Morning Oregonian. (Portland, Or.) 1861-1937, August 07, 1919, Page 3, Image 3

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American Federation and 14
Unions for Sims Measure.
Transportation Lines to Be Operated
By and For Public; Watered
Stock to Be Squeezed Out.
WASHINGTON. Aug. 6. Enactment
of the Sims bill embodying organized
labor's plan for reorganization of railroads-will
re-establish the tlreory that
the roads should be operated for public
service rather than for profit, the house
interstate commerce committee was
told today by Frank Morrison, secre
tary of the American Federation of La
bor. Mr. Morrison said he was present to
testify that the federation stood behind
labor's plan for solution of the railroad
problem. Samuel Gompers. president
of the federation, Mr. Morrison said, ac
cepted the honorary presidency of the
Plumb plan league, organized among
the rank and file of the 14 railway na
tional and international organizations
and generally among the organizations
affiliated with the federation, "to carry
to the public and to congress the prin
ciples of the plan now embodied in the
Sims bill, which has been indorsed by
the chief executives of the. 1 railway
In all discussions of this question,
Mr. Morrison said, "it would be well
to bear in mind that quasi-public cor
porations are created for service and
not for profit. A long line of decisions,
from the supreme court of the United
States down, have invariably held that
the fundamental purpose of these cor
porations is to serve the public, and
that they are only entitled to a fair
"Hardly any one will deny that un
der private management the railroads
have been financial footballs," he said.
"The times call for new arrangements
in the management of properties that
are only made possible by the public's
"Aside from the application of de
mocracy in these properties, and their
handling by practical railroad men, the
Sims bill will squeeze all fictitious
value out of these properties. These
will affect living costs and reduce
charges the public must now meet, for
then it will no longer be necessary to
compel the railroads to earn dividends
on millions of dollars of watered
(Continued From First Pare.)
two New York lawyers, the witness re
plied: "I think that is not true."
The secretary thought the plan em
bodied in the league covenant was a
"decided improvement" on the Amer
ican plan. He could not go into details,
however, because he was not a member
of the commission which drafted the
Asked how expenses of the league
were to be paid, the secretary said the
league had no authority to "assess any
nation." but would apportion expenses;
and their payment, so far as the United
States was concerned, would be entirely
dependent upon the decision of con
gress. Secretary tansmg said he "had rea
son to believe" there were no secret
agreements in effect now among the
other a 1 lied and associated pdwers of
which the United States had no knowl
edge. He also said he had been "as
sured by Mr. Balfour" (the Britieh for
eign secretary), that Great Britain
favored the open door policy in China.
Trial Mat Advised.
Tire propriety of trying the former
German emperor was discussed by Sec
retary Lansing, who said the Ameri
can commissioners were unanimous in
the opinion that a legal trial could not
be had.
"Will there be a trial," asked Senator
"I didn't say." the secretary replied.
Some senators suggested that the
former, emperor should be required to
surrender to a military tribunal as Na
poleon did for trial under general court
marttal authority.
"That was the report of the commis
sion with which the United States dis
agreed." said Mr. Lansing.
"It seemed to me that in such a pro
ceeding there would be grave doubt
whether the guilt of the defendant
could be established, and it might let
him off scott free."
Treaty Signers Picked.
"Why was not the Republic of Costa
Rica permitted to sign the German
ireat 7 oked Senator Moses.
"I think no government was nermit
tor to sign which was not generally
recognized by ail the nations." Mr.
Lansing replied. "Mexico was not per
mitted to sign."
Senator Johnson. California, asked if
the president's 14 points were consid
ered in discussing the league of na
"I don't think they were," said Mr.
"Not discussed at all?" asked Sena
tor Johnson.
"No, we followed th terms of the
armistice largely."
Senator Johnson asked if the Amerl
can commissioners agreed before the
conference on the American draft for
the league, and Mr. Lansing said there
possibly was tentative agreement.
League- Plana Redrafted.
"Can you recall the American plans?
asked Mr. Johnson.
""I have a rather hazy idea. was the
reply, "there was a re-draft made. 1
think those have been sent to the com
roittee by the president."
