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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (April 13, 1915)
J M. II VOL. L,V. NO. 16,968. PORTLAND, OREGON. TUESDAY, APRIL 13, 1915. PRICE FIVE CENTS. WASHINGTON BANK ACCUSES OFFICIALS M'Adoo and Williams Are Defendants. CONSPIRACY CHARGE IS MADE Injunction Against Secretary and Controller Granted. . BOND INTEREST HELD UP financial House Alleges That At tempt to Wreck Bank Is Made Following Threats Complaint Alleges McAdoo ' Cursed. WASHINGTON", April 12. Secretary McAdoo, of the Treasury, and John Skelton Williams, Controller of the Currency, were made defendants today in proceedings begun in the District of Columbia Supreme Court by tbe Riggs National Bank, of Washington, L. C. which alleges that these officials have combined and conspired to wreck that institution. Temporary and permanent injunc tions to halt the alleged conspiracy and to prevent the Controller from making what the bank charges are unlawful demands for special reports, are sought from the court. t Injunction Ie Granted. One portion of the prayer seeks to restrain John Burke, Treasurer of the United States, from payment into the Treasury of $5000, declared to be due to the bank as interest on $1,000,000 of United States bonds deposited with the Controller against its note circulation. This interest was withheld to cover penalties of $100 a. day for failure of the bank to make certain reports. Once paid into the Treasury, only an act of Congress could get the $5000 out, and Justice McCoy late today granted a tern porary injunction on this phase of the case. The justice then set April IS as the day for answer by the defendants to show cause why permanent injunctions should, not be issued. The bank's bill of complaint covers IS typewritten pages and contains 37 specific allegations designed to show that the Controller has adopted unusual and legally questionable tactics in dealing with the institution. It recites that evidence of an unusual desire for information concerning tbe bank was shown by Mr. Williams shortly after he assumed the office of Controller more than a year ago. Bud has contin ued ever since. Threat Is Alleged. Prior to that time, in December, 1913, it Fays, Mr. McAdoo charged officers of the bank with responsibility for publi cation regarding the official conduct of the defendant, Williams, as Assist ant Secretary of the Treasury. When this charge was denied by the officials. thebill asserts. Secretary Mc Adoo cursed Milton E. Ailes, a vice president of the bank, and said to C. C. Glover, its president: "Mr. Glover, you know what this means to the Riggs National Bank." "Meaning thereby," the bill adds. "that from that time on the power of the Treasury Department would be ag. gressivcly used for the ruination and destruction of the plaintiff bank In order to satisfy the personal malice and ill will of said defendants, Will lams and McAdoo, and shortly after ward the said defendants, Williams and McAdoo. began a series of persecutions against the plaintiff bank for the pur pose of impairing or destroying its said business, thereby prostituting tholr high offices and violating their oaths in order to vent their personal vindictiveness against the officers of the plaintiff bank." Depolrs Are Withdrawn. A few months later, the plaintiff avers, the bank was notified by C. S. Hamlin, now Governor of the Federal Reserve Bank, but then Assistant Sec retary of the Treasury in charge of the fiscal bureau, that Secretary Mc Adoo purposed to exclude the Riggs bank from a share of deposits to cover the District of Columbia tax withdraw als, which deposits by customs are divided among the National banks of the District Mr. McAdoo later wrote to Mr. Glo ver, the complaint states, declining to explain why such action should be tak en and announcing at the same time his intention of withdrawing all Gov ernment funds from that bank. Subsequently, it is alleged. Govern ment deposits amounting to more than $1,206,000 were withdrawn from the bank. Including Panama Canal deposits amounting at one time to $1,158,479. Attempt Deliberate. la rharare. These withdrawals were brought about by Secretary McAdoo, it is charged, at a time when the European war and the business depression in the United States had made banks husband their resources and "in a deliberate attempt to wreck the plaintiff bank, in the execution of