VOL. LIX. 0. 18,12. PORTLAND, OREGON, WEDNESDAY, FEBRUARY 19, 1919. PRICE FIVE CENTS. E. I, TRIAL OF CREAMERY 'COMPANIES OPENED EE ACTIVE WORK ON NEW MILITARY PARTY IM LABOR LAYS PLANS TO COMBAT BOLSHEVISM SHORT-TERM NOTES WARSHIPS IS ASSURED EE VIOLATION OF SHER-UCf AN'TI TRCST LAW IS ALLKGED. BCILDIXG OF 16 SEA FIGHTERS RESUMPTION OF ALL FEDERAL TO START SOOX. PROJECTS SOUGHT. nous IN TUMUL HUMS LIMITES FAVORED OA VOTES ROAD BONDS 1 LEG SLAT ON 1AIUY ENRAGED Corruption Charge by Mr. Schuebel Roils Members. NEAR-FIGHT IS PRECIPITATED Bribe Offered to Back Bill, E. E. Smith Asserts. DEBATE LASTS SIX HOURS On Final Vote Ten Million Dollar Highway Measure Goes Through ' by a Vote of 51 to S. STATE CAPITOL, Salem. Or, Feb. (Special) Wrath, aspersions on the character of members of the house. allegations of attemoted bribery, per sonal words and almost physical en counters marked tne course of the 810,- 000.000 road bond bill today before it was passed by the bouse by a vote of 1 for to 5 against. Chris Schuebel. Clackamas county representative, aroused the anger of almost the entire house membership when he charged that bitulithic was "trying; to put something over." Fol lowing; this statement, a personal com bat between Mr. Schuebel and Repre aentatlve Bean of Lane county was averted only by intervention of Ser- geant-at-Arms Singer and others. Members Are Angered. Later Representative Stewart of Fossil and IT, K. Smith of Multnomah county reached the verge of a clash. and enough bad blood was created in the course of the six-hour debate to last out the remainder of the session. "Mean, low, dirty," were among the adjectives burled at Mr. Schuebel by A. A. Smith of Baker. Representatives Dennis of Yamhill and Jones of Lincoln and Polk also expressed themselves angrily and forcibly following Mr. Scbuebel's statement. Mr. Senaebcl Starts Debate. All was goinr well enough until Mr. Schuebel. following a warm debate be tween Representatives Hare and Bean, charged that "bitulithic is trying to put something over." The statement came at a time and in such a manner that Mr. Bean construed It as an insult. White with anger, ha demanded: "What do you mean. Whom do you mean?" He started across the aisle toward Mr. SchuebcL The latter seeing the repre sentative from Lane furious, removed his eye glasses and called: "Keep away from me for' the present." Meanwhile Sergeant-at-Arma Singer blocked Mr. Bean's progress. He was reinforced by Representatives Hare. Ben Jones and others who pulled Mr. Bean back by the coat and arms. Representative Schuebel then launched an attack against the pat ented paving people, accusing them of having "wine, m-hisky. women and cards" at a hotel: that one night fire hose was dropped on a man. nearly killing him. In conclusion Mr. Schue bet said a member of the house had been approached and offered money. Members Voire Protest. Cries of "Name the man" came from all parts of the hall and members lumped to their feet, moving toward the Clackamas representative. "Are we to stand here and be abused by this man?" Representative Dennis demanded, and as the confusion was increasing. E. E. Smith prose and an nounced: T am the man." Then Representative Kubll moved that a committee of 1? be appointed to investigate, but as the house was in committee as a whole it was ruled out of order. Later In the day E. E. Smith gave out more details. He stated that last Thursday he was for the bond bill with tho emergency clause, but Fri day morning a friend offered him mon ey if he would rote for the bill. "It was unfortunate for me." ex plained Mr. Smith, "that Mr. Schuebel made the statement he did this morn ing; It was mistaken judgment. I cast no aspersions on any member of the legislature, directly nor Indirectly, nor on any corporation, contractor or any individual. I don't want to be placed in tjje position of Mr. Schuebel and have Louie Bean or some one else try to tear my can off. 1 have no evidence to corroborate my word. I was approached Friday morning and offered a consider able sum. I am humiliated that my character is such that out of the 60 members of this house I was selected lor such a thing." Mr. mlth Is Retlrrat. "Will you give his name?" asked Mr. Haynes. chairman of the committee of the whole. "I will not." emphatically answered Mr. Smith. "He is a friend. I could have taken the money and waved it here now and made a grand stand play, or I could have dragged the man in here and forever ruined him and disgraced his family. The money was offered for a vote against