A" NaT" JTr-vT -. ' l 5? YOU LVII. NO. 17,821. PORTLAND, OltECiOS. MONDAY, JANUARY , 7, 1918. PRICE FIVE- CENTS. $3,000,000,000 IN INSURANCE BOUGHT AMERICAN SOLDIERS AND SAIIy ORS GET POLICIES. PEACE SHIP SPLITS HUNGER IMPERILS SUCCESS OF ALLIES 600,000 PAID BY DARING AVIATORS PROTECTING PADUA FLEEING JAILBIRDS CAUGHT: ONE SHOT WORST IN HISTORY F FOOD SITUATION" IS ENGLAND FRANCE AND ITALY GRAVE. ITALIAN CITT SPARED ANOTHER AIR RAID BY GERMANS. a A av VA A k. V J, 1 : BLIZZARD USS ROCK BANKS 0 PORTLAND Wind and Snow Render City Helpless. STREETS ARE IMPASSABLE Wind Blif.vs 54 Miles an Hour, . Sleet Freezes as It Falls. COLDER WAVE EXPECTED "Jrcal Ptstres Anticipated Because of I nf I f-bort?e and Blocked Transportation -Telexraphlc Service Badly Crippled. CHICAGO. i:U Jan. . (Special.) In the wake of the wont bllxaard in iU history the cltr stood almost helpless aU of today and tonight. It will be hoars before It can die Itself out and approach normal conditions. Swept by a storm of wind and snow which had whirled its way. up from th. Southwest. Chicago aw'oks Sunday to find its streets Impassably because of rreat drifts. As the day wore on these obstacle's ire and Increased in number. Serious interruption to wire service Bakes it Impossible to learn the full scope and extent of the storm, but it appears to be a combination of a heavy ram storm, drifting Northeast from Texas, encountering a cold wave beaded southwest, somewhere in the Missis sippi Valley. This changed the rain to sleet and snow and the contending winds produced a blisaard. Scatters States Saffer. The Southern storm was forced off Its course and its center Is near Evans, vtlle. Ind. It beaded northeast and Is driving furiously. The upper Mississippi Valley, the Ohio River Valley and all the territory from those points to the Great Lakes Is swept by the tempest. Alabama, part of M.sstsstppt. TenneaseV. -Kentucky. Indiana, Oblo. Illinois. Lower Mich igan ad Western Pennsylvania appear to be the worst sufferers. Trains are stalled, and r. number with terminals hers did not attempt to start . today. . The city la short of cosj. and wltt be unable to get any milk until the drifts are cleared. la many places the snow drifts are up to second-story windows. Severe Cold Wave Fallawtag. More serious Is the announcement that a severe cold wave Is following the bltxsard. This will freeze and rack down the enormous snow barriers and will further hamper transportation. For hours the wind blew at the rate ef 64 miles an hour. It packed the anow into hard mounds and billows. These, coupled with the fact that times, owing to the failing snow. It was dtffloult to scs any distance, were the cause of numerous accidents. The storm struck the city at mid night iwturday. IT Increased rapidly In violence and continued with all l.s force for nearly IS hours. Late this evening the wind dropped to 35 miles. but there was little change in the snow taU. (irrat Distress Aatlcipated. What probably will be the real hard ship of the storm, from the standpoint of suffering, mar come tomorrow. Tba weather forecast Is that the. mercury will drop to 1 - degree, and it la feared the coH. with the fuel shortage wnlch eil.tji even among the more fortunate, will be attended by a vast amount of human distress In fact, charity organ isations were busy today preparing for Just surh a situation. Early in the day the city found itself facing these problems: Mail trains all late: some abandoned. Klevated tran service Irregular. Suburban service Intermittent, the 4loacluld on 2'ss a Column 1.) J GREAT MILLING PLANET OP- EKATED TO CAPACITY. When' Albers Bros. Milling company 'erected their Urge mills in this city, they provided t for the increased demands the future was expected to brine; and established plant of greater capacity than the trade required at the time. Growth of business 4 in the last year, however, obliged the company to operate its plant and night crews until a few weeks ago, when the usual quiet , season permitted a reduction of output. , J The company employs 156 per- sons, as against 142 a year ago, and has a monthly payroll