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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Sept. 12, 1914)
6 THE MORNING OREGONIAN, SATURDAY, SEPTEMBER lg, 1914. WILSONVETOES BILL; SUGGESTS CHANGE LATE PHOTOGRAPH OF NEWLY ELECTED POPE. Congress Told Postal Savings Increase Is Worthy With Single Exception. RESERVE BANKS FAVORED President Believes Federal Funds Should Remain Under Control, but "Would Extend Period for Their Removal. WASHINGTON. Sept. 11. President Wilson today vetoed the bill to raise the limit of individual deposits in pos tal savings banks to $1000 because it contained a provision repealing a. sec tion of the new bank law which pro vider that Federal funds must be de posited only with members of the Fed eral reserve system. The President's message was as fol lows : "With most of the provisions of the bill I am in hearty accorL But a por tion of section 11 seeks to make a change in the Federal reserve act of last December, which I venture to re gard as unwise. Ultimate Unification Desired. "When the Federal reserve act was passed it was thought wise to make the Inducements to state banks to en ter the Federal reserve system as strong; as possible. It was, therefore, provided in that act that Government funds should be deposited only in Fed eral reserve banks. The principle of uch a provision Is sound and indis putable. The moneys under the con trol of the Government ought to be placed only in those banks which are most directly under the supervision and regulation of the Congress itself. 'It Is my clear conviction, very re spectfully urged and submitted, that as a matter of principle, as well as or policy, we should strengthen and safe guard the new banking system zeal ously with a view to the ultimate uni fication of the entire banking system of the country under the supervision of the Federal Reserve Board, it would in my judgment, be a grave mistake to take away any of the benefits or ad vantages held out by the present law to member banks to enter the system and take them away just as the system is about to be put into operation and the promise of the act of last Decern ber made good to the banks that have entered. Amendment Is Suggested. "I am not insensible of the incon venience which some banks might suf fer if the postal savings funds were withdrawn at this particular time, ai though the- law itself, of course, con veyed notice of that removal fully nine months ago. I am not sure that the Federal Keserve Board would not be Justified, under the terms of the law as It now stands, in exercising a cer tain liberal discretion in determining the time and the rates at which deposits should be withdrawn from banks not within the system. "But, assuming that there has not been notice enough and that the with drawal would of necessity be rapid or Immediate, 1 venture to suggest that the otherwise admirable bill which now return might be amended and might, because of the financial circum stances now temporarily existing, be very advantageously amended, to ex tend for another 12 months the period within which banks not members of the Federal reserve system must sur render the deposits of the Government "May I take the liberty of suggest ing that this be done? It would remove from this bill the only feature which seems to me incompatible with sound public policy. "WOODROW WILSON. EMBEZZLKJME-XT FROM PORTLAND FIRM ADMITTED BY BOISE MAN. Eugene Uenle, Prominent In Commer cial Circles, Starts Sentence Before Wife Knows of Arrest. BOISE, Idaho, Sept. 11. (Special.) Waiving all of his statutory rights and within a few hours from bis arrest here on the charge of embezzling $3950 from Kissinger & Co., hide dealers, Eugene Henle bad started serving an indeter minate sentence of from one to 14 years in the State Penitentiary today, the an nouncement creating a sensation as well as a shock to his business associates. He was in the penitentiary before his wife had been notified of his plea of guilty. Henle was local agent for Blsslnger & Co.. and was widely known in busi ness circles. He was a director of the Boise Commercial Club and active as ono of its workers. Mr. Kissinger, of the firm of Blssinger & Co., is Henle's cousin. Henle was given a free rein to draw on the company's account to purchase hides and furs. It was dis covered he drew more money than he expended on behalf of the business. Bissinger tiled the charge of em bezzlement against Henle this morning. Within an hour after bis arrest he ap peared in Justice Court, pleaded guilty, waived all statutory rights, was taken Into the District Court and sentenced to serve the indeterminate sentence and was removed to the penitentiary forth with. He is a German subject, said to be of high connections. ACCIDENT COMPANY SUES Stockholders Defendants In Action Asking for Injunction. Suit was begun against almost 100 stockholders yesterday by the Amer ican Life & Accident nlsurance Com pany, which asks that an Injunction be granted restraining the defendants from instituting proceedings against the plaintiff on account of stock that has been issued by the American Brok erage Company, which is alleged to have been represented falsely as having been Issued by authority of the plaintiff corporation. It Is set up that