Morning Oregonian., December 21, 1917, Image 1

VOL. LVII. NO. 17,810.
POKTLAND, OREGON, FRIDAY, DECEMBER 21. 1917.
PRICE FIVE CENTS.
BIG BOODLE EXPOSE
INVOLVES PACKERS
High Finance Lessons
Are Sensational.
AMERICAN SOLDIERS
1 MAN SEES O.A.C.
GIRLS' TRACK MEET
CARFARE
46 PERSONS KILLED
IN RAILWAY CRASH
UNION OF NATIONS
PLAY SANTA CLAUS
UP TO
WEST TO BENEFIT
FROM SHIP INQUIRY
Light Will Be Thrown
on Secret Methods.
QUESTION
COMMISSION
AGAINST 0. S., PLOT
Luxburg Plan in South
America Bared.
CHILDREN OF REFUGEES IX
COACH PIPAL IS WITNESS TO
LOUISVILLE ANT) NASHVILLE
PASSENGER TRAINS COLLIDE.
FRANCE TO HAVE GALA DAT.
' ' SOPHOMORES' VICTORY.
HENEY UNMASKS YARDS RING
Beef Buyers Work Through
Dummy Officers.
Q
MOUR GETS LION'S SHARE
Testimony Before Federal Trade
Commission Reveals 92 500 Clerk
.Who Was Supposed to Htb
- Bold Stock for $1,000,000.
' WASHWOTOJT, Dee. 10. From the
seclusion of corporation records, the
Federal Trade Commission today drew
sensational disclosures of high finance,
dummy officers and sham trustees In
its efforts to determine the ownership
of the Chicago stockyards and the ter
, mlnal railroad facilities at the big
packing plants there.
d:stabllshment of ownership of the
rkyards Is only the first of the
ks before the Commission, which
plans to continue Its investigation into
every branch of the country's meat sup
ply and the alleged control of the
meat food of 100,000,000 people by five
principal groups of packers. The Com
mission's report will be made the basis
for recommendations that additional
legislation be enacted to remedy the
situation, if found necessary., and any
evidence of lawbreaklng will be turned
over to the Department of Justice.
Packer Not Snbpenaed
It has been stated that subpenaa will
not be issued for representatives of the
packers, a step which might give them
Immunity In any subsequent prosecu
tions. Organization of the Chicago Stock
yards Company, under the laws ' of
Maine, alleged to have been for the
purpose of providing a legal method
for the' payment of millions . In "pick
ings," or rebates, to the packing plants
by the Chicago Junction railways and
Union Stockyards Company, of New
Jersey, occupied Francis J. Keney, spe
cial counsel, and the witnesses called
today at the first of a series of open
hearings. Other witnesses tomorrow
will be asked to tell what they know
of J. Ogden Armour and F. H. Prince,
of Boston, obtaining control of the
Junction Railways Company, which was
organlred by Prince, and turning It
over to the stockyards company. F.
W. Croll, confidential secretary to Mr.
Armour, Is expected to testify.
Richard Olaej Sponsor.
Richard Olney and other citizens of
New England appeared in today's testi
mony as sponsors for the plan of
absorbing the money-making Junction
railways company by the new corpora
tion. F. R. Hart, vice-chairman of the
board of directors of the Old Colony
Trust Cpmpany, of Boston, and E. V.
XL Thayer, president of the Chase Na
tional Bank, of New York, testified ot
their activities as members of the late
Mr. Olney's organization committee
which Induced holders of 60,000 shares
of the New Jersey common stock to
surrender their stock and their right
to more than $30,000,000 surplus and
accept In return a guaranteed 9 per
cent from the new company.
The whole plan was an entirely
transparent proposition," Mr. Heney
told the Commission, "to hide the real
ownership and conceal the fact that
Armour and other packers had an ln
' terest In tho yards."
Woven through the testimony of
millions controlled by bank presidents
and packers was the name of Frank
R. Pegram, a retiring witness, for a
quarter of a century bookkeeper and
cashier for F. H. Prince & Co., of Bos
ton. According to the minutes of the
Chicago Stockyards firm's first meet
ing, Pegram controlled the assets of
the Junction Railways stockholders to
the new plan and was given $8,000,000
in Chicago Stockyards common stock
t for the assets and $1,000,000 In cash.
