Morning Oregonian., May 25, 1917, Image 1

YOUR DUTY
The boys are to do the
fighting ; you must do the
paying. Buy a liberty bond.
SERVE YOUR COUNTRY
No war tu.. be carried
on without money. Buy
a liberty bond.
VOL. L VII NO. 17,G31.
PORTLAND, OREGON,. FRIDAY, MAY 23, 1917.
PRICE FIVE CENTS.
WAR TAX REVISION
FILIPINOS TO RAISE
GETS HIS
POTASH PROBLEM
SOLVED IN WEST
SENATORIAL TOGA
PHILIPPINE REVOLT
WHEELBARROW. OF
ONE ARMY DIVISION
PLOT IS CHARGED
BEGUN If SENATE
FINAL WAR
ORDERS
T BY
GOLD IS REFOSED
5000 TRAINED COXSTABCIiART
CEMEXT PLANT MAKES FERTIL
GERMAV EX-COXSUIi AT CEBU
NUCLEUS OF ORGANIZATION.
IZER FORMERLY IMPORTED.
IS UNDER ARREST.
PERSHING
SOUGH
MANY
Third of House Total
Likely to Be Cut Out.
SHORT-TERM BONDS FAVORED
Excess Profit Levy Based on
Average for Years Planned.
ADS MAY BE ASSESSED
Tared Post Also Considered as
Source of Revenue Retroac-
v. live Feature of Increase
, on Incomes Opposed.
" WASHINGTON, May 24. Revision
of the $1,800,000,000 war revenue bill,
passed yesterday by the House, was
begun today by the Senate finance com
mittee. Reduction of the gross tax levy of
the bill by about one-third, or to about
$1,250,000,000, is said to be favored by
most of the committeemen. It is deemed
certain at least that the aggregate
tax burden will not be Increased and
that the committee will not consider
adding the extra estimates of $443,000,
000 recently submitted by the Treasury
Department.
Short-term bonds to take care of
the millions by which the total levy
for this year probably will be reduced
apparently is generally favored.
Low Tax on Ads Favored.
Chairman Simmons announced after
today's meeting that the committee
had agreed to the following conditions
In the House measure:
To strike out the additional retroac
tive income tax on incomes earned in
1916.
To strike out all provisions for in
creased second-class mail rates under
the zone system and substitute a low
direct tax (probably about 2 per cent)
on all, .advertising, including that in
newspapers and magazines and of bill
boards, posters and streetcars; and.
To substitute for the House excess
profits tax on profits of more than
S per cent of invested capital an excess
profits tax based instead on average
profits for a period of years, not more
than five.
$108,000,000 In One Item.
Elimination of the retroactive tax on
1916 Incomes, Senator Simmons esti
mated, alone would result in reduction
of the House bill's tax levy by $108,
000,000. Newspapers and magazines have
vigorously fought the proposed zone
system Increases, declaring they would
be ruinous to many publications. The
loss of revenue by elimination of the
section will be partly if not wholly
recouped, the committee believes, by
the proposed 2 per cent tax on all ad
vertising. The excess profits tax principle
adopted today, the committeemen said,
would greatly relieve this year's tax
burdens upon business Interests gen
erally, provide an equitable basis of
taxation and also Increase by many
millions tho net revenue returns.
Excess Profits to Be Levied On.
Some corporations have complained
that not until last year or this have
they made normal profits.
While not finally decided, the com
mlttee apparently favors retaining
the House rate of 16 per cent on ex
cess profits over earnings of 8 per
cent, but with invested capital aban
doned as the basis of taxation calcu
lation and the period of years aver
age substituted.
The committee discussed only brief
ly the broad question of income tax
rates, the House new normal tax, re
duced exemption bases and Increased
eur-taxes, and reached no decisions.
Consideration is being given a tax
upon parcel post packages, smaller
than that on express shipments. A
parcel post tax, Senators say, would
he considered a freight rather than a
postal tax. In deciding to strike out
the second-class postage zone increase
the committee believes this is a mat
ter of postal administration rather than
taxation.
Further Changes Considered.
Further changes in the inheritance,
tariff, freight, passenger and liquor
taxes also are being considered. Pro
fessor Taussig, chairman of the tariff
commission, discussed the 10 per cent
additional tariff levy today with the
committee, and changes to equalize al
leged discrepancies.