"If they have the committee has not
received them," Chairman Lodge inter
W hen Senator Johnson asked on
what general plan the pace conference
worked. Secretary Lansing said, they
worked on "common sense and general
principles, with an avoidance of policy
-and expediency.
"And not on the 14 points," asked
Senator Johnson.
"Yes. I consider them common sense,1
replied the secretary.
"And did you accomplish your pur
pose to frame the treaty around them
Vs. substantially; so far as it was
possible to do so with 23 nations around
the table."
"Bargain" t Admitted.
Senator Johnson recalled that Mr.
Lansing had stated that American peace
commissioners went on the policy that
"expediency should not rule principle"
and asked whether that policy was
followed as to the Shantung provision.
"Not entirely." said Mr. Lansing.
""Was the Shantung decision made
in order to have Japan's signature to
the league of nations?"
"I really haven't the facts " about
"Could Japan's signature to the league
have been obtained without thae Shan
tung decision?"
"I think so."
Senator Johnson suggested that had
the Shantung clause not been adopted.
the treaty and league covenant would
have had another signature.
"We would have had China's," Mr.
Lansing agreed.
"So the result was simply to lose
China," suggested Senator Johnson.
Wilson Makea Decision.
"That is my personal view," the
secretary answered, adding that the
Shantung provision was accepted by
decision of President Wilson.
"The decision was his then, and not
Senator Johnson asked if Secretary
Lansing had - heard officially any rea
son for the Shantung agreement. Mr.
Lansing replied negatively, adding
that he had never discussed the matter
with Colonel House.
Questioned in detail. Secretary Lan
sing reaffirmed his statement that the
1 4 points were "substantially" carried
out. Regarding the first point, dealing
with "open covenants, openly arrived
at," he said:
e "I consider that was carried out.
Of course no negotiations can go on
between nations tnat are done in public
or with a public hearing."
Freedom of the seas, the second
point, the secretary said, did not enter
into the negotiations.
Sea Power Not Dlwcnssed.
"Isn't it a fact that England would
not let it be considered?" asked Sena
tor Johnson.
"No, it never came up."
Equality of trade conditions was es
tablished, the secretary said, as the
third point. The fourth, for reductions
of armament, he declared, was effected
by the league covenant.
"But there is no arrangement for re
duction there, except at the option of
nations," protested Senator Johnson.
"The covenant imposes a moral obli
gation," the secretary replied.
"That's quite true of the entire cove
nant. Every nation ultimately has a
veto. There is no more modification of
sovereignty than there is in the treaty
by which we guaranteed the sover
eignty of Panama."
Discussing the fifth point, relative to
Germany's colonial possessions, the sec
retary said the mandatory system would
carry out the principle laid down by
the president.
No Mandatories Accepted.
"Have any mandatories been sug
gested for the United States?" Senator
Johnson asked.
"Oh, many."
"Any that tho United States has ten
tatively agreed to?"
The Russian problem dealt with by
the sixth point could not be taken up
by the conference, the secretary said.
while the seventh and eighth, relative
to Belgium and France, had been car
ried out. The point relative to Italian
borders was to be worked out in other
The tenth, eleventh and twelfth, re
garding Balkin conditions and Turkey,
also would be worked out later. The
thirteenth and fourteenth points, rela
tive to Poland and the league, the sec
retary said, he considered carried out.
Violation Ik Admitted.
Senator Lodge quoted the principle
of self-determination laid down by
President Wilson, and Senator Johnson
asked whether that was not violated
by the Shantung setlement.
"Yes, said Secretary Lansing.
While no decision had been reached
to the United States accepting rep
aration from Germany, Secretary Lan
sing said he personally was opposed to
it. He assumed that was also ircsi-
dent Wilson's position.
Discussing the obligations assumed
under article 10, by which the league
members agreed mutually to guarantee
each other's territorial integrity
against external aggression, Mr. Lan-
ing said he "presumed in honor we
would have to follow out the general
purposes embodied in that article,"
though he thought there would be no
legal obligation.
