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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (April 3, 1914)
VOL. LIV XO. 16,647-
PORTLAND. OREGON, FRIDAY, APRIL 1914.
12 BANK RESERVE
San Francisco Head of
NORTHWEST BADE TO HOPE
Committee Intimates Relief
i. Will Follow Growth.
PAYMENTS SOON TO BEGIN
President Says o Immediate An
il nouncement of Appointment of
i, Five Members of 1'ederal
; Board Is Expected.
HOW RESERVE BANK ORDER AF
FECTS PACIFIC COAST.
Only city -west of Rocky Mountain!
to liave reserve bank is San Fran
cisco. District, known as No. 12. comprises
California, "Washington, Oregon.
Idaho, Nevada, Utah and all but
five counties of Arizona,
Capital of reserve bank of district,
Number of National banks, 514.
Branch reserve banks authorized
under law are to be established by
Federal reserve board, yet to be ap
WASHINGTON, April 2. After thr.ee
months of consideration the reserve
bank tonight announced it had divided
the continental United States into 12
banking districts and selected 12 cities
w here Federal reserve banks are to -be
located under the new currency law.
This was the first decisive step toward
the establishment of the new system.
The bank with the greatest capital,
J13,351,925, will be situated at Chicago.
New York State will be a district by
Itself, with its bank In New York City.
This bank will have a capital of $10,
87,616. Pacific Coant Han Single Bank.
The only reserve bank assigned to
the Pacific Coast is at San Francisco.
It will serve six states and part of
another, and will include 514 National
banks. The population of this district,
which is designated as the twelfth, is
5,389,303. It covers 603.658 square
miles. The reserve bank's capital will
be $8,115,524. The states included are
California, Oregon, Washington, Idaho,
Nevada, Utah and part of Arizona.
The organization committee was not
authorized By law to provide for branch
banks of the Federal reserve banks,
but the act states that such banks shall
be established. This task will be left
to the supervision of the Federal re
serve board yet to be appointed by
Coawt May Get Another Later.
- The organization committee in its
announcement called attention to the
fact that under the requirements of
the act it could not find grounds for
the establishment of more than one
bank on the Pacific Coast., but held out
the hope that in the near future an
other bank would be authorized by
Congress and located somewhere in this
great section. It said in this connec
tion: "The committee was impressed with
the idea that growth of and develop
ment of the States of Idaho, Washing
ton ana Oregon, but on the basis of the
6 per cent of the capital stock and sur
plus of National banks and state banks
and trust companies which have ap
plied for membership, that section could
not provide the $4,000,000 minimum
capital stock required by the law. With
the continued growth of that region, it
is reasonable to expect that in a few
years the capital and surplus of Its
member banks will be sufficient to
Justify the creation of an additional
Federal reserve district, at which time
application may be made to Congress
for a grant of the necessary authority.
Bank Now to Be Notified.
The next step to be taken by the
organization committee will be the
notification to banks entering the sys
tem of the plans for the districts. With
in ten days of the time such notice Is
received by banks each must, under the
law. begin the payment for its stock
in tho reserve bank in Its district. Each
bank must subscribe 6 per cent of its
combined capital and surplus and the
capitalization announced for each dis
trict is based on this 6 per cent sub
scription. The payment of subscriptions by
banks will be spread over .many
months, but in the meantime President
Wilson is expected to announce the tive
members of the Federal Reserve Board.
The President said today that owing to
the fact that the process of organization
will take some time, no immediate an
nouncement will be made.
In reaching its decision the commit
tee pointed out that It visited 18
cities, listened to arguments from rep
resentatives of 200 cities and selected
the list from among 37 which sought
reserve banks. Independent investiga
tions were conducted by the Treasury
Department and the prefemce of every
one of the T475 National member banks
to be was asked.
Many factors Considered.
The committee took into considera
tion the following factors: Ability of
member banks within a district to fur
nish the necessary f4.000.000 capital
for the bank; the mercantile industrial
and financial connection in each' dis-
iCoacluded oa Fag Hj
SUBJECT ACTS ON
HIS KING'S ADVICE
GOVERNOR'S OPINION OF LAXB
William Foss Then rinds His Ore
gon Lands Thirsty for "Water,
Which Executive Delays.
