Image provided by: University of Oregon Libraries; Eugene, OR
About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Jan. 29, 1915)
VOL. L.IV.XO. 16,905. ACTION ON DEFICIT WILLBE POSTPONED Pruning of Estimates Regarded as Difficult END OF YEAR IS AWAITED Leaders Hesitate Over Exten sion of "War Tax." M'ADOO IS . OPTIMISTIC 'Secretary of Treasury Thinks Kcve- noe May Exceed Expectations and Hope for Revival of Business Is Expressed. "WASHINGTON, Jan. 28. Leaders of the Administration in conference to day with President Wilson decided that there was no immediate need of exec utive action to increase the Govern ment's revenues. Secretary McAdoo. of the Treasury Department, announced tonight that it had been agreed that at the end of the fiscal year the Govern ment would know better the effects of the European war and what action, if any, would be necessary. Mr. McAdoo declared that he still atood by his estimate of the Govern ment's revnue for the fiscal year end ing next June, which, compared with ills estimate of expenditures, would leave a deficit of $10,000,000. Kstlmatea Aot Reduced. It was understood after the confer ence that suggestions that the war rev enue action be extended for six months and that Congress abandon the $34, 000,000 river and harbor bill struck no responsive chord. On the other hand. Cabinet officers were said to have made It plain that in accordance with th President's suggestion tney had cut their estimates of expenditures to th limit ami could not make further re ductlons without risking impairing the efficiency of their departments. The estimates sent to Congress aggre sated $710,000,000, to which J2S.JOO.000 was to be added for Panama Canal dis bursements. Sobntantlal Addltloas Made. Some additional estimates have been sent In since then, however, and sub stantial additions to the proposed ap propriations have been made by the House committees in drafting the sup ply bills. Secretary McAdoo'a esti mates of revenues, exclusive of the Postoffice Department, was $7:8,000,000. This Includes $220,000,000 from customs, $'105,000,000 from ordinary internal revenue, $54,000,000 from the emergency nar tax, and $80,090,000 from the in come and corporation tax. In a statement on the White House conference. which Majority Leader Underwood and Chairman Fitzgerald, of the HouBn appropriations committee. attended, Mr. .McAdoo said: "The conclusion was reached that no action is necessary now, as we shall know better at the end of the fiscal year 1915 what the cfTects of the Euro, pcan war will be, and what, if any thing, is necessary to be done. Income Tax Itelled Ob. "Since the new tariff and income tax law was passed in 1913 there Is de f erred until June of each fiscal year the payment into the Treasury of $75,000 000 to $80,000,000 of corporation and personal income tax. Previous to that time almost the total receipts of the Government were reflected in the reve nues collected daily and shown in the Hnilv Trajmirv atntomnnt In Inn. 1915. almost the entire amount of the corporation and personal income tax will be paid, Just as in 1914, and what appears to be & loss in revenue will in the mcautimo be overcome." In support of Mr. McA3oo's state ment some officials pointed out that there was reason to believe that the war revenue act would be at least as big a revenue producer as had been expected. Available figures up to De cember last show that 6,000.030 war revenue stamps had been sold by in- tt-rnul revenue collectors throughout the country. During the entire year 1SP9. w hen the Spanish War tax was effective, the number- of stamps sold was 1,650.000.000. The value of those sold to date under the present law has not been determined. Cn& torn a Receipt Fall Short. Secretary McAdoo s estimate for customs receipts for the coming year, $220,000,000. is about J72.OOO.0O0 under the receipts for tlie fiscal year 1914. To dale customs receipts have been about $122,000,000. with live months yet to go before the end of the fiscal year. Jn the same period last year the customs receipts were about $178,003,000. Treasury officials, however, said today that with a revival of business there might be a marked pick lug-up in customs receipts during the next five months. It was said that large im portations of sugar were expected in the Spring. So far as the income tax taw goes, theie are no accurate data available yet in the Trea.