Morning Oregonian., January 31, 1917, Image 1

VOL. LVI. NO. 17,533.
PORTLAND, OREGON, WEDNESDAY. JANUARY 31, 1917.
PRICE FIVE CENTS.
WALL STREET FILES
SHOW NEWS 'LEAKED'
260 LOST WHEN
LAURENTIC IS SUNK
RELENTLESS WAR
BERLIN TO ISSUE
REPLY TO WILSON
COLLEGES REFUSE
PEACE AT 0LYW1P1A
MILWAUKEE TRAIN
INCREASE III SCHOOL
TERM IS FAVORED
WRECKED IN STORM
OH SEA FORECAST
SEA DOTTED WITH 3IEX WHO
ARE THROWN FROM BOATS.
EMBASSY INFORMED MESSAGE
ON PEACE IS COMING.
FIFTEEN PERSONS REPORTED
TO HAVE BEEN 1ICRT.
7
.
Peace Note Forecast
by Broker.
CLOSE READING IS INDICATED
Information Traced to Wil
son's Brother-in-Law's Firm.
ONE MESSAGE IS MISSING
Sensational Telegram Sent Over
PriTate Wire More Than Three
Hours Before Lansing Made
J.
Contents Public.
NEW TORK, Jan. 30. From the files
of a "Wall street brokerage house Con
gressional inquisitors today brought to
light private and confidential telegrams
regarded in some quarters as definite
ly Indicating that there was a "leak"
on President Wilson's recent peace
Dote.
The most sensational telegram, con
taining a brief but remarkably accu
rate forecast of the contents of the
note, -was sent by E. F. Hutton &. Co.,
one of the largest brokerage houses
in the street, over its private wires
to scores of other brokers with whom
it did business throughout the country
on the afternoon of December 20, more
than three hours before the first
copies of the note were handed to
newspapermen by Secretary Lansing.
Brokers Know la Advance.
. At the time the Hutton message was
sent, according to the testimony of Sec
retary Lansing before the committee
in. Washington, no one in this country
save persons connected with the prep
aration and dispatch of the note had as
much information regarding its con
tents as the message revealed.
' The note previously had been sent
abroad in code. Publication of 'the
note followed transmission of the Hut
ton message to various . brokers by
x-vn&rtk than 10 hours.
Information on which the message
to brokers was based, Edward F. Hut-
ton, head of the firm, testified, came
In another message, now missing, from
F. A. Connelly, of F. A. Connelly A
Co., a Washington brokerage house.
In which R. W. Boiling, a brother-in-law
of President Wilson, is a partner.
Connelly was declared by Hutton to
be hastening to New Torlc tonight to
appear before the committee tomorrow.
Other Concern Informed.
Hutton testified that his understand
ing was that Connelly's information re
garding the, note was based on general
rumor. Indicative that other broker
age concerns were In possession of sim
ilar Information, Hutton said, was an
other message he produced which
Clement. Curtis & Co.. of Chicago, sent
his house prior to Connelly's first roes
sage rctorring to a statement to be
Issued by the State Department "In
tended to promote peace prospects.'
This message contained no details.
Certain members of the committee
however, privately expressed convic
tion that the person who originally
supplied the information on which Con
nelly's missing message was based
cither had read the President's note or
obtained an excellent resume of it.
Inference Believed Clear.
is " Someone read- the note. Represen
tatlve Campbell, of Kansas, ranking
Republican member of the committee,
. emphatically declared after the close of
I the hearing. Chairman Henry and Sher
man L, V hippie, counsel for the cons
mlttce. declined to express any views
on the situation.
No effort will be spared, Mr. Whipple
announced, to throw the fullest light
on the origin and transmission of
the Connelly information, both in the
message from Washington to E. F.
Hutton & Co., and the subsequent mes
sage sent by them to their correspon
dents. The latter message, according
to Hutton. was prepared by George
Kills, Jr., a member of the firm, who is
now ill In Georgia, he said. , Hutton
also requested the committee not to
call Ellis if it can be avoided.
BolilnKa Connection Inquired Into.
Chairman Henry, determined to have
Ellis testify, said he probably would
be examined next week In Washington.
Telegraph operators and others who
had to do with the transmission of
the message also are to be lnterrogat-
ed. Other members of the Connelly
firm also probably will be called. Mr.