"My salary Is $2500 a year." Pegram
testified in reply to questions.
"No. sir, I never had a million dollars.
(Concluded on Page 4. Column 1.)
SOLDIERS' EXCIRSIOXS TO
PORTLAND MAY HAVE TO
BE ABANDONED.
CAMP LEWIS, Wash, Dec. 20.
By a general order Issued at
Camp Lewis today no soldiers
will be permitted to go to points
more than 20 miles from camp
without special permission. This
order will restrict the liberties
of men holding class A passes,
which comprise those whose mili
tary deportment is perfect. Class
B and C men do not' get suffi
cient time off to go further away.
Should the ban on Seattle be
lifted, .the new order will be quite
as effective in preventing the
men going there unless special
permits are obtained. Special ex
cursions to Portland, which had
been arranged for Saturday aft
ernoons, will have to be aban
I doned. Olympla and Tacoma are
the only cities within the 20-
mtle radius of the cantonment.
The new regulation is said to
have been made to increase mili
tary efficiency of the camp.
Christmas Trees Being Planned for
All Communities and Fight
ers Contribute $7 000.
(By the Associated Press.)
WITH THE AMERICAN ARMT IN
FRANCE, Dec. 18. The purchase of
thousands of dollars' worth of Christ
mas toys and clothing for the children
in this section, of France was begun
today by the Army. One purchase con
sisted of 800 overcoats for the children
of refugees. Everything has been
bought, from drums to toy rifles and
dolls, and all the gifts will be pre
sented on Christmas day.
One American air squadron will set
up a Christmas tree In a hangar lor
the children of a nearby town. It
will be lighted with regulation can
dles and there will be a present on It
for every boy and girl. Each child will
get the gift most desired, the officers
having made a list of the names and
written beside each what that par
ticular child wanted. .
All over the sone it will be a Christ
mas long remembered If the Americans
can make It such. Some of the towns
will have community trees set up in the
public squares, while others will have
theirs In the city halls.
The presents for the children are be
ing paid for out of the soldiers' own
pockets and one division has raised so
far nearly $7000 for the purpose.
For the Army itself there will be
football games In the morning and a
dinner at midday that will surpass even
the one served on Thanksgiving day.
Thousands of pounds of mincemeat.
turkey and trimmings have already
arrived and are awaiting the cooks,
and thousands more are expected.
FRANCE ON SHORT RATION
Serious Wheat Shortage Reported by
Provisions Minister.
PARIS, Dee. 18. The food needs and
resources of France for the coming
nine months were dealt with before
the Senate today in a statement by Vic
tor Boret, minister of provisions, who
declared there was a deficit of 36,000,-
000 hundredweight in wheat.
"The United States and England will
only give us tonnage to supply this
deficit if we ration strictly," said the
minister.
'For the civilian population I have a
stock of only 607.000 hundredweight,
or three days' consumption. Oats are
no better and- the rations of animals
must be reduced. Saccharin will re
place in part the sugar ration next
month."
HOOD RIVER FILES PROTEST
Exemption of Horticulturists Most
Be by District Board.
OREGONIAN NEWS BUREAU. Wash
ington, Dec 20. Representative Sin
nott today, took up with the Provost
Marshal protests received from apple
growers of Hood River against the
early calling in the draft of young
men engaged In the apple Industry.
General Crowder explains that dis
trict exemption boards alone have
jurisdiction over these matters and if
horticulturists, like farmers, are to
be listed In deferred classifications. It
must be done by the district board.
Hood River apple men protest that
their industry will be badly crippled
next year if their young men are in
cluded in the Spring draft.
BUTTER PRICES UP TODAY
Proposed New Quotations to
Be
Highest Ever Known Here.
Because of the scarcity of butter,
usual during the midwinter months,
and advancing markets at other points
along the Coast, Portland butter prices
will be raised 4 cents a pound by city
cream cry men today. The wholesale
quotation on plain wrapped butter will
be 52 cents and on butter in cartons
53 cents a pound. These are the high
est butter prices ever known here.
The creameries have also raised the
buying price of butter fat 4 cents to 67
cents a pound, which Is a fine thing for
the dairymen, coming as it does at the
same time that mill-feed prices are re
duced by the food administration.