-ury Department on wiitch officials can base an estimate of what may be expected this fiscal year. I-st year, it prouueed about $60,700,000 from corporations and individuals. In figuring- on the returns this year two factors have been Kept in mind. One Is that ofTiciuis are determined to make an active search for tax uodgers , and- have discovered ways in which ther hope to bring out several millions j of dollar. Mr. McAdoo expects to get j $0,if00,000 from the tax this year. , CANAL DECLARED TRUST FOR WORLD SF.XATOR BURTON SUGGESTS IX. TERXATIOXAL OPERATION. Free Waterway, With Great Nations of World Sharing Maintenance, Declared "Xot Improbable." XEW YORK, Jan. 28. An Interna tional agreement-under which great commercial nations will maintain the Panama Canal is not an improbability if traffic through the waterway proves financially disappointing. United States Senator Burton, of Ohio, said tonight in an address at the annual meeting of the New York Peace Society. Senator Burton declared that the Panama Canal must be operated under highly competitive conditions and hence would create no trade millenium and that the benefits the United States can derive through its use will be de termined largely by the Nation's abil ity to cater to the wants of the peoples of South America after a thorough study and understanding of conditions there. 'It has been proclaimed that the Panama Canal should be treated as a trust of the world," Senator Button Id. "In view of this fact and the manifest improbability that the tolls collected will ever furnish an adequate return on the cost, it is not Improbable that if the traffic should prove disap pointing tolls will be materially dimin ished or abolished entirely, or that with a free canal an International agreement may be reached under which great commercial nations will pay their respective contributions for its maintenance." NC0ME REPORTS SOON DUE Penalty Heavy After March 1 it Statements Fail to Arrive. By March 1 reports must be filed to net incomes in compliance with tho Federal Income tax act. Failure on the part of individuals and corporations to abide by the edict of Uncle Sam will entail the payment of an additional tax of 50 per cent, added to which may be other legal penalties. For that reason Milton A. Miller, Collector of Internal Revenue, has issued a circular to all persons and corporations on his list. One mistaken idea some married ones have is that because their income is less than $4000 and more than 53000 they do not have to file returns. For their benefit Mr. Miller points out that they must comply with the law as to statements, though asserting that they do not come within the full require, ments of the act. EUGENE HAIR CUT CHEAPER Price Cut tins of Past Few Days Brings Cost to 25 Cents. EUGENE, Or.. Jan. 28. (Special.) "Two bits" Is the price of a hair cut In Eugene today. Mirrored and tiled towntown "emporiums" could not stand the cut-rate competition of the smaller finished-ln-wood shops on the side streets and today the 3d cents price, which has been held np for 18 months, fell with a crash. The barbers saw it coming early in the week and called a meeting in an effort to rally to the former agreement. Several wayward members of the or conization were corralled, but last night they broke over and today "hair cut. 25 cents" was chalked over the windows of every shop in the city. Sign writers were in demand. THAW STRIKES LA GRANDE Freeze Drives City to Vsc of 'Grand Kondo Itiver Water. LA GRANDE. Or., Jan. 28. (Special.) While the Middle West shivers In the grip of Winter La Grande and the Grand Ronde Valley today have been enjoying the first thaw since the freeze of two weeks ago. The protracted cold weather and the attendant freezing of water pipes and hydrants, which has caused many to allow the water to run all night to avoid freezing, has been such a tax upon the city's supply that It has been necessary to resort again to the Grande Rond River for a sup plementary supply. Pumping day and night is necessary to keep the reservoir supply up to the demand. FIRST TRAIN RUNS TONIGHT Williamette Valley Southern Raises Voltage and Tests equipment. OREGON" CITY, Or.. Jan. 28. (Spe cial.) At 12 o'clock last night the volt age of the wires of the Willamette Valley Southern was raised from 600 to 1200. giving the line the highest voltage in the state. The last of the new equipment was received here today and was tested out. The electric locomotive has been here several days and has demonstrated its value. The company has six passenger cars, each capable of seating 60 persons. Two of the cars have baggage com partments and three are trailers. The first train will bring Molalla Moose to initiation ceremonies here tonight. RANCE PILES UP GOLD Reserve Inoreafred More Than 640,- 000,000 Francs in 1914. PARIS. Jan. 28. The report of the Bank of France for the year of 1914 shuws that the amount of sold on hand increased more than 640.000.000 francs, bringing up the go'.d reserve at the end of the year to 4,400.000,000 francs. On December 24 last the Bank of France lent to the government 3,900. 