The committee today debated and
tomorrow it is proposed to vote on the
general question of reducing the ag
gregate tax levy of the bill. None of
the committeemen, it was stated, have
urged larger gross levy. The Senators
were quoted as generally favoring a
reduction on the theory that the House
levy is much too large to be reasonably
borne this year by the business inter
ests. The committee sentiment gener
ally is against Imposing unnecessary
burdens the first year. Short-term
bonds, running from one to five or pos
sibly ten years, thus "spreading out"
the war burden over that term, are be
ing considered.
Completion of the Senate commit
tee's redrafting work within a week or
ten days, to be followed by immediate
consideration of the bill in the Senate,
was the prediction tonight of Chairman
bimmons. .
Brigandage and Religions Outbreaks
in Islands End Philippine
Lawmakers Order Militia.
SAN FRANCISCO, May 24 (Special.)
Filipinos are to raise an entire army
division for service with the armies of
the United States in the European war.
Ths news was brought here today by
Brigadier-General Herman Hall, chief
of the Philippine Constabulary, who has
come home on leave.
"There are 15,000 men who have been
in the Scouts and Constabulary," said
General Hall, "and of these probably
6000, all trained men, are available to
form the nucleus of the complete di
vision. The last Philippine Legisla
ture authorized the formation of a Fili
pino militia and these men wll be those
who are to go to the front for the
United States."
General Hall said that brigandage and
religious outbreaks among the fanatics
had ceased and only one small uprising
had occurred during the past four years.
General Hall, who ranks as a Lieu
tenant-Colonel of infantry in the reg
ular establishment, went to the Philip
pines as head of the constabulary at
the time Governor Harrison left . for
the islands. Several years ago he was
in command of the Constabulary dis
trict of Panay and Negros with head
quarters at Ho Ho.
AMERICAN LAKE SELECTED
Washington Gets Two Western
Camps, California the Third.
WASHINGTON, May 24. Two of the
three divisional Army cantonment
camps for the Western Department
will be established at American Lake,
Wash., it was announced today by the
War Department. The third camp will
be at Linda Vista, 14 miles north of
San Diego, Cal.
The Manorvllle, L. I., site for the
Eastern Department, previously an
nounced, has been abandoned. Ques
tions of title to land arose, and a new
location will bo selected by Major-Gen-eral
Bell.
DESERTER IS $500,000 HEIR
Father Killed in Auto Accident
Leaves Big Estate.
ST. PAUL. May 24. Search began
here today for C. J. Ashton. deserter
from the Coast Artillery service and
heir to $500,000 of the estate left by
his father, R. W. Ashton, a banker of
Pipestone, Minn., who was killed in an
automobile accident in California last
October, while in that state to arrange
for his son's discharge from the Army.
Young Ashton later became a de
serter.
10 AIRPLANES LOST IN DAY
Germans Report Bringing Down One
Captive Balloon, Also.
BERLIN, via London, May 24. Ten
airplanes and one captive balloon were
brought down by the Germans on the
western front yesterday, the War Office
announced today in a statement, which
adds:
"During the 21st and 22d instant, the
British and French lost five airplanes
in aerial battles and through anti-aircraft
gunfire."
SIMS TO BE VICE-ADMIRAL
Officer With American Forces in
Europe to Be Promoted.
WASHINGTON. May 24. President
Wilson soon will nominate Rear-Ad-
mlral Sims to a "Vice-Admiral in view
of his position as Commander of Amer
lean naval forces co-operating with the
allies In European waters.
This decision was reached today at
a conference between the President and
Secretary Daniels.
RUSSIANS ASK FOR SERVICE
Soldiers Stirred by Appeal of SIln
ister of War.
SEBASTOPOL. via London, May 24.
The officers and men of the local gar
rison have unanimously requested that
they be sent to the Riga front to fight
the Germans.
Their action Is in response to the
speech of Minister of War Kerensky
and the appeal of the Council of Sol
diers' and Workmen's delegates.
AMERICANS LEAVE TURKEY
Safe Arrival of Party in Switzerland
Includes Consul Morton.
