Morning Oregonian., July 16, 1915, Page 2, Image 2

!
f
8
S
I
t
m
R
S
i
St
f
f)
?
t
j
ENTIRE SEA ISSUE
MAY BE REOPENED
Von Bernstorff Is Confident
Berlin Would Negotiate
With Britain.
MEDIATION IS WELCOME
Acceptance by Great Britain of
Services of United States Would
Be Necessary Submarine
Policy Is Softened.
"WASHINGTON, July 15. Count Von
BernstortT, German Ambassador, will
present to Secretary Lansing tomor
row the view that Germany's reply to
the American note on submarine war
fare was intended to nave the way for
negotiations on the part of the United
States with Great Britain, as well as
Germany, to adjust questions that have
arisen over contraband and submarine
warfare affecting the rights of neutrals.
The German Ambassador for several
days has strongly desired to see Secre
tary Lansing, but the latter expressed
a preference not to discuss the German
reply- until he had examined it care
fully. Mr. Lansing met the Ambas
sador at r- club today and set tomor
row as the date for the conference.
Knire Question May Be Opened.
Count Von Bernstorff is confident that
his" government emphasized in the last
note its willingness to work "hand in
hand" with the American Government
for the establishment of the freedom
of the seas with the express purpose
of entering into negotiations now on
the entire question of maritime war
fare. He sent the suggestion through
Dr. Anton Meyer-Gerhard that the note
Khould contain such an intimation.
Having followed his suggestions, the
Ambassador is sure his government
will accept a tender of good offices for
the mediation of the dispute.
This would involve an acceptance by
Great Britain of the services of the
United States as mediator to bring
about the termination of the British
order-in-council. as well as Germany's
submarine attacks upon merchantmen.
Cerman Practice Modified.
Officials of the American Govern
ment
the last few davs have heard
the reports concerning possible media
tion of the questions, but always have
indicated that negotiations along such
lines could be begun only if there were
assurances that in the meantime Ger
man submarine commanders would be
guided by the principles for which the
United States is contending that
Americans on belligerent ships which
are unarmed and do not resist capture
be not endangered. In official German
quarters here, however, emphasis 1:
placed on the fact that Germany In
the last month has not torpedoed even
enemy ships without warning, and that
this practice probably will be con
tinued. In support of this confidence, Ger
man officials drew attention today to
a statement given out by the Overseas
News Agency, an official agency,
Berlin, yesterday. They declared the
statement must have had the sanction
of the German government. It re
cited the number of British, Russian,
French and Belgian ships sunk during
June.
Submarine! Give Warning.
"The loss of human life was remark
ably small, the submarines using every
precaution and giving ample warning
and time for crews to leave their ships.
if no resistance -were attempted." it
added.
Officials here who read the state
ment admitted that if this practice
were continued the principles for which
the United States asked assurances in
Its note of June 9 weuld be complied
with to a large extent.
Treatment which the American Gov
ernment will give to the Lusitania case
in its next note is causing concern, even
in German quarters. It is not believed
the German Ambassador will discuss
this phase with Secretary Lansing
tomorrow, but he is said to believe
that his government would not be op
posed to further negotiations over the
sinking of the Lusitania.
BIG TASK UP TO BANKS
AMERICA SOO.V TO BE CALLED ON
TO FINANCE HUGE TRADE.
Commerce Bureau Chief Urges Lending
to Cuotomer Nations Rather
Thnn to Belligerents.
WHITE SULPHUR SPRINGS. W. Va.,
July 15. Bankers of, the United States
were warned today that they must
prepare to handle the financial end of
a wide American foreign trade. The
warning was given by Dr. E. E. Pratt.
chief of the bureau of foreign and do
mestic commerce, in a speech before
the West Virginia Bankers' Associa
tion convention here. The develop
ment of a. large export business is
now under way. Dr. Pratt said, and
manufacturers and merchants will call
upon the bank:; for extensive services
in handling the cash and credit ex
port transactions.
