city two automobile loads of rides. ! FORMS H THEORY OF MURDER ORS. HEY Prosecutor Smith Does Not Think Shot Was Fired at Dr. Carmen. Freeport. N. Y., July 13. Investi gation of the murder on July 3 o( Mrs. Louise Bailey In the office of Dr. Edward Carman, has caused Dis trict Attorney Smith to form a new theory directly In contradiction to that offered by Dr. Carman, that the 'murdered sought to kill him and not Ihls patient The attorney has made a chart showing the positions of the phpsidan and ths woman, showing that the-barest part of the physician's shoulder could be seen through the window, mhlle an unobstructed view of the woman could be had. The attorney snld he "was satisfied" the person who fired the shot knew every Inch of the room. The grand jury will continue to sit this week, but If an Indictment. Is voted charging Mrs. Carman with the crime she will be tried almost Imme dlately. KENTISH GUARDS WISH TO ATTEND UNVEILING Raleigh, July 11. Governor Craig has received a letter from Edward a. Graves, lelutensnt-colonol of ths Ken tlsh guards of East Greenwich, R. I., In which organsatlon General Nath aniel Greene the revolutionary war leader was a charter member, ss; ln that the guards would llks to attend ths unveiling of ths equestrian status of General1 Greens at Guilford court house In a body. Mr, raukbtirst llclcaMSt. - London. July 11. Mrs, Emmallne Pankhurat asaln wtt released from llolloway Jail today. UARLYPEACEIN mMicoMkely fin CONFLICT WITH SEiTEJE SAYS President Says He Has Assur ance Mr. Jones Will Be Confirmed. Washington, July 13. President Wilson today denied that there was conflict between him and the senate over the nominations of Paul ' M . Warburg and Thomas D. Jones, as members of the federal reserve board. In talks with callers he declared he was working in complete harmony with the democratic majority in the senate with but one or two excep tions. Mr. Wilson said he had definite as surances that Mr. Jones would be confirmed. He did not discuss the case of Mr. Warburg except to say he thought the senate as a whole would be perfectly fair. W. P. G. Harding of Birmingham, Ala., who recently was confirmed as a member of the reserve board, today advised Secretary MoAdoo In person, that he Is ready to assume his .new duties. Afterward Mr. Harding said he did not know exactly when : he would take office. After provisions of the new banking law, however, Mr. Harding and C. S. Hamlin and Adolph C. Miller, confirmed with him, must be sworn in not later than July 21. Senator Hitchcock, acting chairman of the banking and surrency commit tee sold he probably would submit the unfavorable recommendation of Mr. Jones to an executive session of the senate late today. . Consideration of the report is expected to go over for a day. . "I am beginning to receive many letters and telegrams from people tn the west and middle west supporting ma In my standard against the con firmation of Mr. Jones," said Senator Hitchcock. "The Harvester trust was the' most obnoxious of all to these western people and they do not like any one who has had anything to do with it" The senator reiterated that the committee would do nothing further with the Warburg nomination unless Mr. i Warburg would change his mind and appear for examination. HICH WATERS AROUND Five Deaths ' in Pennsylvania As Result of Storm There Last Night. Scranton, Pa., July 11. High water caused by Friday's storm, during which a man and a boy were drowned and another man killed by lightning. had completely subsided today. Sev eral railroads were tied up for hours lost night by washouts, but practically normal schuduled were resumed today. Lower levels In several coal mines were flooded but no serious damage was done. Five deaths due to the storm occur red In various parts of the stale. FREE COUPON IDEAL ART, . PATTER "OUTFIT TO-DAY MAGAZI NE rirstiramoR rr Tl J r 5azette-News, Monday July 1 SU Or THE ABOVE COUPONS ENTITLE EVERY