SALEM,' Or.. April 2. (Special.)
Governor Oswald West versus Prince
Charles of Denmark, the King of Nor
way. These rulers are at variance regard
ing the success of the Deschutes Land
Company's project in Crook and Kla
math counties. Whether the House of
Haakon or the House of West is right
remains to be seen.
William Foss, who has 200 acres un
der the project, and who has spent con
siderable money improving it, recently
wrote Governor West that the project
affairs were not proceeding satisfac
torily. He criticised the work of J. E.
Morson, president of the company, upon
whom Governor West has waged bitter
The letter was used by the Governor
in an effort to prove his contention
that the company had not lived up to
Friends of Mr. Morson used it to
prove that settlers had suffered be
cause of the Governor having delayed
the irrigation work by tying the proj
ect up in the courts. x
Mr. Foss, however, before going to
La Pine and improving the land, had
made considerable money In Portland.
He did not propose to take a chance
in investing It without asking the opin
ions of his former sovereign, the King
of Norway. So he wrote the King and
asked him what he thought about it.
Tin King replied that America was a
great country. Oregon was a great
state, and that Mr. Foss could rely
upon getting a square deal here.
Despite the delay in the work, Mr.
Foss is making more improvements.
He says the mountains surrounding his
home remind him of his native land.
WILSON'S PLAN UNCHANGED
President Expects Congress to Ad
journ by July 1.
WASHINGTON. April 2. When asked
today whether the lengthy considera
tion of the tolls question would neces
sitate a curtailment of the legislative
programme so as to secure an early ad
journment. President Wilson said no
change in the Administration's plans
as outlined early in the session was
The President said he believed Con
gress would dispose of its business,
including the- tolls and trust question,
by the middle of June or the first of
Administration leaders had fixed on
June 1 as a goal for adjournment, but
it is generally admitted the session will
extend beyond that date.
CONVICTS TO BE EDUCATED
Kansan Would Give Prisoners Col
lege Training by Correspondence.
LAWRENCE. Kan.. Anril 2 A l.
lege education by correspondence for
every prisoner In the State Peniten
tiary win De possible If a plan an
nounced today by Frank Strong, chan
cellor of the Universitv of TCansoa
adopted by the board of administra
Chancellor Strong would have the
privileges of the extension division of
tho university, including vocational
training by correspondence, offered to
the prisoners at the expense of the
IRISH GIANT 10 FEET TALL
Prehistoric Skull Measures 18 Inches
I'rom Crown of Head to Chin.
LONDON, April 2. According to a
despatch published here today, the
skeleton of a person who had been ap
parently 10 feet in height has been
found at Dysart, County Louth, Ire
land. The skeleton was unearthed to
gether with that of two others sup
posed to have been buried in prehistoric
The three persons had been interred
in square graves,- all incased with
stones. The skull of the giant meas
ured 18 inches from crown of the head
to the chin.
PET ANTS CAUSE FURORE
Insects Subject of Legal Perplexities
Escape, but Are Recaptured.
WASHINGTON, April 2. Mrs. Charles
W. Morse's pet ants, already the sub
ject of many complexities, escaped to
day in the Department of Agriculture
a-'d threw the entomological office in
to an uproar. After an hour's pursuit
they were recaptured and placed In a
Jar labeled "explosives."
The legal officers of the department
aro trying to decide whether they must
be returned to the banker's wife or ex
cluded from the country as pests.
MAJOR GALLAGHER SHIFTED
Quartermaster at Seattle Will Go to
SEATTLE, Wash., April 2. (Spe
cial.) Major Hugh J. Gallagher, in
charge of the United States Quarter
masters' depot in Seattle, has been
transferred to duty in the Philippines.
He will start for the islands July 5.
He will be succeeded by Colonel
George B. Davis, Department Quarter
master at Boston. Major Gallagher
has been stationed In Seattle the last
six years and has held his present of
fice IS months.
