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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Aug. 13, 1919)
TIIE 3IORXIXG OREGOXIAX, WEDNESDAY, AUGUST 13, 1919. FRAUD CHARGES ARE FACED BY RAILROADS Dividends Paid on Bonus Stock, Says Plumb. LIMES DECLARED RUN DOWN Hundred- of .Millions Advanced by (jiovrrnment to Place Them in Shape, Avers Witness. WASHINGTON. Aug. 12. The rail road brotherhoods through their coun sel, Glenn K. Plumb, today laid before the hou.e interstate commerce com mittee their charges of corruption in the management of the railroads under private control. The charges were that many of the great railway systems had been plundered systematically by the financial interests and that the rail roads illegally held millions of acres of Duhtic lands. Kighteen representative railroads of the country, the brotherhood attorney a xserted, issued stock aggregating $4,0.414.'i0n between 1900 and 1910 as bonuses and paid millions of dollars in dividends on these bonuses. These same j railroads, he further charged, "were cortrolled in whole or in part by the Morgan interests, the Rockefeller In terests and the Gould interests." Thorough Probe Demanded. Coupled with the charges which came Just before the house committee closed Us hearings on organized labor's bill for elimination of private capital from railroad ownership was the demand by Mr. Plumb that congress make a thor ough investigation of the matter so that the American people may know."to what extent it is sought to subject them to exploitation" under the other plans proposed for future disposition of the ra i 1 roads. There was no intimation as to what course the committee might take in re gard to the request for investigation. Chairman Esch indicated that to go into the charges would be like travel ing over old ground, as they had been threshed out long ago. - Plumb told the committee that he either had the evi dence to support every charge or knew where it could be obtained. Presenta tion of the charges apparently failed to arouse much interest among mem bers. Sneoews ot Expected Now. A. B. Garret son, former head of the Order of Rail way Conductors, declared with utmost frankness that if a vote were taken today the country probably would reject organized labor's plan. He explained, however, that this would be due to general suspicion against new Things, ind he predicted that it would be indorsed and adopted in the not distant future. The opinion was expressed by Mr. fiarretson that there had been no fair test of government operation of rail roads because the railroads since being taken over had been operated by offi cials who were opposed to government ownership and wanted to demonstrate that it was not best tor the country, With the filing of Plumb's charges the committee concluded hearings on his plan for public ownership and em ploye operation of the railroads, and will take up later the plans to be offered by security holders and railway executives, both of which labor officials have testified are more radical than that framed by Mr. Plumb and indorsed by the brotherhoods. It probably will be a month before the committee can make a final report. $50,000,000 In BonuNen. Specifically, Mr. Plumb charged that the Chicago, Burlington & Quincy, the Chicago, Milwaukee & St. Paul, the Chi cago Northwestern, the Great Northern, the Illinois Central and the Southern Pacific railroads gave away in bonuses to their stockholders more than $250, 000.000 during the 10-year period men- t ioued. and "that the actual dividend disbursements on this excess capital for the year 1913 alone amounted to more than $11,000,000." J-Ie also alleged that the Pennsyl vania; Baltimore & Ohio; New York New Haven & Hartford; New York Cen tral & Hudson River railroad; Boston & Maine and the Delaware & Hudson company "issued new stock for $101, OOO.oui' less tnan its market value, or gave away this enormous amount bonuses to stockholders," and that "the dividends paid on these fictitious stock issues in iyu alone amounted, to over $1,317,000." Charge Previounly Probed. Chairman Esch said after the state ment that some of the charges had been covered in previous investigations. He did not indicate whether the com mittee would ask authority to make an investigation. Plumb's statement to the committee embraced 11 separate charges. The first was that the nearly completed survey of the entire transportation sys torn contained in the report of the valuation division of the interstate