Morning Oregonian. (Portland, Or.) 1861-1937, August 14, 1915, Image 1

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iaitt ivn rT?i?nnv. ciTTTPnAY. A iTf?lTST 1lT.t. PRICE FIVE CENTS.
VOL. LIV. NO. 17.Q74. T ;
Federal Board Asked to
Give Suggestions
Witnesses Blame Speculation
and Over-Productfon.
Importance of Timber Industry to
Other or raclfle Northwest re
lated, but Representative of
Earn Explain Depression.
Business In the Pacific Northwest Is
tad that was freely and frankly and
almost unanimously admitted before
the Federal Trad Commissioners yes
terday. Bat what caused It to be bad. and
row to Improve It. were elements tn
the situation that broua-ht forth many
Conflicting theories.
All witnesses were agreed, however,
that the commlssloa can be and shoold
of material asslstanea In bringing
boat tho Improvement.
There was universal agreement, too.
en tha proposition that the lumber In
eotry Is the backbone of business In
tha Pacific Northwest, and that the
lumber Industry, more than any other.
Ss experiencing distressing demorallsa
. tlon.
Laaaber Maafla Haa taaa Center.
Most attention waa given to the
lumber situation In tha bearing that
occupied the attention of tha commis
sion for foor hours yesterday morning,
but tha grain situation, the fruit situa
tion and rarlous other industries that
represent the Pacific Northwest re
ceived ample attention.
Tha commissions hearings were In
formal, although all the testimony
was transcribed for future reference
pr the commlssloa. The session was
opened by Joseph C Davlea. the chair
man, who subsequently asked C C
Cott, president of tha Portland Cham
ber of Commerce, to preside. The
full commission, consisting ot Mr.
I'aTles. Edward X. Hurley, vice-chairman;
Will H. Parry. William J. Har
ris and George Rubles, waa present.
War Blasee far Ceadltlea.
The various elements that hava con
tributed to the present stagnation of
tha lumber Industry were presented
for the commission's review.
Foremost In the list of causes was
placed the diminishing demand due to
the European war. but next In order
and closely behind It were placed care
less financing and speculstlon. Diffi
culty In obtaining charters also waa
xtamed as a contributing factor, and
this condition. It waa pointed out, waa
clue rittirrly to tha war.
Khlagle Mrs Deplore Tariff.
The Commission also received some
written testimony In addition to the
oral evidence, and some of these doc
uments emphasised the tariff as the
probable cause of depression in soma
branches of tha lumber Industry, par
ticularly tha shingle industry. Re
moval of the shingle tsriff. It waa
presented, has permitted shingles man
ufactured In British Columbia to enter
Into unnatural competition with the
shingle manufacturers of Oregon and
High charter rates, due to the war.
were held partially responsible for
threatened demoralization of the fruit
Industry, bat It was explained to tl.e
Commission that earnest effort on tha
part of the growers and assistance on
the part of the Federal Government
will be required to extend the North
Western markets Into foreign flsHs.
rrwlt Mrs Also Ask t'asablae.
The fruit men. aa well aa the lumber
men. appealed to the Federal officials
for permission to combine, under the
Commission's direction, for tha purpose
ef exploiting their wares In foreign
trade centers.
A. U Mills, president of the First
National Bank, opened the discussion
1 testifying to the general business
Whatever other financial and eom-
meeta! Ills are present In the Taclflc
Northwest, be said, are due largely to
the depression In the lumber market.
"The lumber Industry provides em
ploymeat for about ii per cent of our
laboring men. ha explained, and then
referred briefly to the graat economic
les to the community sbtu the lum
ber trade Is not prosperous.
Farsaera liwpery Mealloaed.
Mr. Mills expressed confidence In the
stability ef tha various other Industries
peculiar to the Pacifle Northwest. He
pointed out that the farmers are reap
ing a bigger harvest this year than
aver and that their condition, gener
ally speaking. Is prosperous.
To emphasise his theory that stagna
tion in the local commercial world la
due to the lumber situation. Mr. Mills
prssented a map. recently prepsrea by
the National Chamber of Commerce. In
which the business situation In each
community was reflected by the degrees
of shading. The color varied from pure
white where business Is reported to be
good to deep black where it la baa.