TOBBEOIJ IS TAKEN
BY VILLA'S FOBCES
Many Prisoners Cap
tured, More Pursued.
VICTORY COMES IN CANYON
Barracks Fall, Barbed Wire
REBEL LOSS IS HEAVY
Bugle Announcing Triumphant Out
come of Bloody Campaign Blown
First at Juarez, as Compli
ment to Carrama.
JUAREZ, Hex., April 2. Torreon fell
completely Into the hands of the rebel
at 10:20 o'clock tonight, according to
announcement made here tonight by
General Venustiano Carranza.
The news was first announced to the
world when the bugler in front of Car
ranza's residence blew the staccato
notes of victory. The paean, Carranza
sa'Id, was sounded even before it was
heard In Torreon. "Villa delaying out
of compliment to his chief.
fleeing; Prisoners Pnrinrd.
The meager bulletins, excitedly an
nouncing victory after the bloodiest
series of battles known to modern Mex
ico, said that Villa captured a large
number of prisoners and that the flee
ing remnant was being pursued.
Whether Velasco. the federal com
mander, was captured was not told.
There was heavy fighting today, it is
said, and the end came when, after
capturing the three remaining bar
racks held in the city by the federals,
the rebels stormed the trenches and
barbed wire entanglements of Canyon
Troop In Canyon Thought Raeaned.
The prisoners captured are believed
to have been the defenders of the bar
racks, while the troops in the canyon,
which forms an egress from the hill
girt city, were able to escape.
The campaign against the federal
stronghold of Torreon. the main object
of the- rebel campaign, began sud
denly two weeks ago after Villa had
spent months in making the most care
The rebel loss in the campaign is
said to be well over 2000 in killed and
wounded. Trains loaded with the
wounded have been arriving daily at
Chihuahua for the last week.
Army Worked In Shifts.
The rebel commander moved with a
rapidity hitherto unknown in Mexican
warfare. He worked his men In shifts,
and as one shift became exhausted he
sent fresh hosts against the enemy.
Several small towns of lesser impor
tance in a military sense fell first
Mapimi, Nore and Sacramento, where
a bloody battle, .was fought. This opened
a path for the main attack. Next came
(Concluded on Page 2. )
MEN IN THE
INDEX OF TODAYS NEWS
YESTERDAY'S Maximum temperature. 68
degrees; minimum, 03 degrees.
TODAY'S Showers: southerly winds.
Contending armies at Torreon exhausted.
Bllzxard deals desth to craw In sesllnc
lleet. Page 2.
Fall of Torreon announced In Juarez. Fate 1.
Twelve bank reserve cities designated.
Administration adopts no compromise policy
toward canal tolls. Psge 2.
John Llnd coming home on vacation. Pare 2.
President Rea, of Pennsylvania system, ar
gues for higher rates. Pag X.
Methodist Conference cheers endorsement ot
revivalist. Page J.
Ban Franrlseo "cop" scores court for freeing
woman he arrested. Page 1.
Minister says Billy Sunday "delivers the
goods." Page 3.
Historic records destroyed by fire at Bt
Augustine. Page 3.
Coast League results: Sacramento 7, Port
land i; Venice . San Francisco 1: Los
Angeles 7. Oakland . Page .
Tonight's city championship card lining cli
max to season's busing. Page 7.'
Federal League leaders see victory which
ever way Kllllfer decision go. Pago 7.
Superbas defeat Frank Chance's men. 4 to
?.". MJr League ball opening by ex
hibition game. Page .
Governor West belies King ot Norway's
praise of Americans. Page 1.
More csndldatas file declarations. Page 5.
J .!Jv?'"N.'il "l"" seneral superintendent
of Great Northern, page 2U.
Pastor on stand In divorce suit charges wife
forced him to speculate. Page 0.
Commercial and Marine.
Wool-buying operations transferred to East
ern Washington. Page lit.
Wheat firm at Chicago on reports of ap
pearanca of Insect pests. Page 81.
Stock msrket responds readily to Improved
buying. Psge 21.
Bear's trip northward Is speedy. Psge IS.