commerce commission showed that the actual cost of reproduction new was but 50 per cent of the aggregate prop- erty investment accounts of the rail roads. Another charge was that the cost of reproduction new approximated in amount the investment account as stat ed to the commission by the carrier. It would be found in most instances that this approximation was because vast surplus earnings had "been expended on or ploughed into the property in euch way that the actual cash invest ment, including the surplus earnings, has brought the level of cost of re production new up to the property in vestment account." Payrolls Declared Swollen. Investigation of a recent statement by President Underwood of the Erie railroad that payroll expenses of the railroad had been increased under fed eral control to build up a political ma chine, would show. Plumb said, that if there had been wastefulness of money in swelling payrolls, "it had been at the instance of railway managements to make the expense account under gov ernment control appear extravagant and wastetul. Plumb also charged that when the roads were taken over by the govern ment they were in such depleted condi tion as to maintenance and repairs that it had required "hundreds of millions of dollars advanced by the government to place them in eftective operating condit ion. Another charge was that in making the expenditures the railroads "oper ated and controlled by men under the influence of A all street directorates' spent vast sums in unusual expendi tures for maintenance and supplies to place the properties in perfect o per at ing condition against the time of their return to private ownership. "I charge," continued Plumb, "that the records disclose that an area of land exceeding 2ifi.S75 square miles had been given by the L nited States gov ernment and the various states to our railroads to aid in the construction of our national highways," adding that "the value of the grants so made have either been . appropriated to the private property of the railway promoters or they have been capitalized as a part of the value of these properties upon .which the grantees now deraandV-Df this t congress the right to exact returns from the public." A. B. Garretson, former head of the Order of Railway Conductors, told the house interstate commerce committee today that operating officials in charge of railroads during government control were actuated by the one desire of demonstrating that government owner ship was not best for the country. Exactly the same operating force that built up a great surplus before the war created this big deficit, Gar retson said. Fait h fill Service Ex peeted. "When the railroad official prays he turns his face to Wall Street." said he, "but once it is demonstrated "that management in future will center in Washington, I am sure he will serve the government as earnestly as he served the old masters In the past." Discussing the Plumb plan for the tripartite control of the railroads, Mr. Garretson said it "utterly demolished capital account, while the other plans submitted to congress added to it until the grandchildren of the present gen eration would stagger under the load." The board of directors, under the Plumb plan, Mr. Garretson said, would be the court of last resort in determin ing wages, but the right of employes to strike would not be abridged. "But," he explained, "the employes would be partners in the enterprise. If the wage board which would hear wage disputes refused to grant increases it would pledge a large percentage of employes to refuse it. So if a body of employes went on strike, they would find a large employe element who felt their own rights had been invaded and injured and who would stick. "It will be a long time before you eliminate strife from industry." Words Inadequate, Say Vis itors, Viewing Wonder. TWO VACANCIES LIKELY MEMBERS OF HIGHWAY BO.VRq MAY" RESIGN" SOON". LIKE INDESCRIBABLE SOUTHERN OREGON IS HOST Association Party Taken to Lake by Autos and Entertained Trip Memorable One for All. f Continued From First Pa?f.) in deeper blue Possible Successors to W. L. Thomp son and It. II. Booth Matter of Speculation at Capital. SALEM, Or., Aug. 12. (Special.) Rumors about the capitol during the ast few days indicate that there will be two vacancies on the state highway commission before the end of the year. The members who are expected to re- n are W. L. Thompson of Pendleton and R. H. Booth of Eugene. Mr. Booth sent his resignation to Governor Olcott