senate bill ;." Mr. Smith advised against Mr. Kubli's proposal for an investigation, taying the investigation would get nowhere. He also served notice on everyone that when his vote is wanted the way to get it is to discuss the proposition, and if the bill Is right he will' support it. Subsequently in offering an amend ment directing the state highway com mission to build roads, only by force account rather than by contract, Mr. Smith discussed the unsettled labor Letters Introduced at Boise Trial to Show Espionage on Business of Competitors. I BOISE. Idaho. Feb. IS. (Special.) Alleging violation of the Sherman anti-trust act and unlawful combtna tion in restraint of trade In handling the commodity of butter, the govern ment today opened the trial of big creamery concerns operating in the northwest The defendants are: A. P. Hennlngsen. Carl Hennlngsen. Carl Shallinger and R. A. Goodhue, officers and directors of the following com panies, also Indicted: Hennlngsen Produce company. Butte; Shallinger Produce company. Spokane; Haselwood Creamery company. Portland; Klock Produce company, Seattle. The government introduced 101 let ters as evidence to show that the de fendants were maintaining a system of espionage over the business of their competitors, giving false weights and tests to producers, attempted to bribe agents of common carriers to divert raw material to them and sought to obstruct the laws. W. F. Jansen, late president of the Jansen Creamery company, but now president 6f the Mutual Creamery com pany, who pleaded guilty to conspir acy and overt acts as charged under the indictment and paid a fine of 110, 000 recently, was the first witness. He identified the 101 letters as being writ ten to him and to others engaged in the dairy and produce business. The letters were introduced as evidence by Leon Bone, special agent, departmen of justice, who is also handling a part of the case as an attorney, and dated as far back as 1912. There were some objections made by attorneys for the Hefenna rearardina- the admittance oi the letters prior to the time outlined a the indictment, but Judge Dietrich overruled them. One of the letters tended to show that an organisation of farmers at tempting to establish a creamery were in the way of the combine and were in formed that "a word to tho wise was sufficient." whereupon they kept out of the creamery field. Temporary Military Provi sions Taken From Senate Passes Bill for V tary Enlistments,' $ 175,000 IS TO BE MAXIMUM PRESS SOCIETY ELECTS Constitution Revised and Board of Directors Created. rHtfAno. Feb. 18. Tho Inland Daily Press association at its annual eeting today revised its constitution and created a board of directors in addition to electing regular officers. Tha now.xnaner heads are trying to meet the problems of the reconstruc tion oeriod. but most of them em phastxed the high cost of materials and the. lack of efficient help. Reconstruction problems, including rnwrnlon and reduction oi over head expenses, were topics of discus sion by John Sullivan, secretary and manager of the Association of National Advertisers: Lincoln Palmer, manager of the American Newspaper ruDiisners association: Frank O. Throop, Daen- port. Ia.. and others. A. W. Peterson, Waterloo tia.j Courier, was elected president, and Will V". Tufford. secretary-treasurer. BURNETT IS FOUND GUILTY Shipworker, Accused of Murdering Wife and Children, Calm. OLT.MPIA, Wash., Feb. 18. (Special.) Norman E. Burnett, shipyard worker, tonight was found guilty of murder in the first degree after less than two hours' deliberation by the jury. Four ballots were taken on the question of degree of guilt. Burnett on the wit ness stand had removed all doubt of murdering his wife and two children by confessing and describing the crime. Burnett had expected the verdict and showed no sign of emotion on hearing it. Sentence to life imprisonment, the maximum penalty in this state, will be passed after the ten days allowed for motion for retrial. Whether an appeal will be taken was undecided tonight. The temporary insanity defense made on behalf of Burnett was heavily at tacked today by Prosecuting Attorney T. L. O'Leary In his address to the jury. NAVY YARDS TO BE VIEWED House Committee to Spend six Weeks in Coast States. WASHINGTON. Feb. 18. A tour of all Pacific coast navy yards will be made next month by the house naval committee. The party will leave Washington on March 8 and be gone six weeks or longer. It will include Representative Padgett of Tennessee, chairman; Rlor- dan of New York: Oliver. Alabama; Venable, Mississippi: Vincent. Georgia: Wilson, Texas: Browning. New Jersey; Kelley. Michigan: Peters, Maine; Hicks. New York; Kettner of California, and McArthur of Oregon. The Pacific coast members were asked today to arrange the itinerary. Vessels lo Be Completed Within Four Years After They Are Started, Says Admiral Taylor. WASHINGTON, Feb. 18. All of the q .apital ships already authorized for j 3 navy will be under construction PtACt-T Mt ARMY S WANTF ?