Washington and Oregon are the only
glatea shown In black.
The fact that these two states are da
pendent so largely upon the lumber
easiness. Mr. Mills pointed out. Is the
dot so face a. Cotuaut X-t
Submarine Commander Says In Re
port When Warning- Waa Disre
garded Vessel Waa Shelled.
Spcial correspondent of the New Tora
World. Coprrlsnt. 11&. by f"
Ushlac Company. Published by arrangement.)
BERLIN. Aug. 7. Tha Mlnstry of
Marina Informes me that an official re
port has been received from the com
mander of the eubmanne that recently
attacked the Cunard liner Orduna. In
Its main features tha report confirms
the statement made by tha captain of
the Orduna upon his arrival in New
Tha commander of tha submarine
says that he saw the Orduna through
his periscope and took tha liner for an
English steamship of about 000 tons.
He fired a torpedo but miscalculated
the stxe and speed of the Orduna, and
tha ohot failed to strike. The sub
marine then came to the surface and
signalled for the ship to halt. This
warning was not heeded, so the eub-
I., nrrl.rad SSVSrai
DUIOI tuuiu .
shots fired from a gun on deck. But u
was soon obvious that tha German U
boat could not overhaul tha British
ship and tha commanoer -r -
The Minister of Marine talis me that
. . . . renort about
na nas no
the sinking ot the Iberian, on which
. - i. hir Uvea. The
two Btriiii --
general assumption in Berlin, bow-
....... to heed
a signal to stop.
Popularity of Ground and Tank.
for Children Shown by Flgnre.
Tne popularity . - -
. i i tank i ta anown
grounds ana s "'
In a report prepared by the park
bureau, giving 234.771 as the total at-
, .i..miiHi during June
tenaance -
and July of thla year. In June the
total attendance was 7M. -.'
July it Jumped to nearly double that
"'J?' . ti i. .lawrrannd was by
remnsuia. -
far tha busiest. In June tha "tend
ance was 1.SM. In July it waa 6J.42L
In July eight playgrounde registered
mora than 10.000. and three of them
mora than JO.000.
Swimming also waa popular, tha Bg
. . ........ v..n a 100 ner
ores snowina ; , -
cent Increase in swimmers in the public
. -, Jul. avar June.
swimmma p.-. - - -
. , t. a.nw ihtra were 4244
swimmers in June and U.S. in July.
In Sellwood there were 165 in June
and U.S44 in July. In July there were
1S73 swimmers in - me
swimming tank.
Catting Assessments Made) Against
Property aa Lien.
n-.n xirolnr against prop
erty owners a total of litis for weed
cutting done a year ago were
w .H.. rit Council yesterday by
unanimous vole. The ordinances make
the amounta spent by tne city ior w
cutting a lien on the property upon
which the work was dona. The IX
penalties imposed on each lot at first
were remitted.
The assessments have been hanging
fire for more than a year. Many com
.i.i.i. been Investigated and a
few corrections made. The action of
the Council yesterday probably win
end the trouble experienced ever since
the assessments were proposed origin
Clerk Act-used of Taking Pay for
Transfer of EnlUled Men.
wacuivctov. Aue. 11. George D.
Wilt a clerk in the bureau of nav
igation of the Navy Department, was
arrested today on a warrant charging
conspiracy in that ne waa cirarii
in a scheme to obtain aums oi money
from enlisted men of tha Navy for
Government Investigators aay tney
., of a conspiracy to
collect payments ranging from 2S to
$50 from enlisted men for transfers
and promotions to which they were
rightfully entitled.
Decision on War Mlnlster'a Pica for
- Break With Italy Postponed.
ROME, via Paris. Aug. 11. Reports
have been received from Constantino
ple that the Young Turks held a meet
ing at which Enver Pasha, the Turk
ish Minister of War. argued the neces
.11. for bresklnc relations with Italy
and thus freeing Turkey from the
"leading spy. namely, tne Italian Jim
h....Hnr and simultaneously adopting
vcre measures against the Italians.
After a long discussion. It Is reported,
the meeting decided to postpone a def
inite decision.
Embargo on Coal Purchased for
Navy Causes Public Feeling.
STOCKHOLM, via London. Aug. It.
