Morning Oregonian. (Portland, Or.) 1861-1937, December 29, 1917, Page 2, Image 2

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Legislative Body Assembles at
Minsk and Independence
Will Be Proclaimed.
Jiranch of National City Bank ot
m 'ew York Taken, by Bolshevlkl
' and H. II. Stevens, Manager, Is
Arrested for Keeping Keys.
" ' I,ONDON. Dec. 2S.Th establishment
- of a republic In White Russia- has been
. announced, according to Petrograd ad
? vices today. A Rada, or legislative
r body for the territory, has been assem-
bled at Minsk, at which place a decree
Z will be Issued proclaiming the inde
' pendence of the state.
PETROGRAD, Dec. 27. Soldiers act-
tig under the orders of'-Finance Com
. missioner Menshifisky today surround
" ed and seized all prrvate banks in Pet-
rograd, including the branch of the Na-
- tional City Bank, of New York. The
manager, R. R. Stevens, was arrested
. and detained for a short time.
Many bank directors were arrested,
i Several surrendered the keys, to the
t bank vaults, but Mr. Stevens refused.
' J. B. Wright, counsellor of theAmer-
lean Embassy, called upon Mr. Stevens
i during the afternoon.
At the time for the opening of the
- banks detachments of the Red Guard
gathered in the streets ajnX barred the
entrances. Later the- banks .were en
T tered, under the leadership or Men-
shlnsky. Orders' were given that work
cease, and that the banks surrender
their papers and the keys to their
- vaults. In most instances no resistance
J, was offered.
. Mr. Stevens declared his bank had
no vaults, but only small safes. After
his arrest he was permitted to returp
to the bank, which was placed under
f guard. The bank directors who were
arrested -were accused of "sabotage."
1 Telephone service throughout the city
was stopped for an hour.
7 In explaining the seizure of the
bank. M. Menshinsky said:
"We let it be known long ago that
T private banks should send reports
- weekly to the state bank. This was
done, but the reports were incorrect.
It was then decided to occupy the
banks, revise their activity and then
' see -that they resumed business prop-
- erly. The keys are in the hands of
rnmmteilnnirhnlan1rv rx Ha
Rank, an are the tinnkn an A ilnrnmitnlc
which have been seized."
NEW YORK. Dec S8. The National
, City Bank, of this city, whose Petro-
grad manager, R. R. Stevens, was ar
rested in the bank's branch there, will
7 look, to the Government of the United
- States to protect Its interests ' and no
doubt all necesnary steps -in this re
gard will be taken, it was said by an
omciai or me DanK Here today.
Mr. Stevens, it was said, has been Jn
' charge of the Petrograd branch since It
C was opened in January. No direct
.. word has been received from him n re
gard to his 'difficulties.
m The National City Bank of New York
was granted a license lasC January to
" begin business in Russia, with particu
lar reference to the financing of rail-
t, road construction. The license given
- It was the first granted to a foreign
bank to do business iiu, Russia since
- 1879. -
Colonists Forced Into Army Ac
'. cording to Report Just Made.
SALT LAKE CITY, Dec. 28. Pressed
Into the service of the fighting forces
.of the Mexican government and forced
to fight side by side with the Mexican
"peons is the fate of scores of young
men, members of the Mormon Church,
living in the vicinity of Mexico City,
according to A. V. Ivins. who has
charge of the church colonization work
1 n Mexico.
- - Mr. Ivins reports to the church au-
,'lhorities here that several of the Mor-
rnon young men in the church colony
of about 1000 persons have been killed
and many of the homes have been, de
"ptroyed by Mexican outlaws. He also
" reports that several of the chapels and
- schools of the Mormons have been de-
t etroyed.
- Ray L. Pratt has been sent to Mexi
; '. co to intercede with the Mexican gov-
. eminent for the colonists and he is at
present in Mexico City endeavoring to
t. oDtain tne protection or the govern
' purses Serving on Western Front
Are Given Special Mention.
LONDON. Dec 28. Field ' Marshal
J Haig, the British commander-in-chief,
.has submitted a list of names of per
; eons serving on the western front as
J! deserving special mention. -The list,
which was published today In the Lon-
i'don Gazette, contains the' names of
many Americans attached to the Amer-
I'ican Army Nursing Corps.