Boiling already has testified at a Wash
ington hearing that he had nothing to
do with a "leak" of any kind.
Mr. Polling's connection with the
Connelly firm was the subject of much
interrogation by Mr. Whipple In th
course of his examination of Mr. Hut
ton, when the broker first took the
stand. Hutton told of Connelly's call
ing on him five or six months ago,
informing him that the firm of E. Con
nelly & Co. was to be organised, wit
Boiling as one of the partners, and
asking if the Hutton firm would be
pnma it TCew Ynrk rArrpsnnnrimt.
Hutton said the fact that Bollln
Xwas to be a member of the firm had
made no impression on him. He denied
f that Connelly bad said anything of an
r exnectatlon of srettina "hiirh-elasfi ru
toraers" through Boiling's relationship
to the President.
The Connelly account, he said, how
ver. had been "very attractive."
Whipple then had Hutton produ
(Concluded on Page. 5. Column 1.)
3Iine, Not Torpedo, Is Responsible
for Disaster Rescuing Fish
boats Called by Rockets.
LONDON, Jan. 31. About 260 were
lost in the sinking of the auxiliary
cruiser Laurentlc, many of them hav
ing been killed by the explosion of
the mine which sent the former White
Star liner to the bottom last Thursday,
says a dispatch to the Press Associa
tion from Belfast.
The Admiralty today announced of
ficially that a mine and not a torpedo
sunk the Laurentlc.
The dispatch says the Laurentlc
struck the mine off the North coast
of Ireland and 'ink in about 10 min
utes. A big hole was blown in tbe
side of the ship.
Several boats were quickly launched,
and. filled with scores of men. were
engulfed in the vortex of the sinking
steamer. For a time the sea was
dotted with struggling men. A half
g.lo was blowing and the weather-was
intensely cold. Most of the men res
cued were only half clad and all of
them, especially those wounded by the
explosion, suffered greatly for hours
before they received succor from fish
ing boats.
Another account of the disaster says
a vain attempt was made to beach the
ship. The wireless on board the ship
was destroyed by the explosion, but in
resoonse to rockets sent up, several
minesweepers hastened to her assist
ance. As they were 20 miles distant
it was a long time before the cast
aways were rescued. .
VIRS. LONGWORTH PACIFIED
Lost Cigarette Case Is Found
in
Hotel Tearoom. .
BALTIMORE. Jan. 30. (Special.)
Mrs. Nicholas Longwortr., who is a
daughter of Colonel Theodore Roose-
clt, had clerks, waiters and bellboys
on the Jump tonight at the Hotel Bel-
ldere trying to find a cigarette case
which she had left in the tearoom
at the hotel before going in to dinner.
Mrs. Longworth motored) over from
Washington today to visit Mr. and Mrs.
. 8. Grayden. of Cincinnati. Shortly
fter her arrival she and Mr. and Mrs.
Grayden went Into the tearoom and
Mrs. Longworth placed the cigarette
case on a table.
When Mrs. Longworth was informed
It was found she said. "Isn't that per
fectly splendid?"- and thanked, the clerk.
ANTI-CONSPIRACY BILL UP
Expected House Measure Provides
Against Collusion.
STATE CAPITOL, Salem, Or., Jan.
30. (Special.) An anti-conspiracy bill
probably will be dropped into the
House tomorrow to add a little to the
gaiety of the session.
The State Editorial Association is
Id to bi behind th measure. The
bill alms to prohibit and punish col-
uslo.i, conspiracy or combinations be-
ween any contractor and the .state
ounty, municipality or other political
subdivision and between contractors
themselves in restraint of trade or for
tr.,. regulation of prices. It is similar
in many particulars to the bill enter
tained in the House last session and
defeated.
BRYAN HAS NEW BUGABOO
Ex-Secretary Says Soldiers Are Lion
ized Over Civilians.
NASHVILLE, Tenn, Jan. 30. Will
am Jennings Bryan, addressing the
Tennessee Legislature at a Joint see
slon today, said Army and Navy offi
cers were lionized at Washington
above civilian officials of such do
partments as agriculture, commerce
and labor, and declared that "If this
is to be a democratic Nation there must
be a lifting up of the latter to the
plane of the soldier or a leveling of
the soldier."