- Bear-Adm.ra, Taylor, . jhief of construction, today informed the senate naval arralrs committee dur Ing consideration of the naval appro prlatlon bill. These ships will be completed within four-years -at a maximum from th time they are started. Admiral Taylor estimated. The committee restored to the bill provision continuing wartime increased pay in the navy, which was stricken out by the house on a point of order. ' Discussion of the additional building programme provided in the house bill at the request of President Wilson was deferred. The committee, however, ap1 proved appropriations for improvements to navy-yards totaling 82,800,000, which Admiral Taylor said was necessary to provide for increased building econom ically'and expeditiously. Tho yards af fected," with amounts, are: New York, 8250.000; Philadelphia, 82,300,000; Norfolk, 8300,000. Replying to questions of Senator Pen rose of Pennsylvania about the proba ble disposition of the surrendered Ger man navy. Admiral Taylor said he was Informed that some of the submarines already had been divided among France, England and Japan. "Didn't we get any?" asked Senator Lodge. . "We will have to get a few samples," replied the admiral. Admiral Taylor said he understood about two-thirds of the German battle ships ' were in possession of the allies and America, but that the German crews were still aboard. He said the surrendered ships would prove of little- value save as 'coal barges" and that as "scrap" they would be practically worthless. They could not be used for fighting purposes by any nation except Ger many, he said, because of their differ ence in type from allied warships. Senate Measure Goes to Conference and Becomes Effective Upon Approval by President. ' WASHINGTON, Feb. IS. Legislation providing tor a temporary military es. tablishment of . about 640, 0d0 officers and men during the fiscal year begin ning next July 1 was eliminated from the annual army appropriation bill to. night In (he house, after passage of the senate bill for resumption of voluntary enlistments in the peace time army, which would be restricted to the maxi mum of 175,000 men authorized in the national defense act of 1916. - The senate measure now goes to con ference and will become effective upon its approval by President WIT an. The army bill also was adopted by the house without a record vote and now goes to the senate with its com pletion there at this session regarded by many leaders as doubtful. It carries a total of 81,070.000.000 for the war de partment for the 12 months after June 3ft. Senate Bill Explained. It was explained by members of the house that the senate bill did not af fect the present wartime army, which, under the selective service act. must be demobilized within four months after peace formally is declared by presidential proclamation. Decision of the house to consider the senate measure was by a vote of 172 to 162. .Chairman Dent, by direction of the house . military committee, had asked for a rule to make the temporary army legislation in the regular appro priation bill in order, but the rules committee took no formal action on the request. Instead, it voted, 7 to 5, to report a resolution giving the senate measure the right of way. Ten republicans joined with 162 democrats in voting for the resolution in the house after a sharp debate. Before adopting the senate bill. the house amended it so as to provide that recruits should be enrolled in the regular army for only one year with out further service in the reserve. Their pay was fixed by another amendment at 830 a month, the war-time basis in the army. Recruiting Bill Adopted. Republican Leader Mann, in explain ing the votes of 155 republicans against adopting the rule to consider the senate bill, said opposition was not against the bill, but was a protest against the failure to consider a temporary pro gramme that would enable the quicker return of troops from Europe. The re- MAYOR HANSON COLLAPSES Seattle Executive Suffering From Nervous Breakdown. SEATTLE, Wash.. Feb. 18. (Spe cial.) Mayor