. , The names of the women mentioned
'. Miss B. M. Alexander. Chicago unit
- Miss S. Briggs. Lakeside unit, Cleve
land: Mrs. J. Christie. Presbyterian
,. j-iospitai unit. New York: Miss C. Cud
paldge. St. Louis unit; Miss M. Dunlop,
, . university or Pennsylvania unit. Phila
-'delphia; Miss G. M. Gerrard, Harvard
University unit; Miss C. Hall. Harvard
.unit; Miss H. G. McClelland, Phlladel-
-pnia unit; Miss X. McKee. Lakeside unit
j.Miss L. Marsh, Presbyterian Hosnltnl
. unit; Miss J. C Stemson, St. Louis, and
, ,juiss u. Area, or the Chicago unit.
, , Piles Cured In 6 to 14 Days.
. , Druggists refund money if PAZO OINT
, i MENT falls to cure Itching, Blind. Bleeding
i - or Protruding Piles. First application elves
,rM-f riOf Artv
-Not Unite Dm aa Out,
- Many a man feels that he is down
and out when aa a matter of fact he
aull has In him many year of good
' service that can be brought -out by
- proper treatment. Stomach trouble of t-
en makes one despondent, it hits him
where he lives, saps his strength and
energy and makes him feel like giv
, ing up. Give him a few doses of Cham
berlaln's Tablets to improve hla dlges
'tion and invigorate his liver and bow
- els. and in most cases recovery Is
' prompt and effectual. Adv.
.-Absolutely Removes
Indigestion. Druggists
:: refund moneyJiLiLf ails.. 25c
" 7 -a V ' " - I
W - "
i " - . tit
Top (Left) Samuel' Ray, Rig-at) Me
Hale Holden. Julius Kruttackultt a nd Fairfax HarrUoa.
Nation's Railroads Pass Into
Government's Hands.
McAdoo Issues First Order to Speed
Vp Freight Movement and Full
Co-operation Is Pledged by
Various Executives.
(Continued From first Panel
Government, in assuming control of
the railroads, is only superimposing its
authority on them and "that, as the
roads are owned now as before by their
stockholders, railroad employes are
till employes of .the owners of the
Not only did members of the war
board assure the director-general of
their fullest support for the Govern
ment under the new arrangement, but
hundreds, of telegrams reached the
Treasury Department today from railr
road officers throughout the country
promising co-operation.
Railroad- finances were touched on
slightly at today's conference. Legis
lation to guarantee- the railroads pre
war revenues has been drafted by the
Interstate Commerce Commission along
the lines suggested by the President's
pioclamatlon. This will be introduced
In both houses of Congress when the
President goes to-the Capitol to out
line his recommendations for financial
arrangements.-. : '
There was considerable speculation
tcday as to the Government's policy
respecting the means of raising funds
to .reimburse the roads if operating
revenues under Government control
fall off. This can be done by paying
the deficit out of the treasury or by
raising freight rates. The roads are
anxious that rates be raided. The dis7
position of Government officials appar
ently is favorable to a rate Increase,
OoTeraaieat Freight Problem.
It is considered unlikely that there
will be any strong sentiment for trans
porting Government freight free of
cost as is done in England. Officials
hold that if Government freight is paid
for as it is hauled the Government will
be in a much better position to deter
mine accurately the exact financial ef
fects of Government operation.
The Interstate Commerce Commis
sion is held to lose its standing as an
Independent agency deciding on their
merits requests for rate -increases, and
the subject of increases will become
a matter of government policy to be
decided probably by the President.
Some railroad officials today ex
pressed the belief that once the rail
roads are run .as a single unit It will
be impossible after the war to go back
to the old system of competition.
Lifting anti-pooling restrictions, they
hold, will disrupt elements of organi
zation necessary under a competitiv
system and at the same time demon
strate that competition is wasteful and
McAdoo Assumes Dotlea.