the conspiracy exist ing between him und the defendant Williams for that purpose." Further complaint is made that Mr. Williams, as treasurer of the Red Cross Society, had the funds it kept on de posit with the Riggs bank removed to other institutions. For almost a year, the bill avers, the Controller has bombarded the Riggs National with demands for special re- tConcluded oa Face 2.) RUSSIANS REGARD WAR. AS BLESSING PROSPERITY OF PEASANTS IS ' GREATER THAN" EVER. Sayings in Month Eqnal Yearly Average Before Hostilities, Says Finance Minister. PETROGRAD, via London, April II. The opinion was expressed today by Pierre L. Bark, Russian Minister of Finance, that, economically considered. the war has been a blessing to the people of this country. Discussing the financial and social aspects of the conflict in an interview with the Associated Press, M. Bark said: 'Notwithstanding the depressing and paralyzing effect of the war, the Bus slan peasant class is more prosperous than at any previous time in the his tory of the country. By virtue of the allowance made by the government to the families of soldiers, which exceeds the earning power of the soldiers, the total income of these families is greater than in times of peace." "What about vodka?" was asked of the Minister. "It is the prohibition of the Bale of vodka which is primarily responsible for the ameliorated condition of the peasant," be responded. "The sieve through which all the available earn ings formerly disappeared has now been closed and the money Is spent for present necessities or saved for future wants. "Before the war the average yearly savings deposited amounted to from 30,000,000 to 40,000,000 roubles ($13, 000,000 to $-0,000,000), while in January alone about 60.000.000 roubles ($30, 000,000) was deposited." DIVERS TO SEEK F-4 TODAY Cruiser Maryland Reaches Honolulu With Equipment. HONOLULU. T. H., April 12. Work men were busy this afternoon trans ferring the gear and other apparatus brought by the cruiser Maryland to day to the place outside the harbor where the missing submarine F-4 is believed to be submerged. The actual diving work, by which it is expected the submarine will be brought to the surface, will begin tomorrow. Immediately after the arrival of the cruiser Maryland, which docked at 8:80 A. M., arrangements were begun for the transfer of the equipment to the scene of the disaster. Lines which have been attached to the object on the ocean floor, believed to be the F-4, still are holding fast to it. AIRMAN KILLED BY FALL Experiment With Own Invention Is Fatal to C. M. Peoli. WASHINGTON. April 12. Cecil Mal colm Peoli. an aviator, was killed at College Park, Md., near here, today. while making a test flight in an aero plane of his own invention and in which he had planned flights from Washington to New York and from New York to St Louis. The machine fell 300 feet .and Peoli's skull was fractured. The cause of the accident has not been determined. reoli was the first man to fly acrosa the Andes Mountains in South America. The wrecked machine is said to have been the largest in this country. The dead aviator was years old and came here from Los Angccls, where his mother lives. 5 DIVORCED IN 35 MINUTES Judge Gantenbcin Sets Record 'When Defendants Fall to Appear. Five divorces in 33 minutes was the record set by Circuit Judge Gantenbein yesterday morning. Each one of the decrees was given by default, the de fendant failing to appear for trial in any one of the cases. Anna Lange Lindemann was divorced from August Lindemann on grounds of desertion; Elmer Howard was Sep arated from Anna Howard on the same grounds; Maud Burdick received a divorce from Asa C. Burdick on charges of cruelty. Mary Ann Mayer- hofer alleged that Frank Mayerhofer deserted her, and Myrtle Fisher made allegations of cruelty against Roy Fisher. REPLY TO BERLIN DRAFTED President and Secretary of State Considering Answer to Protest. WASHINGTON. April 12. President Wilson, and Secretary Bryan had under consideration tonight a draft of a reply to be made to the memorandum of Count -von Bernstorff, the German Ambassador, relative to the question of preventing shipments of arms to the allies unless foodstuffs were permitted to reach Germany's civilian population. We have the whole subject under consideration and I am not prepared to discuss it." was all Secretary Bryan would say. BELGIUM TO HEAR CONCERT