He said munition makers and pro
fessional soldiers were trying to con
vert the United States into a military
Nation.
HISTORIC SOCIETY ASKS AID
Legislators Told Organization Is in
Need of $24,280 Appropriation.
STATE CAPITOL, Salem. Or.. Jkn
30. (Special.) A strong plea for the
Oregon Historical Society was made
Y n f f- r m ,h wnv Anil mMim "nmmlt.
tonight by Oorge H. Itimes and
r"re lerick V. Holman. backed up y
Cher'es B. Mjores and Leslie be tt.
all of Portland.
The society seeks an appropriation
of $24,280, much of it to renuve th
archives of the society and house
them in the new Portland Aulltorium.
The commute cut $6700 from the re
quests, -leaving a total of f 17,503 to
be provided for in the appropriation
bill.
MERCURY ISAT EXTREMES
Disparity of 100 Degrees Recorded
in Temperatures In America.
WASHINGTON. Jan. 30 A ph
nomenon unusual in weather bureau
records resulted today in a disparity of
more than 100 degrees between read
lngs in the southwest and the north
west of the United States.
In some parts of Texas the mercury
stood at 86 above,, while near the
Canadian line of the Rockies it was
20 below.
Central Powers About
to Warn Americans.
WAY BEING PAYED BY BERLIN
Use of Armed Merchantmen
Offensively Is Charged.
SPECIFIC INSTANCES GIVEN
Washington Admits Grave Situation
May Hare to Be Faced, but -Thinks
It Will Not Be Precipi-
tatcd With. Peace In Air.
WASHINGTON.. Jan. 30. Information
has reached here that Germany and her
allies are considering communicating
to the State Department a virtual
warning that Americans should keep
off of armed merchant ships of bel
ligerent nations. This became known
today following the intimation in off!
cial circles yesterday that the United
States might issue soon a new memor
andum setting forth Its attitude toward
rmed merchantmen.
It is not known Just when or in
what manner the warning may be con
veyed. but Germany apparently has
been paving the way for such a step
several weeks past by submitting to
the State Department a series of state
ments alleging specific instances in
which merchant craft of the entente
owers have used offensively against
ubmarines guns carried ostensibly for
defense.
Question May Bemai Serlons.
The armed ships question, an un
solved problem throughout all the ne
gotiations over submarine warfare, is
Involved in practically all of the cases
ow pending between the United States
and Germany, and over which an ad
mittedly grave situation eventually
will have to be faced. Officials of the
American Government, however, have
adopted a waiting attitude during dis
cission of moves for peace, and still
believe that the submarine issue will
not be forced to a conclusion ,as long
s there is a possibility of tangible de-
elopments toward peace.
NEW TORK, Jan. 30. When the
Cunard line steamship Carmania ar
rived here yesterday from Liverpool,
the following notice posted conspicu
ously at the foot of the main compan
ion way was observed:
"Submarine alarm Signal on ship's
whistle; two long and two short blasts.
Ship is being chased or in danger of
gunfire.'
"Passengers will go to boats with
ifebelts on them.
"Seamen told off for gun's crew will
go to stations.
Remainder will prepare ' the boats
for lowering.
Firemen and trimmers will double
(Concluded on Pace 3. Column 3.)
THE MOST ENTHUSIASTIC LITTLE MILKER UNCLE SAM
Wilson Awaits Developments, While
Washington Speculates on Pos
sibility of New Move.
WASHINGTON. Jan. 30. The Ger
man Embassy received information to
day that the Berlin government would
issue a reply to President Wilson's
peace address to the Senate, a copy of
which was handed to the Foreign Of
fice by the American Embassy. Offi
cials of the Embassy disclaimed any
knowledge of the tenor of the reply
or the form in which it would be de
livered. The coming of the communication la
awaited, with great interest in all
quarters here and there is much specu
lation over the possibility of its fur
nishing the basis for another peace
move by the President.
While awaiting developments. Presi
dent Wilson is discouraging discussion
of definite steps which might be taken
by the Government in connection with
his world peace league suggestions. He
is known to believe that many questions
that are being raised could be worked
out only in an International conference.
BILL DOUBLES AUTO FEES
Extra License Cost Provided for
Passenger Carriers and Trucks.