WASHINGTON, May 24. The safe
arrival in Switzerland of more Ameri
cans from Turkey has been reported by
American Minister Stovall at Berne.
George Horton, Consul -General; Mrs.
Horton and their daughter were among
the arrivals.
DR. WAITE ELECTROCUTED
New York Physician Dies for Mur
der of Father-in-Law.
OSSINING, N. Y., May 24. Dr. Arthur
Warren Waite, was electrocuted at
Sing Sing prison at 11:10 o'clock to
night for the murder of his father-in-law,
John E. Peck, of Grand Rapids,
Mich.
The murder- was committed May
27, 1916.
President Unfolds Plan
of Operations.
GENERAL TO PRECEDE ARMY
Strategy of Allies Will Be Stud
ied Till Troops Arrive.
HUGE FORCE TO FOLLOW
Americans Must Realize All Re
sources Shall Be Used it Ger
mans Are Kept From United
States, Says O'Lauglilin,
BY JOHN CALLAN O LAUGHLIN.
WASHINGTON. May 24. (Special.)
President Wilson revealed to Major-
General Pershing this afternoon the
plans he has in mind in connection
with the service of American troops
in France.
The General called at the White
House by appointment and discussed
the entire military situation with the
Chief Executive. All The Morning Ore-
goman is perminea 10 print regarding
his movements and those of the divi
sion under his command is that the
General will precede the soldiers to
London and Paris, where he will con
fer with the British and French autho
rities.
General Will Be Informed.
By the time the troops arrive at
their destination. General Pershing will
be thoroughly informed on the strategy
of the allied campaign, the plans
adopted for the training of his men
before they are on the battle line and
the part of the line which will be as.
signed to them when they are regarded
as ready for action.
General Pershing wiil have more to
do, however, than making prepara
tions. He will be the high military
representative of the President in Eu
rope. He will confer with the British
and French staffs and with the Brit
ish and French commanders-in-chief.
He will be advised as to the entire
military situation, the steps taken to
assure -co-operation on the fronts and
the needs of the allies with reference
to men and munitions.
British Viewpoint Obtained.
Up to this time the President has
learned the military situation and ne
cessities of Great Britain and France
from the lips of British and French
representatives. These men have con
cealed nothing, but, of course, they
lack the American viewpoint, and this
is what General Pershing will supply
by cable.
It is about time for the American
people to realize that General Per
shing's . expedition is merely the van
guard of the huge army which must
(Concluded on Page 4. Column 1.)
MAKE EVERY SHOT COUNT LOAN UNCLE THE MONEY TO BUY ONE.
By-Products Are Utilized and. It
Is Expected Similar Concerns
Will Increase Output.
. -
SAN FRANCISCO, May 24. (Special.)
Necessity, quickened by the cessation
of potash imports from Germany, has
brought -forth in California an infant
industry that promises to be a lusty
member of the family of Western en
terprises. The Santa' Cruz Portland
Cement Company, operating near Santa
Cruz, the largest -cement mill on the
Pacific Coast, has just completed suc
cessfully the Installation of a plant for
the manufacture of sulphate of potash.
The plant has now been running a
month and has shown such great suc
cess in operation that two more units
are being added. The company makes
two classes of potash, one for fertilizing
and one for chemical use.
This is the first instance In which
potash has been made directly as a
by-product of - Portland cement. Be
cause of. its success -here, it is under
stood that other cement plants in the
United States are now installing de
vices for the manufacture of potash.
One of the cement companies in Cali
fornia has been manufacturing potash
from dust collected by the Cottrell sys
tem. This required two operations, one
to collect the dust and the other to sep
arate the potash by leaching. The new
process used by the Santa Cruz mill
takes the product directly from the
kiln, saving not only the potash and
other products, but also all raw mate
rial heretofore wasted in the form of
dust.
MILK FOR PUPILS ASKED
Tacoma Mayor Proposes Free Sup
ply lor Hungry Children.
TACOMA. Wash., May 24. (Special.)
Many Tacoma pupils go to school
without breakfast and some of these
even to without lunches, according to
reports received by Mayor Fawcett to
day.
Acting In the capacity of Commie
sioner of Public Affairs, the Mayor said
today that he will start a campaign
to furnish free milk in Tacoma schools.
He is co-operating with the presidents
of. the Parent-Teacher associations.