IJr. Pratt said American banks are
now establishing branches in South
America and other parts of the world.
to handle American business, and that
the European war has resulted in the
extensive substitution of American
dollar exchange for English pounds
sterling exchange in international
transactions. Ho estimated that the
total loans of American money and
credit to Europe so far . during the
war totaled $500,000,000 and suggested
that the putting of large sums of
American money in Europe was an
economic fallacy.
In lending money to European na -
liuiib. ne aiiiu. we are enaoiing iflem
merely iu Keep up ineir wasteiui war-
fare, and if we continue to lend money
io .mi)s iur reconstruction purposes
after the war is over, we will simply
be building up our most active com
petitors. . If. however, this money is
lent to other countries of the world,
countries which are not our competi
tors, but which are customers, and
also the customers of European na
tions, we will be -building up our cus
tomers, we will be strengthening them
' and we will be strengthening the ties
between them and ourselves."
West Linn Orders Kail Repair.
OREGON CITY, Or., July 15. (Spe
cial.) The "Safety First" principle,
emphasized in tne west Linn paper
mills, has spread to the Council of
that town, judging from the record of
the meeting last night. The Willam
ette Falls line of the Southern Pacific
must repair several crossings, signals
must "be installed at every crossing and
a swamp near the northern boundary
of the town must be drained, the Coun
cil decided. Piling at the river end of
a. street near Moehnkes sawmill was
considered dangerous and was ordered
taken out.
THREE DEFENDANTS IN THE UNITED
-si y
MORE LETTERS READ
Government Aims- Now at
Head of Cashier Company.
BANKER RELATES SCHEME
"Message' Offering Place on Ad
visory Board Kcpprted by Agent
and Warning- Given of
Enemies Opposing Sales.
(Continued From First Page.)
sued and three allowable applications
on same held by us In patent office, as
signments on record. Have several
other assigned applications pending for
computing machine, change-maker and
Icurrency - paving attachments. Our stock.
is selling at X30 per share. If inter
ested, better see Representatives Hop
son and Hunter at Montague Imme
diately, as deals pending may over
subscribe company stock at any mo
ment." "FRANK MENEFEE."
Letter Mentions False Messaice.
Then the United States Attorney, in
troduced a long letter written to Mr.
Menefee by Hopson from Fort Jones.
Cal., on June 13. 1912. Here are some
extracts from the letter:
"My Dear Mr. Menefee: Hope to pull
Dr. Milliken across the plate tomor
row for $5000 worth of our stock at
(20.53 per share. It will make the total
sale $5185.50. The reason for this odd
amount is this:
"I am selling half a block at $20.
and he is to pay Interest on it since it
was first sold, which in this case was
February 12. He must take the entire
block of $5000 worth in order to get
the syndicate agreement and a place
on the board of advisors.
"Now he can buy 40o shares at 15
and intended doing so until 1 sprung
this syndicate agreement and telegram
from vou to the effect that you had
looked him up and that I might offer
him place on the advisory board. Of
course, vou never saw that wire, but
having received telegram blanks. It
wasn't hard to get it.
"The Doctor is another Campbell In
that he likes the honor and incidentally
the long end of the deal. He is presi
dent of the Shasta Banking Company
here and an A-l man for us. He
worried over whether or not he will
have jurisdiction over enough of the
surrounding territory. I have assured
him on that score.
"Now he Is not in shape to take
ud the entire block himself right at
the present moment as his money is
out on loans and he is getting lour
of his friends to go in with him. 1
told him. though, that the stock will
be all issued to him personally and that
any arrangement he might have with
his friends would have to be between
him and them.
Had to do that, because I tola
him that in order to get the stock at
the special price and under the syndi
cate agreement, the company insisted
that he must take at least $5000
worth.
Warning to House Issued.
He. like Campbell, is well-to-do and
can and will buy more later. We had
to give him personally 5 per cent of
our commission, which is 10 per cent,
to repay him for interesting his friends.
We got $185.50 interest, though, to off
set the $250. He and two of his friends
will be in town tomorrow and the deal
will be closed at that time. ...
'It is Impossible to get wires in here
except by telephone, and the telephone
is all same Scott Valley Banking Com
pany and they are knocking. Be care
ful what you wire me for that reason.