CHRISTMASMAIL ARRIVES
Ship
Reaches French Port
- Gifts for Soldiers.
With
A FRENCH PORT. Dec. 20. A ship
carrying 20,000 Backs of Christmas mail
for the American troops arrived today
from the f United States. The Army
postoffice has 60 special freight cars
and an extra heavy detail of men here
to handle the mall, which will be de
livered on or before Christmas day.
Another steamer arrived on Monday
with 4600 sacks of Army mail, compris
ing for the most part Christmas pres
ents. MR. McNARY NOT WORRYING
Credentials to Senate Are for Un
expired Term of Senator Lane.
OREGONIAN NEWS BUREAU, Wash
ington. Dec. 29. Senator McNary is
not worrying over when his appointee
term as Senator may expire. His in
difference may be explained by the
credentials given him by Governor
Withycombe. These credentials, pre
sented to and accepted by the Senate,
on their face entitle Senator McNary to
his seat "for the unexpired term of
Senator Lane, ending March S. 1919."
OREGON SENATORS ON ALERT
Belief Held That Pacific Coast
Yards Are Most Efficient.
HANDICAPS TO BE SHOWN
Among Other Desirable Resnlts of
Investigation Will Be Definite In
formation as to Attitude of
Board as to Wooden Vessel.
OREGONIAN NEWS BUREAU, Wash
ington, Dec 20. Investigation of the
Shipping Board by the Senate com
mittee is expected to redound to the
benefit of Pacific Coast shipbuilders,
and. If expected testimony Is brought
forth, an Impetus will be given this
Industry on the West Coast.
The best information obtainable
under the policy of secrecy thus far
followed is to the effect that relatively
more progress has been made in ship
building in the. three Pacific Coast
states than on the Atlantic or Gulf
Coasts, and so far as the 'wood ship
Industry is concerned, the Pacific Coast
will be found to be away ahead of its
competitors.
Senator. MeN ary Acta.
That he may develop facts vital to
the shipbuilding Industry of the Pacific
Coast Senator McNary today obtained
permission from Chairman Fletcher, of
the committee on commerce, to at
tend the hearings and cross-question
witnesses.
Senator McNary's purpose Is to com
pel a showdown on several disputed
questions and if possible to bring about
a change of policy which will enable
Pacific Coast builders to take over
more business than heretofore has been
granted them.
Chance of Policy Indicated.
It has been charged! . repeatedly by
the various West Coast shipbuilders
that an attempt has been made to dis
courage ' shipbuilding on the Pacific
Coast, especially steel construction,
with a view to forcing the removal
of all steel yards to the Atlantic sea
board. This complaint was heard more
frequently two or three months ago
than since the retirement of Admiral
Capps. ' . "
Lately . there have been indications
of a change of policy in this regard
and negotiations now under way in
cate that the Shipping Board, with
new blood infused, is preparing to
award a liberal number of steel ship
contracts to Pacific Coast yards. How
ever, Senator McNary wants to bring
this question into the open and have
all uncertainty removed. He wants the
(Concluded on Page 8, Column 2.)
NOW
It
Feminine Rooters In White Trousers
and Orange Sweaters Co-Eds
Clash Over Class Goat.
OREGON AGRICULTURAL COL
LEGE. Corvallls, Dec 20. (Special.)
The first annual track meet of the
women of the college was won here
last night by the sophomores -with a
score of 29 points. Freshmen took sec
ond place with IS points, and juniors
third with E points. Seven events were
run off. All the spectators were wom
en except one. Coach Plpal being a
special guest.
Each class had its rooter section led
by girls dressed in Oregon Agricultural
College rooter costume of white trou
sers, orange sweater and rooter caps.
Between events there were serpen
tines, songs and yells. The freshmen
had a mascot, a large goat, with green
bow decorating its horns, on which the
sophomores made several rushes, but
which they were unable to capture.
Miss Jean Kelly, attired as a .police
officer, kept order and separated clash
ing sophomores and freshmen on sev
eral occasions.
The sophomores took the posture test
In all three classes. Miss Frances
Brown. In riding habit, was first; Miss
Hazel Hicks, in evening dress, second,
and Miss Caroline Dick, of Portland, in
.tailored street costume, was third.