REPORT ON BASE PROMISED
Admiral Holm. Tells Chamberlain
Results Will Be Sent in Soon.
OREGONIAN NEWS BUREAU. Wash
Ington, May 24. Senator Chamberlain
today was assured . by Admiral Helm
that he will at once submit to Secre
tary Daniels his board report on the
submarine and aviation base at the
mouth of ' the Columbia River for
transmission to Congress.
This report becomes doubly essen
tial at this time, as both Army and
Navy are now looking about for suita
ble sites on which to establish avia
tion instruction camps.
Midshipmen to Graduate Early.
WASHINGTON, May 24. The present
first class at the Naval Academy will
be graduated June 28, a year ahead of
their time, to provide additional offi-.
cers for the fleet of submarine chasers'
Aspirants and Their
Emissaries Busy.
TELEGRAMS
-.."01.
Candidates and Their Friends
Also Appear in Person.
GOVERNOR'S MIND MADE UP
Among Xames Canvassed Are R. E,
Williams, R. A. Booth, C. W. Ful
ton, Gus Moser, Ben Selling, W.
C. Haw ley, C. N. McArthar.
SALEM, Or., May. 24. (Special.)
The executive offices at the State Cap
itol were the mecca today for dozens
of politicians and near-politicians, each
anxious that either himself or a friend
be the successor to United States Sen
ator Lane, who died last night In San
Francisco. In addition, the offices were
flooded with telegrams from Inside and
outside the state.
Robert A. Booth, of Eugene: Ralph
E. Williams, of Portland; Judge Charles
L. McNary, of Salem; A. C. Marsters, of
Roseburg; W. K. Newell, of Gaston;
Gus Moser. of Portland; C. W. Fulton,
ex-United States Senator, of Portland;
W. C. Hawley, of Salem, Representa
tive In Congress; C. N. McArthur, of
Portland, Representative In Congress;
W. B. Ayer, of Portland; Ben Selling.
of Portland: A. E. Clark, of Portland
W. T. Vinton, of McMinnvllle; Judge
Henry E. McGinn, of Portland, and S.
B. Huston, of Portland, were all men
tioned here many times today as active
or passive candidates for the place.
Gus Moser Calls in Person.
Gus Moser, who was President of the
Senate during the last Legislature, was
here In person today to urge his candi
dacy. A deluge of telegrams came
from many parts of the state for C. W.
Fulton. ex-United States Senator. . The
name of K. A. Booth has been frequent
ly mentioned, and It is known that
Governor Wlthycombe has given con
sideration to his supposed candidacy.
Reports were received this afternoon
that numerous telegrams have reached
the Statehouse to the effect that C. N.
McArthur, Representative in Congress
from Multnomah County, would not.re-
fuse If the position was offered.
Mr. Williams' Friends Active.
Ralph E. Williams. Republican Na
tional committeeman for a number of
years, also was mentioned a number
of times, and C. L. Starr, of Portland,
with State Senator C. L. Hawley, from
Polk County, arrived during the after
noon and talked for Mr. Williams.
Around the Capitol it has been de
clared frequently today that Judge Mc
Nary. formerly Justice of the Supreme
Court, Is a very likely candidate. It
Concluded on Par 2. Column 2.)
T
I
Manila Apparently In Grip ot War,
With Military Guards Present
on Every Hand.
MANILA, April 13. (Correspondence
of the Associated Press.) The war has
gripped Manila, and the Philippines.
Wherever one turns he sees on guard
a soldier of the regular Army, a sailor
of the Navy, or a Filipino guard taken
rrom the Philippine Scouts. At military
posts throughout the islands guards
have been redoubled.
Already two Germans are under ar
rest as a "precautionary measure," so
the government explains. One of them
had not concealed his intentions in the
tense days that preceded the declara
tion of war of blowing up every piece
of American Government property he
could reach. So when war broke out
he was Jailed.
The other arrest is a more serious
matter. Conrad Andre, ex-German
Consul at the important southern city
or Cebu, for months has been the cen
ter of rumors that connected him with
a plot to stir up malcontents among the
r liiptnos to open revolt. These reports
accused him of having kept lists of
men who had figured in insurrections
against the United Sates here. He was
supposed to have offered $5 to each ex
Insurrecto who would sign a document
pledging his suport to this revolt.