STATE CAPITOL. Salem. Or.. Jan. 30.
(Special. Representative Corbett
introduced a bill in the House today in
tended to double the automobile license
fees to owners and dealers. The money
as at present would go into the road
fund.
It would provide a fee of II per
passenger per year for machines used
in carrying passengers for hire and ta
per ton carrying capacity per year for
trucks. It is calculated that the bill
would raise approximately $300,000 this
year.
RUSSIA CURBS LUXURIES
Pleasure Vehicles, Jewelry, Wall
Paper and Delicacies Excluded.
WASHINGTON. Jan. 30. Russia has
added many articles to her list of com
modities excluded by her on the ground
of not being necessities. The new list
of articles reached the Department of
Commerce 'today and among them are
most kinds of vehicles except those for
railed tracks, precious metals. Jewelry,
wall paper and decorations and table
delicacies.
Already there is a general restriction
on imports except by special permit to
Russian ports -because of freight con
gestion. REPORTED SINKING DENIED
British Destroyer Sunk, Says Berlin;
London Says Not.
LONDON, Jan. 30. A German offi
cial communication received here to
day asserts that a German submarine
on January 18 sank a British torpedo
boat destroyer in the English channel.
The British Admiralty says that no
British destroyer or any other British
warship was destroyed as claimed.'"
Reported Pact Is Re-
pudiated Finally.
EACH FACTION BLAMES OTHER
University ahd Pullman to In
sist on Early Demands.
LAND GRANTS AT ISSUE
Senator French, of Clarke, Asks for
Position on State Board for
Woman County Auditing Is
Likely to Provoke Fight.
OLYMPIA, Wash'., Jan. 30. (Special.)
After a night, and day of conference
over issues raised between Washington
University and State College, followed
by an announcement that a satisfac
tory compromise had been reached, the
whole understanding was repudiated
again tonight shortly before what had
been . intended as a ratification Joint
meeting opened in the Senate chamber.
President Suzzallo. of the university.
is accused by State College supporters
of repudiating all that had been ac
complished toward a peaceable adjust
ment by Anally reverting to the uni
versity's original demands after the
State- College had conceded forestry
and architecture as courses the college
would no longer teach.
University Blamca College.
University supporters are equally in
sistent that State College adherents
precipitated the right by refusing any
concessions. President Suzzallo has not
yet given his version of what happened
in the conference to which he had In
sisted Governor Lister should be in
vited. ....
The Governor responded. Jolnln
Speaker Kelly and Representatives
Reed and Davis. House leaders, who
had undertaken to bring about a com
promise by working with . the Joint
committees.
Claim ta Fonda Expected.
After being understood as having as
sented to a plan of settlement." Presi
dent Suzzallo is said by some of those
who were In the room to have refused
longer to indorse the programme or to
agree to undisputed 'affirmation of
state land grants to the State College,
by which means Federal funds are se
cured exclusively to the college.
It Is now expected by State College
supporters that the University will
claim part of the Federal aid fund ex
tended agricultural courses because of
teaching similar courses to those at
Pullman.
Karat Side Detc-rsnlaed.
Following announcement of the fail
ure to compromise. Eastern Washing
ton members went into the open corn-
Concluded on Page
Column 4.
EVER HAD ON THE JOB.
Olympian, Westbound, Carries Port
land Sleeper Communication Is
Dirricult, Owing to Billiard.
ABERDEEN. S. D.. Jan. SO. The
westbound Olympian train No. 15 on the
Chics go. Milwaukee & St. Paul Railway
was wrecked late tonight near Roscoe.
a D.. 60 miles west, of here. All of
the 10 cars except the oBservatlan car
left the track. roetors and nuts
left here ai midnight.- for "the scene
of the wreck. A blizzard is raging and
communication Is difficult.
Reports received by railroad officials
here said that 15 persons were in
jured, one of whom, a porter, may die.
CHICAGO, Jan. 3o. No one was
dangerously injured In the wreck . of
the westbound Olympian train No 15.
of the Chicago. Milwaukee & St. Paul
Railroad, according to reports received
at the general offices of the road here
tonight.
The dispatches received from Con
ductor Kelley said that the cars and
the two engines which were pulling
the train through .a heavy snowstorm
had left the track and that the ob
servation car and one sleeper only re
mained on the rails.