soon after the latter assumed office following the death of Governor Wlthycombe. but because of ; the vast amount of road work in prog- j ress and contemplated he was pur- : suaded to reconsider his move and re main in office. Friends say he is now bent on resigning because of personal business requiring his attention. Mr. Thompson has also let it be known that he expects to resign. Sev eral months ago he gave out the state ment that he intended to leave Pendle ton aboy.it January 1 of next year to make his home in Portland. While no prospective successors to Mr. Thompson and Mr. Booth have ap peared at the capital, several men prominently connected with Oregon's road campaign have been mentioned as possible aspirants. Because of the governor's previous practice of giving all sections of Ore gon recognition on state boards it is believed that Mr. Thompson's successor will come from eastern Oregon. Among the men mentioned in connection with Mr. Thompson's resignation are James Stewart of Fossil, member of the last egislature and an active worker for good roads ; William Pollman, Baker banker, and Bruce Dennis, publisher of newspapers at La Grande and Baker. For Mr. Booth's berth are mentioned W. E. St. John, present county com missioner of Douglas county, and Louis Simpson of Marshfield. Several other southern Oregon men are said to have their eyes on Mr. Booth's job, but have not yet made their candidacy known. Governor Olcott has refrained from giving any intimation as to whom he will appoint in case Mr. Thompson and Mr. Booth resign. C CONTRACT LET STRITTIKE FOR WOMEN EUGENE IS ORDERED. AT Fund or $ 100,000 Immediately Available for Gymnasium and Physical Center. EUGENE, Or Aug. 12. (Special.) The building committee of the board of regents of the University of Oregon today gave the contract for the con struction of the new women's buildinjg to W. O. Heckart of Eugene, whose bid for the skeleton of the structure was I $102,000, with an option offered the board of regents to do the rest of the work plus 8 per cent. The work of construction will begin the first of next week. The new building, which is being con structed at a total cost of $2u0.000. will probably be finished by next spring. To furnish funds to start the construction, the state will match $50,000, which has been subscribed by friends of the institution. This will put at the immediate disposal of the state $100,000 for the work. The new building is to be placed on the- university campus just behind the administration building, will house the woman's physical training department and will be a center for women's ac tivities on the campus. It is to be equipped with thoroughly modern con veniences in the way of a gymnasium. swimming pool, shower bath, private offices for the instructors, class rooms for the majors in the departments and ecture rooms. Xhe members of the building com mittee who received the two bids of fered yesterday, one from Mr. Heckert of Eugene and the other from F. C Striegel of Portland, are Mrs. George T. Gerlinger, A. C. Dixon, L. N. John son and Ellis F. Lawrence. these were reflected upon the surface. During the afternoon many of the visiters followed the trail down to the edge of the lake while others made the climb to Garfield peak, which tow ers over the lake from the east. Gov ernor Olcott and President Hardy, of the editorial association, with their wives, tO"k a boat ride to Wizard island. When the party had gathered around the great bonfire in the even ing, as though by prearrangement with the committee, the full moon rose over the rim of the lake as an inspir ing prologue for the programme. Oeologiat Telia Stories. Secretary Will G. Steel, re-discoverer of Crater Lake, and Professor Vining of Ashland, described the geological formation of the lake, told of its history and conjured up for the editors the Lloas and Indian gods who make their home in its depth. Welcome addresses were made by Governor Olcott and the southern Oregon people and a response was delivered by P. N. Henderson of Little Rock. Ark., for the editors. Mayor Gates of Medford, presided. This morning the guests rose at 5:30 to view the rising of the sun over the rim of the lake. The sight was equal to the expectations of the party; the sky was perfectly clear and. the col oring of the lake depened and changed as it does at that time when weather is favorable. Breakfast was served In the big dining room of the lodge, with lake trout which had been caught by P. C. Bigham and