of $16,000, which is an increase of about $2000 a month in wage ! distribution. i In the last year this company T built a new modern mill at Oak- land, CaL. representing an in- vestment of many thousands of dollars, and is equipped for meet- ing all requirements of the trade, 2 which are promising for 1918.. Secretary McAdoo Calls Attention to Necessity for Early Filing of Applications. WASHINGTON. Jan. . More than $2,000,000,000 worth of Government in surance has been bought by American soldiers and sailors. Secretary McAdoo announced In a statement urging upon the men necessity for filing applica tions for policies before the expiration of the time limit set by law. Men who Joined the colors before last October IS must apply for Insurance before Febru sry 12, 11I. and those Joining after October IS must msks application for insurance within ISO days -after enter Ing the service. Soldiers and sailors who are depend ing on the automatic Insurance pro vided by the Government until Febru ary 12. Ills., are warned that this is only partial and limited protection. It represents only slightly more than 1 1009 of Insurance and is payable only to a wife, child or widowed mother, whereas the insurance bought can go aa high as $10,000 and Is payable to a wife, husband, child, grandchild, parent, brother or sister. The automatic Insur ance wl'.I not be in force after Feb' ruary 1 SOLDIERS' PkT HELD UP Many Suffer Because Roll Has One Name Too Many.. WASHINGTON. Jan. . Difficulties of a clerical . nature .have served 'in some Instances to delay paymesft of roops In the United States, Secretary Baker aid. In discussing reports .of he failure of soldiers to receive their money on lime. An investigation ord red by. Mr. Baker disclosed that th. greatly en- Llargei Army enrollment and unusual foreign names that appear noon such muster lists naa resulted in me trans cribing to the payroll of a name which did not appear upon muster roll. The auditor would not pass the roll until the error ha been corrected. V1UTT0N NOT RESTRICTED cod Administration Says Eat Sheep . Except on .Meatless Days. f SALT UKE CITT, Utah. Jan.- An official bulletin,, issued by the United States Department of Agricul ture, which was received by s. w. Ma ture, secretary of th NationaJ Wool Growers' Association, makes an em phatic announcement that the United States Food Administration is not re stricting the use of mutton or lamb in any way save on the designated meatless day of each week. Consumption of mutton and lamb Is to be one of the subjects discussed at the coming convention of the National Wool Growers" Association. FREE PASSAGEJS GRANTED Government to Bear Expense of Transporting Marine Graduates. BOSTON, Jan. C. The demand for of ficers in the new Merchants' Marine prompted the United States Shipping Board tonight to announce that gradu ates of the Government free navigation or marine engineering schools would receive transportation and allowance (or subsistence when ordered to report for duty. Navigation schools bave been opened by the Government at 10 points, and hereafter a graduate of the San Fran ciaco school applying for a. berth on a steamer from New York will travel at the Government's expense. DISLOYAL ACT STIRS MEN North Bend Joiners Walk Ont When E. T. Mcttler Spurns Legion. NORTH BEND. Or- Jan. C (Spe ciaL) Because L. T, Mettler. a Joiner at the Kruse & Banks shipyard here, would not sign the membership roll of the Loyal Legion of Loggers and Lcm bermen. the rest of the joiners em' ployed at the yard struck yesterday and refused to resume work until action had been taken. As Mettler persisted In his refusal to sign the roll he was discharged, together with his son. The me'h then resumed work. Mettler had been employed in the yard, for more than two years. WAR WORK CALLS WOMEN Many r Positions Available in Both Array and Navy Departments. WASHINGTON. Jan. . Increased needs of service caused by the war, it was announced last night, have thrown open to women positions in the Navy Departmeat aa mechanical, marine en gine and boiler draftamen. The Quartermaster's Department of the Army is