The westbound Olympian, Train No.
15 of the Milwaukee system, carries
a. through sleeper from Chicago for
Portland. Tbe train. Is one used con
siderably by Portland residents return
ing from the East. '
HAIL FALLS UPON SNOW
Ilclglits White, but City Streets
Show Scant Trace.
The heights around Portland were
vlBlted by a brief hall storm yesterday
afternoon. The ice pellets burled them
selves in the Know and -refused to melt.
The snow, which, fell intermittently
yesterday kept the heights covered with
thin blanket, but melted almost as
rapidly as it fell In the downtown
streets, although on the tall building
ledges It remained for a time.
The minimum temperature yesterday
was 28 degrees above zero.
Th weather prediction for today is
continued cold and probably fair.
$1,700,000 IN BONDS SOLD
Lumbermcns Trust Company Takes
Vancouver, B. C.,' Issue at 9 8.51.
VANCOUVER. B. C, Jan. SO The
tender of the Lumbermens Trust Com
pany of Portland, Or., for the pur
chase of 11.700.000 worth of City of
Vancouver 5H per cent bonds at 98.61
was accepted by the City Council to
day, this tender being the highest of
fer ever considered.
The bonds are issued against the ar
rears of taxes for the year 191.
INDEX OF TODAY'S NEWS
The Wemtber.
YESTERDAY'S Maximum temperature. 35
degrees; minimum. 18 degrees.
TODAY'S Probably fair; variable winds.
Lest slat tires.
BUI Increasing minimum school term
House. Page 1.
Washington schools spurn peace pact. Page 1.
Bo..e-dry bill will have to go back to House.
Page 4.
Road codes proposed stir up debate before
committee, rage .
Consolidation effort halted. Page 4,
War.
Two hundred and alxty lost on Laurentlc.
Page 1.
German discredits British unselfishness a
gunient. citing gains in Africa. Page 8,
National.
Wall street files disclose that "leak prob
ably was real. Page 1.
Germany about to warn Americans to keep
off armed ships or Allies. Page 1.
Democniti check debate over peace. Page .
Berlin to reply to Wilson. Page X.
Lr. Grayson faces Senate committee. Page 3.
Iomeelc.
More than 9O0 Mexicans bathed In El Paso,
Page 3.
Wyoming trains blocked again. Page 18.
Sisal conspiracy charged In suit. Page 8,
Hanger striker changes mind. Page 3.
Milwaukee train wrecked la storm. Page 1.
Steel pays extra . dividend. Page 2.
Sports.
Jefferson wins uphill game from School of
Commerce Page 14.
Rlgbee boosts Pittsburg players obtained by
rortiano. rage i.
Portland hockey team defeats Vancouver,
11 to 7. rage l.
Carl May returns unsigned contract to Red
Sox. rait l.
Pacific Korthweet.
Wasco man shot by woman In dispute over
horses. Page a.
Oregon troops to leave about February 10.
Page 8.
Southern Pacific again scored for car short
age. Page 7.
Governor approves prison survey committee
report. Page 7.
Ex-pollceman. indicted - on liquor charge,
trie) to show Immunity was promised.
Page 5.
Letters in Spokane case sensational. Page T,
Commercial mad Marine.
Potatoes high owing to small stocks remain
lng In East, rage la.
Pear of crop damage from cold wave
strengthens wheat at Chicago. Page IB.
Pacific Coast gets Its share of steel ship
building. rage is.
Work Is begun on Supple-Ballln-Lockwood
shipbuilding plant, rage IS.
Portland and Vicinity.
John Hsmmersly safe; victim of timber
wolves mystery. Page 8.
Rev. Ward MacHenry active leader in civic
affairs, rage is.
Women learn how to Peat living cost.
Page 18.
Saturday .designated aa . "Thrift day.'
Page 13.
Reduction In tariffs authorised by trans-
-continental roads. Page 13.
C. P. Gallegly. wife deserter and bigamist.
sent to Penitentiary for non-support of
second wife. Page 8.
Mrs. Milting tells how Bill Squires caused
tier much woe. rage v.
Dr. Geary glees resume of 13 years work
as County rnyslclan. rage 1 j.
High school students to organise as guides
for N. E. A. Convention. Page 8.