Weldon Tunnell of Medford, on the bill of fare. The morn ing was spent according to the in clinations of each group, many visit ing Victoria rock, Anna Canyon and other points of Interest am! at 10 o'clock the cars began leaving for the return trip. Two Routes Pol lowed. On the way up to the lake half of the cars had followed the Medford Crater lake highway and the other half had gorte by way of Ashland over the Dead Indian road skirting the Klamath valley. On the return the route was just re- versed, so that each of the visitors was taken over new territory. The round trip registered 176 miles upon the speedometers. The trip from Portland was replete with interesting incidents, and many of the editors have expressed their intentions of writing full ac counts of this portion of their north west excursion for their respective publications. Governor Olcott, Mayor Baker of Portland and their wives came near being left at Salem when the train pulled out without them. The officials and their wives came riding up to the station just as the train was gathering headway. Jumping from the automo bile they dashed down the track and succeeded in drawing the attention of those on the observation platform. Airplane Trip Is Missed. The train was stopped and backed up and the party got on. Afterwards it was disclosed that the stopping of the train was a. secret disappointment to the governor and Mayor Baker, as Major Smith of the army aviation serv ice, who was with them at the time, had offered to take them to Eugene by airplanes if necessary to overtake the editorial party. On Monday evening the members of the party were pleas antly surprised by the appearance of a quantity of Monday morning Orego nians. The papers, which contained j complete account of the trip up the Columbia highway and of the recep tion in Salem accorded the party, were distributed to ea'ch of the editors and greedily read. Day's Papers Delivered. This is the first time in history that a Portland newspaper has been received at the lake on the day of publication. An automobile has been chartered to receive the papers from the train at Medford late Monday afternoon and to bring them posthaste the distance of 82 miles to the lake. Members of the national park service. the government forest service and offi cials of Crater Lake lodge deserve great credit for the success of the Crater Lake visit, as well as the Med ford, Ashland and Grants Pass citizens in charge. Supervisor Sparrow, of the national park, had erected tents to care for those who could not be housed at the hotel, and had hauled many of the giant logs for the campfire. Manager Parkhurst, who faced the task of han dling by far the largest crowd that ever stayed over night at the lake, had made special arrangements for car ing for the guests and for serving un usually excellent meals. Lunches were prepared for the party on the return trip, and it was neressary for the girl waitresses of tho hotel to stay up all night to get them ready. Secretary Steel Busy Mam. Secretary Steel of the Medford Com mercial club, the man who rediscovered Crater lake about 3 5 years ago and who spent two years In Washington and finally secured action by which the lake and region surrounding it became a national park, was in defatigable in his efforts and each member of the committee of South ern Oregon citizens carried out his part of the programme in a way that was reflected in the universal success of the tour. I On the return from Crater lake today Governor and Mrs. Olcott. Mr. and Mrs. H. A. White of Wilmington, Del., Chairman W. J. Hofmann of the Ore gonian entertainment committee for the editors, and wife, and Ben Sheldon of Medford were entertained for a short time at Pelican Bay lodge by Herbert Fleischhacker. Portland and California capitalist. The lodge is passed in mak ing the trip from the lake to Ashland, via Dead Indian road. The party was taken out on the bay by Mr. Fleisch hacker in his steam launch. The dinner last night at Ashland was served upon the lawn of beautiful Lithia park, the scene rivaling In beauty that of Friday evening, when the editors had an open-air dinner at Laurelhurst park as the guests of Port land. Home products entirely were served and Ashland chicken, jam and Jelly and fruit were featured. The committee In charge of the Ashland welcome to the visitors was headed by Clark Bush, president, and Lynn Mowat, secretary of the Ashland Commercial club. Other members of the committee .were Leo F. Ferguson. Von