"Be careful what you write Milliken,
and bear me out in my statements re
garding requirements necessary to be
come a member of the advisory board.
and requirements necessary to purchase
stock under .the syndicate agreement.
Letter Follows Request.
The next evidence introduced by Mr.
Reames bearing on this deal was a let
ter from Mr. Menefee to the salesmen,
written June 22, 1913. Here is an ex
cerpt: I appreciate the full explanation you
have given in regard to Dr. Milliken
and I think the letter I wrote must
have done the work properly inasmuch
as you were able to close him."
Still another letter written by Mr.
Menefee to a man named Bell, at Ias
Vegas, Nev., August 20, 1912, was in-
I troduced by the United States Attorney
I to show that Mr. Menefee approved the
1 methods of these salesmen, it i-t in
l oart
I "We are advised hv nur vt..
Hunter and Hopson that you have been
considering an Investment in the stock
or our company ana we are writing
tnis letter, not to present an argument
wny you snouia invest, but with the
idea or assuring you that Messrs
Hunter and Hopson are to be depended
upon in all oz their representations.
Authority of Salesmen rleTealed.
j ney nave Deen wnn tne company
I or some time and from their record
I witn us, as well as the record they
held for many years previous, we know
them to oe dependable in every way.
snowing mem as we do. we have
unnesitatingiy authorized them to
receipt for any moneys. notes
checks payable to the company with
full authority to indorse notes and
cnecKs.
The "Mr. Campbell" referred to by
salesman iiopsoo. who has been In
dieted by a Federal grand Jury but 1
itlil a- fugitive. In one of the letters
quoted. Is Oscar A. Campbell, directo
of the company and one of the defend
ants in the present trial. No evidence
implicating Mr. Campbell has yet bee
presented oy tne liovernment.
Dr. Milliken, called to the stand by
TIIE MORNING OKEGOXIAN. FRIDAY, JULY
STATES CASniER COMPANY TRIAL
iv,.
United States Attorney Reames later in
the day, testified to having bought the
stock from Hopson and Hunter at "a
fraction over $20 a share."
What were you told about this
stock?" questioned the United States
Attorney.
As I understood it." replied Dr. Mil
liken. "it was capital stock of the com
pany, proceeds from the ale of which
were to be used In furthering the inter
ests of the company."
Mr. Reames' question was 'taken to
indicate that the Government later will
attempt to prove that the stock was in
reality owned by Mr. Menefee.
Dr. Milliken Identified a contract
slgnttl by himself and Mr. Menefee for
the company. In which he, with other
stockholders owning 30,000 shares, was
appointed a member of the advisory
committee In return for buying 250
shares, and that his shares were made
preferred stock.
Early I'roflts Are Expected.
"As I understood it." explained the
witness, "a certain number of men
owning 30.000 shares were to receive 5
per cent of the receipts from the first
sales of machines of the company all
over the country."
He signed the contract, he said, after
having received a letter from Mr.
Menefee offering him the place on the
advisory board.
Another telegram from Hopson to
Mr. Menefee. dated June 20. 1912. w'aich
was introduced in evidence, read In
part:
"Issue 250 share stock certificate and
make out syndicate agreement on like
amount for A. A. Milliken. Fort Jones.
Cal. Also appoint h'm member ad
visory board. Be sure and get in mall
Friday to reach me at Montague Sat
urday morning. Will collect money
on delivery Saturday."
Another witness who may be called
by the Government in connection with
this deal is Joseph Hunter, one of the
two salesmen, who has pleaded guilty
to the conspiracy Indictment, and
whose trial has been severed from
that of the other defendants. Hunter
Is now in Portland.
Stock: Sales First. Order.
Among other telegrams introduced
by United States Attorney Reames yes
terday in support of the Government's
contention that the management of the
United States Cashier Company had no
real intention of manufacturing its
coin machines for the market, and was
hiefly Interested in stock selling, was
one from Mr. Menefee. dated February
4. 1913, to h.. fc.. Amsden. an agent of
the company then in St. Louis.
One sentence In this telegram read:
We want stock selling done now and
not machines." The telegram in full
read as follows:
Have done nothing about Indiana.