Portland and Vicinity.
Street msrket proposal under consideration
by city 4Jummistoners. page lj.
Ex-deputy, accused of graft. Is cleared by
oroer of Judge McGinn. Page 13.
Contractors announce thst rsllrosd work
Page"!? Very iortnwe-
Progresslve business men glvs Mayor Gill
rousing reception. Page 14.
Weather report, forecast and data Page 21
call" or rJ?S?"d '"Itlve timber hear
can or duty, t'mge l.
KERMIT ABIDES BY LAW
Spanish Marriage Statutes He veal
Birth of Xext Roosevelt to Wed.
HEMPSTEAD. N. Y April 2.(Spe
cial.) In order to conform to Spanish
marriage laws, a copy of the birth cer
tificate of Kermlt- son of Colonel
Roosevelt, who Is now In South America
with his father, was mailed to Madrid.
Spain, today by Town Clerk Charles
Weeks, of Oyster Bay Township.
Kermlt Roosevelt will be married in
Madrid. His engagement c.-as an
nounced recently. The ceremony will
take place at tho home of Ambassador
Willard. in Madrid.
t The certificate set forth that Kermlt
was born at Oyster Bay, October 10
MINERS SAIL ON VACATION
While New Wage Scale Is Arranged
Coal Diggers Take Trips.
CHICAGO, April 2. Indiana and Illi
nois coal miners, most of them natives
of Ireland. England and Scotland, will
have a vacation in their native lands
while the operators and union leaders
determine on a new wage agreement.
Five hundred miners left here today
on a special train for Halifax. N. S.,
whence they will sail for Europe.
EFFICIENT MEN NEEDED.
lip I r j
JOBS AWAIT MANY
WORKERS IN NORTH
Mi!Hos Tnis Year.
MEN MUST PAY OWN FARES
Washington and British Colum
bia Scene of Operations. .
MANY CONTRACTS ARE LET
Almost All Northwest Companies
Have Big Undertakings Projected
and Portland Men Will Be
Favored by Contractors.
Railroad construction work in vari
ous parts of the Northwest now under
contract by Guthrie. McDougall &. Co.
of Portland, will call for the employ
ment within the next three weeks of
thousands of men and will necessitate
the expenditure of many million dot
Although none of this work is to be
done in the immediate vicinity of Port
land most of It being in British Co
lumbia and In the State ot Washing
ton the work Is directed from the Port
land office, the construction camps are
outfitted here and most of the supplies
are purchased here.
The principal project now under con
tract by this company Is construction
of the Kettle Valley railroad In South
ern British Columbia. While this road
Is to be only 35 miles long it must be
built through a rough, mountainous
country and will require a heavy force
Call for Men Irgent.
"We will employ all the men we can
get," said Natt McDougall. head of the
company, yesterday. "Whtle we doubt
less will be able to get men right on
the ground, we will take them from
Portland If they have any. means of
getting there. We cannot furnish them
The J.ettle Valley road is being built
by an independent corporation, but It
Is understood that It Is to be a sub
sidiary of the Canadian Pacific. It wlU
be built westward from Pendleton, on
me Canadian Pacific, to Princeton,
where it will connect with the Van
couver, Victoria & Eastern, a Great
Northern subsidiary. From Princeton
westward the Great Northern and Can
adian Northern are building a Joint
tireat Northern Gets Entry.
Guthrie, McDougall & Co also has a
contract from the Great Northern for
building a piece of track from Coal
mont, B. C. to Otter Summit, where
connection will bo made with- existing
properties of that system. When com
pleted this line win give the Great
Northern a new entrance into Victor!
and Vancouver from the east, as the
line from Orovllle, Wash., to Coalmont
will be completed this Summer. The
ConcludeU on Page 3
WOMAN FREED, COP
SAX FRAXCISCO POLICEMAN
TALKS FOK 900 MEN.
Witlrout Appearing In Court Wife of
Automobile Agent Has TraTfic
Law Charge Passed.