Smith. J. W. McCoy, Frank Jordan. W. H. McNalr, J. H. McGce, W. E. Newcombe, Fred Herron, H. H. Gillette, C. W. Winne and George Milner. The women's civic improvement club or Medford served the dinner, with Mrs. C. B. Lam kin in charge, assisted by Mrs. L. H. Humphreys of Portland. DANIELS SAILS FOR HONOLULU TODAY Family With Secretary Battleship New York. on 4 DESTROYERS IN ESCORT "ORDER OF CRATER" FORECAST Organization, With Editors as Char ter Members,. Projected. , CRATER LAKE, Or., Aug. 12. (Spe cial.) "The Order of the Crater" was forecast yesterday when editors from all over the United States gathered at Crater Lake as guests of Medford. Ash land and Grants Pass. The organiza tion will probablv be perfected with editors from 2G states as charter mem bers. Only persons initiated at the crater and immersed in the waters of the lake will be admitted to member ship. The editors reached the lake yesterday. Governor Olcott, Mayor Baker and Chairman Hofmann and their wives were the first to reach the inn. The editorial party was the largest the southern Oregon people have ever entertained at the lake. Ninety cars were used to carry the 2H members of the party. Southern Oregon towns donated $2000 to entertain the editors. A supper of trout was served for the guests last night. The programme was held by the light of many camp fires. Mayor Gates of Medford. O. O. Blanchard of Grants Pass and Irving Bining of Ash land welcomed the visitors. Governor Olcott and President Hardy responded. I ne jviedrord committee in charge of the Crater lake trip was composed of George L. Treichler. Will G. Steel, H. L. Walthers, Vernon Vawter. J. W. Wake field. F. E. Gurdes, F. S. Smith. J. B. Palmer, W. J. Gates and A. L. Hill. Ashland was represented by Linn Mow att and Uranls Pass by Edward Harris. FIRE ON CAR HURTS WOMAN Motorman Leaps Out ; Agent Stops Car on Downtown Street. Miss Crystal Aube, 193 Laurelhurst avenue, was burned on the right hand last night when a street car in which she was riding caught fire at Third and Yamhill streets. The motorman on the car. whose name Portland Rail way, Light & Power company officials declined to give out. jumped from the car and fled down lamhill street to wards the river. Patrick Maher. Fpe cial agon t for the street car company, jumped on the car and stopped it be fore It had been derailed. The fire was caused by blowout of a fuse. Miss Aube, who is 28 years old went to St. Vincent's hospital. Her in juries were not serious and she went home later. The fire started as the car was turning from Third to Yamhill stieet. Had the car not been stopped it might have left the track at the turn at Second and Yamhill streets. Return to California Scheduled for September In Time for Re view by President. LOS ANGELES, Aug. 12. Secretary of the Navy Daniels and his official party went aboard the battleship New I York tonight, preparatory to the de- ! parture of the battleship 'tomorrow at , 7 o'clock A. M. for Honolulu where the secretary and his associates will par ticipate in the formal opening of the naval base at Pearl Harbor. Accompanying the secretary were Mrs. Daniels, their two sons, Rear-Ad-mirals McKean. McOormick and Parks, and Commanders Foote -and Hilton, aides to Secretary Daniels. The destroyers Ohaunoey, Dent, Waters and Philip will escort the New York. .Return Set for September. The battleship and escort will return to California in September, in time to be present when Presic'ent Wilson re views the Pacific fleet at San Francisco. The Pacific fleet today will begin a process or t-emporary separation. Secretary Daniels, Admiral Rodman and Rear Admiral Jayne today in spected Los Angeles harbor with a view to formulating recommendations for future improvements to meet the navy needs. Iater. the party boarded the Texas to see Miss Mary Pickford present to that vessel the George Washington pennant, awarded it for having sold the most bonds in the Vic tory loan drive. Mayor Snyder, the harbor commission, and Congressman H. Z. Osborne accompanied the secre tary and the navy officers on their harbor inspection tour. Men Taken For Anto Rides. Officers and men today were en tertained again with a luncheon and athletic programme at Exposition park. nd a street dance for enlisted men tonight. The battleships Nebraska and Mon tana and the cruiser Seattle joined the fleet last nfght. The Idaho was re ported en route along the South Amer ican coast. SAN FRANCISCO. Aug. 12. The prince of Wales will be unable to stand by the side of President Wilson on the deck of the battleship Oregon -and review the Pacific, fleet as It steams Into San Francisco bay. Mayor Rolph was advised by the British embassy today. A direct invitation had been extended to the prince, but according to the embassy, he will be unable to come on account of eastern engage ments. The mayor's office announced that the efforts to haw the prince review the fleet here will be continued. J VnVnSHnnSnVBnVBnVHHnVnVn u . 