German Orchestra to Tour Con- quered Territory Soon. BERLIN, via wireless to SayTilie, N. T., April 12. The famous Philharmonic Orchestra of Berlin is preparing to make a concert tour of Belgium early in May. according to announcement today by the Overseas News Agency. Felix Weingarten will conduct and the musicians will play twice in Brussels. HUERTA WILL STjjV. IN UNITED. STATES Exiled Ex-President of Mexico Arrives. MOTIVES ARE KEPT SECRET General Takes Oath He Will Not Visit His Native Land. LENGTH OF" STAY PROBLEM Former Ruler Savs Trio From Spain Is on Pleasure and Busi ness Interview Is to Be Granted Xext Friday. . NEW YORK, April 12. General Vic toriano Huerta, former provisional nroiirlont nf Mexico, wno for nearly a year has been an exne in Spain, ar rived here today on the SDanish steam- shin Antonio Lopez from Cadiz. General Huerta was passed by United States immigration officials as a tran sit alien, after he had declared under oath that he would do nothing that would in any way involve the neu trality ,of the United States. Mexico Not to Be Vlwited, The ex-president said that he had come to the United States partly for pleasure and partly to attend to some personal business connected with family matters. He swore that he had no intention of going to Mexico or to Cuba. The length of his stay here, he said, was inde8nite, but he would re turn- to Spain, possibly sailing from New York early in May. General Huerta was met at quaran tine by representatives of the press and by an array of photographers. While submitting to being photo graphed in every desired pose, he de clined to say anything as to his mis sion agreeing ' to meet newspapermen at his hotel here nest Friday morning. Interviews to Be Signed. Regarding this appointment he said: T understand that my presence in this country creates in you the desire to know my views about the affairs of Mexico and I promise to satisry your wishes to the best of my ability. I beg you, gentlemen, to remember that no interview with me should be con sidered as authentic unless it carries my personal signature." General Huerta was accompanied by General Jose C. Delgardo, who has been his private secretary for 10 years, and by Abraham Ratner, a personal friend of the general, who declared himself as an American citizen, giving his residence as New York. No Mexicans Greet Him. There were no Mexicans to meet Gen- eral Huerta at quarantine. On the pier, however, were gathered a number of men who have been identified with Mexican affairs, among them being General Quiros, General Orosquito and Senor Serrada. These men greeted Gen eral Huerta affectionately, embracing 'Concluded on Page 5.) GIVE ll index of today-shews L77T a"y v The Weather. J Y lO i -o-f Maximum temperature, 6J.i de.- Jnimum. 00.4 degrees. TODAY'S Show, southwesterly winds. War. Dardanelles resistance la surprise for allied naval men. Page 2. Germany's army in west said to be strangely inactive. Page 2. London amazed by courage of New York Stock Exchange In abolishing minimum prices. Page 2. Russian peasants savings of one month - equal t o yearly average before war. Page 1. foreign. i American liner Minnesota, of Seattle, goes on rocks of Japanese coast. Page National. Coast cities "protest against railroads' an nounced intent to reduce rates to dciw haul' territory. Page 1. Secretary McAdoo and Controller Williams accused of conspiracy to wreck bank. Page L Alaskan railwcv system will develop new natural mint. Page 7. Domestic. . Western Union president admits telegraph ers are underpaid. Page 1. Donn M. Roberts, Mayor of Terre Haute, sentenced to six years in prison. Page 3. General Huerta lands in United States. Page 1. Pacific Northwest. Alaska natives see white man on lee floe who may be one of Steiansson party. Pare 3. Ex-Governor West on stand in damage suit at Baker. Page 6. Sports. Army of 20,000 fans ready for fray today, Page 6. Mathewson Dicks Giants and Braves to furnish real race in National League. Page 0. Commercial and Marine. Coast oats markets firmer because of Australian buying. Page 15. Buying of new crop for export strengthens Chicago market. Page lo. Stocks are irregular, with tendency toward reaction. Page 15. Brisk demand for cattle at North Portland stockyards. Page 15. Portland and Vicinity, Committee on by-laws for new Chamber of Commerce flies report. Page lb. American married men to be preferred