several months ago the American company decided to re duce its stock 50 per cent and that the defendants were Induced to become stockholders In the American Broker age Company, which. It is alleged, has no authority to conduct busluess in this state and cloaked Its operations by hiding behind the American Life & Accident Insurance Company. Both companies are under investiga tion by the District Attorney as to whether they are complying with the stalo corporation laws. -Photo Copyright by Underwood & Underwood, BENEDICT XV. DEEP CUT PLANNED Mouth of Columbia to Suffer in Redrafted Bill. PORK BARREL STILL ALIVE Insistence of Democratic Senators Threatens Whole Measure, While War Revenue Is Expected to Take Rlght-of-Way. The Asiatic town of Ma! watch I, on tha herders of Russia, la lnhabltated by men o&It. Women ara forbidden entrance to It. OREGONIAN NEWS BUREAU, Wash ington, Sept 11. When the rivers and harbors bill Is redrafted and reported back to the Senate, the appropriation for the mouth of the Columbia River, which now aggregates $5,100,000 cash and a continuing contract, will be cut to J2.500.000, and may be reduced to $1,500,000. Several members of the commerce committee are Insisting that $1,500,000 is the outside amount that should be authorized for the mouth of the Columbia Senator Chamberlain, who Is on the commerce committee, says he hopes to retain the full cash appropriation of $1,000,000 and also is hopeful of ob taining a continuing contract authori zation of $1,600,000 in addition. He adds that he will fight for this amount. Other Items to Be Reduced. Other Northwestern appropriations. Senator Chamberlain believes, will not be reduced"ln amount, but will remain as in the present bill. This conclusion. however, is at variance with the views of Senators in charge of the bill, ana the Intimation is given today that prac tically all these items will be reduced, inasmuch as any money appropriated now will be for only part of the fiscal year. Several Senators close to the Ad ministration are urging the advisabil ity of making more than a 25 per cent reduction in the bill, contending that appropriations sufficient to carry on work until next March wiil be adequate, as it is the Intention to pass another rivers and harbors bill at the short session, and that bill, they point out. can be made immediately effective. "Pork" Threatens Measure. Thus far the Democratic Senators in charge of the rivers and harbors bill have objected to eliminating "pork barrel" Items, and the most they will be willing to do will be to reduce the amounts appropriated for those, as for other projects. If this policy is ad hered to Senator Burton and his as sociates profess ability to defeat the bilL Daily it grows more difficult to get a quorum in the Senate and many Senators threaten to leave by October If the bill is not passed prior to that time. Indications are that the Senate early next week will lay aside the rivers nd harbors bill to consider the war evenue bill, though the Oregon Sena tors are protesting against this course. If the rivers and harbors bill Is dis placed by the revenue bill, and that Is understood to be the President's de- lire. It will be much easier for the op ponents of the "pork barrel" Items to accomplish the defeat of the entire bill or else force the elimination of the Items they are opposing. FREE TRADE IS CRITICISED W. D. Fenton Speaks to Realty- Board on Business Outlook. "Though favoring an interchange of trade between nations, I am unwilling to see our people open their doors to all the wares of Europe and Asia, and thereby lose work that belongs to our men," declared William D. Fenton, counsel for the Southern Pacific Rail road Company, In an address before the Realty Board yesterday on "The Busi ness Outlook." "The people of the United States are being asked to pay an emergency tax of $100,000,000 which could have been raised from tariff duties on lumber, wool, sugar and other products. I am not speaking as a partisan but as an individual. . "A prominent Portland lumberman told me yesterday that he couldn't market his lumber at a profit of more than 35 cents a thousand because of the competition of Canadian lumber which is transported in ships at one half the price we pay. We tie our selves and our own men and then sit around and ask what is the matter. "Another thing! We must check sen timental legislation. If the laws we now have are properly enforced we have no present need of a state of pro hibition that will make a nation and state of hypocrisy and increase the revenue of the drug stores. Oregon is now invested with an army of paid ad vocates of a special cause who are seeking to drag religion into the mire. They are trying to drive out of Oregon an industry that brings $6,000,000 to this state annually. In the four months and a half that I spent In Europe last year I saw but one drunken man." Mr. Fenton asserted that he did not believe the war would benefit the United States. He said we would have to pay the penalty for the tightening of finances In Europe, "the cradle of our credit," The most hopeful circum stance, he said, was the fact that there was $1,700,000,000 of actual gold in the United States, which is more than that possessed by several of