Aggreanion la Dicas'ed
He eaid the covenant went no fur
ther than the Panama treaty in that
regard and that the word 'aggression
was a very important part of the ar
ticle. 'The word carries the implication of
a wrongful act," continued the secre
tary. "A mere invasion of territory
would not necessarily be aggression.
You might invade a territory to protect
your own nationals."
Asked who would determine whether
there had been aggression, Mr. Lansing
said he thought "the nation itself would
have the right to determine that."
Mr. Bourne Says Correlation Would
Realize Foil Development of
Foreign Trade.
Washington. Aug. 6. Former faenator
Jonathan Bourne. Jr., of Oregon, gives
strong indorsement to the plan of John
H. Rosaeter, director of operations of
the shipping board, for making one
irreat world network of all the trans
portation systems or tne Lmiea aiaies
both on land and sea. Mr. Bourne says
in part:
"The great value of correlation of
railroad and ocean transportation sys
tems, as proposed by John H. Rosseter,
director of the United States shipping
board, will be readily apparent. Of
course there are a few large shippers
to whom a convenience of this kind
Is of relatively little importance. It
would help them some, but if their
business is large enough they can ar
range their land and ocean transporta
tion with little loss.
'"But the full development of Ameri
can foreign trade, with greatest econ
omy and efficiency, requires adoption
and perfection of the Rosseter plan.
Briefly stated, his idea is that the
government should establish and later
turn over to private enterprise a com
plete and comprehensive system of
ocean transportation, comprising per
manent and regular service between
American ports and the ports of all
nations with which we can hope to
build up a profitable trade.
"He would have the schedule of sail
ings so arranged as to be dependable
and would have rates published and
available in every railroad office, so
that the producer of any commodity in
any section of the United States could
ascertain at what time, at what cost
and under what conditions he could
ship his goods to any important port
on the face of the globe.
"With the transportation service in
existence and dependable, our foreign
consular service would assume a new
For Baby's
Itchy Skin
AO dranwta; Soas IS. OiM
Brant 36 Mvd CO. Talcm .
Stun pie cb fr i of "0tt-
Organized Labor May Urge
Death, Says W. S. Stone.
Sims Bill Embodying Workmen's
Idea of Railroad Remedy Advo
cated by Union Leaders.
WASHINGTON, Augr. - Organized
labor may, after st more thorough in
quiry, advocate a firing- squad for some
of those responsible for the wave of
profiteering- sweeping oyer the country.
Warren S. Stone, grand chief of the
brotherhood of locomotive engineers,
told the house interstate commerce
committee today.
Mr. Stone appeared before the com
mittee at the hearing of the Plumb
plan for railroad control by the public,
the operating managements and labor.
Unless Congress found a solution of
the high cost of living problem within
a few months, Mr. Stone said. America
would see "its very worst period
People to Dfe Fighting."
"The people are not going to starve,"
said he. "They are jyoing to die fight
ing." Frank Morrison, secretary of the
American Federation of Labor, told the
committee that if labor's plan for op
eration of the railroads proved success
ful, they proposed to have- it applied
to othe industries.
Mr. Morrison declined to answer Rep
resentative Winslow's question as to
whether the operation of railroads un
der supervision of the government has
shown improvement, saying such a
question should not be raised at this
"Has labor," asked Mr. Winslow,
"ever been as well fed. clothed, housed,
entertained or furnished in their homes
as labor is in the United States today?"
I'm-eat Laid to Demobilisation,
Mr. Morrison said this was true at
the time of the signing of the armis
tice, but added that the demobilization
of 4.000.000 men had disturbed indus
trial conditions and was "causing un
rest." Declaring that American democracy
was controlled by an autocracy in in
dustry, Mr. Stone argued that there
could be no lowering of the cost of liv
ing as long as consumers had to pay
extortionate profits in purchasing the
necessaries of life.
Labors belief in the Sims bill em
bodying the railroad employers plan
for the solution of the railroad prob
lem was declared by Mr. Stone ' to be
Railroad Men Bark Bill.
"At the request of these organiza
tions the railroad brotherhoods) the
Sims bill is now before you," said Mr.