The British government has refused to
permit two shiploads of coal purchased
by a Swedish firm for the oweaisn
navy to leave England.
Tha incident has brought forth much
bitter comment from the Swedish press
snd ta absorbing the attention of the
. t L
Document Sent in Eng
lish to Capital
Washington Hopes to, Win Over
Carranza Generals.
Chief of Staff of Army Expected to
Do Important Missionary Work.
Misgivings of Argentine Am
bassador Are) Allayed.
WASHINGTON. Aug. 13 The Pan
American appeal to all elementa in
Mexico to cease fighting and join in
a movement to restore constitutional
government began to go forward
from the State Department tonight.
First, the document was dispatched
In English to Mexico City, directed to
the various Latin-American legations,
whose attaches will translate It Into
Spanish and deliver It to tha military
leaders in that vicinity. The appeal
In original Spanish will be forwarded
tomorrow directly to Generals Villa
and Carranxa, governors of states, and
many other chiefs in different parts of
the country. The text will be made
public here within a few days.
Carraaaa'a Deaaaee Expected.
With the appeal dispatched, the
United States Government will institute
a friendly and persistent effort to in
duce Mexican leadera who thus far
have shown a disposition to oppose
the movement to sacrifice their per
sonal views In the common Mexican
interest. It Is expected that General
Carranxa will maintain the defiance ha
bad Indicated In recent communica
tions to his agency here, but It is re
garded as probable that many of his
generals and other adherents can be
Induced to Join in a peace convention.
It Is believed here that if a few
Carranxa generals partclipate in a con
vention of the factions it will not be
long before organised opposition to a"
new government could be checked ef
fectively. Seatt'a laflaeace Powerful.
In this connection. It has been re
ported that General Hugh L. Scott,
chief of staff of the Army, who is
remaining at the border at the request
of the State Department, is expected
to perform important missionary work.
General Scott knows, many of the
Mexican military leaders personally,
and it is believed he may exert a pow
erful Influence.
Absolutely no resistance to the plan
la expected from any source other
than from General Carranxa, and in
soma quarters here the feeling Is
growing that even Carranxa himself
my respond favorably to the appeal
after he has studied its friendly tone
carefully. General Villa and his ad
herents made it clear today in a state
ment Issued by Dlas Lombardo. For-
Concluded on Pafe Z. Column 1.)
YESTERDAY'S Maximum temperature, Tl
degrees; minimum. 66 degreea.
TODAY'S Saturday fair; northwesterly
Bulgarian Minister denies his country Is try
ing to drive bargain. Page 2.
Return to ancient methods of m-arfare fea
ture of European struggle. Page 3.
German sobmsrlne commsnder confirms st
tack on Orduna. Page 1.
San Domingo scandal raues Latin-Americana
to distrust United States la Mexico
negotiation. Page 3.
Appeal to Mexican leaders dispatched from
Washington. Page 1.
Thousands Invited to Benson day at Expo
sition. Page .
Wheat slnmp due to move by Italy. Pase 1.
Pacifle Mall sells five big liners. Page 1.
Willamette River Marathon to take place
this afternoon with nearly loo en trie.
Page a.
Pacific Coast Leagne results: Portland 4,
Vernon S; Ssn Prsncisco 8. Salt Lake 8;
Los Angeles 0. Oakland 3. Page &
Yankees beat Athletics 3 to 2 In exciting 12-
Inning game. Page a.
Portland tennis players out of running in
Seattle tourney. Page 8. y
Commercial and Marine.
British tramp. Lady Carrington. chartered
for September grain loading. Page 12.
More wheat offered with decline In bids.
Page IS.
Chicago market affected by cancellation of
export sales. Page 15.
Interstate Commerce decision causes selling
pressure In stock market. Page IS.
Pacific Northwest.
Copperfield Is left In ruins by fire. Psge 7.
S. H. Friendly. University of Oregon Regent
for 34 years, dies at Eugene. Page 7.
Governor Withycombe annonnces speakers
for wster power conference. Page 4.
Portland and Vicinity.
Federal Trade Commission hears business Ills
related, psge 1.
Pesce offers refused sa Dodge timber suit
goes to Judge, psge 13.
City kindergartens will be put to vote Sep
tember 1. Page 12.