Take up with your parties. Swift situa
tion unchanged. Was to have con
ference and should get wire today or
tomorrow. Holding automobile deal
will see it Is closed. Have serious
doubts Dix selling stock St. Louis. Wire
fully your opinion whether should give
up machine him now until have plenty.
We want stock selling done now and
not machines. FRANK MENEFEE."
Defense to Deorjr Methods.
A letter read by United States At
torney Reames to show collusion be
tween the management and salesmen
bearing out other evidence that sales
men would dictate telegrams to be sent
them from the company's office as an
id in swinging prospects into line.
was sent to E. E. Amsden. then selling
stock at Mount Vernon, Wash., March
1, 1912. by Sales Manager LeMonn.
One paragraph read:
Advice ou Messges Asked.
"Kindly do some thinking and give
us an idea as to Just what kind of
telegram or letter which we could
send you that would be of the great
est value to you in helping close busi
ness daily and we will be only too
pleased to co-operate with you in the
matter and use your exact words, if It
is your pleasure, as we feel that each
man has a personality that he can use
to advantage and that our- efforts
should be along the line of planning
with you In these matters."
Edward Klein, a New York commis
sion broker, one of the Government'
important witnesses, testified that he
had first met Mr. Menefee in Portland
while on a visit here In November
1910. and that Mr. Menefee had sought
to Interest him In stock. He did no
buy then, but after considerable cor
respondence between them he bough
at different times 70 shares at prices
ranging from $9 to $12.50 a share.
Klein would not buy, his letters
show ed. unless he could obtain the
stock at less than the company's price
at the time.
Expert Finds Money Kept.
After the witness had said he bought
stock from the company, and had
Identified a receipt from Mr. Menefee.
dated August 9. 1912. for 50 nhare
for $625. the United States Attorne
called Hiram House, expert accountant
for the Department of Justice.
Mr. House testified that on Janu
ary 3. 1911. 10 shares sold to Klein,
and 60 shares sold him on August 9,
were transferred from the name of
Frank Menefee. and that none of the
mony hsd gone to the company.
While oa Iba sl&n.d. Us. iUcla had
1 ' J
ys v ' . 'j ; -1
t ' - ' ' - 1
AND TWO OF THE ATTORNEYS
also testified that a statement In an
advertisement of the company, giving
hln name as one of its officers and
directors, was untru.
Manager Opposes Kale.
The sale of the 50 shares to Mr.
Klein at $12 50 per share was the sub
ject of a letter of protest from Frank
M. LeMonn. sales manager, to Mr.
Menefee. 'This letter was put In evi
dence by United States Attorney
Reames. It said In part:
"VI hen In New York I took up the
matter with Mr. Levi. Mr. Klein's busi
ness partner, regarding stock. When
he was here at the Elk's Carnival I
stated to him that the company Mould
under no circumstances sell to him
at less-than $30 and that I would per
Konally try to get some for him at
$17.60 and If he took 50 shares or more
that would perhaps make a trade at
$15.
"In reply to my telegram he writes
me under date of August 6. and you
will find his favor herewith. I then
made an Invemigatlon of the transfers
and find that he has been transferred
50 shares and in tracing It down I find
your favors of the 23rd and 9lh. and
ht you have supplied him with 60
hares of stock for $625 and signed
ame -united states Cashier Co. per
president.
Step Declared to Be Dana-eroas.
I don't want you to think that I
want to be everlastingly finding fault
but 1 must state that I think this is
most dangerous practice for any
hares to be sold under $30 as coming
direct from the company, as It seems
to mi mat you will certainly get
yourself, as well as the company, in
bad. as this cannot go on very lona-
untii someone who has purchased at
$30 will find that some was bought
from brokers at $10 and some from the
company at $12.50."
ANCIENT CHARGE FAILS
DEFENDANT ACCUSED OF HfRDRR
MANY YEARS AtiO SET FREE.
Orand Jury Not to Be Asked to Con
aider Charges Aaralnst Old Men.
Neighbors Cheer Outcome.
uur wivu. J a. juiy lj. i n so
called "treasure murder" case, in which
four aged men were accused of having
committed a murder nearly half a cen
tury ago. were droDDed today sfte
Bates Huntsman, the defendant, whose
hearing was In progress, was set free
oy justice fciwyer.
