THE MOUSING OREGOXIAX, TliURSDAY, AUGUST 7, 1919. 3 LABOR'S RAIL BILL HAS HEM BACKING American Federation and 14 Unions for Sims Measure. MORRISON OUTLINES PLAN 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 organizations." 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 renumeration. "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 consent. "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 stock." '14 POINTS' ARE HELD SAFE (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 covenant. 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 Borah. "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 tions. "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 jected. 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 that." "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 yours?" "Necessarily." 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?" None. 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 treaties. 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." ROSSETER PLAN FAVORED WORLD NETWORK OF RAIL AND OCEAX" TRANSPORTATION. Mr. Bourne Says Correlation Would Realize Foil Development of Foreign Trade. OREGONIAN NEWS BUREAU. 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 importance." Cuticura For Baby's Itchy Skin AO dranwta; Soas IS. OiM Brant 36 Mvd CO. Talcm . Stun pie cb fr i of "0tt- SHOOTIfIG SUGGESTED TO STOP PROFITEERS Organized Labor May Urge Death, Says W. S. Stone. SHARE IN CONTROL ASKED 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 time. "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 profound. 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 celve. "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- A LENNON 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 advancing. Wash Blouses Reduced to $1.45 VALUES TO $5.00 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" PRICE OF DJ-iO 309 MORRISON ST. POSTOFFICE OPPOSITE Chas. F. Berg, Vice-Pres. and Mgr. Wash This Sale We cannot promise complete size ranges throughout 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 unrest." 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 LIEBES SUMMER FROCKS, BLOUSES. WASH SKIRTS LATELY RECEIVED AT PRICES LOW ENOUGH TO WARRANT YOUR PURCHASING YOUR SEASON'S END SUPPLY AT THIS STORE TODAY. 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 said: "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." ADRIATIC SOLUTION NEAR 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 I ATIOW fit- U-l 1 II COMMERCIAL r t DEPARTMENT Ft, "Ib ccnncaciAi. book.kejek a 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. Today More elaborately trimmed Voile and batiste blouses, $2.95. AMERICA IMPORTS PLANES FLYING EQUIPMENT BOUGHT OF BRITISH GOVERNMENT. 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 MORRISON STRlET i i EI CTTXXT LOBBY N.W. BANK BUILDING m 6v I no 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." 1.1:! Bl ouses and smocks and white and color trim'd, $3.95. our usual Additional experienced salespeople 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 IP SAVINGS ; I 3 1 J I a a O rrxr QUACTERJ y