employing women as in spectors of clothing. CIVIL. WAR GENERAL DIES Title of Brigadier Worn by John C. Kennedy Before Age of tt DENVER, Jan. (. Brigadier-General John C. Kennedy, who won hie military title in the Civil War, died at his home here today, aged "t. He was former Adjustant-General of Colorado and bad been a resident of this state for 40 years. Germans Refuse to Go , to Stockholm. TROW INSISTENT ON PLAN Decision of teutons Arrived at During Crown Council. BERLIN MUCH DISTURBED Although Reichaias Parties In the Main Are Supporting the Govern ment. Considerable Political Unrest Is Prevalent. (By the Associated Press.) The peace negotiations between the central powers and the Bolsheviki gov ernment in 'Russia nave been "tempo rarily suspended", by the German's. From the meager advices received. It appears the. rock upon which-a continu ation of the pour parlcra split was the demand of the Russians that the con ference be resumed at Stockholm, In stead of at ZJreat-Utovsk. Trotsky Xmt Satisfied. Dissatisfied with the proposals for peace made by the Teutonic allies he- fare the recess of 'he Brest-Lltovsk conference; Leon Trotsky, the Bolshe vik! Foreign Minister, had been Insist ent on the' deliberations being held on neutral soil instead of at the German eastern headquarters. The Germans, however, had .been equally as firm in their determination not to treat with the Russians at any other place than Brest-Lltovsk. Declaloa Reached at Bert I a. German advices Saturday were to the ffect that the Bolsheviki delegates, on finding that the representatives of the Teutonic allies were at Brest-Lltovsk awaiting them, had started for this town, but-nothing has comelhrough to how that these bad any foundation In fact. , The decision of the Germans to dis continue the sittings was arrived at urlog a crown council held in Berlin Satarday. which was attended by Field Marshal Vba Hindenburg and General von Ludendorff, first Quartermaster General. . . Cerssaas Fesur Iatrtgwe. A belated dispatch from Berlin gives as the reason for the refusal - of the Germans to go to Stockholm for fur ther conference the fear that British. French and American diplomats In the Swedish capital would by intrigue ren der all endeavor futile. Dispatches from Berlin indicate that, although tho Reichstag parties In the main are supporting the government, considerable political unrest Is preva lent and that strong efforts are being made to hold the Socialists in line. The Socialist organ in Berlin char- (Concluded on Page 4. Column .) u at?4m-s wit. etc -PX 7 N. VjCj c'le 'S r. D T&j-rj? . , esj;JC Deep Concern Now Fclt Lord Khondda Anxious Compulsory Rationing Starts In England. WASHINGTON, Jan. 6. The food sit uation in the allied countries of Europe is jrraver than it has been at any time since the beginning of the war and Is giving American Government officials deep concern. Official reports picture extreme rood short ages in England, France and Italy. The fact that conditions In Germany and Austria are far worse offers the only grounds for optimum In viewing the situation. In England and Fiance the situation is described as critical in a cablegram io the food administration today from Lord Khondda, the British food control- j ler. which concluded with these words: I view the situation with grave anx iety." In Italy conditions are not as good perhaps as io either England or France. Compulsory rationing will be started in England immediately with meats the first commodity to be put under con trol. Distribution of butter and mar garine will be taken In hand next and oilier foods will be added as they be come scarcer. All of the principal food stuffs will be rationed by April. ITALY . INCREASES ARMY Men Previously Exempted Ordered to Be Further Examined. WASHINGTON. Jan. 6. Italy( has adopted a drastic new policy to increase her fighting forces. Physical require ments bave been modified, and all men between the ages of 18 and 44 years previously exempted "lor defects are of' dered to present themselves for further examination. Those accepted will be mustered in the army January 15. It Is