the warring countries combined. "In order to bring about prosperous times again we must effect a curtail ment of credit," he said. "A spirit of economical and personal extravagance has taken hold of the people. We are disposed to spend the money of the fu ture that is not yet made. In Oregon we have gone the limit in state, county and municipal extravagance. "Personal extravagance also must be checked. Too many spend more than their Incomes, and some mortgage their homes to buy automobiles. A tone of idealism is noted In suggested legisla tion. When the demands of the world require that a man work 10 hours a day it Is folly to limit his work by law to eight hours a day. For 30 years I have been working 12 hours a day. "What we need is more men who are willing to work with their hands and heads instead of with their tongues and jaws on the streets of the city as reformers. Oregon should cease to be an experimental, station for freak legis lation.'' Mr. Fenton said that In his judgment the war probably would end before the close of the present year, according to terms of mutual concession. An appeal for funds to help the Vis iting Nurse Associatioln in their chari table work was made before the Board by Mrs. R. J. Marsh. Special vocal WIN IS BLAMED Working by Wives Declared Bad for Children. OPEN SHOP CRITICISED Los Angeles Kmployers Testify One Reason for Low Wages Is Inef ficiency Girls Not Serious Between 18 and 22. LOS ANGELES, Sept, 11. Despite the fact that the local market is badly overcrowded, conditions among women workers in department stores are above those in many other cities, the Federal Industrial Relations Commission heard today from various witnesses. The average minimum wage, Mrs. Katherlne P. Edson, a state industrial welfare commissioner: Arthur Letts, president of the National Dry Goods Association, and W. E. Chamberlain, manager of a local department store, testified is about that paid in states where it has been fixed by law. As yet no minimum wage law has been passed in California, but one Is to be introduced at the coming sessions of the Legislature. It is thought the scale will be between $8 and $10 a week. Lack of Efficiency Asserted, Both Mr. Chamberlain and Mr. Letts explained that lack of efficiency caused wages to remain low for many workers. "The greatest trouble among women wofaers In this country is lack of ef ficiency," Mr. Letts testified. "A great many employes regard the years be tween the ages of 18 and 22 as merely the carrying over period and have mar riage as their ultimate aim. If they can earn the money in my store, the sky is the limit." Neither of the witnesses employs organized labor, but Mr. Letts has a grievance committee among his em ployes that may present the case of an employe. Both men strongly indorsed the workmen's compensation act. Mrs. Edson testified that a contrib uting cause to social evils here has "l n . - ... ,, 1 . , . music was rendered by Mrs. Milton f lo , ,,,tf,LVt wages to pay for homes. Thus, she testified, many children were forced into the streets. Workers Cowed, Says Witness. "The result of the open shop In Los Angeles has been to produce moral. Intellectual and physical cowards," Mrs. Francis N. Noel, of the Women's Trade Union League, testified. "The Mer chants and Manufacturers' Association has cowed not only the worker but the small merchant." The witness also testified that the local police force is used to carry out the commands of employers. She cited an instance where she said two police men and a detective were sent forth to guard a laundry where It was feared five girls might resort to "violence." "What effect does action like this have on people?" Chairman Walsh asked. "It makes rebels of us," she replied. At this point a plainly dressed work ing girl walked down the aisle of the hearing room and, interrupting the proceedings, said: "Mr. Chairman, I am one of those girls." The girls, Mrs. Noel said, had been discharged for joining a labor organ ization. They made no demand on their employer, she added. o, Bay Today Man Tomorrow The health of the growing boy depends upon the food you give him. See that he drinks Ghirardelli' s Ground Choco late. He'll like it and it will do him lots of good. It is a real health food and drink and costs no more than those be verages that are universally con sidered to be harmful. Begin serving Ghirardelli s tomorrow. It will please every member of the family. In hermetically sealed cans. i GhirardelK's Ground Chocolate is the only original ground chocolate. It has been used in Western homes for over a third of a century and its popularity is growing day by day. D. GHIRARDELLI CO. Sine 1852 San Francisco Despite tfaa European war there will be i increase in pries. GROUND CHOCOLATE these returns may be thrown out. The race for Representative is the only one that will be affected, except that John Raught will be given a larger majority for the nomination for County Treas urer over Val Myer. In the 18 months that Morton has been Incorporated no election has ever been held In the town. When the books and records of the various city officials were checked over by a state examlnei they advised to order registration books so that the voters could cast bal lots this Fall, but the advice was ap parently overlooked. PAUPERIS past brilliant George Bright, Killed at Hood River, Victim of Rum. HOOD RIVEK, Or.. Sept 11. (Spe cial.) Until he was run down and killed Thursday by an O.