SAN FRANCISCO. April S. (Spe
cial.) A technical charge of violating
the- traffic laws against Mrs. Eva Eib
was dismissed today by Police Judge
Sullivan without her appearance in
court. Mrs. Elb. 'who is the wife of
an automobile agent, was threatened
with nervous breakdown as a result
of the arrest, the Judge said.
Traffic Policeman Baily. who ar
rested Mrs. Elb in the fashionable
shopping district yesterday, addressed
the court, declaring the dismissal an
outrage and charging that it was due
to influence. He declared himself the
spokesman of the 800 men on the
"I may be brought before the Com
mission through her influence," he
said, "but I will speak.
"When Mrs. Eib turned Into Grant
avenue the wrong way I warned her
and told her to go back. She became
indignant and Insulted me. Before 400
people she gave me the most severe
tongue-lashing I ever had.
"The manner in which I was treated
was an affront to the department.
"She refused to go to the station un
til 1 threatened to call the patrol
"Isaac Goldman, said to be a grand
Juror,, followed me, took my number
nd threatened to carry the case to
COAT CAUSE OF EXPLOSION
Woman Throws Garment in Stove
nd Wants Compensation.
OLYMPIA. Wash., April 2. (Special.)
"Shot In the face by a coat" was the
novel accident reported by Mrs. p. J.
Butler, of White River, to the in
dustrial insurance commission, with a
demand for compensation.
Mrs. Butler, who Is employed as a
housekeeper by a power company, said
that she threw the cast oft garment
Into the stove and an explosion fol
lowed. The woman received Injuries
about the face, arm and body. Whether
the pockets of the coat contained
dynamite or whether celluloid buttons
caused the explosion Is not known.
FRIGHT FROM FIRE FATAL
Salem Man Expires of Heart Disease
Two Honrs After Disaster.
SALEM. Or, April X. (Special.)
The burning of his home frightened
John Thompson. 60 years old. to death
early this morning.
The man overturned a lamp at his
home on North Capital street and soon
the house was enveloped in flames. He
watched the flames for a while and
then fell insensible, dying two hours
later at the home of a neighbor. He
had suffered from heart disease for
several years and the excitement killed
He lived alone in the house.
BUTTER PRICE TO DROP
Quotation Today to Bo Lowest on
April 3 In Many Years.
The Spring decline in the butter
prices has started. Today a number of
the leading Portland creameries will
reduce their prices 4 cents a pound, to
Production of butter Is increasing at
a rapid rate, and in some quarters a
surplus Is on hand. Extremely low
markets In the East and In California
also Influence local prices.
The wholesale quotation this morn
ing will be the lowest in Portland on
this date in many years.
ENGINE PILOT SAVES MAN
Sheep Buyer Escapes Death When He
Drive's Auto Into Train.
GRAND VIEW. Wash, April S.
(Special.) Everett Butler, a Prosser
sheep buyer, struck a Northern Pacific
passenger train today with his automo
bile a half mile north of here.
The automobile was dragged 100
yards and demolished. Butler and a
lamb that was in the machine were
caught on the pilot ot the engine. One
of Butler's ribs was broken and he was
severely bruised. The lamb was not
SCHOOL TO QUIT FOR GAME
Board Declares Hair-Holiday After
noon Baseball Series Begins.
The school children of Portland were
relieved of the prospective responsibil
ity of playing hookey on the day of
the opening baseball game when the
School Board yesterday declared by
unanimous vote that the afternoon of
April 14 will be a holiday.
Director Plummer declared that the
Board should take the action In view
ot the recognized importance of the
opening baseball game.
ROBBER SUSPECT RELEASED
Xo Evidence Found to Connect Ab
erdeen Man With El ma Crime.
ABERDEE::. Wash, April 2. Sam
Malsagow. a- cafe and lodging-house
proprietor, who was arrested here to
day on suspicion of complicity In the
robbery last Saturday night of the
bank of Elms, was ordered released by
Sheriff Mathews tonight.
The Sheriff said he could find no evi
dence connecting him with the crime.
DUTY'S GALL HEARD
BY CAPABLE MEN
Majority Bow to Will
' of Public.