estimated the decree will bring moVe than 600,000 men to the colors. COLFAX FIRE LOSS $23,000 Kincaid Implement House and Col , fax Creamery Are Destroyed. COLFAX. Wash.. Jan. 6. (Special.) Fire early today destroyed the Kincaid Implement house and Colfax creamery, causing a loss of about 133.000. The fire started In the implement house and machinery valued at 2J,000 was burned. The Colfax creamery loss Is estimated at $;000. The two buildings - were valued at ?o00. The losses are partly covered by insurance. BEET SUGAR PRICE TO RISE Wholesale Price to Be Uniform tVlth That of Ganc Sugar. DENVER, Colo., 'Jan.. 6. The whole sale prico of beet sugar is to be raised 10 cents a hundred pounds under order from the National Food Administration, according to announcement from local sugar concerns. The new price will be $7.8$, the same as that for cane sugar. The rise, it Is said, was made to place beet and cane sugars on an equality. , SPEAKING OF THAT SIX-CENT CARFARE. Total Earnings Esti mated at $750,000. RATES RANGE T0 15 PER CENT Year's Business Is Satisfac - tory Throughout. SURPLUS FUNDS INCREASED General Strengthening: of Financial Institutions for 1918 Indicated by Analysis and Few Changes In Management Forecast. Fully $600,000 was" or will be paid out by Portland banks as dividends to their stockholders for the year 1917. The dividends and sums set to surplus and undivided profits probably will be more than $750,000. This index to the -earnings of the local financial institutions is two-fold In Its importance this year, and is so regarded by banking students here- and elsewhere. It shows that the amassed local capital represented by more than $100,000,000 In deposits, is working, de veloping industries and mercantile business, and also that business condi tions are not only healthy but re growing. Banks which last year and the year previous held needlessly large reserves are now lending liberally to meet the local demand. . In addition the good offices of the Federal Reserve System In making It possible for the member banks to operate on a broader scale and at the same time remain per fectly liquid, are reflected in the In creased service tof the institutions. Excellent returns on capital invest ments were made by all of the city's larger banking institutions and - con trasts favorably with 1916, when some of yie banks' passed dividends. The av erage dividend returns In 1917 on the entire aggregate capitalization of $8, 000.000 was better than IVt per cent. definite figures from several of the in stitutions not being given out. v Surplus Fnads Swelled. Dividends of 8 per cent or bette were paid by. all of the large- banks. Among the smaller institution lower dividend payments were occasionally recorded. However, in many Instances where no direct cash disbursements were made to the stockholders these institutions set aside sums to surplu and undivided profits and in one or two cases took over real estate on which loans had been made." In the case of two newly organised banks no divldendswere paid out, but qilite sat isfactory earnings are report-!. In the National banks final dividends for 1917 were declared in time to place the payments in the hands of the stock holders by January 1. The United States National sent out its disburse ments In the form of checks to reach (Concluded on Page 4. Column 2.) Aerial Cordon" Circling Over City Sends Enemy Planes Elsewhere. Damage Done at Castcl. , (By the Associated PreM. ITALIAN HEADQUARTERS IN NORTHERN ITALY, Jan. 5. Padua was spared another air raid last night, largely through the daring of Italian aviators, who went into the air an hour before moonrise and formed an aerial cordon around the city, meeting enemy machines as they advanced. The enemy aviators, seeing the heavy concentration; diverted their course, going to Mestre. Bassano and Castel, France, where they caused some cas ualties and considerable loss at the last place. British aviators are doing especially good work. Their latest exploit was the destruction of an enemy balloon at Susegana aift the bringing down of an enemy airplane by gunfire. The artillery