Cheers greeted the announcement of
Justice Sawyer that ho would dismls
the Huntsman case. The officers in th
courtroom had great difficulty in re
storing order, so enthusiastic were th
neighbors of the old defendants wh
had gathered to witness the fin
scenes of the court drama which hi
stirred the community for the las
week. Finally Justice Sawyer sue
ceeded In getting the room quiet, an
then said the cases against all fou
defendants would stand dismissed.
This second announcement was a slg
nai for another outburst. Huntsma
and Samuel Scrivner stood with tears
In their eyes as they received the con
gratulatlons of their friends.
The motion to dismiss came from
J. Flick, an attorney representin
Huntsman, after Samuel Anderson had
left the stand, where be had Just added
few details to his testimony of yes
terday.
Attorney Flick declared that th
corpus delecti had not been established
and that the charges against his clien
had not been, borne out by the state'
evidence. Attorney-General Cosnon
this point arose and announced lha
while he had been forcibly Impressed
with the story of Mrs. Maria Collins
Porter and was convinced that mur
ders had been committed about the
time she described, the evidence, to
his mind, would not warrant the state
in proceeding further with the case. He
eaid he would not. on the evidence thus
far adduced, ask the grand Jury to con
sider the charges against the old men.
and therefore he and the County Prose
cutor would Indorse the motion to dis
miss. 10,0 0 0 Sec Bell at Ro.ebiirft.
ROSEBURG. Or.. July 15. (Special.)
About 10.000 people saw the Liberty
Bell here tonight, many coming from
Coos Bay. 0 miles. Veterans with an
Immense flag led the crowd. The local
military company and a Juvenile band
carticipated.
" Eantlsentlc Boon to Mothers.
sVtoths snd reliTr-s rhnf4. rrltirfl kln of In
fants. Kps Vtn fr--U ar.1 rt. Ktns tM
bAj s teadci skla. ouc All OruifiUU.
1G, 1915.
GERMANY REGRETS
HEBRASKAN ATTACK
Washington Not Willing, How
ever, to Admit Justifi
cation for Act.
PRECEDENT IS INVOLVED
Berlin's Assumption of Liability
Itegardcd as Insufficient by
Washington, Which Insists
Ship Must Be Visited.
WASHINGTON. July 15. Although
officials were pleased today by receipt
of a memorandum from Ambassador
Gerard, lormallv transmitting Ger
many's admlsxlon of liability and ex
pression of regret for tho attack by
a German submarine on the American
steamer Nebraskan. they practically
decided that the legal points raised by
the Incident would require the dis
patch of a note on the subject further
to conserve American rights in the
war zone.
Legal officers of the American gov
eminent who examined the German
memorandum pointed out that In many
respects the case resembled that of the
William P. Frye. an American ship
unk by the Prlns Eitel Frledrlch. In
both cases the Gerinttn government h
xpressed regret at the occurrence and
ffered to compensate American citi
zens for loss sustained, out tne action
f the German commanders has been
eclared Justified under the clrcum-
tancea.
To admit this, officials here say.
would establish a dangerous prece
tnL
Germany, In the Frye cane, con-
ended that It was a fair Inference
from the language of the Prussian
American treaty of 1828 that an
American ship carrying contraband
could be destroyed if there were no
other way to stop the transportation
of the contraband. The United States
vigorously objects to this construction
f the treaty, and in the case of the
Nebrufkan probably will place on rec
ord Its view that the attack, even
though payment Is aured and re
grets expressed, nevertheless was an
illegal act under International law and
reaty relations between the United
Slates and Germany.
Officials take the view that the case
of the Nebraskan proves conclusively
that a merchantman must be visited
order to determine Its nationality
and the character of Its cargo before
beir.g attacked. Some high officials
do not believe the United States would
Insist that In exercising the right of
visit the submarine commander actu
ally be required to board a merchant
man, bu. would hold that a ship could
be "visited" by signaling a warning
to stop and asking the submission of
papers to the submarine commander.