000,000 francs and to private borrow ers for commercial and industrial pur poses 4.481,000,000 francs. The dividend rate was decreased by 10 francs, as otupared with 1913. PORTLAND, OREGON, FRIDAY, JANUARY 29, 1915. STRING TAKEN FROM ,! ROCKEFELLER GIFT Donation,0nce Refused Finally Accepted. POUCY, HOWEVER, MODIFIED Head of Research Bureau Tes tifies to Incident. LIMIT PLACED ON FIELD K. Fulton Cutting Tells Federal In vestigator John D.. Jr.. Accepted Situation When Independ ence Was Asserted. NEW YORK, Jan. 2S. Robert Fulton Cutting-, president of the Bureau of Municipal Research, testified before the United States Commission on Industrial Relations today that the policies of the bureau were changed considerably after John D. Rockefeller, Jr., offered to do nate $20,000 toward defraying1 the ex penses of the Dureau for a year. Mr. Rockefeller thought it was un wise for the bureau, the prime object of which, the witness said, "was the systematizing of municipal govern ment," to engage in a publicity cam paign by distributing postal cards and pamphlets. Conditional Offer Refused. He also thought it inadvisable that the bureau should do work outside the State of New York or that it should Interest itself in technical pedagogical work in the New York schools. At the time he expressed these opin ions employes of the bureau were aid ing in an investigation which was con ducted by another bureau into the Chil dren's Court of Denver and Judge Ben B. Llndsey, who presided over it. Mr. Rockefeller at first offered the money on the condition that his sug- Vestion be complied with- Xhe board of trustees of the bureau decided at a meeting that It would accept no con ditional donations. Some time ago, however, the practice of sending out postal cards and pamphlets was dis continued and the work outside the state was curtailed. Bureau Receives Donation. The trustees, however, had intended to make the changes for a long time," said Mr. Cutting. "The bureau received the $20,000." Mr. Cutting described himself as a retired business man. He was trustee and director In several corporations, in cluding railroads and industrial com panies, the American Beet Sugar Com pany and other institutions, among them the New York Trade School, be said. The witness said that organized labor had always been antagonistic to the trade school, which teaches young men Concluded on Page 2.) KEYNOLDS The vocs J??SrAYliS: rH'?ZZ fcArSsIa K QUARTS 0V0, ' - " &Az''COAV ' ' G-U-ESS'STG- - INDEX OF TODAY'S NEWS The Weather. YESTERDAY'S Maximun temperature, 40.6 dogrees; minimum, degrees. TODAY'S Unsettled, with rain probably part snow In early morning; soumeasv erly winds. N IegbIature. Ronald G. Callvert report the House studeously and caTefully defending the d Ircct nrima ry. Pa ge l. Iouie has received 318 bills and meted on about 106 in first 18 days of session. Pace T. "Regular doctors and "drugless healers" In lift at Olympia. Page s. Assessor Reed discusses Senate bill for limiting tax levies.- Page 7. Idaho Senate kills resolution to call state constitutional convention. Page 8. Senator Bin am assails Forestry Depart ment. Page S. War. . Austra-HungaHans continue to beat Rus sfans backward. Face 5. American Consuls in war rone avoiding trouble wherever possible. Page 6. Rescued German officers give jewels to Britons after naval battle. "agc o. Mexico. Carranza army near Mexico City. Page 3. National. Senator Walsh defends right of Government to boy ships of belligerents. Page Z. Administration to defer action on prospec tive deficit. Page 1. American naval experts still believe dread noughts should be preferred to battle cruisers, if choice must be made, page -. President vetoes Immigration bill. Page . Domestic. Extreme cold continues in Middle West. Page 1. Witness says