Expert to handle problem of Idle Is urged.
Page IS.
Testimony la cashier trial completed. Page
Judge Gatens frees Emma Goldman and
manager. Page 0.
Weather report, data and forecast. Page 15.
Fight over recall election of Wheeler County
District Attorney Is aired. Pags 11.
Sapling Thrown by Companion
Saves One In Swimming.
ESTACADA. Or, Aug. 13. (Special.)
Presumably in an attempt to rescue
one of her two companions from drown
ing. Miss Ruth Glthens, It. a popular
student of the Estacada High School,
lost her life in Eagle Creek near here
late today. ,
A sapling thrown by Miss Gladys
Carpenter was clutched in a death grip
by Miss Nina Taylor, who first ventured
beyond her depth Into about eight feet
of water. With aid summoned by Miss
Carpenter.-Miss Taylor soon was re
vived, -but 'Mfse Glthehs body-was not
recovered for some time. Mlsa Glthens
waa the daughter of Mr. and Mrs. Henry
Githens, of this city.
Federal Engineers to Examine Ves
sel's Interior at Dawn Today.
CHICAGO. Aug.' 13. When the work
of raising the steamer Eastland, which
capsized in the Chicago River July 24
and drowned nearly 1000 persons,
was stopped by darkness tonight.
United States District Attorney Cllne
announced that the vessel had been
raised 73 per cent of the distance neces-
aarv to ris;ht her. Mr. Cllne's an
nouncement was based on calculations
made by Government engineers.
At dawn tomorrow a porps of engi
neers selected by the Federal authori
ties will begin the examination of the
Eastland's Interior. They will be sum
moned subsequently before the Federal
grand jury to report their findings.
Steamers to Go to At
t i PA,.5 C
IdliHC lu5j coott
Manchuria, Mongolia, Siberia,
Korea, China Transferred.
Chief Objection Is to Clause Re
quiring Crew to Speak Language
of OtZlc-.s But Others Con
tribute to Result.
NEW TORK. Aug. 13. The Pacific
Mail Steamship Company, in pursuance
of its plan announced some time ago
of disposing ot Its fleet and other prop
erty, has sold five of its steamers to
the Atlantic Transport Company of
West Virginia. The steamers so dis
posed of are the Manchuria Mongolia,
Korea, Siberia and China.
' No terms were mentioned in the an
nouncement today, and the officiate de
clined to . discuss the subject at this
time. The last sailing from San Fran
cisco by any of these vessels to Ori
ental ports under the Pacific Mail flag
will be on August 2S by the Mon
golia. Official Announcement Blade.
The official announcement of the
sale was:
"The Pacific Mall Steamship Com
pany announces the sale of five ships
of its Trans-Paclfio fleet namely,
Manchuria. Mongolia, Korea, Siberia
and China to the Atlantic Transport
Company of West Virginia. The last
sailing from San Francisco by any of
these vessels to Oriental ports on ac
count of the Pacific Mall Steamship
Company will be the steamship Mon
golia, on August 25. 1915."
Some months ago the Pacific Mall
Steamship Company Indicated that . It
would withdraw Its steamers from the
Trans-Paclflc service and possibly dis
pose of them because of the new sea
men's law, passed by the last session
of Congress, the terms of which, it is
asserted, made it impossible for the
Pacific Mall to compete with the Jap
anese lines.
Oaerooa Clauses Force Decision.
Many of the members of the crews,
chiefly in the fire-rooms, consisted of
Chinese and Japanese coolie labor, and
under the new law the Pacific Mail
would have to replace them with men
speaking the same language as the of
ficers of the ship. This, it was as
serted, was one of the most onerous
clauses of the new law, but there were
others which contributed to the de
cision of the steamship company to
dispose of its property.
The vessels sold are the largest and
best In the Pacific Mall service.
Philip A. S. Franklin, receiver of the
International Mercantile Marine Com
pany, of which the Atlantic Transport
Company of West Virginia Is a sub-
(Concluded on Pane 3, Column 2.)
Friday's War Moves
FIELD Marshal von Hlndenburg
personally has taken command of
the German army attacking Kovno,
and, according to the German official
report, has made further progress in
the fighting against the Russians in
that region.