The text of Mr. McAdoo'a order fol
lows: "Having assumed the duties imposed
upon me by and in pursuance of the
proclamation of the President, dated
December 26, 1917. you will until other
wise ordered continue the operation of
your road in conformity with said
proclamation. You are requested to
make every possible effort to increase
efficiency nd to move traffic by the
most convenient and expeditious routes,
I confidently count on your hearty
co-operation. It is only through united
effort, unselfish service and effective
work that this war can be won and
America's future be secured."
Although Mr. McAdoo does not be
lieve a complete unification of all rail
systems can be brought about over
night, even with legal restrictions
lifted, he fully expects measures taken
under Government control will remove
some of the obstacles that now prevent
the rapid movement of freight. Mem
bers of the war board were requested
to study the situation and report on
any measures to relieve congestion
they think might wisely be put into
Transfer Without Formality.
The railroads, passed under Govern
ment control without any formality
At 12 o'clock the director-general and
the members of the railroad war board
were so deeply engrossed in the discus
sion of measures to relieve congestion
that they did not note the passage of
time, and it waa not until half an hour
later that someone, glancing at the
clock in Mr. McAdoo s office, called- at
tention to the fact that the roads were
out of the hands of their directors.
No Word Received aa to Govern
ment's Taking Over Railroads.
SALEM. Or.. Dec. 28. (Special.)
Until it receives definite information as
to the plana of the Government in
I -r V. - .881 -x-u . r ', II
1 ik il
ward Elliott. Belovr (From Left)
handling the railroads of the country.
the Public Service Commission will
pursue its accustomed course in all
matters- coming before it pej-taining to
This Is the belief of Commissioner
Buchtel, the one Commissioner who was
here today.
So far the Commission 1 without
information, save such as has appeared
m the press, relative to the Govern
ment's proposal to take over control of
the roads," said the Commissioner. "It
is my understanding that existing laws
will not be interfered with.
Question of Management Will Be
Settled, Says C. A. Prouty.
PHILADELPHIA. Dec. 28. The war
ill undoubtedly precipitate a solution
of the problems which so long have
confronted the Government and rail
road managements, in the opinion of
C. A. Prouty, director of valuations of
the Interstate Commerce Commission,
one of the speakers today before the
American .Economic Association. He
predicted that within the next 10 years
there will either be Government own
ership of railroads or at least a fixed
National policy to determine the value
of railroads and to facilitate harmo
nious co-operation, looking to adequate
service and uniform rates.
Mr. Prouty said that the valuation of
the railroads of the country now be
ing made would cost not more than
S40.000.000, of which the Governments
ahare would be about $20,000,000. ' .
Professor John- Bauer, of Princeton
University, stated that the cost would
approximate J75. 000,000. and he ques
tioned the wisdom of spending so much
money for the proposed valuation.
Railroads Centering In Chicago Will
Curtail Service.
CHICAGO. Dec. 28. Immediate cur
tailment of the luxurious passenger
service equipment was among the first
steps taken today by some ol tne rail
roads with headquarters in Chicago
when the Government took charge of
the Nation's rail systems. "
The Chicago. Milwaukee & St. Paul
announced that it would eliminate both
observation and buffet smoking cars
from its trains. The-change will be
made between Chicago, Milkaukee artd
Minneapolis at once, and on the lines
to Kansas City and Omaha next Week.
Officials said the discontinuance of this
heavy equipment will result in a con
Biderable saving of fuel. -
Big Eastern Lines Will Switch Off
All Non-Essentials.
'MINNEAPOLIS, Dec. 28. The Minne
apolis. St. Paul & Sault Ste Marie Rail
road will discontinue the use of obser
vation, buffet, smoking and library
cars ahortly after January 1, accord
ing to an announcement today. A simi
lar announcement was made by the Chi
cago, Burlington & Quincy Railroad.
President of Soothers Paclfle Company
Says Reliance Can Be Placed
on Railroad.
.William Sproule, president of the
Southern Pacific Company, views the
decision of President Wilson to take
the railroads of the cduntry under Gov
ernment control as a war move that is
fully Justified and that should have
beneficent results.