action along the moun tain, and Plave- fronts is intermittent, and no longer shows the intensity of a big offensive. . Along the Upper Piave enemy bat teries have been virtually silent for a week. Indicating either a shortage of ammunition or a possible movement of forces-westward to other fronts. Weather conditions '.ontinue abnor mally good, with 'clear days and nights. STARVATION TALE IS TOLD German Aviator, Who Deserts to Greece, Says Army Morale Low ..WASHINGTON, Jan. 6. A dispatch to the Greek legation here says that a German aviator, a graduat- of Berlin University, who had decerted and ar rived In Greece, told of starvation in Germany and the cruel treatment ol the Greek population In Macedonia and Thrace, occupied by the Bulgars. "Questioned by the Grtek authori ties," said the dispatch, "the .aviator said "that daily a great number of deaths occur in Germany due to star vation. Coffee and fats are scarce. Coffee, and bread are substituted by acorns. ine morale or the German army is low because of insufficient nourish- ment due to the prolongation of the war. Mutinies-and threats to officers occur daiiy." LADUri OLArSlt: JAIL UrcNd Complainant Bails Prisoner Out inlvolver struck him in the neck, passing Order to Put Him to Work. After causing the arrest of Walter Pfyl on a charge of larceny of an automobile truck, E. J. Hoover ap peared at the central police station yesterday morning and bailed the pris oner out In order to Dut him to work at the complainant's creamery, 475 Jef- ferson street, where he has been em ployed. The prevailing scarcity of labor caused his employer to put up $150 cash bail. Pfyl, it is said by the police, used the auto truck to take himself and two friends, Walter fcrg and John Zyback, to a dance. All three of the men landed in Jail. INDEX OF TODAY'S NEWS The Weather. YESTERDAY'S Maximum temperature, 57.4 degrees; minimum. 4tf.z. Gegree. TODAY'S Rain; fresh southerly winds. Daring; Italian aviators protect Padua from air raid, iase 1. Hunger endangers success of allies. Face 1. German peace ship splits on Russian rock. i'age 1. Foreign. Lloyd George's speech unites and strength ens jsntisn in war. fag tf. National, m American soldiers and saildrs take out- 3,- 000,000,000 worth of insurance. Page 1. Railroad bill to have right of way in Con gress. Page 2. Holding up freight cars to be expensive here- aiter w snippers, .rage 3. Domestic. Chicago in grip of worst blizzard in history- Page 1. American labor to wage war on an ti-Amer ican propaganda. Page 5. Cardinal Gibbons holds annual reception. Page 5. Mrs. Norman DeR. Whftehouse going abroad to tell Oeraians United States, war aims. Ogden Armour resents statements credited to Counsel Heney, of Federal Trade Com mission. Page 4. ' Pacific Northweat. Disbarment proceedings against Mayor Gill, of Seattle, start today. Page a. - Grant - Smith - Porter Brothers Company awarded contract to furnish Government with 100,000,000 feet of airplane spruce. Page o. Kelso scene of fierce gun fight between Town Marshal and four fleeing jailbirds. Page 1. Sports. Alexander, of Philadelphia. Is most effective pitcher in National League. Page 10. Johnny Powers, owner of Los Angeles team. has visions of winning coast pennant. Gun Club events bring out bi attendance. Page 11. BUI Kodgers dickers with Sacramento. Fags 10. National baseball commission .to hold an nual meeting at Cincinnati tomorrow. Page ID. Fort Land and Vicinity. Frank J. Steinmetz killed by accident while mnting. Page 18. Howard Sharp writes of conditions at Camp Mills during last days there, rage . Draft board begins work of adjudicating appeals from registrants.. .Cage lis. Campaign to raise S75.000 for war work set for this week, f age o. Theater speakers will explain war Income tax. Page 7. Schooner Forest Home arrives with Austra lian wheat. Page 11. Pastor recalls bright pages OI Portlands history. Page lo. Portland banks pay dividends of $600,000 in 1917. Page 1. , , American woman's letter casts sidelights on Guatemala disaster. Page 4. - Soldier brings to Portland frrat border service medal seen here, page 11. Six thousand