Others wore afternoon gowns, gymna
sium suits, bathing suits, tennis cos
tumes and hiking outfits.
' The shuttle relay went to the sopho
mores, the basketball games to the
freshmen and sophomores, track relay
and rope-cllmblng for speed, freshmen;
for form, sophomores; tactics, sopho
mores, and obstacle race. Juniors.
. Infant Joins Red Cross.
GRANTS PASS. Or.. Dec. 20. (Spe
cial.) Williams. Or., claims the distinc
tion of having the youngest member of
tho American Red Cross in Oregon, if
not In the United States.
Leland Forest Lorrels, three weeks
old, was enrolled today when his par
ents took out a membership in his
name.
WOOLEN GOODS MILL'S PAY
ROLL G30WS.
Shipbuilding Is not the only .
Industry locally that has expe
rienced a wonderful growth be
cause of wartime conditions.
Largely increased demands for
the finished product have been
made on manufacturers of woolen -"goods.
. "
One year ago the Portland
Woolen Mills employed SOO op
eratives. Today it is running day
and night shifts, has 410 people
on Its payroll and Is disbursing
nearly 130,000 every month. The
plant Is operating on a basis of
(2,000,000 a year.
Several of the company's ex
pert workmen have gone-to' war
and their places are being grad
ually supplied from the ranks of
women. If experienced help were
available, the management would
enlarge Its mill and to that ex
tent further assist to supply the
unprecedented demand for wool
en goods.
WATCH US BUILD MORE SHIPS.
Hearings Ended; De
cision Due Next Month .
DAN KELLAHER INTERVENES
Increase Hotly Protested by
Commissioner of Finance.
FRANCHISE HELD CONTRACT
Any Advance In Fares Would Con
stitute Violation, Says Mr. Kella
her Company's Case Is Set
' Forth by Its Advocates.
"A pink trip-slip for a six-cent fare
punched In the presence of the pas
senjare" may soon be the popular carol
of the Portland commuter, for the Pub
lic Service Commission heard a weight
of evidence yesterday at its final hear
ing on this moot question at the Court
house and the balance of testimony was
in favor of this desired relief for the
supposedly overburdened Portland
Railway. Light at Power Company. The
six-cent case is bow closed, unless fur
ther developments ensue, and the de
cision of the Commission is expected
to be rendered soon after the New
Year.
It will only be over the opposition
of Dan Kellaher, however, that the In
crease will be granted, according to ob
jections brought to the notice of the
Commission yesterday by tho commit
sloner of finance, of this city, who
entered a vigorous protest.
He appeared, he said, as a represent
ative of tho people of Portland, acting
wholly as a private citizen, and he
characterized the plea of the company
as "camouflage." He said the fran
chise given by the city to the-company,
stipulating a 6-cent fare, was held to
be a sacred contract by President Grif
fith when the city ordinance, aimed to
secure six rides for 25 cents, was be
fore the City Council, and he held this
contract Is no less inviolable now.
The cause of the 6-cent fare was
riding merrily along late yesterday
afternoon, when Mr. Kellaher an
nounced himself as the champion of the
proletariat. Up to that minute, the
hearing was Innocent of any represent
ative of the public, other than officials,
and Mr. Kellaher. for a time at least,
soaped the rails and threatened to
stop the wheels from whirling gaily
on their way.
Franchise Contract Held Sacred.
"If the contract between the city
and the company was sacred at the
time the six rides for a quarter were
asked, It is certainly as sacred now,"
he declared. "To allow the fare to be
raised now would be to violate this
contract, and I, as well as others, will
stand by that contract at all times.
Some argue that the courts passed on
(Concluded on Page 18, Column 3.)
t
Accommodation Train Gets Full Im
pact From Rear of Heavy Through
' Train at Shepherdsvllle, Ky.
SHEPHERDSVILLE, Ky.. Dec. 20.
Forty-six persons were killed and
39 Injured when Louisville & Nash
ville passenger train No. 7, from Cin
cinnati to New Orleans, crashed into
the rear of a Bardstown, Louisville &
Springfield accommodation train to
night.
First reports, apparently authentic.
had placed the number of known dead
at 67 and the number of Injured at be
tween 60 and 60, but this was reduced
when an official check of the figures
was made.