Mr. Sproule's comments on the Ad
ministration's action, conveyed to Port
land for Information of the public yes
terday through the local offices of his
company, follow:
"The public can rely on It that in
the operation of the railroads, inter
ference with the normal business of
the country will be kept to the lowest
point consistent with the purposes of
the Government in the winning of the
war. The fact Is, that in emergencies
the Government can. without any aues
tion, do things in the public interest
that it would be unlawful for private
ownership to attempt. It should be
evident to everybody that it is the in
tention of the Government not to lm
pede Industry and its carriage, but to
facilitate it, that the utmost facilities
of the railroads may be put to the
public use and the business of the
country gain in dispatch. V
"As to the financing suggested for
the roads needing it, this can be ac
complished directly when it is the Sec
retary of the Treasury himself who
has his hand upon the operation and
conduct of the railroad systems of the
-.'Reliance can be placed upon the
continuing desire of the railrftads to do
their part toward winning the war,
whatever may be its duration."
Read The Oregonian classified ads.
British Newspapers Are Not
Satisfied With Proposals
Made by Czernin.
Sincere Desire to End War Is Con
ceded by Some, but Terms That
Would Vindicate Militarism
Are Held Impossible.
LONDON, Dec. . 28. a Newspaper
opinfon here on the reply or the central
powers to the Bolshevlkl peace terms
follows two main lines. On one hand
It seems to be felt that the central
powers have made a perfectly sincere
offer to end the war immediately, while
on the other hand it is declared that
they have set a cunning trap lit which
they hope, although vainly," to catch
the allies.
The former view Is supported strong
ly, for instance, by the conservative
Daily Express, which stands uncom
prisingly for victory over the central
powers and. is an ardent apostle of
anti-Prussianism. In all the papers
taking this view the statement of the
central powers is regarded as being
addressed less to Russia than to the
allies Collectively and the offer made
through Count Czernin Is assumed to
be an initial proposal which the Cen
tral powers are prepared probably to
modify in the course of bargaining, for
nowhere are the term- of the central
powers regarded as entirely acceptable
in their present form.
Terms Germany' First Bid.
The Express says:
"The terms may be taken as Ger
many's first bid. The proposals are,
of course, wholly inadequate, but it is
significant that the idea of conquest
has been abandoned completely.
At the same time the demand of
the allies for reparation is ignored
totally. . . . There is no doubt that
the negotiations are a form-of camou
flage by which Germany is attempting
to talk to the allies through Russia. It j
is a general peace that Germany and
Austro-Hungary want and behind
Csernin's words there is, we think, a
perfectly sincere Vdeslre to end the
war at once. The offer, for what it is
worth, is obviously genuine. .
An authoritative allied reply' to
Count Czernin might be a demonstra
tion to the German people that the al
lies have no wish to contrive their de
struction, hinder their development or
threaten their independence. When
they once understand what the allies
stand for and what really are their
Intentions, the German people them
selves will complete the destruction of
that militarism which has set out to
conquer the world."
Proposal Is Significant.
The Daily Chronicle says it is a
striking fact that the central powers
have accepted the formula of no an
nexations and no indemnities, and con
tinues: V . .: . .- I
"Coming at the same time as threats
and warnings of tremendous German
efforts on the western front, .it is no
doubt merely the forerunner of pro
posals more formal in character. . . .
The terms of the central powers offer
no security whatever against a recur
rence of the war, whenever the original
disturbers of the peace are strong
enough to fight again with a better
prospect of victory."
The Daily News, which Is regarded
as being tinged with pacifism, con
tends that Germany had to choose be
tween , her extremists and her mod
erates,' as no1 peace formula could pos
sibly satisfy both Count Reventlow and
Phillip Scfieidemann. .
"If the alliea are appealed to by the
Russians for their views, they should
seize without hesitation the opportun
ity Of making a candid and reasoned
statement of their war alms and their
peace terms' . . . On certain im
portant questions, such as the repudia
tion ot territorial ambitions and puni
tive indemnities, there is. In form at
least, a common ground between the
German professions and the declared
principles of the allies and it should
be borne in mind that when a state
ment of peace terms. Is framed under
such circumstances as brought the
present German proposals to birth, its
demands may be assumed to repre
sent, not an irreducible minimum, but
a skillful negotiator's stock in trade.
Germans Have Designs in Russia
t Pending Negotiations.