Stone. "I speak as the voice of these
2.000,000 men, delegated by them to
announce to this committee and to the
peopie oi this country that they are
supporting this measure with all the
strength and all the unity of purpose
that can move so large a body of citi
zens. "Joined with us is the American Fed
eration of Labor, adding 3.500.000 men
to the body of railway employes who
instituted this movement.
"In the industrial development of this
country great organizations of capital
first appeared as employers. Individual
workers, following the example set by
capital, organized as employes.
"There has been a perpetual struggle
by the workers to maintain a tolerable
stand of existence; on the part of capi
tal to amass greater profits. At times
both sides could ignore the needs of the
public. But now the very growth of
the labor organizations has brought
into their ranks a great many of the
consumers. Wage earners now const!
tute a large percentage of the people.
The extension of industry has changed
the nature of the previous struggle.
Employer Profits Attacked.
"For whatever the worker receives
in wages he must spend for the neces
saries of life. The cost of his living
is determined by the sum he earns
plus the profit he is charged on his
own labor.
"And, as a group, labor is forever
prevented from bettering its lot because
of the profits exacted by the employer.
So long as consumers are forced to
pay extortionate profits on their own
earnings to a third interest, there is
no solution of the industrial problem.
"We find that this third interest ab
solutely controls and dominates the
management of industry. It fixes wages
and controls working conditions. It
fixes the price of commodities without
regard to the needs of society, or the
necessities of producers and consumers.
"We exist under government, but by
industry we live. Under such a system
the majority or a democracy can,
through their government, enjoy only
such rights and privileges as an autoc
racy in industry permits them to re
"Industrial Freedom Sought.
"We now demand industrial freedom.
This can only be achieved by permit
ting producers and consumers to share
in control of the management of their
means of existence. The machinery for
attaining this result, we believe. Is
modified in the plan outlined in the
Sims bill."
Mr. Stone said the railway brother-
Silk Hosiery Sale
500 pairs of fine quality full fashioned Ingrain Silk Hose;
some are silk all the way to the top; others 6ilk with heavy
garter tops and double soles. Colors black, white, cordo
van and green. MILL RUNS of REGULAR $3 CI OK
HOSE. Special at, pair D-L.OJ
An opportunity you will appreciate, as prices are steadily
Wash Blouses Reduced to $1.45
This radical reduction because of slightly soiled condition;
including; organdie, voile and madras, with round, square and
high collars; some colored stripes, solid colors and white.
Original prices up to $5.00 ALL AT THIS LOW P"
Chas. F. Berg, Vice-Pres. and Mgr.
This Sale
We cannot
size ranges
the sale.
hoods were bitterly opposed to the old
system of railway control. If the Plumb
plan is rejected. It will be the policy
of labor, he added, to create enough
sentiment in and out of congress to
force its adoption.
-We have not made and do not make
any strike threats." the witness said
in this connection. "We have not even
demanded an increase in wages, prefer
ring a reduction in the cost of living.
"I do not believe any labor organi
zation will strike simply to force the
Plumb plan." Mr. Stone continued. "1
think some organizations will strike
unless something is done immediately
to raise wages or cut down the living
cost. When you reduce the latter you
solve the entire problem of industrial
Mr. Stone said that from 18 to 25
carloads of fruits and vegetables were
dumpd at Cleveland every day, sim
ply in order to keep up prices.
Representative Winslow wanted to
know what Mr. Stone thought congress
should have done.
"Congress could have 6een what was
coming months ago," the witness re
plied. "Congress was so busy playing
politics it could not think, of the com
mon people."
Answering Representative Sanders of
Indiana, Mr. Stone said the time was
coming when the price of coal would
be fixed by the government, "so men
won't get rich while others freeze."
When Mr. Stone was asked concern
ing statements from union leader that
Good N ews for Portland Women Who Have Waited for This
Expected Event.
Ready at 9 A.M. Today
The August Sale
Wash Dresses, Skirts, Blouses
Adhering to the Liebes idea of moving New Stock swiftly and continually
making place for merchandise still newer gives adequate reason for this
wonderful opportunity to secure
In Many Instances the Sale Price Represents
One -Third to One-Half
Reductions from the Former Prices.