J0FFRE SHIP DODGES DIVER
Course Changed Before French
Mission Reaches Home Port.
TATTO r i M.
.iy s. x no steamer on
wnicn .Marshal Joffre. ex-Premier
lvlant and the other members of the
French mission to the United States
returned to France changed her course
shortly before reaching port owing to
tne reported presence of German sub
marines in the vicinity, according to
tne Temps today.
The warning, says the' newspaper,
was received off Ushant. when the
wireless reported that one or two Ger
man submarines had succeeded in sink
ing three cargo steamers on the same
day in the locality in question.
AMERICANS JNJTALY JOIN
Call of Ambassador Page Causes
Many to Visit Consulates.
ROME. May" 23. via Paris. May 24.
American Consulates throughout Italy
are receiving numerous letters from
American men anU women offering
their services for duties connected svlth
the war. The letters are the result of
a call by United States Ambassador
fage ror the registration of Americans
not only those of militarv lee. but ni
all who are able or willing to help in
any capacity.
It is estimated that there are 2000
Americans in Italy.
FORMER QUEEN IS DEAD
Ruler of Madagascar Exilo in AI
glers Since 1896.
ALGIERS, via Paris. May 24. Ex
Queen Ranavalona of Madagascar Is
dead at her home here.
Queen Ranavalona has been living in
exile In Algiers since 1S9, when she
was deposed by the French following
anu-i.nrisuan outbreaks in Madagas
car.
INDEX OF TODAY'S NEWS
The Weather.
TEPTERDATS Maximum temperature. 54
. n . minimum. degrees.
TODAI'S Showers; northwesterly winds.
War.
Plot to im Filipino revolt charged to
Italians take POOO Austrian prisoners.
Italian mlaaion Is dined at White House,
Brazil now facea war. Pare 5.
war tax revision begun In Senate. Pass 1.
J ran sport Transylvania and 413 British
troops sent down by torpedo. Paso .V
Gompers opposed to participation In labor
peace parley at Stockholm. Pin 8.
War tax revision begun In Senate. Pass 3.
i-iupinna will raiae army division. Pas 1.
General Pershing seta final war orders from
rrmuani. t'aga J.
National.
Eipn'i as well as receipts rise, declare
railway neaaa. pas 7.
Conferees ready to respond to President's re
quest for press censorship. Pare 6.
Domestic.
Western cement plant solves potash problem,
Page 1.
Apple crop must move, says Hoover. Paso 2.
Secretary McAdoo appeala to Nebraska peo
ple to auoscriDe. to noerty loan. Page 3.
Pports.
Pacific Coast League results: Port!and a.
lpa Angeles 4: Pan Francisco 10, Oak
land 2. Vernon-Salt Lakit game at Salt
Iak called In fourth; rain. Page IS.
Lea rarcy. famous Australian boxer, dies at
Memphis from pneumonia. Page IS.
"Bean ball" la taboo In organised baseball,
rules National Commission. Pago Is.
War wrecks Oregon's great football machine.
Page 16.
Pacific orth west.
Many In race for Senatorial vacancy. Pags 1.
Benson party makes friends for road bond
issue. Page 6.
Oddfellows and Rebekahs elect grand of
ficer. Page 10.
Publla necessity and convenience art la baala
of battle between power companies,
rage 11.
Commercial and Marine.
Dealers trying to reduce thetr wheat hold
ings. Paga IS.
Wheat lower at Chicago on better crop pros
pect. Page 19.
United Ststea Kteel sells st new high-record
price. Page 10.
Shipbuilding plant proposed at Mllwaukle.
Paga 10.
Portland and Vicinity.
Portland recruits 7631 men. Page 8.
Mayor opposes two-platoon bill. Page 11.
Portland expected to buy 19.000.000 of war
bonds. Page 1.1.
Episcopal convention closes. Pags 15.
Round-up riders form near cavalry troon.
Pago 0.
Weather report, data and forecast, rags 21.
$54,000 Pushed About
Streets of Echo.
MONEY OFFERED FOR SHEEP
J. W. Creath Loses $5000 Be
cause Contract Expires.