LONDON, Dec. 28. The Petrograd
correspondent of the Times describes
the effect upon the Bolshevik! author!
ties of the rumored proposal of the
German and Austrian delegates to the
Brest-Lltovsk conference that In a
certain contingency various strategio
points in Russian territory should be
occupied by the central powers.
According to the rumors it had been
proposed by the representatives of uer
many and Austria that pending the re
sumption of the negotiations Russia
should mediate between the central
powers and the entente allies with a
view to bringing about a general peace.
Should the attempt fail, the occupation
of the several strategic points by the
central powers was proposed so that
pressure might be brought upon the
The proposal, says the correspondent.
caused consternation at the Smolny In
stitute, the Bolshevik! headquarters.
Dr. Von Kuhlmann, the German For
eign. Secretary, is reported as having
replied to the Russian complaint re
garding the refusal of passports to
German minority Socialist by stating
that he did not see any hindrance to
peace in preventing communication be
tween, the Russian and German Social
ists. Reports of fighting and other
military activities in interior Russia
continue numerous, but they are so
contradictory that it is Impossible to
get at the truth of the sttuatiotr.
- The Morning Post's Petrogra (corre
spondent quotes from the newspapers
there the report of the finance com
missioner on the financial condition of
Russia, in which It is stated that all
sources of the state's income have been
cut off. It shows the railroads entirely
occupied! with moving troops and mem
bers of the Red Guard, who travel free,
there being, therefore, no receipts from
passenger traffic.
The correspondent says the only re
source of the state is the printing of
paper money and that the government
is bankrupt.
A field headquarters communique is
sued after a Jong interval mentions
only the western and southwestern
fronts.' It ignores the northern front,
but indicates that there is still a Rus
sian front In existence along about
two-thirds the length of the Russian
points where they were needed.
Great Cleanup Sale of Beautiftcl
Bands and Edges at 39c Yard
Handsome Gold and Silver Bands' and Edges in
the popular burnt-out effects 3 to 5-inch widths.
Also Gold and Silver LaceB with net top.
27 -Inch Flouncings at $1.19 Yard
High-class Metal Flouncings full 27 ins. wide. Gold
and silver patterns to match the 18-inch width.
There's an R. & G. Corset
for Every Figure
$1 to $3. 50,
. a Pair
tfo matter whether 4Burs is a normal
or an unusual form whether certain
conditions require a corset of unusual
construction there is a suitable cor
set for you in our selection of R. & G.
Corsets. There's a corset that will
build up and preserve the graceful
figure lines; that will be perfectly
comfortable though worn continuous
ly for long periods. They come in all
sizes and materials and at all prices
from Sl.OO to, S3.50 a pair.
Store Opens
at 8 -.30 A.M.
at 9 A.M.
Victory First, Then Peace, Is
France's Reply.
'An Ally JHas Failed Vs, but An
other Has Come; From Other End
of World Democracy Has Risen
Against Austro-Oermans."
PARIS, Thursday, Dec. 27. France
will not accept a peace based on con
ditions before the war, Foregn Minister
Pichon declared in replying in the
Chamber of Deputies today to the peace
terms of the central powers outlined
to Russia. He asserted that Germany
was endeavoring to Involve France in
the negotiations with the Bolshevlki.
but that the war would go on whether
or not Russia made a separate peace.
The Foreign Minister said Germany
was seeking to protect the negotia
tions with the Russians, re-establish
ing commercial relations In the mean
time, believing that in this way the
Bolshevik! might be checkmated later,
Referring to the term which the cen
tral powers offered to the Russians, as
published today, he said:
"Germany is trying to involve us in
her Maximalist negotiations. After
suffering as we have, we cannot accept
peace based on the status quo. By
agreement with our allies, we are
ready to discuss direct propositions re
garding peace, but this Is indirect.
Another Ally Has Come.
"Russia can treat for a separate
peace with our enemies or not. In
either case the war for us will con
tinue. An ally has failed us, an ally
who in preceding years, carried off
great victories. It is a great success
for our enemy, but another ally has
come;. from the other end of the world
a democracy has risen against Ger
many's appetite for conquest.