No cause for the wreck was assigned
by W. F. Sheridan, superintendent of
the Louisville division, who would make
no statement pending an investigation.
From other sources It was learned
that the accommodation train had left
the station after making a stop when
the fast train came in sight, running
at a high rate of speed, and plunged
Into the rear end of the train ahead.
The two wooden coaches and the bag
gage car, which made up the lighter
train, were splintered.
None of the passengers aboard the
fast train was killed and none received
more than minor Injuries.
SHIP REPORTED IN DISTRESS
Motor Schooner Nuuanu Runs
Aground North of Hueneme.
SAN FRANCISCO, Dec 20. Wireless
distress calls were picked up here late
tonight from the motor schooner
Nuuanu, which reported herself
aground two miles north of Hueneme,
Ventura . County.
The vessel is operated by the John
Barneson Company of San Francisco.
SAN FRANCISCO. Deo. 21. The, oil
boat Nuuano is off the rocks and is pro
ceeding to San Pedro under Its own
steam, according to reports from the
nrval radio station here at 2 A. M.
Captain Hopner, in a later radio mes
sage, reported lowering of lifeboats.
The sea, was smooth and an easy land
ing was expected, he reported. A tug
will be sent from San Pedro to aid the
stranded vessel.
FERRIS BILL REPORTED
House Public Lands Committee
Recommends Passage.
OREGONIAN NEWS BUREAU. Wash
ington, Dec 20. The House public
lands committee favorably reported the
Ferris bill authorizing the Secretary
of the ( Interior to exchange isolate!
Government lands in the Oregon & Call
fornla grant for adjoining private
lands, of equal value, in order that
both the Government and private
owners may consolidate their holdings
and logging operations be carried on to
better advantage
INDEX OF TODAY'S NEWS
The Weather.
YESTERDAY'S Maximum temperature, 42
degrees; minimum, u degrees.
TODAY'S Fair; gentle westerly wlnda
War.
Situation in Italy grows mora serious as
Teutons near Venice. Fiia s.
French repulse German attack in Lorraine
Page 2.
Hugh Gibson tells of General Ton der Golta.
Governor of Brussels, and of glittering
stair. r o.
Civil war in Russia raging. Page 8.
Foreign.
Details of Luxburg South American plot fully
disclosed. ri(t x.
Balfour replies to pacifist crltlo in Parlia
ment. Page o.
American soldiers will play Santa Clans In
r ranee. rM x-
Shipping losses lessening, says British Pre
mier. Page o.
Germany "Christmas peace terms" pre
dicted, rage o.
National.
Pacific Coast yards expected to benefit
from Ship Board Inquiry. Page 1.
Babst. predicts sugar supply in 1918 will be
adequate. Page 7.
Senate investigation of soldiers' clothing be
gins today, rage 4.
United States arsenal methods attacked at
inquiry, rage .
Domestle.
Sixty-seven killed In Kenteky railway col
lision, rase l.
Chicago meat packers Involved In high
xinance. rase x.
Sport.
"Big Ten" arrange football schedule
Page 16.
Boxing bouts are tonight. Page 10.
Bob Brown urges community-owned ball
ciuds. rage in.
Three teams to compose Coast hockey
ihiug. rase m
Pacific Northwwrt.
One man only sees girls' track meet at Q.
A. C. Page 1.
Commercial and Marine.
Local mills put Into effect new feed quota-
lions. rft 1.
Removal of embargoes causes big advance In
com at unicago. rage 21.
Shipbuilders will meet today to determine
number of ships that can be constructed
during ivio. rage it.
Winter wheat crop la large. Page 21.
Rally in stock market causes prices to re
bound. Page 21.
Portland and Vicinity.
Red Cross drive on In full vigor. Page 10
Attorney for M. W. Beck declares sentence of
court is outrage, rage xj.
Fear of serious flood here has
Page 8.
passed.
Six-cent carfare hearing closes. Page 1
Diversified programme of Christmas .nt...
tainments to be provided for soldiers at
Vancouver javneu. rage 2.
French to be taught at Irvlngton School.
Page 7.
Thomas K. Strong testifies In Fallng will
case, rage 11.
Rev. William A. Waldo called te White
xempie pastorate, rage o.