If bond issue carries. Page 11. Mass meeting called to plan most brilliant Industrial, fraternal a"nd military parade of Rose Festival. Page 11. Pretty Ada Tawber leaves trail of checks and vonishea. Page 15. Dr. Herbert W. Hegcle arrested on charges made by young women. Page T. Weather report, data and forecast. Page In. RIFLE REPELS AIR ATTACK Ship Captain With Ordinary Weapon Repulses German Hydroplane. LONDON. April 12. "Armed with a rifle. Captain Sharp, of the British steamer Scrula, which has arrived here, successfully repulsed an attack made upon his steamer by a large German hydroplane and a small aeroplane off the Noordhinder lightship," says Reu- ter's Amsterdam correspondent. "The aeroplane first approached the ship, dropping bombs which fell into the sea. As it returned to the attack, Captain Sharp fired upoftit with a rifle, hitting the machine several times and damaging one of its wings. Then the hydroplane took up the attack, but it was also driven off." JAPAN EXTENDING TRADE Effort Being Made to Take German Business in South Seas. SYDNEY, X. S. W., April 13 Japan is making marked efforts to capture the South Sea and Australasian trade during the suspension of German busi ness intercourse. An indication of this is the proposal to open a direct steamer service between Japan and New Zea land, and the fact that more steamers are loading in Japan with goods for the commonwealth than ever before. Many Japanese commercial men are arriving in Australia. US THE ROADS; GIVE HIM EMPLOYMENT T FIGHT BY MONTANA Railway-Spokane Pact Said to Be Made. BACK-HAUL RATES OPPOSED Railroads Insist They Will Put Through New Schedule. MIDDLE WEST WITH COAST Plan Is to Cut Tarifrs to Back-Haul Territory J. T. Teal Argues for Retention of Terminal Rates, Showing Water Competition. OREGONIAN NEWS BUREAU, Wash ington, April 12. At today's hearing before the Interstate Commerce Com mission on the Pacific Coast back-haul case, a new alignment of lorces was apparent, Portland and the other Coast terminals being arrayed with Montana against Spokane and the transconti nental railroads. Ex-Senator Dixon, of Montana, charged directly that the railroads and Spokane jobbers had conspired to carve out a large distributing territory for Spokane, and in this he was supported by J. N. Teal, of Portland, and from this point Portland and Montana joined in attacking the back-haul rates which the railroads propose to put into effect Mr. Teal charged that the rates pro posed, if approved by the Commission, would constitute rank discrimination against Portland and other Coast ter minal points on the Pacific Coast, and Mr. Dixon, protesting against the higher rates proposed to bo charged against Montana points than are pro posed for Spokane, for a longer haul, contended that Spokane Jobbers, under the rates suggested, would destroy and monopolize the Montana jobbing trade. Mr. Teal in his argument upheld also this contention by Mr. Dixon. Condition Held Artificial. Mr. Teal submitted that the rates which are proposed would have the ef fect of moving the Pacific Coast prac tically to Spokane, thus neutralizing the benefits to which terminal points are entitled by reason of water com petition by way of the Panama Canal. He protested against the attempt of the railroads to create artificial condi tions and alleged that if the Commis sion approves the rates submitted by the carriers it will open Pandora's box. He maintained, it is the province of the Commission o"ly to lay down prin ciples to govern rate making, that if in this instance it undertakes to make speciflc rates it must enter upon the making of rates for all points over the country. Back-haul rates which have been submitted by carriers, he asserted, were not in conformity with the de cision of the Commission in the Spo kane case, but were in effect a dis tortion of the principles enumerated in that decision. t C. P. Donnelly, , representing the Northern Pacific, denied that there had (Concluded on Pace 2.1 0 LAND AIDED MANY ARE KILLED IN FISHING TOWN TERRIFIC EXPLOSION WRECKS LERWICK, SCOTLAND. Mysterious Crash at Night Demol ishes Street in Coast Point on Shetland Islands. ABERDEEN, Scotland, April 13, 4:15 A. M. The Free Frees publishes the following telegram from Lerwick: "A terrjfio explosion has occurred. Harbor street was wrecked and many lives were lost." No details are obtainable as yet. Lerwick is on