"At the conference In Paris a pro
gramme was drawn up and in conse
quence unity of action on the part of
the allies will make itself felt, even to
Macedonia. Germany and her allies
have undertaken the impossible -task
of conquering the world. The world
will conquer them.
"In this war France will have played
a great role, for, as Roosevelt has said.
she will have saved, humanity."
Vraaiee Not Compromised. -
M. Pichon declared that the secret
treaties published by the Bolshevlkl
have not compromised France. He said
the German diplomats who were pre
tending to show indignation were the
very men who sought to negotiate a
secret treaty with the old regime in
Russia: who attempted to draw Mexico
into war against the United States, and
organized exploits In Argentina.
' After referring to the German decla
ration that Alsace and Lorraine would
never be surrendered, M. Pichon saidi
"The question of Alsace-Lorraine
does not affect France alone. It is a
world question. It is not a territorial
problem, but a moral problem. On its
solution depends whether or not the
world shall have a durable peace."
Trotsky Said to Be Drafting New
Xote to Entente Powers.
PETROGRAD, DeV 27. The dele
gates, of the central powers to the peace
conference at Brest-LJtovak have
agreed to a 10-day recess in. the peace
Our Third-Street Window Display
18-Inch Flouncings at 75c Yard
Clever color combinations in Gold and Silver Metal
Laces on fine silk nets. An unlimited assortment
of . patterns. All in 18-inch width.
16-IncJi A Hovers at $139 Yard
Both Gold and Silver Allover .Laces, full 16 inches
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Five Bars for 25c
Another eale of this well-known soap. None delivered except
with other goods. Not more than 5 to each customer.
Saturday Sale Drug Sundries
Colgate's Tooth Paste at...
Kolynos Tooth Paste atii.,i
Pepsodent Tooth Paste at...
Euthymol Tooth Paste at....
Pond's Vanishing Cream at. .
Large jar Cold Cream at. .
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Woodbury's Facial Soap at...... ...220
Packer's Tar Soap at, ........,.. .200
Creme Oil Soap at 100 or S for........ ....250
Large bottle Cedar Polish at.; 350
Special Sale of
Men's Union Suits
Wool Mixed Garments at $1.69
One of the best known and most reliable makes fine, naturally
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fitting. All. sizes.
Men's Cotton Fleeced Underwear, Shirts and
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The best standard Cotton Fleeced Shirts and Drawers of sea
sonable weight. All sizes. Special values at above price.
JrZr,'1' JLfio J?J?S SON
Most in Value The Best in
negotiations, which will be resumed
January 4 at a place not yet deter
mmpd. - ' - .
Leon Trotzky, the Bolshevlki-Foreign
M-lhister. is reported to be draft
ing a new note to tha entente allied
embassies, again asking , them to par
ticipate ' in the-, peace . ' conference.
Trotsky Is also said to be preparing a
new message to the peoples of the
world. The Russian, delegates to the
peace conference will return to Petro
grad. tomorrow or Saturday. "
An armistice i reported to have been
Paramount and Artcraft trade-marks
in a theatre announcement signify
Something more than mere seating
capacity and a ticket booth.
Foremost stars, superbly directed,
in clean motion
jr sa. '
UZ?v Convenient) all Places of Interest
vate bath.
and Am.
fffju si?'. I m
i 1 lot
l Jim
Store Closes
at 5:30 P. M.
at 6 P. M.
reached between the Bolshevlki forces
and the troops of General Kaledine's at
Rostov, with a neutral zone between
the opposing lines. i
BaiUfOl1 Mld. for lif urder. ,.
PEORIA, HI.. Dec 28. li. A. Strause,
the bank president who killed his
cashier, Berne M. Mead, recently, waa
held without bail on a murder charge
by verdict of a Coroner's jury today.
Read The Oregonian classified ads.
Southern California headquarters for many
Oregon people. When visiting Southern Cali
fornia you wilt find it to your advantage
to sojourn at thla magnificently situated
metropolitan hotel. Every dasired luxury
Refinement and convenience. In heart of
city. Almost opposite Central Park. Carllnea
to Beachea, Mountains. Missions, but a few
steps from hotel. 0o3 rooms. Each with pri
Absolutely fireproof. Both Eur.
plans. Tariff from S1.S0. F. M,