when " conditional gift from Rockefeller was refused 3'oung man re moved restriction. Page 1. John D. Rockefeller, Jr., is beginning to see needs of labor, says Mother Jones. Page 2. Senator Burton says International manage ment of Panama Canal is not improbable. Page 1. North Pole discovery articles in magazine under names of Peary and Cook, fixea by editor, says ex-employe. Page 1. Sports. Jefforson High basketball team defeats Washington High, 25 to 0. Page 14. One more -reliable pitcher would make Seals pennant contenders, says Walter Mc- Credie. Page 14. Matty advises "tapering off on training for athletic sports, but says games don't hurt boys. Page 14. Ice carnival here set for night of February 32. Page 14. Pacific Northwest. District Attorney Tongue says George A. Thatcher, criminologist, errs in Pender case, page 15. Commercial and Marine. Alaska line may dock at municipal wharf No. 2. Page 18:- May wheat advances sharply in local mar ket. Pago 19. Oregon hops selLat best price since last Sep- tcmner. page iv. Wall-street stocks rally " from preceding days decline. Page 19. Portland and Vicinity. United States Commissioner holds six alleged mutinous sailors are under jurisdiction of vice-Consul lor Norway. Page 18. Progressive Business Men's Club favors state aid for reclamation. Page 11. Weather report, data and forecast. Page Is. Clew -found in Dickey case jajc 12L. Faults v of efficiency, system told. Page 20. Oregon's contribution to Belgian sufferers aispatcnea. page 19. Auto dealers say greater year is coming. Page 16. Investigation Is added to recount In Sheriffs case. Page 13. GERMANS REACH SERBIA All Defiles Mined to Keep Invading Forces Out. GENEVA, via Paris, Jan. 28. The ar rival of a regiment of German Hus sars at Orsova. on the Serbo-Rumanian frontier, is announed here. The Serbian engineer corps has mined the gorges of the Danube froml Trehia to Belgrade and has fortified all the defiles through which the Austro-German troops could invade Serbia. CATCHES OREGON LAWMAKERS IAS4Y SVA -TOZ lAO OO, O o RECORDS rnn ..TV Utll Woman Is Frozen to Death on Street. WAVE JOURNEYS SOUTHEAST Relief for Middle West Appar ently Is Far Off. FLORIDA TO HAVE FROST Farmers Hail Low Tempera tn re as Blessinjr Giviny Assurance ol Ronntiful Crops Relatively Free From Pests. CHICAGO. Jan. 28. (Special.) All cold weather records for the last three years in Chicago were broken early to day, when the mercury sank to eight degrees below zero. Two persons were frozen to death, one, a woman, who perished while walking a short dis tance from her home to a grocery. Many cases of frozen feet, hands and ears were reported and the police pickefl up three unconscious men who were badly frozen but will recover. Ware Travels Southeast. The cold wave, traveling on a 15-mile wind, came from the Dakotas and is Journeying in - a southeasterly direc tion. Wisconsin and Iowa received the full benefit of the windy blasts. At Superior, Wis., it was 31 degrees below zero at 9 A. M. La Crosse reported 29 below, Oshkosh 24 below and St. Paul 26 below. In Iowa temperatures ranged from 4 to 24 below. Nebraska also was exceedingly cold, averaging IS to 31 below. All the Middle Western territory con tinues cold tonight, and no relief is promised for several days. White River la SO Below. White River led the list of cold places with SO below, but the temperature for this district .was not nearly, so. severe as much higher temperatures in other places unaccustomed to unusual cold. Farmers hail the intense cold as a blessing that will be more apparent next Summer in bountiful crops, free from many pests. They say the extreme temperatures will de stroy millions of colonies of chinch bugs and other destructive Insects and that freezing, in connection with the numerous heavy snows, will put the soil in excellent condition. Temperatures Vary In Chicago. The cold wave displayed many vagar ies in and around Chicago. In the crowded loop district, where thousands of furnaces were BOing night and day. the temperature was 8 below. A mile distant it was 12 below and four miles distant it was 18 and 20 below. Down- state points also report 20 and 22 below. The East will begin to feel the force of the cold wave by morning and Gov- (Concluded on Pace 2.) IN ACTION. QOOO TO SWA VA IA-C iAfjEr TjG OC- TO CO7Af7"r&- " r BROKEN AGO PfcollE ARTICLE NOT COOK'S, SAYS GIRL 'PEARY'S STOHV" WRITTEN BY ANOTHER, IS