Ole Hanson at his home today - is suffering from .a nervous breakdown, declared to be the result of his strenuous work during the gen era! strike. The mayor was stricken last even. ing. A physician is in almost constant attendance. He will be confined to his bed for several days at least,' accord ing to a bulletin issued tonight. Seattle's mayor was to have been the chief speaker Thursday at a meeting of the Portland Progressive Business Men's club. Regrets were telegraphed by his secretary. G. A. Conkling. (Concluded on Page 5, Column 2.) CANADA TO GIVE CREDITS France and Roumania Arrange for Loan of $25,000,000 Each. PARIS, Feb. 18. Contracts have just been concluded by which Canada will furnish credits of 825,000,000 each to France and Roumania, the credits to be expended in the purchase of important necessities in Canada. Negotiations for a similar loan, it is said, are under way between Belgium and Canada. New Armistice Terms De clared Degrading. ERZBERGER HOTLY CRITICISED Clause Limiting Size of Army Is Held Intolerable. OTHER . FEATURES DECRIED Supervision of Control of Ammuni tion Factories Galls Party Head ed by Marshal Hindenbnrg. LONDON. Feb. 18. (By the Asso ciated Press.) Advices received from Berlin, by way of Basel, today are to the effect that the pan-German mil itary party, headed by Field Marshal von Hlndenburg, bitterly resents the new clauses in the armistice, especially those limiting the German army to the size of a simple police force, tho super vision of control ' of ammunition fac tories and the demand that Germany pay the expenses of the allied armies of occupation on the Rhine. These conditions, it is compiamea. will throw out of work thousands of German officers, from generals down ward, while the army of 600.000 volun teers reported by the German press to h, been organized must be ais- banded. Enberger Hotly Criticised. The advices add that indignation against Mathias Erzberger on the part of the military authorities is increas ing. WEIMAR. Monday, Feb. 17. (By the Associated Press.) The German cab inet voted early Sunday morning to reject tho allied terms for the re newal of the armistice and take the chances of an allied military advance being ordered. After consultation with party leaders, however, tne aecision w chsntred. and on Sunday night or- ers- were Issued that the armistice do igned. Agreement Held Degrading. It appears that the government con sidered one of the aiuea conamons as capable of being construed to mean that the allies, if they found It neces sary, might occupy an uermnuj, tho cabinet is considered to have felt that ultimately there would be such an occupation and that it might be as well to bring things to a crisis now rather than sign an agreement which considered was degrading in its terms. The cabinet originally went Into ses sion Saturday on receipt or a Delated copy of Marshal Foch's ultimatum. The ministers were in conference until 2 clock Sunday morning. "They then took a recess until 3 o clock, lowara morning they tooK a unai voit, wnica was in favor of a declination to sign the terms. People's Representatives Rule. It was felt, however, that all the German parties had a right to a voice in the decision, and since there were Prohibition of Immigration for Four Years and Payment of Sol diers Recommended. NEW YORK. Feb. 18. Resumption of all government work suspended because of the war, payment of soldiers' wages until they obtain employment, devel opment of government lands with finan cial assistance provided to the ten ants and prohibition of immigration for four years are recommended in the draft of a legislative reform programme adopted and made public by the exec utive council of the American Federa tion of Labor. "If these measures are carried into effect," says a statement made by Frank Morrison, secretary, "it will pre vent a critical situation and destroy a fruitful field which tho representa tives of the I. W. W. and the bol shevik! will have for furthering their propaganda." The council expects to present these reforms to congress within a few days. Several members of the council left for Washington tonight to participate in the conference tomorrow between Sec retaries Baker and Wilson, and repre sentatives of the Building Trades Em ployers' association of this city and their striking basic building trades j workers. NEW YORK, Feb. 18. Dr. George Klrchwey, state director of the United States employment service, expressed the belief today that less than 10 per cent of the women' who held positions during