CALL OF CITIZENSHIP FELT
Personal . Sacrifice Will Be
Made for General Good.
NINE AGREE TO MAKE RUN
Yi.iouce M. Smith, Out of Clt, 1,
Only Ouo Xot Heard From W. F.
Woodward May Xot Bo Able to
Comply With Request.
Keen Interest was manifested gen
erally yesterday in the call made by
citizens on 12 men of tried capacity to
become candidates for the lower house
of the Legislature from Multnomah
County on a platform of retrenchment
In public expenditures and greater ef
ficiency in public service.
So general was the public response
that the men named In the call were
urged by many persons through the
day to make the personal sacrifice In
volved, and. in the Interests of good
citizenship, consent to become candi
dates. One result was that at least nine of
the 12 had decided last night that they
will let their names go before the pub
lic as candidates for the nomination.
Oscar W. Home, well-known labor
leader, and D. C Lewis, of St. Johns,
had announced their candidacies be
fore the call was made. The circula
ting of their nominating petitions is
well under way already.
Many Agree in Make Hun.
Others in the lltt who definitely agree
to become candidates, in response to
what they feel to be a duty of citizen
ship, are Ben Selling. Dr. Andrew C
Smith. John Uilh. E. V. Llttletlcld and
S. B. Cobb was out of the city yes
terday and will not return until today.
Before his departure, however. Mr.
Cobb said that he would be a candidate
If a majority ot the other men abked
to run In the citizens call would do so.
Lee B. Hendricks was also absent
from Portland. He left on the Shasta
Limited, of which he Is conductor, for
Roseburg. the end of his division. Mr.
Hendricks, who has been railroading
for an even 30 years, and is known far
and wide not only among railroad men
and the traveling public, but as a sub
stantial citizen and taxpayer of Port
land as well, said before he left that
he will run.
Amedee M. Smith Absent.
One other of the 12 men named was
absent from the city. Amedee M.
Smith, member of the Industrial Wel
fare Commission, is in Los Angeles. Mr.
Smith was telegraphed that he had
been requested by leading citizens to
be a candidate for the Legislature. No
reply had been received from him last
Fielder A. Jones, president of the
Northwestern Baseball League, said
that he would make known his deci
sion today. Mr. Jones was urged by
many of his friends to run. His first
inclination was to deeHne on the
ground that the sacrifice involved
would be too great. So many persons
spoke to him, however, approving ot
his candidacy and asking him to let his
name go before the public for the nom
ination, that he took it again under
William F. Woodward was the only
one of the 12 men asked to be candl"
dates who thought that it would b
Impossible t- accept.
Mr. Woodward Expresses Regret.
He said that It was a source of much
regret to him and that he felt that if
it were possible to do so he would con
sider It his duty to run. but that he
feared circumstances at this time made
it out of the question.
One little example' illustrative of the
real feeling of public service actuating
the men who have accepted the call to
be candidates is to be found In the case
of Ben Selling and Dr. Andrew C.
Smith. Both Mr. Selling and Dr. Smith
have served terms In the State Senate,
and each has been President of the Sen
ate. Some men might have taken the
attitude that to run for the lower house
after being President of the Senate
would be such a "come down" in im
portance that they would havo declined.
But Mr. Selling and Dr. Smith both
took the broad view, saying they con
sidered the occasion one to which they
should respond as citizens.
Cnll nt Daty Kelt.
"I look upon this as a duty ot citi
zenship." said Dr. Smith last night. "In
asmuch as the majority of the other
men asked to run are willing to make
the response, I am willing also. I shall
make no campaign, and no politics
whatsoever will enter into my candi
dacy. If I am nominated and elected.
I shall feel that I have been sent to
the Legislature Irrespective of any
party affiliation, to give the best or my
knowledge and experience to the large
problems that will have to be solved.
Including that or reduction or taxes."
Mr. Selling expressed himself In
much the same way. "I am willing to
run If the majority of the men asked
accept." said he. "I feel that the slat
has been overburdened with taxes,
which have been especially tevete on'
people of ordinary means, and that we