TESTIMONY. Magazine Editor Made Discredited Evplorer's Report Appear as Confession, Declares Witness. WASHINGTON-, Jan. 28. Miss Lil lian E. Kiel, of New Tork, who said she was - a stenographer employed by a magazine that printed"" articles under the names of Rear-Admiral Peary and Dr. Cook, on their return from the Arctic regions, testified tonight before the House committee on education that neither of these articles was written In its entirety by the explorer whosename it bore, but that both wero rearranged in the magazino office. Miss Kiel was one of a number witnesses who testified in connection with the ' resolution of R epresentative Smith, of New Tork, designed to es tablish the priority of the discovery c the North Pole. Sno said she took the dictation of Dr. Cook's statement a hotel in Newbcrg, N. V.; that h dictated his story of the Polar' ex ploration, sent it to New Tork to th magazine, and that after he received proofs and had "O. K'd" them, a sub editor of the magazine clipped the proofs, eliminated certain paragraph and inserted others, the result being, she said, that the story indicated a confession of failure. She said that Admiral Peary's story was first obtained by questions asked by a reporter and that a woman tran scribed the notes and wrote the story, The Admiral, she said, had a contrac or an agreement of some sort under which the magazine was not to prln anything detrimental to him. "In other words." asked Rcpresenta- tive Towne. of Iowa, "this particular statement called Dr. Cook's story is partly his statement and partly a man ufactured story that was Inserted?" "Tes. sir." "The magazine did not find Dr. Cook's story sufficiently exciting and sensa tional to suit them?" "They were under contract with Mr. Peary not to print what would be dot rlmental to Mr. Peary," Miss Kiel replied. HUSBAND DONATES CASH John Palumera to Furnish Money to Bring Back Alleged Slayer. SALEM, Or., Jan. 28. (Special.) Be cause the state appropriation for the return of prisoners has been exhausted, John Palamera today agreed to advance to the commonwealth the necessary ex pense money for returning his wife's alleged murderer. Dominla Pachena, from Stockton, Cal. . , Governor Withycombe today Issued requisition on the California state ex ecutive for the extradition of Pachena. Mrs. Palamera was terribly mutilated by her murderer. According to a state ment before she died, she was attacked because she refused to run away wltA Pachena. SWISS PETROLEUM IS LOW Order Is Placed With New Orleans Firm for Supply. BERNE. Switzerland, via Paris. Jan, 28. A scarcity of petroleum is being experienced in Switzerland, owing to suspension of importations from Russia and Roumania. Supplies have run so low that the government has been forced to arrange importations from America. It has Just bought a large amount of pe troleum at New Orleans. Thursdays War Moves ALTHOUGH no big battles, as bat tles go in this war, have been fought of late,' there have been en gagements In all the arenas, from Asiatic Turkey to the English Channel, in which the losses have been greater in the aggregate than in many great bat tles of history. According to the French reports the attacks the Germans delivered against the allied lines in Flanders, France and Alsace on the first three days of the week cost them 20,000 nien, to which must be added the losses suffered in their repeated attacks on the Russian intrenchments in Central Poland. All of eht attacks in the west, the announcements of the allies say, met with failure except near Ciaonne, where it is admitted the French lost 800 men, largely because of the collapse of an old quarry. The Germans, on the other hand, as sert that they inflicted a severe Joss on the French at Craonne and that they repulsed all the French attacks In the Vosges and Upper Alsace with heavy losses. In the east, in the centers in the Car pathians, where the Austro-Germans have brought up new armies to oppose the Russian Invasion of Hungary, ac cording to announcements In Vienna, they have recaptured some of the passes the Russians were holding In strength. While naturally the Russians, like the other belligerents, do not relish giving up any ground gained, they declare this Is compensated by the fact that their aggressiveness has compelled the Austro-Germans to postpone the expedi tion they were preparing with the ob ject of crushing Serbia. Rucsia hopes Roumania, with her financial