thrUled by.addresses of Cana dian officers. Fags 1Z. Three local fashion models lend attraction to play at Baker. Page ltt. Dramatic Incident stirs First Methodist Church' Congregation. Page 14. Weather report, data and forecast Page 14. Kelso is Scne of Lively Gun Fight. OFFICER BRINGS DOWN MAN Marshal Hull, Single-Handed, Halts Four Fugitives. p 1 1 1 I CTC iPIIT Du LLC I O OCIM I IN REPLY Three Criminals Wanted in Tacoma and Two Companions Taken. Only One Man Out of Party of Six Escapes'. KELSO, Wash., Jan. 6. (SpeclaL)-r Four dangerous fugitives from Tacoma, where they had broken Jail, together with two men who were accompanying them south with an automobile, were halted by City Marshal Ed Hull here just before midnight last night. After a thrilling pistol duel in the heart of the town, five of the party of six were captured. One of them, Tom French, was probably fatally wounded by - a bullet from Marshal Hull's revolver. Word from Tacoma that the fugitives were supposed to be heading south caused Mr. Hull to be on the alert for the party. He finally located the auto mobile in a garage in Kelso, where it had stopped to have repairs made to the brake. . Four Ordered to Halt. Going into the street. Marshal Hull saw the four men who had broken jail. He called owthem to halt. Tom French,' who had been in the Tacoma jail under sentence of from five to 15 years for burglary, jumped behind a tree and opened fire on the officer, who promptly replied I One shot struck French's right hand. knocking the automatic pistol to the weapon and had Just regained it when another shot from Marshal Hulls re out through the righ shoulder. Marshal Is Reinforced. At this Juncture Carl Hays, a logger. came to the aid of the officer and when he opened fire, the fugitives scattered. John Johnson, who had 'been held 1n connection with the postoffice robbery at Cle Elum, surrendered The others fled down road toward Kalama. Marshal Hull telephoned at once to Sheriff Clark Studebaker, at Kalama, live miles distant. Sheriff. Studebaker, assisted by Deputy Sheriff Dunbar, soon captured Arthur Grier, who had been sentenced to from 1 to 15 years for larceny, and the two men who had ac companied the fugitives by automobile. ' Suddotfc Still at Large. Sam Suddoth, who had been held at Tacoma on a vagrancy charge,, had not yet been apprehended last night. The prisoners and two companions were all taken to Tacoma today Di sherit! Studebakerjand Marshal Hull. The two men who accompanied the prisoners have not yet been identified, but they were returned with the fugi tives and their case will be investi gated by the Pierce County authorities. In all, 11 shots were fired in the melee at Kelso, five by Marshal Hull, a like nunber by French, and one by Carl Hays, the logger who aided the officer. ' BANKER IS SUED BY GIRL Breach of Promise of Marriage Al leged in Suit for $250,000. INDIANAPOLIS. Ind., Jan. 6. Allen Gray, president of the Citizens Bank at Kvansville, was sued for 250,000 damages and his brother, William Gray, connected with the Citizens' Trust Company, at Evansville. was sued for $100,000 in the United States District Court here Saturday bf Miss Amy CConner, of New York City. Miss O'Connor alleges that William Grey caused his brother to break his promise to marry her. She asks the $250,000 for alleged breach of promise to marry and the $100,000 for the al leged interference by William Gray in her love affairs. JAPAN FIRM FOR ALLIES """ v Shall Xot Be Lost. TOKIO, Jan. 6. Count SeikI Terauchi, Premier of Japan, in replying to tho New Tear's message of David Lloyd George, the British Premier, sa": 'Our fixed resolve is that the jewel of civilization shall not be lost to the world. We congratulate ourselves that you can say efforts or he imperial Japanese navy have contributed toward the accomplishment of this great end." BIG GUNS CONTINUE FIRE Italian. Front Scene of Great Aerial Activity Yesterday. HOME, Jan. S. Austro-German and Italian big guns maintained a vigorous fire along the entire Italian front yes terday, says today's War Office announcement- There was great aerial activity.