The selection of Germany's national
hprn. th rlutv rf canturinK the
-.Tftl .V"t5 f Kovno, which stands be-
Germans and Vilna and the
w-Petrograd Railway, is taken as
an indication of the Importance which
the German staff attaches to this
News that the civilians had begun
to evacuate Kovno as well as Vilna
led to the belief in many quarters that
the Russians may have decided to give
up the position, but in the latest re
port from Petrograd it Is asserted the
Russians have repulsed the German at
tacks except at' one point, where a
desperate artillery engagement is in
Farther north, between Poniewesch
and Dvinsk, where General von Buelow
a week ago was advancing rapidly to
ward the railway, the Germans appar
ently have suffered a setback, for the
Russians now speak of pressing them
and declare they have reoccupied the
town of Tovlny, which Is considerably
west of the point to which the Ger
mans had penetrated.
South of Riga also the Germans are
said to be doing little more than hold
ing" their own, so tha,t the talked-of ad
vance toward Petrograd seems , to be
developing slowly, if at all.
On the other hand, the Germans con
tinue to drive in the Russians to the
northeast and east of Warsaw, and
with the capture of Siedlce are within
a short distance of the Bug River, one
of the main supports of the Brest-Lit-ovsk
line. It was believed the Rus
sians originally Intended to hold this
line. Marshal von Mavkensen. who
commands the Germans in the south
east, between the Vieprz and the Bug,
again is reported to have been held up
by a Russian counter-attack.
Military critics disagree as to the
probable line on which Grand Duke
Nicholas will elect to make his stand,
but a majority of them consider, it
hardly likely that he will try to bold
the Brest-Litovsk front.
The German Crown Prince continues
his attempts to pierce the French line
in the forest of the Argonne. He has
had a few local successes, but the
losses he has sustained in the series of
attacks are declared to haVe been ex
ceedingly heavy. The Germans also
have attacked in Artols, but Without
success, according to the French ac
count. Two Zeppelins last night visited the
east coast, of England., dropping bombs.
Six persons were killed and 23 injured,
and 14 houses were damaged. This is
the 16th air raid on England since the
beginning of the war, and in all 76
persons have been killed and 175 in
jured. The negotiations between the Balkan
states are proceeding, but thus far there
Is no sign of any settlement of the
question at issue.
Divorced Pair Marries Others in
Same Ceremony on Mountain.
ENTERPRISE, Or., Aug. 13. (Spe
cial.) Setting up their wedding altar
on the summit of a bluff high above
the Grand Rondo River at Rondowa,
two couples who live In the timbered
highlands of Western Wallowa County,
were married Tuesday afternoon. The
spot they chose for their wedding is
1000 feet above the river and is reached
by a trail. It commands a great view
of the timbered heights on both sides
of the Grand Ronde.
The couples married were George
Moore and Sarah Miller, and Osiah Mil
ler and Nellie Moore. Nellie Moore Is
a sister of George. Sarah Miller for
merly was the wife of Osiah Miller.
The ceremony was performed by
Rev. A. J. Adams, of the Federated
Church in Enterprise. With his wife
he went by train to Rondowa, where
the two bridegrooms met them, with
saddle horses. The climb was steep
and Mrs. Adams concluded not to at
tempt it. but from the valley, she
watched the marriage party assembled
on the hilltop above.
Blaze Docs $20,000 Damage at Mind
and Burns 300 Acres.
COEUR D'ALEN'E, Idaho. Aug. 13.
Timber on 300 acres of land has been
destroyed in a forest fire that is raging
along Twin Creek, which empties into
Pend d'Oreille Lake in the northern
part of the state. C. L. Billings, forest
supervisor, reported today from Sand
Point that he has 35 men working to
extinguish , the flames. The Are was
started by a homesteader who waa
burning slashings. The fire got beyond
the control of the homesteader.
A forest five on Nine Mile Creek, near
Wallace, caused $20,000 loss yesterday
when the Rex mine was burned.
Intimation Given That Dacia May
Be Released Conditionally.
WASHINGTON. Aug. 13,. The second
payment on the American-owned cot
ton on the steamship Dacia was made
today to the State Department by the
French Ambassador. The amount was
not made public.