6000 EWES ARE PAWN
George W. Perkins Gets Consign
ment After Portland Man's
Casli la Turned Down and
His Draft Is Refused.
J. W. Creath, prominent sheep rind
wool dealer of 614 Thompson stroet.
doesn't carry $54,000 In gold in hla
pocket all the time.
Consequently he lost a sale Involving
a $5000 profit on Tuesday night.
In a determined effort to prevent tho
transaction going to a competitor, Mr.
Creath did what few men are able to
do: he went to the bank and drew out
$54,000 in cold cash on his own ac
count. He rushed the coin to Echo, Umatilla
County, where the deal was to take
place.
A messenger trundled it all over tha
village In a wheelbarrow, but couldn't
get anyone to take it.
OOO Sheep Involved.
The money was Intended to close a
bargain for 6000 head of sheep. The
sheep were to be sent to New York and
Philadelphia, where they were to be
distributed by the Agricultural Pre
paredness Committee, which hopes to.
restock the small farms of tha East.
There are some conflicting reports
over the terms of the contract and
some dispute about the persons author
ized to execute it.
But it seems that late in March
Fred T. Thomas, purporting to repre
sent the agricultural preparedness
committee, of which George W. Per
kins, financier and political leader, is
a member, appeared In Eastern Oregon,
and. after protracted negotiations,
made a contract with the Pendleton
Sheep Company to buy 6000 sheep at
$10 a head.
UOOO Paid to Close Deal.
He paid 16000 cash to close the deal.
Mr. Creath advanced the money and
took possession of the contract.
Final delivery, according to the
terms of the contract, written on its
face, must be made by May 22, when
the balance of $54,000 was to be paid.
Mr. Thomas left Pendleton, presum
ably going back to New York and
Philadelphia. ' He assured Mr. Crcatu.
that he would produce the necessary
$54,000 at the appointed time.
But In the interim Mr. Creath says
he was unable to get Into communica
tion with Mr. Thomas either by letter
or telegram. He began to grow un
easy. Telegram Alters Flans.
Finally, a few days before the sheep
were to have been delivered, says Mr.
Creath. he got a telegram from Mr.
Thomas, dated Salt Lake City, advising
that he would not ship the sheep to
New York after all. but to Idaho.
Having $6000 already tied up In tha
deal. Sir. Creath determined to be on
the ground and pay the $54,000 out of
his own pocket In the event Mr. Thomas
failed to show up.
Meanwhile sheep had advanced $2 or
$3 a head, and Mr. Creath, naturally,
was anxious to take this profit.
Accordingly, he Instructed J. W.
Beamer, a banker of Heppner, to act
as his agent and tender a $54,000 draft,
for delivery of the sheep.
Cold Cash Demanded.
But Dan P. Bmythc, representing tho
Pendleton Sheep Company, insisted on
the cold cash. He had the 6000 sheep
counted and offered to deliver them on
payment of the money.
Mr. Beamer telephoned to Mr. Creath.
who was In Portland. It was nearly 6
o'clock Tuesday night. Mr. Creath has
tened to the Bank of California, arriv
ing there Just before they wero clos
ing the vaults for the night.
"I want $54,000 In gold, quick!" ha
demanded.
Mr. Creath's credit was good and ho
got the money. It was placed on board
the X-'nlon Pacific train leaving hero
at 11:10 midnight. Bert E. Haney, at
torney for Mr. Creath. went with It.
Tho money was unloaded at Echo
early th next morning and trundled
to the local hotel in a wheelbarrow.
But it was past midnight and tho
date for delivery of tho sheep on tho
old contract had passed.
tw Contract Obtained.
Mr. Smythe refused to tako tha
money.
But Mr. Thomas was on hand and
promptly got a new contract with tho
Pendleton Sheep Company at tho same
figures $10 a head. And this despita
tho fact that the market price had ad
vanced $2 or $3 a head.
Mr. Thomas' explanation of the epi
sode is that he borrowed the $6000 paid
on tho original contract from Mr.
Creath. giving the contract as collat
eral, and that Mr. Creath, having pos
session of the contract, attempted to
complete the purchase to take advan"
tage of tho advance in tho market.
Mr. Creath steadfastly denies that
the money was intended as a loan. Ho
(.Concluded, on Paga 4. Column 2.