Renewal ot tong hostilities Is feared. Pago 9.
jaen urseu 10 return quciuoonairat SS SOOn
as poasiDie. rage 10.
Trial trip of Westland may be prevented be
cause of lack ot crew. Page IS.
Weather report, data and forecast. Page 18.
TREACHERY IS FULLY PROVED
Messages to Berlin Made Pub
lic by State Department.
SECRET COMPACT PLANNED
Alignment of All States of Southern
Hemisphere Against United States
Shown to Be Purpose of
German Conspirator.
WASHINGTON, Dec 20. Through a
long series of telegrams exchanged be
tween the notorious Count Luxburg,
former German charge in Argentina,
and the Berlin Foreign Office, the State
Department tonight disclosed further
facts about German diplomatic trick
ery and at the same time shed light
upon some hitherto unexplained activi
ties of certain Latin-American states?
men.
Luxburg, in one of. his messages,
dated August 1, last, reported that
President Irlgoyen of Argentina at last
had made up his mind to conclude a
secret agreement with Chile and Bo
livia for protection against North
America "before the conference idea is
taken up again."
"The conference idea" is assumed to
have been the plan for a Latin-Ameri
can neutrality conference, strongly sup
ported by President Carranza of Mex
ico and much discussed in some of the
South American countries, while the
proposed secret agreement may explain
reports that have come from Buenos
Aires recently of President Irlgoyen's
proposals for a league of South Ameri
can nations.
Argentine Declaration Expected.
In Latin-American diplomatic quar
ters here It Is regarded as certain that
the disclosures will result very quickly
in an Argentine declaration of war
against Germany. Congress and a ma
jority of the people favored this step -when
the American, Government made
public the "spurlos verBekt" (sink with-,
out a trace) messages of Luxburg and
it is believed that the President's op
position now will be swept away if it
is not withdrawn.
The messages given out today were
made public by the State Department
in agreement with the Argentine gov
ernment, which, in an accompanying
statement by its Foreign Minister, says
the "inaccuracies" of the German diplo
mat's reports are so surprising that no
epithet will fit them. The messages
were sent to Argentina soon after the
State Department gave out the first
series of intercepted telegrams, but
heretofore demands for their publica
tion have been in vain.
Crisis Precipitated In Sweden.
The first of Luxburg's intercepted
telegrams were transmitted to Berlin
by the Swedish legation at Buenos
Aires in its diplomatic code and pub
lication of that fact by Secretary Lan
sing not only threw Argentina into a
turmoil, resulting in the dismissal of
the charge, but precipitated a crisis In
Sweden. No explanation Is given of the
means by which the latter messages
were sent, though one or two of the.
telegrams in today's batch were among
those given out previously.
The famous "spurlos versenkt" mes
sage. In which Luxburg recommended
avoiding difficulty with Argentina by
sinking her ships without leaving a
trace, however, does not appear this
time.
Matter Settled by Submarines.
All of the correspondence was ex
changed during July, August and early
September and most of it deals directly
with the negotiations then in progress
over the sinking of Argentine ships by
German submarines. Before the mes
sages fell into the hands of the Ameri
can Government Germany virtually had
settled the question by agreeing to pay
Indemnity and to treat Argentine ships
according to International law. The
secret reports now reveal that Argen
tina on its side was to keep its ships
out of danger by not allowing them to
sail for the war sone. an easy task in
view of the fact that she bad almost no
shipping left.
Throughout the messages Luxburg
dwells upon his differences with the
Foreign Minister and upon his Influ
ence with the President. Finally he
was conducting negotiations directly
with the President, although the For
eign Minister's attitude made this trou
blesome. How far President Irlgoyen's
projects for an anti-North American
alliance went the correspondence does
not develop. It merely says he made .
up his mind to conclude the agreement
with Bolivia and Chile, "a mutual
rapprochment for protection vls-a-vis
North America' being the purpose as
described.
Lubnrg Appears Confident.
In the concluding telegram of the
series, however. Luxburg, addressing
an unnamed person in Santiago, Chile,
probably the German Minister there,
says that as long as Chile is neutral,
Germany after the war will be able to
carry out her South American policy
just as well as, if not more easily, in
opposition to an "infatuated and mls
guided Argentina as with Argentina on
(Concluded en Page IT, Column 1.)
rEri