Intimations have reached the State
Department that the French govern
ment may release the ship under cer
tain conditions that will limit her ac
tivities to neutral trade and will not
involve a general recognition of the
right to change registry in time of war.
Speculators Find Prof
its Cut Off.
Future Purchases in United
States Less Probable.
Argentine Money Conditions Said to
Be More Favorable American
Prices Also Said to Be Re
garded as Excessive.
CHICAGO. Aug. 13. Authoritative
explanation was obtained tonight for
the sensational action of exporters in
suddenly canceling during the last 48
hours contracts for large amounts of
wheat purchased in the United States,
roundly estimated at 2,000,000 bushels.
The announcement of the cancella
tions caused wheat prices to break
wildly, the downward plunge at one
time amounting to as much as four
cents a bushel, smashing the market
to $1.07 for the September delivery.
Italy Blocks Speculators.
Most of the contracts canceled were
on wheat that had been intended for
Italy. The buyers, however, accord
ing to one of the largest exporters
here, found all prospective profits cut
off by a plan of the Italian govern
ment to fix maximum prices or other
wise circumvent speculation.
A careful statement of the situation
resulting was made tonight by tha
exporter referred to. He did so after
consulting with a prominent Italian
here who Is in a position to know
the facts.
"It has been said the Italian gov
ernment had authorized repudiation of
onerous outstanding purchases of
wheat." the statement said. "While
there seems no doubt cancellations
were effected, the occasion thereof
should no doubt be laid io a different
Prohibitive Order Probable.
"In the first place, the Italian gov
ernment ccild not lawfully authorize
such a procedure and, even if such
authority were vested In the "officials
at Rome to exercise it would be the
beginning of the destruction of her
credit in the United States. What has
happened is probably this:
"There has been a large amount of
wheat bought in the last few weeks
by Italian firms or private individuals
and to such persons the Italian govern
ment may have issued an order .pro
hibiting or regulating speculation by
the Italian grain dealers with millers
and consumers throughout the king
dom. On 'this account, the Italian im
porter may have figured greater ad
vantage in sacrificing his profit on
purchases from the United States than
In letting the contracts be shipped,
showing good paper profits, but on
which more might b4 lost by ef
forts of the Italian government to
give the consumer as cheap wheat as
Price Regarded as Too High.
"Much of the wheat bought by Italy
last Winter was resold to the con
sumer at cost.
"Just now, the government of Italy
is not likely to buy wheat in the
United States, not only because they
think our prices are too high, but also
on account of high exchange. The
exchange basis between the United
States and Italy is about 22 per cent
over normal. The basis between Ar
gentina and Italy is approximately
normal. Some well-known Italians
predict there will be no buying of
wheat by their government until next
January. If there is no substantial
decline in North America before next
Winter, the Italian demand probably
then will fall on Argentina."
Allies to Discontinue Practice of
Bidding Against Each Other.
mi.'.w vnRK. Aur. 13 (Special.)
i-.i,i tviat j. P. Mora-an & Co.. as pur
chasing agents for the allies, had can
celed any of the contracts placed with
Chicago houses for grain for export
was adhered to today. Wall-street
houses having Board of Trade mem
berships have anotner theory for the
extreme weakness in grain at today's
opening, which was increased by re
ports from Baltimore that several con
tracts for execution there had likewise
been canceled.
C. C. Taylor, grain expert for Rens
korf, Lyon & Co., said that his advices
from Chicago confirmed the fact that
several grain orders had been canceled.
Mr. Taylor suggested that the canceled
contracts were of a semi-speculative
nature which had been undertaken by
individuals for the supplying ot grain
to various European countries.
"There has been a great change in
the belligerents' purchasing methods
this year." said Mr. Taylor. "When the
war broke out all of the nations con
cerned scrambled for grain, with the
result that their competitive bids
pushed prices up rapidly. Now the
buying for government account for the
allies is all done through J. P. Morgan
& Co.'a export department. That means
that one buyer will deal with a larg
number of sellers. There will be n
stray orders. .......
"Furthermore, France has prohibits
the Importation of wheat to prevenl
her Importers from aiding the advance
by competitive bids. All of the wheat
(Concluded on Pase 2, Column 2.)
f tCeaci