'Auto trucks at show attract wide attention,
Page -
Weainsr report, data and forecast. Page 18.
Bill for Rural Districts
Passes House.
MRS. THOMPSON IS AUTHOR
Nine Measures Disposed Of
and 39 Introduced.
WAGE CHANGE APPROVED
Rogue River Fishing Squabble
Finds Way Into Legislature
Again and Representatives
Indulge In Personalities.
STATE CAPITOL. Salem. Or.. Jan. 30.
:(Special.) Children In the rural dis
tricts won a substantial victory this
afternoon when the House with an al
most unanimous vote passed Mrs.
Thompson's bill to Increase the mini
mum term of school from six months
to eight months.
The measure also provides means of
raising the increased revenues neces
sary for the lengthened school term.
It increases the arbitrary fund fixed
for the conduct of each rural school
district from J300 a year to $400 a year.
This money Is derived from three
sources 11.85 for each cniia rrom tne
Irreducible school fund of the state. $3
for each child from the county school '
und and the entire proceeds from a
special tJC levy, which is not to ex-
eed 5 mills for each 'district.
Debate Is Heated.
Mrs. Thompson's bill provides that
when the aggregate receipts from the
three sources do not aggregate S40
In each district, then the balance shall
be paid from the general fund of the
county.
The House indulged In half an hour
of fervid oratory in considering the
bill.. Most members supported It,
I am glad to say to Mrs. Thompson.
said Representative Belland. "that on
he question of this bill we have two
hearts that beat as one."
Kepresentatlva Jones, of Lane, op
posed the bill because be said his peo
ple opposed It. but Representative
Eaton, of Lane, said the people of his
county supported it. He supported it.
Mrs. Thampaaa Speaks for Bill.
We have passed bills here for the
benefit of sheep and rattle, crabs and
fish," said Mrs. Thompson, In closing.
and we have legislated on almost all
other animals. Including coyotes,
gophers, moles and jackrabbits. so let
us pass this bill for tbe benefit', of
our boys and girls."
The men took her at her word and
passed the measure with a whoop.
The House passed nine bills this
fternoon and got through some of its
routine business, but It Is running far
behind with Its work. Monday's cal
endar has not yet been cleaned up.
Nine bills were passed and 39 new
bills were introduced. The House ad
journed at 6:45 until 10 A. M. to
morrow. applanations tVante Time.
A lot of time is being lost by mem
bers explaining their votes. As a
matter of fact, these explanations sel
dom do any good unless they are mada
in writing, for they don't go into the
record. If they are made for newspa
per consumption they are not going
to get very far.
An important bill passed this aft
ernoon was that of Representative
Griggs. requiring employers in all
classes of labor to pay thetr employes
semi-monthly.
There was a lot of opposition - to
this measure on the floor on the
ground that It would require railroads
and other corporations to go to some
additional expense. Orlggs pointed.
out. however, that under existing laws
a man starting to work for a railroad
on the first of a month does -not get
his money until the 15th of the fol
lowing month.
Railroad Lobby Loses.
Representative Cornelius opposed It
bitterly, but Griggs, in his closing re
marks, said that Cornelius had prom
ised to support the bill If It would ex
empt his creamery in Washington
County. -
The roll call showed a heavy major
ity In favor of the bill. The railroad
lobby had worked hard against it.
It Is hard to keep the Rogue River
fish fight out of the House proceed
ings.' It cropped out this afternoon on
the committee report on Representa
tive Peck's bill to repeal the law of tbe
1915 session, prohibiting the sale of
fish taken from the Florea River In
Coos and Curry Counties. The com
mittee, as the fisheries committee
usually Is. was divided. On the ques
tion of passing the bill to third read
ing. Peck and Representative Thomas
engaged in a varbal clash.
Eaterny of Maclcay Blamed.
"Aren't you attorney for Roderick;
Macleay? and doesn't Macleay operate
a cannery In Coos County 7" demanded
Thomas.
"I am not retained by Macleay," de
clared Peck, "but the firm of which I
am a member has done business for
htm. the same as we are ready to do
business for other clients."
lis said the bill had been introduced
at tbe request of John Neilson, an en
emy of Macleay.
"And now let me ask you a ques
tion," demanded Peck, turning to
(Concluded on Page 4, Column 1.)