the war would lose them now that the war Is over. "We are not advising employers to release their women workers now that the war is over," he said., "We want them to make room for soldiers and also to retain as many other workers as possible." He predicted that the present labor surplus would change to a labor scarcity within six months. Victory Drive Expected to Open by April 21. CONGRESS WILL FIX TERMS Four Kinds of Issues Under Consideration of House. ACTIVE CAMPAIGN PLANNED Quantity of Non-Xegotiable Securi ties Probably AVill Be Lim ited to $7,000,000,000. MANY BIG GUNS GIVEN UP List of Army Equipment Surren dered Made Public. LONDON, Feb. 18. (British Wireless Service.) On behalf of the government it has been announced in the house of commons, in answer to a question that the following equipment of the German armies had been surrendered to the British up- to February 9: Heavy guns, 2500; field guns, 2300 machine guns, 25,000; trench mortars, 3000; airplanes, 1700; locomotives, 4065 motor trucks, 1220. Up to February 14 the Germans had surrendered to the British 126,828 freight cars. DEPORT ALIBLSAY WOMEN Punishment for All Who Failed to Seek Citizenship Demanded. BUTTE, Mont, Feb. 18. Resolutions asking the government to deport all aliens classed as enemies or who were eligible for naturalization during the war and failed to declare their in tentions of becoming citizens, were adopted today by the delegations of the Montana Federation of Women's clubs at the close of their convention here today. INDEX OF TODAY'S NEWS (Concluded on Page 2. Column 1.) OILING THE WATERS. BOSTON TO GREET WILSON iieociudcd on 6 coluiua l- Mayor Peters Holds Long-Distanco Conference With Secretary. BOSTON. Feb. IS. Mayor Peters pro ceeded today with his plans for the re ception of President Wilson and Mrs. Wilson on the assumption that the steamship George Washington, on which" they are returning from France, would arrive early next Monday. He had a long conference "by telephone with Joseph P. Tumulty, the president's sec retary, who is at Atlantic City, during which the tentative programme, as out lined by the mayor, and Governor Coolidge yesterday, was discussed. No new features. Mayor Peters said would be added to the programme with out the approval of Mr. Tumulty. L The Weather. TESTERDAT'S Maximum temperature, 41 degrees; minimum. 34 degrees. TODAY'S Probably rain; moderate south erly winds. Foreign. New armistice 'terms rouse ire of pan German military party. Page 1. President Wilson declared dominant figure at peace conference. Page 4. French press angry at American critics. Page 3. Coming industrial conference raises British hopes. Page 3. Serious break between Lenine and Trotsky reported. Page 12, Americans need more room in occupied area of Germany. Page 4. National. Bhort-term notes favored for loan. Page 1. Building of new United States warships ta begin within year, rage l. Opposition to proposed league of nations Is umlng lorm.- rage u. Oregon boys named for United States cadet- snips, rage zu. Army military bill approved by house. Page 1. Portland prepares for continued soldier welcome. Page 12. Women to tackle post-war problems. Page 12. Rotarians complete entertainment pro gramme. Page Id. Probe of losses in Argonne to go over to next congress. Page 2. Domestic. Labor lays plans to combat bolshevism. Page 1. Senate passes 833.000,000 rivers and harbors bill. Page SO. Oregon wounded New York guests. Page 2. Pacific Northwest. Trial of northwest creamery concerns opens at Boise. Page 1. Marshfleld suffers 8100.000 loss by fire. Page 10. Seattle strike still unsettled- Page 11. Sports. Corvallis wrestlers and basketball teams to meet Washington this week. Page 14. Washington defeated by James John high. 44 to II. Page 14. Catcher Boezela accepts Portland magnate's offer, rage 14. ' legislatures. House passes 810,000,000 road bond bill. Page 1. House, eager to punish Mr. Schuebel. to3-s with Oswego annexation bill. Page 12. . Idaho house votes eight-hour day for women. Page 7. Olympia recalls armory appropriations. rage l. Commercial and Marine. Apple crop nearly all shipped east Page 21. Local livestock market quiet. Page .1. Lower grain prices likely. Page 21. Five wooden steamers to carry railroad ties to Atlantic coast, rage SO. Portland and Vicinity.. Metal trades delay 'vote on support of Se attle strike, rage -1. WASHINGTON, Feb. 18. Short-term notes, maturing in from one to fivs years, would be offered In the forth coming victory liberty loan campaign. instead of long-term