READER TO THESE TWO GREAT GIFTS CUT N. I IDEAL ART rATTEKN OUTFITCaateiadng IS) Kt RattmhWr Fattanai ef akaniaMy the tataat wfctr, at I mil mrh. Ile eMail K east mm tkan fttae. fOnnWi Unarm tm tabtottsrr Ulcalag Mm V the MM Frvnrs atsan. tsai tmhnmtmy MasewMMi CUT N. t TODAY'S MAGAZINE rOR OM& YEAR Yas Onat Now Wiwu'l Mailan rnlrimm fm ear iw inra ft r amltM th anrt an tn-oat v nn.an iwmrmmi, BMita4 oinaot mmm trtns t of ttiM Coapona aas tt Cans a fkat affix ar4 m mm minim nr) Ea, I, l.d Mi mm aari eitalraai to klrh roe wt-4 !)' Muwm Miirt a, tl aMjf4 yna ark awMrtk a aaa year a tna htank blmm fiw as (Vntt lw rwyr 11 911 'am af fvttM tfai the mm f aa4 aa f handling Iha Pallia Oaist ao4 iha a ml aaUilus at tt eaat SMaU a yaaf Uia aurraot Mas af TW MuuIh. Oat af la a S piliai wffl s44 I faWts Pitta pna?aaa4 am Ulna. Saa TODAY'S atA&AZJHI Im Oa fmm la i fVAsfat..,......... i.. lmm ,......., ..mw.,.. ITKEtT mmj Ma, - crrr a rrwn Quiet Transition of Power at '.Mexico City May Be Effect- - ed In Spite of Car. ' ranza's Stand. HE REFUSES TO DEAL WITH HUERTA PRODUCT However, Carbajal Might Sur render as Faction Repre- : sentative Instead of as Provisional President. ' Washington, July 13. Mexico City was looked to today as the stage for the next big scene in he Mexican situ- atlon. With Huerta about to quit and turn over his affairs to the new foreign i minister Francisco Carbajal, hope was expressed that a way might be found peacefully to transfer the government . to the constitutionalists and avert mil itary conquest of. the capital by tho ' constitutionalist force . . : - Carranza has expressed his unwil lingness to deal with Carbajal, regard ing him as the product , of Huerta, Nevertheless parleys . for the . quiet transition of powers might take place, if Carbajal appeared in the role of the representative of a faction rather than the provisional head of a government ' which the constitutionalists refuse to recognize. . . Carranza, It was declared. Intended to follow the "plan of Guadaloupe," , which provides for military occupa tion of the capital. However, several European . and South American na tions, it was said might frown on such a course. They regard with apprehen sion the possibility of a fight in Mexico City and foroeful taking over of the powers of government without some guarantee to the population. . , It was believed on all aides this '. morning that fighting was pwan end,, Carranza' would.'. pronV.'l;- enter the capital With a small fo , the remain- , der remaining at the capital's gate or near , their headquarters to be dis missed at the restoration of , peace. Any parley between representatives of Tuerta, who took part in the Niagara Falls conferences, and the constitu tionalists, practically has been aban doned. Carranza has not formally re plied to the mediators' proposals, but official messages from his headquar ters at Saltlllo have Indicated what the reply would be. Carranza Is quot ed as saying the only thing he would accept Is the surrender of Huerta and his army.- i Huerta,- It was believed, might, quit Shapultepec some day this week. In. this case Secretary Carbajal would succeed him. . ' Carbajal Is a man of law. Hs Is less than 60 years old. - Of an academlo tempermament, he never has served In the army. He came Into International . prominence as the envoy of Dial in. the peace conference of 1(11, after the Madero revolution. A fewweeks ago he was elected chief Justice of the republic's supreme court after serving sverl year., as associate Justice. Hs , Is said to be of a conciliatory disposi tion, anxious for the restoration of or der nnd not likely to elect to resist with an army the approach of ths constitutionalists. ... Delivers Money , El Paso, Tex., July 13. Five mil lion dollars in constitutionalist money, and ii freight car filled with stamping machines, were delivered In Juarea this morning by Villa agents to Al ( Continued on Fagi 11). IcartaataTaraW.