This was done recently In the case
of the American bark Normandy, which
was halted by a German submarine
nd allowed to proceed.
The official report of the attack for
warded by Ambassador Page after In
vestigation by Lieutenant John H.
Towers, naval attache of the embassy.
said that the Nebraskan was in water
ballast, outbound from Liverpool for
eluware breakwater, and that al
though her flag had been hauled down
Juxt after sunset, as Is the custom.
there were painted on her sides in let
ters six feet high the words "Ne
braskan. New York." After the attack
the shrp headed about for Liverpool
and. convoyed by British ships, reached
the port safely. No one was seriously
hurt In the explosion, which left evi
dences causing some doubt at first
whether the ship had been struck by a
torpedo or a mine. American naval
officers, however, finally came to the
conclusion that it was a torpedo.
TURKS TO MAKE PROTEST
(Continued l-rom First Pits.)
to representations from the American
Government on the question of the
newly proclaimed war xone, the legal
right of the citizens of the United
Slates to trsde in arms was conceded
but it was argued that it was equally
right of neutrals "to "top trade In con
traband, especially the trade In arms.
with Germany's enemies.
Because of violations of other neutral
rights by Great Britain a memorandum
from Count Von Bernstorff. the Ger
man Ambassador, dated April 4. was
devoted entirely to the discussion of
alleged toleration by the United Slates
of Infractions of International law by
Great Britain, and pointed out that It
was necessary In connection with such
shipments of arms to take Into con
sideratlon "not only the formal aspect
of the case but also the spirit In which
the neutrality Is carried out.
TRUST POSLAM
TO HEAL THE
WORST ECZEMA
Poslam deserves the confidence of all
who seek a remedy for eczema antl
ailing skin. Not only does it possess
known merit and ability to heal, but It
is absolutely harmless and no Injury
can possibly result from its use. Has
eradicated thousands of stubborn Ecze
ma cases, many of years' standing, and
should repeat its successful work for
you; bringing Immediate relief, stop
ping all itching and showing Improve
ment every day. Use Poslam for any
surface disorder.
If ordinary toilet soaps Irritate try
Poslam Soap, medicated with Poslam
and superior for daily use. Toilet and
Bath.
For samples, send c stamps to Emer
gency laboratories. S2 West 2oth St.,
New York City. Sold by all druggists,
Adv.
My
Polits
1A 1Pt
1L 1L JlwVt
1L II iitwV Iw?
Now for the grand wind-up. Your unrestricted
choice of any Suit, Overcoat or Raincoat in our
entire shop for jus one-half the original price.
This is the most unprecedented clothing offer
ever announced in Portland's history. All the
season's most favored fabrics and styles are
included in this offer, also blues and blacks.
This announcement will be a great sensation.
First come, first served.
$20.00 Suits $10.00
$25.00 Suits $12.50
$35.00 Suits $17.50
US-
285 Morrison St.
Between Fourth and Fifth
hi
PARK, WEST PARK.
TODAY AND TOMORROW ONLY
Mary
In Her Foremost Success
Tess E Storm Country
Supported by
HAROLD LOCKWOOD
TIME OF SHOWS
11:00, 12:30, 2:00, 3:30, 5:00, G:30, 8:00, 9:30
TODAY, SATURDAY
BLANCHE
SWEET
In a Thrilling: Photo-Drama
THE
A Baffling Detective Story
of International Com
plications. Also
PATHE NEWS
Showing:
Frank Holt
The Wrecked Capitol Eldg.
Liberty Bell
PEOPLES
CLUE
I zf r-rr rr
Great
Qcalira?
ksu.iHLsi
1 1
NEAR WASHINGTON
1
citiori
ONLY TWO
DAYS MORE
of the
BIGGEST PHOTO
PLAY IN TOWN
The
'evil's
slighter
with
Till: VAMPIRE WOMAN
THEDA
at the
For Men, Women
and Children
Any kind of Shoes
BLACK. WHITE, TAN
2 in 1 Rives th
"Sbino of Satisfaction"
.FtF.F.CALin CO,
ltUiTTi.newYort
sasalta, Cu.
UP f
swri
BARA
STAR
Yi
' v 1
t