1 1 ii in .ii ii i Vrr 1 H loin) " CCSDI Beating back is a tough proposition for a "spoiled," pampered girl. There are ways and ways. Which would you choose? TODAY "We do not want to becin in a email way," he said, adding: "Congress sold a part of the New York naval base for $1,000,000, and now we are trying to buy extra land that will cost us not less than $4,000,000." LOS ANGELES PROMISED BASE Secretary of Navy Would Expend $5,000,000 on Station. LOS ANGELES, Cal., Aug. 12. Sec retary Daniels, after an inspection of Lob Angeles harbor here today, an nounced that he would recommend to congress that the government make minimum expenditure of $5,000,000 to create a naval base here, provided the city would acquire and present to the navy department approximately ftO acres .of land adjoining the present naval base site of 156 acres on the outer harbor. Mayor Meredith P. Snyder and other city officials who had accompanied the ; secretary on his inspection tour an nounced that the city would meet the condition, and would immediately take step to acquire the needed property. Secretary Daniels said he wanted the additional land to allow for expansion. Tars to Get Free Rides. SEATTLE, Aug. 12. Jackies of the Pacific fleet, when they arrive in Seat tle, will be allowed to ride free on the municipal cars if a resolution favorably reported to the city council is adopted. Seattle's entertainment committee Is planning to carry out a programme of welcome such as no city on the coast has tenured the men. STANDARD'S TAX $28,761 2.654,864 Gallons of Gasoline Are x Sold in July. SALEM. Or.. Aug. 12. (Special.) The statement of the Standard Oil company of California for sales of motor vehicle fuel in Oregon for the month of July, 1919. shows a total of 2.654,864 grallons of gasoline and 442.638 gallons of distillate, on which the tax of 1 cent a gallon on gasoline and one-half cent a gallon on distillate ag gregates $28,761.80. The tax on the June sales aggregated $2K.7S9.14.'. BROWNSVILLE MAN DIES William Bowers Visits Many States in Search of Health. BROWNSVILLE, Or., Aug. 12. (Spe cial.) Funeral services were held here Sunday for William Bowers, who died at Cherokee, la., while on a visit. Mr. Bowers came here from Kansas about ten years ago and had been farming since that time on his place south of Brownsville. A few years ago his health began to fail, and he began to seek health in many states and climates. Mr. Bowers was 70 years old. He is survived by one son, Harry Bowers, a student at Willamette university. Marion County Veterans Elect. SALEM. Or., Aug. 12. (Special.) The Marion County Veteran s associa tion held its annual picnic atSilverton Sunday. Charles Lisle of Salem was elected president, Mrs. Gourlin of Sil verton vice-president. Comrade Ter williger of Salem secretary, Mrs. Cobb 1 of Stlverton treasurer and Mrs. Maud Hicks of Woodburn marshal. mramHtinmtimtmrramminnifmnmfiinmiw State Superintendent Returns. SALEM. Or., Aug. 12. (Special.) J. A. Churchill, state superintendent of public instruction, has returned from Oregon City, where he passed a couple of days attending the summer school for Clackamas county. He also en joyed a few days' hunting in that vicinity. S. & M. green stamps for cash, Holman Fuel Co.. Main 353. A 3353. Biockwood, Lhort slab wood. Rock Srrinzs and Utah coal: sawdust Adr THE BATTLE CREEK School of Home Economics Horn ENiOBKt ra tsualifv tou u DIETITIAN TEACHER HOME MAKER Mar avll ooom 1b far our grulu&m than wm ea aptxr bcuool (AUtKd rlib U grrat B&U-U Crck 6 ib tart um afford coaipretotwi! practical tramir.g In oocnectlon with lb theoUa work. Scbool lo eat4 In a beautiful part of tb atat. atuden: mx:aj aaeeptlouai aurrouiidtnjr for siudjrtnx. wla unusual adVantacea for healthful rcratioa. Tultiaa and Hrtna- uttom mrviprs te. Or-pi--tun ittes to defray part of axpaoaft. Il lustrated proapertua m rciiMU i ,1 iTi urn : LEN"i FRANCES COOPER. B. S, Dean BAILEY'S Highway Pictures HAVE YOU SEEN THEM? 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