Summer Frocks on Sale Today
Ginghams, Voiles, Cre
tonnes, and Crash in
Plaid, Stripes and Block
Checks, assorted colors.
August Sale Price, $9.75.
Ginghams, Voiles Or
gandies in surplice, tunic
and Russian blouse ef
fects. Assorted colors.
August Sale Price, $12.75
And All Higher Grade
Skirts on Sale Today
Smart Skirts of pique, gabardine, cot
ton, tricotine. Pockets and belts. Aug
ust Sale Price, $1.95.
Practical Skirts of Bedford Cord, tri
cotine, Gabardine; slash and patch
pockets. August Sale Price, $2.95.
Summer Blouses on Sale
Sheer voiles, plain
tailored and lace
trimmed, $1.
Peter Pan, tai
lored and low
necked fancy
blouses, $1.95.
Please Remember
will be limited to Saturday closing time. We must withdraw
exchange-approval, and lay-away privilege on these sale items.
Established 184 Time
they would "sew up the railroads,' he
"It is the rankest kind of nonsense to
say they will not run if this plan fails
of adoption. We know they will run;
the government will operate them be
cause the people must live and rail
roads are essential to their welfare."
Hume to Be Independent State and
Port Internationalized.
ROME. Aug. 6. (By the Associated
Press.) The settlement of the Ad
riatic question affecting Italy and
Jugo-Slavia is imminent, according to
the Popolo Romano today. In accord
ance with the settlement, it says. Fiume
will be an independent state with the
port internationalized.
Zara and Sebenico. on the Dalmatian
coast to the south, it is added, will be
free cities.
lr, mere ouAnma
U-l 1 II
ccnncaciAi. book.kejek
To I
English Prints, Organ
dies, Linens, Voiles and
Ginghams in coat styles,
straight line models. Sea
son's colors.
August Z-:rx Trice. $15
Frocks Greatly Reduced.
Gabardine, Surf Satin and drill vacation
skirts in many styles. August Sale
Price, $3.95.
Utility Skirts of Bedford Cord, wash
satin, stripe gabardine. Shirring, nov
elty pockets. August Sale Price, $4.95.
More elaborately
trimmed Voile
and batiste
blouses, $2.95.
700 Engines and 100 Machines to
Be Used Commercially Chicago
to Have Air Taxis.
(Copyright hy the New York World. Pub
lished by arrangement.)
LONDON, Aug. 6. i Special Cable.)
Seven hundred aircraft engines and 100
airplanes have been purchased from
the munitions disposal department of
the British government by the United
Aircraft Engineering corporation of
New York for export to the United
States and Canada for commercial uses.
V. G. Diffen, president of the corpo
ration, told Daily Sketch today that the
i i
Business Going
and Growing
WHETHER you are satisfied with
things as they are in your busi
nessor are striving to ever
extend your scope of operations the
"first-afd" facilities and services of the
Northwestern National will fulfill your
banking requirements.
Domestic and Foreign Business
Building Departments.
"Services Cover the Northwes:
and Encircle the Globe."
Bl ouses and
smocks and white
and color trim'd,
our usual
to maintain
Liebes service
purchase was made to meet the demand
for rapid transit which prevails not
only on the other side of the Atlantic,
but all over the world.
"Already in America," Mr. Diffen
said, "we have sold many planes for use
in oil, cotton and timber districts. By
their use conferences are held and in
vestigations and decisions are made
with great rapidity. We bought from
the imperial munition board in Canada
about 500 airplanes, and all of these
have been sold. 75 per cent of them
going for commercial purposes. Aerial
photography also has a future. A pan
oramic view of a section of country
shows It in perfect detail, which will
be particularly useful in case of timber
lands or town plats.
"One Chicago taxicab company has
bought 40 airplanes for general com
mercial taxi work, such as taking &
man from his work in the city to play
golf, a hundred miles away and back
again for dinner. We are going to have
a line between Chicago and New Yorlc
by the spring of 1921. so that the dis
tance of 1000 miles will be covered in
one night
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