the east coast of the mainland island of tiie Shetland group, off the northeast coast of Scotland. The town is an important center of the herring industry and has a popula tion of probably 6000 inhabitants. The town hall Is regarded as one of the finest buildings of its kind in towns of similar size. EXPLOSION IS MYSTERIOUS Packer Denies Supplying Allies Be fore Plant Is Damaged. KANSAS CITY, April 12. The police of Kansas City, Kan., were busy today trying to clear up the mysterious ex plosion that wrecked the cooler build ing of- the Cudahy Pack-nig Company last night, causing a loss of $75,000. James Hale, superintendent of the plant, denied stories circulated in tbe packing district that the Cudahy com pany had been shipping much meat to the European allies. He connected the explosion with two fires that have dam aged the plant in the last three months, both believed to have been of incen diary origin. ANOTHER SAWMILL TO QPEN Columbia River Interstate Bridge Work Brings Big Order. VANCOUVER, Wash., April 12. (Spe cial.) The DuBois Lumber Company expects to start its sawmill in this city Monday, April 19, for a long run. A large order for cutting lumber for the Columbia River Interstate bridge lias be,cn secured and other orders have been arriving. The mill has been closed since last Fall and the stock in the yards needs replenishing. The Rapacity of the mill is about 60,000 feet a day. This la one of the indications that bonesa is improv ing In this section 01 the state. GIRLS HELDF0R PERJURY Sisters of Rae Tamer, Breach of Promise Plaintiff, Indicted. NEW YORK. April 12. Dora and Rose Tanzcr, sisters of Rae Tanzer, were Indicted today for perjury by the Federal grand jury, which has been in vestigating the charge that Rae Tanzer used the mails in an attempt to defraud James W. Osborne, whom she sued for o0,000, charging breach of promise. The indictment charges that Dora and Rose Tanzer committed perjury by identifying James W. Osborne as the man who had called upon their sister at the Tanzer home in the Uronx. Monday's War Moves ft ES EPARGES, occupied on April 9 Lr by the French after a, series o: desperate engagements costing count' less lives, has again come under tho fire of the German guns. It was around this point that the Germans, according to a French official report, lost 30,000 men in two months' fighting. It is here that General J off re, the French commander, is bringing his strength to bear on the German wedge to force it out of the allies' side, so that the allied line that stretches in front of the great German fortress of Mctz may be straightened. After a lull of two days the Germans prepared for their counter-attack on Les Eparges by a severe bombardment and heavy rifle fire; then In the early hours of the morning they advanced on the position which the French had made even stronger than when the Germans held it, but were forced to re tire. The extent of this offensive is not known, but It has been reported that the Germans look upon this position, which commands the plain of Woevre, as one of great importance, and further attacks may be looked for. Otherwise the situation in the west ern war zone Is of comparatively little interest, owing to the general calm that prevails. In the cast, although the Russians have occupied the principal positions in tho western sections of the Carpa thians, there is one height, known as height 992, which they have not been able to master. Nevertheless they are reported to be moving down the western slope and in a fair 'way to make an advance into Hungary. Reports persist of heavy firing in the North Sea, but no explanation, either officially or unofficially, is forth coming. These rumors date bark as far as April 7 and the latest, within 24 hours, reported firing off Scarborough, which seemed to indicate a naval en gagement, but the British Admiralty has vouchsafed no information one way or another. The British steamer Wayfarer, a 6000-ton vessel, which had been in the Liverpool-Galveston trado for 10 years and had recently been requisitioned by the British government, h:s been towed Into Queenstown and benched with a great lent in her side caused by a German torpedo. One hundred and fifty men from the Wayfarer have been landed at Falmouth. KEYIN UNDERPAID, ADMITS EMPLOYER Western Union Head Fa vors Higher Wage. ORGANIZATION ALSO APPROVED 'Responsible" One Is Demand, Though, of