notes, under a tentative agreement reached today by the house ways and means committee to fix the terms of the loan by legis lation rather than to give Secretary Glass wide discretionary powers to de termine them as he had asked. At the same time Secretary Glass explained that an extensive popular campaign will be conducted as con templated regardless of the terms ar ranged by congress and that it would start not later than April 21. Financial Disturbance Feared. The secretary had asked congress for authority to issue either bonds or notes as market conditions at the time might warrant, but members of the committee concluded that a new loan Issue would necessarily carry with It such a high rate of interest that finan cial markets might be adversely af- iectea ror some time. Under the tentative agreement of the committee reported in executive session, at which Assistant Secretary- Laffingwell of the treasury was pres ent. Secretary Glass would be given the aiscretion of issuing any one of four kinds of notes to be prescribed by tha legislation. The quantity of these non- negotiable securities would be limited to probably 87,000,000,000, of which the treasury now plans to issue only about 86,000,000,000. Fonr lasnea Proposed. - The principal features of each of ths four kinds of notes proposed would ba as follows; One class would be at a low rate of interest, possibly 4 per cent, and exempt irom aa lederal taxation; one would be at a comparatively high rate, nos- reibly 5 per cent, and subject to all fed eral taxes; a third would bear a mod erate rate of interest 414 per cent was suggested and be exempt from nor mal income tax levies; the fourth would be exempt from taxation up to certain amount. These terms have not yet been de fined but treasury officials said the proposed alternatives would satisfy the treasury department and cover all pos sible terms which the treasury might choose, even if It had broad discretion. it was explained. Small Investors Protected. In denomination the notes probably would correspond with past Liberty loans, ranging from 850 up. The mem bers of the committee felt this would permit of as wide a scale as In pre vious campaigns as the short term notes would prove more attractive to small investors. The ways and means committee also ecided tentatively not to increase the authorization for issuance of bonds from about 85,000,000,000 to 810,000,000, 000. This means that the treasury will till have power to issue up to 85,000,- 000,000 in Liberty bonds at the 44 per cent of the last two loans and with the same terms. Most officials believe these securities could not be floated advantageously under new conditions, and consequently that the treasury would not use any of the re maining' authorization at this time. It is possible, however, that some of the notes to be issued would be convertible in the next three or four years into Diberty bonds of longer maturity. Legislation Draft Ordered. The draft of the proposed legislation for the short-term notes was ordered by 'the tommittee and its experts be gan immediately to consider the plans for the new measure. It is expected to be complete in a few days, with a final action to be followed shortly afterward by the committee. When tho committee's report is completed efforts will be made by Chairman Kltchln to expedite passage of the legislation be fore the adjournment of the present congress. Secretary Glass' statement, issued to night after announcement of the ways and means committees action, iouows: "The victory liberty loan campaign will begin not later than April 21. Tho requirements of the treasury are im perative and cannot be financed with out such a campaign. Wide Campaign Is Areed. "The form and terms of the securi ties to be issued remain to be deter mined. Whether they be bonds or notes, it is .absolutely essential that the widest possible measure of distribu tion be realized. This will necessitate a campaign of the same character wi that conducted in the past through Ui existing liberty loan organizations. They have pledged again Iheir unitvd support in order that the victory libert'y loan bonds or notes may be distributed as widely as possible among the Aint--ican people." This furnished the flrst official no, tlce of the date of the campaign, and disposed of reports that an issue of OTAa.hoi- ninnrL data and forecast.' Pairn 1 Oregon farms call for men and wives, notes would De iioatea mainly amonx Page 9. the bankers, rather than the general Methodists to meet in Portland. Page 10. I public ' t r