-W. R. & N. passenger train, local people considered George Bright, who has been a county charge for the last year, an ordinary pauper. His death brought to light the fact that formerly he was a resident of Finley, O , where he was a leading criminal lawyer 20 years ago, and was at one time a District Judge stationed at Cincinnati. He also played a promi nent part in the politics of the day, having been one of the chief henchmen of George B. Cox. Drink reduced him to poverty. NEW YORK RAISES LOAN HUNDRED MILLION IS PAID SOON AFTER PLAN ADOPTED. tlonal patriotism and to the civic prtda of the city's banking community. Banks and Trust Companies Subscribe SBS,7TK,357, Leaving Only StWt.OOO for I'ldrrnrltem to Raise. NEW YORK. Sept. 11. Within a few hours after the board of estimate and apportionment had adopted today a plan for the city to borrow J100, 000,000 with which to pay off in gold a foreign Indebtedness of approximately 180.000, 000 and other maturing debts, J. P. Morgan & Co. and Kuhn, Loeb & Co., syndicate managers of the loan, turned over to the City Chamberlain a check for 8100,166,(17. As the loan 1b of Sep tember 1, the extra 8166,617 represents the Interest accruing since that date. Banks and trust companies In Greater New York subscribed 898.778.457, In cluding the Interest, which left only about 81,386,000 to be taken by the syndicate managers. Three banks in the city failed to participate because none of the three could summon a quorum of Its board, owing to the absence of directors from town. Henry P. Davison, of the Morgan firm, commenting on tho success of the loan, said It was due entirely to Na- Dcfense Plea Wins Jury. BAKER. Or.. Bept II. John "Scotty" Cosgrove, who stood trial In the Circuit Court for the murder of William Carroll, was found not guilty lata this afternoon. The verdict wss returned five minutes after tha Jury retired. Self-defense was pleaded by the prisoner as a reason tor kllllnu Carroll. The verdict was received with a great demonstration In the court room, which was tilled with miners and friends of the prisoner. Record Enrollment Expected. itviv-tthritt OF WASHINGTON. Se attle. Sept il. (Special.) It Is pre dicted by the eaminisiauon mm vn enrollment of the University of Wash- . Ington this year will reach approxi mately 8400, or an Increase this year r ,.,, ihn 400 students. The Initial enrollment of the university freshman cl.iss may exceed 1000. Veterans to Conduct Funeral. SALEM, Or.. Sept. 11. (Special.) Funeral services will be held tomor row over the body of John Bain, a pioneer of Sllet. who died here. The Grand Army of the Republic will hava chsrge. Mr. Bain owned a fine timber claim, and Is ssld to be without rel atives. If no heirs appear to claim the land. It will revert to the stale! Fisher. Herbert Gordon, president of the Lawyers' Title & Trust Company, presided. CITY MAY N0JM0VE DIRT Commissioner Dleck's Plan to Pre vent Slides Not Upheld. When City Commissioner Dieck re ported to the City Council yesterday that he had succeeded in securing the consent of all the property owners on Maywood drive to the city removing, at the expense of property owners, a large amount of dirt along the drive to prevent dirt slides next Winter, the Commission balked at the arrangement. Believing that the dirt should be removed as a safety measure, Mr. Dieck posted notice on the ground or dering the property owners to remove the dirt, under the "weed ordinance." Commissioner Dieck asked for an appropriation to cover the cost of re moving the dirt the amount to be In the form of a loan to be paid back to the city in installments the same as street-Improvement assessments. J. P. Hyde Will Be Buried Today. The funeral of James P. Hyde, who died Wednesday, will be held tomorrow morning at 10:30 o'clock from St. Charles Church, 986 Alberta street. Burial will be at Lone Fir Cemetery. Mr. Hyde was born in Portland and was the husband of Minnie Hyde. Mr. Hyde was an ex-fireman and was a member of the Moose and the Red Men's lodges. Nova Scotia coal mines are rapidly ba ins equipped with electrical machinery. MORTON VOTE IRREGULAR Ballots or Those Who Did Xot Regis ter May Be Thrown Out. CENTRALIA, Wash., Sept 11. (Spe cial.) Due to the fact that none of the voters who cast ballots in the Mor ton precinct Tuesday were registered i and none of the votes were sworn. J Will America Carry Her Burden? GREAT BRITAIN and Europe, where productive industry has been par alyzed, have mouths to feed, bodies to clothe, constructive operations to carry through, and a thousand-and-one wants and needs to be satisfied and Great Britain and Europe look to America in con fidence for much of the needed supplies. It were folly for United States manu facturers and merchants to be down hearted during these terrible times in Europe. A great burden a great duty a great responsibility has been imposed on American manufacturers, merchants, bankers and workers. Shall we shirk this burden, this duty, this responsibility and fail to reap the opportunities? What's the Answer?