President. HIS DOOR OPEN TO MEN Telegraphers' Leader Before Indus trial Commission Shjs Ho "'"I Other Officials Will Resign if V'nion Is Recognised. CHICAGO. April 12. President New comb Carlton, of the Western Union Telegraph Company, and S. J. Konen kamp, president of tho Commercial Telegraphers' Union of America, testi fied from their respective viewpoints before the United States Commission on Industrial Relations today as to wattes and working conditions of the com mercial telegraphers. Mr. Carlton caused a mild sensation when, replying to a question from Frank P. Walsh, chairman of the Com mission, as to whether telegraphers were adequately compensated, replied: "I believe that the telegraphers are underpaid." Commissioner I Surprlwd. "Overpaid:" exclaimed Mr.. Walsh. "No. underpaid. 1 think they ought to make more money than they do. So far as I can ascertain, wages have in creased SO per ccnt in ilio Uft ten years. Ten years ago a Morse teleg rapher received 18; It Is now 23. It was J13.50 for women and now it Is 18. My own view is that a f irst-cla.-s telegrapher should be able to earn at least 5 a. day of nine hours. Sumo ot our employes, under the so-allcd premium plan, are making closo to that." The witness said his rompany has one of the best pension and relief organisa tions in the country, and It costs the men nothing. Half a million dollars was expended or. it last year, he said. Reponalble" Union Favored. The witness' opposition to tlio or ganization headed by Mr. Konenltamp. who followed him on the stand, was made plain In valrous utterances. Mr. Carlton admitted the principle of collective bargaining, and that a "responsible or ganization" of Western Union teleg raphers could be dcult with. The men should havo some organization to protect their interests, he said with emphasis. We are subject to the control of the Interstate Commerce Commission." he said. "They absolutely fix not only our practices but our rates. I believe therefore that the commission should k -iven nn"iclent power to see thai fair wages are paid and that fair workin3 conditions arc provided. I think tho corporation, tho public and the employes are entitled to the pro tection of some Federal commission." llUmlutli Are Admitted. T,ho witness said that in the five years he has been with tho company there haa been no union of telegrapher which he considered qualified to repre sent them. His policy with tho men. he said, was to allow an open door to him for the appeal of all grievances. He thought that he had acted favorably on about 60 per cent of applications for reinstatement. Telegraphers have been dismissed from the company for activ ity in union affairs, ho admitted. "Our oppositions to the union are well understood," said he. He said that special agi-nts were employed to keep the company Informed, but denied that the "spotters," as Mr. Konenkamp des ignated them, wero permitted to use questionable tactics in obtaining infor mation. He had little knowledge ot how they work, he said. Mr. Walsh mentioned instances whero It had been alleged that larceny was resorted to by the special agents in obtaining corre spondence and names belonging to tho union. Union Charge (slavery. "I want to have It understood that w will fight. I "nave no hesitation in letting it be known the method and means by which wo will fight, but there arc some things that wo won't do, not if I know it," answered Mr. Carlton. Mr. Konenkamp In his testimony re ferred to some of the methods of the Western Union as "criminal" and the condition of the operators as "slavery." He estimated the number of commer cial telegraphers employed by thai Western Union and the Postal Tele graph Company at 20,000. His union, he said, has agreements with the Can adian Pacific, tho International News Service and tho United Treas. These, ho said, recognized tho principle of collective bargaining and adjustment of grievances. He declared that wages were lower now than they were ifl years ago. This was in Teply to n assertion by Mr. Carlton that an oper ator who did as much work now n they did 40 years ago would earn about 1200 a month. Government Protection l if.ir.1. Mr. Konenkamn !d Uiaf 'n tnr. larger offices tiie men work nine :-.ow s and women, by a recent order. c"!v eisiit. Tli.i tendency, he a.d. wa; to lengthn the bourn. The premium vc. torn or earning had been r- aled dow n. I Concluded oo !' M '