position guaranteed by the recent London loan of $25,000,000. soon will send her army Into the field and form the missing link between Russia and Serbia. The Turks, by bringing up their Fifth Army Corps, have been able to re sume the offensive in ihe Caucasus, but, a Russian report says, they have suf fered another setback. TRICE FIVE CENTS. HOUSE CAREFUL 10 ? DEFEND PRIMARY Simple Change Stirs : All to Oratory. PETITION -HAWKER AIMED AT Representative Olson Would Substitute Fee Method. "PEOPLE'S LAW," IS REPLY llcsult It That Meritorious Measure Is Sent Bark for Amendment. Court Revision Bill and Forestry Act Magnetic. nv noxALn a. calivkht. STATU CAPITOL, Salmi, Or., Jan. !$. (Stan Correspondence.) It re freshing to observe In the Housa today the oratorical yet studious rare with which some of tho members defended the direct primary. One might hsvo thought that there was some pernicious influence at work to destroy the power of tho people, and soma of the orators even said as much. Tet tho discussion ws ll over a simple little method of reducing the cost of state elections and dispensing with one of the most pronounced abuses of the election laws. It was Representative Olson's bill. and It proposed to put out of business the down-at-the-heel professional peti tion hawker, whose services, almost In vaiiably. It is necessary for the honest applicant for elective oltlre to solicit and pay for. Fee Mel bed -ropaae4. The bill proposed that Instead of the purchased and meaningless petition pa. titlon which the primary candidate mutt have signed before lie can get his nam On the ballot the practical equivalent of what the petition hawker's charge would be should be paid Into the public treasury, the fee being wholly In lieu of and superseding the petition meth od. The bill also required an aspirant for nomination to bind himself to sup port the successful nominee, and It de feated not to accept the nomlnatioa of any other party, although It did not deprive him of the privilege of running as an independent. As to final disposition, the bill got back to the committee for amendment, but the roll, was railed on It and In the absence of a number of members It had about 30 noes recorded against it. The result, however, was not announced. MIm Tonne's Arcumrnt Real." During the lebate the tender solici tations for the fate of the prlmnry somewhat questionably held by Repre sentative Eaton, were voiced In pas. sionate terms. It was un-American, unprincipled and a few other "uns.M Some of the Democrats, who profit politically by the primary defections in the dominant party, also were aroused to protect the "people's law." and the discussion even carried off Ills feet the usually sound-thinking Repre sentative Frank Davey. Practically the only real argument offered against the bill was presented by Miss Towne. who referred to an opinion by tha Supreme Court of Illinois, holding a similar fee law un constitutional. The others indulged in platitudes and direful predictions as to the awful political at that would attend any legislator who tampered with one of the "people's laws." Diver's Antuant Musty. Representative Davey brought forth that musty old argument that amend ments of laws adopted by the people (tJoncluriVd on Page T.) LATE REALTY TRASS ACTIOS! TASGIBI.E EVIDESCfS OF mount:. An important realty transac tion has just been consummated whereby Henry I Corbett, Elli ott R. Corbett and Hamilton F. Corbett become owners of IS by 100 feet located on the north sldo of Morrison street, between Sev enteenth and Chapman streets, at a valuation of approximately 136.000. Bessie B. Hutchinson and K. X. Hutchinson, former owners, accepted as 120,000 of the payment a lot located on the west side of Third street, be tween Columbia and Clay streets, a balance of I.000 was paid In cash. The Morrison-street property, which adjoins an Improved 80 by 100 feet recently acquired by the Corbett estate, Vs covered with a two-story store and flat build ing. The Third-street property Is Improved with a two-story frame building occupied by stores J and a rooming-house. Another deal involves the sale J of the four-story brick ware- house at the northwet corner of J F.ast Sixth and Ash streets by Llpmiiii, Wolfe A o., to the t curlty Savings Trust Company at a valuation of 180.000. Llp man, Wolfu Co. will con tinue to occupy the warehouse until It acquires a suitable loca tion further out on the Kent Side.